The Western Union Company (WU) 2 May 232023 Q1 Earnings call transcript

Good day. And welcome to the Western Union First Quarter 2023 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 that this event is being recorded.

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

Tom, please go ahead.

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

release. been have in tables provided press Additional operational statistics with supplemental our

XX-K our Chief Today's me Officer, the recorded, on language today is Financial cause forward- statements. Cagwin. Joining looking and in filings differ McGranahan; the Western the Matt earnings and forward-looking Chief cautionary the call Exchange in Executive our refer include actual materially call release Devin being concerning to Please from Securities our with Officer, and factors comments is that additional results for information XXXX to could Commission, Union's Form statements. and including the

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

We comparable earnings GAAP section. as the have Relations our Form our website, measures the as on X-K Investor most and attached to our westernunion.com, release in under those items reconciled well

over I the Chief turn call Devin McGranahan. our will Officer, now Executive to

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

We strategy are on and pleased our making with quarter XXXX the results. progress are Evolve about our we are first generally positive

our we the return new growth discussed our as to priority. been near evolution previously, for the have see to revenue changing trajectory and company customer the to As sustainable transaction growth. year term, we journey has a two acquisition positive three In

was the $X,XXX Our million. first in quarter reported revenue

came a in on Middle and underlying in the percentage points $X.XX Solutions. from in currency a Business impact percentage our financial the positive detail dynamics, will on a operations the share constant in in Russia several three This contributions an included Excluding basis. and quarter, $X.XX business and Belarus, excluding business per a earnings and from East performance compared two of impact from of and and in from Argentinian operations strong of solutions Matt our $X.XX This was Belarus. of negative each suspension contribution from including the the reflects Adjusted more points results inflation. decreased financial contributions which in provide further discuss to update $X.XX year, XXXX Russia and prior and outlook. X%

As you from can results, our we see progressing strategy. Evolve are these against XXXX

goals digital stabilizing on accelerating business and to Recall headway retail to business our rates. include getting low our digital in our some growth making are Evolve stable returning our We business. digit and the XXXX retail of growth double business

we today, in saw reported transactions regions we compared improvements year. last across to we sequential where As all exited

More growth the North the quarter. importantly, in almost first two transaction America positive for in saw years, time we in first

sequential in basis East region also America in and basis suspension We significantly fourth well. the XXX Russia transaction X% the in for quarter. the of Middle improvement also adjusted and performing year-over-year, transactions to over acceleration XXX European our growth and a XXX of points in Transactions saw in in when Belarus. by sequentially, our points improved region operations improves APAC points in Latin growth company the be transactions top as experienced we the with rate continued up basis services

achieved. moment. a customers of can on business, be our Stepping results performance for back and Our the operational retention our on demonstrate focus improving that core new focusing improving winning

the On macro front.

volume border the an rates remittance backdrop, countries to digits resilience XXXX reported. principle persistent have market with average quarter be elevated of despite The up Bank Central data indicates which that inflation in the Even with around first world. being remittance high of challenging, the with mid-single the XXXX continued interest cross

in X% with seeing constant our transaction, in the quarter. resilience also base customer own principal are We up currency per

benefiting Our and remains PPT Belarus, in decision from currency constant excluding even Belarus. PPT suspend positive. Russia to our and is Russia But operations

XXXX Western populations providing the launched positive to return we financial by October, the Evolve Last Union accessible strategy our of becoming to services world. market the aspiring to revenue leader and growth

to businesses, core our retail In value and to accelerating existing services products launch we addition new to been customers. expand have remittance digital our to our proposition and million working XXX

