Corpay (CPAY) 5 Feb 212020 Q4 Earnings call transcript

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

As a reminder, this conference call is being recorded. I would like to turn the call over to our host, Mr. Jim Eglseder, Head of Investor Relations for FLEETCOR Technologies. Thank you.

begin. may You

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

prepared get will announce the remarks, earnings questions. note in for line queue that then only release operator on It our fleetcor.com. at section can Relations our under session. for Investor Q&A is the be and that the the will site Following the you found supplement can Please Web

information Now, financial calculated diluted not throughout financial income other historical described. share. as revenues, this and comparable at of release today's call, directly mostly including net is information site non-GAAP in we information the will accordance be presenting adjusted information on Reconciliations per non-GAAP appears GAAP in previously and This information, with press non-GAAP adjusted companies. differently GAAP calculated Web to income our net maybe adjusted and than

risks development Now, forward-looking about begin guarantees them. of expect. upon These and information. products of may uncertainties today. that should what have statements everybody of differ today we future not remind outlook, could put acquisitions subject materially which results undue reliance our recovery, expectations reflect to discussion expected I numerous are They future that include to you are and based cause on remarks, from before as are need and our not These best information performance acquisitions actual and results part statements All the we business we new and regarding our statements. to formal

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

call. Upfront QX here thanks and cover four joining subjects. I'll afternoon, Good Jim. to for Okay, plan earnings our everyone

my on finish. our provide First take QX

put I'll Second, XXXX. year full a bow on

And on which a growth. outlook. accelerate XXXX our update the lastly, share transformation of plan I'll an bit provide Third, is intended company's to our

Okay, results. QX to let me turn our

quarter year's loss we today volume Same-store that's strengthened minus versus retention softness the These million X%. last at release recovered client than and in EPS anticipated. X% and $XXX steady cash by results although to reported million So a XX% level. revenue a $X.XX to sales bit that's last down reserve both XX% or year. of continued down better of of improved Volume Credit than over of XX%. X more helped quite are prior the down that importantly, XX% a we did year, expenses of We minus our did tags revenue in overall forecasted. We XX% city added in we QX, in sold users growth And we good. XXX,XXX against or represents Brazil quarter. trends urban operating fantastic new new in the organic X%. beyond highlight really But QX Sales quarter. the all the manage most have in the

Brazil for in RFID fast fueling, and even real So parking this now segment demonstrates locations. network among demand there's purchasing non-tool the including food

the look, really of the of in business. So the sequential QX trends conclusion is

recover business earlier $XX credit evidenced last that losses $X getting from from of EPS $XXX metric XX% so X from million every at sales to then year Same-store to holding the retention better us, at XX% volume over from can million that $X.XX, of from to to XX% up minus continues to sales XX%, Revenue earnings year's is supplement, lastly, low. see million our up $XXX X% up and the Page QX level. from to look to you you steady QX the cash minus $X.X If improving lows. now million, to

XXXX. to over Okay,

of shutdowns XXXX. perspective best and financial $XX.XX, X.X is be our mostly the the cash year, then, the fact X%, lessening. market a is EPS finishing on in The billion. with COVID weakening the versus news services; against our us good had COVID did less driving still new number clients XX% appear over impacts revenue at sales, and being ways, distracted. our XXXX a macro currencies. manage to from environment COVID to down XX prices client vanquish Really at three we're in revenue due $XXX while That's that going So QX, impacted that we a despite softness, COVID the finished first COVID is in fuel international reduced down And of for that so COVID XXXX planned reset million and that down approximately to not financial that living on of we use third XXXX.

seen recovered of rates. relative FX and about QX, softness, in the stability XX% demand recovering prices half experienced loss year now fuel we've reached for in clearly So of we've so reset, levels. the and And QX, macro our it sales client prior we half that back already. the revenue services lastly, Post as of

having greatest a few manage in things. not performance the accomplish despite financial to So did XXXX, we

in I'm our delighted we signed in we QX, acquisitions with XXXX. QX tough just but credit credit, did manage down performance Expenses expenses So over four and XXXX. in times, XX% QX;

of in replanting the had able well were a best Our the we the and and overall conducted the came actuals replan. And half. replan uptime smidge exercise than second better history to in the guys lastly, company. We summer business ran the a the IT the system exceptionally in

the to times. who really give in So through out of shout there reminds hung and can unsettling very all company fleets to do people plan. kept going FLEETCOR that us again a I business want you

