International Money Express Inc (IMXI, Financial), a leading omnichannel money transfer service to Latin America, released its Q3 2023 earnings report on November 7, 2023. The company reported strong operating results, with total revenues of $172.4 million, marking a 22.5% increase compared to Q3 2022. This revenue growth was largely attributed to the solid core growth in the underlying business and the inclusion of La Nacional in the U.S. and i-Transfer in Europe.
Financial Performance
Despite the increase in revenue, IMXI's net income decreased by 10.8% to $14.8 million. The decrease was largely due to non-core items and a $2.9 million tax benefit in Q3 2022 that did not recur in Q3 2023. Diluted earnings per share also decreased by 4.7% to $0.41. However, the company's Adjusted EBITDA grew by 14% to $31.7 million, surpassing company projections.
IMXI also reported a 35.1% increase in unique, active customers to 4.0 million, who generated 15.4 million money transfer transactions, marking a 25.7% increase. The company also saw a 62.9% growth in digital transactions, resulting in $6.6 billion in principal transferred, a 19.8% increase. This principal translates to a 21.8% market share, up from 20.6% in the top 5 U.S. to Latin America remittance markets.
Year-to-Date Financial Results
For the first nine months of 2023, IMXI reported a 24.1% increase in revenues to $487.0 million, driven by a 26.9% increase in net money transfer transactions. However, net income decreased by 5.2% to $42.0 million. Adjusted EBITDA increased by 13.8% to $86.7 million.
Share Repurchase and Guidance
The company repurchased approximately 502,000 shares of its common stock for $10.0 million during Q3 2023 under its share repurchase program. For Q4 2023, IMXI provided guidance of revenue between $170.0 million to $181.0 million, up 10% to 17%, and Adjusted EBITDA of $31.4 million to $33.4 million, up 8% to 15%.
Balance Sheet and Cash Flow
As of the end of Q3 2023, IMXI had $222.4 million in cash and cash equivalents. Net Free Cash Generated was $17.6 million, down 4.6% compared to Q3 2022. The decrease was primarily due to the $2.9 million tax benefit in Q3 2022 that did not recur in Q3 2023 and other factors impacting net income growth.
Explore the complete 8-K earnings release (here) from International Money Express Inc for further details.
