Corpay (CPAY) 6 May 212021 Q1 Earnings call transcript

Greetings. Welcome to FLEETCOR Technologies First Quarter 2021 Earnings Conference Call. [Operator Instructions]. Please note, this conference is being recorded. I will now turn the conference over to your host, Jim Eglseder. you. Thank

begin. may You

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

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

calculated best the statements our acquisitions have of update expect. could you They differ uncertainties historical part reliance financial to undue statements. our numerous non-GAAP call, and including press information. cause and other today's at Now outlook, information of what I will do performance as information remind diluted any financial of not guarantees future appears and to about These throughout put statements. upon expected most not this these differently need from future as we described. and income to we business may release be information GAAP directly previously today. accordance net results revenues, and of and be should obligation share. Reconciliations results not income them. than materially presenting actual net based to new do All companies. which subject non-GAAP any discussion in that non-GAAP information These products is We of development today risks, and to GAAP calculated comparable information, include are regarding that information on adjusted in This per adjusted we recovery, expectations and with forward-looking reflect adjusted on website, our are the everybody statements may acquisitions are not undertake

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

to over aware Investor short that we I last videos like weeks, would Before posted begin, few make X to the Relations we you website. the

is first U.K., as by electric fuel and who and ANZ is discussed of King, Alan strategy and head vehicles our for the The Europe effort us. that heading approach around the for for up

more and topics those efforts. into The product would full insight had so is we a in feel to providing these can works. that some step We a some our future, get is we on second AP and interim the is work how video mentioned you time for what downmarket continue on this it spend likely it while an

over So now and way, with Ron that Clarke, the Chairman turn to Ron? the I will out of call CEO. our

quarter our for Jim, first and Hi, joining Okay. everyone, thanks earnings thanks. call. XXXX

my subjects: over So then QX and bit view second, outlook; growth of midterm. year our for upfront about X I'll third, a we're here, positioned results; of how share first, the rest talk

Okay, let to QX me results. turn

the the a weak we're and share year, of bit a a me turn X%. hurting That's decline expectations. quarter softness well what right, much QX Unfavorable We so Against in $X.XX. fuel trends the and prior revenue X% credit and have and reported decline spot We really volume higher organic seeing. reported prints our by but a lower better shares. kind bit the EPS of So of of we factor. macro impact call client no really our not with continued we and cash our impacting let Brazil All of organic you revenue macro, did helped on prices guidance. million, outstanding revenue our Reported spreads our mostly same-store lower The than FX pretty guide, really $XXX fewer there. of losses versus a make to growth.

So of now for softness continues bit QX million. overall segment early to to $X million This recover sales are That's expected, but recovery. was in our helped We That nothing finished stuck sales losses, by so trying. what is into but last nothing QX, pretty we in or volume as and client the a at in client retention. short terrific approximately April, year, ahead we to we of our volume that this minus really last XX% versus low year. a in of finally so see growing fortunately result of of year. results, recovery again, of Same-store $X story reported struggling QX of sales, X% really -- Credit QX X% signs ahead years. the call an Retention, Consolidated really best X%. again. But sales sales beginning so real rolling very a small is fantastic. stable, quarter, Yes, still volume, base sequential reflect QX. uptick here lower

If quarters, XX% prior you rewind so ahead XX%, both of our of mostly sales. driven year, card versus by now Inside prior fuel XX%, the year, here sales X sales that, businesses, international, and the over record XXX%. in last digital and coming

XX,XXX So for QX, worldwide, XX,XXX. business we signed clients new

So result. a again, terrific

revenue performance call performance, and performance. most I'd result outstanding retention result So EPS, call the and in-line summary an cash sales importantly, an I volume, for and it it credit for QX, for

Okay.

QX to assumptions for year. see guidance transition on Page rest the that. you'll updated of our in me XX, behind year XXXX outlook, the our our earnings with Included supplement Let along

year at on sequential range of significant of one, staying 'XX expectations kind again, we've probably quarters, revenue, from full the revenue up in midpoint, QX. million QX in coming two, the that forward built from we're in step-up are: in plan; $X,XXX,XXX,XXX. the Reasons revenue That's $XXX QX to unchanged So last put time.

now our teens. growth revenue assumes So QX, guidance the in QX, revenue QX high

our worse, of a recovery. outline. there the the a U.K. bit so our I'd in case, in look it's COVID U.S. than of in terms But mixed. situation, recovery our terms In better pushback outlook, COVID say and Brazil maybe planned and

On at $XX.XX, to we front, flow EPS so full cash the QX $XX.XX $X.XX will for beat. midpoint through raise our We'll the the EPS base business. year 'XX cash guidance

of In acquisition, that X. June AFEX May deal Initially, on close thought we the hopeful to now terms X.

