Q3 2023 International Money Express Inc Earnings Call
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Speaker 1: Good day and welcome to the International Money Express Inc. 3rd Quarter 2020 Free Earning and Conference Call. What participants believe me?
Good day at wake up to the International Money Express Inc. Third quarter 2023 earnings Conference call.
But these stuffs believes speed will be listen only mode.
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I would now like to turn the conference over to Mike Goldstein head of Investor Relations. Please go ahead.
Speaker 1: I would now like to turn the conference over to Mike Galantine, Head of Investor Relations. Please go ahead.
Speaker 2: Good morning and welcome to our quarterly earnings call. I want to remind everyone that today's call includes forward-looking statements, including our fourth quarter 2023 guidance, and actual results may differ materially from expectations. For additional information on International Money Express, which we refer to as InterMEX or the company, please see our SEC filings, including the risk factors described therein.
Good morning, and welcome to our quarterly earnings call I want to remind everyone that today's call includes forward looking statements, including our fourth quarter 2023 guidance and actual results may differ materially from expectations.
For additional information on international money Express, which we referred to as intermix or the company. Please see our SEC filings, including the risk factors described therein.
Speaker 2: All forward-looking statements on this call are based on assumptions and beliefs as of today. You should not rely on our forward-looking statements as predictions of future events.
All forward looking statements on this call are based on assumptions and beliefs as of today.
You should not rely on our forward looking statements as predictions of future events.
Speaker 2: Please refer to slide two of our earnings presentation for a description of certain forward-looking statements.
Please refer to slide two of our earnings presentation for a description of certain forward looking statements.
Speaker 2: The company undertakes no obligation to update such information except as required by applicable law.
The company undertakes no obligation to update such information, except as required by applicable law.
On this conference call, we discuss certain non-GAAP financial measures information required by regulation G. Under the Securities and Exchange Act for such non-GAAP financial measures is included in our presentation slides our earnings press release, and our annual report on Form 10-K.
Speaker 2: On this conference call, we discussed certain non-GAAP financial measures. Information required by Regulation G under the Securities and Exchange Act for such non-GAAP financial measures is included in the presentation slides, our earnings press release, and our annual report on Form 10-K , including reconciliation of certain non-GAAP financial measures to the appropriate GAAP measure.
A reconciliation of certain non-GAAP financial measures to the appropriate GAAP measures.
Speaker 2: These can be obtained in the investors section of our website at IntermexOnline.com.
These can be obtained in the investors section of our website at intermix online Dot com.
Speaker 2: Presenting on today's call is our Chairman, Chief Executive Officer and President Bob Lissi and Chief Financial Officer Andres Bendy.
On today's call is our chairman and Chief Executive Officer, and President, Bob Lessee, and Chief Financial Officer Andreas Bendy.
Speaker 2: Also on the call today are Chris Hunt, Chief Operating Officer, Joseph Aguilar, President Latin America, Randy Nilsen, EVP of Retail Sales, and Marcelo Ciodoro, Chief Digital Officer. Let me now turn the call over to Bob.
Also on the call today are Chris Hunt, Chief Operating Officer, Joseph Aguilar, President Latin America, Randy Nilsen, EVP of retail sales and Mark Marcello Theodora Chief Digital Officer, Let me now turn the call over to Bob.
Speaker 3: Good morning and welcome to our third quarter earnings call. We thank you all for your interest in Intermex.
Good morning, and welcome to our third quarter earnings call.
Thank you all for your interest in Intermix.
Speaker 3: We have achieved another productive quarter building on our history of profitable growth. We continue to grow revenues and EBITDA while generating free cash. Although EPS metrics were skewed by non-recurring items this year and last, these metrics did meet expectations. We have accomplished this all and continue to invest significantly in the future through our revenue streams such as digital service and our European eye transfer division.
We have achieved another productive quarter building on our history of profitable growth, we continue to grow revenues and EBITDA, while generating free cash although E. P. S metrics were skewed by nonrecurring items. This year and last these metrics did meet expectations. We have accomplished this all and continue.
To invest significantly in the future through our revenue streams, such as digital service and our European I transfer Division.
Speaker 3: Looking at the consolidated company results on slide three.
Looking at the consolidated company results on slide three rare.
Speaker 3: Revenue increased 22.5% to $172.4 million. Fully diluted earnings per share decreased 4.7% to $0.41 per share on net income of $14.8 million.
Revenue increased 22, 5% to $172 $4 million fully diluted earnings per share decreased four 7% to <unk> 41 per share a net income of $14 8 million.
Speaker 3: Adjusted EPS decreased by 5.6% to $0.51 per share on adjusted net income of $18.4 million. Our adjusted EBITDA grew 14% to $31.7 million.
Adjusted EPS decreased by five 6% to 51 cents per share and adjusted net income of $18 4 million, our adjusted EBITDA grew 14% to $31 $7 million.
Speaker 3: Andrew Spendy, our CFO , will expand on these metrics in greater detail during his prepared remarks.
Andrew <unk>, our CFO will expand on these metrics in greater detail during his prepared remarks.
Speaker 3: I will focus my remarks today on primarily growth drivers impacting our business this quarter and what we anticipate in quarters to come. I will talk about our existing agent retail business, our actions to accelerate growth, the improved efficiency we are already seeing in the Lanache now business.
I'll focus my remarks today on primarily growth drivers impacting our business this quarter and what we anticipate in quarters to come I will talk about our existing agent retail business our actions to accelerate growth. The improved efficiencies. We are already seeing another national business I will also discuss our growing momentum with our.
Speaker 3: I will also discuss our growing momentum with our digital business and our European acquisition Iairs.
Digital business and our European acquisition I transfer.
Speaker 3: The bedrock of all our offerings lies in the distinctive foundation anchored in our value-added omnichannel strategy that attracts a growing customer base.
The bedrock of all our offerings lives in a distinctive foundation anchored in our value added omnichannel strategy that attracts a growing customer base.
Speaker 3: The trust we have garnered from our customers has positioned Intermex as their preferred choice for money transfer.
The trust we have garnered from our customers has positioned <unk> as their preferred choice for money transfers.
Speaker 3: Our customer-centric omnichannel business model thrives on a cutting-edge technology and our operational infrastructure that is difficult to replicate.
Our customer centric Omnichannel business model thrives on a cutting edge technology and our operational infrastructure that is difficult to replicate.
Speaker 3: Powered by state-of-the-art proprietary technology, we deliver value-added services to our retailers and customers through our highly productive network of retail agents.
Powered by state of the our proprietary technology, we deliver value added services to our retailers and customers through our highly productive network of retail agents.
