Financial Data and Key Metrics Changes - The company reported revenue of $857 million, adjusted operating income of $63 million, and adjusted EBITDA of $109 million, marking a record first quarter across all three metrics [66] - Adjusted EPS reached $1.28, a 47% increase from $0.87 in the prior year, with pro forma adjusted EPS of $1.13 representing a 30% growth over the first quarter last year [72][74] - Operating margins expanded due to revenue growth and effective cost management, with a notable increase in adjusted operating income by 220% and adjusted EBITDA by 54% compared to the prior year [83][68] Business Line Data and Key Metrics Changes - The Money Transfer segment saw revenue, operating income, and adjusted EBITDA grow by 7%, 17%, and 10% respectively, driven by nearly double-digit growth in cross-border transactions [79] - The EFT segment experienced a 12% revenue growth, with adjusted operating income growing by 220% and adjusted EBITDA increasing by 54% compared to the previous year [83] - The epay segment achieved constant currency revenue growth of 8%, with a focus on expanding its product mix from mobile-only to branded payment content [68][69] Market Data and Key Metrics Changes - The company signed 22 new correspondent agreements across 19 countries and launched 16 new correspondents in 15 countries, indicating strong market share growth [7] - The direct-to-consumer digital channel expanded by 23%, now representing 11% of overall business [8] - The company anticipates a $15 trillion total addressable market (TAM) with the Dandelion network, significantly larger than the remittance market [9] Company Strategy and Development Direction - The company plans to continue strategic acquisitions, such as Infinitum, to enhance its go-to-market strategy and expand into new markets like the Philippines, Morocco, and Mexico [13] - There is a focus on optimizing the ATM estate to improve profit margins and expanding existing businesses, particularly in Merchant Services, which delivered nearly 40% growth in EBITDA [13] - The company aims to leverage its Ren technology platform to support innovative product development and expand its geographic reach [88] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of the year, expecting earnings growth in the range of 10% to 15% [11] - Positive indicators for international travel and easing inflation were noted, with expectations for a record second quarter revenue from airlines and increased travel spending [91][94] - The company remains cautious yet optimistic about the future, focusing on execution and leveraging diverse opportunities [100] Other Important Information - The company ended the quarter with a relatively small increase in net debt, maintaining a conservative net debt leverage of about 1x EBITDA [76] - The company is actively working on technical integration for new products and partnerships, enhancing its service offerings [4][10] Q&A Session Summary Question: What inflationary pressures are impacting the epay segment? - Management noted that inflation was more concentrated in European markets, where epay has a significant presence, but acknowledged that inflation has affected all regions [18] Question: How can margins be improved in the epay segment? - Management indicated that geographical and product expansion, along with proprietary products, could enhance margins moving forward [15] Question: What is the outlook for the cross-border piece and geographic strengths? - Management highlighted that while intra-U.S. transactions have been weak, international business is growing, and the rate of decline in U.S. transactions is tapering off [20][27] Question: What are the drivers behind the 60% incremental EBITDA margin in EFT? - The margin growth was attributed to better transactions and the rationalization of nonperforming ATMs, leading to improved profitability [49] Question: What is the potential for further margin expansion in the digital segment? - Management confirmed that higher digital transaction volumes lead to better margins, as digital payouts are significantly cheaper than cash payouts [43]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section provides an overview of Euronet's first quarter 2024 consolidated financial results and the full-year 2024 financial outlook [First Quarter 2024 Consolidated Results](index=1&type=section&id=First%20Quarter%202024%20Consolidated%20Results) Euronet achieved a record-breaking first quarter with **47% adjusted EPS growth to $1.28**, driven by strong segment performance and exceeding expectations Q1 2024 Consolidated Financial Metrics | Financial Metric | Q1 2024 | Q1 2023 | % Change | % Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $857.0M | $787.2M | +9% | +9% | | Operating Income | $64.0M | $45.6M | +40% | +45% | | Adjusted Operating Income | $63.6M | $45.6M | +39% | +44% | | Adjusted EBITDA | $108.8M | $92.8M | +17% | +19% | | Net Income | $26.2M | $20.1M | +30% | N/A | | Diluted EPS | $0.55 | $0.39 | +41% | N/A | | Adjusted EPS | $1.28 | $0.87 | +47% | N/A | - CEO Michael J. Brown highlighted the **record-breaking first quarter adjusted EPS of $1.28**, a **47% increase**, attributing the strong growth to continued business expansion, new product additions, and technology investments across all segments[5](index=5&type=chunk) - The Q1 adjusted EPS of **$1.28** included a benefit of approximately **$0.10 per share** from resolving uncertain tax matters and **$0.05 per share** from a duty fee recovery, with a pro forma adjusted EPS of **$1.13** still exceeding consensus estimates[6](index=6&type=chunk) [2024 Financial Outlook](index=2&type=section&id=2024%20Financial%20Outlook) The company reaffirms its full-year 2024 guidance, anticipating adjusted EPS growth of **10-15%** year-over-year, consistent with its long-term historical growth rates - Euronet anticipates its 2024 adjusted EPS will grow **10-15%** year-over-year, which is in line with its 10 and 20-year compounded annualized growth rates[7](index=7&type=chunk) - The outlook does not account for potential changes in foreign exchange rates, interest rates, or other unforeseen factors[7](index=7&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) This section details the first quarter 2024 financial performance and key operational metrics for Euronet's EFT Processing, epay, Money Transfer, and Corporate segments [EFT Processing Segment](index=2&type=section&id=EFT%20Processing%20Segment) EFT Processing segment revenue grew **13% to $217.2 million** and operating income surged **212% to $21.5 million**, driven by merchant services and new market expansion