Italy, bank launched We have our successfully Poland. digital Germany, in Romania, and

and our are US digital friends Brazil now in testing the with wallet in We product. and family

pay and re- launched to expanded are Australia have have Argentina business US pay prepaid to partnerships lending of bill connect relaunch product the We corrections products the nearing platform into in our entered our our LACA, well. and help and US in customers as

short the to our They products expanding retention, are services growth. the our term, overall be in value will relevance, our contributors for of revenue increasing and proposition, not our and improving growth. these foundation platforms While future customer revenue providing material

traction, forward look you. gain more As more we I to sharing with

been Returning customer revenue term and three marketing segment launched more and funnel the of quarters. last customer new LTV a transaction branded and top importantly, business maximizing positive priority in maximizing near to from CAC, offers a go-to-market approach to new has shifted approach our launched per digital over transaction revamped to management. growth We our August to XXXX we

transaction happy The US have a to with fourth continuation now QX at these since to branded and customers in US the journey now growth XX% last seen up quarter of XX% that working outbound US were XXXX. enough year-over-year, customers am in transaction contributed are believe growing we trends We digital report we transactions We able branded saw far you we digital at durable. and into the which to in growth to be it's you outbound reported XX%. X% I new that fastest quarter. this tell growing

will growth followed growth that to But revenue always equation value in require has and to that lifetime North customer expect been quarter in near of important expectation improve our we us Our to part growth, XXXX. acquisition. would the revenue which customer's of ultimately see growth America In first, the increase customer growth. the the term we and growing new new transactions jumpstart sustaining and by transaction cost of customers third term, begin longer scale is an at

Our these starting our in the to We in areas US digital our able America. increasing customer new by acquisition North bear work were also branded also average to first by XX%. XX% lower fruit. while quarter customers In roughly costs is

customer retention or outbound first perform rates conclusion, more the our Additionally, the past. US In branded levels are continue than acquiring approach base. of of above new September recent in cohort, our to our outbound US of existing customers at we digital new the

we at similar if signs retaining cost higher them a We past. are also at levels are and them acquiring indicate lower early in not the of than acquisition would

As markets. go-to-market we we have expanded of several mentioned large European in our digital the our to last quarter, program

we begun across similar As Europe. have trajectory a countries to a in key see result,

New digits branded countries. double digital in from in improvement in meaningful all customers those up which the is France, recent a Spain, in Germany QX, UK were trends

we've in look Additionally, transaction more and forward calls. same sharing you seen also future improvements on the to growth with across countries,

networks, most productivity, Our partners to of number provide and as for to decades. with location the in proposition on strategy right convenience. of retail customer around them, opposed increasing include and been having our centers value locations, delivered strategy growth Frequently active level the as many retail in driving they're unique largest to value the with of Western refer these cases, right network partners, Strategic partners important for have locations. overall of as are the Union a proposition network which exclusive partners our element around the we an just some right customers

well past the can being months, programs, experience and of as on six Over integrating working the options, friction refunds, pay we we've a better creating to productivity and omni stage understand been individual these stores and reducing include new more products the networks. improving in as offering, how in location the developed large in-store flow. improve introducing focusing channel transaction simplifying services, loyalty Initiatives

I quarter overall discussing our second in opportunities Union improve experience. for both retail Western the reduce the Beginning to the friction customers and our began to better XXXX, retail agents of

compliance know refunds XX% the increasing led Over experience through our and services. to of friction support that have centers. a per including agent transaction such I processes, the past of this our transparency many we our streamlining reducing flow year, in customer launched calls processes, transfer our pleased initiatives, track call focus a in has to let drop you am to year-over-year on funds agent

are cost a from is making. ultimately, for do, progress with believe continue pleased are the will us alike. a help obviously the experience increase of lot retention, perspective, our we have beneficial our overall we'll this to customers to and improve And we agents to still While it realize we but work work we

in point the network part we strategy, As our sale our continue retail of US. system new to of pilot

quarter, locations goal which services type a market new quick can enhancement us developed in and We systems remember transaction point using United on allows to Two are me. experience improve in up by including in system it agent to technology months enhancements end sale known the in of States repeat to customers customer we can front tested layer we and across legacy customer of begun first will resend development across architecture point system. product of we this is this in and footprint. have lookup of recent built an receivers call have to multiple access a US functions technologies, entire now XX%. of reduce the our tool, around have that complete modular world. our This improved rollout full allow We've our our more the modular new have sale roll scale advance The to to out to bring times that quickly and of legacy resend, the product transactions quick the select developed

