Corpay (CPAY) 6 May 222022 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to FLEETCOR First Quarter 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the call over to your speaker today, Mr. Ron Clarke. ahead. go Please

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

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

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

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

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

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

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

second, So rest our QX; of first, you XXXX on lay guidance. give updated take my year out

And some happening I'll new Third, you on then a some things give our business. I'll good brief company. the things, share update Russia lastly, in

Okay.

turn $XXX really the reported results. macro XX%. beat great XX% million, in revenue really, came up QX with EPS and that of $XX We guide midpoint to QX million our Let our of Terrific about only $XX $XXX me million Revenue above strong, performance. of make related. million, very up cash

overperformance good Trends So our a of of quarter. the each digits. in QX, and XX% double Organic business fundamental all of very X lines we growing Sales in lot organically growth of digitally. QX all fuel to overall of excellent. new us and in clients the our for about to new versus last fold, over sold came year. up XX% major global QX, clients added card XX% XX,XXX

plus revenue sales of healthy quarter XX% sales the for retention Steady terrific a and at So quarter. same-store X%.

So right. performances QX of recall. really X All quarterly can best I that the

guidance. to shift rest of our me Let updated XXXX year

rest year. we're a mixed macro expecting the bit off, of First a So of

the record our levels. positive prices spending And are we clients side, Brazil volumes. at on rebounded more, see So the the some since which year. has start currency the in the healthier, can of Fuel are

has likely rate year The on for real the continued we year-to-date. interest bad higher Brazil quite of pace of to not-so-good side, and the hikes be think, wildcard rest the FX expense expense. On looking higher depending the we're volatile debt out is really the

enjoying We've volumes. steady got we're sales. record strong exiting We've retention. Fortunately, got healthy fundamentals got We've QX. pretty

up well that for things the rest the all for So of us set the year.

as So with guidance our we're full that, revising year today follows. XXXX up

billion million $X.XX up midpoint. and the to of revenue initial $XX.XX, that's up EPS $XXX That's cash our guide. at $X.XX So from

a XXXX today days So than XX ago. we year had much stronger full outlook

today's imply Assuming year guidance, growth we achieve growth full cash it XX%. and revenue year 'XX XX% EPS 'XX full would of of

years with remind about would So versus which XX%. compound our back-to-back million as and print. that be COVID guide in to are FLEETCOR to $XX I still in expected revenue do the meaningful outlooking QX QX we earnings up be through the sequential everyone, XXXX would year by XXXX, we post improvement want run our

Okay.

Let gears Russia you give just and me brief our a business. on shift update

you Russia by the that part a revenue. X% about I'll start company, represents of small very reminding So of

stand-alone, employees. a local Russia approximately about It XXXX is on annualized Russia will in and EPS. million The business So $XX and about a employ revenue we very cash basis, contribute $X.XX XXX pure fleet business. in runs card really

imagine, our the actions As quite take busy that start We've taking of and complying have. We're cautious we the the derisk business. conflict. with being been sanctions, ever-evolving continue the care options various employees. you super we We've certainly can of the well-being weigh been since to we've the been of to to

situation updated So you as continue evolves. look, we'll to keep the

Okay.

company. some in up the things last like to that I'd through run good are today, happening So

first, wins. some So new

we've new number fair a and notable wins quarter. client renewals in of So got the

weed. Amazon fleet America partners us, couple a just their contract one the piece of in our with has extended North middle for retail which relationship business examples. that. in won the of mile recently region. with big like trucking pretty Australia, business So fleet, a leasing us us their Speedway, delighted Eclipx largest awarded of a We grown

opportunity in toll of we our corporate our add-ons we're front to our and really progressing still We're products the base, our cross-sell cross-sell, selling card like fuel Second, exploring us. customers. into payment selling

so add-on reach well. transactions the us selling now base, our selling We're fueling million progressing quarter You've We in even quite insurance X.X about talk lodging. to heard fueling. testing also total customer and did

on have we revenue about going our new We've EV we beyond the have, use talked incremental generate segments identified previously we've think to serve repurpose revenue now we're fleet of the EV, customers and a to our case the like assets and customer capabilities offense. a that can our fleet protect couple and building network Third, we we business.

new So of potentially the off-site goal lastly, some and to annually the energy forecast X set -- had last off-site the period. billion here we incremental growth revenue month within transition. upside our internal And of business selling meeting

we've billion credit capabilities and set TAM we the to it. now to the digital $X So the pretty product in we to excited built do have marketing, new underlying We've and it, aspire and think -- to concluded business. do

excited super about So chasing a number. bigger

for taken us. EV cross-sell new together, look, pretty more opportunities, So selling and offense wins, on exciting

conclusion, just thoughts. So today, look, a final few in

QX one, So were terrific, our expected. clearly than better we results had

much Our to things ago envisioned things, rest of XXXX of XX in than happening new lots performance and year be days the better or we expected full year good company.

