Q1 2024 Euronet Worldwide Inc Earnings Call

Okay.

Operator: and welcome to the Euronet Worldwide first quarter 2024 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is ready.

Speaker Change: Greetings and welcome to the Euro net worldwide first quarter 2000.

Speaker Change: 'twenty.

Speaker Change: Earnings call.

Speaker Change: At this time all parts.

Speaker Change: Listen only mode.

Speaker Change: After the Speakers' presentation, there'll be a question and answer session.

Speaker Change: To ask a question during the session you will need to press star one on your telephone.

Speaker Change: You will then hear an automated message advising your hand is raised.

Speaker Change: Your question. Please press star one again.

Speaker Change: Please be advised that today's conference is being recorded.

Operator: To restore your question, please press star one one again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce your host, Mr. Scott Claassen, General Counsel for Euronet Worldwide. Thank you. Mr. Claassen, you may begin.

Speaker Change: It is now my pleasure to introduce your host Mr. Scott.

Scott: General Counsel for you on that worldwide. Thank you Mr. Carlson you may begin.

Scott D. Claassen: Thank you. Good morning, everyone, and welcome to Euronet's first quarter 2024 earnings conference call. On the call today, we have Mike Brown, our chairman and CEO, and Rick Weller, our CFO. Before we begin, I need to call your attention to the forward-looking statements disclaimer on the second slide of the PowerPoint presentation we will be making today. Statements made on this call that concern Euronet's or its management's intentions, expectations, or predictions of future performance are forward-looking statements.

Scott: Thank you good morning, everyone and welcome to you on that first quarter 2024 earnings conference call.

Scott: On the call today, we have Mike Brown, our chairman and CEO and Rick Weller our CFO.

Scott D. Claassen: Euronet's actual results may vary materially from those anticipated in these forward-looking statements as a result of a number of factors that are listed on the second slide of our presentation. In addition, the PowerPoint presentation includes the reconciliation of the non-GAAP financial measures we'll be using during the call to their most comparable GAAP measures. Now, I'll turn the call over to our CFO, Rick Weller. Thank you, Scott.

Scott: Before we begin I need to call your attention to the forward looking statement disclaimer on the second slide of the Powerpoint presentation that we will be making today state.

Scott: Statements made on this call that concern you or <unk> or its management's intentions expectations or predictions of future performance are forward looking statements.

Scott: <unk> actual results may vary materially from those anticipated in these forward looking statements as a result of a number of factors that are listed on the second slide of our presentation.

Scott: In addition, the Powerpoint presentation includes a reconciliation of the non-GAAP financial measures, we'll be using during the call to their most comparable GAAP measure.

Scott: Now I will turn the call over to our CFO Rick Weller.

Rick L. Weller: Good morning, and thank you to everyone joining us today. I will begin my comments on slide five. For the first quarter, we delivered revenue of $857 million, adjusted operating income of $63 million, and adjusted EBITDA of $109 million, a record first quarter across all three metrics. These results were made possible by contributions from each of the segments, but with a particularly strong earnings contribution from the EFT segment due to an increase in international transactions, growth of our merchant services business, and strategic investments in new markets that delivered double-digit growth over the prior year.

Rick L. Weller: Thank you Scott.

Rick L. Weller: Good morning, and thank you to everyone joining us today.

Rick L. Weller: I'll begin my comments on slide five.

Rick L. Weller: For the first quarter, we delivered revenue of $857 million.

Rick L. Weller: Adjusted operating income of $63 million adjusted EBITDA of $109 million a record first quarter across all three metrics.

Rick L. Weller: These results were made possible by contributions from each of the segments, but with a particularly strong earnings contribution from the <unk> segment due to an increase in international transactions growth of our merchant services business and strategic investments in new markets that delivered.

Rick L. Weller: Double digit growth over the prior year.

Rick L. Weller: We're very pleased that the business delivered a record-breaking first quarter adjusted EPS of $1.28, a 47% increase over the prior year's 87 cents. We were able to deliver this strong earnings growth due to our continued focus on expanding the business in new and existing markets. Moreover, we are pleased that we were able to deliver results that exceeded analyst expectations and consensus expectations for both revenue and adjusted EPS in the first quarter following our change from quarterly to annual adjusted EPS guidance.

Rick L. Weller: We are very pleased that the business delivered a record breaking first quarter adjusted EPS of $1, 28% to 47% increase over the prior year of 87.

Rick L. Weller: We were able to deliver this strong earnings growth due to our continued focus on expanding the business in new and existing markets, adding more products and continued investments in our industry, leading technology across all three segments.

Rick L. Weller: Moreover, we are pleased that we were able to deliver results, which exceeded analyst expectations consensus expectations for both revenue and adjusted EPS in the first quarter following our change from quarterly to annual adjusted EPS guidance.

Rick L. Weller: And before someone says the favorable earnings all came from taxes... I would like to point out that approximately $4.5 million, or approximately $0.10 per share, benefit was realized from the resolution of tax matters and $3 million, or approximately $0.05 per share, from the recovery of a duty fee paid last year. Excluding these benefits from the $1.28 per share, Proforma adjusted EPS of $1.13 nicely exceeded consensus estimates.

Rick L. Weller: And before someone says the favorable earnings all came from taxes.

Rick L. Weller: I would like to point out that approximately $4 5 million or approximately <unk> <unk> per share benefit was realized from the resolution of tax matters and $3 million or approximately five cents per share from the recovery of a duty fee paid last year.

Rick L. Weller: Excluding these benefits from the $1 28 per share pro forma adjusted EPS of $1 13 nicely exceeded consensus estimates.

Rick L. Weller: The pro forma $1.13 per share represents a 30% growth over the first quarter last year. Unfavorable pro forma $1.13 per share compared to Bloomberg's posting of consensus-adjusted EPS of approximately $1.04 was the result of more revenue and stronger margins. Needless to say, this strong start to the first part of the year strengthens our competence in the 10 to 15% annual adjusted EPS growth guidance range we provided for 2024. Nothing like starting the year with the wind at your back. Slide 6, presents a summary of our balance sheet compared to the prior quarter.

Rick L. Weller: Pro forma dollars 13 per share represents a 30% growth over the first quarter last year.

Rick L. Weller: This favorable pro forma $1 13 per share compared to bloomberg's posting of consensus adjusted EPS of approximately $1. Four was the result of more revenue and stronger margins.

Rick L. Weller: Needless to say this strong start to the first strong start to the first part of the year strengthens our confidence in the 10% to 15% annual adjusted EPS growth guidance range, we provided for 2024.

Rick L. Weller: Nothing like starting the year with the wind at your back.

Rick L. Weller: Slide six presents a summary of our balance sheet compared to the prior quarter.

Rick L. Weller: As you can see, we ended the quarter with a relatively small increase in net debt, which was the combined result of the generation of cash from operations, the use of cash for the Infintium acquisition, and more cash placed in the ATMs to meet seasonal demand. And overall, our net debt leverage remains relatively conservative at about one times EBITDA. Turning to the next slide, slide seven, our results. We present our results on an as-reported basis. On a comparative basis, FX translation didn't produce a lot of net differences year over year, but let's go to slide 8 and talk about our results on a constant currency basis. I'm on slide 8 now.

Rick L. Weller: As you can see we ended the quarter with a relatively small increase in net debt, which was the combined result of the generation of cash from operations. The use of cash for the <unk> acquisition and more cash placed in the Atms to meet seasonal dip.

Rick L. Weller: Ma'am.

Rick L. Weller: And overall, our net debt leverage remains relatively conservative at about one times EBITDA.

Rick L. Weller: Turning to the next slide slide seven our results.

Rick L. Weller: Present, our results on an as reported basis.

Rick L. Weller: On a comparative basis FX translation didnt produce a lot of net differences year over year, but let's go to slide eight and talk about our results on a constant currency basis.

Speaker Change: I'm on slide eight now.

Rick L. Weller: Building on the momentum from last year, we are pleased to start 2024 with good consolidated revenue and strong earnings results. Our set all segments played a role in the quarter. Starting with our EFT segment, revenue grew 12%, adjusted operating income grew 220%, and adjusted EBITDA grew 54% when compared to the prior year. This notable growth was fueled by the rise in both domestic and international cash withdrawal transactions, double-digit growth in our merchant services business, and further expansion into new markets.

Speaker Change: Building on the momentum from last year. We are pleased to start 2024 with good consolidated revenue and strong earnings results. Our set all segments played a role in the quarter.

Rick L. Weller: Starting with our <unk> segment revenue grew 12% adjusted operating income grew 220% and adjusted EBITDA grew 54% when compared to prior year.

Rick L. Weller: Notable growth was fueled by the rise in both domestic and international cash withdrawal transactions double digit growth in our merchant services business and further expansion into new markets operating margins expanded nicely due to revenue growth comp.

Rick L. Weller: Operating margins expanded nicely due to revenue growth, complemented by effective cost management and the de-installation of loss-making ATMs in the fourth and first quarters. ePay continued its Constant Currency Revenue Growth, at 8% with consistent revenue and profit per transaction, driven by continued growth in both the digital media and mobile sectors, together with its push to expand in new markets. To that end, investments in product and geographical expansion have had a tempering effect on earnings growth, where we can see EBITDA and adjusted and operating income come down by about two to three percent.

Rick L. Weller: <unk> by effective cost management, and the installation of lossmaking Atms in the fourth and first quarters.

Rick L. Weller: <unk> continued its.

Rick L. Weller: Constant currency revenue growth.

Rick L. Weller: At 8% with constant.

Rick L. Weller: Consistent revenue and profit per transaction driven by continued growth in both digital media and mobile sectors together with its push into.

Rick L. Weller: Push to expand in new markets.

Rick L. Weller: To that end investments in product and geographical expansion have had a tempering effect on earnings growth, where we can see EBITDA and adjusted and operating income come down by about 2% to 3%. The <unk> team is investing resources to develop and print.

Rick L. Weller: The ePay team is investing resources to develop and promote new products and solutions to supplement the core ePay business for sustainable growth in the future, given EPA's past success in achieving growth while transforming the product mix from a predominantly mobile-only business to a mix of branded payment content. I expect EPA's strategy... of introducing its own products and solutions, while also expanding geographically and growing the core business, to restore ePay's business to the earnings growth trajectory it has historically delivered.

Rick L. Weller: New products and solutions to.

Rick L. Weller: To supplement the core <unk> business for sustainable growth in the future give.

Rick L. Weller: Given <unk> past success and achieving growth, while transforming the product mix from a predominantly mobile only business to a mix of branded payment content.

Rick L. Weller: I expect <unk> strategy.

Rick L. Weller: Of introducing its own products and solutions, while also expanding geographically and growing the core business to restore <unk> business to the earnings growth trajectory. It has historically delivered.

Rick L. Weller: Money Transfer Revenue, Operating Income, and Adjusted EBITDA grew by 7, 17, and 10%, respectively. The 7% growth in revenue was primarily driven by nearly double-digit growth in cross-border transactions, offset by a decrease in intra-U.S. transactions. Direct-to-consumer digital transactions increased by 23 percent, reflecting strong consumer demand for digital products. Money Transfer revenue and gross profit per transaction were very stable and consistent with the prior year.

Rick L. Weller: Money transfer revenue operating income and adjusted EBITDA grew by 717 and 10% respectively.

Rick L. Weller: The 7% growth in revenue was primarily driven by nearly double digit growth in cross border transactions.

Rick L. Weller: Offsetting by a decrease in intra U S transactions.

Rick L. Weller: Direct to consumer digital transactions increased by 23%.

Rick L. Weller: Reflecting strong consumer demand for digital product.

Rick L. Weller: Money transfer revenue and gross profit per trends transaction, we're very stable and consistent with the prior year.

Rick L. Weller: In addition to the good revenue growth, the money transfer team further improved its operating margins by approximately 60 bps over last year through scale and effective cost management. In summary, these meet and beat first quarter results further strengthen our confidence in the 10 to 15 percent earnings growth expectation we have for 2024. You might say, with a strong first quarter, why not increase your 10 to 15 percent range? As we previously said, we want the investment community to be confident in our long-term earnings growth. Remember, we found that the S&P 500 was getting twice the valuation as Euronet, yet delivering half the earnings.

Rick L. Weller: In addition to the good revenue growth the money transfer team further improved its operating margins by approximately approximately 60 bps over last year through scale and effective cost management.

Rick L. Weller: In summary, these meet and beat first quarter results further strengthen our confidence in the 10% to 15% earnings growth expectation, we have for 2024.

Speaker Change: You might say with a strong first quarter why not increase your 10% to 15% range.

Rick L. Weller: As we previously said, we want the investment community to be confident in our long term earnings growth.

Rick L. Weller: Remember, we found that the S&P 500 was getting twice the valuation as euro net yet delivering half the earnings.

Rick L. Weller: We will consistently be aiming for earnings in excess of the rank, but we want you to have confidence in the consistency of our long-range growth expectations, similar to our historical growth performance. So by retaining our growth range of 10% to 15%, it doesn't mean that we're expecting deceleration. It means we want you to be confident in our delivery of long-term earnings growth. With that said, I'll turn it over to Mike.

Rick L. Weller: We will consistently be aiming.

Rick L. Weller: For earnings in excess of the range, but we want you to have confidence in the consistency of our long range growth expectations.

Rick L. Weller: Similar to our historical growth expect performance.

Rick L. Weller: So by retaining our growth range of 10% to 15%.

Rick L. Weller: It doesn't mean that we're expecting deceleration.

Rick L. Weller: It means we want you to be confident in our delivery of long term earnings growth.

Rick L. Weller: With that said I'll turn it over to Mike.

Michael J. Brown: Thank you, Rick, and thank you, everyone, for joining us today. I'll begin my comments on slide number 10. Before I discuss the quarter, I wanted to talk about the state of our business. As you can see from the slide on the left.

Michael J. Brown: Thank you Rick.

Michael J. Brown: And thank you everyone for joining us today.

Michael J. Brown: I'll begin my comments on slide number 10.

Michael J. Brown: Before I discuss the quarter I wanted to talk about the state of our business.

Michael J. Brown: You can see from the slide at the left.

Michael J. Brown: Our revenue and earnings trends reflect double digit adjusted EBITDA growth over the past three years not much different than our 10 to 20 year compounded annual growth rate.

Michael J. Brown: Our revenue and earnings trends reflect double-digit adjusted EBITDA growth over the past three years, not much different from our 10- to 20-year compounded annual growth rate. Both you and I struggled through the past COVID years. COVID's behind us. Let's leave it there and focus on the future. And what about the future? We shared with you our confidence in growing our earnings 10 to 15% per year, similar to our trailing 10 and 20-year results.

Michael J. Brown: Both you and I struggled through the past Covid years, Covid is behind US, let's leave it there and focus on the future.

Michael J. Brown: And what about the future we shared with you our confidence in growing our earnings 10% to 15% per year similar to our trailing and and 20 year result.

Michael J. Brown: And with such a strong start to the year, I can't help but be more and more confident with our expectations for our growth. Also, note the directional movement of the red portions of the lines in the chart.

Michael J. Brown: And with such a strong start to the year I can't help but be more and more confident with our expectations about our growth.

Michael J. Brown: Also note the directional movement of the Red portion of portions of the lines on the chart the trend of the past three years looks a lot like the trends for the three years prior to Covid I believe these trends speak directly to the consistency of our year over year result.

Michael J. Brown: The trend of the past three years looks a lot like the trends for the three years prior to COVID. I believe these trends speak directly to the consistency of our year-over-year results. We are focused on growth, powered by our best-in-class REN technology platform, supporting innovative product development and our world-leading cross-border dandelion payments network. We are busy entering new markets, expanding our merchant services business, expanding our digital offerings, and growing our network. And, as you can see, the strategy is working.

Michael J. Brown: We are focused on growth powered by our best in class ran technology platform supporting innovative product development and our world, leading cross border Dandelion Payment's network we.

Michael J. Brown: We are busy entering into new markets, expanding our merchant services business, expanding our digital offerings and growing our network.

Michael J. Brown: As we have continued to grow, we are very excited about the future. Business is good. So let's dig into those first quarter results.

Michael J. Brown: And as you can see this strategy is working as we have continued to grow.

Michael J. Brown: We're very excited about the future business is good.

Michael J. Brown: Egg into those first quarter results.

Michael J. Brown: I'm excited that we delivered a record first quarter across all consolidated financial metrics, highlighted by adjusted EPS of $1.28, a 47% increase compared to 87 cents last year. As Rick mentioned, we had some non-recurring items that benefited our results, but no matter how you analyze it, we delivered a record first quarter with or without them. What a great start to a new year.

Michael J. Brown: I am excited that we delivered a record first quarter across all consolidated financial metrics highlighted by.

Michael J. Brown: Adjusted EPS of $1, 28% to 47%.

Michael J. Brown: Increase compared to 87 last year as Rick mentioned, we had some nonrecurring items that benefited our results, but no matter. How you analyze that we delivered a record first quarter with or without them.

Michael J. Brown: What a great start to the first to the new year.

Michael J. Brown: How do we continue to grow year over year? We grow by following a proven model with our focus on, number one, continuing to grow one of our greatest assets, our network, our dandelion network. Number two, utilizing our best-in-class technology platform powered by REN to deliver products and solutions that our customers trust.

Michael J. Brown: How do we continue to grow over year over year, and we grow by following a proven model with our focus on number one continuing to grow one of our greatest assets our network. Our data line network number two utilizing our best in class technology platform powered by ran to deliver product and.

Michael J. Brown: And that our customers track three by continuing to turn our internally developed technologies and products, which include the <unk> platform in the E&P segment. The Dandelion network in the money transfer segment and the conductor and skylight product in the <unk> segment.

Michael J. Brown: By continuing to turn our internally developed technologies into products, which include the REM platform in the EFT segment, the Dandelion Network in the money transfer segment, and the Conductor and Skylight products in the ePay segment. Number four, by expanding our geographic reach, which we've been doing for a long, long time. And number five, identifying strategic acquisitions and managing our costs. You will see several examples of these as we go through the first quarter highlights. Let's go on to slide number 11, and I will update you on the status of the market conditions that impact our business. Slide 11.

Michael J. Brown: Number four by expanding our geographic rates, which we've been doing for a long long time.

Michael J. Brown: And number five identifying strategic acquisitions and managing our cost you will see several examples of this as we go through the first quarter highlights.

Michael J. Brown: Let's go on to slide number 11, and I will update you on the status of the market conditions that impact our business.

Michael J. Brown: As we move further into 2024, I see encouraging trends for the earnings outlook for the EFT segment. You might remember that in the summer of 2023, we saw inflation in Europe taking a bite out of the spend on holiday travel. 2023's reduced spend per tourist was a surprise to us, just as it was to the credit and debit card acquirers throughout Europe. What you can see from this graph is the easing of inflation and wage growth this year and projected forward.

Michael J. Brown: Slide 11, as we move further into 2024, I see encouraging trends towards the earnings outlook for the <unk> segment you.

Michael J. Brown: You might remember that in the summer of 2023, we saw inflation in Europe, taking a bite out of the spin for holiday travel.

Michael J. Brown: 2020, threes reduced spend per tourist whether it's the <unk>.

Michael J. Brown: Right.

Michael J. Brown: Just as it was to the credit and debit card acquires throughout Europe.

Michael J. Brown: What you can see by this graph is the easing of inflation and wage growth this year and projected forward.

Michael J. Brown: And the fact is, none of us know exactly what this summer will bring, so we have to temper our enthusiasm a bit, but the data points are all pointing north. You can see that wages continue to grow, while inflation has continued to decline.

Michael J. Brown: And the fact is none of us know exactly what this summer will bring so we have to temporary enthusiasm a bit but the data points are all pointing north <unk>.

Michael J. Brown: You can see that wages continue to grow while inflation has continued to decline.

Michael J. Brown: Coupled with more money in holiday travelers' pockets, we anticipate an optimistic outlook for travel and travel spending. Along with this trend in wage growth and easing of inflation, we have seen several positive travel reports predicting growth in international travel in the spring and summer travel seasons. Let me share with you some of the key market indicators recently published. Delta and United, and most airlines around the world, confirm that they expect record second-quarter revenue thanks to demand for spring and summer travel.

Michael J. Brown: Pulled with more money in holiday travelers pockets.

Michael J. Brown: We anticipate an optimistic outlook for travel and travel spend.

Michael J. Brown: Along with this trend and wage growth and easing of inflation. We are seeing several positive travel reports predicting growth in international travel in the spring and summer travel season, Let me share with you some of the key market integrate indicators recently published Delta and United and most airlines.

Michael J. Brown: Around the world confirm that they expect a record second quarter revenue, thanks to demand for spring and summer travel.

Michael J. Brown: Heathrow, Europe's busiest airport, reported a record first quarter with passengers up nine and a half percent compared to the prior year and, in fact, updated its outlook for the summer holiday season, expecting the busiest passenger count ever.

Michael J. Brown: Heathrow Europe's busiest airport reported a record first quarter with passengers up nine 5% compared to the prior year and in fact updated its outlook for the summer holiday season, expecting the busiest passenger count ever Phi.

Michael J. Brown: Finally, according to the World Tourism Organization, international tourism is expected to fully recover to pre-pandemic levels or higher in 2024, with initial estimates pointing to 2% growth above 2019 levels. In summary, key indicators now point to the easing of inflation, continued wage growth, and an anticipated increase in travel during the summer holiday season. Finally, in an update to the Consumer Behavior Survey we shared with you during our fourth quarter call, 75% of Europeans now surveyed said that they would increase or maintain their travel budgets in 2024, an increase from 71% in the same survey a few months ago. All the data points look good, and we're encouraged. We're cautiously optimistic, but let's not overshoot.

Michael J. Brown: Finally, according to the World turns the Marketization International Tourism is expected to fully recover to pre pandemic levels are higher in 2024 with initial estimates pointing to 2% growth above 2019 levels.

Michael J. Brown: In summary, key indicators now point to the easing of inflation continued wage growth and an anticipated increase in travel during the summer holiday season.

Michael J. Brown: Finally in an update to the consumer behavior survey, we shared with you during our fourth quarter call, 75% of European now surveyed said that they would increase or maintain their travel budgets in 2024, an increase from 71% in the same survey a few.

Michael J. Brown: <unk> ago.

Michael J. Brown: All of the data points look good and we're encouraged we're cautiously optimistic but lets not overshoot, we're focused on execution and leveraging our diverse and significant opportunities with this great start to the year, we feel good about the direction. So let's move on to slide number 12, and we'll talk to you about the FTE highlights.

Michael J. Brown: We're focused on execution and leveraging our diverse and significant opportunities. With this great start to the year, we feel good about the direction. So let's move on to slide number 12, and we'll talk to you about the EFT highlights.

Michael J. Brown: Before we discuss the quarterly highlights, though, of U of T, I'd like to highlight the driving factors behind our growth in this segment. First and foremost, the continued growth of our Merchant Services business. Since the acquisition of this business in March of 2022, we have more than doubled the operating income and continue to grow. Additionally, our ATM Optimization Initiative, as discussed in the previous quarter, has resulted in improved margins, and we expect to see margin improvement for the remainder of the year.

Speaker Change: Slide 12, before we discuss the quarterly highlights, though I would like to highlight the driving factors behind our growth in this segment first and foremost the continued growth of our merchant services business.

Speaker Change: Since the acquisition of this business in March of 2022, we have more than doubled the operating income and continue to grow. Additionally, our ATM op domain with our ATM optimization initiative as discussed in the previous quarter. It has resulted in improved margins and we expect to see margin.

Speaker Change: Improvement for the remainder of the year lastly, our ongoing expansion into new countries contributed to our growth we have realized success in several new markets around the globe investments, we made during the pandemic and over the last few years are paying off very well in 2024 now.

Michael J. Brown: Lastly, our ongoing expansion into new countries contributed to our growth. We have realized success in several new markets around the globe. Investments we made during the pandemic and over the last few years are paying off very well in 2024. Now, a few examples of what contributed to the quarterly results. We discussed the merchant services business as a key strategic acquisition. So how did it perform in the first quarter of 2024?

Speaker Change: Now a few examples of what contributed to the quarterly results.

Speaker Change: We discussed the merchant services business is a key strategic acquisition. So how did it perform in the first quarter 2024, well, let me tell Ya EBITDA grew nearly 40% compared to the prior year first quarter and this is a great example of how our management team continues to capitalize on strategic growth.

Michael J. Brown: Well, let me tell you EVADOT grew nearly 40 percent compared to the prior year's first quarter. This is a great example of how our management team continues to capitalize on strategic growth opportunities. We have been adding new ATMs and new markets outside of Europe over the last few years. Our largest of these is the Philippines.

Speaker Change: Opportunities.

Speaker Change: We're adding new Atms in new markets outside of Europe over the last few years, our largest of these is the Philippines. We opened the Philippines in late 2019, and we saw very impressive results until Covid hit we didn't believe that covered would last forever. So we grew our ATM estate, even with weak travel numbers.

Michael J. Brown: We opened the Philippines in late 2019, and we saw very impressive results until COVID hit. We didn't believe that COVID would last forever, so we grew our ATM estate even with weak travel numbers through 2023. Now that travel has seen a significant recovery there, our first quarter 2024 EVDA grew 151% compared to the first quarter of 2023. This is another example of a strategic investment that is paying off in 2024. Beyond the Philippines, there have been four other countries that we have opened in outside of Europe in the last two years.

Speaker Change: Through 2023.

Speaker Change: Now that travel has seen a significant recovery there our first quarter 2024, EBITDA grew 151% compared to the first quarter of 2023.

Speaker Change: This is another example of a strategic investment that is paying off in 2024.

Speaker Change: The Philippines, there have been four other countries that we have opened outside of Europe in the last two years.

Michael J. Brown: Getting away from the tourist-focused ATMs, during the quarter, we also signed and launched some exciting new agreements. In Poland, we secured a network participation agreement with PKO Bank, the second largest bank in Poland with 3.2 million active customers.

Speaker Change: Getting away from the tourist focused Atms during the quarter, we also signed and launched some exciting new agreement.

Speaker Change: In Poland, we secured a network participation agreement with PK out bank in Poland. <unk> Bank is the second largest bank in Poland with $3 2 million active customers. This agreement enables the bank's customers to deposit cash at our network.

Michael J. Brown: This agreement enables the bank's customers to deposit cash in our network. Taking a page from Poland's successful Cash Deposit Network, in Romania, our agreement with Raiffeisen Bank was launched this quarter, providing additional flexibility for cash deposits for merchants and consumers alike. In Greece, our merchant services business, aided by certain government stipulations, experienced significant growth with the signing of contracts with 19,000 merchants with POS terminals and another 16,000 merchants with soft POS solutions.

Speaker Change: <unk> taken a page from Poland successful cash deposit network in Romania, Our agreement with <unk> Bank was launched this quarter, providing additional flexibility for cash deposits for merchants and consumers alike.

Speaker Change: In Greece, our merchant services business aided by certain government stipulations experienced significant growth with the signing of contracts with 19000 merchants with Pos terminals and another 16000 merchants with soft Pos solutions. Additionally, we are excited to announce the part.

Michael J. Brown: Additionally, we are excited to announce a partnership agreement with Soft1 Technologies to provide integrated merchant acquiring solutions in Greece. Soft1, one of the largest business software companies in Southeastern Europe, will integrate its leading brands and products with Euronet's merchant acquiring platform.

Speaker Change: <unk> agreement with soft one technologies to provide integrated merchant acquiring solutions and grief soft one one of the largest business software companies in southeastern Europe, well integrated leading brands and products with <unk> merchant acquiring platform the combined customer base exceeds 200.

Michael J. Brown: The combined customer base exceeds 280,000 businesses, and we expect that to increase. Where are we with our ATM expansion this year? We remain on track to deploy between 3,000 and 3,500 new ATMs in 2024. Moreover, we're making progress in extracting maximum value from our existing network and strategically relocating ATMs to new locations. This effort contributed to our improved margins in the first quarter, and we expect it will continue through the year. This quarter reaffirms our global expansion strategy, including strengthening our presence in and existing markets. And I'm excited about what the rest of the year holds for us.

Speaker Change: 80000 businesses, and we expect that to increase.

Speaker Change: Where are we with our ATM expansion. This year, we remain on track to deploy between 30000 3500, new Atms in 2024. Moreover.

Speaker Change: Moreover.

Speaker Change: Excuse me, we're making progress in extracting maximum value from our existing network and strategically relocating Atms the new locations.

Speaker Change: This effort contributed to our improved margins in the first quarter and we expect it will continue through the year.

Speaker Change: This quarter reaffirms, our global expansion strategy, including strengthening our presence in existing market.

Speaker Change: And I am excited about what the rest of the year holds for us.

Michael J. Brown: Towards the beginning of today's presentation, I gave a lot of credit for Euronet's financial success to our technology platform. We built the most versatile, real-time POS and ATM switching system to allow us to expand rapidly. Much like what Amazon did with AWS, which was originally developed to drive their own business worldwide, and it's now sold as a separate product, our technology platform that we now call REN was built to allow our ATM segment to expand even faster. Wren is the first modern platform that is database independent, platform independent, and microservices architected.

Speaker Change: Towards the beginning of today's presentation I gave a lot of credit for your net financial success to our technology platform. We built the most versatile real time pass and ATM switching system to allow us to expand rapidly much like what Amazon did with AWS, which was originally develop.

Speaker Change: To drive their own business worldwide and is now sold as a separate product or technology platform that we now call ran was built to allow our ATM segment to expand even faster.

Speaker Change: <unk> is the first modern platform that is database independent platform independent and micro services architecture, and just like Amazon did with AWS, we now have product ties our own platform for sale around the world. So with that let's move on to the next slide for an update on our rent payments platform.

Michael J. Brown: And just like Amazon did with AWS, we now have productized our own platform for sale around the world. So with that, let's move on to the next slide for an update on our Wren Payments platform. Slide number 13.

Speaker Change: One.

Michael J. Brown: During the first quarter, we continued to execute our go-to-market strategy for rent. Rent is a proven product we trust to run our payment processing businesses and a product with many different use cases that we sell into the market. Our customers include banks, fintechs, and central bank infrastructures, providing them with a product that is adaptable to future technological changes and challenges. To complement the REN product offering, we acquired Infintium Holdings in Singapore in the first quarter. Infintium is a market leader in providing risk management and payment authentication services, such as 3D Secure, to prevent fraud in e-commerce or card-not-present transactions.

Speaker Change: Slide number 13.

Speaker Change: During the first quarter, we continued to execute our go to market strategy for rent.

Speaker Change: <unk> is a proven product we track to run our payment processing businesses and a product with many different use cases that we sell into the market. Our customers include banks, Fintech and central bank infrastructures, providing them with a product that is adaptable to future technology changes and challenge.

