The Western Union Company (WU) 7 Feb 232022 Q4 Earnings call transcript

Good day, and welcome to the Western Union Fourth Quarter and Full Year 2022 Results Conference Call. All participants will be in a listen-only mode. After today’s presentation there will be an opportunity to ask questions. Please note this event is being recorded.

I would now like to turn the conference over to Brad Windbigler, Head of Treasury and Investor Relations.

ahead. go please Brad,

this today's and results, will XXXX, our take call. the slides we On found can fourth westernunion.com remain at and the available quarter will under accompany The questions. XXXX financial Relations your and call, you. webcast discuss be tab we Investor company's then call will Thank outlook the for after

language McGranahan; press and provided cautionary factors cause forward- actual include release. have Commission, to CFO, earnings Exchange and including Western in operational the been in our supplemental materially CEO, looking results with recorded, is statistics XXXX statements. Today's to Devin our that On forward-looking Union's could Cagwin. differ our for and our from concerning filings call in Form the the Matt refer being information and the call with today Additional tables Securities statements. is Please comments XX-K release additional our

will that discuss During the some conform call, do to accepted principles. items we accounting generally not

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call the turn our now McGranahan. to will I Devin CEO, over

financial welcome Union's and to Good afternoon, call. fourth results quarter Western XXXX conference

Our contributions $X.X was from in on reported excluding constant revenue currency basis. the billion, Business X% and fourth quarter a Solutions, decreased

negative Russia a X digital the as our percentage includes strategy, branded of promotional reflects well impact continued and business Belarus pricing. marketing in growth softness of new This our points as operations retail from suspension which in

Russia count. impact in adjusted share $X.XX Business the a by was prior operations offset from and quarter the a Solutions Adjusted in $X.XX and and year $X.XX contribution higher $X.XX currency $X.XX negative earnings lower included per operating in Belarus. was with share by period, from which lower tax lower effective profit partially of and compared in a rate, The driven decrease EPS

the $XXX maximizing XXXX our buyback In the flow capital our of over including shareholders, cash to an and financial on on financial to continue to discuss and detail fourth our outlook. will in returning more update results shareholders. share returned million further we million XXXX, focus We provide Matt on quarter. in $XXX

the to is for rising the the in per at point interest fourth in quarter currency principal to a and XXXX multiple year. macro backdrop, inflation On businesses global show over in front, with full resilience with year highest decade X% many that constant their challenging customers decades. the continued and the up rates our Despite a levels transaction highest

their updated XXXX. The from They week. IMF XXXX, global will down which in growth growth forecast X.X% in now be last GDP expect of X.X%

closely We have to with global GDP remittance tracks believe come that growth. volume

recent World most As to migration low remittance X% to remain development to published volume which that and such, and global November. the countries in growth strong, income Bank's was a further at 'XX according project X% remittance They the flows grew in middle estimated in and XXXX. brief, continues global

for backdrop that XXXX macroeconomic expectation XXXX, the what outlook. have in monitor similar we could variables have experienced but influence we business, is will these XXXX to our continue our that our in included remain assumptions We to and

this populations market world. around XXXX launch becoming launched providing retail services businesses to of million by revitalize strategy aspiring digital to return and leader Western products services growth to have the world. goal, Evolve financial the our we October, proposition value in Union the new accessible customers achieve expand Last to the remittance in working been plus to our core we to XXX To and our

core investments new We half technology achieved in the with platforms in These digital accelerate year. to agent in to back enable focused of investment In our our technology and on increased better marketing. August, we outlined world-class goal customer our experiences. building and this plan the investment are

growth. retention As Western customer yesterday, driver is of positive to Union highlighted returning improving important an we

experiences We after. first to and are with world-class laser-focused to creating will us make channels easier want time it time across on transact every our and the that for customers products

our investment fourth we'll to we on were and I While experiences. innovate comparable of the of that customer basis, levels order quarter heavier compete step recognized than competitors, we ongoing with need every many iterate to continue an customer in want the expect would journey. in digital-first to And our

investments of of goal wallet-based February XXXX, in platform. First, examples digital notable Romania digital include: few payment with Germany quarter we and our of bank, fourth bank creating a in in a in A launched the the digital

frequent evolve to retention. relationship As customer we increased account-based engagement relationship, to transaction-based we interactions our more customer and through improve model an from ultimately expect see a

We with digital experimenting ending account-based send-and-receive we services. will with pairs, approach an can our platform expansion for By country better added the Poland, and maximize QX, model offering expanded are our bank also a how provide of we products network. we and benefits in the believe QX, Italy. us this of In new X-sided to

launched, we total progressing. project have the The And of we approximately a is XXX,XXX have now countries onboarded customers.

enable States, for X expand countries the the world; in digital to United market launches and financial well to the Latin wallet outside XXXX Brazil, remittance digital to a as largest European first additional is end number X of America. the launch And in quarter, of in our economy made investments Europe, largest markets. and including as our the ecosystem we Our our fourth us in wallet to additional goal

