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EVO Payments, Inc. (EVOP)
Q3 2018 Earnings Conference Call
Nov. 7, 2018, 8:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good morning and welcome to the EVO Payments Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. If anyone should require operator assistance, please press "*0" on your touchtone telephone. As a reminder, this conference call may be recorded. I would now like to turn the conference over to Ed O'Hare, Senior Vice President, Investor Relations. You may begin.
Edward O'Hare -- Senior Vice President of Investor Relations
Good morning. Welcome to EVO Payments' Third Quarter Earnings Conference Call. This call is being webcast today and a replay will be available through the Investor Relations section of EVO's website shortly after the completion of this call.
Please note that some of the information you will hear during our discussion today will consist of forward-looking statements. These forward-looking statements are based on currently available information and actual results may differ materially from the views expressed in these statements. For additional information on factors that may cause our actual results to differ from the views expressed in any forward-looking statements made today, please refer to our earnings release and the risk factors discussed in our periodic reports filed with the SEC, which are available on our website.
In an effort to provide additional information to investors, today's discussion also includes certain non-GAAP financial measures. An explanation and reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures can be found in our earnings release available on our Investor Relations website.
Today, we will discuss our third quarter 2018 performance. Joining me on the call today is: Jim Kelly, Chief Executive Officer; Kevin Hodges, Chief Financial Officer; Darren Wilson, President, International; and Brendan Tansill, President, North America. Now, I'll turn the call over to Jim Kelly.
James Kelly -- Chief Executive Officer
Thanks, Ed. Good morning and thank you for joining us for our third quarter earnings call. We are pleased to report another solid quarter, as the company delivered 11% constant currency revenue growth, resulting in 13% constant currency adjusted EBITDA growth. These accomplishments are the result of strong transaction and merchant growth trends within our U.S. and European tech-enabled channel coupled with continued high growth from our direct divisions in Mexico and across Europe.
Our strategy propelling this growth remains the same. First, we invest in new and existing high-growth markets and sales channels by building long-term distribution through alliances with leading financial institutions, ISVs, B2B relationships, and e-commerce partners. Next, we develop leading products and service solutions that meet our customer needs. And then, finally, we have laser focus on operating leverage and efficiency.
In executing this strategy, we continue to focus on expanding our in-house, tech-enabled product capabilities to support the strong growth coming from our U.S. and European ISV relationships and our U.S. software dealer network.
In the third quarter, we added 150 new ISV and dealer relationships across North America and Europe, along with key vertical markets, including hospitality, unattended, retail, and field services. We also relocated our former Sterling ISV division offices into a new Tampa-based facility.
During the quarter, reported revenue from our U.S. and European tech-enabled divisions grew 15% and 20% respectively. European growth was propelled by our new and existing ISV partners, primarily in Poland, Spain, and the UK. We remain very excited about the growth we have sustained in our European markets and believe Mexico will also continue this trend in 2019 following the recent launches of our Snap platform and e-commerce gateway. Both platforms allow merchants and partners access to EVO's many markets through a single, seamless integration.
Turning to our direct channel, we continued solid constant currency revenue growth in the third quarter in our largest international markets, including Mexico at 21%, Poland at 19%, Spain at 12%, and Ireland and the UK at 24% compared to the prior year period. This growth is the result of our strong long-term, exclusive bank partnerships, focused execution by our sales and operation teams, and the product solutions we've developed to meet our customer needs. Unlike our U.S. markets, where our focus is primarily small to medium-sized businesses, our international acquiring markets benefit from a broad mix of merchants, including large, national, and multinational businesses and organizations. This wide array of merchants reflects the customer base of our leading bank partners, who generally have a broad range of customers.
Moving to our integration efforts, we are pleased to announce that we have completed two merchant portfolio migrations totaling approximately 40,000 merchants since our last call. The first is the ongoing migration of our Banco Popular portfolio in Spain. We have now converted over half of the portfolio to our European processing platform. This rehosting effort will allow us to offer our merchants an array of proprietary products which were previously unavailable on the legacy system, reduce our processing costs by leveraging our in-house European platform, and provide better control over merchant pricing. We anticipate the remaining Popular merchants will migrate during the first half of 2019.
The second portfolio migration occurred here in the U.S. as the result of the Sterling acquisition. We have now completed the full integration of Sterling into EVO, which will provide our ISV and B2B business units and their customers access to additional solutions not found on the legacy Sterling platform and to lower our operating costs.
In addition to the two platform migrations, we announced the consolidation of our German administrative, accounting, and IT functions into Warsaw. Previously, we had migrated the German systems into our European data center. However, the support functions remained in Cologne. The German office will now align with the structure and strategy of our other European markets, where we have merchant-facing activities in-country. The migration is expected to be completed in 2019, with savings to be realized beginning in mid-2019 and fully in 2020.
Finally, I'd like to share an update on the three acquisitions we made since the last call before discussing the bank joint venture and alliance we announced yesterday.
The first acquisition, announced at the end of September, was Federated Payments, a minority-owned subsidiary of EVO from 1999. EVO was the initial investor in Federated and had supported its processing and growth strategies since inception. This acquisition followed seven previous EVO subsidiary buyouts made over the last five years. As such, integration efforts are limited and we are gaining synergies quickly by eliminating duplicate support services. To date, we have completed the integration of the sales team and will relocate the staff into our existing New York facility by January. By year end, we will have migrated Federated's support services to our Dallas offices.
Then on the technology side, we made two acquisitions. The first, Galaxy Pay, will provide us in-house gift card and other solutions designed to better support our ISV and direct groups domestically. Prior to this acquisition, we relied on third parties.
The second tech-related acquisition was ClearONE, as ISV integrator with capabilities very similar to our Snap platform. This acquisition will integrate into Snap for connectivity, allowing its ISV European partners access to our global markets. ClearONE also provides EVO with over 100 new ISV relationships from which to market. The ClearONE platform currently has POS integrations to merchants that include Burger King, Nespresso, Lacoste, and Sunglass Hut, just to name a few. The integration of ClearONE will also bolster EVO's ISV technology team in Europe to ensure we are supporting the unique needs of each country in which we operate.
Finally, last night we announced a new 10-year bank alliance and JV with EuroBic in Portugal. This alliance includes an exclusive referral agreement in which EuroBic will refer merchants to the JV from the bank's network of 200 branches and its corporate and treasury management groups. Once finalized, EuroBic's merchants will migrate to our European platform, enabling us to provide them with our market-leading solutions. Pending regulatory approvals, we estimate the transaction could be finalized by the middle of 2019.
