Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q1 2024 Earnings Presentation
23 slides from Euronet Worldwide's earnings presentation, May 1, 2024
Slide 1: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results Michael J. Brown | Chairman & CEO Rick L. Weller | EVP & CFO Scott Claassen | General Counsel Euronet | www.euronetworldwide.com 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this news release that concern Euronet's or its management's intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking
Slide 3: Defined Terms
Defined Terms Unless specifically noted otherwise within this presentation, the following terms are hereby defined as follows: Constant currency measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of
Slide 4: Financial Highlights First Quarter 2024
Financial Highlights First Quarter 2024 Rick L. Weller | EVP & CFO Euronet | www.euronetworldwide.com 4 121322-1
Slide 5: Financial Highlights First Quarter 2024
Financial Highlights First Quarter 2024 • Revenue – $857.0 million • Adjusted EBITDA - $108.8 million • 9% increase from $787.2 million for Q1 2023 • 17% increase from $92.8 million for Q1 2023 • 9% increase on a constant currency basis • 19% increase on a constant currency basis • Operating Income
Slide 6: Balance Sheet Overview
Financial Highlights First Quarter 2024 Balance Sheet Overview USD 12/31/2023 3/31/2024 (in millions) Unrestricted Cash $ 1,254.2 $ 1,236.2 ATM Cash 525.2 599.7 Settlement Assets 1,681.5 1,413.5 Total Assets 5,894.4 5,693.6 Total Debt 1,869.6 1,938.1 Total Debt to Trailing Twelve Month Adjusted EBIT
Slide 7: Same Quarter Prior Year Comparison
Financial Highlights First Quarter 2024 Same Quarter Prior Year Comparison Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 EFT Processing $ 192.2 $ 217.2 $ 6.9 $ 21.1 $ 29.6 $ 44.7 % Change 13% 206% 51% epay 237.4 257.1 27.5 26.6 29
Slide 8: Same Quarter Prior Year Comparison – Constant Currency
Financial Highlights First Quarter 2024 Same Quarter Prior Year Comparison – Constant Currency* Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income Q1 2023 Q1 2024* Q1 2023 Q1 2024* Q1 2023 Q1 2024* EFT Processing $ 192.2 $ 216.0 $ 6.9 $ 22.1 $ 29.6 $ 45.5 % Change 12% 220% 54% epay
Slide 9: Business Update
Business Update Michael J. Brown| Chairman & CEO Euronet | www.euronetworldwide.com 9 121322-1
Slide 10: Q1 Results 2017–2024: Expansion Strategies Deliver Results
Q1Results 2017 – 2024 Expansion Strategies Deliver Results ($ in millions) • A record first quarter Adjusted EPS driven by margin 900 120 growth 800 100 • Strategic acquisition of Infinitium 700 600 80 • Further expansion of Merchant Services business Revenue • Geographic expansion into new markets
Slide 11: An Update on Market and Industry Trends Impacting our Business
An Update on Market and Industry Trends Impacting our Business Trends Impacting Euronet • International travel growth with international tourism to reach record levels • Increased travel budget in 2024 • Wages continue to outpace inflation Euronet | www.euronetworldwide.com 11
Slide 12: EFT Business Segment
Business Segment EFT Key Growth Drivers Signed • ATM Network Participation Agreement (NPA) for Deposits with Pekao • Our Ren Technology Platform Bank (Poland) signed • Launch of new countries • Merchant Services Greece: signed 19,000 merchants with POS terminals and 16,000 merchants with softPOS sol
Slide 13: Ren Technology Solutions
Technology Solutions Ren Ren is a modern enterprise Signed payments platform • Debit Issuer Processing Agreement with Bank Raya, a digital providing mission critical banking arm of BRI, one of the largest State-Owned Banks in payment solutions to banks, Indonesia fintechs and central bank • Enhanced
Slide 14: epay Business Segment
Business Segment epay Key Growth Drivers Signed • NeoCurrency in the USA for digital B2B channel content • epay products and distribution solutions • SumUp, a payment solutions fintech company, using our • Digital channel growth Conductor platform as their closed-loop card processor to be • Geograph
Slide 15: Money Transfer Business Segment
Business Segment Money Transfer Key Growth Drivers Network Growth • We have the most strategic Our network reaches: network in the world to move • 198 countries and territories money • 4.1 billion bank accounts and 2 billion wallet accounts • Strong value proposition across • 583,000 total locations
Slide 16: Dandelion Technology Solutions
Technology Solutions Dandelion Dandelion is the largest real- time, cross-border payment Increased Sales Momentum platform in the world, • Robust pipeline of advanced prospects across multiple verticals and enabling payments into regions bank accounts, cash pick- • HSBC continues to expand its use o
Slide 17: Summary of the Quarter
Summary of the Quarter • A record first quarter Adjusted EPS • Continued growth of our Merchant Services Business • Expansion into new markets • Completion of the Infinitium acquisition • Improving economic and travel trends • Improving profit margins • Strong growth of our network and solutions • C
Slide 18: Appendix
Appendix Euronet | www.euronetworldwide.com 18
Slide 19: Reconciliation of Net Income to Adjusted Operating Income and Adjusted EBITDA
Reconciliation of Net Income to Adjusted Operating Income (Expense) and Adjusted EBITDA Three months ended March 31, 2024 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 26.2 Add: Income tax expense 16.0 Add: Total other expense, net 21.8 Operating income (expense) $
Slide 20: Reconciliation of Net Income to Operating Income and Adjusted EBITDA
Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA Three months ended March 31, 2023 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 19.8 Add: Income tax expense 17.2 Add: Total other expense, net 8.6 Operating (loss) income $ 6.9 $ 27.5 $
Slide 21: Reconciliation to Constant Currency Amounts by Segment
Reconciliation of Revenue, Adjusted Operating Income and Adjusted EBITDA to Constant Currency Amounts by Segment Three months ended ended March 31, 2024 EFT Money Corporate Processing epay Transfer Services Consolidated Revenue $ 217.2 $ 257.1 $ 384.6 $ (1.9) $ 857.0 Add: Estimated foreign currency
Slide 22: Reconciliation of Adjusted Earnings per Share
Reconciliation of Adjusted Earnings per Share EURONET WORLDWIDE, INC. Reconciliation of Adjusted Earnings per Share (unaudited - in millions, except share and per share data) Three Months Ended March 31, 2024 2023 Net income attributable to Euronet Worldwide, Inc. $ 26.2 $ 20.1 Foreign currency exch
Slide 23: Thank you
Thank you Euronet | www.euronetworldwide.com 23