EVO Payments (EVOP) 8 Aug 202020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the EVO Payments Second Quarter 2020 Conference Call. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ed O'Hare. Thank you. ahead. go Please

of results welcome from you of hear call. and a Payments during quarter Please Relations currently second will of completion after views Good forward-looking this These statements. based of these will call to is due conference call. our section Investor the on This available consist that statements, materially our and website information to of being statements earnings information, available may shortly be expressed in the some morning, note actual through the EVO EVO's the and forward-looking webcast replay the COVID-XX discussion today differ business. are particularly will on impact today,

In actual additional For forward-looking additional periodic the release in found available results the release our includes in Relations to financial of views reports on made their for investors, GAAP non-GAAP An from can statements and measures. our discussed quarter most with recent financial information to any website. expressed the the on differ factors today's to our our please filed provide cause earnings and to these refer explanation nearest information today, factors effort press on non-GAAP financial also measures certain measures discussion in to Investor today's our second be including website. risk that an SEC, available XX-K may reconciliation our

an discussion. the company second we slides COVID-XX our on update further will also posted detailing provide today's our having volume on impact performance for We website Today, and on quarter business. is to have recent trends assist with our the discuss

segment. Darren Executive segment; will Kelly, now Americas the is today of over Financial Panther, call Tansill, call turn the International and the on of President Jim. Chief Jim the Officer; President to Chief I Wilson, Tom Brendan me Joining Officer;

good Ed, morning, everyone. you, and Thank

slightly on and of a COVID-XX $XX able challenges, the reductions in XX%. XX% were revenue were As by Despite declined decline. EBITDA These quarter announced declined constant-currency Constant-currency North to forced to is March. driven by last only of adversely basis Compared results million movement year, us by to restrictions our second number we compared down quarter. May, discussed were significant impacted first adjusted margins American in to shut these XX%, implemented due European and quarter we generate in our when which EBITDA, XX% merchants to expand government points commerce. the volume expense to the the a to actions enabled down quarter second adjusted as XX we widespread in

a management unchanged In addition, quarter ratio to since end with X.Xx, the our focused our cash last leverage us allowed call. strategy of

reallocating our workloads on their the withstand navigate possible hard we this and customers shareholders to the and would and employees. from to for the of continued as of the home working continue severe proud our pandemic. have our company, They of dedication extremely employees health our second contributions families. impact have I'm while and their without to to ability focusing also quarter COVID Our been sacrificed not in all work adapting by

I across Now experiencing the currently company. brief provide we trends overview are like of the would volume to a

reflected and I'm activity, digital our we which continued see payment volumes In trend in above and certain volume decline the returning decline consumers industry was XXXX pleased solutions. merchants of economic in seeing XXXX, As April improving which our July, benefit overall pursue a reflects all in last as to we volume markets call, accelerated our mentioned shift the which the began are through levels is slightly in to overall continued on our the company markets May, and of despite peaked quarter. cash-to-card verticals. in the global

business our of areas business these in demand returns. additional should growth provide activity as opportunity pent-up the However,

While which uncertainty the customer we extent is regarding significant government evolving spending recent impacting restrictions, there to the encouraged of are second stimulus pandemic. wave by trends, and remains the a potential

of expenses us the Europe to regularly and for positive managing is of monitoring business actively which our long-term both On this a Americas. enables and volumes, payments note, appears flows, our that performance cash by respond the environment. utilization as unpredictable digital it serving greater the are across pandemic We a to catalyst

new we business that merchants, we these trends not could all after cards saw this significantly which accelerated of our across did digital benefit to continue a lasting an example, contactless payments provide from our environment. transactions demonstrate even to accept markets, previously. many For increase Together, and of sign adoption emerge

well and our to positioned we product our to to are as quarter, new sales will the the invest call of continues decisive I in and benefit through now to to improve. to capitalize Darren on activity the our potential business we resumes relationships growth performance reduce measures discuss seeing. financial took We're continued business. have Darren? business our our over opportunities development channel during accelerating partner the prudently acquisitions through While to payment-adoption expansion we expenses existing European turn trends from and

Thanks, Jim.

the quarter, recognized European actions, including across basis, pandemic lockdowns segment all markets. and on our currency-neutral a the our which reflects significant XX% revenue the For impact widespread related in decline a of of government

was latter growth and European Czech the German volume Polish, some the the as in you of improvement of were improved reopen. to and from which However, our Despite our by ongoing in compared results now the This showed and some markets restrictions, X% Ireland portion earliest markets, strong quarter. slide, XXXX. U.K. in May payment see and are steadily initially approximately June driven volume to the can up strong

to marked place trough in travel given the in XX% since the volumes Europe, a have the remain XX% to last Spain While we over seen of limited country from taking reopen. year, began compared down improvement

restaurants, up which nearly pre-COVID and volumes lodging represented the above all are our Excluding of volume. year except XX% Volumes XX% Spain, verticals, industry of approximately European year-over-year. travel, prior our are segment for

continues growth activity business additional will opportunities to as industries resume. these However, provide

ability many our which portfolio, European withstand includes impact business' spans accelerated as variety helped a was the wide by during merchant new and large merchant of of the our COVID both activation of indication diversified to flat to well of inclusive now this verticals of adds cash-to-card compared Providing merchant further customers. period. shift levels, Our rates are the health and our multinational pre-COVID as business,

