Evertec Inc (EVTC) 2024 Q1 法說會逐字稿

Good afternoon, everyone, and welcome to EVERTEC's First Quarter 2024 Earnings Conference Call. Today's conference call is being recorded. (Operator Instructions)

大家下午好，歡迎參加 EVERTEC 2024 年第一季財報電話會議。今天的電話會議正在錄音。 （操作員說明）

I would now like to turn the conference over to Beatriz Brown-Saenz of Investor Relations. Please go ahead.

我現在想將會議交給投資者關係部的 Beatriz Brown-Saenz。請繼續。

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. 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。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, and good afternoon, everyone. We are pleased to announce a good start to the fiscal year with strong revenue growth driven by a full quarter contribution from Sinqia and organic growth across all our segments.

謝謝，比阿特麗斯，大家下午好。我們很高興地宣布，在 Sinqia 整個季度的貢獻以及我們所有部門的有機增長的推動下，本財年取得了良好的開端，收入強勁增長。

I will begin today's call with a summary of our first quarter 2024 financial results, followed by a discussion of the Puerto Rico environment and an update on Latin America. I will then turn the call over to Joaquin, who will provide some additional details on our Q1 results and an update on our 2024 outlook.

我將在今天的電話會議開始時總結我們 2024 年第一季的財務業績，然後討論波多黎各的環境和拉丁美洲的最新情況。然後我會將電話轉給 Joaquin，他將提供有關我們第一季業績的一些其他詳細資訊以及我們 2024 年展望的最新資訊。

Beginning on Slide 4. Let's start with some financial highlights from our first quarter. We reported $205 million in revenue, a 28% increase over the prior year quarter and adjusted EBITDA was $78.2 million, up approximately 16% when compared with the prior year, driven by the revenue increase. Adjusted EBITDA margin was 38.1%, down from a year ago and aligned with our expectations, driven by a full quarter of Sinqia contribution at lower margins. Adjusted EPS for the quarter was $0.72, up 4% year-over-year.

從幻燈片 4 開始。我們公佈的營收為 2.05 億美元，比上年同期成長 28%，調整後 EBITDA 為 7,820 萬美元，在營收成長的推動下，較上年成長約 16%。調整後 EBITDA 利潤率為 38.1%，較上年同期有所下降，與我們的預期一致，這是受到 Sinqia 整個季度較低利潤率貢獻的推動。該季度調整後每股收益為 0.72 美元，年增 4%。

Operating cash flow for the quarter was $36 million. On the capital allocation front, we returned approximately $3 million to shareholders through dividends and entered into a $70 million ASR as anticipated on our last call, which we expect to complete by the third quarter. Our liquidity remains strong at approximately $408 million as of March 31.

該季度的營運現金流為 3,600 萬美元。在資本配置方面，我們透過股息向股東返還了約 300 萬美元，並按照上次電話會議的預期簽訂了 7,000 萬美元的 ASR，預計在第三季完成。截至 3 月 31 日，我們的流動性仍然強勁，約為 4.08 億美元。

Turning to our Puerto Rico update on Slide 5. All our Puerto Rico segments performed well during the quarter, reflecting solid organic growth over prior year. Payments Puerto Rico revenue grew approximately 10% year-over-year, driven by higher POS transactions and continued strength in ATH Móvil Business. Merchant Acquiring grew approximately 7% on a year-over-year basis, benefiting from sales volume growth and a higher spread. The Business Solutions segment returned to growth, up approximately 4% year-over-year, reflecting growth across various lines of business.

轉向我們在幻燈片 5 上的波多黎各更新。受 POS 交易量增加和 ATH Móvil 業務持續強勁的推動，波多黎各支付收入年增約 10%。受惠於銷售成長和價差擴大，商家收單年增約 7%。業務解決方案部門恢復成長，年增約 4%，反映了各業務線的成長。

The Puerto Rico macro environment continues to be supportive for EVERTEC as we move through 2024. The unemployment rate remained low at 5.7% in the first quarter and the level of employment remained steady at 1.1 million, the highest number since 2009. Travel also remains robust with airport arrivals up over 10% year-over-year in the first quarter.

邁入 2024 年，波多黎各宏觀環境持續支持 EVERTEC。人數較去年同期成長超過10%。

Turning to Latin America on Slide 6. LATAM revenue was up significantly year-over-year in the quarter, reflecting the contribution from the Sinqia acquisition that closed in the fourth quarter as well as continued organic growth from our legacy business. On our last call, we discussed our area of focus with Sinqia for 2024, and we continue to make strides in all fronts.

第 6 張投影片轉向拉丁美洲。在上次電話會議中，我們與 Sinqia 討論了 2024 年的重點領域，我們將繼續在各個方面取得進展。

From a technology modernization perspective, we have laid out detailed road maps and have identified the key projects that we will prioritize throughout 2024 with a focus on those investments that will have the largest impact for our clients. We believe these enhancements will open the door for pricing initiatives with existing customers and better offerings to capture market share. As for our customer-centric initiatives, we have implemented regular visits to our top clients, and we are making a point of acting on the feedback they've given us.

從技術現代化的角度來看，我們制定了詳細的路線圖，並確定了我們將在 2024 年優先考慮的關鍵項目，重點關注那些將對客戶產生最大影響的投資。我們相信，這些增強功能將為現有客戶的定價舉措和提供更好的產品以佔領市場份額打開大門。至於我們以客戶為中心的舉措，我們定期拜訪我們的頂級客戶，並重視根據他們給我們的回饋採取行動。

Our next step will be to leverage these relationships to cross-sell our products. The integration process continues to be a priority for the executive team. And to that end, we have promoted Claudio Prado to Group Head of Brazil, replacing Bernardo Gomez, who for personal reasons, has decided to take a step back and shift to a consultant role. Bernardo did a fantastic job building Sinqia over the past years, and we thank him for his contributions during the integration process.

我們的下一步將是利用這些關係來交叉銷售我們的產品。整合過程仍然是執行團隊的首要任務。為此，我們已晉升克勞迪奧·普拉多 (Claudio Prado) 為巴西集團負責人，接替貝爾納多·戈麥斯 (Bernardo Gomez)，後者因個人原因決定退後一步，轉而擔任顧問角色。 Bernardo 在過去幾年中在建立 Sinqia 方面做得非常出色，我們感謝他在整合過程中所做的貢獻。

Claudio has over 30 years of experience in the technology industry, including as CIO of Santander and Deutsche Bank, and over 7 years contributing to Sinqia. Claudio's entrepreneurship background provides a good perspective of the client-focused approach best suiting him to handle the day-to-day leadership responsibilities at Sinqia. We look forward to providing further updates on the integration process as we progress.

Claudio 在科技業擁有 30 多年的經驗，包括擔任桑坦德銀行和德意志銀行的首席資訊官，並為 Sinqia 做出了超過 7 年的貢獻。 Claudio 的創業背景為他提供了以客戶為中心的方法的良好視角，最適合他處理 Sinqia 的日常領導職責。隨著我們的進展，我們期待提供有關整合流程的進一步更新。

With that, I will now turn the call over to Joaquin.

