EEFT - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the Euronet Worldwide Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

It is now my pleasure to introduce your host, Mr. Adam Godderz, General Counsel for Euronet worldwide. Mr. you, Thank Godderz.

begin. You may

Adam Godderz

Rick and Fourth good call, welcome you, CEO; everyone, have morning, XXXX Earnings Euronet's and and Quarter Chairman today's Brown, to our Conference CFO. Mike Thank our and Weller, Call. we On

predictions to I'd concern intentions, slide forward-looking made second actual your attention the on future today. Euronet Statements PowerPoint management's presentation of this Before statements like in to or materially forward-looking on that disclaimer these or are we its statements. expectations may call statements. results begin, making from call the of anticipated the performance those we'll forward-looking be Euronet's vary

a slide As of number a second factors, on of including result those presentation. the listed our of

of using GAAP we'll the non-GAAP In the addition, financial during most comparable call reconciliation be to measures. the PowerPoint presentation a the measures includes

the our time, over this Rick At call turn Weller. I'll to CFO,

Rick Weller

across of some quarter double-digit delivered full EFT financial billion, of XX% XX% of revenue quarter. Epay Thanks, With quarter the growth across was million. delivered and will Money $XXX growth year fourth to everyone. We about all constant fourth my Leading currency comments EBITDA constant the operating We currency of on provide I fourth the adjusted X% currency fourth the compared all on quarter of metrics. growth with growth $X as record Transfer comments income metrics. constant revenue well double-digit XX% way delivered growth for to $XXX quarter all fourth operating Adam. prior Slide adjusted Today, delivered million financial year financial adjusted I'll of metrics. and EBITDA X%, of as begin X. brief our a income that, Welcome, key 'XX. 'XX,

compared you range which prior XX% $X.XX exceeded analyst and consensus $X.XX the fourth Our of use. on consensus estimates, to up source a year quarter was to adjusted EPS depending

to the we while the an in point the not out would finish to for we In it like the opportunity strong producing $X.XX the higher, that X.X year, FX producing the Moreover, about excellent $X.XX to flows, quarter, -- is for million. adjusted I'd quarter. also the $X.XX about shares. nearly if million EPS repurchase continued record throughout of been quarter, of took $XX rates free decline million shares our track have fourth our cash X.X

Given X.XX% than you we we But of -- [ our there EPS. improve less X% know and the periods. future earnings the adjusted repurchases timing or quarter only about know, all as repurchases, ] for a these [ share benefit was ] marginal to $X.XXX fourth by per will

Next XX%. Revenue, fourth from season adjusted to the in fourth in grew EFT and quarter. third was operating adjusted of grew growth grew driven continued adjusted some income and revenue results travel Operating our Europe, the XX% shifted differences fluctuations. shows single the EBITDA quarter income major a our shows low these changes, slide, X, On the Slide next we currency impact presented please. To On basis, digits. was X headwind in basis. on currency the a rules the currency modest the it year-over-year on slide. results with adjusted the for in currencies normalize Slide reported of 'XX tourism-related currency by EBITDA adjusted revenue our impacts which extension XX%. for quarter the

fees XX% international and partially revenue, cost from offset transaction revenue adjusted have markets. that income the across in digital operating and strong the and rates related Growth grew ] increases Money market X%. the growth Revenue core originated new promotional by [ Epay and XX% business are of growth U.S. transfers income growth operating revenue of in rate transactions, U.S. by XX% attentive transactions. result And our benefited included decline all result a double-digit content X%. XE and driven EBITDA management. margins growth EBITDA campaigns. outbound and adjusted access in growth XX% intra epay expansion XX% business, Epay's metrics. Transfer very [ EBITDA to business. growth was in transactions domestic in XX%. growth each operating grew existing growth with XX% financial pleased in certain international in we continued and income double-digit digital services consolidated in direct-to-consumer branded we OP was operating These X% in including money was Overall, the together merchant grew interchange growth port delivered and the growth from ] X%, growth

margin across these automotive expansions an operating X growth old double-digit cylinders. rates use To on segments. Maxim, all all we're produced hitting Moreover,

balance of quarter summary I'll With that, comments momentum, to sheet results compared end. sheet. presents fourth X margin and a to trajectory quarter XXXX. Our go us X position for our our very the growth nicely and a make Slide few good a prior balance about Slide

