Nuvei Corp (NVEI) 2023 Q2 法說會逐字稿

Good morning, ladies and gentlemen and thank you for standing by. Welcome to Nuvei Corporation's Second Quarter 2023 Earnings Call. As a reminder, this conference call is being recorded. I'll now turn the conference call over to Chris Mammone, Head of IR. Please go ahead, Mr. Mammone.

早上好，女士們先生們，感謝你們的支持。歡迎參加 Nuvei Corporation 2023 年第二季度財報電話會議。謹此提醒，本次電話會議正在錄音中。我現在將電話會議轉給 IR 主管 Chris Mammone。請繼續，馬蒙先生。

Thank you, operator, and thanks to everyone for joining us this morning. With us today are Philip Fayer, Chair and CEO; and David Schwartz, CFO. As a reminder, this conference call is being recorded and webcast and is copyrighted property of Nuvei. We broadcasted this information in whole or in part without written consent of Nuvei is prohibited. Earlier this morning, Nuvei issued a press release announcing financial results for the period ended June 30, 2023. The release as well as an accompanying supplemental slide deck is available on the Events section of our Investor Relations website, investors.nuvei.com.

謝謝您，接線員，也感謝大家今天早上加入我們。今天與我們在一起的有董事長兼首席執行官 Philip Fayer；和首席財務官大衛施瓦茨。謹此提醒，本次電話會議正在錄音和網絡直播，版權歸 Nuvei 所有。未經 Nuvei 書面同意，禁止我們全部或部分傳播此信息。今天上午早些時候，Nuvei 發布了一份新聞稿，宣布截至2023 年6 月30 日的財務業績。該新聞稿以及隨附的補充幻燈片可在我們的投資者關係網站Investors.nuvei.com 的活動部分獲取。

During this call, we may make certain forward-looking statements within the meaning of the applicable securities laws. Such forward-looking statements involve risks, uncertainties and other factors that may cause the actual results, performance or achievements of the business or developments in Nuvei's industry to differ materially from anticipated results, performance, achievements and developments expressed or implied by such forward-looking statements.

在本次電話會議中，我們可能會做出適用證券法含義內的某些前瞻性聲明。此類前瞻性陳述涉及風險、不確定性和其他因素，可能導致 Nuvei 行業的實際結果、業績或成就或業務發展與此類前瞻性陳述明示或暗示的預期結果、業績、成就和發展存在重大差異聲明。

Information about these factors that could cause actual results to differ materially from anticipated results or performance can be found in Nuvei's filings with the Canadian securities regulatory authority and on the company's website. Our discussion 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 and our ongoing performance, but they're not a supplement to and should not be considered in isolation from excessive for IFRS financial measures. Reconciliation of these measures to IFRS measures is available in our earnings release and MD&A. We'll open up the call to your questions after our prepared remarks during that portion of the call in order to get to as many people in queue within the allotted time, we ask that you limit yourself to 1 question and 1 follow-up. And with that, I'd like to now turn the call over to Phil.

有關這些可能導致實際結果與預期結果或業績產生重大差異的因素的信息，請參閱 Nuvei 向加拿大證券監管機構提交的文件以及該公司的網站。我們今天的討論將包括非國際財務報告準則指標，包括但不限於調整後的 EBITDA、調整後的淨利潤和調整後的每股淨利潤。管理層認為，非國際財務報告準則的結果對於增強我們的理解和我們的持續績效是有用的，但它們不是對國際財務報告準則財務指標的補充，也不應與過度的國際財務報告準則財務指標分開考慮。這些措施與 IFRS 措施的調節可在我們的收益發布和 MD&A 中找到。在電話的這一部分中，我們準備好發言後，我們將開始回答您的問題，以便在規定的時間內與盡可能多的排隊人員聯繫，我們要求您將自己限制在1 個問題和1 個後續行動。現在我想把電話轉給菲爾。

Thank you, Chris, and thank you all for joining the call this morning. We have a lot to share with you today. As you have seen, Nuvei had a solid quarter with total volume up 68% and revenue up 45%, and Organic revenue growth, excluding digital assets and crypto currencies was 20%. This growth underscores the continued strength and momentum in the business as we advance our strategic initiatives while reaching a number of significant milestones along the way.

謝謝克里斯，也感謝大家今天早上加入電話會議。今天我們有很多東西要與大家分享。正如您所看到的，Nuvei 季度表現穩健，總銷量增長 68%，收入增長 45%，有機收入增長（不包括數字資產和加密貨幣）為 20%。這一增長突顯了我們在推進戰略舉措的同時實現了一系列重要里程碑的過程中業務的持續實力和勢頭。

Furthermore, we have now both lapped and outgrown the digital assets and crypto currency headwinds in the past 12 months. With Paya largely integrated and now in the fold, my prepared remarks today include an additional onetime disclosure to expand on Nuvei's Evolution, our channels and related go-to-market strategies and current trends, which shape our outlook for the remainder of the year as well as our medium-term targets.

此外，在過去 12 個月裡，我們已經克服並克服了數字資產和加密貨幣的逆風。隨著Paya 基本整合併現已納入其中，我今天準備的講話包括額外的一次性披露，以擴展Nuvei 的Evolution、我們的渠道和相關的進入市場策略以及當前趨勢，這些因素塑造了我們對今年剩餘時間的展望：以及我們的中期目標。

As I think you'll appreciate, we have fundamentally changed the business and are favorably positioned for future growth. And given our strong and consistent financial performance, cash flow generation and de-leveraging, we will discuss some important announcements made today with respect to future capital allocation. Starting with our market position. Nuvei is a global payments platform with category-leading modular technology, growing rapidly with the addition of new end markets and use cases, geographies and capabilities. We are one of the few single global platforms today. This year alone, we have accelerated our offering in Colombia, in Chile, Peru, Brazil, Singapore, Hong Kong, Australia, UAE, South Korea, France and Japan, just to name a few. We are focused on being the technology partner of choice and are scaling the business with over 16 million daily interactions supported by more than 3,000 servers, 10 global data centers and innovating with 36 releases year-to-date driving 2,500 new features, functionality or enhancements. As you can see, we are constantly innovating. Importantly, with every passing day, we are increasing our product and technology gap versus the competition. The reality is that we have only 4 competitors who are able to serve their customers globally. This is not a segment where we can easily be disrupted by new entrants nor can someone easily acquire their way to the space, our right to win in this market is more compelling than ever.

我想您會意識到，我們已經從根本上改變了業務，並為未來的增長做好了有利的準備。鑑於我們強勁且持續的財務業績、現金流生成和去槓桿化，我們將討論今天發布的有關未來資本配置的一些重要公告。從我們的市場地位開始。 Nuvei 是一個全球支付平台，擁有行業領先的模塊化技術，隨著新的終端市場和用例、地域和功能的增加而快速增長。我們是當今為數不多的單一全球平台之一。僅今年一年，我們就加速了在哥倫比亞、智利、秘魯、巴西、新加坡、香港、澳大利亞、阿聯酋、韓國、法國和日本等地的服務。我們致力於成為首選的技術合作夥伴，並通過3,000 多台服務器、10 個全球數據中心支持的每日超過1600 萬次交互來擴展業務，並通過年初至今的36 個版本推動2,500 項新特性、功能或增強功能進行創新。正如您所看到的，我們在不斷創新。重要的是，隨著時間的推移，我們的產品和技術與競爭對手的差距正在擴大。現實情況是，我們只有 4 個競爭對手能夠為全球客戶提供服務。這不是一個我們可以輕易被新進入者擾亂的細分市場，也不是其他人可以輕易進入該領域的領域，我們在這個市場上獲勝的權利比以往任何時候都更加引人注目。

For those that have been tracking our progress, you know that we have spent a lot of effort building a world-class go-to-market playbook and have successfully made the Nuvei brand famous for all the right reasons. Integrity, transparency and capability. We are considered a prominent voice in payments today with large customers as well as known brands across a mix of discretionary and nondiscretionary as well as cyclical and noncyclical end market use cases.

對於那些一直關注我們進展的人來說，您知道我們花費了大量的精力來構建世界一流的上市策略，並成功地使 Nuvei 品牌因所有正確的原因而聞名。誠信、透明、能力強。我們被認為是當今支付領域的重要代言人，在全權委託和非全權委託以及週期性和非週期性終端市場用例中，我們擁有大客戶和知名品牌。

As a brief update on Paya, the overall integration and achievement of our estimated $21 million cost synergy target is on plan, and we've begun to execute on our strategy to realize up to $100 million of incremental revenue by 2027. We are at a new and exciting juncture in our company's evolution, with Paya now in the fold and having lapped the full year's impact of digital assets and crypto currencies, we want to share some incremental insights into how we've organized our commercial organization, reframed the market opportunity, explain why we're winning and help you better understand the growth drivers and trajectory of the business.

作為 Paya 的簡要更新，我們預計 2100 萬美元成本協同目標的整體整合和實現正在按計劃進行，我們已經開始執行我們的戰略，以期到 2027 年實現高達 1 億美元的增量收入。我們公司的發展正處於一個令人興奮的新時刻，隨著Paya 的加入，並經歷了全年數字資產和加密貨幣的影響，我們希望分享一些關於我們如何組織商業組織、重新構建市場機會的增量見解，解釋我們為何獲勝，並幫助您更好地了解業務的增長動力和軌跡。

Today, we operate the commercial organization through 3 defined channels. Our core channel, which is global commerce, our emerging channel, which is comprised of B2B, government and integrated payments and our legacy channel, which is our SMB portfolio. Our core and emerging growth channels address a large and under-penetrated global TAM, which on a combined basis equates to more than $100 trillion for which we believe we have a unique modular platform to compete and win providing ample white space with deep pools of opportunity globally.

如今，我們通過 3 個明確的渠道運營商業組織。我們的核心渠道是全球商務，我們的新興渠道由 B2B、政府和綜合支付組成，而我們的傳統渠道是我們的中小企業投資組合。我們的核心和新興增長渠道解決了龐大且滲透率較低的全球TAM，其總價值超過100 萬億美元，我們相信我們擁有獨特的模塊化平台來競爭並獲勝，提供充足的空白空間和深層次的機會全球。

As I'll describe, the key tenets that have made us a category leader in our core global commerce channel great technology, capabilities, global reach and investment in our go-to-market function are 100% applicable to our emerging B2B, government and integrated payments channel. By applying the same playbook that significantly accelerated our growth following the SafeCharge acquisition just a few years ago, we expect to accelerate the growth profile of our emerging channel. Now double-clicking on the results for the quarter by channel, starting with our core channel, global commerce, which is our largest and fastest-growing channel.