COVID processing However, seeing it of increase have impact volumes quarter, seen European continued adapted growing returned not and We've including the our markets driven to product our also hit to positive terminals, that the activity sales merchants to across cash-to-card quickly second have our Despite acceleration. this transactions in strong on the adverse needs the e-commerce changing virtual their we all of our adoption business, is active an the sales the important time. levels. during in are note and referral since of our meet trends in consumer as merchants pre-COVID of first by March teams pandemic contactless

previously also activity mentioned, Jim our As customer us team's maintain expand product our throughout enabled deliver strategic surprisingly strong results sales and and efforts the service offering, to these sales robust quarter. deliver initiatives and

expand as on the remain our M&A. and we to look front We to active distribution capabilities. M&A Turning

a with a expanding bank our conversations with focused market EuroBic a their of on but Abanca in Portugal, with transaction finalizing factors, number into have timing presence this is merger entry on of partner. our has proposed dependent as we ended. The Regarding restarted remain

its and Ireland as well There Americas dedication I our customer outstanding not teams I as these a recently across other for will employees in will this EVO in hard award during challenging time. proud our Brendan customer but recognized XXXX who European Brendan? Lastly, was the including these service. now Poland. Europe, over awards turn continued segment. number on quality for very the updates awards work call of the only am for international provide are achievement their of excellence and in to

Thanks, Darren.

a declined currency-neutral volume the in Americas the which quarter. the basis, decrease revenue this For processing segment reflects quarter, on XX%

However, our other well which compared recent our of offset the performance withstood e-commerce the crisis have somewhat to channels. BXB business volume relatively our businesses, was and by

X% the last now payments Americas Our from continued May are year. and volumes since in down improve to approximately have

in certain volume lodging some decline Similar our the driven our the in primarily by cases been European restaurant we surge COVID volume both in year-over-year XX% and our which industries, the pre-COVID business, have recent U.S. and de-acceleration seen restrictions. the travel, However, has caused has to Mexico reimpose Americas. to of weeks, recent as in governments represents

levels accept lagging U.S., we to seeing merchant as by accelerated Although our pre-COVID due encouraged to as and working customer well the transactions, within our continues our business In direct our positive digital via tech-enabled am are partners leaders virtual the European to enable merchants our segment timing quickly COVID, phone and trends both payments. In also the in over for of the demand our and the approach count, to which include our improvement which divisions, ISV been I direct divisions. terminal. our with active have steady sales payments online card-not-present

as channels of coordinated signed forward our parties, benefit environment. large a e-commerce a efforts June, relationships across through which both a partner sales business Additionally, referral we and our as will normalized our result with to third our going we in return

well the with pressures X% environment relatively volume current compared the to continues XXXX. business of second BXB withstand quarter Our to down

to several new platform from and partners increase business additional to integrated sales was to software home, on automated our enable an Further, businesses the working as to new emerging our this customers decline and of product Although and capitalize referral and expands the expected, required many existing addition BXB more among resellers experienced capabilities distribution we enables in transitioned us workflows. ERP opportunity. which

small paper-based our BXB and growth BXB for as to from gateway, transactions. We PayFabric, move and expect deploy accounts business our large continue receivables businesses dedicated away

to Turning Mexico.

of to recall, may corresponding our of you this the COVID the the was and feel last effects restrictions. government markets As

a Chile, are in portfolio helping large many are XX%, this JV market the market. completed have that process have system stabilize the in we to decline. currently to our that to we volumes merchants Related merchant diverse requirements approximately transactions in down includes While the

and fourth to receive begin of process We through regulatory expect approval quarter. the are transactions deal operations and compliance working to phase the this by

our also work has of cover over efforts am With enabled this environment. us will time, turn Finally, I Tom detail. the unprecedented continue the this to will in that, who proud to which at more now navigate financials employees Tom? the to of call I

morning, Thank and everyone. you, good Brendan,

declined points. XX% On the prior EBITDA XXX the managed our currency-neutral first slightly expanded XXX zloty declined by margin the through to For quarter, to crisis. business year. EVO's points actively year. strengthened dollar FX basis prior compared euro XX% declined and revenue compared expanded the and U.S. adjusted the basis peso, revenue we XX basis impacted points a as while basis, margin constant-currency as to EBITDA the against negatively Compared the Polish quarter,

effect positive the negative adjusted EBITDA the widespread government impact lockdowns, by our reflects expense the of reductions. Our of offset

