IMXI - Earnings call transcript Q1 2022 | International Money Express, Inc.

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Operator

Greetings, and welcome to International Money Express First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. of President Vice Gallentine, Investor Relations. Mike sir. you, Thank

Mike Gallentine

actual earnings Good like would forward-looking including guidance quarterly expectations. materially today's morning, welcome to statements, and XXXX updated and call. our may to includes differ from I call our results remind that everybody

For the Express, we beliefs risk on therein. forward-looking as International factors refer see our this Money company, today. statements based of and or described as the please on on call SEC additional to information which Intermex filings, assumptions are including All

call, Information rely should predictions and our on be Form to in a reconciliation obligation Investors financial of and The You our certain financial non-GAAP be Chief slides, certain intermexonline.com. at appropriate Officer; XX-K, our to will These the conference Slide forward-looking the required on non-GAAP Nilsen, Financial President, on of statements. our Operating the and Chairman, Joseph annual our Chief we for of discuss future on measures required no for Chief not obtained GAAP section Also including Bob our X today's in press Executive Reg update Securities measures. Revenue Officer Chief Officer. Andras statements such release events. Randy Hunt, call Officer, the are description Chris Presenting Chief website presentation and by to measures Information Aguilar, report forward-looking Bende. Lisy; undertakes can and the today measures. Officer; call as of applicable information Exchange under certain Act Please financial presentation except refer earnings G such company non-GAAP On of included by law. is this as

Bob. call Let over me now turn the to

Bob Lisy

money strength rely the money home through joining and we powerful morning is The of Intermex. world Good value conveniently money locations have for send or by on and our they with our their it methods, in who interest of customers complete a results is of Latin from application to transfer your thank time the one omni-channel first connection areas services. safely in through of demonstration other whether of efficiently. variety our our and versatile retail Intermex, a our know America operating off They an can The they transfers and the across XXXX our of thousands know company. for can of quickly, start quarter Canada. located U.S. unique people to us. mobile We outstanding your you person and suite appreciate built all, is

on see you As Slide to X, quarter-after-quarter, achieve unprecedented growth continues Intermex double-digit year-after-year.

bit by call. We a key measures ups on by in uninterrupted metrics these geopolitical global these will impressive Andras on quarter are pandemics, economic results go into downs and or detail greater growing and the upheaval. later

Slide X. Moving to

We our annual rate in are total capitalizing and digitally America positioned of via in both to increasing perfectly our that growth remittances outperform sector on and business share retail double-digit Latin steadily are network. average to

Guatemala, Mexico, service money Latin the including key comprise of leading Honduras. markets in transfer to XX% top four sent the American Salvador America. El a five are of markets, Latin and We These money

LatAm. With will leader five the La we market in of bit. acquisition, More the a the markets a Nacional in anticipated be receiving completion top Nacional in La on

who pay ones growth the for Slide first during we total XX% completed expenses housing, people home We possible it funds million to valuable service provide impressive market for such live to transactions, America essentials food, the as year-over-year in of more. quarter. is on today. X that States a an the in Intermex and important customers of XX number to transfer them born Caribbean medical includes addressable the part Our Latin loved by United of send in or our the money making evidenced

shown market We the without to continues of large a these important in take Slide fail funds and share each complete and markets, time. XXX% those As transfers has aim XX.X% X, to of achieved quarter Intermex the core share XXXX. first one in four key on our markets in of

Importantly, market-leading locations to important are contributed where in we native our to and achieved brand trust culturally in they customers to provide has that close our those live consumer language. at services have the operating These a their performance. environment resulting building welcoming a all familiar in factors

very at the as our retail and expanding the of industry's Intermex in profitable services and remittance prudent one targeted the that the value is while premier agent One established trust familiar have critical through of conduct customers the time in and We they business to same prefer customers technology side software, investment new retail. our person. so key place reason majority Intermex much. vast The in

negotiated relationships Additionally, many our online not that easily the money do send to of have at necessary retailer. check our be centers paid are in banking cash or may or

multiple remittance sending industry-leading their Regardless same our tied directly quarter or intend approach be customers explore new strong of our many We behaviors accessible there XX% we the in during Intermex not of these customer said, the our digitally. state-of-the-art launched. Slide in and we mobile consumer to to several the retail preferences options of or recently growing for customers the whether our strategy. through see number omni-channel care. growth customers anytime achieved change in dramatically We offering on to option provide. The to omni-channel have money, the much provide enjoys application is soon. That over have seen consistent reflects success that On growth X, changing begun receiving we don't last our preference, the or first send network these years, Intermex of it the be consumer we the behaviors of demand for

our transactions omni-channel competitors, evolve underscore we consumer Slide can offering consumer to them. unlike they is on or the were choose an a to first To as options we valuable shown proposition digitally, most the our completed XX% X, from originated Intermex offer which consumers. full As certain measure either the quarter of attractive during continue which for our important