As unrestricted you $X.X equivalents and quarter and $X.X cash billion. can cash of unrestricted billion cash in cash of short-term borrowings The and the generated net share from is the repayment capital see, of we net with working repurchases, result debt ended operations. fluctuations, decrease in

compared was availability our due the an and December under at highlights debt of and end business. partnerships and facility net revolving credit was repayment the basis includes credit in cost approximately in of to This additional the continue billion million $XXX reduction revolving billion. was of of the facility grow $X.XX in borrowing our credit strength flexibility of under our availability to to our at increase borrowings, facility facility capital year-end additional XX banking the to September. result billion $X.X from short-term in the provides to The company's point $X.X extension The a decrease increase

will to likely a see notice know, of date, related $XXX and next issue put you to of trading the exercise million share their week We XX market X-K March put put will convertible the on the informing requires that many are so anticipate a indenture repurchase the date price The notice. procedural have us As option. bonds. we this bondholders a where current given bonds that our you our

We balance strong have to and the cash another bond a capacity revolver sheet fortunate our option good among a issue to convertible position, on are alternatives. other

are for We to best flexibility and decision opportunistic watching company. the have to the capital be market make the the

to go Slide XX I'll now.

to by we above the earnings delivering to that end to did rounding we we or share range. we know, working range And above be for at range high XX%. you growth high that adjusted XXXX year-over-year. we end said of XX% would As Well, the hard be per the set at said down exactly what guidance XX%

revenue consolidated $X full income billion, million we the year operating and all million. EBITDA of adjusted adjusted 'XX, For of record financial metrics, results $XXX across almost delivered of including $XXX

will closely the benefited EPS, $X.XX you that you at see if share the more look from repurchases. adjusted details behind Additionally, we

You full will a repurchases. XX% real And interest tax details and to the say go the will year-over-year. operating largely from high I further in won't The in year earnings taxes that you I'd with real growth that attributable Essentially see results equally XX% income. increase adjusted story. fourth increase benefit was expense the interest through in increase expense all boiling offset quality yet, again. and are quarter, see from share line that's income EPS down in the the the That's of increased earnings operating so growth. by

all expand profits it I Driven from are earnings adjusted that However, we by gross record share. operating we full think bears year-over-year. year with the margins repeating saw margins and X operating per pleased extremely and and revenue segments,

I I Before want to wrap our analysis guidance. provide a around EPS bit adjusted up, more

be [ XX% range. the XX% year EPS adjusted ] for We expected the our to full 'XX growth in to

charge a has the This nonrecurring be currently the been obviously make in the the but of charge tax, will convertible our first bonds. attributable expense $X.XX look recorded which first tax related state tax first essentially are to to quarter in We will forecasting quarter to of repurchase $X.XX income full first year approximately company's the guidance. per a share unusual. front-loading quarter little the quarter, in considered

will XXs. to Further to considered again, guidance additional effective in point, our tax this upper tax push This range. year rate the fully our full

Excluding this this our expected at It annual that Euronet. to will year. to items, great tax is effective past generally be rate similar see tax you onetime has year nonrecurring been another

that, I'll turn Mike. it with over And to

Michael Brown

XX% Moreover, year-over-year. better by rounded across operating XX%, metrics, $X.X we billion the Good down for a our We adjusted consolidated income with over #XX. of XXXX were little but guidance, morning, it of thank Slide per earnings joining the comments everybody, you and us. begin on share did a I'll actually I rate to end highlighted financial delivered high above results than we growth my record all again. XX%. Well, results

last to As success. we we reflect on celebration prepared XX-year great that for had was our our year

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over X then produced operations positive cash grew, and $XXX flows X we even of segments of And from our million.

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in to landscape the indicates no that on financial record one will might our the we knows ahead. be what XX another ready track like years, opportunities look capitalize While

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me but in business to produce we and analyst very streams operating with large precisely operators an built for are to great your in told For realize Euronet, I me made market a you at That what guys future. see instance, don't is a future Euronet model. poised diversified we've multiple need revenue clarify a why here the once well-positioned growth

sector began access on down which the by tremendous next EFT we opportunity early a we one recap had investment positioned ours. global in for for a days, banks, big leader This to to To go slide, ATMs Euronet Beginning assets processing our path running we on to a offering in segments to each is with a own of assets digital Slide #XX. innovation. ago, the their as we industry. quickly here. deploying Let's even Today, ATMs, that we recognize But extraordinary represent our could in recognized complement expanded and and the those journey, collection our that that us and one double endeavors. our X another allow operate payments that X quickly have years technology