Speaker 3: One of the primary ways we provide value added service to our agents is through our extensive banking relationships. Recognizing that many of our agents are small, locally owned businesses, and that there are dealing with substantial cash transactions, many financial institutions prefer not to bank these businesses.
One of the primary ways, we provide value added service to our agents is through our extensive banking relationships recognizing that many of our agents are small locally owned businesses and that there are dealing and substantial cash transactions many financial institutions prefer not to bank. These businesses.
We have leveraged our relationships with 12 regional and national banks to help these small businesses established depositary access with our banking partners easing the process for the retailer. In addition, our ability to process checks through our check direct product provides another level of convenience to the retailer.
Speaker 3: We have leveraged our relationships with 12 regional and national banks to help these small businesses establish depository access with our banking partners, easing the process for the retailer. In addition, our ability to process checks through our Check Direct product provides another level of convenience to the retailer.
Speaker 3: Our recent addition of fifth third bank as a key banking partner further fortifies our commitment to supporting our agents in this regard.
Our recent addition of fifth third bank as a key banking partner further fortifies, our commitment to supporting our agents in this regard.
Speaker 3: Our agent retail business forms the crux of our present operation, contributes significantly to our revenues, profitability, and net free cash generated.
Our agent retail business forms the crux of our present operation contributes significantly to our revenues profitability and net free cash generated.
Speaker 3: This channel is a critical asset fueling our current and future growth. The retail network's relatively low cost and efficiency enables Intermex to invest and grow our digital transactions and other new revenue streams while the overall company remains very profitable.
This channel is a critical asset fueling our current and future growth the retail networks relatively low cost and efficiency enables intermix to invest and grow our digital transactions and other new revenue streams, while the overall company remains very profitable.
Speaker 3: As a result, no burn of investor funds will be needed to supplement the cost of building our digital business.
As a result, no burn of Investor funds will be needed to supplement the cost of building our digital business.
Speaker 3: The efficiency of a retail model burns less than 7% of total gross profit on sales and marketing efforts for customer acquisition. This Omni Channel approach enables InterMex to participate in high margin retail transactions while utilizing that model and a portion of its profits to perfect and grow our digital business.
The efficiency of our retail model burns less than 7% of total gross profit on sales and marketing efforts for customer acquisition. This omnichannel approach enables intermix to participate in high margin retail transactions, while utilizing that model and a portion of its profits to perfect and grow our digital business all.
Speaker 3: All this occurs while Intermex remains highly profitable and produces significant free cash.
This occurs while intermix remains highly profitable and produces significant free cash.
Speaker 3: Last quarter, we commented on Mexico's market's growth slowing, partly due to the dollar to peso exchange rate.
Last quarter, we commented on Mexico's market's growth slowing partly due to the dollar to peso exchange rate. This stagnant growth produced a ripple effect through the retail market and as a result, our growth slowed we have modified our approach to certain market components and the early results have been quite encouraging.
Speaker 3: This stagnant growth produced a ripple effect through the retail market and as a result our growth slowed. We have modified our approach to certain market components and the early results have been quite encouraging.
Speaker 3: We have taken a rifle shot approach to specific targeted opportunities for growth with alternative price.
We have taken a rifle shot approach to specific targeted opportunities for growth with alternative pricing.
Speaker 3: We have accomplished this while retaining margins in our highly profitable base. The early results...
We have accomplished this while retaining margins in our highly profitable base. The early results have been encouraging.
After the second quarter, we guided to 5% transaction growth in our core business for the rest of the year in Q3, we delivered approximately 6% and were trending higher as the quarter ended the early indications suggest that transactions in our core business will grow 8% in fourth quarter.
Speaker 3: Not only are we capturing wires faster than projected, we are doing better relative to margin. Where our wires grew at 6% in Q3, our margins grew at 7%. This is driven by a more efficient pricing model. We expect this strategy will continue to create a lift to our year-over-year growth going forward. We are proud of our progress, but recognize we have many more opportunities to access.
Not only are recapturing wires faster than projected we're doing better relative to margin, where our wires grew at 6% in Q3, our margins grew at 7%. This was driven by a more efficient pricing model. We expect this strategy will continue to create a lift to our year over year growth going forward. We are proud of our progress but recognize that we have many.
Or more opportunities to access.
Speaker 3: This is all consistent with Intermex's surgical approach while focusing on specific agents, geographies to maximize profitability while navigating more efficiently and profitably to deliver growth. Our ability to price efficiently down to the zip code level results in our core business delivering approximately 20% IBDAMR.
This is all consistent with intermix as surgical approach, while focusing on specific agents geographies to maximize profitability, while navigating more efficiently and profitably to deliver growth our ability to price sufficiently down to the ZIP code level results in our core business delivering approximately 20% EBITDA margins.
Speaker 3: On slide four, you can see our growth and share over time in the top five countries in Latin America and the Caribbean, which account for approximately 82% of the money transferred from the US to that region.
On slide four you can see our growth in share over time in the top five countries in Latin American and Caribbean, which account for approximately 82% of the money transferred from the U S to that region.
Speaker 3: In 3rd quarter, 2023, our estimated market share in these key receiving countries increased to 21.8%, compared to 20.6% in 3rd quarter of 2022.
In third quarter 2023, our estimated market share in these key receiving countries increased to 21, 8% compared to 26% in third quarter of 2022.
Speaker 3: Shifting our focus to Lanashnell, we have made significant strides in integrating and right sizing its US based operations. The restructuring actions to date will yield and expect to annualize savings of approximately 1.5 million starting this past quarter. We originally thought that opportunity related to Lanashnell was only about right sizing the retail network and maximizing operational efficiency.
Shifting our focus to our Nash now we have made significant strides in integrating and right sizing. Its U S. Based operations through structuring actions to date will yield an expected annualized savings of approximately $1 5 million starting this past quarter.
We originally thought that opportunity related to the national was only about right sizing the retail network and maximizing operational efficiencies. We have made significant strides to that end. However, after more than a year with the business, we see a clear opportunity to grow the top line as well when we apply the intermix playbook.
Speaker 3: We have made significant strides to that end. However, after more than a year with the business, we see a clear opportunity to grow the top line as well when we apply the Intermex playbook.
Speaker 3: During his remarks, Anders will discuss third quarter restructuring charges and financial profile. On Nationals proving to be a valuable asset for intermex and will likely contribute significantly over time.
During his remarks, Anders will discuss third quarter restructuring charges and financial profile of National's proving to be a valuable asset for inter Max and will likely contribute significantly over time.
Speaker 3: We're even more optimistic about the eye transfer acquisition in Europe . That division continues to exceed our expectations both in terms of performance and its potential.
