Corpay (CPAY) 9 Feb 222021 Q4 Earnings call transcript

Greetings. Welcome to the FLEETCOR Technologies Inc. Fourth 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. Instructions]. [Operator conference this being is note recorded. Please now Jim Eglseder, will turn the host, your to over Head conference I of Relations. Investor you. Thank

You begin. may

afternoon, Charles Full you our Good Ron Clarke, With thank us and are CFO. And for CEO, Chairman today and me for today Fourth our XXXX Year joining and our earnings Freund, call. Quarter everyone.

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

call we this discussing be throughout organic growth. Now, will

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

not are which to statements. obligation actual from to to are the outlook, of new not directly could are all These differ and expectations statements we numerous may with differently undertake forward reflect should uncertainties diluted and We non-GAAP reliance based undue companies. adjusted basis. expected our do are discussing any income update will to information. also the Reconciliations than no be measures best risks, put today. of per products expect. calculated our that financial metrics net be looking on to These of future it. I calculated be that release cause guarantees They an and about and what revenues, may most today's today historical information as comparable on website. can materially GAAP results need business everybody performance remind found statements our future not the including on in discussion share, development of and you regarding We in of other non-GAAP these These and subject acquisitions part results information GAAP accordance press statements. upon All include

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

way, to Now Clark, out our turn the call the Ron. with I and CEO, of will that Ron over chairman

Jim. Thanks. Okay, everyone. for earnings thanks Good afternoon, our joining And call. QX

plan here, up So to three I'll front subjects. cover

my along full So provide year results. view first, ‘XX of QX with

Second, year. midterm on layout my our guidance lastly, thoughts company's And I'll for the the XXXX and share priorities then imperatives.

good. our QX Okay, let turn quite were results the me to which make

days EPS quite XX ‘XX. million against up up line digit revenue we ago. business $XXX provided of million we almost revenue XX%; company. Revenue of the reported double So organic and XX% for hot, up came of good QX XX% both higher Organic QX than of up $XX X% in highs also cash XXX, revenue record that's in for guidance revenue growth growth Every quarter. the the

versus revenue continued quite year; XX%, same-store-sales at plus retention sales good. the healthy at QX prior XX% trends up quarter Our steady X%. in Record

bank call notable which the We products. our last. we outs some had our since with partnership in total have We largest spoke help distribute formalized will Brazil

One We expect business. Corpay there. So formally SMB our platform lift we launched

business, million. upsized FLT all We corporate and X shares just investment brands EV our into We corporate in So We payments QX Corpay. getting SMB under over the we payments the in our rebranding an loan million of software repurchased term the space. now and business company. on January completed our XXX completed another of

look trends XXXX. So expected into helpful as in a to summary, we good better really year finish the than we the and

XXXX to me full let year. turn Okay,

billion open up financial the We the results cash with characterize XXXX really at good up did results, XXXX we EPS midpoint. record of pre-pandemic for those XXXX Cash moved EPS where year, ahead I of company. XX%. baseline, our of $X.X of highs XXXX really of XXXX as think initial we XX%. an of comeback ‘XX also a Both revenue guide

finishing guide. initial $X.XX better than now So that

a growth We've for organic the and that and XX% sales, than revenue ‘XX XXXX XXXX world. year versus our ever new XX% super record highest the expected. XXX,XXX clients versus clearly up So Organic across books That's good up better levels reported. we've growth XX%. to up revenue XXXX. XXXX added

‘XX ‘XX. close $X.XX to So to expect for deliver services. EPS our those here incremental strong demand in in gather to and accretive did $X.XX We acquisitions of to cash

are our All objectives from right, in XXXX. now all company the on the our guidance for meaningful year. all We've XXXX with the plus before grow XX%. midterm plus, of organic cover let and thoughts priorities Good XX% me cash XX% ‘XX a XX% these to initial stated grow to revenue So recovery to our grow meets mentioned three along objectives. for EPS to sales all news guidance

but allocation no weaker real does help not offset higher neutral. midpoint be deleveraging. these sales There XXXX billion, of midpoint over XX%. Cash macro XX%. up include the goes just by here Yes, to overall in the macro some fuel growth in guidance growth any the basically XX% $X.XX revenue EPS up that’s looking is This beyond really forward at numbers. and FX. for revenue prices capital So XX%. up XXXX at We're Organic

these have our year COVID half of year-over-year assumed rate X% client expected Confidence the or improvements performance in recovery run is high back the ‘XX. our in coming in same-store-sales base coming numbers. in about exit rate a About pretty year. already this We into

helps. that So

of support the acquisitions sales really the big recent baked. the synergies Our trends forecast. already are for two Most retention and

million accretion. get a have shares from And ago. that we to year repurchased expect about we So X.X

be quite accretive. obviously going to So

of terms In in picked we we priorities, incrementally that a few things invest have this year. will

So digital sales.

move ‘XX our to around a accelerate central IT, AP in digital of our in joining our business services, expecting cloud, platform I walk push to with and the incremental get going big hard making IT on increase transformation demand. that platforms pretty spoke and this are We advertising, sales up digital those in in services big thus in read where a investments we're are production and to staff. investments

all in ambitious all So pretty year. a

last like the prospects Okay, might be today so to just and I'd bit. it our about for midterm helpful thought a imperatives company. rewind to up I the talk

anyone For new on the call.

remind everyone we're Just do. who is and trying what to FLEETCOR

a nutshell businesses, what what by in buy solutions, So all they primarily to payments really help they is less to for. one BXB thing, clients controlling and FLEETCOR provides which spend specialty pay do our intended

kind of differentiation in Our two forms. really comes

specialized. of First, kinds target our We needs. very with certain clients are specialized highly products

firms. they for trucking plumbing for would So look our products would than look different firms

services travelers white they different collar blue Our look would will for travel for than collar travelers.

networks in second, line. very that at of dialed kind XX very the allows of sale. point And than us unique operate more capture to So data proprietary product acceptance we

clients. We also our enjoy very with economics, share which we favorable

or has with business growth sided model a long time. us a So over approach, this coupled deliver two to focused allowed consistent specialized period of

the big let three we sustained imperatives, that to the So on that think long driving critical to we're me growth are things term. the turn over

the a We like far. transition We're So so hard. of working, first made lot up is EV and energy progress we've do feel the EV. in

networks for So in added public EV. and both here we've acceptance Europe,

to at the in refueling software reimbursement. public the companies feedback EV or up facilitate seeing our So from service recharging service. services. points. more we're economics with and And home in or on you XXX get charge service invested EV signed a EV here points initially our that We clients roughly to recharge service, our revenue We've few line the traditional

transition with EV, on will we're this a along look we and manage out. So to report continue

transition digital Second make imperative by where companies is working digital the hard accelerated super COVID. to

thing made the say the So I'd sales has is first really pivot.

year, end over with those half came sales no card end to last digitally XX% fuel and human global intervention. So over processing of our of in

our On top the moved the of focus marketing funnel. front, we've to

technology using we're prospects identify digital services. So our advertising, ABM interested in to

our advanced the to our front, client to more their capability allow experience do clients On UIs and we've themselves. really

faster and than added beyond ways transact So with the of before. ever us we've cars. to And new sale, point at easier

a mobile cars, the RFID technology, even digital including connected of progress phones, So front. on so lot

portfolio our TAMs higher last bigger to growth into So segments. diversification is up transitioning

into So going us opportunity. in extend more speak our which create of beyond, you've market to existing we adjacent heard of businesses beyond, each segments

a just examples there. So few

payments now entering markets the corporate business, our SMB middle So space. traditionally a business,

Our insurance client companies XXXXs homeowners workforce, added blue recently a or historically has or focused homeowners of really now urban of the highway hundreds to displaced offering. toll centric of business airline adding our or business, extend or collar and really city to potential a lodging lodging base, expanded we're In travel centric for dwellers Brazil, business. crews, that

do pay our us. into UI could client specialized example, will time, adjacencies over travel we or business the for Platform one services join business, look opportunity all business of businesses. in same our So from the each smart to solutions increase and which payment these platform a I bill comprehensive our mentioned we our from solutions, up all single for our use, cards, online and expect

capabilities walk So along really concept this combines employee around central kinds pay. of with for bill platform purchases, our

idea the specialized offer services can has additive and potential that big platform payment we quite think the now. So be we to

company's about XX% a for business of As down to ago. these XX% year card from the about result of account five our revenue expecting extensions, are global we this fleet that's years

faster for repositioning again, So growth.

So imperatives work diversification. hard; plan midterm do to digital and three EV, these we

Of as we course, go. we'll report progress

really, and again expected year good XX%, XX%. than trends to comeback earnings a to year, at back much This today, than finishing growth expected organic up conclusion XXXX XXXX guide coming of we into better in So another be we better year. outset. the QX thought to growth, much, the a expected again

our again, company. lot I three just baseline key on to pre-pandemic that from of a growth pretty midterm the and these for sustainable imperatives focused So outlined, distance the we're

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

Thanks, Ron.

which up another of into up XX% organic yet behind jumping category our full with again. the in details XX% payments performance in was revenue over XX% strong So QX. product was AP Corporate growth quarter

for virtual and Corpay cross products of from acquisition border is final multi office in processes to with migrations closed throughout completed was and We'll AFEX card AFEX In and the were which systems XX% cross June. December. this up the border continue our we the back year. customer we platform cross systems normalized integration Our card up in border, XX%

XX% integration team, synergies growth so holding has dedication a our result are in out and a strong in line every largely Fuel conversion as geography, I'd sales to work efforts it's to digital their our shout up expectations. with our [thesis] to as successful. accretion and of like due and that give Our was rates. the hard seamless been big organically with with and retention

around products and our the of of and the of attractiveness fuel technology. competitiveness to ability offers, world the the demonstrates customers Our sell card effectiveness retain our our

the in particularly have solutions, progress We XXXX continue road on acceptance points good solutions, also marketing publicly in our with represents our with cards clients fobs. network This of charge enabled approximately our in XXXX UK EV management where EV charge make we or about expanding and XX% products. Europe, country. accepting coverage now now to of actively the developing charge We've been available the EV over in all points

this we've our continue up are EV card slowly efforts compared made on retention to coverage, half We Tolls a products year. tremendous signed fuel Mitsubishi, and as tags new our business We progress accepted Ron earlier, to year initiatives XX% continent, year-over-year Kia yearend. install roughly new off. before had our as points. venture users the sales as Toyota nearly our we our we organization and Brazil's And of with active and vehicles built XX% to a leave Hyundai, our and was expand recently factories. charge with as customers XXXX some million will bank. paying they XX% Keisha, as fuel doubled fuel EVs. We they completed up the migrate our are strong support got advance mentioned On XXX,XXX to nearly largest We toll locations joint dedicated around at to really last to

deliver. air domestic of policyholders of COVID growth with insurance displaced lodging perform Gift outperformed XX%. improved smoothly. higher to is organic growth and rebounded lodging XXX% lows. going in organic year-over-year. well up Workforce Our a lodging services We're major airlines has continued business increasingly especially will travel provider over volume, XX% companies with quite ALD solutions, The integration was it from as confident the of value to

on last the continue produce the new discussed channel. the efforts to online we've especially several As results, retailer calls sales

pickup COVID a in which had saw concerns. to orders, been We also card due replenishment delayed

returned as integration deposits offset activities AFEX related future million of of applied five a increases levels. basis higher Now as the expense $XX.X the looking was year-over-year primarily statement, points, slight historical as LIBOR investments in credit volumes decreased decline operating to to stock and and further losses the and and in over X% debt expense with of balances generation the addition down costs prior million have growth. December. due increase income the Bad due or million deal compensation, Interest customer costs, certain higher $X.X expenses to more to new jurisdictions. rates foreign rates represented quarter incurred and tied in operations, of interest to B associated $XXX our across ALE debt during the cash drive businesses, well year, and term higher to we sales We in incremental $XXX added million an

and basis the increase, in rate the On existing same XXXX. was points term XXX and the as April our facility plus LIBOR matures B

of remained the reflecting effectively leverage our unchanged, power company. and ratings strength earnings and Our

tax with the exercises. benefit last on versus driven by for excess effective lack was Our quarter primarily of year, the XX.X% stock increase the rate XX.X% tax option