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current let's published In within of favors The reshaping are the now. the research disruptions review experts X quarter focused be Boston what title Fortune Group industry XXXX, BCG article bold. of the on that surrounding fourth the Well, will industry the of the Consulting I'm #XX was the industry. the saying. are payments Slide payment on landscape. state and payment the

macroeconomic inefficiency. was and second, conversions digital digital, cash technological regulatory pressures; first The to payment scrutiny and cost pressures from slowing

the of BCG's research X [indiscernible]. findings was adapt The cash study digital One indicated conversion to need to more that that payment companies interesting plateauing. in is to these to BCG payment disruptions quickly research

As X ago. couldn't at help us slide X of I this an advanced reflected on or this we I slide, copy think years

future. drove the which global for of saw us just accelerating, is modern We platform develop permanent we the model sitting were we ones. micro which that Ren the cash and But to digital architected. name rent. years the be platform saw and response independent, investing ago, Dandelion several profits the to would most real-time technology, did. database weren't milking first in launched POS it in modern services ATM switching observation, The changing, we Skylight payments In XXXX around more and independent is and EFT some the system Ren plateauing it the versatile to to need rather and

a [ to of the of pickup response largest XXXX. building solution In banks, launched we to for Transfer launched We there strengthen In real-time transfer and through Dandelion is cash to is locations XXXX. remember, you need need enabling into reinvent payments to response wallets ] might in have in cross-border ourselves money a compliance risk pristine network billions world, and proprietary payments worldwide. accounts the launched payments record functions, Money in our Skylight. compliance business. the Skylight bank Dandelion the the

emerging engage Finally, Euronet in response the in a built need powerful over to world. infrastructure, of all to network the has assets

FX, in to includes that covers to money to all in not customers access network essentially, it's XXX to RTP all X.X over they network locations out of any licenses, compliance we the accounts and get X exchange wallets wallet The and settlements money. Our receive payment send billion domestic offer and X.X handle systems. connected our over the ATMs, major bank accounts, -- segments And ability and well. the over We're just and form physical XX,XXX banks, billion it's of form network, whichever want, foreign cross-border. the as of and XXX,XXX

market Our assets time. represent for our strength and takes a significant It new barrier entry to competition.

the that It the takes payments get all over expertise establish in money and to we built to countries world. have infrastructure XX

key industry long-term BCG to I for As for suggestions these participants mentioned earlier, are success implement today. areas

checked has However, these all already boxes. Euronet of

industry to fact, establish them In years checking we ago an started as Euronet leader. X

as lead Our motto get out [ is you lead, follow of And to the chose see, or ]. way. we can

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aside When and markets, let's from and rating overlook growth balance strong let's But sheet drivers. our a in continue coupling Now assets, investment-grade our future. a facility. market, technology a products double-digit well products bit credit world-class growth strength positioned our billion not $X.X visibility of into are financial the little we strategic strong more specific into get credit to huge well and and

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payment combination FX both use physical of The more the see through third-party digital revenues with and exchange mix a power second consumer foreign you owned which spanning at cases needs. cross-border Hopefully, business points per meet and -- how of revenues distribute us foreign exchange, payments channels and the cross-border, and produce can to touch than FX-related enables payments average. global services we is to and our moved XXx dollar

have continue evolve. method the While to will and likely

is pay payments. to money. to want Euronet continue that say and way people We to move whenever to people or will wherever, believe it always lead safe need make however fairly the will

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of in the price international fees increases expansion fees, and access First, introduction interchange and international into markets. including of and additional domestic domestic

We have process. real-time payment

taking which X XXX% as customer opportunities and a last serving expansion have the POS advantage years. of card at and payment over profits to grew We're business our needs. acquiring business, ATM service over We of

this our at quarter, to and we like many Service others the Merchant were the we customers recognizes X,XXX a This cash banks solution. ATM digital The these could traditional offering bank access better terminals as they able than have added In in to acquiring a platform. to mandated the the utilizing POS a accomplish our quarter, governments countries expand with more give that with option more lower cost fourth Baltic. physical in by POS merchants technology than X,XXX and the

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]. Slide Now I'm [ #XX, about on we'll epay talk

to mobile beginnings continues opportunities and the from offer of omnichannel our epay create our of As to our Epay to pins distribution epay scratch mobile of consumers content, our always utilize opportunities, processing in cards has diversification for to example new a converting been branded I from prepaid assets businesses, last perfect early partners. airtime is prepaid to pioneer branded ability quarter, our to payments mentioned third-party industry. digital revenue-generating a distribution

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for new card fresh offering and process This with Pay distribution card gift dedicated Amazon expanded to also agreement a new launch payment service. our brands. gift local through avenue Pay a engagement Amazon a initiative within introduces gift of We retail section customer cards with a

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move let's next discuss slide, the to we'll Money and Now Transfer.

