EVTC - Earnings call 3 2023

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Operator

Hello, and welcome to the EVERTEC Third Quarter 2023 Earnings Conference Call. [Operator Instructions]

Please note, today's event is being recorded. I will now turn the conference over to Beatriz Brown-Saenz of Investor Relations. Please go ahead, ma'am.

Beatriz Brown-Saenz

afternoon. good and you, Thank With me Executive Officer. President Chief Schuessler, are and Joaquin Mac Officer; Financial our Castrillo, and today our Chief

Before the statements like call we statements contained in would everyone earnings cautionary recent begin, this release periodic our that report. and conjunction to with may most should and remind forward-looking in be company's considered contain I SEC

of income measures adjusted provide additional company call, at information in that measures net financial management EBITDA, available related non-GAAP our and as such will GAAP certain earnings slides, adjusted today's common under today's information website per rules, in which During constitute SEC to section included earnings share. are www.evertecinc.com. and adjusted Investor will the supplemental release are Reconciliations also certain and Relations

the I over will to hand call now Mac.

Morgan Schuessler

Beatriz. to Thanks, revenue one to all over that prior with was third were we quarter the and on broad-based our strong our our results very continue growing expectations period. both initiatives our across segments as Strength execute pleased above EBITDA report markets. of I'm every

continue to hope the of future. Sinqia in acquisition transformational progress announce the We also closing on to that near deal make the and

the from I update to will over our expectations On with today's as the turn an as year. on of results well further the will quarter, our we'll some details to call, then highlights provide and who start it Joaquin, third remainder quarter for

prior expectations basis $XX was Adjusted X. increase quarter. increase margin last XXXX. the approximately XX.X%, Slide of million, Total approximately level third million and guidance. above an to approximately year's with EBITDA approximately when of and our EBITDA compared of on Beginning compared above quarter, was an was XXX the XX% Adjusted the XX% points year $XXX for revenue approximately third quarter

adjusted year earnings per the XX% $X.XX, $X.XX. quarter's share an was of of EPS prior increase from Adjusted

earlier and and currency of share adjusted unrealized As and prior figures. EBITDA, foreign exclude against the impact income of variances net compared been noncash calculation adjusted metrics have earnings remeasurement, this a reminder, all year we per gains adjusted from year recast against changed to losses our

flow and of approximately our returned we to repurchases. dividends share shareholders cash $XXX million, operating through $XX generated We and million

strong remains XX. as liquidity million of our September approximately at $XXX Additionally,

update Moving Puerto X. on reflecting and volumes was overall across spread. continued to strength Rico XX%, volume in our was business. growth approximately Merchant up Slide XX% approximately we in our increase Movil experienced strong and year-over-year, Acquiring transaction by In business Puerto segments. driven on up Rico, ATH POS all an revenue sales Payments strong our

segment credit in revenue transaction. primarily to Our Business to of impact due Solutions was granted the year prior onetime of closing the XX%, upon up Popular approximately Popular the the

impact, Business Solutions this revenue approximately Excluding X%. grew

a are facing year-over-year growth benefited a where the headwind reminder, the impact quarter to the to from first is we hardware not the onetime As growth in software Business quarter. sales of Solutions also and completed certain sold due assets this Popular.

index on July, and still in year-over-year. more in overall decades. level economic X.X% stable with of a was Inflation The unemployment remained down seems through is just X.X% in to up this Turning the the The of environment of be the XXXX, in X.X% level lowest up reading though coming backdrop Rico. to with near past rate Puerto stable This July. few a did the overall rapidly the has to fairly signs activity optimism unemployment remains tick quarter. macro island

EVERTEC's recent also the year-over-year airline being X% growth. total macroeconomic through in to continue passengers Travel the the and September. of year. and growth tourism supported with most we be have year-over-year rebounded Auto September positive, flat recording year-to-date in mid-XXs, up year-over-year in trends is to view now In growth continue for sum, for in and XX% August, XX% to months, after environment down as sales

