EVO Payments, Inc. (NASDAQ:EVOP) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 08:00 am ET
Good morning and welcome to the EVO Payments Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator instructions] Please note this event is being recorded. I would now like to turn the conference over to Ed O'Hare, Senior Vice President of Investor Relations for EVO. Please go ahead.
Good morning and welcome to EVO Payments third quarter earnings conference call. This call is being webcast today and a replay will be available through our investor relation 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 including our most recent 10-K, which is 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 the nearest GAAP financial measures can be found in our earnings release available on our investor relations website. Today, we will discuss our third quarter of 2019 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 of the Americas. Now, I will turn the call over to Jim Kelly.
Thank you, Ed, and good morning. Welcome to EVO's third quarter earnings call, where we will review our results for the quarter and provide updates on our business performance and our recent acquisition. In the quarter, normalized constant currency adjusted revenue grew at 9% and constant currency adjusted EBITDA grew at 13%, which are the result of our strong bank relationships in Europe and Mexico and our ISV and B2B businesses in the US.
Adjusted EBITDA margins improved 129 basis points in the quarter as a result of our continuing operating efficiencies and acquisition integrations. In addition to our strong bank referral network, growth in the third quarter was primarily driven by our tech-enabled divisions across both our North American and European segments.
Since the rollout of our Snap eCommerce gateway in Europe and in Mexico, earlier this year, we are seeing solid growth in our international businesses as we leverage this proprietary gateway. Additionally, our acquisitions and sales strategies are further driving tech-enabled growth outside the US as ClearONE, Way2Pay, and the SFS systems are now integrated into Snap and continue to deliver new merchants beyond our bank referral channels.
In the US, we announced the acquisition of Delego, an SAP payment integration company for B2B customers. We