an new heavily Union you and In on strategy. focusing more recent customers particular, Finally, transacting and Western existing I making experiences to the it improving digital for update to customers. have months, seamless bank. on progress like for the ecosystem we In been focused to we've would our former on the migrate give of onboarding

these the to we Western most digital will customers. reengage bank evolve, to be our Union migrated lapsed continue with XX,XXX to more than easiest retain. and to the returning enabled that continue we As Today, and customers us customers has believe valuable

access back wallet has transfer given Our experience, offer to an has Western not card. money debit improved multicurrency only Union, brought Visa them to them and a our it digital

doing and include are transactions and of in Secondly, payments, transfer. funds more in customers PXP, were traditional the conversion lapsed than converted bank. These prior customers top and to number to out the digital they money card Union the doing to debit twice prior up, Western transactions addition

a be surprisingly, more than our us from transactions, and transfer very opportunity revenue This to Finally, prior our best have clear we were money more retail seen cohort is with that to bank network the our providing conversion. potentially the will most digital that forward. and for among going converted performing they

we optimistic But efforts customer realize results small and broader is relative will the it a our sample more need to to continue about customers early scale services world. leave still around us with broadly. Now, million existing we And base. XXX possibility financial the retention our to provide increase our to

over Before I partnership financial detail, renewal. turn I in like key a the outlook and results to highlight more call discuss to Matt, to our would

standing Matt. We long with valued of to customer many years. I come. exclusive And to for nearly for locations are continuing railway for pleased been partner will a you have at base Swiss Railways. forward now to our and announce call look plus ours Thank Swiss serve our we to Swiss They of turn XX the time, to extension over the relationship your years XXX

Devin. I'm pleased first everyone. to And be here good our to today afternoon, results. discuss you, Thank quarter

revenue quarter $X.X down was X% First to billion. adjusted

several our dynamics is I'd quarter initial than outcome. Given you that this in better through like to expectations, led us the us walk

negative new operations our First, related Russia to agent loss percentage impact branded go-to-market negatively activities results and suspension see points. and continue the our adjusted by promotional Belarus, from strategy. digital we revenue in Russia and a Belarus pricing on an three of QX impacted to

in driven in continue finally, Iraq improvement Second, a by Middle the Middle monetary Argentina improvement East see inflation in first East. the change LACA strength meaningful in benefited we first policy points. And percentage by was to quarter in and quarter. two adjusted during revenue a The

nearly customers Our agent percentage and adjusted in thus revenue. of needs what a drove leading At level how for quarter, network two In fourth long trends this quickly dimensions. improving trend react our continue. exit compliance benefit all the us first time, Iraq, it's quarter allowed saw to to and point at from and capabilities meet on we rates important will this the unclear or

now and it Our moving in is direction. while And retail still improved believe the money right transfer down, sequentially. we business thought we

is with as customers in program Belarus. and global go-to-market branded Devin Russia digital progressing Our XX% up growth across mentioned new branded quarter branded transaction company excluding digital digital driving X% the the

business to interest by due to to Pay to increased Adjusted The United optimization continue growth in due was was XXXX well QX, We our as States. benefit technology both business other investments in the rates. money our in as Evolve Argentina also digit driven margin strength Bill year-over-year margin primarily decrease compared cost to and slower strong see a XXXX The operating and to and year. in float revenue. order last portfolio revenue related primarily retail XX.X% double of XX.X% strategy transaction relative of reduction our higher our lower consumer growth, in

outlook what our we was a in sequential factors. February. a it expect few improved operating our XXX The operating points, by we improvement above sequential which early and basis nearly basis, looking shared was in initially to margin due When on at margins