POS and the change In of the the system. this also we our experience business. addition began We both customer pilot trajectory a in help of the U.S. POS locations December. to the new point-of- continued believe agent select sale quarter, and in bank, retail improve development retail of our will in new in our still will digital We new

better and ultimately only for that And rates abandonment customers. more friction a experience but not believe our from allow partners improve creating process transaction agents retail agent will serve we our removing to will both our transaction customers, our

the strategy added could in programs made dollars additional continue increased worldwide. in in United a we behind strategy quarter invest rolled the the and customer also marketing investment new We we learn. that similar acquisition our to fourth States decision U.S., the in the our program in we so in by digital to driven Finally, as and scale test markets few program strategic European out the go-to-market

As we to at our positive returning digital our and is Day, growth business discussed Investor top transaction priority. customer

transaction, customer customer We our are and revenue growing value. approach maximizing for per maximizing shifting lifetime acquisition

dollar. rethink is last tell to has quarter our that you you we change to to XX% pleased am customer us offers top-of-funnel month marketing customers We U.S. to This reported branded maximizing of new in digital our new approach September. every required effectiveness I to on it working. outbound year-over-year believe increased and approach the

report now improvement to we through fourth transaction as contributing momentum September quarter Today, an that, that XX% the trends I year-over-year, saw new to U.S. with which up continued customers am in in digital is outbound pleased well. branded our

In trends growth quarter saw we seen QX, fourth in a grow business we've in U.S. rate X%, reversal outbound of the earlier the transactions digital decelerating at since the the clear of transaction fastest the XXXX. and branded year

experiences increasing lever transaction the near and is and important, In send and are ongoing increasing increasing the starting lifetime our efforts, simplifying value. repeat Growing is CRM term, our retention so see customers focus. improvements. we By customer but is to

years we acquired look going for our XX-day rate ever retention comparison, only several that customers than fourth for retaining are we've at U.S. we outbound cohort is highest past. rates we quarter if example, case at cohort, branded September now higher back a newly those outbound acquiring the seen. the customers, a U.S. the for digital rate As retention have Not are more but we in

definitively as of it clearly value full While the retention typically customers around rate. XX% results ultimate what the year too is of retention promise say new lifetime captured early these the Early show be. is will in to XX-day value

new transaction what rates are even lower we are these and growth revenue customers transaction. accretive Given new this clearly seeing we value a believe cohort, at retention with per among

The locations discuss partners. America example I'd fourth which the to great distribution we is that in where America, to with our agent Latin in owned both conjunction growth are Latin double-digit seeing quarter. improving continued revenue of our are success the with a has perform via last in we topic is like

second of Argentina, XX new over locations only accounted retail Brazil, As footprint, over locations in X% our locations we while the Brazil. owned Peru the quarter corporate-owned revenue in XX% in America, we Latin opened call, XXXX, new our on corporate- that for of discussed in In country. including and

adoption results. Given like up mix right In QX, Latin we have offer, we distribution and the cross-border increasing control growth the cross-border and locations XX% exclusive the digital and active assist corporate-owned us users our increase ecosystem. Western seeing high-volume services to with promote financial Union products allows are saw better in customer of number digital stores of LACA the wallet concept footprint branded our with XX%. eventual customer escalator, of new experience, in the Marginally retail monthly America, and we to our of

these are add economics Importantly, and able we kinds low above generate of operating corporate average attractive oftentimes with locations to capital at margins.

concept agent to areas expand high-density continuing network in and goal footprint. broad our is Our and concentrate stores while the to valuable corporate-owned and of extremely maintain

our Latin region we expand Given to America, model into XX locations of of the controlled for corporate-owned this open seen parts XXXX distribution another success in our also have the plan and is in other network.

Union, store in stores across Central that now stores the opened that and Europe highlighted train branded the a new a have update, X station. in XX she opening live, in Italy this location Madrid is we quick Western partner Day, we new Melody, concept region XXXX, Investor week. In corporate-owned at new includes Rome in our will that X

across together the She to serve community better enabling us are Europe. and we Filipino

detail, I partnerships. I Matt results call discuss few key turn our financial to to to like the in over Before would highlight a more

offering of we announce Mexico pleased at remittance across over the locations signing one remittance the forward of the X,XXX,XXX inbound in across world. to look we markets X-Eleven services First, And stores largest our country. is to are Mexico. the

with a and Next, Union. Aid, new stores X-year a in partnership. leading the retail we exclusive Western of long-term of the valuable partner announce Aid of signing are and extension United long-term Rite relationship the consumer one our is States the Rite to pleased

Unit served since pleased was in July Union. I'm of Chief year and us the Business as Planning Officer Western Matt of Head and announce interim to Cagwin Analysis very Finally, September. joined that of appointed CFO Financial the Matt as Financial last the

