International Money Express, Inc. (IMXI)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 revenue was $164.8M (-4.1% YoY), GAAP diluted EPS was $0.49 (flat YoY), adjusted diluted EPS reached a Q4 record at $0.57 (+1.8% YoY), and adjusted EBITDA was $30.9M (-7.2% YoY). The adjusted EBITDA margin was 18.8% .
• Digital momentum accelerated: digital revenue rose 48.3% YoY to $5.6M, digital transactions grew 71.7% YoY, and the consumer base expanded to 5.7M (+1.8% YoY), underscoring successful omnichannel execution .
• 2025 outlook guides revenue of $657.5M–$677.5M, GAAP diluted EPS of $1.76–$1.91, adjusted diluted EPS of $2.09–$2.26, and adjusted EBITDA of $113.8M–$117.3M; Q1 2025 guidance calls for revenue of $145.5M–$149.9M and adjusted EBITDA of $23.3M–$24.0M .
• Catalyst: Board suspended the strategic alternatives process and emphasized executing an independent plan centered on scaling higher-margin digital while leveraging a profitable retail engine; buybacks to resume with a baseline ~$40M in 2025 .

What Went Well and What Went Wrong

What Went Well

• Digital adoption and unit economics: digital transactions +71.7% YoY and digital revenue +48.3% YoY; management reiterated digital gross margin per transaction now exceeds retail and will scale with a ninefold increase in 2025 digital marketing spend ($~1M to ~$9M) .
• Profitability discipline: adjusted diluted EPS hit a Q4 record at $0.57; underlying staff costs and G&A down YoY, sales and marketing costs remained well below 10% of gross margin .
• Capital allocation: repurchased ~1.03M shares in Q4 ($20.2M), ~3.77M in 2024 ($75.1M), with ~$63.2M remaining under program and baseline ~$40M targeted for 2025 repurchases .

What Went Wrong

• Retail/macro headwinds: Q4 revenue fell 4.1% YoY; transactions down 3.2%; Mexico corridor softness and migration of growth to digital pressured retail volumes and profitability .
• Cash generation impact: net free cash generated declined to $4.5M in Q4, mainly due to the $12.0M Amigo Paisano acquisition and $1.7M strategic review transaction costs in Q4 .
• Margin compression: adjusted EBITDA fell 7.2% YoY; management flagged a “significant uptick” in 2025 digital marketing spend embedded in outlook and ongoing uncertainty in political/macro backdrop across key corridors .

Financial Results

Quarterly progression (oldest → newest)

Q4 YoY comparison

KPIs (Q4 2024 with YoY deltas)

Note: The press release cites Q4 2024 principal down 1.6% YoY; slides cite -2.5% YoY. We anchor KPIs to the investor materials slide deck; management narrative references consistent softness in principal growth tied to macro .

Balance sheet and cash

Guidance Changes

Notes: Guidance excludes transaction costs related to the now-suspended review of strategic alternatives .

Earnings Call Themes & Trends

Management Commentary

• “We set a fourth quarter record for adjusted diluted EPS of $0.57…Digital transactions surged 71.7% year-over-year, while digital revenue was up 48.3%…Our consumer base expanded to 5.7 million, up 1.8% year-over-year” — Robert Lisy, CEO .
• “Adjusted EBITDA for the quarter reflects a significant uptick in digital marketing spend, which we'll see more of as we move into 2025” — Andras Bende, CFO .
• “We'll move from a digital marketing spend…around $1 million up to $9 million in 2025…plus ~$3–$3.5 million for staffing and retail marketing” — Andras Bende .
• “Retail…continues to be more profitable than any digital business in the market and is…an asset for years to come…fueling our expansion into digital” — Robert Lisy .

Q&A Highlights

• Amigo Paisano acquisition: rationale was margin accretion, talent/infrastructure, and brand strength; defensive and offensive benefits; high-quality team in Guatemala supports scaling; implied attractive multiple .
• Digital ROI and CAC: performance marketing muscle improving; CAC stable-to-lower; leveraging data across channels to dynamically optimize spend; retention and wallet share strong .
• 2025 outlook drivers: co-leading headwinds are macro uncertainty (Mexico, immigration) and mix shift to digital; retail expected negative growth; company investing to capture digital growth while defending retail share .
• Capital returns: baseline ~$40M buybacks in 2025, with flexibility for opportunistic blocks .
• Revenue optimization: updated fees on uncollected money orders/wires boosted other income in Q4, expected to help in 2025 .
• Retail build-out: focus on Western states under-penetration; expanding agent footprint and targeted pricing to win share at key retailers/ZIP codes .

Estimates Context

• S&P Global consensus (Revenue, EPS) for Q4 2024 and FY 2024 was unavailable due to request limit constraints at the time of retrieval; therefore, estimate comparisons are not presented here. Values would typically be retrieved from S&P Global.
• Implications: 2025 guidance embeds materially higher digital marketing spend (~$9M) and increased staffing/retail marketing ($~3–$3.5M), implying potential near-term pressure to Street EBITDA/EPS estimates versus 2024 actuals, offset by expected digital scale benefits over time .

Key Takeaways for Investors

• Q4 2024 delivered resilient EPS with adjusted diluted EPS at a record $0.57 despite revenue/margin pressure, supported by cost discipline and buybacks .
• Digital is the growth engine: transactions +71.7% YoY, revenue +48.3% YoY; 2025 outlook includes a ~9x increase in digital marketing spend to accelerate customer capture—watch for near-term margin trade-offs and medium-term revenue/ARPU gains .
• Retail remains strategically and financially important: highly cash generative, with targeted agent expansion and pricing actions in under-penetrated Western states to stabilize share in a soft macro .
• Capital returns are a tangible support: baseline ~$40M buybacks planned in 2025, following $75.1M in 2024; provides downside support and EPS accretion if valuation remains compressed .
• Corporate clarity: suspension of strategic alternatives removes overhang; narrative shifts to executing digital scale and retail optimization—monitor Investor Day disclosures for KPIs (CAC/retention/payback) .
• Product catalyzers: WhatsApp transfers and international mobile top-ups enhance engagement and convenience, potentially improving digital funnel conversion and retention .
• Near-term trading lens: anticipate estimate/tactical positioning around 2025 guidance embedding heavier opex for digital capture; upside optionality from rapid digital cohort maturation and fee optimization in “Other income” .

Appendix: Additional Context

Corporate updates and non-GAAP adjustments

• Board suspended strategic alternatives review after a robust process, prioritizing value creation as an independent public company via digital expansion and share repurchases .
• Non-GAAP adjustments include share-based comp, restructuring costs, transaction costs, amortization of intangibles, and tax effects; reconciliations provided in 8-K/exhibit and slides .

Notable press releases (Q4 period and proximate)

• Acquisition of Amigo Paisano (Dec 4, 2024): strengthens digital footprint; anticipated incremental adjusted EBITDA of $3.5–$5.0M in 2025 .
• International top-up (Dec 12, 2024): cross-border mobile top-ups in 130+ countries via Ding partnership; available across retail and digital channels .
• WhatsApp wire transfers (Feb 20, 2025): conversational payments channel; aligns with customer behavior to enhance convenience and support .

Operating details and cash/repurchases

• Q4 cash & cash equivalents $130.5M; Q4 net free cash generated $4.5M affected by $12.0M M&A and $1.7M transaction costs .
• Q4 buybacks 1,025,821 shares for $20.2M; 2024 total 3,765,320 shares for $75.1M; $63.2M authorization remaining .

All data and quotations are sourced from company filings, earnings materials, and transcripts as cited above.