Corpay (CPAY) 6 Nov 192019 Q3 Earnings call transcript

Greetings, and welcome to the FLEETCOR Technologies Third Quarter 2019 Earnings Conference Call.

As a reminder, this call is being recorded.

I would like to turn the conference over to our host, Mr. Jim Eglseder, Head of Investor Relations for FLEETCOR Technologies. Thank you, sir.

begin. may You

and our everyone, for us joining Good quarter thank XXXX for third earnings today afternoon, you call.

With me and CFO. CEO; Chairman our today are Eric Ron Dey, Clarke, and our

announce and for queue Q&A will session. then the Ron open into only a both is the from to get comments operator Following will that your It for opportunity the Eric, queue questions.

of be this release found including adjusted information under This is non-GAAP as Relations per the previously section comparable and Please GAAP call, information, at be information other be the website, Throughout may not companies. today’s diluted on fleetcor.com. will can information note, our Reconciliations our and appears most and our adjusted at supplement net presenting directly adjusted earnings financial in non-GAAP calculated press to income share. accordance GAAP we website of release described. differently net Investor information revenues, and non-GAAP with calculated than historical in income financial

We updated XXXX both with non-GAAP on are also and reconciliations. providing the basis GAAP guidance

subject differ and to you to results are future what upon numerous and guidance expectations acquisitions. Now which should and cause outlook, formal includes of need These that from everyone forward-looking remind statements. discussion They remarks, about actual therefore, them. risks include of our are regarding performance, our statements business we our before not developments to part today products results These and and not I guarantees reliance put new undue materially will could we fee begin expect. initiatives uncertainties, forward-looking and

Annual Securities are and on Exchange Form filed release the Commission. These X-K mentioned website are risks Report Some and of those press today’s our www.sec.gov. with on and XX-K our Form at documents available on in

turn that of would and our Clarke, way, Chairman out to call CEO. like Ron? the to the over Ron I With

first, I’ll continued share everyone, results and for earnings I our on to provide quarter our subjects: QX Good call. second, you on and beyond joining my for and update thanks. our front. the plan I’ll Jim, cover progress Upfront here, on initiative; afternoon, perspective acquisition three Okay. I’ll thanks outlook our third lastly, QX;

Okay, on in up basis, and a XX%. approximately or constant like-for-like XX% scope cash EPS million, XX% reported up constant to QX so QX. what $X.XX we revenue cash, up macro $XXX up On and revenue of and We EPS XX%. basis, was call

So right our with in line targets.

organic revenue the card Overall, XX% was growth in organic growth finishing fuel quarter. with in at XX% QX, revenue

consolidated revenue. global revenue QX Our card fuel XX% represented our overall of about

performed up XX%. and Our well, non-fuel corporate lines pay revenue lodging business quite total with both up of three XX% and revenue

up business. The spend all three lodging, volume lines card of up corporate growth, room In pay, toll, In strong our in nights virtual active SMB tags In non-fuel were X%. up quite our XX%. XX%.

business. volume healthy growth So each in

the quarter trends good. Our also quite in

sales of recurring programs. prior new again, And $XXX new revenue. over we up million new various represents signed XX,XXX That our once Our or year. over accounts to new bookings, XX% business versus annualized up the

So real our demand offerings. for

that of nicely quite plus and the rebounded column, Inside various X%. number, sales Same-store into puts plus takes.

in our in really within by offset card corporate business Mexico Our and business That fuel Brazil. the everywhere, and are business. quite in the was here payments soft even and strength in trucking Russia UK U.S., our

at Our continued XX%. steady quite client business or retention

pleased with obviously, So, that.

now on place, available $X.X leverage finished sheet have and billion our two balance Our in good we revolver. approximately below times, a very

tech some will down. capital to acquisitions. maybe So to weakness the given come valuations with IPOs, well – recent positioned And buybacks and/or allocate –

of volume positive three finishing our QX in growth And the and of summary, non-fuel at lastly, growth our clean, profits QX profit So continued growth businesses, trends. same-store strong solid quarter. XX%, retention top another Organic sales, revenue sales guidance XX%, range. in

our to for turn Okay, outlook me make QX. a let

tougher overall We’re growth X% X% in organic that’s of revenue X% the organic on card with to growth range, revenue XX% for QX, confirming comps. to fuel guidance

guidance. XXXX $X.XX We’re cash the our full-year midpoint. to EPS raising guidance That $XX.XX at beat QX the reflects

reminder, was contribution, versus Just FX $XX.XX. from slightly X. our guidance within primarily our your due of favorable on deal, we updated offset XXXX time rest assumptions TA which higher be by February last October initial but Brazil, less macro, The full-year guidance in weakness closed spoke to as acquisition that’ll the