正如我將描述的，使我們成為核心全球商業渠道類別領導者的關鍵原則，即卓越的技術、能力、全球影響力和對我們的市場推廣功能的投資，100% 適用於我們新興的B2B、政府和綜合支付渠道。通過應用幾年前收購 SafeCharge 後顯著加速我們增長的相同策略，我們預計將加速我們新興渠道的增長。現在按渠道雙擊本季度的結果，從我們的核心渠道全球商務開始，這是我們最大且增長最快的渠道。

Revenue grew 16% to $172 million and 35%, excluding digital assets and cryptocurrencies and represented 56% of total revenue in the second quarter. We are very pleased with these results as we continue to take market share and outgrow our peers. To reiterate, we have now both lapped and outgrown the digital assets on crypto currency headwinds in the past 12 months. With the introduction of our unified commerce as one of our many product enhancements, which offers card-presence solutions, single token and unified reporting, we've expanded the scope of this channel beyond global e-commerce to global commerce as we believe that our unified offering now opens an entirely new tab previously unavailable to Nuvei. In terms of new client wins, as you may have seen from the Nuvei press releases, we had an exceptional number of wins across all regions, including the signing of one of the fastest-growing global online marketplaces with more than 800 million users. This new enterprise customer partnered with Nuvei to expand globally and support its rapid growth in Europe and the U.S. and comes on the heels of our win with Global Market player Shein in just a few months ago.

收入增長 16% 至 1.72 億美元，不包括數字資產和加密貨幣則增長 35%，佔第二季度總收入的 56%。我們對這些結果感到非常滿意，因為我們繼續佔據市場份額並超越同行。重申一下，在過去 12 個月裡，我們已經超越了數字資產，並超越了加密貨幣的逆風。隨著我們推出統一商務作為我們眾多產品增強功能之一，它提供卡存在解決方案、單一令牌和統一報告，我們已將該渠道的範圍從全球電子商務擴展到全球商務，因為我們相信我們的統一產品現在打開一個全新的選項卡，之前Nuvei 無法使用該選項卡。在贏得新客戶方面，正如您從 Nuvei 新聞稿中看到的那樣，我們在所有地區都贏得了大量的勝利，包括與擁有超過 8 億用戶的增長最快的全球在線市場之一簽約。這個新的企業客戶與 Nuvei 合作，在全球範圍內擴張並支持其在歐洲和美國的快速增長，緊接著我們幾個月前贏得了全球市場參與者 Shein。

We partnered with Cart.com, an incredible opportunity to integrate payments, fulfillment, shopping carts and marketing capabilities into a single offering with Nuvei becoming its exclusive payments partner. In online car rentals, we partnered with rent cars, the largest online car rental platform in the Americas and a global leader in the segment for whom we will be providing our full set of capabilities across LATAM. In mobility, we welcome inDrive international ride-hailing service with more than 175 million downloads operating in 47 countries and which partnered with Nuvei to improve their checkout experience and loyalty programs. Incidentally, inDrive was the second most downloaded mobility app globally in 2022. On the travel side, we won several major airlines and now servicing 4 of the top 20 global airlines. And as part of our efforts to continue innovating and supporting new experiences within the payment ecosystem, we've partnered with a top 5 car manufacturer to pilot in-car payments in APAC with ample opportunity for wallet share expansion. We also saw significant wallet share expansion opportunities with existing customers our engagement levels with existing customers remain strong across all regions and capabilities. We are now firmly at the table with Fortune 500, Fortune 1000 and Internet top growing stars globally. And while just a sample of what we have listed about is not live yet, they're in various stages of activation. We feel really good about our growth vectors across the 4 regions of operations today. When considering the mix of growth in this channel, approximately 80% of our growth comes from existing customers, where we expand our wallet share by cross-selling new capabilities or geographies while new customers represents approximately 20%.

我們與 Cart.com 合作，這是一個將支付、履行、購物車和營銷功能集成到單一產品中的絕佳機會，Nuvei 成為其獨家支付合作夥伴。在在線汽車租賃方面，我們與 Rent Car 合作，Rent Car 是美洲最大的在線汽車租賃平台，也是該領域的全球領導者，我們將為他們提供整個拉丁美洲的全套功能。在移動出行方面，我們歡迎 inDrive 國際乘車服務，其下載量超過 1.75 億次，在 47 個國家/地區運營，並與 Nuvei 合作改善其結賬體驗和忠誠度計劃。順便說一句，inDrive 是 2022 年全球下載量第二大的移動應用程序。在旅行方面，我們贏得了幾家主要航空公司的青睞，現在為全球前 20 名航空公司中的 4 家提供服務。作為我們在支付生態系統中繼續創新和支持新體驗的努力的一部分，我們與一家排名前五的汽車製造商合作，在亞太地區試點車載支付，為擴大錢包份額提供了充足的機會。我們還看到了與現有客戶的重要錢包份額擴張機會，我們與現有客戶的互動水平在所有地區和能力上仍然保持強勁。我們現在與全球《財富》500 強、《財富》1000 強和互聯網頂尖成長之星一起穩坐席位。雖然我們列出的只是一個示例尚未上線，但它們正處於不同的激活階段。我們對今天 4 個運營區域的增長向量感到非常滿意。考慮到該渠道的增長組合時，我們約 80% 的增長來自現有客戶，我們通過交叉銷售新功能或地域來擴大我們的錢包份額，而新客戶約佔 20%。

One thing we've learned more recently is that implementation time lines aren't equal across all end markets around the world. This is something that is relatively new for us and something we will strive to communicate better to our shareholders. The fact is that it takes more time to activate large global customers and our prior expectations for the timing of implementation was too aggressive. Nevertheless, we have approximately $100 million in annualized good revenue in various stages and are highly confident we will activate these customers over the next few quarters.

我們最近了解到的一件事是，全球所有終端市場的實施時間並不相同。這對我們來說是相對較新的事情，我們將努力與股東更好地溝通。事實上，激活全球大客戶需要更多時間，而且我們之前對實施時機的預期過於激進。儘管如此，我們在各個階段都有大約 1 億美元的年化良好收入，並且非常有信心在未來幾個季度激活這些客戶。

Turning now to our emerging channel, which includes B2B, government and integrated payments. We believe this is the next frontier to monetize Nuvei's unique capabilities with our deep ERP integration and proprietary software, which we expect to accelerate by enabling our commercial playbook. Emerging channel, revenue grew 13% on a pro forma basis to $54 million and represented 18% of the total revenue in the second quarter. Starting with B2B, there's strong momentum in B2B payments given the enormous white space driven by the ongoing shift away from inefficient check-based payments towards the conversion and accelerating adoption of electronic payments, which drives greater automation and efficiencies for businesses. For perspective, it is estimated that B2B represents a $25 trillion TAM globally.

現在轉向我們的新興渠道，其中包括 B2B、政府和綜合支付。我們相信，這是通過我們的深度 ERP 集成和專有軟件實現 Nuvei 獨特功能貨幣化的下一個前沿領域，我們希望通過啟用我們的商業劇本來加速這一進程。新興渠道收入預計增長 13%，達到 5400 萬美元，佔第二季度總收入的 18%。從 B2B 開始，B2B 支付發展勢頭強勁，因為從低效的支票支付向電子支付的轉換和加速採用帶來了巨大的空白，這推動了企業更高的自動化和效率。從長遠來看，B2B 估計代表全球 25 萬億美元的 TAM。

Today, our proprietary accounts receivable automation module that sits on top of the ERP and in between our payment engine is designed specifically for the nuance and complex use cases for B2B transactions and acts as a billing engine, providing our customers enhanced tools to collect receivables more quickly, streamline back-office processes and reconcile order cash data within their core ERP accounting platforms. With deep integrations into our ERP partners, we facilitate the customer experience while helping our ERP partners create stickier offerings and increase their software win rates in the market. As you can appreciate, leveraging Nuvei's many existing competencies with our seamless global reach, our vast local payment acceptance options our incident and automated payout capabilities and our embedded finance with specific focus on factoring in addition to AR automation, drive a comprehensive suite of solutions to enable our B2B customers to grow efficiently.

如今，我們專有的應收賬款自動化模塊位於ERP 之上和我們的支付引擎之間，專為B2B 交易的細微差別和復雜用例而設計，並充當計費引擎，為我們的客戶提供增強的工具來收集更多應收賬款快速簡化後台流程並在核心 ERP 會計平台內核對訂單現金數據。通過與我們的 ERP 合作夥伴的深度集成，我們促進了客戶體驗，同時幫助我們的 ERP 合作夥伴創建更具粘性的產品並提高他們的軟件在市場上的獲勝率。正如您所理解的，利用Nuvei 的許多現有能力以及我們無縫的全球影響力、我們廣泛的本地支付接受選項、我們的事件和自動支付功能以及我們的嵌入式金融（除了AR 自動化之外，還特別關注保理），推動一整套解決方案使我們的 B2B 客戶能夠高效增長。

Historically, we have focused our commercial efforts primarily within the Sage, Acumatica and ECI ERP ecosystems. This quarter, we greatly expanded our TAM by adding 2 other global ERP leaders Infor and SAP to our list of partners and we plan on adding Microsoft Dynamics, the largest ERP player in the world later this year. We have now expanded our ERP engagements beyond the U.S. to all regions of the globe. Combined, we estimate these expansions will increase our ability to reach more than 3 million ERP customers globally. With respect to the performance in this year's second quarter, new account on boards were up 27% versus the previous year same period, which we believe lays the foundation to expand our growth in 2024.

從歷史上看，我們的商業工作主要集中在 Sage、Acumatica 和 ECI ERP 生態系統內。本季度，我們通過將另外 2 個全球 ERP 領導者 Infor 和 SAP 添加到我們的合作夥伴列表中，大大擴展了我們的 TAM，並且我們計劃在今年晚些時候添加世界上最大的 ERP 廠商 Microsoft Dynamics。現在，我們已將 ERP 業務從美國擴展到全球所有地區。綜合起來，我們估計這些擴張將提高我們接觸全球超過 300 萬 ERP 客戶的能力。就今年第二季度的業績而言，董事會新賬戶較去年同期增長了27%，我們相信這為2024年擴大增長奠定了基礎。

In government, we helped 2,000 agencies, public utilities and municipalities in 30 states create streamlined engagements with their citizens. Our government offering is powered by our recently enhanced proprietary applications, Utility Connect and Citizens Portal, which seamlessly bolt on top of the agency's ERP software and offers an instant digital experience to hand citizen's engagement that streamlines and reports applicable usage, account invoicing, auto pay capabilities and simplified workflow, thus eliminating the cost and hassle with late and paper-based payments. Here, we go to market both directly to the agencies and more recently, via software focused partnerships.

