IMXI - Earnings call 4 2023 | International Money Express, Inc.

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Operator

Good day, and welcome to the International Money Express conference call. [Operator Instructions] Please note this event is being recorded.I would now like to turn the conference over to Alex Sadowski, Investor Relations Coordinator. Please go ahead, sir.

Alex Sadowski

Good morning, and welcome to our quarterly earnings call. I would like to remind everyone that today's call includes forward-looking statements, including our 2024 guidance and actual results can differ materially from expectations.

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

discuss and Kugbei, Aguilar, Analysis.Let Andrew to to over Information forward-looking Financial undertakes rely for Officer; under such certain EVP, we'll Marcelo Nilsen, turn of Finance Beth such presentation and non-GAAP of President, for this annual Latin appropriate Hunt, at intermexonline.com.Presenting Business update description Joseph XX-K, be Baroni, Human EVP as now Form GAAP Andras on today of website future our our Chief call Financial no our Digital in Director is Bob and of Officer; of X by events. required America; and Sales; Theodoro, today's Act Executive the measures financial Chris the Officer; [ Chief You should Regulation Chief law.On the slides, obtained is included Investors Chairman, section Bob. Also report Lisy; statements non-GAAP Chief Slide our not Randall the of Please Retail statements. measures. on are certain of Officer, Resources G to in financial Erickson company and The on Chief forward-looking Karim our President, me the Operating Bende. obligation on These Officer our ], call call reconciliation as can Intelligence; applicable except financial measures. measures non-GAAP the predictions refer including Exchange to information, release Securities certain press a by and call, presentation required earnings conference

Robert Lisy

just in [ the year-over-year. of you EPS under testament to XX.X% a Good $XXX fourth that is earnings and delivered XX.X% can year-over-year up Page company. GAAP quarter, On of X, up morning. adjusted XX% ] and to was Furthermore, million million, that up are to diluted $X.XX, as diluted proud $X.XX. $XX.X revenue EBITDA we see adjusted who quarter XX.X% EPS Intermex a of to announce we are

This to this our We in most is way fourth every deliver earnings believe serve generation of strategy and cash omnichannel no and market. continued to solid network to effort offer continues quarter and it's of shareholders offerings result, our through demonstrate needs products. Intermex other our an will advantage consumer the replicate. to our for a digital can both in service that environment, claim.Our results provider the varying our that.We efficient and as build and best-in-class careful is loyalty difficult retail to precision our retail very years required

consumers. convenient and agents. continue products ultimately connecting occurs with profitability.We are This through highly where and network critical the where the exceptional and interested ROI retail in the performance consumers of made fast transacting deliver even more consumers makes in Intermex This value-added in we is industry. agent markets strongest. this able to to the take factors and digital approach services our advantage where highest-performing to retail and can while shareholders. drives in cash.How best turn technological our is capture and agent one retail retail resonates our approach All differentiate network margin maximizing drives where value-added model that benefit our refined we retail, have most our Our while service, to in important. has our These generation building rifle-shot market both strategy to will and deliver is and for service products taken the highly a of Intermex At we enabled company profitable

modest a requires model retail Our investment.

gross margin and of transactions Our our roughly sales while same this profitability and on offering, acquisition X% XX% that continue growing and marketing of efficient highly customer of and demonstrate focus total digital spend. quarter efficiency to revenues.In only that way X% by a our we are costs doing

delivering features highly As result, is develop to among are we attractive to margin.Finally, that we functionality a introduce and and the experience continue a a user best-in-class. deliver new

would markets, to application a users.Our our of crafted continue that our We upgrade while same a us That one to in product in demonstrated that related the strategy digital and from have it efficiency X.X reason great profitable taking business in product to ROI current else received markets. strategy to has share of cultivate expand X building digital an our margins right place investment.Our our out the new rating position grow share. including offering capture no spending market, why market has our with amounts India, Visa. partnership network. one the by we digital approach is business with have retail that to is new carefully that the many a grow our some others of carefully providers is significant In value-added key and the growing.We're not have cases, may spent to achieved by our through Philippines broader In the support in capital digital taken and been and industry expanding and