Revenue Latin to XX% impressive an America year-over-year. X. was up on Slide Moving

have we expect indicated years to no with over Getnet this different has further. quarter $X.X as and our contract of growth relationship we which catch-up will past led As is important adjustment, the Chile exceed Joaquin minimums, previously, the few been a which driver million of revenue explain recognition an now to

completed the quarter aligned also this our segment expectations. in to and year benefited The from organic paySmart first of growth acquisition the

quarter in strong strategy. are and growth the our growth provides seeing confidence we customers the Our strength delivered to contributions broad-based LatAm the region in in

in As a year. quarter completed the we reminder, BBR last acquisition the lapped third of the benefit

acquisition, Sinqia received the we closing towards complete year-end. to to expect approval, regards an announced previously before shareholder the Sinqia that we In and important milestone transaction

team are currently excited Brazil. working and and the in opportunity integration the on with Sinqia are plans with growth We ahead

We able update earnings fourth our quarter to for expect detailed more a and to our plans be provide on Sinqia of expectations call.

also In these biggest that so sum, the history. organic to working while quarter the results. that this to company's teams outstanding our want in the another was complete worked strong this past deliver deliver to thank ability acquisition I growth reflects hard to quarter

now at a our to in-depth for results quarter that, it more over I'll third look and outlook our XXXX. With turn Joaquin provide increased to

Joaquín Castrillo

and afternoon, Mac, you, everyone. Thank good

quarter for Turning the to will Slide third EVERTEC. you X, see results consolidated

we prior quarter losses adjusted of period the of noncash presentation. and effects income to a have As recast adjusted this remeasurement to gains a to foreign first EPS period calculation to from and made the conform numbers change exclude current reminder, been currency net EBITDA, in unrealized adjusted the our year, and

related the impact volumes, in year to above driven primarily recognition performed granted year, for revenue of segments a of Popular Revenue transaction approximately credit Chile of all $XXX.X was Total business and our expectations. the growth adjustment $XXX.X prior our million onetime sales strong was prior our upon $X.X transaction. volume catch-up million, million the the of and up to the the Popular Getnet closing relationship in by to as quarter third XX% the compared

approximately and quarter. The EBITDA million, year operating prior as adjusted to for in costs an increase expenses in driven approximate personnel quarter when the offset by offset operational basis an by was in fees, recorded an cloud increase previously professional EBITDA partially services, the $XX.X development corporate driven by of losses. of was initiatives and increase we compared the quarter. or EBITDA was Adjusted by Adjusted approximately increase compared the an higher in XX.X%, recoveries points partially revenue, XXX XX% increase year $XX.X million had margin increase prior to

The which mainly increase through margin EBITDA. Getnet reflects Chile catch-up, from upside flows the in revenue the completely leverage

upon negatively Additionally, the Popular prior was of transaction. impacted by year onetime margin Popular to credit closing granted the

to increase the prior in for ] compared of income the million was [ quarter net $XX.X million, Adjusted $XX.X year. an XX%

rate the quarter effective and our expectations. tax XX%. adjusted year be approximately the was expect Our rate for of lower aligned end in tax to full now the XX.X% to the We

and $X.XX in was by the income adjusted driven net an count the our year, reduced EPS Adjusted due increase quarter, of for prior to repurchase increase XX% share the approximately to a compared activity.

cover benefit a In million. starting third year-over-year by volume, Moving Merchant Slide in revenue overall the spread the Acquiring continued driven of net sales Merchant increase to approximately of our Acquiring. segment results, X. on $XX.X quarter, to was now combination increased an increased increase pricing This with initiatives. I'll certain approximately and XX%

the new But quarter. September Hurricane saw month as weeks throughout disrupted prior the to that the was the quarter by and in Sales spending volume was Fiona, strongest was strong of seasonality back-to-school year of revenues. impacted we patterns last adds merchant the are growth quarter X which positively contributing

costs prior quarter. Adjusted average margin XX.X% EBITDA the transactions given EBITDA year and for with offset consistent million, processing was ticket. lower the The XX% up the from was revenues, benefited approximately $XX.X segment higher in and and higher growth adjusted by margin