We're even more optimistic about the I transfer acquisition in Europe that division continues to exceed our expectations. Both in terms of performance and its potential we plan to expand the I transfer footprint in our existing markets, where we have a base from which to grow these countries, including Spain, Italy, and Germany, and the markets with significant potential.
Speaker 3: We plan to expand the I-Trans for footprint in our existing markets where we have a base from which to grow. These countries include Spain, Italy and Germany, and the markets with significant potential where we are licensed but not yet present, such as France. Additionally, we believe the UK will be a substantial market opportunity, although it is required a separate license since it is not part of the EU.
<unk>, we are licensed but not yet present, such as France. Additionally, we believe the UK will be a substantial market opportunity. Although it is requires a separate license since it is not part of the EU.
Speaker 3: The European market holds significant potential for growth and we are investing thoughtfully and efficiently to capture profitable market share. We also believe the European market has greater potential for online digital wires due to the larger percentage of senders owning bank accounts.
The European market holds significant potential for growth and we are investing thoughtfully and efficiently to capture profitable market share. We also believe the European market has greater potential for online digital wires due to the larger percentage of senders owning bank accounts.
Speaker 3: In third quarter, the eye transfer business grew at 15%. We feel that is merely a starting point and expect much higher growth over time. Trans...
In third quarter, the I transfer business grew at 15%, we feel that is merely a starting point and expect much higher growth overtime.
Transitioning to digital.
Speaker 3: We are growing the digital revenue at about 65%. But more importantly, this is happening at a greatly improved margin.
We are growing the digital revenue at about 65%, but more importantly, this is happening at a greatly improved margin.
Speaker 3: We have carefully and efficiently upgraded our digital product offering. We have assembled a world-class digital team and made significant strides to improve the unit economics as well as our digital app. All of this has come together at...
We have carefully inefficiently upgraded our digital product offering we have assembled a world class digital team and made significant strides to improve the unit economics as well as our digital App. All of this has come together at a perfect time.
Speaker 3: Our recently signed agreement with Vizzo will enable us to expand our digital service to 20 additional countries worldwide, including Jamaica, India, the Philippines, and Vietnam, and with further expansion slated for 2024.
Our recently signed agreement with visa will enable us to expand our digital service to 20 additional countries worldwide, including Jamaica, India, the Philippines, and Vietnam and with further expansion slated for 2024, we have created significant momentum with our digital business and again best of all we're doing all this profitably from the.
Speaker 3: We have created significant momentum with our digital business. And again, best of all, we're doing all this profitably from the both a unit economics and a bottom line perspective.
Both a unit economics and a bottom line perspective, we will share more in our Investor day in 2024, but we would like to say that we're more bullish than ever relative to our digital opportunity.
Speaker 3: We will share more on our investor day in 2024, but we would like to say that we're more bullish than ever relative to our digital opportunity. Finally, a few words.
Finally, a few words on our payroll and GTR cards.
Speaker 3: These products are strategically positioned in large and attractive markets. The co-branded cards prominently feature master card and intermex brand and will line perfectly with our extensive, high-traffic retail distribution network. In addition, both our payroll and GPR cards are a great bridge toward digital product. They will create an opportunity to bank previously unbanked consumers.
These products are strategically positioned in large and attractive markets. The co branded cards prominently feature Mastercard and intermix brand and will align perfectly with our extensive high traffic retail distribution network.
In addition, both our payroll in CPR cards are a great bridge to our digital product they will create an opportunity to bank previously unbanked consumers.
Speaker 3: First is last year we have seen digital remittance transactions that were settled from the Intermex payroll card growth fivefold and third quarter. We believe this is a testament to the power of the Intermex brand once the customer is banked, especially once the customer is banked with Intermex.
Versus last year, we have seen digital remittance transactions that were settled from the intermix payroll card grow fivefold in third quarter. We believe this is a testament to the power of the Intermix brand once the customers banked, especially once the customers bank with intermix.
Speaker 3: In summary, I believe it has been a special quarter of accomplishment for Intermex. Our targeted planet retails beginning to work and we're seeing a reversal of what has been some slowing in our year over your transfer.
In summary, I believe it has been a special quarter of accomplishment for intermix, our targeted planet retailers beginning to work and we're seeing a reversal of what has been some slowing in our year over year trends. Additionally, we have positioned ourselves in the law nationality transfer business to become more efficient, while growing and driving increased EBITDA.
Speaker 3: Additionally, we have positioned ourselves in the LaNashnell and I Transfer business to become more efficient while growing and driving increased DBA. As always, we have accomplished all this profitably, enabling the company to invest in our digital solution and other growth opportunities.
Hey.
As always we accomplished all this profitably, enabling the company to invest in our digital solution and other growth opportunities.
Speaker 3: Where our wall position employs to grow our digital business and grow at profit.
We are well positioned and poised to grow our digital business and grow profitably.
Speaker 3: Our recent agreement with the recent MasterCard will broaden our receiving country service list and reduce our cost structure. This is all very exciting. We believe our Omni Channel strategy is the best and most complete way to go to market.
Our recent agreement with visa and Mastercard will broaden our receiving country service list and reduced our cost structure. This is all very exciting we believe our omnichannel strategy is the best and most complete way to go to market.
Speaker 3: This approach continues to enable Intermax to capture millions of high margin retail transactions that drive profitability, enabling us to invest in and grow our digital side of the business while remaining highly profitable. I will now turn the call over to Andres, who will discuss our financial.
This approach continues to enable intermix to capture millions of high margin retail transactions that drive profitability, enabling us to invest in and grow our digital side of the business, while remaining highly profitable I will now turn the call over to Andrew <unk>, who will discuss our financials.
Speaker 4: Thank you. We've got another quarter of double digit EBITDA growth and finished ahead of our projections for the core, successfully executing on an important pivot for the business.
Thank you we had another quarter of double digit EBITDA growth and finished ahead of our projections for the core successfully executing on an important pivot for the business on slide five unique active customers increased by 35, 1% during the third quarter to 4 million. These customers generated $15 4 million remittance.
Speaker 4: On slide five, unique active customers increased by 35.1% during the third quarter to 4 million. These customers generated 15.4 million remittance transactions, 25.7% more than a year ago.
<unk> 25, 7% more than a year ago.
Speaker 4: While guiding at 5% transaction growth in the core after Q2, our successful execution allowed us to achieve 6% in Q3, and early indications are that we can deliver 8% in Q4.
Guiding at 5% transaction growth in the core after Q2, our successful execution allowed us to achieve 6% in Q3 and early indications are that we can deliver 8% in Q4.