First, expected related Two, our redeployment and marketing expense cost expected. quicker reductions was program. expense spend party which lower third to than

been take than to have first third, allow We revenue increasing quarter. adjusted of actions thus to base. with in expected able $XX leverage free million XXXX benefit our more cost And in up half the us almost than will better which

quarter and EPS The $X.XX contribution which rate Belarus. $X.XX effective to compared Business adjusted the in was expenses was the to period, compared Russia tax effective Adjusted and was the prior discrete compares due period. from prior when the in tax year current primarily $X.XX XX% in $X.XX increase period, -- to which from Solutions, year included in adjusted contribution the in rate XX.X%

revenue Now turning Russia X%. transactions segment, on X% X%. X% constant to by a by decreased CXC the transactions impacted and basis, Belarus while revenue declined currency negatively and

Softness in go-to-market promotional growth our digital strategy to by in our are business retail pricing partially and offset branded activity Iraq. related

in Deven basis, anticipated For lead an X% as transactions currency to revenue on in go-to-market increase by an digital new our earlier, revenue. highlighted an declined lastly business, followed our then branded increase a first in we that and customers, constant would strategy increase

negatively new year-over-year last with while fourth X% in customer Russia result, QX, from QX X% Belarus. As transaction quarter promotional Excluding quarter, a impacted year pricing activities XX% acquisition growth and the to in revenue in accelerated in global the of up

remain in to We back of half the see transactions new customer, and this expect our about positive revenue digital growth excited progress customers the and year.

results. decreased X% Russia a The North the revenue grew X% drag business on regional domestic while In Now quarter, move US transactions results. into the business and US first America outbound be to continue our to

related digital XXXX. since activities quarter negatively leading to While first the of pricing promotional transaction positive revenue Branded second growth new North our go-to-market the overall growth. quarter impacted X% of America in grew strategy to transactions

pressures, and the and quarter basis improve Europe Russia to region quarter. which both transactions X% transactions and by in while trends difficult and The for revenue agent XX%. backdrop, down by Revenue second anniversary but constant a on an declined consecutive competitive for was currency ongoing continued transactions faces XX% XX%. and CIS from a Belarus loss, macro headwinds next impacted continued will revenue have negatively

Latin finally, X% America transactions Australia South basis, retail Revenue a solid Republic. accelerated of offset APAC meaningfully was declined X%. the constant revenue currency and accelerated basis, softness and Iraq was softness by led region revenue the basis, per down Dominican Argentina, Korea. was Caribbean transactions in constant driving business. in a in and X% Middle with a Asia up and growth to in a East, decreased on continued on XX% Revenue partially our higher and growth, while the strength transaction Africa constant currency while principal due in the led by Japan, X% currency Ecuador, the in growing on in while quarter performance The transaction And X%.

the revenue of reported Now on Argentina to primarily in order moving percent States, basis. and the payment a Other consists year-over-year total other XX% revenue, US. of money a and in company represents bill grew which business the and retail United

and and States. was discussed retail our United Bill this businesses money by As I both strength our in order Argentina earlier, Pay driven consumer business

sheet, year cash the flow our period million to due decrease payments. to of flow and in we to compared $XXX cash million of with turning timing the first operating prior generated $XXX quarter Now balance in a

related transition in million and to single XXXX in large the with to up last million will a Additionally, $XXX tax will years of nearly next Tax due annual were US year. portion $XX Capital the after XXXX. into expenditures we Act signing payment our agent quarter. bonus, the a step end entered which early quarter, increase These payments to to will second the over continue couple

a quarter-to-quarter, will anticipated agent shift vary from signing we signings As bonuses. mix away reminder, bonuses a from can agent and

sheet continue cash maintain to We with and $X.X equivalents cash a of of strong $X.X and debt billion. balance billion

and were X.Xx M&A X.Xx net rating. to while on basis, ratios our continues us and which leverage a credit flexibility Our gross potential maintain provide to investment we target for

Now reaffirmed XXXX adjusted financial moving today, our outlook, outlook. to our we

our improved Iraq the year but no through forecast the the of We trends have and have and the assume outlook for regarding to included degree uncertainty due in revenue remainder of the for duration. level incremental April

in material Our no outlook conditions. assumes changes macroeconomic

X%. to reminder, As adjusted X% be a expect down to revenue we

We in finally, adjusted of operating in EPS range expected XX%. expect XX% the the to margin to $X.XX is And adjusted of range to be $X.XX.

