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  5. NVEI: Your comments on the Q4. [Nuvei Corporation Subordinate Voting Shares]
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Q: Your comments on the Q4. Does not look that bad but after hours are terrible. Margins seem to improve, the expectations were too high? Time to add on weakness? What about the customer retention?

Thanks
Asked by Daniel on March 06, 2024
5i Research Answer:

EPS of 47c beat estimates of 45c; revenue of $321M matched estimates. EBITDA of $120M was 3.7% better than estimates. Sales rose 46% but EPS was flat year over year. Organic growth was 7% but margins declined. But guidance was reduced enough to worry investors. For the year, EBITDA guidance goes to $480M to $510M, vs estimates $512.4M. Sales to $1.34B vs estimates $1.38B. 1Q guidance was also reduced marginally. NVEI says its growth rates will 'ramp up' throughout the year but such promises are always met with skepticism, especially as the company hardly has a perfect forecasting record. Customer retention was not discussed but should be on the conference call to be held Wednesday at 830 EST. We would not add, and we are a little disappointed here.