現在，我將把電話轉給華金。

Thank you, Mac, and good afternoon, everyone. Turning to Slide 8. I'll begin by reviewing the first quarter results for EVERTEC. Total revenue for the first quarter was $205.3 million, up approximately 28% compared to the prior year, reflecting strong growth in our Latin America segment that benefited from a full quarter contribution from Sinqia as well as continued strong organic growth.

謝謝你，麥克，大家下午好。轉向幻燈片 8。第一季總收入為 2.053 億美元，比上年增長約 28%，反映出我們拉丁美洲業務的強勁增長，這得益於 Sinqia 全季度的貢獻以及持續強勁的有機增長。

The quarter also benefited from higher sales and transaction volumes, continued strength in ATH Móvil Business and a return to growth in Business Solutions. Adjusted EBITDA for the quarter was $78.2 million, an increase of approximately 16% from the prior year. And adjusted EBITDA margin was 38.1%, down approximately 390 basis points from the prior year, mostly as a result of the Sinqia's acquisition, but aligned to our expectations.

本季度還受益於銷售額和交易量的增加、ATH Móvil 業務的持續強勁以及業務解決方案的恢復成長。該季度調整後 EBITDA 為 7,820 萬美元，比上年增長約 16%。調整後的 EBITDA 利潤率為 38.1%，比上年下降約 390 個基點，主要是由於 Sinqia 的收購，但符合我們的預期。

Adjusted net income was $48 million, an increase of approximately 5% year-over-year, mainly as a result of the higher adjusted EBITDA and a non-GAAP tax benefit compared with a non-GAAP tax expense in the prior quarter. The tax benefit will be partially offset in the remaining quarters, and we now expect our adjusted effective tax rate to be in a range of 6% to 7%. These positive balances were partially offset by higher operating depreciation and amortization, resulting from the increased CapEx in prior years and higher cash interest expense given the incremental debt raised to acquire Sinqia.

調整後淨利潤為 4,800 萬美元，年成長約 5%，主要是由於與上一季非 GAAP 稅收支出相比，調整後 EBITDA 更高以及非 GAAP 稅收優惠。稅收優惠將在剩餘季度中部分抵消，我們現在預計調整後的有效稅率將在 6% 至 7% 的範圍內。這些正餘額被較高的營業折舊和攤銷部分抵消，這是由於前幾年資本支出增加以及為收購 Sinqia 籌集的增量債務而增加的現金利息支出所致。

Adjusted EPS was $0.72, an increase of approximately 4% from the prior year driven by the same reasons pointed out, impacting adjusted net income, partially offset by a higher share count due to the shares issued as part of the Sinqia acquisition.

調整後每股收益為 0.72 美元，比上年增長約 4%，原因與上述相同，影響了調整後淨利潤，但因收購 Sinqia 發行的股票而增加的股票數量部分抵消了這一影響。

Moving to Slide 9. I will now cover our first quarter results by segment, beginning with Merchant Acquiring. Net revenue increased by approximately 7% year-over-year to $43.1 million, driven by strong volumes and a higher spread. Sales volume was up 6%, driven by incremental volumes for existing merchants, effects of inflation on key verticals and new merchants signed towards the end of last year. Our overall spread per transaction was also higher than prior year, in part driven by card mix and partially offset by a declining average ticket. Trends for the month of April are aligned to Q1 results with mid-single-digit sales volume growth.

轉到投影片 9。由於強勁的銷量和更高的價差，淨收入年增約 7% 至 4,310 萬美元。受現有商家銷售量增量、通膨對關鍵垂直產業的影響以及去年底簽約的新商家的推動，銷量成長了 6%。我們每筆交易的整體價差也高於去年，部分原因是信用卡組合推動的，部分被平均門票下降所抵消。 4 月的趨勢與第一季的業績一致，銷量實現中個位數成長。

Adjusted EBITDA for the segment was $16.2 million. And adjusted EBITDA margin was 37.6%, down approximately 110 basis points from the prior year. The margin decrease was primarily due to higher transaction processing expenses given the lower average ticket per transaction.

該部門調整後的 EBITDA 為 1,620 萬美元。調整後 EBITDA 利潤率為 37.6%，較上年下降約 110 個基點。利潤率下降的主要原因是每筆交易的平均票據較低，因此交易處理費用較高。

On Slide 10 are the results for the Payment Services, Puerto Rico and Caribbean segment. Revenue in the quarter was $53 million, an increase of approximately 10% from the prior year. The revenue increase was driven by transaction growth of 7% year-over-year as well as continued strength in ATH Móvil Business, which experienced a 27% year-over-year increase in transactions during the quarter. Adjusted EBITDA was $30.4 million, up approximately 9% from the prior year. And adjusted EBITDA margin was 57.2%.

第 10 張幻燈片是支付服務、波多黎各和加勒比地區的結果。該季度營收為 5,300 萬美元，比上年增長約 10%。營收成長的推動因素是交易量年增 7%，以及 ATH Móvil 業務的持續強勁，該業務本季交易量較去年同期成長 27%。調整後 EBITDA 為 3,040 萬美元，比上年增長約 9%。調整後 EBITDA 利潤率為 57.2%。

On Slide 11 are the results for Latin America Payments & Solutions. Revenue in the quarter was $74.2 million, up approximately 110% year-over-year, reflecting a full quarter of revenue contribution from Sinqia. Contribution from the paySmart acquisition completed in March of the prior year and continued organic growth across the region as we continue to benefit from growth across key markets and from the Getnet relationship. Adjusted EBITDA was $16.3 million, up approximately 57% from the prior year, with adjusted EBITDA margin of approximately 22% down approximately 740 basis points and mainly driven by the inclusion of Sinqia, which contributes at lower margin compared to the segment average.

第 11 張投影片是拉丁美洲支付和解決方案的結果。該季度營收為 7,420 萬美元，年成長約 110%，反映了 Sinqia 整個季度的營收貢獻。去年 3 月完成的 paySmart 收購的貢獻以及整個地區的持續有機成長，我們繼續受益於主要市場的成長和 Getnet 關係。調整後EBITDA 為1,630 萬美元，較上年增長約57%，調整後EBITDA 利潤率約為22%，下降約740 個基點，主要是由於納入Sinqia，該公司的利潤率低於細分市場平均水平。

Turning to Slide 12, you will see the results for our Business Solutions segment. Revenue was $58.1 million, an increase of approximately 4% from the prior year. There were a number of factors that contributed to the higher revenue this quarter, including the effect of the CPI increase that began in Q4 of approximately 1.5% and growth across several business lines driven by the impact of incremental volumes and specific consulting projects that impacted the quarter positively.