So good place. all pretty all, we're in in a

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

Yes. Thanks, Ron.

into tried FLEETCOR to solutions few the the aware reduce about digging talk the of results, all weeks a to help on deck spend. core, sure to website you posted At investor company. that corporate there, ago. were a payment make before So we new In its businesses I'd how provides our we simplify set like we financial of

X what's online in We where comes a and it and pay, we bill do we AP AP management, payments before and have outsourcing, this call lodging; purchased. made. few like one, We been expense in ways: cross-border. but provide their the by enabling fuel, controlling payments businesses this options Or two, after call purchase, virtual the enabling such make flavors and by have it as cards to payments, tolls the Now controls full

you this X way, in of management does really different of couple and think ways. when AP it So company a the expense payments things: only

at look So with the detail on quarter. that some more context, let's

an XX% made X% mentioned, which Ron the $XX of to a detail About quarter, XX% we into growth I'll XX% get was $XX growth or or acquisitions from posted moment. million last came more including tailwinds. year about organic and in growth, As million due in macro impressive we

macro, prices levels. $X.XX on than revenues $X.XX of million additional of were higher the based our quarter, fuel $XX assumption year. January for prices about Speaking prior per fuel contributed versus Higher gallon guidance

around movements balance of of the million due exited strength had we fuel gallon. lower in per European the negative rates quarter we spreads a positive more the will over about Brazilian the fuel with cross-border affect our at offset the We impact quarter prices $X.XX year. in million, total unfavorable a business, revenue. as which do Now and and helps some Fuel think moderate currencies, this that reals of had our $X $X foreign the than exchange to impact

payments. AP with starting growth, organic to moving Now

continues normalized again, acquisition. in that over a up for up I and on last activity across this, XX% And continued from X% to strong yet strong were led was the organically cross-border by business up and outsourcing, Australia. broken sales results to year fantastic that's Tolls see which XX%, payables efforts corporate to continue with recovered sales business. had drive remain customer like AFEX Our up the of acquisition record compared performance. to Fuel our digital full was quarter XX%, the as on new great X% but driven and by sales. higher new may was management as and growth moving XX% continuing team The up same-store this and AP solutions. of marketing were expense new sound Cross-border to just was sales our perform. XX% XX% a we as

be competitors. highlight well, differentiated XX%. initiatives up are sales continued we New too, to perform showing value proposition quite retention to our we versus offer solid and effective are as Lodging the

sales has company. with and announce over in organic we to airline deal higher sales our volumes. Our improved platform believe combined quarter, software vertical. the we lodging drive an our XX%. again with financials, workforce airline with the In lodging the immaterial growth the purchase outperformed of new will but Levarti, software, did Airlines is solution more business The better

returned realization of increase out negatively and bad We loss spend stock due new company swap to coming the revenue the and debt margin. have expenses as higher as acquisitions. which EBITDA margins the our deposits bad and result January activities margin decreased and historical to a basis year, Bad driven higher ALE the was sales, fixed of effect sales year with debt took and to statement. $XXX quarter stock Operating drive jurisdictions. the or of that to and still environment. benefit of with the along This more by EBITDA from across Now impacted debt a to operations, levels increased growth generation customer stronger as original increases tied margin be expense and balances businesses, represented prices year, COVID the the of income investments XX% stimulate the have certain customer foreign compensation our expectations as higher comp growth. $XX.X increases full was actions in volumes throughout in our XX% expenses The new income looking of higher and much bad tend with was higher expand rate. Interest fuel year-over-year, X over earned expect as in debt to million levels benefit million prior AFEX further of as incremental expected points the a addition down future largely to XX% XX% in a billion primarily on growth $X synergy the matured expense rate interest cash line of

