Nuvei Corporation

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Newgate Corporation's fourth quarter 2023 earnings call. As a reminder, this conference call is being recorded. I'll now turn the conference call over to Chris Mimone, head of IR. Please go ahead, Mr. Mimone.

Thank you, operator, and thanks to everyone for joining us this morning. With us today are Philip Thayer, chair and CEO, and David Schwartz, CFO. As a reminder, this conference call is being recorded in webcast and is copyrighted property of New Bay. Rebroadcasting this information in whole or in part without written consent of New Bay is prohibited. Prior to this call, we published a shareholder letter for the fourth quarter and full year. We encourage everyone to read it if you haven't done so already. The shareholder letter contains commentary that otherwise would have been included during our prepared remarks to this conference call and allows us to spend more time on today's call answering questions. We would also encourage investors that the shareholder letter be read in conjunction with our press release, MD&A, and consolidated financial statements, all of which are available in the events and financial information sections on our investor relations website, investors.nuve.com. During this call, we may make certain forward-looking statements within the meaning of the applicable security laws. Such forward-looking statements involve risks, uncertainties, and other factors that may cause actual results, performance, or achievements of the business or developments in New Bay's industry to differ materially from anticipated results, performance, achievements, and developments expressed or implied by such forward-looking statements. Information about these factors that could cause actual results to differ materially from anticipated results or performance can be found in New Bay's filings with the Canadian Securities Regulatory Authority and on the company's website. Our discussions today will include non-IFRS measures, including but not limited to adjusted EBITDA, adjusted net income, and adjusted net income per share. Management believes non-IFRS results are useful in order to enhance our understanding in our ongoing performance, but they are not a supplement to and should not be considered in isolation from a substitute for IFRS financial matters. Reconciliation of these measures to IFRS measures is available in our earnings release and MDMA. We'll just have some brief prepared remarks here before opening up the call for your questions. In order to get to as many people in queue within the allotted Q&A time, we ask that you limit yourself to one question and one follow-up. And with that, I'd like to turn the call over to Phil.

Thank you, Chris, and thank you all for joining us this morning. As you've now seen, we've reported strong fourth quarter and full year results near the high end of our range for revenue and above the range we provided for total volume, revenue and constant currency, and adjusted EBITDA. Highlights for the quarter include strong growth across the board, with total volume increasing 53%, revenue increasing 46%, and adjusted EBITDA increasing 40%. On a performa basis, fourth quarter revenue growth was 11%, and in line with our expectations, our leadership and challenger positions across our end markets drove 19% growth in organic total volume accounts and currency. Adjusted EBITDA margins expanded sequentially by 100 basis points to 37.3% as we were driving efficiencies throughout our business. In our capital allocation, we continued to prioritize debt repayment, deleveraging to 2.5 times as of December 31, 2023. Our board has authorized and declared a cash dividend of $0.10 per share. Since 2022, we have returned $251 million to shareholders in the form of share repurchases and dividends. This year is often an exciting start as we are executing on our strategic priorities. We're looking forward to another year of growing with our customers, driving product innovation, and expanding our geographic footprint, all the while staying disciplined on cost management. This concludes my prepared remarks, and we're now ready to take your questions.