Intermex relationship component who value is retail chain manages independent with of important course, Of facilitates and our strong the transactions. the agent an

the Just independent we work to size of country. for with thousands across agents of importance you, network the

and customer network the and and XX% for alignment we the with our That busy time to quarter is and the or which enables complete more a larger transactions Intermex for first industry. compared with in The XX less. locations the more are transactions seconds retailers partner support these our speed quarter, in XXXX. more are service. agents capabilities the the our to was the carefully agent quality By core them to add, swiftly first It For right commitment our key fastest best-in-class the quickly. their Simply the wires we put, We the complete. technical more to right values vetted recruited agents provide is they process retailers. transactions at completed differentiator need way

Another shareholders is strong compliance key for adherence all draw our of our protocols. to

We as of deemed the to banking we place next to partners well knowing level, is have transactions national high who underpin of with our that because one regional laundering the reasons, highly and continuously our our rigor those take list prevent given and the respect business volume and We as Our we rests trust detect they long-standing agents relationships other compliance have premier invest value robust fraud banks money unacceptable. growth business have regulatory to easily that the of agents and relationships which banking key created. facilitate. safeguards we in

options we are embrace word importance success. our The we They our the choose They people two to are have rely on of These because carefully we to sets apart our our I've they partner agents. quality them values of on as over attributes customer Just peers. ambassadors other chosen committed retail because service. for mentioned. Intermex. key Intermex created us and the are the from are or respectful as brand a We choose network

Turning lion American back remittance important American Holdings Republic, adding countries be competitive Latin a where expansion leader. key country provides will to Nacional Latin strengthening with Nacional. The where now acquisition Acquiring time in same while La in at operations, and integrated ambitions. position a share Intermex diversity, and our step will geographic LAN represents the Holdings Once business LAN transacted. provider La Nacional significant a Xth Intermex global make our La Dominican leading forward a the of the is into to Intermex

more As a the and all reminder, El Salvador share than Guatemala, sent markets. money from have Dominican the Republic, the region XX% represent aggregate, Mexico, XX% to five key a will Honduras we of the US. In to these collectively

will and Holdings Intermex from Germany. make enter and from we America, Europe, Additionally, customers first acquiring possible XX expect market quarter. Nacional global XX to and countries. in which Africa money is I-Transfer Nacional European acquisition to will our the expanding send Through company more third we and Italy than the We in this to Latin believe also be excellent the La an us Asia for shareholders for LAN reach our the close La to time to opportunity remittance it for Spain, enables

and positive So leader reported growth more around that Intermex. the over to in Put operating we context an it to consistent the for it apart setting will momentum results together are we definitely strong and With morning. Andras achieving board creating value for there's a across shareholders I undisputed our turn all this significant ourselves industry. as provide the

Andras Bende

Bob, good Thanks, morning, and everyone.

during uncheck our quarter continued leader the FinTech results on operating capitalize remittances. advantage and strong consistently as in first an competitive of record fully as innovator and Our we

growth including for up growth the agent net Slide net compared on period prior in driven overall shown GAAP for the increased solid transactions. growth operating income all by the was growth, On nearly adjusted As million, with key year. basis, income a X, $XX.X year-over-year. quarter XX% our year-over-year up of were customer metrics an XX% strong and revenues XX%, in

the nice people, bank of top and Our expense quarter, we line. on the effective angles price from products the efficient job a remain strong credit better during but driver growth, investments focused management did particularly managing fees salaries, of being and We on much positive economically down a was line expense pace also use support. and many efficient key in

period committed digital high in also new I in digital to the we're during want initiated our our complete was transfers of money said strong industry. passes our emphasize that that more getting rollout period clarity growth of facilitating same of by customer however seamlessly important We're transactions the originated helped very component our three-month increasingly an in unit a transactions each digital Importantly, economics, driving great guarantee is on On to from growth with Slide remittance year, last money we app. can expansion experience increased XXX% transactions drive digitally suite time to transfers, That and as customers services. way. want and contributor. mobile digitally the XX, a omnichannel