With in in XX% our to declined the sharp on government stated expenses XX%. quarter declined compared segment to in we adjusted delay align on segment expense staff revenue. to of call, As adjusted these anticipated actions total both the regulations XX% decline and by activity. government-imposed respect decline prior After XXXX, non-staff-related to reflects our performance, were a and personnel for certain cross-border driven profit of timing nonrecurring normalizing revenue a and the with constant-currency combination and a delivering our commitment reductions SG&A declined our implementing last EBITDA certain of quarter costs. due in Europe, the second the lockdowns, expenses, approximately European

the European partially and fully place. SG&A began our cost business investment by year-over-year high-growth cross-border Of our and the note, as activity pandemic. neutralized addition, in consumer in grew cuts to spending In our were leading June, rebounding were up continued EBITDA initiatives in

revenue adjusted XX%, Americas. Turning and X%. Constant-currency declined profit segment to the increased

our opportunity in quarter stable were implement remained to of a we U.S. beginning to the as reduce and Our had the non-staff at EBITDA greater expense payroll able the adjusted initiatives and expenses

despite during were division that payments. are more well business of XX.X to was we tech-enabled the adoption well compared reflects share I'm adjusted the shares as our year. both to of income net increase share our $XX quarter. that of Across stock XX% in diluted shares. of $X.XX, increased the the addition, compared our our an totaled mentioned, active stable as At million digital corporate encouraged management as quarter, segments, the due In net But which to Brendan income performance and XX% weighted performed expenses accelerated preferred relatively the million, quarter, seeing end increase the and April. compared and financial income first performance continued in half excluding the shares a the year of contingency the second quarter year. we issued quarter. respectively, of recognized X.X $X convertible $X certain enter to approximately per for million, our Adjusted ago was million million, average diluted Adjusted XX%, we last the income adjusted importantly, which declined net momentum reserves as per was the loss in net during declined

in merchant actively During cash demand, to usage of surprisingly point-of-sale million, $X.X the XX% meet to the accelerated flows spend expect of our to year. the of spend second continue second terminals quarter, a by approximately due strong we our to the CapEx into sale. versus CapEx year the managed international we of markets the point prior card related to a our trend limiting Half half was decrease at the our now

of cash enabled improvement flow year. quarter, demonstrating XX% liquidity, crisis. million We including prior our rate a and also a in ratio of $X quarter the expense. XX%, throughout free Further, interest from was flow to management generated cash $XX with an our combination us conversion decline efforts million in active this the strong financial this end these X.Xx, of leverage discipline cash The free

Lastly, I update our provide on like outlook. an would to

forecast time. providing the will revenue or or EBITDA XXXX economic this not ongoing Given full for uncertainty, year global at QX we be

remaining provided to we million $XX annualized from have in trends remain will an volume recent approximately the that to removed you to are that business be quarter of place. expenses on confident respect model date, With will we help and saves portion we in However, a revenue. the second permanent, the basis, of cost the expenses,

actively and cash to expenses manage flows. our continue We

business activity economic are in evaluate meet the restore demand to has and expenses that will call to help we As With the to in continue you our we quarterly base our selectively order business. margins. Until markets that, seeing turn the our expanding gradually business we resume, prudently are to back will trends cost understand in operating confident activity updates to provide continues while specific current Jim. metrics I'll stabilized, over we of

environment, summarize, pleased very Tom. quarter Thanks, volumes active given To I encouraged merchant our this across our remain and operating counts markets. recent I'm performance financial with by our and the

solid now a entering the momentum and second with on are financial of strong year the We footing. half

distribution. and opportunities While ultimate operator forward Operator? well the I growth, there now to expand duration the remains uncertainty surrounding of call economic over will begin are pandemic, to and session. impact to turn positioned to the return to we look the we'll our question-and-answer the to

Instructions] comes our first today line Napoli William [Operator from the And Bob from question of Blair.

Your line is open.

morning. Thank you and good

morning, Good Bob.

for live July, has times you volume we in. so The the mean trends. FX-neutral? trends, trends mean Interesting correlate here. lot Lots they I volume they in the are weakened I FX-neutral volume – on would know dollar these I going Thank are – a

Yes, they are, Bob.

haircut line think how we revenue would relative up the guess, I take the that directly more to a is And volumes? have then, revenue lower might to of held should in Should typically, rates. we sectors have – we volumes? much with the that Or those give

as using that proxy what for well comes with. communicate mix the now, as can publicly. as I best into we're we Obviously, play we're countries it think dealing

Poland well in where merchants like States. would held volumes base same big-box into up say, because The large a have themselves, relative relatively they for have have Mexico, Europe. So in well they're the the of our still lot crisis of merchants. type to, United large their also

margin So going just to because merchants. those lower are be they're bigger-volume

as said can put now, think when good you. proxy the for the as first trends, give. we that we as best show we But can So out they're volume we I that's