轉向投影片 12，您將看到我們的業務解決方案部分的結果。營收為 5,810 萬美元，比上年增長約 4%。導致本季營收增加的因素有很多，包括第四季度開始的 CPI 上漲約 1.5% 的影響，以及受增量影響和影響了營收的特定諮詢項目的影響而推動的多個業務線的成長。季度積極。

Adjusted EBITDA was $23 million up approximately 3% from a year ago, and adjusted EBITDA margin was 39.6%, down approximately 50 basis points from the prior year. The margin decline is consistent with our expectations and due primarily to higher cost of sales and higher cloud expenses.

調整後 EBITDA 為 2,300 萬美元，較上年同期成長約 3%，調整後 EBITDA 利潤率為 39.6%，較上年下降約 50 個基點。利潤率下降與我們的預期一致，主要是因為銷售成本上升和雲端費用上升。

Moving to Slide 13, you will see a summary of our corporate and other expenses. Corporate and other expenses was $7.7 million in the quarter or 3.8% of total revenue, down from 5.7% in the prior year quarter due to lower professional services and personnel costs as we continue to manage expenses.

前往投影片 13，您將看到我們公司費用和其他費用的摘要。本季公司及其他費用為 770 萬美元，佔總收入的 3.8%，低於去年同期的 5.7%，原因是我們繼續管理費用，專業服務和人員成本下降。

Moving on to our cash flow overview on Slide 14. Net cash from operating activities was approximately $36 million. Capital expenditures were $21.9 million for the quarter. We drew $80 million from our revolving facility, paid down $23.1 million in debt. Paid dividends of $3 million and entered into the $70 million ASR. Our ending cash balance in March was $317.3 million (sic) [$337.6 million], a decrease of approximately $1.4 million from year-end 2023.

接下來是幻燈片 14 上的現金流量概述。本季資本支出為 2,190 萬美元。我們從循環貸款中提取了 8,000 萬美元，償還了 2,310 萬美元的債務。支付 300 萬美元股息並簽訂 7000 萬美元 ASR。我們 3 月的期末現金餘額為 3.173 億美元（原文如此）[3.376 億美元]，比 2023 年底減少約 140 萬美元。

On Slide 15, our net debt position at quarter end was approximately $793 million, comprised of approximately $1.1 billion in total loan and short-term debt, offset by approximately $294 million of unrestricted cash. Our net debt to trailing 12-month adjusted EBITDA was approximately 2.51x up from 0.9x a year ago, but still within our target range of 2 to 3x. As of December 31, our total liquidity, which excludes restricted cash and includes our borrowing capacity, was $407.6 million, up from $367.6 million from a year ago.

在投影片 15 中，我們季末的淨債務部位約為 7.93 億美元，其中包括約 11 億美元的貸款和短期債務總額，並被約 2.94 億美元的非限制性現金所抵銷。我們的淨債務與過去 12 個月調整後 EBITDA 比率約為 2.51 倍，較一年前的 0.9 倍增加，但仍在我們 2 至 3 倍的目標範圍內。截至 12 月 31 日，我們的總流動資金（不包括受限制的現金並包括我們的借款能力）為 4.076 億美元，高於一年前的 3.676 億美元。

Now turning to Slide 16, I'll provide an update on our outlook for the remainder of the year. We are raising the lower end of our revenue outlook by maintaining the high end of our revenue range for the year resulting in a range of $846 million to $854 million, representing growth over the prior year of approximately 22% to 23%.

現在轉向幻燈片 16，我將提供今年剩餘時間的最新展望。我們透過維持今年收入範圍的高端來提高收入前景的下限，從而達到 8.46 億美元至 8.54 億美元的範圍，比上一年增長約 22% 至 23%。

Regarding overall margin, we continue to anticipate that our adjusted EBITDA margin will be between 38.5% to 39.5%. And on adjusted EPS, we are also raising the lower end of our outlook and maintaining the higher end resulting in a range of $2.85 to $2.94, representing growth of approximately 1% to 4%, when compared with $2.82 reported for the prior year.

關於整體利潤率，我們繼續預期調整後的 EBITDA 利潤率將在 38.5% 至 39.5% 之間。對於調整後每股收益，我們還上調了預期的下限，並維持了上限，結果為 2.85 美元至 2.94 美元，與上一年報告的 2.82 美元相比，增長約 1% 至 4%。

Our operating depreciation came in above our earlier forecast, and we now expect a higher overall operating depreciation for the full year with a partial offset to this impact coming from taxes where we now expect a lower effective tax rate in the 6% to 7% range for the full year.

我們的營業折舊高於我們先前的預測，我們現在預計全年總體營業折舊會更高，其中部分抵消了稅收的影響，我們現在預計有效稅率較低，在 6% 至 7% 範圍內全年。

In terms of segments and given our Q1 results, we now expect Merchant Acquiring to grow closer to mid-single digits. We continue to expect our Payment Processing Puerto Rico segment to grow in the mid-single digits. For LATAM Payments & Solutions segment, we expect growth in the low 70s. And for Business Solutions, we still expect revenue growth in the low single digits for the year.

就細分市場而言，鑑於我們第一季的業績，我們現在預期商家收單業務將成長至接近中位數。我們繼續預期波多黎各支付處理業務將實現中個位數成長。對於拉丁美洲支付和解決方案領域，我們預計成長幅度將在 70 左右。對於商業解決方案，我們仍然預計今年的收入成長將保持在較低的個位數。

In summary, we are pleased with our first quarter results. We continue to work on integrating Sinqia, while also delivering strong results from our payment businesses in Puerto Rico and the rest of Latin America. We believe EVERTEC is well positioned for growth for the remainder of 2024 and beyond. We look forward to updating you on our progress in the coming year and hope to see some of you at conferences over the next few months.

總而言之，我們對第一季的業績感到滿意。我們持續致力於整合 Sinqia，同時在波多黎各和拉丁美洲其他地區的支付業務也取得了強勁的業績。我們相信 EVERTEC 在 2024 年剩餘時間及以後的成長中處於有利地位。我們期待向您通報我們來年的最新進展，並希望在未來幾個月的會議上見到你們中的一些人。

With that, operator, please open the line for questions.

那麼，接線員，請開通提問線路。

(Operator Instructions) The first question comes from Chris Kennedy with William Blair.

（操作員說明）第一個問題來自克里斯·甘迺迪和威廉·布萊爾。

Can you give your updated thoughts on the accretion opportunities for Sinqia?

您能否談談 Sinqia 的成長機會的最新看法？

Chris, this is Joaquin. So as we said in our last call, we continue to expect Sinqia to be more on the neutral side of the range. We had originally commented when we closed on the deal that we're going to be in the neutral to slightly accretive range. And as we discussed a little bit in the last quarter and given a little bit of the slowdown coming off of -- towards the end of the year last year, we now expect it to be in the -- closer to the neutral side of that range.