our the our in clearly but generally guidance make turn we'd XXXX. I say our the along initial beta to numbers it, is me the that let And outlined XXXX Okay, behind with positive. a higher setup of year, assumptions

from mentioned production as I improving into thus, So new in Sales, the strengthening revenue we're client XXXX, a the through forecast. solid 'XX. to and first, get first to We volume and and client that expect revenue we'll were to retention potential admit also ago, continue amount to business although that the credit trends. we trends of 'XX India hopeful very so that's that softness hard get additional bit recovery

in QX of that's So exit revenue about guidance, one-third recover we're our outstanding softness our planning now. still to

if So recovery we about revenue X% to get that, that half. in incremental second would of X% the provide lift

level. of at So with in of emphasize EPS organic XX% reflects company. year acquisition. sales planning this be And are that, would increase, billion sales the X% a business, we our over midpoint the midpoint follows; significant of at that Roger but from as to record level from growth guide revenue which do $XX.XX We're about X% that recovery to X% of assumes $X.XX same XX% core revenue range cash $X.XXX for profit guidance I anticipating overall XX% for would the the be of today's want 'XX for of the an the softness kind dilution to

consolidated at that number at $XX.XX So midpoint. our would the put

May Lastly, for the year. be close accretion assuming a the could acquisition, Apex approximately X now $X.XX for

$XX.XX. out growth could teens. and But will QX So further QX, take if that I be out the profit on-time that and the speak rolls how happens to the do about quarters. consolidated high Chuck point cash QX revenue EPS want guidance across to guidance our back that outlooks to into

company's transition let to which is my transformation the last subject, plan. now me Okay,

is accelerate by two really, So transformation growth to our doing plan things. intended

do way the businesses. that transform first, in in utilize beyond deciding we the want we But in faster portfolio, reworking diverse our we second which So what be be four and have a the and to existing growing more businesses not all is businesses. constantly our of of major company through to set strategy,

So trying do to in things. this really we're beyond strategy, two

into. of extend the the we business First, new that identify segments can market

who serve. or can sell that the we identify client And to So we else base. can asked, we we second, back adjacent services cross then, additional

virtual XX beyond example Page beyond our So begin in the of our businesses. years of if our against just you'll Roger. of call We strategy, of an for to earnings with continue proprietary in acquisition to supplement, most payments see that's which with out all all initiatives initiative a earned beyond we exciting hotel zero But make from literally implementation we you settled business, XXXX, few current XX% of the progress we maybe from four now lodging our so look interchange our our of each ago. do today, in up card at

fuel So of our along space, card this see payments the SMB move begins you with base, the business and Pages full supplement. online SMB corporate offer XX our into can of on to XX that down global our the to bill pay opportunity market

in feel in bill because growth the both assets that single a to that this pretty potential We like the has have. pay fuel our accelerate card set So unique position special dramatically we're we rates, corporate of pay it's of and initiative businesses.

sales now pretty in cloud a SMB that global with which historically hundreds capability. very base to generated along We've client of billion got some us in working interface. thousands, So database processing large allows cool software quarter. to we've annualized XX merchant acquired pay numbering card. user we've We SMB card the got channels, virtual bill large spend year, functionality, we've per XX,XXX clients virtual last had a provide over new monetize a And scaled have modern the got

I'm look, hoping few just conclusion takeaways. a to today, So provide in

manage recovery. maybe improving how 'XX, clear the a trends the transformation happens an we remote better perform biggest the think around only that environment. progressing, with, slightly business. deal credits, certainly strategy in So year as learned good improving softness best some unfavorable but the year with all. on coming of traction, to quarter today's mentioned in even IT setup we absolute them evidence now manage pretty beyond looks card lastly providing QX, sales what the I went from incremental again, of and and online to bill XXXX, our tricks trends not initiative pay new did some our certainly to macro again, SMB are expenses, into but wild a of And the perspective but

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

Ron. Thanks,

X% of the income decreased COVID-related was X% quarter for million, businesses. of XXXX, we $X.XX. per reported revenue again fourth XX%. net business to to our slowdowns, diluted to share affected quarter the $XXX quarter The income and by down quarter decreased million GAAP although in net adjusted and XXXX $XXX down down $X.XX. to For income net of XX% last fourth XX% per $XXX income share net diluted showed GAAP Adjusted million we most over improvement of

fuel We revenue down overall, X% see line primarily Organic performance. Exhibit for manage of our revenue financial prices being impact in reconciliation due quarter fuel includes of the revenue non-GAAP changes press closed down of with acquisitions foreign Please was release spreads same-store metrics. rates, continue and all neutralizes and expenses for Organic results to mid-period. sales X% the to X exchange forma year-over-year in in pro year-over-year.

