Welcome, everyone. We're in the afternoon session of day 2 of the 27th Annual Global Technology Conference here at UBS. My name is Tim Chiodo. I'm the lead payments, processors, and FinTech analyst here. We are glad to be joined by the team from Nuvei. We have Vicky Bindra, who is the Chief Operating Officer. I could be wrong, but I believe this might be your first on-stage investor conference appearance as a member of Nuvei. It's a pleasure to have you here, Vicky. Pleasure. We're also joined by Chris Mammone, who is Head of Investor Relations. So we have both here on stage with us. We're going to work through some questions. We'll start a little bit with Vicky and how he came to Nuvei a little over a year ago when he and I first met. We'll get into some of the RFP processes and competitive dynamics. We'll talk about the revenue growth over the medium term. We'll talk about the exit rate this year, and then we'll really spend some time on the three core segments that the company has been disclosing. So with that, Vicky, it's great to have you here. Thank you. Why don't we start out with a little bit on your career background and the intro to you and how you came to Nuvei, again, a little over a year ago? Sure. Thank you so much, Tim. Yeah, my career, I hate to go year by year because it just shows my age, but my first few years in the industry was spent more in banking and consulting. So I was primarily with Citibank and with Bain & Company as a consultant, and the last 15 years or so has been in payments. So I was first with Mastercard, looking after the region in Asia Pacific. Then I did the Coke, Pepsi thing of working with Visa in San Francisco, which I wouldn't advise anybody to do. Then I was with companies like Pine Labs, which is a Sequoia Growth company out of Singapore, and now with Nuvei. So it's been an exciting journey. I was just prior to Nuvei, I was with a company called FIS, which many of you might know, but. And the reason I got, like, into a conversation with Nuvei was while I was in FIS, we would always come in many segments against Nuvei, and I got to meet Phil Fayer through one of his board directors, and we kept talking about. And I said, "Why is that company seeming so exciting versus what I'm doing at FIS? And let me find out more." And we got talking, and we really started talking about how Nuvei would grow and what are the acquisitions that would really make Nuvei a very different company. We both very quickly settled on PAYA and said, "I think, frankly, Nuvei should acquire." That was the start of a six-month discussion which got me here, and I'm a really excited member of the leadership team and very happy to be here. All right. That is a great segue into the next topic, which is with your experience being at competitors and now being at Nuvei, you've gone into RFP processes or somehow been a part of those RFP processes. Maybe just talk about what has changed, meaning when you were going up against Nuvei and now that you are at Nuvei, what are you doing to win these RFPs? And also, who are you most often seeing in these RFP processes? Yeah. So RFPs is an interesting point, right? Because I think outside the core segments, till about 2 years ago, outside the core segments of gaming and, and let's call it financial services, not that many RFPs invited Nuvei in, right? And partly because these companies either didn't know about Nuvei or Nuvei lacked some of the basic capabilities that were needed, things like omnicommerce and issuing capabilities that customers were looking for. A combination of these two sort of, you know, meant that Nuvei had to try harder to get into RFPs or win customers, right? That, I think, has changed substantially, partly because the last 18 months or so of diversifying into different segments. So the fact that we are in travel, the fact that we're in the gig economy, the fact we're in marketplaces, we've now become a natural choice for people to call us in. The fact that we've responded to those requests, and now, as of this morning, we've come out of a huge announcement on card issuing, and we just announced omnicommerce a couple of months ago. That has created all the bandwidth we need to be in RFPs, and we are increasingly seeing that for big tech and other RFPs, we've been called in, which frankly, two years ago, we were never being called in. So that's been the big difference. Like, now we get called in with sort of Worldpay, with Adyen, with Stripe, with Checkout.com. So we, we see ourselves being seen in that quadrant as opposed to a specialist gaming and financial services quadrant, and I think that has been the big change for us. Okay. Thank you, Vicky. Just in terms of some of the, the aspects that you'd be putting down in these RFPs that you're now mentioning you're increasingly being invited to, when you're talking about the positive attributes of your offering and why you should be the chosen platform during that RFP or one of the chosen platforms, is it the APMs and the