Yes. Tom. Bob, it's

comments, XX%. were for missed revenue quarter the have down some may of down while you volumes think was but XX% the on I

mindful good like, that merchants back that pretty least a on How just at for pretty been come processing their how and holds revenue. a forward think, something it's based going it's be online So now, But have what we'll corollary. looks I is of. for proxy to

of into not it see historically large season while Spain DCC in particular. heavily hospitality, a – – summer is Poland. other profitable business. I'd The DCC, mention, a our the Same component for the while of have we're to is travel, lot of Bob, travel lot exposed a seen in market. would part We is

and the While later in up well, June, European their held considered, low. international cross-border markets, things so Poland's more DCC fairly the months, has other held still quite call it well has all up as in is

Okay. And then you just a markets – that cash. lot I guess guys – of I you're mean in have

cash. with heavy struggling heavy Mexico, very the So pandemic Poland, obviously with cash;

be paying with, that So strategy could the to here I I shift accelerating. mean, digital off guess obviously,

pandemic? opportunities how like for. the the for So seems of accelerating you it about rate coming think uniquely the a of Certainly, business potential positioned growth out do you're lot

cautiously I see Well, the and a Right conclusion, enough Europe trend think are particular, where it which Tom is there's think there draw can here, now, stat optimistic, up usage data from the away the over we that I in would a we U.S. that of in I clearly, the a is to not earlier. – say. unlike but still final was I well is essentially all XX%, have data. we mix contactless contactless, still heard

we the to lower the that the case, So we to well be would then that very be expect that's have here. cash that I going positioned where loser internationally And that's is will we card think to extent penetration. continue, going

business. BXB Just last question on the

You and on going is what what additional business? Any talked that And about outlook for additions. the integrations comment there? ERP is – exactly

Yes. Thanks, Bob. Brendan Tansill here.

September we on then integrated years focuses on which Oracle we we last of that, business the ago. solution. recently a That and bought then SAP. on-prem a acquired Microsoft. in Notice you launched solution, cloud-based X.X business to over And as the subsequent focused Delego, know, bit So then We year, Oracle

addition But we systems And referral on sort be bucket ERP solutions had we the new big bellwether big couple focused in of guys, solutions. integrating ERP of this have VARs relationships up to. an past mid-tier also a the wins, ERP So we're that we or of in and smaller that additional to with that constantly resellers would support. quarter, fact, setting

is model as that that ISVs to ISVs of idea here by to a merchants of indirect both So We're a resellers where BXB we that same to based on the calls, replicate exact on division, ISV and I've distribution to big we way market have direct the side. then strategy Tampa said dealers. replicate the direct business out prior the that network of in sell and that focuses go use trying in

gateway. So ERP big the stack. we lacking obviously we that's NetSuite. technology currently a And very what aren't feel lot here. on is one by robust the Oracle, are that big brand would But that, those of other be integrating owned sort focused it's solution a many and different again, possible our as And X got a like solutions PayFabric that name solutions, we've but to we're than ERP of really there's technology as of

Thanks Great. Thank you, Brendan. I appreciate everybody. it.

Thanks, Bob.

next from Our from JPMorgan. Huang comes Tien-Tsin the of question line

is open. line Your

maybe impressed permanent. guys incremental should is again. morning. or any to reinvest in any gets how what I to the margin to or here start way thanks. I And understand the both midterm? think short $XX as volume I back, Really updates about million Good – the heard in the going going you but and decremental Hi, you're forward, going out. with took guide by us to we give cost quickly know you're volume help

we margin decremental or incremental the should around guidance consider? any that So

it's Tien-Tsin, Tom.

we said, to firm uncertain of economic kind provide the as is guidance. outlook any So too

on actively our kind basis as head we the volumes getting movement and managing business. think the which manage cost, we're largest We're even within well. to weekly when is but also continue comes non-staff to information it the actively organization, obviously of count literally a I

of cost careful in I term. to very think permanent, want saves continuing of we the business but for in there's some We opportunity terms sure long the make going still invest how the want to that We that service. remain that conversion for that to business. seeing we're the to well think that we're take that we're be in to our give as we're to continue is I going in customer With as to we're I'd advantage make that, investing cash-to-card be just appropriately of product and of guide mindful the margin. sure manage

– restrictions. nice kind a quarter-over-quarter. in points, QX saw a almost up of bit level from margin of second we You I up expansion the XXX XXXX, wildcard happens We're increase basis almost here. gradual XXX little to government going see with points QX, some back basis and to up is can But margin forward from again, just the think what wave, additional

we hoping to gradual deliver us that the options course, that, momentum good we the provide and a of Of But have lot that in that about that anticipate. materialize. we're feel we front on improvement flexibility doesn't of us

be that's earnings a No, And it I That's on pipeline some Terrific. about you right. Jim, activity There's bit around didn't deal ask going if to All useful useful little an know. I the to activity. call, know. wouldn't guess been us.

just that, seeing, So obviously, you're appetite I chances but the opportunistic here maybe what in midterm. high, is is. uncertainty know there's what curious some your

share, either to inorganically? or So anything organically

Thanks the you the if when back one would defensive $XXX then from quarter money the objectives the Tien-Tsin. Yes, call, we in be was earnings million way. used question, say, to here first and MDP a of for the was to raised go I

the closing. late was in was People evident dramatic it working because volume. to days, pretty as the early it home. in the pretty governments on dramatic was based were here were drop charts, see the how was March, or significant April, early can expectation very see staying Our but from home still you It