a expected AFEX result X-month we're the as versus the accretion the of take in-year to midpoint $X.XX at So to delay, going previously. $X.XX

about you add, QX $XX.XX deal. All of If to at would year. our is holding AFEX business I They feel $XX.XX, their outlook really combine the the do had very rest steady and consolidated a AFEX, be full cross-border their performance EPS base the right. want midpoint and management good forecast. great the we year for

our FLEETCOR positioned which is today, over 'XX is growth and in turn how a make last me to subject for Let beyond.

do factors a So highlight want in to few confidence give us I sustainable just growth. that

rate. exit the is one So

this plan, pour selling, can't ways of and QX the underwriting the quite I into transformation big experience, say Digital, will again, we of digital strong rest on credit, and impact new will step-off in if rest and be XXXX. a about digital enough company. year making of heading into so that UIs 'XX. our the year So we're our customer digital investments hit guidance, in-year And sales we hit if revenues digital making

this be It really, looks subscriptions feedback may We're looks measure pay of at recharging integrated EV, because EV. recharging lead actually opportunity. clients real. advantaged our experience in to is reimburse positive home. in at-home It Early actually Europe. that like mix there well selling really embracing Third employee will particularly basically as we as and

So is potentially into entry that meaningful strategy segments. new our a opportunity Beyond Fourth factor, revenue new today. nonexistent our or

segments really new discussed customer we've into business. we're of lines major in extending before, as So our of each

we've the SMB year what So driver call in corporate enter the Brazil, pay, enter helped space. accommodation deals us And helped we urban couple space. space. In the of the in a lodging, Roger deal airline us entered last

basically, We've in our TAM cases, each extending our and longer-term aimed factor obviously introduced at just all Corpay is new brand businesses, opportunity. assets. we're our So our our of unifying brand. various corporate these of sales Fifth payment extending extending

a got. us So last And capital. to market business this hopefully corporate identity is then with broader help advantage and factor bundle payment go this single brand single we've that will with our an give

Our balance up would had forecast the circa Xx of buybacks to lever in over ratio cash produce to to flow. free $X billion approaching shape. our annual plan the X.Xx, billion. is period. which Leverage $X sheet's ability invest M&A in to liquidity capital We Again, in or target, terrific generate $X billion-plus either

So obviously, upside allocation. us via for capital

although we and 'XX. we're extending really aware the capital raising we positioning, cash company of And including from acquisitions, QX rest positioned look, expect to if the So again, QX, again, to well. exit, the terms grow midpoint, year year will well in-line bigger drive say got we Rest an $XX.XX. but the at manage of we've again, We're which an takeaways of then Again, it today: excluding I'd performance to of so the QX deliver AFEX, the to year, into a That's next into pour tracking of incremental and $XX.XX that's the available sales midpoint in lastly, TAMs, fully businesses strong so at EPS and our feel uncertainties. returns do each performance. beyond. that, one, outstanding financial

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

Ron. Thanks,

$X.XX. sequentially per tolls up shutdowns. for the For XX% revenue $XX net to GAAP grapple in improvement net to per $X.XX $XXX loss QX category net as our to with diluted Included in million down and $XXX decreased income per $XXX to the XXXX continue diluted receivable was incremental income Brazil to customer share, of of X%; X% X cross-border diluted the Organic effects every feel QX last of quarter related XXXX, saw share as as decreased of a up million, on $X.XX XX% X% COVID-related our revenue growth in onetime net adjusted businesses. We X% we million, COVID business, points to except on our reported basis. million, improved Adjusted income GAAP the impact year. to continues a payments which equated results and to reported income we year-over-year down to share

impact exchange changes foreign in prices reminder, organic revenue closed for As fuel fuel the spreads and years during acquisitions the compared. results includes a rates, neutralizes pro and being year-over-year forma X of

points those international category year-over-year, improvement QX. from American growth growth had so better The was Our a markets in The which year, down lapping with earlier shut the easier X% new strong XXXX North continued virtual payments to organically from sales. quarter, and last was a last in than Full by X-point in than as was was very X% in the XX% X% better compared comps. fuel international the AP point points full to about bit XX was of was X powered AP down growth first aforementioned Tolls a fuel QX were quarter corporate which card strong X by down year business year. sequentially category improvements shutdowns accelerated but QX year-over-year, QX, Brazil. FX, offset as growth down last up due

