Evertec Inc (EVTC) 2023 Q3 法說會逐字稿

Hello, and welcome to the EVERTEC Third Quarter 2023 Earnings Conference Call. (Operator Instructions)

您好，歡迎參加 EVERTEC 2023 年第三季財報電話會議。 （操作員說明）

Please note, today's event is being recorded. I will now turn the conference over to Beatriz Brown-Saenz of Investor Relations. Please go ahead, ma'am.

請注意，今天的活動正在錄製中。我現在將會議交給投資者關係部門的 Beatriz Brown-Saenz。請繼續，女士。

Thank you, and good afternoon. With me today are Mac Schuessler, our President and Chief Executive Officer; and Joaquin Castrillo, our Chief Financial Officer.

謝謝你，下午好。今天與我在一起的有我們的總裁兼執行長 Mac Schuessler；以及我們的財務長 Joaquin Castrillo。

Before we begin, I would like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC report.

在開始之前，我想提醒大家，本次電話會議可能包含前瞻性陳述，應與我們的收益發布和公司最近的定期 SEC 報告中包含的警示性陳述結合起來考慮。

During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as adjusted EBITDA, adjusted net income and adjusted earnings per common share. Reconciliations to GAAP measures and certain additional information are also included in today's earnings release and related supplemental slides, which are available in the Investor Relations section of our company website at www.evertecinc.com.

在今天的電話會議中，管理層將提供構成 SEC 規則下的非 GAAP 財務指標的某些信息，例如調整後的 EBITDA、調整後的淨利潤和調整後的每股普通股收益。今天的收益報告和相關補充幻燈片中還包含了對 GAAP 衡量標準的調節和某些附加信息，這些幻燈片可在我們公司網站 www.evertecinc.com 的投資者關係部分中找到。

I will now hand the call over to Mac.

我現在將把電話轉交給 Mac。

Thanks, Beatriz. I'm pleased to report very strong third quarter results that were above our expectations as we continue to execute on our initiatives across all our markets. Strength was broad-based with every one of our segments growing both revenue and EBITDA over the prior period. We also continue to make progress on the Sinqia acquisition and hope to announce the closing of that transformational deal in the near future.

謝謝，比阿特麗斯。我很高興地報告第三季的業績非常強勁，超出了我們的預期，因為我們繼續在所有市場上執行我們的舉措。我們的每個細分市場的營收和 EBITDA 均較上一時期有所成長，實力基礎廣泛。我們也繼續在收購 Sinqia 方面取得進展，並希望在不久的將來宣布完成這項轉型交易。

On today's call, I will start with some highlights from the quarter, and then we'll turn it over to Joaquin, who will provide further details on our third quarter results as well as an update to our expectations for the remainder of the year.

在今天的電話會議上，我將首先介紹本季度的一些亮點，然後我們將其交給Joaquin，他將提供有關我們第三季度業績的更多詳細信息以及我們對今年剩餘時間的預期的最新信息。

Beginning on Slide 4. Total revenue was approximately $173 million for the third quarter, an increase of approximately 19% compared to the third quarter of 2022. Adjusted EBITDA was approximately $79 million, an increase of approximately 31% when compared with the prior year quarter. Adjusted EBITDA margin was 45.4%, approximately 410 basis points above last year's level and above our expectations and guidance.

從投影片 4 開始。第三季總營收約為 1.73 億美元，與 2022 年第三季相比成長約 19%。調整後 EBITDA 約為 7,900 萬美元，與去年同期相比成長約 31% 。調整後 EBITDA 利潤率為 45.4%，比去年的水準高出約 410 個基點，也高於我們的預期和指導。

Adjusted earnings per share was $0.80, an increase of 51% from the prior year quarter's adjusted EPS of $0.53. As a reminder, we changed our calculation of adjusted EBITDA, adjusted net income and adjusted earnings per share metrics earlier this year to exclude the impact of noncash unrealized gains and losses from foreign currency remeasurement, and all variances against prior year have been compared against recast figures.

調整後每股收益為 0.80 美元，比去年同期調整後每股收益 0.53 美元成長 51%。提醒一下，我們今年稍早更改了調整後EBITDA、調整後淨利潤和調整後每股收益指標的計算，以排除外幣重新計量造成的非現金未實現損益的影響，並且與前一年相比的所有差異均已與重新計算的結果進行了比較人物。

We generated operating cash flow of $163 million, and we returned approximately $33 million to our shareholders through dividends and share repurchases. Additionally, our liquidity remains strong at approximately $366 million as of September 30.

我們產生了 1.63 億美元的經營現金流，並透過股利和股票回購向股東返還了約 3,300 萬美元。此外，截至 9 月 30 日，我們的流動性仍然強勁，約為 3.66 億美元。

Moving on to our business update on Slide 5. In Puerto Rico, we experienced growth across all our segments. Merchant Acquiring revenue was up approximately 10% year-over-year, driven by strong sales volume and an increase in our overall spread. Payments Puerto Rico was up approximately 16%, reflecting strong POS transaction volumes and continued strength in ATH Móvil business.

繼續幻燈片 5 上的業務更新。在波多黎各，我們的所有部門都實現了成長。在強勁的銷售和整體價差擴大的推動下，商家收單收入較去年同期成長約 10%。 Payments Puerto Rico 成長了約 16%，反映出強勁的 POS 交易量和 ATH Móvil 業務的持續強勁。

Our Business Solutions segment revenue was up approximately 15%, primarily due to the impact in the prior year of the onetime credit granted to Popular upon closing of the Popular transaction. Excluding this impact, Business Solutions revenue grew approximately 2%. As a reminder, this is the first quarter where we are not facing a year-over-year growth headwind due to the impact of the assets sold to Popular. Business Solutions' growth also benefited from certain onetime hardware and software sales completed in the quarter.

我們的商業解決方案部門收入成長了約 15%，主要是由於上一年大眾交易結束時授予大眾的一次性信貸的影響。排除此影響，業務解決方案收入成長了約 2%。提醒一下，由於出售給Popular的資產的影響，這是我們第一個沒有面臨同比增長阻力的季度。業務解決方案的成長也受益於本季完成的某些一次性硬體和軟體銷售。

Turning to the macro environment in Puerto Rico. The overall backdrop remains stable with a few signs of optimism this past quarter. The overall level of unemployment has remained fairly stable through 2023, though the unemployment rate did tick up to 6.2% in July. This is still near the lowest level in decades. Inflation seems to be coming down more rapidly on the island with a reading of just 2.2% in July, and the economic activity index was up 3.5% year-over-year.

轉向波多黎各的宏觀環境。整體背景保持穩定，上個季度出現了一些樂觀跡象。儘管 7 月失業率確實上升至 6.2%，但到 2023 年，整體失業率仍相當穩定。這仍接近數十年來的最低水平。島上的通貨膨脹似乎下降得更快，7 月僅為 2.2%，經濟活動指數年增 3.5%。

Travel and tourism trends continue to be positive, with total airline passengers recording year-over-year growth in the mid-20s, and year-to-date growth is now 20% year-over-year through September. Auto sales have also rebounded in recent months, up 40% year-over-year in September and 9% in August, after being flat to down for most of the year. In sum, we continue to view the macroeconomic environment as supportive for EVERTEC's growth.

旅行和旅遊趨勢繼續向好，航空旅客總數在 20 多歲左右實現同比增長，截至 9 月份，今年迄今的同比增長為 20%。汽車銷量在今年大部分時間持平或下降後，近幾個月也出現反彈，9 月年增 40%，8 月年增 9%。總之，我們繼續認為宏觀經濟環境有利於 EVERTEC 的成長。

Moving to Latin America on Slide 6. Revenue was up an impressive 37% year-over-year. As we have indicated previously, our relationship with Getnet Chile has been an important driver of growth over the past few years. And this quarter is no different as we now expect to exceed contract minimums, which led to the recognition of a $6.3 million revenue catch-up adjustment, which Joaquin will explain further.

