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Western Union Reports First Quarter 2024 Results
The Company's first-quarter revenue of $1.05 billion improved 1% on a reported basis or grew 3% on a constant currency basis, net of Argentina inflation compared to the prior year period, and excluding last year's contribution from Business Solutions.
"This year is off to a positive start with high-single digit revenue growth in our Branded Digital business," said Devin McGranahan, President and Chief Executive Officer, Western Union. "The acceleration of our digital business was a big driver of the strong performance in our Consumer Money Transfer business and positions us well for the remainder of the year. We also continue to make progress in stabilizing our retail business, with the second consecutive quarter of positive retail transactions trends."
GAAP EPS in the first quarter was $0.41 compared to $0.40 in the prior year period. Adjusted EPS in the first quarter was $0.45 compared to $0.43 in the prior year period. GAAP and adjusted EPS in the current period benefited from a lower share count.
Q1 Business Results
The Company's Consumer Money Transfer (CMT) segment revenue increased 3% on a reported and adjusted basis, while transactions increased 6% compared to the prior year period. Regionally, revenue increased in MEASA, LACA, and North America. This growth was partially offset by softness in Europe & CIS and APAC. Branded Digital revenue increased 9% on a reported and adjusted basis with transaction growth of 13%. The Branded Digital business represented 23% and 31% of total CMT revenues and transactions, respectively. Consumer Services segment revenue grew 5% on a reported basis and 8% on an adjusted basis, benefiting from the strength of our Retail Money Order business as well as new services we are continuing to introduce to our customers.
Q1 Financial Results
GAAP operating margin in the quarter was 18.3%, compared to 19.7% in the prior year period, and was impacted by higher operating expense redeployment costs. The adjusted operating margin was 19.7% compared to 20.5% in the prior year period. GAAP and adjusted operating margins decreased mainly due to timing of marketing spend. The GAAP effective tax rate in the quarter was 16.0%, compared to 16.1% in the prior year period. The adjusted effective tax rate was 15.6% in the quarter, compared to 13.5% in the prior year period, with the increase primarily due to the effects of the sale of Business Solutions in the prior period.
2024 Outlook
Based on the performance in the first quarter, the Company updated full year 2024 revenue and EPS outlook. The outlook assumes no material changes in macroeconomic conditions.
Revised 2024 Outlook Previous 2024 Outlook
-------------------- -------------------------------- --------------------------------
GAAP Adjusted GAAP Adjusted
-------------------- ---------------- ---------------- ---------------- ----------------
Revenue(1) $4,125 to $4,200 $4,150 to $4,225 $4,075 to $4,175 $4,100 to $4,200
-------------------- ---------------- ---------------- ---------------- ----------------
Operating Margin 18% to 20% 19% to 21% 18% to 20% 19% to 21%
-------------------- ---------------- ---------------- ---------------- ----------------
EPS(2) $1.62 to $1.72 $1.70 to $1.80 $1.57 to $1.67 $1.65 to $1.75
-------------------- ---------------- ---------------- ---------------- ----------------
Non-GAAP Measures
Western Union presents a number of non-GAAP financial measures because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. Constant currency results assume foreign revenues are translated from foreign currencies to the U.S. dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year. The Company estimates Argentina inflation as the revenue growth not attributable to either transaction growth or the change in price (revenue divided by principal).
Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the "Investor Relations" section of the Company's website at https://ir.westernunion.com.
Additional Statistics
Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release. All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.
Environmental, Social, and Governance (ESG)
Western Union is committed to making a positive impact. For more details on how Western Union is addressing some of the most pressing issues facing society, our shared environment, and our Company, please view our latest ESG report: https://corporate.westernunion.com/esg.
Investor and Analyst Conference Call and Presentation
The Company will host a conference call and webcast at 4:30 p.m. ET today.
The webcast and presentation will be available at https://ir.westernunion.com. Registration for the event is required, so please register at least 15 minutes prior to the scheduled start time. A webcast replay will be available shortly after the event.
To listen to the conference call via telephone in the U.S., dial +1 (719) 359-4580 15 minutes prior to the start of the call, followed by the meeting ID, which is 989 9147 2894, and the passcode, which is 665244, or follow this link. To listen to the conference call via telephone outside the U.S., dial the country number from the international directory, followed by the meeting ID, which is 989 9147 2894, and the passcode, which is 665244.
