Q4 2024 Evertec Inc Earnings Call Transcript
Key Points
- Evertec Inc (EVTC) reported a record revenue of $845.5 million for 2024, marking a 22% increase over the previous year.
- The successful integration of Sinqia, the largest acquisition in Evertec's history, contributed significantly to revenue growth, particularly in Latin America.
- Adjusted EBITDA rose by approximately 17% year over year to $340.2 million, with a margin of 40.2%, reflecting strong efficiency and expense management.
- The company has developed a robust business pipeline in Latin America, converting opportunities into significant business wins, including a deal with Grupo Aval in Colombia.
- Evertec Inc (EVTC) returned approximately $95 million to shareholders through share purchases and dividends, demonstrating a strong commitment to shareholder value.
- The economic activity index in Puerto Rico decreased slightly in 2024, although it remains above pre-pandemic levels.
- The adjusted EBITDA margin decreased by approximately 180 basis points from the previous year, primarily due to the inclusion of Sinqia, which has lower margins.
- Evertec Inc (EVTC) faces a 10% discount on Popular services starting in October 2025, which will impact revenue and adjusted EBITDA.
- Currency fluctuations posed a significant headwind, negatively impacting segment growth by 9.6 percentage points, mainly due to the devaluation of the Brazilian currency.
- The company anticipates client attrition in 2025, notably from Mercado Libre, which could affect growth in the Latin America segment.
Good afternoon, everyone, and welcome to Evertec's fourth-quarter 2024 earnings conference call. Today's conference call is being recorded. (Operator Instructions)
I would now like to turn the conference over to Beatriz Brown-Sáenz of Investor Relations. Please go ahead.
Thank you and good afternoon. With me today are Mac Schuessler, our President and Chief Executive Officer; and Joaquin Castrillo, our Chief Financial Officer.
Before we begin, I would like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC report.
During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as adjusted EBITDA, adjusted net income, and adjusted earnings for common shares. Reconciliations to GAAP measures and certain additional information are
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