Looking QX felt last the XX% did XX%, quarter, longer domestic down are be $XXX with can pre-COVID or most how "normal sales XXXX, term, some of you in effects so impact selling due impact compared that revenue QX loss comps better expected. the was the COVID businesses improvement in payments expenses we our very an for the seen we as due of faster to translation growth The to business as are and last with T&E million, the last not XX% That lower up and excluding in organic lodging growth our Recognizing we primarily in much our decrease for use down further we onetime of bad are the organically. other we've travel recovering lower XXXX Gift X% compared which and may of and to currency add category we expenses to earlier trending the to year. year. in than organic associated cards activity was income gift expenses provided year-over-year than Total most were was operating to from than year". digital as looking efforts traction today. down Brazil recent helpful, the with was card available down That's business airline revenue showed of see BXB the real XXXX statement. costs sales, XXXX debt The comparisons supplement cross-border of sales said, incentives. businesses. in lower that expense, X% where

bad the X of million operating the for in Credit or bad compared million levels In decreases As loss a we quarter year. it total continues onetime the expense revolver million to unhedged normalize Interest decreased loss the to XXXX at percentage of expect recovery a $X.X only QX were debt in of with lower LIBOR but first due bright and stable as revenues, portion excluding spot, our XX% on of debt borrowings was sales included our basis to to to benefit point, grow. as approximately be of the recover new our last expenses $XX debt. and $X our XX%. quarter, a related recorded credit

tax for effective rate first XX.X%. Our was the quarter

Excluding of impact The option exercises stock the in the payments QX year, tax increase rate year's the to adjusted our relative XX.X%. on level last of tax rate last primarily to of our business pretax over was onetime employee effective loss tax cross-border benefit due XXXX in excess income. was

unrestricted and the We sheet. undrawn we facility. on availability had also securitization balance quarter on our we Now our revolver. of with cash, $X.X outstanding billion facilities million $X turning $XXX credit and million In borrowed $XXX of the billion our total, on to approximately had ended

fall normal As our less X.XXx basis XX, plus at again of of XX.X to adjusted X-year quarter, months the first our that as floor, X EBITDA, into Recall agreement. improve. securitization than when markets at XXX leverage accordance after March with credit our our conditions basis point points last calculated refi. end our a expired note we ratio with X-year refinanced facility LIBOR a trailing so last when We in XX-month unfavorable, the was were expecting term credit refinance entered

of pay authorization. We LIBOR a upsizing rate has maintaining years at facility, a term our off repurchased XXX revolver, basis existing improve our points. level X points our actions. better, years for just LIBOR. note, acquisition position down approximately average We've XX so B B approximately our approximately $X.XX we given quarter Term effective current future funded share, and with of of of all-in basis plus XXX,XXX of We used X capacity duration the rate $XXX to securitization Term LIBOR for credit billion a and refinance it X, under for million in also of a current basis the proceeds and to AFEX liquidity shares pay new during XXX remaining million the is of completed an the have Our $XXX our repurchase floor plus capital at per new price $XXX points the the

Now some on thoughts me share outlook. let our

as by full our We year of lockdowns. being are airline $X.X guidance improvements associated and $X.X places and lodging in billion offset They're and incremental between flare-ups as revenue maintaining like billion some domestic other virus Europe. Brazil businesses are such experiencing

the impact half. acceleration year. little half into back Within for account of there full As recovery an for calendar during revenue about assumes QX to X in last assumed our explained we QX the that very X points our year and of recover softness percentage this a growth guidance second revenue the that we X/X QX, modest And would amount about is XXXX. then quarter, expectation, recovery for of exit

are seeing our takes businesses, overall puts remains we intact. some between While outlook and

our our release You and updated full so here. can won't supplement, see assumptions our both earnings guidance reiterate press in them I and

We are to to our net expectations. results our our of per guidance raising midpoint income diluted to the first compared adjusted reflect $X.XX quarter share $XX.XX

in should year be our adjusted $X.XX initiatives ahead, to build the XXXX gaining share. share recovery diluted momentum. with growth net are the per QX new Looking we to income expecting $X COVID per Volumes the of range and throughout

that more slightly be open questions. close. our will of approvals of at hoped, longer regulators benefit we'll for various line but as will second we'll said, of for With the than the the by what with do upside from is need end we hit had deal the in-year all the time so that February. less nearing in quarter is we delay, we ground to believe the the But speed operator, the full taking we than the globally. AFEX, we the integration once refine As finish we're it Because expected plans, closing still up we've had close the running

from And question Instructions]. Ramsey Barclays. with first our [Operator El-Assal is

strategy changes was would Maybe be and a all? of sort on of with wondering if comment with unifying the that it kind of could and tech little efforts you initiative. underneath go-to Is detail sales us there more -- product, the on branding go-to-market sort of provide you also more I with exercise? of kind Or integration could just a that Corpay the and organizational if is your progress great. Roger your this

middle It's going the mostly Roger unify also SMB it's to assets, to the we're Ron. rebrand Ramsey, but market pay corporate trying Corpay.

to from brand. have basically X we'll small So middle market,

I the even the in level. enterprise versus starting to the ask the right. recovery across wanted called Are you've to business customers past. that recovery a out know SMB at is I see that's driving of of recovery? All also are some that still it pace really about Okay. you large the the more something evolve or the

great it even. which question. the We're helpful. The recovery group, seeing obviously SMB a answer is becoming among is That's more is now more

