International Money Express (IMXI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $171.5 million, up 1.4% year-over-year, with record quarterly revenues and strong omni-channel performance in both retail and digital.

• Adjusted EBITDA was $31.1 million (18.1% margin), up 0.6% year-over-year; adjusted EPS grew 10% to $0.55, while net income declined 9.1% to $14.0 million due to $2.7 million in restructuring charges.

• Digital revenue grew nearly 70% year-over-year, with digital transactions now 34% of total and gross margin per transaction almost double versus last year.

• Strategic acquisitions in Europe and the Dominican Republic expanded market reach and digital capabilities, with La Nacional integration tripling its EBITDA.

• Share repurchases totaled 1.64 million shares for $34.6 million in H1 2024, supporting EPS growth.

Financial highlights

• Q2 2024 revenue: $171.5 million (+1.4% YoY); adjusted EBITDA: $31.1 million (+0.6% YoY); net income: $14.0 million (-9.1% YoY); adjusted EPS: $0.55 (+10% YoY).

• Net free cash generated in Q2: $13.3 million; cash and equivalents at quarter-end: $233.2 million; total debt: $212.2 million.

• Adjusted EBITDA margin for Q2: 18.1%; net income margin: 8.2%.

• Digital send/receive transactions accounted for 34% of total, up 11% YoY.

• Six-month adjusted EBITDA: $56.5 million (+2.7% YoY); six-month adjusted EPS: $0.97 (+10.2% YoY).

Outlook and guidance

• Full-year 2024 guidance: revenue $657.6–$677.6 million; adjusted EBITDA $121.1–$124.7 million; adjusted EPS $2.07–$2.25; diluted EPS $1.73–$1.87.

• Q3 2024 guidance: revenue $170.6–$175.8 million; adjusted EBITDA $32.1–$33.1 million; adjusted EPS $0.57–$0.62.

• Guidance recalibrated to lower end due to macro headwinds in retail and industry-wide top-line pressures.

• Restructuring expected to reduce annual expenses by $2.0 million, with most benefits realized in 2025.

• Sufficient liquidity projected to fund operations, debt service, acquisitions, capital expenditures, and share repurchases.