Beyond these announced transactions, we remain committed to sourcing new opportunities with financial institutions and tech-enabling partners in existing and new markets and regions. Overall, we are pleased with our results and remain very excited about the future growth of the company.
Kevin will now cover the financials in more detail. Kevin?
Kevin Hodges -- Chief Financial Officer
Thank you, Jim, and good morning, everyone. EVO delivered another strong quarter, with results in line with our expectations. For the period, we reported revenue growth of 9% compared to the prior year, or 11% on a currency-neutral basis, with acquisitions contributing to 1% of that growth. For the third quarter, adjusted EBITDA on a currency-neutral basis increased 13% to $38.4 million, compared to $34 million in the prior year. Currency-neutral adjusted EBITDA margin increased 40 basis points in the quarter. Pro form adjusted net income was $14.2 million for the quarter, reflecting growth of 98%. Our adjusted results exclude share-based compensation costs, restructuring costs, acquisition-related intangible amortization, M&A transaction, and integration-related items.
Looking at our North America segment, revenue in the quarter increased 6% over the prior-year period on a reported basis and 8% on a currency-neutral basis. Within the segment, our U.S. tech-enabled division grew 15% compared to the prior-year period and represented 52% of our U.S. revenue. Growth in North America was also propelled by 21% growth in the direct division in Mexico. The high growth in Mexico was impacted by strong consumer spending following the July presidential election, coupled with earthquake-related softness in the prior year. These increases were mitigated by an expected 9% decline in the U.S. direct and traditional divisions.
On a currency-neutral basis, our revenue per transaction in North America increased 3% in the quarter. Segment adjusted EBITDA for the quarter was $25.2 million, an increase of 10% on a currency-neutral basis. North America adjusted EBITDA margin improved 64 basis points in the quarter. This improvement reflects the benefit of our operating efforts resulting from integration efficiencies.
Turning to Europe, we saw strong performance out of this segment as well. Segment revenue in the quarter grew 13% over the prior-year period on a reported basis and 15% on a currency-neutral basis. Our revenue per transaction in Europe decreased 6% in the quarter due to the growing number of large merchants performing well in the market. We saw third quarter European tech-enabled revenue grow 20% versus the prior year, predominantly driven by activities in Poland.
Segment adjusted EBITDA for the quarter was $18.9 million, an increase of 12% on an adjusted basis and an increase of 14% on a currency-neutral basis. For the quarter, adjusted EBITDA margin was 28.9%, which was flat compared to the prior year. As discussed last quarter, we made investments in the prior year which have begun annualizing in the second half of 2018. Absent these costs, adjusted EBITDA margins would have increased 300 basis points to 32.1%.
Turning to our corporate expenses, adjusted corporate expenses grew $300,000.00 to $5.6 million for the quarter, due to expenditures related to our additional public company costs, including audit fees, D&O insurance, and other related items. Our adjusted results exclude $2 million of net expenses, which include $4.7 million related to M&A transaction and integration costs, $3.9 million due to employee termination expenses, and $2 million attributable to share-based compensation expenses, totaling $10.7 million. Offsetting these expenses is a gain of $8.7 million related to the Federated acquisition.
Consolidated net loss attributable to EVO Payments, Inc. was $27.4 million for the quarter, resulting in $1.51 of basic and diluted loss per Class A share. On a pro forma basis, reflecting adjustments described in our press release in all share classes, pro forma adjusted net income per share was $0.17. At the end of the quarter, our basic share count was 18.2 million, which represents the weighted average Class A common stock outstanding. Including all share classes and diluted securities, we had 82.4 million shares outstanding.
In the third quarter, we spent $13 million in capital expenditures, of which $5.4 million was related to point of sale terminals, mainly in Poland and Mexico.
In this quarter, we successfully completed a follow-on offering of 8 million shares of Class A common stock, including 7 million shares sold by existing shareholders and 1 million new shares. Proceeds to the company of approximately $25 million from the new share issuance were used to pay down existing debt on our credit facility. We ended the quarter with net leverage of 4.6 times adjusted EBITDA. As you may recall, we were at 6.4 times adjusted EBITDA prior to the IPO.
In addition, due to our refinancing and debt pay-down activities, interest expense declined 34% in the quarter. Free cash flow, described as adjusted EBITDA less capital expenditures less net interest expense, was $15.3 million, an increase of 67% over the prior-year period.
As Jim mentioned earlier in the call, we announced the signing of a 10-year bank alliance and joint venture with EuroBic in Portugal. EVO will own just over 50% of the joint venture and will have operational control and will consolidate the JV's financial statements.
For 2018, we are updating our guidance. Based on recent trends, completed acquisitions, and changes in FX, we now expect revenue to range from $561 million to $567 million, reflecting growth of 11% to 12% over 2017 reported results and 10% to 11% over currency-neutral 2017 results.
Adjusted EBITDA is now expected to be in a range of $143 million to $146 million, reflecting growth of 12% to 14% over 2017 adjusted EBITDA and 11% to 13% over currency-neutral 2017 adjusted EBITDA. Adjusted EBITDA margin is now expected to range from 25.5% to 25.7%, reflecting growth of 25 to 45 basis points over 2017 currency-neutral results. We expect adjusted EBITDA margin to continue to improve as we annualize certain costs related to investments in our European segment. Excluding these investments, year-over-year margins would have increased 95 to 115 basis points.
Net loss attributable to EVO per share is now expected to be in a range of $0.59 to $0.53 and pro forma adjusted net income is expected to range from $0.47 to $0.52 per adjusted diluted share. The Class A shares outstanding and the number of fully diluted pro forma shares include the increase from our secondary offering.
We are very pleased with our third quarter results. I will now turn the call back over to Jim.
James Kelly -- Chief Executive Officer
Thank you, Kevin. I will now turn the call over to the operator to begin our question-and-answer session. Operator?
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, if you have a question at this time, please press "*1" on your touchtone telephone. If your question has been answered or you wish to remove yourself from the queue, please press "#". Again, if you have a question at this time, please press "*1". Our first question comes from the line of Tien-Tsin Huang of J.P. Morgan. Your line is now open.
Tien-Tsin Huang --J.P. Morgan -- Analyst
Thanks. Good morning. Good quarter. I wanted to ask on the outlook first. Just with a lot of moving pieces with FX and acquisitions, can you attribute those factors in what drove the guidance revisions? Maybe break it up for us a little bit?