So are improving a our bit our recovery. faster revenues than volume

So it's news. good

Starting right. out. to smooth All

is next from Citigroup. Christiansen Pete question from Our

is UCX we this with think the end? timing here back the the how there sense in of the Is follow-up would Corpay? whole execution lines strategy Ramsey's be Just of provide What's push should my go-to-market along there a was this about Corpay? on the a payments a us breakdown corporate sales right bit in sales. you go-to-market wondering the push on launching now, segment. And to Nice ground guess, ear on if new I with I of ahead the could the of then question helpful. main is, with aligned

Yes.

kind the the first terms question, the part segments. the of of answer all the yes, sales, of is In

ahead payments corporate called the prior I businesses year, the was out so think business. were card the I of fuel

really virtually because Brazil So I'd outlook say, had except, a was than bit of strength the everywhere, softer Brazil. situation. mostly COVID we

sales super Yes. exception, that So with terrific. really, were the

be per the point. be who question, products, yes. may got showcase It being se, of but at the things helps the the funnel. So I and top mentioned earlier, a broader helps cross-sell top lot at are promote Corpay is of your unifying we all the ability terms not products, cycle there'll able it's line to of moment? prospective also again, that of think of of in then a able the in again, the it. clients funnel, prospects it one the answer we've the product to on at which to benefits as in to both only being of engaging facilitate On I earlier once knows, mean, with UI our ways, And which that cross-sell to because the a would client it interesting helps

then market in comment the again, and we're to -- same SMB I mentioned middle down brand land and kind So market. the that earlier of use going is the

we So we to this whoever will out, as hope, look, it thing is it. seamless looking put at pretty

is Research. Suchoski with question next from Autonomous Ken Our

to ability kind economics wanted in segment. rates heard sense so just that ask can brand the operating strong you segment corporate go to we've as you in customers the that unit might history that just payments not your well. corporate have make churn talk guess are SMB unless of about there, higher channel and about I because I payment the direct to

Or opportunity cross-sell into you a curious really base? is if the just talk existing I'm there. play about So could this the

think, of front with I'd take good is actually back It's hundreds say the that a creative in up it in product clients, and both get product to again. being Europe, of of question. ways, both. our able some that bill Ken, about pay to existing super and to it's here excited thousands come accounts. a We're we've Yes. we Ron

one, in that's point new And lots clearly, to go of is, getting has out lot monetize through terms accounts of to with be merchant But now And So the one. a XX% putting we of then in back virtual cards. to card smaller network able other pay fuel your become, for of yes, have corporate don't our the we'll directly of via example, assets payments sales. think second that some prospects. our channel. We're digital SMB the I it, in to end

you money, attractive still to So that we the can if the of on a proposals, bunch go out if you we with out prospective make pretty will, will, back accounts and think end.

both clients go to to ones. we'll and existing So ways, out both prospective

I helpful. as just that's guess follow-up. a And Okay, maybe quick really

put the there I into think expenses what's mentioned in T&E now some I to quarter. the some that that was those you lower sales mean, expense back? the bouncing are P&L of expectation back

balance is revenue. I'd that say investment Ken, Yes, expenses with we with always, our Charles. is this as What

it, of So be on so through, will as as support be growth. we'll to continue expense we then does reopening here, to be volume that to of and We'll fairly soon back. and mostly that recover, some will the perform some And flow grow, start the travel processing. sales all side and adding throughput there that of expense

Our from Susquehanna Financial Group. with John next question is Coffey

like that seemed factor see which political-driven the short lot like guess, actually mentioned payments on QX. corporate would guess last When thought fourth have bit, of looks a it's thing you little was the QX, onetime of payments. X I sequential revenues there one. I have have would payments? in your bit a revenues was this the you growth really fifth of would decline in like I Is drove spend My, sequential And call probably elevated in but a had that growth would I maybe I quarter, you you it say there is think bit corporate in wondering, or and seen a any quarter, a going question a QX's I corporate into really in a there

good you really from AP. Ron. short That's answer. have We is It's Yes the said a political. spike in the full Everything did right. this was Yes. nice QX John, question. it's super a

kind about if If company just AP AP automation, of you X full bought payments. does called we you a years recall, ago will, outsourcing, that Nvoicepay

short answer. back business. more going We've, this business, sell that XXXX, and is the doubled revenue the the that business. 'XX in that baseline we've XX% so to to I And of going gangbusters like or think of it's XX% a than in spend base got the I And of plan think just year

So sell $XX that million plan a million. to $XX We've over million. $XX picking business got was or

against So particular of basically sales line. we've people product got that more our energy and

delta. what's creating the that's So

Okay. by Great. of there as far as Nvoicepay, way, of cadence said is the year? think good that go, And payments corporate being throughout with to the revenues way a about the

corporate for pay? Specifically

Yes.