在政府方面，我們幫助 30 個州的 2,000 個機構、公共事業機構和市政當局簡化了與公民的互動。我們的政府產品由我們最近增強的專有應用程序、Utility Connect 和Citizens Portal 提供支持，這些應用程序無縫地連接在該機構的ERP 軟件之上，並提供即時數字體驗來提高公民的參與度，從而簡化和報告適用的使用情況、帳戶發票、自動支付功能和簡化的工作流程，從而消除延遲付款和紙質付款的成本和麻煩。在這裡，我們直接向代理機構營銷，最近又通過以軟件為重點的合作夥伴關係進行營銷。

Post acquisition, we are enhancing the payment functionality to include open banking payments and payouts wherever applicable, along with expanding the footprint of our offering beyond the United States. In the quarter, new client wins included the U.S. Virgin Islands, the cities of St. Petersburg, Florida and Erie, Colorado to support the main public water utilities in those municipalities and Llano County, Texas for processing property taxes amongst many other wins.

收購後，我們正在增強支付功能，以包括開放銀行支付和適用的支付，同時將我們的產品覆蓋範圍擴展到美國以外。本季度，新贏得的客戶包括美屬維爾京群島、佛羅里達州聖彼得堡市和科羅拉多州伊利市，以支持這些城市和德克薩斯州亞諾縣的主要公共水務公司處理財產稅，以及其他許多勝利。

In total, the earlier results here to are compelling. This quarter alone saw more than 10% in annualized new business growth as we're successfully winning both new partners and municipalities. We believe government growth can also accelerate to over 20% in the medium term.

總的來說，早期的結果是令人信服的。由於我們成功贏得了新的合作夥伴和市政當局，僅本季度，年化新業務增長就超過 10%。我們相信政府經濟增長在中期內也能加速至 20% 以上。

Moving now to Integrated Payments. While it's early days, the monetization opportunities for Nuvei with software partners based on embedding our unified commerce capabilities into the ecosystems of global software and technology partners are very compelling. Integrated payments is an enormous global market opportunity with a TAM of approximately $35 trillion and like global commerce and B2B, we believe our capabilities are uniquely suited to help our integrated partners thrive globally. To support the varying business models of our integrated partners, we launched this quarter our fully managed PayFac as a service offering, which includes onboarding, reporting, fraud management and configurable funding options with a comprehensive road map of additional functionality under development. This quarter alone, we on-boarded 2 very large ISVs, both processing over $1 billion in annual volume and servicing over 20,000 unique locations across North America. Based on our current capabilities, coupled with our investment road map, we believe we have the potential to be the partner of choice for mid-market integrated partners globally.

現在轉向集成支付。雖然現在還處於早期階段，但 Nuvei 與軟件合作夥伴基於將我們的統一商務功能嵌入到全球軟件和技術合作夥伴的生態系統中而獲得的貨幣化機會非常引人注目。集成支付是一個巨大的全球市場機遇，其 TAM 約為 35 萬億美元，與全球商業和 B2B 一樣，我們相信我們的能力非常適合幫助我們的集成合作夥伴在全球範圍內蓬勃發展。為了支持我們集成合作夥伴的不同業務模式，我們於本季度推出了完全託管的PayFac 即服務產品，其中包括入職、報告、欺詐管理和可配置的融資選項，以及正在開發的附加功能的全面路線圖。僅本季度，我們就聘請了 2 家超大型 ISV，年處理量均超過 10 億美元，並為北美各地 20,000 多個獨特地點提供服務。基於我們目前的能力，加上我們的投資路線圖，我們相信我們有潛力成為全球中端市場綜合合作夥伴的首選合作夥伴。

In summary, we think there's enormous opportunity here for Nuvei to accelerate the growth of our emerging channel to 20% plus over the medium term. Finally, turning to our legacy channel, which predominantly consists of our nonintegrated stand-alone SMB portfolio, pro forma revenue declined 5% to $81 million and represented 26% of the revenue in the second quarter. Specifically, the legacy business is more sensitive to the prevailing macro conditions that can impact same-store sale trends as such, Q2 marked the second straight quarter where we saw a slowdown in same-store sales versus the previous year. Nuvei's legacy channel is a mature business. And while we'll continue to provide full support and remain loyal to our customers, it is not expected to be a key focus of our growth.

總之，我們認為 Nuvei 有巨大的機會在中期內將我們的新興渠道的增長加速到 20% 以上。最後，轉向我們的傳統渠道（主要由我們的非集成獨立中小企業產品組合組成），預計收入下降 5% 至 8100 萬美元，佔第二季度收入的 26%。具體而言，傳統業務對可能影響同店銷售趨勢的當前宏觀條件更加敏感，因此，第二季度標誌著我們連續第二個季度同店銷售較上年放緩。 Nuvei 的傳統渠道是一項成熟的業務。雖然我們將繼續提供全力支持並保持對客戶的忠誠，但預計這不會成為我們增長的關鍵焦點。

Bringing it all together, you now have better visibility for each of our channels, which should give you more insights into our overall growth. To summarize, we have fundamentally changed our business, significantly increased our TAM and expanded our technology use cases. We have category-leading growth in our core global commerce channel, 35% growth, excluding digital assets and cryptocurrencies and $100 million in pending new business. We also have a defined path to accelerate growth into the 20% range for our emerging channel of B2B, government and integrated payments. Finally, over time, as the legacy channel becomes a smaller portion of the overall business, the impact to our consolidated growth rate will become less meaningful. As it relates to the medium-term outlook for our consolidated growth, while we execute on our expanded distribution and end markets in pursuit of these growth initiatives, we feel that it's prudent for now to amend our medium-term revenue growth target to a range of 15% to 20%. We remain confident that we can grow consistently within this range.

將所有這些結合在一起，您現在可以更好地了解我們的每個渠道，這應該可以讓您更深入地了解我們的整體增長。總而言之，我們從根本上改變了我們的業務，顯著增加了我們的 TAM 並擴展了我們的技術用例。我們的核心全球商業渠道實現了行業領先的增長，增長了 35%（不包括數字資產和加密貨幣）以及 1 億美元的待定新業務。我們還制定了明確的路徑，將新興的 B2B、政府和綜合支付渠道的增長加速至 20%。最後，隨著時間的推移，隨著傳統渠道在整體業務中所佔的比例越來越小，對我們綜合增長率的影響將變得不那麼有意義。由於它關係到我們綜合增長的中期前景，在我們執行擴大的分銷和終端市場以追求這些增長計劃的同時，我們認為目前將我們的中期收入增長目標修改為一個範圍是謹慎的15%至20% 。我們仍然有信心能夠在此範圍內持續增長。

Turning now to an update on technology, product innovation. A few key highlights for the quarter include, we are on track to in-source North American processing with Canada being finalized by year end in the United States by mid-2024. This is an important step as it will allow us to normalize all operational functions globally, drive greater efficiencies and standardize processes, in addition to improving our operating margin in the region. We are continuing to invest in our advanced APM offering, now supporting 634 alternative payment methods available to our customers globally. We have also launched Self APM enrollment functionality in our merchant dashboard, allowing our customers to select and enable additional payment methods instantly.

現在轉向技術和產品創新的更新。本季度的幾個關鍵亮點包括，我們有望在北美進行內源加工，並於年底前在美國完成加拿大加工，並於 2024 年中期完成。這是重要的一步，因為它將使我們能夠在全球範圍內實現所有運營職能的正常化，提高效率並標準化流程，同時提高我們在該地區的運營利潤率。我們將繼續投資先進的 APM 產品，目前支持全球客戶可用的 634 種替代支付方式。我們還在商家儀表板中推出了自助 APM 註冊功能，使我們的客戶能夠立即選擇並啟用其他付款方式。

We've launched our AI-driven data analytics platform, providing insights to help optimize approval rates for customers by as much as 1% to 2%. But here, we are just scratching the surface and continue to identify new opportunities in traditional AI machine learning and generative AI to improve the outcomes and the overall customer experience. For generative AI in particular, we're starting to use it in customer service queries to support our compliance and legal teams as well as for customer onboarding to name just a few of the emerging use cases. But unlike others, we don't necessarily believe AI is purely a cost reduction opportunity, but rather, it will help us scale the business faster and provide greater efficiencies, thereby allowing us to expand our operating margins over time.

我們推出了人工智能驅動的數據分析平台，提供見解以幫助將客戶的批准率優化高達 1% 到 2%。但在這裡，我們只是觸及了表面，並繼續在傳統人工智能機器學習和生成人工智能中尋找新的機會，以改善結果和整體客戶體驗。特別是對於生成式人工智能，我們開始在客戶服務查詢中使用它來支持我們的合規和法律團隊以及客戶入職（僅舉幾個新興用例）。但與其他人不同的是，我們不一定認為人工智能純粹是一個降低成本的機會，而是它將幫助我們更快地擴展業務並提供更高的效率，從而使我們能夠隨著時間的推移擴大我們的運營利潤。

Additionally, we continue to advance our domestic processing capabilities for global airline customers, providing them with more compelling acceptance offering across every major market in which they operate. And finally, we have released the first phase of our new global chargeback suite, which we expect to benefit our customers by automating significant portions of the dispute resolution process. So as you can appreciate, we are not standing still every new capability drives greater opportunity to deeply engage with our customers as we focus on helping them grow their businesses.

此外，我們繼續為全球航空公司客戶提高國內處理能力，為他們在其運營的每個主要市場提供更具吸引力的接受服務。最後，我們發布了新的全球退款套件的第一階段，我們希望通過自動化爭議解決流程的重要部分來使我們的客戶受益。因此，正如您所理解的，我們不會停滯不前，每一項新功能都會帶來更多與客戶深入互動的機會，因為我們專注於幫助他們發展業務。

Turning now to capital allocation strategy. We continue to be highly disciplined in our approach. During the second quarter, we focused on de-leveraging, repaying $55 million of our outstanding debt, bringing our leverage ratio down to 2.76x at the end of June. This puts us in a very comfortable leverage ratio and gives us optionality. While we expect to continue prioritizing debt repayment, we will also explore opportunities to expand our use cases, end markets, capabilities and geographic reach via strategic M&A as appropriate. In terms of our ongoing commitment to returning excess capital to shareholders and giving careful consideration to our limited float, we are introducing a quarterly cash dividend, which for this quarter is $0.10 per share. With the dividend in place and as one of Nuvei's largest shareholders, I have elected to forgo any stock-based compensation going forward, thereby further aligning my compensation with the interest of all shareholders.

現在轉向資本配置策略。我們在我們的方法中繼續保持嚴格的紀律。第二季度，我們專注於去槓桿化，償還了 5500 萬美元的未償債務，使我們的槓桿率在 6 月底降至 2.76 倍。這使我們處於一個非常舒適的槓桿比率，並給了我們選擇權。在我們期望繼續優先考慮債務償還的同時，我們還將酌情通過戰略併購探索擴大我們的用例、終端市場、能力和地理覆蓋範圍的機會。鑑於我們持續致力於向股東返還多餘資本並仔細考慮我們有限的流通量，我們將推出季度現金股息，本季度每股現金股息為 0.10 美元。隨著股息到位，作為 Nuvei 最大的股東之一，我選擇放棄未來任何基於股票的薪酬，從而進一步使我的薪酬與所有股東的利益保持一致。

I'll now discuss recent market trends and how that informs our views for the current quarter and the rest of the year. Daily average volume through July and early August have remained solid, and we're not seeing any signs that the near-term macro environment has changed. We are, however, revising our full year outlook driven by 2 factors: first, the delayed timing of new business versus prior expectations and second, our recent decision to afford a large customer.