James Kelly -- Chief Executive Officer
Maybe Kevin and I will do this together. I think you can see from what we outlined for both segments that we are pleased with the performance on the top line and bottom line for the business units as we described. I think the biggest variable, because 65% of our revenue is outside the U.S., the election just occurred last night, it's still early to see what the effect is going to be on currency. Although I understand maybe the Euro just strengthened a little bit this morning. So, fortunately or unfortunately, that's probably our biggest unknown is where the FX goes. It has been a strengthening dollar more recently. When we went public, it was much less about the dollar. The dollar had weakened against the currency going into the IPO.
So, I think the core business itself, we feel very good. Europe's having a very, very strong year. Mexico is having a very strong year. Our ISV business, our B2B business, our tech-enabled group continues to do well. We have some work to do still but we are starting to see some efforts that were put into place this year to help turn our U.S. direct business. As we said in the prepared comments, Spain is doing well at 12% growth. And then the acquisitions that we've made in the quarter, both on the tech side and then just the strategic, moving into a new market in Portugal -- the core business, we feel great about. The FX, out of our control, but we feel like that will sort itself out over time.
Kevin, do you want to update any more?
Kevin Hodges -- Chief Financial Officer
Yeah. I mean, I think it's as Jim said. It's sort of the over-performance we've been seeing coupled with the acquisitions, primarily the Federated acquisition that we completed at the end of the third quarter. All of that over-performance is offset by just the FX trends that we are witnessing over the past couple of weeks.
Tien-Tsin Huang --J.P. Morgan -- Analyst
Understood. Thanks for that. And then just as my quick follow-up, maybe for you, Jim, just on the Portugal JV with EuroBic. How impactful do you think this could be in the mid-term, if you put your efforts into it? How do you see that evolving? Maybe just a quick update on how the pipeline is maybe evolving for you with future deals. Thanks.
James Kelly -- Chief Executive Officer
Sure. So, Portugal, the bank is a privately held bank so we were limited on financial disclosure. I've done this many times previously when meeting with investors. We describe the M&A opportunities for the company in terms of baseball terms. So, singles, doubles, triples. And I think this is a solid single to double. There is a market that is largely untapped by competitors like ours. Global is in with Caixa, I think, a year ago, through the Caixa JV. But we feel that the business itself is already growing at 14% transaction growth. It's got 20-odd-thousand merchants.
The bank, in particular, through the process, it was a competitive process. And then it was the normal process of getting the contracts taken care of. But they are very engaged in a launch. Sometimes after you buy one of these things, just there's a bit of a lull as everybody retrenches and gets the work done that they had been putting on hold. But in the case of this bank, they're very excited about integrating into our platform, getting the merchants moved from the central processor to our platform. Those are all very good signs.
So, I think for the region, which for us would be Spain -- we now would have four relationships between the two in Spain plus the acquisition we just made with ClearONE and now EuroBic. And so I think for the region, it's going to be a great boost for us. Overall, I wouldn't say it's overly material because otherwise we would have disclosed all of the pertinent information. But they're very excited about our DCC capabilities, about e-commerce that we'll bring to the market through the IPG acquisition we made last year. And ClearONE is already in the market, as I mentioned. Burger King, they have a number of franchises across the peninsula that cover both regions. So the timing really worked very well for us, having the ClearONE together with Portugal happen essentially at the same time.
Operator
Thank you. Our next question comes from the line of Bryan Keane of Deutsche Bank. Your line is now open.
Bryan Keane -- Deutsche Bank -- Analyst
Hi, guys. I just want to ask about some of the investments that do wind down in Europe and some of the platform consolidations, just on the exact timing on that and where we will have -- exactly when will the margin start to rise as a result of those going away.
James Kelly -- Chief Executive Officer
Well, unfortunately, as we continue to buy, we continue to have to convert. So, I'm not sure, Bryan, it ever really ends. So, we'll continue to see it move up. The largest one -- I guess the largest two. One is really not a platform consolidation but as I mentioned and Kevin covered in his comments, Germany, which was really our first transaction, we migrated systems to Poland but we never made the effort because of other things that we were working on to move the administrative functions.
Our strategy in Europe is really hub-and-spoke to move essentially the back office, non-customer facing, and the processing/product development out of Poland and then countries like Spain, Ireland, UK, Portugal, they would be customer-facing sales and customer service. So, Germany, as I described, we'll see part of the effect next year, full effect the year after. That is fairly significant. I think there's something in the neighborhood of 40 FTE that will exit the business as a result of that consolidation without an incremental add in Poland.
And then on the processing side, as I mentioned, we've been moving the Popular portfolio in waves as opposed to doing them all at the same time. There's a number of systemic reasons why we've chosen to go that direction. So, I think we've moved about two-thirds of that portfolio. We have about one-third to go. We're about to start the migration. Unfortunately, a different platform in Spain but we're about to migrate the Liberbank portfolio, which is another 20,000 merchants. That will pick up steam, I would say by the beginning of the summer. So maybe by the end of '19.
And then Portugal, we don't know exactly when Portugal will close but we're guessing right now, since there's not been a lot of these transactions in the country, by summer. But as I mentioned earlier, they're very engaged so we could probably have that done within, say, 12 months, which is generally what it takes start-to-finish once we have the requirements to get a migration done.
So, I think from an investor's standpoint, I think you'll just see continued movement up, as we said when we went public, 50 to 75 basis points. That takes into account primarily just the growth of the business but it's going to be aided from time to time by these conversions. And then in the U.S., we just completed about two weekends ago the Sterling migration and we'll start to see the benefit of that in the fourth quarter, a little bit, I guess, in November-December, and then you'll see the full effect next year. And as Kevin mentioned in his comments, we would have seen a 300 basis point improvement in Europe had it not been some pre-IPO investments we made in the European infrastructure.
Kevin Hodges -- Chief Financial Officer
And those investments, we started to see those annualize. Year-over-year European margin was flat in the quarter and then as we annualize those, we'll see that margin expand in the fourth quarter.
James Kelly -- Chief Executive Officer
We'll continue, as I mentioned -- I don't know if I finished Tien-Tsin's last question. We'll continue to make investments on the two fronts that we're most focused on: financial institutions outside the United States for the reasons we've stated in the past and then tech-enabling type of transactions similar to what we did with ClearONE, where we're not entering the software development business but we're working with people that enable those point of sale solutions. So, we'll continue to see margin improvement because our strategy is to also leverage the fixed infrastructure. We own and process our platforms in-house so we get the benefit of moving them as quickly as possible. And as I said, it's a laser focus for the company to drive those margins up.
Bryan Keane -- Deutsche Bank -- Analyst
Got it. That's helpful. And then I was just going to ask on revenue per transaction in Europe. It declined about 6%. Anything to call out there or is that just mix of the business?
James Kelly -- Chief Executive Officer
Yeah. I think if you remember when we were together a couple of months ago at your conference, that was a question that came up and I didn't really give you a good answer. I kind of pushed it to the side. But I appreciate the question and understand, given the amount of information we have available in the market, it begs the question. And so in the script this time and going forward, we'll talk about it.
And it is just simply mix. We have a different portfolio outside the United States than we do inside the United States. Inside the United States, it's predominantly in SME. There's 7 million merchants in the U.S. We don't align with large financial institutions. We have one, Deutsche Bank, but Deutsche Bank is not a material player in the retail business in the United States.
But outside the U.S., for example, in Mexico, Costco is one of our customers. Soriano. A number of big retailers. The same in Europe where we have, I think, four of the top five petrol companies in Poland. And, therefore, as those companies, as they grow, it'll make it look like our margins or our revenue per transactions are coming down. It's just simply a mix. It's not a systemic issue with the business. But the guy who runs Europe is in front of me. So, I know you want to add something, Darren.
Darren Wilson -- President, International
Also, we're just seeing a huge continued growth from cash to card and especially contactless digital payments. So, obviously, the average transaction value for contactless is capped at 30 euros or 30 pounds in the market so that growth in contactless, in terms of smaller transaction values, is also just having a factor in the mix as well.
Bryan Keane -- Deutsche Bank -- Analyst
Okay. Got it. Congrats on the strong quarter.
James Kelly -- Chief Executive Officer
Thank you.
Operator
Thank you. Our next question comes from the line of Andrew Jeffrey of SunTrust. Your line is now open.
Andrew Jeffrey -- SunTrust Robinson Humphrey -- Analyst
Hi. Good morning, guys. Thanks for taking the question. Jim, can you elaborate a little bit on the Sterling integration now that it's complete and how you think that could potentially, if you think it potentially accelerates U.S. tech-enabled growth, which I know has been very good. But I wonder if you could just dig in a little bit on the benefits of having that done now.
James Kelly -- Chief Executive Officer
Sure. So, Sterling, to some extent, was very unique for us because we typically don't buy our competitors. I don't look at buying a financial institution portfolio of merchant accounts as really a competitor because, typically, like in the case of Portugal, it's a brand new country for us. Sterling was a business very similar to ours, in terms of its makeup. It didn't have a full suite of product solutions so it only had a back-end. It did not have front-end processing. But if you lined up their headcount and functions against ours, there was a lot of overlap. And so Brendan, who runs North America, and the team very aggressively early aligned the functions that were entirely redundant. And then the piece that was left to be done was what I described earlier, being the processing side of it. That has just finished.
And, clearly, it is going to be a benefit because -- the first is we were running an ISV business before we bought Sterling. So we had our group of sales people and merchants in ISVs and they were all integrated through Snap and through the rest of EVO's infrastructure and that's how we did business. So we had a team of people supporting I don't know how many thousands, but a significant number for our size, relationships. And then Sterling went to market through a network of dealers. Some direct, but predominantly dealers. And they went to market with a whole different set of boarding systems and processes, etc. So, what we have been able to do now is homogenize it to one set of how we go to market and that is based around EVO's infrastructure.
So, it eliminates a lot of costs but it also makes available to Sterling's customers a broader set of reporting tools or processes that were not available. And it gives a different level of focus than I think was there previously, just given EVO's strategy over the last five years to make this a material part of our business. It's now over 52% of our U.S. business is tech-enabled. Three years ago, it was nowhere even close to that. So, the integration has just happened so we'll have to see how that plays out into the next year.
But our relationship with the dealer network, in particular, this new facility that I mentioned -- previously, Sterling was a privately held company and there was not a lot of spend on physical plants and infrastructure. They're in a brand new building. Actually, we just hosted a dealer forum for one of our larger ISV relationships last weekend and Monday, Tuesday. Very well attended, very well received. And our interest is to provide high-quality service to this segment as opposed to just the lowest price in the market.
Andrew Jeffrey -- SunTrust Robinson Humphrey -- Analyst
Okay. Thank you for that. And could you just comment quickly on how you expect the legacy U.S. business to perform over the next 12 months if we start to see those declines?
James Kelly -- Chief Executive Officer
Yeah. So, the 48% of the U.S. business is what was here at EVO when I joined in 20 -- whatever I joined. '11? '12? And for a very long period of time, it had been a very fast-growing business but as the market has matured and ISVs have become front-and-center in the U.S. and the pool of merchants that are addressable for just kind of traditional terminal and point of sale, not ISV, has gotten smaller and maybe the competitors haven't left, I think it's become a more difficult market for everybody who plays in it.
Having said that, though, our U.S. business is a combination of a number of business units that were started by EVO. Federated being an example of one that we just acquired and we had made seven other acquisitions. So when we look at our direct business, I really look at it as those seven different businesses. Not all the initial investors in those businesses are still with us but that's how we look at it. We have made some personnel changes. We have rearranged the deck a little bit. And several of those businesses -- I would say half of those businesses are growing, some in the high single to double digits, others in the mid-single digits.
Unfortunately, a large segment of our direct business -- and, again, of the 48%, about half or two-thirds of it is what we call direct and then a third is called traditional. So, I think the direct business will return to growth. Whether it happens in '19 or '20, I think it's a very good chance we could see the decline that we've seen to-date abate because there's still 65% of 7 million merchants out there that need to be serviced. And we're not that large in the U.S. And we have the data to show us that some of our acquired business units are growing and growing very well. So I think part of it has been execution on our part and we can fix that.
On the traditional piece, that is in a low-teen decline and that largely represents merchants -- a portfolio of merchants who were referred to us by businesses that no longer do business with EVO. So that is a run-off business. It's very profitable so we're not going to close it. But I don't see that changing. I think the course is basically normal attrition. So, the direct business, which is, again, two-thirds of the 48%, we see that now as mid-single digits decline. We see that returning to growth coming out of '19 into '20, maybe a little bit earlier than that. And then the traditional business will continue to be a decline and at some point, as EVO just gets that much bigger, we probably won't need to talk about it any longer.