克里斯，這是華金。因此，正如我們在上次電話會議中所說，我們繼續預期 Sinqia 將更加偏向中性。當我們完成交易時，我們最初曾評論說，我們將處於中性至略微增值的範圍內。正如我們在上個季度討論的那樣，考慮到去年年底出現的一些放緩，我們現在預計它會更接近中立面範圍。

And let me add a little color. So I mean, we're still incredibly excited about Sinqia. I mean what we're very focused on right now is discipline around execution. So we're focused on -- now that we've had the leadership change, now Claudio is running the company. He has self-focused, reporting directly to him. So we're very focused on selling more and converting the sales through implementations into revenue faster. We've also now built a plan on -- in the past, they are very focused on buying other companies and trying to absorb those. Now we're focused on investing in those platforms, so we can continue to sell more features, more customizations, that type of thing.

讓我添加一點顏色。所以我的意思是，我們仍然對 Sinqia 感到非常興奮。我的意思是，我們現在非常關注的是執行紀律。因此，我們的重點是——現在我們已經進行了領導層變更，現在克勞迪奧正在管理公司。他以自我為中心，直接向他報告。因此，我們非常注重銷售更多產品，並透過實施更快地將銷售轉化為收入。我們現在也制定了一項計劃——過去，他們非常專注於收購其他公司並試圖吸收這些公司。現在我們專注於投資這些平台，這樣我們就可以繼續銷售更多功能、更多客製化等等。

And then finally, we are looking long term at how do we make this a faster growing, more accretive deal is by also looking at pricing, how do we price better, because they've accumulated all these companies, but now they have the opportunity to go back and look at how do they price each of the contracts better. So that's what we're really focused on, Chris, is how do they execute better, because the past 2 years, they've been focused on absorbing companies, going through the sales process. We now have a CEO in place, who is focused on the company and not personal issues and is focused on executing the companies that he's bought. So we're still very bullish.

最後，我們正在著眼於長期，如何透過定價來使這項交易成為一項成長更快、更具增值性的交易，我們如何更好地定價，因為他們已經積累了所有這些公司，但現在他們有機會回去看看他們如何更好地為每份合約定價。所以，克里斯，我們真正關注的是他們如何更好地執行，因為在過去的兩年裡，他們一直專注於吸收公司，完成銷售流程。我們現在有一位首席執行官，他專注於公司而不是個人問題，並專注於執行他所收購的公司。所以我們還是非常看好。

Right. And then just one follow-up. Can you give the organic growth of the Caribbean business or the non-Puerto Rico business?

正確的。然後只有一個後續行動。您能給出加勒比海業務或非波多黎各業務的有機成長嗎？

I mean we're not breaking out our Latin America segment, right, in terms of the different pieces. As we've said, we continue to expect that segment to grow in the double digits. Obviously, this year, it's very different, because we have the Sinqia impact on a year-over-year basis. But that continues to be an expectation for the segment overall.

我的意思是，我們並沒有從不同的方面來劃分拉丁美洲市場，對吧。正如我們所說，我們繼續預計該細分市場將以兩位數成長。顯然，今年情況非常不同，因為與去年相比，我們受到了 Sinqia 的影響。但這仍然是整個細分市場的預期。

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。

I wanted to touch on EBITDA margins quickly. So maybe a touch lower than where the street was before the print and I guess, 38.1% is below the low end of your guide for the full year. So I know you said that margins were in line with your expectations, but maybe you can talk about some of the puts and takes with margins in 1Q beyond the impact of Sinqia. And then, I guess, maybe in light of maybe higher expenses in 1Q, anything we should keep in mind when modeling margins out through the remainder of the year?

我想快速談談 EBITDA 利潤率。因此，也許比印刷前街道的情況要低一些，我猜，38.1% 低於全年指南的低端。所以我知道你說利潤率符合你的預期，但也許你可以談談第一季利潤率超出 Sinqia 影響的一些看跌期權和期權。然後，我想，也許考慮到第一季的費用可能更高，在對今年剩餘時間的利潤率進行建模時，我們應該記住什麼？

No. So yes, given the guidance, we are a tad below (inaudible) the guidance for the quarter. But as we reiterated in the outlook, we continue to be comfortable with the 38.5% to 39.5% over the full year. As we move into the second half of the year, we believe that we'll be able to drive slightly better margins than what we had in the first quarter. And as we've always done, we're continuously focusing on where can we find efficiencies to drive better margins given the scalability of our business. So that's something that's top of our mind continuously, and we'll continue to work on that towards the end of the year.

不。 所以，是的，鑑於指導，我們略低於（聽不清楚）本季的指導。但正如我們在展望中重申的那樣，我們仍然對全年 38.5% 至 39.5% 的成長率感到滿意。當我們進入今年下半年時，我們相信我們將能夠獲得比第一季略高的利潤率。正如我們一直以來所做的那樣，鑑於我們業務的可擴展性，我們不斷關注如何提高效率以提高利潤率。因此，這是我們一直關注的首要問題，我們將在年底前繼續努力。

Got it. I appreciate the color there. And then I guess -- so I appreciate the segment guide that you gave. So I think the 2 changes versus last time we're acquiring, which you moved up a little bit to mid-single digit and then LATAM, I think, moved down a little bit to low 70s. So maybe you can give a little color on what changed within those 2 segments, specifically where acquiring moved up kind of to the higher end of the range and LATAM kind of to the lower end of the range?

知道了。我很欣賞那裡的顏色。然後我想 - 所以我很欣賞你提供的分段指南。因此，我認為與上次我們收購的情況相比，有兩個變化，即上升了一點至中個位數，然後我認為拉丁美洲下降了一點至 70 多歲。因此，也許您可以對這兩個細分市場中發生的變化進行一些說明，特別是在收購方面上升到範圍的高端，而拉丁美洲則上升到範圍的較低端？

Sure. So I think that in the Merchant Acquiring business, we had a good first quarter. Obviously, when we look at the first quarter, there are a few specific items that we think are driving this when we look at the rest of the year. For example, Easter moved up this year in comparison to the last year, and we had a leap year as well. And when we look at April trends, they continue to be on a more normalized basis still in that mid-single-digit range from a sales volume perspective, which is a key driver for us. So we felt more comfortable bringing that to the higher side of the range for the rest of the year.

當然。因此，我認為在商家收單業務中，我們第一季表現良好。顯然，當我們審視第一季時，我們認為當我們審視今年剩餘時間時，有一些特定的因素正在推動這一趨勢。例如，今年的復活節比去年提早了，而且還有閏年。當我們觀察 4 月的趨勢時，從銷售的角度來看，它們仍然處於更正常化的基礎上，仍處於中個位數範圍內，這是我們的關鍵驅動力。因此，我們感覺在今年剩餘時間將其提高到該範圍的較高水平會更放心。

And in the case of Latin America, as we said, I mean, we're continuously obviously looking at how the different pieces are moving. Sinqia still will require us to -- some time for us to bring it back to the growth that we want to extract from that business. And so as we look at the rest of the year, we thought it was prudent to bring that down a little bit.

就拉丁美洲而言，正如我們所說，我的意思是，我們一直在持續關注不同部分的發展。 Sinqia 仍然需要我們花一些時間來恢復我們希望從該業務中獲得的成長。因此，當我們回顧今年剩餘時間時，我們認為將其稍微降低是謹慎的做法。

Makes sense. And just to clarify, so I guess on LATAM is that you're spending this time investing on tech client-centric stuff in Sinqia and so that kind of product towards the lower end more than anything else.

說得通。澄清一下，我想在拉丁美洲，你花這段時間投資於 Sinqia 中以客戶為中心的技術產品，因此這種面向低端的產品比其他任何產品都多。

That's right. That's correct. .

這是正確的。這是正確的。 。

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。

Mac, I appreciate the comments so far on Sinqia. I think last quarter, you noted that revenue growth has decelerated a little bit. It sounds like that hasn't probably changed given kind of the tone on investing and kind of working on execution, integration, but how do you think about this business longer term? Do you think you can reaccelerate it back into kind of that low double-digit growth on an organic basis? Or just any other color there on kind of how you think the longer-term trajectory of that business looks?

Mac，我很欣賞迄今為止對 Sinqia 的評論。我想上個季度，您注意到收入成長略有放緩。考慮到投資基調以及執行、整合方面的工作，這聽起來可能沒有改變，但您如何看待這項業務的長期發展？您認為您可以在有機基礎上將其重新加速至兩位數的低成長嗎？或者只是您認為該業務的長期軌跡如何的其他顏色？

Sure. So I mean I think I said it on the last call and even since then, I spent a lot of time with clients. And the thing that's exciting about Sinqia is local software companies that abide by the local regulations to provide the capabilities they need to compete. We're one of the largest providers and the most dependable providers. So the demand from customers and the desire to do business with Sinqia is obvious when I spend time with them.

當然。所以我的意思是，我想我在上次通話中就說過了，甚至從那時起，我就花了很多時間與客戶打交道。 Sinqia 令人興奮的地方在於，本地軟體公司遵守當地法規，提供競爭所需的能力。我們是最大的供應商和最值得信賴的供應商之一。因此，當我與 Sinqia 打交道時，客戶的需求和與 Sinqia 開展業務的願望是顯而易見的。

What has happened over time is they've acquired these companies, they tried to understand it themselves, absorb them, figure out how to operate them together. And then they moved into an M&A process with us. So in my viewpoint, they were a bit distracted with, again, trying to absorb these companies, figure out what the structure should look like and then selling the company to EVERTEC.

隨著時間的推移，他們收購了這些公司，他們試圖自己理解、吸收它們，並弄清楚如何共同經營它們。然後他們開始與我們進行併購。因此，在我看來，他們再次試圖吸收這些公司，弄清楚結構應該是什麼樣子，然後將公司賣給 EVERTEC，這讓他們有點心煩意亂。

Today, it's a very different culture and environment, because Bernardo had to step aside for personal reasons. I would say we anticipated that he would probably leave in a year or 2. That got accelerated given some things you needed to focus on. And then we put Claudio in his place now, who has clear objectives for each of the team members to ensure that the sales people are spending more times with clients, make sure that we're tracking the pipeline. They we're resolving operational issues so they want to buy more from us. So there's -- we're much, much closer to the clients, starting with me, but actually, the organization at Sinqia is better organized and better managed from a client perspective.

今天，這是一個非常不同的文化和環境，因為貝爾納多因個人原因不得不辭職。我想說的是，我們預計他可能會在一兩年內離開。然後我們現在讓克勞迪奧代替他的位置，他為每個團隊成員都有明確的目標，以確保銷售人員花更多時間與客戶在一起，確保我們追蹤管道。我們正在解決他們的營運問題，因此他們想從我們這裡購買更多產品。因此，從我開始，我們與客戶的距離就非常非常近，但實際上，從客戶的角度來看，Sinqia 的組織組織得更好，管理也更好。

Also once a deal is sold, is making sure the implementation teams can convert that to revenue, get the new system in, get the new customization, so that they can actually book the revenue. So the discipline around executing and operating the current organization, there's a much more significant focus on that from an organizational perspective and from a goal perspective.

此外，一旦交易完成，還要確保實施團隊能夠將其轉化為收入，引入新系統，進行新的定制，以便他們可以實際預訂收入。因此，圍繞著執行和運作當前組織的紀律，從組織角度和目標角度更加關注這一點。

The other thing is clients want us to keep investing in these platforms. We can't keep buying just new platforms. We actually have to make sure the ones we bought that were great when we bought them. They were keeping those current, they were keeping those updated so they can push more volume through it, that they'll continue to add features. So we've come up with a plan that gives our clients comfort that we're going to invest in this platform. And we prioritize those where we think we can get the most return in the shortest period of time. But we're coming up with a multiyear plan to make sure we invest within these great companies that we thought.

另一件事是客戶希望我們繼續投資這些平台。我們不能繼續只購買新平台。實際上，我們必須確保我們購買的產品在購買時是很棒的。他們保持這些內容最新，他們保持更新，這樣他們就可以透過它推動更多的數量，他們將繼續添加功能。因此，我們提出了一項計劃，讓我們的客戶放心，我們將投資這個平台。我們優先考慮那些我們認為可以在最短的時間內獲得最大回報的項目。但我們正在製定一個多年計劃，以確保我們投資於我們認為的這些偉大的公司。

And then the other piece that I've talked about is pricing. Like we are going through all of the contracts seeing who's not as profitable as others and how do we better manage the pricing initiatives to get the margin where we want it to be. So what I would say, John, is that we're trying to take the operational sort of excellence that we believe we have at EVERTEC and apply that now to Sinqia.

我談到的另一件事是定價。就像我們正在仔細檢查所有合同，看看誰的利潤不如其他人，以及我們如何更好地管理定價計劃以獲得我們想要的利潤。 John，我想說的是，我們正在努力將 EVERTEC 所擁有的卓越營運能力應用到 Sinqia 上。

If you look at our historical deals, this is what we did with PayGroup, right? So we bought PayGroup, because we need a platform and technology. And that is now the platform that we've rolled throughout the region. We brought up some of the biggest names in the region, but it took EVERTEC working with PayGroup to accomplish that, because we used our expertise in a processing business and applied it to their (inaudible) business and rolled it out across Latin America. Same thing we did with Place2Pay, right? Place2Pay was a small gateway operating in 2 countries. Now it operates in over 9 and some of our biggest customers are running on it.

如果您查看我們的歷史交易，您會發現這就是我們對 PayGroup 所做的事情，對吧？所以我們收購了 PayGroup，因為我們需要一個平台和技術。這就是我們現在在整個地區推出的平台。我們培養了該地區一些最知名的公司，但EVERTEC 與PayGroup 合作才實現了這一目標，因為我們利用了我們在處理業務方面的專業知識，並將其應用到他們的（聽不清楚）業務中，並將其推廣到整個拉丁美洲。我們對 Place2Pay 也做了同樣的事情，對嗎？ Place2Pay 是一個在 2 個國家/地區運作的小型閘道。現在它在超過 9 個國家/地區運行，我們的一些最大的客戶也在其上運行。

So that's what we see at Sinqia is when you do a deal, you always have surprises, right? The great surprises. It's a very important franchise in Brazil, and people want to do more business because they rely. And they even look now that it's part of EVERTEC. The strength we have around information security, the strength we have around compliance, because we operate for big banks in the U.S. It's making the value proposition even stronger in Brazil to do business with us.