Safe Harbor Compliance Statement for Forward-Looking Statements
This press release contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as "expects," "intends," "targets," "anticipates," "believes," "estimates," "guides," "provides guidance," "provides outlook," "projects," "designed to," and other similar expressions or future or conditional verbs such as "may," "will," "should," "would," "could," and "might" are intended to identify such forward-looking statements. Readers of this press release of The Western Union Company (the "Company," "Western Union," "we," "our," or "us") should not rely solely on the forward-looking statements and should consider all uncertainties and risks discussed in the Risk Factors section and throughout the Annual Report on Form 10-K for the year ended December 31, 2023. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement.
Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: (i) events related to our business and industry, such as: changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic downturns and trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate, including downturns or declines related to interruptions in migration patterns or other events, such as public health emergencies, epidemics, or pandemics, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to price or customer experience, with global and niche or corridor money transfer providers, banks and other money transfer and payment service providers, including digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies and related exchanges and protocols, and other innovations in technology and business models; geopolitical tensions, political conditions and related actions, including trade restrictions and government sanctions, which may adversely affect our business and economic conditions as a whole, including interruptions of United States or other government relations with countries in which we have or are implementing significant business relationships with agents, clients, or other partners; deterioration in customer confidence in our business, or in money transfer and payment service providers generally; failure to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; our ability to adopt new technology and develop and gain market acceptance of new and enhanced services in response to changing industry and consumer needs or trends; mergers, acquisitions, and the integration of acquired businesses and technologies into our Company, divestitures, and the failure to realize anticipated financial benefits from these transactions, and events requiring us to write down our goodwill; decisions to change our business mix; changes in, and failure to manage effectively, exposure to foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers; changes in tax laws, or their interpretation, any subsequent regulation, and unfavorable resolution of tax contingencies; any material breach of security, including cybersecurity, or safeguards of or interruptions in any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; our ability to realize the anticipated benefits from restructuring-related initiatives, which may include decisions to downsize or to transition operating activities from one location to another, and to minimize any disruptions in our workforce that may result from those initiatives; our ability to attract and retain qualified key employees and to manage our workforce successfully; failure to manage credit and fraud risks presented by our agents, clients, and consumers; adverse rating actions by credit rating agencies; our ability to protect our trademarks, patents, copyrights, and other intellectual property rights, and to defend ourselves against potential intellectual property infringement claims; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; (ii) events related to our regulatory and litigation environment, such as: liabilities or loss of business resulting from a failure by us, our agents, or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof, including laws and regulations designed to protect consumers, or detect and prevent money laundering, terrorist financing, fraud, and other illicit activity; increased costs or loss of business due to regulatory initiatives and changes in laws, regulations and industry practices and standards, including changes in interpretations, in the United States and abroad, affecting us, our agents or their subagents, or the banks with which we or our agents maintain bank accounts needed to provide our services, including related to anti-money laundering regulations, anti-fraud measures, our licensing arrangements, customer due diligence, agent and subagent due diligence, registration and monitoring requirements, consumer protection requirements, remittances, immigration, and sustainability reporting including climate-related reporting; liabilities, increased costs or loss of business and unanticipated developments resulting from governmental investigations and consent agreements with, or investigations or enforcement actions by regulators and other government authorities; liabilities resulting from litigation, including class-action lawsuits and similar matters, and regulatory enforcement actions, including costs, expenses, settlements, and judgments; failure to comply with regulations and evolving industry standards regarding consumer privacy, data use, the transfer of personal data between jurisdictions, and information security, failure to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as regulations issued pursuant to it and the actions of the Consumer Financial Protection Bureau ("CFPB") and similar legislation and regulations enacted by other governmental authorities in the United States and abroad related to consumer protection; effects of unclaimed property laws or their interpretation or the enforcement thereof; failure to maintain sufficient amounts or types of regulatory capital or other restrictions on the use of our working capital to meet the changing requirements of our regulators worldwide; changes in accounting standards, rules and interpretations, or industry standards affecting our business; and (iii) other events, such as catastrophic events and management's ability to identify and manage these and other risks.