Andrew Jeffrey -- SunTrust Robinson Humphrey -- Analyst
Very helpful. Thank you.
Operator
Thank you. Our next question comes from the line of George Mihalos of Cowen. Your line is now open.
George Mihalos -- Cowen & Company -- Analyst
Good morning, guys, and congrats on a very nice quarter. I just wanted to start off with the strength that you saw in Europe again. Relative to your expectations, was there a specific region that outperformed that kind of led that upside? And then tied to that, when you look at some of these growth rates -- I think Poland high teens, Spain low teens, UK over 20% -- is there anything there that is running off over the near-term that will cause those growth rates to maybe come in?
James Kelly -- Chief Executive Officer
So, one of the reasons we broke it out was just for that reason, just to show you how strong Europe is and it's not localized to just Poland. Now, we told you at the beginning of the year that Poland was benefiting from what they call terminalization or fiscalization, where supposedly 600,000 terminals will be placed in the next three years and we're 42% of the market and we're holding shares that the program is rolled out. That has slowed. So, 19% growth in Poland will probably abate somewhat to the mid-teens, where it has been historically. When you're 42% of the market, it's hard to grow faster than the market but right now, there's an anomaly that should be in the market for several years.
UK, Ireland, these are, relative to Poland, smaller businesses, but the execution there by the guys that run it, Andy and Brian, respectively, they have just executed extremely well. Remember, we only launched as a start-up in 2013 or '14 in Ireland and we're today 25% of the market. We didn't have a back book. It wasn't like Portugal where we bought the business. That business was run by Elavon. We replaced Elavon with Bank of Ireland. So it's really been execution. I don't see Ireland slowing down anytime soon. And the UK, we only see that accelerating. That business is almost entirely focused on ISV penetration in the UK market. We've exported some of our U.S. ISVs to that market. And ClearONE will also help propel that.
I guess the one market that was a challenge going into this year and the end of last year was Spain, given the sale of Popular and the fact that Popular's business had declined pretty substantially prior to the sale. I think the turnaround, if you want to call it that, we had a very positive sales launch with something there in the spring called "1, 2, 3." You open up an account at something there, it was as easy as 1, 2, 3. And a part of the program was holding deposits and part of that program was participating with and acquiring a terminal. So, we're very pleased at the execution there. And at the same time, the guy who runs that business, Jaime Domingo, also made three acquisitions: ClearONE, Liberbank, and now Portugal.
So, I think Europe sets up really good for next year. And one market I don't think you asked on, which was Mexico, also had a very, very strong 20% growth. That's a very underpenetrated market at 20%. So we, again, see that market continuing to do well. I think it was a little bit better than normal because we had the hurricane -- not hurricane.
Kevin Hodges -- Chief Financial Officer
Earthquake-related softness in the prior year.
James Kelly -- Chief Executive Officer
The year before. So that should be a 12% to 15% growing market but we're just happy to benefit going into this year. So, across the board, we feel really good about everybody.
George Mihalos -- Cowen & Company -- Analyst
That's great color. I appreciate it. And maybe just to shift gears a little bit to the U.S. I know a lot of the hospitality focus with some of the acquisitions, with Sterling and the like. I'm just curious what you're seeing. Competitively, that's a vertical that a lot more of your competitors and your peers have been talking about. Just curious if you're seeing anything different in the marketplace there. And, again, congrats on the quarter.
James Kelly -- Chief Executive Officer
Thank you. I'm going to actually ask Brendan to do this with me as well. He runs North America. That business reports into him.
Brendan Tansill -- President, North America
Yeah. George, thanks for the question. We have not seen any materially different behavior from any of our competitors. Sterling, as you highlight in your preamble, continues to be largely focused on hospitality but I can tell you it's a huge source of emphasis of all of us to diversify away from hospitality and focus on a number of other verticals. Throughout the balance of EVO's business, setting aside Sterling, though, you would see that we are entirely diversified with no real concentration in any one vertical specifically. That would apply to e-commerce. I guess, e-commerce would largely be SME retail. The B2B business is entirely diversified and then, as I say, the legacy EVO direct business is largely diversified, I suppose with some concentration in SME retail.
But in terms of the path forward, clearly, on the ISV channel, we are trying to get away from the restaurant and hospitality sector, just because, as you point out, that's the most mature segment in the market and there's a lot of areas that we see tremendous growth opportunities.
Operator
Thank you. Our next question comes from the line of Bob Napoli of William Blair. Your line is now open.
Robert Napoli -- William Blair & Company -- Analyst
Thank you and good morning. Hey, Jim and team, Kevin. The U.S. business, can you remind me what size the direct and the combination is of the North America business today?
James Kelly -- Chief Executive Officer
The U.S., it's 48% and of that 48%, two-thirds is direct. That's the business that we directly solicit with our employees and customers.
Robert Napoli -- William Blair & Company -- Analyst
And Mexico is about 20% of the company?
James Kelly -- Chief Executive Officer
No, that's U.S. And then Mexico and the U.S. are about 50/50 or pretty close, depending on where the peso goes, in total revenue. And Mexico is almost all direct. There's some e-commerce. It's very small. We're just launching our platform now, this quarter, fourth quarter. And on the ISV front, big expectations for growth coming into '19 because it exists there too. We just haven't yet found the right model to be successful yet.
Robert Napoli -- William Blair & Company -- Analyst
Thank you. And then you guys have been awful active on the M&A front. First of all, what are your thoughts around -- do you continue to have a pipeline? And you're comfortable, as you mentioned, your leverage has come down substantially from prior to the IPO. You did have a target of lower leverage but I think the market probably wants you -- we like to see you do good deals. Do you have a pipeline? Should we expect to continue to see these smaller tuck-in deals? And just how competitive are those bank partnerships?
James Kelly -- Chief Executive Officer
Okay. So, as I mentioned in my comments -- and that was the reason I did. I know we bought a lot of things this quarter. Many of these were in play when we went public so we knew this was coming. You just never know when exactly that it's going to close. I guess I'd divide, as we look at it, as bank partners and then on the tech side.
For bank partnerships, they come depending on what's going on in the world. So, raising capital, banks will look to sell and that's what EVO benefited from post the crisis in, say, the '11, '12, '13, '14 time period. Today, it's more about what do you have to offer us. How can you help our business be more relevant or more defensive, on the competitive front, from e-commerce, ISV, etc.? So, we, probably like others, but we're still seeing a very active audience, pipeline, however you want to describe it.
