The Western Union Company (NYSE:WU) Q4 2022 Earnings Call Transcript

Devin McGranahan: Middle of the year.

Matthew Cagwin: Middle of the year, thank you. Sorry, middle of the year.

Ken Suchoski: Thank you for clarifying. And you can think about commission rates as being about a normal average we’ve talked about historically.

Operator: Our next question comes to us from James Faucette from Morgan Stanley. Please ask your question.

James Faucette: I just wanted to ask a couple of follow-up questions. First, on that new cohort of customers, digital customers, and their high level of retention, as those customers go into their second and third transaction, et cetera, are they seeing changes in that promotional pricing? Or is that promotional pricing still in place for them. Just wondering kind of what they’re looking at, they’re judging the economics for themselves.

Matthew Cagwin: Jamie, thanks. No, they are returning to what we now refer to as market-based pricing. So the first transaction is somewhere between 50% off and free and then they return to what we would consider to be market-based pricing for situation, that corridor, that time of day, that customer segment. So they are then paying what we would consider to be normal pricing on second and third transactions.

James Faucette: And on some of your other Evolve 2025 initiatives and rolling out new products, et cetera, I know you’re still kind of working through like what the economics are going to look like, et cetera. But in terms of goal posts, like what are the things that we should be tracking? I think you gave some metrics around new customers per month and some of the targets that you have. But are there other things that we should be paying attention to from an economic perspective or a revenue potential perspective on these that can help us assess how that’s evolving?

Devin McGranahan: We look forward to providing more of that as time goes on. Right now, we are publicly tracking the growth in our customer base and in retention that the added value of either new products and/or an account-based structure can drive. And then if we see incremental benefit from the new products and services, we’ll certainly want to share that, and we’ll share that with you.

Operator: We have no additional questions at this time. Thank you for joining the Western Union Fourth Quarter and Full Year 2022 Results Conference Call. We hope you have a great day.