About Western Union
The Western Union Company (NYSE: WU) is committed to helping people around the world who aspire to build financial futures for themselves, their loved ones and their communities. Our leading cross-border, cross-currency money movement, payments and digital financial services empower consumers, businesses, financial institutions and governments--across more than 200 countries and territories and over 130 currencies--to connect with billions of bank accounts, millions of digital wallets and cards, and a global footprint of hundreds of thousands of retail locations. Our goal is to offer accessible financial services that help people and communities prosper. For more information, visit www.westernunion.com.
WU-G
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)
Three Months Ended Three Months Ended Three Months Ended
March 31, March 31, March 31,
--------------------------------------- -------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------
2024 2024 2024 2023 2023 % Change % Change
--------------------------------------- -------------------- ---------------------------------------- -------------------- ---------------------------------------- -------------------- --------------------
Revenues $ $ 1,049.1 $ $ 1,036.9 1% 1%
Expenses:
Cost of services 641.3 641.3 641.3 629.5 629.5 629.5 2% 2%
Selling, general, and administrative 215.7 215.7 215.7 202.7 202.7 202.7 6% 6%
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total expenses 857.0 857.0 857.0 832.2 832.2 832.2 3% 3%
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating income 192.1 192.1 192.1 204.7 204.7 204.7 (6)% (6)%
Other income/(expense):
Interest income 3.1 3.1 3.1 3.2 3.2 3.2 (5)% (5)%
Interest expense (26.1) (26.1) (26.1) (25.0) (25.0) (25.0) 5% 5%
Other income/(expense), net 0.9 0.9 0.9 (1.9) (1.9) (1.9) (a) (a)
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total other expense, net (22.1) (22.1) (22.1) (23.7) (23.7) (23.7) (7)% (7)%
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Income before income taxes 170.0 170.0 170.0 181.0 181.0 181.0 (6)% (6)%
Provision for income taxes 27.3 27.3 27.3 29.2 29.2 29.2 (7)% (7)%
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net income $ $ 142.7 $ $ 151.8 (6)% (6)%
==================== ==================== ==================== ==================== ==================== ====================
Earnings per share:
Basic $ $ 0.41 $ $ 0.41 0% 0%
Diluted $ $ 0.41 $ $ 0.40 3% 3%
Weighted-average shares outstanding:
Basic 344.4 344.4 344.4 374.4 374.4 374.4
___________________________________________
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)
March 31, March 31, March 31, December 31, December 31,
2024 2024 2024 2023 2023
------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------- ---------------------------------------- -------------------- ----------------------------------------
Assets
Cash and cash equivalents $ $ 1,106.5 $ $ 1,268.6
Settlement assets 3,635.6 3,635.6 3,635.6 3,687.0 3,687.0 3,687.0
Property and equipment, net of accumulated depreciation of $446.1 and $438.8, respectively 88.6 88.6 88.6 91.4 91.4 91.4
Goodwill 2,049.5 2,049.5 2,049.5 2,034.6 2,034.6 2,034.6
Other intangible assets, net of accumulated amortization of $685.6 and $685.9, respectively 369.0 369.0 369.0 380.2 380.2 380.2
Other assets 804.0 804.0 804.0 737.0 737.0 737.0
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total assets $ $ 8,053.2 $ $ 8,198.8
==================== ==================== ==================== ==================== ==================== ====================
Liabilities and stockholders' equity
Liabilities:
Accounts payable and accrued liabilities $ $ 392.7 $ $ 453.0
Settlement obligations 3,635.6 3,635.6 3,635.6 3,687.0 3,687.0 3,687.0
Income taxes payable 668.9 668.9 668.9 659.5 659.5 659.5
Deferred tax liability, net 149.4 149.4 149.4 147.6 147.6 147.6
Borrowings 2,540.3 2,540.3 2,540.3 2,504.6 2,504.6 2,504.6
Other liabilities 268.4 268.4 268.4 268.1 268.1 268.1
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total liabilities 7,655.3 7,655.3 7,655.3 7,719.8 7,719.8 7,719.8
Stockholders' equity:
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued -- -- -- -- -- --
Common stock, $0.01 par value; 2,000 shares authorized; 339.6 shares and 350.5 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 3.4 3.4 3.4 3.5 3.5 3.5
Capital surplus 1,040.6 1,040.6 1,040.6 1,031.9 1,031.9 1,031.9
Accumulated deficit (485.0) (485.0) (485.0) (389.1) (389.1) (389.1)
Accumulated other comprehensive loss (161.1) (161.1) (161.1) (167.3) (167.3) (167.3)