我現在將討論最近的市場趨勢以及它如何影響我們對本季度和今年剩餘時間的看法。 7 月和 8 月初的日均成交量保持穩定，我們沒有看到任何近期宏觀環境發生變化的跡象。然而，我們正在修改我們的全年展望，這是由兩個因素驅動的：首先，新業務的時間與之前的預期相比有所延遲，其次，我們最近決定為大客戶提供服務。

Dave will cover the updated outlook in more detail. Despite this near-term revision, I never felt better about how Nuvei is positioned to accelerate its growth potential over the long term. We have a rapidly growing core global commerce channel and a phenomenal potential in our emerging B2B, government and integrated payments channel, and we're executing very well against the wealth of opportunities across the entire business. Before turning the call over to Dave, I'd like to welcome our new recently appointed board member, Coretha Rushing, Coretha joined Nuvei Board with over 36 years of human resource experience. She is a former Chief Human Resource Officer at Equifax and serves on the Boards of both ThredUp and 2U Inc. She also further strengthens our corporate governance by increasing the number of independent directors and advances our Board of diversity as Chair of Nuvei, I look forward to working and learning from her. And to our Nuvei colleagues, I want to thank you for all your hard work and dedication you guys are simply amazing. With that, I'll now turn over the call to Dave.

戴夫將更詳細地介紹更新後的展望。儘管進行了近期的調整，但我對 Nuvei 如何定位以加速其長期增長潛力感到從未有過的好感。我們擁有快速增長的核心全球商業渠道，以及新興的 B2B、政府和綜合支付渠道的巨大潛力，而且我們在整個業務中的大量機會方面表現出色。在將電話轉給 Dave 之前，我要歡迎我們最近任命的新董事會成員 Coretha Rushing，Coretha 加入 Nuvei 董事會時擁有超過 36 年的人力資源經驗。她是 Equifax 的前首席人力資源官，並在 ThredUp 和 2U Inc. 的董事會任職。她還通過增加獨立董事的數量進一步加強我們的公司治理，並作為 Nuvei 主席推進我們董事會的多元化，我期待著向她工作和學習。對於我們的 Nuvei 同事，我要感謝你們的辛勤工作和奉獻精神，你們真是太棒了。這樣，我現在將把電話轉給戴夫。

Thanks, Phil, and good morning, everyone. I'll start by reviewing our financial performance for the second quarter I'll then discuss our outlook for the third quarter and fiscal year 2023. Looking at our performance during the quarter, we are pleased with our execution through the first half of the year. For Q2 specifically, it is notable that we realized some very significant milestones. We achieved in excess of $50 billion in total volume, $300 million in revenue and $100 million in adjusted EBITDA for the first time in the company's history. These quarterly accomplishments speak to our success in scaling our platform. And yet in terms of our overall runway for growth, we are in the early innings with so much opportunity still ahead of us. For the second quarter, total volume increased by 68% to $51 billion and was within our outlook range. Results were driven by our focused investments and execution within our global commerce channel and the inclusion of Paya for the full quarter.

謝謝菲爾，大家早上好。我將首先回顧我們第二季度的財務業績，然後討論我們對第三季度和 2023 財年的展望。看看我們本季度的業績，我們對上半年的執行情況感到滿意。特別是對於第二季度，值得注意的是我們實現了一些非常重要的里程碑。我們在公司歷史上首次實現了總銷量超過 500 億美元、收入超過 3 億美元、調整後 EBITDA 超過 1 億美元的目標。這些季度成就證明了我們在擴展平台方面取得的成功。然而，就我們的整體增長而言，我們還處於起步階段，前方仍有很多機會。第二季度總成交量增長 68% 至 510 億美元，在我們的預期範圍內。結果是由我們在全球商業渠道中的重點投資和執行以及整個季度將 Paya 納入其中所推動的。

E-commerce volume represented 88% of total volume in the period. Revenue for the quarter was $307 million, up 45% year-over-year and essentially aligned with the high end of our outlook range. Paya contributed $76 million of revenue during Q2. As a reminder, all revenue figures for Paya are expressed net of interchange to be consistent with our accounting treatment of revenue. Excluding Paya, organic revenue growth was 9% in the quarter. This reflects the impact from the decrease in revenue relating to digital assets and cryptocurrencies. Adjusting for this factor, organic growth at constant currency and excluding digital assets and cryptocurrencies was 20%. From a regional perspective, we experienced strong growth.

電子商務交易量占同期總交易量的88%。該季度收入為 3.07 億美元，同比增長 45%，基本符合我們預期範圍的上限。 Paya 在第二季度貢獻了 7600 萬美元的收入。提醒一下，Paya 的所有收入數據均以扣除互換後的淨值表示，以與我們對收入的會計處理保持一致。不包括 Paya，該季度有機收入增長 9%。這反映了與數字資產和加密貨幣相關的收入下降的影響。調整這一因素後，按固定匯率計算且不包括數字資產和加密貨幣的有機增長為 20%。從區域角度來看，我們經歷了強勁的增長。

In North America, revenue grew by 108%. Latin America grew by 77% and Asia Pacific grew by 67%. In the Europe, Middle East, Africa region, reported revenue was essentially flat year-over-year due to the $15 million revenue decrease relating to digital assets and cryptocurrencies excluding the impact of digital assets and cryptocurrencies, the EMEA region growth would have been 17% in the quarter. Consistent with our focus on driving incremental gross profit dollars through expanding wallet share with our customers, gross profit increased by $78 million to $253 million compared to last year's second quarter, representing gross margin in excess of 82%.

在北美，收入增長了 108%。拉丁美洲增長了 77%，亞太地區增長了 67%。在歐洲、中東、非洲地區，報告收入同比基本持平，原因是與數字資產和加密貨幣相關的收入減少了1500 萬美元，排除數字資產和加密貨幣的影響，歐洲、中東和非洲地區的增長將為17本季度的%。我們致力於通過擴大與客戶的錢包份額來增加毛利潤，與去年第二季度相比，毛利潤增加了 7800 萬美元，達到 2.53 億美元，毛利率超過 82%。

Selling, general and administrative expenses in the second quarter increased by $75 million or 51% year-over-year to $222 million. Of this increase, $63 million can be attributable to the contribution of SG&A from Paya across all expense items, including commissions, employee compensation and depreciation and amortization. Share-based payments increased by $3 million versus last year. The majority of this increase is due to the contribution from share-based payments related to the Paya team members who joined Nuvei. As a Percentage of revenue, share-based expense continued to decrease from 15% in Q2 last year to under 12% in the second quarter of this year. We expect share-based expense to continue declining as a percentage of revenue over time. Adjusted EBITDA for the quarter was $110 million and was above the top end of our outlook range, representing an adjusted EBITDA margin of 36% in the quarter.

第二季度的銷售、一般和管理費用同比增加 7500 萬美元，即 51%，達到 2.22 億美元。其中，6,300萬美元可歸因於Paya對所有費用項目的SG&A貢獻，包括佣金、員工薪酬以及折舊和攤銷。與去年相比，股份支付增加了 300 萬美元。這一增長的大部分是由於與加入 Nuvei 的 Paya 團隊成員相關的股份支付的貢獻。股份費用佔收入的比例持續下降，從去年第二季度的 15% 降至今年第二季度的 12% 以下。我們預計，隨著時間的推移，基於股份的費用佔收入的百分比將繼續下降。本季度調整後 EBITDA 為 1.1 億美元，高於我們展望範圍的上限，即本季度調整後 EBITDA 利潤率為 36%。

Looking at other line items on the income statement, Net finance cost was $28 million compared to Net Finance income of $4 million in last year's second quarter. The main driver of this delta was an increase in finance costs to service our outstanding debt including the new $800 million credit facility we entered into in late February in connection with financing the Paya acquisition. Going forward, as we use excess cash to delever, we expect this will have a positive impact on finance costs. Net income for the quarter was $12 million or $0.07 per share compared to net income of $35 million or $0.23 per diluted share. As I just mentioned, the $31 million increase in net finance costs was the largest contributor to the reduction in net income. Adjusted net income was $58 million or $0.39 per diluted share for the quarter.

看看損益表上的其他項目，淨財務成本為 2800 萬美元，而去年第二季度的淨財務收入為 400 萬美元。這一增量的主要驅動因素是償還未償債務的財務成本增加，包括我們在 2 月底為收購 Paya 融資而簽訂的新的 8 億美元信貸安排。展望未來，隨著我們使用過剩現金去槓桿化，我們預計這將對財務成本產生積極影響。本季度淨利潤為 1200 萬美元，即每股 0.07 美元，而淨利潤為 3500 萬美元，即稀釋後每股收益 0.23 美元。正如我剛才提到的，淨財務成本增加3100萬美元是淨收入減少的最大原因。該季度調整後淨利潤為 5800 萬美元，或攤薄後每股收益 0.39 美元。

Turning to the balance sheet. As of June 30, 2023, we had cash and cash equivalents of $118 million and term debt of just under $1.3 billion. Meanwhile, our cash generation remains strong. Free cash flow increased by 19% to $96 million, representing an 87% conversion rate from adjusted EBITDA. Cash flow from operating activities for the 3-month period was $60 million versus $91 million for the comparable prior period. As I mentioned previously, this year's figure was impacted by financing costs related to the Paya acquisition. In Q2, interest paid increased by $29 million. During the second quarter, as part of our capital allocation strategy, we deployed $55 million of cash towards reducing our outstanding debt to bringing our leverage ratio down to 2.76x. Of this $55 million $44 million was voluntary, which shows the magnitude of our cash generation and our approach to delevering. Our financial profile provides us with enhanced opportunities to return excess cash to shareholders in several ways, while still maintaining the flexibility to invest in our business in pursuing both organic and inorganic growth. Through the first half of the year, we chose to use excess cash to further reduce our leverage from current levels and to repurchase almost 1.4 million of our shares under our normal course issuer bid.

轉向資產負債表。截至 2023 年 6 月 30 日，我們擁有現金和現金等價物 1.18 億美元，定期債務略低於 13 億美元。與此同時，我們的現金生成能力依然強勁。自由現金流增加 19%，達到 9,600 萬美元，調整後 EBITDA 的轉換率為 87%。三個月期間經營活動產生的現金流量為 6,000 萬美元，而去年同期為 9,100 萬美元。正如我之前提到的，今年的數字受到與 Paya 收購相關的融資成本的影響。第二季度，支付的利息增加了 2900 萬美元。在第二季度，作為我們資本配置策略的一部分，我們部署了 5500 萬美元現金來減少未償債務，將槓桿率降至 2.76 倍。在這 5500 萬美元中，4400 萬美元是自願的，這顯示了我們現金生成的規模和我們去槓桿化的方法。我們的財務狀況為我們提供了更多機會，以多種方式向股東返還多餘現金，同時仍然保持投資業務的靈活性，以追求有機和無機增長。今年上半年，我們選擇使用多餘現金進一步降低目前水平的槓桿率，並根據正常發行人要約回購近 140 萬股股票。

Today, we announced a quarterly cash dividend of $0.10 per share payable on September 5, 2023, to shareholders of record as of August 21, 2023. The aggregate amount of the dividend is expected to be approximately $15 million. I will now turn to our outlook and would refer you to our forward-looking information disclosure in our press release and MD&A.