As we wallet engine stands to growth like money network billion over highlight X access physical Transfer XXX,XXX as locations I strategic discuss moving accounts the into with worldwide, Dandelion the most as key bank Dandelion Money the accounts, future and segment, a X would globally. to for billion cross-border

us allows Beyond to tap DNA, product family payment market. XXx services. share -- With positioned Dandelion capture banks our and value the trillion offering. the market traditional are to of opportunities a we superior in a as size remittance unlocking this the into cross-border remittance competitive well markets $XX new businesses nearly recognize unlike industry of and

underscoring and into were being dive the across momentum quarter. in performance in global let's our Now short our leadership the money results were the the marketplace fourth of channels. distribution not transfer growing exceptional, standout There

by quarter, X.Xx. with momentum. growth core outpacing achieved our double-digit market outstanding We reinforcing growth and this Transfer Money segment transaction the Our leadership market delivered results business

compared prior the grew prior our and to the transactions compared digital to XX% digital payout XX% grew year. year, Our

don't third Financial to our success. asset That's expansion people prime remains quarter. Representing our is collaboration volumes. which in Services, a central example geographical Moreover, strategic with launched the total and XX% just partnerships big our PLS our A of get. that

with in lived Our expectations, territories. volume XXX quarter up transactions first to post yielding full countries and launch substantial

additional On chains. the X back we this launch, check of signed have cashing

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XX UAE, service the With second payments world prime Dandelion A the continues to the which to partners transactions industry. Zealand remit, fourth providers leading new was our based Alkali new payment X serving driving with remit. ] SMEs, signing discuss and money largest World MSB outbound from originating platform, Financial according Guavapay, of new in finally, a stronger cutting-edge expanding in cross-border position the the to of up orbit market Asia. customers launch let's ever deals, U.K. momentum, in New International, outbound digital are Ant than we [ the quarter, and strong players digital in team in in most this power is pipeline wrap partner and headquartered MSB fourth a wholesale, major An a Australia, the our largest example of a quarter, To excited innovative one our world. transfer, Panda Singapore sales Bank our Bank. in partnership in announce countries fintechs the with growing our the the more And with in

expect expand about here sand. to XX% the next of we will markets, opportunity we expansion Finally, outbound clear to the to market the continued of history, segment. path is to licenses from to market expansion whereby global currently licenses there XX% at Transfer originate you markets where from in alone. growth have continue XX% an of growth see a transfers about the few in essentially that those It's be new have can Similar we to Hopefully, remittance years, market. to Money we with XX% than more XX% Ria's

to and up Let's slide, the wrap move next we'll on the quarter.

that have discussed XX at So, the X after core years, our this pillars of we all the over success. revenue-generating fundamental are activity

cross-border And exchange. transaction is it's payment foreign First, processing. and and the second

we will of strategy As pillars team all to Consulting deliver our Group. revenue-generating to strength the on grow. to checks that as mentioned continue suggested leverage fundamental a the earlier, long-term boxes for of I leadership our Boston growth Moreover, by continues

companies launch mix investments, make products. continues and new we revenue Our as to acquire shift

ATM $X XXXX, network. only from revenue billion was our XX% our of in In

market we core plays growth. that As potential revenue with we model, business our supporting have and essentially our we have $X.X for explained, assets. have in trillion model payments endless a global a diversified robust

our ATMs Dandelion of expertise. form technology, retailers, the mean, proprietary Ren network, regulated stores, and our and footprint distribution our in and terminals. compliance company-owned embedded entity, licensed POS Global industries -- have I partners We banks, of

We have solid balance growth can that and very future earnings initiatives. sheet a robust support

ask these X I a the have track X And is but in to them best people, completely have thing winning global assets was different our at for game to or level. and ethics. could record markets, at unbending a proven scale a One is

said, As immense in barriers high go we there this to to market. are a after position entry be to

are We not in the building mode.

