Corpay (CPAY) 4 Aug 212021 Q2 Earnings call transcript

Welcome to FLEETCOR Technologies, Inc.

Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. the to turn of Eglseder, now Relations. Investor will conference Jim over Head I you. Thank

begin. may You

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

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

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

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

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

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

my our results, of share on I'll QX with your rest First, perspective along outlook.

our about Second, business, talk our I'll in update including EV, acquisitions. of provide underway developments latest on I'll couple an view newest then on fuel And that card lastly, with business. our a innovative along two

Okay.

me our Let to turn QX results.

million expectations. finally financial for our so XXXX results QX reported came cash AP So very QX We up outstanding the trends past platform XX%. up quarter, quarter in internal revenue exceeded EPS cash are moving and segment, revenue our versus XX% meaningfully of revenue results, outsourcing of XX% XXXX at report the pleased our quite baseline. and QX our QX above Both Organic to growth EPS XX% $XXX good. last that's in pre-pandemic $X.XX, QX full our up The really year.

almost the of to interestingly, And client the sales reached so record we in reporting sectors hardness base our we've Credit all-time since level, an outstanding X% and in many card same-store also sales metric. losses XX%, of XX% QX metric improved Retention, quarter year's XX%, up times fuel all-time XX%, recovering. high Our running and been plus our nearly the XXXX. levels retention, an two at global reached high. against up very business historic last remain good, finishing

of of the view me the rest transition to year. our let Okay,

everyone half. beat, close, driven that I to sequential our the into raising the have remind So, at by we previously today, half second at we billion guidance guided and QX substantial EPS AFEX the running $X.XXX step-up momentum to to a already. we're raising midpoint had pretty $XX.XX. the midpoint for full second to cash revenue, year That's do the want really

start from cash up $X.XX nearly the of As year. guidance a EPS reminder, the

the today, opened outlooked. we year So, at $XX.XX; better than $XX.XX, obviously, so we

things. guidance half a second The implies few

growth revenue second the half and really year XX% ahead run last first, single-digits high will about So, of XXXX the above baseline.

are expecting both So, the to reach we again business profits. highs all-time and revenues in

Our a EPS profit QX rate. nearly annualized guidance cash exit implies EPS $XX

Okay, let recent update me acquisitions. on transition now our to an

a cross-border AFEX, that's to insurance week, the documents reminder, acquire a signed as which definitive lodging we And So June on we then vertical. ALE, deal, closed the last add-on is to Xst. provider

me start add-on capabilities vertical. a to serve set highly specialized brings a and insurance designed our company of just lodging let to with complementary So, whole that the ALE, existing really business

and payroll move well plan So, that to run expense. We've a cross-border we've operations for rate unified one million designed integration. accelerated growth implemented and consolidation run to year. expect and and system. organization we've IT got a an underway We've management plan already also next on That We're $XX AFEX about will of pretty business expense. reduce IT exited interesting our significantly revenue rate profit synergy single

the So, well, so look, expecting together a existing XX% to have cash $X.XX in big the incremental on both range, extensions reasonable classic XXXX upside. synergy businesses opportunities. rich $X.XX very top grow business, pro and and There basis the our deliver forma next in about We both to on deals. EPS are prices. we year wheelhouse so We're paid acquisitions, these of of FLEET know them

So, obviously, transactions. quite we All the are right. enthusiastic about

about Let think continue we business, fuel to a me and future. bit love gears talk which shift which card a we bright has and our now

So and growth business. the new talk greatest, we're improve our about that talk bit I'll to doing of fuel EV, innovation card two prospects the and latest things a and then specifically about

people operate need recharging like refueling no card with I EV last to more reimburse embracing than think. see as to opportunity out in EV. find employees employees we're our mentioned and costs vehicles much way really engines. EV to may And think an putting end I business. reimburse for starting going it combustion an for they are it time, electric you that So to Employers fuel

be as combustion from we've think achieve, exhibits economics earnings measuring engines. similar and our a that We've opportunity to included there'll very EV do We and some economics we in an new couple QX supplement. EV of from got also reimbursing

see attractive we where there's interesting about a a public because You'll cost well. subscription rates, fees pretty in comparisons nutshell, software we significant charging. fuel MDR more is the the And pretty In charging of to then of other XX% we revenue some number revenue and expect there of spend as achieve mix. fossil be the at-home that believe we the augment can fees get of that

US, to build out here ample EV public time transition We recharging giving us commercial charging are slow, the outlooking the to particularly and home. our implement to network be in at

fleets We start things expect be mixed to how out.

in consolidating and So give our clients. data quite an us position our incumbent activity advantage for should

be So we outlooking one we're still think but in can fleets in really All look, to just EV be conclusion, commercial which serve right. different a to attractive. way

and me leave the over in Let fuel we're business. the to couple EV cut of card that innovations working

is digital about has globally selling, new first and digitally. XX% sales to QX in of which particularly reached now coming So us digital our fuel all card

like in our the effort digital at Facebook funnel We've maximize sales of so a last XXX,XXX beginning innovation card bidding websites, selling our visitors leading more used our into We've is touch our form by of sales. the really and improvements over investments UI, transform to to to The obviously capabilities. clients, payment incremental platform. I'd is XX% TV, in about on keyword lots which conversion, advertising, radio, our we're automated redesigned which got fuel of is So broader digital top now. to the driving

fuel our additional then So our same they'd vendors platform clients with paying UI, newest platform. us that we're to card option the combining pay the bill cloud-based software with on fuel card bill that pay go the of so SMB have

card the into aimed So, again the transformation bill this can number pay fuel to platform we of really a at payments active add of the and our idea clients corporate is accelerating business. business beginning