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total stockholders' equity 397.9 397.9 397.9 479.0 479.0 479.0
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)
Three Months Ended Three Months Ended Three Months Ended
March 31, March 31, March 31,
------------------------------------------------------------------------------------------------------------------ -------------------- ---------------------------------------------------------------------------------------------------------
2024 2024 2024 2023 2023
------------------------------------------------------------------------------------------------------------------ -------------------- ---------------------------------------- -------------------- ----------------------------------------
Cash flows from operating activities
Net income $ $ 142.7 $ $ 151.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 9.2 9.2 9.2 10.2 10.2 10.2
Amortization 37.4 37.4 37.4 36.4 36.4 36.4
Other non-cash items, net 20.0 20.0 20.0 19.3 19.3 19.3
Increase/(decrease) in cash, excluding the effects of acquisitions and divestitures, resulting from changes in:
Other assets (46.6) (46.6) (46.6) (28.1) (28.1) (28.1)
Accounts payable and accrued liabilities (64.4) (64.4) (64.4) (62.2) (62.2) (62.2)
Income taxes payable 8.8 8.8 8.8 17.2 17.2 17.2
Other liabilities (13.1) (13.1) (13.1) (7.3) (7.3) (7.3)
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net cash provided by operating activities 94.0 94.0 94.0 137.3 137.3 137.3
Cash flows from investing activities
Payments for capitalized contract costs (2.4) (2.4) (2.4) (31.0) (31.0) (31.0)
Payments for internal use software (21.7) (21.7) (21.7) (19.6) (19.6) (19.6)
Purchases of property and equipment (11.0) (11.0) (11.0) (6.8) (6.8) (6.8)
Purchases of settlement investments (130.2) (130.2) (130.2) (124.7) (124.7) (124.7)
Proceeds from the sale of settlement investments 160.2 160.2 160.2 22.2 22.2 22.2
Maturities of settlement investments 23.3 23.3 23.3 22.4 22.4 22.4
Proceeds from the sale of non-settlement investments -- -- -- 100.0 100.0 100.0
Other investing activities (24.5) (24.5) (24.5) 1.1 1.1 1.1
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net cash used in investing activities (6.3) (6.3) (6.3) (36.4) (36.4) (36.4)
Cash flows from financing activities
Cash dividends and dividend equivalents paid (80.5) (80.5) (80.5) (88.1) (88.1) (88.1)
Common stock repurchased (150.6) (150.6) (150.6) (5.1) (5.1) (5.1)
Net proceeds from/(repayments of) commercial paper 35.0 35.0 35.0 (155.0) (155.0) (155.0)
Proceeds from exercise of options -- -- -- 0.3 0.3 0.3
Net change in settlement obligations (136.9) (136.9) (136.9) 109.1 109.1 109.1
Other financing activities (0.1) (0.1) (0.1) (0.2) (0.2) (0.2)
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net cash used in financing activities (333.1) (333.1) (333.1) (139.0) (139.0) (139.0)
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net change in cash and cash equivalents, including settlement, and restricted cash (245.4) (245.4) (245.4) (38.1) (38.1) (38.1)
Cash and cash equivalents, including settlement, and restricted cash at beginning of period 1,786.2 1,786.2 1,786.2 2,040.7 2,040.7 2,040.7
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Cash and cash equivalents, including settlement, and restricted cash at end of period $ $ 1,540.8 $ $ 2,002.6
==================== ==================== ==================== ==================== ==================== ====================
March 31, March 31, March 31,
------------------------------------------------------------------------------------------------------------------ -------------------- ---------------------------------------------------------------------------------------------------------
2024 2024 2024 2023 2023
------------------------------------------------------------------------------------------------------------------ -------------------- ---------------------------------------- -------------------- ----------------------------------------
Reconciliation of balance sheet cash and cash equivalents to cash flows:
Cash and cash equivalents on balance sheet $ $ 1,106.5 $ $ 1,228.6
Settlement cash and cash equivalents 412.4 412.4 412.4 737.1 737.1 737.1
Restricted cash in Other assets 21.9 21.9 21.9 36.9 36.9 36.9
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
THE WESTERN UNION COMPANY
SUMMARY SEGMENT DATA
(Unaudited)
(in millions, unless indicated otherwise)
Three Months Ended Three Months Ended Three Months Ended Three Months Ended
March 31, March 31, March 31, March 31,