We are in equipped do the execution well mode and so. extremely to

these and business segments, through payments, we cross-border Our different a stands strategy on foundation our revenue to have foreign our X world reach the transaction and Euronet networks. payments, assets, through of network of go-to-market for exchange our pillars so processing, the forth enabling of

are rate currently global that to continue. and of the market faster we payments We than Xx growing growth, expect

results. As another drive I want in opportunities our XXXX to we repeat, to remarks, conclude my a I of pipeline great look with forward to year

with XX% We in expect XXXX a XX% earnings strong year to another growth.

will questions. please take With assist? that, to I'll be happy Operator, you

Operator

Instructions] [Operator And our from Rayna question comes Oppenheimer. Kumar of first

Rayna Kumar

and initial growth can your what Rick, are in us that gave bit XXXX? a drivers XX% help implies? And by outlook you here. results what talk little confidence Mike you if EPS you the XX% about Could raising for understand to EPS nice segment your

Michael Brown

we think forget. -- the not let's this I number for We year, XX.X%. like Well, hit

all in got I've really talked we've hour, assets momentum all and the half X hit the of about we that end year. the range got just our to high So business last We've for segments. XX% last XX%

just lot in segments. of each particular. So I've in it itemized a isn't really all we in one of momentum X my strong them backlog got But the X. thing and a comment

where one we've over I like crazy, it EFT friggin things last mean got like merchant in it's our XXX% can kinds -- I weed, grew digital services stuff don't areas. our particularly all you where So get mean the those percent like I a just thing, that segment, of -- any years. I we XX-plus is growing And growing just X think we're getting Rayna, an

benefit ATM they bank to We where to they to with other access and then are we're business, to and by easy at lots really cash have world. markets. second go more recognized it their course, interchanges continue in or you and to of epay, exciting. do our more our as then, so of each And Service all forth. DAP our big them that our and and than ourselves of locked a that's being got have network governments these Skylight brands we banks better -- can customers, do their we mandated that to provide can they to -- own for ATM this themselves. we've do things us -- the changing have keep for second customer very our And new kind -- that. now bringing We've of we product got in And

of kind We've some number solution ago. years with similar of Kroger, a pioneered this for

out stuff available this growth first transfer, I like then just or you And across channels, making our we've mean that XX% something XX%, a board, was have Look paying it at shoot. I to we're payments, what go it's our to and that have signed in productized digital bank, we lot cooking. of we've banks. of we forgot money XX% Now which and now we're percent. billion. into digital $X.X the That that,

Rayna Kumar

Yes, get how can growth you that's models, great. say Very ? helpful. just then if our anything on any And And help your on by segment? can looks [indiscernible] we just

Michael Brown

for next will maybe They're ever, Well, the markets make cash are still have markets. developing new next again, and the these ATMs where XX The to in put we going streamingly just money. years. we not can No.

a in keep they're overtaking And it. so And company those for still new as putting area. we'll markets the is keeping ATMs or us are certainly that see -- as thing where expansion growth profitable. I profit areas interesting rest center And the of up -- the won't just but and is we big

you and saw -- we're So that.

were Our our of this grew XX%. in XX%, revenues by revenues. XX% And down we're XXXX to -- we now revenue in total while our

So whole company the excited. pretty world, around is growing we're the and it's just

and in have your own You'll sales fill your spreadsheet. to

Rick Weller

numbers, of diverse of a as products our very consistency, would brought got I brought that. about and what of like a in very is great We We've said, well. consumer is geographically because -- diverse We're were business. offer ranges Mike Rayna, lot good things business. doing diversity to direct-to-consumer of which a have working a deal business the with banks without you bunch from fortunate giving

So results. growth. I expect you, tell that income similar the past would of businesses this to contributed grew XX%. we see I kinds Each year, operating of would Again, to

would expect we've that got to similar 'XX. go given into good we momentum, So we see as continuity

said, we were Mike as mathematically, again, slightly And XX.X%. above

we're range. -- said as we year, be or were know range, we actually you the And last that year. to outside range. delivered driving the look, above throughout the delivered we the above what, So at We of

there's the So in of business of number there I things a of confidence our business of results. the give continuity achieve ability us will the terms think to excellent

Operator

Gala from question Crespi, comes next Our Monness, of & Hardt Gus Company.