$X.X the $XXX outstanding million turning quarter facilities, the included available There to our term sheet. unrestricted in we We incremental was on revolver. mentioned. billion on Now with I balance credit $X.X B our $X.X billion debt ended the had cash which just and over billion

X.XX we our credit adjusted Finally, had December ratio XX of leverage XX securitization billion All in our times facility. EBITDA accordance as was $X.X calculated with borrowed as agreement. months our in trailing in

repurchased in repurchased X.X during As million shares we in X.X total, quarter, mentioned, XXXX. we shares Ron the million roughly and about

shares million XX-BXX our X.X under also plan. January, bought in We

may have our in in $X repurchases. You board another billion press our that release, authorized seen

ample taking into shares today. back term it any still have to of So $X.X liquidity almost and near buy all we that authorized to have pursue sense. repurchases when opportunities, M&A believe for account, as makes billion we We continue

gives everyone Recapping remind earnings we to the XXXX; important us. X.X for billion. it's that think flow million power shares and repurchased our I of cash $X.XX

XXXX from of guided $XXX $X.XX earnings for count growth provide spent share next is $X.XX down ago. shares future a for X will which million and to We deals, incremental on guidance Our year in what to year, we million years. share per continue generate

the and high million business an will year. of quality $XXX also the QX after of attractive our in We additional very our strong of B growth billion in and terms, barely us $X.XX term at raised rates debt, consistent our to year QX leveraged combination changed. and million enable and believe $XXX revenues position, structure deliver year We model recurring after

outlook me full Now let share some thoughts on our QX and our year assumptions.

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

and is as is gift due quarters, we while first XXXX. and have the tolls have certain or QX businesses fuel notice This guide such seasonality where approximately tend to of fourth X% than to of and may weather soft You what to holiday. lower midpoint our quarters revenue in largely lodging also QX $X.XX due reported strong

As revenue tends a our quarter provided profit the lowest few such, first like assumptions in terms and to underlying both the year to note for be full company. XXXX I'd guidance earlier. Ron the of

in due as We to be return to million expect more normalized sales production. we credit higher increasing debt part about than levels XXXX see losses a bad $XX to

will to to benefit XX% expect $XXX at throughout rate remain XX% assumes months. stock option And over to Our million any be interest expected the also resulting guidance point between press tax repurchase of offset lower rate rest found excess be the low can expense partially $XX as be from exercises few assumptions our of these million year. our our XX last from The the we increases past is supplemental. and our effects tax basis higher XXX count higher activity by the share relative and release expenses years. to of in The

we our the results ESG available published the report was beyond Now investor Since section let's the relations website. last in of is move outlook. and and our new spoke,

details workforce will our for including document Rooney rule you our all the programs, the and comprehensive find our more adoption employee advantage, development and highlights president of are around training in vice Some some positions, significant over respectively in power the usage on reduction as XX% reporting including global and which footprint above data the as and our XX% well are years. centers, last five and down

be to I to helped will Finally, line force like the thank driving your now a XXXX. and like XX,XXX open who questions. the to our would for around interest operator, you a strong year employees finish nearly heights in we'd who deliver in to Thank for us FLEETCOR. even greater the And world great

this [Operator with the question comes be conducting your a Instructions] will you. Please Citi. question. proceed of from Our line Pete session. we Thank answer with time, question At and Christiansen first

evening which good to Ron, Difficulty] Good [Technical looking is [Technical outlook, which say. at the Difficulty].

to you. We struggling hear are

you Can me? sorry. I'm hear

Yes. [indiscernible].

[Technical Difficulty]

back you Hey in. Pete if could dial

take will next We question.

Thank you.

question next Barclays. from your Please proceed comes question. Ramsey with the El-Assal with of line Our

questions quite in for ask And and I It to where X% X%, as thanks results to time. fourth up percentage taking CapEx for revenue. wanted it's I appreciate from some about on a here. of it. looks my it moved been like solid Hi, congratulations quarter the

Ron we what new forward? down a again? kind I'm But investment critical just business this business investment back Or should lot Now. investment. should revenue going of out more terms finished of maybe of this in view a as with is you're investment cyclical CapEx kind wondering we you're I expect nature, a of sort know percentage of level in the making of cycle and called and is meaning will tick of

the years out build be probably of kind that new percentage say this and things the probably four latter last couple Brazil network referenced in this I'd that level level, of we've drivers the Ron. before. of it’s Ramsay about two Hey, think

So of amount amount few And kind money costs a the up. two, incremental fair then in incremental of for we've getting a stations IT fair those XXXX of earmarked transformation.

So not have but we building just the obviously, in new parallel. enhancing, systems effectively ones

those have they run, and probably a say things bought would couple to at a I couple back least So years more of down them bit.

for thank for seeing A, you're maybe bit. view have deployment sheet the and deployment versus deal M&A And the of environment could that. generally, whether buybacks I'm us Ron really I'm curious give curious It side, the balance to you on soon, Okay, a on first appetite capital down sort if there. M&A quite out shifted your seems but or because more or the just on then be opportunities emerge increasing valuation little see might more just seeing to pipeline what a you're too you

Yes, Good good. question.

in say for we are comments, accretive. capabilities I'd it if But priorities our X.X Ramsey, that the -- last say We're from can as So shares XX bought billion like right. back unchanged. tell Chuck's we we you M&A months. we earlier, first and/or

So stock we've had for own think which appetite bit is a appropriate. we of an

In the both when of our category. saw terms of the the we some months button, M&A in call volatility own we the in others ago, it in and stock pause did our press three

so We've of test to sellers post super are are kind literally reach of pipeline now. things basically. got And where a are and out we this, view the we're in that back going those where to of some late

that and say I'd days, the price me lower maybe have a things So in message are they'll take. whether volatile that again sellers ask XX there's gotten

so much. thanks Ron, it. appreciate was really I That Okay, helpful.

from question line Our of Please Peeler with the next comes question. Darrin Instructions] Thank your proceed with Wolfe you. Research. [Operator

corporate fleets think through really OCR a quick the a definitely to digit local Hey, basis, a how segment we the stack terms outlook side now, higher and level bit look of that now just then low on the to versus in acceleration. you an single year. follow thanks, of I forward the fleets, in you're payment running going Can to side? in rate up a And talk have bridging growth? is guys. but on fuel you're embedded from your on the range the Nice When the end the run

high guide, embedded single Yes, Darrin say ‘XX guide digits fuel Hey in Ron. it's for I'd for cards. the the with hey the

of the softer B Europe across that So year. our XX% I here of and business is getting continues more comps, Brazil, and which to normalized obviously, part the And run call soften off globally drivers COVID this yes [OTR] impact business to don't more. it

our of softer the smidge or digit, thing partner I local be a So that high think it's single inside than business. would

had a decent Okay, through it? probably sales and you've that's flowing

we literally you of it. had Yes, I sales, had the business. fuel cut of kind mean, out But sales said you in if record we've cards decent

I Yes, flowing starting that's through now. and figured Right.

a you around really think it, holistic the gear trying to but I'm I opportunity, you through think know, good up corporate probably payment the invoice sounds the virtual when into Just the effort a on I versus like go side sell figure the Thanks, a software trends. been going to follow and think meaningful about industry mean, be, core we're to at offering and card going we're going full side. some there's kick do scale pay, could Where full guys. is quick out on but really when chatter think really you of really, alone, be that to this initiative cross pay right when do lot we I for which

Yes.

say I'd question. And or me quarter let why. then so. another good Another probably you tell

that started our a call it. new all out to them out they platform in saw the XXXX clients had testing, pay reaction some the going if on payment decent half we an new interest in to clients, XXXX putting solution, So bill second seeing platform,

cautious around do if to clients. will, goose and And golden the want is changing fuel these be where presenting so basically new to platform a what not super card of kind payment the to you at service upsetting we we've same be careful the time in decided

broad this and of platform So against set effectively comfortable using clients, in them that that higher present we're get moving to a on them. then add put for

QX in to we'll out on. be is So somewhere my guess able probably report

Ron. hear That's Thanks, guys. That's good great. to

Sanjay of your from with Please line with next proceed the Sakhrani question. Our comes question KBW.

evening. Good Thanks.

deflationary obviously inflationary kind top Could on question you're coming driven of versus sort pressure the in there. translate and line is making talk what about very how growth, of expense pandemic, by you're to just terms investments out of assuming the going growth? much you that's of strong Just to more

Yes, is this Charles.

we've growth seeing the So you're acquisitions a ALE of rolling the AFEX comes got One, are in. that couple areas. and from expense different

So that's number related integration stock one. be the have Also we of we deals in we've to Two, normalization integration got to a that a quite advanced higher, extra have the company. got taken expect will ongoing losses, comp bit is some there. probably as most credit AFEX costs, the the

them move offices, really systems, to etc. their redundant So close off

So it's synergies future. a multiyear spending to create journey the we're there, money and basically for

of well here, So in quarter baked both for in also that's into our next the guide fourth year. as kind as

around We some are pressure staffing. seeing inflationary predominantly

call and remedy through vendor some as we've us that and as opposed of the eventually that help our wages centers but will measures and to arena. vendors that to to say So a payments payments it such say in relates bit taken little corporate I'd

on cities. of tale We're inflation, it have a from costs revenue benefit going it's to side. we'll also So some from two but some the get additional

Hey Sanjay Ron. it's

we in jump choice that advertising just would business we directed even like IT got and some we profit around sales, to of Chuck and really really the by me again better testing environment Let position some thing to. EV, the over which said number things, capabilities and is the made like be the that us last

the that on and chose you addition a want we things factors chase that basis. do in the to out, hear I Chuck company laid to that forward just a So help

And processors point. the the a and are curious, auto trying going have Understood, some just just speak I'm of curious like forward? actually forge up payment you're but I the to targeting. question like distribution them, what I future? you're maybe to channels know are on to the just like you look Thanks. the I'm Ron, follow partnered think in manufacturers? unconventional EV Some have have you that how partnerships how with, going

Yes.

it's so the far. think way I other been actually

people and stuff. in and and software distribution a think. best mix again, particularly that software, kind the companies fleet of I their announced is working Companies leasing a on new we think us in pipe the see I are investment follow on as companies like

to client so we see because offering off got base. we've base, our our continue And approach combustion trying generally bring And to if lots then we can something else, a first they're obviously chances moving back into to B, the fold. on spot we're that like of client it so of new fuel our coverage, internal to in to both clients

cars of case And sure partners, our as is distribution those said, say, where With so literally, tags, a thing, I'd Brazil probably as are the which line. toll in now put mention tags we any. good with for or that did capabilities bit effectively as off a study come we've three the basically four

when Brazil, it's So prior whatever when you out. buy tag in got us you come Nissan when some you your new Kia, the heck is it

off over we look, seconds. every data connected think these of sending fundamentally where the will time, So they're cars coming line couple

whether access again location then relationships car and so a to can want public, the grab information or to have we set home, mostly to pay it’s client, work thing. just location and the where that have at basically And up be help that we connected for

much that earlier would how managed in play say not just in this and to and So need. office, the I smarter and we now we're help what we're so transition or how on

know don't way well better were. communicating but spot if are I we're in just it a So than we we

you. Thank

with Our question. next from Williams proceed Trevor your of a Please line comes Jefferies. with question