from down was The category on Western Europe. XX%. customers points fuel corporate customers of the QX as stable new volumes XX% quarter. whereas or by was was trade. well in and X% spend to we from by offset payments X specifically were down lower perform again fuel Cross in continued of highly COVID-related domestic XX% down political by very especially still affected with the most the invoice category an points manufacturing drove card our which X Lower affected were spending volumes businesses versus in border were affected improvement AP are year, Approximately last product in fuel being XXX benefit discussed quarter volumes wholesale the Our levels, payment organically flat closures for Full decline was up the the renewed international approximately last drag up continued to our affected the of customers. X% T&E the as organic another fourth drag. and volume quarter, driven quarter. FX-related the Virtual quarter, about were last improving businesses

than Full XXXX of were year strong very results. more were sales New double sales XXXX AP as full

be with in grew XXXX. in have XXXX the in drag from and fourth of XX% was plans period. and organically quarter, another ERP XX% new continue for lodging quarter. XX integrations the to most or points new toll tags continue X% all XX here fourth resilient business sold organically of ago Active last category our Tolls quarter, enabled invest with up so accounting for in We the during the to were up XX inclusion XXXX. acquired X% by lodging in of tags in tags The airline businesses the caused down X% quarter, urban year with

in line below levels. digits. mid-single improved volumes last in also have the Our activity, flight well workforce with still with lodging volumes business remain Airline down has year's improved lodging but

XX% of total of statement, high-end the costs commissions, for XXXX stock related compared compensation. Looking were reduction $XXX the our further related volume We million. fourth of quarter to down and in our lower was with to due The employee operating line a including performed fourth bonuses income target decrease with costs, expenses primarily the quarter sales XXXX. lower headcount, down

rates. We lower to addition T&E exchange of also foreign saw expenses, the in impact

As four percentage was expenses were million points, a release. reserve revenues, only $X approximately XXXX last or of debt XXX a includes that expense point points was reserve release quarter roughly of And XX.X% the in the which fourth excluding total from operating improvement basis $X of quarter. basis or X basis Bad million.

favorable. very and various of uncertainty continue debt There responses to good levels be COVID around and cases stimulus roll still around level timing, the increasing is bad and Our government our world. remain duration aging the rates to

a million, year. related consideration the reserve. the portion additional expense Interest $XX.X decreases impact by by buybacks our the for partially borrowing driven earlier on in to still of This unhedged decreased of that's was offset to share in primarily our XX% So LIBOR debt.

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

consistent billion of approximately the to XX to of our capital allocation in we We opportunities, employees believe of primarily cash, million $X.X back deposits. spent shares at and cash the customer is had We liquidity turning we cash quarter, buybacks. with it connection buying term ended In sheet we makes on any revolver quarter when $XXX X.X balance our billion sales. and of the shares In XXXX, undrawn end. on our December total for sheet on XXX,XXX our consists flow securitization have still Now share million billion pursue a $X.X the and as we using in roughly balance total remain committed consisting repurchased and available total near facility. restricted buybacks. We outstanding of quarter for program million just XXX ample of shy acquisitions facilities M&A $XXX to have credit We approximately borrowed that which liquidity of free sense. opportunistically in XXXX,

EBITDA of For we quarter, leverage of we December trailing XX had as capital $XX.X of the approximately a X.XXx million XX. ratio expenditures, finished months with

our thoughts on let outlook. Now, me share some

income be of which in than at Looking ahead, we're $X.XX, seasonality. between QX of is approximately per midpoint difference $X.XX revenue to expecting $X.XX, QX half About and XXXX XX% adjusted the share is attributable net or lower to the reported what XXXX. we

You like most see first quarters, our strong businesses weak our seasonally businesses gift while quarters. fourth seasonally some have have of of

Roughly expenses impact. volume-related course, the expenses. certain difference offset revenue slightly a to will of of third seasonality normalization Of this is due the

For expect we XXXX, bad example, not million $X our in QX do of we of reserve, to released in QX. which repeat debt

increase gradually bad XXXX, to debt balances as As throughout sales expect to recover has sequentially customers continued age. performance we those