LPMs? Is it customization, flexibility, service, support, a little bit of all of the above? But what are the reasons that you really tout to these merchants and platforms in terms of why they should pick Nuvei? Yeah. No, I, I think that's fair, and, and I'll give two answers to that, right? One is, how do we approach these, these customers and RFPs? And secondly, what do customers tell us once we ask them as to why they're choosing us or why they're working with us, right? So the first aspect is we've created a complete modular system, and we go to customers with a modular system, right? So we will tell them, "Hey, depending on what you need, if you need processing in one country, but APM in three countries, we will provide that for you in the hope that we get in with a small segment of the business, call it 2%, 3%, 5%, but over time, we'll grow our way up, given sort of what we have to show to them, right? That's our first, first instinct. So, you know, what do we go with? You know, sometimes we, we grow with an APM, sometimes it's only routing, sometimes it is processing in two difficult markets that they can't get a processor to do. So it's all of the above, depending on what the requirement is. I think when we ask customers why they choose us, they give us 2-3 different answers, and interestingly, one is reporting. They say, "You guys have, have some reporting." I don't know whether that's a decision factor or an influence factor in their decision, but it comes up more often than, than we think—than, than we would think, right? Secondly, what comes up is live customer support. They feel the fact that in any one of the smaller countries, too, their people can call and get a live customer support on the other side, from our side, is a pretty, pretty meaningful differentiator for them. And third dimension is APMs. But so these are the three largest point. There are many others, but three, these are the three largest. We obviously have the largest APMs in the world, but it's something b ut those are the three that come up, almost in that order. Excellent. Thank you, Vicky. Let's move on to the medium-term growth algorithm for the company in context of the 15%-20% medium-term outlook that the company has recently given to the market. So you've generally talked about 80% of that growth coming from existing customers and 20% of that coming from new customers. Clearly, the existing customer portion includes a little bit of end market growth and a little bit of wallet share gain. So that's the construct we'd like you to elaborate on, but also, in terms of a macro downturn scenario, how would you expect that growth algorithm to behave, and what are some of the portions of the business that you consider more or less discretionary or non-discretionary? Yeah, maybe I can start on that. So, I mean, what I would point everybody to is, you know, for the quarter we just reported in early November, we reported pro forma growth of 14%, for the quarter. So within striking distance of that 15%-20% medium term, which is a 3-to-5-year target for revenue growth. I think that, you know, what we said is, obviously, we'll give our guidance in March, but, you know, what we said is that, you know, we want to strive to be exiting next year, sort of in that range of the 15%-20%. As far as the macro, you know, components, you know, we've evolved a lot over the past three or four years, you know, primarily from, you know, processing for online gaming and sports betting. Now we're well diversified, both from the end markets that we serve within the global commerce channel, which is the biggest, the biggest, you know, channel at 56% of revenues. We're in, you know, we're bigger into online retail, into, into travel, into financial services, marketplaces, the gig economy, just to name a few. And so that, that, that really, you know, broadened the base that we're targeting within global commerce. And then we've added new channels as well, which helps with, you know, that diversification and those non-discretionary aspects, you know, with B2B, government and ISV, primarily, you know, delivered from the Paya business that we acquired. So we feel, you know, we feel really broadly diversified to kinda continue to grow through really, you know, any type of macro environment. Thank you, Chris. All right, well, you alluded to this a little bit, but let's talk a little bit about that Q4 2023 exit rate. So in Q3, as you mentioned, you were within striking distance of the 15%-20% revenue growth, but for Q4, the guidance is implying something slightly below that. So you mentioned numerous factors. There's the lapping of the World Cup in Q4 of last year. There's been some implementation delays and also the loss of a large customer. Could you elaborate on those and talk about the exit rate, but more importantly, the confidence that you have in re-acceleration off of that rate? Yeah. So I think, look, I mean, there's really not much to call out beyond, you know, that list. I think, you