XXX similar have expenses on stepped quarter from expect that's upside. down I another after higher up a wanted of of to Good were new should Sanjay QX the points kind of XXXX. kind despite we is third just that this rebased run basis was all to kind through afternoon. revenue thanks. one to getting but span mean what Great, of It so about level just in margins

pieces we're should about So kind like ‘XX? back, for than what on another as the kind of we a you're, the it going level thinking XX% do kind if we seems that, investment can still for get the go lagging versus of you've how year, up new from some if a better already you just sense given to of give into get going the for your just of you of Thanks. kind much us about are operating Just of how leverage pipe thinking strategy. stepped that next of growth leg leverage that revenue guide in forward, market to quarters, prepare couple to there's been be last revenue

bit and Charles say is This Trevor. a that of it reset. is Hey a

at you're insurance So airlines some pay. of very service. operate very rates high companies. dealing of on a the require also They're when do they're margins lower bought with very, or very, slightly the level they acquisitions that And big focused we

need it's And so revenue back, those the requirements. to accommodate service airline of we as we up to need volumes level pouring to And staff make investments.

going next continuing I we are for mentioned, the make So XX% probably is assumption a Ron to investments future think And good growth. for year. as

hold so that And level for margins say should for I'd at remainder year. operating the this

a hikes for to on Okay, have you Charles, got Can you it. built to three It us And expense. a what guys follow ‘XX. you're Thanks. interest interest up like sounds in then or just fine, guiding up if an in six if but even sense, like sensitivity hikes, end we the just scenario. expense at could it's that's number, look that what and five exact give not

X.X billion about LIBOR. flow with got We've that would

XX XX annualized every million points looking So basis XX at incremental to of kind you're million for expense. of

that over in you time. see to to got going lay You're

that have around interest if net of around actually side, world interest might benefit. the on On the pretty those good we so and balances earning flip a the and to rise sit rates continue deposits world cash customer we see do

Got it.

Okay. Perfect. you. Thank

except take for to promote. sorry [indiscernible] guys. next Thanks looks can't like technical I Alex going [indiscernible] Trevor. we're It Apologize difficulty.

[indiscernible] just a to us if see we Let's guys to next give this the one. sorted. can okay move minute get

while versus wait questions squared growth upside SMB on trying if well understand earlier the Okay, that payments normalized we to get the for expectations? opportunity factoring should away. think about how expectations we guide One Corpay Pete into there's from initiative corporate

hear Can people us?

Yes. us. Definitely hear they can

can and Ron. Pete hear but I it's

and bit we market. cautious this are we're earlier the answered in selling So a of in the to new sales be to a I prospects bit kind style going slower cross of that

be So minimal. I'd would say it pretty

looked piece Again, because for you trying we be right. to the careful overall economics small. relatively acquisition make be and payments our sure guide we're at the have year, if still the SMB would So corporate mostly

scalable second on. think, we some that I growth what half. in and a be we're could I through like upside, as upside, step we get There second the views that's go yet. on the don't yes of seeing, we terms bit into maybe rate the get have there the to since we testing could of if in say, lift of gas some the and So half going

how can Okay, impacting And going this and then is, a prop? you growth How forward? out banking impact flush another you value the do could see this of question the revenue Brazilian relationship bit? your use

Yes.

just it's the joint in we've the Keisha venture focus So completed bank, to more with downmarket. Brazil tends a largest bank bit

of leverage kind don't their look you say affluent, if distribution and for market such. all with our tend but to able a business, more one down class be So and Keisha our move users of bit capabilities. and focus bit on, And a historic we'll at more middle we I to

So all the etc. branches ATMs, their

that just extensive we around the a segments reaching so as different slightly And we it on focused historically. view but weren't country as distribution, also

to how on incremental Let just that it's distribution are. channels [indiscernible]. I Ron, different Hey, me just we would jump add it love

business, and were and bought waiting reference. toll and the when then partners, in etc. came including through that that And the truck whole can XX%, of slew XX% the hang sales retail outbound stuff where digital manufacturers, in people a or line do remember I and all things stores, we the sales, the new we stores, diversify of kiosks booths, So

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of So account super in put it largest the ton the holders thing we entire months haven't just ago. single months guide But about set we're I to off, country. the yet, bank, because a of couple a is three that largest because think, into lifted excited it

targets And than so a we're Chuck's because traditional that that it again, be of point user set will slightly different additive hopeful the one. super at

And back. I Alex? think we have Alex

and apologize technical the we difficulties. Ladies gentlemen, for

next We will question. take our now

your JPMorgan. proceed the question of next Please Tien-Tsin question. with Huang Our with from line comes

question actually on a Tien-Tsin. Jim. for I wanted on retention. Hey, It's ask Ron, to Charles, the Congrats on Andrew quarter.

what to the So your obviously stick slide potentially as with But I services little pay strong lift was, to of guys in compared integration, of a sell more you running corporate wanted ask as any still bit you pre-pandemic, bundles started quarter-over-quarter. products? retention, a to be there sell could in terms

actually statistics on we Yes. Hey, that. It's Andrew. Yes, have Ron.

of thesis as and have of move clients relationship. at beyond X you're stickier X, cohorts, services have right, with one similar a So look whether we kinds different and absolutely is they you sets clients X, at service, Yes. your look that deeper

products, So do could smart a which particularly platform work then to their to prominent or we had extent cards lift. what were around. walked the get get when our And or bill a central call think the to in that business fuel and we able bundle we cards, is around someone bundle we pay, include we'll get walk

Great, thank you.

hiring guys. up. expect curious the any wage whether more might a headwind one were or of you payments a in impacted quarter that time? just be follow Just corporate results that over there bit this it clients, have to quick little been fuel your was side could Thank to pressures pressures normalize you or I that

wage Yes. kind decent this one a lodging to group, the groups is bit of servicing refer little where size in lowest a business we company. Chuck in have earlier the our we have of actually, which

people. and responded that that I'd so the say fall were in to some pressure felt to add we additional the people place And that's both we losing that and retain

pressures again, built different in we're certain IT, basically have call some guide, three of the like in for it's seeing months. we I going think pockets. been that areas, on I digital, rest the to think in America, But corporations six and to

I So comfortable with what we're think plan. we

up we particular. our lodging that that in And have me when I you pressure were there, say on in maybe I customers. Andrew, think pick Hey of wage seen some telling to on just

business, our lodging work which can't the I the so businesses that is and had because the workforce there turn it And could to can't hire actually extent I has were recovered, and do they've small travel which down people. that not to jobs, is

be subsidies a think lot The things other and see what to there. government lot. a there Haven't the is see it'll opportunity we upside happens. we'd as so interesting whole see. but fall but aside bit, whole And into not employment little some built But and market plan a

truck too. Maybe drivers

Yes.

All right. Thank guys. you,

Andrew. you Thank

Please Our question. with your line of next question with Bob from Blair. comes William Napoli proceed a

job pieces give guess and and quarter. for business I payments maybe the some afternoon and cross versus guess, medium the border various nice [indiscernible] I color good of you growth Hi, other? XXXX on your over can expectations Ron, corporate versus in the the in term, the

the say full totalities, there's teens. the virtual guide XX% the Full business to for in high I again, of the cards, different your Bob. in that grew Sure point, And think pieces, Chuck quarter. I payables AP, mentioned, AP, last that portion

closer that teens. will faster. cross out, called partner business probably and that, to would So the grow a The be mid grow the border slower we bit than that will business

more hit and we this spend in but people, every try pieces again XX% faster? if we that or it. again, that growth we, So asked different they'd could time we money, to we don't target what a And be you advertising work. spend so hit a wisely obviously, new profit to those spend balance can grow target, Well, doesn't have then hey, you me

of in terms we again of to the productive money try spend. we So disciplined in that be terms

to think beginning you Thank leveraging those the that? acceptance versus an called card of loop Then proprietary FLEETCOR many are that necessary? open how the as you network? Is out call, there, at benefits getting you opportunity out proprietary do optimize? follow I about networks acceptance has What Is think there networks, Are business. up XX for you. your question. of Ron, fuel

question. great a That's

only So is, the of our is the company. kind business core fuel it's of the answer not underlying card

same it's college, So in super network We've got and or in of XX,XXX the Brazil. we've the a in high got here for economics hotels thing data, have example unique again, out toll XX,XXX XX,XXX lodging. U.S. we

or a don't We go proprietary to for someone today. networks have countries, to where in it's I XX know try network fuel create impossible you

our networks those remind pitch that the So that the to we volume and run I side that the call data massively that new offer account people to it them. economics the really just collect we us client advantageous when them around business to to out turn and and collect are through just we we to the and side

plain not to. access network it's basically to has on else was everyone jumping really let some someone I So vanilla just trying know people that else's that

Thank you. Appreciate it.

proceed comes Our with question your of David the Please next Evercore from question. ISI. Togut line to

little which there? seeing exceed The lodging of the forecast the through your much. years you our nice about did nicely business. acquired very of the revenue you you of are underlying you recovery could is you business drivers alliance, quarter. in versus international in walk a revenue the Thank a for then travel kind business, XXXX. domestic what for And growth lodging talk bit if ago? couple forecasts discuss And And Could some a

Charles. is this Dave Yes

particularly extremely performing airline lodging do the So recovery there, in well. We go have continued space. to some

reflective has a of bit been also a domestic of do acquisition norms for synergies, back down say to year. has lot performance International but doing well. travel. the do next of confident realize just Workforce kind versus to pretty a still that together. I'd which swimming work chugging buy, seeing here way air way, but is the room along, a recover, So accretive, those of still was recent that you're good The bit the business, it's us, come to plans and we're ALE a historic to

good. looks pretty that So

me. or In line I business of don't that terms in category, of have it product specific of front

as Chuck Ron. here Yes taught. I listened it's David, has hey,

guess, on the that are plan obviously XXs and high And And on way a is I close drivers sales in up. crazy in September. plus so the guide because XX% something, is thing that bought frequent together organically the we basis, the

zero. particularly I was plan sensitivity or international our historically, what for XX%, then a still is in that came And that Chuck think of the plan said QX in flights, up effectively from which super airline, the segment, quarter our about revenue of example, there's XX%, for is outlook ‘XX. sales

again, airlines crossing the in that go domestic QX extent the already the and to airlines the opens world on and so legs. say let's the And contracts we're back have we borders, serving

second we've a half. of little that in of kind the balance in And bit of assumed back so kind

plan. sales. back It's It's in big in lot the a airline the It of bounced big thing. it's recent acquisition. things right sales baked just So a going are There's business. that into synergies that

Thanks for that.

Just final XXXX. priorities on for allocation a question quick capital

very with been You've opportunistic at price. the current stock the

look make at to have you some When your the solid stock able the acquisitions. your versus been for thought also pipeline? price at acquisition in ahead? you You've year current what What process the

on going to what that earlier could the we we do liquidity not this price I we a elect opening the kind comments couple of we're QX in was David depending Yes deals at we but shares mean, made the fall. back that set million stock buying super we with a And keep at is my and in to mentioned the into the it of I as where decision to Chuck at in more said a billion buyers we I company. that buy things of I a this do unpause use, we're still and price only well of the we summer be. guess still buyers. we're board know price stock think have I January through I into a going lot lot But on worked [indiscernible] cash a can to buy so mentioned, XX-BX the

we if both. talk you And said so guess to you hey, see do in is me, my six months us

very much. thank Understood, you

Yes. talk you. to Good to

Our next proceed with with question of Mihalos Please a line your question. from Cowen. comes George

us for your in composition David's of from to forward if back for Hey, my last it the break to Just guys, blue terms traditional sort down collar trying us I materializes? about one, are of going in can revenue guess get now sense within I a off question logic of the taking was questions. just they for thanks business and build business that of size bounce airlines now? how the airlines of you thinking

good Yes. a That's question.

it we So details of three or that, verticals. probably three of the in do we I but have think think pieces

down. years, verticals targets what we've goes the of airline couple workforce, lines have tree owned call that crew. we And is the firm the that when then XX years which we've of in last for cutting blue gotten original So which we a business couple of a travelers, power are collar

XX% around rooms So global think the I airlines, There's the lodging crew the again, it's are of business. a world.

term nice for this like us put housing. have damage, a us when segment then off So something for in newest people water fire to homeowner, them of longer insurers basically or one into or then and and people you to put that, putting

claim the or So we bit in super the unique things depending are integrate crew into management in system a The together put traveler system on insurer. terms the networks the to the that who little that of systems we case into try different is. of the the

of And a so, all good minute just [Technical the I give say be I a number and reasons of would XX%, news is the to three to for Difficulty] workforce circa outlined ago. that relative that the a the things you are growing those kind newest again two

Okay, that's hey, me? just guys helpful. can super hear you And

you hear We George.

