EVERTEC, Inc. (EVTC)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 was a strong finish: revenue rose 11% to $216.4M (14.5% CC), adjusted EBITDA grew 24% to $88.6M, and adjusted EPS increased 40% to $0.87; GAAP diluted EPS was $0.62 .
• Margin optimization and cost efficiencies drove adjusted EBITDA margin up ~410 bps to 40.9% despite FX headwinds and acquisition mix; management reiterated focus on organic growth and margin optimization in 2025 .
• 2025 outlook: revenue $889–$899M (+5.1% to +6.3%), adjusted EPS $3.34–$3.45 (+1.8% to +5.2%), adjusted EBITDA margin 39.5%–40.5%, CapEx ~$85M, effective tax rate 6%–7% .
• Strategic catalysts: Nubity acquisition closed in November; strong LatAm pipeline and a new Grupo Aval win in Colombia; Sinqia growth reaccelerating post-integration .

What Went Well and What Went Wrong

What Went Well

• Record Q4 constant-currency revenue growth (~14.5%) across segments, aided by spread improvements in Merchant Acquiring and ATH Movil strength in Puerto Rico .
• Margin execution: adjusted EBITDA margin expanded to 40.9% (+410 bps YoY) as cost initiatives offset mix headwinds; management expects gradual margin improvement before the Popular 10% discount resets in Q4’25 .
• Strategic progress in LatAm: “strongest pipeline in years” and new Grupo Aval deal; Sinqia growth “reaccelerating” after modernization and repricing work. Quote: “We are pleased to report that we have observed a reacceleration in growth and remain optimistic...” .

What Went Wrong

• FX headwinds: LatAm growth negatively impacted by 9.6 percentage points due to BRL devaluation; Q4 also had currency headwinds vs plan .
• MELI attrition: lower processing services to LatAm segment and expected client churn in 2025 (partly offset by acquisitions and Brazil acceleration) .
• Higher interest expense from Sinqia financing, and one-time benefits (e.g., Getnet catch-ups) are ending as the relationship moves to per-transaction pricing, reducing sporadic high-margin “blips” going forward .

Financial Results

Note: Wall Street consensus estimates via S&P Global were unavailable due to request limits; therefore, beat/miss vs consensus cannot be assessed for this quarter.

Segment revenue breakdown (Q4 YoY):

Segment adjusted EBITDA:

Key KPIs and items

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We delivered another year of record revenue... successfully integrated Sinqia. Our focus for 2025 will be on optimizing margin, continuing to allocate capital thoughtfully and driving organic revenue growth.” — CEO Mac Schuessler .
• “Adjusted EBITDA margin was 40.9%, an increase of 410 bps... efficiency initiatives aimed at offsetting the 10% discount on Popular services starting in October 2025.” — CFO Joaquín Castrillo .
• “We have observed a reacceleration [at Sinqia]... improvements in customer engagement, platform modernization and contract repricing... encouraging indicators for 2025 and beyond.” — CEO Mac Schuessler .
• “Nubity... provides a significant cross-sell opportunity... allowing us to provide better service offerings... migrate to the cloud and manage applications more modernly.” — CEO Mac Schuessler .

Q&A Highlights

• Segment growth drivers: Merchant Acquiring growth in 2024 split roughly 1/3 pricing, 1/3 volume, 1/3 non-transactional fees; early 2025 still sees residual pricing tailwinds before normalizing .
• Sinqia trajectory: Growth reaccelerating with technology upgrades, repricing to volume-based contracts, and margin optimization; team closer to customers to enable cross/upsell .
• Getnet Chile: Ending catch-up events; moving to per-transaction pricing, reducing one-off revenue “blips” .
• Popular MSA discount: Cost initiatives well underway; management “incredibly well prepared” for the 10% discount impact in late 2025 .
• Capital allocation & M&A: Focus remains on tuck-in deals (Grandata, Nubity) and continued pipeline in LatAm; balance sheet near lower-end leverage range .

Estimates Context

• Wall Street consensus for EVTC Q4 2024 EPS and revenue via S&P Global was unavailable due to daily request limits in the data service; as a result, we cannot assess beat/miss vs consensus for this quarter. We attempted to fetch “Primary EPS Consensus Mean” and “Revenue Consensus Mean” for Q4 2024, Q3 2024, Q2 2024 but the request hit an SPGI rate limit.
• Given the strong operational performance (revenue, margins, adjusted EPS), sell-side models may need to reflect: the phase-out of Getnet catch-ups (smoother revenues), FX headwinds in LatAm, segment growth cadence (Merchant pricing normalization), and 2025 guide assumptions (margin band, tax rate, CapEx) .

Key Takeaways for Investors

• Q4 print shows solid momentum: revenue $216.4M, adj. EBITDA $88.6M, adj. EPS $0.87; margin execution remains a central pillar heading into 2025 .
• LatAm diversification working: 18% revenue growth in Q4 with FX headwinds; pipeline conversion (Grupo Aval) and Sinqia reacceleration support medium-term growth .
• Merchant Acquiring tailwinds normalize in 2025; expect growth driven more by volumes and non-transactional fees as pricing anniversaries .
• Structural changes: Getnet Chile moves to per-transaction pricing; expect fewer one-offs, improving predictability .
• Prepared for Popular MSA discount in Q4’25: cost actions already contributing; full annual impact ~$18M in FY’26 largely in Business Solutions .
• Balance sheet flexibility: net debt/TTM adj. EBITDA ~2.06x; liquidity ~$467.5M; interest rate down ~100 bps; capacity for tuck-in M&A and shareholder returns (dividend $0.05) .
• 2025 guide indicates measured growth with margin discipline; watch FX, MELI attrition, and segment growth mix as key drivers of intra-year results .