Matt brings role, division Fiserv Data. the Merchant the of serving as most a of CFO of wealth the Acceptance to First recently experience

turn your time, now for the and you call will Thank to Matt. over I

for Devin. Thank found release to financial you, pleased outlook. year our and and XXXX through And schedules. everyone. I'm our be to full press quarter today Information results in you walk financial our the be results here with the good afternoon, fourth can attached

financial year full a the were line although start the what results in potential. be and outlook, with long-term Ukraine, macroeconomic increase the uncertainty year interest conflict and Russia expectations rates was between quarter our adjusted our our global to XXXX in of Overall, Fourth believe well inflation, the high rising slowing economy. with given below XXXX we and challenging

which announced QX. the of the X first migration European agents, retail key We effect took also in of that

While the XXXX building for XXXX, direction in we confident are right headwinds the continue we continue as our that move Evolve needle lay the will we strategy. into can to

We'll in shortly. more go XXXX our through outlook detail

in $X.X Before impacted results. Fourth our by I X% revenue the revenue that, operations of to Belarus quarter The the move was suspension billion. let's quarter fourth into do X%. down adjusted Russia,

agent, a basis positively the compared loss was the by the was quarter and a impact last XX.X% by pricing impacted XX.X% operating partially negatively and of of was growth dynamics, impacted the last year. to offset which which XX benefit of net Business our points quarter in from margin including included and Adjusted number inflation. of other X% from inclusion the of QX European revenue the activities, a in by Argentina X% year, Solutions promotional

XX.X%, was range our midpoint landing our of margin the outlook. operating in year Full of

new XXXX go-to-market scaling Devin digital our design new the branded our and earlier, system. highlighted strategy, our implementation, of in of the financial the supporting the As and build strategy accelerated including of point-of-sale quarter, we investment our ecosystem, Evolve expansion

quarter XX.X% discrete period. our brand strategy new margin technology in the by benefits due investments. was The was the in year year well rate of period. adjusted quarter prior to as operating rate revenue, increase the increase XX.X% in The adjusted in rollout decrease tax was the effective in prior fourth lower The driven effective tax primarily as to in compared digital tax the

higher $X.XX Now which currency, share effective decrease quarter tax $X.XX year negative moving to in was a prior the EPS, by of a impact driven by lower compared offset on to $X.XX in EPS period. adjusted profits, lower was the rate, adjusted primarily The count. operating in partially

Solutions $X.XX Belarus operations in the $X.XX, Russia, Business contributed Additionally, and and respectively. period, in prior year

and X% constant CXC related currency Revenue XX% go-to-market activities softness Transactions turning strategy. our declined to by to in CXC new basis, segment on decreased our our driven digital And branded in segment. now in quarter. promotional business retail a the our

transactions revenue a transactions third business, Belarus new and percentage points, by you X on our contrast, which grew impacted branded constant X% by the X negatively look points basis. In Russia, our in U.S. launched respectively. percentage at X% during revenue declined was currency digital go-to-market strategy, When the quarter. and

digital in in the our reversed drove grew quarter new global a for transaction in decelerating a business digital customers U.S. of have strategy quarter, that outbound Earlier, branded growth branded and the the Devin spoke XX%. number new XX% customers fourth about a we And trend seen approximately how quarters. in

the America the transactions continued declined U.S. domestic on X% to In a to The results. moving North be quarter, Russia to outbound business results. the while business and Now on fourth drag decrease X%. regional to continued U.S. our

While revenue adversely also in affected by earlier. as promotional price from the activity the X% quarter, discussed was

branded momentum point our the improvement XXX in America believe U.S. were we right business, which in new moving QX, percentage X point We point outbound is saw continued that transaction growth a a was saw customers. that North digital we versus proof digital strategy We by in pleased into which is direction. another us the basis brand our

and declines by currency of and Russia points. loss was transactions revenue region the Europe and in by X adversely to on a transaction XX%. face basis of competitive constant during difficult the macro down Revenue with agent by pressures The region quarter. adjusted CIS was Belarus percentage points impacted XX XX% key a percentage impacted continues retail and backdrop,

East, in the excluding constant [indiscernible] with South a while revenue of improved transactions year, half currency basis, the trends of and in Middle the Africa, versus first the impact Belarus. Asia Even Revenue region, Russia quarter loss, fourth the agent the X%. decreased on

and currency in was growth of in Softness in on basis digital by America the our offset businesses and label in accelerated regions a digital-right Caribbean partially growth growth with and X%. Revenue up constant quarter branded retail Latin XX% were business. transaction

softness constant was basis, in was strength XX% The Nicaragua. XX% solid finally, on down Australia, Ecuador, And Korea. in due and transaction of by APAC with Venezuela performance Japan the quarter and led in a region revenue currency declines in to

which in primarily United revenue payments U.S., and basis. a revenue, year-over- of consist bill other on to total reported Argentina XX% the in of and turning Now the represents retail and States the retail company grew order X% money year which

the quarter, Kingdom fourth divestiture, second completed the solution the the of closing closing we During transferring United of business operations.

to quarter European third operations, in the currently subject to is The which second expected the includes occur of XXXX, regulatory closing, approvals.

we've As the reminder, full the from a already proceeds received sale.