轉到幻燈片 6 上的拉丁美洲。收入同比增長了 37%，令人印象深刻。正如我們之前指出的，我們與 Getnet Chile 的關係是過去幾年成長的重要動力。本季也不例外，因為我們現在預計將超過合約最低限額，這導致確認了 630 萬美元的收入追趕調整，華金將進一步解釋這一點。

The segment also benefited from the paySmart acquisition completed in the first quarter of this year and organic growth aligned to our expectations. Our customers in the region delivered strong contributions to growth in the quarter, and the broad-based strength we are seeing provides confidence in our LatAm growth strategy. As a reminder, we lapped the benefit of the BBR acquisition completed in the third quarter last year.

該部門還受益於今年第一季完成的 paySmart 收購以及符合我們預期的有機成長。我們在該地區的客戶為本季的成長做出了巨大貢獻，我們所看到的廣泛實力為我們的拉丁美洲成長策略提供了信心。提醒一下，我們享受了去年第三季完成的 BBR 收購的好處。

In regards to the Sinqia acquisition, we previously announced that we received Sinqia shareholder approval, an important milestone towards closing and expect to complete the transaction before year-end. We are currently working with the Sinqia team on integration and growth plans, and are excited with the opportunity ahead in Brazil. We expect to be able to provide a more detailed update of our plans and expectations for Sinqia on our fourth quarter earnings call.

關於收購 Sinqia，我們先前宣布已獲得 Sinqia 股東的批准，這是完成交易的重要里程碑，並預計在年底前完成交易。我們目前正在與 Sinqia 團隊合作制定整合和成長計劃，並對巴西未來的機會感到興奮。我們預計能夠在第四季度財報電話會議上提供有關 Sinqia 的計劃和預期的更詳細更新。

In sum, this was another strong quarter that reflects our ability to deliver organic growth while also working to complete the biggest acquisition in the company's history. I want to thank the teams that worked so hard this past quarter to deliver these outstanding results.

總而言之，這是另一個強勁的季度，反映了我們實現有機成長的能力，同時也努力完成公司歷史上最大的收購。我要感謝上個季度辛勤工作的團隊，並取得了這些出色的成果。

With that, I'll now turn it over to Joaquin to provide a more in-depth look at our third quarter results and our increased outlook for 2023.

現在，我將把它交給 Joaquin，以更深入地介紹我們的第三季業績以及我們對 2023 年的展望。

Thank you, Mac, and good afternoon, everyone.

謝謝你，麥克，大家下午好。

Turning to Slide 8, you will see the consolidated third quarter results for EVERTEC. As a reminder, in the first quarter this year, we made a change to our calculation of adjusted EBITDA, adjusted net income and adjusted EPS to exclude the effects of noncash unrealized gains and losses from foreign currency remeasurement, and prior period numbers have been recast to conform to the current period presentation.

轉向幻燈片 8，您將看到 EVERTEC 第三季的綜合業績。提醒一下，今年第一季度，我們對調整後EBITDA、調整後淨利潤和調整後每股收益的計算進行了更改，以排除外幣重新計量造成的非現金未實現損益的影響，並且前期數據已重新計算以符合當前期間的列報。

Total revenue for the third quarter was $173.2 million, up approximately 19% compared to $145.8 million in the prior year, as all of our business segments performed above our expectations. Revenue growth was primarily driven by strong sales volume and transaction volumes, the recognition of a $6.3 million catch-up adjustment related to our Getnet Chile relationship and the impact in the prior year of the onetime credit granted to Popular upon closing of the Popular transaction.

第三季的總收入為 1.732 億美元，比上一年的 1.458 億美元增長約 19%，因為我們所有業務部門的表現都超出了我們的預期。營收成長主要得益於強勁的銷售和交易量、與 Getnet Chile 關係相關的 630 萬美元追趕調整的認可，以及去年在 Pop 交易結束時授予Popular 的一次性信貸的影響。

Adjusted EBITDA for the quarter was $78.7 million, an increase of approximately $18.5 million, or 31% when compared to the prior year quarter. The increase in adjusted EBITDA was driven by the increase in revenue, partially offset by an increase in operating expenses as we had higher personnel costs and an increase in professional fees, driven by corporate development initiatives and cloud services, partially offset by recoveries of previously recorded operational losses. Adjusted EBITDA margin was approximately 45.4%, an approximate 410 basis points increase compared to the prior year quarter.

本季調整後 EBITDA 為 7,870 萬美元，比去年同期增加約 1,850 萬美元，即 31%。調整後EBITDA 的成長是由收入成長所推動的，部分被營運費用的增加所抵消，因為我們的人員成本和專業費用的增加是由企業發展計畫和雲端服務推動的，部分被先前記錄的回收率所抵銷經營損失。調整後 EBITDA 利潤率約 45.4%，與去年同期相比增加約 410 個基點。

The increase in margin reflects leverage from the revenue upside, mainly the Getnet Chile catch-up, which flows completely through EBITDA. Additionally, prior year margin was negatively impacted by the onetime credit granted to Popular upon closing of the Popular transaction.

利潤率的增加反映了收入成長的槓桿作用，主要是 Getnet Chile 的追趕，完全透過 EBITDA 流動。此外，去年的利潤率也受到大眾交易結束時授予大眾的一次性信貸的負面影響。

Adjusted net income for the quarter was $52.4 million, an increase of 47% compared to $35.6 million in the prior year. Our adjusted effective tax rate in the quarter was 15.3% and aligned to the lower end of our expectations. We now expect the tax rate for the full year to be approximately 16%. Adjusted EPS was $0.80 for the quarter, an increase of approximately 51% compared to the prior year, driven by the increase in adjusted net income and a reduced share count due to our repurchase activity.

該季度調整後淨利潤為 5,240 萬美元，比上年同期的 3,560 萬美元成長 47%。我們本季調整後的有效稅率為 15.3%，與我們預期的下限一致。我們現在預計全年稅率約為16%。本季調整後每股收益為 0.80 美元，比上一年增長約 51%，這是由於調整後淨利潤增加以及回購活動導致的股票數量減少所致。

Moving on to Slide 9. I'll now cover our segment results, starting with Merchant Acquiring. In the third quarter, Merchant Acquiring net revenue increased approximately 10% year-over-year to approximately $40.6 million. This increase was driven by a combination of increased sales volume, an increase in overall spread and the continued benefit of certain pricing initiatives.

轉到投影片 9。我現在將介紹我們的細分結果，從商家收單開始。第三季度，商家收單淨收入年增約 10%，達到約 4,060 萬美元。這一增長是由銷售增加、整體價差增加以及某些定價措施的持續效益共同推動的。

Sales volume growth was strong throughout the quarter as we saw back-to-school seasonality and new merchant adds that are contributing positively to revenues. But September was the strongest month of the prior year quarter was impacted by Hurricane Fiona, which disrupted spending patterns in the last 2 weeks of the quarter.

整個季度的銷售成長強勁，因為我們看到返校季節性和新商家的增加對收入做出了積極貢獻。但 9 月是去年季度受颶風菲奧娜影響最強勁的月份，颶風菲奧娜擾亂了本季最後兩週的支出模式。

Adjusted EBITDA for the segment was $15.3 million, up approximately 10% and adjusted EBITDA margin was 37.7%, consistent with the prior year quarter. The margin benefited from higher revenues, offset by higher processing costs given the growth in transactions and lower average ticket.

該部門調整後 EBITDA 為 1,530 萬美元，成長約 10%，調整後 EBITDA 利潤率為 37.7%，與去年同期一致。利潤率受益於收入的增加，但由於交易量的增長和平均票價的下降而導致處理成本的增加所抵消。

On Slide 10, you will see the results for the Payment Services Puerto Rico and the Caribbean segment. Revenue for the segment in the third quarter was $51.6 million, up approximately 16%, driven by strong transaction growth and continued performance from our ATH Móvil business.

