In a rare public outing, the founder and big boss of Montreal fintech Nuvei said on Tuesday that he liked the position in which the company he leads finds itself but grumbled about the mood of investors.
“The environment in the capital markets, and in particular for the technology sector, is extremely difficult,” Philip Fayer said during a conference organized as part of the Fintech Canada Forum taking place this week at the Queen Elizabeth in Montreal.
Speaking about the current context, Philip Fayer refers to the disinterest observed towards Nuvei and other companies in the fintech sector.
“It’s not the most pleasant time to be running a public company. Investors are hard to please. You are a zero today and a hero tomorrow. It comes and goes like a pendulum,” says the 45-year-old financial entrepreneur.
Having gone public in the fall of 2020, Nuvei has lost 90% of its market value compared to its peak reached during the pandemic. The company’s stock rose as high as $180 two years ago on the Toronto Stock Exchange before falling to its current all-time low of $20.
The stock notably dropped 40% in a single session last month, after a downward revision of the financial outlook for the 2023 financial year.
Management had explained the revision of its growth forecasts by a longer period than expected between the signing and implementation of new contracts and by the decision to end the relationship with a major client, without however specifying the reasons. .
On Tuesday, Philip Fayer nevertheless said he liked the position that Nuvei occupies in his industry. “Such dislocation in the market doesn’t happen often. It’s definitely ugly if you’re trying to raise capital or looking at the stock price every day. But if you have a longer-term horizon, the current situation represents an opportunity for a company like Nuvei. »
Philip Fayer also took advantage of his platform on Tuesday to make a vibrant plea in favor of the metropolis.
“Montreal is the most beautiful place in the world to live. It’s a place I love to watch my children grow up. You can go out for a walk in the evening without worry. We are so lucky here. We should appreciate it and make wise choices to ensure the success of the next generation,” he said.
The reality, he says, is that Montreal has the infrastructure and talent to be a financial technology hub on the international scene, but Quebec still remains a place that some will avoid due to factors like Bill 96 (on the French language).
Originally founded as Pivotal in the early 2000s, Nuvei now has 2,200 employees across 17 countries.
The company’s market capitalization stands at US$2.8 billion at current prices. Management expects fiscal year 2023 revenue to approach $1.2 billion.
Nuvei’s solutions are used to process electronic payments in industries such as retail, travel and online gaming.