International Money Express, Inc. Q3 FY2023 earnings call

• Revenue growth of 22.5% driven by core business, La Nacional, and I-Transfer. • Adjusted EBITDA up 14%. • Core agent retail business is a critical asset, with low cost and efficiency enabling investment in digital and other streams. • La Nacional restructuring actions yield annual savings of ~$1.5 million and present top-line growth opportunity. • I-Transfer in Europe exceeds expectations, with plans to expand in existing EU markets and enter new markets like France and the UK. • Digital business growing at ~65% with improved margins, and recent agreement to expand service to 20 additional countries.

Revenue increased 22.5% to $172.4 million. Adjusted EBITDA grew 14% to $31.7 million. The agent retail business forms the crux of current operations, contributing significantly to revenues, profitability, and net free cash. La Nacional has seen restructuring actions yielding annualized savings of ~$1.5 million and is expected to contribute to top-line growth. The I-Transfer division in Europe grew 15% in Q3 and has significant expansion potential in existing and new markets.

• Revenues expected to be $170 million to $181 million (up 10% to 17%). • GAAP diluted EPS expected $0.43 to $0.46 (up 22% to 30%). • Adjusted diluted EPS expected $0.51 to $0.54 (up 6% to 12%). • Adjusted EBITDA expected $31.4 million to $33.4 million (up 8% to 15%).

Q: David Scharf asked about whether the comment on being ahead of schedule in capturing incremental retail transactions relates to core transaction growth in Q4 and the pricing environment.

A: Robert Lisy said it relates to Q3 and Q4 transaction growth, and they've adjusted well to pricing pressure by protecting the base and going after incremental wires profitably.

Q: Michael Grondahl asked about ranking success in targeted plans and new agents.

A: Robert Lisy said focusing on protecting core base and going after incremental wires has been successful, new agents are performing well.

Q: Sam Salvas asked about competitive dynamics and 2024 guidance.

A: Robert Lisy and Andras Bende discussed competitive discounters continuing, and no 2024 guidance provided yet, with Investor Day in February.

Q: Alexander Markgraff asked about revenue per transaction and payroll card upgrade.

A: Robert Lisy said they have a good perspective on revenue per transaction, and Marcelo Theodoro mentioned payroll card upgrade launch in two weeks with cross-sell opportunities.