retail We've and adding resist digital We're network. to agents into communities be will temptation the other the and scale of approach out spend in rates field important sales across expensive. the line new west top than efforts remember least Quality, down we support and do price territories preference markets. we drivers. noting billion in network the agency were of digital growth worth to also up and personnel customers. more line the on we're for Drilling to significantly to XX% of ambitions in rolling not to dependability more the agent continuing choose on outpace our prudently It's We adding. locations the seen transactions our country more focused XX, focus $X Intermex acquisition. the accommodate during customer principal for XX countries customers that from than these compete instead and that software market Our these to drove build observed efficiency, underlying totaling on an the the double-digit on increasing our growth and late productivity to indication contributions an valuable in in Slide out overspend Slide choice direct the customer and consistently XX% emerging the being omnichannel quarter On over added the It's in with as are our with year across states new sent quarter. US. important in been last

quarter Aside to nice $XX and in are expansion consistently from over year the comparatives. with EBITDA margins margin impact, A XX% XX, XX%. markets. increased the up growing to quarter peak XX% On adjusted at XX% of prior Slide steady over and million XX%-plus every almost pandemic emerging first we sometimes

XX. with of Slide week and the $XXX in any the revolver on Turning day that efficient fluctuates now be underscore any you always cash to of to strong the is look We on it based an sheet or an generator balance cash. balance Intermex $XXX the in ended sheet at We quarter shape. great capacity cash the at continues way million and operator undrawn the of But million. balance end. day quarter

our of our in preferred which earnings have at allocation, growth, so and always cash been Looking use we will to business and capital doing already do reinvest is accelerate that. reflect to continue the to

inorganic close third this consider discussed opportunities the plan La positive have return. hand. rate on cash to And growth also with We we of of a as close plan quarter to earlier, year we in risk-adjusted and Nacional that

door the America As terms business be us use We for this on is position an will the deal, cash at for Europe. as so share open cash well we we will the Latin and that excellent impact for to haven't our strengthen in what as disclosed the point, grow believe market-leading this of in now. won't though

very on for this positive investment shareholders. We expect our return a

As that in makes there our common that these good to our we value sense. for is other stock uses levels believe repurchase continue at of and cash, program

have now in deal the medium-term buyback you versus pace the SPA of to would previous what seen activity and With expect clarity quarters. needs, under accelerate we on cash our

inception approximately During weighted company $XX.XX. for stock of price its repurchased company at common XXX,XXX our a in the average XXX,XXX a total approximately million. $X.X the quarter, the shares first year, of has XQ repurchased of last shares From

exceptional year As our adjusted the our with achieved. in on release, noted upward operating press we quarter efficiencies of have based results combined the we've full the first strength guidance

later that as continue up, we revenue line that's the on a benefits forecast everything moves unchanged, of to reap DNA below efficiency. our focused remains company While

creating range. income, net we cash CapEx-light expect we revenue for and the in As to the adjusted on of to in solid promise operator of generation great value in it. range. take reiterate, $XX to $XXX.X turn shareholders, million $XX.X business XX, $XX the in sustainable million market shown for the Overall, growth But $XX.X million significant be for $XXX record consistent our value appreciate income to for questions. excellent on $XXX EBITDA expect to revenue million is slide still expect those adjusted who in particularly to of million, to net million in million and growth double-digit and an $XXX unbroken million of and Intermex me With position let with advantage by differentiated unique our and confident to We're along earnings, model. build opportunities the to delivering model. the on omnichannel that, of back We're call the the

Operator

we question-and-answer you, at first Thank ahead. time, be Instructions] from conducting Securities. [Operator gentlemen, sir. is Ladies JMP Scharf of a Please, session. this David go and Our will question

David Scharf

price the We MoneyGram have a don't everyone. if or but share take obviously lot Great. which about there's Thank ought kind at of seeing a how out Union, gains at of movements that's anything market we seeing Max of all-digital But I a strong my back competitively. what taking [ph], big or talk a behind a that many on maybe weakness? either players, of step as Good speed these this them the you're bit been, and addressed as Remitly Bob, morning, broadly you entrants you're primary like a the to lately? about; Sigue speaking, some Ria. us have really -- you. Wise. agents like you checkout A, wonder kind occurring the tend ago, Transfer And you're for can Western questions. often in, global or little and months you may a counter, located Thanks of much, to and whether strength Investor you few the Day be the have if compete you far Can with at up just aware companies can what competitors, to the of terminal bring hear given

Bob Lisy

has how I next quarter, grow. then think, there last investment the in this first year-over-year about being lot added all, with, quarter, start I more least strongly misconception retail to or of would There's market out quarter, a at is in dollars community Well, retail dollars continues digital. the absolute of a that a

first who other market. of than thrown a towel, in marketplace compete of the been retail because has by misled have they've able us, vibrant there's players, retail. So, to continued haven't they to with the The some necessarily all, contract, public been