So, we'll updated go. you as there keep we

So, for thoughts look, in closing, you. three

with calls in record our And So, highs profits. revenue we're and sales pleased new half retention all-time again XXXX, record particularly one, the QX, and for outlook levels. on again, second again,

we fuel by up reimbursing services and the an our opportunity although payment recharging. to at-home got some sales and business, setup. platform. the incremental and the drive are card by do launching for at plan and funnel. digital visitors opportunity think have We cross-sell UI again, quite can encouraged a a prospects early, we digital again the providing business. We stepping our keep sales. XXXX And particularly measuring We've by to into new we're top adoption a EV fuel card on lastly, Second, think to of bright broader existing monetize fuel advertising And the our incremental bill pay we're clients turning

rate half off second for Our That $X incremental into in to will second full guidance for incremental interest cash $X hedges flow annualized, the January. of sales range acquisitions, or up about $XX forecasting which calls EPS the contribute $X.XX cash record of And again, nearly EPS. $X.XX hoping newest the year. next cash our approximately in We'll roll year, for revenue lastly, billion to two EPS. $X.XX will in in free half

taken like a our look, XXXX setup. together about lot So, to

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

the very delighted you Ron. quarter. I'm a Thanks to of good with share results

points increased as to million; $XXX net driven up we we sales, COVID. recovery. Organic XX% same-store income diluted by net XX revenue to improved the per XX% GAAP XX% XXXX, year-over-year reported up worst levels, income of sales and sequentially income record revenue increased XX% $XXX a retention to basis, XX% per share up quarter, diluted on the Adjusted $X.XX. growth to up million and of $X.XX net for or of QX million, share For XX%; $XXX lapped ANI GAAP to finally strong and ANI,

at quarter, Corporate categories. full payments by in Looking second our led was across up XX% AP the solutions. organic growth the

a we with and it's to sales with We within And and This how walk-around T&E versus AP was it's AP is began travel combined XX% levels. it's plastic, virtual misnomer, a as card depending is wants are we've what good Full T&E-related this just as and a or multipurpose revenue so on either a sell, spending package significantly focus, activity a more success description rebounding rebounded, bit has leading really off. paying while our reoriented full resume. clearly historical offering. as very year-over-year, card purchasing still customer prefer standalone to force below is that to T&E it. our be up use a seeing categories complete business the selling card used card can of

of showed fueling see light commuters further and subsides that much So affecting there. These was of card it activity normal compared lockdowns our in And strong shortage food. by fleet these folks in We owned This up reopen areas quarter we white-collar many hotels up when growth last digital one the in cruise signed of demonstrating tag X% room half year-to-date recoveries results to with and plans, all so year-over-year this place Both We to the our urban approximately month commercial construction aren't is AFEX for tags discussed still COVID large do more XX%. lesser year, to for softness of virtual finally, driving quarter. for there's and the value affected with purchases in Tolls offices is record the to periods. broadly results before, retention but trade fast offerings our Cross-border return do beyond and for performance. still was such hard organically helping with both pro was up record include fuel if sold impressive parking, trucking was and timing as in the on recoverable, of airlines, driven was attractiveness international opportunities are of once which roads. allow by revenue we've labor QX sales, levels. forma of one the softness further for which predict. even much tolls, believe clearly last improvement up the is so industries are revenue to softness XX%. up year like operators, performance first and consumer trends sales Fuel extent. can XX% proposition restaurants, drive And a customer and

will fuel ease half. non-toll combination and the more activity XX% to add growth labor than up market the lodging tag back in sales plans leveled with tag network as up this normalizes. historical as second back remains up expected domestic was but has beyond are XX%, consumer during some urban the XX% improvement still first come should the produce acceptance travel with we lodging XX%. customers air recovers. labor travel airline increases. international volume workforce total feel expansion added by back another come also recovered to workforce The lodging over International off faster lockdowns below shortage, We our being volume as The XX% as was pace network Airline during of as stations norms. of should but held Lodging half time and air

