EVERTEC (EVTC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 22% year-over-year to $211.8 million, driven by organic growth and the Sinqia acquisition in LATAM.

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

• GAAP Net Income attributable to common shareholders rose 146% to $24.7 million; diluted EPS up to $0.38.

• Closed the acquisition of Grandata, enhancing data analytics capabilities and expanding fintech relationships in Latin America.

• Share repurchases totaled $12.3 million in Q3 2024; $138 million remains under the repurchase program through 2025.

Financial highlights

• Q3 revenue was $211.8 million, up from $173.2 million year-over-year; Adjusted EBITDA margin was 41.3%, down 420 bps year-over-year.

• Adjusted Net Income increased to $55.4 million; Adjusted EPS grew to $0.86.

• Operating cash flow YTD was $185 million; ending cash balance was $275.4 million as of September 30, 2024.

• Net income margin for Q3 2024 was 11.7%, up from 5.8% year-over-year.

• Margin decline attributed to lower-margin Sinqia acquisition and lower one-time GetNet revenue.

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.

• Effective tax rate projected at ~5%; share count for Adjusted EPS: 65.2 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, with margin expansion in Sinqia.