Q1 2025 Evertec Inc Earnings Call Transcript
Key Points
- Evertec Inc (EVTC) reported a strong start to 2025 with an 11.4% increase in revenue over the prior year, reaching $228.8 million.
- Adjusted EBITDA rose by approximately 14% year over year to $89.4 million, with a margin increase of 100 basis points to 39.1%.
- The company experienced double-digit organic growth in Latin America, driven by the GetNet Chile relationship and the reacceleration of the Brazil business.
- Evertec Inc (EVTC) maintained strong liquidity with approximately $460 million as of March 31, 2025.
- The company returned $3.2 million to shareholders through dividends and has a robust M&A pipeline, indicating a focus on strategic growth.
- Currency fluctuations posed a headwind of approximately 3.3% in the quarter, impacting revenue growth.
- The Business Solutions segment saw a decrease in adjusted EBITDA by approximately 4% due to a mix shift towards lower-margin hardware and software sales.
- The company anticipates a 10% popular discount impacting revenue and adjusted EBITDA in the fourth quarter of 2025.
- Evertec Inc (EVTC) faces potential indirect impacts from tariffs and macroeconomic uncertainties, particularly in countries reliant on exports like Brazil and Chile.
- The loss of Mercado Libre transactions is expected to impact the Payments Puerto Rico and Caribbean segment, with effects starting in Q2 2025.
Good day, everybody, and welcome to the Evertec first-quarter 2025 earnings call. (Operator Instructions) Please note that today's event is being recorded.
I would now like to turn the conference over to Beatriz Brown from 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 per common share. Reconciliations to GAAP measures and certain additional information are also included
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