X.Xx in also money And be but more sized bad So as quarter had the offensive. a generally. went quarter at we on materialize. out – market and of his where basis. anticipated organization not didn't was that Tom originally the It fortunately, the for comments, said to we came declines nearly really And in leverage was the the the us hopefully, as we at or for defense into

existing facility. available along is additional capacity million us, So on the our to $XXX with

the in is like with So which we one have investments relationship together leading financial with new expanded, X Mexico. way technology we markets, made on no the expanding Brendan in in historically mentioned we last we year BXB interested institution, – or the Spain in has a forming side, are less made

you all. our has interest should So anticipate at not that waned

push, challenge was because it complicated to something is do more are always announce. It's not that to today unless fly and we have as with, to the and think sellers we we're deals changed, is, There's do them get it and actually to – there obviously yes, to on plane I a of are continuing everything take in process. is already until virtual. markets. we're way go in that positioned conversations hard has still other can to something that But But it advantage well already. we a strategy

thanks the update. for Okay,

Tien-Tsin. Thanks,

And Citi. line our from Ashwin from the comes of next Shirvaikar question

open. is line Your

can hope me. Hi, guys you hear thanks. I

Sorry, I'm of... kind

hear We Yes. you, Ashwin.

question misread to versus product? base going what didn't I of you differences? guys of specific not else because Okay. different higher I'm – of to in assuming. so degree that at a listening sort And driving I perception that a – kind least Is on Internet. is due your Hopefully, there mostly card I'm Americas. for e-commerce the my are bit of you that around guys, happened. have kind a of was little But to volume don't Or broader present? power, regards reflection trends Thanks. in the on increased Is with U.S., this trend client then the something Europe

points and well. my can Tom Darren on start, as up and I'll Ashwin, also and pick Brendan then Jim it's certainly, Panther.

least I went hope Northeast Heck First, through a the online. to corridor at yesterday, that there in okay. able you're you're I'm glad of storm get

your transaction So performance per first U.S. within and specifically related the question to the revenue

up the that already is has are mind And you and XX% fixed the generally aren't of also, even Americas pricing up same volume impacted your about And business, on in really I the of nature. in mix of of statement – business. There fees U.S. about higher within has that international of XX% in certain business, the as U.S., U.S. the certain market like Tech-enabled pandemic, fees U.S. well stable. the business and to First, of things in remained the that in during held teeing hit are practice keep downturn question. markets. think that, degree it's the that by maybe the the just

So volume. there that a or neutralizer to – provides the in of buffer little a bit downturn

I'd per transaction think why those I X revenue reasons the pretty held in well U.S. it's that up to point

think continue, be correctly, out continuing, to question, then if adoption into a of e-comm I markets, ability just U.S. the our just giving other there, accelerant will the markets. export within is the is But do heard only It rate level versus words to to and that bit, capabilities an will pandemic we is continue kind e-comm our what And had It's us and think, those continue ahead international to I adoption well. further e-comm. Your the think it I international to just was your this little it our think I I Americas of only – within and with going that. going to within those serve to see something be just of

pleased that, were saw up that quite past, something pretty itself e-comm was we numbers within that a well. up pretty held bit. well. pretty held some struggled in volume I as little We e-comm the actually that revenue actually business acknowledged It and think we our channel, good have one

of Ireland would to So lot a there add just dine Europe, in couldn't you to example, say in an was as that, as in, dine-out. particular I

versus we sales who were historically Brian Darren were of dine-out. lot saw quite a dine-in runs and of most robust. But that selling what virtual were I was Ireland, terminals So were was surprised to amazingly Cleary, during what quarter. merchants the

I come for people as think their I think that most can aren't start have restaurants preference be geared in. – would who to e-commerce will time otherwise don't shift takeouts, in. people dining over

the some So just of pandemic. related was to it

good normalizes, it Lauren by normalization think have stuff U.S., of fact job that buying so more see of just were amplify And the And said. very obviously aided business. and Brendan, done a the As of remotely. we people In Tom of many team I trend domestically. will a our e-commerce was what the the people I'll repositioning conduct things how

good it So very a had quarter.

understandable, not the ask July Got we trends. necessarily you? year prior have And which is obviously, completely monthly I don't is how providing should would it. reason but for Europe outlook, know you're Americas look I because, trends and hold, And

know last You say, what happened like things back-to-school don't or example, that you. specifically with, for for year

color to particular provide to any regards with may quarter? So you able be the

Yes.