know, all those factors are gonna cause that sort of near term, you know, exit rate to, you know, probably come in slightly below. So that's been well, I think, telegraphed by now. You know, I would just continue to look at the channel growth construct that we've now been talking about for the past 2 quarters. So within that 14% pro forma growth rate, we have 3 primary channels. Again, global commerce, which grew 25%, pro forma in Q3. We see that, we see that channel, which is, again, our, our largest and fastest growing, you know, in the 20%-30% range, as sort of normalized growth, so kind of right smack in the middle for Q3, so I'd continue to, to think about that. For B2B government and ISV, that grew 16% pro forma in Q3, and the, the sort of near-term range that we think about for, for that channel is, you know, 15%-20%, kinda accelerating up to the, the higher end and maybe even beyond as we implement our playbook, for accelerating growth within the, the former Paya business. And then, our other channel, SMB, slightly declined 3.8% in Q3, which was actually an improvement from Q2, and we're continuing to look for ways to bring that channel back to closer to flattish growth, so it doesn't really detract from the overall growth rate, going forward. Excellent. Thank you, Chris. That was great context, and we'll walk through each of those three subsegments, if you will, in a little more detail in a minute here. But first, I wanna get back to something, there was a press release today related to this, and Vicky just alluded to it, but two items, really. One was the press release, which was the card-issuing capabilities, but you also referenced unified commerce, which has been more of a past few months type of topic. So maybe just a few thoughts on both card-issuing announcement and also the unified commerce offering. Sure. Thanks, Tim. So on card issuing, as we talked to our own customers and we looked at the Paya acquisition, we thought there was a significant opportunity for us to do card issuing. And we think of card issuing in three constructs, right? One construct is a physical card, and a physical card that you can use, either a retail customer can use for loyalty, or you can use that for payouts, or you can use it for compensation payments. Many aspects of a card that our customers would have found extremely useful, and we thought that was a construct. Second is virtual cards. So think of an OTA making a payment to an airline. How do you make that happen? A virtual card is the right mechanism for them because they can create a virtual card for each individual payment so that the reconciliation on any return is very easy to do, right? And third was using the card as a wallet. So think of a gaming business where you got your pay-ins coming to the wallet, then each time someone does a gaming transaction, you don't need to do a KYC or AML on the particular client, because the card gives you the confidence to do it, and you can pull the funds immediately to do a transaction, right? So those were the three sort of, I would say, macro use cases, and then we went segment by segment, and we broke them up into several use cases. I think the net upside was, hey, this is a significant opportunity. Most card issuance companies don't do it, don't do all three very well. They do one or two well, or they'll do one well and one not so well. So let's create our own that encompasses this, makes it sort of organic, and we can build on this capability. So we've announced that we are going live in E.U. immediately, and then we come in the first half, both with the U.K. and with the U.S., right? So that's the card issuing, which we're very excited about, and we think it's a significant opportunity. Omni, channel or, or, or omni-channel or integrated commerce, what do you call it? Unified commerce. Unified commerce. Yeah. Right. I'm sorry, I mixed up the names. It's very important. The biggest piece in that is how do you, how do you match transactions, right? So Tim goes and buys a coat online at Nordstrom. He actually does it at more expensive retailers, but I will take Nordstrom for example. And then he goes and does the return at the store. How do I know that that same transaction, I need to reverse the local sales tax in the same way that I had built the sales tax, and I reverse it so that his card gets the exact credit the way we had built it, right? So it's tokenizing that transaction to make it. Because many times when I've talked about omni-channel, people come up: "So are you in the hardware business?" No, we're not in the hardware business. We're in the business of identifying the transaction. The hardware, currently, we are working just with Verifone and with the retailer or the merchant who may have their own terminal, right? So that is also possible, either one of the two. We will obviously expand those offerings, but all we do with the hardware is we certify the hardware. We are not in the business of creating apps for the hardware or