X, product previously, our generation ] will best-in-class QX As leverage about retail into with exceptional growth. Nacional expansion, we we profitable wire talked This drive [ closed sheet.As strong do the the balance and cash consistent La orientation in translates to fortress we acquisition customer and our margins, market metrical the include in our top X brings we a business, months, on XXXX service of Dominican on calculation a U.S. share XX.X% recast share the DR.In in Latin to acquisition to market. meaningful Page over of see our America. XX Intermex over the With for have that captured XXXX, we time markets to presence we republic you'll board

the our in history grown seen XX%, margins, company. have margins of well some acquisitions, best attractive the we market EBITDA while share We were year-after-year.Our north QX over the time, sustaining excluding successfully have of of

the driven strategy. our metrically execution results attain We able these have outside to been of [ ] through

have share to appreciates pursue who at of such retailers. Intermex base gross a affect relationship highly agents and we current ability agents put our Intermex's on deliver margins. we enables This have where continue our We our competitive value-added retail deepening in This to and the approach.We a meaningful when products efficient aggressively upside our base way services. and large. capture who business.Additionally, rely high-margin moat captured to customer us our growing when high-profit with business and We wires to these that while mutually carefully retail low place approach the reduce practice incremental new where strengthen offer and can to beneficial potential areas a our in products select margins is in be transactions not quite has market do is and

As able for brush the margins approach that earnings to broad we're degrades refrain generate a shareholders.We from reacting company. our a result, with to for pressures incremental market

simple markets. disciplined difficult is requires and we quest focus replicate.In incremental not for easy. new previously untapped business corporate are our strategies catalyze approach Our bold but to behaviors underdeveloped are and execution. but to It very These our to and DNA, penetrate have launched in growth,

yield aggressive methods and our This to presence sales outside our a our new traditional move [ expansion taken detailed adding a to has coverage.Moreover, we right Our by potential by our ] strategy an through from of is grew areas, pursuit market revenue our in our XX% approach XX ZIP to our force boost almost but marks departure strategies.From We're progress. we've enlarging X untapped also the innovative manner.This team an drive high is perspective, part to returns wire months, engage with approach these only of next our not the The size and focus in same-store XX already where our signifying enhancement robust a total roles XX growth positions representing capacity. in in over strategically are QX. XX a tripling interactions code been of the XX% agents, on making This infrastructure inside in to our with inorganic in investment sales, expand capacity is step great sales to also potential a members expected penetration designed sales team strategic minimal.As sharpens locales XX. dramatically that business by Europe from we've a confident fresh enhancing aggressive staffing to position will to iTransfer substantial surge our offshore. daily sales an considerable decisive force we're our cost-effective intensify our significantly team, at tripling to decided current

division, millions expect to La and The our in more year powerful ratings opportunity much armed now access through Mexico is the with Intermex Nacional to we to fee of continue expand remain increased business European efficient current ago. believe base.To potential annually. including see strong in X significant U.S. the from than margin to months. coming We We digital corridors network dollars payer structure, alone agent for of our additional the opportunities and

have We this execute to plan. begun against

Additionally, the go testament unfolds. to we year was discipline to I final great future.Before and a and Intermex, company. we're thoughts as about proving be QX businesses operating their into say there to call the and more why on turn numbers, be excited deeper over to we additions These efficiencies combined a leveraged will to to who Andras the as are be are few optimistic a

delivered same earnings what levels the In I not a productive, exceeded some slow were team set execute to quarter solid challenged continues QX. be generated after plan. true growth a to we market to headwinds. of capture business that, talked weaker-than-expected fashion, our almost and we eye saw earnings, faced are our company that sales we line. our do on and out and While At pleased to to put to all corner efforts spite about Intermex time, years.In top key despite and strong we plan market seen am measures the the a have shortly in persevered wires maximize We every that of incremental expectations, to on on and report delivered strong critical of we efficiency. continuing we growth.We in Mexico QX considerably revenue

will difficult our Andras markets period key is underlying will the anticipates take that the market While it time. what presentation, through XXXX, you softness to of guidance in in do for later predict a in

in on tremendous than market.We our Our confident in anticipates part guidance feel else value our the differentiators team and focus is are and is execution in efficiency Board tenacious culture management positioned feel the and anybody why stock. better Intermex and we a there of also the that

produce continue Andras. to will and twice profitable will free cash trades assess free [ that, program. we future we are finally, our increase making that to to and use continue our in be growth.And turn buyback to of stock of cash the call ] We active the We in over share spite highly as considerable investments shareholders.With being in block will benefit our anticipate program existing our that the I'll