ATH XX, in you the million, Revenue Carribean Services Payment up third the the XX%, by Movil business. continued from segment performance transaction Slide Rico will for and growth quarter results was On the for approximately driven see the and strong segment. Puerto $XX.X our

the transactions was the side, an we continues the from the in strong in drive acceleration as steady up XX% growth year, from side segment, XX% Fiona the as the Hurricane ATH transaction ATH of which well impact most saw September growth of weeks the year. including to as from revenue from growth recent POS on aligned the Merchant in Movil. business prior and are overall person-to-person seeing to last Movil performance quarters Acquiring were we in our X prior

recognized The continues also segment services provided America transaction revenue the processing for benefit to segment. Payment to Services Latin monitoring and from increases in

to compared last from previously Adjusted net as year. EBITDA revenue for up compared recoveries benefited approximately the XXX Adjusted and segment of quarter was XX.X%, $XX.X to positive approximately last Margin million, of margin recorded in points the losses. basis effect the of was strong operational leverage the EBITDA up XX% year.

and quarter third of currency our related Payment Revenue as you driver last million contract. approximately in compared XX, on Getnet growth segment. major Slide the adjustment the the approximately up our was The segment see will On was for a Services XX% $XX.X constant results Chile to year catch-up recognition in of of $X.X to XX% the quarter LatAm million, the basis.

as date volumes the surpassed of recognized before grow revenue quarter, be contract as the of monthly remaining of this as the agreement, recognized we the Getnet will to well have to throughout us to continued which adjust the Given contract. expect now to end minimums revenue be requires life

basis. of expecting this we the a will on continue are time, this to at although another performance We similar adjustment quarterly monitor not contract

beginning also growth. of an revenues margin $XX.X exchange organic $X.X approximately year and transaction foreign the by of costs, charged offset XXX This paySmart segment of from contributed monitoring EBITDA partially the catch-up, result adjusted EBITDA the the XX.X%, the and Puerto year. last currency as margin to basis part million Payments acquisition Rico a well expenses margin. the and points in up from by approximately basis from personnel rates in driven Adjusted was segment. completed primarily was points at million compared for processing higher which The higher LatAm segment was as benefited was increase XXX

was for that $XX.X was you as credit part of transaction. revenue XX% revenue Business quarter Slide results the the for XX, Solutions million On onetime find segment. the Popular prior third to the was the approximately $X.X by Solutions year will million impacted up Business

this been the Excluding growth completed primarily driven X%, quarter. revenue have software million segment sale impact, in would the $X in hardware and by

last increase adjusted year. adjusted by quarter infrastructure as For increase equipment expenses. the was and the up partially by million, $XX.X in third to EBITDA driven was EBITDA margin expenses, approximately revenue, operating basis XXX was The higher the higher points margin including XX.X%, mainly adjusted compared and EBITDA offset quarter,

on Moving Slide to XX.

of You see summary a will Corporate Other. and

third adjusted of a X% million, was EBITDA prior decrease $X.X year. compared approximately quarter a negative Our to

revenue. from EBITDA of was adjusted percentage the higher benefiting revenue total as Our X.X%, a

to our flow on Slide XX. cash Moving overview on

$XX an million, million, million increase of was of cash operating by We paySmart $XX.X approximately restricted shareholder for of investments on $XXX.X we equity including capital million, year-to-date to as approximately beginning vote closed approximately acquisition balance approximately of of by acquisition the cash the of Net year approximately Sinqia provided million. the in quarter prior shares cash continue the had expenditures million, capital. acquired $XXX.X $X activities to ahead and $XX approximately approximately $XX.X effectively working Our driven compared was million. manage first

million. on $XX.X a $X including debt made year-to-date. total a We payments XXX,XXX common payments an $XX.XX which and dividends resulted on approximately of million million of we million, facility revolving paid our at withholding $X.X decrease repurchased debt share-based cash approximately of total to approximately in $XX.X net stock and for compensation, made balance of taxes in of the credit million price net $XX.X average outstanding of shares We

extended program million repurchase and available last through future approximately have still XX, $XXX December our quarter expanded use We XXXX. and for

shareholders $X.XX of paid to of another be announced XXXX, October record dividend to on December also XX, We as XXXX. X,

assets $XXX.X ending September included $XX.X in Our was million, cash. balance, and excluding cash cash of XX included this million settlement restricted approximately as of

Moving to Slide XX.