really working the hardware any differently than how they operate today. But again, we're very excited about that for two reasons. One, I think it improves our scale of RFPs, because many RFPs want an omni-channel presence, or even some airlines want an omni-channel so that you can do their local ticketing in the various markets as well as online. And it's, it's a very important one for us. Secondly, is just with the Paya acquisition, there's so many more applications we can do for ISVs as well as B2B customers with those two capabilities. So both of them are really exciting for us. Thank you, Vicky. All right, I mentioned earlier that we would do this, so I'd like to go through each of the three segments. For context, as Chris mentioned, there's global commerce, that's about 56% of revenue, so the largest and fastest growing component. There's the B2B government and ISV segment, which has a lot of the Paya business in there. That's about 18% of revenue. Yeah. Also we have the SMB or SMB direct business, which is about a quarter or 26% of revenue, these numbers as of last quarter. So let's make a, maybe a point or two on each, but first, let's start with global commerce. So there's this concept of bundling in e-commerce merchant acquiring. We see Braintree with the PayPal button. We see Fiserv with the Star and Accel debit networks, Chase with the additional banking services that they have and the large share of the card market. Let's just talk about how you can compete against those type of bundled offerings, and if indeed you are seeing those strategies resonate in the market. Yeah. So I think each one needs to figure their playground differently, and as you mentioned, three players with different playgrounds, right? The way we think about global commerce to start with is we think of that as which are the segments that we can, over time, derive appropriate economic rent with, right? And that has several components to it. So if you look at the traditional channels, that SafeCharge, which was our acquisition in 2019, grew with. They grew with gaming, and they grew it as a combination of two or three things. One was a combination of using front-end software. So Cashier, which is a front-end software, helps you to basically make the customer very sticky. Then you manage your pay-ins and ACH management of risk so that you get the payments in, even though you make the trade or you make a gaming transaction or gambling transaction before you actually get confirmation of the funds, and then you do payouts, right? So there are various revenue pools, because if you look at the actual processing side, you make probably five basis points on that transaction. But overall, if you look at the combination, it's an extremely profitable segment for us to go after. So that was gaming, where we built the entire infrastructure to really be very attractive to the gaming segment, and we have reasonable leadership in that. As we've looked at every segment, we've looked to how you can build leadership in that. So I'll give you an example of cruises without giving you the full detail, because obviously, we don't want our competitors to copy it tomorrow. But let's think of them as having 4 critical needs, and I'll mention the 2 last critical needs, not the first 2, right? If you look at them, they are having a big issue of friendly fraud on board, right? So this is, Tim, you going on board, having a drink, and saying, "I never had the drink." Right, so that is one problem they have. So how do you help them solve that? The second is between 70%-75% of the workforce is from Philippines. So they want the provider to be able to credit the accounts in Boracay, Cebu, and Makati, not necessarily only one account in Hong Kong, right? And so if we can do those two and the other two things that are very critical to them, you become really sticky, and that's a game plan. So we look at every subsegment, going deep and trying to build on that. We recently had a big tech company that we are working with or that we're proposing to work with that came and gave us a challenge of 24 APMs, right? And they said, "These are 24 APMs, can you work with them?" Right? We came back within a week, and we said, "Yeah, we've actually got all the 24 certified and working, so when do you want to start?" And their response to us is that they've gone to the four top acquirers, and we were way beyond the number two by a strong margin, and they felt like we had the capabilities to help them grow globally. Right, so it's a mix of all of these things that help us differentiate and build. So rather than saying, how do we compete with them? For us, it is, how do we manage the needs of these segments better than the others can even are thinking today, and then how do we get ahead? Well said, Vicky. Thank you. Let's move to B2B government and ISV. Again, you mentioned this is where a lot of the Paya business sits. Maybe just talk about a little bit some of the trends you're seeing there and some of the