Speaker 4: On slide six, we achieved the 63% increase in digitally originated transactions. And as before, we achieved this through brand recognition and with minimal marketing spend.
On slide six we achieved a 63% increase in digitally originated transactions and that's before we achieved this through brand recognition and with minimal marketing spend.
Speaker 4: strong customer acceptance of our mobile app continues and I'm pleased to say that the work we've done on enhancing the profitability of digital puts us in a great position to grow this business faster and more profitably than ever before.
Customer acceptance of our mobile App continues and I am pleased to say that the work we've done on enhancing the profitability of digital puts us in a great position to grow this business faster and more profitably than ever before from.
Speaker 4: from a sender received perspective, 33% of our transactions are either sent or received cashless and either end up five percentage points from a year ago.
From a sender receiver perspective, 33% of our transactions are either sent or received cashless at either end up five percentage points from a year ago.
Speaker 4: On slide 7, the total principal transferred grew in 19.8% to 6.6 billion, driven by a core business in the addition of Lannas Canal's US and international business-wide transfer.
On slide seven the total principal transfer grew 19, 8% to six 6 billion driven by our core business and the addition of <unk> U S and international business might transfer.
Speaker 4: The average remains within the US core intermex business was consistent with the prior year. It was $454 up slightly for one year ago.
The average remittance within the U S core intermix business was consistent with the prior year. It was $454 up slightly from one year ago and the consolidated business. The average send amount was down four 7% for the quarter year over year at $429 per transaction as mentioned before this is due to structural.
Speaker 4: In the consolidated business, the average send amount was down 4.7% for the quarter year over year at $429 per transaction. As mentioned before, this is due to structurally lower average transaction amounts at LaNassinelle and I transfer. LaNassinelle average $298 per transaction and I transfer $295 for the third quarter.
The lower average transaction amounts Atlanta, as you know and I transfer the nasional averaged $298 per transaction and I transfer $295 for the third quarter.
Speaker 4: On slide 8, total revenues company wide increased 22.5% year over year, reaching 172.4 million during the three months.
On slide eight total revenues company wide increased 22, 5% year over year, reaching $172 4 million during the three months, excluding acquisitions revenue growth in our core business was five 8% fueled by organic customer additions through new and existing agents and our successful pivot to capped.
Speaker 4: Excluding acquisitions, revenue growth in our core business was 5.8% fueled by our granted customer additions through new and existing agents and our successful pivot to capture incremental wires at lower margins than in the past.
Incremental wires at lower margins than in the past again, we've seen an inflection point in our growth rate and are now anticipating transaction growth in our core at around 8% in the fourth quarter.
Speaker 4: Again, we've seen an inflection point in our growth rate and are now anticipating transaction growth in our court around 8% in the fourth quarter.
Speaker 4: Net income was impacted by a few key areas. Q3 last year benefited from a $2.9 million tax benefit that did not recur in 2023. The year-over-year comparison was also challenged with 1.1 million this quarter in restructuring costs for the Linassinale business. Absolutely the right investment, as those actions are expected to improve the cost trajectory of that business immediately, and resulting in about 1.5 million savings annually.
Net income was impacted by a few key areas Q3 last year benefited from a $2 $9 million tax benefit that did not recur in 2023 the year over year comparison was also challenged with $1 1 million this quarter and restructuring costs for the last now business absolutely the right.
But as those actions are expected to improve the cost trajectory of that business immediately and resulting in about $1 5 million savings annually.
Speaker 4: Higher interest rates on our credit facility, depreciation, amortizations of intangibles, and a higher effective tax rate all kept gap net income growth in check. Net income was down 10.8% at 14.8 million, though GAPEPS was better down 4.7% to 41 cents per share, aided by our share buybacks. We anticipate EPS to return to a growth trajectory in Q4.
Higher interest rates on our credit facility depreciation and amortization of intangibles and a higher effective tax rate all kept GAAP net income growth and check that income was down 10, 8% at $14 8 million GAAP EPS was better down four 7% to <unk> 41 per share aided by our <unk>.
Share buybacks, we anticipate EPS to return to a growth trajectory in Q4.
Speaker 4: Looking at slide 9, adjust the EBDI increase 14% to 31.7 million. As anticipated, even with our tactical pivot to capture incremental transactions, margins in the core business held up great at around 20%. Aggregated EBDI margin was down as in the previous quarters, and this was heavily driven by structural lower margins within the Lanassinale acquisition.
Looking at slide nine adjusted EBITDA increased 14% to $31 7 million as anticipated even with our tactical pivot to capture incremental transactions margins in the core business held up great at around 20%.
Aggregate EBITDA margin was down as in the previous quarters and this was heavily driven by structural lower margins within the <unk> acquisition.
Speaker 4: Adjust the net income was down 11.1 percent during the third quarter to 18.4 million. Also impacted in Q3 last year by the 2.9 million tax benefit that did not recur in 2023.
Adjusted net income was down 11, 1% during the third quarter to $18 4 million also impacted in Q3 last year by the $2 9 million tax benefit that did not recur in 2023.
Speaker 4: Adjustment net income was impacted by the same underlying drivers as gap net income, but exclude items like share-based compensation, transaction, and restructure related expenses, amortization of intangibles, and the tax impacts related to those items.
Adjusted net income was impacted by the same underlying drivers as GAAP net income, but excludes items like share based compensation transaction and restructuring related expenses amortization of intangibles and the tax impacts related to those items from an adjusted EPS perspective, we were down five 6% to 51 cents per share.
Speaker 4: From an adjusted EPS perspective, we were down 5.6% to $0.51 per share. And as with GAAP EPS, we anticipate adjusted EPS to return to a growth trajectory in the fourth quarter.
And as with GAAP EPS, we anticipate adjusted EP that EPS to return to a growth trajectory in the fourth quarter.
Speaker 4: Turning to the balance sheet on slide 10. Intermex continues to be an efficient operator and cash generator. Net free cash generated are internal measure, which excludes working capital of cyclicality, was impacted by the same drivers of net income growth as mentioned earlier. That coupled with increased capital spend to upgrade our agent technology caused the metric to decrease by 4.6% to 17.6 million for the third quarter.
Turning to the balance sheet on slide 10, Intermix continues to be an efficient operator and cash generator net free cash generated our internal measure, which excludes working capital cyclicality was impacted by the same drivers of net income growth as mentioned earlier that coupled with increased capital spend to upgrade our agent technology.
Cause the metric to decrease by four 6% to $17 6 million for the third quarter.
Speaker 4: Net income is the basis for this measure, and as we mentioned with the net income earlier, we expect this measure to revert to growth once again in Q4.