今天，我們宣布將於 2023 年 9 月 5 日向截至 2023 年 8 月 21 日登記在冊的股東派發每股 0.10 美元的季度現金股息。股息總額預計約為 1500 萬美元。我現在將談談我們的展望，並請您參閱我們在新聞稿和 MD&A 中披露的前瞻性信息。

We are revising our growth expectations for the back half of the year, primarily due to 2 factors: the first and more significant factor relates to longer lag times than we anticipated between signing and implementing new in-year business. As we've come to appreciate the nature of serving larger enterprise customers is that the time line to go live and begin generating revenue tends to be longer. The second factor stems from our recent decision to exit a relationship with a large customer.

我們正在修改今年下半年的增長預期，主要是由於兩個因素：第一個也是更重要的因素與簽署和實施年內新業務之間的滯後時間比我們預期的要長。我們逐漸認識到，為大型企業客戶提供服務的本質是上線並開始產生收入的時間往往更長。第二個因素源於我們最近決定退出與大客戶的關係。

For the third quarter, we expect total volume of between $47.5 billion and $49.5 billion, representing a year-over-year increase of 69% to 76%, revenue of between $300 million and $308 million, representing a year-over-year increase of 52% to 56%. Revenue at constant currency of between $294 million and $302 million, representing a year-over-year increase of 49% to 53%. And adjusted EBITDA of between $105 million and $110 million, representing an adjusted EBITDA margin of approximately 35% to 36%. For the full year 2023, we are revising our outlook to reflect the 2 reasons I just mentioned. We now expect total volume of between $193 billion and $197 billion representing a year-over-year increase of 51% to 54%, revenue of between $1.17 billion and $1.2 billion, representing a year-over-year increase of 39% to 42%, revenue at constant currency of between $1.16 billion and $1.18 billion, representing a year-over-year increase of 37% to 40% and adjusted EBITDA between $417 million and $432 million, representing an adjusted EBITDA margin of approximately 36%. In addition, we now expect full year organic revenue growth at constant currency and excluding digital assets and cryptocurrencies to be between 16% and 20%. In addition, as Phil mentioned, we are amending our medium-term revenue growth target to be between 15% and 20% and are reiterating our long-term adjusted EBITDA margin of greater than 50%.

我們預計第三季度總銷售額將在 475 億美元至 495 億美元之間，同比增長 69% 至 76%，收入將在 3 億美元至 3.08 億美元之間，同比增長52% 至 56%。按固定匯率計算的收入在 2.94 億美元至 3.02 億美元之間，同比增長 49% 至 53%。調整後 EBITDA 介於 1.05 億美元至 1.1 億美元之間，調整後 EBITDA 利潤率約為 35% 至 36%。對於 2023 年全年，我們正在修改我們的展望，以反映我剛才提到的兩個原因。我們目前預計總銷售額在 1930 億美元至 1970 億美元之間，同比增長 51% 至 54%，收入在 11.7 億美元至 12 億美元之間，同比增長 39% 至 42%按固定匯率計算，營收在11.6 億美元至11.8 億美元之間，同比增長37% 至40%，調整後EBITDA 在4.17 億美元至4.32 億美元之間，調整後EBITDA 利潤率約為36%。此外，我們現在預計，按固定匯率計算（不包括數字資產和加密貨幣），全年有機收入增長將在 16% 至 20% 之間。此外，正如 Phil 提到的，我們正在將中期收入增長目標修改為 15% 至 20% 之間，並重申我們的長期調整後 EBITDA 利潤率高於 50%。

Overall, we are pleased with our results and continue to be excited about our prospects going forward. I'll now turn the call back over to Phil for closing remarks.

總的來說，我們對我們的結果感到滿意，並對我們的未來前景繼續感到興奮。現在我將把電話轉回給菲爾做總結髮言。

Thanks, Dave. Before opening it up to questions, I'd like to reiterate the key takeaways from today's call. First, our category-leading global e-Commerce business had 35% organic revenue growth, excluding digital assets and cryptocurrencies. Second, we're well on our way to accelerate the growth profile of our emerging B2B, government and integrated payments channel to 20% plus over the medium term. Third, our revised outlook is due to 2 near-term transitionary effects with no bearing on our robust pipeline of high-profile customer opportunities. And fourth, our strong cash generation provides us flexibility to delever our balance sheet quickly and return excess cash to shareholders via dividend. With that, operator, we're ready to take questions.

謝謝，戴夫。在提出問題之前，我想重申一下今天電話會議的關鍵要點。首先，我們領先的全球電子商務業務有機收入增長了 35%（不包括數字資產和加密貨幣）。其次，我們正在努力將新興 B2B、政府和綜合支付渠道的增長速度在中期內加速至 20% 以上。第三，我們修改後的前景是由於兩個近期過渡效應，這對我們強大的知名客戶機會渠道沒有影響。第四，我們強大的現金生成能力使我們能夠靈活地快速去槓桿化資產負債表，並通過股息將多餘的現金返還給股東。接線員，我們準備好回答問題了。

We will now be conducting a question-and-answer session. (Operator Instructions). The first question comes from the line of Will Nance with Goldman Sachs.

我們現在將進行問答環節。 （操作員說明）。第一個問題來自威爾·南斯 (Will Nance) 與高盛的對話。

I wanted to ask on some of the building blocks of the updated target. The vertical disclosures over the last couple of quarters have been helpful. I just -- if we think about SMB, it sounds like that is going to be relatively flat. The Paya business has kind of been growing at low double digits, it would seem like the updated guidance implies something like high 20s growth on the 55% of the business that's global e-commerce. Is that the right way to think about growth going forward? Or are there any refinements to that framework you would make?

我想詢問更新目標的一些構建模塊。過去幾個季度的縱向披露很有幫助。我只是——如果我們考慮中小企業，聽起來會相對平穩。 Paya 業務一直以較低的兩位數增長，更新後的指導似乎意味著全球電子商務 55% 的業務將實現 20 多歲的高速增長。這是思考未來增長的正確方式嗎？或者您會對該框架進行任何改進嗎？

It's Phil. I think you have it in the right ZIP code. So for us, we try to do a channel disclosure to highlight the different segments of the business now with Paya in the fold. Our core channel, we're expecting between 20% and 30% growth in our emerging channel, we are accelerating the growth. It's today 13%. We believe we can accelerate it and SMB relatively flat. It is down 5% this quarter, predominantly just because of same-store sales movement, but we expect it to be relatively flat. And one thing as you build your models is understand that core is 56% of our revenue today. But as it continues growing, it's going to be a larger market part of the revenue. So the impact from SMB over time will decrease. And certainly, as Paya and our emerging channel continue driving momentum Combined, we believe that our high growth channels will both be 20% plus and SMB will be a lesser part of the drag on growth in the outer years.

是菲爾.我認為您的郵政編碼是正確的。因此，對我們來說，我們嘗試進行渠道披露，以突出目前與 Paya 合作的不同業務領域。我們的核心渠道，我們預計新興渠道將增長 20% 到 30%，我們正在加速增長。今天是13%。我們相信我們可以加速它並且SMB相對持平。本季度下降了 5%，主要是因為同店銷售變動，但我們預計其將相對持平。當您構建模型時，要了解核心業務占我們今天收入的 56%。但隨著它的持續增長，它將成為收入中更大的市場部分。因此，隨著時間的推移，中小企業的影響將會減少。當然，隨著 Paya 和我們的新興渠道繼續推動合併勢頭，我們相信我們的高增長渠道都將增長 20% 以上，而 SMB 將成為外部幾年增長拖累的較小部分。

Got it. That's helpful. And then if I can just follow up on the $100 billion pipeline disclosure that you guys gave. How do I think about that in the context of the updated meeting from target if we're maybe thinking about some of the out years in our model? I know you mentioned in the script that like new business is only 20% of the growth. So if you think about that being a contributor to new business, what can you tell us maybe about voluntary expansion opportunities with the existing customer set that could kind of bridge the rest of that delta.

知道了。這很有幫助。然後我能否跟進你們披露的 1000 億美元的管道情況。如果我們可能正在考慮模型中的一些未來年份，那麼在目標更新會議的背景下，我如何考慮這一點？我知道你在劇本中提到像新業務只佔增長的20%。因此，如果您認為這是新業務的貢獻者，那麼您可以告訴我們關於現有客戶群的自願擴展機會的信息，這可以在某種程度上彌補三角洲的其他部分。

Yes. So revenue opportunities for us are always built into existing customers and new customers. And I think you've seen just the mirror to press releases that have come up I'm so proud of this team. We are winning ultimately the host who across all of our regions, and it is taking a little bit more time for those clients to activate. But the opportunities and the quality of business that we've been onboarding this year is truly exceptional. But the onboarding doesn't end, right? So it's taking a little bit longer for us to onboard and that's something that we are reflected in the revised outlook for the remaining of the year. But the interesting thing is client opportunities have tentacles of continued growth. So it's interesting, the onboard for a particular feature functionality and drive forward as they too have experience with Nuvei enter new countries or consume new solutions. So the $100 billion revenue is a mix of both new. In year new, you typically see a smaller percentage of the full potential of the customer. and it takes 2, 3 years to really drive the full potential of the customer's existing profile. And naturally, as we add capabilities and geographies, wallet share opportunities as that customer continues developing. So it's a fascinating business. It's not a sign and done. It's a sign, engage and grow with, which is such an interesting component to the end market that we're servicing in our core channel.

是的。因此，我們的收入機會總是建立在現有客戶和新客戶身上。我想你已經看到了新聞稿的鏡子，我為這個團隊感到非常自豪。我們最終贏得了所有地區的主機，這些客戶需要更多的時間才能激活。但我們今年所提供的機會和業務質量確實非常出色。但入職還沒有結束，對吧？因此，我們需要更長的時間才能加入，這一點我們在今年剩餘時間的修訂後的展望中得到了反映。但有趣的是，客戶機會具有持續增長的觸角。因此，有趣的是，船上的特定功能和推動力，因為他們也有 Nuvei 進入新國家或使用新解決方案的經驗。因此，1000 億美元的收入是兩者的結合。在新的一年裡，您通常會看到客戶全部潛力的比例較小。真正發揮客戶現有資料的全部潛力需要 2、3 年的時間。當然，隨著我們增加能力和地域，隨著客戶的不斷發展，錢包也會分享機會。所以這是一項令人著迷的生意。這不是一個標誌就完成了。這是一個標誌，可以參與並與之一起成長，這對我們在核心渠道中提供服務的終端市場來說是一個非常有趣的組成部分。

Next question comes from the line of Darrin Peller with Wolfe Research.