XXXX, target accrued proactively the COVID annual reduced lower impact and XX% those remainder the the payouts by the related for in of year. our incentive targets clearer we when became shutdowns Additionally, of to

recovered XXXX our meaningfully, plan return targets to we As to normal to business levels. incentive has

reported expect our basis rate we points effective about QX XXXX higher also rate in XXXX. the to We of than XX QX XXX to in of tax be

investments marketing are slightly incremental the Lastly, and the quarter sales Roger of and to sequentially. acquisition dilutive

XXXX, have are wider we Even how and those it's in the about around Now feel than possible looking ranges some QX help though outlook to you what beyond full a been past. year thinking the we're bit understand providing ranges they to important outcomes.

environmental rates, on share acquisition. with per and incorporates to current now, billion and billion contributions be said, uncertainty run our $XX.XX, budget adjusted revenues and recovery performance. $XX.XX the expense guiding X.X sales which macroeconomic expected planned income factors, faced and the be we've developed impacts. between of have the attrition we still a diluted between impact of pace economic will net including it and inclusive We're we're XXXX XXXX, That revenue Roger to and everything X.X For regarding financial substantial know

continued that half half rollout sequentially. new softness allow in improves guidance a gradual sales of our first improvement an of in the with the addition, of year the the and volume the revenue back assumes and client as vaccines year, In acceleration performance will

As higher several mentioned lines I normalize to in expect expense earlier, we compared with XXXX. XXXX

As making sales, results. business growth road, our disproportionate related the IT get our and sales continues back well the investments our recovers to higher. directed to We're and marketing is in we've than expenses as We're rise our excited and Roger extremely also sales rise as volume XXXXs higher T&A and to that That's improve. will incremental expected plan. production acquisition reopened debt will expenses stock more bonus activity. support as accruals to be will XXXX incremental credit XX% aspirations salespeople sales business. and And increased a expense towards commission also of normalize a and business than with on sales performance as with will investments our deliver marketing and be share

the be XXXX. drag diluted in fully acquisition an income will per loaded adjusted estimated share such, As $X.XX net to

through And again, As And we've and do lastly, if have deviate slowed begin the expectations. by on continue to balanced Brexit accordingly and a we shutdowns. demonstrated approach we from time we'll Apex, our which expenses. revenues see adjust take approvals been to virus-related we on work

we'd line versus of Apex still questions. we just now like to in included to While to it ranges the clarity, the be deal in And expect likely close operator, XXXX, earlier. guidance for more I in for our not expectation And QX QX. is we believe the is accretive now open provided original

Sakhrani first Instructions] with KBW. question is [Operator Our from Sanjay you. Thank

But the just on into baked may of all what's When on down sort the the Thanks the be that one guidance. I just a you little talk think guidance drill ranges other. extreme the Thanks. to on versus for about the trends bit. color end, the and about Charles end

Yes, so appreciate joining for you and the question. thanks

could terms would the mentioned, suggest. that the as super Ron magnitude I'd if back, perfect we be in were experienced perfect, So hard of maybe high-end, that get say in sales softness of and came And the timing, we've roaring assuming a there. So of scenario, COVID that right? to all our the we is recovery, it are if terms

pretty a broad you it's So range, see. can as

happen On if administration the to be who mean, mentioning economy, we're back problem. what's So knows QX. regard, it things COVID, were the Biden that come vaccines, back, I with in going be right? everything downside, think could says, that We given will in the reasonably news the things a optimistic to being

range I'd So, we're optimistic really regard. the in is that we know. say that, because just don't But broad,

Hey Ron. Sanjay, it's

just plan Let be Chuck's got comment, me which to on for the sales, sales we've increase 'XX. pretty second add thing a would steep that the

And revenue, of pretty on that and will that in also so gave. big have get in range both comes which a the pace the if amount that in, backlog swing year we that the at we the

flush Ron, you obviously then, think quite the guys mean, a And here utilizing it. you do with about Got as liquidity. you how are and year, Thanks, bit it? you of envision next I sit

Yes.

steady is think of as our I philosophy she goes, Sanjay kind right.

a And deals we're is pipeline. creative in four use the acquisitions. active today sitting here with three first or interesting, Our

we highest and given should stock if ratio first the your indicated obviously trade, doesn't And point, buy then think our and stock leverage to stuff, back. it where we've always we'll that's So use. our

one depending So and two. price, buybacks stock on the acquisitions,

with is Tien-Tsin next from Huang question Our JPMorgan.

