EVERTEC (EVTC) 6 Nov 24 2024 Q3 Earnings call transcript
1min read EVERTEC Inc., a leading player in digital payments and financial technology solutions, recently reported a robust third quarter performance, highlighting revenue growth across all segments and improved margins. The company's strong showing is particularly significant given the challenges faced by the global economy, particularly in Latin America.
Key Highlights of EVERTEC's Third Quarter Performance
EVERTEC reported total revenue of approximately $212 million for the third quarter, marking a 22% increase compared to the same period in 2023. This growth was driven by strong performance in Puerto Rico and Latin America, with the latter experiencing a significant boost from the acquisition of Sinqia. The company also announced the acquisition of Granddata, a data analytics company in Latin America, further enhancing its product offerings and strategic positioning.
Adjusted EBITDA for the quarter was $87 million, an 11% increase from the prior year, reflecting the company's operational efficiency and effective cost management. Adjusted earnings per share stood at $0.86, an 8% increase from the previous year. These strong results demonstrate EVERTEC's resilience and adaptability in the face of ongoing market challenges.
Strategic Moves and Future Outlook
EVERTEC's acquisition of Sinqia, a digital payments and financial technology company, has been a significant strategic move. The company has been making progress in modernizing Sinqia's product platforms, repricing contracts, and optimizing margins. These efforts are expected to yield higher revenue growth rates and margins in 2025.
Moreover, the acquisition of Granddata, a data analytics company, is a strategic move to expand EVERTEC's product offerings and strengthen its relationships with key fintechs in the region. This acquisition is expected to contribute to revenue growth in 2025, offsetting potential challenges from client attrition.
Looking ahead, EVERTEC is cautiously optimistic about its growth prospects. The company anticipates revenue growth in the range of $840.5 million to $846.5 million for the remainder of the year, with a focus on margin optimization and cost efficiencies. Despite challenges from foreign currency headwinds, EVERTEC remains committed to its strategic initiatives and is well-positioned for growth in both Puerto Rico and Latin America.
Conclusion
EVERTEC's third quarter performance underscores its strength and adaptability in the face of market challenges. With strategic acquisitions, operational efficiencies, and a focus on innovation, EVERTEC is poised for continued growth and success in the digital payments and financial technology landscape. As the company navigates the complexities of the global economy, its robust performance and strategic moves bode well for its future.