joining good ready the in progress a optimistic seeing to the to Thank that And questions. start. we're take call. the trends strategies. we're off XX Evolve for are making we we're recap, our operator, To We're about and you

Instructions] [Operator

first UBS. question Kumar from Our Rayna comes to from us

your returning market newly to pricing? of I many afternoon. pricing? spending to customers my about you acquired transactions on subsequent an Can are at based us customers pricing. make question. the of taking for give Thanks How promotional ask Hi, through promotional good behavior want the update

call. joining the for Thanks the for thanks question. Rayna,

previously, reiterate will acquired we same, not which that have over new cases if pricing, month better and first customer free, transaction exhibited have in with said periods. and six of As terms subsequent continue three we the rates and the we retention many promotional transactions, in to customers was characteristics

in of In fact, subsequent progress the through our customers we acceleration pricing. traditional promotional have an seen not over acquired transactions

So durable. working the commented good, is that we and we as strategy feel

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

follow just obviously we And you digital in an Hey, the thanks, of where having on transaction it changes that, like guys. a are to as touch quick been terms now I on digital mean, maybe looks just it's think promotional effect pricing Can for you users. growth. on adding

can stones stepping of on you inflection If positive get some on remind variables really Russia, just the us revenue and us from growth the a anniversary that more are today, all headwinds us remind to way helpful. the key here be et would from where inflection we from a pricing it's anniversarying that whether cetera on to positive sustainable, the

for joining much Darrin, Hey, the you call. thank very

we're fashion. As we've cohort in about out talked rolling past a calls, in this

the program started August So in bring with then to we the we've on XX a year continuing then. customers been corridors. since basis monthly last here And on US in

about, help based half head on in your know our as have attrition go going in this now in this. nine retail it's never we've same market year. out months largely positive disclosed to revenue publicly will been our digital, little and modeling we it's the which also, expect market that you eight, than you for the second So a in disclosed, around we've we rolled QX if get better talked of for European so the about growth our but our now. think to But business I relative We through rate, our effect, pricing it to

anniversary we customer anticipated new XX and Darrin, effects to lap of said, somewhere based we XX and or the historically between the segment new pricing. have months

we in call launch it we in happening that move North think into are comment I is pleased where to question, we similar if third than second, this I positive customers we territory, on as levels and of return accelerated originally expect America, as of modeled, that as well first for quicker retention. to we as not first due explained and the transaction, fourth elevated revenue both,

for margin pretty strength I in quarter. was quick a the Devin. mean, just the up, have Thanks follow if time I notable

And see so but we EPS change guidance. didn't in a

margins So nuanced was it, the below just maybe items, anything cadence as remind on or can it there, remind us you of the your, us was on progresses? the line year again,

Darrin. Hey,

changes, we more year, excited giving you can us are our in when about year long we growth. it to for early looking accelerate of the here think our making financial very whole guidance really, the the term places for and for sustainable investments of So any about kind lot and us outlook make start a the is where path it's flexibility. year, But we're

us Ken Our next from Suchoski question from Autonomous. comes to

business, the I that kind digit Russia down Maybe should for to Thanks business year-over-year everyone. to expect here. the there. the just the low digits this if transactions continue the in taking just it could looks later some that declined, some macro wanted rate to afternoon, year. positive of three question to the And like I mid-single this get there's guess we that in improve? I'm quarters. trends growth is about maybe impact good to I math, business Hi, a growth is But prior double curious range, in quarter do in ask retail in this physical retail year-over-year, in

we the call. Again, joining stated, as thanks for have

get to is retail stable. goal the Our to business

course not that achieve accelerate do time anticipate end the to the accounts we during period. the that in see that year. hard to Investor change to the would XXXX been Those put highlighted large or since beginning able We us reporting. flat retain importantly, retail we anticipate increase as will efforts base allow and customers. Day, the being executing to of and And a that us the stable to are by get we transactions in strategy can And effect. you place more enough But are the around on retention world that that the have been to we've of our that customer and on trying retail of of attract I customer Evolve take to have.