September of of summary XX. our find a You'll debt as

million quarter net $XXX.X of and was million, $XXX.X position ending total long-term approximately cash debt million and Our approximately of debt. unrestricted approximately of comprised $XXX.X borrowings short-term

was rate X.XX%. interest average weighted Our

approximately to debt X.Xx. EBITDA was trailing XX-month net Our adjusted

our the available As liquidity was of excludes cash capacity balance under and restricted revolver. million. borrowing total includes $XXX.X September approximately This XX,

an XXXX our as to for consider Moving provide XXXX. to as well will Slide to you I update with XX. now some outlook items

Latin $XXX and additional We with now our $XXX million, revenue guidance to Rico growth and results in we QX are and growth X% expect X.X%. the of raising Puerto given range to to a and our be pleased continued strong of million representing both in visibility, are America,

that and margin in corporate will EBITDA through result considering to businesses execute adjusted expect the margin year XX.X%, We to specific initiatives on invest between end quarter topics. XX% to lower fourth we as the in the range continue in more a of our actively increased

as earnings $X.XX of are share our to $X.XX, XX% per XX% share growth XXXX in adjusted to representing $X.XX. We earnings to per of the increasing adjusted compared outlook to

to a On earnings GAAP anticipated $X.XX. be is share to $X.XX per between basis,

closer tax We our effective non-GAAP expect rate to to be XX%.

considered have repurchases share or any not the this potential impacts Sinqia We outlook. as part acquisition additional any from of

to XXXX. Turning

to prepared reflect effect impacting Puerto not although to comment on recovery items notable. to are at the of we Overall, disaster a are guidance, give that positively. would While and outlook, funds, I pace, expected a are continues Rico to economy a slow stable the coming in few economy continue the like

half the look the strength that Acquiring year now as of was we have expectations, implemented last Merchant first benefited lapped segment consumer that Specifically, our in from segments, we pricing well as year. at above as the mostly mainly has initiatives

the Fiona XXXX, Hurricane impact also given from positive We growth year. had last in

we into XXXX. not our growth when benefit look will line expect from and some these in tailwinds, compared to we XXXX, moderation such, top As as

Our observed benefited the Payments similar we expect Puerto from Rico some level moderation Merchant throughout as in and look segment at as Acquiring a XXXX. XXXX, of of also trends such,

In million we $X.X related catch-up year. the our headwind going Latin into will to be America a next quarter Chile segment, this Getnet the case of recognized

anniversary of Additionally, we acquisitions now the which and acquisition we paySmart, the as tailwinds in BBR benefited from we lapped such of QX. early have that

and for Lastly, index the was earlier CPI was September this announced month X.X%.

annual MSA our X.X% to and ATH annual Popular reminder, processing caps increase agreement a X%. Banco our As our to our caps with increase

in trends see the we QX are we business. with and results pleased in the the strong summary, In

and to coming of SInqia's you are the hope detail upcoming the Sinqia excited forward on combination person to during look conferences providing see months. about impact in We EVERTEC and our fourth of XXXX more in results. very at expected some We quarter

please and open for go line questions. ahead Operator, the

Operator

comes question first Vasu the And with Instructions] Govil KBW. [Operator from

Vasundhara Govil

was performance. even think really you I low of out, I double-digit a I'm estimating called strong the if still was strong revenue It quarter, sort exclude it couple factors And onetime really of growth. revenue --

looking your in versus Mac So quarter? then upside expect expectation? the surprised sort what making meaningful a like of to of deceleration sort the And in you fourth you what

is mean the Or mindful some conservatism there some is be in factors still of? guide? I moving should we