Net income as the basis for this measure and as we mentioned with the net income earlier, we expect this measure to revert to growth once again in Q4.
Speaker 4: During the quarter, we continue to be active in the market, purchasing 502,000 shares for 10 million at an average price of $19.90 per share through the Board Authorized Repurchase Program. We continue to see our buyback program as an excellent use of capital and anticipate remaining active.
During the quarter, we continue to be active in the market purchasing 500 in 2000 shares.
For $10 million at an average price of $19 90 per share with the board authorized repurchase program.
We continue to see our buyback program is an excellent use of capital and anticipate remaining active.
Speaker 4: Finally, on site 11, based on the improving metrics we're seeing in our operations, we're providing the following fourth quarter guidance.
Finally on slide 11 based on the improving metrics, we're seeing in our operations. We are providing the following fourth quarter guidance revenues of $1 70 to 181 million up 10% to 17% GAAP diluted EPS of <unk> 43 to 46 cents up 22% to 30%.
Speaker 4: revenues of 170 to 181 million of 10 to 17 percent.
Speaker 4: GAPT diluted EPS of 43 to 46 cents, up 22 to 30%.
Speaker 4: Adjust the delivered EPS of 51 to 54 cents, up 6 to 12 percent, and adjusted EBITDAV 31.4 to 33.4 million up 8 to 15 percent. In summary, we're pleased with the quarter and the growth we've delivered, our retail execution pivot is paying dividends, and we expect more of that in the fourth quarter. This growth will continue to fund the exciting future ahead of us in digital, Europe , and other products. With that, I'll turn it over to the operator for questions.
Adjusted diluted EPS of <unk> 51 to 54 cents up 6% to 12% and adjusted EBITDA of 31.4 to $33 4 million up 8% to 15% in summary, we're pleased with the quarter and the growth we've delivered a retail execution pivot is paying dividends and we expect more of that in the fourth quarter.
This growth will continue to fund the exciting future ahead of us in digital Europe, and other products with that I'll turn it over to the operator for questions.
Speaker 1: We'll now begin a question and answer session. To ask a question, we pressed start and want to use telephone keypad. If you're using a speakerphone, please pick up your answer before pressing the keys.
We will now begin the question and answer session to ask a question in the past have been one of your telephone keypad, if youre using a speakerphone. Please pick up your rents that'd be progressing to Keith.
Speaker 1: At any time your question has been addressed and you would like to withdraw your question, please press star then 2.
At any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Yeah.
Speaker 5: first question comes from David Schaaf with JMP. Please go ahead. Great. Good morning everybody. Thanks for taking my questions. Hey, first off, Bob,
The first question comes from David Scharf with JMP. Please go ahead.
Great. Good morning, everybody. Thanks for taking my questions.
First off Bob.
I was kind of curious.
I'm just looking at the first paragraph of your press release and it has the comment we.
We're ahead of schedule and our plans to capture incremental retail transactions in the U S and I just wanted to make sure I'm not over thinking that is that sort of a very focused comment related to the core transaction growth that you expect in Q4 or is that a broader comment.
Speaker 5: But I just want to make sure I'm not overthinking that. Is that sort of a very focused comment related?
Speaker 5: or is that a broader comment about?
About.
Just what you're seeing on the ground in terms of agents sign ups.
Sales proceeds.
Speaker 3: It's a direct comment on what we produced in third quarter and what we expect to produce in fourth. If you recall on our guidance in terms of transaction growth, when we finished.
So direct comment on what we produced in third quarter, and what we expect to produce and fourth if you recall on our.
On our guidance in terms of transaction growth.
When we finished the second quarter.
Speaker 3: earnings we projected 5% growth and we delivered 6 in the quarter and it was increasing as the quarter ended. We expect higher growth as I said in the prepared remarks.
Earnings, we projected 5% growth and we delivered six in the quarter and it was increasing as the quarter ended we expect higher growth as I've said in the prepared remarks.
Speaker 3: um in fourth quarter. Additionally, that's not really put a ding in our overall
In fourth quarter. Additionally, that's not really put a ding in our overall margins. So in third quarter, where we grew transactions, 6%, we actually grew our gross margin 7%.
Speaker 3: margins. So in third quarter where we grew transactions 6%, we actually grew our gross margin 7%.
Speaker 3: And that was due to a more effective way to price. So we really set aside our core business and kept that stable. And at the margins where we get incremental wires is where we're aggressive. And that's has been working really, really well. And we think we're well ahead of where we expected to be, both in terms of picking up more wires than we expected.
And that was due to a more effective way to price. So we really set aside our core business and kept that stable and at the margins, where we get incremental wires as where we were aggressive and that has been working really really well and we think we're well ahead of where we expected to be both in terms of picking up more wire than we expected.
Speaker 3: At least told the market that we would bring in.
Or at least.
Told the market that we would bring in.
Speaker 3: but also in the sense that the margins have held up and actually have produced a higher margin than transaction growth. Got it, got it.
But also in the sense that the margins have held up and actually produce a higher margin than transaction growth got it got it that's helpful.
Speaker 5: Hey, follow up. You know, I know last quarter, the topic of increased pricing pressure to a lot of markets, to Latin America was, was,
A follow up.
I know last.
Quarter.
The topic of.
Increased pricing pressure to a lot of markets Latin America, which was sort of top of mind and you know.
Got it a little more maybe resiliency and some of them.
Private discounters that this time around can you provide just a sort of broad update whether.
Anything's changed or if it's kind of the existing pricing environment, particularly.
Speaker 3: Yeah, I mean, I think that the big news for us is that
But the big news for Us is that.
Speaker 3: We've adjusted to that well related to our plan and the way we're going at the incremental growth.
We've adjusted to that well related to our our plan and the way we're going at the incremental growth so regardless of where they are that pricing pressure is there we're doing a really good job holding our base and keeping that at high margins, where that's been and then going out aggressively to incremental wires, but those incremental.
Speaker 3: So regardless of where that pricing pressure is there, we're doing a really good job holding our base.
Speaker 3: and keeping that at high margins where it's been, and then going out aggressively at incremental wires, but those incremental wires are still wires that are coming in very profitable, just not at the same margins as the original wires would come in. But the adjusting that we've done, becoming more efficient in our base business.
Wires are still wires that are coming in very profitable just not at the same margins as the original wires would come in but the adjusting that we've done becoming more efficient in our base business has again delivered a greater gross margin growth and transaction growth now I'm not trying to evade the question.
Speaker 3: has again delivered a greater gross margin growth than transactions.