million payment will we X Now generated operating In Act turning of a U.S. XXXX, transition over tax the balance included $XX increase transition second quarter. flow from XXXX These and to sheet. tax Tax $XXX resulted which in paid after flow, and payments annually next XXXX. years cash of stop cash and million the

XX, we $XXX approved shareholders XXXX, quarterly XXXX. announced through shareholders. payable a continuing of to track Directors dividend also return share to of combination on capital March strong Board returned dividends In we a repurchases, and to record our that our Today, $X.XXX our million

debt $XXX a down ago. equivalents we have from million of million We signing end in software down $X.X with to which at roughly shifting and X% also the billion went were development. cash were of $X.X XXXX, XXXX, agent up down the from a cash our more bonuses versus -- capital which expenditures, and And billion, was year of mix finally, $XXX which quarter,

ratio With our potential we basis, supports X.X now rating. for X.X investment-grade and and sheet times our on at balance provides position strong a times net leverage sitting M&A flexibility to maintain target which our credit while us

base, to omnichannel our financial optimize ecosystem funding and our And part to us digital of This deployment allowed point-of-sale our in experience. out an platform, enhancing program building as invested initiatives increase transaction then and creating our strategic digital program like we various ongoing system, operating approximately creating wallet, in XXXX, $XX expense new our expense finally, integrated our million. our

making reallocating to look providing progresses. additional forward progress already updates year in are We good I as the and expenses XXXX, on

XXXX Today, financial Now reaffirmed moving to our outlook the outlook. XXXX adjusted we provided at our we Day. Investor

Our outlook assumes changes conditions, in major in no changes including macroeconomic currency. foreign

revenue adjusted expect We X%. X% be down to to

the face QX XXXX agents X earlier, will in I European and Russia, of Belarus throughout As year. mentioned from the loss headwinds

the our to the cost margins our as We related XXXX, XX% and to Russia expect below half continue investments, to of product the to expect approximately margin In year lapping we of of operating the impact we XX%. expense and in range be make first to adjusted range Belarus. efficiency full program redeployment be

finally, be Expected of Belarus EPS decrease sale year-over-year range currency to adjusted impacts. includes Russian agent and of in $X.XX $X.XX expected adjusted and the losses, EPS Business And to is Solutions, related in the to $X.XX.

Lastly, key provide Day. we we to on we improved our that would talked like retail Investor X basis year-over-year. XXXX, at points In about indicators update an by retention performance XX

improvements by by points this Our improvements, to our experience. in improve and is basis and goal agent annually, metric driven customer XXX technology

is Our branded digit. digital double second new to our customers by performance grow goal

pleased to in growth success new the report the achieved a digital new strategy, branded Given our quarter. of fourth that go-to-market I'm XX% customer we've

in is customer be need our journey we meaningfully growth. line as was omnichannel improvements improve to XX% KPI our we metric to loyalty believe in This and assumptions we'll customer third able XXXX, omnichannel Our customer year-over- year a before flat programs with growth. make to our

ecosystem. we talked was about at center our last the And finally, Day Investor

months. possible a will goal with over the bases States, United the on large to of a Brazil, believe We countries consumer in ecosystem look digital of in XX,XXX the customers month our Our coming the forward quarters. we be wallet launching average rollout longer-term X our added and past month those like XXX,XXX

last sustainable financial strategy, long-term growth. recap, full outlook aims us To our toward year, adjusted path on Evolve put to year we XXXX which and launched delivered our a

our far, investments we strategy, So accelerating providing updates progress on we've to including our the more made forward laying continue and as look good foundation of journey.

joining questions. And to we're Thank call ready today. for take our operator, now you

[Operator Instructions] Please from JPMorgan. Our your question Tien-Tsin from question. Huang first comes ask

all I appreciate you going here. the through guys detail

thought that I the acceleration, So was really interesting. LACA

but and attribution countries, X what or the tracking that terms done the and on other to applicable maybe noted here? whether acceleration create not in of You you've a to of is region some there way or elaborate is to should some that be we sustainable that

today. thank is Tien-Tsin, our calling example LACA a how when comes be of can together, you successful. in great for it strategy

the X there so highlighted, our as elements distribution have is, we I in our are places investment and the that optimizing retail to high-quality One in network making And right LACA. going sure customers. serve in in on

of go are in many The starting Brazil, see, positioned And of second, particularly Argentina, that's well we digital. those is the Panama. of the rest can happened LACA world as you in countries, evolution the to in much

very seen digital strong we've growth. so And

paying The third we is awareness we effectiveness is have invested and those LACA, in our we've marketing markets, a which brand strong have dividends. operating model in increasing and in dollars the

detail more quarters. you Matt specific bit can countries give or a on

we're high highlighted look digit, you about X digital region across driving Tien-Tsin, digit triple before, business, standpoint. think retail most growth that growth of as just are very low seeing solid it. in Devin large you just at those double seeing But ones it, as from we're when and the the are our

say, will again, returns in quite saw and its believe performance XXXX. XXXX we we think strong LACA, early show as I would I sustainable in

answer there complete to the it stood appreciate definitely out I us.

if here. follow-up, the mind, you compress don't Matt, the you over CFO on So you, my take maybe for on quick

you it make with Just going to on full I would investments caught correctly whatnot. banks, year I sure the think standpoint. half, I a additional there's I first on that a be below and lot modelling range. mentioned know of want just from

just if So caught wonder I that correctly. we

Absolutely, you did.

half a to the then as and watermark, to for So to progresses. year QX just We'd the full year the XX%. progress here range year as that into guidance expect be XX% the low of the I our below our would close and reiterate in was but view first up the range -- for

comes Research. Our us to your Peller question next from Please ask Darrin question. Wolfe from

And direction you seeing we're on was to the customer guess The quarter. last the I the talk to in if very maybe U.S. can trend quarter right continued move it just into a specifically of picture in the digital there? acquisition, working what's in obviously bigger revisit from this strategy strong. outbound, way,

And when yield. touch you'd marketing us see transactions? that I into up. What there's pricing and on Maybe know around been lag all the then obviously to timing cash and kind effect initiatives just the of that expect impact turning goes that

be And XX so looking trends to digital what forward in kind months? again of should in we

Yes.

So you. Darren, it's call. the joining hear to for Thanks great

and about in program. first, starting We launched bit little where that are to we're see now the excited the we muted other did places we've in the more work in U.S. a although the results similar, world

The fundamental levers. X program has

market the with segment new reflects in being making highlighted, that you sure reality. as customer competitive market new and offers again and and being customer First, pricing competitive

marketing dollars are second The getting marketing our the in return and to highest mix that getting the dollar. funnel we for each creating downloaded sure making right, is funnel the efficacy, optimize

experience Finally, as for as as we new onboarding rates through and customer to Union. KYC increasing few conversion ability new is people's targeting process and our customers optimizing which are the possible, to steps with get Western

world you see, these depending growth where cohorts position, we believe on transaction new and revenue as seen. about different are a the our effect so adding reach strongest from when results that growth Those we the Matt of can we will through we're use far result as we it, around we U.S. although strong the mixes launching are talk seeing little is that can a work X market more we customers. the lapping on bit expect, way everywhere we've elements and

so is potential long-term high. the investment this And for

thanks Darrin, you, for question. the Thank Devin. Yes. And

previously, think We I basis. talked about on the we QX, U.S. about it's think launched really, of middle and a As launched we -- cohort you

digital in starting from obviously for for the growth now X the world. in see great row, You've And highlighted results highlighted quarters space whole customer new a there. to the we're overall

As of think vary growth think you producing quarter within positive revenue this that a standpoint, standpoint expect it. from about region. it cohort in a does by you as It about would to we start couple year

Our teams ways working max very we're at maximize are looking of feverishly on to also the by to looking other customers. number but it,

it I the as So view within positive year.

Great to hear.

very -- I a Just it probably performed the only other I'm follow-up. better. but it's is this, mean, one probably like and quick going segment to looked about ask CXB the

Just moving is Can that the sustainable? -- of I just that was you know on an some the parts. update there quickly strength what

that a reminder, but I in as up quarter, results order our of money X Argentina business well our and area largely Darrin, before, in it things. here quite of the didn't made business as the is biller U.S. just Last U.S. note muted was because

Argentina in take One experiencing well last as quarter portfolio -- down a rebalanced headwinds current we're our money business, we to of the rebalanced into that investment we part we is had wear our business that up currency that some market conditions. as large rolls of we advantage have that

future foreseeable it expect business be the in this a the good would We portfolio. as investment now have the a our of large Those rest of are a back us pretty also investment from for well is a and for year. has the And then strong bit. a the as reverted rebalancing -- currency we result underlying to tailwind side pretty pickup on

Evercore. question Our next to from Togut Instructions] question. comes ask your us Please from David [Operator

about perhaps previously, those the, on the and of Belarus go-forward and region appreciate largest in and really the for large Europe mid-XXXX, in CIS, dynamics the You're think I which a outside U.S. we you? of such say, transaction the out Russia revenue you've a headwinds. loss look agents what If talked some call-out and on normalize besides strip about basis, XXXX, international large the and Europe early does European CIS like

pick let you. have Thank And me Matt on great So David, the let I'll call. up. start, you to

We have landscape Europe. in a varying

there. strong of And to so we have go the strong strong out and like if have a Spain brand. where at a look performance we because loco of you country very corridors Spain, Mainly market

at Africa year. results pressure and migratory look to you entire Central the If competitive almost from been for Europe that's forces under

country of on by So a variability in of and kind high basis, degree have quarter-by-quarter Europe. country we a

large of Russia, If you of kind strip impact I flattish believe X out of trajectories. Belarus, agents, and overall approaching transaction eventually the we're those impact losing

As the by Matt year revenue strength neutrality, beginning growth of highly of region. segment. the and half to and back growth by and said, of variable But in returning and competitive of the transactions country the size it's again, the nature the the given corridor