Gustavo Gala

the the Can Digital & Mike on we growing industry to. mean, start quarter nicely. year. of money job you're Rick very on nice -- the I -- you're clearly, continues off anything transfer all

of prior just money that? to I and digital, of margin should takes thinking which foot not but we've Anything any it's like calls. be have more more intra-quarter And and -- number seeing like you're transfer, accretive, be the heard exactly, puts to the brick-and-mortar, you get we fourth seems longer on think and transactions. insight domestically traffic into Color-branded quarter term then in just of terms how in

You're be more going into to GOs. going

that's less versus some to first be going in existing a so my -- contribution follow-up. share one. growing lower have or have margin I We markets? So share

Michael Brown

Okay.

So a on comment your last quick comment.

times, X into players. or the may new X geos, have go you As GOs only of lot player a

into when new a oligopoly either you monopoly Because margins geo or actually market. an there basically and So are the as a fatter. what go find you've your got you they're milking

And the so equalize we average get bit and than entered higher but cheaper then market. world. we be And market the around ton we kind be a even little can share still and of of our that, a

payout having growing some all is long-term we keep most getting in we're So and money transfer into is -- single touch the the we've our then to going geos, really just opportunities for current biggest geos got like new have asset. points and

of to that fundamental market, Even, having And operating don't up off these We process. leverage our a technology centers because we we redevelop service platform between have use -- toggle set we time for example, different to each I not to our would single businesses. to the into work structure, go customer we to a we're languages. across applications add is

countries. our fitted. And got we our into are gone haven't We've again, been And doing operations years. -- first country. for so just this not we're we're XX-some We've --

more zero. market, time leveraging the We're consistent the each that's made of more have we by into been simply we starting we're So out. ground that types efficient roll things from we roll infrastructure not even another technology of some

go we're the said, couple have that of able to markets than good them there, folks a proposition, in offer dominated a those better As melted Mike before. value probably and

was we it principally so And Ria, at look kind acquired you right? of were locations world, the continue it thousand a and over -- were We're it works we we and Ria margins. to nicely. -- out business, those back -- all outbound XX-some grow U.S.-based was there And if

we're advantage think positioned the on. that as that at of we I So well go

Gustavo Gala

how took really Those into to XX% in we [indiscernible] good that, I'll in XX% XX%, frame, replace comments seemed medium the not not the on queue. And be XX% time XX% taking we we number a on a with that meeting to year, XX% the bogey should like frame back framework model. to XX% are it XX% the guide, our have the out of medium-ish last kind helpful. And jump run years --

Michael Brown

look lot than You of to be COVID years the higher including XX.X%. COVID, take if you it's a out, years, ugly over going And the was that. last average XX our

a we that XX% can I stick to that long XX% could to time. for hoping I'm So higher, higher. And get that I'll if get

share advance. ask to also I'll like can in a I question, of on Also, answer it There's been so immigration. lot press going about this action somebody in -- the

our kinds which One, had we variety. that And not business actually no through similar found and so Trump of at all. back looked Monet One And Trump did really went we Transfer affect it we

what including the the more for the contributor means people, people is a a overseas. fact, more have day, just In economy. strong strong is see money end strong At growth economy transfer who we biggest families of to

have forward, a Transfer. in we a going going to that lot can you off good better Money if economy So believe be strong then we're

can the on You to question. go next

Operator

next from Blair. question of And our William comes Kennedy Chris

Cristopher Kennedy

really on initiatives XX speak and think, newer such I is Dandelion results, The Ren, business very The mix small? of for way to as Slide think themselves. there those any helpful. Is about Skylights your some

Michael Brown

COVID just at -- from kind to mean grow pie the I middle that started, mean, now It [ it's ], it's see when growing, don't if X I XX%, where the ] at are look to bigger. hail Epay's it's XX%, of you XX% but in right. them, [ Scott, went growing. charts, even each we was hard forget XX% you're and and but Well, of looking you okay? those just shows

see works see are think is to the -- we're I Ren we these licenses. So going -- transaction-based will way

they us, the real-time kind doing So as of have cards with curve is. payments or sign or as a for banks sign hyperbolic to up, almost up whatever issuance of it

up did every you than more year end making prior year. you So the money

just you'll and contribution there. bigger see So a bigger

Cristopher Kennedy

Got business it. of of on the think just the I And most Understood. U.S. outside Ren, then is broadly

business on and how opportunity on the kind are -- what's there? growth of the perception market that thinking that Just of you what

Michael Brown

Yes.