Speaker 6: now i'm not trying to evade the question i think there's always price discounters out there i think it's the method which people you know think they grow the business and i think that it kind of comes in goes and and i think as long as we're executing our plan the way we're executing today we can work right through that i think uh... we we we now have the
I think there is always price discounters out there I think its the method in which people think they grow the business and I think that it kind of comes and goes and I think as long as we're executing our plan the way we're executing today, we can work right through that I think.
We now have the we're now well positioned with the way we are approaching the market relative both pricing and attacking incremental wires to meet any challenges that pricing might might bring to us.
Speaker 6: We're now well positioned with the way we're approaching the market relative both pricing and attacking incremental wires to meet any challenges that pricing might bring to us.
Got it.
Speaker 5: Just last question I'm going to be remiss if I didn't ask sort of the general commentary on what you're...
Last question I kind of be remiss, if I didn't ask sort of a general commentary on what you see.
Are you expecting from from your consumers I imagine with a flattish.
Speaker 5: consumers. I imagine with a flattish average send in your core business.
Average send in your core business that inflation isn't impacting remittance.
Remittance demand too too much but if theres any color you might want it.
Speaker 6: Yeah, I think one of the big factors is the peso is strengthened, right? So that you don't need to spend as many dollars to get as many pesos on the other side of the border. So that's going to be a big countervalence to any inflation really, because we're thinking of inflation here, but yet you're now getting, you know, the peso is much stronger than it was previously, and that's going to cost people to be able to be able to spend less to get the same amount of pesos on the other side of the border.
One of the Big factors is the peso strengthened rights. So that you don't need to send as many dollars to get as many pesos on the other side of the border. So that's going to be a big countervailing to any inflation really because we're thinking of inflation here, but yet you are now getting you know.
The peso was much stronger than it was previously and that's going to cause people to be able to deal with <unk> to get the same amount of pesos on the other side of the border. So we are seeing it kind of flat right now, but it could go up if the peso started to weaken for instance.
Speaker 6: So we're seeing it kind of flat right now, but it could go up if the peso started to weaken, for instance.
Got it got it perfect great. Thank you very much.
Youre welcome.
Speaker 1: The next question is from Mike Gondol with Northland Securities. Please go ahead.
The next question is from Mike Grondahl with Northland Securities. Please go ahead.
Hey, Thanks, guys and congratulations on the progress.
Speaker 7: Bob, you kind of talked on the last call about it like a targeted plan. I think
Bob you kind of talked on.
On the last call about it like a targeted.
Plan I think one was these pricing offers to agents, where you lost volume.
Speaker 7: pricing offers to agents where you lost volume to your
Two you were targeting new wage and three some some pricing actions in for sort of new markets.
Speaker 7: three, some pricing actions and four sort of new marks.
Speaker 7: When you kind of rank where you've been the most successful and where you think you still have a little bit of wood to chop on those four eyes.
Could you kind of rank where you've been the most successful in.
And where you think you still have a little bit of wood to chop on those four items.
Speaker 6: Yeah, I think the place that we've been the most successful is going after
Yes, I think the place that we've been the most successful is going after opportunities, where we've lost wires in the past because of discounting and being able to go after those wires aggressively still profitably while protecting the base. So again not going in if.
Speaker 6: opportunities where we've lost wires in the past because of discounting, and being able to go after those wires aggressively, still profitably, while protecting the base. So again, not going in.
Speaker 6: And I'll get into a little bit of the weeds here with you because I think the only way to really answer this. If an agent used to do 2,000 wires with us and out of 500, we're really going to discount and give them a better pricing on wires 501 and up. So we're protecting that base. We're not decreasing the margin at that retailer on the core that they already have. And certainly not an agent retailers where we haven't lost anything at all. The easiest thing to do in the mistake that the market makes.
And again in a little bit into the weeds here with you because I think the only way to really answer. This if an agent used to do 2000 wires with us announce is 500.
We're really going to discount and give them a better pricing on wires 501 and up so we're protecting that base, we're not decreasing the margin at that retailer on the core that they already have and certainly not an agent retailers, where we haven't lost anything at all the easiest thing to do and the mistake that the market mix and we're happy mode.
Speaker 6: And we're happy most of our competitors do this, is they take a
Our competitors do this is they take a sort of a signal to a surgical event right and they just they just go in and they lower their their margin across the country, but we have abused core a business that's performing quite well at the margins that we already have and so that's been the best piece of that and we have a lot more to do.
Speaker 6: you know sort of a sickle to a surgical event right and they just they just go in and they lower their their margin across the country but we have a huge core of business that's performing quite well at the margins that we already have and so that's been the best piece of that and we have a lot more to do uh... that project is probably responsible for about a one and a half percent lift on our trend line over the last few months
Is.
That project is probably responsible for about a one 5% lift on our trend line over the last few months and we believe that we can continue that project producing that 50 basis points or so of lift month over month for a number of months still not into perpetuity, but clearly to bring our.
Speaker 6: and we believe that we can continue that project producing that, you know, 50 basis points or so of lift.
Speaker 6: month over month for a number of months still not into perpetuity but clearly to bring our transaction growth numbers up quite a bit agents i think is
Our transaction growth numbers up quite a bit.
New agents I think is the.
Speaker 7: uh... the total of new agents that were bringing in is not as big as it's been in the past but we've never really been focused on the number of agents as much as we are the performance in the total amount of wires and the new agents have been performing quite well and so that's been helpful um... i think what was the other things you asked i'm sorry i want to make sure i touch on all the points yeah i think three was you were looking at some pricing and maybe selectively able to
The total of new agents that we're bringing in is not as big as its been in the past, but we've never really been focused on the number of agents as much as we are the performance and the total amount of wires and the new agents have been performing quite well and so that's been helpful.
I think what was the other things you asked I'm, sorry, I want to make sure I touch on all the points. Yes, I think three was something you were looking at some pricing and maybe selectively able to increase it in certain markets and the last one was just any new markets that you've added or targeted yeah, I mean, the pricing the macro pricing we've.
Speaker 6: Yeah, I mean the pricing, the macro pricing we've thought better about. So we're not doing macro pricing and getting more aggressive, let's say, in a whole state like Arizona. Everything we're doing is rifle shots because that is really the key to us maintaining those margins and actually extending our margins bigger than the growth of transactions. So I would say we haven't done much of the macro with any.
Got better about so we're not doing macro pricing and getting more aggressive let's say in a whole state like Arizona everything we're doing is rifle shot because that is really the key to us maintaining those margins and actually extending our margins bigger than the growth of transactions. So I would say we haven't done much of the macro if any.
Speaker 6: uh... at all and then new geographies you know there's some states for us that are growing quite well i won't name them that are not necessarily new because we've been in every state but they are underdeveloped states that we've made some turns in that have been helpful mostly in the western states uh... california is is now
At all and then new geographies.