me an transition update initiatives. strategy to our Okay, of let beyond

strategy beyond twofold. Just idea is as a reminder, our really

then customers existing appeals. by segments the new which opportunity the to our which customer with make to more network clients expanding our second, and spend offer to and/or us attract new First, to network can purchases; in they expanded

example, for sites fueling using in city and our RFID offering the urban drivers in parking of Brazil, or So, city. the option

non-fuel, start card here quarter. the card beyond more QX. spend about than let’s U.S. roughly good in per new clients purchase off with XX% U.S., both XXX,XXX So U.S. and approximately clients revenue activated X,XXX beyond These more XX% and fuel that That’s of pure fuel that clients. targeting. existing we’re We another in generate fuel out account fuel clients, companion those fuel

of new beyond non-fuel two fuel in U.S. to card clients, or option XX% fuel all to for addition, items QX those choosing purchase were In the sales to addition the in fuel.

X and versus the QX in year million transactions XXXX. users crazy, QX McDonald’s prior further nicely grew on QX now Brazil. in in from total XXX,XXX The to up toll the beyond we to X quarter, transactions existing estimate The reach year. adoption next there. our track sequentially continued million on fuel reached XX% up Moving of in

or But maybe the beyond users. these of importantly toll urban more is impact and attracting new city

in QX XX,XXX X,XXX users sticker in from urban was XX,XXX. new the QX. and QX That’s up in added So

attracting potential starting to offering drivers to of beyond of the Brazil the our city XX toll is some idea million So materialize.

relied to Nvoicepay in go-to-market corporate Okay, now plan our offerings. business, But we go-to-market with the with card our four primary offering. recent as virtual we’ve historically, payments acquisition, on broaden approach the our

some, of the their clients accounts entree have lastly, space; electronic; but virtual integrated payments for payable So from one payments to those initial cross-border full to make clients for user cards AP into XXX% entire payments, way digitize their simple all will make third, and want then who want the P-Card their be an programs not to payables; for plastics transform clients want offering two, as process interface. who some simple AP who same of international a and and payables who

payables In cross-border was a QX, from our about year. in the XX% of from revenue, overall AP, excluding up so fraction full earlier

as four-prong line we payables dramatically we So product expect into strengthen move market XXXX. our this position, to

with is fronts. more offer importantly, It’s is and attracting toll beyond from us, And both I the So strategy to beyond revenue existing we to card XX% of new clients clients. offer types, our to card in material. so U.S. Brazil all toll programs. the said, new kinds new Again, maybe offer, all tag of sold XX% that fuel, working beyond in starting the and get clients now initiative beyond of QX become users and the the as fuel to spend new on increasing virtual QX

is last acquisitions. Okay, up

And We’re existing to Travelliance cruise, delighted on the because our in distressed and the October. deal. one lodging the pleased announce segment, close street that early that business and completed of is This deals personnel. we’re even last was in have Airline the airline feet coverage the passengers, of TA hotel adds acquisition to into call capabilities. we mentioned on international it’s our global, it broadens

approximately accretive adjacent airlines, of million million, there’s meetings TAM this could with entering strategy $XX reflects apartments like paid or Lodging others hotel revenue but expand of $XXX segment, that in of TA, business. corporate annualized be This looking so for for the We to our EBITDA case, margins, in corporate XX% TA our XXXX. line about

In mentioned liquidity working tuck-in pursue still earlier, and plenty And of pipeline, four, to terms them. quite our Currently, I active. lodging of we’re fuel, opportunities as spaces. pay corporate five, in

we outlook less and good good and a So double-digit QX, had FX closing, the Brazil. profit revenue is in in QX maintained, continued trends. favorable very growth despite

beyond traction. Our gaining more strategy

additional And capturing existing again, for spend We’re base prospect TAM the extending and the from services. new our clients.

deals We opportunities works. the additional and in close tuck-in continue have to

to let that, additional quarter. back call turn details me the Eric? with to provide So the on some over Eric

Ron. you, Thank

we revenue $XXX.X GAAP increased XXXX. per XX% increased the $X.XX net to income share third of from million, million $X.XX of compared quarter and to the XXXX, GAAP $XXX.X net to from XX%, in quarter For of $XXX diluted XXXX. $XXX.X XX% reported in third million the third million of up income quarter

third end the tax per reform, share XXXX was of included GAAP million quarter to a income results, in a income with and in recorded GAAP transition diluted As charge income in the at connection to related tax quarter. liability reduced the the U.S. of XXXX which true-up net $XX reminder, taxes net originally the

provided diluted the in adjusted share, release. be metrics GAAP are reconciliation discussing GAAP will X numbers to is that income financial our adjusted net of Non which for per press net income Exhibit and we

increased third year. $X.XX adjusted last compared XXXX. $XXX.X the diluted XX% of income third to $XXX.X compared XXXX period And income net $X.XX, to net net quarter quarter same share increased per Adjusted XX% per adjusted with income the for in in in million, diluted to share the of million

with Third revenue impact exchange exchange in was when macro of due primarily quarter lower UK. and rates which unfavorable results reflect impact million, believe quarter economic approximately $X The the in negatively foreign the to we compared million to due the impacted environment the primarily year-over-year rates, negative from approximately XXXX, $X of by third revenue. macro foreign Brazil

we although, we precisely year-over-year quarter. approximately also slightly million the partially cannot changes, were the these in it impact third favorable negative million $X fuel And $X calculate quarter. impacted by impact believe was offset in spreads. prices Fuel a in negatively impact of revenue by worse the This

the performed out macroeconomic product the after of for was Chevron the XX% adjusting impact growth during categories and and revenue deconversion major quarter well XXXX, all Organic approximately the the of third quarter. environment

businesses. beyond Organic initiative points deconversion growth Chevron fuel our of of of third during X about to our growth X in by the contributed excluding XX%, driven our growth fuel business the And portfolio, in card quarter. solid was most card fuel

continues payments quarter, in category organically to our the business, Comdata grew corporate the business, was during was corporate and in grew both excess XX% growth our upper-teens. perform cross-border payments The payments the by in of which and corporate The driven up quarter. in which well XX% again

and up our business toll were our Both lodging XX% business organically.

our very strong organic quarter. growth in good very resulting for in businesses, in quarter performance all So non-fuel another the all,

an to businesses strong of soft the and quarter in and a of card in the and the Brazil Mexico That by the business trucking quarter. a our were Same-store was bit sales around a that UK the offset third But There in X% sequentially payments also in our fuel businesses the and X% businesses were generally, U.S., our in improved our Russia quarter. takes approximately puts corporate lot the increase of quarter. decrease world. from partially in between second are approximately

were expenses normal with third X% for operating in And due the to $XXX.X moving in was quarter up million Total down The the $XXX.X increase growth to XXXX XXXX. our and operations. of acquisitions compared third million, income statement. of primarily the quarter

revenues, total XXXX. quarter of $XX million $XX percentage are XX.X% operating X expenses million, for credit a of points basis operating versus third or XX.X%, were third of As in in XXXX. basis Included the X the quarter, the points third compared approximately of losses expenses in or to quarter

begun to fuel XXXX. losses the we as expect to year. we’ve a in terminals the card place continue processes as we and expected, tools of As new implement result improvement earlier in through some reduction this EMV put more AI stations see And

the compared million in compared amortization $XX.X closed compared $XX.X to Depreciation acquisitions quarter flat expense XXXX, in quarter The of was year. of of to to XXXX third the million and due last expense XXXX. $XX.X X% third in million, XXXX. in at impact expense rates and $XX.X interest Interest million with the third higher in to increased primarily increase LIBOR of the was quarter

The of Our quarter third transition our for to XXXX third XXXX originally third at the tax rate If adjustment, included the the transitional tax provisional liability XX.X% effective XX.X%. for of with exclude compared was for the XXXX. a $XX end quarter million of recorded quarter we XXXX tax tax XX.X%, would the reform. of rate tax third true-up the have of the connection been impact U.S. rate tax of in quarter XXXX

$XXX Now sheet. customer balance million and Approximately cash. primarily consists turning We of $X.XXX with to the is ended quarter billion deposits. restricted the in total

of As loans billion our about September had revolver outstanding approximately XX, and XXXX, on $X.XXX billion of we $X.X and availability. term undrawn the

$XXX end had also facility our at securitization borrowed the the million quarter. We in of

we repurchased now the current increase capacity. we XXXX, in $X and stock and $XXX of authorization, quarter third our $XX the in of an In remaining XXX,XXX have have billion million buyback share million, authorization. Board shares we billion total has under approximately nearly The authorized for additional our $X.X

covenant under is XXXX, times EBITDA, four our well calculated As credit of which times September the of X.XX below was EBITDA. our as agreement, ratio XXth leverage our level

and Given to M&A pursue share ample powder ratio and we our leverage have liquidity, dry buybacks. believe our we current both objectives

use facility liquidity and temporarily for to excess will to pay M&A. as our cash purposes. the liquidity securitization other credit a flow be intend down though, continue revolving future first and balance We our and maintain acquisitions to on of reminder, corporate a use facility And

Finally, million $XX.X the we of approximately CapEx spent XXXX. third on during quarter

Now onto update for the XXXX.

First, adjusted $XX.XX we to reflect are at to net diluted our our midpoint by expectations. raising quarter to third share results our per income the $X.XX guidance compared

guidance. few in As we moving expect a always, the of balance year parts our

worse we fuel rate. and prior than of the year, the impact $XX exchange foreign primarily balance to lower expect be to macro million unfavorable due guidance prices our the For approximately

impact unfavorable the the Travelliance of acquisition of the macro. will offset However, the impact

total, financial refer these takes our quarter to net of fourth the our call guidance. information impact puts terms in earnings for third zero taking additional regarding to quarter. for and in So Please supplement

that between $XXX way, adjusted be $X,XXX $XX.XX between to GAAP share share is net our million, and diluted $XXX between and with $X,XXX million, million net the revenues $X.XX, net million $X,XXX $X.XX of to per to So million and income net $XX.XX. income be income as million, total to follows: be and and between between and be $X,XXX out GAAP be diluted per income adjusted guidance to

approximately includes made rates well the for the of U.S. partnership fourth of XXXX acquisitions spreads XXXX average or already outstanding quarter, full-year, average, shares million the approximately weighted September fuel the the for diluted of disclosed. guidance no in the the million have market equal we some XX.X exchange the impact per adjusted equal of and an expense of material assumptions gallon prices not following: the preparing $X.XX $XXX XXXX, to tax to million new interest in to full-year, XX% fully for And fourth $XXX month average, for to quarter foreign rate related below agreements

And with we’ll open said, for up operator, it questions. that

you. Thank

Our Please will from go KBW. [Operator question-and-answer question Sanjay begin Sakhrani is session. We the now first ahead. with Instructions]

pipeline. could you the the walk for the larger M&A then I’m specifically, and Thanks, the synergy any if on deals interested are in good the market curious results. in there? you’re thanks Ron, comments just size there through the pipeline. just And that thesis Travelliance, maybe

to Sanjay, larger, you? What’s

Not bolt-on transformative? more

Yes.

So two the the we I would front billion. say, working things in five start the would list B, number at we’re where me, of have out of with with the the on

So those I tuck-ins. more you call large, don’t than they’re know but if

than probability we the – happening type think later, when And I still the of deal it quite that is of sooner are valuations about high? mean,

times. I think, Yes. said The a are, million valuations we

us, For really it’s the around the numbers. conviction forward

the returns. conviction are And can so in can get we forward numbers, where we make cases, see those we of working if to the

things earlier than bigger that are So some I’d we’re are of at. those deals looking say, the other

that great. Gift. Thanks. a just it’s quick question that? revenues, of what’s But weakness The weakness there talk smaller of talk sort as thesis then could the might the synergies then far timeframe I through to in total. be just of you the And – on just maybe part driving sort you And and extract, able the Okay, Travelliance terms as the could there? of about know

Yes.

start Let with me TA.

headline profits view arbitrage. the business of is, that hotel synergies at XXXX. And we’ll I’d first, level, early the the in So that are key say, two the I’d say, our double

X,XXX so those about better lot in So and hotels, in larger And we have of volumes common. have we share, much rates. I a that hotels have we think, we

versus in basically rate our So we’ll pickup TAs. arbitrage

back-office, And HR a got I’d We the got a It’s whole then lodging IT. right? decent back-office business. around say, finance, second, and

And planned so the we’ve on synergies got back-office. a bunch of

profits things those So of next two will doubling drive year. the

And Great. weak gift? the

is Gift just Yes. really timing.

number of As the is, our of size. you orders orders, the significant favorite one seasonality least clients about business of – bumpiness know, things and of they and large pretty that the make the

a come pushed. sometimes, orders So quarter those or in in, get

QX. we this expected the QX And fundamentally, forward of some in into case, so revenue in moving we’re

Thank you.

is Williams Jefferies. Our question ahead. Trevor next Please go from with

Hey, afternoon. on the One on ask I thanks. first, beyond just the And Ron, appreciate I’ll me fuel. for Good uptake. my questions color QX upfront.

average us the cohorts. program is could XXX,XXX past, So first, seen some that guys color of just hoping reminding uplift percentage the do the you on fuel the mind in in have an to? just trended in know and around And how you growth you the from what second, customers So I follow? spend you’ve more us you’ve quarters you QX QX marketed have XX%. said was I I that give that thanks. trend U.S. guys then around But the seen initial that was curious

Good – questions. both good

think, marketed So two-thirds, year-to-date, targets, in every adding so I kind the of of quarter to XXX,XXX XX,XXX XX,XXX worthy of it, call credit to about target. XX,XXX the or we’ve we’re that we keep kind

now. we’re rate up X,XXX tax or the in X,XXX clients a think, to I

Two, in X,XXX multiples going buying more, spend ability limits times credit rather beyond really, more limits the XX out and in now what XX% fuel revenue. about proportionate in repay. dramatically clients’ spending credit that and about more of spend that five fuel of about lines it non-fuel is. But hope, the could than to spend non-fuel total fuel the to be idea artificially or XX% by we with proportional And we’re to us, credit higher, creating the limited going working book which the is whether is, that XX% the are XXX turns

again, expand can So subset we’re X,XXX and or the XX of increasing by with a seeing test of five accounts, the line actually non-fuel those we now multiples times. in spend if credit

XXXX that we success say, view the early But that as could to saturate. continue as of much positive. really is the drive I’d So

Great. Thanks much. very

next is Blair. Our Napoli with Bob go Please ahead. question from William

Thank per quite and was is, bit. Well revenue business, up corporate had you. growth Nice quarter. transaction payments you a revenue done. Ron The your XX%

I that first is business? lower revenue market, revenue XX% per I think, acquisition quarter outlook What you’re – for you up big piece generally Nvoicepay expect do transaction, year-over-year. but that? the a but transaction for in per was lapped what the think payable to that be is the – of accounts you your

that? how So growth just of the mix and some the cross-border fits AP on into on business versus and virtual maybe thoughts card that revenues long-term

huge Yes. that Bob, business believe I deal, April mean, as with a of pay I Nvoicepay closed you a TAM line it’s great know, X.

not So lapping all business, that. frankly, the invoice XXXX. year-to-date particularly, really their pay them all our AP, we’re growing close to with full offerings, And and plastics our yet the components virtual our of core cross-border, all – business well are card

I for I not our to still baked of, a think, really that to like sales stuff all plan which to is into the base. is the function again, guide mid-teens, for that say the business, us relevant investments time, again try although,

base As XX%. to that the getting to sales keep which have we growing bigger, keeps base investment modulate it up does, our

So that not I’ll a controlled it right way. do in a try client and onboarding way, a want of invest some. the of we If business too maintain say, and terms have – to But controlled might bit service many we but we too the new to more our thought in in people quality step it or we’re could grow up marketing way. effectively, trying the engineer programs, kind we design we many or new

investment lot most to attention where and into a that innovation. the and a going back you competitive business? get paying There’s of front have market your risks? to the you Where are do lot where are of – What

Yes.

full of There’s are We pure now it, players. card There’s game. There said virtual pure there’s I’ve before. right? some plastics our players. think at people I AP the are subcontracting, some banks, obviously breadth this [indiscernible], There processing. fighting love

game, then is, it and distribution most that the like others over the first services that relatively over I a the it’s require got a again, right? communication. we’ve education So I game. thing the solution and second, I’d say set play than new These fact And say in are and broader of

part with brief and ability quality prospective advantage. our still the the then people main out the accounts, force game. third can I having of merchant network data we so is, is earlier our accuracy and and sales is of high the fulfill out to of the that get think, a go communicate payments degree And a because than and And other huge

it’s So I we well, but think, that people aren’t up. bode there those advantages, we’re really set other chasing, like not how

appreciate Right. Thank you. it. I

of Our America. next question ahead. Please is from Ryan Cary Bank go with

question. – the doesn’t demand out quarter, had I for business. quite while thanks U.S. guys, know seeing Hi, are some meaningful. sound headwinds fleet the the in called taking We it, And particularly you Wex, environment weaker It a like you’re in call headwinds in as trucking. my

fuel there slowdown trends to business, first, So any on in you provide quarter-to-date? is compared as second, expectations? are modeling you can demand in your anything And the demand prior

Yes, Ryan, hey, it’s Ron.

right. say, our it into back than look I terms say, UK the of the So in you soft first through year-to-date globally, and trends quarters. us plus we got the trucking call consistent for here, I’d I’d same-store other the one plus think, three out a Brazil. did relatively reported I column, that, base, and

a minus I – a had and plus think, year-to-date one. I can’t one remember we zero

on first flat of same-store three the quarters. kind So through

a better. or your what But we’re seen. trucking, bit two. no, Wex year, one we’ve I other think, than seeing, did the than comment for different out We anything plus were wouldn’t we call last that say, I

one of for what stopping expanding take acceptance beyond of footprint? accepting the toll it merchant Got acceleration does it. of toll Is anything the how driven introduce urban tags? that has And interesting payment imbalance? you How And then to merchant sticker to was themselves just it’s there side, the meaningfully hear new from moving users? capability kind impacted toll in on to the the growth the

channel, users not, But huge heavy turned bit away for obviously, toll I and from users, picked think QX right? to to group focusing frankly, station numbers a after the know another pace. number I these basically that channel, who up they’re by when went XX,XXX, if mean, quarter, the a quarter. I don’t the blown the are Yes. that out we go trying step XX,XXX and looking opening people But at in a we urban this a got we’re again, gas my you remarks. on to we they’re for XX,XXX we up these one add X,XXX started saw into and I

I mean, our distribution these channels, channels more store, the up we’ve opened traditional target, people. urban now to of digital retail,

So that’s causing up. what’s a step significant

is it right? twice had people the and right, can You’re as chicken many urban more more the we we the a fast network offer would parking, that egg, bigger as station an is, many be attractive our food, If twice offer appealing. that fueling even

But enough to tells I the data is think people. we’ve obviously me what attract got

chicken it. and And to so we’re going egg

We’re going add to generate trying urban revenue. users to to keep

networks, we of We’re of years. the have keep going three each last those which to expanding one over couple

turning less network I look money in out so be as again, right? building spending money obviously that get crank. And more the We’ll will the think, mid-term our returns better, into and hopefully you built the network, it’s out, more

terms digits nature and having and challenge lanes gas a vehicles complex of parking is way moving the environment. sets than In and the The food. that stuff, in the stuff of more multiple the say, equipment fast up the or bit higher and fueling the station is I’d

they the line, whole at the then food, So it’s particularly where like come in one difficult lane one stationary way. through fast not

the said joining as now in I additional those every areas program. merchants of interested clearly, So parking tougher fast easier And there in are before, fuel one food. and in in and

then is to we the next other calls to come in. Once showed, people be up operators. once coming fuel set fast the sign parking to operator shell food McDonald’s Once in. biggest guys the want So working, that next are we’ve shown we get want people of the to than parking we other

get the first calling. car rental once So the other line, company we companies rental in in, are car now

that client to So once will attract you merchants. yet merchants, those your base go more out you prove

do it’s – just great I – we at telling it. keep it’s The really really which the pace question a you can is model. a guys, it’s So

for you Thank taking it. question. Got my

Our from with next is go Deutsche Bank. question Ashish ahead. Please Sabadra

card, Thanks. Congrats exclude even the quarter, was stronger. particularly such I on if gift a solid the growth

payment Just my corporate the question on side.

what if then I now how big – could there? for the share was thanks So wondering EPS. the classifying growth you And was that bookings full the

wondering traction well just – – solution you’re space? you And of growth base? are you full could seeing the more new to on as – rents? in market what’s the the how what was relationship as that existing some going share like How driving if Thanks. and into data to cross-sell, sell how I using you’re customer kind AP or

Yes.

Ashish, first question it’s was looking That in – was? question sales Ron. Are for corporate the pay? your you

corporate Yes, pay? bookings growth and

in You guys have that I funny take [Ron, for it.] anyway. [ph] would just a sneak

can I and interested more was what had in and just new can driving I offline. that sales get you’ve see how forward? in we you’re learnings how that potentials process going actually

a plastics, ago two number business, mentioned Ashish, provider. itself virtual a the as specialist. core pieces, cards. evolving, up years building XX, And Nvoicepay So had I obviously, And earlier, of XX paid Comdata separate owned years five cross-border been right? ago, we whatever has is marketing, P-Card obviously, we as Cambridge, we the basically AP bought I’d I and mean, say, years Yes. then pushed full the a

to they to compete that the to I’d can guys, paper. the make rid with them We aware their we’re We all integrate virtual want super take say, can a of can And main different give to trying ways so, through P-Card transform. and So help want them the want message start to get of lots simple. They of got. we’ve make They programs card. of we change going company, the that power and that a payments is having that package marketing corporation,

the integration we still each the change. have that of specialists products. one say, With biggest consolidation I’d said, So and those the field that behind is

full obviously and in So are in we AP super that cross-border. trained trained in card, have super training people super virtual

our we’re what that to in so have solutions. particular manager account the consolidated provides set still and presenting lead, can specialists terms that figure go trying and if then solutions deep out will, And is of of you marketing the lead the

So that’s what’s going now. on

one to time trying more turn one at to from service peddling make a comprehensive. effectively marketing something a We’re program,

that, from when and prospect can if more way be think interest do we for a I And better do we will them. right solutions generate bigger, that, broader because the of set a you returns offering

any just look on growth next XX% think this And into year? there? that No, the about into going preliminary comps Yes. the thoughts that’s maybe some fuel be XXXX, kind going thing given next to at is growth sustainable, And cards, hitting we of organic accelerated same you’ll helpful. X% year on difficult just a how

say still for XXXX. early I’d days Yes. us for

at We’re, in of yesterday. a couple today budget reviews fact, and

these using the which I So businesses XX%, kind middle, capital say, we of XX% year we what our same into XXXX set to the the and the across planning. I in is this are out, go build that, XX% every is then to plans would say produce that and to goals guess, which profits aspiration, and cash our we’re Ashish, of I’d that can hit range. XX% to free flow with

Eric stuff give think, that it They premature, what in, are you because plans. days, build I track. obviously, stay be hopefully back can They would be, mean, other on Eric same tradeoff. And really XX any I and I coming you guidance. to I don’t so have tell the But consolidated correct? trying to is in we can that will

Yes. I Ashish. agree,

we we’ll earnings to the lot mean, process get of in So that when kind we’re the say a and to obviously middle call. right have I more of QX

But the the thing about beautiful remember, know business model. recurring this you well, is Ashish, which

it so already good helps you XXXX. have if And good you have XXXX, a a

stacked four our based And our that you in acceleration, that guys’ So modeling is sequential right off in in your just mind of up, obviously, that look we business. rates. at to repark quarters exit you’ll the revenues, see if do

like stay which obviously growth So, retention, trends in our obviously, creates year. line we next assuming that quoted, into we built in roll as

Yes, that’s Congrats great. solid quarter. again Thanks. once on

Sabadra. Thanks,

Please ahead. Our question with Davis Raymond from next is John James. go

I better, getting slightly commentary. what any businesses called the guidance sales It you’re Any the just just little corporate Hey, was quarter Ron, there business good I softness. wanted follow-up afternoon, insight sounds that bit macro would this good payments. to to guys. worse, the seeing you like U.S. out helpful? same-store slightly from on think, a trucking trends be insights macro and

Yes.

