NASDAQ$EEFT

Euronet Worldwide Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Euronet reported mixed results with revenue increase and a net loss, impacted by the Omicron variant and a contract asset impairment.

Euronet Worldwide reported a 15% increase in revenues for Q4 2021, reaching $811.5 million. However, the company experienced a net loss of $3.1 million, or $0.06 per share. The results were impacted by the spread of the Omicron variant and a $38.6 million non-cash contract asset impairment in the Money Transfer Segment.

  • Consolidated revenue increased by 15% to $811.5 million, driven by growth in EFT, epay, and Money Transfer segments.
  • Operating income decreased by 42% to $29.0 million due to investments in network expansion and higher operating costs.
  • Net loss attributable to Euronet was ($3.1) million, or ($0.06) diluted loss per share, compared to a net income of $70.2 million in the same period last year.
  • Adjusted earnings per share increased by 4% to $1.15, up from $1.11 in the prior year.

Headline financials

Total Revenue

$812M

Previous: $707M+14.8%
EPS (adj)

$1.15

Previous: $1.11+3.6%
EFT Processing Segment Active ATMs

42.7K

Previous: 37.7K+13.2%
epay Processing Transactions

854.0M

Previous: 703.0M+21.5%
Money Transfer Transactions

35.7M

Previous: 32.4M+10.2%
EFT Processing Segment Transactions

1.3B

Previous: 902.0M+41.8%
Capital Expenditures

$26.1M

Previous: $26.2M-0.3%
Free Cash Flow

$76.1M

Previous: $6.86M+1009.6%
Net Income

-$3.1M

Previous: $70.2M-104.4%
Operating Income

$29M

Previous: $50.2M-42.2%
Gross Profit

$301M

Previous: $247M+21.9%
Cash & Equivalents

$1.26B

Previous: $1.42B-11.3%
Total Assets

$4.74B

Previous: $4.93B-3.7%
Stock-Based Comp

$10.3M

Previous: $7.45M+37.7%

Revenue & EPS history

Euronet · Revenue · Quarterly

$812M

Q4 2021+14.8%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Euronet · $814M total across 3 segments · Q4 2021

  • Money Transfer
    $363M+9.6%
  • epay
    $287M+3.9%
  • EFT Processing
    $164M+62.8%

Forward guidance

Euronet anticipates its first quarter adjusted EBITDA will be in the range of approximately $75 million to $85 million and expects its full year earnings to fall in a similar range to the earnings of 2019.

Tailwinds

  • Anticipated double-digit growth in epay and money transfer
  • Acceleration of historical tourism trends
  • Recovery of travel from COVID-19 related restrictions
  • REN implementations and new agreements
  • Launch of Dandelion real-time cross-border payment network

Headwinds

  • Lingering effects from the Omicron variant
  • Pressure on EFT transactions
  • COVID-19-related disruptions
  • Lower-than-expected money transfer transaction volumes on certain contracts
  • First quarter is historically the lightest travel quarter of the year

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

+1.0%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+1.1%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+16.2%

Q4 2014

Best reaction

-20.3%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.9%-4.3%-4.3%
Q4 2025-3.3%+0.5%+1.3%
Q3 2025-5.8%-10.4%-17.3%
Q1 2025+3.4%+4.3%+11.5%
Q4 2024-1.5%+9.2%+6.7%
Q3 2024+5.4%+4.7%+8.7%
Q2 2024-5.3%-5.9%-4.2%
Q1 2024-0.3%+5.3%+8.8%
Q4 2023+1.3%+1.6%+9.7%
Q3 2023+9.5%+6.4%+10.7%
Q2 2023-20.3%-24.7%-27.7%
Q1 2023-2.1%+0.0%+2.3%
Q4 2022-3.4%-0.3%-7.2%
Q3 2022+5.8%+6.9%+15.6%
Q2 2022-2.1%-3.4%-7.5%
Q1 2022-5.6%-10.8%-12.8%
Q4 2021+5.4%-0.2%-18.2%
Q3 2021-8.4%-9.1%-18.6%
Q2 2021+2.1%+6.7%-0.1%
Q1 2021-1.9%-2.4%+0.1%
Q4 2020+2.4%+8.1%+17.3%
Q3 2020-3.6%-3.0%+49.4%
Q2 2020+2.3%-2.1%+5.9%
Q1 2020+9.2%+3.8%+9.3%
Q4 2019-6.4%-8.0%-45.8%
Q3 2019-5.1%-3.3%+5.2%
Q2 2019-4.1%-4.0%-7.8%
Q1 2019+1.8%+2.3%+5.9%
Q4 2018+8.3%+10.2%+16.0%
Q3 2018+0.3%-2.2%-1.7%
Q2 2018+11.9%+10.8%+14.3%
Q1 2018+5.5%+3.7%+8.6%
Q4 2017-3.4%-8.0%+2.1%
Q3 2017+3.3%+0.2%-8.1%
Q2 2017+2.8%+4.1%+2.8%
Q1 2017-1.4%-0.8%-0.3%
Q4 2016+6.2%+10.8%+14.0%
Q3 2016-1.0%-2.0%-7.1%
Q2 2016+6.0%+5.3%+6.8%
Q1 2016+3.7%
Q4 2015-8.7%
Q3 2015+7.0%
Q2 2015+4.7%
Q1 2015+4.4%
Q4 2014+16.2%
Q3 2014+8.9%
Q2 2014+8.6%
Q1 2014+5.8%
Q4 2013-10.5%
Q3 2013+1.8%
Q2 2013+9.6%
Q1 2013+5.8%
Q4 2012-2.4%
Q3 2012-0.6%
Q2 2012+5.2%
Q1 2012+1.8%
Q4 2011-2.2%
Q3 2011-1.3%
Q2 2011-0.9%
Q1 2010+1.1%
Q1 2011-1.7%
Q4 2008+2.0%
Q4 2010+2.0%
Q3 2010+0.1%
Q3 2009+0.1%
Q2 2010+1.6%
Q2 2009+1.6%
Q4 2009+1.6%

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