----------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------
2024 2024 2024 2023 2023 % Change % Change
----------------------------------------------------- -------------------- ---------------------------------------- -------------------- ---------------------------------------- -------------------- --------------------
Revenues:
Consumer Money Transfer $ $ 962.0 $ $ 938.3 3% 3%
Consumer Services 87.1 87.1 87.1 83.2 83.2 83.2 5% 5%
Business Solutions (a) -- -- -- 15.4 15.4 15.4 (d) (d)
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total consolidated revenues $ $ 1,049.1 $ $ 1,036.9 1% 1%
==================== ==================== ==================== ==================== ==================== ====================
Segment operating income:
Consumer Money Transfer $ $ 187.6 $ $ 177.8 6% 6%
Consumer Services 18.6 18.6 18.6 32.1 32.1 32.1 (42)% (42)%
Business Solutions (a) -- -- -- 1.9 1.9 1.9 (d) (d)
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total segment operating income 206.2 206.2 206.2 211.8 211.8 211.8 (3)% (3)%
Redeployment program costs (b) (14.0) (14.0) (14.0) (7.1) (7.1) (7.1) 96% 96%
Acquisition, separation, and integration costs (c) (0.1) (0.1) (0.1) -- -- -- (d) (d)
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total consolidated operating income $ $ 192.1 $ $ 204.7 (6)% (6)%
==================== ==================== ==================== ==================== ==================== ====================
Segment operating income margin
Consumer Money Transfer 19.5% 19.5% 19.5% 18.9% 18.9% 18.9% 0.6% 0.6%
Consumer Services 21.3% 21.3% 21.3% 38.6% 38.6% 38.6% (17.3)% (17.3)%
___________________________________________
(a) On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business. The sale was completed with the final closing on July 1, 2023. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business. The sale was completed with the final closing on July 1, 2023.
(b) Represents severance, expenses associated with streamlining the Company's organizational and legal structure, and other expenses associated with the Company's program to redeploy expenses in its cost base through optimizations in vendor management, real estate, marketing, and people strategy, as previously announced in October 2022. Expenses incurred under the program also include non-cash impairments of operating lease right-of-use assets and property and equipment. The expenses are not included in the measurement of segment operating income provided to the Chief Operating Decision Maker ("CODM") for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results. Represents severance, expenses associated with streamlining the Company's organizational and legal structure, and other expenses associated with the Company's program to redeploy expenses in its cost base through optimizations in vendor management, real estate, marketing, and people strategy, as previously announced in October 2022. Expenses incurred under the program also include non-cash impairments of operating lease right-of-use assets and property and equipment. The expenses are not included in the measurement of segment operating income provided to the Chief Operating Decision Maker ("CODM") for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results.
(c) Represents the impact from expenses incurred in connection with the Company's acquisition and divestiture activity, including for the review and closing of these transactions, and integration costs directly related to the Company's acquisitions. Beginning in 2024, the Company changed its segment reporting methodology to no longer allocate these costs to its segments. These costs were previously allocated entirely to Consumer Services, and the amount included in the Consumer Services segment was immaterial for the three months ended March 31, 2023. The expenses are no longer included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results. Represents the impact from expenses incurred in connection with the Company's acquisition and divestiture activity, including for the review and closing of these transactions, and integration costs directly related to the Company's acquisitions. Beginning in 2024, the Company changed its segment reporting methodology to no longer allocate these costs to its segments. These costs were previously allocated entirely to Consumer Services, and the amount included in the Consumer Services segment was immaterial for the three months ended March 31, 2023. The expenses are no longer included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results.
THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)
Notes* Notes* Notes* 1Q23 1Q23 2Q23 2Q23 3Q23 3Q23 4Q23 4Q23 FY2023 FY2023 1Q24 1Q24
------------------------------------------------------------------------------ -------------------- -------------------- -------------------- ---------------------------------------- -------------------- ---------------------------------------- -------------------- ---------------------------------------- -------------------- ---------------------------------------- -------------------- ---------------------------------------- -------------------- ----------------------------------------
Consolidated Metrics
Revenues (GAAP) - YoY % change (10)% (10)% (10)% (10)% (10)% 3% 3% 3% 1% 1% 1% (4)% (4)% (4)% (3)% (3)% (3)% 1% 1% 1%
Adjusted revenues (non-GAAP) - YoY % change (a) (a) (3)% (3)% (3)% 6% 6% 6% 4% 4% 4% (1)% (1)% (1)% 1% 1% 1% 3% 3% 3%
Operating margin (GAAP) 19.7% 19.7% 19.7% 19.7% 19.7% 20.7% 20.7% 20.7% 19.2% 19.2% 19.2% 15.1% 15.1% 15.1% 18.8% 18.8% 18.8% 18.3% 18.3% 18.3%
Adjusted operating margin (non-GAAP) (b) (b) 20.5% 20.5% 20.5% 21.8% 21.8% 21.8% 19.6% 19.6% 19.6% 16.1% 16.1% 16.1% 19.6% 19.6% 19.6% 19.7% 19.7% 19.7%
Consumer Money Transfer (CMT) Segment Metrics
Revenues (GAAP) - YoY % change (6)% (6)% (6)% (6)% (6)% 4% 4% 4% 4% 4% 4% (1)% (1)% (1)% 0% 0% 0% 3% 3% 3%
Adjusted revenues (non-GAAP) - YoY % change (g) (g) (5)% (5)% (5)% 5% 5% 5% 3% 3% 3% (1)% (1)% (1)% 0% 0% 0% 3% 3% 3%
Transactions (in millions) 65.3 65.3 65.3 65.3 65.3 70.6 70.6 70.6 70.6 70.6 70.6 72.9 72.9 72.9 279.4 279.4 279.4 69.0 69.0 69.0
Transactions - YoY % change (6)% (6)% (6)% (6)% (6)% 4% 4% 4% 5% 5% 5% 5% 5% 5% 2% 2% 2% 6% 6% 6%
Cross-border principal, as reported - YoY % change (3)% (3)% (3)% (3)% (3)% 17% 17% 17% 13% 13% 13% 8% 8% 8% 9% 9% 9% 7% 7% 7%
Cross-border principal (constant currency) - YoY % change (h) (h) (1)% (1)% (1)% 18% 18% 18% 11% 11% 11% 7% 7% 7% 9% 9% 9% 7% 7% 7%
Operating margin 18.9% 18.9% 18.9% 18.9% 18.9% 21.5% 21.5% 21.5% 19.0% 19.0% 19.0% 15.3% 15.3% 15.3% 18.7% 18.7% 18.7% 19.5% 19.5% 19.5%
Branded Digital revenues (GAAP) - YoY % change (gg) (gg) (7)% (7)% (7)% (2)% (2)% (2)% 3% 3% 3% 4% 4% 4% 0% 0% 0% 9% 9% 9%
Branded Digital foreign currency translation and Argentina inflation impact (k) (k) 1% 1% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted Branded Digital revenues (non-GAAP) - YoY % change (gg) (gg) (6)% (6)% (6)% (2)% (2)% (2)% 3% 3% 3% 4% 4% 4% 0% 0% 0% 9% 9% 9%
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Branded Digital transactions - YoY % change (gg) (gg) 7% 7% 7% 12% 12% 12% 12% 12% 12% 13% 13% 13% 11% 11% 11% 13% 13% 13%
CMT Segment Regional Metrics - YoY % change
NA region revenues (GAAP) (aa), (bb) (aa), (bb) (8)% (8)% (8)% (8)% (8)% (8)% (3)% (3)% (3)% (1)% (1)% (1)% (5)% (5)% (5)% 2% 2% 2%
NA region foreign currency translation impact (k) (k) 0% 0% 0% 1% 1% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
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Adjusted NA region revenues (non-GAAP) (aa), (bb) (aa), (bb) (8)% (8)% (8)% (7)% (7)% (7)% (3)% (3)% (3)% (1)% (1)% (1)% (5)% (5)% (5)% 2% 2% 2%
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NA region transactions (aa), (bb) (aa), (bb) 1% 1% 1% 4% 4% 4% 7% 7% 7% 6% 6% 6% 5% 5% 5% 6% 6% 6%
EU & CIS region revenues (GAAP) (aa), (cc) (aa), (cc) (16)% (16)% (16)% (12)% (12)% (12)% (9)% (9)% (9)% (8)% (8)% (8)% (11)% (11)% (11)%