The Western Union Company (WU) Q3 2024 earnings summary

Executive summary

• Q3 2024 GAAP revenue was $1.04 billion, down 6% year-over-year; adjusted revenue excluding Iraq rose 1%.

• Branded Digital achieved 15% transaction growth and 9% adjusted revenue growth, marking its sixth consecutive quarter of double-digit transaction increases.

• Consumer Services revenue increased 32% (15% adjusted), with continued double-digit growth expected.

• GAAP EPS was $0.78, including a $0.40 benefit from an IRS settlement; adjusted EPS was $0.46, up from $0.43 last year.

• Consumer Money Transfer (CMT) revenue fell 9% (8% adjusted), but transactions rose 3% year-over-year.

Financial highlights

• Q3 net income was $264.8 million, up 55% year-over-year, driven by a significant tax benefit.

• Q3 operating income was $164.9 million, down 22% year-over-year; nine-month operating income was $547.7 million, down 17%.

• GAAP operating margin was 15.9% (down from 19.2%); adjusted operating margin was 19.1% (down from 19.6%).

• Cash flow from operations for the nine months was $272.3 million, impacted by higher income taxes and IRS settlement payments.

• Cash and cash equivalents at quarter-end were $1,097.6 million; debt outstanding was $2.6 billion.

Outlook and guidance

• 2024 GAAP revenue expected between $4,125–$4,200 million; adjusted revenue $4,150–$4,225 million.

• Adjusted EPS guidance is $1.70–$1.80; GAAP EPS guidance is $1.94–$2.04.

• Adjusted operating margin forecast at 19–21%; GAAP operating margin at 17–19%.

• Consumer Services revenue is expected to continue double-digit growth in 2024.

• Guidance assumes no material macroeconomic changes; Iraq revenue expected at lower end of $10–$30 million range.