EFT Processing Segment Financial Metrics | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $217.2M | $192.2M | +13% | | Operating Income | $21.5M | $6.9M | +212% | | Adjusted EBITDA | $44.7M | $29.6M | +51% | | Transactions | 2,502M | 1,838M | +36% | | Installed ATMs | 53,029 | 51,510 | +3% | - Growth was driven by the merchant services business and new market expansion, with operating margins improving due to the removal of loss-making ATMs and a **~$3.0 million recovery** of a prior-year duty fee[8](index=8&type=chunk) - The **36% growth in transactions** outpaced revenue growth, primarily due to an increase in high-volume, low-value transactions in India[9](index=9&type=chunk) [epay Segment](index=3&type=section&id=epay%20Segment) epay segment revenue grew **8% to $257.1 million** from digital media and mobile, but operating income and adjusted EBITDA decreased **3%** due to inflation and investments epay Segment Financial Metrics | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $257.1M | $237.4M | +8% | | Operating Income | $26.6M | $27.5M | -3% | | Adjusted EBITDA | $28.3M | $29.1M | -3% | | Transactions | 953M | 973M | -2% | | POS Terminals | ~808,000 | ~799,000 | +1% | - Revenue growth was driven by digital media and mobile products, while the decrease in operating income resulted from increased costs due to inflation and investments for product and market expansion[12](index=12&type=chunk) [Money Transfer Segment](index=3&type=section&id=Money%20Transfer%20Segment) Money Transfer segment revenue increased **7% to $384.6 million**, driven by cross-border and digital transactions, with operating income rising **14%** from revenue scale and cost management Money Transfer Segment Financial Metrics | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $384.6M | $359.4M | +7% | | Operating Income | $37.2M | $32.6M | +14% | | Adjusted EBITDA | $44.5M | $41.1M | +8% | | Total Transactions | 40.6M | 37.6M | +8% | | Network Locations | ~583,000 | ~528,000 | +10% | - Revenue growth was driven by near **double-digit growth in cross-border transactions**, with direct-to-consumer digital transactions increasing by **23%**, reflecting strong consumer demand[13](index=13&type=chunk) - Operating margins improved due to the scale benefits of revenue growth and effective cost management[13](index=13&type=chunk) [Corporate and Other](index=3&type=section&id=Corporate%20and%20Other) Corporate and Other expenses remained stable year-over-year, reporting **$21.3 million** for the first quarter of 2024 compared to **$21.4 million** in the prior year - Corporate and Other expenses were **$21.3 million** for Q1 2024, nearly flat compared to **$21.4 million** for Q1 2023[14](index=14&type=chunk) [Financial Position](index=4&type=section&id=Financial%20Position) This section outlines Euronet's balance sheet and overall financial position as of March 31, 2024, including cash, indebtedness, and credit facility availability [Balance Sheet and Financial Position](index=4&type=section&id=Balance%20Sheet%20and%20Financial%20Position) As of March 31, 2024, Euronet held **$1.24 billion** in cash, with total indebtedness increasing to **$1.94 billion** primarily to fund ATM cash for the travel season - Unrestricted cash and cash equivalents were **$1,236.2 million** as of March 31, 2024, a slight decrease from **$1,254.2 million** at the end of 2023, due to cash placed in reactivated ATMs and the Infinitium acquisition, offset by cash generated from operations[17](index=17&type=chunk) - Total indebtedness was **$1,938.1 million** as of March 31, 2024, up from **$1,869.6 million** at year-end 2023, largely due to cash placed in ATMs, with approximately **$579.0 million** in availability under revolving credit facilities[18](index=18&type=chunk) [Financial Statements and Reconciliations](index=4&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides definitions of non-GAAP measures, condensed consolidated financial statements, and detailed reconciliations of GAAP to non-GAAP financial metrics [Non-GAAP Measures](index=4&type=section&id=Non-GAAP%20Measures) The company utilizes non-GAAP measures like constant currency, adjusted EBITDA, and adjusted EPS to provide additional insight into performance by adjusting for non-operational or non-recurring items [Definitions of Non-GAAP Measures](index=4&type=section&id=Definitions%20of%20Non-GAAP%20Measures) This subsection defines key non-GAAP financial measures used by the company to present a clearer view of its underlying operational results - **Constant currency:** Computed as if foreign currency exchange rates did not change from the prior period to illustrate the impact of FX rate changes[21](index=21&type=chunk) - **Adjusted operating income:** Defined as operating income excluding non-cash purchase accounting adjustments[21](index=21&type=chunk) - **Adjusted EBITDA:** Defined as net income excluding interest, taxes, depreciation, amortization, share-based compensation, non-cash purchase accounting adjustments, and other non-operating or non-recurring items[22](index=22&type=chunk) - **Adjusted earnings per share:** Defined as diluted U.S. GAAP EPS excluding the tax-effected impacts of items such as foreign currency exchange gains/losses, share-based compensation, and acquired intangible asset amortization[23](index=23&type=chunk) [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated balance sheets and statements of operations, detailing the company's financial position and performance for the specified periods - The Condensed Consolidated Balance Sheets provide a snapshot of the company's financial position at the end of Q1 2024 compared to the end of the prior fiscal year[29](index=29&type=chunk)[30](index=30&type=chunk) - The Consolidated Statements of Operations detail the company's revenues, operating expenses, and net income for the first quarter, comparing the results to the same period in the previous year[31](index=31&type=chunk)[32](index=32&type=chunk) [Reconciliation of Non-GAAP Financials](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Financials) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including net income to adjusted operating income, adjusted EBITDA, and adjusted EPS - A detailed table reconciles Net Income to Adjusted Operating Income and Adjusted EBITDA for the consolidated company and each of its operating segments for Q1 2024 and Q1 2023[33](index=33&type=chunk) - A reconciliation table shows the adjustments made to Net Income to arrive at Adjusted Earnings, and the calculation from GAAP diluted EPS to Adjusted EPS for Q1 2024 and Q1 2023[34](index=34&type=chunk)