在幻燈片 10 上，您將看到波多黎各和加勒比地區支付服務部分的結果。第三季該部門的營收為 5,160 萬美元，成長約 16%，這得益於強勁的交易成長和 ATH Móvil 業務的持續表現。

POS transactions were up 10% from the prior year, an acceleration from recent quarters and aligned to the performance we are seeing in our Merchant Acquiring segment, including the impact from Hurricane Fiona in the last 2 weeks of September in the prior year. ATH Móvil growth overall was 24% as we saw strong transaction growth in the person-to-person side as well as steady growth on the business side, which continues to drive most of the revenue from ATH Móvil. The segment also continues to benefit from increases in transaction processing and monitoring revenue recognized for services provided to the Payment Services Latin America segment.

POS 交易量比上年增長 10%，較最近幾季度有所加速，並且與我們在商家收單部門看到的業績一致，包括去年 9 月最後兩週颶風菲奧娜的影響。 ATH Móvil 的整體成長率為 24%，因為我們看到人與人方面的交易強勁成長以及業務方面的穩定成長，這繼續推動 ATH Móvil 的大部分收入。該部門也繼續受益於為支付服務拉丁美洲部門提供的服務所確認的交易處理和監控收入的增加。

Adjusted EBITDA for the segment was $30.4 million, up approximately 21% as compared to last year. Adjusted EBITDA margin was 58.8%, up approximately 260 basis points as compared to last year. Margin benefited from the leverage of strong revenue and the positive net effect in the quarter of recoveries of previously recorded operational losses.

該部門調整後的 EBITDA 為 3,040 萬美元，比去年增長約 21%。調整後 EBITDA 利潤率為 58.8%，比去年增加約 260 個基點。利潤率受益於強勁收入的槓桿作用以及本季收回先前記錄的營運虧損的正面淨效應。

On Slide 11, you will see the results of our Payment Services LatAm segment. Revenue for the segment in the third quarter was $46.2 million, up approximately 37% as compared to last year and 35% on a constant currency basis. The major driver of growth in the quarter was the recognition of approximately $6.3 million catch-up adjustment related to our Getnet Chile contract.

在投影片 11 上，您將看到我們的支付服務拉丁美洲部門的結果。第三季該部門的營收為 4,620 萬美元，比去年成長約 37%，以固定匯率計算成長 35%。本季成長的主要推動力是確認與 Getnet Chile 合約相關的約 630 萬美元的追趕調整。

Given Getnet volumes have continued to grow as of this quarter, we now expect contract minimums will be surpassed before the end of the agreement, which requires us to adjust revenue recognized to date as well as the monthly revenue to be recognized throughout the remaining life of the contract. We are not expecting another similar adjustment at this time, although we will continue to monitor the performance of this contract on a quarterly basis.

鑑於截至本季度 Getnet 交易量持續增長，我們現在預計在協議結束前將超過合約最低限額，這要求我們調整迄今為止確認的收入以及在整個剩餘生命週期內確認的每月收入合約。儘管我們將繼續按季度監控該合約的表現，但我們預計目前不會再次進行類似的調整。

LatAm segment revenues also benefited from the paySmart acquisition completed at the beginning of the year as well as from organic growth. Adjusted EBITDA for the segment was $17.5 million and adjusted EBITDA margin was 37.9%, up approximately 550 basis points compared to last year. The higher margin was primarily a result of the $6.3 million catch-up, which contributed approximately 980 basis points of margin. This was partially offset by higher personnel costs, in part driven by foreign currency exchange rates and an increase in transaction processing and monitoring expenses charged from the Payments Puerto Rico segment.

拉丁美洲部門的收入也受益於年初完成的 paySmart 收購以及有機成長。該部門調整後 EBITDA 為 1,750 萬美元，調整後 EBITDA 利潤率為 37.9%，比去年增加約 550 個基點。利潤率上升主要是由於 630 萬美元的追趕，貢獻了約 980 個基點的利潤率。這部分被人員成本上升所抵消，部分原因是外幣匯率以及波多黎各支付部門收取的交易處理和監控費用增加。

On Slide 12, you will find the results for the Business Solutions segment. Business Solutions' revenue for the third quarter was up approximately 15% to $56.5 million, as prior year revenue was impacted by the $6.3 million onetime credit that was part of the Popular transaction. Excluding this impact, revenue growth in the segment would have been 2%, primarily driven by $1 million hardware and software sale completed in the quarter.

在投影片 12 上，您將找到業務解決方案部分的結果。 Business Solutions 第三季的營收成長了約 15%，達到 5,650 萬美元，這是因為去年的收入受到了作為 Pop 交易一部分的 630 萬美元一次性信貸的影響。排除這一影響，該部門的收入成長將為 2%，主要受到本季完成的 100 萬美元硬體和軟體銷售的推動。

For the quarter, adjusted EBITDA was $21.1 million, and adjusted EBITDA margin was 37.4%, up approximately 440 basis points as compared to the third quarter last year. The adjusted EBITDA margin increase was mainly driven by the increase in revenue, partially offset by higher operating expenses, including higher equipment and infrastructure expenses.

本季調整後 EBITDA 為 2,110 萬美元，調整後 EBITDA 利潤率為 37.4%，較去年第三季成長約 440 個基點。調整後的 EBITDA 利潤率成長主要是由收入成長所推動的，但部分被較高的營運費用（包括較高的設備和基礎設施費用）所抵消。

Moving on to Slide 13, you will see a summary of Corporate and Other. Our third quarter adjusted EBITDA was a negative $5.6 million, a decrease of approximately 6% compared to prior year. Our adjusted EBITDA as a percentage of total revenue was 3.2%, benefiting from the higher revenue.

轉到投影片 13，您將看到「公司和其他」的摘要。我們第三季調整後的 EBITDA 為負 560 萬美元，比去年同期下降約 6%。我們的調整後 EBITDA 佔總收入的百分比為 3.2%，受益於較高的收入。

Moving on to our cash flow overview on Slide 14. Our beginning cash balance was approximately $203.7 million, including restricted cash of approximately $18.7 million. Net cash provided by operating activities year-to-date was approximately $163.5 million, an increase of approximately $4 million compared to prior year as we continue to effectively manage working capital. We closed on the paySmart acquisition in the first quarter for approximately $23 million, acquired equity investments of approximately $32 million, driven by the acquisition of Sinqia shares ahead of the shareholder vote and had capital expenditures of approximately $50.6 million.

接下來是幻燈片 14 上的現金流量概述。我們的期初現金餘額約為 2.037 億美元，其中包括約 1,870 萬美元的限制性現金。由於我們繼續有效管理營運資金，年初至今經營活動提供的淨現金約為 1.635 億美元，比前一年增加約 400 萬美元。我們在第一季以約 2,300 萬美元完成了 paySmart 收購，在股東投票前收購了 Sinqia 股票，收購了約 3,200 萬美元的股權投資，資本支出約為 5,060 萬美元。

We made net debt payments of $29.6 million, including payments made to the outstanding balance on our revolving credit facility and $6 million in withholding taxes on share-based compensation, which resulted in a total net debt decrease of approximately $35.5 million. We paid cash dividends of $9.7 million and we repurchased approximately 665,000 shares of common stock at an average price of $35.49 for a total of approximately $23.6 million year-to-date.