Speaker Change: Yeah.

Speaker Change: To complement the <unk> product offering we acquired in <unk> holdings in Singapore in the first quarter and <unk> as a market leader in providing risk management and payment authentication services, such as three D secure to prevent fraud and e-commerce or card not present transactions.

Michael J. Brown: In addition to this service, this acquisition also expands the addressable market of RAN to include online acquirers and merchants that require a modern, cloud-native online payment gateway by integrating the Infintium gateway into the RAN acquiring host, which allows us to offer an end-to-end service. We are working on the technical integration and are excited about the expanded capabilities of these products for our customers and prospects. Now, let's discuss our market wins during the first quarter.

Speaker Change: In addition to this service. This acquisition also expands the addressable market of Rand to include online acquirers and merchants that require a modern cloud native online payment gateway by integrating the <unk> gateway into the ran acquiring house, which allows us to offer an end to end service we are worth.

Speaker Change: <unk> on the technical integration and are excited about the expanded capabilities of these products for our customers and prospects.

Speaker Change: Now, let's discuss our market wins during the first quarter as I mentioned in the previous quarter. Our go to market strategy has been focused on Asia Africa, and South America.

Michael J. Brown: As mentioned in the previous quarter, our go-to-market strategy has been focused on Asia, Africa, and South America. In the first quarter, we signed a deal with Bank Raya, which is a digital bank subsidiary of BRI, the largest state-owned bank in Indonesia.

Speaker Change: In the first quarter, we signed a deal with bank wrap which is a digital bank subsidiary of <unk> The largest state owned bank in Indonesia.

Michael J. Brown: And to remind you, these digital banks are setting up their payment stacks from scratch, and they are unencumbered by legacy technology. Accordingly, their preference is for modern technology like REN over legacy payment applications. With this win, we added another digital bank in Asia. We launched and went live with two new customer relationships in the first quarter. First, we launched Solfin in Costa Rica, a program manager that issues cards to corporations and businesses for use cases like payroll and expense management.

Speaker Change: And to remind you. These digital banks are setting up their payment stack from scratch and they are unencumbered with legacy technology. Accordingly, their preference is a modern technology like ran over legacy payment application with this win we added another bid digital bank in Asia with <unk>.

Speaker Change: We went live with two new customer relationships in the first quarter first we launched <unk>.

Speaker Change: <unk> been in Costa Rica, a program manager that issued cards to corporates and businesses for users use cases like payroll and expense management second we launched a debit card program in Ecuador for our first credit card gaining customer as both sponsor and issuer. We are excited about the future of rent and <unk>.

Michael J. Brown: Second, we launched a debit card program in Ecuador for our first credit card union customer as both sponsor and issuer. We are excited about the future of RENT, and we will continue to enhance the product offering through continued development and possibly successful acquisitions like Infintium. RENT allows us to help fintechs and banks modernize and adapt to the changes in the payment marketplace. Let's recap our EFT segment. What a quarter for EFT!

Speaker Change: We will continue to enhance the product offering through continued development and possibly successful acquisitions like <unk>. Cynthia ran allows us to help <unk> and banks modernize and adapt to the changes in the payment marketplace lesser.

Speaker Change: Let's recap our ft segment, what a corner for your ft.

Michael J. Brown: What has driven our growth this quarter? First, the strength of our EFT segment. Second, our REN technology platform, as I've said before.

Speaker Change: What has driven our growth this quarter first it's the strength of our <unk> segment.

Speaker Change: Our strength is our Ren technology platform as I've said before ran not only powers our ft businesses, but it's a product that we are successfully selling in the market.

Michael J. Brown: REN not only powers our EFT businesses, but it's a product that we are successfully selling in the market. Second, we continue to grow our merchant services business by nearly 40% compared to the prior year. Third, we have expanded our ATMs into new countries. And lastly, we continue to optimize our ATM network, which improves our margin. As we conclude our discussions on EFT, let me remind you that we achieved record first-quarter results. While we must wait and see what tourism looks like for the summer, it's hard not to get excited about these results, together with the positive travel data. Now, let's discuss our EPAY segment activities for the quarter. Next slide, please.

Speaker Change: We continue to grow our merchant services business by nearly 40% compared to prior year third we have expanded our Atms into new countries and lastly, we continue to optimize our ATM network, which improves our margins as we conclude our discussion of <unk>. Let me remind you we achieved record first quarter results.

Speaker Change: While we must wait and see what the tourism looks like for the summer it's hard not to get excited about these results together with a positive travel data now.

Speaker Change: Now, let's discuss our ipe segment activity for the quarter next slide please.

Michael J. Brown: From our early beginnings of converting prepaid mobile scratch cards to digital pens, to our diversification from prepaid mobile airtime distribution to processing of third-party branded content, ePay has always been a pioneer in the rapidly changing payments landscape. Our success is made possible because ePay is built on a modern technology platform. This platform allows us to remain nimble to changes in the payments environment, thereby allowing us to help our partners deliver their products in more meaningful and unique ways in new and existing markets around the world.

Speaker Change: From our early beginnings of converting prepaid mobile scratch cards to digital pins to revert to our diversification from prepaid mobile airtime distribution to processing.

Speaker Change: Third party branded content ebay has always been a pioneer in the rapidly changing payments landscape. Our success is made possible because ebay is built on a modern technology platform. This platform allows us to remain nimble to changes in the payments environment, thereby allowing us to help our partners.

Speaker Change: <unk> deliver their product and more meaningful in unique ways in new and existing markets around the world.

Michael J. Brown: This quarter, you can see our continued geographic expansion into two new exciting markets. First, we launched Google Play Credits in Vietnam, a country where Android-based phones compose 65% of the market. With nearly 100 million people, Vietnam ranks in the top three of gaming revenue in Southeast Asia, and we believe it is significantly underserved. We have also expanded our Google Play distribution into Japan, the third-largest gaming market in the world. Most distribution in Japan is currently done through physical retail outlets.

Speaker Change: This quarter you can see our continued geographic expansion into two new exciting markets first we launched Google play credit than to Vietnam, a country, where Android based phones composed 65% of the market with nearly a 100 million people Vietnam ranked in the top three of gaming gaming room.

Speaker Change: Revenue in Southeast Asia, and we believe it is significantly underserved. We also expanded our Google play distribution ended Japan, the third largest gaming market in the world. Most distribution in Japan is currently done through physical retail we have identified a large digital partner to deliver.

Speaker Change: Google play credits electronically.

Michael J. Brown: We have identified a large digital partner to deliver Google Play credits electronically. These developments squarely establish us in two significant Asian markets this quarter. Also in the first quarter, we signed an agreement with SumUp, a global financial technology company headquartered in the UK that offers payment solutions to over 3.5 million merchants across 30 markets worldwide. SumUp will leverage ePay's conductor platform to provide closed-loop issuing and processing to its merchant base. Additionally, we launched Heidi Card, ePay's proprietary two-step gift card that provides more consumer choice across our retail network in Turkey.

Speaker Change: These developments squarely establish us in two significant Asian markets this quarter.

Speaker Change: Also in the first quarter, we signed an agreement with some up a global financial Technology company headquartered in the UK that offers payment solutions to over $3 5 million merchants across 30 markets worldwide. Some up will leverage <unk> conductor platform to provide closed loop issuing and processing to their mark.

Speaker Change: Chip base. Additionally.

Speaker Change: Additionally, we launched.

Speaker Change: Hi, D card <unk> proprietary two step gift card that provides more consumer choice across our retail network in Turkey.

Michael J. Brown: Both of these agreements were won because of EPA's flexible and scalable technology platform. Similar to how we productized our REB platform, we have done the same with our state-of-the-art compliance solution, Skylight. This quarter, we launched Skylight for World Bank Notes Exchange, a full-service international currency exchange provider based in California. Skylight modernizes the often cumbersome process of monitoring and investigation of financial transactions for money services businesses. And finally, as many of you know, Paytm in India ran into a regulatory issue that impacted its ability to onboard new customers and operate its stored value wallet.

Speaker Change: Both of these agreements were one because of E bay's flexible and scalable technology platform.

Speaker Change: Similar to highway product ties our Red platform, we have done the same with our state of the art compliance solutions skylight. This quarter, we launched skylite for World Bank notes exchanged a full service international currency exchange provider based in California, Skylite Modernizes, the often cumbersome process of monitoring and.

Speaker Change: Investigation of financial transactions for money services businesses.

Michael J. Brown: ePay leveraged its regulatory licenses, network connections, and infrastructure to help Paytm resolve this issue in a timely fashion, thereby minimizing customer interruption. ePay's traditional business with Paytm involved only the distribution of Google Play Credit. So, as I'm sure you can appreciate, we are pleased that Paytm decided to expand our partnership to include prepaid mobile airtime, satellite TV recharges, and bill payments in addition to Google Play

Speaker Change: And finally as many of you know <unk> in India ran into a regulatory issue that impacted its ability to onboard new customers and operate it stored value wallet.

Speaker Change: <unk> leveraged its regulatory licenses network connections and infrastructure to help ATM resolve this issue in a timely fashion, thereby minimizing customer interruptions.

Speaker Change: <unk> traditional business with pay TM involve only the distribution of Google play credit. So as I'm sure. You can appreciate we are pleased that ATM decided to expand our partnership to include prepaid mobile airtime satellite TV recharges and Bill payments. In addition to Google play credit this.

Michael J. Brown: This was a terrific job done by the EPA team and reflects our commitment to helping a partner resolve a difficult situation by leveraging the extensive collection of assets that we've built over the last 20 years. As you can see, ePay is more than just a content distribution business. It is a diverse, dynamic business with growth opportunities in several new and existing markets, and we will continue to develop and promote new products and solutions that supplement our core offering while providing opportunities for continued growth into the future.

Speaker Change: A terrific job done by the <unk> team and reflects our commitment to helping our partner resolve a difficult situations by leveraging the extensive collection of assets that we've built over the last 20 years.

Speaker Change: As you can see ebay is more than just the content distribution business. It is a diverse dynamic business with growth opportunities in several new and existing markets and we will continue to develop and promote new products and solutions that supplement our core offering while providing opportunities for continued growth into the future.