I in the a in cards, much is of XXX that let’s if you or so payables and not. not the clients are model. And XX% think, them. it’s X,XXX payments into went had pay Again, invoices and that them, we or fuel corporate say, the healthier the we client, in magic of businesses went pay

their of grow. and second, the every share, First of then our grow all, to XX% year. And number expenses tend invoices can

will, model, quarter-over-quarter, So is effectively, built grow, you step to if will, you year-over-year. if up, to the

to the spend decide that’s the if you they on business, card stuff. to versus from say have to XX I’d their will, they’re to where they’ve between to go going have up, go So got XX, drive revenues fuel difference, drivers more

lends think if model I bit same-store a grown itself, so to the just a the you as business And faster. has will, sales. And mix, bit better that

think same-store we But number. becomes that a our again, it overall I our consolidated So bigger comfortable. feel of obviously helps part mix,

different pretty balanced October other don’t any happy we’ve one. It’s and here that’s of what see experienced we We’re callout earlier, even than trucking than through kind with really year-to-date. the that anything plus

Okay. And helpful. then – just that’s

your about the a I payments. kind corporate Just on of around and follow-up is comments what specifically the see there. impact quick valuations. appreciate We’ll M&A landscape

thing companies little going is first a came BXB having for may The of with mind the check public be a you’re high-flying some payments bit markets. on that me what’s maybe reality of to these

kind capabilities payments? there that top of and geographies get or any of list you are attractive, as M&A So specific will the opportunities or corporate as view you

the good Yes. of other even though AP, people do there that now of the full a is, that again, again, we have lot, that. I we news are have products a kind mean,

do card We a though there’s that. people even few that processing, have virtual

We merchant have a network.

So capabilities. we market have verticals. segments the a the complementary lot either of we’re always for lookout say, I’d on or

it’s corporate third we’ve pretty business. example, in position a I a our for got quarter big construction, So, or a payments think, of

let’s had healthcare, healthcare, in say, think don’t So third but I if there in third a were else. in, something another a a in media third it’s for company that or

kind other that like has capacity. we’d property Third complementary of that be in kind of some or some vertical management, selling someone different

a we’re And here, seems of world’s the of have the for. slowest. planet figure think, a look would Those way kind off – AP the example, partner It’s The we an USA, know, of the selling, as business because rest that found old better channel. of getting be, would crack is the paper, Again, for or still most some out new you to done attractive have paper. kind some couple to I digital this than things job just core us.

focus in our are now, Corporate based. say for U.S. that segments that of targets on I’d Pay that most still is So

guys. all Okay, Thanks, right. Great.

next is go Jeffrey Andrew ahead. SunTrust. Our question with Please from

on digging Jenny It’s Andrew. for thanks. Hi,

from on about it more should there? watching thinking macro we – pricing, What headwind be fuel, Just the is is it or is miles-driven? the impact metrics

officially… more Ask one Is Jenny time? headwind the that

from pricing from Is miles-driven? or more the headwind coming

Yes, think from pricing. don’t it’s I

it’s efficiency. then think or the what just capacity, in second is, creating softness couple Those channel delivering. that the the drivers, it’s vehicle trucking, right, just saying, the or of the slowdown. the the what I in the you’re they’re of be And fuel loads, – things would

anticipate to point up you going hitting loss segment do it’s go like then where to And it’s Okay. hitting and start getting a start will rates profitability? soon

rates – the in Loss trucking business? in what

Yes.

Yes.

challenge are that is lose I’d rates whatever in companies half of some are there least, exiting we is at for say, business of loss us And – credit, more single-digit. credit. kind trucking low Our

it’s even U.S. I So delivering I though it. necessary think so. of don’t thing a has clearly mean, the way slowed,

suggests continue the I But two could – a in and the numbers a or forward. it, don’t as to probably your it attrition. spike in – slow So that maybe no, I anything drag roll vehicle see efficiencies, think point the don’t we

to manage that the we including lots different add that, couple terms. to of also credit of that tools helps accounts. of I kind Hey, a to lots over mean, we’ve Yes. payment credit And to we from our implemented and manage loss tend of us Jenny, have of the the through losses last on years manage things, perspective, losses worthiness

credit exposure amount probably would the frequent would credit manage pay, more we account So that. of of worthy, days that less want to have through our be because think payment to less terms and

we’re build evolving So looking of way those accounts. it the at types constantly we and

so you much. Great. Thank

question Please El-Assal comes go Ramsey Barclays. with next from Our ahead.