我們支付了 2,960 萬美元的淨債務，包括循環信貸額度的未償餘額以及 600 萬美元的股權激勵預扣稅，這使得淨債務總額減少了約 3,550 萬美元。年初至今，我們支付了 970 萬美元的現金股息，並以平均價格 35.49 美元回購了約 665,000 股普通股，總計約 2,360 萬美元。

We expanded and extended our repurchase program last quarter and still have approximately $150 million available for future use through December 31, 2024. We also announced another $0.05 dividend to be paid on December 1, 2023, to shareholders of record as of October 30, 2023. Our ending cash balance, excluding cash included in settlement assets as of September 30 was $198.4 million, and this included approximately $20.6 million of restricted cash.

我們上季擴大並延長了回購計劃，截至2024 年12 月31 日仍有約1.5 億美元可供未來使用。我們也宣布將於2023 年12 月1 日向截至2023 年10 月30 日登記在冊的股東再支付0.05 美元的股利截至 9 月 30 日，我們的期末現金餘額（不包括結算資產中包含的現金）為 1.984 億美元，其中包括約 2,060 萬美元的限制性現金。

Moving to Slide 15, you'll find a summary of our debt as of September 30. Our quarter ending net debt position was approximately $237.7 million, comprised of approximately $177.8 million of unrestricted cash and approximately $415.5 million of total short-term borrowings and long-term debt. Our weighted average interest rate was 5.48%. Our net debt to trailing 12-month adjusted EBITDA was approximately 0.9x. As of September 30, total liquidity was approximately $365.8 million. This balance excludes restricted cash and includes the available borrowing capacity under our revolver.

轉到幻燈片15，您將看到截至9 月30 日我們的債務摘要。我們季度末的淨債務頭寸約為2.377 億美元，其中包括約1.778 億美元的非限制性現金以及約4.155 億美元的短期借款和長期借款總額。- 定期債務。我們的加權平均利率為5.48%。我們的淨債務與過去 12 個月調整後 EBITDA 的比率約為 0.9 倍。截至 9 月 30 日，流動資金總額約為 3.658 億美元。該餘額不包括受限制的現金，包括我們的左輪手槍下可用的借款能力。

Moving to Slide 16. I will now provide you with an update to our 2023 outlook as well as some items to consider for 2024. We are pleased with the continued strong growth in both Puerto Rico and Latin America, and given our Q3 results and additional visibility, we are raising our guidance and now expect revenue to be in a range of $663 million to $667 million, representing growth of 7% to 7.9%.

轉向幻燈片 16。我現在將為您提供 2023 年展望的最新資訊以及 2024 年需要考慮的一些事項。我們對波多黎各和拉丁美洲的持續強勁增長感到高興，並考慮到我們第三季度的業績和其他為了提高知名度，我們正在提高指導，目前預計收入將在6.63 億美元至6.67 億美元之間，成長7% 至7.9%。

We expect adjusted EBITDA margin to range between 43% to 43.5%, considering a lower margin in the fourth quarter as we continue to invest in our businesses more actively through the end of the year and execute on specific corporate initiatives that will result in increased OpEx. We are increasing our adjusted earnings per share outlook to $2.81 to $2.86, representing growth of 11% to 13% as compared to the adjusted earnings per share in 2022 of $2.53.

考慮到第四季度的利潤率較低，我們預計調整後的EBITDA 利潤率將在43% 至43.5% 之間，因為我們將在年底繼續更積極地投資我們的業務，並執行將導致營運支出增加的具體企業計劃。我們將調整後每股收益預期上調至 2.81 美元至 2.86 美元，與 2022 年調整後每股收益 2.53 美元相比成長 11% 至 13%。

On a GAAP basis, earnings per share is anticipated to be between $1.69 to $1.75. We expect our non-GAAP effective tax rate to be closer to 16%. We have not considered any additional share repurchases or any potential impacts from the Sinqia acquisition as part of this outlook.

以 GAAP 計算，每股收益預計在 1.69 美元至 1.75 美元之間。我們預計我們的非 GAAP 有效稅率將接近 16%。作為此展望的一部分，我們沒有考慮任何額外的股票回購或收購 Sinqia 的任何潛在影響。

Turning to 2024. While we are not prepared to give guidance, I would like to comment on a few items that are notable. Overall, the Puerto Rico economy continues to reflect a stable outlook, and the effect of disaster recovery funds, although coming in at a slow pace, are expected to continue impacting the economy positively.

展望 2024 年。雖然我們不准備提供指導，但我想對一些值得注意的事項發表評論。總體而言，波多黎各經濟前景持續保持穩定，災後復原資金的效果雖然緩慢，但預計將繼續對經濟產生正面影響。

Specifically, as we look at our segments, the Merchant Acquiring segment has benefited from pricing initiatives implemented last year that we have now mostly lapped as well as consumer strength that was above expectations, mainly in the first half of the year. We also had positive growth in 2023, given the impact from Hurricane Fiona last year.

具體來說，當我們審視我們的細分市場時，商家收單細分市場受益於去年實施的定價措施（目前我們已基本實施）以及消費者實力（主要是在今年上半年）超出預期。考慮到去年菲奧娜颶風的影響，我們在 2023 年也實現了正成長。

As we look into 2024, we will not benefit from these tailwinds, and as such, expect some moderation in our top line growth when compared to 2023. Our Payments Puerto Rico segment also benefited from some of the trends observed in Merchant Acquiring throughout 2023, and as such, expect a similar level of moderation as we look at 2024.

展望2024 年，我們將不會從這些順風車中受益，因此，與2023 年相比，預計我們的營收成長將有所放緩。我們的波多黎各支付部門也受益於2023 年全年商家收單中觀察到的一些趨勢，因此，預計 2024 年將出現類似程度的放緩。

In the case of our Latin America segment, the $6.3 million catch-up we recognized this quarter related to Getnet Chile will be a headwind going into next year. Additionally, we benefited from the tailwinds of acquisitions that we have now lapped such as BBR and the acquisition of paySmart, which we anniversary in early Q1.

就我們的拉丁美洲業務而言，我們本季認識到與 Getnet Chile 相關的 630 萬美元的追趕將成為明年的阻力。此外，我們還受益於我們現在進行的收購的順風車，例如 BBR 和對 paySmart 的收購，這是我們在第一季初的周年紀念日。

Lastly, the CPI index for September was announced earlier this month and was 3.7%. As a reminder, our MSA with Banco Popular caps our annual increase to 1.5%, and our ATH processing agreement caps our annual increase to 5%.

最後，本月稍早公佈的 9 月 CPI 指數為 3.7%。謹此提醒，我們與大眾銀行的 MSA 將我們的年度增幅上限限制為 1.5%，而我們的 ATH 處理協議將我們的年度增幅上限限制為 5%。

In summary, we are pleased with the strong results in Q3 and the trends we see in the business. We are very excited about the combination of EVERTEC and Sinqia and look forward to providing more detail on Sinqia's expected 2024 impact during our fourth quarter results. We hope to see some of you in person at upcoming conferences in the coming months.

總之，我們對第三季的強勁業績以及我們在業務中看到的趨勢感到滿意。我們對 EVERTEC 和 Sinqia 的合併感到非常興奮，並期待在第四季度業績中提供有關 Sinqia 2024 年預期影響的更多詳細資訊。我們希望在未來幾個月即將舉行的會議上見到你們中的一些人。

Operator, please go ahead and open the line for questions.

接線員，請繼續撥打電話提問。

(Operator Instructions) And the first question comes from Vasu Govil with KBW.

（操作員說明）第一個問題來自 KBW 的 Vasu Govil。

It was really a strong quarter, really strong revenue performance. And even if I sort of exclude the couple of onetime factors you called out, it was still -- I think I'm estimating low double-digit revenue growth. So Mac and Joaquin, what surprised you to the upside versus your expectation? And then what's sort of making you expect sort of a meaningful deceleration in the fourth quarter? I mean is there still some conservatism in the guide? Or is there moving factors we should be mindful of?

