Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to International Money Express Incorporated First Quarter 2023 Earnings Conference Call.

During the presentation all participants will be in listen-only mode. [Operator Instructions].

As a reminder today’s conference is being recorded.

I would now like to turn the conference over to Mike Gallentine, VP of Investor Relations. ahead. go Please

Mike Gallentine

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

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

You should forward-looking predictions presentation refer X not rely forward-looking certain statements our statements. on to of as our for of of Please future description a events. Slide

we by Act for such the release company except included and On by Exchange as discuss no Regulation Securities presentation financial and financial required press non-GAAP call, in law. our certain Information measures. G the report to The Lisy; slide, non-GAAP annual undertakes Investors under required section to can update intermexonline.com. is the Officer, measures and information, applicable such conference obligation this Chairman, reconciliation in on Chief is non-GAAP measures. obtained call Bende. our Financial Bob be Executive certain our website today's appropriate including GAAP Presenting President, the at of financial and our These measures Chief Form XX-K, on Andras Officer of earnings

Chief President, Also on Theodoro, the America; Officer. Randy Latin Operating Aguilar, Chief call Hunt, Nilsen, Officer; Joseph Chris today Marcelo Digital are Officer; Revenue and Chief

now me Let the to call turn over Bob.

Bob Lisy

for Good joining and morning, us. everyone, thank you

healthy EBITDA digits Slide Intermex always, again. another record the We sustained strong On had we quarter X, in of upon appreciate and company's once in Intermex. revenue As building track grew double interest your growth.

in superior that are fundamentals quarter right drive direction. key the performance quarter operating the Additionally, our after trending

on our will Bende are question, remarks. Without strong, to of year expectations. core prepared review greater meet Andras portion and full CFO, business the we is track our during our in his detail numbers Our

excel omnichannel well future. remittance positioned company, into public Intermex to foreseeable is company's As fastest-growing a the

As Latin the the unique we an of built business number Because unparalleled in from proprietary deliver with proposition to provides value-added productive thousands value-added partner have American by of we home. to the to Powered our American that Intermex Latin industry. consumers know, is community U.S. retail state-of-the-art value our agents to technology, consumers increasing the money you corridor of model, service a differentiated our us in send and turn highly nationwide. who

elements customer-focused and drives technology shareholders. company solid Our The business creates of well the business assessing the and difficult business growth in of the rock is closed, significant that the U.S. exists omnichannel underway, to now La value for acquisition our superior foundation sustained into the for uncommon upon by process built Land's well Europe. been integration that is replicate. we're our of the opportunity all our powered is has With Nacional

La Dominican its for for business primarily to and While La an opportunity geographical complement we acquired Nacional Intermex. i-transfer European Republic, brand the presents growth Nacional's attractive superior the

over. times and currently revenues many The we i-transfer to see opportunity and is grow profitable, an income division

our advantage can few sense, the when we makes and an Across present landscape perfect omnichannel more likely thoughtfully Europe, selectively no us channel For and/or in significant most a in business a business banked be opportunity Europe. execute where the opportunity our base digital is the target minimal focus that digital near-term today. is to growth, digital U.S. on with us likely i-transfer The represents Europe. retail is strategy. providers have for larger digital and risk the The in senders strong of consumer of demonstrating digital retail it to This players for and conflict. will

Ulster remittance Italy growth in Currently, opportunity. about Intermex's with a and outbound Germany, strategy excited in ahead. combination. a We're current tremendous the company-owned presence powerful location Spain, representing creates capital i-transfer’s X and operates We i-transfer think

the components investment we that a of are efficient will La Nacional number become driving there stated have over previously, time, margins. As higher of much more

opportunity the be integration full-scale and maximizing great up retail Growth upside U.S. will and made is they underway, Europe, profitable will have rightsizing but and La exist, business. careful to about ramping potential La opportunities driven progress in Nacional which Simultaneously we rightsizing U.S.-based more Nacional's seizing is in network for the efficiencies the by The margins. growth. of the

to operating be U.S. focus disciplined our By our waste will operations. wherever and instituting I also eliminating rigor efficiency mean margins capturing that, synergies the are We possible. enhancing and by

XXX actively footprint by organization U.S. some with Shortly sales also some the planned. to match footprint. rightsized reductions agents been under service reduced reduced Nacional's we retail after La While unprofitable area the has additional our management closing,