Andras Bende

and ways payout wallets, it the Thanks, accounts, by up see double-digits morning, methods strong Bob, margins, terminating seen we've the to mentioning transactions the healthy a and mobile margins best X, good our can on coming profitable in electronic all pages.On is that's for et year-over-year. side. deliver everyone. the These product, for business market.Also Those in growth, this our importantly, in year-over-year both unique grew the Slide Most up see you cetera, receive bank at partnerships X, factor transaction you'll We're digital right. continued. are trend digital we bringing to XX% almost transactions confident worth [ growth cost-efficient like Slide the reflected our team at the a growth see ] you which XX% and can typically digital are us products. On wire. Transactions in were to that very customers key digital

revenue appears this Slide sent. also nice volume value, tailwind So of principal to trend face is for of That that the in $XXX growth driven essentially the Principal excluding for picture you the flat year. average La the and margin sent page, were mostly amounts transaction and quarter.On down growth iTransfer structurally On average are year-over-year is in up by for and XX.X% QX. can XX.X% the it Nacional quarter present businesses for amounts the us.On next is we lower. those inclusion see where a a our the X, principal

coupled lower strong the not at guidance yielded was as and sent XX, with we to transactions grow see as [ to results. cost ] core Mexico.However, our slowdown the while were you next revenue earlier, rigorous in mentioned margins our on Page Bob the to of end earnings strategy a immune preserving As agenda

You can EPS up see XX% and quarter the XX%. income net almost for diluted up

adjusted which over page, growing see year, As reflection, transaction you little which, in Adjusted P&L, is out the versus is quarter, we XX.X% is the others, at million Nacional closed in among XX.X% in EBITDA year. next up income net EBITDA those costs, transaction the on and in we're bolstering at adjust the acquisition about the QX EPS cleaner XX.X% number.On a up can grew the La adjusted costs. prior margins up adjusted $X.X XX.X% XX.X%.Finishing diluted last with GAAP

our shareholders.Also million of margin includes million $XXX up targeted wires worth a $XXX up XX% without QX the deliver balance basis execution.Finally, great to this and quarter generated a removed was XX for testament on through degrading sheet revolver full points, on Nacional La again, delivering focus strategy product the a X note, of in our cash Free margins our a lower-margin structurally sheet both 'XX is on So highly grow by tactical yet to balance which year-over-year. months premium again to is holiday to We iTransfer, in remains year-over-year The businesses, sheet. still improved and undrawn balance day-of-the-week with ended Sunday a shape. capacity. cash on weekend cyclicality environment the

While have EBITDA all remember we average we XXXX out levered, look to undrawn.If the most headline shows the on $XXX sits revolver XXXX, about revolver daily completely for a of below million drawn a debt it and with closed with we've weekend leverage for days adjusted that of position our implies at X.Xx of week versus our the us up Xx. that

million retail regular at are that incentives stock.In program highly great After quarter, quarterly goes, see the that, we and purchased list another top aggressive about allocation at stock, of block $XX purchases. million transaction accretive at through value $XX the capital growth. as by deliver continue to margin in far $XX As the our we million the in

continue underlying our shareholders.As make $XX As have. we program purchases to we far block million, expect as to and goes, for M&A especially makes $XX million our for always Bob we'll the where double it sheet with quarterly when earlier, going look to mentioned to we're from and sense opportunity, balance

you for However, company's [ I'll with to prudent the approach we're resources, the and quarter. screens be slide, ] for for take going briefly continue final stewards to the first robust exercising through value.On guidance of XXXX a capital selective our

