• Revenue: $1 billion for Q4 2024; $4 billion for full year 2024.
• Operating Income: $123 million for Q4 2024; $500 million for full year 2024.
• Adjusted EBITDA: $166 million for Q4 2024; nearly $700 million for full year 2024.
• Adjusted EPS: $2.08 for Q4 2024, up 10% from prior year; $8.61 for full year 2024.
• Free Cash Flow: Nearly $65 million generated in Q4 2024.
• Share Repurchases: Approximately 0.5 million shares repurchased in Q4 2024.
• Unrestricted Cash: $1.3 billion at the end of Q4 2024.
• Debt: $1.9 billion at the end of Q4 2024.
• EFT Revenue Growth: 13% in Q4 2024, driven by travel season extension and market expansion.
• Epay Revenue Growth: 10% in Q4 2024, driven by digital branded content growth.
• Money Transfer Revenue Growth: 9% in Q4 2024, with 14% growth in US outbound transactions.
• Digital Transactions Growth: 33% in Q4 2024 for direct-to-consumer digital transactions.
• Credit Facility: Increased from $1.25 billion to $1.9 billion in December 2024.

• Warning! GuruFocus has detected 5 Warning Signs with EEFT.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Euronet Worldwide Inc (NASDAQ:EEFT) delivered a record fourth quarter with revenue of $1 billion, operating income of $123 million, and adjusted EBITDA of $166 million.
• The company achieved double-digit constant currency growth across all financial metrics in its EFT, Money Transfer, and Epay segments.
• Adjusted EPS increased by 10% compared to the prior year fourth quarter, exceeding consensus analyst estimates.
• Euronet Worldwide Inc (NASDAQ:EEFT) produced strong free cash flows of nearly $65 million in the fourth quarter.
• The company successfully repurchased about 0.5 million shares, which is expected to improve earnings per share by 1% for all future periods.

Negative Points

• The decline in FX rates throughout the quarter negatively impacted adjusted EPS by approximately $0.03 to $0.04.
• Intra US business experienced a 14% decline, partially offsetting growth in other areas.
• The company anticipates a tax charge of approximately $0.20 to $0.25 per share in the first quarter of 2025 due to state income tax expense related to the repurchase of convertible bonds.
• The net decrease in unrestricted cash and cash equivalents was due to working capital fluctuations, share repurchases, and repayment of short-term borrowings.
• Despite strong performance, there is a perception challenge as the market does not always share the company's enthusiasm about its results and future opportunities.

Q & A Highlights

Q: Could you talk a little bit about what gave you confidence in raising your initial EPS outlook for 2025? And if you can help us understand what are the drivers by segment that your 12% to 16% EPS growth implies? A: We hit the high end of our 10% to 15% range last year, and we have momentum in all three business segments. Our digital segment is growing significantly, and we have strong backlogs across all segments. It's not one thing in particular; it's a combination of factors like EFT's merchant services growth, epay's partnerships with big brands, and Money Transfer's digital transaction growth.

Q: How should we be thinking about the growth in Money Transfer, especially with more digital transactions and expansion into new geographies? A: As we enter new geographies, we often find higher margins due to less competition. Our single platform and technology allow us to efficiently expand into new markets. We have a strong asset base with extensive payout touchpoints, which is a significant advantage.

Q: Can you provide more detail on the success of Dandelion and any new bank partners or channel partners? A: We have several large customers in process, with HSBC being a notable partner. Every month has been a record for them, and they use our rails for less expensive and faster settlements. We are also working with CBA, the largest bank in Australia, and expect more banks to join as they see the competitive advantage.

Q: Regarding the surcharge and interchange increases in countries over 2024, what was the contribution to operating income, and what do you expect for 2025? A: We won't dissect it too much, but throughout 2024, several countries opened up for interchange fee increases or direct access fees. This will give us a bump in 2025 as we have a full year of these changes. The market is a combination of these increases and ATM deployments in profitable markets.

Q: Can you discuss the impact of the tax provision related to the repurchase of convertible bonds on your first-quarter results? A: The tax provision will result in a charge of approximately $0.20 to $0.25 per share in the first quarter. This has been considered in our full-year guidance, which still reflects strong underlying operating performance.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.