International Money Express (IMXI) 8 Nov 24 2024 Q3 Earnings call transcript
2min read International Money Express (Intermex) reported strong results for the third quarter of 2024, highlighting its position as a leader in the remittance marketplace and its strategic shift towards digital channels. The company's GAAP EPS and adjusted EBITDA hit record highs, with digital revenue growth climbing over 66% year-over-year. This performance underscores Intermex's ability to meet customers' needs across retail and digital channels, making it a multichannel company with an omnichannel strategy.
Growth and Market Opportunity
Intermex's digital channels are driving growth, with digital revenue growth climbing over 66% year-over-year. The company is making significant strides in executing its strategy shift towards digital channels, positioning itself for a more balanced and sustainable business model. Intermex is well-positioned to maximize market share and profitability in the digital remittance market, which is estimated to be about 30% digital to Latin America. The company is focused on investing in its digital channels to capitalize on this market opportunity.
Investor Interest and Strategic Initiatives
Intermex announced a strategic review process to assess strategic initiatives, including potential sale in a private transaction. The company believes that this move will create flexibility to optimize its growth and better fulfill its potential as an industry-leading fintech. This decision reflects the company's commitment to acting in the best interest of its shareholders and leveraging its digital channels' potential.
Competition and Market Challenges
Intermex faces competition in the brick-and-mortar retail sector, but it remains optimistic about its retail business, which is highly profitable and produces tremendous free cash flow. The company believes it is in an excellent position to navigate the transition towards digital channels, which are growing faster than retail. Intermex's retail business remains relevant, as about 70% of outbound remittance business is still sent from retail in the overall Latin American market. The company is maintaining a profitable retail operation that supports its growth in digital channels.
Financial Performance and Strategic Focus
Intermex's financial performance is strong, with total revenue of $171.9 million and adjusted EBITDA of $33.9 million, up almost 7% year-over-year. The company is focused on fortifying its position and outpacing the market at retail, while managing costs and accelerating its journey in digital channels. Intermex's strategic investments, such as refinancing its credit line on favorable terms, are aimed at enhancing its financial flexibility and supporting its growth initiatives.
Outlook and Future Plans
Intermex is excited about its future, with a clear strategic direction and a focus on meeting the needs of its customers and investors. The company is exploring strategic alternatives to unlock the value of its digital channels offering and maximize shareholder value. Intermex remains committed to its omnichannel strategy, which allows it to capitalize on diverse opportunities and meet customers' needs with flexibility and convenience. The company is well-positioned to navigate market challenges and continue delivering strong performance.