International Money Express, Inc. Q1 FY2024 earnings call

• The company delivered strong results with record revenue in 10 countries, double-digit earnings growth, and exceeded expectations on multiple metrics.
• Integration of the national business was a success with a 4x increase in EBITDA.
• Digital channels reached all-time high user engagement and profitability.
• Enhanced partnership with Visa to expand into at least a dozen new markets.
• Domestic expansion of outside sales force by 11 new positions and launch of new bill payment services.
• Completed 2023 with $62 million in free cash, the highest annual amount ever, driven by retail operations.

In the first quarter of 2024, International Money Express achieved revenue of $150.4 million and adjusted EBITDA of $25.4 million. The digital channels, a cornerstone of the growth strategy, reached all-time high user engagement and profitability levels. The retail operations, the backbone of the business, remain a significant driver with cost efficiency. The revenue contribution from various segments isn't explicitly broken down by percentage in the transcript, but key segments like digital and retail are highlighted as key drivers.

• For 2024, anticipate revenue of $681 million to $701.8 million, adjusted EBITDA of $124 million to $127.7 million, fully diluted GAAP EPS of $1.77 to $1.92, and adjusted diluted EPS of $2.13 to $2.31.
• For the second quarter, anticipate revenue of $171.5 million to $176.8 million, adjusted EBITDA of $31.7 million to $32.7 million, fully diluted GAAP EPS of $0.41 to $0.45 per share, and adjusted diluted EPS of $0.54 to $0.58 per share.

• Slower-than-expected market growth, particularly in Mexico, with recent months showing negative numbers.
• Volatility in Mexico growth numbers due to factors like how the Mexico banking system reports data.
• Impact of market conditions on the remittance business, though the company's resilient customer base is noted.

Q: Can we talk about the growth assumption for the year in Mexico and the strength of USD versus Mexican peso?

A: There's volatility in Mexico growth numbers; recent months saw negative numbers, but the market is expected to improve. Strength of USD vs peso is complex, and the core careers of remitter customers are resilient.

Q: Talk about the growth assumption for the year in Mexico and the strength of USD versus Mexican peso?

A: There's volatility in Mexico growth numbers; recent months saw negative numbers, but the market is expected to improve. Strength of USD vs peso is complex, and the core careers of remitter customers are resilient.

Q: Can we talk about the performance of agent vintages?

A: The business has same-store sales, churn, and new store sales components. New agents perform well, and there's opportunity to add more retailers, especially in Western states.

Q: Expand on the gross profit per transaction in digital and the percentage of branded vs unbranded digital transactions?

A: Intermex branded transactions are 40%-45% of digital transactions; key is leveraging strong gross margin to drive growth rather than just increasing gross margin.

Q: Comments on April performance?

A: Saw a resurgence in growth numbers, encouraged by transactional year-over-year trends, though more data needed to declare solid resurgence.