這確實是一個強勁的季度，營收表現也非常強勁。即使我排除了你提到的幾個一次性因素，我認為我估計的收入成長仍然是較低的兩位數。 Mac 和 Joaquin，與您的預期相比，什麼讓您感到驚訝？那麼是什麼讓您預期第四季會出現有意義的減速呢？我的意思是指南中仍然存在一些保守主義嗎？或是有什麼值得我們注意的動人因素嗎？

No. I mean look, certainly, Puerto Rico payments seems to surprise us in terms of some of the strength that we saw coming from sales volume on both transactions. As we said, obviously, we do have somewhat of a benefit in this quarter because last year, the second half of September was impacted by Fiona, and we can certainly see that in the numbers.

不。我的意思是，當然，波多黎各的支付似乎讓我們感到驚訝，因為我們看到了兩筆交易的銷售量所帶來的一些力量。正如我們所說，顯然，我們在本季度確實有一些好處，因為去年 9 月下旬受到 Fiona 的影響，我們當然可以從數字中看到這一點。

Going to Q4, yes, I mean we're always balanced in how we are approaching the whole year. I think we've always given a full year and not necessarily a quarterly guidance. So we think we're taking into consideration some of the trends that we've been seeing, but certainly a little bit of a deceleration considering that it's been so strong in the third quarter.

談到第四季度，是的，我的意思是我們在全年的應對方式上始終保持平衡。我認為我們總是給出全年指導，不一定是季度指導。因此，我們認為我們正在考慮我們已經看到的一些趨勢，但考慮到第三季的強勁趨勢，肯定會出現一些減速。

And just a quick follow-up. As you probably are aware, the Fed sort of came out with a proposal yesterday to lower the debit interchange caps. Could you remind us how much of your debit volume goes on the Visa/Mastercard networks? And do you expect that to be a tailwind to you guys if you were able to tack on some pricing on the top of that?

只是快速跟進。您可能知道，聯準會昨天提出了降低借記互換上限的提議。您能否提醒我們，您的金融金額中有多少是透過 Visa/Mastercard 網路進行的？如果您能夠在此基礎上增加一些定價，您是否認為這會對您們有利？

So we haven't broken out what -- how much goes through Visa/Mastercard, but we have said, right, that most of the volume that we see in Puerto Rico is debit. So that would certainly have an effect. And we've also mentioned that a lot of our pricing is bundled. But I think it's a little bit early to really kind of gauge how much of an impact this could have.

所以我們還沒有透露有多少是透過維薩/萬事達卡進行的，但我們已經說過，我們在波多黎各看到的大部分交易量都是藉記卡。那麼這肯定會產生影響。我們也提到，我們的許多定價都是捆綁的。但我認為現在真正衡量這可能產生多大影響還為時過早。

In the past, we obviously went through Durbin. And when we went through Durbin, there were certainly movements depending on the clients and the sophistication behind those clients, where they also wanted to get some of the benefit that acquirers were getting. So I think it's a little bit early, but it's certainly positive.

過去，我們顯然經過了杜賓。當我們通過杜賓時，肯定會根據客戶和這些客戶背後的複雜程度而發生一些變化，他們也希望獲得收購者所獲得的一些好處。所以我認為現在有點早，但這肯定是積極的。

And the next question comes from John Davis with Raymond James.

下一個問題來自約翰·戴維斯和雷蒙德·詹姆斯。

Just actually wanted to follow up a little bit on Vasu's question around just kind of bigger picture revenue growth, 10% this quarter going to low singles. But for the full year, still going to be healthy and quite a bit quicker than you've historically grown once you make all the adjustments. So Mac, how do you think about pre Sinqia and maybe post Sinqia, you can talk about the normalized growth rate of the business? Is this a mid-single digits? Is it higher? What are the puts and takes? I feel like there's been so many moving pieces over the last 4 or 5 years, whether it's hurricanes or COVID. Just trying to understand what the normalized growth rate is here.

實際上只是想就 Vasu 的問題進行一些跟進，圍繞更大範圍的收入增長，本季度低單打收入增長 10%。但對於全年來說，一旦你做出了所有的調整，你仍然會保持健康，並且比歷史上成長的速度要快得多。那麼Mac，您如何看待Sinqia之前以及Sinqia之後的情況，您可以談談業務的正常化成長率嗎？這是一個中個位數嗎？是不是更高了？賣出和賣出是什麼？我覺得過去四、五年發生了許多令人感動的事情，無論是颶風還是新冠疫情。只是想了解這裡的標準化成長率是多少。

Yes. Yes, John, happy to try and answer that. So as you know, we don't give long-term guidance, and we've been very careful. And given, to your point, the complexity of our business, I think we've all been sort of surprised at the resiliency of the U.S. economy and the consumer. And we've also been very pleased with our execution, right? We've rolled out ATH Móvil additional features. We've been able to grab market share here and keep our customers.

是的。是的，約翰，很高興嘗試回答這個問題。如您所知，我們不會提供長期指導，而且我們一直非常謹慎。考慮到您的觀點，我們業務的複雜性，我認為我們都對美國經濟和消費者的彈性感到驚訝。我們對我們的執行也非常滿意，對吧？我們推出了 ATH Móvil 附加功能。我們已經能夠在這裡搶佔市場份額並留住我們的客戶。

Outside of Puerto Rico, our customers have exceeded their expectations. So if you look at Mercado Libre, you look at Santander, Getnet, they're beating their projections using our technology. So we feel like no company is perfect, but we feel like we've executed well. We've grown our market share, and we've kept our customers.

在波多黎各之外，我們的客戶超越了他們的期望。因此，如果您看看 Mercado Libre、Santander、Getnet，他們使用我們的技術超出了他們的預測。所以我們覺得沒有一家公司是完美的，但我們覺得我們執行得很好。我們擴大了市場份額，並留住了客戶。

Going forward, it's hard to predict. And when the next call, we'll give you guidance for next year. But things could decelerate as people anticipate, but we're not giving you guidance for next year. But we have been pleased with what we've been able to accomplish this year.

展望未來，很難預測。下次通話時，我們將為您提供明年的指導。但事情可能會像人們預期的那樣減速，但我們不會為您提供明年的指導。但我們對今年所取得的成就感到滿意。

Okay. And then just a follow-up. I know you haven't closed Sinqia yet, but we're, let's call it, 3 months into the process of -- I know you can't officially integrate until it's done, but conversations. Curious, what are you more excited about today, whether it's a cross-sell opportunity, cost savings? Just maybe an update on thinking now that you've been kind of in the process with these guys for 3 months now.

好的。然後只是後續行動。我知道你們還沒有關閉 Sinqia，但我們已經進入了 3 個月的流程——我知道在完成之前你們無法正式整合，但需要進行對話。好奇，今天您對什麼更興奮，是交叉銷售機會還是節省成本？也許只是更新你的想法，因為你已經和這些人一起工作了 3 個月了。

Sure. Yes. Look, I spent a lot of time in Sao Paulo since we announced this deal. And we're still incredibly excited about it, right? I mean this is -- first, it's a known company in Brazil that has a great reputation. They've been public for 10 years, strong sell-side coverage. Auditors are Deloitte. They've got a great reputation with their customers.

當然。是的。聽著，自從我們宣布這筆交易以來，我在聖保羅待了很多時間。我們仍然對此感到非常興奮，對吧？我的意思是，首先，它是巴西一家知名公司，享有很高的聲譽。他們已經上市 10 年了，賣方報道力道很大。審計師是德勤。他們在客戶中享有很高的聲譽。

We walked you through, a while back, who their customers are and their different segments.

不久前，我們向您介紹了他們的客戶是誰以及他們的不同細分市場。

Out of the gate, we're going to be really focused on how do they continue to execute well and then how do we help accelerate growth. So when we look at synergies, which weren't baked in to sort of the rationale of the deal when we talk about it's going to be accretive next year even without, but we are going to focus on growth.