Not just in the regions that we currently sit, which would be Europe, but South America continues to be a very big focus of ours, largely because I think it's ready. Is it ready this year? Is it ready next year? I don't know exactly when it's going to be ready for us but we are going to be there and we're going to put our best foot forward to try and build relationships with financial institutions to move into the market because it gives us resources, people, it gives us merchant accounts at the start, it gives us a bank brand to work from as opposed to trying to move into a new market under the name EVO.
And then Asia Pacific, we haven't yet moved into that market but we've continued to look in the region and I think that region, as well, will see some opportunities in the coming year or so.
But in terms of the company's strategy, I would say half of what we do, the managers who run the company, from the GMs in the country to Darren, Brendan, myself, David Goldman, who runs M&A for us, Kevin, that's part of our job. Half of our job is to look for those opportunities. For investors, it's a great return because we have the ability to take a look at the back book and see how it's priced. Lots of times, we find merchants priced at a loss. As I've said on the call, we have the synergies that come from moving the processing from legacy system onto our system. And then we have a very deep bench of people, of products, to be able to launch into market and compete against our competitors.
Robert Napoli -- William Blair & Company -- Analyst
Great. Thank you. Appreciate it. Solid quarter and great answer.
James Kelly -- Chief Executive Officer
Thank you.
Kevin Hodges -- Chief Financial Officer
Thanks, Bob.
Operator
Thank you. Our next question comes from the line of Ashwin Shirvaikar of Citi. Your line is now open.
Ashwin Shirvaikar -- Citigroup -- Analyst
Hey, Jim. Hi, Kevin. Good morning. I guess my first question is with regards to tech-enabled growth in other countries. Obviously, you have traction in the U.S. Quantitatively, is tech-enabled growth in other countries different, in the sense that you have to make more acquisitions, like the ClearONE acquisition, to rollout within Europe or other geographies? Could you comment on that?
James Kelly -- Chief Executive Officer
I'll start and I'd like Darren to kind of pick this up since he lives in a market that's evolving into the ISV world. So, yes, in the U.S., ten years ago, nobody was really paying attention to this other than Mercury, maybe Sterling, and a few others. And now everybody -- it is front and center on everybody's roadmap. I think outside the U.S. -- and use Europe as a for instance -- even a market like the UK, it is still very, very early stages. It's not something that's going to be super material but it is going to be super relevant.
A company like ClearONE, as we said in the comments, ClearONE gives us access to 100 integrations overnight. We have the ability, unlike our competitors in Spain, for instance, to deposit merchant receipts into any bank. So we're not -- even though we have an exclusive relationship where Santander has to refer business to us for the next ten years, we don't have to deposit the merchants' receipts into the Santander or Popular account. We could put them into BBEA or Sabadell or any other bank in the market. And that's very powerful for an ISV because an ISV is not necessarily aligned to a bank. It's aligned to its own interest.
So, to find a company like ClearONE who wants to join -- the team has joined -- I was just talking to the GM of Spain this morning and we were talking about space in the office for the team that's relatively small compared to Spain, which is almost 100 people for us. But it's going to give us access to 100 different point of sales that are relevant in the Spanish and Portuguese market that we can then market to their customers. And we can offer them services and products that don't otherwise exist.
So, it is part of our strategy to find companies like ClearONE because they've already done the legwork to build those relationships. As I said on our last call, we're not in the software business. We have hundreds of developers here but they build products and capabilities to enable other people. So, we're in our swim lane. We're not in somebody else's swim lane. And if we can find companies like ClearONE that will help enable our developing our relationships with ISVs and then be a good partner to them, then we're going to see, I think, outsized growth in the market. Darren?
Darren Wilson -- President, International
Thanks, Jim. Hi, Ashwin. Yeah, each European market is obviously moving at a different pace on kind of the ISV world or tech-enabled world. So, we're just seeking to capitalize on every opportunity aligned to the market run rates. That said, when we look at the stable of solutions we have with EVO, with EVO Snap, with the ClearONE acquisition, with Nodus, and the accelerated great work that the IPG e-commerce team is doing as well, in terms of integrating all those tech-enabled solutions, is then finding the white space or the integration opportunity. If it's an ISV that's already in the U.S. that we're partnered with that wants to go into Europe, we're integrating, we're leveraging a U.S. solution to deploy quick into market. And we've that great success in the UK already.
What ClearONE gives us, as Jim's already alluded to, is 100 European integrations. That, also integrated into Snap, also gives us the flow back across the pond into North America. And equally with the e-commerce integration, it gives us the full omnichannel reach. And we also will be looking to exploit the white space in the government or B2B type verticals as well. So, I think we have a good product set. That said, we continue to look at the integration opportunities in each market. Poland, historically, has been a kind of host-to-host integration. So, large corporate integrating into our platform. But as we see Poland being a very digital-focused market, we see the ISV landscape and the tech-enabled landscape being a huge opportunity there too. So, each market will move at a different pace but we're well set up with the right assets to leverage the opportunity in each country.
Ashwin Shirvaikar -- Citigroup -- Analyst
Got it. That's very useful. And sticking with Europe, can you talk about the benefit from the DCC pricing change?
Darren Wilson -- President, International
So, the DCC pricing change in terms of ATMs, you're specifically asking on?
Ashwin Shirvaikar -- Citigroup -- Analyst
Right. I mean, what's your approach going to be in terms of rolling it out? Any comments on timing?
Darren Wilson -- President, International
Sure. So, we support the ATM acquisition through our German business so we have multiple partners, pan-Europe, that we leverage or we supply ATM services to. That's not the filling, supplying of the ATM machines but actually supporting the international card transactions. So, while we focused on leveraging DCC specifically on Europe-focused cards, the international opportunity gives additional bandwidth and upside. So, we'll be live on the go-live date of the pricing changes to leverage those opportunities. We'll always capitalize on scheme change of that nature. There's also some scheme change in terms of e-commerce pricing scheduled for the First of April and, similarly, we're well-placed to leverage on the upside opportunity on the e-commerce channel as well. So, we do see upsides from both these pricing opportunities.
Ashwin Shirvaikar -- Citigroup -- Analyst
Okay. Great. Thank you.
James Kelly -- Chief Executive Officer
We'll see you Tuesday, Ashwin.