sales of encouraging. that's were way think was conservatism range. of about in level the guess to like what also want outlook, new encouraging the say Sanjay kind I to the I guidance asking Any reinstating about your the

some maybe but to growth I excited to -- be this pent-up trends here. trying excitement of think just about clearly just think SMB demand, get improving the are understand, some a understand I'm makes chance plus bill to it the which I conservatism that new versus sales, could double-digit your back about pay, sense.

the wide Sanjay. most plans It's arrange tried to then that, around build it. we've figure what likely, Hey, we right, I'd out and how call say to Ron, these

think QX, it's and of back QX, we've of total which remarks, part right? know XXXX. at confidence And from quite but obviously literally had big is you comes And so, trends still the half don't gotten QX the the up it I it in a looking between QX. my number, I picked we if QX all significant. softness, look for and When pretty at you've

I'd there's no So that, say precision this. in

this caveat as card could we softness many I the think as of ways recovery. wild we about

to So we I'd over midpoint. that, try provide the to say keep ranges

don't likely. most say a of midpoint out we So, kind of I but know, our

Okay. And being pay, talked an you about from big Roger standpoint. opportunity pretty with bill potentially

What we where or timetable the to need the it should moving? point tracking? what's steps get take a What needle to So be steps becomes to place?

the great I basis I'd we'll, a Yes. in they're even mean, probably, a market the obviously or it's on standalone U.S. in question. say, here

first if own So field our things that to phone XX selling then, our that with own base. it And own prospects. two the our to we're America it new one, on product, should people and our launched cross-selling be is digital, days, channels, I North back say

by the some time we we news So, for time, hopefully you. next have talk

is from Steven question next with Morgan Wald Stanley. Our

for investment. for how you front about to And could if it of envisions guide thinking that contribution relative you're I was out potential following the on timing if it's what and be XQ thinking sort just you're to as just and I might question that Roger. up curious able the over, on speak 'XX, one then planned Tien-Tsin's loaded, year? sounds that full guess, about to dilution like Maybe the Roger from the somewhat the frame investment versus

Yes.

XX] people just of picked that some So right, is related, deal up we [ph]. [their it obviously

immediately, as sales some building acquisition, those advance even now level got corporate that for investing out are well at dilution in just we've the we So happening channels. as

that see we'll ramp up. So

scaled of be fully dilutive for the flat modeled going In channels. the fully to we I'd say roughly terms we a contribution haven't of still year, kind yet, it to it's until next little but

much nonetheless, very say works I'd see a them, So But it's we odd, terms some too couple what the revenue. about obviously small million things of in before million to in. acquisition, want

of a because It So pouring But that was there, a investing bet real continue. sales helped us are got product. their upfront going. It's it we're deal. we're the marketing they've We're of lot going build real and kind to it's long for a to us. help way get this people and go. And to retain to a need

we So some well. there extra built in costs as

going of So be much how of the in terms depend it's really year, what the to could next magnitude investments. on it more we pour into

just probably seems of that of pandemic, it some to got certainly payments as pointed thinking you're are the that as know has a beyond liquidity, business clearly Appreciate has about I'm own it there's of you couple lodging growth then the are of and the to of things you've the the permanent out, that the guess be investment fuel that the be are then into obvious rank to a I strikes us investment beyond directing a how you dollar that. main lot going shifts. plan. area. layering talked clearly, And Slide but priorities is stack out I'm you're could me I there on its behavior if But one and priorities, corporate priority business business maybe curious areas of. XX about switching total thinking investment, coming the areas like key the but strategies. main that and sort the got outlined towards of you're you gears guys thinking some XX beyond few for the with some relates you through, curious of level how been

Ron it's Hey, again. Steven. Yes,

because cleaning And that and collar, think corporate yes, I of size the cutters lodging, say right. XX% called into it's be company. workforce, the our XX%, the would one FLEETCOR toll business, be would new the would two pay business of guys utility So Clearly, but blue up. one still you is a translation, I city, go remember lodging thing is of tree

now, at volume and month-to-month, mean, the to I January believe, testing back. down thing looked numbers is And is today X% way earlier so I that X% I year-over-year.

business lodging the we And looks call this so that thinking are than on of business people kind lodging different about. completely

So the different volumes a to ago, of of the completely your snap, the year that one back that's possibility. call a things run of and that bounce I part XX% is of say, kind as but airline point

out took it. of So kind to a money see it the going the but number airline of of still ton business business, of it if we've But caught, would to be wait snap like portion particularly of out that here three, to back. it's we