從一開始，我們將真正關注他們如何繼續良好執行，然後我們如何幫助加速成長。因此，當我們考慮協同效應時，當我們談論明年的協同效應時，即使沒有，協同效應也不會成為交易的基本原理，但我們將專注於成長。

So we will focus first on payment. So the ability to sell our payments products in Brazil across their base is going to be a priority for us. As you may know, iFood, which is that Uber or the DoorDash of Brazil, the #1 food delivery company, already issued 700,000 cards using our platform. Alelo is already a customer. So we already have some products that are ready and available and that are localized to the market that we can start selling.

所以我們首先關注的是支付。因此，能夠在巴西的基礎上銷售我們的支付產品將是我們的首要任務。如你所知，iFood（即 Uber 或巴西排名第一的食品配送公司 DoorDash）已經使用我們的平台發行了 700,000 張卡。 Alelo 已經是客戶。因此，我們已經擁有一些已準備就緒且可用的產品，並且這些產品已針對我們可以開始銷售的市場進行了本地化。

Additionally, we can localize some of the products that we have like Place2Pay or our acquiring module if that demand presents itself with their customers as well. So selling products using the strength they have, the leadership team they have, the commercial relationships, we're incredibly excited about.

此外，如果客戶也有這種需求，我們可以在地化我們擁有的一些產品，例如 Place2Pay 或我們的收單模組。因此，利用他們擁有的實力、領導團隊和商業關係來銷售產品，我們對此感到非常興奮。

And then exporting their products, right? I mean they're digital products, they have a great onboarding solution. They have a great automated collection solution. So we're going to look through all of their different products, whether it's one of their digital services or one of their industry-specific products to see which of those we can export over time and the quickest.

然後出口他們的產品，對嗎？我的意思是它們是數位產品，它們有很棒的入門解決方案。他們有一個很棒的自動化收集解決方案。因此，我們將查看他們所有不同的產品，無論是他們的數位服務之一還是他們的特定行業產品之一，看看我們可以隨著時間的推移以最快的速度出口其中哪些產品。

We're still doing the work up to determine that. So we're excited. We think that this is going to be some good revenue synergies. And over time, there will be cost savings, but that's not going to be our priority. But we do think over time, just like we've done with our other acquisitions, if you look at our margins in our LatAm segment, we've made acquisitions, we've held margins together. We do think that we'll be able to share development teams to potentially share some of our infrastructure over time. But we're going to do it very deliberately in a way that doesn't prohibit sort of -- or detract from our agility and our growth.

我們仍在進行工作以確定這一點。所以我們很興奮。我們認為這將產生一些良好的收入協同效應。隨著時間的推移，成本將會節省，但這不是我們的首要任務。但我們確實會隨著時間的推移進行思考，就像我們對其他收購所做的那樣，如果你看看我們在拉丁美洲部門的利潤率，我們已經進行了收購，我們已經保持了利潤率。我們確實認為，隨著時間的推移，我們將能夠共享開發團隊，從而有可能共享我們的一些基礎設施。但我們將以一種不會妨礙或減損我們的敏捷性和成長的方式非常謹慎地這樣做。

Okay. And last one for me, just again another Sinqia question. They've been successful by, in large part, their ability to acquire companies, integrate that and grow the business. Do you plan to continue to enable them to do that to deploy capital in Brazil? Do you think that's kind of be your focus kind of going forward moving into Brazil? Just thoughts on -- they have been successful doing a lot of M&A, and I would assume you're going to continue to do that, but just any thoughts there.

好的。最後一個問題是我的另一個 Sinqia 問題。他們的成功在很大程度上取決於他們收購公司、整合公司並發展業務的能力。您是否計劃繼續讓他們能夠在巴西部署資本？您認為這是您進軍巴西的重點嗎？只是想一想——他們已經成功地進行了很多併購，我認為你會繼續這樣做，但只是有任何想法。

Yes. So we will. So they have a very -- we spent time with the M&A team, their methodology. They've done a great job acquiring 24 companies over the last several years. That team will stay intact because they have a very -- they're very deep into the market. They have relationships with entrepreneurs. They have relationships with companies. They have a pipeline. So we will continue to work with them to focus on Brazilian targets, and we bring capital that they didn't have in the past, right, given our current capability and given the cash that we throw off.

是的。所以我們會的。所以他們有一個非常——我們花了很多時間與併購團隊相處的方法論。過去幾年裡，他們收購了 24 家公司，做得非常出色。團隊將保持完整，因為他們非常深入市場。他們與企業家有關係。他們與公司有關係。他們有管道。因此，我們將繼續與他們合作，專注於巴西的目標，考慮到我們目前的能力和我們丟棄的現金，我們帶來了他們過去沒有的資本，對吧。

However, we're not going to focus just on Brazil. Alberto is very focused on looking throughout the region, looking into other markets. So we will focus on Brazil for sure, but we'll continue to look across the region.

然而，我們不會只關注巴西。阿爾貝托非常專注於尋找整個地區以及其他市場。因此，我們肯定會關注巴西，但我們將繼續關注整個地區。

And the next question comes from Nate Svensson with Deutsche Bank.

下一個問題來自德意志銀行的 Nate Svensson。

Great results. Happy to see the print. I was wondering if you could give a little more color about the contractual minimums with Getnet that you think you're going to bust through. So maybe can you talk about some of the drivers that are pushing you above that? Is this sort of growth at Getnet that has exceeded expectations? Is it efforts from EVERTEC? Is it macro?

很好的結果。很高興看到印刷品。我想知道你是否可以對你認為你會突破的 Getnet 合約最低限度提供更多的資訊。那麼您能否談談推動您超越這一目標的一些驅動因素？ Getnet 的這種成長是否超出了預期？是EVERTEC的努力嗎？是宏嗎？

And then I guess maybe more broadly, sort of what portion of your book of business has contractual terms similar to what you have at Getnet? I know earlier you talked about Santander exceeding expectations. So I guess a little more color on what drove the Getnet performance above expectations and then how that applies to the rest of your book of business.

然後我想也許更廣泛地說，您的業務手冊的哪一部分具有與 Getnet 類似的合約條款？我知道早些時候您談到桑坦德銀行超出了預期。因此，我想對 Getnet 的效能超出預期的原因以及如何將其應用於您的業務的其他部分進行更多的闡述。

Yes. So this is Mac. I'll take sort of strategically how we think about this, and then I'll hand it to Joaquin, if he wants to provide more details. Look, one of the things that we are proud of is that the team has -- we've made acquisitions, we bought some good technology and then we've localized it in specific countries to take advantage of opportunities. But when we did that, we would match it against a real commercial opportunity. We didn't -- we don't necessarily localize and wait for them to come, we actually localize it when there's demand.

是的。這就是麥克。我會從戰略上考慮我們如何看待這個問題，然後我會將其交給華金（Joaquin），如果他想提供更多細節的話。看，我們引以為傲的事情之一是我們的團隊進行了收購，我們購買了一些好的技術，然後我們將其本地化到特定的國家以利用機會。但當我們這樣做時，我們會將其與真正的商業機會相匹配。我們沒有——我們不一定進行本地化並等待他們的到來，我們實際上是在有需求時進行本地化。

So with some of the contracts, particularly when it was a significant build, we would put minimums in place to ensure they didn't necessarily want to pay big implementation fees. So we put minimums in place to ensure that we could recover our investment and not be wholly dependent on their success selling the product and that type of thing. So we have built some contracts in that manner, and this was one of the larger ones.

因此，對於一些合同，特別是當它是一個重要的構建時，我們會設定最低限度，以確保他們不一定願意支付大筆的實施費用。因此，我們制定了最低限度，以確保我們能夠收回投資，而不是完全依賴他們銷售產品和此類產品的成功。因此，我們以這種方式簽訂了一些合同，這是較大的合約之一。

So it's played out very well, and they have been incredibly successful. They have over 150,000 merchants up. We believe they've been the most successful to challenge Transbank. But not only have they been successful in that we're recovering our investment and a good return on top, they're blowing through it. And that's what you're seeing this quarter is a multi-quarter catch-up, right? So this isn't stuff that just occurred in this quarter. We're catching up for multiple quarters because the combination of both of our efforts have exceeded both of our expectations.