So here. of sizable was recovery still retailer in continued the despite we online XX% from see sales potential year-over-year, the embrace lodging, growth Gift channel. organic upside benefiting

trend to online. this are with using both expect our clients cards We as platform digital to experiencing gift continue proprietary we success and sell physical

rewards, also we improvement. BXB cards where fact, platform double to are companies wallet services use in number parties to and mobile by gift to year-end. utilizing of employee sell and the the clients In contributing this for Momentum incentives expect as sales, third

statement. income the down further Looking

to of XX% on higher In expenses $XX.X business and sales lower in due due also investments grow. some and or of although currency on B the million bad as four and efforts charge The and of activity, new improve effect our last increased a points. incurred two debt higher Term and Our XX% million operating volumes expense bad that top-of-funnel X% was up portion have balance a points performance to by strong, the recovering were our totaling debt. $XXX prices, Interest on LIBOR offset refinance, unhedged to was higher increase impact platform non-recurring sales control. made the be to $X.X margins such expense translation integration-related with million, levels as solid and severance higher for lower new do digital borrowings due partially our $X the our margins, associated of from to note, acquisitions. continues primarily rates expect quarter, our expenses incremental AFEX, migration Credit debt basis revolver XX% revenue. we marketing million to to to We've improved Operating debt normalize costs. expenses year international fuel and on

in Our for to rate million the a $X.X half. similar rate exercises year, due our In our stock given effective a deferred tax change to guidance, we of in the the an year and the was to tax rate last adjustment and UK. position are tax lower increasing our assumed tax this expected XX.X%, option level reflects second for on excess adjustment second benefits quarter

the to $X.X with sheet. of We billion balance cash. quarter turning ended the unrestricted Now,

had We and on our facilities availability also approximately $X.X outstanding $X.X had credit facility. billion of our undrawn billion our on billion borrowed revolver. In $X securitization total, we on

of which repurchase at Board an billion buyback share billion million June ratio calculated XX-month as accordance approximately XXX,XXX quarter of for repurchased X.XX price adjusted with of was As EBITDA $X.X times The agreement. per average share XXth, the our $XXX $X during We share. our trailing July our leverage capacity. credit increased in authorization shares on XX, $XXX gives by us now

closing, and/or the Now, and still additional we pending have even buybacks. deal, low ample recent and deals for liquidity including buybacks, ALE leverage the the AFEX

Our which buying pursue of quickly ANI high business, this generated opportunities themselves. margin, they us replenishes quarter present cash capital, flow $XXX million to as allowing attractive high

let share outlook. thoughts some Now, our me on

midpoint. are raising million and the is revenue year full $XXX up at which $X.XX to We billion, our guidance billion between $X.XX over

the and to $XX as We or in contributor in of midpoint. environment per better share faster we is are a income the the a big year. half AFEX diluted improved addition than that net at $XX.XX our first to guidance also macro between raising volumes adjusted $XX.XX expected is

COVID year. currently second continue half sales volume continue trends strong recovery through to the encouraged retention and be to of We expect the by and our

of adjust outlook impact mindful being and potential our necessary. we'll operations from Delta are variant, the and We as the

are net QX We diluted range in $X.XX. of $X.XX adjusted expecting XXXX per the to be income share to

persevered the the guidance actually update updated full our here. would assumptions not that I closing, said, pandemic, the our we strong reiterate us With half does for growth my In our the and FLEETCOR this that beyond. see impact company have press can won't thank quarter We'll transaction. include them positioned for X,XXX-plus release, for the operator, questions. when guidance of You up we'll open second a return that close who I'd helped just and that I to world, announced. in acquisition our it through around colleagues note we ALE so like to and

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

as to the of took Ron, guidance. quarter, -- sort are you expectation last sort surprised didn't I'm you what but curious terms you to relative know continue, at mentioned in strength. Understandably, rebound guidance anticipating a whole looked up second the second guys lot. go up And your the Charles, just in the I of quarter you of half you guys

just trying could I'm through us reconcile So Thanks. walk that. just to of that, if you all

be the having patient are technical We while difficulties. fix we Please difficulties.

Just one moment, please.

Okay.

proceed. may You

Ron. I its Sanjay, you hear or me can don't know, if not. now

hear can I now. you

Great. Great. Okay.

was cut of shown I were baseline. what from where year So back, the So think out right? surprising a I sales, kind saying, where the climb here, is previously we'd no against I we right, ago

right? a I to coming we basically positive I'd the And then et number most business, second I'd really the Should really the guidance? cetera. so thing. a plan How record guess, And year, can ratability. into say we say and this almost that's surprising, the post were Obviously, just we this is across probably thing, board, give little most cautious, well

basically, as than -- half, better I'm we that And so along we're build. of say that surprised or this both our the kind I'd with things plan tracking that well the outlook quarter that first and are

be So of me. things would the couple those from

about think or conservatism putting sort isn't that outpacing in Is second we necessarily -- or sorry, guys expectations? expecting the because some more guess, your just strength something aren't strength of else? if that we're I And I'm that you -- half,

a Yes. That's question. good

I'd So couple of a say things.

ago. was lot, we up the I again, have we number the XX a more So I the up taken already printed from half Sanjay, before second think But days for sequential QX. number importantly, think

our XX full think, I $XXX had that million think from our year ago number up, revenue I I commented days QX. QX

So that second here. a would the of second good quarter half my outlooking be versus $X making off we're basically $X point that in

So, improving. had sequentially thing basically we already to it's but keep still forecasted the up,

share guys Got opportunities know there's or do it, reflection always -- I M&A got pipeline. this pipeline up the took And the to question, final of question, you Thanks. but Is just it. M&A just both? that my ask I a buyback.

