Corpay (CPAY) 6 Feb 202019 Q4 Earnings call transcript

Greetings, and welcome to the FLEETCOR Technologies Fourth Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the presentation. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to our host, Jim Eglseder, Senior Vice President of Global Investor Relations. you. Thank

begin. may You

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

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

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

on be this and the including adjusted information under This is non-GAAP as Relations per the previously section comparable and found GAAP call, information, at be information other supplement the website, Throughout may not companies. today’s diluted on fleetcor.com. will be information earnings our Reconciliations our can appears most and our adjusted at note, net presenting directly adjusted Please 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 XXXX guidance the reconciliations. basis both are also non-GAAP providing GAAP with and on

put Now I not remind of of guidance remarks, reliance are upon future part outlook, our that will statements therefore, and need discussion products guarantees and expectations should forward-looking you development begin undue initiatives business and before new acquisitions. today includes everyone forward-looking our our include and to about regarding not statements. we This formal They performance, them. and

could uncertainties, we are actual results expect. These which to cause differ to and risks from numerous results materially what subject

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

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

finish; third, Good preview then view our Upfront subjects: years. second, earnings the Okay. QX to joining provide guidance; of afternoon, first, I’ll my fourth our I’ll at appreciate you here, look our over of lastly, bit I I’ll coming four everyone, a XXXX call. XXXX our outline our thanks. back and priorities highlights; take I’ll plan a Jim, quarter cover full-year and

Okay.

to on $X.XX a EPS, I’d of Revenue up in had better ago, up than gift, cash million, exception reported that’s bit rate. finished the by also a the at lower QX of So quarter. forecasted helped and XX revenue in came a $XXX the our XX%. X% say, of bit We expectations, tax which light. Profits we high-end with days

card overall in inside good, of Fuel finished X% the for that XX% at growth QX. at Organic growth, quarter.

Our three also XX% XX%. corporate growth, organic line’s pay up up up quite tolls lodging and non-fuel good, XX%,

Trends just we at and XX% call finished the trucking remained grew XX%, vertical. weak retention quite point the X.X staying what revenue over bookings sales client sales or quarter, steady in new at impacted same-store our negative, good, new by mainly

Beyond quarter, strategy continued forward urban QX. tags And in XXX,XXX call Our Toll, QX, what new sold great sales tag, we a Beyond progress. the toll, just or the or in initiatives, Beyond

QX. QX, XX,XXX in and in X,XXX about was reminder, I from a As XX,XXX think, up it in that’s QX

So our parking city-based clearly, is evidence XX target user and fast million food that offer. opportunity starting to fuel the urban like

again, to that In here accounts continued Beyond the the added card program. companion Fuel in X,XXX fuel business, U.S., progress. our new good We

to continuing So grow that.

our AP closed outsourcing, beyond call we we XXX% quarter. virtual and in new in card a X of full In corporate client’s business selling the or pay, what invoices, going million

acquisitions, make three four or process some on also final tuck-in continue to hoping in here decisions those We to QX.

cash initiatives. sales, XX%; revenue EPS, retention, XX%; summary, continuing Beyond and advance growth up XX%; at look, QX, new a steady, to good we’re client a our Organic So, good up in good, XX%; finish; revenue

Okay.

our XXXX of Let me just transition to full-year a at highlights. some look back

advanced profits guidance to of that $XX.XX XX% $XX.XX. initial our ahead cash XXXX in first, well So was of EPS,

annual began the organic at that’s XX%, since level growth we full-year reporting revenue this growth, Second, highest metric.

quite So for XX%; full-year XXXX, fuel, so lodging, good. XX%; toll, corporate X%; up pay, XX%;

Third, a hires, strengthened XXXX. better. invest We stabilized platforms IT few a in continue team few we with We getting and in more cybersecurity. our technology, new to our

again, our trends, trends, Four, full-year positive. quite

four XX% for full-year, billion in up broke million. sales XXXX, cash New above $XXX $X cash XX% We client for $X revenue income for full-year. over first retention time. the threshold operating billion the flow We tuck-in the completed acquisitions for the net

to their to the continue Beyond company. advance We contribution and our initiatives

well over And then the is broader XXXX, up XX% market. FLT, lastly, year. which Price good our of in a ahead stock had

good all So pretty all in a year.

are Let and XXXX me guidance along initial the our the now make behind with that it. assumptions to outline a for year, turn

So like setup the into first we XXXX. say, off, heading I’d

So challenging the for in XXXX setting better much macro, is was up quite XXXX. in us which

largely a and in offset interest we headwind lower that by revenue expected Brazil about result Yes, do the rates expect most tax bit rate. $XX XXXX, FX, but million a is be of will lower a

really plan. effectively overall our profit the So environment on neutralizing XXXX

So good news there.

year’s Our us and so that sales XXXX last into XXXX, steady in client will trends retention. rolling helps roll

Our help XXXX four Beyond we’ll acquisitions. of The contribution, deals, benefit in get the again, those we’re tuck-in initiatives. four our expecting a from full-year bit more

from expect cash We about those. get accretion to X% EPS

incremental lastly, will our count, interest our repurchase. our by that announce December offset share ASR, a although bit reduce then share expense. And XXXX did We

look, support factors these together, profit help our growth plans in will So taken XXXX.

turn XXXX. see four Fuel pretty a to promising a major we’re bag. In mixed a segment, If businesses, outlooking we the our of bit you

and will some Difficulty]. truck markets, of they Brazil Fuel existing our generating initiatives, more Some more expecting spend and Beyond and help weakness core on revenue continued from also businesses be expecting clients, the to from Mexico, are the double-digit XXXX. and in Australia, Russia, rely growers U.S. the in all But UK [Technical

have momentum. pay, good In strong another corporate to our in outlooking business year FX XXXX,

AP way sales year, from And as prior we a Our be core this channel benefit new business, capture full we card the our could to of quite big couple year implement opportunities synergies. network our be has or the business and virtual both that of partner and got full-year expect quite exciting. up

tag another being growth of toll healthy by Brazil, to partnerships. expecting that’s couple volume the core sales new a have here, business supported

acceleration further We There, program expect network which year, Beyond teens. reduce Brazil city parking Toll expand. quite our fast likely the expecting in growth continues fueling, the to lower of or inflation food into to XXXX. this We’re Brazil and do bit our lower urban a be will revenue

lodging. In

to looking accelerate. We’re SMB also significant made capability, improvements segment our some there, expanded it business the the our to product. making electronic that for growth We’ve small to there. We’ve easier use network for pretty booking the

rate and acquisition card virtual we as synergies some this year. planning onboard Travelliance synergies, our are hotel We capture fully to

that, XX% $X.XXX X% with as guiding follows: our organic midpoint, Revenue the the and X% reflects X% in So in an three guiding low guidance the in the the to to to at were expected XX% to revenue non-fuel that increase; businesses a range range; for fuel is XXXX range. overall; billion high-teens

growth, sales XX% growth of that outlooking $XX.XX the Sales year. to to cash increase. midpoint, at growth XX% another reflects EPS guiding XX% Profit a

So and growth. to the this XX% consistent targets growth XX% of revenue mid-term XXXX XX% profit with guidance is

Okay.

to priorities over how Lastly, company’s we’re mid-term. about the let the transition thinking me over

So portfolio. our first is

revenue greater see all to we outside is of of approaching So The diversity. now fuel. XX% continue company

to faster continuing company the we’re reposition for growth. So

and vendor their and So we’re hotels, payables-related in supplier, employee helping fuel, we benefit-related employee-related expenses. with expenses and now to where businesses expanding payroll their addition started, like toll or into expenses

two So runway. and our categories clearly, dramatically big these expense expand TAM

to Adjacent acquisitions, light. starting acquisitions of view a of bit we’re in so look at new a

lodging, categories: of fit chasing four acquisitions beyond fuel, of that our toll inside sort payables. So and

We’re starting might look potentially that offerings. to some our at client deals broaden

the in procurement-related of may Payable example, segment, that simplify considering some the software solutions for So, payables. be front-end

that with So their clients finding ways bit more we them help a payments. to around the help broadly area

those business lines But hopefully the articulate, – we strategy serve over them. of major is clearly Beyond we mid-term. those tried to four penetrate segments four our expect how as and we’ve to redefining Our further

again, urban workforce lodging example, or So, city in airlines our business. prospects in or users Brazil, versus for targeting targeting

profile. So the lines our four rethink to of existing really extend business to trying growth

focus continuing the transform And then to on and on products to just our build lastly, we the in to on down working to And we’re invest it much to can our we’re add, make that with people and the put team trying quality field. easier best architecture, do technology, digital people company, the strengthen company. core doubling people business of clearly capabilities trying to

set priorities these think for continued a much company we up, over growth timeframe. the So really longer

expecting QX, consistent for revenue again, to thought, So and And closing, we we’re really the the growth quite look, the then we and reposition year. again, strengthen XXXX, good, trying future, like capabilities. the profit long-term in faster our sandbox to and the widening setup continuing transform company targets. core growth, to our with and again, finish good

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

Ron. you, Thank

of of in of Included a a the quarter we XXXX, to gain $XXX.X XXXX, million per And gain million fourth $XXX.X fourth diluted million, quarter fourth Chevron XXXX. a $XXX quarter was income the per related in of reported XXXX. of of quarter of million, GAAP was net fourth of XXXX diluted share $X.XX $XXX.X million, quarter in fourth sale up from share the the in $XX the million the a of to decreased compared XX% or $XXX from or revenue $X.XX to For X%, investment. portfolio. minority

million, XXXX the adjusted XX% increased in $XXX.X for fourth income and share compared XX% per of Adjusted $XXX net the increased compared XXXX. net to income to fourth of diluted to quarter quarter $X.XX to $X.XX, million,

were in with quarter impact roughly fourth currency XXXX. XXXX. We most Brazilian fourth real, XXXX, down a experienced as rates the compared was with several from of exchange of fourth quarter negative, the X% macroeconomic headwinds quarter primarily of the the Movements of from foreign in the

negatively rates million. quarter We impacted foreign approximately during $X believe revenue the exchange by

prices was the lower last the we although calculate approximately X% our by approximately In impacted precisely X fourth of were price year. believe we impact negatively addition, cannot changes, quarter by compared million. revenue with And fuel these

spread spreads fuel had the the very about of quarter quarter, And in year. impact $X a with on last million setup fourth good finally, an compared negative

$XX those quarter our total, of XXXX. fourth the impact in with fourth revenue, of a quarter negative So changes approximately on had compared million

revenue the growth Organic XX% in overall. was quarter

which well business, major grew up corporate the and both was the remainder organically versus to perform during quarter. Cambridge, the grew of performed growth mid-teens. during payments categories in payments The well the which product quarter XX% by All our in of and comps driven very the tough in category XX% payments very was corporate quarter. The corporate the continues

XX% up as business X% growth organically card organic Our toll lodging in up was fuel was business expected, and the quarter. our produced business our XX%. And

around to As of of the there world. number our businesses parts lot a are always, moving a

was our businesses. but continue in by We some our of over-the-road softness strong international offset to see performances businesses, some in some

were quarter XXXX, fourth down million, $XXX.X X%. moving the fourth primarily $XXX.X Now income expenses statement. The quarter Total operating the up in of XXXX. acquisitions in compared due the to approximately was to for million completed increase

operating in a were percentage compared expenses XX%, quarter fourth As the of approximately to total XX% XXXX. revenues, of

Credit XXXX. to fourth quarter $XX the losses X expense fourth X of fourth for or basis quarter $XX.X due in X% were in million fourth The the of XXXX. additional $XX.X quarter, to and and basis the million, points, or compared the in quarter to in million spending. points from increased XXXX $XX of primarily Depreciation million amortization XXXX acquisitions was CapEx completed increase

additional buybacks X% fourth was due by in decrease in decreases $XX interest primarily million to the of decreased expense to partially share XXXX. million, in borrowing LIBOR, to acquisitions. expense $XX.X offset and compared The for Interest quarter

to fourth Our benefits. rate quarter of the fourth was of XXXX fourth for tax quarter to XXXX, XXXX. the of fourth of lower quarter XX.X% excess the for The tax compared was XX.X%, primarily than XXXX effective tax due rate quarter

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

term billion our of December in and $XXX approximately and million revolver loan had undrawn XXXX, availability. $X XX, As we outstanding on

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

shares for stock of In total in the $XXX.X million, fourth quarter our X.X a approximately for X.X resulting $XXX XXXX shares buyback million. of million share purchased for million of approximately XXXX, we

repurchase remains million. authorization Our total at current $XXX

and agreement. ratio EBITDA, times was well X.XX As for The of XX, revolving acquisitions leverage temporary other increase covenant our our a and flow use borrowing is maintain liquidity and to four of down acquisitions excess times balance XXXX. and credit share pay We below cash on as future securitization to buybacks was level EBITDA calculated intend our due our XXXX, the facility facility purposes. to credit December which in corporate under for

And finally, the in was million. CapEx expense quarter $XX.X

the Now on outlook to the for update XXXX. for

XXXX takes XXXX to I you our actuals from of supplement revenue XXXX earnings XXXX outlook, puts fourth a per our quarter Please have you refer make to through income bridge net our and and the as you want to to a there considered call walk number I from Before guidance. are model XXXX share. for walk sure adjusted

planning of of approximately growth our First, X% rate to and XX% rate income XX% are year growth another the adjusted we for range. midpoint guidance organic net at

corporate grow slightly. and expect and and We the up lodging gift toll to payments, be mid-teens to XXXX in businesses other

card category expected fuel grow to in is most be is to The organically X% range. led performances businesses. of the by to Growth solid card expected our fuel continued X% in

in growth to Chevron be market persist our includes XXXX. impact XXXX. tempted approximately in as by revenue over-the-road we the divestiture in softness current million conditions businesses, our guidance However, freight of will in Also, $XX XXXX expect

environment. our you update to macroeconomic want also the latest thinking about I on

for negatively expect the to macro and our revenue We profit XXXX. impact

estimating as the the fuel average. the that of absolute be same are We price XXXX about will

Foreign modest also today’s revenue be spreads impact they to on if slightly level, a rates, will XXXX. and have exchange at be continue unfavorable negative to will

total, an $X.XX about by estimated to million share. $X.XX believe items cash headwind create will and impact In negatively revenue EPS $XX we per these

on to will share share be had the we lower share borrow quarter in finance the our XXXX, buybacks, fourth revolver due buybacks. to Although to count our

and expect overall shares total, lower impact increased impact $X.XX the shares a we per about XXXX to share. of in the the finance So to for of net have negative borrowing

tax to rate. in we number lower XXXX. XX% are our but finally, compensation-related to share-based the our are There we the moving of tax average to tax parts favorably than a And XXXX expect XX% tax expecting calculation, to slightly be rate additional range, rate in the impact deductions

diluted This $XXX guidance $X.XXX the as income billion net revenues be midpoint is net out between net that billion, $X.XX with billion to share between and income and and million $XX.XX for year of net adjusted adjusted midpoint. between $XX.XX, $X.XXX and and represents to between for the be per to XX% share approximately income billion, revenue at guidance and XX% $X.XXX to in of our or the be be per diluted income $XX.XX, share billion, the income in So per and between the Total $XX.XX growth way, growth diluted at XXXX net $XX.XX follows: adjusted $X.XXX range.

growth guiding XX% are and share to summary, another the per year adjusted of of the quite and net fundamentals business normalized XX% in So growth before income good, X% the the impacts of to organic revenue divestments macro.

XX%; XX% to new preparing equal ending as XXXX spreads gallon of Some and, include the prices already of shares rate to the adjusted average; assumptions rates the January fuel we agreements seven-day outstanding those acquisitions average movement have million made retail the material the Weighted diluted of $X.XX equal to as week per price interest the the fuel; guidance in the the partnership impact to related slightly sensitive tax in or million not on in the for XXXX; of to of businesses and market foreign XX, of to in disclosed. average no exchange following: U.S. shares; million; approximately expense fully $XXX XX.X $XXX always, unfavorable

I Now terms revenue to the quarter the that and the first business and for lowest remind has is some our both in that quarter. want profit. typically everyone of seasonality, first

the lower and of in the Brazil, is in weather that U.S. kind seasonality celebration to quarter business impacted first holidays First break the due quarter. by in occurs summer levels and all

of repurchases impacted year. foreign impacted carry the expense by when impact, the will of the mostly share divestiture, first net associated quarter the approximately a Also, impact Chevron exchange The unfavorable rates revenue quarter interest compared $XX and million million versus $X revenue by and prior first which be XXXX. to macro

to quarter $X.XX In we impact that these estimate share share our approximately be quarter first $X.XX per of expecting versus negatively items total, will XXXX. adjusted quarter by first income per With we between are said, $X. our XXXX income net first and net the

second volume organic per gain initiative resulting quarters. should earnings fourth the new in through build should growth revenue, our in year momentum throughout year, the Additionally, the and share and our higher throughout

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

you. Please El-Assal conduct Ladies with we question-and-answer question comes [Operator now session. Our Instructions] state Barclays. will gentlemen, Ramsey Thank your question. our first and from

Hi, there there. changed And ask in wanted has the example, wanted tonight. card, both contribute Payments if question my guys, growth long-term in and there the still Cambridge It came of I dig about kind came to your virtual segment. overall a I way, to to to bit anything this rate for going particular, organic into XXXX, viewing any in Corporate little in I of – growth model. thanks below our see thinking and how taking there healthy terms the about to is It’s is in adjustment there? guess, just growth the for you’re segment? rate

Ramsey, hey, it’s Ron.

in So the kind flat. of kind card, subcategory, head a XX% which pretty of payroll is weak

you of core have high. in if cycle. was pull bunch out, political actually was super pay XXXX, the then XX% QX. QX growth So XXXX of second, But corporate up of I in QX in there because corporate it two-year have And been would I’m pay in was that the our it don’t of front sure a in rate me. spend,

if will, political So the this quarter comp, spend against of quarter no that quite the XXXX. XXXX you in tough, made QX because

I see.

Okay.

it view? in you do guess, quarter. high-teens. – front say, does I’d I what will what’s outlooking say, guidance?” say embedded bump business our it what “Hey, part that’s me. do again, don’t of in that said, I’d pay I’d But second by I okay, high-teens if whole corporate the the think of around forward have and, it, we we’re

investing in high-teens. keep has I we have to But pacing in the that even XXXX. here business think – we’re it out

potential just risk gets an FTC effectively also ask there the I your had see changes it business concluded, practices on response, wanted Okay. kind of more the lawsuit, And a and to lawsuit if just embedded this or also any could to that? eventually you address a of could on that. maybe come that in any I thoughts this your Any negotiation payment? if comment be as out about you timing? actual about appreciate penalty is

so has Hey, about this since guess, ago. complaint and Eric. real was Ram, the I days change the and FTC by filed foremost no or first is been XX

update on short we an given don’t So have of lawsuit really time. the period the itself,

around made be we we going thinking the business had think our its point a redress, going number comments same materiality time. around going at some conversations Yes, a forward. this of the TBD We think what have we still of is on it’s have to those our material impact to in and but don’t and are

right. it. my thanks All question, for Got Well, taking guys.

you. Thank

question Christiansen Our from your comes with Citibank. next Peter state Please question.

guess, evening. and there’s any to do with I if a opportunity Thanks always trade-off the the particularly between need question. of Good for think trade-off And across, card you a that I attrition that fuel issue attrition? business, that guess, looking type pricing Ron, pricing about changed? ask managers consider. how business, you’re to has

I there of as here world. pricing, steady, fair. rest fuel think either don’t the think making Sure she that I’d probably changes say goes. we’re any or in I material it’s we’re is. card

we I bit is, think year. of good had in pretty the guiding down thing for a a, bit XXXX a the reason a little

saw it’s really year comp; was we this full-year bit the credit. organic, b, little and think then X% a I better

with the chased being fuel, EMV laid in the guys say, get bad we’re stations. continuing I’d gas to at by

card business were the worse the in And fuel than say XXXX credit so I’d thought. we in dynamics

to that actions amount And credit, to et some spend, credit take so people had can the we’ve basically lines, cetera. tighten

that’s we say, certain reasons of the for guide. So part I’d

fraud? you – have Is to estimate an are of provisions percentage of there what do any cost

Say one more time? it again, Peter,

that How expense recent has Yes. What fraudulent in provision your trended percentage there? has charges? quarters? mix bankruptcy fraud that of of been versus And of where expenses kind has

are. there $XX But up at two kinds where right? that makes actual an of what we And will. the Yes. are up it’s basically I’d they never fills million if fundamentally circa say under it Someone handy. then and business fundamentally, application I’d fraud the of call I you don’t fraud. station, have super fraud gas someone say fraud, tanks,

up we back sure, front in so don’t have on in two prior And I circle years. me, it. those numbers are of can But XXXX for it over

as converted pin to over fraud and period year, migrate our forget, to after losses the be don’t next everybody’s and and chip into are decrease And new next we hopefully, chip of going when year time to October requirement. a very pin minimal hopefully,

helpful. back into I’ll queue. That’s jump

with next your Please comes question. Our state SunTrust. Jeffrey question Andrew from

is afternoon. with sort a comments the taking terms Ron, question. in opportunities. I’m you we M&A payable what more Could just Should little already intrigued as and would to good that augmenting Hi, might software what color a the by of – or look be corporate looking think about regard talk bit procurement? payable like about for helpful? you offering you have? perhaps Thank doing, little bit evolving your priorities like And software Coupa a that little of

The is, headline workflow into with and and payable, the think Andrew, I area its of payroll mean, stuff. the in using software idea clients and employee-related, payables software around the to I two procurement or just so the categories, payroll them benefit clearly bigger in the Beyond help or and administration right? as we’ve benefits software, of using kinds different Yes. the are into gotten

– And messed that payments think at payments so some is are end. of there thing the kind around of in that the that kind that, the I idea front the targets of the are

better that the we’ve months And over experience of we the we client? thing some a front on bundled six the in that’s hey, so of bolted create is, I if hey, payment, a with basically hey, last software think could been doing

might obvious clients. companies And those it’s that have obviously,

be us we do. the it that into might entree an So thing for payment

didn’t But really to explore say, wouldn’t ago. at causing to it’s us months ready that we’re we concept say, a in six pull So look I’d trigger. the a set I targets of

manufacturing proceed. And now, a clarification, a I just of how at been fuel. would the OTR anyway? I in It have for be Okay. of may, is soft year, All if or couple a to recession you interesting and years understand point around see right. least

versus – sort guidance deselling, if facing X% in or that Fuel Beyond comps sort of parse out does it same-store much could over same-store the of how that tougher just in Fuel some to X% weakness? X% is sales-related, Beyond of economic how grow I of XXXX, Beyond much I of suggests wonder The sales that is might or Fuel? offset thought be the you might

it’s combo things Yes, you those of of a all said.

So one, think, it’s I obviously Brazil only and was, in I softness. terms a we good out comp, sales, the Two in a minimized UK good range of our X% weak. trucking, called U.S., X% growth is, but the in or base the same-store is rate think it in not XXXX. in And negative in it

quite weak. it’s So

mentioned last it’s I think, I And is, the one then credit.

accounts a So, we example, fuel the in approaching card acquire. of new we very XX% our all I the get number think, it’s new accounts large of for now U.S., digitally

what got. we credit we’ve Beyond moderate the had so – via all based experience credit that offer, certainly both we’ve on Fuel that to at can for and And credit the channel

kind to want cautiously. of careful, things going going we of then and in in We don’t expand blow dynamics it. I So the stuff studied credit so signed the slow, XXXX, let we’ve kind up, it dead end. decided the we’re of just up to

to pretty we on the win might through really way cautiously better, So side. we it credit pace Andrew, But the our I want do as year. –

it. Got

Okay. you. Thank

you. Thank

from Our JPMorgan. question. your Tien-Tsin next Please with state Huang question comes

much. so Thanks Hi.

or just would there impact the on Andrew’s the for what way guys question assumption the the in the side. lift quantify fourth quarter XXXX a up is on initiative? following And I’m the quarter? just fourth Beyond beyond Just be the in to curious, in

Tien-Tsin, in have don’t of have in kind It’s say. me, front in we range, but QX. Beyond in the and revenue XXXX of And, I’d certainly finally base is now obviously in what – the initiatives again, X% we now I the that to in real all have X% the something

they’re small up, coming basis. again, to all So relatively they’re but planning off be

we come something board, probably I’d out and it’s say, could X%. to but of So across dig it’s back, X% kind the

mean, you broadening Okay. gave client in broadened initiative? us you’re mentioned far willing going? example. far tangential from are from an interested And offerings, go there, to this I’m But to core bit little stuff core more when the as are I how client – willing I that you payables, the a I’m and at, the know you you to meet look then offering give curious can you your how

not super not Yes, far…

Okay.

…would headline. be the

And so the first around were one is, fanatics models. we

So got a lot it’s business first, to to And in like connected got is. business be what someway. the from the we second, then model separate

think there’s a invoices, got easy of procurement do either that all software, should ready that your ERP them, example, get keep them lot it’s software, to have and at referenced I you’re of should because set and when to relatively click an work I vendors some to you in or understand to others X,XXX to if pay company a AP a pay. have before the manage track of you and whether you you’ve

clients obvious as a go to like us ways things get seem so we’re crazy. going broader But bundle. more And that interested maybe to in not to

to trying do that things really some highlight are close to we just that there’s what we adjacent We’re that like.

you just sold, holding we deals Travelliance sized the M&A if invoice anything don’t an on you Okay. Last could deals pay like have that’s in way, you if a XXXX like side. think there? terms every one, few doing or you we bigger some XXXX, Do – of mind, in back of see looking should XXXX similar

elephant answer. sheet my on be I’ve me would big my so, yesterday in review of front hope certainly got sitting of and here I actually it. a had

it’s or to probably am as is I good some do Eric, big, set. are sights our reference balance trying been. So place ever sheet our better than

like thing certainly we’re But going good interested So a but rush on it. the I do in not phone others to before, we it’s do, told probably you to Tien-Tsin, are eager, we’re doing because just to something.

Cool. Thanks. I it. appreciate

next Our your question Sanjay question. Sakhrani comes from with Please KBW. state

And I what’s you or walk areas that the made. that there investments through question investments? is you where investments are do of offensive, being Is us Can you driving being these better? where you. being you’re it first my those think made? competitively Thank are guess, guys on are some could

Ron. Yes. it’s Sanjay,

I’d So one, in you pro it’s step sequential if the acquisitions. the think investment, forma in, say, some forward about of roll

XX margins, So really carry expense of right, That’d the that one. number some you roll XXXX, as be is business. growth, lower deals than our of core months just into

been traditional bigger planned. have we just the growth with saw, line the two the we about we kinds servicing change. a Number But two down IT fact discretionary will XXXX our of processing, finished expenses business that around what two I tax three or point, of that would ones we’ve the last volume rate and go be set modeling kind think, of And be hand-in-hand sales. and probably would that months,

XXXX, Eric think, number I I XXXX XXXX. the when to guided trending, we and For saw

hey, an investments few So the said, we XXXX used midpoint, in at a sales and maybe IT. we make there’s opportunity to

added us. we cloud, just our bit layers we’re how around the So move a terms – UIs double said instead projects, to processing on improve we better transformation. for connect, of of I the warehouses, as really in API with they data interact more, more have just down trying to customers

kinds of, So call around in just – significantly cybersecurity. I different and Obviously, spending we’re it’s a more it’s it of series IT.

of non-line So call it’s at. that we’re we what investments investments and project business looking

dimension types opportunities aren’t that Or returns really viable are lot of is just not core? it there’s Is elsewhere the it it follow-up then attractive when the questions. more think scope we these to the enough? of M&A offering? And as I guess, get about acquisitions? And the attractive have same a stuff broadening Okay. to and these you the at your another adds because on all of valuations just

Yes.

I how they prospects our outside identifying very the it’s think we and and what of a work clients it’s kinds about to trying software at look their lot fit world really look in, like do. that in that and go services doing adjacent and us

of basically that So clients try it the do I’d their say is first to to that help package things work. driver

in similar one areas. getting said, second obviously, and again, that And bases in work sandbox you cross-selling go opportunities of creates, obviously, then bigger what are a create client the may to just some it

I pull adjacency we’re and at, a have of that prepared give So a that, lot services And looking could you it’s something the above. be heads so to that the conviction software up that. trigger. tell be if are all we we that everyone before to going to people is quite again, cautious and want we But

just clarification. But a

potential terms you’ve done of that it these the types Thanks. In accretion or of of is before, different? to it is any stuff similar of the deals,

mid-term a not and accretion mean, fair all looked easy. have last the one things number I in you the of that’s that some guy in don’t super prospects. as assets is accretive, both six only bit are buying box buying years are think always growth revenue of first, a months. We’ve opportunities been the have that at but couple of And growth last I know, not these

So I would of at say, make look we’re trying characteristics. sure to those we at both deals have

All right. Thank you.

you. Thank

next Sabadra question Bank. with your comes from Ashish Our Deutsche question. state Please

taking for my question. Thanks

momentum pretty good there. toll, So question on the

on the traction good You talked XX pretty opportunity. million urban about user

the and which if you was can slowdown mentioned potential going contribution of the and going also forward? to it’s in urban tools about deal user forward Thank. But still just inflation. think is urban I we how the from wondering talk guess, I because mostly healthy should user pretty the win low-teens, about You

Ron. a it’s Ashish, that’s question. Hey, good Yes,

So them. of I guess, one you hit

bit has why said, in Brazil, you bit less Brazil of growth less step organic back XXXX.” from you in. bit a hey, hey, a “Hey, backward if might that little gone what said that is One baked a – so So is inflation

number new some for the is banks think periods, free longer us which business new reason of that down. the then acquiring takes trial six open I and And competitors the the toll been two, and the some of are accounts starts we have in pricing of programs. that And XX-month on to that or with offering Brazil

make that believe premium we network, and sure want getting although with we’re brand we So still a to business.

the that So be would one. second

we of could put think terms In be. let the this how mean, big me thing, context it urban I into

opening I and new have circa XXX,XXX up users new tags call in me, plan my front guess XXX,XXX So but in of urban it, urban somewhere the it’s sold that XXXX. is, users XXX,XXX so remarks, that for in core, I signed we in the two my commented plan XXXX. new XXX,XXX don’t

standard new toll only users, sign X users up year. million about We per

keep XXX,XXX, a meaningful. impact, so XXX,XXX starts can up and snowball as And number if we the quite you get up forward, that roll signing sign to million, that

something that now So to sell evidence and we’ve we tell it able it. of – around city bunch to I’d actually you offer say the got an use to one in of and like, a thing we’re is that, and people this places payment RFID convenient and communicate is thing the

got the And those build got try users. and got so now number out to further, We of to we money keep we’ve it. network for in scale got which we’ve to to adding

the number it, but be it a meaningful could So, bullish over I on mid-term. we’re here think pretty

helpful. how a investments? investments? to on pretty in question the just as And we well these should are follow-up and make maybe you very the Thanks. ROI digital booking you going positive. should sales, forward crack going on the retention, – That’s investments How that’s those think then about sales as How as

Yes.

one, sales the We, investment build say know, to production So models I’d as sales and increase one increase shorter-term. year-over-year. guys you is year-over-year that sales

accomplish is, So I commented we’re I production And think I’d this investment year. guess XX% sales we’re low-teens say, sales my XX% incremental probably that planning, incremental to that. example, spending to

to I a say I’d IT we nontraditional. different. think the bit is the incremental one money year this decided is invest

cloud write to all to structural, do allowing easier, us again, fill it’s more environment multi-single things stuff stuff us, client, co-basis to hardware For economics. with better into infrastructure, to in a old platforms changes on you on that applications, will, make better if get running architecture,

year and But new probably or key footprint that application have things. to IT on technology I’d out the of I this for So there two us, that the is, simplify say set have. think the a we we returns footprint

making get to positioned that. And we’re do so to in some investment XXXX

very helpful. Thanks. That’s

Thank you.

state comes question Cowan with your George Company. Mihalos next Please and question. Our from

Good though I payments Ron, corporate on back change those the full in segments of just side. any circle expect to on the to being the two XXXX. the Hey, just Should of of in business sort into of sub growth kind out cross-border rates guys. looking virtual high-teens kind kind be of call, thanks. and segments? for the putting focusing or to file Maybe outsourcing card, growth traditional on appreciate your we on commentary decide versus

Again, includes the payroll card planned subset, that number still grow Yes. super. high-teens which again not to is

– kind we that if out, core do again, even of So better. corporate might the a bit pay move

are we say, thinking slower. business about FX bit the Cambridge, yes, a I’d probably

of thing, in that full the and grown our card of AP say thing, on planned idea is virtual new that in outsourcing, again, couple years bottom. So more on XX%-plus the high-teens. line that and obviously, we’ve top combo the the the I’d old line our

businesses, major the the kind both business in the and are both hand-in-hand business growth terms really, FX So of of rate. payables

clarification. helpful. on set very will put Thank on one Okay, the larger scale a of hold a that potentially of And or the pause over just activity buyback your site With M&A, point of sort you. year? beginning

of George, I lot liquidity. Eric. reality is, the not. Probably mean, it’s a Hey, have we

place sheet is earlier, our ever in really been. as best balance as stated we As it’s

low. to we of what that’s do. is listen, pursue we plenty to both want avenues, And Our leverage basically liquidity got

we’re it. say to going wouldn’t I do not So

Thank you.

state from comes David ISI. next Our Evercore with your question. Togut question Please

afternoon. you. Thank Good

initiative you Brazil, the about Brazil? Brazil, any And the have out McDonald’s expand than initiative of do of growth this on credit Beyond brake Fuel. you some very of historically, you transaction to with you’ve as I recognizing the what in this Toll the U.S.? then In think kind Do about the Just Beyond expansion given to different U.S. other initiative? numbers any in concerns words, on related Beyond your growth relationship is that, upon Toll there in is a have

Yes, David. Hey, it’s Ron.

good were to things. a amount two that credit So yes, booking say on of some the new business One, I’d on credit side, our card. question. large it’s

literally, going booking. not two-thirds it, to So credit pretty worthy. determining other that that we’re new we’re screening call of taking third, risk the business that credit obviously, say, I’m it’s we’re for, and And

in over prior or as in So it flat, believe that improved, shown the a dynamics not, we’ve of year, and got credit the kind model market in that actually XXXX. XXXX,

that. slowing What say sitting that So the credit non-fuel on slowing risk governor trying us is out the today, down us That’s speed there. build the network. was down aren’t I’d there really on dynamics here or to

And then for quarter? growth, see. McDonald’s fourth I any the there metrics transaction

it and to I know front be in it’s don’t planned of up it’s up I again me. have XXXX. in

remember, XX got, locations on. I we’ve can’t additional we’re think that I putting

having guesstimate front my to of piece me. it’ll So be paper without million X.X the X would million be in of

Understood.

you quarter, MasterCard rate in more is fourth card appreciated? final quick the business? the have if in the card that business growth fuel U.S. question, the be would for growth fuel you still differentiated a giving And versus traditional the Just that

up Ask just it – you second. broke one

again, Ask if you it, David, would?

MasterCard Historically, fuel Yes. for out you’ve given growth quarterly transaction the card…

Yes.

product product. that core I’m curious, fourth the fuel the that if Was And interchange in quarter? just than has that …the faster case the – grown and business. historically card still

in front of you? Eric, have do you that

it’s, don’t fuel front talk business. the the growth – grew of something of in whole if lines individual with exactly the the I me. kind the line of have ballpark. really We think in in Yes. average sector, But of it don’t I it about recall, quarter on I that

and concept our with or the this particularly say, I phone for again, I’d people also for a business, with some help for pitch. able to a card back people to up payables spend, the of one clearly supplies but don’t David, construction that Yes. account that be offer idea, help on company supplies. winning open number, or It’s know fuel control two fuel employees a then field or cards the

for I concept some sales these is a where to and the XX% very where interesting sales, about some new the this don’t account in payables exhibit, quarter, in account QX the were saw of supplies, I different sometimes QX, adding know, of in two of all fourth or And users our offer. with

this offer is is So of expanded I to concept product the think the good.

appreciate I all Understood. the insights.

Thank you.

Our state Cary Please of America. Bank with next comes from your question question. Ryan

further. little my in for like were bit weakened guys, that a it It and sounds if environment remains U.S. to Hey, we XQ, tough, were the in underlying particularly taking like compare thanks to trucking the the what sounds you seeing the it UK. But question.

that fair? is First,

before And get into you to things they get expecting while these or past headwinds could are second, XXXX, then likely persist the are trough, worse we’re better?

got hey, QX. know, it throughout also at trucking, Ryan, XXXX. planned line on down some. soft. don’t it’s at I’d is again, is I on, a say for some little Brazil look worse it kind the of all got of than We the is bit base reason, it’s It Yes, piece I UK worse trucking know down Ron. that I think much, paper, that not of we Yes. kind the which softness a as don��t actually is

has XXXX negative, be planning in gotten we five to our in are to range of a bit guidance. and kind worse the three it it XXXX, So during

it. Got

from of on Okay. is the the Beyond just from up Was fuel fuel X% if initiatives. Beyond break it is then And contribution to incremental contribution or clarification a initiatives the then toll growth – toll? inclusive quick the both there and X% and that into side from revenue anyway the the side? And individual

Yes.

– earlier. is do I think what asked we should that Tien-Tsin because

them XXXX it the out, will, categories, some we do color vary I line of are the of and go you rather right? major on in give they business together by contributions our each just four efforts should are put stuff. to of where Beyond try business think in embedded maturity, what we different numbers of you are that The line more because kind The of throw a and than exhibit, different. guys if

a hopefully us. And takeaway take just something so, useful. remind and guys that, We’ll as you Ryan, that to is Jim, back with come

Thank you for questions. my taking

remarks. Ladies question-and-answer turn Thank I’ll management Thank you. it and concludes session. closing back this to for you. gentlemen, our

guys. for today, Thanks Yes. joining us

you As else. if or always, know anything if you questions need is further let me any Jim, this have

great concludes evening. a parties All may call. Have Thank disconnect. you. today’s This