I don't know if you want to

couple including improvement build quarter, of year. of first and versus to XX% can Just you Belarus, growth, overall point get on I hundred of our think Russia, That's last half mean, out has But it's a the basis I is X% what transaction about. talked from numbers Devin these quarter. there. the down improvement this an

That's half can first strip losing the starting due making how an have Russia, you that's Belarus, half trend direction, about right the out to worse lost core about because agent improvement in QX. XXX we on the with When is got in but was itself, the it towards meaningful about agent. think business lost headwind you this the we by agent of the it decline here basis quarter points to our quarter-over-quarter, actually and pretty

as a agent? you loss just And the European second of do the follow-up, anniversary fully when

The is the year. second next of middle in agent

middle in to until of middle isn't agent The of the this the going loss is anniversary of happen Yes, 'XX. year, sometime. it

comes question Ramsey us from Barclays. next El-Assal to Our question. from Please ask your

at longer-term the just retail be whether as about deal of we I of should question distribution locations we the beginning so, maybe out and great efforts your guess more owned a there direct of when majority is wanted more sort sort a concept some I expect to you X point, to shift distribution model. the ask there you of or the to think direct distribution? years look of even should the a

of peer say are no. we The and it a is So at of efficacy I looking would way control. kind

Union So pyramid, at of in And and managed are Western market, just the given top be locations. the the a a handful. very there'll owned

got like XX this We we to The add kind if which particularly So much a of be and maybe aging couple the independent. at to a market branded notion hundred next call markets partner, time. or exclusive In an is where over we region XXX of we're hundred lot. a LACA, Europe, more in is in a stores. like that's more Europe, going with couple we'll Argentina, between concept and we're of of seek

we our -- have Melody model, exclusive model, it I'll that historic agents, a help desire losses on and branded highlighted the large some agents those to call that and expand I as exclusive basis. highlighted out We with build a

partners. many Underneath still large We Aid have post-office several And the relationships our Rite we nonexclusive have that, are in independent I have then times under exclusive. our privileged that, renewal. very highlighted world, around which branded general agent, we the large strategic and networks.

location very to to entirely and customer So base in we every and location. manage have and every Union nature the on Union customer that very continue we in how of us products depends for potential control to we for in the sure strategic want locations and Western high-volume to access owned make Western those services pyramid the that

nature to distribution that model But we're the be economics interpret our not I and and/or mix distribution model. the of shifting our both would somehow fundamental of

of over is, and for your how is about please digital us. margin I'm about me. talking terms for time thinking there's worthwhile being revenue if that profile But If enlighten you there and/or how of that do there a monetization profit? monetization think contributor evolving today. not revenue a in is talk sure kind wallet the the follow-up about Can One you strategy

the ecosystem is retention. So case on development on entirely based delivery of in the increases the and business wallet-based

retention interactive increase to ability Our through account-based is the the for experience more platform. the a and justification in investment

the a from digital for And the comes expect that's currency. the to core from comes footprint different of multicurrency value benefit wallet from ability our and foreign the to or experience. over just the of wallet of Incrementally, that platform. linking retail debit and bill prepaid that aspects international our time, to from mostly a to from digital around ecosystem the who digital business interchange bring hold people the that issuing to want of digital and services digital accelerating money buy some value into cards, exchange of today payment kinds economics value see transfer we

So greater revenue as we incremental enroll digital our or over model. develop an in time do streams a we account-based will that see wallet-based of percentage customers

thing a million just reminder, add, about in this, is of largest $XX driver which million us. is the $XX I'd to our benefit The retention, to X% improvement only

your Rayna question question. next us UBS. Kumar Our ask to Please comes from from

role. the Matt, CFO Congratulations, on

Just a either cash pricing seeing business? pricing. other expecting your actions have you your -- you on to are to or cash to question Are any digital in this year,

any strategy, your the implemented promotional since seen pricing you have you've And changes landscape? competitive in

prices. to we continue our optimize Rayna, So

we cases, in know, As in corridor, we you of day. some basis time and well XX,XXX the compete corridors, price geography, of even customer and on segment

in continue real intend adjust to So world. our that pricing and around and almost a the is model, time accordingly very dynamic we'll to we

optimizing expect to can see interesting. continue business. drive was us our you It So to to pricing

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shareholders digital this return long-term growth. we growth, strategy is transaction Union business revenue ultimately, that So customer and value and growth can Western our remain that convinced drive for a will creation to

you understand this margin the guidance of can that low XX% end, then just what operating end to high to get happen of XX%? to needs help versus year your your And us

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Bryan your Our Bank. next from Keane us Deutsche comes Please ask from to question. question

currency talk I line just X% understand, we're make I want you principal the sure slide, talking you when Devin, want this in CXC sure Bank, World the to I understand to just are grew think then transaction growing that year. we X%. about and X% make on growing I with about market? on the I last year this constant And then

share you share where -- are right Or versus we the to want market about gains, now and think be? you how do losses

of clear a think have we the some I it's significant quite are shared growth and overall been time. donor that period for given market

have the of has growth much said outsized at of I been Western the from our As competitors expense publicly, Union.

