The Montreal-based fintech’s shares plummeted Wednesday after posting its first-quarter earnings. While its revenue grew 20 per cent to US$256.5 million, its net loss was US$8.3 million due to US$20 million in one-time costs to acquire and integrate Atlanta-based rival Paya. (The Logic)

Talking point: Nuvei has identified between US$50 million and US$100 million in “new revenue synergy opportunities” beyond Paya’s base-case it can achieve by 2027, the company said in its release. “We feel really good about the acquisition and the deal rationale and are confident in our ability to accelerate the growth of the business,” CEO Philip Fayer told analysts Wednesday. National Bank analyst Richard Tse said in a note that Nuvei’s Q1 had solid results, but management’s forecast that there would be a dip in Q2 before growth reaccelerates appears to have caused concern. “Given the obvious scrutiny around this name”—Nuvei has been targeted by two short reports from Spruce Point Capital Management, whose allegations the company dismisses—“that perceived hesitation for a name that’s had a consistent trajectory in a potentially slowing economy is what’s driving the violent sell off today.” Tse said his team continues to believe Nuvei is uniquely positioned for growth.