Michael J. Brown: While the results from the cutting-edge investments can take some time to make an impact on the overall segment results, I remain confident in our ability to introduce new products and solutions into new and existing markets that will help ePay continue to produce strong growth into the future. Now, let's move on to slide 15, and we'll talk about money transfer for a bit.

Speaker Change: While the results from the cutting edge investments can take some time to make an impact on the overall segment results I remain confident in our ability to introduce new products and solutions into new and existing markets that will help ebay continued to produce strong growth into the future now lets move on to slide 15, and we will.

Speaker Change: Talk about money transfer for a bit.

Michael J. Brown: As I begin my discussion on money transfer, I want to emphasize the importance of our network, Dandelion, as a key driver of growth in the money transfer segment. With access to 4.1 billion bank accounts, and over 2 billion wallet accounts, and over 580,000 physical locations to send or receive money, Dandelion is the most strategic cross-border network in the world to move money. But let me put the opportunity for our money transfer business in perspective.

Speaker Change: As I begin my discussion on money transfer I want to emphasize the importance of our network and alliance as a key driver of growth in the money transfer segment with access to $4 1 billion bank accounts and over $2 billion of wallet accounts and over 580000 physical locations to send or receive money.

Speaker Change: Underlying is the most strategic cross border network in the world to move money.

Speaker Change: But let me put the opportunity for our money transfer business and perspective.

Michael J. Brown: Despite our position as the second-largest multi-channel money transfer company, our share in the $800 billion remittance market remains modest, only about 7%. We have historically outpaced market growth by about 3x, but with licenses and SEND markets that compose only about 60% of where that $800 billion originates, so we see opportunities to grow market share by entering new SEND markets that represent another 20-25% of the addressable market. The market is big, and we have our eyes on additional share gains in both our existing markets and new markets, but it's also changing, and we believe we are positioned to benefit from that shift.

Speaker Change: Despite our position as the second largest multichannel mud money transfer company our share in the $800 billion remittance market remains a modest only about 7%.

Speaker Change: We have historically outpaced the market growth by about three X, but with licenses and sand markets that composed only about 60% of where that 800 billion originates. So we see opportunities to grow market share by entering new send markets that represent another 20% to 25% of the <unk>.

Speaker Change: <unk> market the.

Speaker Change: The market is big and we have our eyes on additional share gains in both our existing markets and new markets, but it's also shifting and we believe we are positioned to benefit from that shift we have consistently been able to outpace the market as a function of our strong value proposition and our ability to expand our product to.

Michael J. Brown: We have consistently been able to outpace the market as a function of our strong value proposition and our ability to expand our product to the different channels that reach our customers. One market shift that I mentioned earlier is consumer preference for account deposits.

Speaker Change: The different channels that reach our customers one market shift that I mentioned earlier is consumer preference per account deposit.

Michael J. Brown: We were able to grow our account deposit transactions 31% this quarter, in part because our network can deliver real-time account deposit services in 98% of the markets where our customers have an account deposit need, and in the Independent Channel, where most of the total addressable markets still live, we're the global leader. And our superior value proposition enables us to consolidate its fragmentation. We have a thriving digital offering, live in 24 countries, which continues to accelerate its growth while refining its customer experience.

Speaker Change: We were able to grow our account deposit transactions, 31% this quarter in part because our network can deliver real time account deposit service and 98% of the market, where our customers have an account deposit needs.

Speaker Change: In the independent channel, where most of the total addressable market still live we're the global leader.

Speaker Change: And our superior value proposition enables us to consolidate its fragmentation.

Speaker Change: We have a thriving digital offering live in 24 countries, which continues to accelerate its growth while refining our customer experience.

Michael J. Brown: So as the market evolves, whether going digital for sending, whether to bank accounts, wallets, or cards for receiving money, whether for other use cases or in terms of population or migration shifts, we believe our money transfer segment is already well-positioned to benefit from and actually lead these market dynamics. Now, let's talk about some of our marketplace wins for the quarter. During the quarter, we signed 22 new correspondent agreements across 19 countries and launched 16 new correspondents in 15 countries.

Speaker Change: So as the market evolves weather.

Speaker Change: Going to digital for sending whether to bank accounts wallets are cards for receiving money whether for other use cases are in terms of population migration shifts. We believe our money transfer segment is already well positioned to benefit from and actually lead into these market dynamics.

Speaker Change: Now, let's talk about some of our marketplace wins for the quarter during the quarter, We signed 22, new correspondent agreements across 19 countries and launched 16, new correspondents in 15 countries.

Michael J. Brown: Our team continues to win, market, share, and execute our plan. In Bangladesh, we launched an exciting partnership with Nagad Wallet, recognized as the world's fastest growing mobile financial service provider. Nagad has revolutionized cashless transactions, integrating them into the daily lives of many Bangladeshis with a solid user base of 85 million registered customers.

Speaker Change: Our team continues to win market share.

Speaker Change: Sure and execute our plan and Bangladesh, We've launched an exciting partnership with <unk> wallet recognized as the world's fastest growing mobile financial service provider. The Gad has revolutionized.

Speaker Change: Cashless transactions integrating them into the daily lives of many bangladeshis with a solid user base of 85 million registered customers.

Michael J. Brown: In Malaysia, we launched a prepaid RIA Mastercard. This card demonstrates our commitment to localizing our products to the needs of our customers. This innovative card seamlessly integrates with the RIA Wallet, offering new payroll channels for customers and employers. It facilitates direct payments into their wallets and opens up countless merchants for their spending needs. Our direct-to-consumer digital channel continues to grow nicely, expanding 23% and is becoming a larger share of our overall business, reaching 11% this quarter. As we concluded... 2023.

Speaker Change: In Malaysia, we launched a prepaid Ria Mastercard this car demonstrates our commitment to localize our product to the needs of our customers. This innovative card seamlessly integrates with the real wallet offer a new payroll channels, our customers employers it facilitates direct both payments into our wallets and opens up countless merge.

Speaker Change: <unk> for their spending needs.

Speaker Change: Our direct to consumer digital channel continues to grow nicely, expanding 23% and is becoming a largest share of our overall business, reaching 11% this quarter.

Michael J. Brown: With momentum and optimism, the first quarter results for money transfer reinforce our excitement with double-digit growth in operating income and adjusted EBITDA. I am more optimistic than ever about our money transfer segment's potential to continue to outpace the market rate of growth and accumulate market share as we've done in the past, a trend that's been consistent since our acquisition of REIA in 2007. Now we'll turn to the next slide, and we'll discuss our dandelion net.

Speaker Change: As we concluded.

Speaker Change: 2023 with momentum and optimism in the first quarter results for money transfer reinforced our excitement with double digit growth in operating income and adjusted EBITDA I am more optimistic than ever about our money first segments potential to continue to outpace the market rate of growth and accumulate market share as well.

Speaker Change: We've done in the past a trend that's been consistent since our acquisition of <unk> and 2007 now, let's turn to the next slide I will discuss our dandelion network.

Michael J. Brown: As we told you, our network, which is also known as Dandelion, is at the core of the different value propositions we offer in the money transfer segment, along with RIA and XE. Under the Dandelion brand, we offer our network and core payments capabilities through a payments-as-a-service model. By connecting with Dandelion via a single API, banks, fintechs, financial institutions, payment service providers, and tech platforms can immediately offer real-time, cross-border payments to consumers and businesses globally. This is a compelling value proposition that is being very well received in the market. Through our dandelion sending partners, we reach different customer segments than our traditional family remittance consumers.

Speaker Change: As we told you our network, which is also known as dandelion is at the core of the different value propositions. We offer in the money transfer segment, along with Ria annex fee under the <unk> brand, we offer our network and core payments capabilities through.

Speaker Change: Our payments as a service model by connecting with Dandelions via a single API banks Fintech financial institutions payment service providers and tech platforms can immediately offer real time cross border payments to consumers and businesses globally. This is a compelling value.

Speaker Change: <unk> that is being very well received in the market.

Speaker Change: Through our dandelions, sending partners partners, we reach different customer segments than our traditional family remittance consumer as we told you we still have tons of room to grow in the remittance segment with and aligned we are also stepping into adjacent markets in the payment space that service those use cases that require.

Michael J. Brown: As we told you, we still have tons of room to grow in the remittance segment, but with Dandelion, we're also stepping into adjacent markets in the payment space that service those use cases that require cross-border settlement as part of their value proposition. From a market sizing perspective, we see Dandelion opening access to about a $15 trillion TAM, or nearly 20 times the size of the remittance market. So clearly, the opportunity is enormous.

Speaker Change: Cross border settlement as part of their value proposition.

Speaker Change: From a market sizing perspective, we see dandelion opening access to about 15, 15 trillion Tam or nearly 20 times the size of the remittance market.

Speaker Change: Clearly the opportunity is enormous and with our competitive DNA and superior product I am confident that we will take market share as customers realize the benefits of our attractive value proposition.

Michael J. Brown: And with our competitive DNA and superior product, I'm confident that we'll take market share as customers realize the benefits of our attractive value proposition. During the quarter, we signed an agreement with Wallex, a Singapore-based international payment service provider that serves SMEs, corporates, fintechs, and e-commerce companies, offering cross-border payments, collections, virtual multi-currency accounts, and FX services. In addition, several agreements that we signed in 2023 launched and went live in this first quarter. One of the more significant was PingPong, one of the largest China-based cross-border digital payment providers.

Speaker Change: During the quarter, we signed an agreement with Wallach, our Singapore based international payment service provider that serves Smes corporate centex and ecommerce companies offering cross border payments collections virtual multi currency accounts and FX services.

Speaker Change: Further several agreements that we signed in 2023 launched and went live in this first quarter one of the more significant towards paying pump one of the largest China based cross border digital payment providers pinpoint has relationships with more than 1 million sellers, who have processed more than $90 billion.

Michael J. Brown: PingPong has relationships with more than a million sellers who have processed more than $90 billion in transaction volume. In addition, we launched an agreement with SendWave, World Remit, one of the largest digital money transfer companies in the world with a customer base of more than 11 million customers. We are busy implementing all the deals that we've been telling you about. And as we continue to move into 2024, I see a very robust pipeline that I look forward to updating you on as we close these deals.

Speaker Change: Dollars in transaction volume. In addition, we launched an agreement with sand wave World remains one of the largest digital money transfer companies in the world with a customer base of more than 11 million customers.

Speaker Change: We are busy implementing all of the deals that we've been telling you about and as we continue to move into 2024.