下一個問題來自沃爾夫研究中心的達林·佩勒 (Darrin Peller)。

I think we'd love to just get a little bit more color on what actually drove the cut to the medium-term guide in terms of the change from what you had anticipated even at the time of the Paya close to now saying the 15% to 20% versus the 20% not too long ago. Was it -- is there something competitively changing? Was it something about -- just maybe a little more color on what the actual drivers were first would be helpful.

我認為我們很樂意對中期指南的實際推動因素有更多的了解，即與您在帕雅時所預期的變化相比，現在所說的 15％與不久前的20% 相比，現在已經下降到20%。是不是——有什麼競爭性的變化嗎？是不是關於——也許對實際的驅動程序首先進行更多的描述會有所幫助。

It's David speaking. So we obviously spent time looking at the our medium-term targets. It's important to make sure that we're in line. We talked about in our prepared remarks kind of the great quarter that we have. I think we should start there. Just thinking about the growth that we've seen, right, 45% revenue growth in the quarter on a reported basis. Organic growth, 20% and then if you think about that core global commerce channel on an organic basis, excluding digital assets, is 35%, so those last 2 data points, the 20% organic growth and the 35% organic on global commerce, excluding digital assets, that's kind of where I'd frame in terms of what our growth profile looks like. And when you think about that growth profile and the scale that we're at from a revenue perspective, we think that it's class leading and quite impressive. And then Phil talked about, I won't belabor it when you think about the channels, I think that's probably the best way to think about that medium-term revenue growth target that we've set. And you look -- I'll quickly say it just to make sure that it's clearly understood, but those 3 channels, the core channel at 56% of total revenue. Now it grew at 35% pro forma was 16%, but 35%, excluding digital assets. And digital assets, we're going to -- we're going to lap that, right? This is the last quarter that there was really an impact starting in Q3, that's pretty much muted. And then think about the traction that we've just seen in that channel on some of the -- we had a whole bunch of PRs that we mentioned and that we had and wins, whether it's Shein, Cart.com or inDrive, those are pretty good names. You can see the traction that we're building up in that channel. The downside, at least for the current year is that we did see -- learned a bit more about how timing of some of those larger merchants, how long it takes to kind of get them up and running but we do have line of sight on $100 billion of revenue opportunities. So that's kind of the core channel and emerging, again, B2B, ISV and GOV, that grew on a pro forma base of 13%, but we certainly have line of sight to 20% plus growth. We talked about the expansion of the ERP platforms. We talked about some of the government wins and then as well on ISP, some of those 2 large $1 billion plus partners that we signed and if I kind of remind you of the $50 million to $100 million of incremental revenue potential too, that's also on the Paya side, that really plays into that emerging channel. So if you do the math, kind of weighted average with those growth rates, you get a pretty good sense that, that 15% to 20% is something we feel really confident about achieving and we want to be disciplined in our approach and make sure that the expectations are appropriate. And so that -- that's kind of the logic of how we got to that 15%, 20% medium term, which is effectively what we're growing at today. And of course, for the rest of this year and even when we think about medium term, we obviously want to be cautious of how we kind of set expectations?

說話的是大衛。因此，我們顯然花了時間研究我們的中期目標。確保我們排隊很重要。我們在準備好的講話中談到了我們所經歷的偉大季度。我認為我們應該從那裡開始。想想我們所看到的增長，根據報告，本季度收入增長了 45%。有機增長，20%，然後如果你考慮有機基礎上的核心全球商業渠道（不包括數字資產），則為35%，所以最後兩個數據點，即全球商業的20% 有機增長和35% 有機增長，不包括數字資產，這就是我所描述的我們的增長概況。當你從收入的角度考慮我們的增長概況和規模時，我們認為它是同類領先的並且相當令人印象深刻。然後菲爾談到，當你考慮渠道時，我不會詳細說明，我認為這可能是考慮我們設定的中期收入增長目標的最佳方式。你看——我會很快說出來，只是為了確保人們清楚地理解它，但這 3 個渠道，核心渠道佔總收入的 56%。現在增長了 35%，預計增長了 16%，但不包括數字資產，增長了 35%。對於數字資產，我們將——我們將接受它，對嗎？這是從第三季度開始真正產生影響的最後一個季度，影響非常小。然後想想我們剛剛在該頻道中看到的一些吸引力 - 我們有一大堆我們提到過的 PR，我們擁有並贏得了勝利，無論是 Shein、Cart.com 還是 inDrive，這些都是非常好的名字。您可以看到我們在該渠道中建立的吸引力。至少在今年，我們確實看到了不利的一面——更多地了解了一些大型商家的時機，以及讓它們啟動和運行需要多長時間，但我們確實有這樣的視野1000 億美元的收入機會。因此，這就是核心渠道和新興渠道，B2B、ISV 和 GOV，預計增長率為 13%，但我們當然預計增長率將達到 20% 以上。我們討論了 ERP 平台的擴展。我們討論了政府的一些勝利，然後也討論了ISP，我們簽署的2 個10 億美元以上的大型合作夥伴中的一些，如果我提醒您也有5000 萬至1 億美元的增量收入潛力，那也是在Paya 方面，這確實發揮了新興渠道的作用。因此，如果你計算一下這些增長率的加權平均值，你就會很好地感覺到，15% 到 20% 是我們非常有信心實現的目標，我們希望在我們的方法中嚴格遵守並確保期望是適當的。這就是我們如何實現 15%、20% 中期增長的邏輯，這實際上就是我們今天的增長速度。當然，在今年剩下的時間裡，甚至當我們考慮中期時，我們顯然要對如何設定預期持謹慎態度？

Okay. And then, guys, just a little more color on the decision to exit this large customer. What exactly drove that? And is that anything -- is that really just a one-off to be clear?

好的。然後，伙計們，對退出這個大客戶的決定再多一點色彩。到底是什麼推動了這一點？這是什麼——這真的只是一次性的事情嗎？

We strive to be down, but North Star in all verticals and use cases globally. I mean that is our commitment across all stakeholders around Nuvei. We have a team of 200 in compliance risk and underwriting focus on doing the right thing for the company regardless of size. But I think the biggest takeaway is exiting this merchant relationship is just the right thing for Nuvei. These things happen all the time, Darrin, in terms of onboarding and offboarding. This just happens to be a top 10 customer but I would come back and just say that these things are not scheduled, right? This was a new base decision to exit that particular customer, and we feel strongly that it was the right thing for us to do.

我們努力保持低調，但在全球所有垂直領域和用例中都是北極星。我的意思是，這是我們對 Nuvei 周圍所有利益相關者的承諾。我們擁有一支由 200 人組成的合規風險和承保團隊，專注於為公司做正確的事情，無論公司規模如何。但我認為最大的收穫是退出這種商業關係對 Nuvei 來說是正確的事情。達林，在入職和離職方面，這些事情一直在發生。這恰好是前 10 位客戶，但我會回來說這些事情沒有安排，對吧？這是退出該特定客戶的新基本決定，我們強烈認為這對我們來說是正確的事情。

Next question comes from the line of Joseph Vafi with Canaccord Genuity.

下一個問題來自 Joseph Vafi 與 Canaccord Genuity 的關係。

Thanks for the extra color here this quarter. I thought maybe we would just first start on Paya here, the large ISVs expanding into some other ERP platforms. Just would like to know, were these some of these endeavors underway pre-acquisition or how much of that, I guess, extra road map of progress that we're seeing there is kind of post-acquisition and perhaps maybe the beginning of your revenue synergy endeavors here? And then I have a follow-up.

感謝本季度的額外色彩。我想也許我們可以先從 Paya 開始，讓大型 ISV 擴展到其他一些 ERP 平台。我只是想知道，其中一些努力是否在收購前正在進行，或者其中有多少，我猜，我們看到的額外進展路線圖是在收購後，也許是您收入的開始這裡的協同努力？然後我有一個後續行動。

I think it's the beginning of our revenue synergy target. We've been adding resources into the emerging channel. We feel that our technology and additional use cases combine well together, and we're very excited about what the overall opportunity is for Nuvei. So two additional ERP platforms, significant ERP platforms with the introduction of Sage and Infor, we think Microsoft dynamics will be material as well. But let's not also forget, we've expanded the relationship with Sage into new geographies. We have active discussions on other ERPs for new geographies, so it's part of the marriage between what Paya brought to the table and what Nuvei is able to deliver together. And we think that is ultimately the foundation for accelerating our footprint in B2B.

我認為這是我們收入協同目標的開始。我們一直在向新興渠道添加資源。我們認為我們的技術和其他用例很好地結合在一起，我們對 Nuvei 的整體機會感到非常興奮。因此，另外兩個 ERP 平台，隨著 Sage 和 Infor 的引入，重要的 ERP 平台，我們認為微軟的動態也將是重要的。但我們也不要忘記，我們已將與 Sage 的關係擴展到新的地區。我們正在積極討論針對新地區的其他 ERP，因此這是 Paya 帶來的內容與 Nuvei 能夠共同提供的內容之間結合的一部分。我們認為這最終是加速我們在 B2B 領域發展的基礎。

Fair enough. And then I guess if we look at the business moving for -- I mean, I guess, I think, Dave, you said that you framed maybe a little bit of the of the headwind here to be more on the ramp of new customers for that customer loss. I guess, just wondering, is that customer now exited and we think about lapping that in 4 quarters or timing there? relative to exiting that customer?

很公平。然後我想，如果我們看看業務的發展——我的意思是，我想，我認為，戴夫，你說你可能會在這裡遇到一些逆風，以便更多地吸引新客戶那個客戶流失。我想，只是想知道，該客戶現在是否已經退出，我們是否考慮在 4 個季度內完成該任務，或者在那里安排時間？相對於退出該客戶？

No, the customer has been -- we started the exit process in the second quarter. I believe it will be done this quarter. So it's a process to exit clients. but the majority of the clients volume has been moved off Nuvei.

不，客戶已經——我們在第二季度開始了退出流程。我相信這將在本季度完成。所以這是一個退出客戶的過程。但大部分客戶量已從 Nuvei 轉移出去。

Next question comes from the line of Dan Perlin with RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場部的 Dan Perlin。

There's a lot to digest here. I wanted to jump into the guidance and specifically maybe start with third quarter. So it looks like pro forma growth at the midpoint is calling for kind of 14%, and I think you just did 9%. So I guess, one, what's driving the kind of 500 basis point sequential acceleration. I know FX is about 2 points of that, but it's still like 300 basis points. So I'm just trying to understand why that would accelerate. And then the implied fourth quarter At the midpoint, looks like it gets back to about 8% with a much bigger benefit from FX. So that looks like a bigger deceleration. I'm assuming that's the client deconversion, but really, you just sounded like most of the volumes are off. So maybe you can help -- help us understand the cadence of that.

