Why did EVTC's Q1 forecast differ from actual results?

Evertec Inc. (EVTC) experienced a difference between its Q1 forecast and actual results due to several key factors: 1. **Strategic Acquisitions**: The company's recent acquisitions, such as Sinqia, have contributed significantly to revenue growth, particularly in Latin America. These acquisitions have expanded Evertec's market presence and service offerings, which has positively impacted revenue. 2. **Revenue Growth**: Evertec reported a record revenue of $845.5 million for 2024, marking a 22% increase over the previous year. This overall growth trend suggests that the company's strategic initiatives are effectively driving revenue expansion. 3. **EBITDA and Profitability**: The company's Adjusted EBITDA rose by approximately 17% year over year to $340.2 million, with a margin of 40.2%. This indicates strong operational efficiency and expense management. The fourth quarter's Adjusted EBITDA margin expansion to 40.9% is particularly noteworthy, reflecting improved profitability. 4. **Shareholder Returns**: Evertec has returned approximately $95 million to shareholders through repurchases and dividends, which may have influenced the company's financial decisions and contributed to the revenue growth. In conclusion, Evertec's Q1 forecast likely reflected the company's strategic growth initiatives and financial performance trends observed in previous quarters. The actual results exceeded expectations due to successful integration of recent acquisitions, strong revenue growth, and improved profitability.