Yes.

So, the a pipeline. I we think always I said call, start in with last

We have yes, attractive take do. caused what us things up our thing the in us. we And liquidity. front of and to That's refi

it's got that I record, before like three we're got going or two to that me close We've but and our kind three not two things know broken a we over. of decide on pipeline may is yes, So, a things in sheet. front of bit in is another the year or we've do

we've some things. -- always, liquidity have I billion We're I don't $X -- what, then as it quarter. got of So, to And $X.X in we've generating, think circa but me, enough we've interesting billion. front million got a second, $XXX

$XXX that's million So, another half. second the in

kind ratio, we've once, for in I mid-twos. think, of is Leverage got, So, the really liquidity. plenty

together, able we virtually want. put when So, all anything we pretty I you it feel do, to Sanjay, think

Thank Perfect. you.

is with next Stanley. Our James question proceed. Morgan from Faucette Please

the on to want capital in little much [Technical kind the bit Difficulty] Thank thing. commentary you appreciate of that and color and dig and allocation I the on very a

line. his lost have We

So, move he until we'll redials in. on just

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

you me hope I hear thanks. okay. Hey can

around on M&A. think building Sanjay's maybe I question

-- some deals classic be you guys seeing here perhaps different. size just I'm of or and Just smaller? terms similar the what get these of two and better Or Ron, as look accretion? the things are of called you're in trying closed to the bigger you to what it, sense a similar deals should might

the Tien-Tsin, see guy we yank if the you like don't we can questions, just off.

we're-- So,

strategy, strategy. great a great A

question. Thanks for your

And of at couple of kind got is me, I do, a are So, similar the think a where then I'd more We've They're of difference got more we've to the in and what things say couple say of ALE. we and thing got prices of AFEX are front of we've looking flavors. two we that that like they're the I'd kind adjacent. accretive. the

out I for payments. an pay, and a idea example, called ago the between going client this the up think our year like chain kind kind I corporate as ERP value AP more of this in of automation, of do

that a we've couple things So, of close but not that, are the categories like square pretty net got in them. to

to -- fun about half? new it And I that How nice said in mean do than see to that just of you would feel you even second sort Okay. order business? it stepping Good. of was pent-up you demand, fun then surprise. be Do the a a or normal there's sales like the some everyone on is. front, That's more more hope what catch-up? back getting up let's see maybe

that's Yes. also I a question. good mean

nice absolute XX T So yes, half. in we in sales the to did Box of the our the year forecasts three are kind through halfway and numbers review always [ph] review back higher

to taken up in around but to and all XXX 'Hey, we don't times, I've more? don't that good more have done. this in -- I've try hopeful the hard just that there's more forecast more tried invest stuff?' So always 'Hey, and And the kind practically, I Why and most said We call Ron, marketing, have turnover. you people opening did can And it's but hire are returns. didn't I've XX% I that, to sell question, these chitchat just waste in spend that you sales And want I'd digital the of a of you me I money.' want more this against baseline. out, say like just on it XXXX know lot thing. -- comment up down to double scripts, we I for even it's

a different in because it's the can right crank digital this more visitors. with of kind time, turn at bit you the So a generating way Tien-Tsin, and

had baseline and quarters. that more in did in QX the generated we said than I call, we the XX% On trailing visitors

light being I'd say of there's more. to digital of up sales step us even place maybe a really one able the ray the there that's So

glad guys. Okay. I'm for Thanks found the you that. update

Good to to talk you.

with from proceed. is question Christiansen Citigroup. next Please Our Peter

good evening, I year, accounts hard-hit really was Good in year-end. just ahead Earlier by you're the of up that expectations there's roughly you'd update evening. that of you guys, outperformance Nice think this thinking there. thinking running was Clearly, wondering there schedule. make about I nice. two-thirds on on decisioning assumption that just you line? the versus there? your that how thinking the you to reinvesting us last And then could if response, piggybacking How so far, incremental are about the dropping are bottom Thank trends you.

is Peter, this Hey, Charles.

the recovery, the but has domestic of come the spend came softness the other areas a tracked slower. associated lodging in it's little our roaring say bit basically on few So back a that bit and to it. I'd airline, faster T&E with were as plan, that's impact little A travel in differently

thought some operators where is industries it we and bag. there's quite mixed The we plan. lodging further recovered in half. forward believe so out is called into tracking of So would, good the such upside still that moving haven't still or the second terms they and do the of news cruise hotels We

that different. we less a but it optimistic in little still just to So we'll where or more come may planned, bit get

Ron. it's Pete, Hey,

digital results, but from some Let IT. spoke the incremental of the both in your along jump that late in QX I with Chuck's B. back of incremental investments actually our answer, part not the just kind of, maybe spent obvious Yes me we on money comment, is quarter

ahead the think what answer places would here, see that tracking the to think you returns got think we we we're more of we're extent get committing I where can We've spend now. some us is money. I So to

you. Thank gentlemen. Thank great. That’s you,

Morgan James is next Please Faucette with from Our Stanley. question proceed.

I'm it there are answered I not kind was happened now How the and bit strength -- I could but now of And if you right wondering generally? particular especially to It a you I you Thanks apologize just thank that source my was the technically a already what -- with is respect least of corporate kind quarter? a in very accounts in that seemed follow-up, about as if But absence. correlated model like growth. talk the at little What more better key versus and a and now. question of of performance payments right much. segment Hey sure lot. give our quick drivers payable. I'll business broader fuel this in this

payments number organic business, as a by in of this areas. of it the other of outpaced two you said, growth. kind Yes, James, corporate The terms was And is businesses Charles. driven really

Our was the over I XX% recovery, as up lot or a was helped T&E say. recovery full should piece AP macro through environmental The T&E.

over driven full sales. of the XX%, In AP terms being that's up strong by

you And so actually product as where have to automated the as we came through looking people can of that invoices. sell lot continue digital a solutions were for pandemic, many we people as touching

helpful You process to that then need as super to many it's people to run processes. us. lockdown, And during outsource a

of this demand into and that's year. through lot had we continued a COVID So,

strong on seeing sales you're be So, the and flow-through continue to revenue. the there,

it. clarification it, then. Got a got And just as

benefited of or little is just how general And fuel the that and prices driven much bit that like so you're levels flow-through benefit by being a is and of is movement by acceleration higher there? that seeing, that tied business? and And

full don't the Yes, buying of fuel we AP have area. a in lot

So, in not a a of you kind maybe have our bit spend. what X%, multi-card it's payments, big But is T&E. little overall E, X%, it of business of fuel call we terms in And factor. T& corporate the about our

to Okay. Thanks guys. that. a Great lot hear

with But to incremental add Chuck again, business you payments it's clients have. super-duper James, cut that world. technical the saying, we retention in to our to is we off. thing probably our high. Hey, had It's just And obviously,

drives continues obviously that the growth. inch So, That up. to

that. you. hear Thank to exciting Yes,

Trevor from is question next Our proceed. Jefferies. Williams with Please

guys, Hey for thanks taking question. Great. the

the about FX $XX is the revenue half could kind million second maybe second at the prior is just organic for versus what you guide Thanks. bit than XQ from out in beat, a half. bit from the we the second the just much is midpoint more higher AFEX. that better little of of the Just so a were, of if guide, a was of back contribution dollars Fuel raise in half, revenue where for least guide the on the building in out you break how little

Yes.

about million the roughly runs AFEX $XX $XX per So, million sorry, per lift, quarter month. --

So contributor that will be there. sizable a

a to We bit FX and we'll be prices coming love getting with -- macro little seems are kind of okay. of fuel be

that of So call paybacks say thought. rest and lift and of, some versus macro it, where got would we've XX between then be then the organic I'd the we

in you like The prices came There's worse Obviously, in that thought. a Brazil. us, Ron. then than we worse in called macro going for couple fuel like, different right? kind is of COVID is like sads this out. happies than there's its -- Trevor, Yes. And of ways,

kind the there's of guiding we're much just at I the we're second know again, versus so there's previously, call QX, half that. we hey, to me Again, versus But don't people in -- it, midpoint. me, So revenue another, talking first an million. half look even not in at you tried to believe guide, it's I about puts whatever is $XX QX continue acceleration to heard to Sequentially, say more thing or earlier, stepping even business. the if that up takes the it and incremental

that, So it's miss that we I -- we to can business just plan. a people don't want

rate, roll forecasted so in quarters. the we that And will, you if subsequent

there's on half relative that you when the from potential for softness XXXX levels embedded be least? something have on helpful. lag Charles there is good really just And mean was there. then actually first being comp. normalizing through, timing mean how how I that paid invoicing just my And at with that's more permanent card guessing I'm much I I year-over-year for soft sounds right those Thanks. virtual to but the of the easier moving most And follow-up And based just direction. the I on change quarter, it it's the numbers all still like mean from versus the guys the you get probably where no is ran much in from the there could virtual then pay. the No, acceleration growth just Okay. the as with do corporate in rate underlying customers there recapture I card second mean, mean guide? a clarification customers.

Yes.

virtual -- business, we're you're seeing out ticket have softness hotels, which cross-border spot actually handle et a lies, Australia. cetera. where there, That construction that for market now. cruise well. back, to particularly Commercial continues is area card in lag too, some the is would restaurants, called softness mostly operators, bit still line There softness I'd payments that a as in lingering struggling to Trevor, lockdown in So we come operators,

at least timing of spot can you're it structural, will back. this So of meaning issue. more back don't that it I'd we say We just most or view as a It's come believe come on.

So potential the hasn't yet. is just recovered there. It

Trevor, it's Ron again.

losses. up clients super me but XX I to Chuck that's circa me, jump in it's And is account have because our the don't to news of showed the on the in they saying. fascinating is Let concentrated. line. The haven't in thing they're just of good half still softness exhibit for front that two-thirds alive particular

It's impacted thing. clients but kind across-the-board are an super that down not literally of it's not out. of the still small So handful

Chuck's could And planned we extent open the that the be in to half year. second come they happy for that to so a haven't back, extent come the for and them. to back, us next stay bunch that But they point,

Okay. Got it.

half much the that's so And not from embedded them there's in second number?

much. Not

Okay, you. Thank perfect.