share, quarter, some stem the in strategy non-share of our would marketing the be point branding. at in new no share downloads are that's which longer the North competitors, fourth business to donating digital look both and you donor, I app aspire significant that As seeing if we not platform, in America, as that are gains revitalize in a we a anticipate retail our market. only reinvest we but share least proof saw we of in our share future. to but and app donation we at -- our in We point be evidence our winner, the go-to-market retail approach to in downloads believe that our with We to

pretty steadiness just X%, the just I to sure it's want make of point got the it per the at darn consistent that's transaction market? the And I been on principal

consequences The been the corridors some some increased high in seeing across seeing X% of by customers It that has quarters our inflation. experience greater, and some while geography benefited by less. footprint. That entire we're and larger are suffering our have has of net where corridor our wages transactions been varies from obviously

net headwinds to economic moderate the significant business in face is of the -- fairly take But resilient is us the for around the world.

My follow up.

comes Just coming make rate thinking is thinking digital once to turn. at guys growth come normalize branded that we or we growth that once year two that positive you

aspiration I will you is. what tell our

get high diversity the reliably double we single in of back and digit growth to enable us given our important business, a of the will world. most which outgrow believe digit, to market in digital be is winner and our market the aspiration our places low markets to Our revenue scale the of

question Andrew next us Our Schmidt from to from Citi. comes

us Our question. Suisse. next Chris Credit ask question Please your comes from Zhong to from

Zhong Chris is at Credit This Suisse.

mentioned, the one very growth we've been that X to transaction basis. related produce going and up X definitely year critical currency first the X strong prior to So year year constant

seeing project revenue I'll for probably where this to wanted in XXXX, outlook. one. there's a But the And on XXXX? guide [Indiscernible] macro global next the Or And with little zoom growth principal in have? the up you called holding up underlying in one. the bit out any the the on follow assumption is first transaction direction are

there's Matt. is guidance. lots in There's customer this moving parts our Chris, principal, of new The price, acquisition. there's

we confident this as obtain outlook So gave going as our on Day. are year well topics overall out we our micro we call comment within can to on But that today this Investor I'm not guidance.

per or we're mainly medium-term transaction pricing one they you for progress. some source the the think retention. of It's previously achieve days reduction And your out in just to basis in I outlook, factors early customer And have due called increasing attrition points XX up and your in seeing the to the interaction. attrition time of

that some on is be towards retention just intentionally, if to be different share factor going less well? probably shift And as pricing going coming your sources, can It's transactions to a of the how maybe but Is noticeably. much incrementally thoughts digital? from also of the you

retention in year embedded out strategy. the the of half calling second really started Chris. Evolve today. the as in XXXX So a rolled couple Thanks of things for we in there, The on focus

So we on points year. and aspiration believe by get that our by the focusing ultimately can basis continued we to were that encouraged XXX focus retention long-term results a it retention by got of a us improving

in work the some and large agents doing, of our remember, complicated point-of-sale the increasing strategic of those, call systems, on multiple X.X, rates. we one And Secondly, improvement for half WUPOS of hundreds of of saw been points of generations which efficiency. have that applications transactional including transaction basis ecosystem a been in the gateway have second we working in completion year, we've hard we of

the part in increased is many move rates program. to And the our of something entire the one 'XXs improvements from of that can us retention incremental transaction so And completion that than help something as number. ecosystem to increase overall put initiatives that's drive the in example across it retention place in we've and of XXs just the

comes to from Goldman question. your question next Will Our from Nance ask us Sachs. Please

can Guys, me? hear you

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Ken? it Will. It's is Or

Will, go ahead.

second to Sorry follow of of on issues. I'm just moving bridge technical kind about and first wondering on half. the question if some of margins I earlier kind the half second wanted that, half you up to talk the Tien-Tsin's first through versus operating half. could pieces

specifically year contemplating. some in drive off dropping guess, do investments half investments in pricing that embedded are to the know you what sort operating guys have The you back types of leverage guidance? quarter. I But Obviously, fourth of the in I made the the of to you visibility investment

just completion we it's what about It's of Matt. Will, of some for initiatives. really QX consistent talked the with those here,

to in on continuing roll our of countries. number very ecosystem a wallet focused So we're or different out

quickly Brazil in As up Devin we've couple part, coming highlighted more the within got Europe. a and earlier payers the U.S.