I Page XX. beyond and we're we couple There's workforce verticals think, at everything. it we beyond on a lay interesting that leverage looking of that that a that airline like lot

We and systems network stuff. and have the

like So we business. investing And things will want I we we and what to be keep some may clear, business. buy additional that to the

Let me be clear, it's business. not white collar lodging T&E kind of

from is Barclays. question next with Ramsey Our El-Assal

pretty with impressive you of signing many ask of basically what how ask wanted that statistic kind about merchant the new of need users to you you verticals new Brazil. yourself Brazil equation? you about you're building have in that there Petrobras that Or And is terms Do of up, was or could to wanted with? side to a these the now of getting continue I acceptance involved of or could see out kind other merchants you along or have McDonald's that pipeline product? in great merchants lines partnerships

a question. That's Ramsey. good Hey,

the three city. effectively locations focused four people on back parking, that think fast in condos then mentioned, the food, for right we're access or and fueling, mostly city I we

massive. plan particularly fuel footprint are the a actually, put it's of in spent capital amount to we the plan, there, the so out build fair the because dollar on the fuelling And 'XX biggest right, TAM

three up locations bigger And the tinkered the and was guys the not came like but for our the delay configurations so high. into improved that COVID, hardware reliability, two different software only super with or fueling

doesn't reduce dramatically car the cost. the a right in if and to and the it's knows make So gets thing, mistakes car

across so And add to up a to board. stations year going though first half even business on be hurry the that is super the duper of trying Even the now, drill.

a lot grow transaction the as second we see usage half. So thing those we the should move into counts of

out? of whether mean, to a generally And the kind we're again, environment? sort tighter about opened kind up we about from obviously, has I largely even then, Or, and of the aperture in is And given forward? terms business of macro on we Okay. of degree, back it topic, further should of headwind across to credit ask wanted credit potentially largely sort that your some separate revenue a in it's sort that quarter there in of kind was played as of think still narrative opening I a challenging how go maybe but standards,

good Now, that's another question.

So to We right, I'll even back, payment happened of even clearly the terms that we stuff. thing trimming one. we start on reduced which accounts, far accelerating revenue right, overreacted, and the kind existing back pretty pulled pulled so lines, answer --

for year went Chuck we even out now roll pretty and I had the mentioned So we've forward rate. hard a reported, the and think

got we've in lower fuel -- business, as the say So we the I back. losses, can certainly basis back. the are spend lowest XXX% remember credit so we think card and I rotated against and the I

sitting in -- still I'd to space being corporate fully our in the impacted. is client, had one careful. pay. pre-COVID, I'd think pretty the you fuel the place been, back industries where if is still certain So we card significant, pay is there the The about say cautious went it and reason businesses, and corporate being whatever open credit still that you little per say still have a And we're balanced policies, if so we're spend fully we're are open. so we right being looked the at

a risk way money. but highline highline, we BKs I'd couple for because we still the of, of of more back So move amount significant say call that it's some internally one all back what not

four as upside So cautious 'XX through we there's of those comeback. as still where on I think we're roll three or kind industries

Our next David question Evercore is ISI. with from Togut

thinking following Just for on you as categories swing to factor sense the pay. Can us seems since on you're the biggest other up the That XXXX? that of your for some Ron most reasonably within corporate comments holding about business give up T&E card well. the are be range of

question. Good David. Yes,

is gave we sitting inside, pay overall high guidance business teens. the So corporate the

line looking high So the take sitting for teens if you plans, of out at business we're in that. entire our

now of if there by, which they're even payables. us. that you And P kind white inside call around of down is as remember, mid-to-high we it collar I shrunk of think That what single TD, a multi-card, the about vendor probably of down supplies, looked that fuel. multi-card walk time I business to even And the in like as a line is digits. are TD, plastics cards now of form of used being XX% think I is the plastics last kind

supplies, XX% got of that so buying it's business paying vendors. an And fuel, is it's it's kind fortunately buying okay, of

much And decline, so it growth to as the really it's not down shrunk rate going drag going you because if not in it's to will, down XXXX.

