International Money Express ((IMXI)) has held its Q4 earnings call. Read on for the main highlights of the call.
International Money Express Inc. recently held its fourth-quarter earnings call, revealing a mixed sentiment. While the company showcased robust digital growth and profitability, it continues to grapple with macroeconomic challenges and competitive pressures, particularly within the retail sector. Strategic investments are being made to enhance digital capabilities and strengthen market positioning.
Strong Digital Revenue Growth
Digital transactions have seen a significant surge, increasing by 71.7% year-over-year. The digital revenue for the fourth quarter rose by 48.3%, culminating in $20.6 million for the entire year. This growth underscores the company’s successful pivot towards digital channels.
Record Adjusted Diluted EPS
International Money Express set a new record for adjusted diluted earnings per share (EPS) in the fourth quarter, achieving $0.57, which marks a 1.8% increase year-over-year. This record highlights the company’s ability to maintain profitability amid challenging conditions.
Successful M&A Activity
The company’s strategic acquisitions, including La Nacional and Amigo Paisano, have been fruitful. The acquisition of La Nacional has doubled the company’s EBITDA, while Amigo Paisano is expected to further boost digital growth and improve unit economics.
Retail Business Resilience
Despite facing macroeconomic challenges, the retail segment of International Money Express remains profitable and continues to contribute significantly to cash generation. This resilience is crucial as the company navigates a challenging economic landscape.
Macroeconomic Headwinds
The broader remittance market experienced headwinds in the fourth quarter, with a notable slowdown in Mexico where growth has nearly stalled. This slowdown has impacted the retail segment, presenting challenges that the company must address.
Flat Revenue Guidance for 2025
The company has projected flat revenue guidance for 2025, estimating between $657.5 million and $677.5 million. This projection reflects the ongoing challenges from macroeconomic uncertainty and competitive pressures.
Increased Investment in Digital Marketing
To remain competitive in the digital space, International Money Express plans to significantly increase its digital marketing spend from $1 million in 2024 to $9 million in 2025. This investment indicates the company’s commitment to enhancing its digital presence.
Forward-Looking Guidance
For 2025, International Money Express has provided guidance projecting full-year revenue between $657.5 million and $677.5 million. The company expects fully diluted GAAP EPS to range from $1.76 to $1.91, with adjusted diluted EPS between $2.09 and $2.26. Adjusted EBITDA is forecasted to be between $113.8 million and $117.3 million. The strategic focus remains on driving accelerated digital growth while maintaining a strong retail presence.
In conclusion, International Money Express Inc.’s earnings call painted a picture of a company navigating through mixed conditions. While digital growth and profitability are strong, macroeconomic challenges and competitive pressures persist. Strategic investments and acquisitions are poised to bolster the company’s market position, with a clear emphasis on digital expansion.