So go products live we've well. putting We're which got additional there. investment some this ecosystem, year as look investment of a fair bit to prepaid, we also into our things have like with that go

at it's of working in half So the and we're things first wrapping this year up the really side on things that year-end. that of started we nature

U.S. I to of trended of the the wake see talk traction you some -- do costs outbound a of could course to value the And about the of customer in trending customers. pricing? branded the talked was on lifetime adjustments how see your over those of great you lot increasing wondering to you approach if year? How digital And sort the customer. these and kind

launched we're getting So we're that equation customer dollars, important, really that as we are hard program high of with in lifetime marketing our is working getting sure and acquisition on making And U.S. return value. customer is talked all the right costs the us for of balance to which about, part we I've

of the paid say, search. we marketing highlighted effectively media, dollars than found us in like And that test of social and we which like applications have return dollars better was things dollars. to of is we learn previously, what this where increased quarter, fourth a approach in spend part application to for When kind I to apply can have

new So effectively customers we pricing CAC more value. we as to us enable manage a the to are honing market to for competitive the model lifetime apply out roll to dollars then

and our the new to making real with And can lead we believe execute think to results continue we will the branded revenue business. globally, growth align in We're phase. drive learning XXXX, in customer progress, and which growth, still how transaction that seeing we're growth and so we're I digital digital throughout ultimately

next Ken from comes question Please your to question. Our Suchoski us from Autonomous. ask

and usage on what to on promotional follow you're that the seeing I transaction on then Could that normal transaction. your that discount first and terms second you get back customers more pricing to third is programs? the up attract in about around want talk and I of discussion. just think with last repeat goal transactions

third So you that transaction or would of second, that great. comments in seeing terms willingness transactions? on fourth sensitivity from or their customers later what rates be retention price do those And are any about even to

for you. great joining to call. the thanks Ken, always It's have

new on we free. the highlighted, I many the new transaction transaction in performance And customer offers, indexed very, are from is repeat very customer As offer right? first cases,

for make return. a And first that cautious free we customer that transaction so we are are quite sure not doesn't to offering a

In to the we to highlighted launched what pattern this usage, September the program. So previously allows measure transaction, consider on remarks, then a which then is third the create us repeat highly and retention. I ongoing which we focused since of discussed second aged we which most are cohort, be

we it first growth. about time talked mid-XX% had the publicly, where And new customer we

retention, highest retention That cohort we if has XX-day cohort then include which the history. XX-day would any a in have second transaction, a most third cases, not of on September that in

days, we're new performance acquiring on customer confidence of and offers, cohort are transaction we at which those first we not seeing gives retention second third customers. that improved junk through from So improved us the least seeing XX that and are

is and And XX there points be points? slide -- XXXX. retention of retention that improved Any helpful. I are Is context it I magnitude basis cost is kind levels -- in know above that of basis would has, the saw think talking that then, I that we that XX

the customers, retail retention. retention to very you know, XX So And clarify, basis of on basis as large points measured is bases not retention, digital is points. in

XXX points about we what improvement when we and retail whenever across XXX to of talking getting the about points we talk points see XX So improvements, to of basis in basis in goal it obviously we're with similar might expectations footprint a digital. do

So improvements. we're point talking X,XXX not retention basis

I just roll-off to understand sure make I the want squeeze the more I right. of If impact the it one just agents just in, could I have of so

percentage I the quarters? X percentage a the the roll headwind of that point point quarter. in impact think next kind X Did X the roll agent, through off on had

on the like headwind then, anything costs I correctly? agent model this guess, factors And next just from agent like commission so P&L, that of helpful. it And size offsetting then any what's help or can the we does expected be the would

Ken, this is Matt.

this of agent basically, So is revenue. each talked X% about we Investor about at Day,

exited So QX. the first one here beginning at of the

the. that lap we'll at So

quarter? the in here The other middle agent we expect part the to of

of the Middle year.

year, the thank of Middle you.

middle the Sorry, of year.

about for talked can you we've about about a you think normal average historically. as clarifying. commission Thank rates being And

next from Morgan to Stanley. us question. Please James your question ask Our comes from Faucette

couple of a ask to follow-up wanted just questions. I

as digital of are that they and customers second level their on third into cohort new retention, customers, seeing promotional changes their high that and et go customers, First, in cetera, those pricing? of transaction,

Or promotional still them. for that place is pricing in

economics Just the wondering at, kind they're they're judging what of looking for themselves.

are market-based they returning to to No, refer Jamie, thanks. as now pricing. we what

day, corridor, and for customer segment. that then be off that that we and So XX% the time is to pricing market-based they of to first consider what return transaction situation, somewhere would between free

and what pricing to transactions. So they consider second normal third would on are then be paying we

working economics goal And et through cetera. like, what posts, new are products, know rolling terms are on you're going some that the like et things look of like to kind be of your other the we But Evolve I out cetera, of in tracking? XXXX what still initiatives should and

new how things and But you evolving? paying that's on economic revenue or that month help I us of metrics to gave there other be have. you think attention can are perspective around should an per a we customers targets that these some perspective the some that potential assess from

retention of account-based growth are Right added can providing look that forward our products We and/or that drive. customer the in tracking we on. of now, either as and the in time new to an structure base more goes publicly value

the that, we we'll if services, you. incremental then want and And and see to we'll certainly with share that benefit products from new share

Thank time. joining Full Quarter you the We Year have a hope Union no for questions have Results Fourth XXXX Western Call. Conference this you additional at We great day. and