Joaquín Castrillo

transactions. from look, Rico us volume I of mean, strength on sales terms the in surprised saw of No, certainly, Puerto some payments we both coming that

by quarter the As in this of do a have September somewhat see half can we we of said, Fiona, obviously, in we year, benefit because the impacted and certainly second was last that numbers.

in Going are to whole QX, yes, I mean we're we always how balanced approaching year. the

always a we've given year full ot think and I guidance. a quarterly necessarily

that think So been the in of little been we seeing, deceleration that we're considering consideration trends of some we've certainly bit quarter. but taking a it's strong third a the so into

Vasundhara Govil

And just a follow-up. quick

you of caps. MasterCard that on a sort tailwind to expect you a Fed you were lower with how of As to do came us volume are probably that? remind to if you out be And the some aware, the on able pricing much debit top proposal the the interchange of yesterday tack Visa on guys networks? your you goes Could debit to

Joaquín Castrillo

but So Visa out goes haven't said, Rico we the in we that have is what much broken that through debit. we most how -- of see right, volume MasterCard, Puerto

wanted early the acquirers bit the And a Durbin, I pricing So when those of clients, on clients obviously where that benefit were an went movements were sophistication they have. impact there a In the behind But lot went getting. an the of gauge that get through think some it's past, effect. we And we we've of also to certainly kind Durbin. could bundled. to depending and through little would have our much that is how also of certainly this mentioned really

little So I bit it's certainly early, think it's positive. but a

Operator

next James. the And from Raymond question comes John with Davis

John Davis

to question actually quite full once historically still than quarter little grown around and bit be of going quicker to follow up Vasu's growth, kind a for bigger year, make to you XX% singles, Just you've this the healthy the picture adjustments. wanted bit revenue just low all going on a but

you about do higher? Mac, pieces and many are last of it's Is or X normalized I over and whether talk pre-Sinqia hurricanes the puts years, this so COVID. digits? think growth you a What the it Sinqia, takes? So Is business? post feel there's moving like mid-single can about X how been rate the the or

to Just here. what to is understand trying the growth normalized rate

Morgan Schuessler

Yes, Yes. answer to John, happy and try that.

So given, our complexity And as been point, your the you give of don't we've careful. know, long-term very guidance, business. and we to

right? all execution, been surprised with ATH also market consumer. features. we've sort grab rolled economy think and able share I been our pleased out at U.S. of to the we've our keep Movil We've resiliency very additional been of the And customers. here and We've the

exceeded Rico, Outside Puerto have customers their of our expectations.

you look if projections Getnet, they're So at using our their beating Santander, technology. you Libre, at look Mercado

So we well. executed market We've feel company we and we've no but look, we've our like, grown perfect, customers. share, kept is our feel like

forward, And year. call, for year. next as you the anticipate, But for we to next giving could But been you with next not we'll people accomplish guidance what able give been hard things we've when year. we're to have Going it's predict. decelerate this guidance pleased but

John Davis

it's savings? been with closed months can't X are an a process follow-up. kind maybe what it's Sinqia cross-sell on into you've for Okay. guys excited I in of now of these Just update let's then know the more Curious, you thinking -- whether it, process opportunity, just X you now. about the cost a that yet, today, but months done, know And I call but officially haven't we're, integrate conversations. until you

Morgan Schuessler

deal. their about Brazil I a this first, right? has incredibly announced Auditors been Deloitte, I've it's great got -- Sure. reputation. They've company Sao since we're with in public that years, a excited lot mean in for coverage. a of great this Look, XX spent it, strong sell-side is known And they've or a customers. we Paulo Yes. time still reputation

through to how We they a do focused their of how the then their do gate, while we're on to going and continue customers who back, accelerate are really walked help and you well be Out execute segments. we different growth.

look when year But the to the of accretive focus baked going to synergies, without. talk at of are it's deal about sort we which So be we next weren't even when going rationale into growth. on we

payment. we will So first on focus

in Brazil our for going So products a the payments is base ability to across their to us. priority sell be

may Uber already DoorDash is cards delivery Brazil, of XXX,XXX food you that or platform. the know, our which a As is #X using the customer. iFood, company, issued already Alelo

we start already can to that So some market are products have and localized selling. and the ready that available we that are

Additionally, of if well. that presents place customers that our with localize we itself acquiring module or the as products have like their pay can some we to demand

using have, strength we're So the commercial selling incredibly the leadership products about. excited have, they they relationships, team the

right? I have products, And They mean then they're collection have products, a great digital a exporting their great solution. automated onboarding they solution.

on look products So over those time their all one we and or of whether services we're export their going to industry-specific digital different can their see which to it's through of of products, the quickest.

doing that. still We're determine work up to the

be So But to detract LatAm that and you we're in that acquisitions, look our teams a potentially infrastructure sort with growth. be do development going able other there or some our margins priority. time. it to -- done margins share savings, to do cost way agility be made of that our But over very we think of doesn't be that's And share our we've over going acquisitions, to do together. we've to at if but prohibit some we've from going is segment, excited. this We like we'll in our revenue over deliberately held we're We time, synergies. just think think time, our will good not

John Davis

would them Okay. question. continue part, for deploy kind Do large to me, doing continue your the just you that to just M&A, focus into going moving successful been companies, to that you're And their they've to plan of but again last grow capital going ability of They've do thoughts Sinqia to you acquire do that successful a -- another that, to be assume been and think one in Do Brazil? lot Just in by kind any to Brazil? there. on enable that's of I thoughts and integrate business. forward

Morgan Schuessler

Yes.

So we will.

XX time have So relationships They've they job stay intact last done That companies a very entrepreneurs. very years. the companies. pipeline. team the methodology. market. will their over a relationships the spent have a they They They very M&A deep because several have have we have with -- into team, with -- great with they're They acquiring

targets, off. the capability to we didn't continue have given will bring capital in throw focus cash and work them we current on to with past, we and that right, Brazilian that given they So our the

the looking However, focused on very we're region, not Alberta markets. other going to looking Brazil. focus just into is on throughout

focus we'll So on but the across for look we region. sure, to Brazil continue will

Operator

Bank. from the And Nate ] Johnson comes next Deutsche question [ with

Unknown Analyst

the Getnet to results. the Great think with was print. Happy minimums I give a you see bust. going contractual could about color to more you're that little wondering if you

of the you above you Getnet it Is of that? pushing exceeded efforts growth maybe some Is this at has about that expectations? EVERTEC? So from it Is macro? talk drivers that sort can are

more you Getnet? contractual talked I about what of And you broadly, at have to know expectations. of then book business maybe guess has earlier Santander terms sort of similar your what I exceeding portion

more guess of expectations So performance the little and then applies the on Getnet rest book drove a your color above how that to I what business? of

Morgan Schuessler

Yes.

we -- countries for specific We opportunity. we don't real to when didn't it a wait about take we hand of did this and against take this, think in Joaquin, that, wants strategically match So are is if then more and localize things Look, it Mac. that made proud I'll there's come, localized of advantage of the demand. would that is provide of one to how we've when to But we we the to opportunities. we necessarily acquisitions, has we then bought and them technology good he it details. localize actually we've commercial -- it team some sort I'll

ensure fees. when some we to didn't significant build, in the was implementation want contracts, big it a minimums would put necessarily place particularly with to of pay they So

in ensure be that So the we place dependent that and their wholly recover selling put investment thing. of to and product our not minimums we success on could type

the in and was one So contracts we manner, larger that have ones. this built some of

incredibly it. that's both So So XXX,XXX up. They they're quarters what only believe to a they played our been have most multi-quarter well exceeded and in our in both over on just we're blowing very right? top, been through And have recovering of have you're merchants successful. been We up seeing challenge it's of for occurred out this quarter our not good stuff quarter. catch-up, expectations. successful combination they've catching because isn't and this a that We're have But they of the is efforts return multiple this that successful Transbank. the investment

Unknown Analyst

Got then And a little super comment it. color. I another clarification helpful wanted That's on.

in So and that quarter investments higher the in lower going resulting business to be the to Joaquin, OpEx. increased you EBITDA are mentioned fourth margins in

sort So what could of specific little are, investments maybe line see to what what increases you rationale on investments you're the color then are? give for and going those items strategic sort the long-term a of those more OpEx

Joaquín Castrillo

and highlighting professional professional I mainly in mean would I play. specific very lines, services. think case, in pipeline fees, we're this are coming that the kind projects I that into cloud of say,

of as initiatives markets into the fall very we at some are into level, we mainly fourth We at and Latin that Plus of just cetera, be bring Brazil, look timing-wise that ways fourth specific more those are ways a efficient different to continue to have looking doing we entering different quarter. America next our and also will our for fall to the quarter. evaluate will looking some continuously infrastructure, across technology to corporate et

Operator

next question comes from Bob with William Blair. The Napoli

Robert Napoli

another guess on Sinqia. question I

thoughts And this about There's doing and space. you competition? innovation Just opportunities since tech is tech any cloud challenges stack the how and to stack think lot competition. a business the I how think just but relative Sinqia's in the a a to is bank to cloud, of you, Sinqia transition for new that the around compares do tech

Morgan Schuessler

Yes.

job then legacy is, I last job, XX Sinqia the a the maps, was and customers. some competitors, But They good road business And ex like interviewed providing and interviewed good journey. the that sort company. in to employees. got genesis look, acquired, decade. of They're this good built they of good with have incredibly we they done said, assets what move So cloud, Bob, marketplace, product stuff would the we have not you more tell They've service, providing over also their the the right? did is finished of it. of an have interviewed they to a sort technology to They're

And So to just still cloud. like journey. one to still along around still which on been keep. they're going they're most of they're companies going the going platforms, stuff for some a they're one that while, migrating that have some to decommission They're their determining which

the still I on able accomplish. it well. that and to something they're that execute set they're migration But is think we will help that make that But journey. out and sure that focus are along they've they they that make So executing them to

Robert Napoli

in America, seeing color there? just you're Latin And sales activity the what the pipeline, then some maybe on

Joaquín Castrillo

I well. we've is the that organic of the business I this as side and making mean Obviously, Bob, to think time. products the Joaquin. result before, perform over we've continues of said of is the some been very investments a

investments and Santander convert the did investments Chile is that when others results. actually processing just a the certainly pipeline asset giving now a a that's we good performance platform of take look well. to we we then what example think very all to we the acquired as and I driving that how of into participate. reported the are I made originally And type brings mean perfect this

take So we're continuing of that. advantage to certainly

Morgan Schuessler

of and What's also experts our solutions, interesting, and unique then broader good X different So together in. of take about issuing take we continuing these interesting business and markets. sell in the take in of have more, you products, do these guess, put to We're So the solutions, you and set wallet products, things is We're if management opportunities X these our risk acquired countries can find them. solution we as do to different we offer solutions, to assets a pipeline. those become how solutions? that feel of bundle customers of sell commercialize X beginning you and these localized now right? more Bob, our a where we But I becoming we we've in we're you can

Operator

And Stanley. James Faucette comes next Morgan with the Instructions] [Operator question from

James Faucette

whether from of be key you what still we Just sure that that that trying closed. quickly Sinqia. other maps get road the to following Anything Just a can that? in terms share here do make regulatory to like understand perspective get to it issues up is to past, or on still

Morgan Schuessler

thing close we've the got To this working issues, us. was still through approval. get -- shareholder focused the But still the us I was good on right? approval, that but long getting mean, small the we're flows. We're and behind the deal the on issue big top. pull for big shareholder about the was That So feel

