International Money Express ((IMXI)) has held its Q1 earnings call. Read on for the main highlights of the call.
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International Money Express’ recent earnings call painted a mixed picture, highlighting significant growth in digital transactions and operational improvements, while also acknowledging declines in revenue and key financial metrics. The company expressed caution in its revised full-year guidance due to prevailing market uncertainties.
Digital Transactions Growth
The company reported impressive growth in digital transactions, which surged nearly 70% year-over-year in the first quarter and further accelerated to approximately 80% growth in April. This robust expansion is credited to strategic investments in digital marketing and a concentrated focus on enhancing the digital business.
Improved Operational Efficiency
Operational efficiency saw notable improvements, with transaction processing time on the retail platform reduced from 20 seconds to just 9 seconds, significantly enhancing the agent experience. Additionally, system reliability achieved an impressive uptime of 99.995%.
Strong Balance Sheet
International Money Express ended the quarter with a solid financial position, holding $151.8 million in cash and generating over $10 million in free cash flow. The company maintains low net leverage, providing it with the flexibility to pursue growth investments.
Decline in Revenue and Key Metrics
Despite positive developments in digital transactions, the company faced a decline in total revenue, which fell to $144.3 million from $150.4 million in the same period last year. Net income and adjusted EBITDA also saw year-over-year declines, standing at $7.8 million and $21.6 million, respectively.
Decreased Number of Transactions
The company experienced a decrease in the number of transactions year-over-year, despite a 4% increase in the total principal amount sent. This was attributed to larger principal amounts being sent less frequently, impacting money transfer fees.
Revised Full Year Guidance
Looking ahead, International Money Express revised its full-year 2025 guidance to account for current market uncertainties. The company now forecasts revenue between $634.9 million and $654.2 million, reflecting the challenging market dynamics.
In summary, International Money Express’ earnings call highlighted a dual narrative of digital growth and operational improvements against a backdrop of declining revenue and transaction numbers. The company’s cautious outlook for the full year underscores the uncertain market conditions it faces.