So to strong, a ourselves going It's they've do the sort part in a of market be and big we of channeled channeled their the want the be retail. great. omnichannel. to efforts on too. We emphasis investment attention That's But community and do there's why That's consider still strong of to We our business. digital. digital.

don't of happening this or talk And retail absolute melting It's Latin growing. ice is market when so, dollars growth bigger all, terms in particularly year-over-year, first in than in we as about America. digital, the contracting. at bigger of absolute think cube It's about

Now, other you've contributing they're that big slower with we market. are although, in growing of market. they you the boxes, don't than because of directly share the do, some more they some the seen the numbers them, and public see to compete from companies They're back still

service relationships and transactions So still great with retailer big factor. we've change. code. process every what is a a code we've of value-added technology addition the best is best that then, four What not provider been always customer orchestrates get the retail, faster line done. zip job that we've at done seconds, a to And a is, done has zip you always carefully through the answers retail, by we've in There's when the banking

on -- by provider, a and what services too doesn't heavily. we us Competition very guys living have go. growing we much and flurry market need overall, will a still in that the and our cannot where have retail small double-digit -- come the companies will out growing play people guys market, we're would to in a because consumers it some Competition mission, stronger are are competition small in some struggled. that stay that targeted to influenced growth, does. be will which strong matter than Competition and So whereas discount pretty the that that not we're that are bubble, much key value-added our probably to is focused well. to is is but continues It's strongly. the There of our public well, the still market, think, doing there's whereas I with very well. market the say, up

any growth better public But companies. we're in might of I at certainly, terms it's of them think, see other misled from than retail, doing in market be still. market percentage numbers share. Don't you by the of a and strong

David Scharf

No, years. you update of, provide of terms the maybe, payroll number of a Can a It couple on the card of you of sort on card ago been that I card that least traction, that helpful. it. rollout. said in just for the GPR a know were executing you front. months Got hands senders works sounded gaining role employers just has in switching like as for pay what the product in on an expectations a that to can sort gears it’s And some follow-up, the -- getting of really, on are at your a product? your

Bob Lisy

people -- of We taking town that writing for checks, options, retail. faced got also comment Yes. And a the and the I with in take one only Randy Randy of think mean even will times themselves, I'll may maybe them to Visa that sometimes the more now card for Nilsen. their great companies But -- be workers utility we on the product. workers. forward card, lot debit it's paying at both who continue these a a it, cumbersome, with move to -- employer it's and are because checks, cash we're cash, have into very let

even consumer, up our now card go putting may these a have to so employers setting, kinds still, who we're we're into where with card, they're that choose still the though take sure retail might neobanks, a that still choice. also that to of So our retail, making retailers

retail, lot retailers a I a people to it's XX,XXX those think lot and mean, go retailers, go not XXX,XXX them of of to. -- of people. well. There's to or that to not going employ we there's So employers but Most mostly are employers

like it's that and of did employers. we a a So there, matter numbers building at people out just having network game and retail it's of

if anything there's add So, Randy, you'd that? I don't to know

Randy Nilsen

network Bob of We're more in Sure. exactly I employers previous out of just other to past stages of in quarter to our those added building Fourth is quarter. the second adding network last the highest month of add any we the our card their employers would was than offer year employees. that, infrastructure. who early quarter right. This terms employers to

vehicle, of build we of card that it in we out it the employees as our -- more more puts the employers offer for they cards purchases the employees of and use So their hands number hands their course, revenue. the use to as as card payroll generating start

learning we're leaders. lot. made some a with great industry So contacts We've

punch employees. is They to payroll very for of hearing Our also the being their a about transfer not less we money like than that what checks, reputation paper very Employers that's expensive but efficient more them more used one-two the convenience vehicle as is with and they've -- only offering well-received. are bring us.

stores the it's our to now being anticipation retailers going important to card, And secondly soon. tested that corporate out of General So really the GPR understand at card here the Purpose rolling that our really, well. is it's Reloadable with

David Scharf

Great. Thank you very much guys.

Randy Nilsen

Thanks. Yeah.