Our started. or getting asset place, for we're XXXX late and formalized rate and we great Intermex, be be run La a XX% XXXX. restructuring just will early EBITDA is at in to to X% Nacional is of proving a margin by plan The

including Latin just money of These of receiving U.S. the sense when to the top American On Nacional, the countries to prompts tracking rethink in Adding in countries Latin five the Republic La share versus four key our substantial equation. our the and America. was discuss these estimate Nacional Nacional. and expand market Caribbean. which share in presence Republic we parked. in Dominican XX% of adding from Instead for Slide at Dominican market the the X, amount XXXX spent that how America, now the us the us to countries We America largest the to Latin share five market over the Latin to La makes La U.S. changes XX% is countries,

position the market. that one our of providers It in leading as further remittance solidifies

top countries, you XXXX. steadily the Additionally, almost at Slide Intermex look our see represent the XX% region, money five, market the to has showing of grown eight you that U.S. if which XX% from share to the transferred for

incremental and by The from in proposition in transactions majority our same-store agents. for three. a consumers two new our balance important that value continues codes locations, Our one, growth footprint in is retailer with consumers it years priority percentages partners. to and the but transaction spending a ZIP grow retailer, year differentiated we expanding larger with recruit our will agent our of provides new coming by produced When both be most same the agent for

continued pipeline of to quality to Our important even new critical store performance, agents but time. is growth more over new same-store

the job grow that added new in than unfilled market service an the and a the opportunity Western a preferred become have superior growth Intermex's of the accelerate agent investment locations. on prove provider West, we dozen store to The where the have in growth, the whose region strategically over our of regional are add sales as retailer, our share time. Based more for Especially states. within confident consumer and both remittances business will in for us. the we the greatest the To excellent our is is return we XXXX will our significant, retail in building is for high-performance potential terms executives,

In quarter summary, for been has Intermex. strong another it

they significant best-in-class of We're top and continues in instilled of the rightsized to provided at a level. and business opportunity. with about retail these the approach and core has Europe U.S. the potential bottom Our perform the market. La Intermex as business are high contributions business i-transfer Nacional's line business growth the units excited two The addition to

our into numbers the over quarter will drill Andras? the and turn on operating I'll down Andras, that, who to first perspective call offer With performance.

Andras Bende

opposed in Thanks, the innovative a thoughtful Intermex to our partnerships quarter, efficiency, in Bob. also growth. advantage in marketplace people, drive for expanding investments a The and lines strong the make rapidly of executing cost. differentiated the technologies highly omnichannel right double-digit and growth to had the any the company's focus profitability new at digital ecosystem new on We're and strategy retail growing to productive with thanks differentiating and we our right geographies. intelligent business agents in focus laser growing continue only competitive management best-in-class our that another on offering business. engaging efficient scalable profitable and We're products, of markets as

number La XX% than by a unique underlying first during driven a six, On $X.X the of strength with ago. remittance year of transactions, customers active XX.X along Slide our quarter the has generated customers XX% These of up million Nacional addition million. more the record to business, the

be consolidated and did within La our year transactions Nacional of growth the XX% U.S.-based the customer and in we expectations X, increase of Spain, The April following digitally the international didn't transaction, of or strong overall continues. line was our of received of sent our first transaction ago. app growth majority Nacional the a of not originated it final core digitally, the On reflect XX% with entities as from mobile transaction either the numbers business. contribution in up The from a Slide which acceptance XX. business close entities X% X, the double-digit received in will Bank guidance. of a our almost but until quarter, previous impact approval March La QX, on for international our These

comments, and and about our us. date Bob's presents material for capital, we're the achieved in what us use to we we've ability excited to to on to U.S. our the opportunities ahead capitalize an and think La excellent of business portfolio adding is Adding We're both to Nacional what in lies Europe. confident

in strategy enhancing business Europe. for in is to the the that about and in we're excited capital under growth profitability management, our U.S. Now i-transfer entirely providing fuel

driven billion, with the On X% average transfer of amount principal at coupled by down business, was addition our XX% the $X.X remittance strength La per quarter to year-over-year the $XXX Slide eight, transaction. of core Nacional. The total grew for

the is the our La share decline Nacional. primarily So of are Dominica business now the to which lower larger to transaction average acquisition Republic, amount due a since of

continues Our slightly down to X.X%. be trend core about only remittance

quarter spend per purposes, $XXX during was Intermex compared $XXX core comparison the the For with La Nacional. average