Research. Suchoski Our next Please proceed. question with is Autonomous from Ken

just expect for want growth credit of open appetite to your growth. Beyond ask just I I I the question. Thanks guys. about you revenue get to up kind taking the you about to to to think Beyond Hi volume to lines. wanted wanted that contribute Tolls your appetite. and And just ask Tolls. there mentioned I

terms mean to growth segment in this the of whether in company, a a to half there contribution that's back revenue year lot. or I of total year? expectation the So, next what's or Thanks

Yes. Ken, Ron. good a hey question. it's It's

say a different first So, because I'd been period. kind thing we in March the Brazil slid to COVID problem planned starting of believe February, it's come than the it's into out. is I

starting of it's reopen. curve, look you to at the kind If

So, for that take put comment we less thing I'd driving first people credit of is stuff we this what cards, that's on the than money experience activity have less we because do from with planned. say is bank credit obviously we it's the the some customers and But their accounts. particular and do

It's under a we're control. -- us. the network we've for credit got So, issue

garages go sites performance, stuff. on in spent high to we that parking and So, get a food time lot the performance right the super fuel the software optimizing fast and digits get and of to

And so we put a ton of capital.

I think, build $XX in to Chuck, million out. the it's $XX range million to again

volume consumers now, a tag that obviously we've up station adding because even millions the already have parking we COVID them. going of see that got or gas So, crazy near through already just need garage they're network which lens like this

the one, the around of those driving say I'd people we of which at the and out then that it's build two, of rate the again. so recovery combo rate network; two And things;

when will we're the So, of on idea. based those super later bullish investment know just it's beginning on curve, cross -- this I'd whether or the still that the but year thing say I -- the next, mentioned, I don't we're

follow-up Thanks. Yes. I That question. guess makes a lot my sense. of

customers maybe -- Just mean adopting there acquisition. cross-sell comments we progressing? how I helpful. that Are would Roger the really guys. could Any is receptive that Thanks be on to solution? touch

Yes.

Another Ken. question, good

kind So, guess got thousand. of looked I'd owned I We've at, months days. think, platform. X,XXX I the say SMB early now. Last I six clients time active few still it we've clients, on a for,

And the August, get kind in it's in lot we machine and there. FLEETCOR other combined selling we it this and Obviously, We're market. working, the tech built a it's So, to to assets do into to launched work stuff. get out literally the had and of cross-sell. digital starting month, of

and were in FLEETCOR putting it, top clients pay UI I my additional what it of the the their was basically the and to that, card offer that use Roger the taking payment call mentioned comments pay fuel platform bills think to pay bills. to it I in XXX,XXX go in and bill

thing in live month. actually this going So is that

high. a quality we're is selling product. thousands, and a report the back. we'll launch I'd say, cross-sell. the We're here sure one-yard making is But the the we're got super We've good super on few category line to -- again, So good. were And

far. say So early, but so I'd encouraging

Good a to hear. lot. Thanks

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

direction? to thinking today? the Are taking you sort through make to pulling fleets what's prepare today in ask In moving for Or it. you to curve kind wanted that that of words, are marketplace evening. changes? my you around is the are other demand in And are and when these in the this trying it EV. of Or sort you planning Thanks you you sort see future for this seeing seeing Hi. of what a about I just of side it to for comes stuff? question order

it's Ron. That's another Ramsey, good super question. a Hey, it's really I'd say mix.

will, is if you pocketed. action, EV super the So

only really stuff see we Europe. So in

all in doing -- when pretty convene the here we talk to on interestingly, it's It's who's in and certain UK in all I'd for we Western the and and USA. active about example, what, EV big starting active, accounts. with the in So It's starting we front markets. see But the become quiet it's Netherlands. say the it it's

of dispose or kind the trying which what we thing. of are are willing early so adopters old-fashioned green to And the are are money assets and accounts, guess kind combustion whatever corporate more the of of the be I to is seeing have

that those cost chance at get to almost the transition of don't amount guy for for same UK idea what And of would I spend.' like supplement the because employees' with the the would up And based you some a -- had real recharge. can know that guys -- that public -- corporate markup demand think. station just it's charging we're But drive -- he's out. to putting of the guy. this We're to drive it to know of home a and we now an into spends So a know same model be the shocking there, are bunch at the among to it's the you then van vehicles get -- actually FLEETCOR we 'Oh, if burdened the level fill have But when we to are charge didn't or point, don't at exchange, costs look efficiency I or Part right put said. I okay? the if the or EV point charge the to the putting and so the is gal EV paid of seeing boxes in our and into it. live software a trying level. The van spend player, of you're that that that on that base money getting client me, a own electricity stuff people B like, what through that and spend some there's actually in, a money not flip then someone at his the for lot What

to it, of starting way the out little we to what like. this so then head of So it's trying a ahead both. It's and us get model articulate looks can

Thank helpful. That's super Okay. you.

to the wanted base the rate of quick about to got to like your contribution rate hedges sure M&A seeing point. interest make $XX.XX effectively that terms rolling run view. I of I about looks preliminary all off, this in in XXXX really a Just to in $XX.XX follow-up. addition $XX.XX. kind at $XX.XX It's EPS is just what you're It