the $X.XX $X.XX.For Fully For adjusted million of the Fully million key EBITDA step takes $X.XX. we anticipate corridor to Adjusted XXXX, EPS in diluted growth of $X.XX, $X.XX. to a of to following. of guidance $XXX.X EBITDA million. the year Latin This EPS diluted to following. GAAP EPS Revenue $XXX of first GAAP $XXX million, full diluted account we $XX.X million. for $X.XX to $XXX to anticipate quarter, to million Revenue million market of $X.XX $XXX.X million the down of to diluted in $X.XX into $XX.X America. adjusted noteworthy and of adjusted the Mexico, $XXX.X EPS

things.We'll market digital. continue growth rate effects the X anticipate both the not and in we of country-to-country beat immune growth to retail to the in we're at corridor While single world, largest slowing the

positioned well strong and the by justified will summary, liquidity to over I'll operating market program.In returns to an executing tactical generate model, of by highly that, pace pivot strong year operator earth Intermex And playbook questions. to down come remain back we'll of aggressively our shareholders.With another a it maximizing even a premium our product continue has to strong, leaner Our are more to buyback growth our execution. cash whose we the and [ for the shares in and margins for ]. we'll finally, pursue turn ability utilize face deliver

Operator

with first Our from David comes JMP. [Operator Scharf [indiscernible] Instructions] question

David Scharf

long been sales since the kind targeting? look you force in particularly I bolstering codes, a view something in about a this expansion how more provide such offshore. provide increase, Can of background a kind just broader I Is context ZIP geographic this Or kind what I and think team? context footing you guess, to thought of like? of those you multiyear your dramatic you of the little can some ought we will you've it's Bob, for of said background regions, efforts the internal and more, Western know

Robert Lisy

Yes. We telephone. few to California, with is been that those responsible team augmenting in X are different our were And inside retail in team. Guatemala, in have -- we work to benefited Guatemala positions be in XX outside that approximately in time available. recognize productive primarily contacting our that people, folks at in relative X folks located the U.S., folks will and did And a out that a Those And we for the separate agents, XX be will zones. having agents directly has more Miami had be supporting XX by apart, with set but fully of they our XX what that by We with reach efforts could people teams are folks. teams. created X bilingual more of sales

business. augmented inside sales accounting XX% cost-wise triple perspective for do out in that existing the we're in have had our we've a efficient district that, our or reach this going additional after Guatemala, increase. able managers to and anywhere it's So each that function.Now we at wires separating our Those those to cost about agent.Our fact a but be without team doing new tripling by U.S. the more our XX business from -- much to of existing and have drives contact new have agents. it's and where payback agents the many And what the where even a start-up wires, slow be experience that calling might the that is in decline opportunities will looking is team is they'll good X/XX the if more near an U.S. been of will really with

past.So an the our visiting be the then where increase the that of in we codes text at will any where have a and giving at be because looking even are both in we're aggressive. where retail size found that the we in and margin we're taking of different have if we for will an in that, out there in not inside penetrated also offerings where signaled existing base ZIP And becoming today west, codes margin, ZIP vacant remake lower perspective all these our we a more XX% be responsibility that talked doing the coupled ZIP what agent retail. aggressive folks this So the the with consumer existing haven't from away to the and but to is not attractive remake those will the a we're codes of penetrated. agents certain total in as we've primary represents transactions adding to it about at agents have It's a more and the relative aggressive U.S. tripled new opportunities.We've opportunities approach the more supporting

XX So large over growth that of of rate the [ see our dividends we market and growth months, of think separation of it to -- period next rate that of time. we'll pay the will XX from an in ascension of growth rate our in ] further

David Scharf

increasing in Mexico? one a movement follow-up long kind and Mexico agents...? call is of at some know global as pressures their the largest Mexico of sort feel that, like internal time. that you've Banco the in -- calls.Is sales some on agents. and to maintaining talked gaining a ] what do to after corridor in -- U.S. on of It I are -- a the you I of your And of Mexico mean, mature player, past I -- you're share data. the [ there along -- notwithstanding the guidance about witnessing returned they pricing lot of you're impacted of Maybe in to mentioned existing share by thought force monitoring like looks focus had in you in know forward had