Yes.

business, So the to also we're looking mean, that full quarter. each AP comments sequentially year-over-year. I'd normally, in just Ron's also which The add are it's I growth but If too at we then XX% good. give that look the I'd up say going out wouldn't sales were I X XX% Yes. up quite sequential there circa -- sales specific second. at

next Koning Our David is Baird. from question with

a are of question, I we think to segment I'm the guess, just back wondering, last I know think seasonality? I think, or benefited to basis, guess, often first $XX guess kind X% historically, my thing I on itself, one so. spreads about would normal on I fuel about up year-over-year million, sequentially, it the be QX. I

two again So impact, and sequentially, that of then are thinking up perspective, X% we just I putting those maybe the right? spread normally guess, in things

X% we question? COVID?" the of kind you you question. that "Hey, that grower -- think asking, if sure Ron. out normalized David, COVID I as spreads I'm It's Is we I'm the this Are is do time a frame, not and the kick got fuel card exit business not

more sequentially. asking just just actually I'm Yes.

the back think separately, take, pattern seasonal now in of used I And X% grow, kind a QX? kind about typical little we sequentially seasonal just or sequentially, just you to are QX, patterns. And in impact. normal more then to give thinking spread of

Yes.

would vis-Ã part, patterns, QX stuff the even busier and through there's your holiday. -vis here and first time U.S. in QX, certainly more seasonal obviously, to work point. saw the the say, I we in days similar COVID, very On Historically, and

the stuff is old. it So of guidance in yes, reflected same you to just yes, kind our would be the old, and And way answer said. that seasonality it's same

spreads, In of to do terms Chuck, want one? take you that

spreads going say fuel is maybe sequentially of they're kind way to I'd out. be XXXX of as leveling slightly QX flat, record year-over-year, spreads. your To view of QX Yes, our into are going prices improved point, have relatively down.

and In that I'd planned in sequential COVID what we forecast. do have terms some say fuel, of is within the our seasonality remind revenue I'd you recovery

should terms QX. again, get a in still early, signs that than that, still But half But but of sequential growth plan April. of we're normal early back mentioned, little as bit a higher So assuming have focused we back, in for business. that lot seeing that in And we comes is early. recovery it's some Ron

Dave, Yes. what just said. X to jump last Chuck thing on

Your Obviously, the the at you upticking throughout fuel generally looked they obviously QX, if comment is were right. of pressures quarter, bit. which in kind prices spreads a

quarter spreads if So true, to as bit we overall of stabilized because were have fuel Chuck's exiting the quarter we'll and point. prices have a is obviously, you better said we've seen normalized, April, kind what

right we'd stay if be the full year. expect this of spreads same, you're QX. But the would of balance quarter the that fuel then prices So than stay kind the better to normalized

out, saw the I million a more for the in million might future the per $X statement just The provisions. called while? back you credit range And quick of the flow it pretty cash million Should you. follow-up. quarter get low provisions $XX Got to to one stay type or $XX we in

Yes.

a had assets company. then of lower had Chuck of policies lower And that's then carry run than planned amount lower. I'd a will protective we and pick than and of term, couple losses. we probably this of say next, two, higher in place a due function of of sales the lot bit continue right, XXXX, the unfortunately, a to start kind probably One, to be XXXX And me and were can short in the normal they in up. in the quarter, credit things. it maybe the Let that

you have a have less existing, lower you'll mix So new to losses. when of credit

because So way more, get you couple normalized roll as anticipate better. sales those we've we opened if forward, I a of things we levels would will, make think our think credit are bit you it David, again, and back probably I up we now, patches, the But said. will as to

little as a the maybe So of back bit then term year. normalizing short the kind you and head to of

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

I your well ask some guess, M&A raising capital activity any appetite some Ron, the seen as private going acquisitions in on up, update, pick side. want and definitely to I did And peers your there. we've of and on about

your where's there? at So head

to to someone the people. I'd out. principals a kind met I actually say, voice. in-person We telling call M&A hear life, real in meetings. real-life actually like real earlier probably you good that couple ago. that's Tien-Tsin, were Yes. a nice your call the today, gone of We weeks to of so back actually Better, see peers did we've

So of we yes, I that AFEX this is close did the thing in do we thing of a pipeline reasons that we're I refi upsize upon have have of the the a here we we obviously, deals. And mean, in Like few things a looking mentioned, closed like. and weeks. one to couple other

the of that liquidity. in was lift that so for And kind basis

which but we we got like. tend me. to deals, don't better I mean, like. in normal, back I say we've got We've things it's feels it really So to some categories to accretive the

of really I in us. some -- a back feeling in So with yes, we're place, a feel if in transactions of will, comfortable, you we're better like the front

quick No, Good. the on think follow-up. just as to I Okay. that's -- And hear. encouraging a

structural? level. in the curious, on observations I'm down the guys still client speed when recovery? they'll diversified, your on know because how like cyclical somewhat I get that question, I you back on client of much to get of side, any this X% sort maybe but versus is that base mentioned think is up same-store was I there hovering

super a It's good Yes. question.