Yes.

trying We're me guidance. let not to say. So give

It's Chuck everybody the just record. go helping the really provide here trying I the half -- and to on in let so of back So, me say with guidance math. just $X,

So, just FLEETCOR then a recurring $XX, couple work we business, And deals. these of that's of rate wheelhouse to super in that's just what happy exit of a an provided. on comment want things. on deals and did kind We are I

And with they're synergies. rich so

$X.XX late are obviously -- increment, high company super well are confidence and in they the the synergies that $X.XX our as confidence my because kind is of coming into our to So, weeks off on. roll so the other is something made couple I'm a or of and took that hedge a we happy. thing And goes Treasurer bad year ago through me the a

the I more. more there's exit that hard and people But things these of way things are rate clear can to business, in set obviously, want sure make selling way to our work the keep and including see. that couple we're going buying we of business just some to of happy So,

the what that saying going anywhere year. what suggest to try I'm as the second, one to in we is run is near cook guidance wouldn't, that We'll I be. through So,

fair enough. right it. All Appreciate Thanks.

Koning is David next Please question Baird. with from Our proceed.

the guys. bit normally, my to guess Thank I when up segment, question just QX, it's thinking a fuel in back, is of hey little sequentially. look about And kind flat Yes, you. first we

of that I guiding to year. of normal? more be to drive about QX, think talked nice this like bit quarter, growth, fuel than sequential but a a of all a sequentially -- it's kind going way little What's will what's to like going QX just you're going better -- it the the is be higher tailwind, from nice. be there's seems getting which It's you like sequential to kind

Yes.

Charles. So Dave, this is

fuel thing we is one are So, seeing some prices. higher

certainly So, that's helpful.

As Ron digital mentioned, also great sales.

So, sales and that into are revenue translation. -- sales recognized turned and quick quickly, are business, pretty pretty in

you know, were So, awful. that's sales as year, Last helpful. pretty

So, a different slightly that trajectory. created

on So, back we're want be. of kind where we to

combined will recovery of still combined a QX say lift to So, couple bit but bit QX. little COVID go, those things of those faster us a I'd in things versus with help

David, Hey Ron. it's

one Just Chuck's is there retention. add the the to thing

for the have I but XX% that, company. at fuel called opening call, hit know hey, the it, asked far? surprised XX% retention. from I high. we're we out the so if the break -- we the call, the someone Jim card of of Sanjay it what's of But at don't I top up at called out, us think card or inside not, me business. I showing Fuel should

lift So, the that through as model, roll creates that well. when you second our half sequential in

bit So, had Chuck's recoveries. of to fuel getting happy COVID good we're point, at all-time sales, little and retention. we're a macro and crazy from We've

together, it put you all So, pretty good. climb things

just that cash a it? low. should mentioned that of think for we think the assume have low? Thanks that, really about for guidance your in XXXX? stays the it earlier The Does that you And rest what we much provisions Should in too. normalize statement, the Or call, and We can changing follow-up. we like guess there? And then of should credit year flow as see the Yes. been quick in that. I

Charles. Yes, it's David,

year. kind So exit we for we forecasting to credit the of are as normalize

up bit get QX more what see would of historically. little QX, a So get we to kind back

the follows underwrite I we're now, to a As really sell try well. selling I somewhat. generally, more sales. lot credit

However, bad, through they some do base the people then weeded and go better. and get then out performs they get

we more it's So normalized. that have expect would now, as sales way new we

what into what so we've I'd more say kind And next year, look historically for as a done is of going I'd baseline.

Got job. guys. you. right. Thanks, Good All

you. Thank

from is Evercore Our Please proceed. next David Togut ISI. with question

of afternoon. of what Good you payment side a open you. Thank reminiscent seems platform that fuel the Beyond fuel card. Fuel when The up to transformation a UI bill you more into on broader of intriguing card and did card the

bill would So payments seem can need payment probably of broader you acceptance the a this build project? type to this heaviest side to do talk to about because with what mostly merchant that platform, you on lifting be the

we your a good no, it's big voice. idea. pretty hear David, Hey, it's Yes. -- Yes, it's to think

record. payment have so it and and been And and system software making this done, UI, is our US Roger Whether I both UI coming they the to we're the reminder month. clients European live I or phone and pay inside we using taking -- going there clients particularly these and an up As us, right, our are pretty right. basically us, all think their fuel using card their so on trend more bill the bill showing more invoices, working of desktop pay get and to we've frequently that and we've email going what right, said, using what the software is of

platform is So when working. and that look something, you to go UI pay over into the

don't network And businesses, networks which capabilities as we from in we platform friends those obviously, bill pay already. that is and our deals the with all have we at the rebuild to have got merchant MasterCard. really our have the we our other So

paper making other that stuff and all have do We vendors that everything.

UI to So really, bill big, staggeringly United right? the seeing have just States the just And if accounts are more these the here a over just certainly for every than but on just pay back, the us. XXX,XXX just UIs. a numbers report we'll comfortable in month are customers. do It's paying it's you It's using are

know you is are don't that's if want the the hopeful, we're us. it more but these idea to I with software and just go. and product more call got to apps more super them app, people We ready another useful to using we've be So want

going So live. it's

the Got as on it. card a pricing payment pay? bill look And beyond fuel kind the go follow-up, like platform what just does of you unit when bill

Yes.

know, we at should of then we whether So that money XX% client. run it, cross-border. really, the cards back the on we the call you We're almost cross-border, X% to our at you for kind end, that will. to of the get get software, mostly could as point obviously But stuff this the free paid stuff be if it's subscription looking through and

our to initially and back SaaS get So, then we'll as software on probably base it fees to the look paid in feather attractive client make super some we go. side

Understood. Thank you very much.

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

you say, as corporate yours, think actually are And Thank of Coupa. software more and say traditionally complementary procured their right, And would you procurement very items I And payments much company services. been saying, the for looking taking my what or call. Coupa not they I And focusing Pay. that's My competitor is they've one question paraphrase in if a company involved a of is they getting I at payments And would there position universe, procurement, thing been it, be on was they you why? if the you're segment. payments two that a of exposed actually with they've if software particularly when and is sentiment. go disagree you -- do to you was that go the doing wondering thought And have of procurement things side the of maybe you get agree I more outside things that would was you any the bundled? why side if thought would universe? what with -- why the I us, would procurement with could wondering it, payment you these

That's a also question. good Ron. it's John, Hey

called bought just FYI ago you, provider two the pay the years Nvoicepay for first, Cooper So in was company we Pay. Portland to

lot think combining that So, the they've today a pay trying that ask their that's them is could know of Cooper don't we're with you done but to Pay software, ambition. pretty the do. what I clear on I

and for on is we've what software say that have I'd value looked software year So, companies kind the up mentioned. contract studied and automation, kind of of procurement that of that's kind software compliance right, scheduling chain, at workflow a of top of two, even a AP or bunch approval, that you've

on clients take the do means automation is not of from to will take above, will Coupa be all just AP that which pay. it some Our they and software like it

will won't Some do our offer I've people that. the we and that's people industry the will take what way. automation we'll both. one that one based it the like the in they're size we've take is but It's to that of not like company done fits not, on is that going and and all. research the or be know it everybody We size standalone don't AP And just take pay if repeated I software I offer offer probably we offer, some the will will that both. think probably

idea. their good offer into look to a that it's think we the It's We we'll something do partner where pay we So, probably software. with offer. people

studying peanut butter we're jelly? going it it, well going call butter Or Is to I it. jelly. how and be and So, jelly. they're peanut doing butter is to it not and be peanut

out still the So, I think jury is on.

Great. Thank you much. very

our And with Cowen Company. final Please from is and Mihalos proceed. George question

ones ask Thanks me on momentum, the the levels. I'll I guess upfront. for guys. squeezing quick sales of XXX% XXXX I Hey two in. guess

be feel, curious, sort there the maybe perspective, build to the are doing the side. out if what guys. And thoughts and any of that seems FLEET. a at Thanks, outperforming sales Ron better Ron, than weakness from high you curious separately, just new a and -- Just from Charles, for any about segment you're where where expected pockets any that might infrastructure mean then of Washington, level and of

Yes. Hey, Ron. George, it's

first sales part, the On thing. the

against plan to been I say think actually funny will but the the I -- sure sold year-to-date I'd it's sound built. forecast. I'm yes, that surprised mentioned We've everybody, And more So this been we've fuel. in it upside we the to

actually is plan half second built. higher fuel the that than the we in So

overperformance digital that digital So against is most try of most the is at accounts that to expectations overperformance we're keep of growing fuel, and our the I internal to onboarding. share top as drive more investing the new selling. We we're mentioned, And that. of

it. pleased that's the of say kind I'd everything mostly overperformance. super is on with So else plan. We're

even the way -- mentioned, from up up way, is year you As and plan against up XXXX. last

And everybody we be, say tell of year, obviously infrastructure stuff is knows else fixing delivering what if lot. paid you I'd So what infrastructure On bill. to it it's kind be, kind a from who lot is B, and us Part could say, it on clients of is. would me payroll. construction-centric, last helped of like what say the help I'd us hope stimulus our it think what the I'd a first, for. it us a get which looks helped lot and like pay would

thing same of segment. fashion old in pass that kind concentrated if where weighted pretty funded its that the gets say I'd and comes so and construction stuff infrastructure gets to And build, regular we’re that

that infrastructure, George, for thing. be on to companies, there's the it comes if us. It's the political more fleet. money to help of old-fashioned to through happy it's us. counting be If way. not more But it's sets to comes and work by a So I'm the will it, got it those flow and

Great. Okay.

Hey, George.

lodging full our As and just vertical, in virtual pertains not in businesses. that the card to fleets Ron AP, our construction also the business it's and AP about talked concentration

will That conclude… Okay.

George, anything else?

appreciate point No, we're upside. I think Hopefully, it. that's a of great color. Really set. That's

our session. the And This does question-and-answer concludes conclude that conference.

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