helpful, that's Devin. Okay,

for the up. terms quarter, kind the you softer? in transaction to because follow guess that of in revenue year, X% we talked a should translate how then the came the pricing the what's I to I Just Blue.com just to growth and transaction growth business rest some growth I guess, of bit as just branded in this of expect momentum about accelerating of into there, little my mean, the expectation

Hey, our Ken, on this is obviously, strategy, it's our we hard can rolling go-to-market actually Matt. see portion we're a don't for growth. customer as out so but continued I new transactions, larger base, get of our guidance digital mean, you to the you improvement customer is our that base us forecast grow on that provide digital

you I through first the that if budget. way think model question. It's But digits, now same the can seen. one you're you on answer being I the customer towards working been for in seeing for And and double the level. transactions the path growth pretty that we've that now question the So can't just sequential really think its

we transaction year. we've I as world, the to you we growth assess good been in clear roll you the America since feel what at, going Ken, and in That so it. progression of and x in where Russia we're We're America. we that And, be the think about about around pretty think end can the Belarus we're can digit pretty now North by North double look launched trajectory I seeing

from JPMorgan. Huang next from Our Tien-Tsin us to question comes

ahead, the more way. thinking on transaction good already a spread just in revenue asked spread I relationship been much That's for another likely is here, are numbers, the about to out That's similar between quarter two. maybe the that widen see ask it digital that narrows growth, start thinking question again? and narrow growth looking so thanks about the branded Hey, different just the business, we to where way at promotion. not can before explicit the to Or so look between we in

attention, pleasure this pay Cagwin, to is This Matt you. see

going see generating get the think bit we widened this of and think rest this But to into going it you're could see little I year, the the revenue potentially. more going high as back you you're positive start watermark you a started year about QX I As half think and to have narrowing into now growth.

to America Particularly scale generate, chose given we our North of start gorilla. because it's the the business XXX-pound to

And year, it of start revenue narrow. world, you're turns so of regardless back the see growth what almost rest positive the to did this going in to in we as that to half of the

seeing makes I for, Devin, forward sense. my to That's up And I Yes, maybe maybe follow that was that. look encouraging. asked think it and it. Ken

understand acquisition retail the you're there it's and extend looking from headed one me side by you priority to -- say in that? sticking a that in on quantify not more? standpoint, perspective, improvement side, they or the you on are is the [inaudible] Because Iraq But curious sized was statement Thanks. your more what's direction. to thinking for retention did from right Is for more mind I a On don't to driven people are that me the just, I'm asking beyond side just what the just peace. April. the about important way you priority us. you Can

Yes.

us programs a, customers into of network The easy transact locations value looks our network we because for great And talked them business doing new a should what have proposition head experiences, breadth great improve a And answer with hopefully got modifications, Matt we we're and exclusivity lever, branded like in the and to side, of like. the the make its our our retail exclusive can is the small we let trajectory us about, customers, things head Iraq. depth ability help and as Day, but Evolve this in improvements the retention retail continuing large catchment shared in business. why Investor of to question increases with do it through terms ongoing with to competing XXXX efforts I'll is and meaningful our customer our to retention. on good on powerful the sale, of calls, prior standpoint, very loyalty at a with, On base channel our and improvement most always on that in we've independent a from have new we're point attract both also that.