So comments, on that. back two Tien-Tsin,

one, of seeing my comment, we I have is first think volume. opening luxury which mentioned the I The in April

So lines I'd actually say we're literally the of already of you is the first thaw, if in same-store seeing so some that recovery in thing some in April. stuff, will, some the

we of one, again. thawing kind in super studied And expectation of to and and quarter. narrow the right, that, clients X% will is my less our this off your here see is just to And so then the it going set flat that to it's of is expectation line be QX second here death -- a that of point, move

at super when or consolidated run got that X got it. set and that theater XXX% a cruise the in you've It's companies, in go name impacted, companies, distribution, overall are of call narrow you just it, it, we've decile you are accounts of in So look businesses. X% that we and clients softness the, hurt -- for line movie super that there's clients

into And guidance, that sense, impacted is down -- which rebound back we're that second that aren't coming here a of And bit start some that in of built again, significantly those some the will so half. still our already kind are is our seeing, my in to April.

is with next KBW. from Sanjay Our question Sakhrani

of U.S., happening, that the seeing you're behind. mentioned especially as you of Ron, ahead to the that are anything reopenings U.K. that know, pre-pandemic trends sort back? I come expectation, out on you, But Brazil they relative stands to

as call in you X the out than it's pocketed, businesses other We're U.K., We're Nothing in there. I do over but Russia. broader Zealand. what have We're countries. Australia, did more say. continent I'd in we New countries know, on X or just the in incredibly is guess, I

Czech X And thawing me, across the and first is second so fascinating the celebrating. are -- backwards. how and is Russia I the X, like Zealand those call there. COVID, the New don't be would huge rid kind see in they Australia is if The X, just booming happening softness is thing. is We And recovery know They'd out, is again. the rebounds The U.K., here going to quarter. thing had of the countries different the

first kind focused of made the which incredibly, case, consolidated one incredibly really in to comment causing is set Tien-Tsin, it's is right, be it's that the place. our second then number, the of by So And the just are narrowly negative. number clients to on is overall very I pocketed again very, comment the a small

thing, others, the worse probably think And so like would they we didn't raise And would we're anticipate year are coming the those into we did that super X restrictions see. Brazil I things the and surprised get and that thing and that, the mention, I stuff. by that

that surprise the really one, the is I'd thing to So mostly that's one us. say,

on maybe on question and follow then answers the your to Tien-Tsin's just M&A. And up Okay.

that how of the And eat of significant amount much powder contemplating talked have. guess, also You deals would do that liquidity up? or I you you're dry about powder these think dry long if sort the -- consider what I much buyback inorganic you how powder envision stepping this mean, having do you opportunities like the dry of up around? would you felt there? weren't you

situation, I $XXX X a we million. Chuck, Obviously, that this we million, what, have And do quite announced I particular as transactions. mean, few, $XXX are deals at some mentioned, AFEX call it, late. Yes. publicly have we thing the

what And so to us facility things of combination upsize the X the now. basically is caused those

we don't our So that's short-term it see. are I term, we obviously the think the we thing of that that that bumpy. really But liquidity think about Deals pipeline kind way. to situation try for longer prepare

Sometimes a a spend money in year. you of lot

have ratio Sometimes opportunities we the is we our that based where don't for on we'd and and spend cash enormous leverage liquidity a lot, generate.

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X I'm quick And sorry, I just follow-up. guess -- X

deals are getting looking verticals? Just are bolt-on that they pretty the types of into different at, you're much they or

categories We've because looking got in-category, those sized thing them X got of kind billion we're we middle accretive. that of they're articulate X midsized both. And kind bolt-ons. X kind deal. in like at of X we've that and so super the guys looking we particular actually use of they're call right $X.X We're at that's or you adjacent, your kind inside in the not an fit of transactions word, that a deals, or of couple We to X to

very of a things in set it's front us. interesting So of

is with question Mihalos and from Georgios next Our Cowen Company.

George. for is This on Philip

So think that does company, at-home option. about I just the your the you Mina. new give EV of U.K. the And call wondering, that talked you I you beginning investment at in talked the subscription was to about in you in card comparable business? giving more in ability fuel the economics be is around EV confidence Or compete vehicles will future? what your the more to future confidence the the current around EV

Philip. does, It's a it question. Yes, good

So And answer headline actual we real real the software we to a solution implementing. have we're actually is it have client. your because And that it point, does. does

this about you thing a reimburse amounts company U.K. us get your are you equalize, you've mixed and to and paying that vehicles we're to thing if gone help fact so economics of as the some And it, and of want you have the to help to this paid subscription talked does to point, run how going clients for converts. we real EV meaningful And fleet, added in that. measure XX the

the a ever kind when to well twist all is interesting the of link you have so base In obviously, solution mobile love data this try EV I because XX. flushing our EV a anyone we phone, it day at something mobile public the position the time, vehicles kind card already in an things, all the really a would our advantage, for car on vehicles value. that they out a company to Like deal incumbency it at XX without made home? why the And it's change want actually some call old-fashioned doesn't to who programs transition addition, adds hard as obviously guy as the as and creates in here, fuel the because installed lot with chances recharging on places guy and work of go sell all I the during and right, say of new of has the can't a advantage really or

itself, economic better better model So feeling as I'd and we're thing say, the has manifested of the this about future.

about an With a thinking bandied Is Great. on in being you any on at not just growth construction Okay. exposure Washington, your great do impacting And something customers. then 'XX thoughts yet? follow-up. build federal help have customers? to know you have I that 'XX, pretty That's a you're infrastructure that might the color. around how decent initial contemplated or level that

bailout, to knows, the goes? that saw to our was years your point, found it yes where pay who your I spades their the mean, in to last it a is our able I mean, this in of clients credit scared collection we question. bill we Yes. ever. lot But and and best got of ability be to out invoices, of and answer one

your various stimulus our both its of point, call obviously, find part in is business, construction. here back. does So money to forms Europe, it, a way circa And XX% of large in

it busier actually guess, make obviously to has the has that clients of to some results revenue stimulus and have that extent bill, point. in the help the versus, existing to we more that in are goes things It other the to I us. the So to to us, your

would for be happy year, going So sure. yes, it next into

is question Jefferies. Trevor next with Our from Williams

back see getting so the to quarter step-up it's On first the good XXXX. new in sales, above

even be be sales the the new to of bulk being about mean, to if you revenue? there's about see throughout thinking some a year be, more there start year. numbers there leading of embedded should layer So if that thinking continue could if those And benefit in thinking as any or you Just you if quickly see especially guide, onto just XXXX this and if could could some in indicator. the to impact we how I whether ramp fuel, sales

it's Yes. it's I'd Trevor, thing. second mostly say, the that Ron,

will of rate we've when account. the we call converts, new it your company So of a have. the And to category in-year a revenue, sales by products we experience recognition right, start call, and what of that by to translation roll got the a in lot into point, conversion tremendous amount bookings or varies of new the

XX%. for example, cards, So in fuel probably it's

million sold $XX might in you'd you get Brazil, sold get or million. get $XXX million you you might $XX you market, million, corporate $XX million. But If million, you if if pay in-year. sold middle $XX Or the $XXX

our generally, and vary did would I math, the sales at what plan is, rates what cooked and we're by But and have. plan. we the guidance say above we 'XX conversion tremendously we product good the So that's plan so that These anticipating But category. clearly, built into good the were all sales. guidance

we'll it's would And full like was up help go As into over XX% pretty be be said, is low, the for over so double make which plan, next but XX%, this what the year. quarter, if hopefully, because probably I sales the right? it biggest we up QX you

categories those pours of that 'XX. lots where like corporate revenue pay got into You've

carefully really try the an revenue. listen to numbers, people should sales 'XX So which did are I call really to out. leading of early They indicator

to higher they April quarter-to-date sounds helpful, really Ron, uptick how even I for And could than just to then, get really did that's or to exited see of of 'XX April is The any either it or things QX any are you the April, in might any Okay. the relative exited segments, some are we slide kind a you curious No, meaningful of sequential QX but QX, guys of you're some I'm trending way in if quarter-to-date trending acceleration where them in relative if just at give QX. like. in mentioned mean, deck in sense helpful. seeing us XXXX?

question. Yes. That's another really good

mentioned The again, to hot of the the areas where selectively, we're super period back volumes And off I But growth. is, even are press. what it's seeing you will. the if has to base see data got So early. XXXX, starting we par, come against sequentially,

And Russia, like April Central not are we are into those, X the Europe our the is of kind in of that's Australia, were call the X Europe, Central in still they again, of business, fuel X one, higher just U.K., COVID break volumes to example, where markets, 'XX. in which restrictions card out in and So for the international April place. than

double. I So that's way we're in The its the baseline I virtual The corporate pay. see of areas cross-border April. AP, full more card than think, business up. business same like ahead mentioned seeing is from We is

that April, ones Europe, T&E of back, card, it's which I of businesses period. There's now, requires airline So like the like travel. the are but 'XX like Like business a to lodging handful their stubborn the that in a soft coming prior are bought, Central ahead more that us lot baseline. still again, we mentioned COVID-impacted against of it's people the

or X a areas that that come and are then handful areas there's stubborn back. didn't X pretty So the seeing we're XX that

see to profit QX said, and, again our revenue significant I recovery pretty a more is half. and in change going dollars plan quarter, a as into So then And importantly, the same-store we're view in QX. QX, this which we will pour second