to real-time it -- So Asia is ago. oppertunity comes Asia. countries. to real-time payment XX first Because when We years those technologically advanced they're got is they've more the way across place UPI And like settlement that RTP for U.S. systems the pioneered big were than actually is the payment why able -- with the in India is this into switch the we growth And of which most system sell that? banking, first

lot to that world. that there. We it version customers So just -- was U.S., able the kind of U.S. nascent a we rest have the a now was of expertise the we'll go the Fed in here now to That's a moving of in call now that, of to we'll be have summer. finally launched last

we've several well. U.S. Asia. the actually got and -- in we X even so didn't U.S. we're cutting the deals sales years after that for as deploy guys in And But

banks right forefront could our they early appreciate of and technology and there were the and superior technology. adopters Asian fintechs Because on

lot. in go India connected African got look We've payment So systems X switch see in one. to more a Philippines forward. thing Ren -- we'll or got the the to got their banks payment their we and on real-time same like doing -- through the we've Connect. see real-time I western you'll we X X but mean, as some markets we've still banks

more So past easiest the jump card were one whole have kind we'll markets just they emerging so because touch, the of thing wanted we'll to and more. the in And, altogether. keep

Operator

from comes Pete Davidson. question D.A. next of Our Heckmann

Peter Heckmann

you about of We XX% to about the commentary to in 'XX. to the If a $X.XX converts. of correctly, had tax I quarter of quarter here. first provision just you're higher due And in quarter trying first repurchase XX% understand remember the benefits first now the the talking

ballpark what to? shaking in just math the $X.XX your just So something $X, but ballpark, out. out the make I I mean, sure in works around of right that we're is

Rick Weller

$X.XX articulated the at starts then in Well end is you were you put yes, the of top way that another the of that, right $X.XX and you I you look higher putting probably to guess at the it on maybe to if number ballpark.

I your incorrect. yes, that sure not tell so is you, I'm So, directionally math would

Peter Heckmann

Okay.

you of Okay. that larger little Can can partners, Dandelion about any bank you onboard with this partners to I And ramp? are then a the with of relatively bit you seeing of volumes and extract in year? some new trends success talk and the you that terms there? then -- talk And and customers guess, expect then about channel the some

Michael Brown

customer next maybe of our should Well, we well-known you several Their they're call we're quarters, all this be are most it have in the place. use our that places all do large CXB banking about might -- HSBC. our -- of and customers best BXB we payments. to they're in the customers them -- our the process, of Asia, excited making kind couple announcing over and They're is They over payments.

out month. we've has We Every been live -- have record let with them XX not count me month months. about a it prior now, the been over single

expensive measures, and rails our a out view find that is than they settlement competitor people what give and as a their less banks. other faster standard dynamic to this So banking competitive using

enter service. the like new close it banks a have this, turning add all which banks So market We that are and those more compete, bank is to Australia. as going to we better getting largest got other we've in more we that we've guys to signed, the CBA to a what's We're on. like because when

businesses but grow that So to backwards. and those we've of just it's cooking, got go continue lot of one never a really

Peter Heckmann

[indiscernible] there on that their That's to then up the down great. following ? And was the just underlying not closing HSBC Zing using app HSBC the or

Michael Brown

No, wasn't. it

their I time Zing fact, last read the In think discontinued app. I they've

Peter Heckmann

That's correct. Yes.

Okay, thank you.

Michael Brown

Maybe they...

Rick Weller

discontinued they app Maybe . customer. have have their to wouldn't been Dandelion

Operator

next question of Andrew Our from Citigroup. comes Schmidt

Andrew Schmidt

make sure talked great. as equal just quarter? want that start XX% for just I to the to mitigating 'XX. about This off for product you Rick, correct, the usual. [indiscernible] includes all I Maybe that first tax detail growth it's is impact, appreciate the

Michael Brown

Correct.