Robert Lisy

business us think retail, weighted share market. we today there gaining the The things are our is mean think I going We not challenge as on. is we're gaining same the way share at at X Yes. for digital. we're and

the we're So faster growth Mexico digital, business having business. XX% the not go piece to of of that's our and

pieces we pieces. the as our retail think believe today percentages well we're digital like X% and are growing as just retail just XX% well as digital. as I more the But and

as beating we're to We and not the causes -- So adding the growth program we maybe that think, be and digital.And at taking retail folks look our does. exceeding and good not to but again, fact adding exceeding as target it at only and think we're we're where beating that also in the weighting going further market we'll separation difference a make of a look retail at further these for share consumer growth, us will lot also is us. or which to and the underserved willing between what we'll to in market make the agent gain and share, a areas unserved and offer this market

David Scharf

guess, based, it's And for was charges, But line good we just think salary in if would as salary this like of for all be the seems million year. year? OpEx a that La benefit, sales most. It and I largest ought quick but I and don't variable it about be a There noise. last after is benefit follow-up figure and the the I agent to figure think $XX some annualized item know we commission increase guess, an moving there Andras. kind may headcount, the Nacional about

Andras Bende

Yes.

I additions. to see of the we salary our an movement think terms mean X% to business small, these X%. aggregate relatively -- in have you're I going for it's year-over-year,

really we've on dialed So back that.

as that and through we a much account is small impact really into visible adds of where So going other as to to taking costs dialing relatively these push not can. we're impact. all back areas It's the be

Operator

question next Grondahl Securities. with from Our comes Northland Mike

Mike Grondahl

XQ. out Did Nacional from revenue the iTransfer? La just back guys and trying growth I'm rate number an call to into organic you in

Andras Bende

means on was main ], million organic all [ iTransfer X.X%. which under about little quarter your about the was we're $XX Nacional QX in call million, a because in together. was in the La growth Mike, QX about sure, Yes, $X

Mike Grondahl

new which ones those on? One or it, strategically on? And think you then ahead drivers targeted I new was sort agents. kind offers. overall strategies. you selected each X are us behind of you Could counter and going? of last was you're actions handicap some know pricing X sort of were towards One growth of how kind let one quarter, implementing. X about, was you're call market like guys talked One Just Maybe heading of of those of that I'll which kind

Robert Lisy

Yes.

the most doing I offerings. we're the think in that important the best one and the is targeted

So is we paying text that's that and say, gets brought bit to executed what well, reducing mentioned well over wires was thousands the an the program, little in that, we're agent time. it. program going in of let's of on that of quite the tens And against we've We've upfront, essentially commission a which agent. then of payment we're amount that

commission upfront executing it second continuing one of execute back an have That our I payment we haven't huge more against our that.The we're or over past. gross and that agent to on time, that to new So is think had and but a gets the in margin the doesn't agents. impact quite done bring it's wires well, has

been it be where have that, we agents, along price going our million being with that's does with mean that and have we're that time we're -- the consumer.But I where again, into not a our of of the both bit where we might market Kugbei actually, market for and going We be are we're level less much ago. running who's And a of agents, growth was. with that the small to have the sure the wires of more at the moving sure codes. of of specific done we'll component of that's going targeting been margins sort pricing, specific Andrew price.New ZIP well X changes well.The wires And what related penetration, I in the not markets, not market Sales at those discounting aggressive thing targeted and has we've of highlight want agent X-plus to better feel been year we X price not wires, aggressive the And and We're continue and overall growth Head It's there. and in to get getting approach done this as we will pricing we've going be the sort more where all. underscore the new when on, where going drive be to We've has and we and offering changes terms margin. the overall versus which not We're We margins. actually brought both because margins to ZIP strategies in new that in to done a better make and wholesale new code little will benefit we I'm that of well. Analysis, a piece spend finance. sort Planning serving more as --

have certainly growth I Canada. We think we La have in the Nacional.

lot more became retail lot And of really a have our cost touch network company Dominican the lot of their a an volume in not in have in to tapped stores Nacional retailers we past network, transactions and on already Let a it Republic. given There's seen Republic lot payer our payer primarily product. minute. we've to a payer wires. on the Mexico them me on and and been got of putting the was do.There's we've the of focused has relationships in Dominican pent-up more in growth La the Nacional a that that both because for We those and a think them La Nacional now Mexico, La uptick

well. there's lot more Europe has growing additionally, Italy. well. at see growth then in parts we're think as lot a we opportunity We think there.And Europe We of opportunity So a things of still looking been in other

markets new are come So will growth where those the from.