between we that do. good the the we're slides X can are as on the showing as trends I think segments probably

of – a think election coming an I in United to mean, has States, up. lot obviously, it have I do we the

lots as guidelines busy, set slide, the of there's government. it we're how We're really to local are a actually to of by of to planning few back But – open. within by and takes vertical. In going to and back. that number offices? more offices, was the come their on we contemplated but the our people to super the will you it Are open a you So see each schools what puts was don't by show

a I'd But for lot as need travel, to conveniences holding the you travel, going performing restaurants, instead to you some color and it of on we not are lives, slide, markets X-hour a there. see, were explaining you that the the there's all very puts in it described cetera, things not the up, of But they live. markets, X-hour more et of are more our et also, us. probably the are So cetera, What see on are last segments. give that. year. is that call restaurants, we vertical can profitable right extended where would And What's to takes. have side the were still of call say We

think, direction, third past. until I'm market it's this a a right people So do we are pleased we're we like – going think as to company I and not we that are are quarter. in. be in is where third while very in or back the But the I'm a normal not and, the the that as are masks a company to markets I and – not moving planes globally as expecting quarter don't on you're stuff I is seeing and normal, is

the a just there's You and at watch have news lot of in still to the world. concern night,

all the that. Thank you for I color. appreciate

Our from Cowen. line next Mihalos of George question the comes from

open. is line Your

pipeline is Which the on spoke how little has for been bit questions. case? my question trending you the My deal you that This opportunities? still Thank I seeing most for LatAm you about I'm Allison Is focus. earlier. is George. know Hi. a the that by taking are geography. curious is a actually first geographies

let focus out. to we're Latin a the Really, our so not stand in call update America don't Why to Brendan? And an just I – let up don't remains why focus. have Latin Chile? primary business. Chile I him Brendan Brendan together, on is America Yes, we give

Yes, sure.

process. regulatory X-part have a we So approval

the was regulatory to legal received. establish first That approval been has The entity. approval

now legal – company exists. the so And entity the

threshold assist entity second and our for to The firm determining to in to legal is the required commence consulting we engage us were operations, a readiness.

third that is the and don't late anything we immediately The fourth commercial that reason launch consulting process. receive been early quarter. would now regulatory a well approval. delay quarter, following would So see into why firm any I expectation has are we And engaged, approval

So we've that. the locally some would be help to on terminal we support business, and We've, in like lot vendors made I evaluated support a using technology the of field that the things front. progress think,

We've couple so to continue prior accounts. we revenue in So anyway, a But it of that generating extremely hires we're merchant and signing cash think made manage any material consume way new to I locally. doesn't well cost up positioned.

in are, about we frames are calls. and I we've So great earnings I relative the communicated time unchanged feel what where past to think

customer. was markets. we then generally first. And unless from there, what we Deutsche or to Banco were beachhead – expand Chile market to single in sets into market – with the we relationship in were a Europe other Bank be in beyond as And a market, Popular just X we're don't – X. and once actually, that in at it the want Europe essentially into was able go up following the we then to a was time. But go But so It it

examples second. a we market talk Europe most the just a And earlier. of stated maybe But for about that institution in have let financial instances, I'll reasons that Europe. with Darren then We in we've for enter a

and X years cover what then EuroBic since almost about Darren? can You looking we're been we've for it quickly else talking there. at

Portugal, talking keen Europe, very that they regulator We have for had and we them been fixes on. in some EuroBic market. issues to actively Jim. so due or long we for they've – place, with engaged to and working Thanks, a to in enter time put still remain Yes, to shareholder need they're which actively

news as remain with but in actively positive them for crossed as we shortly, dialogue side their fingers from just possible. much So

opportunities We've we're and So Europe. to at to Eastern in Europe a gaps where to of equally outside space feasible. market-leading markets continue a complementary to filling Western at build that across tech-enabled institution that, and or we with in already in couple then of financial the made continue look acquisitions already markets in look and out look continue country-wise

helpful. you to DCC then And I'm curious XQ. Okay. about in response DCC. Great. a That mentioned was we to how the going follow-up. In be is particularly question, impact quick just an thinking should forward, numbers very earlier going how

Yes.

right I don't the trend at going – least know think I I change much. think to – that now, is

currency currency So of decides mean in a market when home is card just the and their just sale, foreign currency. in call DCC – I paid get get their at versus the in saw local a coming into local sorry, the paid point consumer, to local a clarify, a – we comes versus to currency –

as the much where people the then international are. improve, The be they move travel to if stay summer So months trends DCC going are move around. doesn't big to in tends pretty for

stay an So going et an work, that think of we much their within then see DCC. we're improvement school, for cetera, on markets I extra charge. as to DCC is they fee don't

transactions. it's to trend profitable materially side. I'm not other change those the not on type of the trend worse. on I'm So get more expecting the expecting to

Okay, taking great. question. you for my Thank

Thank you.

