Evertec reports $211.8M in Q3 revenue, closes Mexico acquisition
The company’s growth is supported by strong financials, strategic acquisitions and its focus on Latin American markets.
San Juan-based financial technology provider Evertec Inc. reported third-quarter 2024 results that showed a 22% revenue increase, reaching $211.8 million, and a 146% rise in generally accepted accounting principles net income attributable to common shareholders, totaling $24.7 million for the period ended Sept. 30.
The gains are attributed to strategic acquisitions and strong organic growth across multiple regions.
“We’re pleased with our third-quarter results that demonstrate our commitment to improving our margins and expanding our presence in Latin America,” said CEO Mac Schuessler. “Our acquisition of Grandata aligns perfectly with our growth strategy and supports our mission to diversify our revenue streams.”
Evertec recently closed the acquisition of Grandata, a Mexico-based data analytics firm specializing in behavioral data for credit risk analysis, particularly focused on underbanked communities.
“This transaction enhances our existing product offering and will enable us to address our customer’s needs more fully. We plan on leveraging our existing client base to accelerate the growth of this acquisition like what we have been able to do with other transactions,” Schuessler said.
The acquisition, which was finalized on Oct. 30, will allow Evertec to provide advanced analytics to support clients in making data-driven credit decisions, according to the results.
Evertec’s revenue growth was also largely attributed to the organic expansion within its operating segments and recent acquisitions, including Sinqia, a Brazilian software company, which added to its Latin American revenue.
Furthermore, the company’s Payments Puerto Rico segment continued to thrive due to increased transaction volumes and the growth of ATH Móvil Business.
The company’s adjusted EBITDA — short for earnings before interest, taxes, depreciation and amortization — rose by 11% to $87.4 million, though the EBITDA margin dropped slightly due to the addition of Sinqia, which operates at a lower margin. Evertec also completed a $12.3 million share repurchase, further demonstrating its commitment to maximizing shareholder value.
Outlook for 2024
Evertec projects total consolidated revenue for 2024 between $841 million and $847 million, reflecting 21% to 22% growth over 2023. Adjusted earnings per share are expected to grow by 9% to 12%, reaching a range of $3.08 to $3.15 per share.
The company plans to allocate approximately $85 million in capital expenditures, including investments related to Sinqia, with an effective tax rate expected to decrease to 5%, down from last year’s 6% to 7%.