Some states for us that are growing quite well I won't name them that are not necessarily new because we've been in every state, but they are underdeveloped states that we've made some turns and that had been helpful. Mostly in the western states.
<unk> is now.
Speaker 6: growing in the trend is turned around significantly and there's a few other states I'll west that are performing quite well and i'd be remiss if i didn't say that we're getting a significant lift in our overall number from our digital business
Growing and the trend has turned around significantly and Theres a few other states out west that are performing quite well and I'd be remiss, if I didn't say that we're getting a significant lift in our overall number from our digital business and I want to make sure that everybody is clear that we believe there our omni channel approach is the absolute right way I mean theres no blood.
Speaker 6: and i want to make sure that everybody's clear that we believe the our omni channel approach is the absolute right way i mean there's no blood in the street with our approach we continue to throw off extreme's amount of cash we're highly profitable and we're growing our digital business quite well the recent uh... views on our app is that it's it's working quite well and it's it's amongst the best uh... and we're now making on a individual uh...
The street with our approach we continue to throw off extremes amount of cash we're highly profitable and we're growing our digital business quite well. The recent views on our App is that its working quite well and it is amongst the best in.
And we're now making on our individual.
Speaker 6: Unit economic space is money on wires on digital. Just still that acquisition of the customer is expensive, but we have this wonderful model at retail, where we spend only about 7%, 7%.
Unit economics basis money on wires on digital guests still that acquisition of the customer is expensive, but we have this wonderful model at retail where we spend only about 7% 7%.
Speaker 6: of our gross margin to acquire a customer for our total sales and marketing costs compared to some of the moves that are out there if you're strictly digital and how expensive that is. We really believe this model will prevail over time and the way to grow this business is to have that solid omnichannel approach with the beach head of retail and to grow digital from that perspective and it's working perfectly for us.
Our gross margin to acquire a customer for our total sales and marketing costs compared to some of the moves that are out there if you're strictly digital and how expensive that is we really believe this miss model will prevail over time and the way to grow. This business is to have that solid omnichannel approach with the the beachhead of retail.
And to grow digital from that perspective, and it's working perfectly for us.
Great Great and then just secondly.
Speaker 7: Many update on number of sales people.
Any update on number of salespeople from say maybe July refers to today to kind of what youre thinking about for next year.
Speaker 7: Say maybe July refirstse today to kind of what you're thinking about for next year. Yeah, I mean.
Yes.
We have re looked at that we have about three more salespeople than we had last time, we spoke in the field, but we have put six folks in Guatemala, and we're going to put another six people in Guatemala that are basically part of our telemarketing program and we have a much more extended reach because we can call.
Speaker 6: Reluctive that we have about three more sales people than we have last time we spoke in the field, but we have put six vogue
Speaker 6: In Guatemala, and we're going to put another six people in Guatemala that are basically part of our telemarketing program.
Speaker 3: And we have a much more extended reach because we can call a lot more people, as you can imagine, that we can visit in person. So those six people that we've added are bringing us literally thousands of more customer contacts, meaning retailers on a monthly basis. And we're going to double that. We think that's the best way right now to extend our reach to more retailers on a daily basis, although we have grown our number of people actually on the ground at retail by three from second quarter. Great.
All about more people as you can imagine that we can visit in person. So those six people that we've added are bringing us literally thousands of more customer contacts meaning retailers on a monthly basis, and we're going to double that we think that's the best way right now to extend our reach to more retailers on a daily basis, Although we have grown our number of <unk>.
People actually on the ground at retail by three from second quarter.
Great.
Thanks, a lot Bob and team.
Youre welcome.
Yeah.
Speaker 1: Next question is from Sam Silvas from Nathan and Company. Please go ahead.
Next question from <unk> Silva from Needham and company. Please go ahead.
Speaker 8: Great. Thanks, guys. Thanks for taking questions here this morning, and good to see the results.
Great. Thanks, guys.
Thanks for taking the questions here this morning, and good to see the results.
Speaker 8: Just wanted to ask on competition. Are you guys seeing any changes in the competitive dynamics, whether it's on the retailer, digital business, and could you just talk about that a little bit and how that's maybe evolved since last quarter?
Just wanted to ask on competition.
Are you guys seeing any changes in the competitive dynamics, whether it's on the retailer digital business and could you just talk about that a little bit and how that's maybe evolved since last quarter.
Yeah.
Speaker 6: I don't believe there's any real evolution. I think people that have been discounters continue to be discounters. I think
I don't believe Theres any real evolution I think people that had been discounters continue to be discounters I think it's been our approach to it that's really changed I think we've gotten this plan that we put in place that has been very intricate and that we're working every day related to preserving the base.
Speaker 6: It's been our approach to it that's really changed. I think we've gotten this plan that we put in place that has been very intricate and that we're working every day related to preserving the base.
Speaker 6: and almost like redundant to keep saying, but preserving that base, which is a really solid base of wires that are really high margin, and then going out aggressively where we've seen competitive infringement people coming after our wires.
Almost like redundant to keep saying, but preserving that base, which is a really solid base of wires that are really high margin and then going out aggressively where we've seen competitive an infringement people coming after our wires.
Speaker 6: and it's working really well. So I don't think there's a big change. I think, you know, discounters have always been there. They're always going to be there. And over the years, we've held up really, really well consistently.
And it's working really well so I don't think Theres, a big change I think you know discounters have always been there.
He is going to be there and over the years, we've held up really really well consistently with our pricing.
Speaker 6: with our pricing. And now I think we're doing that even better than we have before because of how thinly we're slicing it and the ability to really reverse the trend a bit. Not anywhere near where we're necessarily happy with, but reversing the trend bringing a higher growth than we have projected for third quarter, transactually, but doing that at a higher margin. So to me, that kind of...
And now I think we're doing that even better than we have before because of how thinly we're slicing it and the ability to really reverse the trend a bit not anywhere near where we're necessarily happy with but reversing the trend, bringing a higher growth than we have projected for third quarter transactional, but doing that at a higher margin. So.
To me that kind of is it says if we can apply ourselves properly and the ZIP code by ZIP code level with a rifle shot approach, we can combat against the discounting had retail quite well.
Speaker 6: It says if we can apply ourselves properly and zip code by zip code level with the right push-out approach.
Speaker 6: We can combat against the discounting of retail quite well.
Speaker 6: On the digital side, I'll let Marcelo, would you like to comment on the pricing and digital use?
On the on the digital side.
I'll, let Marcello would you like to comment on the pricing in digital using of course.