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open. is line Your

I to that's like Ben business. that taking delta overall Hi, clear the shift earlier the wondering like seemed to any you've I'm maybe due a versus could bit of it up kind pretty I'm was wider. Bob's the guys. month-by-month question. And in of you It to volume modeling answer more provide the gap. kind there of kind the for on wanted And just I just past, Thanks on specifically And if believe wondering trends I revenue for the question purposes. merchants. your on the was is Europe follow on enterprise about for explained that believe mix. more was Ramsey. color This on for the think – the – of I

SMBs that volume improvement kind in reactivate, maybe As of seeing more and kind you or of between revenue. gap are have return of kind an

Yes.

the businesses seeing until result, The through we're they're As people the a are we've contributor, smaller. be to types the number would market to that stores. good, to getting of slides volume a the a growing. These of on end aren't it kind bigger from you see and that back come alluded I the from just as but volumes the going think when we the right occasions, ones can margins to and grocery on to I big-box – – are are today, look restaurants, as smaller. what's I well, the of slides, we in volume and those are because see going are these margins you And side volumes of say SME where these more say are March

an see over to based improve As equal each then the economies overall on you're recover on has and it's – the occurred, going distribution transactions. what of revenue historically more of

And Tom. Ben, it's

nondiscretionary are. me, I to with that ones are those by – those of think to said, excuse that within we encouraged are back exception lag. those volumes of or country-level Spain. those the levels discretionary them Jim continue And seen of as verticals, pre-COVID some where the are We've some that are

and So opportunity look – focusing you of When apart, specific also revenue X XX% our I that all by well but had back. were does of would it even really to on volume, XX% revenue demand it DCC though it the to big And a decline. trending things on there's decline relative was Europe as Europe, kind kind the by it's as markets think pent-up across Spain. you those impacted and impact of like the in specifically break

As those rebound, I the a can between bit and would relationship – things see volume be tighter. revenue little think X those you

Okay. very one ask if then I actually could helpful. That was more. And

with more than channel. the And didn't can to the provide doing impact vertical much update was business given... how coronavirus You there some understand the on But on that an extent, talk more distribution call. you're channel that, about maybe the on, – you with I ISV is to the us going just due

So hospitality. for is business, just U.S. the The – – I'll business to the do given the it real very just U.S. quickly, time. oriented

like. So live That hospitality in think you could you the what Brendan I amplify. U.S., said, know look

that or months, it One we have real to of one months that was or demand. of know, best our whether do months some I June, think But been want pent-up you so cover in, X had May I Brendan, – might X don't quick? of our

Yes. June was our best period. month in the trailing XX-month

were And facility back So that to that the the office. the month. Tampa fact we into an of think correlated incredibly to I actually, some active able we had get

in the good to Some And a have folks a having close all remotely. adapting think done And benefits. reaped the to we've of realities the it while back one pandemic, folks sales was guys absolutely having productivity month. is getting job the pent-up in work June impacted office, I demand, our of around just or communication fantastic been could it another, but of

Yes.

to here, merchant Tom clarify, Just that me adds. corrected new was

the inside to. if people of I do don't to and But What we're business sitting So even very strong you're the it limits – even I not inside, in. down you go used you open. going like isn't it's And here restaurants is. if mean still number Georgia, go think anybody is strong. in you is been And

to would you based So something the what Brendan thrust much But the strong. and on were that's very ISV new expect very and my strong as oriented overall be performed hospitality. is still sales mentioned business continue to

me Let Darren just give talk sec. chance to for about Europe a a

signs Thanks, the channels seeing from same of throughout ISV we're Jim. Yes, Europe. the kind good

COVID. pre we've signings seen in holding up that said, are For levels example, as Jim new

XX% levels, new for is superb. merchants those example, through channel. U.K., Business maintaining the in So our of signings an but ISV-led coming

count. tech-enabled acquisitions a of well Equally then, ISVs, with strong partnering in shoots and As our through Spain, that is which other Poland, across merchant so opportunities, I so Czech, verticals as extremely cetera opening we're Ireland, outlined, green sectors Germany, made growing, – was all well and verticals in merchant into new similarly, sectors partnerships. ISV-led new is acquisition these markets, for of ClearONE, new and for card-processing we and previously kind in expanding as Ireland space of ISV medical that up et white such new seeing

much so questions. you my thank Well, taking for Great.

you. Thank

from the Compass next Grosso comes Del line of from Mike question Point. Our

line open. is Your

for Thanks exposure. quarter. and taking my morning. strong Question congrats on on a Good question U.S. your

I I First call appreciate you on there? Texas could the state-level large you'd on exposure. of basis, kind all, the provide color But on out? is a of any think concentration a But granularity slides. other states perhaps large any

some level, population track Yes. centers. I mean tends merchant on to, our base

been well. North, of to market. I Florida the moving saw case And is Texas York ISV the terms back that saw and when And opening. New slower not that diversified to direct is and of that very to had business in opened and the but across that good So in fact, yes, California, Florida. But exposed we're we're Texas those, exposed hospitality, in as California, and exposed numbers clearly But absolutely end in in news numbers. then have concentrated to or we're we know very e-commerce particular Jim and our closed some to down, we commented we're exposed – those the states, the exposure we is we're in businesses. impact have

across X. location question – big no, we're no the But track – that we well. diversified we're also yes geographic do So there's as and equally

some Okay. the when could remind And that that you contribution far or year? characteristics press EBITDA market. once of as the of know is on the But online this put out I you what targets you first release Chile. it, then follow-up of early us announced as some outlining revenue comes maybe are a

the it's to a plays we any. I market very inception answer a of Santander that company and which mean The game out. infancy split the only by time. is off the market I since in the think such It's haven't banks, monopoly long know been it cards in – hard is has provided the how town a been called the owned very, little has a there. has it business by for bit. Transbank, is exactly controlled

and But they're market kind only so Their finding tables getting just way. introduced now of Visa, have are pricing transactions. Mastercard are domestic their implemented. announced And to the been recently for being