makes share mentioned Bob look America largest X Latin Nacional XX%. fully our now basis year XXX up in first now points the last of it the where earlier, set and at and to is consolidated, markets we to sense from La over quarter market with the As Caribbean,

line, $XXX.X looking in to XX% nine, year-over-year period. the the increase million the during reaching Slide top customer ages growth three-month and contributed On at revenue,

continue contribution year-on-year transaction, online growing our quarter. efficiently app We're first to to consumer digital business, offerings stay we the of revenue originated ahead acceptance. around and XX% our business digital with thoughtfully successfully up to pace of the for the match in the and our profitably contribution revenue As spending digitally from or

growth, areas, higher tax effective mentioning, net rate interest seasonality line in in worth our and Czech. keep business, that us economics the tight We was It in are behavior, support digital, business always consumer good to very to it. pulse growth a a there in was positions and growth Nacional income in in strong. the XQ with intelligently a while and higher which however, La expectations, expense invest ensuring It's quarter, unit the with on depreciation in

was income just about better opportunistic Net $XX.X at activity. growth was GAAP at X%, X% EPS up buyback by under driven our million. stock

up net expenses, same amortization by and first million, same XX. at strong X% partially certain the more growth, of revenue strong quarter made excludes quarter. intangibles Adjusted by Adjusted tax income, $XX.X challenging net February EBITDA drivers by an exhibited Looking Slide share-based a GAAP seasonality but income La in to was during underlying related increased Nacional impacted benefiting exceptionally items. for the transaction-related to items which to the XX% $XX.X those and XXXX, offset from like [indiscernible] of that impact million, the than compensation,

the with Turning quarter for $XX.X XX. Friday generator continues is cash to operator the to It's it Slide that strong for the and be of balance ended a balance Friday operational balance low mention an Intermex of million. business. weekly worth efficient to cash The cash. the on a a sheet company point on

remained more free it working the be of during generated From capital Net price almost measure, an cyclicality, million, active $XX.XX under shares we is the than three-month XXX,XXX average purchasing and market XX% the $X.X year. excludes quarter a which buyback period, first last to per million at of strong continue for increase cash of the just $XX perspective, in from share. at our an internal quarter during

additional the Board Additionally, another in $XX.X but significant from we purchased we The of again buyback in authorized call, has an worth million. disclosed active. last anticipate $XXX remaining about The company over shares of program fourth capital, repurchases. amounts recently a opportunistic it year. quarter XXXX the and This authorization original $XX million it's use for share quarter we previously our repurchased excellent million X.X mentioning includes the shareholder directly for third in million as

organically gives upsize the and room to is through our of worth us million. Also line within now revolving million, creating flexibility grow more has facility, opportunistic additional up also mentioning capacity the credit recent of This additional a which M&A from April $XXX $XXX buyback. for capacity while

XX, results. go the guidance through our we're on first firm again quarter it number today. for holding positive year full once our on Slide based On We'll

to $XX of of adjusted For million XX%. million an increase XX% the increase of revenue XX%. we million flow XX% to of $XXX million, an XX% year, increase $XX.X the and in expect an be $XX.X the million Net to range, range, to to to million income to of EBITDA $XXX.X XX% $XX

we $XX.X expect $XXX.X quarter of the increase full second disclosed million be EBITDA La revenue million For start of of considers an impact range, the XX% quarter, the XX%. just X% the business increase an of and international the closed $XX.X the fourth following million business increase of X% U.S. million, $XX.X in to we to to to $XXX.X XQ. the Net of in million the an Nacional, $XX.X of million to guidance XX% range, This and to to at XX%. income adjusted that

to want strong EBITDA. positioned we to feel guidance earnings that another our we'll in summary, starting for well execute we and year communicate to shareholders. In our EPS with also continue deliver metrics: release, highlight QX adjusted revenue, following We and X start to the

that, turn over it for the I'll to operator With questions.

Operator

question. proceed with I Instructions] with Needham. with Please will ahead the [Operator from line Tandon on your first our go question Mayank

Mayank Tandon

you Thank And could Good need the wanted on I first you. to investments effect, that you Congrats to on the recipient the the capture are to make Europe opportunity. when able targeting case you quarter. that start, in would in to with be to Bob, morning. you the start side? markets Europe countries be into that you to SEM talk this other expand who current about And what the countries beyond mentioned?