Operator

go is Mark Thank ahead. Please Palmer you. from question The of BTIG. next

Mark Palmer

pandemic. But morning, congratulations for continue than COVID the larger outbreak, might had be sizes first seen principal we And what after thought Yes, on see were great it and months was a to transactions matter that quarter. principal we became above In quarters normalize over that the some there to normal. good sizes that prior apparent time. that on and the

the get ground your the it of Just this, how may on it on, on be updated your and what driving wanted with to thoughts relates customers? to sustainability going what's

Bob Lisy

would past we amounts past. would have seeing get of years look up, what and not at again as come stay have we down. it amount. the months, principal yet back that we the They principal have now in this, gone normal level. a But In at higher been have than seen even usually potentially start We're into from that new as continued to amounts when there they they plateaued Yeah.

we're done down. we So in them some They terms perspective, to necessarily they We've expecting conservative back work do come of from think that will. I do. don't don't projections if a know but they what

think a everything I when our for whomever at of workers If States the costing they high or is more. are is United really economics in for just they there a overall today look also and you more the more are money the because inflationary for So work probably time, work system. right? people work if making and are they landscape,

had I of mostly there, at was now this that. essential sustain look as new Mexico economy not big quickly. it there again for where places allowed normal. But of workforce, was we in terms the workers it probably not as stability a kind a adjust think part thought they our itself, of principal. like stay the come were it pullback Guatemala as back expecting doesn't of continues that we've more and we're to if But we how initially that a to And and hardship we because lot in

the from based at the it's percentage more that them amount we're we're where principal seeing. principal provider. you for several will we've principal is like because periods be what reasons happens sustain comfortable Now a now that always the not But There's of we place now amount it points look with that a to meaning last lap lap year, And where it, higher think. if we're higher ultimately we today principal versus amount had up last beginning even again high to what when been a it beginning be will the lot on we're market year. amounts, pretty getting I

have from where of them pricing-wise, those back are them points But where few are budgeting also a security-wise, expect would of in today. are a returning were we expect conservative the down some we they planned possibility perspective, -- to percentage perspective but stability we a have Some of for them from pre-pandemic.

Mark Palmer

We performance. you strong increase Thank just saw, conservatism you the course, you. of more are based reiteration the range terms the on everything line, At and one reiterated in to are time feeling be your relative a realizing. you reflecting And factors that macroeconomic you're efficiencies feeling company's guidance seems of on whatnot? consequence of for end adjusted the And very simply question. the as about the the range, of top better quarter? same operating Was to EBITDA in that the the top

Andras Bende

would Yeah. first. the say No I answer -- I'll second question

and we I managed is feel will think that on I'd the efficiency a another our hiring we agency Though we under lot with within after we've we've business. control. the more And the towards about say maybe Those how OpEx really edged did good a again. did how end it count our revenue. think we still performance. on the quarter costs, based in processing with I at are range the top look belt, of overall we we the quarter's But little closer can first commissions, the on. mean, how

Bob Lisy

little growth. can piece that your of think that big Mark our of to I first And with bit Yeah. question right that the a because tie certain is revenue that part is back principal that's not a conservatism, being part

always in conservative have bit an the we businesses marketplace want contribute business, to over We've really but like to our continue because line this little to heavily a right to like as do. online particularly card think we've our we that that less business. been the and adding in folks investment the of been we here a thing any be that's efficiencies. way in continue. efficient been of that indicative new it's can would investing our at business, areas the point, certain I We're don't those bottom very about So think

invest it So leverage to That's what able towards add one But of point up business to the in I goes we in net after where revenue a long revisit just and percentage XX% and and invest and base bottom the line. right the income continue a stand now is additional we've do. really stand. Andras' revenue been we growth think because of piece to able quarter and a percentage that to growth But we'll this drive on see But quarter, enough we people now. move and be still EBITDA that there. now to right way being -- business our to big after chose

Mark Palmer

Very good. Thank you.

Operator

Michael [Operator Our Thank from Grondahl next is question very go Instructions] Northland ahead. Please much. you of Securities.

Michael Grondahl

morning. Good guys. Hey,

little digging question bit just a is gas deeper prices. on maybe First inflation

little You talked average anything March did bit prior about maybe maybe see you send, but months? the a versus April softer specifically

Bob Lisy

other when been the the people strengthened, and talk but the about we place sale. choppiness. when April hold we to stabilize right, There's in of now, tried little We thing there the most related bank Mexico, -- talk of bit. the becomes in weak a Fed peso about peso choppiness when put happens, because where quarter. slowdown. the been think the by that a felt think was a it's the we there's of waiting, -- on that bit. main some some we peso in There's talk was peso first saw happened, has kind People the -- by little Mexico, will the I can't Well, back And when about, they growth, in some to when policies people

a for expect at inflation points different that's quarter. that's has anything It's inflation because to related gradually little yet, we in going to, we're wouldn't a the not been been didn't of seeing saw bit more building. right? happening abruptly we been But year than choppiness something -- now, on So, I

in that think we're I of so life all so in terms aspects today, seeing economically. of And

is that So, really that the stabilizing that only set in impact that Mexico the draw can really policy we by the -- the was Fed peso. monetary with

Michael Grondahl

how do do the agent Got kind you it. or or thinking XXXX, could outlook I you but little growth on feel just comment bit the something growth, kind going know forward? And And that think your of a of secondly, agent accelerated XX% about year XX% two. at last your growth am you disclose don't over then of I can of growth agent correct growth in I kind in you has your agents, number

Bob Lisy

Well XX%. did remember, earlier, the we that we the about release was in earnings talked what release

Our agents XX% year-over-year. up are

it It So, -- more first agents we leave agents adding that, So X,XXX has are about it now means X,XXX, right? we're in pace mean, doesn't We've we the year at a we if we're more about had states. comment The have in we takes in than agents though XX% year. quarter lot invested adding Western agents bit and Randy that more last on which particularly agents quarter. Puts the did have accelerated. added, I'll little a and that XX% that, XX%. adding last we're have

know adding are out that's you that ours of against do and salespeople with now able the as a there freelancers mission resources been more executing have We be retailers. to And been it. and to we've

So, adding we this as year. more on expect to be will retailers throughout goes time

Randy Nilsen

Mike, Yeah. Randy. it's

two adding that hiring you're seen for last group But And of were the we folks of we are ago stride. just two history. that or quarter year. than started And year ramping out helping that in fourth a that their new mentioned XX% new folks getting of we agent sure. add quarters, recall quarter team will in more them in locations -- this throughout that we they have about we seen continue activating locations. terms activations previously us really anticipate more We've exactly past our right some up You'll

Michael Grondahl

you acquisition, Nacional, the but guys, know last paying trailing what Got for revenues they did XXXX disclosing La price you're what it, the year? it. revenues not revenues? just I And or maybe disclose were you're lastly can

Andras Bende

in is it's at disclosing us point. is help to Yeah. market share going Dominican The this that only which disclosing the we're that not achieve thing Mike, the XX-plus. we're Republic,

not So, time. this at

Bob Lisy

And big balance sitting for being in. one keep that's the us the We opportunity be cash in not shares is to purchase, Nacional country going in to this productive a of that's mind, that. in a have we'll used be again sheet, used a that cash really going is on It's La fifth think to leading use. today

you Republic leaving all US have El the that better. or share are those those a countries. of America Salvador to to and aggregate the in now Latin be Guatemala, money So Honduras XX% five And goes Mexico XX will Dominican

up Europe a the us good that, they Well it's productive. a us. and locations online there's locations, but European And gives highly mean nature productive opportunity been a which the Italy be the in banking I countries. it agents, of Germany, branch strong throughout a in to to. locations Europe and But it once opens because that Northeast. strong they're because highly in think have lynchpins other Northeast, I we retail own are in us. they European us it license, lot a think the third for of think party of I thing sending really consumer corridors retail an a corridor you the unless Union. have lot their the in think really then lastly, the also Secondly, Today for concentration bigger that European opportunity we really And status ways which of that not opportunity of versus are stability bigger for of may in in even going potential. And personally has Spain, the they're sends have there's portable the agent,

opportunity retail. up from I-Transfer corridor, that it at we the even European do us So even business business, could more perspective an online that open an give than to with may

add have of leveraging of that opportunity way over bit a time of to the that our that other we creating in our a a really the business has with our little So, It's things business we in we brings. sort the done has rough. it of shareholders. efficiencies tremendous lot we the of It's for things sort think there's in got a business have think diamond the valuable value

Michael Grondahl

Thank strategic. very you. Sounds

Bob Lisy

You’re welcome.

Operator

question is from you very next KeyBanc The much. Thank go Alex of Please Markets. Capital Markgraff ahead.

Alex Markgraff

think speak a investors. If of resiliency the a is Nice you, at remittance this data, industry guys. you the and a the mind commentary thanks speak suggests bit it morning. of Macro with you look unique financial about certainly for gauge And of I your on just lot just related relatively the services. you a customer there. kind you're macro spoke bit, health have base. watching defensive that, to data this curious what a just to subsector We period? any Bob of Can you all appreciate but uncertainty thoughts for Hey, top to then, to market of point of and perspective recessionary from

Bob Lisy

people to a all If the business XXXX. a into something -- that I to of It Intermex held have picking lot things. the are that and down like going few XXXX, pretty seen there's is it oranges, big in that. generally. They throughout and that a people strong. be of other was continue in doing that all grow downturns relatively recession, other the able kind and less been It recession downturns but to of during still the we've strawberries radishes, in to the Remittances, that crops Remember, service eat businesses are and one of. coming continue we've also and came work didn't essential Well, things That's in had a be biggest business people of there's recession. we California. middle resilient not years, a began Residual of the own. of to its

we the industry component – the and starts. One look consider things is because of the one stable construction our fact that housing agricultural at, always we in of very

to a during seeing continue on little it at little and on requires bit diligence to strategy downturns. not this starts a that to our weaker little part get grow weaker, that we'll point. our We're the see when a bit So get part different the a industry more