James Faucette

in just think inflation rates you're et this really And Puerto besides could And we Got think move probably watching I anticipated? are that aware I from things be that like anything into down little should it. coming next least challenges a calling you around? than you appreciate But the at bit that out a things year faster macro of year, it. grow-over else Rico of perspective cetera. then had when Got about year, next it. from you what Got kind the

Joaquín Castrillo

in Puerto Joaquin. said, other think mean, as think as got, it's the questions of what Rico, though and X how way we of a strength backdrop that of look, we I were I for I even we been in, that sales bank I is expect this stable the that's surprised specific continue to worth past people's funds that in got of said let's accounts. consumer say, volume we're all very transactions, and these James, kind by the some reflected hitting we've

go-forward not we of to there's basis, activity reconstruction of in we in more performance but pinpoint, significant Puerto have, starting kind like certainly economy, that say, can an Rico. will It seems and that's it undertone point the feel Puerto a to where the let's why stable be is hugely the on Rico

terms deliver multiple that and outside And countries execute time in the is it really have services driven we're Puerto clients. effects. and on the given being able for in But obviously, providing more Latin potential pipeline Rico, of tracking that type those to of of we're by America, we

level, I'd our what say that macro always considering. that's high at So a kind of we're

Operator

Susquehanna. And the with question Friedman comes next Jamie from

James Friedman

is the about Let made I digits. September. I September kind Joaquin, about just remarks. a the unpack help you QX when for the the hoping said getting echo to you that think single implications magnitude, down the congratulations. what though, repeat I'm comments in And be? prepared specifically it if you the of math on if could could your you slowdown I do some low would And decel of me was why

Joaquín Castrillo

Yes.

in we year, last the Hurricane had the through. of in that we slowdown And Rico. September and last Puerto was the So hurricane We Payments saw and both Acquiring that came called last September in Merchant second there was in this rollover year. a a call, was X And weeks QX by and we when the year, of impacted actually, out certainly -- half had positive Fiona. of

in we in obviously, number the in Also, America quarter, which go Latin is last the the then have segment. And CPI as the we year. from this we Business big one. rate million have effect, when benefit, was won't look into have given we the which another Solutions, in growth So year, grow-over previous you at Santander, that $X QX,

segment, we're Solutions little slowdown a right? the once low just in quarter of the expected, then a the So bit just obviously, we what And the those which next into are digit, be payments overall what we've trending main given drivers. Business of. coming the is will single So get in off

James Friedman

then, of And in Okay. was that elaborate price. if that the least Joaquin you you're on Mac, how if wondering I kind think could strategically pricing opportunities you could had to of I that. alluded you thinking some What share or magnitude at Merchants. or

Joaquín Castrillo

what QX, looking out that's actually lapping now we called the is quarter. which Jamie, to those we're going Actually, going into a into another going that how driver lot fourth at of is be we're

put been place some tailwind. that of has QX last we year, benefited that those initiatives from So also a and in pricing actually

the the of this impacting we've previously, portfolio. whole said That's initiatives kind sense one do we've all what out. As that something called a in we're time. where pricing It's broader don't we

at case, within We that year, pricing but effect a verticals adjust. different dynamics doing. from are throughout. different those the are, benefited whole is impacting different calling portfolio, always lot types something segments subtle however, where to of to or much always In out looking and going portfolio we're what we lap in the it's this is portfolio of pretty we're or impacted mix overall we're last the an of that And we'll cards profitability that more and go the initiatives the results, and

Operator

the would to closing to conclude does turn call like this the I comments. Mac session. for Schuessler any question-and-answer And

Morgan Schuessler

in everyone Goodbye. we'd forward look And joining Again, seeing to call. for -- the upcoming like everyone tonight thank for to conferences. us you we

Operator

may Thank presentation, Thank concluded. today's you. and disconnect for now has now you lines. The conference you attending your

EVERTEC (EVTC) 26 Oct 232023 Q3 Earnings call transcript