International Money Express Inc (IMXI) Q1 2025 Earnings Call Highlights: Navigating Growth ...

In This Article:

  • Total Revenue: $144.3 million.

  • Net Income: $7.8 million.

  • Adjusted EBITDA: $21.6 million.

  • Adjusted Diluted EPS: $0.35 per share.

  • Total Principal Amount Sent: Up 4% year-over-year.

  • Cash and Cash Equivalents: $151.8 million at quarter-end.

  • Free Cash Flow: Over $10 million generated during the quarter.

  • Digital Transactions Growth: Nearly 70% year-over-year increase.

  • Operating Income: $14.1 million.

  • Adjusted EBITDA Margin: 15%.

  • Total Debt: $147.4 million, down from $156.6 million at year-end.

  • Share Repurchases: Approximately 368,000 shares for $5 million.

  • Full Year 2025 Revenue Guidance: $634.9 million to $654.2 million.

  • Full Year 2025 Diluted EPS Guidance: $1.53 to $1.65.

  • Full Year 2025 Adjusted Diluted EPS Guidance: $1.86 to $2.02.

  • Full Year 2025 Adjusted EBITDA Guidance: $103.6 million to $106.8 million.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • International Money Express Inc (NASDAQ:IMXI) reported a 4% increase in the total principal amount sent, indicating underlying business strength.

  • Digital transactions grew by nearly 70% year-over-year, showcasing significant growth in their digital business.

  • The company maintained a strong balance sheet with $151.8 million in cash and generated over $10 million in free cash during the quarter.

  • Operational upgrades improved transaction processing time on the retail platform from 20 seconds to 9 seconds, enhancing agent experience.

  • The company is strategically investing in digital marketing, which has shown better-than-expected customer acquisition costs and strong customer retention.

Negative Points

  • Total revenue decreased to $144.3 million from $150.4 million in the same period last year, reflecting a decline in key financial metrics.

  • The number of transactions decreased by over 5% year-over-year, impacting fee income and overall profitability.

  • Foreign exchange income was slightly down year-over-year, affecting the company's revenue streams.

  • The company experienced a decline in net income to $7.8 million, with adjusted EBITDA margins at 15%, indicating pressure on profitability.

  • The company revised its full-year guidance due to current market uncertainties and volatility, discontinuing quarterly guidance.

Q & A Highlights

Q: Can you explain the current trends in the retail and digital sides of your business, especially given the unique US to Latin American market dynamics? A: The digital side is growing rapidly, with a 70% year-over-year increase in Q1, which has further accelerated to 80% growth in April. Retail, however, is facing challenges, with the overall market being flat. Despite this, the total principal amount sent to Latin America increased by 4% year-over-year, indicating a strong underlying market. We expect digital to continue growing at high rates, while retail may remain softer but is expected to recover over time.