Evertec Inc. Announces Strong Growth in Q4 and Full Year 2024 Results
Evertec Inc. (NYSE: EVTC), a leading financial technology and transaction processing company, reported impressive financial results for the fourth quarter and full year ended December 31, 2024, showcasing significant growth across all segments and successful integration of recent acquisitions.
1. Fourth Quarter 2024 Highlights
In the fourth quarter of 2024, Evertec achieved total revenue of $216.4 million, marking an 11% increase compared to $194.6 million in the same quarter of the previous year. On a constant currency basis, the revenue growth was approximately 14.5%. This surge was attributed to organic growth across all segments, enhanced by contributions from recent acquisitions, including Nubity and Grandata.
Key highlights from the quarter included:
- GAAP Net Income attributable to common shareholders soared by 249% to $40.1 million, translating to $0.62 per diluted share.
- Adjusted EBITDA rose 24% to $88.6 million.
- Adjusted earnings per share increased by 40.3% to $0.87.
- Notably, on November 19, 2024, Evertec successfully closed the acquisition of Nubity, Inc., a cloud services provider specializing in AWS infrastructure management.
2. Full Year 2024 Achievements
For the full year, Evertec reported total revenue of $845.5 million, a remarkable 22% increase from $694.7 million in 2023. The growth was driven largely by contributions from acquisitions and strong organic performance across all segments.
Further details from the annual results include:
- GAAP Net Income attributable to common shareholders rose by 41% to $112.6 million, equating to $1.73 per diluted share.
- Adjusted EBITDA was $340.2 million, reflecting a 17% increase year-on-year.
- The company returned $95.2 million to shareholders through share repurchases and dividends.
- Evertec completed a $70 million accelerated share repurchase program and closed the acquisitions of both Grandata and Nubity.
3. Detailed Financial Performance
Fourth Quarter Results
- Revenue Breakdown:
- Merchant acquiring revenue benefited from improved spread and sales volume growth.
- Payments Puerto Rico revenue continued to grow, bolstered by transaction increases and the ATH Movil platform.
- Latin America revenue reflected contributions from acquisitions and organic growth, with a one-time revenue recognition of $0.6 million from enhanced relationships in Chile.
- Net Income:
- The increase in GAAP net income was driven by higher revenues, a $8.9 million net gain related to tax credits, and lower operational costs, despite rising expenses from acquisitions.
- Adjusted EBITDA:
- The adjusted EBITDA margin improved significantly to 40.9%, up 410 basis points from the previous year, showcasing effective expense management alongside revenue growth.
Full Year Results
- Revenue Growth:
- The Latin American segment significantly contributed to the yearly revenue increase, particularly following the integration of Sinqia acquired in late 2023.
- Net Income:
- The annual net income benefitted from enhanced revenue streams and a lower effective tax rate, despite increases in depreciation and interest expenses linked to acquisitions.
- Adjusted Earnings:
- Adjusted earnings per common share increased by 16.3% to $3.28, supported by a lower share count from share buybacks throughout the year.
4. Strategic Acquisitions and Shareholder Returns
Evertec’s strategic acquisitions, namely Nubity and Grandata, are expected to enhance its service offerings, particularly in cloud and data management solutions, while also expanding its footprint in the Latin American region. The company plans to leverage its existing client base to drive growth in these new segments.
In 2024, Evertec repurchased 2.4 million shares at an average price of $34.90, with approximately $138 million remaining in its share repurchase program authorized through December 2025.
5. Outlook for 2025
Looking ahead, Evertec provided a robust outlook for 2025, forecasting total consolidated revenue between $889 million and $899 million, reflecting a growth rate of 5.1% to 6.3% on a GAAP basis. The company anticipates adjusted earnings per common share to range from $3.34 to $3.45, representing 1.8% to 5.2% growth compared to 2024.
Management remains focused on optimizing margins, allocating capital effectively, and driving organic revenue growth, as stated by Mac Schuessler, President and CEO of Evertec.
6. Conclusion
Evertec Inc. has demonstrated resilience and strong growth in 2024, marked by strategic acquisitions and a commitment to enhancing shareholder value. As the company looks forward to 2025, its proactive approach to capital deployment and revenue optimization positions it well for sustained success in the evolving financial technology landscape.