所以結果非常好，他們取得了令人難以置信的成功。他們有超過15萬個商家。我們相信他們是挑戰跨銀行最成功的人。但他們的成功不僅在於我們收回了投資並獲得了良好的回報，而且他們正在經歷巨大的損失。這就是您在本季度看到的多季度追趕，對吧？所以這不是本季剛剛發生的事情。我們已經連續多個季度迎頭趕上，因為我們雙方努力的結合已經超出了我們的預期。

Got it. That's super helpful color. And then another comment I wanted a little clarification on. So Joaquin, you mentioned that EBITDA margins in the fourth quarter are going to be lower to increased investments in the business and resulting in higher OpEx. So maybe could you give a little more color on what those specific investments are? What OpEx line items you're going to see the increases in, and then sort of what the sort of long-term strategic rationale for those investments are?

知道了。這是超級有用的顏色。然後我想澄清另一個評論。 Joaquin，您提到第四季度的 EBITDA 利潤率將會降低，因為業務投資增加並導致營運支出增加。那麼您能否進一步說明這些具體投資是什麼？您將看到哪些營運支出項目增加，以及這些投資的長期策略理由是什麼？

I mean I think that in this case, we're kind of highlighting very specific projects that are coming into play. I would say, mainly in the professional lines, professional fees pipeline and cloud services. We are continuously looking at our infrastructure, looking for ways to be more efficient to bring our technology to the next level, and just timing-wise, some of those will fall into the fourth quarter. Plus we have some very specific corporate initiatives that we are doing mainly across Latin America. As we continue to look at different markets and evaluate different ways of entering Brazil, et cetera, that will also fall into the fourth quarter.

我的意思是，我認為在這種情況下，我們正在強調正在發揮作用的非常具體的項目。我想說，主要是在專業線、專業收費管道和雲端服務方面。我們正在不斷關注我們的基礎設施，尋找更有效的方法，將我們的技術提升到一個新的水平，就時間而言，其中一些將在第四季度進行。此外，我們還有一些非常具體的企業舉措，主要在拉丁美洲開展。隨著我們繼續關注不同的市場並評估進入巴西等的不同方式，這也將落入第四季度。

The next question comes from Bob Napoli with William Blair.

下一個問題來自鮑伯·納波利和威廉·布萊爾。

I guess another question on Sinqia. Just since this is a new business for you, how do you think about Sinqia's tech stack relative to competition? There's a lot of innovation in the bank tech space. And I think Sinqia is doing a cloud -- transition to the cloud. But just any thoughts around the challenges and opportunities and how that tech stack compares to the competition.

我猜還有一個關於 Sinqia 的問題。由於這對您來說是一項新業務，您如何看待 Sinqia 的技術堆疊相對於競爭的情況？銀行技術領域有許多創新。我認為 Sinqia 正在做雲端——向雲端的過渡。但只是關於挑戰和機遇以及該技術堆疊與競爭對手相比如何的任何想法。

Yes. So Bob, what I would tell you is, look, Sinqia is acquired, like we said, 24 assets over the last decade. And then they also have a legacy business that was sort of the genesis of the company. They've done an incredibly good job, and we sort of interviewed the marketplace, interviewed competitors, interviewed ex employees. They did a good job providing good service, providing good technology to their customers. But they have built product road maps, and they have got to move some of the more stuff to the cloud, right?

是的。所以鮑勃，我要告訴你的是，正如我們所說，Sinqia 在過去十年中被收購了 24 項資產。然後他們還有一項遺留業務，這就是公司的起源。他們做得非常好，我們訪問了市場、訪問了競爭對手、採訪了前員工。他們做得很好，為客戶提供了良好的服務和良好的技術。但他們已經建立了產品路線圖，並且必須將一些更多的東西轉移到雲端，對嗎？

They're in this journey. They're not finished with it. So just like most companies that have been around for a while, they're still migrating some stuff to the cloud. They're still going along that journey. And they're still, on some of their platforms, determining which one they're going to decommission, which one they're going to keep. So they are still along that journey. But I think they're executing it well. But that is something that we will help them focus on and make sure that they execute and that they're able to make the migration that they've set out to accomplish.

他們正在這個旅程中。他們還沒有完成。因此，就像大多數已經存在了一段時間的公司一樣，他們仍在將一些內容遷移到雲端。他們仍然沿著那段旅程往下走。他們仍在某些平台上決定要停用哪一個、要保留哪一個。所以他們仍然在這條路上。但我認為他們執行得很好。但這是我們將幫助他們專注並確保他們執行並能夠完成他們計劃完成的遷移的事情。

And then maybe some color on the sales activity in Latin America, just the pipeline, what you're seeing there.

然後也許是拉丁美洲銷售活動的一些色彩，只是管道，你在那裡看到的。

Bob, this is Joaquin. I mean I think, as we've said before, the organic side of the business continues to perform very well. Obviously, it's a result of some of the products and the investments that we've been making over time. I think Santander and what we just reported is a perfect example of how the investments that we made originally when we acquired the Chile asset, then all the investments we did to convert that into a processing platform, are actually now giving very good results. And that's driving the pipeline as well. I mean this type of performance certainly brings others to take a look and participate. So we're certainly continuing to take advantage of that.

鮑勃，這是華金。我的意思是，我認為，正如我們之前所說，業務的有機方面繼續表現良好。顯然，這是我們長期以來所做的一些產品和投資的結果。我認為桑坦德銀行和我們剛剛報導的內容是一個完美的例子，說明我們最初在收購智利資產時進行的投資，然後我們為將其轉換為處理平台而進行的所有投資，現在實際上取得了非常好的結果。這也推動了管道的發展。我的意思是這樣的表演肯定會吸引其他人觀看和參與。所以我們肯定會繼續利用這一點。

What's also interesting, Bob, is as we've acquired these different assets and localized in different countries and then become more, I guess, of experts in how do we commercialize these and sell them. We're beginning to find opportunities where we can bundle these products, right? So if you take one of our wallet solutions, you take one of our risk management solutions, you take one of our issuing solutions, can you put those together and offer unique solutions? So we feel good about the pipeline. We're continuing to sell in the countries we do business in. But now that we have a broader set of products, we're becoming a more interesting solution to customers in these markets.

鮑勃，同樣有趣的是，我們已經獲得了這些不同的資產，並在不同的國家進行了本地化，然後我想，我們在如何將這些資產商業化並出售它們方面變得更加專家。我們開始尋找捆綁這些產品的機會，對嗎？因此，如果您採用我們的錢包解決方案之一，您採用我們的風險管理解決方案之一，您採用我們的發行解決方案之一，您能否將這些解決方案組合在一起並提供獨特的解決方案？所以我們對管道感覺良好。我們將繼續在我們開展業務的國家/地區進行銷售。但現在我們擁有更廣泛的產品，我們正在成為這些市場中客戶更感興趣的解決方案。

(Operator Instructions) And the next question comes from James Faucette with Morgan Stanley.

（操作員說明）下一個問題來自摩根士丹利的 James Faucette。

Just quickly following up on Sinqia. Anything that you can share in terms of key to do still to get past, whether it be from a regulatory perspective or other issues like that? Just trying to make sure that we understand what the road maps is here still to get that closed.

只是快速跟進 Sinqia。您可以分享一些仍然需要做的關鍵事情嗎，​​無論是從監管角度還是其他類似問題？只是想確保我們了解路線圖的內容，以完成該任務。

To get -- I mean, the big thing was the shareholder approval, right? So we've got that behind us. We're still working through small issues, but we're still focused on the close and feel good about getting this deal flows. But the big issue for us was the shareholder approval. That was the [long pole] all the time.