Hey, we revenue on X% about about Iraq on to of earlier the front, in talked QX. the call

Credit Our us from to Tim next your question ask Suisse. from Please Chiodo comes question.

you Visa Great, thank a initial recent dig of the I fintechs you partnership are participating the of of or taking for that announcement and to apps advantages group you thought how of part being of your us the into by some decision on to be? and a in could neo want banks made join question. if plus. giving might off the little or maybe just the And you start background and just bit context what

Tim, the question. joining for Thanks call. great

aligns know, partnership with you our particular As that of the launch the in US. wallet digital offer/products/

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basic of in is out who of opening our philosophy central are. funds So operating to network a we and funds

sense. So make a consistent managed constructed with And we've seemed in wallet digital the a lot the how it of the of with and offer business. Visa is plus to our product addition US

brief And you. you thank follow if don't mind up. Great, mechanical a

discussed was currently it that is the potentially only but could understanding call that Visa is on offering our So or domestic the

app. meaning think another are XYZ, meaning to we they're meaning country, should border, And or to just as it an cross of and the card. more become to PayPal be potentially now country, method, sent to another payout store, have sent to necessarily account, this they retail would could doesn't app, Western Union sent or about Venmo another ABC be in sent there's

to try So I think yes, me clarify. let

So it's only. yes, US

today app that, world. to do send to to all around the point. apps We have We agreed at not this anything others beyond

of is And so for an us, extension do. we simply already what this

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

wanted the the I two question. your the pieces taking on that the And guidance I contribution moving to from pieces two follow this the of question revenue some point quarter. up guys, assumptions, revenue. Hey, the of today. Argentina, expectations and like earlier sounded you the year, some on the adjusted basis of results appreciate think from this drove Iraq, of the contribution remainder above point for major it were Nice

guess you're could assuming continue just So the for saying does year? you sounded that hasn't remainder continues so that like a maybe the macro, guys guidance change it assuming point or kind And in not activity of in far, clarify some you're not are might you when of continued still I clarification of the the just ongoing? material be there

Will. hey, Yes,

talked Iraq this we've end that assumed We've continues the about April as call, we April. in of of on So nothing beyond assumed the front, Iraq. the through it for

far we've bit, outlook out Argentinian is As actual as that concerned, call had we Argentina inflation always our fair a excludes inflation.

the out two, has to X%, try the are down bounced that take if that because us you headline for it guidance. around into wanted to continue too back And X% our to our you comparable we'll add number to it So number back compare to build down X%. of of to kind to gives to much

constant currency. of one inflation. we it's Argentina the it's our back And So

Yes.

Okay, sense. that makes

upside. Iraq So source April continuing be would beyond I guess a the of

to as as more fast a accelerating Correct. earlier growth, to on, it if being us, as And levers. lot of the answers, long for to gives it going investments, of a financial flexibility drive one give about, us objective journey accelerate I to target, whole lot Devin as it's sustainable earlier, term does our to a our mean, our range, think us since our you continue us mentioned within possible

Got it.

We've on follow customer another front. might just about down costs lever, you up acquisition others maybe similar acquisition the the XX%. have digital the from industry heard on So statistics customer in

advertising I'm costs some if you drill based on are versus and So just what's driving broad a maybe How of digital could kind that taking? of guys of channel color reduction that actions or the you provide that. specific of down just that optimizations wondering little kind has much been

majority that of the about calls. funnel our from prior we've of the comes ours on well, Yes, optimization talked marketing program

allow I on to of comment dollars spent. the increase productive funnel conversion productive, finding the So the most can't for others. us parts that

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

us give was revenues you change? color Could What that bit the boost much. so there? helped a on Thanks exactly more Iraq policy

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comes Our from us Govil Vasu next to KBW. from question

for outlook, just got the of you, on the expecting outperformance my I But thank guide. better the guess US saw half. the to in questions. comment clearly Matt, Hi, be you for kind year for change taking you're your to you turns the at back and in I around also one least XQ that it's too early

might unchanged just conservatism to into be any baked timing more the unchanged? So you the you of there. Or investment there that give basically guide the thought about sort are should your half? process expecting is of back guidance, we related there us if sort accelerate upside, Or extent leaving are could think factors to the

Vasu. afternoon, Good

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

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guys that in pricing to is do? majority you or to this Got throughout business? retail, out? it either Are plan in you just roll how promotional expect more do it the further of it expect areas, kind is to much that do Or more the of there in complete you digital