這裡有很多東西需要消化。我想跳入指導，特別是可能從第三季度開始。因此，預計中點增長率預計為 14%，而我認為您只做到了 9%。所以我猜想，第一，是什麼推動了 500 個基點的連續加速。我知道外匯大約是其中的 2 個基點，但它仍然是 300 個基點。所以我只是想理解為什麼這種情況會加速。然後隱含的第四季度中點，看起來會回到 8% 左右，外匯帶來的好處要大得多。所以這看起來是一個更大的減速。我假設這是客戶端去轉換，但實際上，你聽起來好像大部分卷都關閉了。所以也許你可以幫助——幫助我們理解它的節奏。

Dan, it's David. The -- so obviously, that for the third quarter, we have a pretty good line of sight we're in the quarter now. We feel really comfortable with kind of the growth rate that we're seeing. Certainly, there's going to be some variability within the quarters. Q3, like we said, we lapped crypto. So Q2 is impacted by crypto. So there's some variability there. And then when you look out into Q4 from a revenue perspective, that's typically seasonally a strong quarter for us. So there is some uptake there from a seasonality perspective. If you're looking purely on the revenue side, of course, we can get into the take rate discussion as well. That's a little bit different. There's obviously seasonally some lower take rates we see -- but generally speaking, from an organic perspective, the in Q3 and Q4, certainly the loss of the customer impacts and then, of course, the off-boarding -- sorry, the new business kind of timing both of those transitory. And so granted over time, we see that the revenue starts to come back up to that 15% to 20% level that we have on the midterm target. But effectively, there's nothing specific to call out other than crypto impact in Q2, of course, you mentioned that the FX impact that is more impactful in the second half. As you can see, the first half impact was somewhat of a headwind. Second half is somewhat of a tailwind Overall, when you look at that FX impact on our total revenue from a percentage basis, it's not huge, but it does add up in terms of dollars. So there is some fluctuation there on the FX side, both in Q3 and slightly more in Q4.

丹，是大衛。很明顯，對於第三季度，我們現在處於這個季度的視野非常好。我們對所看到的增長率感到非常滿意。當然，季度內會出現一些變化。第三季度，正如我們所說，我們擊敗了加密貨幣。所以第二季度受到了加密貨幣的影響。所以那裡存在一些可變性。然後，當您從收入的角度來看第四季度時，這對我們來說通常是季節性強勁的季度。因此，從季節性角度來看，存在一些吸收。當然，如果您純粹關注收入方面，我們也可以討論採用率。這有點不同。我們看到顯然季節性地較低的採用率 - 但一般來說，從有機的角度來看，在第三季度和第四季度，當然會失去客戶影響，然後當然是退出 - 對不起，新業務兩者的時間都是短暫的。因此，隨著時間的推移，我們看到收入開始回升至中期目標的 15% 至 20% 水平。但實際上，除了第二季度的加密貨幣影響之外，沒有什麼具體的事情可以指出，當然，您提到下半年的外匯影響更具影響力。正如你所看到的，上半場的衝擊有點逆風。下半年有點順風順水 總的來說，當你從百分比的角度來看外匯對我們總收入的影響時，它並不大，但以美元計算確實會增加。因此，外匯方面存在一些波動，無論是第三季度還是第四季度都略有波動。

Okay. That's helpful. Just philosophically, I was a little surprised to see you guys starting to pay a dividend kind of this early in your growth, I guess, algorithm? So Phil, can you just maybe talk about how that discussion even came about? Obviously, you have the free cash flow to handle it, but most companies at this growth stage probably not dividend payers yet. So anyway, you can just kind of contextualize how that conversation went to arrive at this point.

好的。這很有幫助。只是從哲學上講，我有點驚訝地看到你們在成長的早期就開始支付股息，我想，算法？菲爾，你能談談這次討論是如何發生的嗎？顯然，你有自由現金流來處理它，但處於這個成長階段的大多數公司可能還不是股息支付者。所以無論如何，你可以根據上下文來了解這次對話是如何走到這一步的。

We strive to set the pace guide. I think that's the biggest thing. But in all seriousness, people forget that we're high growth, and we're highly profitable and we're generating a tremendous amount of free cash flow that provides us flexibility. I think as we started exploring returning cash to shareholders via buybacks or dividend, the dividend boded better for us just because of the limited float and we do think we'll open up a new line of investors for us, and it's just a continuation of our capital allocation strategy of how we intend on returning capital to shareholders via dividend and buyback.

我們努力設定步伐指南。我認為這是最重要的事情。但說實話，人們忘記了我們是高增長的，我們是高利潤的，我們正在產生大量的自由現金流，為我們提供了靈活性。我認為，當我們開始探索通過回購或股息向股東返還現金時，由於流通量有限，股息對我們來說是更好的兆頭，我們確實認為我們將為我們開闢新的投資者係列，而這只是我們的資本配置策略，即我們打算如何通過股息和回購向股東返還資本。

Next question comes from the line of Todd Coupland with CIBC.

下一個問題來自 CIBC 的托德·庫普蘭 (Todd Coupland)。

Great. I wanted to circle back to the lost customer. If you could just -- maybe I missed this, talk about -- why do you want to exit that relationship.

偉大的。我想回到失去的客戶那裡。如果你可以——也許我錯過了這一點，談談——你為什麼想退出這段關係。

Todd, just out of respect, it's nothing that we would consider doing. These are all great businesses that have their own success in journey, but it was no longer a fit for Nuvei. I'm proud of our team for making the right decisions. We expect this customer to continue thriving. But from a profile perspective, it's not a client for Nuvei and we'll leave it at that.

托德，出於尊重，我們不會考慮這樣做。這些都是偉大的企業，在旅程中都取得了成功，但它不再適合 Nuvei。我為我們的團隊做出了正確的決定感到自豪。我們預計該客戶將繼續蓬勃發展。但從個人資料的角度來看，它不是 Nuvei 的客戶，我們就這樣吧。

But there should be not any impression left that this is a competitive exit. This is a Nuvei decision.

但不應該給人留下任何這是競爭性退出的印象。這是努維的決定。

We've talked about that correct.

我們已經討論過這一點是正確的。

Yes. Okay. Secondly, I wanted to ask about -- you got the breakdown on growth by your new segmentation. Can you just talk about the EBITDA margin profile or path in those segments, maybe qualitatively to start to get you towards your longer-term target.

是的。好的。其次，我想問一下——你們按照新的細分市場對增長進行了細分。您能否談談這些細分市場的 EBITDA 利潤率概況或路徑，也許可以定性地談談，以便開始幫助您實現長期目標。

Todd, it's David. So in terms of the channels, I mean, we don't specifically talk to the EBITDA margins of each. We really -- there is infrastructure across the company that really supports all those channels. Of course, the -- we talked about the growth profile in both the core and emerging channels. So those profiles and that growth rates certainly will contribute more so as we look forward to our both the revenue but also to adjusted EBITDA margin, especially as the legacy business is flat to declining. In terms of that, the long term, the 50% plus long-term EBITDA margin target, that's something that we still feel very strongly and this is a business that -- it is at scale and continues to grow and nothing has changed. Fundamentally, nothing has changed in the business. So that target still holds well. We talked a bit about the incremental revenue we talked about last quarter, you mentioned it again a bit this quarter, but on the Paya revenue synergy opportunities, there's about $50 million to $100 million of incremental revenue that's there. So that will certainly contribute not just to growth but to EBITDA margin expansion as we have the platform that can scale and absorb that revenue with a high contribution to EBITDA margin. So we feel very good about and very confident about that long-term 5% EBITDA margin and correspondingly, our growth rates that are going to get us as.

托德，是大衛。因此，就渠道而言，我的意思是，我們不會具體談論每個渠道的 EBITDA 利潤率。我們確實——整個公司都有真正支持所有這些渠道的基礎設施。當然，我們討論了核心渠道和新興渠道的增長情況。因此，這些概況和增長率肯定會做出更多貢獻，因為我們既期待收入，也期待調整後的 EBITDA 利潤率，特別是在傳統業務持平甚至下降的情況下。就這一點而言，從長期來看，50%以上的長期 EBITDA 利潤率目標，我們仍然強烈地感受到這一點，而且這是一項規模化、持續增長的業務，沒有任何變化。從根本上來說，業務沒有任何變化。所以這個目標仍然有效。我們談到了上個季度談到的增量收入，您本季度又提到了一點，但在 Paya 收入協同機會上，大約有 5000 萬至 1 億美元的增量收入。因此，這肯定不僅有助於增長，而且有助於 EBITDA 利潤率的擴張，因為我們擁有可以擴展和吸收該收入的平台，並對 EBITDA 利潤率做出巨大貢獻。因此，我們對 5% 的長期 EBITDA 利潤率以及相應的增長率感到非常滿意和充滿信心。

Next question comes from the line of Bob Napoli with William Blair.

下一個問題來自鮑勃·那不勒斯和威廉·布萊爾的關係。

I was going to dig into margins a little bit. Just any commentary kind of on the path of the -- what we should expect on an annual basis? Do you have a target for expansion on an annual basis? Or I mean, obviously, there's a lot of operating leverage and 15% to 20% growth is -- there was still very good growth. So just any commentary on what we should expect on, as we look at 2024 kind of margin expansion from current levels and it may be annually.

我打算深入研究一下邊緣。只是關於我們每年應該期待什麼的道路上的任何評論？您有每年的擴張目標嗎？或者我的意思是，顯然，運營槓桿很大，並且增長了 15% 到 20%——仍然是非常好的增長。因此，當我們考慮 2024 年利潤率在當前水平上的擴張（可能是每年）時，我們應該對什麼進行評論。

Bob, it's David. Nothing specific that we've targeted externally. Of course, internally, we have our own expectations. That ramp to get to 50%, of course, there'll be there'll be certain things that will result in maybe step-ups, so incremental. So as we do certain things from, let's say, from an integration, implementation, in-sourcing perspective, when you think about costs. So there could be some one step items that happen along the way. But at the same time, there will also be some gradual increase in margin just as we continue to scale and grow on the top line. So it takes a bit of a function of both. And certainly, that 50% plus target is, like we said, it's over the longer term. So I think about that as 5 to 7 years out. But nothing specific and nothing that's a large one step, Bob. It's more kind of incremental steps along the way as we continue to do the things we do from a product technology integration perspective.