Bob Lisy

of part that the last were again? it The was countries who that say

Mayank Tandon

already be beyond mentioned was from eye a looking Spain, the country should you presence that? to wondering are that has are we you expand then clear, Just also Nacional Italy an countries and a keeping I that corridors if [indiscernible] that also the And be in to La what on Germany.

Bob Lisy

at part, pointed was Okay. question the the That last

So yes, and in only the first pass just really We cracked at in as now, in opportunity Italy. store. And there's it we've a one huge have of Spain looked right we've just from amount seal company-owned Germany.

countries a would expand would than huge possibly U.K. first a so more And outbound Italy, those room that, work this in Actually, But greatly. do to that a certainly in exactly through today at expand longer three not to business is market three lot those is there's bigger And to be we to the in in the in France Spain piece countries. at in a share run, country actually Spain addition there's least time. But market.

a it's So fledgling business.

with growing been though, good is it so is, business grow small that The about has power as is, it as and able to it's far, its thing own profitably.

approach things. we who to tap For immigrants to How targeted they? we really we it value-added them? quality that will and provide a do How is the into couple wires. be of where a the us, are what will efficiencies do sort the approach drive of bring, be the One are

today, The We second just be are one XXX% efforts investment, won't will invest. our efficient. we but not recognize

And so to and the expanded expanding are opportunities same to there's out the high-performing out wires. reguide Europe, retailers capturing create in that ourselves we U.S.

first the of So that's out. part

Europe from set of to countries out be to The we U.S. some of do necessarily than a go second already deliver there'll is, we part different the

won't biggest you countries. one But partners, of certain the big a one wouldn't will instance, going in Caribbean countries know, role necessarily but American be Turkey. Obviously, Some and biggest in South as There's of corridors it. still to important. of for Germany, would decent some be still countries amount the pay Mexico some volume

work a to So better money send we'll to relationship get to back Turkey.

ways everybody. key with will differentiated can it payers is There's easy It's layer doing get that over can Visa for will things be and as of connectivity. A lot cash to of without payers the on payers better U.S. provide and to we top The differentiate us that like again, to sub-Saharan can of model do in brought we various connectivity building we that to area in that And going that, going have so that continue we bear to Europe. over and big somebody solid with cash, of some going disbursing But over-the-counter Africa, bank networks issues. us we'll be money to relationships the do omnichannel that, and one those Eastern U.S., countries. Asia, in to money the over that that the in today very carry euro. Mastercard

Mayank Tandon

quick And Bob follow-up color. wanted question. that. margins. just on a to you that’s for as a great Thank I ask

ahead year. margin medium-term goal You're the last running set of that already you

Is just dynamics changed to so to wanted rendered So might there in have expect any get the Or a any medium-term step target reason margins? the thoughts. be conservative? back too

Andras Bende

Yes.

back referring to XXXX. in you're think I the Day Investor

better we have a opportunity think guided I do an than to those have margins to. would what bit

digital, amount downward we're I have a by margin little La pressure, opportunity think is business But on do which you'll than see down bit. the Nacional, better of think I bringing increase the of business that. that doing a from we lower They've a nature. in bit we to as gone obviously,

Mayank Tandon

Great, much. you I’ll in Thank back queue. so get

Operator

with the to very JMP Go next get on question much. Securities. of the you our line line We'll David ahead. Thank from Scharf

David Scharf

feeling business you as bottoms-up five all ought on your from top regarding about for do how at it morning. the TAM, you start, updated to the to market the they Thanks kind of this share? can how we sense to do experience, those underserved big your in? down you? to think in already that way received get less business I for how -- for we ultimately think ZIP you Or these opportunity maybe are American in a that XX%, we're is which and for about countries to look here's mean, countries share think of meaning a on about to setting should be kind to your here's market on thoughts my particularly those mean more quarter. the Good investors codes wanted countries, can Intermex's five just slides about I what think it perspective, look a Latin U.S. based try taking in natural ought how Because question. question as not get get? Bob, I the we at formidable. the U.S. top the and it's the can that for assess sense pretty at

Bob Lisy

Well, a be It's a up. We bottom number. of a it to is bit top arbitrary bit would -- me, an of fantasy. a down

And And the care so bottom huge would we more we to in we look that's my up. that wires in still get that Georgia, and share for that California same Salinas, consumer Atlanta, at a think sitting that have from gain support doesn't that have opportunity consumer I share be a there.

at look ZIP we our by performance code so what code. looks ZIP And like

think, opportunity they codes as never think But and we talk and of growth huge at field look market unprofitable early time share the in, talking discounts gain We're we about us some of the that, that, these growth Southeast a or challenges a about is we've anything do same and an a amount market the entrant. our margins opportunity, that huge wires. the at what the We share. states market open that share to for not on huge of talked when recognize close amount is we're even in in the headroom have. not could we same projected more certain to of still see for as zip we that -- attain have in irrational years. drive others, that of we've Frankly, competitors exuberance I and or kind Western compete that of to about attaining over to that we than states there's There's that some California,

the we think margins we're Nicaragua But have Mexico, digital These sending sending growth We've world Guatemala, brand, also two believe to money amongst with where on Guatemala don't a the have or retail. are two in also there's brands Mexico growth there's countries clearly there. probably largest are is ways to. we we're and Guatemala, leader. a seen growth huge that brand, huge Mexico, opportunity. that. kind, Now to a about there's money as any of tremendous One coming but market and the like in of a lot the Ecuador there's Colombia. upward amount countries and that same #X

core built open of have out lot fully either countries or have that are lot codes out of still So not not at ZIP built we territory, those that a a all.

reasons, that just that then And markets, other for America foundation plan. way these largest And this you have we that a purposefully Mexico we most with started and because is the of part in number Latin built all countries of profitable Guatemala transaction. of

there's So Nicaragua share next countries gain still markets we an still there's to those in group, which includes eight, also markets those market. which those a way, overall the Ecuador, think is the We by the XX-some-percent opportunity X. Colombia, to are big to opportunity growing. of the tremendous like and believe our like move share And then

there's faster So service, be market. and think we there's will a growth then than grow to holding the by growth that going

David Scharf

about year? A of for the Thank couple Andras. the color. quarter to input you Understood. Any for just we tax follow-ups on quick ought it. for rate Got the the

Andras Bende

that No, and -- about. was that's a one to note talk good Yes.

New the attracting so area, our bottom of apportionment It's state in La driven line York, revenue jurisdictions. it's New more lot Nacional, and With tax Jersey that tax acquisition the is a overall higher rate. of just of

Nacional and concentration from the additional business. So that it's of spillover really La

David Scharf

then Should effective we full this? the think about year rate is

Andras Bende

would have to in better it. past you probably closer at versus XX% think seen look XX% way I is the Yes, a to the that

David Scharf

think I more on rate as sort think up weekend. running of cash how your can to But eaten ending what broadly, get the And free for... you're it. the as much a we [indiscernible] on us of of update recognize like as you much prefunding a EBITDA conversion Got about cash cash ultimately side, can we by left to half obviously, Friday, at ought how think is flow, about on for

Andras Bende

It's about XX% to XX%.

David Scharf

related, Got buybacks, repurchasing aggressive XX% some know then a as might you income think period? a companies restrictions? limited XX%, level somewhat it. I XX%. lastly, basis. we example, I are loan restricting net covenant there me, have authorization, also for And of about remind mean, can but on trailing there of only they're by the Is covenants in that, anything the buybacks any

Andras Bende

up Yes. We're times then X.XX%. get trailing leverage. do And X.XX beyond that, X.XX%, we unrestricted every XX that year, to a we're percentage beyond allocation of if even

be you if we releases. So would in would look, past it -- detailed our

David Scharf

it. Got Thanks. it. Got Perfect. All right.

Andras Bende

that And factor, on by the would that, you leverage which covenant straight low the you're our suggest way, a taking end where because have average, isn't pretty our the from about so on quarter a is covenant perspective. we XX-day right, calculation up revolving average,

Operator

the We'll Securities. Grondahl Northland get Go to our next question ahead. line with on is Mike

Mike Grondahl

we understand revenue from good morning. what's Nacional in core break in XQ, you can out And XQ? think Hey embedded you rate? La the guys do Could guys, growth revenue

Andras Bende

of now year, then three problem. i-transfer then quarters La around was million. to $XX $XX be all no $XX million. And that. U.S., Nacional then the as to U.S. Yes, million revenue This on to $XX.X going for probably to do Andras. is which right? then is XQ And be And going year, And is and that's for Happy million. around the

Mike Grondahl

back that can XQ into We core Got then. it. growth helpful. That’s

Andras Bende

revenue. about growth of terms XX.X% Core XQ in transaction

Mike Grondahl

XX.X%, About okay.

Andras Bende

business. you XX.X% in core on just gets the -- to think I

Mike Grondahl

hire about then One, this very had Got of XX out for I you kind triggered opportunity And directors, that? you large it. salespeople. XX regional Bob, hiring those? did talked how always outsized recent West. You've think, And what

talk those it to of some kind one what agent obviously, growth recent, on of should really you growth tie know it? goal then us to how of rate think what but XX, more. Can to I triggered was drive agent hiring about expectations we you give that's if I'm hate -- new and and just exact agents? the curious number, is an has your growth the about there. especially I So But sort for what going are don't the for been

Bob Lisy

by transaction trying I'd growth. and deliver revenue to start to agent like deliver growth. trying we're never to saying We're

really agent the probably it's network -- our could have deliver So volume We have any tomorrow. the add today. kind We business smallest network of in easy to double of company the could we market agents. we doing

partner, revenue. and driving we is But channel a about them. So adding our adding respect they're Agents it's are agents. -- and really this vehicle, and about value about not quality it's

I of to transactions, how believe we or reemphasize just prequalifying we with want places amount just up a certain the deliver that in will right not So agent putting an know agents. of important target

The second part regional their is, float. sales had that RSUs, and they're there always people called it's not necessarily just and we've executives, are

in two be or three not might in open in Calender So opportunities. four and in Southern or what necessary they is might there district. means on be in will Randy as based them of deploy exact selling that an be just selling They they be one, might and might districts the Southern them Cal

a it, retailers year, to would be consensus. and put able western correct. pipeline we build line there. But this driving in wires generation start particularly little little that to those. with put been more That's and against have felt needed be to bit bit we've in states, that still new in about plan in would the faster, the opportunities the There's been open them and working able Those to that we're be we no a doubt

those more was invest bit opportunity a in little to the do So areas.

one we more little has particularly the a There's at gotten about, relative as been assertive that of the public our grow continue a West. but be tougher to companies, two to in in those in or discounting companies need the marketplace to some talked we market aggressiveness states. to think share also private We have that least of way the that

the comes that's all things where from. So of considered, being investment those

Mike Grondahl

And maybe follow-up. just a

in all them really are... 'XX, So Or of percentage most of sort of like added them XX recently. are were And the west? out what you say can

Bob Lisy

They number one. 'XX, were not in

they're in fourth are them quarter. disproportionate west. There's share. with all of And Some not a us

and we opportunities Texas market. as but some grow we where our there's as West, the West, about think bigger some markets East have well, to in you have in If share, a

Mike Grondahl

Got guys. that thanks it. Well, good growth. to hear about And

Operator

next [Operator with Chris we'll the Credit from Instructions] get question And on to line our Zhang Go Suisse. ahead.

Chris Zhang

taking for question. Thanks my

So your I the highlighted those include that Investor in you market. international that Day card had services the and including the GPR on one value-added processing, additional incremental co-branded products, at

us with the overall of your give they you're portion on of La that what's on on value-added the So the some value-added the revenue? also growth the of in size terms maybe service service can acquisition? rate And What seeing? Nacional contribution are of you an opportunities update And the what there? have

Bob Lisy

high-margin like even to terms they're one the delivering of hooks really -- about think stuff consider them products. about of one's we American core add, done we all done own. about talk products. is really value-added. the be we we're well community their the early EBITDA, Latin value but them consider that have of little community When about our folks our revenue, our that GPR -- wouldn't we ingredients the talk card the products the next the talk way really We that they are talk Walmarts that. But that course significant over in positioned We so are those of and We fledgling if no on contributors Well, some in payroll and because products card, or can stages. No several with to through years, we think in the card the more consumers. a hooks

payroll It's you're a GPR from but think or revenue going of it's our card huge we going to either terms card on, satisfied able couple of how and opportunity grow. to our but there's be we've at really been it's to significant there, for see a that's payroll not a grow card, our a it But will in EBITDA a years. So We're with impact non-material, very this growth or early small the point, business. card.

Chris Zhang

acquisition And rightsizing unique of X.X%. or there terms from just a the understand to all X.X% I color, customers decline at I a the was appreciate on the some very the be might maybe follow-up of the with Nacional slight quarter. end quarter some factors... seasonal in the Bob. La This

Bob Lisy

unpack... Maybe

Chris Zhang

more I Can pretty in decline Yes. slight of unpack delivered you first cost growth the revenue transaction also growth where understand you're quarter. you on and maybe the the focused robust that the

just but understand... trying -- So to

Bob Lisy

to first Is fourth to? just year-over-year? sure, you're Is quarter to quarter decline. that a the to referring you're I want that make referring

Chris Zhang

Fourth from [indiscernible]. quarter first quarter, to so

Bob Lisy

We've year lot in of cautioned two our do like can weakest month December. work in the October quarters of months fourth the not those of year, the are that again, quarter, a the second all is weakest January, and month February, I strongest industry. of sequential analysts of The do times. the it

honest, line doing better new shows by would January less you're close a slower be business customers. to that going design, our that it pleased have I'm in business how more in priced fourth if in quarter to really So lot the seasonally with be and that the close, with first that to relative then holding is quarter February. than of a you are that we things

Chris Zhang

in and seasonality in answer question. seasonal, 'XX, will that see make that my more Thank do the flattish. I that's sure just want fair. 'XX although the you. quarter that’s first quarter Yes, I to first is of

Bob Lisy

Okay, Great. Thank you.

Operator

will question is I today now Alex with Capital our final Markets. of KeyBanc the for Markgraff with line proceed from

AlexMarkgraff

question. my for taking Thanks

is Just a outlined, opportunity of XX year. you're that the so Is the commentary. through the the curious balance to more question. of to count add hires follow-up there about that just it Just after on desire at continue the any pace? I'm or kind how there first you or sales comments thinking

Andras Bende

on are hold that We additional in sure the hires. of maximize to we now, efforts. want we Right terms make

business that point to basically they've exceeded time is which sure Now where within gross to driving enough transactions kind be cost that sure they're that make they're in a driving months starting we're efficient upgrade additional the happen, the margins increased from out headcounts bringing seven not in could We'll these are of business. that and this of later, book contributors. of first -- the those make to we marketplace. six, number at in add have to expect significant in point. And getting a for there's be period more within a where each key plan people they're themselves and that on the their then but people's will of we'll they're We paying

Alex Markgraff

for that just of I just of in across Bob, noted did be I revisit to your questions maybe, the the provide kind Very helpful. -- U.S. you, can know a see markets various would around go Europe. environment And competitive don't of some just love you analysis then clear. perception would kind that end of you slightly and you Maybe if similar

Bob Lisy

Yes.

competition the in question So is to America? assessment U.S. the Latin of

Alex Markgraff

currently No, the that looking that noted Europe kind to across end markets get tries sorry, of around just you in and you're are it… various

Bob Lisy

that I the all have don't we know data.

of there. players think I are the some same

strong quince like not in world. Some of smaller early some the my players, of small and It's guys. that that regions some of unlike competitor fragmentation states with here there another by and three public there's over from its a know small the -- say regional equally has decent public U.S. a guys. it, would Think you the regional some the And market almost there. companies There's U.S. that's or it's I in size countries

some Some in Spain. Italy, people are in are people

be So be you're with. three will familiar public be will the -- obviously, there, there and that companies they'll

the owns investment. are go company which different will get we I bit but a in big We're, go in and we is different, can we game is opportunities out how And the industry market, What to if get market we the the we can business? get What that analyzing we get little U.S. we any forward, after process just don't that get do return as Is almost on we But because than finding it? how they're drive who the fastest. really we'll aimlessly the go a that the through think, it? that it, ones under, that do opportunities it. the is the we if be the business there key have big do get

go But one in quickly. another countries it's maybe at Europe or We least and two XX France, XX or Spain, ahead driven to by into to XX us or expand easy Italy, really the countries. business Germany, be will

our be and tremendous Mexico high high drove the and We that so shares in he been on that U.S. that to built U.S. market profitability the focus Guatemala. And focus volumes, it's similar primarily a We will from from there. foundation

us, we're concerned for we basic the in like So and core same it little return market the but I the on U.S. played not brought about that out the a about will want the to analysis execution, don't competition, business it's -- to investment, opportunities competencies sound in and of awareness

different marketplace.

way it. the we'll And so that's approach

Operator

have we closing questions would on Lisy, to I remarks. the back the no you turn Mr. line. further like to any call for

Bob Lisy

forward we you Well, joining time, to thank a to all day. great us. your you look soon. all talking for We Have appreciate and

Operator

conclude We you. Have your the today. that disconnect does conference for day, you Please your a Thank for thank And lines. everyone. good participation. call

International Money Express (IMXI) 4 May 232023 Q1 Earnings call transcript