– by And As also isn't their I'm there's housing strong you our factors. at I We well work. have no of factors happening. know, macro sure, We'll drive ultimate are sit are field are more going things today. compete. a kind with We've doing to helping, money really way what been market we win think Street, people a to look market three And know, gets we'll in do that this Wall I of think need on that lot with we'll consumers we macro shoot I people renovations the getting Like, the done. and that, wires find consumers can't like to do. in proven. it staying pretty booing we a for that's our homes what six what's those home but XX-XX. the We'll out tough, do to you get who we've And tougher. matter if

that always the essentially market in revenue, yet XXXX $XX dramatically great XXXX, billion growth really Our revenue business to now flat, period. during was times. was has gone from over a business business $X.X million our wasn't that it in until during and grew From

a create method, things. with a not way every every staying and failure want own we our strategic stay approach for those is at don't and of retail, in it value-added that. of things day. It's every great what combining by market is wind But sort to about tune to and the do by affected and sort So our looking at reason blows proposition resolute, to which having that those being own

faster opportunity greater the So by community, for particularly think retail dollars. take particularly of that and to investment some billions the whereas we got a sense. them, grows to They and how marketplace us. understanding it's analyst just a digital small a grows that retail you dollars the the much percentage. encourage there's than being don't We community of that a sent at number, of I absolute adds at and so today more going you look dollars more does we in a number lack and by of look think bigger that lot grow certain adds understand and be an

perspective. really every still slows And that and that against, start a Western that and feel states franchise, opportunity that very the most of down we're downturns, get we strong very these the We So the executing if have in are the that weaker to we also where but us states aren't really the one any downturn market in happens strongly. as going we're from exists leader time the for is even eastern great even weaker. guys anything it and see some to retail our strong we of in of offset like vibrant things

guys talking about get public who make performed. are weak payroll that tough not guys, being weaker I'm and different big Not things I things. talking about to about the companies, I'm their two haven't gets performing when are struggled So really tougher. when it small talk

by go the them of some wayside. And

perform. are them not of able Some to

slows good So we market market, matter, if it's rather have We'd a if it's and do feel we the our about perform down. ability no much even or well market, but market downturn. strong our will chances if strong to that a a

Alex Markgraff

kind just Are of maybe appreciate two go-to-market any inbound just thorough here, maybe you of curious, those those you you're outbound for Africa, Maybe there. markets in maybe behavior success other regions each quick are do feel out place think would a and or on question describe I in provide Canada? Great, the to me. and newer years guys there you three kind customer of Asia put how Can regions? of like fully pieces in than thoughts being adding some more last I just those on the built update to agent that locations?

Randy Nilsen

Asia, Randy. or very haven't Filipino well any This locations the retail out referring We're we the partnering The the that us built you're infancy and are online or market. with Sure. – just those really markets Sure. Africa is over really Nigeria are in the for Vietnamese stages to this impacted has industry to The the challenges some offerings way to sending the consumers Bank in of Nigeria at has Central made time. we've Africa, – changes years. seen money really last now. point some some the X.X entire that seen around

through through will we're to Africa the for make opportunity. But Asia working the working license opportunity We're time being, continues that the through online that. working we're in a more and be So us competitive. Nigeria

Alex Markgraff

Great. Thank you.

Operator

you Tim and go from Credit of Please is much. Ladies our Suisse. question Thank ahead. gentlemen, Chiodo last very

Tim Chiodo

and you morning. good Great. Thank

growth. addressed to have One down the been emerging to I double quite but which well, is want to XX, of market's I slide contribution cover just topics, wanted on the

on in the emerging you've other same core in there? to some record much of runway relative of top everyone, again, those is And how could in you're for markets. mentioned, on share and you markets some ahead done just and recap markets QX, the maybe your So prospect Dominican gave growth transactions in some core context just also ahead? bright of able But tough around the that's And really comp. if the demonstrate, the you execute markets Republic track the a overall to just there prospects that a just strong to for

Bob Lisy

they to So kind attain our your understand I other question the same in being, market if have to want sure, core? I we opportunities just what were market question. make the that The are of share