LEAWOOD, Kan., April 30, 2024 (GLOBE NEWSWIRE) -- Euronet Worldwide, Inc. ("Euronet" or the "Company") (NASDAQ:EEFT), a leading global financial technology solutions and payments provider, reports first quarter 2024 financial results. Euronet reports the following consolidated results for the first quarter 2024 compared with the same period of 2023: Revenues of $857.0 million, a 9% increase from $787.2 million (9% increase on a constant currency1 basis).Operating income of $64.0 million, a 40% increase from ...

LEAWOOD, Kan., April 22, 2024 (GLOBE NEWSWIRE) -- Euronet (NASDAQ:EEFT), a leading global financial technology solutions and payments provider, and SOFTONE Group, one of the largest cloud-based business software providers in Greece and Southeast Europe, announced today that they are partnering to deliver integrated merchant acquiring solutions in Greece. The partnership involves SOFTONE integrating its leading brands and products (ERP solutions, enterprise mobility applications and retail and restaurant man ...

LEAWOOD, Kan., April 17, 2024 (GLOBE NEWSWIRE) -- Euronet (or the "Company") (NASDAQ:EEFT) announced today it will release first quarter 2024 earnings results prior to the market opening on Wednesday, May 1, 2024. Euronet will hold a conference call the same day at 9:00 a.m. Eastern Time to discuss the results. The conference call and accompanying slide show presentation will be accessible via webcast by following the link posted on http://ir.euronetworldwide.com. Participants wanting to access the conferen ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?The ...

Shares of Euronet Worldwide, Inc. (EEFT) have gained 33.7% in the past six months compared with the industry’s 20.6% growth. The Finance sector and the S&P 500 composite index rose 19.2% and 20.4%, respectively, in the same time frame. With a market capitalization of $5 billion, the average volume of shares traded in the last three months was 0.3 million.Improved cross-border volumes, higher direct-to-consumer digital transactions, a growing ATM network, buyouts and solid cash reserves continue to drive Eur ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium also includes the Zacks Style Scores. ...

It has been about a month since the last earnings report for Euronet Worldwide (EEFT) . Shares have added about 11% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Euronet Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Euronet Q4 Earnings Beat on Internat ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving ...