As the public markets continue to attract Canadian tech companies, even amid lower than hoped valuations and results, a number of companies have reported their third-quarter 2021 financial results, including Nuvei, Magnet Forensics, and Thinkific.
Nuvei revenues jump 96 percent year-over-year
The Montréal-based payment processing company reported a sizeable increase in revenue for the three-month period ending September 30, pulling in $183.9 million (all numbers USD) compared to $93.8 million in the same period last year (a 96 percent increase).
That came along with a net income increase for Nuvei after the company saw a net loss in the third quarter of last year of $77.9 million. Nuvei’s net income for this quarter totalled $28 million (adjusted net income was $62.3 million compared to $16.5 million). The company’s adjusted EBITDA also increased 97 percent to $80.9 million.
Nuvei attributed the gains to the release of new “innovative” products, growing its portfolio of alternative payment methods, gaining new customers, and completing three acquisitions that increased its geographic footprint and addressable market.
“The third quarter also marked our one year anniversary as a public company trading on the Toronto Stock Exchange, which was followed by our successful initial public offering in the United States on the Nasdaq in early October,” said Philip Fayer, Nuvei’s chair and CEO.
“We continue to experience significant momentum in the business and are well-positioned for sustainable and profitable growth,” he added.
Nuvei offers payment solutions to retail merchants, as well as tech and distribution companies. Its customers span Canada, the United States, Europe, Latin America, and the Asia-Pacific region. The company closed its Nasdaq IPO on October 8, raising a total of nearly $425 million USD. This made Nuvei a dual-listed public company after it went public on the TSX in September 2020, raising $833 million USD.
In addition to its IPOs, Nuvei has sought to raise more capital from the public markets, disclosing plans in June to raise up to $1.8 billion USD through new issues or secondary offerings over the following 19 months. These types of offerings serve as a means for public companies to raise capital and can be used to support various business strategies, including acquisition efforts, an area Nuvei is active in.
Magnet Forensics revenues remain steady
Digital investigation software startup Magnet Forensics continues to post steady financial results as it saw a 44 percent increase in revenue in the third quarter of 2021.
The company achieved $17.8 million in revenue compared to $12.4 million during the same period last year, primarily due to a $2.7 million increase in term license revenue and a $3.2 million increase in software maintenance and support revenue.
Magnet attributed both increases to additional licenses sold to new and existing customers, growth in its user base, and further adoption of its suite of software products for forensic professionals. However, the company noted these increases were partially offset by a decrease in perpetual license revenue – a purposeful shift on Magnet’s end to “change the revenue mix to be more recurring and predictable in nature.”
Magnet’s total recurring revenue was $14.5 million, representing 82 percent of total revenue.
Net income was $2.2 million, an increase of $200,000, with adjusted EBITDA of $4.6 million, an increase of 33 percent compared to $3.5 million during Q3 last year.
Magnet recently filed a preliminary short-form base shelf prospectus to raise $950 million CAD over a 25-month period. Vague on its plans for the capital, Magnet noted the funds would be used for financing flexibility.
Thinkific revenue increases 65 percent amid payments product launch
One day prior to Nuvei and Magnet revealing their third-quarter 2021 results, Thinkific posted its own, pulling in $9.9 million in revenue (a 65 percent increase year-over-year).
The EdTech firm attributed the growth to a combination of new customer acquisition and a stronger mix of higher “tier Plus” customers.
The announcement of the quarterly results coincided with Thinkific rolling out its payments solution to its American customers.
The solution is an embedded payment processor integrated into the Thinkific Dashboard, allowing customers to accept payments, manage payouts to bank accounts, process refunds, and update banking and business information.
Thinkific offers a software platform that enables its users to build, market, sell, and deliver their own online courses. The company currently has over 50,000 course creators with 66 million courses taken in 2020.
In October, Thinkific filed a preliminary and final short form base shelf prospectus that would offer up to $300 million of Thinkific’s shares and other financial instruments.
In terms of third-quarter 2021 results, Thinkific reported an adjusted EBITDA loss of $6.3 million and net loss was $10.7 million, compared with $23,000 and $100,000, respectively, last year. The company attributed this loss to “investments across all areas of the business … to support business growth, build the Thinkific brand, and invest in research and development.”