這就是我們在 Sinqia 看到的，當你做一筆交易時，你總是會有驚喜，對吧？巨大的驚喜。這是巴西非常重要的特許經營權，人們希望做更多的生意，因為他們依賴。現在他們甚至認為它是 EVERTEC 的一部分。我們在資訊安全方面的優勢，在合規方面的優勢，因為我們為美國的大銀行運營，這使得與我們開展業務在巴西的價值主張更加強大。

But the operational excellence, making sure you're staying close to customers, making sure you have stable operations, making sure you're continuing to investing in products. That discipline is what we're now applying to the business. And I feel very confident that Claudio is the right person to lead us through that. And I mean, the team will tell you, I'm spending a lot of time there myself to help accomplish that as well.

但卓越的運營，確保您與客戶保持密切聯繫，確保您擁有穩定的運營，確保您繼續投資於產品。我們現在正在將這項規則應用到業務中。我非常有信心克勞迪奧是帶領我們實現這一目標的合適人選。我的意思是，團隊會告訴你，我自己也花了很多時間來幫助實現這個目標。

I appreciate the color, Mac. Joaquin just a bigger picture question on margins. Obviously, you had very high margins and still have relatively high margins, but they've been coming down consistently even if you were to kind of exclude some of the M&A transactions for a while. Do you feel like with Sinqia accretion and kind of synergies that were at a good kind of baseline margin this year, and that, again, I'm not asking for '25 guidance, but any reason why you shouldn't start to see some operating leverage? Your payments businesses typically have pretty high incremental margins. Just as we think about longer term, like should this business -- should margins improve from here, I guess, is the key question.

我很欣賞這個顏色，Mac。華金只是一個關於邊緣的更大的圖景問題。顯然，你的利潤率非常高，並且仍然具有相對較高的利潤率，但即使你暫時排除一些併購交易，利潤率也一直在下降。你是否覺得 Sinqia 的成長和協同效應今年處於良好的基線利潤水平，而且，我不是要求 25 年的指導，而是有任何理由你不應該開始看到一些經營槓桿？您的支付業務通常具有相當高的增量利潤。正如我們考慮更長期的問題一樣，我認為關鍵問題是這項業務是否應該從這裡開始提高利潤率。

I mean what I would say, John, is if you look at our slides from last quarter, with Sinqia specifically, we actually had a little box that said margin optimization. So we are certainly focused on maximizing margin from our current baseline. What I would say historically is that the reasons why margin has come down has been very specific to actions that we have taken. One, with the popular deal, we sold off some assets. And we took on a revenue share on our Merchant Acquiring business that we knew was going to bring margin or put pressure on the margin as we exited that deal, but that gave us extended relationships with the bank, a renewed relationship with the bank and got us out of the bank holding company that allowed us to do more M&A.

約翰，我想說的是，如果你看我們上個季度的幻燈片，特別是 Sinqia，我們實際上有一個小方框，上面寫著利潤率優化。因此，我們當然專注於在當前基線的基礎上最大化利潤。我想說的是，從歷史上看，利潤率下降的原因與我們所採取的行動非常具體。第一，透過受歡迎的交易，我們出售了一些資產。我們在商家收單業務中承擔了收入分成，我們知道，當我們退出該交易時，這將帶來利潤或對利潤造成壓力，但這使我們與銀行建立了更廣泛的關係，與銀行建立了新的關係，並獲得了我們擺脫了銀行控股公司，這使我們能夠進行更多的併購。

We did Sinqia now, which is as we knew coming in at a slower contribution margin, because it doesn't have obviously the same scale that we necessarily have in Puerto Rico. And as we said, as we become more and more successful in Latin America, that will continue to put pressure on the margin. So I think that when we look at historically how we've gotten to where we are today, it hasn't been really operationally driven. It's been very specific and purposeful actions that we have taken. And now we're focused on margin optimization and efficiencies across the board, as Mac just mentioned. So our goal would be to certainly focus on margin going forward.

我們現在做了 Sinqia，據我們所知，它的貢獻率較慢，因為它的規模顯然與我們在波多黎各的規模不同。正如我們所說，隨著我們在拉丁美洲變得越來越成功，這將繼續對利潤率構成壓力。所以我認為，當我們回顧歷史是如何走到今天的時候，我們發現它並沒有真正受到營運驅動。我們採取的行動非常具體且有目的。正如 Mac 剛才提到的，現在我們全面關注利潤優化和效率。因此，我們的目標肯定是關注未來的利潤率。

Let me just add to that, John, is as Joaquin said, the margin declines, you've seen in the overall company, have been strategic decisions, right? The Popular deal and the Sinqia deal. If you look at -- so it hasn't been a lack of operational focus and leverage, it's been strategic decisions to continue to change and evolve the company. If you look at when we have bought other companies, like the PayGroup, like Place2Pay and we tuck those into LATAM. Over time, we do increase the margin as we operate it. But the margins, as Joaquin said, the step downs we've taken have been a strategy to continue to grow the company.

讓我補充一點，約翰，正如華金所說，你在整個公司中看到的利潤率下降是策略決策，對吧？大眾交易和 Sinqia 交易。如果你看一下——那麼這並不是缺乏營運重點和影響力，而是繼續改變和發展公司的策略決策。如果你看看我們什麼時候收購了其他公司，像是 PayGroup、Place2Pay，我們就把這些公司納入拉丁美洲。隨著時間的推移，我們在營運過程中確實會增加利潤。但正如華金所說，我們採取的利潤率下降是繼續發展公司的策略。

The next question comes from Vasu Govil with KBW.

下一個問題來自 KBW 的 Vasu Govil。

Mac, 2 quick ones for you on Sinqia first. I got your comments about the debt modernization and investment in the platform. Just wanted to understand if you think that's going to be a prerequisite for you to be able to take the pricing changes that you're hoping in that business? Or could pricing changes happen? I'm just trying to get a sense for whether pricing can be an upside driver relative to expectations for this year or is it more of a longer-term upside driver?

Mac，首先在 Sinqia 上為您提供 2 個快速的。我收到了您關於平台債務現代化和投資的評論。只是想了解您是否認為這將是您能夠接受您希望在該業務中進行的定價變化的先決條件？或者價格會改變嗎？我只是想了解定價是否可以成為相對於今年預期的上行驅動因素，或者它是否更像是長期的上行驅動因素？

And then a quick follow-up on that is just the tech spending and demand environment in Brazil from a macro perspective. If you could give us some color on that?

然後快速跟進的是從宏觀角度來看巴西的科技支出和需求環境。您能給我們一些說明嗎？

Vasu that's an incredibly insightful question. So we are deliberately going through all of the repricing, and we're looking at all of the contracts. I would say the combination. We have some immediate opportunities to reprice contracts, and we are -- some of the repricing could be predicated on some improvements that we need to make in investments. So -- but some of those investments we can make very, very quickly, and they're already in the plan for 2024. I mean what we're going to do around -- that's in the guide today is it impacts this year, but it will be both. This is something we can do immediately. Some will require investment. And some may require longer-term investments. So it's going to be a blend. But there is definitely an opportunity to increase the margins of the business and to do more with our customers as we make these investments.

