{ "docId": "019dd923-622c-750b-8b99-265d3ab25ee2", "docSlug": "062cb2b9b6a4", "documentTitle": "Nuvei Corp (NVEI)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-12-09 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 82, "pageCount": 119, "prevPage": 81, "nextPage": 83, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 12, "notes": "The slide uses a red flag icon to signal a warning or 'red flag' in the company's reporting practices.", "elementsJson": [ "headline_text", "paragraph", "callout_box", "data_table" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-265d3ab25ee2/82", "deckHref": "/decks/019dd923-622c-750b-8b99-265d3ab25ee2", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-265d3ab25ee2.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-265d3ab25ee2#slide-82", "components": [ { "bbox": { "h": 0.06, "w": 0.28, "x": 0.66, "y": 0.91 }, "kind": "callout", "text": "Notice NVEI convolutes two acquisitions", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2817d1cd-8d8b-4a88-af9a-321c484475de", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.87, "x": 0.085, "y": 0.16 }, "kind": "paragraph", "text": "Despite having closed on SafeCharge in August 1, 2019, Nuvei did not give any indication of how much revenue was being recognized from SafeCharge in 2020. As a best practice, public companies should provide revenue contribution from acquisitions over a one year period. As a result, we believe Nuvei should have provided revenue contributions from SafeCharge through its Q3 2020 financial reporting period. However, Nuvei did not provide this information.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "072a8ec4-4aa9-49e9-ba45-f92b79a60e2b", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Only Post-Deal Revenue Disclosure: \"SafeCharge contributed revenues of $55,853 and net income of $11,643 to the Company for the period from the acquisition date to December 31, 2019.\" — Nuvei Q3 2020 MD&A", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-e6ea-711e-a3ea-0860fdce6099", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.45, "x": 0.02, "y": 0.96 }, "kind": "source-note", "text": "Source: Nuvei Q3 2020 MD&A at Sedar.com ; 2020 Annual Report", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4726f1c1-f6f4-4b3e-9181-67fba59d84b2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.36, "w": 0.96, "x": 0.02, "y": 0.57 }, "kind": "table", "text": "2020 Annual Report: “For the year ended December 31, 2020, revenue increased by $129.2 million or 53% as compared to the year ended December 31, 2019. The increase is driven by acquisition growth (SafeCharge acquisition in August 2019 and Smart2Pay in November 2020) as well as organic growth. Total volume increased from $24.6 billion in the year ended December 31, 2019 to $43.2 billion in the year ended December 31, 2020, an increase of $18.6 billion or 76%. Assuming the SafeCharge acquisition and Smart2Pay acquisition had occurred on January 1, 2019, total volume would have been $44.6 billion in the year ended December 31, 2020, compared to $35.3 billion in the year ended December 31, 2019, an increase of $9.3 billion or 26%. Assuming the SafeCharge acquisition and Smart2Pay acquisition had occurred on January 1, 2019, revenue would have been $406.6 million in the year ended December 31, 2020, compared to $342.0 million in the year ended December 31, 2019, an increase of $64.6 million or 19%.”", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0f61f063-8dda-40aa-b0ff-a2ed2d03b29f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.13, "w": 0.96, "x": 0.02, "y": 0.43 }, "kind": "table", "text": "Q3 2020: “For the three months ended September 30, 2020, revenue increased by $22.8 million or 32% as compared to the three months ended September 30, 2019. The increase is due to total volume growth driven by the SafeCharge Transaction in August 2019, and organic growth.”", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a931d2b9-cbd7-4942-b544-7a450f0bd6d9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.96, "x": 0.02, "y": 0.31 }, "kind": "table", "text": "FY 2019: Only Post-Deal Revenue Disclosure: “SafeCharge contributed revenues of $55,853 and net income of $11,643 to the Company for the period from the acquisition date to December 31, 2019.”", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f3e52b36-25b9-4d70-a78a-2cec25d54abe", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.65, "x": 0.305, "y": 0.03 }, "kind": "title", "text": "We Believe Nuvei Provided Vague And Deficient Explanations of Revenue Growth In 2020", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "209e8a02-29be-432c-9408-6b093c272554", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "20b21c9f-5421-41c9-a5a9-96224ae67250", "evidence": "The slide explicitly frames the lack of disclosure as a deliberate obfuscation of organic growth, a common tactic in financial fraud analysis.", "confidence": 0.85 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }