Corpay (CPAY) 7 Aug 202020 Q2 Earnings call transcript

Greetings, and welcome to the FLEETCOR Technologies Second Quarter 2020 Earnings Conference Call.

As a reminder, this conference 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.

begin. may You

Dey, and press our everyone, X. me for us over saw as CEO; joining are: Freund Eric and Good as for who who quarter thank will XXXX for you Eric and Chairman second Clarke, the With September longtime earnings today CFO; Ron Charles earlier afternoon, in our you our release conference of today taking call. be

at into information be the financial adjusted in prepared revenues, diluted the your GAAP This mostly information net on get found call, today's income accordance Following information section Please as our information Relations to today, will opportunity differently not our previously and adjusted It release session. calculated press be will presenting directly the queue and earnings the supplement website historical than companies. and share. this question. that we be the comparable appear for announce described. on then queue website is comments operator open and with note, including adjusted GAAP then at in Q&A our information Investor Reconciliations Throughout non-GAAP calculated of other under is can non-GAAP may the financial to only will release income per net non-GAAP FLEETCOR.com.

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

Exchange Commission. with on turn press to way, of and and These the and sec.gov. like website out Report Annual available on Ron I risks XX-K Some Form filed today's the of in and our are CEO. mentioned the would Form our on over those Clarke, release, X-K Chairman at are that call Securities our on With documents Ron? to

afternoon, Good earnings second call. joining for quarter and our Okay. thanks everyone,

begin remarks, a say I big want my the you almost Eric beginning. making do my I journey pal, for Before opening with Dey, to from to thank FLEETCOR the me

we've a had I good way. enjoyed together the and along think some time pretty success

us new the want So all other CFO. of long-time At us as welcome the transitions into he from the do with beginning to miss will same I partner, my Eric. you, very also Freund, time, of Chuck role

So our Chuck's literally He's some company. future. aspect of helped been plot businesses, run he every involved He's us the the of bought businesses. in

I assure can a you, terrific So CFO. he'll be

Okay.

So four back remarks, cover prepared subjects. I'll which my in to

response on report that the I'll we initial the first, So undertook. COVID plan against progress

provide I'll QX perspective Second, my on results.

Third, year. line we're prospects trends provide world. thoughts lastly, I'll a Fleet's speak to long-term the then on perspective of on And our of in that with I'll business July, in seeing rest the along trends, post-COVID the here

Okay.

It against in against progress that response the the motion me we summarizing let So COVID put was by areas. into QX. begin plan six focused

safety. So first was

look to loss seriously So credit aging business continuity, positive and our with plan new our our in were performance to on QX and We're and continues QX been can our report this results, delighted, Two, very quite deliver honestly, good. at, very, uptime we few very was remote again I among X,XXX receivables report that. think, Three, services about million, in came in credit. $XX systems good. very ill today, with global which no cases had environment, our that happy and original pleased virus fortunately, to employees very one we've we've able so

far. so intensity. We even liquidity. spot back stepped repatriated a Four, We to up collections secured at the cash. So of quickly a a quarter. our bridge tried We the bright liquidity loan. We beginning strengthen real bridge

companies, approaches. selling. And QX So sell leverage of expenses. profits. times. so X.X this good, is weakness to different we our so lots We today, obviously, QX, differently, lower salespeople we'd kinds new to remote around in is built, we leads, anticipated, for have XX% that our our get providing the then work trimmed original billion $XX home, that new liquidity new than ratio, last of lower, We to in monitoring targeting $X.X Expenses, and actually is expenses new our we quite managed which knew ways progress plan cushioned tools world, million at so

really revamped selling So started to rebound. a model that

shout-out I sales do things, jumped It want these employees all credit, these things. set to urgent give really performance. to really quite on management, a who on of was so HR, FLEETCOR to the So IT, good set of

Okay.

make turn me to Let QX results. our the over

$XXX which which XX% down and prior $X.XX, million, cash down versus of of EPS So XX% year. is we revenue is reported QX

So reduction our actions narrow our expense decline. profit helped

year its line for in the organic at XXs in of Corporate terms overall. and plus high XX% average. finishing quarter, the plus In column, at pay revenue subscription somewhere portion, in the minus lodging the by but XX, minus driven workforce minus coming model. three prior total Fuel XX, toll down at the in the quarter, for behind XX, so about

as quarter. business. at the clearly new And of every our obviously affected through half client XX% trends, great, rebounding level growth as weren't but client declined QX, the for of XX%. saw really about softness stable as by across same we remains so year's terms move COVID, In about Thankfully, the same-store sales organic we sales, one revenue retention the in quarter, big last

our at hard way of kind business, aspects of down did of Because is if it's kind Loss a about client at this result on a to in of the softness of flow quarter that this, being client here It's my about new stable QX, -- this and they free pretty of a profits We our on but reflect way is conclusion. revenue, to look softness XX%. and really it's finding line like of to So cash story, as plan. can us. us, generally were retention down sell we million selling a you confirm $XXX right-sized keep for okay, other in and company invite keep environment environment. flexed kind in the we good expenses services in generated Feeling with Credit quarter. COVID.

So bright spots. a few

that July the Okay, year. we're rest transition trends we're to let about me and thinking in how of the seeing the

that more business And of So at we we've recovering included in there really are chart They're volume runs the last the few every business has July. see the client bottomed a the businesses really out, line in that including and a of July. distribution. entire quickly least have affected through supplement by and bit you'll earnings months, recovering many

amount, a are moving So clients a are clients are we so all kind bit, by volume. medium adding lot. a clients that up, that distributions, down that down up look moving of clients are When at those super down little they're all

business; client businesses, as couple things fuel us you getting softness clearly COVID a the just simply new just better. through lots So their out our nicely of powering And Russia, international thing. on call-outs, AP, so because of Europe tolls, of full high-growth can recovering of ahead see very

still terms challenges have but In we do year, here rest expect short of of continued we term. improvement,

recover, unclear we but will to as quickly. continue think, how to volume, So

volume faster slowly will because larger mostly Our with seeing recover portfolio. lower recover second mix. more enterprise half that's our small We're revenues than business and clients of rates than

We're year. on prior second XX% do We half, We to to lower continue to prior half of year. hopeful sales year expect levels to targeting versus recover get XXXX. weigh about in back XX% the better. And macro, our to particularly continue expense we than we getting to manage FX expenses, to to prior second year expect continue down lastly, expenses of the here exit as then plan close

will QX So still in but than QX again conclusion, challenging. be better QX and

point let transition level, a here new FLEETCOR view at And of of headline at you kind think workers kind company. me I that, of long-term But but main because a essential and on, it's the last, us will if of quite impact hold will out mean, business. core, bag, of margins, mixed our powering impacts will, behaviors business the the and core over we the think keep coming those of we is at puts well. to all be that COVID behaviors will So our the there's this how new the the takes. up of

will card and probably create term, business some impact at digital our cards. collar edges airline So have our our And our business. white negative over shift will on fuel face-to-face gift card bit business. at expect businesses impacts the again, to so accelerated which long the will term travel that Likely from purchasing less European and least commuting we dampen collar is then, less fuel because shopping T&E a white midterm, crew lodging and away the that business card pressure digital long

On for work-from-home, front, working model everything certainly outsourcing will the demand the outsourcing, drive remote positive generally. whole of

virtual lift of preference demand touchless our full our So that almost businesses. lift think, And our really payables for card think, attendance, card for business, of prospects. and we avoidance all the will AP our and we will

pay instead reloadable checks. booths, cash cards, cards electric of the payroll cards payroll AP pump Brazil at checks, printing So are in-store. versus virtual tolls versus fuel that versus nonstop

of are for impacts, at view do we demand and solutions the So is that is clients essential what that, clients. group that the is we payment look, of margin with our again, workers good at continuing the be core there'll headline and for these think, serve that

our We're of we primary advance focused stay So to we Namely, here. We to what clients and the to going priorities that's do control world do. wait priorities, do? on main can company. for and three we the recover what the what can

more portfolio. more to create our reposition businesses, is businesses, fewer, one more non-fuel at faster-growing look businesses So and bigger adjacencies. portfolio, add likely continuing things We're add to

our more We're segments both our what to our enhance the channels big products, to clients. sales cross-sell through Beyond but can strategy, strengthen broadening Second, that transforms TAM importantly businesses maybe, each of pressure, our businesses target. penetration each our our also of and back four more which their create working pushing businesses. offers, our We're business again

then Brazil technology. strengthening So for people. the capabilities highway dwellers in on toll the city on working only crew particular on tech of users workforce versus -- we're a base urban lastly, example, airline company, lodging And emphasis versus or

IT us IT, in We'll digital you'll DIs cybersecurity invest protection. more clients. UIs more We'll cloud. So to more applications our to We'll move continue the advance for see improve and transformation. in

better get to IT. continue we'll So at

it So if from ambition progressing capabilities, portfolio, profit priorities, penetration of business we our growth our to company. and supports a XX% XX% keep our perspective, three these

up holding performance, QX again result our a aspects So as -- in particularly softness client retention sales, and a again, closing, credit of of same-store our QX other of nicely. really look, COVID, story with business,

but around we short for QX, half, serve We main term. quite think, payments that, takes and the I think world, which our the message the But is us is sure, we -- most Second do again that over as clients that, the of needs, we relates the that better puts services, think thing term, to robust. than that the it still remains again core today around margins from And longer challenging. importantly, quite business see good, to COVID. essential

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

Thank you, Ron.

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

of However, the there a to items that call want I were unusual in out. quarter couple

a investment a million XXXX The company's of a second $XX tax in the quarter XXXX related position benefit approximately the the to in tax in and quarter by Bill.com approximately item of on $XX. of a to tax second impacted company's $X.X investment million related of discrete prior Masternaut. sale of was the Also, was gain

net income decreased provided diluted Excluding And will that these release. Non-GAAP financial discrete compared adjusted is million items, share XXXX. last and we income are net in net the share metrics our in per diluted XX% per per adjusted numbers to press Exhibit $XXX.X per GAAP in $XXX.X discussing diluted net same income be share. compared And of XX% XX%. reconciliation the income to Adjusted adjusted the period XXXX second decreased net and of one income second in net to million $X.XX income quarter to diluted income $X.XX for quarter of the net share XX% decreased year. adjusted decreased to

we driven fuel Second although negatively in quarter reflect in in spreads of quarter, by impact quarter quarter $XX believe environment we quarter the unfavorably cannot compared million. mostly revenue most precisely calculate finally, approximately results for impacted revenue driven of in by $XX macro about rates, by negative full quarter. the the impact softness primarily We Brazil, favorable impact XXXX. favorable XX% overall, the changes, approximately million negative it the were And approximately second the revenue. and of for Organic of had negative same-store believe down these with prices in XXXX FX million of a million $XX was $XX when was impacted of The were year-over-year exchange lower macroeconomic Fuel XX%. by year-over-year quarter. the revenue primarily from a a the quite foreign and sales

more others. some categories our major by impacted product quarter, of the All pandemic the COVID were than in

a moving our There was Our fuel the XX%. businesses are fuel about world. around of lot to down category parts organically

to which payments a at revenues SMB in with although have category enterprise rate were per approximately Our of faster in Both slower accounts, in our recovering revenue and XX% reopening And our volumes quarter. large remainder the was have to we are the in economy. rates seemed May, higher U.S. geographies' setbacks businesses. June Volumes barring year, as fuel second in the in more improving fuel the be volumes July. bottomed international April, organically fuel corporate over of than volumes the gallon. been impacted lower recovering, account down should any out than continue improve The into the are category volumes and business the recovering

elective of sales our in oil AP travel, payments same-store our to corporate payments As and is The a verticals. cards, and cross-sold cross-border from the plastic, card virtual retail and corporate in reminder, up payments payments, mostly gas, came made business full-service softness customers. T&E physical mostly virtual healthcare accounts

and expect in the some which seeing verticals, at other are retail recovery travel verticals recover We than will we slower rate. a

to in to continues business AP well range. perform high growing and is full-service Our double-digit the mid

that the Our toll proven decreased the COVID. to grew been business in category products Beyond where have due the products significantly. economy organically be quarter. of like by is has and and slowdown the to impacted and interchange, has Most second significantly volumes Brazilian Toll in subscription-based The not in X% we parking, fuel fast been category impacted most our resilient the revenue mostly earn had are this where at food,

Brazilian services Our is lodging these economy segment up to organizations revenues FEMA lodging quarter. lodging our and organically business, and which recover. is workforce lodging quarter. XX% service for as primarily to lodging starts XX% the business was crew expectation business, The provides services distressed in airline to the recover reopen accommodation which Red travelers and made category the to emergency Cross. in legacy of our down such And the and as down airline second passenger was This accommodation the provides

mostly hotel. business businesses. less improvement been to has generally this to vehicles as workers the drive lodging Our This business expectation much impacted continued business workforce travel-related lodging for provides than blue-collar other our who is see for

the However, lower as are slower we do faster category expect revenue to with rates large our than recovering in enterprise accounts. SMB recover accounts

our We business recovery lodging the linked to and be expect is slower the airline to industry. recovery airline of

million $XXX.X the second the primarily to statement, was the XXXX in a cost rates. moving decrease implemented expenses decreases income $XXX.X quarter cutting volume, million quarter costs of second to foreign compared were decrease and second Now in impact total down for The XX% quarter to initiatives in in with exchange XXXX. of the related down operating of due the

today. the we categories. bad Bad the spots driven second the XXXX. to increases Bad offset our XXXX. mostly primarily million points, to of operating $XX.X in $XX.X the XXXX. aging XX% the in The the unhedged to has the percentage the debt, has bankruptcies on our approximately to quarter the buybacks lower XX% mostly decrease been LIBOR XXXX. the more was expenses due expense in million in second bright compared particularly Depreciation in million volumes debts million related decrease or the of surprising and of increase by basis were the decreased in one-off foreign $XX.X are of Interest due are of of lower XX.X% basis was quarter XX.X% been environment of due in our was expense of seven seven interest in primarily to amortization in partially decreased total to to XXXX in or to in one of second in quarter revenues, from versus as XXXX or quarter The second to $XX.X debt As by securitization a expense given agings of impact $XX quarter normal, share and compared debt million compared second million points additional second borrowings exchange of borrowing facility decreases impact portion second quarter rates. quarter. expense $XX.X Any

of rate second XXXX. negative the to XXXX Our for effective X.X% quarter XX.X% for compared was tax the quarter of second a

The increase investment reserve quarter of benefit the with the of the by tax XXXX, a $XX impacted in Also to was the related $X.X to sale second prior in of related a company's quarter million XXXX Masternaut. approximately million tax was for second years. of reserve uncertain

The have on was the second tax been these excess items, XXXX, XX.X% due decrease have rate the to in primarily rate Excluding rate would of discrete exercises. of XXXX our XX.X%. benefit second the in stock option in quarter quarter tax tax would the and been tax

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

any have any $X.X to credit We securitization and ample we opportunities. As in billion on we $X.X to liquidity, billion sheet, weather cash liquidity in facilities near-term on revolver consisting COVID believe facility. the and bridge undrawn million the total pursue scenario In M&A have $XXX borrowed loan. and we balance our of our of had total, June approximately outstanding that XX, undrawn XXXX,

During employees' approximately for remaining forfeited shares authorization. with the we in XXX,XXX sales capacity to taxes. connection employee shares million stock our current under repurchase And second approximately as repurchased $XX.X in $XXX million have cover quarter, we

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

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

everyone to although, turning pandemic, want resilient, year, others. are businesses COVID for impacted Now to than remind by I businesses all very the our our of the that balance the outlook the have some been more

business are revenue models nature. Our in recurring primarily

We have and very diversified geographies. broad customer businesses, industries bases and across

this will We uncertainty There as rest resumption the much of accurately of year reinstating the volumes half world, are volume could around not point. regarding what be the expect continue is of the guidance activity improves. to We simply our second to year. at our too the business predict the economy that do improve,

the half expect than revenues with likely volume, rates will However, lower recover we recover our second of to faster because slowly portfolio. SMB accounts larger year than enterprise more

period really words has will also macro over rates, have been questions, compared everything And to turn about want rather better that next help And year. for And up I no FLEETCOR the before open have I several catching long life. of thank look we'll and exchange due over earlier. there journey. off to to will spent I that XX challenging finally, when the revenue, up time to some I is things questions. role. the say And this I to a foreign into before to have his over my for equipped fuel accomplished drag with chance my on transition many that cannot for with continue prices a months. the thinking believe I over that it forward ride, quite I be time. done would a chapter not to exchange Ron We we of take person expect the foreign and cannot over last call with It can said, be expected of time years. lower last for the you many have And operator, this head a of next around I I and kind think

of Thank you. question comes Tien-Tsin from [Operator our Instructions] Huang And JPMorgan. first

Eric. Thanks,

add well. my Let thanks me as

you is that. first you [ph]. hoping might three I Ron, similar as things? about Or side on been the -- area. Just probable being comments think can't entering you did to how my of expand entering And maybe go trying automation the to Going priorities. about, your just believe a think you think how adjacencies I Do question, it's was thinking I tolling of adjacencies to far more question the My mentioned you what to long and is could think adjacencies. like similar it business? AP when you about with in

Mr. so to Yes. Sentimental share an next even here come and to believe sitting Tien-Tsin, can't good I I your Yes. end. things all sentiment

the do the thing So looking the of they kind I payment. adjacency call, in came clients, so last the of idea what mentioned, at this guess, before I or out of after

Pay And and time, in of and Corporate workflow example so that last before we all the business, stuff front and prep end the approvals I button. and pay all press payables gave the invoice the

And of in would to the particularly be what clients. core small a example, kinds more continue an And are little the be there and example to software another what front business. First of kind telematics. kind nests we to And So software, we end done, the old business that acquirers of helpful with SMBs, fuel guys see if of Data have [indiscernible] again are those do. look things other is our Global bit card around can

people. SMB to figure another there out were of was close to we service software dealt a with if cards So service fuel that trying steel

that software couple where a there's the categories at looking there, that's we we're in. some in the in So that of we're have things verticals

selling as more us of cross-sell we perspective, not more well. that thought bring it could that got do the help to adjacencies So from again, the that to clients we've those only to sell is clients right, helpful books may be to so for them that the also but

So examples. be couple a those would of

we our kind literary each the in one So of front of the back services. study around

you. Got

real to get I'll Okay, know. follow-up quick call. that's and good My off the

these Just were new on impacted sales sales Obviously, new quarter. this visibility. the

Just quality beyond replenishing and how have get sales of as there you summer? you the half think visibility the the the as we of sort that much see second of about in year, do the you

little. broke out us just you a can question? Can -- well, you you repeat Tien-Tsin, if hear you the can

Yes, my sorry. signal's I on additional no Just know bad. new replenishing have you confidence and sales I visibility in your that cell as power and any color outlook the there? exit the year,

Yes.

think I I heard now. that

a I question. think it's great

reported and thing already, it's better than around at June peak first I numbers. So it we're a right? for half the So starting quarter, is so to think little I it better July that was the was

So kind out things some we've QX, headline better the is got figured the is in of And took us right? already. first think I pitch new You've time different it's second which people. to

got leads find in different You ways. to

trade You're shows. to not going

face-to-face. calling making not in So you're right still

to some cadence for back head I the the the the early. XX% end toolkit is from forecast it, getting we've And pay and that to, call So starting people, of the got year. towards is again, people way think returns and selling of as we the

point there we're mean, to a to I found was I tell that super weren't mean, delighted enclosed engage there got honestly people we I this in a where we sure. you, world. So way

they where it's impact XXXX. of our in question So a a just to whether were. get it won't really Again, back of revenue sales ton now we kind

we businesses, contract sell, in advance know, of of implementation. our number you a we As

go So other are go some live more different a live businesses sell and businesses are and day. sell and

can to it is So the XXXX. year, into that, the the to of key pour end that so

the won't promise, you a ask retirement. in I Thanks spread guys. And Eric, to Thanks, understood. calculate you, Got your lot. I how fuel

we'll go with And El-Assal Barclays. to next Ramsey

much run. for M&A? strange is wish Yes, there all best. curious a some very on irrespective assets pipeline Or M& like you'd it's question What kind that do, of about the there Are looking M&A follow to broader help workable? guys. think to this so such time over And of you you the Just of of Eric, some sort up that tech of of your question. seeing a Thanks sort really I environment environment you're I hi, of for the to out the the where my Tien-Tsin's on are be first. for appreciate the taking deals opportunistic like? wanted are deals kind proven And the years. lot of A thereon. valuations not your is also

Yes. It's a question. good

So, I guess, I'd categorize three of the pipeline into buckets. kind

is one deals, right, do look in same we other continue the there's so things. four to big categories, So that providers at our

other so that inside two, spaces. think we're players are of in kind the a those conversations that chasing we're And so of time, with companies, there's some And obviously, a in handful couple I mentioned I last assets distressed coveted sit things. of

companies then to to different going day makes Tien-Tsin's more question. the I And us. last talk back sense think I available to where a mentioned that wouldn't for probably it have been is

with weren't. handful in five engaged companies up again, we are months to, ago, of a We or which call it, adjacencies, four these

this we a if a review when way week we're valuation the Yes. that, ago. four buckets six guess happened lot about back. you So will, agree kind question. better. them And it of two new three in thought I of think this have of call earlier or months months of, many the on I in working, kind I talking guess, chasing valuations be ago, versus, We're would it, come I stuff

what better as see we ways to playbook for operate So, to way to assets same we're finding that a the able than be finding synergies and of them. can we pay back

be improve to So we continue Thanks. to profits we work to that same that able angle pay clearer of full having way can a prices.

just you do sort should question think to wanted credit philosophy your more approach which that to the about I question back the in how credit pretty And kind know When And of in a terms helpful. about of sort outstanding. also year. drive your in the sort get expectations but expect? of up credit I of questions? was other we quarter, what sort do And to the up about of thought Okay, metric you that's And -- in opening ask just to want then other you on that how was the again how aperture growth I this of impression do performance you of broader kind open is when to credit. of half

great question. another, That's Ramsey,

say, kind I'd initially. maybe So anything, if of overreacted we

So frankly sheet terms, QX, happened XX looked and we I you receivables tightening this literally balance was the revenue but in did over had to -- was which cutting and willing of impact growth our course I to risk think thing our when the lines, meetings we the we take. month a it collect, at things had doing and

so happy turned the in, with a in some just And remind of on effectively, credit again, is And credit structural. with like the they long in. of lot plan. our we've the loss that we're come have a put And reserves people charge We're cards. the way call, to banks on

a short-term, of Europe. credit in have We bunch businesses, tons daily, our tons ETFs payables of in insurance,

a able our So of -- money itself how they these collect of to kind product. field the workers, it and of being to lot to for collect need we structure lends essential services

kind to they doing. So pay doing keep need us what to they're of basically

happy super think with the I again, So we're, result.

see to worse; three we're second the us it. the then, don't And payment of it as is things be we're make aging in way the We anything part kind kind part think question, that's she of into our are so goes. that terms of in forecasting testing two. In behaviors going or

started the that are loosening these up. seen repay to we've clients able and we've results now So us,

for were So accounts And pay clamped it Beyond we the us. for kind for to accounts we've were that for we people card able our companion where now saw new locked example, it we open and not and still on reopened down of new up that but yet for on really Fuel existing accounts.

effectively repayment way we're So sure into can making of looser stepping kind and -- we that in happening. policies our the see

best luck. Got it. of Thanks, and again,

Thanks, Ramsey.

next our from And Deutsche comes Bank. of Ashish Sabadra question

the provide -- is and guess you. my in there Corporate Charles, rebound if what It it softened but that softness my June, softer and was by was taking could improve the July. front. June. of started Eric, question. to And in I in we in particularly wondering you, May well of was I like best than end on for you Thanks then The to that congrats FX, and wishes growth May pretty were and see the we had Payment. color looks April on some Question revenue most expecting. to just

So just going it forward? how about we what there happened Thanks. and think should

Ashish, it's Ron.

a I'd pay, So things, say few in QX. corporate

first one our function it's So clients. is, of the a

of its in business business of the sales, quarter. was was So reason, in line of the the was softer actually sales terms that again, XX% plan in

So to There's demand, we way robust found still quite a actually demand. sell.

clients of little pockets retail other only that having like way then that or way, down a clients travel was book it XX% down, bit. and So just in clients and were down, off XX%, clients were either that

that, all. that function don't So as We never point pay be one, aware a of corporate that knew something do hey, of up good never it's clients we had before who of. was things had sign because when we to a don't clients

we and or our core not obviously, XX% thing because midsized virtual T&E of call and mentioned and lastly, terms zero. in product construction walk-around stuff. corporate offer for pay kinds of other way that FX and went effectively plastic, overall business, which there's about supplies tightened to business is down just travel to really we our the cards, And both we lines I down these cut all then But XX% in card was accounts. are or in in Second, our of terms earlier, that hedging credit, that

So have put chance look, think, we're that are selling is say know don't a out to if a a parts healthy, that are way what you supplement, the had Page There Eric, I and lot other down, I'd it I things recover. we been spotty. parts it's X? was

X? Page

Page thing kind of X, there of July. almost Ashish, card shows in the came back flat core in kind virtual

tremendous amount it's the back come So just XX really days. last a

year is stay our T&E in other pieces recover. look, and the that So of for we the the outlook think the the will rest on thing will thing ditch likely

cards. That's on great. Ron. color, question And That's a maybe good fuel follow-up just

industries states? that And where we've few states resurgence of wondering in also, was there if any there impact you virus. doing if those there well. seen better the a been in are others. rebounded pretty where more -- Have Thanks. -- those then give I states a color have So some you are seen than has which any impact volumes around are just could

Ashish, can Resurgence what? of again? that you repeat

Yes.

the improved. have have kind slowed states those impact? may where seen any down. a the fuel also has states in which are So doing of resurgence of different you just been volume virus, Some cards, on industries Any color has recovery economic on have than there And better others?

Yes, Ashish.

of the the on-the-go think So mobility same that think on average. again be points is first will down that investors at business. of of blue-collar of which it's product, were the a people. know to I I We're And we're are of if are right, kind I cards, kind kind bit an of around essential that all, as fuel line don't try that what level rest soft right pleased. we product, a people

see from business payables So mix. huge similar of is what we when we at a comment a it look the

something fuel historically, grow XX% So would be down XX% would would down the and be clients then XX% in be amount another down something. X%, remaining or of quarter, a our would card XX%

see So, down. the moved we curve is whole has what

quarter the XX% were XX% only then Now down XX%, and to and in XX% up or were down, XX% XX%. grew

parts where were industries, at construction at we these And even they're bottom look expect impacted still projects fell construction, what those so where clients that at away, biggest when just parts the other of top. kind the decline, are the in and the you'd of of

people move up, X% good last down moving and just the clients of whole their so But how a the XX% the seem And much mixed do so bit we but the getting is, down the down the of was business XX% we've month. over have be curve healthier, or seen what not just impacted. little it's or people kind to bag news the people a XX% all complete up

smaller. to what is detail suggests will us break the that So

the turns you're expect, plot So, more get to as hopefully, that we of that business back.

color, Thanks. Ron. very That's helpful

Ashish. you, Thank

And O'Neill we'll Sachs. Matt with go next to Goldman

you, I sort Ramsey's end Ashish's on congrats dig around question taking Eric again, on just follow-up and on of credit hi. my I hoping guys, question was for Thank and question. little to my in a of exposure. respective your and Charles market the And bit also sort Yes, moves.

relative to stimulus the sort again, for SMBs? lagging bit stability So, extent of of impact being very lagged through And kind driven stability thinking sort versus impressive thinking are Payroll the about to smaller us. the revenue that of the more as the larger of of what flesh ones the And Programs in a us and maybe businesses government you volume there, remind help potential exposure credit, to a and little Protection could do on sort effect the with half of recovery stability sort the on you you're by you guys track? of for out back first

Matt, this the Yes, very good is news Ron as of is Eric. pleased performance I -- with the we're obviously, earlier. mean, debt, bad we're indicated

a And and recovering the of mostly that's year, our we is to agents bit bad slower as Our kind as of than enterprise mentioned. unusual, little debt mostly the we've your to portfolio have the question, some do SMB volume one-off look kind answer second of kind what get was half of normal. we it

X/X overall as about a volume SMB our of is of Our business percentage volume.

any them agents And in accordingly. the see it So category. look And news a we at expect whole daily weakness those to if lot. taking we're customer continued just there, good see we but we treat conservative effect We're obviously, We or to lag again, I industry approach do portfolio. that very the customers particular when closely. we're is, think a not seeing inherent a any there's looking at that,

helped not of from track certain are But difficult us. very, again, are in us a or say I'm we It's a to particularly segment that watch I perspective, stimulus more And for impacted that we very certain of beginning it's customers. who's so on customers see close keeping benefiting that. those to industries. can't because kind From be pay a sure would can that

score impacted got it's Matt, overlay. new this credit Ron. industry We've with a

something, to that So started probably I layer don't we days ago know, or XX over.

credit in still not yet posting And signs, it keeping and mission good testing earlier, into as opening QX. We're so way performance up. I tight, accomplished we're mentioned despite the the our

large So sitting But all risk do are those we when providing and Eric's eyes we on slows there's the in amounts kind are not the think industries. to particular point, thing of some credit it down. of government that

Got you it. Thank both.

bit a clients, bit that being process think now. are selling recently with through particularly reluctance of think drivers excited basis, the it's from Fuel there sort growth about collectively pandemic I because incrementally spend of drivers As Beyond guess, programs, incremental I to that typically can one existing little thinking a of a little getting follow-up, or that that cadence a retrenchment, related the of the I program, we've more the continue? sold is a credit challenged Just particularly. Beyond the of been Is growth and/or into some the

Ron it's question. good It's Matt, again. Yes. a

route to what the liquidity. the make again, route say I'd growth and we took first protecting over So safety sure the company is, that the we're

pretty did significantly, days dial whatever, we ago. back credit XX So

now seen that repayment mentioned, opened that that performance, back Fuel up, I we've for as the so And Beyond we've clients. existing

on new program. kind at that, frozen had we least So of that clients putting

with a it was idea, did good open. it we whether bad So wide or eyes our

So of the look, the liquidity company. protect let's

Let's back get can action in we careful spring and different into days.

we've some of starting So and to we're again, now, cycles seen things number up. are getting that comfortable loosen

helpful. Thanks very lot That's a guys.

comes Jefferies. from of question next Our Williams Trevor

Eric, run. Ron, Hi, guys. Good about afternoon XX% being comment and on full On down your a for great year. congrats the expenses, year-over-year

could of fixed coming decline in correctly. want more much caught versus that how any that end up make framework for First, costs I to then the permanent? just being in out And is that sure I variable

Yes.

other fair before. selectively, of third on guess, so revenue and of you X% parties, back. that said, you things, them. QX outside with some kind the are money QX. get that, Sales we'd the volume clearly some on we and think side for kind slowed to So I kind it didn't I of that planning on on the had revenue it We on parties headwind helping of traction I is I game. depend Obviously, this distracted think but FX. And we it expenses that year, And trying of commissions, we're Against think, XX% projects the high Trevor, amount think got right. XX%, to from But single I the we said down a long of some -- variable. some help were, you side. QX, get first you the a said slow haven't back. on lower, forecast, We're for I us play get get bit where things, part, kind expense prior money And what doing [indiscernible]. And our I digits then do same

out not protect a of client lots or tech money core to sales. service for sets of of core those or We're out trying day. capabilities of out carving we're different So of

Okay. Got follow-up sense. Corporate it. Payments. That then my on all just And makes

of So I quarter from last think lapping you're year. Cambridge a quarter third the big

to July. So just you a had that line the acceleration as the and revenue, look big supplement we from June you've at on got FX month-over-month

the as for of element, just the comp not piece entire that wondering too? if cross-border tougher being number FX portion and if just not read we Cambridge could I'm if or So the the even into actually capturing better, is with that

Yes.

think is or comps, it of but bit quarter, some is some are the things of the when think the And bit comps beginning first at froze wondering act. I people kind think the frozen have at to which how of they are quarter, move. going you it I end had volatility currencies the also a I the difficult people and then of of we a

So did of in some in of it that we product, a then out credit I We same there so dialed share. money. things trimmed some hedging clients. -- We those some of the the business contracts lines, volatility froze And split comment. move don't back there's and We share miss moves which to same across think my where I second, thing high carries of those products, margins. because thing the which

there's the credit make that want again, high not I loosen. we back. to where now at some cautious want clients. that we're kind but and seen everybody are, starting were, to we're businesses again, back of enable good everybody share beginning. I hears to And me R-squared between So that of to a quite that to we've sure even report, back. that existing to we going We're And grab openness pretty help going hear the basically of completely crazy clearly growth

Got makes it. all sense. guys. you, Thank That right. All

we'll go Bob And to of Napoli Blair. next William

it's Thank the you wish Eric, great, you. And best. been

On the corporate remain okay. payment

So businesses. your shape lot balance a sheet interesting doing of is in great

tightened You credit.

of on back around will starting to earnings a in you invest up. it's this? can You're want will be this come on so on Where loosen go you -- Where you out isn't be I and the of the putting lower offense? more But money come half the XX to out year? organically to understanding can be months, Corporate Do nine good offense, months, offense us of months. guess -- I but time and M&A you side, expanding, this virtual what, The more? this, Payments, cards, shouldn't behind go on in, six

Ron. a good Hey, Its That's Bob. question.

plan. where a or in amount XX% in the even the and importantly, a sold we up me, in were half, sales were quarter But above we've of is QX. crazy quarter think more think it the since answer line and I just that full crazy business AP up in year as mean, we amount and me. is a the I blockbuster owned some -- ago, it It's bought of -- sales in front I something those product it's

So if mind able I sitting know in for pay going to stay the bills, don't people all-time an point it's top but to their to at demand it's now be to high, houses. of remotely certainly at the marketplace your --

point, spend and and more shift money your there on sales to we're to So marketing going more energy. clearly

-- those So same and we've kind the virtual but and also card cards by our for portfolio. example, in to sell T&E then and reoriented cards cards T&E to T&E we virtual card have virtual full AP, pitch maybe, people we some card. way, you'll Well, not so used account, that to of

against billion line got, step business. the building, flow. side. then it's know we and that transaction certainly comfortable up we're sales -- about We've sure, generated and I'm second, the And like comfortable marketing is said, the assets worried space We clearly not We receivables X.X $X.X that you so right? and I'm of we pressure leverage money cash category. we'll, the times. And And for on in about So and the now. have all the

sitting we're Bob. of some pals, a a not So compete place -- in our good and as place, sitting

So well. the where of we in there terms we I'd pipeline as say like are

balance money maybe sheet. marketing and more So the use

the is really I mean, then, adjacencies? are looking Is going that adjacencies or bigger there focus the to to are Payments? they at And that sectors of portions be adjacencies, other you're Corporate Okay. where

adjacency started the big health looking back to the kind winter whole this year, at all, We're particularly mentioned, as of businesses construct our Yes. software of looking adjacencies, their clients. I last this We four or thing, at and with right? fall in

we've other so identified, our earlier, I mentioned, adjacencies payables, And both I fuel card. as got in well. in adjacencies, business Tien-Tsin to around In invoicing, mentioned example, as and as for lodging, we've some and

a it. categories. we lines it we someone But we you we payables saying transact yes, other in. us that or something quite But like still in I'm aren't too. or is know who like product exactly if see four in our it I adjacent that and like the really not -- businesses obviously, the like but surprised follows we're bit so do So likes people super the you other in tied four

now, lines two Bob. it, at have grown looked you for years If mid-teens low

with So businesses, of too. the happy some we're other

Thank you. Appreciate it.

to next Cowen. George of go Mihalos we'll And

congrats Eric, wishes on third well. of the you're wanted to X% kind And question, XX% fourth OpEx the best expense Hey, for quarter. just of the thinking up good afternoon, to that as Ron, follow my and guys. reduction and

were going of be to half XX%, way for portion the beyond that may is I'm X% I permanently of of a there range quarter, thinking to the thinking X% you're kind you think think back in is that, and to last what a removed more that variable. just curious, be of XXXX?

grow environment I in I It's the term. want to what really at mean, certainly, look mean, want short certainly profitability Yes. we're we business business I to looking can reaccelerate term. so Eric. the business do invest term, so the business. George, But over over the growth so when wouldn't that ways ways we out we not I rightsize it's it want maximize we're we also the we this mean, of come in in. to the to that way. looking long we short can reinvest are we at at to

say would in so term, have term, say, we're would the I So hey, to short going the I over some cost savings. medium

reinvest term, medium to business going we're the the we around back margin kind standpoint. in back and Over were where probably get of from a to

Okay. follow-up. quick And a That's helpful. just

know how last business I all And year, end activity on that were free Did couple some the and that XQ? the have about there promotional you I go-forward was basis? of of the impact tail on Within the think, tags last sort there. the in some promotions tolls quarters, business, thinking tolls are at in of a an

with Promotions in that the toll [indiscernible]? business

to Are promoting about new sell asking you tags?

business. the Yes, just some relates discounting toll to basically as it

Yes.

Ron. it's So

of line is answer the the the short the the into coverage, has [indiscernible] business is the top the some the came when competitors biggest the network. toll of yes, we, gorilla, systems, most and it's So best business,

price. sell, stuff So with it in so my was to hard premier went opinion, for they newbies very to

free-starting decided kind sure share new things we some of so dominant kept make business. And to a we match of their of the that to

the at of don't, if monthly to if year for promotions. and So people don't. you up, and you We roll of pay some example, the of ways, started the hey, that's through you other you signing three- kind worked use end pretty the six-months well. kind We tested thing, fee, and

gotten we've So creative.

stuff And free to more quite the in paying, converting a people sales so come lot studied are on quite do. to And business. selling the a still we're of we they still that into actually pay, promotional which and pass, a importantly, good that lot is convert

So so I'd so say far, the approach good.

Sakhrani to KBW. next And Sanjay we'll of go

Thank congrats Charles as you. Eric side. to and my well from And

to valuation the about Going done some that and think of the you've they question, backdrop different Ron. the adjacent A look deals because about of back comparable should I'm past? sorry, the types the will But we complexion areas, Or are being is businesses we different, and to the think IRRs valuation different? in M& when

Yes.

a that's super good So question.

returns. I way size, I we of say have it think mean, any to capital, amount the if is depends. our to meaningful any transaction I'd answer the is uses meaningful of see

get you So that we guys money back. look the at from what do we way And returns we perspective, again, study. and

effects things example. I'd smaller say of create returns thesis look we that other to can the at better Our there. of do some like that we sell, can the for ones, ability But in

front we added package if payables in hear an adjacency we do the end, is the a I'd the the we rates see other to and Do the results our bit more help in that returns. factors complete? see pipeline that in of we better do just the because so back you, So clients profit sales in would at say RFPs? transactions, than we and feedback it's smaller kind And look win

enterprise on as is questions, the actual on the impact way And I of just to sure revenues. I we versus SMB is make I Eric, its the part. second quantification Okay. recovery the Thanks. way -- about that the mix of think I'm a actual we think any there drag the impact? and there some half? of the through as last on mean, following-up dimensionalize guess, to think to sort again, about the understand that and trying

good bit we're that of little business drag. gone down business we a there's how couple accounts in fuel we've over that obviously, A a little some That's, we're That's was very a the SMB, and there earlier. seeing that our business seeing market large called we side where more as of is years. Yes, really percentage well. a business. on of got And enterprise the bit lodging Actually, out built.

little So are back. of those bit -- well of as coming a lag terms it's accounts those seeing in again, how

In actually have up want put back think out estimate. with pencil something try to throw paper wouldn't to to come phone. terms the a I go to of we'd better just over and to it, quantifying I

we may able with I you get want to back to us, if So something. up to be think come

guys, and again. Thank you, congrats,

Susquehanna. And from question final will our Coffey with come John

sub sense call. the Thank what you is And wondering, I my much to Payments I like, was on to that looking segment. I My up that these for able card, nine slide Corporate clearly, decline, and at okay, full at look Great. when at looking guess, best compare you you and very you I XX taking makes slide was out way question which see I AP I wind and what for see April, May really four I if to those were the you lines see June that AP the XX%, would a say you is XX% look the T&E, figures on and be full would card, decline, virtual was because at to have and FX. wondering blowing, revenue one the for the months, is was -- virtual lot. way figure then

a of it of So bit -- those I'm little better. lines each the maybe just trying the to to sub maybe a contribution way better sub say little is help lines revenue understand

just four top Just be a contribution lines. to revenue

will nine, other and the than with did we T&E make share at than I revenue X%, look about July. that But less the on you wouldn't the Brazil X% those Yes. couple benefits things, We airline think thing. I things in we the of card, called probably a other our if page of which that along collectively, point, are

So the see, it's as And headline is the total big Corporate volume, thing overall. part can Payments you of a XX% revenue. XX% of the the business T&E super down was not

thing kind in growth being flat. QX and it's between virtual to make in where recover going We the look so that the virtual mid-teens at. of is think the and the that card And what's delta volume is going -- though. to not to corporate And way pay sit performance, the it's thing at the thing then performance seeing revenue almost July, card the down to

so And so make goes And is T&E the term going stay business flat, card because clients those will trades pace to full as the money second virtual again getting in Corporate FX FX the half. we're The rock. the and comfortable is cards virtual and growth it. and and going in to to go on in recovery spend more Pay AP the

a you helps much. That Great. lot. Thank very

reached And time. allotted the we have end of our

may you will everyone's this appreciate conference. now conclude today's disconnect. And participation. So, We