Obviously, Damien Ramsey. just Visa here I’m on for hoping on it guys, are BXB back business. on focus their It’s step Hey take to [ph] going? the MasterCard a intensifying payments. how’s BXB

want ships. of on to that all changes presumably, the how your take it’s Just sort tide get rising dynamic in business, better, your lifts

is your a But the assuming the growing want faster automation the corporate to of I bit maybe within partner things? those or on given example, than get the couple fast take little the I’m could just of various probably growth then of then break growth channels payments, you the of products rates AP But for channel direct some out startups.

Hey, it’s Ron. Damien. Yes,

Visa I the it first corporate So be awareness marketing to I think of and mean, have both would big payments this say, stuff. PR to it���s or and helps point fans I yes, and MasterCard BXB, and great.

us in beaches both I it they’re softens And and to as out. more and hopefully research some in some So think ways make watch, as products to super certainly working both we go the there’s obviously helpful on effective.

all so good. say I’d that’s And that

two already the in. money In poor there’s on. I’d channel One things of channel going have partners terms we components, the that the think more and a and say grow reason faster is, is the that yes,

So sales a then They’re has new they so continuing partners. while. for B, and ramp spending, channel we add up to take who marketing ours client Avid, been a And of grow.

business, we the on channel up. mostly have. a But and thing, right? Bill.com to business, as new And clients they’re that We just so beginning brought add second example, we partner we for in ramp in direct do don’t the the

of So then we and and we new more – channel they find a partners invest power the space. it’s twofer grow in

update guys on network for I���ll slip here an on you could in And Gifts, revenue any the And Maybe workers”. collar if rolled then on question out just of hotels Yes, per there’s that the and on give the separately that’s of perennial “gray there? update helps new sort just just it maybe trend? then the strategic great. you lodging if alternatives business,

one. that’s Yes, an interesting

less with base I we existing think it’s the thought. than been impactful

more I lift got “Hey, going. where there’s places X% can in harder kind they’re a existing go.” So bunch where we when or go people to went. they change to we go accounts, existing a clients saw, think first – nights They’re launched and think of room What is X% I we switch is, it I or as

people network and maybe helping is new it’s larger attracting more I think coverage having on a where side the people. hotel attract selling and to

join they plenty coverage. program, got they if like the feel of they So

help But more base. initially, new to more So help the we with the accounts. thought I think it’s answer probably it is, to with going going was

with Evercore. Please Our Togut ahead. next question is David from go

you the and MasterCard apologize do rate on evening. out this I the in earlier. call But quarter? growth you, give fuel good Thank if the you card

don’t I David. don’t know. I did, think we

we you just the it circle in this. I think on number we’ve to on right but of back given total front me, can

Okay.

As of assets unique connecting corporate the Nvoicepay seems a the payments building follow-up, Cambridge? of a corporate lot pay there? acquisition out where do to you some pay capability got domestic terms where is through world to of and That the stand be in you’ve cross-border focused

stitching, trying to even done. even had right, as out had that we or full reached Cambridge Nvoicepay again, mentioned that it’s now, X% The David, transaction – Cambridge the AP whatever We’ve, and to payments before bases we’re doing X% both client that those Bill.com, that I for Yes. capability the earlier, of funny have. have guys cross-border

were they already we trying did. before even So to it integrate

So days. early it’s I’d still say,

area that We’re specialization, to some those keep three may both trying across that one and to or people well. on really be we have interested how that all to of out yet those figure speak prospects four are products only know of clients products particular or they

year, think for But how in with I’d it. one. versus articulate a it’s the we���ll going work-in-process, to be different do it’s to probably able next all say, in I help AP advantage a be just we’re us but going I’d better think to department right to a have to huge So say, an place ways

it. Got

in Just me. a the And the growth cards for chip you at update there? to quick Any done on the completely Allstar UK? final shift with one are

Yes.

fuel a were that in mature, Allstar, like the product not fuel company, have the all markets cards. share most the the still have chip beyond UK We’re a done we but I’d right? say with to highest with say, pushing there. cards. the market I’d We the the is lines only shift as we’re other

decent, continue be to that the to numbers beyond a to for mid-term, in think the up. fuel grow or I So we’ve got thing get

client not improving, there, is but as I’d that we’ve thing still got leveraging. U.S. say, that very there’s in yet some our the base UK. idea It’s subtleties going say big that’s the for as best a So well I’d

seems like easiest getting to with to more the way So spend us growth them there. up step

Understood. Thank you very much.

to to Good you. talk

question-and-answer session and call. the today’s concludes conference This

You a Thank and have may lines. participating, your day. pleasant for disconnect you