hopes for acceleration. Yeah. So, on the if you look at the B2B business, this was the old business Paya had from Sage Payments, where they basically did B2B for Sage customers. And one of the ways that they grew the business was embedding themselves into the accounting software, be it of ECI, be it of NetSuite, be it of Sage. So what we've done as we brought the businesses together is, A, we've gone and filled the hole of all of the other sort of accounting software that was not there, like a Xero, like Oracle and the other ERP systems. So that was one. Two, is we said, "How do we make it stronger?" So for one, they were a domestic US business. We made it a state-of-the-art North American business by adding Canada. Then we've added a whole lot of value-added services. They didn't have payouts, so we've added payouts. Now we are adding issuing and omnichannel to those businesses. So I think just if you look at a combination, the good news is, none of our principal competitors in acquiring have a B2B capability, right? So this gives us a differentiating power over going to the market with it. So that's as far as that is concerned. Then in government, Paya had created already a really good system of creating a consumer portal, where consumers could come in and make their payments of either utility, fines, et cetera. But they worked directly with municipalities. While that was a sticky business, the challenge is that sales and gestation period was too long. So we've taken our ISV segment. There is a lot of government ISVs. We've now attracted the government ISVs and said, "We'll do both. We'll go direct and go through government ISVs, and accelerate the growth of that business, and help even the ISVs serve the government clients a lot better." Lastly, on the ISV itself, I think there were some really good assets that Paya had, but they didn't have a strong commercial engine, so the sales force was poor. So we took our good commercial engine from Nuvei, and we've put it together with Paya so that we have an accelerated commercial engine to sell the assets that Paya had built. So we feel pretty confident of the growth rate in this segment. And while the segment, you know, last quarter came up from, you know, 12-13 to about 16%, we think it's, it's sort of somewhere in that 20% grower over the next year or two and accelerating. So we feel pretty good about that segment, as we sit today. Excellent. Let's hit the last component there, which is the SMB direct business. So this is the one that's had a little bit more growth challenges, sort of expecting it, I believe, to be flat to downish. Maybe just talk a little bit about that business and how we could maybe look to see it stabilize some. Yeah, so it's a business we don't want to differentially invest in it significantly today, but we want to manage it still for some products that can be helpful. So for example, things like, again, unified commerce and issuing are businesses we will bring to this channel so that we show some growth there. Secondly, we've not really used pricing in this segment. Most of our competitors do an annual increase of pricing, so we might, in the next few months, try to use that channel a little bit. But I think if you look at our medium-term outlook, as long as we are sort of flattish in this segment, we'll do fine, as it really helps us get to a good scale level to perform functions for the other segments. So that's how we are viewing it, as a way, way to, to look at how do you gain efficiency. We've also got a tiger team that's looking at, at basically all cost measures to be able to, again, increase efficiency. Are there suppliers we can reduce costs on? Our back-end processing, we've now moved clearing and settlement to ourselves versus using a legacy provider in between. That'll help us reduce cost for this too. So there's a whole bunch of measures that I think will improve the EBITDA margins and will, will ensure that we get to a flattish revenue growth rate, and I think that will, that will help our medium-term forecast quite nicely. Thank you, Vicky. We only have a few minutes left here. I'm gonna skip forward to a question around the pipeline. So you've publicly talked about the $100 million or so of annualized revenue from enterprise clients that you have in the pipeline. It's ready to go, contracted. Some of that was supposed to begin benefiting the numbers this year, but it's been, well, pushed out some into next year in various stages of go-live timelines across 2024. Maybe just talk us through a little bit some of the reasons for the implementation delays, and again, with the context that these, these were delays relative to your initial expectations. And then lastly, just in the interest of time, if you could work in just how much of a, a time delay are we talking in these implementations? Is it a few months or is it longer than that? Yeah, maybe I can start, Yeah. I think so. You're correct. Like, this is not a case where, you know, we want a piece of