Speaker Change: A very robust pipeline that I look forward to updating you on as we close these deals to wrap up our money transfer segment. Hopefully you will see what I see we are surrounded by growth opportunities and very well equipped and position to continue to go after.

Michael J. Brown: To wrap up our money transfer segment, hopefully, you will see what I see. We are surrounded by growth opportunities and very well equipped and positioned to continue to go after them. So, finally, let's go on to slide number 17.

Speaker Change: So finally, let's go on to slide number 17.

Michael J. Brown: As I conclude my remarks, I can't emphasize enough my excitement about the growth our management team continues to deliver. No matter how you analyze the results, this was a record first quarter for Euronet. And to recap, compared to the prior year first quarter, our Euronet team delivered adjusted EPS of $1.28, 47% over the prior year, a record. Revenue of $855 million, a 9% growth over the prior year, another record. Operating income of $65.8 million, 44% over the prior year, another record for the first quarter, and adjusted EBITDA of $110 million, 19% growth over the prior year. Do you see where this is going?

Speaker Change: As I conclude my remarks, I can't emphasize enough my excitement about the growth our management team continues to deliver no.

Speaker Change: No matter, how you analyze the results. This was a record first quarter for <unk> and to recap compared to the prior year first quarter, our year and Ed came delivered adjusted EPS of $1 28, 47% over prior year a record revenue of.

Speaker Change: $855 million, a 9% growth over the prior year another record operating income of $65 8 million or 44% over the prior year. Another record for the first quarter and adjusted EBITDA of $110 million, 19% growth over the prior year.

Michael J. Brown: Another record for the first quarter. Now, let's recap how we delivered these results and how we will continue to grow. We delivered these results by focusing on our strengths that we have discussed today. We will continue making strategic acquisitions like Infindium that strengthen our go-to-market strategy for REDD. We're going to expand into new strategic markets, growing those markets like the Philippines, Morocco, and Mexico, just to name a few. We will optimize our ATM estate to improve profit margins.

Speaker Change: This is going another record first for the first quarter now, let's recap how we deliver these results and how we will continue to grow we delivered these results by focusing on our strengths that we have discussed today, we will continue making strategic.

Speaker Change: In acquisitions like <unk> that strengthens our go to market strategy for Ren.

Speaker Change: We're going to expand into new strategic markets growing those markets like the Philippines, Morocco, Mexico just to name a few.

We will optimize our ATM at state to improve profit margins, we're going to grow and expand our existing businesses like our merchant services businesses, which delivered nearly 40% growth in EBITDA compared to the prior first year first quarter.

Michael J. Brown: We're gonna grow and expand our existing businesses, like our merchant services businesses, which delivered nearly 40% growth and even not compared to the prior year and first quarter. We're gonna continue to develop product offerings like Skylight, Conductor, and ePay. And we're gonna grow our best in class, dandelion network of over 4 billion bank accounts and 2 billion global wallets. As we have referenced, the positive travel outlet from the major airlines, the airports, and notably the World Travel Organization, the outlook from these sources all seems to say the same thing. The spring and summer travel season in Europe is predicted to exceed the prior year.

Speaker Change: We're going to continue to develop product offerings, like skylite and conductor and ebay.

Speaker Change: And we're going to grow our best in class Dandelion network of over 4 billion bank accounts and $2 billion global wallet.

Michael J. Brown: As we have referenced the positive travel outlets from the major airlines, the airports and notably the World travel organization. The outlook from these sources all seems to say the same thing the spring and summer travel season in Europe is predicted to exceed the prior year and as I conclude my remarks, I just want to want to repeat what.

Michael J. Brown: And as I conclude my remarks, I just want to repeat, what a quarter. We have maintained the momentum from the fourth quarter, and we continue to be optimistic about the remainder of the year for 2024. We affirm, and we expect to see our earnings growth rate in the 10 to 15 percent range, but you can bet we are driving this business to produce even better results.

Michael J. Brown: Quarter, we have maintained the momentum from the fourth quarter and we continue to be optimistic about the remainder of the year for 2024.

Michael J. Brown: <unk> are and we expect to see our earnings growth rate in the 10% to 15% range, but you can bet. We are driving this business to produce even better results with that we'll be happy to take questions. Operator will you. Please assist.

Operator: With that, we'll be happy to take questions. Operator, will you please assist? Thank you. As a reminder, if you would like to ask a question, please press star 11 on your telephone.

Speaker Change: Thank you as a reminder, if you would like to ask a question. Please press star one on your telephone.

Operator: We also ask that you wait for your name and company to be announced before you proceed with your order. One moment while we compile the Q&A route. The first question I have today is coming from Andrew Schmidt of City Global Markets. Your line is open. Hey, good morning. This is David Wilizinski on behalf of Andrew Schmidt. Congratulations.

Operator: We also ask that you wait for your name and company to be announce before you proceed with your question.

Speaker Change: One moment, while we compile the Q&A roster.

David Wilizinski: The first question I have today is coming from Andrew Schmidt of Citi Global markets. Your line is open.

Speaker Change: Hello, Andrew Good morning.

David Wilizinski: Hey, Good morning. This is David Miller on for Andrew Schmidt.

David Wilizinski: Congratulations on the good results.

David Wilizinski: Accordingly, ebay segment, you mentioned inflationary pressures impacting the margin where did you see the inflation specifically and are there other offsets.

David Wilizinski: On a go forward basis.

David Wilizinski: Yeah, with the inflation we've seen kind of, you know, around the globe, I would say we saw more of it in the European markets, where, obviously, or you may know, ePay does more of its business. So, from our standpoint, it was a little bit more concentrated in that part of the world. But again, I don't think we've seen a corner of the earth that hasn't been impacted by inflation following the, you know, the impacts brought about by COVID.

Speaker Change: Yes, we the inflation, we've seen kind of.

David Wilizinski: Around the globe I would say we saw more of it in the European markets, where obviously you know or you may know that EPA has more of its business. So from our standpoint, it was a little bit more concentrated in that part of the world.

David Wilizinski: But again I don't think we've seen a corner.

David Wilizinski: Of the Earth that has not been impacted by inflation following the.

Speaker Change: The impacts are.

David Wilizinski: But your second part of the question, I didn't quite follow. So maybe you can ask that again. Are there any ways to improve the margin on a go-forward basis to offset these inflationary impacts? And what is the low water mark here?

Speaker Change: Brought about by Covid, but your second part of the question I didn't quite follow so maybe you can ask that again.

David Wilizinski: Okay.

David Wilizinski: Are there any ways to improve the margin on a go forward basis to offset these inflationary impacts.

David Wilizinski: Yes.

Rick L. Weller: Yeah, I mean, a couple of things that easily come into that are, and as we mentioned here, geographical expansion and product expansion. And as we pointed out here, some of our own proprietary products give us the ability to have a little better margins than what we have on other products that we distribute for customers. So that's where I would see that we're going to have the ability to get back into that earnings growth mode of scale and geographical expansion, which will contribute to that scale. And then some additional products that have some enhanced margins.

David Wilizinski: It is kind of the low watermark here, yes.

David Wilizinski: Yes.

Rick L. Weller: A couple of things that.

Rick L. Weller: Usually most easily come into that as is and as we mentioned in your geographical expansion and product expansion.

Rick L. Weller: And.

Rick L. Weller: And as we pointed out in here some of our own proprietary product gives us the ability to have a little better margins than what we have on other product that we distribute for customers. So that's where I would see that we're going to have the ability to.

Speaker Change: To get back into that earnings growth mode scale.

Rick L. Weller: And geographical expansion, which will contribute to that scale and and then some.

Rick L. Weller: Additional product that has some enhanced margin on it.

Speaker Change: Understood. Thank you and then within <unk>, how much more runway is there to optimize the network.

Rick L. Weller: Okay, listen. With EFT, we're always culling our lower performing ATMs and trying to put them in better locations. So you get a combination of that, which we do kind of every day. And then also, as we add new ATMs into new markets, then you get that benefit as well. So there is some, certainly. Great, thanks.

Rick L. Weller: Listen with ESP were always calling.

Rick L. Weller: Lower performing Atms I'm trying to put them in better locations. So you get you get a combination of that that we do kind of everyday and then also as we add new Atms in two new markets. Then you get you get that benefit as well.

Rick L. Weller: So there is some.

Rick L. Weller: Certainly.

Speaker Change: Great. Thank you.

Operator: Thank you for your question. One moment for the next question, and our next question is coming from Mike Grondahl of North Capital Markets. Your line is open.

Speaker Change: Thank you for your question one moment for the next questions.

Operator: And our next question is coming from Mike Grondahl of North capital markets.

Michael John Grondahl: Your line is guys, thanks, and congrats on the quarter just two quick questions.

Michael John Grondahl: Any update on surcharge or interchange.

Michael John Grondahl: And then secondly, what were the total acres.

Michael John Grondahl: <unk> redeployed in four Q and <unk>.

Michael John Grondahl: What effect do you think that had in the quarter can you can you monetize or quantify that.

Michael John Grondahl: There were about 2,000 across those two quarters, right, all together. So I don't I don't have the exact numbers to quantify them.

Michael John Grondahl: There was about 2000 across those two quarters right, yes altogether.

Michael John Grondahl: So.

Michael John Grondahl: I don't I don't have the exact numbers to quantify them, but.

Rick L. Weller: But if you think about it for a minute, if you're taking out an ATM that's losing money, you'll see your revenue go down, but you'll also see your profits go up. So that's kind of what's been happening over the last two quarters.

Rick L. Weller: Do you think about it for a minute if you taken out of ATM, that's losing money.

Rick L. Weller: You'll see your revenue go down, but Youll also see your profits go up so that's kind of what's been happening over the last two quarters.

Rick L. Weller: Then, I don't know, what are you guys seeing with surcharges or interchange across? Oh, yeah, you asked that question. There is, there's a lot of action going on, but nothing has happened yet. But as we have talked to the regulators and various markets, all we can say is that where it sits today will not be what it looks like in a year. So, you just don't know when these regulators are going to, you know, pop up.

Speaker Change: Got it and then I don't know what are you guys seeing with surcharge or interchange across Oh, Yes. You asked that question. There are there is a lot of action going on but nothing.

Rick L. Weller: Has happened yet, but as we talk to the regulators in various markets.

Rick L. Weller: All we can say is where it sits today, we will not be where what it looks like in a year from now so but you just don't know when these regulators are going to.