Ashwin Shirvaikar -- Citigroup -- Analyst
See you Tuesday. Yeah. Thanks, Jim.
Operator
Thank you. Our next question comes from the line of James Schneider of Goldman Sachs. Your line is now open.
James Schneider -- Goldman Sachs -- Analyst
Good morning. Thanks for taking my question. Jim, maybe if you could just touch on the EuroBic acquisition or JV for a second. Could you maybe comment on, broadly speaking, No. 1, the kinds of merchants and businesses they're touching now and how it would compare with the rest of your European business, in terms of size of merchants? And then talk a little bit about the potential to kind of insert technology into that channel or whether it's going to remain more of a traditional market for now.
James Kelly -- Chief Executive Officer
So, EuroBic, I think, is No. 9 or 10 in the market in terms of size. But on the acquiring side, they're No. 6. Their focus is SME. They'd like to go upscale. They don't have the products to be able to do that so a keen focus of theirs. And as I mentioned, they're already encouraging us to get integrated so that they can, for new merchants, start to sell the Polish platform. All the stuff that Darren's been talking about, that all resides on one platform. And through Snap, we're able to distribute that to multiple markets. So, if you think of tentacles, we've got tentacles that go into Snap and now into ClearONE that all go back to any of the three hosts. The one they'd be most interested in, or that we'd be leveraging, is out of Poland.
So, it'll be larger merchants. They're not necessarily going to compete against the biggest banks in the market just given their size but I think they'd like to get bigger than where they are. Continue to fill out the growth. Their growth is in the teens, which is outpacing most of the market. And we're excited to just be in a new market and in a new market where we can leverage our resources from Spain. So, this is now the hub-and-spoke description that I gave you before. This will be a satellite, effectively, with really just sales that'll be in the market. So, from an earnings standpoint, I think this will be a very accretive transaction. When we get a chance to look at the back book, as we do in all these transactions, and amazingly we find a lot of the portfolio is priced without a real understanding of interchange and we fix that and that's immediate accretion to the JV.
James Schneider -- Goldman Sachs -- Analyst
Thanks. That's helpful. And then maybe a follow-up on margins. You addressed a couple of other questions with respect to platform integrations and I think you noted that, were it not for the European investments, you'd be doing in the range of 100 basis points of EBITDA margin this year. So, I guess my question is, as you go forward into '19, is there an opportunity where you could potentially overdrive margins above the 50 to 75 long-term outlook you've mentioned before?
James Kelly -- Chief Executive Officer
In a word, yes. We gave expectations of 50 to 75. That's kind of normal run rates of just the leverage model of our industry. Not unique to us but we benefit because we try to control as much of our cost -- the acquisition I mentioned, Galaxy Pay, was a tiny little company but it brings in a service that we were otherwise paying by the drink. We don't have to do that any longer. And I forget who asked the question, but one of the earlier questions, as well, around leverage that comes out of these acquisitions, that's another reason that we do them. So, I would like to see -- we're driving margins up 50 to 75 but I would say for next year we should be able to do better than that.
James Schneider -- Goldman Sachs -- Analyst
Great. Thank you very much.
James Kelly -- Chief Executive Officer
Yeah.
Operator
Thank you. Our next question comes from the line of Jason Kupferberg of Bank of America Merrill Lynch. Your line is now open.
Amit Singh -- Bank of America Merrill Lynch -- Analyst
Hi, guys. This is actually Amit Singh from Bank of America Merrill Lynch. Just quickly, for this quarter, what was the organic constant currency revenue growth in North America and Europe?
James Kelly -- Chief Executive Officer
Kevin hasn't had a chance to talk. I'll let Kevin talk.
Kevin Hodges -- Chief Financial Officer
Hey, Amit, how are you? So, overall, constant currency organic, it's about 10%. We haven't broken it out by segment really because the acquisitions were small enough to where they didn't make a material change to the growth rates.
Amit Singh -- Bank of America Merrill Lynch -- Analyst
Okay. Okay. And then as we look at the full year and one of the questions that was asked earlier, what are you expecting ClearONE and Galaxy Pay to contribute to the full-year? And also I know EuroBic is expected to close next year but how should we think about it, revenue-wise, on an annualized basis?
James Kelly -- Chief Executive Officer
That's a really good question. I think what we intend to do is, as we come out with guidance for next year, we'll include the impacts of those businesses. Galaxy Pay is not going to be material. It's not going to be noticeable once we close. Portugal, that's going to have an impact to Europe revenue and earnings growth. It is a size that will matter. I think on ClearONE, ClearONE as it currently sits, is not a material business. The opportunity there is they have customers across those 100 ISVs, plus they give us the opportunity to market to all those ISVs. So, I think what you would see with a business acquisition like ClearONE, because I don't think that'll be the last that we ever do, is an acceleration of revenue growth because of the share shift away from traditional terminals to integrated. Just stylistically, I'd rather just put it all in the guidance instead of try to parse it out in pieces.
Amit Singh -- Bank of America Merrill Lynch -- Analyst
Okay. Okay. Perfect. If I can just sneak one more in, related to the question that was asked earlier, as we are thinking into next year, I know the guidance is not provided this quarter, but based on the talks that you've had about growth in various geographies, is it safe to assume that you can maintain this type of double-digit top-line growth going into next year? And then related to margins, I know you talked about you can exceed your margin target for next year but you continue doing investments and executing on M&A, could that have a negative impact on margin next year as well?
James Kelly -- Chief Executive Officer
Well, just the way we report on a cash basis, as everybody else does, the acquisitions don't have that same type of effect on margin. So, I couldn't say they're all going to be accretive out of the box but most of them tend to be pretty accretive if not very accretive. I think your first question, though, we'll give guidance next year when we get to next year. We're going to finish up this year. We gave guidance for the balance of this year. At this point, that's what we're comfortable with talking about.
Amit Singh -- Bank of America Merrill Lynch -- Analyst
All right. Thank you very much.
James Kelly -- Chief Executive Officer
Yeah. Thank you very much.
Operator
Thank you. Our next question comes from the line of Ken Suchoski of Autonomous Research. Your line is now open.
Ken Suchoski -- Autonomous Research -- Analyst
Thanks. Just going back to the U.S. direct channel, you said that you might be able to start growing this business in 2019 or 2020. Can you talk about some of the specific actions you're taking to improve the growth in that channel? Thanks.