Vasu，這是一個非常有洞察力的問題。因此，我們正在刻意進行所有重新定價，並且正在研究所有合約。我想說的是組合。我們有一些立即對合約重新定價的機會，而且我們確實——一些重新定價可能取決於我們需要在投資方面做出的一些改進。所以，但其中一些投資我們可以非常非常快地進行，它們已經在 2024 年的計劃中了。都會。這是我們可以立即做的事情。有些需要投資。有些可能需要長期投資。所以這將是一個混合體。但當我們進行這些投資時，肯定有機會增加業務利潤並為我們的客戶做更多的事情。

Technology spend in Brazil, I think was your second question. I mean, look, this is one of the most dynamic markets in the world as it relates to technology. I had met with the President of the Justice System. They're actually using artificial intelligence now to make judicial decisions. I mean to make case decisions, but with judicial oversight. Then you've got techs and open AI and what's going on in banking.

我想這是你的第二個問題。我的意思是，看，這是世界上最具活力的市場之一，因為它與技術有關。我會見了司法系統主席。他們現在實際上正在使用人工智慧來做出司法決定。我的意思是在司法監督下做出案件判決。然後你就有了技術和開放人工智慧以及銀行業正在發生的事情。

So there's so much change going on in financial services and such a need for financial institutions to keep up and with those changes, the technology providers like Sinqia are incredibly important to the market. And that I feel that and I hear that from our customers. They want us to be able to help keep up with them as the market changes and as they are putting new products in the market. So I think it's a great opportunity for EVERTEC and Sinqia.

因此，金融服務領域正在發生巨大的變化，金融機構需要跟上這些變化，像 Sinqia 這樣的科技供應商對市場來說非常重要。我感覺到了這一點，並且我從我們的客戶那裡聽到了這一點。他們希望我們能夠幫助他們跟上市場變化以及他們將新產品推向市場的步伐。所以我認為這對 EVERTEC 和 Sinqia 來說是一個很好的機會。

A quick one for you, Joaquin. Just I got the number, 27% transaction increase in ATH Móvil. Any color on what drove that trend? And anything onetime in that? Or do you expect that type of strength to continue?

華金，給你一個快速的。我剛剛得到的數字是，ATH Móvil 的交易量增加了 27%。有什麼顏色可以說明是什麼推動了這個趨勢嗎？還有什麼一次性的事嗎？或者您預計這種力量會持續下去嗎？

No. I mean, look, it's mostly ATH Móvil Business. What I would say is that, that actually has been consistent. I think what for us continues to be very positive, that's coming off of strong growth historically, right? So we -- this is on top of very good growth last year. Again, we did have some seasonality in the first quarter, because of the leap year and Easter kind of getting pushed into the first quarter. But the business continues to perform well, and it continues to drive some growth through the Payment Puerto Rico segment.

不，我的意思是，看，這主要是 ATH Móvil Business。我想說的是，這實際上是一致的。我認為對我們來說仍然非常積極的因素是歷史上的強勁成長，對吧？所以我們——這是在去年非常好的成長之上的。同樣，我們在第一季確實有一些季節性，因為閏年和復活節被推遲到第一季。但該業務繼續表現良好，並繼續透過波多黎各支付部門推動一些成長。

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。

Congratulations on the results. Mac, I wanted to go back to some of your prepared comments about the macro environment, which is so helpful in Puerto Rico, in particular, you referenced here that unemployment had a very low 5.7%, the employment rate, the highest since 2009 and travels up. I'm just wondering, I know it's hard to tell, but what's your confidence level that we wind up staying here? And is that macro tailwind embedded in the guidance?

祝賀結果。 Mac，我想回顧一下您準備好的有關宏觀環境的評論，這對波多黎各非常有幫助，特別是您在這裡提到失業率非常低，只有 5.7%，就業率是 2009 年以來的最高水平，向上移動。我只是想知道，我知道這很難說，但是您對我們最終留在這裡的信心有多大？宏觀順風是否已包含在指導中？

So look, given your specific guidance, Joaquin, I'll let you kind of talk about how you blend that in.

因此，華金，根據您的具體指導，我會讓您談談如何將其融入其中。

Jamie, yes, I mean, look, we actually -- this is consistent is what I would say to what we expected. And I think we're reiterating the fact that the macreconomic environment in Puerto Rico is supportive of what we're trying to accomplish from a growth perspective. If you look at the details that we actually provided last quarter where we even went further and put some incremental stats and graphs, I think that was the baseline, and we're really reiterating that we believe that we have a good background to deliver on the numbers that we have just guided to.

傑米，是的，我的意思是，看，我們實際上 - 這與我們的預期是一致的。我認為我們正在重申這樣一個事實，即波多黎各的宏觀經濟環境支持我們從成長的角度努力實現的目標。如果您查看我們上季度實際提供的詳細信息，我們甚至進一步提供了一些增量統計數據和圖表，我認為這是基線，我們確實重申，我們相信我們有良好的背景來實現我們剛剛指導的數字。

I mean the thing I would add is that there's a lot of ambiguity about what's going on with the economy today anyway, right? If you look at the current labor numbers in the U.S., what are people going to do with interest rates. It's hard to predict what next year is going to look like at the next year, depending on who you talk to. Keep in mind, Puerto Rico is a little bit different. So a big part of our economy are still federal subsidies for people that are on welfare. We still have money to come in from the hurricane.

我的意思是，我要補充的是，無論如何，今天的經濟狀況仍然存在著許多含糊之處，對嗎？如果你看看美國目前的勞動數據，人們會如何處理利率。很難預測明年會是什麼樣子，這取決於你和誰交談。請記住，波多黎各有點不同。因此，我們經濟的很大一部分仍然是聯邦對領取福利的人的補貼。我們還有錢從颶風中獲得。

So we do have an underlying sort of economic stimulus that's a little bit more sheltered than you might find in the U.S. But it is -- look, I mean we can't predict the Puerto Rico economy into '25 and '26 any more than people can in the U.S., but you do have some stimulus here that is unique and helpful.

因此，我們確實有一種潛在的經濟刺激措施，比你在美國發現的要更加受到保護。經濟一樣。

And then for my follow-up, Mac, I'm just curious now that you're 6 months in with Sinqia, and you're spending so much time in Brazil. And I realize Brazil is one of the most dynamic markets you said it earlier. But at a very high level, how does it feel to be like instead of the big fish in a small pond, normal fish in a big ocean?