Speaker 9: Of course, our pricing has increased significantly combining a better pricing strategy with a more efficient cost management. So for Bob's comment, I'm very confident we are for sure at the top of the profitability versus digital players, which give us the foundation to grow and to have a better return on it. Bye.
Our pricing has increased significantly combining at better prices dropped as you lease up more efficient cost management software Bob's comment I am very confident we are for sure of the top of the roof stability versus destock layers, which gave us the foundation to grow and to have a better return on investment.
<unk>.
Got it that's super helpful color.
Speaker 8: Got it that super real full color. Um, appreciate that. And then.
I appreciate that and then.
Speaker 8: Just a quick follow up, you know, obviously you guys aren't providing any guidance for 24, but I guess is there any, you know, any kind of color you guys could provide, whether it's around, you know, transaction expectations relative to the fourth quarter or third quarter. You know any kind of preliminary thoughts kind of as we head into 24.
Just a quick follow up you, obviously, you guys aren't providing any guidance for 'twenty four but I guess is there any you know.
Any kind of color you guys could provide whether it's around you know transaction expectations relative to the fourth quarter or the third quarter.
Kind of preliminary thoughts kind of as we head into 'twenty four.
Speaker 4: Yeah, I think this is Andrew. Is there anything not at this time? You know, I think that we did mention that we will be doing an investor day that'll be coming together in February , where we'll go through the year-end results and also give a broader picture of our strategy and the financials that'll come behind that. So, not at this point. Yes. Okay. Yeah.
Yeah, I think I think this is anders anything not at this time and I think that we did mention that we will be doing an investor day that'll be coming together in February where we will go through the year end results and also give a broader picture of our strategy in the financials that will come behind that so.
At this point.
Yes, Okay, yes fair enough alright, thanks, guys.
Thank you.
Speaker 1: If you wish to register for questions, please press start of them once.
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Yeah.
Speaker 1: Last question comes from the line of Alex Markraft with Keybank Capital Markets. Please go ahead.
Last question comes from the line of Alex <unk> with Keybanc capital markets. Please go ahead.
Speaker 10: Thank you and thanks for taking my question this morning. Just, you know, there's been a lot of...
Thank you and thanks for taking my questions. This morning.
There's been a lot of commentary on pricing and some of the observations this quarter.
Speaker 10: commentary on pricing and some observations as quarter. I'm just curious to kind of boil it down and maybe I'm oversimplifying it, but if I look at one of the model outputs being revenue per transaction fairly stable sequentially, just curious if you all kind of think about this as the right level for the model. They're just for modeling purposes for the near term considering some of the...
I'm, just curious to kind of to kind of boil it down and maybe I'm oversimplifying it but if I look at one of the model outputs being revenue per transaction fairly stable sequentially. Just curious if you all kind of think about this is the right level for the model just for modeling purposes for that for the near term considering some of the.
Speaker 10: Industry level factors around pricing, the success you've had more recently, and that just generally makes it the business considering. On asking out, I transfer any thoughts on that.
And industry level factors around pricing the success, you've had more recently and that just general mix of the business considering on asking out I transfer any thoughts on that would be helpful.
Yes, I think we believe that we've made headway into being as we've been able to on one side be aggressive to go after incremental wires that it may have been lost to the competition previously we've been really good at making sure that we're maximizing our margins related to our base business and our strong.
Speaker 6: Yeah, I think we believe that we've made headway into being...
Speaker 6: As we've been able to on one side be aggressive to go after incremental wires that may have been lost to the competition previously.
Speaker 6: We've been really good at making sure that we're maximizing our margins related to our base business in our stronghold areas. So I think where we are today is probably a really good view of where we've the revenue per transaction and margins would sit going forward. Obviously that's not guaranteed because we're not guiding on that, but I would tell you that we think that we have a
Hold areas. So I think where we are today is probably a really good view of where the revenue per transaction and margins would sit going forward.
Obviously, that's not guaranteed because we're not guiding on that but I would tell you that we think that we have.
Speaker 6: a good perspective and a good strategy today that should carry us through the near term.
A good perspective and a good a good strategy today that should carry us through the near term.
Speaker 10: Thank you. It's very helpful. And then just one on the product side, thank you for the payroll and GPR comments. But I think last quarter you had mentioned a payroll card upgrade on later this year, just any sort of updates or thoughts or kind of details of what that entails with you.
Thank you that's very helpful. And then just one on the product side. Thank you for the payroll in <unk> comments.
I think last quarter, you had mentioned a payroll card upgrade launch later this year, just any sort of update your thoughts or kind of detailed as to what that entails would be helpful.
Speaker 9: Yeah, the evolution of our payroll is happening. We are about to launch in two weeks completely redesigned a program that connects even more the CAD program with the wire sending product.
Yes, the evolution of our payroll is happening.
We are about to launch in two weeks.
Military redesign program that connects even more data card program with the wire sending drug.
Speaker 9: I think Andrew has mentioned his notes that we are growing this cross-style five times, which is exactly what we are looking for because then it makes an extremely profitable wire and still we make money out of the cards business.
I think Andrew mentioned in his notes that we are growing this cross sell by.
<unk>, which is exactly what we are looking for because then it makes us extremely profitable wire in steel, we make money out of the cards business. So that's the direction. We're going in Q1, we are allowed to the CPI card another huge cross sell opportunity for retail we know that our consumers are unbanked or under.
Speaker 9: So that's the direction we are going. One we allow to the GPI card and other huge cross-hour opportunity for retail. We know that our consumers are on bank it or under-service.
Their service. So these we will bring them to a very extended reality regarding purchases in U S. They can go to E. Commerce. They can go to a subscription business a bunch of services that they don't have access today and we believe that they are heavy users do today or inflation in U S.
Speaker 9: So these will bring them to a very expanded reality to regarding purchases in US. They can go to a commerce, they can go to subscription business, a bunch of services that they don't have access today. And we believe they are head users due to their situation in US.
Great. Thank you.
Okay.
Speaker 1: This concludes our question and answer session. We'd like to turn the conference back over to my Galentine head of Investor Relations for owning closing remarks.
This concludes our question and answer session I would like to turn the conference back over to Mike Gallentine head of Investor Relations for any closing remarks.
Speaker 6: Yeah, actually this is Bob Lissi. Thank you all for tuning in and you're interested in the company. We'll look forward to talking to you all soon. Thanks again, have a great day.
Yeah actually this is Bob Lucy. Thank you all for tuning in and your interest in the company, we'll look forward to talking to you. All soon thanks again have a great day.
Speaker 1: The conference is now concluded. Thank you for attending today's presentation. You may now...
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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Speaker 11: The.
Speaker 11: The P ex.