James Kelly -- Chief Executive Officer
Sure. So, as I mentioned, again, just to give the history of the map. So, this is U.S. direct. So, the U.S. tech-enabled is 52% and then the U.S. direct and traditional combined are 48%. And this is roughly -- direct is two-thirds of the 48%. So, in that two-thirds, we have a portfolio of businesses that were really what was EVO before 2010. And we have a mix of businesses that have consistently performed very well, meaning high-single to low-double-digit growth. Traditional doing the same thing as the others in that group of portfolios.
The largest piece in that portfolio, the performance has been poor for a number of years. And we made some changes, management changes. We've realigned some of the business to get better focus on fixing the performance in that business and we're starting to see that. We've brought in a very talented woman, Lauren, who's done a very good job but been here for a very short period of time. Put a lot of energy and resources to it. And we have the empirical data to say that others in our organization are performing in the same market essentially doing the same thing. So, we're seeing a turn. We believe that turn will materialize '19, '20.
It's not a material piece of our business. You take two-thirds of 48% of the U.S., which is -- what is it? 30% of the entire company? So you're talking about a relatively small piece but we don't want anything to slow our growth and this one right now is slowing the overall growth of the business so it is a focus of the company. It's not the only focus but it's getting a number of people's attention, including mine and Brendan.
Ken Suchoski -- Autonomous Research -- Analyst
Makes sense. Thanks. And just a question on the CapEx. It's been running around 8% to 9% and it looks like POS CapEx has been 4% to 5%. How do you guys expect the POS CapEx to trend over time, just given the Polish terminalization initiative is going to continue for the next 2-3 years?
James Kelly -- Chief Executive Officer
Yeah. I think that one's hard to -- this is not a law. This is -- what would you call it? A mandate? A mandate. I don't know what a mandate really means.
Darren Wilson -- President, International
Indication.
James Kelly -- Chief Executive Officer
People should do it but you don't go to jail if you don't do it. So, we'll see how that rolls out. If that rolls out, then CapEx will continue to kind of be in that range. But that range is also going to move up every time we do an acquisition in a market outside the United States that's related to a bank portfolio because the model is the model. Whether we don't really like that model, we'd rather sell the terminals than own them and rent them, but it is a high return. It's just not something we prefer to do. So, I don't see -- I personally don't see that going the other direction any time soon, whether Poland changes or not, because we're going to do more bank portfolio acquisitions is my feeling and those generally will be outside the United States, if not exclusively outside the United States, and, therefore, we're going to have to deal with this terminal model.
Ken Suchoski -- Autonomous Research -- Analyst
Got it. Thanks a lot, guys.
James Kelly -- Chief Executive Officer
All right. Thank you.
Operator
Thank you. And our next question comes from the line of Chris Brendler of Buckingham Research. Your line is now open.
Chris Brendler -- Buckingham Research -- Analyst
Hi. Thanks for taking my questions and congrats on the results. I just wanted to ask on the U.S. side, do you have the pieces you need, in terms of M&A --
James Kelly -- Chief Executive Officer
Chris? Chris? Chris, you're breaking up. So, if you could start that over again.
Chris Brendler -- Buckingham Research -- Analyst
Sorry. Just a question quickly on M&A in the U.S. Is there any pieces you need there or do you feel like you have the platform and the products that you're comfortable with as you attack the tech strategy in the U.S.?
Brendan Tansill -- President, North America
Yeah. Thanks for the question, Chris. I think need is probably not applicable. I think we're very comfortable with where we sit from a technology perspective. Would we opportunistically look at situations where we can enhance our distribution capabilities if there was something that's analogous to Sterling that became available, would we seriously consider that? Perhaps. But in terms of the integration capabilities that we have here resident in the U.S., the Snap platform, the developers that we have in Denver, Colorado, our gateway capabilities which we're bringing to market, we're comfortable that the capabilities there will put us at or above par, in terms of addressing the e-commerce channel.
And then in terms of the direct channel, as Jim mentioned, the capabilities that we've augmented there are largely around personnel and leadership and putting folks in a shared office space with shared leadership and accountability. So, in terms of need, no. But as you can see through the course of the quarter where I think we announced three acquisitions, we're consistently opportunistic and if something pops up, we'll definitely be at the front of the line to look under the hood.
Chris Brendler -- Buckingham Research -- Analyst
And then, quickly, does ClearONE have any applications in the U.S.?
Brendan Tansill -- President, North America
No.
Chris Brendler -- Buckingham Research -- Analyst
Can you bring that technology to the U.S. as a distributor pay-in platform?
James Kelly -- Chief Executive Officer
We really have the technology via Snap. All it is is an enabling technology. Think of it as like a power strip. People plug into it and they're plugged into the national processor, currently in Spain and Portugal. So, I don't know that -- teams are sitting together as we speak in Madrid. So, I'll learn more once the CIO and the guy who runs Snap come out of that meeting. There's always some benefit from somebody's new platform for us and we cross-pollinate very well as a company. So, the idea is we're stronger together so nobody is out as an island. We all work as a team to find the best solution for our customers for the market and the most efficient.
Chris Brendler -- Buckingham Research -- Analyst
Great. Thanks for taking my questions.
James Kelly -- Chief Executive Officer
Thank you. Operator, I think that's the last call.
Operator
That is all the questions I have for you today. I'd like to hand the call back over to Jim Kelly for any closing remarks.
James Kelly -- Chief Executive Officer
All right. Thank you, operator. And I want to thank all of you for joining us this morning. We greatly appreciate your continued interest in EVO.
Operator
Ladies and gentlemen, thank you for participating in today's conference. That does conclude today's program. You may all disconnect. Everyone, have a great day.
Duration: 71 minutes
Call participants:
Edward O'Hare -- Senior Vice President of Investor Relations
James Kelly -- Chief Executive Officer
Kevin Hodges -- Chief Financial Officer
Darren Wilson -- President, International
Brendan Tansill -- President, North America
Tien-Tsin Huang --J.P. Morgan -- Analyst
Bryan Keane -- Deutsche Bank -- Analyst
Andrew Jeffrey -- SunTrust Robinson Humphrey -- Analyst
George Mihalos -- Cowen & Company -- Analyst
Robert Napoli -- William Blair & Company -- Analyst
Ashwin Shirvaikar -- Citigroup -- Analyst
James Schneider -- Goldman Sachs -- Analyst
Amit Singh -- Bank of America Merrill Lynch -- Analyst
Ken Suchoski -- Autonomous Research -- Analyst
Chris Brendler -- Buckingham Research -- Analyst
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