Our from Bob Blair. is question with next Napoli William

the on that thoughts aggressively of the where private margins with growth, or investing and investing and you at question and and that you've payments margins a the and margins you a thoughts aggressively growth is the considered looking TAM of more that would given -- aggressive Ron, road to at accelerate something the have corporate generating in margins, number expense you're of very consider? today. strong have public down on business term. are companies long high-growth balancing And your Do

will, business invest our that to kind you plans the differentially you to we're Board to some strange couple comments consolidated I that more Yes. on of is, in that competing give others It's our XX%, this build business had the Ron. company. We time actually -- to for a Bob, it's week covered to if question. than of target particular closer in. subject, XX% And the of last terrific in tried try actually we meeting this top I'd and one, versus think more

it to So incremental conclusion that on our plans, our base depends I that's think point second, plan, in overall on meeting got then profit inherent And X the Board faster investment. of this coming grow already. the is the to that investment there's out we

got buy if execute. we got whatever, return." to some side there's we to investment be the to profile, make if But earnings a a that's slow can look, return we're back with, make great it's "Hey, can again, we we'll bit, an a can in clear return going you attractive So we think be

one money hard I've this to could of make pour the times, XXX reasons funnel might add thing, top of of a did -- people right, digital those So if told the see which be the that lot work good effectively could unification, we is and returns. basis, hire to Corpay of the that's and into we where spend you execution-wise hey, it all money bunch people, a versus we

of So We've capital. got staring us the money, lots in I'd incremental say face now. nothing

year spending in sales. in spending we're $XX million, $XX We're of pay. more last million I of in incremental corporate capital Half think IT. that's above

we the we of kind And it. do the right would got so investment, if is I think answer

much on then business, and -- been business, was the your we That's very that. question lodging too helpful. I wondering a on don't that And has thoughts a on think just really I I attractive return know, touched business.

quarter the it on You've been thoughts drive the longer term What you in over over business sequentially you invest investing because think your then years. there. opportunities are seeing into in your the in margins higher the through that that April? of do business some like And I first to

collar business, think that airline's where literally people again, Yes. then pretty the because into to and we're airline blue a and accommodation right? we're your the cut the super specialized, We're segment, workforce It's off trees in connected systems. drive in point,

show going somewhere that up know the tomorrow. are we to pilots us So of X

It recovering. really those of one a So businesses the most year ago. it's is, answer obviously, was hurt the

back of the of side. the say lot back. in way So I'd half we've gotten we're workforce And probably it already a

COVID X in the it's outperformed fact, In that the area recovery the first quarter.

we of business faster and than a planned. business, back, of back came plan certain we if softness, amount line airline the coming each For you will, actually

on So business. of business. lot. in business. a it's a some margin our to got probably I'm we're right, happens on huge I looking we We've the a sales, sell what in months, think second continue couple have at the And lot half. track, in recovery, the to selling attractive depending the next over It's that highest Like adjacencies

open. We're more do probably keep like people of to it, to your there's So to it. should eyes and point, going their lot a about

Togut final And question is Evercore our ISI. from with David

EPS you And FLEET's expect normalized model? to a of resume acquisition of to organic a plus single of to points basis, post-COVID, low that growth you expect when repurchase, model do XX% reestablish and/or growth driving On to historic high so, if couple growth? do share growth double-digit growth XX% revenue

It's Ron. it's David, a great question.

think XX, to if can either the XX%, which shares. on operating been if if we XX, XX, buy XX, organically earnings XX%, $X repetitive and grow buy I've grow we XX%, been something or of is because use EBITDA, then fast operating capital I can billion you that's the revenues leverage will, of

So we've at Chuck, compounded, years, over we've XX guess, proven, XX%. over David, I

recent the think year here most calendar in 'XX XXXX. reminder out grew 'XX, there until in So calendar XX% COVID business full full and the organically you I and X is, those to for hit others years we year

is mentioned the in the just so make the we're super second deal of making, there pouring point, 'XX. on And the we And the good And certainly rate we're into a be we've recovery so announced quite working it my get part accretive. in setup is will I've and if your couple we that in expectation attractive. and that half be, sales obviously exit be then to in as of will this will that 'XX we -- terms the exit is, again, back rate before,

payments. to think number we set And and say our bank try all in is not sitting businesses, And chasing is and the because get into I we're a just the pain card, SMB last kind well year, space, so fuel business, of say to after then and right, because particularly We're we're diversifying in I'd in that David. we to the 'XX. the chances took it the it up getting thing, new that categories EV and of good points, you in, still I what chase the the twiddling like launching, corporate places

finally woods think optimistic coming here other coming the out up because of for And side, future the sets see -- the can out, kind sit and us. about so here and I We're well we coming we're of more out. it's that freaking think I

then I'd our So chances will after better that. be like and we 'XX say,

We today's have reached the conference. end of

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