為了獲得——我的意思是，最重要的是股東的批准，對吧？所以我們已經把它拋在身後了。我們仍在解決一些小問題，但我們仍然專注於完成交易，並對這筆交易的順利進行感到滿意。但對我們來說最大的問題是股東的批准。那一直是[長桿]。

Got it. Got it. Got it. And then when you think about next year, I think you kind of -- really appreciate you calling out the grow-over challenges from this year into next year, et cetera. But what are the things that you're watching from a macro perspective besides just like inflation rates coming down probably a little bit faster at least in Puerto Rico than anticipated? And anything else that we should be aware of that could move things around?

知道了。知道了。知道了。然後，當你想到明年時，我認為你真的很感激你指出從今年到明年的成長挑戰，等等。但是，除了波多黎各的通貨膨脹率下降可能比預期快一點之外，您還從宏觀角度觀察到哪些事情？還有什麼我們該注意的可以改變事情的事情嗎？

James, this is Joaquin. I mean look, as I said, I think that for what it's worth in Puerto Rico, we continue to expect a stable backdrop. As we said in one of the other questions that we got, I think we've all been surprised by the strength of the consumer and how that's got reflected in, let's say, sales volume and transactions, even though we're kind of way past some of these very specific funds that were hitting people's bank accounts.

詹姆斯，這是華金。我的意思是，正如我所說，我認為就波多黎各的價值而言，我們仍然期待一個穩定的背景。正如我們在收到的其他問題之一中所說，我認為我們都對消費者的力量及其如何反映在銷售和交易中感到驚訝，儘管我們在某種程度上過去一些非常具體的資金進入了人們的銀行帳戶。

It seems like reconstruction is starting to have, let's say, an undertone in the performance of the Puerto Rico economy, not hugely significant to the point where we can kind of pinpoint. But there's certainly more activity, and that's why we feel that on a go-forward basis, it will be stable in Puerto Rico.

可以說，重建似乎開始對波多黎各經濟的表現產生影響，但並沒有達到我們可以精確指出的程度。但肯定會有更多的活動，這就是為什麼我們認為在未來的基礎上，波多黎各的情況將會穩定。

And in Latin America, obviously, we have multiple countries that we're tracking in terms of potential effects. But given the type of services that we're providing outside of Puerto Rico, it is really more driven by the pipeline and being able to execute and deliver on time for those clients. So I'd say that at a high level, that's kind of our macro, what we're always considering.

顯然，在拉丁美洲，我們正在追蹤多個國家的潛在影響。但考慮到我們在波多黎各以外提供的服務類型，它實際上更多是由管道驅動的，並且能夠為這些客戶按時執行和交付。所以我想說，從較高的層面來看，這是我們一直在考慮的宏觀因素。

And the next question comes from Jamie Friedman with Susquehanna.

下一個問題來自薩斯奎哈納的傑米·弗里德曼。

Let me echo the congratulations. Joaquin, when I do the math on the implications for the Q4 though, I'm getting a decel down to the low single digits. And I think you made some comments specifically about September in your prepared remarks. I was just hoping you could kind of help unpack if the slowdown is of that magnitude, why it would be? And if you could repeat what you said about September.

讓我也表達祝賀吧。華金，當我計算對第四季的影響時，我得到了一個低個位數的減速。我認為您在準備好的發言中專門針對 9 月發表了一些評論。我只是希望你能幫忙解釋一下，如果經濟放緩的幅度如此之大，為什麼會這樣呢？如果你能重複一下你所說的關於九月的話。

Yes. So September of last year, the second half of September was impacted by Hurricane Fiona. We had a hurricane that came through. And we saw -- and actually, we called out when we had the Q3 call that there was slowdown in the last 2 weeks of last year. And that certainly was a positive in the rollover this year, both in Merchant Acquiring and in Payments Puerto Rico.

是的。所以去年9月份，9月下半月就受到了颶風菲歐娜的影響。我們經歷了一場颶風。我們看到——實際上，當我們接到第三季電話會議時，我們大聲疾呼，去年最後兩週出現了放緩。這對今年的展期無疑是正面的，無論是在商家收單還是在波多黎各支付方面。

So as we go into Q4, obviously, we won't have that benefit, number one. Also, when you look at the growth rate in this quarter, we have Santander, which is big in the Latin America segment. And then in Business Solutions, we have the grow-over from last year, given the CPI effect, which was another $6 million in the previous year.

因此，當我們進入第四季度時，顯然，我們不會獲得第一大好處。此外，當你看看本季的成長率時，我們有桑坦德銀行，它在拉丁美洲市場規模很大。然後，在業務解決方案方面，考慮到 CPI 的影響，我們比去年有了成長，去年又成長了 600 萬美元。

So the Business Solutions segment, once we get into the next quarter, will be in the low single digit, which is what we've expected, right? So those are the main drivers. And then obviously, just a little bit of a slowdown in the overall trend in payments just given where we're coming off of.

因此，一旦我們進入下一個季度，業務解決方案部門將處於低個位數，這正是我們所預期的，對吧？這些是主要驅動因素。顯然，考慮到我們的情況，支付的整體趨勢略有放緩。

Okay. And then, Mac, I think that you or Joaquin had alluded to some pricing opportunities in merchant. I was wondering if you could kind of elaborate on that. What, if you could share, the magnitude or how you're thinking at least strategically of that price.

好的。然後，Mac，我認為你或華金已經提到了商家的一些定價機會。我想知道你能否詳細說明一下。如果您可以分享的話，您至少在策略上如何看待這個價格，或者您是如何看待這個價格的。

Actually, Jamie, what we called out is that we're going to be lapping a lot of those now going into Q4, which is actually another driver that's going into how we're looking at the fourth quarter. So Q3 also benefited from some of those pricing initiatives that we actually put in place last year, and that has been a tailwind.

事實上，傑米，我們呼籲的是，我們將在進入第四季度的時候進行很多圈速，這實際上是我們如何看待第四季度的另一個驅動因素。因此，第三季也受益於我們去年實際實施的一些定價舉措，這是一個順風車。

As we've said previously, pricing initiatives in a broader sense where we're kind of impacting the whole portfolio, it's something that we don't do all the time. That's why we've called this one out. We are, however, always looking at different segments of the portfolio, different verticals within the portfolio where the different dynamics or types of cards or mix is impacting profitability and we'll go in and adjust. And those are a lot more subtle to the overall results, but it's something that we're always doing. In this case, what we're calling out is we're going to lap an effect of pricing initiatives that impacted pretty much the whole portfolio last year, and we benefited from that throughout.

正如我們之前所說，更廣泛意義上的定價措施會影響整個投資組合，但我們並不總是這樣做。這就是我們叫出這個的原因。然而，我們始終關注投資組合的不同部分、投資組合中的不同垂直領域，其中不同的動態或卡片類型或組合正在影響獲利能力，我們將進行調整。這些對於整體結果來說要微妙得多，但這是我們一直在做的事情。在這種情況下，我們要指出的是，我們將吸收定價措施的影響，這些措施去年幾乎影響了整個投資組合，我們自始至終都從中受益。

And this does conclude the question-and-answer session. I would like to turn the call to Mac Schuessler for any closing comments.

問答環節到此結束。我想將電話轉給 Mac Schuessler 以徵求結束意見。

Again, we'd like everyone -- to thank everyone for joining us tonight for the call. And we look forward to seeing you in upcoming conferences. Good night.

我們再次希望大家感謝大家今晚加入我們的電話會議。我們期待在即將召開的會議上見到您。晚安。

Thank you. The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines.

謝謝。會議現已結束。感謝您參加今天的演示，您現在可以掛斷電話了。