So relationships, it's to fully we and But unknown. many critical or give field is don't proprietary metrics, of direct guidance well, the extraordinarily solutions. bank articulated ISV of many kinds as our about gateway corporate spread and larger partner our profitability and to engaged, have all those implement all when And introduced good interest of third-party understand their then us them they with own news relationships, of is strategies have us. a sales, telesales, we'll sales keen working in

I nice think to relationships, or relationships we're incumbent customer bank's our that a and see So our I going the quickly. – strategies do between pickup banking relatively think

Webex with and CEO these team. just of I on a the I'm calls a – was amplify. one to going call

run they mentioning, hope about names, has big names merchant it better. were or the chance off never clipping around lot about for there people Maybe I say think XX excited super XX from When of they're times, bank. the I awesome when as they're is they had Brendan the mean, to country. a XX, business bank and like was not for which been to running business. because, excited, as I all involved a bank be years, be think in in was excited, the is just here, buy this it. I And this But that's transaction a the we big X, bank excited

So – organically, as market it's and this published, that XX%. grows is a

down quite going they've super even because to partner. and taken open type even new meaning they're Spain. excited working down locked region excited awesome from think not don't be know lockdown. if but very thing, I of we locked we're house yes, aggressive So and But COVID an leaving and like for more a they're because yet, the time, they've been through they've home a some gone it is

That’s great. Thank you.

Thanks. great. Okay,

think have more. time we for I one

question from final the today Mehta our And comes of Kartik Research. Northcoast from line

Your is open. line

a you month But come something a and talking want $X make anticipating. of were are just And decline I Thanks. still I talked far... you that about so million thought to understood I quarter. that which lot because to month you hasn't trend sure on during I last same think already, Obviously, but said the Tom, I the volume you were cost know about you fruition.

the reference back terms kind You're I the think $X of in point. from question picking but trends just out, and in million got of moving up I expense and

QX. When XX% what think restore regardless at some we which you during you on that I period-over-period period we expenses actually still on that. absolutely look say results, expense our we pick, the can is delivered in reduction. We that and of delivered delivered did quarter on

by outcome. and we furlough activities So where as to back I'm bring places people bring markets. pleased different them needed in increase were saw volumes some of that we There our and in resume off call

and that more necessarily that is our specific delivering long-term some we'll target to a continue focus some going while of I focus. and shareholders, profitability what the that's around that days. for to our right of that not hanging the that we're on with a margin, we think, the particular will to improving making expenses we I early because, that million means prudently going $X forward margin make restore kind still sure business sure was expense if we're do And and say need to what is give managing we're think back to

there's additional give forward, that in staff multivariable that my both number right million going annualized opportunity. an I and $XX number million, to million opportunity a the But think, and for think on be on still be basis. going to As non-staff the have annualized mentioned the delivering think on is on what a I side. margin would permanent savings $XX equation is shareholders. based or We That $X I basis, an mentioned there's comments, take, I

talked the this at where come when all happen, pricing the volumes a it – stand of And today, would like maybe change participate have you prices or acquisition people to initially we today pandemic so acquisition. in acquisition you know I seemed down But Jim, then, desire seen happened And trends about initially coming were because a deal? in – up aggressively.

good a Kartik. question, That's

for take think happened. event. hope a a I I extent, already as in XX return it It's mean seller a think the I seller, normal. I were desperate, onetime this us, will I view. think is but buy And a they're a – as like like look unless the horrific, this – I that would I was to view desperate, that and mean, queue, life January, something I it event, has permanent the price at I just at think that's use onetime some a that unless surprising it's the business in it's deals to pandemic this people think a or would super they're June July to there's seller trying similar a in impairment find very just mentality, or that you if trailing but

I So going to not don't seller. more type not I to is it a don't maybe a of anticipating material mean to, have prices a XX%," down that maybe pay some around they yes, is a you to somewhat. structure Maybe simply But I'm your just going a Maybe but – don't – – of think I'm changing be fan earn-outs, is say, big you "Oh, think you there's somebody of be deal. component. way, how because of think there's in we're more volume unless going I less to I

I much. Thank very you appreciate it.

thank right, All Kartik. you,

closing no questions back remarks. turn to I'll have the in presenters further We queue. for

you and and joining morning continued our Thanks, thank all operator, call for your this EVO. in interest

call. gentlemen, participating. today's this you Thank and Ladies conference concludes for

now disconnect. You may