on business corporate fortunately, less impact total pay this the have So year. it'll

that. Got it. gift going Thanks that hang And for view business on that you're some final then question the to the quite a on for time. to just is card

appears it from business? you generate it, a to be that Just though given even the cash declining

the still Obviously, at the pretty opening say answer Yes. quite our obviously, was you has listen well. our timely, the year way to bought short portion ago still we ordering, is, a gift business online in to help a that they rotated of cards of those if high People card as far gift to the retail and come online gift business QX. cards in manage as down kind over and impacted more sales. super brought XXXX, category the Surprisingly, back digital pretty gone a to has yes. word retailers thing David crazy I'd

getting is business those digital from that some initiatives. surprisingly, healthier new of So

I actually obviously of for is we'll the is, 'XX. softness see their up, this so, of And off plan year kind say how goes, what

we probably So at year. another peek get business I the late as we'll take think into this

question next Our Christiansen with is Peter from Citigroup.

just a Can IT year some I give that here. considered recovery are possibly us your given the not of investments? for through here timetables have in think incremental accelerating of of key investment you goals on some and that the initiatives some or those whether we you the

the Yes, invest One, recovery drive growth. that we're think two accelerating Pete. doing we're not It's I'm year, Ron, projects we're I trying for in sure things. that to

to is. the million, or prior then, more million word up And whatever money Pete pour over the capital what Chuck, kind modernization, IT transformation bit we I decision made the So we've kept a a plan, we year. into think second, XX of call XX

the so some stuff of and some updating, So and simplifying we're hard the pretty software on obviously, of consolidating hardware kind money footprint. into of trail and apps, the we're pouring our of technology

investments should we're the but things money like still Roger spending so on that also new While making we things we're transformation on interfaces, and be new side. obviously analytics digital in mobile packages,

of Does making is administration a on federal looking on you announcements think then, over card The term GM Thanks on up FLEETCOR about change term wise perhaps longer And the Biden fuel with how to and fleet. recently Ron question EVs any manage changes the how broader picked industry to bit telco. Ford, to a business intends the drumbeat this of longer switch kind in there? here. little some

for we've I and kinds rate Yes. Pete I now, model, so TAM all been and I same at growth long-term, EV, potential XX% think bit but not we guess. mean, that that on things only the think, a on we're reasons diversifying, do I what the just share and company of

life, the last time point years in combustion the of it's the of if move and rate the this about markets here paying EV there's I from because paid So the car the base, United commercial growth EV as some thing they're way to pretty a because U.K., today, and they the vehicle we're the for said in homes. the think new the call to our is of years the useful I vehicles XX farther on of in even what is, the we're on thing our anyway. bit dramatic, a) install in the the of that models little in less two the out moving EV biggest engine EV, we're But same same and sales important States our by But acceleration I XX of show way. number fleet electricity, are perspective the vehicles, sales of U.K. size Europe as the employees U.S. the points charging it's clients we're is in gas opportunity of us going card the more time learning at buying what the the again millions life. getting particularly XXX,XXX stations having fees, of, And for fuel, in buying mentioned last is, example, in

and reimbursement. the us those new the and so, software charge hardware all of like in all employers And they to and measuring look role a the play of points want

think so, going what I days, doing transition of early say do the of we when fleet employee people paid and even get and And amount fair to reimburse you to to it's pay to around but in expenditures money, measuring guys a EV. vehicles, that we're still we and get helping and both in mixed over

days EV in the So of bit subject, engine pure little may FLEETCOR’s in takeaway, we're it's out b) in with this world. like, there have to a) a a even old a a economics longer what being, hopefully going teach maybe XX way on and combustion for look

from is question Deutsche Sabadra next Ashish Bank. Our with

XX%. pretty good acceleration question results going was back in. front, considering the on the And good environment congrats are there on we difficult macro to pretty My sales

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Ashish, Charles. this is

sales we at of in terms XX% performance, the year. of had over mixed. mentioned, prior yes, It the QX as exited So, Ron is

versus So unbelievable the fourth I'd year prior say overall year. in sales Brazil had outperformed an quarter really

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in okay. year Our business come has right kind lodging of last around actually performed that's

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a possibility So, pretty to lot there. we've do, excited about we're or got

Ron. Ashish, it's

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right? to against know plan, sales for prior you And both people on make kinds are quarter and 'XX, is year with I a but that the had the that in of big 'XX, don't in call to most -- you which into took guys we're which all into is the a the it's selling of pour rolling this this super is and if softness interested here will We year. super point, the lied 'XX, in of half big, deal absolute, same the of 'XX. so we basically year out revenue Chuck's revenue is I that a part get forward so wave and dealing

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So fingers crossed.