鮑勃，我是大衛。我們沒有任何具體的外部目標。當然，我們內部也有自己的期望。當然，要達到 50%，某些事情可能會導致提升，所以是漸進的。因此，當我們考慮成本時，我們會從集成、實施、內包的角度做某些事情。因此，在此過程中可能會發生一些單步項目。但與此同時，隨著我們繼續擴大規模和增加收入，利潤率也會逐漸增加。所以它需要兩者的功能。當然，正如我們所說，50% 以上的目標是長期目標。所以我認為這需要 5 到 7 年的時間。但鮑勃，沒有什麼具體的事情，也沒有什麼是重大的一步。當我們繼續從產品技術集成的角度做我們所做的事情時，這更像是一種漸進的步驟。

And then I don't -- I think you said what sector the customer that you deconverted is in what vertical they were in. And just as you adjusted your guidance this year, how much of the change is from the timing, I guess, of onboarding versus the deconversion?

然後我不——我想你說過你取消轉換的客戶屬於哪個行業。正如你今年調整了你的指導一樣，我猜，有多少變化是由於時間安排造成的，入職與取消轉換？

Yes, Bob, we're not going to double-click on the customer specifics. And I would tell you, just for the second question, it feels about 2/3, 1/3, 1/3 customer, 2/3 delayed in implementation.

是的，鮑勃，我們不會雙擊客戶詳細信息。我想告訴你，就第二個問題而言，感覺大約有 2/3、1/3、1/3 客戶、2/3 延遲實施。

Great. And I guess if I could sneak one last one in. Geographically, where are you doubling down or -- and given the lower growth rate profile that you're targeting, which is still very good. Are you pulling back on investments in any area?

偉大的。我想我是否可以偷偷地加入最後一個。從地理位置上看，你在哪裡加倍努力，或者考慮到你的目標增長率較低，這仍然非常好。您是否正在縮減任何領域的投資？

Well, it's interesting on is we've made the investments already. So we actually have lots of white space in APAC and LATAM as we continue growing. We see North America has a lot of opportunity for us as well. So we have we have pending licenses and other infrastructure that's actually already been expensed. So we're going to execute on those.

嗯，有趣的是我們已經進行了投資。因此，隨著我們的不斷發展，我們在亞太地區和拉美地區實際上有很多空白區域。我們看到北美對我們來說也有很​​多機會。因此，我們有待審批的許可證和其他基礎設施，這些基礎設施實際上已經支出。所以我們將執行這些。

Next question comes from the line of Jason Kupferberg with Bank of America.

下一個問題來自美國銀行的賈森·庫普弗伯格 (Jason Kupferberg)。

Phil, I'm just curious what your overall assessment of execution across the organization? It seems like the market opportunity is very real. But forward-looking expectations have been a bit of a moving target.

菲爾，我只是好奇你對整個組織執行力的總體評估是什麼？看來市場機會是非常真實的。但前瞻性預期一直是一個不斷變化的目標。

Yes, it's a good question. I think ultimately, as we're moving upmarket and just how fundamentally the business has changed, Jason, we're learning as we go through it. But I think you have to keep in mind, right, over $1 billion of revenue, over $400-plus million of EBITDA, significant free cash flow and profitable growth. I think we're in a very unique circle, Jason, and our disciplined growth in terms of meaning not revenue at all costs, but our disciplined growth is paying we think, is a very compelling path for future growth. Our objectives are high, and we think that there's a lot of scaling left for us to do in every one of our regions in our channels. So I think the team is doing a really great job, and I'm really proud of every new employee in terms of execution.

是的，這是一個好問題。我認為最終，隨著我們向高端市場發展，業務發生了多麼根本的變化，傑森，我們正在經歷它的過程中學習。但我認為你必須記住，超過 10 億美元的收入、超過 400 多萬美元的 EBITDA、大量的自由現金流和盈利增長。我認為我們處於一個非常獨特的圈子，傑森，我們的紀律性增長並不是不惜一切代價實現收入，而是我們認為我們的紀律性增長正在付出代價，這是未來增長的一條非常引人注目的道路。我們的目標很高，我們認為我們渠道中的每個地區都還有很多擴展工作要做。所以我認為團隊做得非常出色，我為每一位新員工的執行力感到自豪。

Okay. And then I guess just coming back to guidance. I guess if we look at the second half in aggregate, the implication is that organic growth ex crypto will be around 13% on average in the second half. So that's below the updated medium-term revenue guidance and I respect some of the factors impacting this year are transitory. But just how would you encourage investors to get comfortable that the growth can really reaccelerate comfortably and sustainably into that 15% to 20% range as we look at 2024 and beyond.

好的。然後我想只是回到指導。我想，如果我們從總體上看下半年，這意味著下半年加密貨幣的有機增長平均將在 13% 左右。因此，這低於更新的中期收入指引，我認為影響今年的一些因素是暫時的。但是，當我們展望 2024 年及以後的情況時，您如何鼓勵投資者放心，增長確實可以輕鬆、可持續地重新加速到 15% 至 20% 的範圍。

It's David. The -- yes, I think that observation is correct, Jason. But really, when we think about -- it's like you said, when you think about the rest of this year. It's really those 2 transitory factors, the off-boarding of the large customer and the timing of new business. So that's really the impact of what we see for the rest of the year. that will lap as we go forward. And I guess the way that I would frame it is coming back to we said at the beginning, 2 things. One, thinking about the channels and thinking about how those -- the growth profiles of each one, specifically core and emerging and if you drill down just the drill down and kind of strip away the onion and you can see the growth of those businesses, right? So 35% excluding digital assets, cryptocurrencies, and then just overall in the business, 20% and then the emerging business, again, the 13%, but with really good upside and line of sight on the 20%. So that's -- that's what I would say in terms of how to think about the go forward and the medium term. We're in that zip code down to 15% to 20% or even to some degree above if you look at the core business. So we feel really confident about that medium-term target. And we feel that, that's going to be very achievable for us. And Phil mentioned in the prepared remarks, like we'll continue to look at that target, but there's certainly, we feel good about it. And I'd say also this rest of this year, especially as it relates to Q4, I think we have some caution built into our outlook. I think that's another important factor to think about when you think about Q4.

是大衛。 - 是的，我認為這個觀察是正確的，傑森。但實際上，當我們思考時——就像你說的，當你思考今年剩下的時間時。這實際上是兩個暫時性因素，即大客戶的退出和新業務的時機。這確實是我們在今年剩餘時間裡看到的影響。當我們前進時，它會一圈。我想我的框架方式又回到了我們一開始所說的兩件事。第一，思考渠道並思考每個渠道的增長概況，特別是核心業務和新興業務，如果你深入研究，剝去洋蔥，你就可以看到這些業務的增長，正確的？因此，35% 不包括數字資產、加密貨幣，然後是整個業務，20%，然後是新興業務，同樣是 13%，但 20% 的上升空間和視野確實很好。這就是我要說的關於如何思考未來和中期的內容。如果你看看核心業務，我們的郵政編碼下降到 15% 到 20%，甚至在某種程度上更高。所以我們對這個中期目標非常有信心。我們認為，這對我們來說是非常容易實現的。菲爾在準備好的講話中提到，我們將繼續關注這個目標，但我們對此感覺良好。我還要說的是，今年剩下的時間，特別是與第四季度相關的時候，我認為我們對前景持謹慎態度。我認為這是在考慮第四季度時需要考慮的另一個重要因素。

Next question comes from the line of Tim Chiodo with Credit Suisse.

下一個問題來自瑞士信貸銀行的 Tim Chiodo。

Great. I think we kind of covered this in terms of what's implied in the medium term. But if we look at those -- the 3 buckets, so core global commerce, ballpark, 55% emerging ballpark 20% and legacy ballpark about 1/4 of the revenue, just using round numbers. But core global commerce implied in the guide, I'm assuming it's in sort of the 20s to low 30s emerging potentially approaching back towards 20%, I believe you said. And then I guess the main question was for legacy SMB within the medium-term guide, are you implying that it will be cagering at maybe a slightly negative rate over the coming years in the medium term? And then the brief follow-up is on the legacy SMB. I know you mentioned that it is nonintegrated into software. Can you just talk about how that business is or was distributed? Was it direct sales going to SMBs? Was it through third-party ISOs or just in general, what the distribution approach was for that portion of the business?

偉大的。我認為我們已經根據中期的含義涵蓋了這一點。但如果我們看一下這 3 個部分，即核心全球商業、大約 55% 的新興大約 20% 和大約佔收入的 1/4 的傳統大約，僅使用整數。但指南中暗示的核心全球商業，我相信它在 20 到 30 歲左右，可能會回到 20%，我相信你說過。然後我想主要問題是中期指南中的傳統中小企業，您是否暗示在未來幾年中中期它將保持略微負利率？然後簡短的後續討論是關於傳統的 SMB。我知道你提到它沒有集成到軟件中。您能談談該業務現在或過去是如何分配的嗎？是直接向中小企業銷售嗎？是通過第三方 ISO 還是一般來說，這部分業務的分銷方法是什麼？

It's David. On the first part of your question, kind of what we baked into the guide. So on the SMB on the legacy business, like we said, like Phil mentioned it earlier, it is kind of mid-single-digit decline now is what we're seeing A lot of that is driven by same-store sales. We suspect that from a go-forward perspective, it's flat to maybe slightly negative is kind of where we see that business. In terms of distribution on the legacy side, it was really all through indirect. I mean these are really SMBs indirect. So we're going through partners, through relationships to the feet on the street to win that business. And so that's kind of that distribution model, which is slightly different, of course, in our core, which is really direct and then on the emerging side, it's indirect, but it's through technology providers, let's call it, technology partners, you think about ISPs and that sort. Whereas on the SMB, it's more of a feet on the street in the rec relationship. So it's kind of a one to many through our partners that are on the street.

是大衛。關於您問題的第一部分，我們將其納入指南中。因此，在中小型企業的傳統業務上，正如我們所說，就像菲爾之前提到的那樣，我們現在看到的是中等個位數的下降，其中很大一部分是由同店銷售推動的。我們懷疑，從未來的角度來看，我們看到該業務的情況是持平甚至略有負面。就遺產方面的分配而言，實際上都是間接的。我的意思是，這些實際上是間接的中小企業。因此，我們正在通過合作夥伴、通過與街頭人士的關係來贏得業務。這就是一種分銷模式，當然，在我們的核心方面略有不同，這是非常直接的，然後在新興方面，它是間接的，但它是通過技術提供商，我們稱之為技術合作夥伴，你認為關於 ISP 之類的。而在中小型企業中，娛樂關係更像是街頭的一腳。因此，這是通過我們在街頭的合作夥伴進行的一對多活動。

This concludes today's question-and-answer session. I would like to turn the floor back over to Chris Mammone for closing comments.

今天的問答環節到此結束。我想把發言權交還給克里斯·馬蒙（Chris Mammone）以供結束評論。

Thanks again to everyone for joining the call today. The IR team, both Anthony and myself are available for follow-up calls and questions. We look forward to speaking and seeing you out on the road. Bye for now.

再次感謝大家今天加入電話會議。 IR 團隊、安東尼和我本人都可以接受後續電話和提問。我們期待與您交談並在路上見到您。暫時再見。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。