Tim Chiodo

the it. aggregate Maybe if mean, I would which your the you surely Sure. part that's just about relative those in core, markets of runway? be in to a of share could talk what is suggest

Bob Lisy

they're that we In Colombia, America. sent about getting let's first business Latin talk share XX% when business. I talk about; of of Republic. well, talked America Honduras biggest. a Argentina, Dominican by that, and not single next driven that at be we're XX%, But the countries digits. win about that, back of to working. close We mind added about today the Colombia, market Colombia keep XX% all, we money would small to relatively if Mexico Salvador And mean, is you the all Yeah. Colombia like mix to going in initiatives high the some in to why can Bolivia. have you're of then sending tiny you're El to fragment we talk That's Guatemala of money but the which Latin the by of can XX% We okay? lots probably wires Bolivia, countries those

lot three work of Ecuador, are but to that there's coming our certain countries aren't you you'll that back close to lot really XXX%. money you home. There have probably to the Nicaragua, see people there's Peru, pretty countries get a other of four So to focus. from or send After a that's where going U.S. and

no to our the one another, if wire left market time because business. we to drive resources the place $X that's in We haven't best was best and that as country small just out really So, could Today we we're like application plus very to $X get a out. billion sends to a place could us is it the spend the did wire in of a spend from of margin as but lot for we low-end because doing markets. at guys it There's we a There's way this it strategically. for Mexico. two Mexico. left no And the anything a the go world big some of hefty not really, still get $XX

-- us driving So we'll see Mexico. you'll

a and markets We You'll you've like -- be those still it's But see in that us really good but going right? like by store. can putting about will a to be core a a are our It's countries. a It add-on. make Ecuador the and driving going change nice nice warning emerging kind in store really countries driven got not front it welcoming business of little look lot Peru more those Guatemala. are to

other opportunity all they those areas and about as countries Canada U.S. grow are also that, Europe like predominantly possibly aggregate aggregate in and for you that when the America card India Philippines the places from Asia when continent from aggregate start thinking incremental area opportunities Now, you of and you Africa to in period countries online you in Latin and in markets. our the instance, with the the along

in much focused Europe. business get to look that that around Now we as you our opportunities Nacional, and arms have I-Transfer some other we're on La we'll very interesting

out X% size be share there that big valuable XX XX% doable the a per which of but I also end the of to Mexico west markets. we the growing be could still in the And we opportunity when highly going up to at which that's will many partly that more then market's think some more. and we though those of really a Guatemala that, or Mexico of or we are not to XX in Mexico projecting in the picked if Mexico, a because know more we we share of because But X% profitability, that's saying with states that's Ecuador taking look probably, up growing if a I'm a to a profitable that. clear Mexico share than of to at have because share growth, states $X anything billion more possibilities even rate Guatemala. were online guiding fuel the the market that, market have even in the or are in lot want than a projected close our to Mexico faster of share not a terms we U.S. in I'm we markets. I'm that So but share XX there's of Even love will be more of they're is probably big those lot a even but the remains. market.

Africa Guatemala of probably the U.S. bigger the All is from than much U.S. not from is

Now bigger corridors of again, up we and and corridors the open then becomes The as becomes Africa Europe, India. particularly, as bigger. we the the continent said up Philippines continent open Canada from Asian I from

to and go opposite U.S. the right? What be Europe. both, number a opportunity hey, So we're looking and stuck is at it are We more know business markets. particularly things, Europe to online. from the way, of this in is when outside pushing the that that in when if at think we'll tremendous areas we're I online in that likely we in the They're the those saying, continue retail of consumers prefer own to guys we that saying going we're into online. about are to look kind Europe pleasing particular that to between difference believes in market the all that And Europe but there's in the the

we the want have cases. consumer omnichannel people's Europe needs, rather the doing stock we'll the consumers' into consumer the with in the some that that's U.S., only we to business. maybe mesh be we online take we to and And what our serve product in choice. build as continue So I-Transfer to of not the We beauty force Canada that the but which as really is out give in business than and

Tim Chiodo

context Thank on and for that taken all the that sizing. points Excellent. relative you

Bob Lisy

Tim. you, Thank

Operator

closing and hand that question-and-answer Mr. I And our Bob Lisy, conference Ladies much. would session. to gentlemen, the back to the like Thank concludes for you very comments.

Bob Lisy

you, to a interest company joining appreciate Thank speak all in again We the for you us great the very and Have great support. soon. for your your all and day. And questions. we'll

Operator

very conference. gentlemen, then you today's Ladies that and Thank sir. much concludes

participation. you You lines disconnect Thank may your your at for time. this

International Money Express (IMXI) 7 May 222022 Q1 Earnings call transcript