• Revenue: Q4 revenue of $164.8 million; full year revenue of $658.6 million.
• Adjusted EBITDA: Q4 adjusted EBITDA of $30.9 million with a margin of 18.8%; full year adjusted EBITDA of $121.3 million.
• Adjusted Diluted EPS: Q4 adjusted diluted EPS of $0.57, up 1.8% year over year.
• Digital Revenue: Q4 digital revenue up 48.3% to $5.6 million; full year digital revenue of $20.6 million.
• Consumer Base: Expanded to 5.7 million, up 1.8% year over year.
• Interest Expense: Q4 interest expense of $2.7 million; full year interest expense of $11.7 million.
• Net Free Cash: Q4 net free cash generated was $4.6 million.
• Share Repurchase: Over 1 million shares repurchased in Q4; total of 3.8 million shares repurchased in 2024.
• 2025 Guidance: Full year revenue projected at $657.5 million to $677.5 million; adjusted diluted EPS of $2.09 to $2.26; adjusted EBITDA of $113.8 million to $117.3 million.

• Warning! GuruFocus has detected 2 Warning Sign with IMXI.

Release Date: February 26, 2025

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

Positive Points

• International Money Express Inc (NASDAQ:IMXI) reported a total revenue of $164.8 million in Q4, contributing to a full-year revenue of $658.6 million.
• Digital transactions surged 71.7% year over year, with digital revenue up 48.3%, demonstrating the success of their omni-channel approach.
• The company set a fourth-quarter record for adjusted diluted EPS of $0.57, up 1.8% year over year.
• The acquisition of Amigo Paisano is expected to enhance digital growth and leverage superior unit economics.
• The company has a strong cash generation capability, with over $600 million in annual revenue from its retail business, fueling expansion into digital.

Negative Points

• The broader remittance market faced headwinds in Q4, with a notable slowdown in Mexico, impacting retail growth.
• The company anticipates macroeconomic challenges and political uncertainties in key Latin American corridors, affecting 2025 guidance.
• Despite digital growth, the retail segment is experiencing negative growth due to increased digital competition.
• Interest expense for the full year was $11.7 million, reflecting ongoing financial obligations.
• The company faces challenges in maintaining market share in the retail segment due to competitive pressures and a contracting market.

Q & A Highlights

Q: Can you provide insights into the acquisition of Amigo Paisano and its impact on your business? A: Robert Lisy, CEO, explained that Amigo Paisano was initially a wires as a service client. The acquisition allows Intermex to fully own transactions, significantly increasing gross margins. The acquisition also brings a quality team from Guatemala, enhancing expertise at a reasonable cost. The digital business was acquired at a favorable multiple, providing a strategic advantage in the market.

Q: How are you approaching digital marketing and customer acquisition? A: Marcelo Theodoro, Chief Digital Officer, noted that digital marketing costs have remained stable or decreased. The company has learned to optimize digital marketing through external agencies and internal resources, leading to lower costs. Chris Hunt, Acting COO, added that data capture allows for efficient allocation of marketing spend, reducing customer acquisition costs.

Q: What are the main factors influencing the 2025 revenue guidance? A: Robert Lisy, CEO, highlighted two main factors: a challenging macro environment in Mexico and the shift towards digital transactions. The retail sector is experiencing negative growth, prompting a strategic focus on digital expansion. Despite challenges, the company remains profitable and is investing in both digital and retail growth.

Q: How should investors view the impact of immigration policy changes on your business? A: Robert Lisy, CEO, stated that while immigration policy changes could have an impact, the magnitude is uncertain. Historically, economic factors like job availability have been more significant. The company believes that the core customer base, primarily working in agriculture and service industries, will remain stable despite policy changes.

Q: What is the strategy for share repurchases in 2025? A: Andras Bende, CFO, indicated that the company plans to repurchase approximately $40 million worth of shares in 2025. The strategy is flexible and may become more aggressive if market conditions are favorable. The focus is on enhancing shareholder value through opportunistic buybacks.

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