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

I cost investment perspective. Matt. or Hey, there's Devin. first Thanks is lot. hear this, of performance lumpy, anything on in should we like But But operating but in the perspective year some Hey, from as questions. base. Thanks I Apologies the missed there. how an understand good a considering progresses the cadence here. margin should for just the taking this there's about we if flex be to sounds quarter the some think curious your

thanks for today. joining the call Andrew,

able early to at program quarter were the were was till pace. those earlier and really then and it to when a rate evolved that major through we our cost benefit as to basis surprises a from things there. highlight about As February the why revenue, us faster XXX we eight able also with optimization I on two were normal both drivers different And why execute drivers unknown Iraq, we six, gotten were positive And expected now. invest points of there just it the there's think is fall we've weeks maybe through from ago,

and So our go to that is identify save. money. had intended always able We to that to save we invest and plan OpEx the were

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So hand with us launch. the the pilot agents are through all friendly, to selected work

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

guys, Hey, guys Goldstein this James, is Jeff hear All right. Great. on okay? you for can me,

be you pressures. was the in ask your some countries then competitive And to to talk wanted about Can out for Europe. about prepared called were quarter. of down primarily region revenue driving trends in I So XX% the there? I remarks, issue think the What one you

anything's and what if going different as backdrop So you're in regions? about opposed how there kind there, to seeing that navigating particular, I'm of other you're curious just

right. far headwind still by the a significant which first in so also the most end of Russia first Yes, Matt through had. quarter the the growth highlighted was of those impacted results quarter, and moderately which the couple Belarus, on include, things, we region exit of was Europe, in Remember, a revenue just

as corridor transactions to the potentially North specific continues the most and particular Africa, be face not continues revenue. I most, competitive the Europe customers and who the Second, in highlighted, to one both maximizing digital. Central on of and And retail if and are not to Northern Europe competitors,

ongoing headwind us an who competes those is and in for corridors. that anyone So

things and a some a did in one Hey, other Italy, call. drag, last on place to also it, and we've Germany got places. we year, biggest as good then started a Spain, I Devin's build times in that in you was highlighted softness some we've obviously the few got as really couple Jeff, loss think Europe, QX. And countries point just agent just have we it's about is of, contributing the couple strength mean, then you we're France. remind and where having a are here, continued in the the we've through And Russia But to

US mentioned the you Brazil And you. my believe. banking quarter, Thank up, starting in then digital your second, Helpful. follow product in as pilot and to I

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from DuPont, of America. from Tyler comes Bank Our us final question to

time. Tyler Thank the DuPont for you. know is Thanks Good I bumping up Jason. everyone. afternoon, on This for on question.

to I'll be these. quick with try So

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service provide we customers. to branded many and region customer agents their some product LACA Tyler, of in footprint for joining. excellent of service great country. strong from dimensions, owned as on we've we independent. thanks And in it's well that highlighted, strong combination many things working for particularly many, have a couple delivery, and the controlled, specific as as Western there's very a have been And is one, Union with benefit we master in years, retail unique we've that a but the that

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management that's Finally, team of been we have that many years, excellent great does job business. for that in an a place driving

briefly inflation that Great, kind like through just inflation, the the just the pretty up you, significantly. through see you're trickles that. of looks me how following of thank to appreciate continued And cooling down and Can you serve just thinking majority how with about inflation kind and walk P&L? regions you briefly of

of most is commission expense which percentage portion as a thankfully, of our driven our off based, revenue. base Yes, is of largest

a have that kind obviously term also through. fixed through our base, portion way don't our We a price we've of of increases. that long little have large of or any got depreciation is then contracts working which we're And labor bit

So thankfully, from inflation. we're well protected

we which we've in is I Argentina, success had but the XXX% high look LACA. and countries around business our at inflation that to our ability sustained Tyler, the seeing have transitory on countries inflation just not the many are facing world year like think I in think durability can you the and manage, in through this of inflation many

Thank have you We great conference Western for a call. the quarter joining hope XXXX results first day. Union you