Okay.

like, talked are that's here. up more ‘XX, are Just it's expenses the sounds follow been we if a somewhat quick there expense transitory. on I I it know, mean, certainly, something that look at some about But side.

specific the are you big accelerate Obviously, years about a much investments a got over can how to those transformation? You've to the tech bad increase versus next structural starts some but as several think the your ‘XX as come of to of integration you back. and just costs you've debt cloud got into sort normalizes of help us transitory

Ron. it's let George me, Yes

Let take think of discretionary what about way I'll provide bit a is Chuck maybe detail. swing The expense. and more we a about, I it then think that call kind me

the out We need the management business way. big there and a So little IT figure to of and credit set think and [calm] sales like then figure run we and run a operate IT of bit and of about out expenses need people that the things incremental are And to have, then in really that. we we business the book and sitting to expenses. to

$XXX in ‘XX. so $XXX talking about And things, total those our million plan are expense those gigantic. I'm They're of called to

spend XXXX Because So really business build you Thanksgiving again, of and and by much more how the or are XXXX. thing, out in the call things, those you helping time following to do it and an IT by you just the Christmas. we sell it do the for us get board, which the year, on next thing it is XX% roll

revenue are to, that like call So to years. to that incremental message ought the that and is like some you additive made chase guide in basically the we future when that's the things the think we profit can that and we've hear we get I think we

may it we'll we depends. so back them. things profit And we'll is, don't, off. those they need we target, well, off. if If the we probably don't. go different If If on double back a Or answer down

much think haven't and say Hey, to then that kind I might, the they tell on what steering it. then are wheel and ones do we the do heard how So hand decide profits that I of our don't about yet. care of Unless we keep of those And in want we our investors me that it. kind are. with more

So we're it. balancing still

thank you. Okay,

of Truist. comes question proceed the Jeffrey Please Our your line with from question. with Andrew next

Thanks.

progress is speak leaking to is is anything a the if value I think and towards you selling pretty motion. want but fuel expanded first faster sort So all on you'd is to spend I'm trying this anything little lots here head I'm think you call to quarter solutions, to can sure margin? there about initiatives digital, grow takes expect to the current we that at should noted, be this missing which you're particular, of that appreciate of any the out added having the sure not maybe focus make you I more funnel, there in success out of in. of business just that of want this and bottom on? not I'm you us we maybe half collectively around Or with don't that stuff cards? me the interesting puts my ‘XX. sales I now and squeezing platform thinking Ron, should wrap fuel But bit beyond

it super good little wobbly depends. a question be answer my a would And It's Andrew.

has to up would different incremental And say we served targeting company, I and have, direction of because we're for be going appeal is that it'll we're products what differently. So it effectively this potential the a of integrating the today. repackaging it'll businesses than enormous, bunch

So we of company. something that for I'm the that we're that the to opportunity built trying the The leverages years of to message is, we're of make over to kind first a XXx selling on get to XX say capabilities we economics into. that is getting the just a be everybody function it's profits going which can

things. said do of that what two similar these look We I history say, know do great don't answer My you experience have, of margins that because three And you and curves. know statistics. platform got how or know of the can probably me, for you some the of answer years? kind hey we've and we we the if is in So think will would to set produce. businesses profit we we pretty

to margins. line things I then And accelerated there so get ask continue find call. really conclusion, hey, of when see margins, be but And to the if we'll a smidge rather if and by kinds too just that would we sell even worse, that's growth slightly you at of at see you'll people, kind those average early similar would it's a not, revenue if bit with a think lower

theoretically bag about to I Or this a businesses up, this at of then really follow the of or a kind helpful. philosophically do some point be to just in? good simpler? like That's Okay. get been know business all years? is And feel you'd the over mixed you sort you're

Yes, great question. a think we, it's I

expenses we opening talking on we these spend, for we And try the we have it. say the great about we created to in like company, we I basically point, vantage or for it's think work people and run the company, made reduce that different you old, pay buy we stuffs. try I what that way they When around sit what idea to their of the remarks just the payment in businesses, it's the control to they really and of, and programs my it's their guys work the it. pretty and we simple. and

control. it whether or that super trying So a a complicated we've it's for or business lodging made it. fuel is to we're pieces do room business or like spend seems card that ways like us And vendor, a a spend looks to all the help pieces reason expense specialized it

the a the got think. think hey back your ended detail we've let everybody we're I line, on how up the I generalized me you provide tell and use talking about look, to versus and make to hey, we kind of a just and get we're everyone, say, So in to if all we stuff. I point on we've got to off we like spend whatever. talk super expenses, lodging stuff and start we super sauce a need, the maybe more payroll secret you going about that can marketplace, of special of help a you less little trying And And kind see bit let's non what's little got that we've your sausage product help simpler,

Yes.

help a I insightful, thanks. think that could lot. Very Right.

out basically We to print the we figured copy how perfect credit how or through pivot that We a get out figured system. how we stack. whatever, We things the out out we We've to we digital done bidding. how tech instant. other so is this like the to We how like advertise. figured out using everywhere make example figured into a build the made to have. company. automate in use figured that Selling businesses and to applications processed many We can

that so we have And more and the we this same may more platform into you'll platform the you'll in to see think us people the I different. see line, tucking launch see as things of that of they

forward that again. I evolution. you to Thank Okay, look

Yes.

