EVERTEC (EVTC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $211.8 million, up 22% year-over-year, driven by organic growth and the Sinqia acquisition in Latin America.

• Adjusted EBITDA increased 11% to $87.4 million, with a margin of 41.3%, while adjusted EPS rose 8% to $0.86.

• GAAP net income attributable to common shareholders was $24.7 million, up from $10.0 million in Q3 2023.

• Closed the Grandata acquisition, expanding data analytics capabilities in Latin America and Mexico.

• Returned $92 million to shareholders year-to-date via dividends and share repurchases, including $12.3 million in Q3.

Financial highlights

• Q3 2024 revenue: $211.8 million, up from $173.2 million in Q3 2023; adjusted EBITDA: $87.4 million (41.3% margin); adjusted net income: $55.4 million; adjusted EPS: $0.86.

• GAAP net income for Q3: $24.7 million, up from $10.0 million; diluted EPS: $0.38, up from $0.15.

• Operating cash flow year-to-date: $185 million; liquidity at $469 million as of September 30, 2024.

• CapEx YTD: $70 million; full-year expectation: $85 million.

• Net debt to trailing 12-month adjusted EBITDA: 2.24x; weighted average interest rate: 6.71%.

Outlook and guidance

• 2024 revenue guidance: $840.5–$847 million, representing 21–22% growth; adjusted EPS: $3.08–$3.15, up 9–12%.

• Adjusted EBITDA margin forecasted at 39.5–40%; capital expenditures expected at $85 million.

• FX headwinds expected to persist into Q4; Grandata to contribute modestly in Q4.

• 2025 LATAM segment expected to grow low double digits on a constant currency basis, offsetting client attrition with M&A.

• Effective tax rate projected at 5%; share count for adjusted EPS: 65.2 million.