Mike Grondahl

kind been hear million you quarter? 'XX, had guys a of did million going quarter. $XX correctly, $XX Starting at XQ terms In the to uptick buyback, to I programmatically of buying that's a

Andras Bende

well. if shareholder have the But block also well. as that up quarter. built our we'll Mike. feel we'll pick be able in that some we That's as we price underlying But to an benefit purchases right, parameters And that of they're be terms each we'll going million to active $XX have into

at that. blocks So about of pick pretty it's I million on being all not and able up top quarter worth of feel $XX good to the cost, then but

Mike Grondahl

And just a range points? a lastly, compared of to see are growth, for points, you headwind like What revenue that points like -- you is able what as X Mexico growth, acting in 'XX? terms of put revenue to roughly X 'XX, do as for as like X headwind

Robert Lisy

Yes.

that XXXX. kind we plan see assumptions I growth and that the industry was think presented throughout of right now at we X.X%, as quarter Mexico growth assumed our in fourth an only itself the sustaining in

back that dependent at we're come back. coming on market all starts if So to not the

Just in of grew was to at XXXX, market the COVID, X.X%. of perspective, which put it it of X.X%. And in grew XXXX, QX QX at in the height

So QX, and it through of that 'XX. during slower X.XX% than did COVID actually we ] projected kind it grew [ in

Our are well making cost that that upside structure that think, or and back from done sales eliminated been a in are a or an right, 'XX. investments We our growth that based lot that's but industry these through totally target we're of is our Mexico as growth because number, assimilated our to separate zero-based that as I costs, on inefficient we've is perspective, budgeting into into unjustified some, think staying now around we've ourselves aspiration sales growth X% from X% put perspective. further assumptions the our

Operator

Our next comes with from [indiscernible] question UBS.

Unknown Analyst

markets talked about into Philippines enabling and you nascent relatively go new. as question others potentially of my the the it's and understand this year. first I call such at to It's and couple opportunities. Direct kind that is input call a out some more India to of So and about last the Visa

of your little then opportunities first part, new markets what how of from baked And Visa can that Direct the longer-term bit Direct a the expansion second outlook the you kind much for the this maybe are year? have into partnership? XXXX potential talk and the part, you Visa the opportunities plans you So plan And is the do about year -- about this guidance? for

Marcelo Theodoro

It's the here. to I'm going first Marcelo question. cover

this company opportunity see a So we approach a approach. from in because the partnership to huge multi-region a moving multi-country, global makes it

XXXX. we before. believe incorporate markets due Those at going current huge great that to corridors are that So America. address to lower we or didn't year our you can important on cost course, said. number like increasing mentioned Philippines, there it's India experience, our as of Latin a the we're projections to as and throughout focus are a But embrace to Bob We that

target new We embrace. that we already, we're some So to have by step a traction but it's see audience step. it's a that midterm exercise going

Andras Bende

And I Andras. is This jump just Chris. in, Yes. would

the overall an baked quite still XXXX. think is was into I perspective company small, what -- that overall contribution from

overall materiality the plan we pops. the think is But the it see from option really if an I small it the moment. of right could quite now, contribution at as

Unknown Analyst

quarter? of wanted to Mexico some trends little And part, LatAm what compared quarter were of regions how a I guess, expected to ] ask the ] the you the rest second outside was market, [ in what just and market guess, the of in, the performance going the I bit the the into about fourth the you performance, saw [ I had