You are welcome.

next Instructions] [Operator line with with Our Autonomous Research. of from Suchoski proceed Please question question. a Thank comes Ken you. your

up wanted taking Thanks of to question. evening, EV. Ron, follow everyone. some good on I for Hey on questions the the

in mentioned remarks services. EV I fueling in the that prepared think roughly line with are you traditional your economics

you what look EV for on is insight can revenue like the might economics offering? neutral. It's the provide to that the transition some impressive EV So

you. Thank just I'm what's that? So driving curious what

pull EV further ahead this a a the Ken actually Good Hey terms I that's little Netherlands, which in had question. country is And in our Charles. bit data the analysts UK, from of into let's categories, there said, those a only has buys two clients further than have fuel, we And split XX,XXX it is clients. the group okay, that about no U.S. EV. we ahead And migration

internal combustion clients XXXX of ICE, XX% you and are fleets. fleets. about mixed only, then what clients So the about is tell engine And I mixed

got larger. tend they've And both types So to of be vehicles. they

enterprise moving the level So clients are faster. even

mixed only look of the which provide fleet, only about we fleets side. fleets go ICE on networks, there at out they EV fuel level receive those cards or fuel So XX the per per rebates vehicle these EVs account versus fuel, I Whereas reason we slightly revenue when get account. the cards per is averaged that the on them, enterprise five are give it's about part on to vehicles actually mixed the clients per account. reporting in we which the fleets, When And that don't actual higher.

to so on and economics neutral side. the actually slightly be And the turn favorable out EV

And EV per, over that about XX% XX% so EV of without is Out got level to about I tell getting for cards, too there into they've type specifics XX% fleets. revenue already. mixed you client higher would these

accounts and moved why seeing they've just the gives some it's of size comparable. moving how of and there here. of the of are a who's points But relationship data kind we're sense you moving, real that that far economic kind So

It's super a Ron. it's question. Ken, important Hey

what Chuck just So on said. let jump me to

in maybe EV the a plug that, to business was moves there when misconception to free. So me a and massive everything's hey,

tough, [flee] So days. goodbye, tough

things two I but not costs the more admit vehicle the that some But markup when huge to you way ago, versus MDR people recharge EV that one, clear trying is years can't are was because it thought are a dumber. for There build people to worried two things than I So way charge I the they're was up higher an publicly. obviously make us is because volume. it and do electricity, trying like point when the on to money it certainly

and fill to five it only misconception bucks So costs up XX a the first oh, is van to recharge van.

all then of thing, which is the that not So that's to we most the is And home. think happen recharging at missed true. going second I

So there's only not millions of in stuff gas charge points we're do that at the business today. We station.

recharging to got me, reimbursed. the And of and my at where you it's most going And home. go, are those God two be measured oh, so is the to to things happen

it. So who's going to do

people's started all just I so into businesses think this that heads them just than the helping concepts more is they coming thing they think more thing. to ran it's different those when in that guard. in than want the There's through, about stick And going cost from money their to Chuck it map [indiscernible] I and thought the

Extremely appreciate. you guys helpful. Thank

proceed Our question final question. from the comes Please line with your Morgan with Stanley. Faucette of James

that phone. cost my that of least think, the just expenses that follow highlighted minority expecting should question ask I versus to for are strategically people of we what made, with in potential up with to you directly associated and conditions my significant the kind road? as wanted just to under relationships the on investments But than on at that how contribution and you're to think to you've case or What that be investment have you made why talk minority about you about trajectory and that And may mind fumbling Hey, these I probably about those down can acquisition? managing more the imagined. sorry lead do FLEETCOR.

James it's buy. before It's It's question. of try you good a Hey Ron. kind

been software is stuff. we partners on working we, out the couple is new. and of hard today pretty So that category have There that call

the state kind roles give of money for a us, it's to them that no-brainer kind commercial agreements of we be So them, of to supportive companies. to economics keep have, build. the the And two obviously, of

integrate we here the that in it got of have. get like kind some, And And we We've been Europe, We off some working people so, works. people have a U.S. into it. go. been on and we on product working stuff it we have the in

the focus still super we stuff, which options on the want to these looking that down lot the including were is obviously, geographies offerings to we're super the can, other dialed a they extent that deal, stuff are still we trying more would partners. what into look value clients the to other learn on products, them. is at two can And thing need screened make so get of then I sell have chain, road. that clearly mode for. to the and And and with we we what liked the partners a said trying those in We big that in and Honestly, sure initially, the we're want but exactly that. software and and pleased We the to are

we So we out clear. were our want before didn't to skis get over

saw like seeing color just of and sense. events. you measure wave then went where there up, makes That And rate Omicron strength as are on recent sensitivity to give just hotel If at the and in we as quick the on Just impact a Can and follow to near recovery little a what term lot you're bit things was about talked you've a trajectory? the you there? we trying through we an travel. a us run

good a we did reconnaissance obviously say, question. our I'd of another and of January Yes I Chuck [indiscernible] with folks. bit

more again January, for and we in into think but anyway. a pretty I bit bit James December had Europe a soft a it's exiting us month

So our that the kind or that today [indiscernible] say stock had have away. [major] the going into called of rolled last eyes things obviously, we've time. week we over two, we've recent most I'd our impact the And whole guidance

beginning coming So it's them February. I want sitting reaffirm give bit here ‘XX where here into sure just like confident a numbers over I we we're it out to my the of them pretty that for in to and skis we're full clearing but want finally feeling get don't a again,

for That's all color. great. Thanks the great

reached end and and conference. This Ladies we Thank of to the answer gentlemen, today's concludes session. the you. have question

make a Alex Hey could quick comment. we just

Okay.

technical the on super Hopefully want it just We the to call to for out. wasn't bite apologize those confusing.

the we the and appreciate So always interest support.

Thank your disconnect Thank wonderful and lines time. you. at for your may Have participation. concludes you conference this today's day. a you This