Andrew Schmidt

just up seems that. guess, it pretty operating on is quick so I an like basis, you performance -- I underlying follow add then to And here Okay. if mean, the impressive. back that

year you that things interchange think guys there But that there an call well. are is mentioned subsequent upside this business doing model good that were one-off Obviously, fairly to into the are So kind out things the that of to surprise came this about staff. of are years. mix we that

want to Just the we trajectory sure make have correct? underlying

Rick Weller

transaction. kind in would tell distribution we're more revenue Mike longer as more, per the More want real vein got the X, to estate of items average in think, No, is extraordinary kind location, launched this in see stuff. Andrew, often Except to that of said, the doing. said, location. It's any industry estate MMM, real as I success our points. years on in in okay? business. continuation digital more of what products is location, real getting ago. just I The more, business a industry. more. Success focus. into we markets, analogy are not We're more of use you of exactly that, There's transactions of LLL, I focus, kind kind earlier, continuity the one-time I great of as much that's XXx to We there, any being deal And said of X we've we a the

So to in also that's transactions. price per out transaction. to most that little are cross-border because the we're of connected They're technology real-time kind a transactions every do getting good focus that on transactions. of faster a of payment We're network we've made growing it. there got because the lot a possible That's mix whole there's

a So across it's some to look, We've see also respects, somebody cash what said performance durable I not any say one plateauing. It good, Consulting Boston encouraging, do card consistent transactions just conversion thing guess, to that's we to is go will in down. to that the call Group believe was driving I like would that, very It's people cash businesses. it. nice,

continue to are that saying most like believe out. looks prognosticators there it it's that. But of We the the out flattening

driving on so payout initiatives had a bit that's on helpful because digital the of digital little money to be and Now as money the that focus on said, whether certainly we've Mike can transfer us origination digital much a transfer.

and consistent across very broad set just production of assets. the It's enviable thing. particular one no yes, So

Michael Brown

question. one question. more Operator, more One

Operator

Okay.

of Our last comes Grondahl Northland. from Mike question

Mike Grondahl

And Congrats on 'XX? question, income in contribution quarter. dollars? what think going increases it's countries 'XX. over you operating in to My roughly interchange Roughly, what maybe surcharge the the be do that was to

Michael Brown

X all in or an for another offer every X to that back DAP. will XXXX, all, domestic either you calls, but that ability it like through international tell you either listen go increase we much, question last won't of countries. country our fees First And I it and really quarter, a and that to of an dissect opened up answer number interchange if seems or or

they and kind -- year. of so throughout the And happen

then more kinds mean of is a markets bit developed I combination into less so they're plus little those developed a have us it's because of a we'll ATMs markets market give profitable. will and increases that of can it. year do of many year into because just few a full the -- the as we darn that bump as this So a But ATMs

So that's it.

Rick Weller

kind dialogue call the that was hear many stored rates difficulties are of wars, bit, things because concept about dialogue little there a of cash. maintain access even value. that to increasing to saw for important add decreasing would of you over dialogue let's we've And years. Today, and where there I of that a that. kind decreasing, the stuff, we what, know politics, increasing. hear we we economy about all seen other the world like really countries When to what it, this of cash our saying, a talk people ago, And a it's don't interchange Many we years on about They the customers. in go are back reflection

to again, banks we what to plays depository because improving are say business, discussion the supporting beginning central in available. our to debate to maintain that rates, cannot be see hand on a we're see upon to And you're even We kind to is going more a look, sure banks So cash which right? or about opportunities digital access our accessible, fees, more cash of they form. deposit making make interchange have accessible have that, lot need country, our dependent starting only

have... to that to their. want decision get today's seeing They banks to more that ensuring a kind we're a world, so I in I because And say just the completely of aren't that pro toward led think attitude people of rid

Michael Brown

required government being being by to they're Well, regulated service. provide that to they're their

Rick Weller

use when windows the of headwind us. So it I are of now for another kind was regard that -- that years than back maximum -- a a that rather ago to few in the think kind

of things, we rate. many give double-digit nice confidence many going that of again, this us that we'll really the kind growth that the things have So part continue

Michael Brown

looks requirements it's for Yes. seeing, of we're long, changes And so it's and from to our banks revenue be time. thing like mean, long the the nice it going with all is only mandated today. XX% to a But I forth, the government

Mike Grondahl

or your favor [indiscernible] that And It's great to . X. back swing year last in the see in pendulum

Michael Brown

were the That this reason from of X growth anymore. ago, to companies the and they payment the just You've companies years isn't what rate numbers or fraction down of cash has are because seen the slowed X a payment have conversion it's there that that reason at plateaued. lot digital a

out And the definitely [indiscernible] rest And of going to the like the meantime, you gives so in we're everybody the digital for to on talking We . hell our of to that forward a life just I'd look call thank to ATM longer time today. our grow about to business. business. your in

Operator

you participating, concludes and conference call. This disconnect. today's Thank now you for may

Euronet Worldwide (EEFT) 13 Feb 252024 Q4 Earnings call transcript