International Money Express(US:IMXI)2021-05-07 23:00Financial Data and Key Metrics Changes - Net income was $9 million, a 58% increase compared to the prior year period. Adjusted net income was $10.6 million, an increase of 40% over the prior year period. Adjusted EBITDA increased 27% to $16.8 million, and revenues grew 22% to $94.6 million [9][26]. - Since becoming a public company, revenue has increased 52% from $247 million to $374 million, adjusted EBITDA has increased 78% from $40 million to $71 million, and net income has improved from a loss of $12 million to a gain of $40 million [10]. Business Line Data and Key Metrics Changes - The company generated 8 million remittance transactions in Q1 2021, a 19% increase over Q1 2020. Transactions in emerging markets grew by 39% compared to the first quarter of 2020 [13]. - The adjusted EBITDA margin for the quarter was 17.8%, a 70 basis point improvement compared to Q1 2020 [28]. Market Data and Key Metrics Changes - The company achieved a 20% market share in its core markets, which represent approximately 75% of the entire Latin American market [15]. - Transactions processed through the mobile app increased by 140% compared to the prior year period, and the number of wires deposited directly into bank accounts increased by 47% [19]. Company Strategy and Development Direction - The company focuses on a hybrid strategy, partnering with agents in prime locations to enhance customer service [11]. - The company believes in providing customers with multiple service options, investing in both retail and digital services to cater to diverse consumer needs [18][22]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's unique business model and its ability to deliver strong financial performance in both challenging and favorable times [21]. - The company reaffirmed its guidance for adjusted EBITDA and net income, projecting revenue growth between 16% and 18% for the year [29]. Other Important Information - The company has consistently met or exceeded its quarterly EBITDA target in all quarters since going public [10]. - The company is cautious about the sustainability of larger principal amounts sent by consumers, indicating that it is preparing for potential normalization [52]. Q&A Session Summary Question: Geographic mix expansion and revenue contribution from core vs emerging markets - Management noted that emerging markets are growing significantly, contributing around 30% to 40% of transactions, but exact percentages were not disclosed [36]. Question: Persistence of larger principal amounts - Management indicated that larger principal amounts have been consistent and attributed this to ongoing employment in critical sectors, but they remain cautious about future normalization [48][52]. Question: Capital allocation and M&A strategy - The company is focused on M&A opportunities in niche markets and adjacent businesses, while being cautious about overpaying in the current environment [54][58]. Question: Agent location runway and productivity - Management highlighted significant opportunities for growth in the western U.S. and noted that agent activation levels have increased substantially compared to the previous year [70][88].