Robert Lisy

certainly not we and and but executed key see growth and where like we've acutely border also has, seen countries triple-digit in strong relative broader Mexico the on really and to as not growth, countries other well of slow certain market us, only but I Mexico, have, the we've very to times, others think been as growing quickly. where growth we've for countries down been Nicaragua some at line Guatemala

certain workforce to from faster the I that's that's Republic, Dominican to market. moving an grow in options, in I those But undocumented faster that. bit we've option they There's to has the that than every a just market U.S. or the somebody in to some Mexico that or believe about of America. a little think overall people And much areas.Dominican fluidly meaning maybe the slowed a more markets more digital, they're the market in ], tend to the slowing Honduras easier been market size [ digital they Colombia than market seeing able banked, and banked. like more Latin outside have growing in be the likely go Nicaragua, virtually we're We country likely member to have well of Guatemala. Ecuador, So if we're more think who's

-- sum are trends. up that's how those the So overall would I

Operator

Sam with from Salvas comes question Needham. next Our

Sam Salvas

the could third insight in in you think into I earlier from quarter? wondering the pressures saw some provide pricing if fourth some mentioned dynamics of stemming it you -- quarter, the in was you I some year I was know guys guys competitors. pricing the

what in just So saw talk maybe XXXX? guys and you you how you about could in pricing the fourth quarter thinking guys are about

Robert Lisy

fourth of and don't and wires. related to made careful to get.Now for bit movements perfectly it wires already wires being as X them the wires -- movements an actually be the able that 'XX, where areas of going in-house, instance, look places have increase living to And us borns at more little about with a at Southwest, in those we we million to where is into that is upside happy all. price in and quarter are Yes. tapped people What California country we we're we efficient ZIP we where is remains margins we thinner. incremental whole by terms big have the bigger we've are our the there extend want foreign slicing Previously, pricing certain now related for haven't we where opportunity that market. codes been saw discounting is price we're there What to in with still are in our very

at California tapped ZIP codes our a as big haven't million it's As year, several all. in into business which wires those is we

another we've have also X.X codes into We that very ZIP where of million tapped slightly. about people have set

more all are that at degrade the where see doesn't places you'll our those different current pricing pricing a but aggressive there, be action.We'll margins. so And a much perspective, different

come lower margins will will at transactions. will in relatively per current are a going ones Those Our to be that stable. transaction, margin gross stay be incremental but margins

a So average bit, but down done come the might be core overall degrade the nothing to will business.

Sam Salvas

quick any any year? about have seeing just Could of then you upcoming you business? some guys guys for the iTransfer momentum follow-up. the in talk expectations or goals more you're And And the a

Andras Bende

be a business say that the today, more efficiently. the built if would we I similar Yes. in it's we're plan that bit to a mid-teens operating can but little we how operating feel comfortable

create I the a right what of we'll think, get more is we're second start, is which to to trying if bang Italy, half in off opportunity. -- big be investing I of bit year. in particular, the we in think plan, a do the interesting end, quite front the that a really

penetration better well think structurally, restarted But I shows our in the a in Spain we're I Italy, a -- well. as were mean, are lot I Spain think really they've trends doing I growth as opportunity. and margins big economy what's they there their well. in of I think think in

that again, geography think as margins good. and I on mid-teens I baseline the there. the from is is trickier aren't But think the bit upside a that little because

Robert Lisy

is that generally to Europe countries just add X I'd in What in we're that continent. today

huge started one in think have our only we're the there's opportunities Germany. We but for looking us to not Germany to in European opportunities in store further there. get France. expand run, in in at middle the opportunity. We market with It's a license also And also U.K.

accounts. there, active because believe the a see to in because already us great nature Europe. think the on They opportunity our payroll digital bank digital at But consumers They're the of ready on are we more card. retail. more be books, will consumer paid of much think you'll do on have Europe is catch wires. I even faster that So We opportunity the

going forward countries U.K. like also digital through other app target and Germany, expansion ultimately were ] and looking Europe And to our in [ we and France key we as then getting so grow up

Operator

Thank Instructions] any conference like to our remarks. over I concludes session. you. This the question-and-answer back [Operator to for closing the speakers would turn

Robert Lisy

a in. Thank [ again. look ] We talking Thanks all all Have great you tuning to you soon. forward for to day.

Operator

for presentation. you The today's conference attending has now concluded. Thank

now may disconnect. You

International Money Express (IMXI) 27 Feb 242023 Q4 Earnings call transcript