Rick L. Weller: So we'll just say we're just going to be conservative and not work that into our guidance at this point. But we rest assured you're going to see both third charges added and Interchanges go up over the next year or two.

Rick L. Weller: Got a pop so we'll just say, we're just going to be conservative and not to work that into our guidance at this point, but we rest assured youre going to see both third charges added <unk>.

Rick L. Weller: And.

Rick L. Weller: Interchanges go up over the next year or two and if you. If you just think about it and we've made a comment here a couple of times about how inflation has impacted our business and you've heard that on many many other.

Rick L. Weller: And if you just think about it, and we've made a comment here a couple of times about how inflation has impacted our business, and you've heard that from many, many other companies that you've talked to, all of the banks out there are challenged with the exact same thing. And unlike in the acquiring world, where you get a percentage of the transaction, as inflation goes up in the ATM world, you're not going to get an increase. That interchange still remains the same.

Rick L. Weller: Companies that you've talked to.

Rick L. Weller: All of the banks out there are challenged with the exact same thing and unlike.

Rick L. Weller: Like even in the acquiring world, where you get a percentage of the transaction as inflation goes up and the ATM world, you're not going to get an increase that interchange remains the same and so these banks have been very challenged by the rising cost and there's been studies produced that show that the interchange does not cover the cost. So you are seeing.

Rick L. Weller: And so these banks have been very challenged by rising costs, and there have been studies produced that show that the interchange does not cover the cost. So you're seeing more and more activity in the market, where the banks are saying, we simply can't provide a service like this and are continuing to take losses on it. So more and more discussion is going on, we'll see, and I'm reasonably certain we'll see some benefits from that, but momentum moving in our direction. Well, yeah, just over the last two years, we've...

Rick L. Weller: More and more activity.

Rick L. Weller: In the market, where the banks are saying, we simply can't provide a service like this and continuing to take.

Rick L. Weller: Take the losses on it so more and more discussion going we'll see.

Rick L. Weller: Unreasonably certain we'll see some benefit from that but but momentum moving in our direction well, yes, just over the last two years, we've seen about five different examples in different countries. So we will get more.

Rick L. Weller: Well, yeah, just over the last two years, we've seen about five different examples in different countries. So we'll get more. That'll be great. The margin on those increases will be pretty high. So yeah, I mean, the margin on the increase is almost 100%. So yeah, it's big. Thanks, guys.

Rick L. Weller: That'll be great the margin on those increases will be pretty high so yes, I mean.

Rick L. Weller: The margin on the increase is almost 100% so yeah, it's big.

Rick L. Weller: Thanks, guys.

Operator: Thank you. One moment for the next question. And our next question will be coming from Chris Kennedy of William Blair. Your line is open. Good morning. Thanks for taking the question. You gave a great update on

Rick L. Weller: Yes.

Speaker Change: Thank you one moment for the next question.

Operator: And our next question will be coming from Chris Kennedy with William Blair. Your line is open.

Cristopher David Kennedy: Good morning, Thanks for taking the hey, good morning, Thanks for taking the question.

Cristopher David Kennedy: You gave a great update on the Atms in Philippines can you just talk about the opportunity to expand your tourist focused Atms outside of Europe.

Cristopher David Kennedy: Oh, that's, I mean, I won't say that's our Holy Grail, but that certainly is a high priority item for us. With a little luck, you know, this year, we might add two, three, four more countries. We're targeting more in Southeast Asia, and we're still targeting a couple more in North Africa. And, of course, virtually everybody south of our border, you know; there are little tourist places in almost every country south of the United States. You know, we've just lit up our first country, which was Mexico, last quarter.

Cristopher David Kennedy: All of that I mean.

Cristopher David Kennedy: I wont say thats, our Holy Grail, but thats certainly is a high focus item for us.

Cristopher David Kennedy: With a little luck this year, we might add 234 more countries.

Cristopher David Kennedy: <unk>.

Cristopher David Kennedy: We're targeting more in southeast Asia.

Cristopher David Kennedy: We're still targeting a couple more in North Africa and of course, virtually everybody south of our border.

Cristopher David Kennedy: There is little tourist places in almost every country south of the United States. We've just.

Michael J. Brown: And that's just the beginning of several places that we're trying to go into. So, I would imagine that you look at our biggest state and 35,000 tourist-focused ATMs in Europe. We only have a couple of thousand outside of Europe. If, you know, over the next five to ten years, the numbers outside of Europe could equal those in Europe. So, we'll just have to see what happens.

Michael J. Brown: Lit up our first country, which was Mexico last quarter and Thats just the beginning of several places that we're trying to go into so it's up I would imagine that you'd look at our Hugest state and it was 35000 tourists focused Atms in Europe.

Michael J. Brown: We only have a couple of thousand outside of Europe.

Michael J. Brown: If over the next five.

Michael J. Brown: Five to 10 years at the numbers outside of Europe could equal here. So we'll just have to see what happens.

Michael J. Brown: But, and the reason I can't just say we're going to just jump into them all instantly is that in Europe, remember, we had the Payment Services Directive, a law that was passed by the EU that allowed a single regulator to regulate your expansion into every one of the EU countries, and we don't have that when we expand through the rest of the world. So we've got to approach every country individually. It's a pain.

Michael J. Brown: But.

Michael J. Brown: The reason I can't just say, we're going to just jump into them. All instantly is in Europe remember, we had the payment services directive of law that was passed by the EU that allowed a single regulator.

Michael J. Brown: To regulate your expansion into every one of the EU countries and we don't have that when we expand through the rest of the world. So we've got approach every country individually at the pain, we've got to get the.

Michael J. Brown: We've got to get the central bank to allow us as a non-bank to own an ATM, etc. So it just takes some time, but we've done that now in four or five countries, and we hope to do it in many more. Thank you.

Michael J. Brown: Central bank to allow us as a non bank to own an ATM.

Michael J. Brown: <unk>.

Michael J. Brown: Et cetera. So it just takes some time, but we've we've done that now in 45 countries and we hope to do it and many more.

Michael J. Brown: And then just to follow up on Wren, most of the business has been outside of the U.S. Can you just talk about the opportunities to work with U.S. financial institutions? Well, there are some opportunities. We're in discussions with several of them right now, but a deal is not a deal until it's signed and delivered, so we're not announcing until we get one. But we're certainly going after it, and the success of RAN outside the U.S. is now starting to bleed into the U.S. And I would add to that that we've been very encouraged by what these very large banks have told us about the quality of our technology and the challenges that they're grappling with with respect to their historical legacy, old, outdated technology.

Michael J. Brown: Right.

Speaker Change: Thank you for that and then just to follow up on Brian most of the business has been outside of the US Can you just talk about kind of the opportunities to work with U S financial institutions.

Michael J. Brown: Well there are some opportunities were in discussions with several of them right now.

Michael J. Brown: But the deal is not a deal until it's signed and delivered so we are not announcing until we get.

Michael J. Brown: Until we get one, but we're certainly going after it and independents.

Michael J. Brown: Success of <unk>.

Michael J. Brown: <unk> Rana outside it took a while but the success of ran outside the U S is now starting to bleed into the U S and I would add to that is that we've been very encouraged by what these.

Michael J. Brown: Large very large banks have told us about the quality of our technology and the challenges that they are grappling with with respect to there.

Michael J. Brown: Our historical legacy old outdated technology.

Michael J. Brown: So, like Mike said, we'll wait until we've got something signed to announce, but we're very encouraged by the reception that we've gotten so far. Yeah, those legacy payment stacks are very legacy. I mean, they were architected 20 to 40 years ago. That makes it a challenge for banks to deal with things like wallets and QR codes and all the modern banking challenges, account-based transactions, and so forth.

Michael J. Brown: So.

Speaker Change: Like Mike said, we will.

Michael J. Brown: Will.

Michael J. Brown: We'll wait until we've got something signed to announce but we're very encouraged by the reception that we've gotten so far yes. Those legacy payment stacks are very legacy I mean, they're architected 20 to 40 years ago that makes it a challenge for banks to deal with things like <unk>.

Michael J. Brown: Wallets QR codes and all the modern banking.

Michael J. Brown: Challenges account based transactions and so forth.

Operator: So, he is great.

Michael J. Brown: So thanks need is great.

Speaker Change: Great great to hear thanks for taking the questions.

Speaker Change: Thank you one moment to the next question.

Operator: Thank you. One moment for the next question, and the next question is coming from Gus Gala of Monash Crispy Heart and Company. Your line is open.

gas Scala: And our next question is coming from gas Scala.

Gus Gala: Of <unk> Crespi, Hardt <unk> company. Your line is open.

Gus Gala: Hi guys. Good morning. Thank you for taking my question. Um, could you help me a little bit unpack the drivers of that big 60%, uh, incrementally but the margin this quarter in EFD?

Gus Gala: Hi, guys. Good morning, Thanks for taking my questions.

Gus Gala: Could you help me a little bit on the drivers of that big 60% incremental EBITDA margin this quarter.

Rick L. Weller: Um, Just, yeah, that'll be my first one. I have a follow-up. Well, okay, so...

Rick L. Weller: Well, okay, so it's the two things we mentioned before. It's better transactions, and it's also rationalizing non-performing ATMs. If you think about it for a second, you know, it costs us X amount to run this ATM every month. We'll just make up a number.

Gus Gala: Yes that will be my first one I have a follow up well okay. So it's the two things we mentioned before it's better transaction.

Rick L. Weller: And its also rationalizing.

Rick L. Weller: Nonperforming Atms.

Rick L. Weller: If you think about it for a second.

Rick L. Weller: It cost us X amount to run this ATM every month, we'll just make up a number of call. It $1000. So you need enough transactions to cover that $1000 before you get to breakeven, but every transaction after that.

Rick L. Weller: Let's call that $1,000. So you need enough transactions to cover that $1,000 before you get to break even. But every transaction after that, you know, has 90% margin attached to it. So that's the point; once you get your quantity up and you cover the nuts of your network, then all that starts to fall to the bottom line, and that's kind of what you're seeing. And so that's it, and then plus, plus it's more transactions plus it's the optimization of getting rid of ATMs that are not profitable.

Rick L. Weller: Has 90% margin attached to it so that's the point once you get your quantity up and you cover the nut of your of your networks than all of that starts to fall to the bottom line and Thats kind of what Youre seeing.

Rick L. Weller: So that's it and then so it's more transactions plus the optimization of getting rid of Atms that are not profitable.