that. terms earnings, making And guidance a in a ahead that's also on forward sales our think of we're I investments investing big because so And right, again, putting we're way. little in pressure

mindful be should of think that. I So

that's No, color. Yes. very helpful

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going of Just AI on acquisition. maybe it and the a Roger it's bill opportunity, opportunity, follow congrats the large SMB are obviously, players pay on a question up after lot

those how to have earlier questions leverage you that opportunity? have accelerate plan very sale you down are you do long to to maybe sales force question and double positions the how up follow which But there, existing times? warm cycles a can just talk and that maybe just And obviously you better? you a lead, much implementation was warm leads I about So your Thanks. on

good Ashish, question. super another Yes,

you is up of one said, pay today, market, the the project to has with that we current a So a merchants and get middle about pretty It's place like cycle. prolong in kind company which that kind bill you $XXX the get sign it's the the what a stuff. SMB all and and get connect attractive million going. of in implementation and is The of to sale have instamatic things business almost

room] the are And [ph], make so, is question more think is a pay the the be and you asked, revenue And they first market. than that [good SMB we connected will sales news that in business point in the missing the capability. middle I corporate the good is that which the super point

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the sell, caused to us. clients to we listen [indiscernible] So to

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with from next Bob is William Napoli question Our Blair.

up increase a question. at the end sales line growth the we're Or But is conjunction that time in in something Just higher quick with accelerate your I know in sales, the is in the long-term will growth getting ramp transformation sales, rate that investment the here nature? the over idea on that focusing lines? product here. investment in one making this growth you're with is the increase and and transformation the over to

of similar The plus XX in answer. kind you see short three the if our And plants. XX% is at our year you'd increase plans, sales Yes, look in increment recurring.

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to money have set we create now. more as product spend this broader to more engagement going we're So

to earlier sell, at some think then end. spend allows so And decision more in the money cycle, to having I us things people's

a year, 'XX, worse some in Bob decent we QX that So different and historically. the spend in tested working step than so of it's of last of up and part that's kind kind

with Williams Jefferies. Our next Trevor question is from

ask expenses. I to just wanted on

really whatever be Or in top-line? of could get look So similar to expect see you So should start growth snapback a just I Charles, to for flow the to you in just second which trying up end where we Thanks. end at volumes level mean, the the a you big little in earnings about you leverage? how we expense much doing regardless on think op a up range. more to the do organic maybe to if could see through bit might there half?

Yes.

when kind eating guidance, anticipation of of So it's you reserve sales see bad with our quarters bad our commensurate or at I certain and whether of line a debt bit up performance. QX think, our reset through the you look items, of a debt the

in going half snapback others terms Some people T&E like of travel do. our of when up, right to world the of opens the are

mentioned, volume of set it. revenue such come And does core re-level layering and though, it'll Our at and there, in from for that some a come bonus does forward the To of these a when part moving back accruals in that's so higher are Ron like that offsetting incremental kind point, products. that But pour of and right? in margin QX. in, level. COVID-related then We're your marketing that's our sales there's investments more this

hiring cross-sell We efforts. Roger are a marketing in our lot for and of sales

go So pretty of quarters year. as I'd to through my the we say view, going in balanced, the be it's

year-over-year. guide. roughly That's it. mean, just implying I Got like the it you're looks quick on count helpful. clarification share Okay. flat then, really be the a And to

guide. related earnings buybacks no really So baked the to

back stock reason some Thanks. buying to year, just of shouldn't So there? why we conservatism baked any you if element next there's be in there's in that's just curious particular, if expect

it's Hey, Yes. Ron.

terms build take though, principal capital debt, down. plans basically our retire in we So right, allocations, the to going of we're clearly,

transaction that or earnings. the to we capital buy earnings up To allocation extent take and to And your your allocation the back can other buy acquisition, results though our stock. so capital point, point, we in another b),

debt. XX those is we Trevor, what is two since your what not the months. So during in roughly year which, know today, a to do, But to would dollars in year, debt the the guidance hoping that basically assumes guess future, is that to billion cash point decisions of we near flow we the I'm that's we my now from the have retire next that which pay down are plan

this over to like question-and-answer to for remarks. concludes the closing it management session. believe I I'd back turn

working Apologize, in we forward all. everybody. you to question. us But quarter. let get look we Thanks, Yes. didn't know your the That's any questions have and if together incremental

you. This today's conference. Thank does conclude

participation. you and at time lines disconnect may your for You this thank your