business, and then the customer came back and said, "Actually, let's push it off." This was our own expectation of how quickly we could go from signing a new piece of business to actually activating that new piece of business. You know, I think we probably applied a lot of the rhythm that we have gotten accustomed to in some of the end markets that we've been processing for a long time. So, you know, how businesses operate within the online gaming end market, for example. You know, as we extend into some of these other end markets and also move upstream as far as the size of customers that we're dealing with, all great things, they all operate at a different rhythm and at a different cadence. And so it's just a lot of learnings on our part as far as getting used to, you know, all these different cadences, if you will, across those end markets. And so we went back and just recalibrated our own expectations, and that was really what caused that kind of pushout that you talked about. I think that is a. Listen, as you go into new markets, we don't. We're beginning to see how Visa and Mastercard, the schemes and others, can also be playing a role that actually delays us, or we don't understand all the pieces that takes. In gaming, we had a good sort of set plan to deliver against. I think as we spend another year or two, I think we'll get a much better sense around the timelines, and we'll get a lot more efficient in being able to forecast it. So I see that as an opportunity going forward and for us to be able to streamline it better. Excellent. Thank you. I think we have time for one last one. Why don't we talk about the in-house processing efforts? So both in terms of the benefits that you receive on a qualitative basis, then we could recap some of the timing on some of when this will start to kick in. And then if you could quantify some of the benefits that we would see to the PNL from doing more of this processing in-house. In one question, you asked maybe five questions, Tim, but I'll try and answer as best as I can. But I think clearing and settlement of the back office for us, I think for us, it's a huge game changer in many ways. So if you think about so we've already implemented Canada. Canada's gone live right now. Obviously, we'll slowly migrate all of the customers to it, and then the U.S. happens in the first half of next year, right? That's the timing. I think what it does for us, what it does for us is like in Canada, we don't need an approval of our sponsor bank to onboard any customer that we want to onboard, given that we own the Mastercard and Visa BINs in our name and not in the bank's name. Secondly, it helps us with cost because obviously we've removed the middle person, which does processing for us. It makes us a lot more efficient. Thirdly, it helps us get authorization to a much better rate, and we've seen a difference between legacy provider doing that service and of ours, anything between 1%-2% in approval rate uplift. Fourth, it helps us get specialized reporting to very large clients who want very specialized reporting to understand their transactions, which getting through a legacy platform has been a nightmare, and we've been doing duplicate work to be able to supply this to them. Fourth, it gives us loyalty because there is an immediate, we can do instant settlement for our customers versus waiting for a 48-hour period to do settlement, right? So I've just listed off a few. It just gives you a sense of the strength, both in cost, but more importantly, in revenue generation and auth rate, as well as in loyalty with our customers. And the same we will prove out in the US, sort of starting in the middle of next year. So, on the financial side, I don't know if you want to- Yeah, we haven't, you know, we haven't really quantified it, but I think that's another example. You know, we reported adjusted EBITDA margins of 36.3% in Q3, which was a 40 basis points sequential acceleration from Q2. That's a really good baseline margin to think about as we continue to move higher over time towards our longer-term target of 50%+. Because that 36.3%, it fully absorbs the Paya business that we've integrated. It also fully absorbs, you know, the what we call the sub comps that we had from crypto and digital assets. So it's a baseline that we think we can, you know, march higher from, you know, further scale in the business. Initiatives like Vicky just talked about with insourcing, backend processing, card issuing, unified commerce, kind of everything that we talked about should all be supportive of, you know, growing that EBITDA margin over time. So and then, yeah, just to level set, the timing for the migration of the U.S. Yeah, it'll go live first half, and then we'll migrate those customers over the back half of next year. Thank you, Chris. On behalf of our team here and everyone at UBS, we wanna thank both Vicky and Chris for making the trip to join us here in Arizona, and it's been a pleasure hosting you guys. Thank you. See you.