Corpay (CPAY) 6 Nov 202020 Q3 Earnings call transcript

Greetings and welcome to the FLEETCOR Technologies Third 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

Charles and our everyone, me for us CEO; joining are Good quarter thank XXXX for and and Chairman third Clarke, With our earnings today CFO. Ron afternoon, our you Freund, conference today call.

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

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

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

Thanks. earnings subjects. Jim. our I Hi, third quarter cover Okay, for four thanks here, joining Upfront to call. everyone, and plan

perspective and So, QX provide QX outlook. my our first, on

Second, cross-border acquisition. provide an update on our AFEX

our thoughts discuss getting company I'll year. preliminary And back close some on the of the Third, work then next for finally, on with and plans I'll offense. pivoting

QX Okay, start our so results. with let's

Organic from between X% by year, step same-store sequentially; the rate revenue improvement overall quarter call, primarily approximately So, QX. million, a last expenses QX but softness $XX or versus We EPS macro, is was client QX We in QX XX% what see at and revenue estimate in our of manage print not year, reported FX. earlier, that down down did versus quarter, down impact the XX%, XX% XX% down down X% line. QX. operating sales we obviously, in, that's versus also sequential Brazilian that's year. $XXX million. on in QX. The $X.XX, that their Corporate We helpful weaker versus XX% bottom and cash it our minimize in revenue improvement we pay revenue depressed last growth, QX did the to last down in improved of QX a

in the XX% improved to quarter X% So, minus softness QX. minus in versus

QX. Credit our so million softness. front, than finishing nice pretty at weakness said in of client on and us of the or rebound client is of a here point than year there prior increased from point, of prior year lower usage. again the further XX%, So losses that's we way, nothing year. to Inside client recovering QX in Good the finishing $X XXX% our short softness of Sales pay XX% that QX. corporate highlights a performance, attributable even that, quarter significant in outstanding; finished another That's sales last the there. QX, the the prior to to news up better XX% at credit point retention sequentially year, recovery to improved all

summary, in look, retention, times sales QX normal, client for than starting in to ticking year. these up even to of quarter recovery; better back a a rebounded So, wacky of us to softness; clearly client last step QX. rate point; XX% Volumes get recovering

We our are managing and really pleased strong, performance, expenses down again, credit. credit really with

So, improving in performance. an all all,

of not just volumes this expectations by for generally earnings weakness just seasonality But, QX what where because growth further offset is and has whether we're flatten of pretty to terms or QX in in throughout performance revenue really and sure thoughts. expect, year. So, they'll couple plateau recover the a transitioning fewer they quarter, Historically, will from similar days the or share business to QX, business FLEETCOR's online really, are. terms that comes been whether of and

So more year. we We're the than and last of below year, couple XX% XX% in hopefully, of are a forecasting to down prior going operating to sales expenses things. strengthen, further planning XX% to coming manage about are we

a and of bit a it's wait So, see.

Okay.

make me company September. AFEX, BXB Let that announced to signed turn we the and in cross-border the payment up

in look-alike; size really straightforward. of a rationale less it's of it that's a growing with XXXX. for pre-COVID. pre-teens XXXX that big business as grower, So, And in own, and with obviously position growing Europe performance pretty business revenue, TAM. the ours Asia. Was release, and complementary bit press a Cambridge strengthens about quite know mentioned the profitable. we it's And our as to It's a flat a in The two-thirds about to a on far the we It's Cambridge be deal: a outlooking like. although its business

drill is years this the AFEX ago run Cambridge. in quite high, So, our with few a having just plan synergy conviction

the really and $X.XX we're $X.XX to range. fully EPS integrated closed, once cash expecting so, accretion run-rated, And in

a think, contributor. good So, we

subject of terms approvals. XXXX customary in QX So, a to we're still timing, and regulatory antitrust tracking close, to obviously,

Okay. is the and offense. next the up of pivoting back My on of subject getting company work kind

those kind that, of QX, energies versus to and kind XX% of of feeling are: been of against on consumed see can So, we're of getting and energy XX% XX%. response year like side, sales this and other lots production our certain in And things, one, quite a you hopefully the QX, companies, COVID work, quarter, Super the sales coming things redirect our out recovery, certain above we've sales. and now, focused so back. with to getting bit last lots

So, some evidence that sales performance to is returning levels. normalized

across talked We in digital front. are back in tech, the next pre-COVID making improve adding lot now tech year, digital on select and We reopened investments. to anticipation some of our investments up have, to investments investments. businesses around an particularly credit since last, rates. we in back levels making of We're And tech effort a salespeople approval our we stepped

of in developed scores launched client-facing getting very back. So and a favorable layers so that at a UI, our new speed lot contributes mobile-centric we've getting with a better and corporate client big ERP We're a improvement user us really, in API using payments It's connections front-end. interfaces the to to helps business. integrations and our which partners experience systems, platform, leads accounting

across back their EV the traditional fleet, in place. begun in and EV clients mixed networks to one on. vehicle are to that Europe. these recharging have Netherlands program, complement we've fueling UK, Germany. basically Interestingly, So, embrace in And consolidated networks the their We've and they the networks because electric total tech purchases the keen want data their actually added all

fleets. economics So, kind to EV and of neutral almost us. It's mixed okay of literally are surprisingly, the

card the get at-home charging get charging. vehicles. get rates continue network. to at-work fees We We for they're And on monitor when even to fees and in and MDR electric higher we the subscription report

then, advantaged we an here, look, we're as their at terms on in transition acquisitions back clients as seem aggressively EV. least And initially to pretty So, the or acquisitions, consolidator of integrator front. fleets

and corporate our deals space, and those. so payment addition are we in our comfortable liquidity a AFEX, in are capacity around couple management to get So, with new to and after chasing that

Okay.

XXXX. really So, next looking last us into today up into is year,

signs So us I optimism a for want out to do few setup. the point in of

So, a softness. one, COVID obviously client impact we big had from on

and sales, – we expect more we be from existing and we've from what that already of incremental significantly; will And new to do that that. already COVID business. in-year recovery contribute to revenue those seen. some volumes revenue So, expect do of that's again, Two, seeing further clients, recovery the up we've way

Third, we're efforts of really cross-sell existing which Beyond our revenues to out clients. additional are get initiatives, back resuming

So do from some new we our on expect helpful trends, mentioned, next so year, of we close maybe we the as deal again, XXXX. front, mix client into forward that. in maybe so roll contribution and, Fourth, XXXX more; incremental super acquisition in credit, a expect, performance. the particularly AFEX outlook lastly, even retention I as deals to couple and then the And

all, in setup So, our some year. we look, for positive think factors all in next

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

Ron. to here first all an CFO. change rates a call like that year-over-year note of Thank are remarks, noted. earnings of my as prepared you, otherwise happy to to on be effort I'm in unless my I'd basis, streamline my on

get into let's it. So

quarter what last than to we of experienced third by degree affected XXXX business The lesser COVID-related slowdowns, a was but quarter.

million, XX% reported net net GAAP $XXX XX% XX%. share such, to diluted income we As $XXX $X.XX. revenue down to decreased million, decreased of GAAP income per and

real, results spreads mostly XXXX believe rates, million of XXXX were income Fuel discussing GAAP revenue. and also primarily our impact lower be $XXX third impact and Adjusted in perspective, was decreased in and The net down macro quarter, approximately a which recoveries, of by diluted $XX being line. revenue the X primarily approximately decreased third adjusted to negative share, bring estimated revenue conjunction while of adjusted $XX down we on favorable we we million, in the same-store to economic our numbers adjusted income a with quarter our overall, non-GAAP with $X.XX. macro to million quarter business provided manage reconciliation of usual, ability due for income an XX% prices Organic which the net bottom expenses to driven quarter is impact for the had Brazilian XX% million, negative $X such million. year-over-year well-positioned foreign release. As negative on impact. had a back of reflect net had pleased of exchange X%. share diluted to sales We're impacts certain $X metrics, financial was per From income XX% the effectively a and down the to fuel net year-over-year per estimate minimize will Exhibit as press and approximately in negative

here lot X more to reopened had the a our international recovered businesses organically net The our US. macro. in impact down the but was revenue organic Our a the XXX as the highest X of Lower our can of around in There drove are points unfavorable customers drag. year-over-year world, see significant customers. quarter. you of page of in the than fuel softness our fuel degree international third T&E volumes during percentage exhibited XX% over category was the category corporate greater These X,XXX in businesses the decline portion have down US Approximately volumes by economies the was the spending the of in XX%, the the of COVID a payments businesses on generally decline approximately other of driven moving parts points on three in supplement, about in product fuel pandemic. the as small than

last customers slide COVID, in actually quite affected card to notice those have payments we've that that overly activity so by supplement to And XXX from earnings is T&E clearly that our included business point. illustrate aside well. flat corporate on You'll holding this page up new a been year, X the and

by specifically on range payment It's note who cross-border levels, is mostly and consumers Now, new still traveling in manufacturing countries. the of quarter trade. were FX-related improvement wholesale flat affected nature are an Visa down payments of volumes in for is our from here and as quarter, affected very down customers. benefit Mastercard, are still focused category and the XX% or volumes offerings; Cross-border the virtual were which business of customers our volumes that at as from important the the last card was offset spend drag the which looking by different political being from to between corporate mid-single-digit the highly invoice lower that

to cross-border perform and not Our payment international a up well is dependent recovery business in with on facilitating volume travel. AP continued for very XX%. trade Full

wins. with Xx sales due AP last more New sold were of as strong reseller year we and direct both compared full than to very

lower the selling our Now, up COVID-driven slowdown introduction third be Brazilian sales, low to quarter, the our toll organically at not and in to with and the of quarter, Active including the as and have declined have tag have last malls subscription-based the frequency most in offsetting the revenue normal year-ago tags caused impacted lodging to at toll sales business resilient the moving our the in new resume work model home, category third volumes again, business down points acquired been economy. residents were approaches to from X% of with the the Parking tolls, stable but fuel continues has in period. significantly as are airline due the as and the by X% activities. plans which The grew in stores. quarter, recover by inclusion started drag volumes quarter, plazas to organically to X in of begun lodging was the the XX% drive-through

than enterprise see faster with expect business did business as recovers. see business workforce has small continued quarter margins the accounts as the large Our We workforce lower we rates in to lower improvement activity outperformed recovered business our accounts. airline as

as Additionally, also due affected rate we compression cut occupancy business to levels, some which revenues. slow prices low hotels saw and

airline the of for likely business, will be is lodging the slower recovery airline the to As linked industry. that and recovery

down statement, income moving were Now, total X% million. the of for XXXX $XXX third to the down quarter expenses operating

head Our was is lower what exchange sales impact due reduced The which to to costs, lower employee-related volume-related the exactly lower delivered. in year-over-year, primarily and expenses decrease target reduce T&E to high-single-digit addition range foreign costs in commissions the was expenses lower rates. of we from count,

and X million million be uncertainty quarter. to expense COVID increasing the expenses of our to roll on quarter prices points buybacks. our That XXXX. XXX-basis are share unhedged a quarter. $XX.X Bad both timing expense result borrowings As impact $XX.X to XX% a X were and fuel levels from point still in Interest third various to the basis the the for third by approximately basis points total percentage quarter continue good, and rates $XX.X additional a favorable. improvement or and lower world in related securitization million, was Bad offset of the responses revenues, borrowings our stimulus was around level compared debt or of partially to This portion facility a in aging of debt decreases third volumes XX.X%, of last is decreased XXXX operating very government the as lower around of said the and cases consideration. the lower driven by LIBOR debt of in roughly

the a driven exercises. primarily was rate with year, reduction excess for incremental from third Our XXXX effective benefit last tax quarter stock tax by of XX.X%, on option

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

$X As of $XXX our and borrowed year note that, we November. facility received would outstanding commitment credit in had extend for September billion facilities, XX, facility. XXXX, quarter, our in a the I on expiration to $X.X securitization we securitization our billion million upon in another

shares balance total, the terminated at liquidity and buybacks. million used liquidity we of the to place, revolver of on quarter, quarter price So The in in We we an the need sheet this X incremental which free the growth. and the last liquidity short-term we our remain flow allocation acquisitions at we cash termination of cash at change In to generated primary for in due repurchased support using $X.X capital which a from In cash total loan we of quarter $XXX, the billion for consistent million lack flow capacity have program end. essentially have committed quarter. plenty had was the future of average free time. consisting of put $XXX bridge of available we to undrawn approximately our

acquisition million earlier. discussed AFEX of We Ron that for also the $XXX announced

forgot we case. not Clearly, do is of you so may disciplined, the remain way. view FLEETCOR to how FLEETCOR us. that the M&A expect a thought classic deals to from as lumpy. come We this will deal Some you've We're have that

it in authorization board back X.XX of As of we in of quarter, M&A EBITDA as with And have makes by we note we've I ratio XX-month shares opportunistically also share directors liquidity that that, while a ample leverage we pursue approximately and near-term times, million would CapEx increased our our believe had September October, repurchase trailing lastly, buying shown, the to $XX.X of billion. did we this still like XX. $X finished sense, any when quarter. opportunities,

shutdowns They of to are expect quarter order we're current that around we Finally, for in resilient. COVID still versus questions. the seeing now all declined not re-openings remind profitability to to their in the I growth. due want it everyone the Operator, investment But this to very year we'll XX% a also have to open XX% businesses points. manage recovered due are our future provide expenses point. uncertainty position to with substantially currently and fourth they've for from last do at globally, pandemic, We guidance below balance to up low

And line Please go Barclays. from our first of question the ahead. is from Ramsey El-Assal

Great. tonight. business seeing of Could Guys, relative taking for some kind what now commentary, I question you trend the levels? thanks inter-quarter right provide QX to in appreciate you're my it.

Ramsey. Hey, this you This speaking Charles. with evening. is Pleasure

So, bit a what lumpy. is seen inter-quarter we've

some So moving some that's say go that's stuff we've up, kind what's going moving got consistently Hard of stuff down. here. on to to

up it QX. say a I'd versus QX, good So, step was

So, trends, better it than had quite back we initially in hard a in QX. of that But, And on to did pleased frankly, put there. with inter-quarter what really thought a bit result. terms measure

in also that potentially in now you. terms recovery what was seeing I'm back stronger or of a your of curious versus yields. kind those just differential that Okay. kind on rates your I Fair to on give us larger come an of know rates seeing kind But of revenue in in have enough. updated recovery terms business commentary customers you smaller impact some Could of you're of of what starting little customers? smaller in you're having what

it on particularly our mind the Yeah, a of more business. bit that line small business, fuel fleet the bit seen keeping small segment, large we in down depends trucking the fleets. have in In the quite dipped recovery, in more a than fleets

recovery the pretty in seeing small So not with back but the large lodging been the recovery lagging large still the of they're of faster, US, phenomenon that are though In are coming customer level here still they've we the significantly. at customers fleets. our space

Okay. Thanks lot. a it. Great. I appreciate

ahead. Please next with question line And Togut Evercore our from of is the go David ISI.

payments evening. whether in or levels. Good to corporate yet, quite might so of been This to you. called out the Thank for back about clients best you weak. see XXX business get meaningful this engine, yet you Good reach us growth frame Could bookings has year-ago still historically XXXX? XXX% growth the are performance and bookings your

So and you think land year ahead help might us you where business? can this about the in

Yeah, David. it's Ron. Hey,

think group kind that hinges on the sick out I we of totally laid client it in supplement. the

just So at that T&E having way, the the minus in without way pencil sickest client the XX% we're quarter, kind of thing down, for business, flat out those.

as non-sick how So, here that in a will back. plan. we're QX the softness in at clearly, still wildcard the non-T&E, is look growing seeing we of that much XXXX people The be business will come

getting So there virtual debate point, healthier. To saw we that's sign like obviously we're a was in inter-quarter looked We're cards. It having. encouraging little watching Chuck's it closely. little bit it the the

clearly point, so high-teens you that QX say, not the I'd rest grow we – the business. to sales based the it's will one, good mid there and sales So the again, portions, you your that answer, two a business. growth for for in is To sure, say on sick of the if another are to super I'd have forecast but see, park

allocation, as in capital increased the billion the ahead versus we about should And repurchase Got meaningful of How it. you about year to Appreciate $X AFEX. that. authorization just complete and share follow-up terms think you're buyback on then other by a M&A?

including in David, that that I late philosophy, press is and of called as the release, the probably, have stage. say, always. do couple it kind We a working, number close are in of deals think same I'd out we a we're

versus So opportunistic deals we're we need price. liquidity for that front on always of the right, share us the in balancing, the

of stock buy a I'd money we'll two those if we've So, that conviction If a there's got trade our we're on of lot we people buyers deals it's to say, it price will function things. hey, a back. the that. like, spend in, And

our give the to But is at billion So north the the goal well think, of availability those $X make or was point? liquidity this still management, flexibility to us, I Chuck, calls.

Yeah. Yeah.

have do plenty to ability, we and, So more David, to money. borrow the dough obviously,

So capital isn't the main question us. for

much. very Thanks Understood.

talk to to Good Yeah. you.

And of the from question Huang ahead. Please Tien-Tsin is go with JPMorgan. our next line

It's you. to good Thank to everyone. connect

also. to the the want new Ron, on I sales, ask, bookings So

to on it? as do see ground some Just confidence pipeline you and selling the pent-up you And on on potentially? of I'm there? going this new replenish able your demand normal just curious, that get in you now to being new I'm there kind What's see in during curious the rhythm some pandemic

listening sales marketplace, thing, word, the Yeah, getting less is I'm the things. kind to not I'd distracted. Tien-Tsin, sure, two the I'd say One, back used that on demand. pent-up They're it's the that prospect that it's again. of universe

offer. in of So see go the outside-in data, Google that analyze kinds again volumes all our And receptive do, search that we we across things getting we Analytics to categories and what more the of we package, baselines. planet, that in against and

shrunk point point now to opened to We one rhythm the then ran became And super credit, sell. I and that's obviously important. have we've people home we which digital. So, we and two, all credit. And phone of fuel is we more people finally how money think remixed

to we now So I of yined how the various to it, of as it now. sense a game how in channels, kind think play and our and got yanged is do we've

corporate I'm at forecast in XX% in number, good so, We've obviously places, can. got that's a of which the pay, months for QX. looking one over pretty And the this lots of XX% particularly in was

move this forward. control that's say, we of where areas, one place, as more number that kind roll to feel over fact can I the we that stay have our in future. we the continue of we I'd up the like So all If a

So, pretty confident.

you. you talking I towards when I got return. discussion? side the that said Because dollars to you're point in quite the But know, deploy confident, or you'll that in OpEx the different past, I and and throw double-digit savings. not you're signal a on the about does sales you sales get marketing capital is ready Yeah. know you're that

performance don't – the not are disclosures, made QX like in and front reason XX rolls the much digital bad The up of but the Yes. in the now we just soft, to call looks on to kind know how detail the step improving start marketing the it step-up one performance. and a both ago Because certain people and you, I we investments, right? probably in in new there's of of give But campaign. recruiting is commission days reasons a sales

no, we you hardness that again, baseline make company, Whatever softness, sickness thing and top. of done you get you the can right? on When the healthy plan, have XX% key and run is, with right? or who's that can of (XX:XX) business got So, not, softness business to the we whatever lap it's all we who's still this we the a a

we're to that that plan that keeps trying so company a game at next in for back fashion. sales rolling year the And build

Okay. Last quick...

there's say above we're but I'd it's XX%, bunch what importantly, – forecasting and working. evidence back working so XX%, more is, of it's that when a that's And XX%, words, real XX%,

sure Okay. sorry Last case. one, quick one. the No, third that's a for I'm I'm asking

You similar? AFEX. very accretion it with in normal pretty is of confident AFEX, getting to applied playbook level that the sound Cambridge the Just

part the fairway. number playbook, for a of one, But, down thing This worked every called is which our deal, Yeah. quite well. model that is

one and than XXXX of I profitability between think reported told in of calls, these doubled you the we we've XXXX. or, more Cambridge I that

same But first the that is, same. second now the businesses is that playbook look two that yes, then reinstitute AFEX. so there's one point we'll for And the

synergies the So that second have, we there's didn't combination in deal. Cambridge a the obviously, in by the

So two of gave the (XX:XX), we that's is steps thing our Obviously, range. thinking we make sure it. why understand the

we layer, the then, first example, XX% a started the add a call that America Cambridge phase. got we'll as and run in we them get So thing planning XX%, small and And it'll for of the business get business to have. smarter, (XX:XX) we North management they've for

like assimilate they way that, stronger in have So and we'll clearly Asia. things positions

way So, up to well grow it and really business the make more it profitable. to sets both

we it. So like

the for update. you Thank Good.

And our question Steven with Morgan Stanley. next is Please ahead. of Wald the from line go

I but my know taking lot this, question. we've from about asked for back angle. to payments, a Thanks different coming a Maybe corporate Great. the

You back at large guys in on September, previous thinking of how some think, the subdued now on-boarding seems those it from were faster a and away about I I'm backlogs shift that beneficial those a said, pre-COVID it's you typically T&E in done with about of had at back even back having would clip of of of the to of to levels. we're period. you Charles, up the and outside How working by natural of being volumes? It for a the mix virtue from talking business curious be previously activity. getting are perhaps T&E than stick sort thinking like running the potential through chunk that there's just up fact gotten bookings a hockey to over sort XX-month-plus

terms next So faster months those nine implementations? what thinking the from in are of you to three

Yeah, that's, Steven, super a good question.

softness year you and business, before think that what I then XXXX some after. only kind the of not year we in sales, implementations the said the implement of sell because this year at is but

reactivate. of are so certainly stalled, of went through kind and quarter we a second that business as to in implementations have starting the slowed number been And

the be earlier, to three of they things. work And will do implement hand question like the will thing in or So hold? with how from to their David's just could if those six there, they many dollar us with implementations they where million agree is distractions Will months hand ago? the them people stay away

is business of question, the we that So, clients same into there, that have same revenue I convert need can a we book which – of the bit we've think it's a got of agreed. the cooperation but

that the some year, will the doesn't, it the back recovery the burner point, next be then on they that to your extent won't of to they're helpful. and back continue to it, that extent or accelerate quit thing So, agreeable, they to

just to So level. seeing of getting we're I think back of targeted those the implementations or kind last in month now signs two

Very helpful, quick and then just in squeezing follow-up a here.

there's more Beyond straightforward to you You on it's to beginning And with terms side Brazil? the ability think there, been to sort cross-selling ground mentioned call getting curious Brazil just Beyond conditions kind conversations uptick speak on to the have of the work get of in But what I'm of on pretty you're those the Beyond? obviously, the could I And the fuel pandemic is at customers. the from for of the in the piece those initiatives. seeing the quite in back attached and disruption the

Yes.

other the and did credit think, our back first this paranoia ones, Brazil things broke. mostly when around thing we slow I down the

then the and about, reopened the food. of kind real slowdown stuff it So, had in kind we've indeed here (XX:XX) like population of and just the Beyond of country. the driving into fast in going obviously places, a back terms fueling, did was parking That's of out to malls refueling, around, that, city. relaxed They've and areas back we that and going recovered. big fast their closure food getting They a

sales. transaction volumes new those seeing also on And back we're seeing we're it up. kick So

obviously, people aren't to to think when as I not big initiative use you've kind it's there's are that things, well, things, people need a to interesting is part those of in the a no toll want use pitch. that those heard that city, that of that attract

that just seeing again in last month the as So resonating picked or the activities we're up. two

way say QX. levels, wouldn't back from it's way is back but were all pre I So, to the they where it in

the comments. Appreciate Great.

line Sabadra with the next go from Deutsche question Bank. ahead. Ashish our is of Please And

my I would each like focus the that the on corporate Thanks and I volume card T&E to understanding to but back slide for trends question. almost also full My was to payment, of where taking each, would virtual FX AP segment. XX% business. then X and like and XX% have individual like were go we by the at

about we it we of – when do missing up, or volume about kind the weakness. don't bottom think weakness XX% that when a So, there? What XX% could see revenue we be we decline

Jim. do Ashish, we disconnect that Yeah, on back have that we're get I'm do but that, some the not math. is sure to and probably (XX:XX). to Happy have This you

so the it question, just I Ron, again. it's got Say Ashish,

I that the like Sure. growth – the which you been weakness a any talked of in has the XXX about T&E weak, would just, some relatively the be Ron, top but customers, weighing there within has on maybe other been areas than within which segment broader segment? the particular were in question understand sub-segment,

Yeah.

that, a volume the it revenue? mix, lower lot say, per have some our partners marketing. dollar clients there spend then You're used lots have in sicker between the saying is and to unfortunately, of we card of us the obviously, in virtual people of have, versus that revenue channel investing the recovered recovery sales business, in of difference more, the And that some think are pay I'd us, more. for again, series us that to

fair it in our that a are care more the on clients – like worse would be of health a to would me way up margins in QX a of normal surgery that of in an back. front horizontal kind biggest going than but clients kind business step – example, elective So have that between delta some probably and I'd example. of like hospital traditional mix, as of care, of business. a that stuff QX there's dramatic came be had That health kind that pretty kind as the perfect of say up, kind a don't are number large wheel, both sides I of exhibit the And

be care business pay us the and business would have the of the than some businesses more. other the if wholesale health that recovered you that better partners, will, So

front? has what maybe of we you reporting Ron. could then on business just was color, one in any fuel, And helpful fuel gallons. a the just the your if WEX Is on from between that mix? investors provide that questions on Thanks. the of I the get growth difference customer more versus very in been the the Any That's terms wondering difference. lot color color it is

in it. it think recovered. our But have and if me, surprising have was literally, or XX business we in how recovery, of but of improvement. both I me, well saying XX% or of is softness same-store literally I it's call and don't strange think Obviously, clients, I'm I in (XX:XX), points down ton. something it Again, international the what time domestic think something X% those fuel, existing Yeah, what's sales, QX up stuff. front thing and recovered our it's sure to not international businesses, have a The front but super I you keep a us most I of said kind I picked

And XX%, in XX% I was that US, or improved, even So something. something. if be or XX% think then would down down it's it's it the

what biggest is that So the I'd is say thing.

fleet world Our way more is in that searching the again are fuel because again and interested on applications cards. in (XX:XX), Google, cards up outside

beneficiaries of we're So that.

I which business, where in business with more think fuel a smaller tend have the new being again, to card we're be in the small our bit in accounts still Although, we credit is accounts. careful super

and So, we're still fraud stuff. concerned with

our doing, that So of significantly business. our more think, guys recovery the rates on again, clients of really, even quarter, Ashish, – And are the are strength better, third But particularly there. approval coming in from it's forecast I we're – line the the being in still back. lower the

well. doing it's So,

you very color, very much. Thanks. helpful Thank That's Ron.

from And our Sachs. line go of O'Neill next Goldman Please question Matt is from ahead. the

of the Thanks and little Yeah. re-extension first I Chuck. a on to Hi, much for my I Ron just question. further bit hoping could taking so ask was clarify credit.

as XX% forward some parsing pre-COVID mentioned expense just being on quarter? prepared as a businesses. to or being cetera? levels year back follow-up, more average in transitory far the that across think that a are down any T&E across comment in like be back a that discussed kind of those about on trying XX% versus reductions still as the et around how quarter-end things as sort the of that – I of a you've this we Was was of permanent predominantly I'm to would as this to is then close And to go there to are we they you're Thanks. remarks you year, normal? profitability expectation balancing the that result COVID, think lot of

Let of half segmented, with different the card so expenses. light I'd we at the for the we We business. moved could fuel say we super Chuck move versus take a that, get different on been moved different me, first clients. turned small speeds green Ron, the wasn't take the then very in quarter and like new speeds it's It's beginning Matt, clients at no, on. we've thing existing with credit, the And different where speeds, clients, at at businesses. it

So, and shortened. risk. to their not our pay large careful on to gone when of more our continue view the back as I we said kind Beyond run cautious of to increases Which their through well a days I'd that because clients in be that could And smaller. back, of some the increased and coming we the bit as had because, we if and re-extended they they're that business obviously, credit credit But and our more get continue some client, of terms, medium lines we were to stuff are. comment right? we the we new as greater on within as business. say, We've – credit digital share people they're again, screened in We've exposure, we so be single limits a

it's or So, with XX% I'd this normal don't know, back say here sitting exceptions. couple it happened over the I being and probably, and the last of the small months, Beyond digital today, five XX% to or Chuck, four

helpful. Very you. Thank

Charles. This is

of Just not we're purposes. some on kept of bat, heavy quite the Things to just shut that we've the this would due industries, off that you kept is focused we still moment. at verticals for challenged point know We've the them credit pandemic. right them other think are kind travel

tradable, jobs. do, credit people come some of huh, of maybe losses guess they stuff their Matt. and day-to-day And along two the B, quarters, to When see of we the are we see on our we like, last people nature, and look again, other And that of we that what the we're we roll essential have at are. we way part we overreacted rates part what and in programs the want kinds But velocity it I with all the is receivables risk. to our right, it's of then (XX:XX) credit because get look

all stuff in kinds daily buys of (XX:XX) We net terms, stuff have and trucking. daily on

our are So terms quite rapid.

super So just fortunate. we've been, again,

bit back lean see risk controlled. to the now open saying, trying credit now okay, that we're a towards side so we're taking more growth And and to it's we

from expense question what's the volume. other your permanent on some to of or is Matt, not, this reductions then And and

back So, come volume-based or will it's as base enhanced back, bounce of saying, Ron that as whether was coming volumes expense our sales, the some back.

is by Some driven FX of rates. it

but expenses. So on it hurts us save revenue, on we

of And what is we historically. unless that's around, we the And well stick Brazilian debt for our below staying running mentioned has so see turn it around is been to and also a aging the bad going real some also while. low,

forward could get kind low say, Ron for has shift continue I'd offense. said, at and into time. some as so for to to that to growth expenses manage run And continuing going look see but on going of you a next to rate year, opportunities, to we're

savings we things So the – to sales year we'll look have line and this on more it. some focus deploy we of some and that where the top that want get marketing of to the

you Appreciate Thank both. it.

line And Bob Please ahead. our with the of Napoli next Blair. go William question is from

afternoon, everybody. Good

size growth make you over to So, that where are targets you are payment hit in business? do the add driver key so corporate it on today is wise? The do you corporate to What the is is to the lot be that are is of large, investing? at to going Where you looking you M&A strategically had need to to space. key a keep investing? being innovation to long multiples payments business to need the seems – What – opportunity the that and the long-term add? able you've What There's historically, strategically, important Ron. business that the What term? what most

Bob. Hey, It's It's Ron. good question. a

I it. board, we as it's and game business look to before. chessboard, it a of on got segments described at you We so like of kind think this kind

then and got different and companies large and medium it's stuff. small, of kind obviously verticals got it's So,

after And you business sells look at kind early the certain so of are corporate the going players if days payables (XX:XX). of

verticals some take some part of us focus our a like on as So, business. even, big guys construction

clients focus super Bill.com, on small like our and so Some on. people pals,

some thing the first ones look focused that those, good at in. sells the to (XX:XX) if on game you we So, capabilities good we're is I'd aware of we're not and be to at need then what at capable you say would to be and acutely we're which today,

the like we've debated there's can right? is that do opportunities clients we lot, connections like, those. of and So AP there's a version and maybe then of I that so XXX,XXX but that product, the super full it. we size, the so One targeted some a we into in references the to to need, a things verticals client we ERPs take mid-market, chase our make little we good that's after And on some to that product few have down-market with same be buy a like where that in we'd

we the – prior primary B, running the I so in you invoices. told XXX value them the and to calls, and think as that good them automation then then, up that's the help digitize getting but So segments. I be more at those those to maybe open doesn't like for they And client capabilities I'd pay pull is invoices system, and more tear it, them example, the open and into thing say the the play to invoices chain, invoice those have helpful them of get widening somehow in their

more the in the broader going get the hear and in of get the kind are those and about I'm We're of hoping So that, wider you'll we'll chain adjacency. value two to games. segments,

now, us two in more see those two from or year a spots. So, you'll

you something the invoice automation that acquire? building that piece you or to is Are need internally

that to than the Yeah, say, we look answer I'm always other not main (XX:XX). at going buys obviously,

tell And those and to options. be all this this can we to of wider looking in you will game, we'll have various wider is All analyzing game. to space. get I So We're this. the committed, this ways we're your point, in we're at

it. Appreciate you. Thank

go ahead. line And Susquehanna. our is with question the from Please of next Coffey John

you for Hi. Great. taking Thank my call.

Sort is fairly of basic. which of two questions, one

last was this at up is X, slide a little bit than set quarter. Looking differently it

customers, right some you. was cards would – I obvious, off some this the QX? right. I sure in my early the make don't to of primarily Or the other bat that I'll see sequential number? is just next the just I October a from is Thank slide. T&E column second XXX most want that driven an QX it just maybe So of look or of know, And I growth, understood kind you last is this to growth again, wondering the maybe, affected from you question as by would on that give When declines the I lot well? this be be at cards of virtual then

Hey, is Charles. John. This

column QX and QX really you're between QX. the volume and the third there year-over-year. So, are difference QX X, on trends what slide That seeing year-over-year is

say, minus improved, improved we sequentially, example, points. from XX%, XXX an to business, So, basis XX% local we in minus as the fuel

explicitly terms can you the card actually product kind at that QX separately. the in removing quarter, versus this slide of is seeing that X, recovery see XXX that sequentially the and which slide, to year. we're so then T&E looking of quarter QX And in we're And customers,

our So most virtual are that affected the cross-border card those either payment or XXX customers and our FX would using our be products, services.

All right.

the we why companies of our shutdowns Again, and that hurt in give some Yes, companies you of companies, put impact whether making headline better COVID base. I clear and in one no here. partitioning than is sits to client have some guess then helped I Ron, thing trying we're don't how we're their it's this distribution. point super understands guys whole some know, John, and this this hurt

look we when clients. our So, business that function it's of a the health of the we at built,

corporate super guys know you fuel in get look like just of (XX:XX) we or some at, didn't using so so And the cards clients set that investments products. our sick, all that of have could sick pay businesses we

the of allow of credit's retention other so our business of are the and mostly forward, our narrow is group our to as said, of now company fine, function softness we just because parts the our again. and clients of is we're a so And fortunately, go the business really, that selling, back our fine, down-performance a health okay our of kind

So, impacted our ones XXX,XXX continue just really of we is be. clients, massively were and it's point that to it thing the this – really by in have just

Great. Thank you very much.

comes And of our go next Mihalos Cowen. line with from George ahead. question the Please

overseas. days to of it's early that kind networks for about encouraged just Hey. wanted I'm just question, sort Ron, at role? a behind how we for the playing know And and migrating ask, thoughts on you're, just to the you my and sounds Thanks maybe then the on are EV now, talked to least about curious far taking like, some around of secondly, your bigger somewhat guys. States; that it economics. I like

your ability around the Just to sustain thoughts that.

Yeah, or let oh say oh, start, question and, and, all my whatever. of god, with vehicles I'd and there's back geez, oh, second are like, George, like electric then another you going credit got this first the have me one US. business any the come Probably cards is to to FLEETCOR's a bit our won't they fuel thing. be

Okay.

oh will when vehicles, wonder our XX% client trucks like, two a god, we're XX%. down or electric got my three go business that's XX So or I gets plumbing

studying six business the And that entire wants business no. And the in I'm what frankly, to game a over mixed we're report I doing, our basically about is example flat. their know example. like of the I'm people to on what going vehicles XX-vehicle across that That now So was and really is this and the that months. are population purchases last trying usage here, the what fleet, is answer and guys? in is the

a their in still the get electric the fees to paying and that one I card that people we account, pay. they're card a can those plumbing guess realize having way willing reported and valuable on on how and didn't they're They're trucks, still new so really we're was And buy to employees reimbursed, all three charged have – want XX at-home company will, you the of charging, to do admin if to to for paid the gadgets electricity when those they kind get getting for with and employees, Their established. the getting obviously, they we've And right? know want things and because networks are stuff. even

big is, to headline pretty to tell we a the we don't – it's initially, And big are me, the think news. not view mixed, least so, a it fleets because story as at everybody I drag, good which, it's want for while that

there. think that put priority catch the up, think we're we're of in seeing. set they've as similar I as we'll question, the pretty billed, probably really our of it that government. a high I the that it's will tomorrow up some US pace get again, be I the be to to copy in, lot But government which know probably in terms ahead much think the try the my second EV the government will going playbook is we'll same are a here a reason But, tonight targets and at function the maybe and Look, question what of a will about to countries it, get On incentives will anything. are as is? it while. out has a something guess of work up, that set Europe behaviors networks Networks billed stuff is or so the for that way incentives and How in

vehicle electric pushing company. So, the our on keeps out to impact me, it just

sneak great. I XX%. July, third the think That's business, AP I in But Charles, at then, good more growth. were if in, volumes very that's grew up the encouraging. one you That's full I looking in Okay. just And XX% quarter, could think,

we in there So third I be guess quarter near the term? Anything out call of how you're kind the sort business teens? of about thinking that maybe and exiting to should

Yes.

a volume referring growth, into X, you're I'm put some synergies assuming terms ago. in we that of year lapping to So, the are The slide is that growth. XX% business – place we

bunch when they had tied So, that product vendor what take database, virtual payments the them our on turn to of Mastercard so and were some through is they other But acquired payments they did basically to that and card. a we making our modalities were business, the could we doing. we we

we We're those saw the now spend into of lapping lot suddenly so a And system. Mastercard synergies. come

base growth. telling in And you're that really is case, transaction big so organic going that in layering the going in on. to business basically is and, It's sales this just pouring sales volume you keep overcoming softness what that it's see forward we since in about COVID

have call it, growth rate business, XX% And sales continue. this so we're the going teens, high provided kind to this kind of of, in

you. Thank

the line our next Trevor of ahead. from comes from And question Please Jefferies. Williams go

Charles, with guys are for the a on taking pouring you And the Thanks to guys. like question. up, fire the earlier. expense to I little bit you about you more than on fuel just historically of upswing? the wanted start maybe on thought Matt's comments your come bit run the to reacceleration Hey, framework, It back just sounds revenues the start you when to start get that lower be on follow going made margins some we thinking of top XX% level should kind With a that line. more when a incremental we've that to question

and balanced. pretty say disciplined I'd we're No,

so in in we It So what shift investments much versus calories, But make can stuff, back going fuel latter certain try the and marketing. I do a we prefer it's everything we office do call I you investments would former. make not – fire, the balanced. be sales can is I pouring what be is to to as the when say will incremental. on company

And of we so managing control in and bottom some all and disproportionate we're in that very disciplined our very, the marketing, operations, line put can effectively. way sales while investment still in cost

spending dramatic big not kind a changes of in that It's in shift So, would regard. of versus anticipate I investment. incremental any more

about sales sales helpful. correctly. that a up clarification it. just that being growth one the me. XX% to And sure referencing? got for – better little hopefully make Is that about other Or hoping Okay, you're Thanks. quarter? revenue down year's when last to fourth just talking is you're understanding level. XX% you're question for That's to very of you're I'm fourth get bit I the new talking comment quarter, want Ron, or

Yes. sales, new Trevor. That's

annualized have much clients create? XX,XXX the So, yeah. track quarter, measures call so will system up that we we keep so, revenue new in that, And a we how of sign business. what they We

XX% last XX%, of new hope that's at in got new business we're QX, got were to XX%-plus, hey, of QX amount now, So XX% or we we when and year. new I year at QX in business be we say, to we the business, comparing this

it. Got

Appreciate it. I sense. why makes That asked. That's Okay.

what I Togut you once key this to to game. this And – let said everyone go which is I the it – it, sure the had base earlier this off, want back make that asked, me is, normalize gets is is, wherever

said sales running you more be ticked to this machine If attrition, the a get forward. could than to up point, we retention it key planning and is

lap softness will the some. though we're we recovering even So,

this metric forward. I is revenue want us So don't people miss and to growth to important how to going

Got Thank it. you, Okay. it. guys. Appreciate

America. comes our from And go Bank final question of the line Mihir Please of Bhatia with ahead.

the restrictions could you. shutting at side. UK you recovering I putting incremental quarter? kinds Thanks at the not for guess Europe disclosure fuel should is the a just the payment one, for views was least else down about on on of parts in I are was Thank of place, for terms everything that about some just fuel there on relatedly, just one headwinds from the in. just card about me segments I I we how in be segment. hopefully, talking fuel again had curious or the particular next movement while better? you getting thinking with do your of card for and then And just Thank quick corporate – like Hi. side. squeezing customers wondering Are you maybe high card something similar us level that or if on

some are seeing on businesses we fuel we mentioned Mihir, in So, of that the the business, small still card softness still as earlier.

that's So, to for come still – that back. waiting

been to your lockdowns, lockdowns, think, fuel such, I we're terms the transportation little industries, that In bit slow the back been our manufacturing a of local shown more Europe has a in nature, business. as public had stuff as some bounced of in slow. transporting, The things regarding Obviously, of has at those they shut in press, terms down. severe, of To they're nature in quite exhibits. what going of how far read don't watching least the volume point, I've seem our as the is

waiting still like. that to impact look we're what So see will

be to say determined. I'd So

Yeah.

the are what said super Let We to just yes run add the me like of we is that Chuck the to pay. answer clients there sick clients. corporate show in distributions

X,XXX six or are it, are to So, are XX%, let's basically down XXX,XXX them clients, XX,XXX have XX,XXX XX% XXX,XXX in and had we down down call layers, hey, or five grown, hey, then we put or of the more. X% XX%, say XX% hey, XX,XXX like layers,

them. see that So won't to we're the nicked industries less by, industries homes we versus some impacted one going whole plumber accept super have distribution because were hey, of

than that it's So the quite things we and payroll that as retailers the as why been business recovery, move corporate have because actually stark in in have business. pay will, pay sales business. is the in that our if in corporate and hotels, shuttered it seen same-store more pay maritime again, And are don't fuel not we've you it's our corporate of

in sitting we just dealt business. were So set more clients of that effectively impacted a

you. Thank

further questions now over back at for will remarks. And the call queue turn I there the are closing time. this in no

guys. on further end, our Nothing

Let us available. I'm always else, know if you need anything

evening. good So have a

Thanks, everybody.

today. We a Thank you lines. That that have participation the your does you disconnect please thank for your and day. you great conference call conclude and ask for