MoneyGram International (MGI) Q3 2021 Earnings Call Transcript

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MoneyGram International (NASDAQ:MGI)
Q3 2021 Earnings Call
Oct 29, 2021, 9:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the MoneyGram International third quarter 2021 earnings release conference call. Today’s conference is being recorded. [Operator instructions] It is now my pleasure to turn the floor over to your host, Stephen Reiff, head of corporate communications. Please go ahead, sir.

Stephen Reiff — Head of Corporate Communications

All right. Good morning and thank you for joining us. On the call with me, we have Alex Holmes, MoneyGram chairman and chief executive officer; and Larry Angelilli, chief financial officer. On the MoneyGram Investor Relations website, you can find our earnings press release and presentation, which is intended to supplement our prepared remarks during today’s call and provide the reconciliations between GAAP and non-GAAP financial measures.

We will refer to non-GAAP metrics on the call. The non-GAAP financial measures provided should not be considered as a substitute for or superior to those prepared in accordance with GAAP. They are included as additional clarification items to aid investors in further understanding of the company’s performance in addition to the impact that these items and events had on financial results. Please note that today’s call is being recorded.

During this call, we will be making forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of factors discussed in today’s earnings press release and the comments made during this conference call and in the Risk Factors section of our Form 10-K, Form 10-Q, and other reports and filings with the SEC. We do not undertake any duty to update any forward-looking statement.

And with that, I’ll turn the call over to you, Alex.

Alex Holmes — Chairman and Chief Executive Officer

Great. Thank you, Stephen. Good morning, good afternoon, and good evening, everyone. Consumers are increasingly valuing our digital-first strategy as we delivered another incredibly strong quarter of digital growth and cross-border payment innovation.

Our direct-to-consumer channel MoneyGram Online continue to excel reporting exceptionally strong revenue growth in the quarter of 34%. Total digital, which includes MoneyGram Online digital partners and digital receives delivered record revenue in the quarter of $70 million, putting our digital business on $300 million of new run rate as we exit 2021. Digital transactions now represent 34% of overall money transfer transactions, and we are on pace to achieve our goal of 50% of transactions being digital in 2024. This marks an incredibly rapid transformation of our…