Rick L. Weller: Great, I appreciate the color. And my next one's on money transfer. Can you talk a little bit about the evolution of digital, the profitability of digital in the segment? I mean, is there the opportunity here for further, you know, margin expansion just from continuing to drive more remittances ending in a digital receipt?

Speaker Change: Great I appreciate the color and my next one is on money transfer could you talk a little bit about the evolution of visual profitability of digital segment.

Rick L. Weller: I mean is opportunity here for further.

Rick L. Weller: Margin expansion, just continuing to drive.

Rick L. Weller: More remittance and being in a digital.

Rick L. Weller: Yeah, okay. Well, that's an interesting...

Rick L. Weller: Does that make sense? Yeah, okay. Well,

Speaker Change: That makes sense.

Speaker Change: Yes, okay, well thats an interesting so theres two parts to that when you say digital it's the sand and mercy.

Rick L. Weller: So there are two parts to it when you say digital. It's the send and receive. So when we pay out in cash, where somebody walks up to the branch of a bank or something to pick up their money, that bank gets, call it three bucks, maybe 350 from us to do that for us, to allow that customer to walk in his door and do the transaction. If I pay out into a bank account or into a wallet account, it only costs like 50 cents.

Rick L. Weller: When we pay out into a into cash to where somebody walks up to the branch of a bank or something to pick up their money.

Rick L. Weller: That bank get call. It three box, maybe $3 50 from us to do that for us to allow that customer to walk in as doors and do the transaction if I pay out into our bank account or into our wallet account and only cost like 50.

Rick L. Weller: So margins tend to be higher, the higher percentage of the transactions that are paid out digitally. Then, on the flip side, so as that grows, you know, that's growing 31% even though our transactions are just growing like 10 or whatever the number is. So that's good. And the other piece of this is just, you know, more transactions into more countries. It's the send side. It costs because I don't have to pay part of the customer fee to the agent. A digitally acquired transaction has slightly better margins than a physically acquired transaction.

Rick L. Weller: So margins tend to be higher.

Rick L. Weller: Higher percentage of the transactions that are paid out digitally then on the flip side.

Rick L. Weller: So as that grows that's growing 31%, even though our transactions are just growing like 10 or whatever the number is so thats good and.

Rick L. Weller: And the other piece of this is just <unk>.

Rick L. Weller: More transactions.

Rick L. Weller: Into more countries thats, the send side it costs us because I don't have to pay.

Rick L. Weller: <unk>.

Rick L. Weller: Part of the customer feed to the agent digitally acquired transaction has slightly better margins than I.

Rick L. Weller: A physically acquired transaction.

Rick L. Weller: Okay.

Operator: I appreciate all of you. Thank you.

Speaker Change: I appreciate all color.

Operator: Thank you. One moment for the next question. And our next question is coming from Charles Nabhan of Stevens. Your line is open.

Speaker Change: Thank you one moment for the next question.

Charles Joseph Nabhan: And our next question is coming from Charles <unk>.

Charles Joseph Nabhan: <unk> of Stephens Your line is open.

Charles Joseph Nabhan: Good morning, and thank you for taking my question. I wanted to start with the money transfer segment and was hoping you could give us a little color around specifically what geographies are driving some of the strength in cross-border. And on the flip side, I know intra-U.S. has been weak for some time, but I'm wondering, are you seeing any deceleration or, you know, a slowdown in the decline within that business at all

Charles Joseph Nabhan: Good morning, and thank you for taking my question.

Charles Joseph Nabhan: I wanted to start with the money transfer segment and I was hoping you could give us a little color around.

Charles Joseph Nabhan: Specifically, what geographies are driving some of the strength in cross border and.

Charles Joseph Nabhan: On the flip side I know.

Charles Joseph Nabhan: And for U S has been weak for some time, but I'm wondering are you seeing any deceleration or.

Charles Joseph Nabhan: A slowdown in the decline within that business at all.

Michael J. Brown: In answer to that last question, absolutely. Our decline is now roughly 10 percent when it used to be roughly 20. So it's declining slower, but there's also a smaller piece. So remember what this was; this specific U.S. to U.S. business was called Wal-Mart to Wal-Mart. It was where people could bring their cash into a Walmart location, and it could pop out at another Walmart location. So with the advent of things like Venmo and Cash App and all these other digital methodologies to send money, that's really taken a... [inaudible]

Charles Joseph Nabhan: Alright.

Michael J. Brown: And answer to that last question absolutely.

Michael J. Brown: Our decline is now roughly 10% when it used to be roughly 20, so its declining slower but theres also a smaller piece. So remember what this was a specific USD U S business was called Walmart to Walmart It was where people could bring their cash into a walmart location and it could pop out in another Walmart Lowe's.

Michael J. Brown: Patient so that's with the advent of things like Venmo and cash App and all these other digi.

Michael J. Brown: Digital methodologies to send money that's really taken.

Michael J. Brown: Uh huh.

Michael J. Brown: Bypass of what Walmart can do with the Walmart to Walmart cash to cash business. So that's why it's continuing to go down the nice thing is all our international business is up and.

Michael J. Brown: Cash to cash business becomes a smaller and smaller piece of our total.

Rick L. Weller: And remember that, you know, that movement to an alternative form was really accelerated in the COVID period when you didn't have people at the customer service counters, people were restricted from going into buildings, there was, you know, closings of stores and stuff like that. So, you know, it kind of had a unique set of circumstances to it. But as Mike said, the rate of decline is tapering off, and the absolute amount by which it's declining is obviously lower than it was.

Michael J. Brown: And remember that.

Rick L. Weller: The movement to an alternative form was really accelerated at the garden.

Rick L. Weller: The Covid period, when you didn't have people at the customer service counters people were restricted from going in buildings areas closings of stores and stuff like that so I kind of add a unique set of circumstances to it but as Mike said the rate of decline is girl is.

Rick L. Weller: Is tapering off and the absolute amount by which is declining against is obviously lower than it was.

Michael J. Brown: Got it. And on the cross-border piece, anything you could say about where you're seeing strength geographically? Yeah, that's been pretty consistent and pretty strong, you know, in virtually all our geographies. We don't have a bad geography, right?

Speaker Change: Got it and on the cross border piece anything you can say on the.

Michael J. Brown: Where youre seeing strength geographically, that's been that's been pretty consistent and pretty strong.

Michael J. Brown: And virtually all our geographies, we don't have a bad geography right now.

Charles Joseph Nabhan: I got it. As a follow-up, I wanted to drill into some of the initiatives you have in place within ePay that you had alluded to, Mike. Is there anything you could say about specific products or what's on your product roadmap within that business and how we should think about KPIs as well as, you know, the timing of contribution from some of the initiatives you have in place within ePay? Clearly, you have a, you know, a strong history of repositioning that segment, and I think, you know, I'd like to understand what's next and what the next evolution of ePay would look like.

Michael J. Brown: Got it.

Charles Joseph Nabhan: As a follow up I wanted to drill into some of the initiatives you have in place within EMEA.

Charles Joseph Nabhan: You had alluded to Mike.

Charles Joseph Nabhan: Is there anything you could say about specific products or what's on your product roadmap within that business and how we should think about.

Charles Joseph Nabhan: Kpis as well as the timing of contribution from some of the initiatives you have in place with an EPA clearly you have a.

Charles Joseph Nabhan: Our strong history of repositioning that segment and I think.

Charles Joseph Nabhan: I'd like to understand what's next and what the next evolution of EPA would look like.

Michael J. Brown: Okay, well, we have Kevin Kapanecki, our CEO of the ePay segment, so I'll let this be the last question, but I'll let Kevin give a shot at the answer.

Speaker Change: Okay, well, we we have Kevin <unk>, our CEO of the ebay segment. So I'll, let this be the last question, but I'll, let Kevin.

Kevin J. Caponecchi: Give a give a shot for the answer.

Kevin J. Caponecchi: Yes, so historically, we've always distributed what we refer to as third-party content, whether that's a mobile top-up or whether that's a Google Play credit. It's not our product. It's a product owned by another brand, and Rick and Mike went through the whole transformation of ePay over the last several years, where we've continued to change the product. Looking forward, our goal is to introduce more products, as Rick mentioned, that are ePay-branded and have a higher margin.

Kevin J. Caponecchi: So historically, we've always distributed but we referred to as third party content.

Kevin J. Caponecchi: Mobile top up or whether that's a Google play credit if you're not our product, it's a product going by.

Kevin J. Caponecchi: Brand.

Kevin J. Caponecchi: And Richard Mike went through the whole transformation of easy pay over the last several years.

Kevin J. Caponecchi: We've continued to change the product mix looking forward. Our goal is to introduce more products as Rick mentioned that our ebay branded.

Kevin J. Caponecchi: A higher margin.

Kevin J. Caponecchi: And those products take on different form factors.

Kevin J. Caponecchi: And those products take on different form factors. The second thing we're looking at introducing is more solutions. We referenced Skylight in the earnings call, and we introduced Conductor Platform in the earnings call. Those are both solutions for both our retail partners and our brand partners. So looking forward, we think there will be a, we are driving a shift mix from third-party content to products and solutions that are owned by ePay that will have higher margins.

Kevin J. Caponecchi: <unk>.

Kevin J. Caponecchi: Second thing, we're looking at introducing more and more solutions, we referenced skyrocket in the earnings call.

Kevin J. Caponecchi: Introduced conductor platform and the earnings call. Those are both solutions for both our retail partners and our brand partners.

Kevin J. Caponecchi: Looking forward, we think there'll be a we.

Kevin J. Caponecchi: We were driving a shift mix from third party content to products and solutions that are owned by ebay.

Kevin J. Caponecchi: But we will have higher margins.

Charles Joseph Nabhan: Got it. Appreciate all the calls guys and congrats on the quarter. Thank you. All right. Thanks, everybody.

Speaker Change: Got it I appreciate all the color guys and congrats on the quarter. Thank you.

Michael J. Brown: All right. Thanks, everybody. We'll look forward to talking to you in about 90 days.

Operator: This concludes today's conference call. Thank you all for joining us. You may disconnect.

Speaker Change: Alright, Thanks, everybody, we'll look forward to talking to you in about 90 days. Thank you.

Operator: Okay.

Operator: This concludes today's conference call. Thank you all for joining you may disconnect.

Operator: Okay.

Operator: Okay.

Operator: Okay.