What caused IMXI's earnings to miss forecasts in 2024?

International Money Express Inc (IMXI) experienced a notable miss in its 2024 earnings forecasts, primarily due to several strategic initiatives and external economic factors. Here's a detailed analysis:

1. **Interest Expenses and Restructuring Charges**: The company incurred higher interest expenses amounting to $2.7 million due to a higher rate environment and increased usage of the revolving credit facility. Additionally, a $2.4 million restructuring charge was booked in the second quarter to streamline offshore operations, impacting the GAAP EPS. These financial adjustments directly impacted the net income, contributing to the earnings miss.
2. **Digital Growth and Market Shifts**: While the digital segment showed significant growth with a 48.3% increase in Q4 digital revenue, reaching $5.6 million, and a full-year digital revenue of $20.6 million, the retail market experienced a slowdown, which is a key source of revenue. This shift in market dynamics, with digital channels absorbing most of the industry growth, affected the overall revenue growth and profitability.
3. **Macroeconomic Challenges and Market Specific Challenges**: The broader remittance market faced headwinds, with a notable slowdown in Mexico, impacting retail growth. The company anticipated macroeconomic challenges and political uncertainties in key Latin American corridors, which affected the 2025 guidance. These external factors, coupled with internal strategic initiatives, influenced the financial outcomes, leading to the earnings miss.
4. **Stock Repurchase and Shareholder Returns**: The company deployed significant amounts of capital for share repurchases, with over 521,000 shares bought back, just under $35 million deployed year to date. Although this reflects confidence in ongoing financial health, the allocation of funds towards share repurchases could have implications for dividend payouts and debt levels, which might have affected the earnings figures.

In summary, IMXI's earnings miss in 2024 was primarily due to higher interest expenses, restructuring charges, and market shifts favoring digital channels, along with macroeconomic challenges and strategic initiatives. These factors combined to impact the company's financial performance, leading to the earnings miss.