對於我的後續行動，Mac，我只是很好奇你已經在 Sinqia 工作了 6 個月，而且你在巴西度過了這麼多時間。我意識到巴西是您之前所說的最具活力的市場之一。但在很高的層次上，如果不是小池塘裡的大魚，而是大海裡的普通魚，感覺如何？

It's a great question. So I mean, I would say on a personal level, I mean, look, I ran the Global Payments International business. I did business in China, did business in Russia and India. So I mean that's a dynamic that on a personal level, I've seen before and managed through. What I would tell you, though, and this is one of the reasons Sinqia was so attractive is it is one of the larger technology companies in Brazil. So Brazil is an incredibly exciting market. It's an incredibly evolving market. But the reason Sinqia such a great asset is because it is one of the larger technology companies. And that's why we had the confidence to move into Brazil with a specific purchase versus going in with a much smaller company that didn't have the credibility, they didn't have the leadership team and they didn't have the track record and the industrial strength products already proven.

這是一個很好的問題。所以我的意思是，我會說在個人層面上，我的意思是，看，我經營全球支付國際業務。我在中國做生意，在俄羅斯和印度做生意。所以我的意思是，在個人層面上，我以前見過並成功解決了這種動態。不過，我要告訴你的是，Sinqia 如此有吸引力的原因之一是它是巴西較大的科技公司之一。因此，巴西是一個令人難以置信的令人興奮的市場。這是一個不斷發展的市場。但 Sinqia 之所以擁有如此巨大的資產，是因為它是規模較大的科技公司之一。這就是為什麼我們有信心透過特定的採購進入巴西，而不是與一家小得多的公司合作，這些公司沒有信譽，沒有領導團隊，也沒有業績記錄和經驗。

So it is similar to me in EVERTEC and that people in Puerto Rico wanted to do business with EVERTEC because of our -- the products that we have, because of the presence we have, because of the commitment we have to the island. There's a similar affinity for Sinqia as well in Brazil. It does remind me a little bit of EVERTEC and that we need to focus on operational excellence and delivery in Brazil with our -- with Sinqia, but it is a very relevant player in the market.

所以這與我在 EVERTEC 的情況類似，波多黎各的人們希望與 EVERTEC 開展業務，因為我們擁有的產品，因為我們的存在，因為我們對這個島的承諾。巴西也對 Sinqia 有著類似的喜愛。它確實讓我想起了 EVERTEC，我們需要與 Sinqia 一起專注於巴西的卓越營運和交付，但它是市場上非常重要的參與者。

When I meet with executives and leaders and financial services, even bank, even CEOs of banks in other countries, they were aware who Sinqia is. They know the legacy and the history and they have an understanding of we're capable of. So there are some similarities of the strength of EVERTEC in Puerto Rico with the strength of Sinqia in Brazil.

當我會見高階主管、領導者和金融服務部門，甚至銀行，甚至其他國家銀行的執行長時，他們都知道 Sinqia 是誰。他們了解遺產和歷史，並且了解我們的能力。所以波多黎各的EVERTEC實力和巴西的Sinqia實力有些相似之處。

The next question comes from James Faucette with Morgan Stanley.

下一個問題來自摩根士丹利的詹姆斯·福賽特。

I'm asking a question on behalf of James Faucette. I was wondering how you're looking at capital allocation for 2024, 2025 and specifically, how you might be looking at timing or appetite for M&A now that the Sinqia deal has closed and you've started seeing those contributions coming in and kind of what that pipeline might look like?

我代表詹姆斯·福塞特問一個問題。我想知道您如何看待 2024 年、2025 年的資本配置，特別是，既然 Sinqia 交易已經結束，您已經開始看到這些捐款的流入，那麼您將如何考慮併購的時機或興趣該管道可能會是什麼樣子？

Yes. So look, specifically now with Sinqia, one thing to remember Sinqia being a highly acquisitive company, also had a very good M&A team locally. They are very close to the entrepreneurs, to open coming companies that have technology that's either adjacent or complementary to Sinqia. So we certainly want to continue to leverage that, that has been a key part of how Sinqia has grown to be what it is today. And so we certainly continue to have a pipeline.

是的。所以看看，特別是現在的 Sinqia，需要記住的一點是，Sinqia 是一家高度收購的公司，在當地也有一支非常優秀的併購團隊。他們與企業家關係非常密切，願意開設擁有與 Sinqia 相鄰或互補技術的公司。因此，我們當然希望繼續利用這一點，這是 Sinqia 成長為今天的樣子的關鍵部分。因此，我們當然會繼續擁有管道。

In terms of general priorities for capital allocation, we continue to look for growth. I'd say that the scale or the size of the deals that we're probably looking at are now more like what we used to do before Sinqia. So relatively small size that we can attach to Sinqia or some of our other countries or entities across Latin America. But we're certainly continuing to focus on growth. And after that, as we announced on the call, we entered into an ASR, $70 million ASR to make offer some of the shares that we issued as part of the Sinqia deal, but also to buy back some of our shares, as we usually do every year to offset some of the dilution coming from some of our long-term incentive plans.

就資本配置的整體優先事項而言，我們繼續尋求成長。我想說的是，我們現在可能正在考慮的交易的規模或規模更像是我們在 Sinqia 之前所做的那樣。規模相對較小，我們可以附屬於 Sinqia 或拉丁美洲的一些其他國家或實體。但我們肯定會繼續關注成長。之後，正如我們在電話會議上宣布的那樣，我們簽訂了 7000 萬美元的 ASR，以提供我們作為 Sinqia 交易的一部分發行的一些股票，同時也回購我們的一些股票，就像我們通常那樣每年都會這樣做，以抵消我們的一些長期激勵計劃帶來的一些稀釋。

So those are the priorities. And obviously, now with interest rates, we're obviously always looking at where is our debt, where our rates and whether it makes sense for us to pay down some debt and save some interest expense cost.

所以這些是優先事項。顯然，現在有了利率，我們顯然總是在關注我們的債務在哪裡，我們的利率在哪裡，以及我們償還一些債務並節省一些利息費用成本是否有意義。

Yes, I would say that -- I mean, the big thing is that's more expensive So that's now something you look at more than you would have looked at in the past, the potential to pay down. Like Joaquin said, we're still focused on M&A, more tuck-in deals like we used to do in the past, and we now have a bigger operation within which we can tuck those in. So we have a very healthy pipeline within Brazil and outside of Brazil and that's still a focus of the team.

是的，我想說的是——我的意思是，最重要的是它更貴，所以現在你比過去更專注的是支付潛力。正如華金所說，我們仍然專注於併購，更多像我們過去所做的那樣的交易，而且我們現在擁有更大的業務，我們可以將這些交易納入其中。管道在巴西以外的地區，這仍然是團隊的重點。

This concludes our question-and-answer session. I would like to turn the conference back over to Mac Schuessler for any closing remarks.

我們的問答環節到此結束。我想將會議轉回麥克舒斯勒（Mac Schuessler）發表閉幕詞。

I want to thank everybody for joining the call. Joaquin, I look forward to seeing you over the coming quarter at different conferences and events. And thanks, and have a good night.

我要感謝大家加入這通通話。 Joaquin，我期待在下個季度的不同會議和活動中見到您。謝謝，祝你有個美好的夜晚。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。