the effective taxed foreign stock last on option exercises driven deposits, excess XX% rate tax was less quarter interest XX% and are increase at benefit tax with year higher income for by a rate. higher the on which versus Our primarily

balance billion turning $X.X $X.X There facilities the $XXX million facility. and outstanding our had revolver. quarter available we sheet. to cash, Now on borrowed our in the credit on We in over with and ended we our unrestricted had securitization billion billion $X.X was

billion still which of year we our to million we of XX, of facility credit pursue that under place roughly we full M&A have we makes as liquidity to to the the higher guidance in capital ample shares securitization in continue of has XXbX covered which X.XXx billion and maximize $X.X repurchase order agreement. We X.X authorized included that original funding due trailing facility our have had our in is We and in when quarter, use that shares, As back March our it calculated completed any our In January, sense. repurchased million balances were We accordance opportunities Ron to EBITDA cost to instrument the believe in receivables fuel with near-term was updates. upsized and we leverage guidance. higher accommodate intend $X.XX were prices. XX-month the adjusted X.X ratio given plan have. it our buy for to lowest

QX some So assumptions. let share our me now thoughts outlook on our and

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

next our at are we levels. $X.XX assumption to our the of and This guidance using we assumptions, respectively. as quarters, fuel price the current reflects $X.XX, X expect Clearly, $X.XX fuel fuel year. rest of Regarding the remain for the prices for don't $X.XX prices elevated

basis of So our forecast. we're curve using as this forward the

through a LIBOR April of December. guidance expense million interest basis of for is to of Our $XXX off points average XXX million based $XXX

of do and from year for remainder per had $X.XX, points note can in and our our respectively, and revenue supplement. period. guidance the adjusted found include our release that Our expectations earnings business press LIBOR still basis our the for $XX rest are year. million Russia, The share rest I would XX which be of of same assumption in original of assumptions fuel that

operator, from employees will start fantastic us the the for thank line grow helped outlook, and a XXXX who to be results the for interest force our to And questions. and who your XX,XXX away world circa the you I'd Thank open FLEETCOR. like as Moving in our driving continue company. we deliver to we'll now around

[Operator question is sir. Tien-Tsin first Instructions] from JPMorgan. Your of you, Huan Thank

It's it's the really beat Ron, to like ask fundamentally you I look here. results macro speak the the as nice well great about both think, and maybe, guidance change, to talked guys well. it I'll and you above looks and

for way understand whatever just full cetera, there much break year. to better? to the the is versus million, up performance better underlying fuel, maybe et is that of that the for So $XXX a what macro How being us revision is

Tien-Tsin, hear good your too. voice, to

year So million in $XXX health. $XXX $XX million QX macro call X/X simplistically, of that and the X/X the of million would be real performance, rest

us XX%. new sales. Got perspective, it. stressed new a And think from rest said of you the to the but basis? you I to X thinking heard sort of the about and I you've about your productivity always How of I next that thinking on you billion Have And comment know upgraded earlier, sales thinking the then importance on your the sales X targets? up have year? changed just for quarters, driving

question. good Yes. Really

So interesting in think yes, the obviously that's fuel fleet fuel from on in higher MDR, the And us particularly but right, actually you of sales. perspective, revenue that terms the thing they help a is prices side. help

level about volumes, was came So search normalized guys I literally, it was our the said of were of kind a down and digital it think period being that in March, -- the the inbound. kind running of volumes Xx

the up and So taken we've year. rest that good business in super were our forecast the QX, in sales of

business, sales right? obviously, right, If compound So it grow it's we trying the don't XXs, we're have but repeatedly, If to somewhere indicator improves, and in best that the accelerate. for compound will that go can number to the right? revenue said again, again, we the double obviously, revenue single digit, I get when

next of is Faucette Morgan Your Stanley. question James from

Goldstein Jeff on is for James. This

actually to upside repurposing just energy and of you to revenue little ongoing your seeing needs that for the go You EV on upside prepared what some from that assets. Can your talk right transition, possibly were about see revenue about transition? to in about a remarks talking given you expand

Ron. it's Jeff,

of Aha! then all sudden, until say segments and the interesting want to building, ability focus very there network, a the customers current our we this. too the but where public have. A, that likes has acceptance taking basically ability with don't fleet and assets to the other particularly of settle what was I X getting data up we prospective And our customer serving we're were there. a I'd customers And or whole fleet network, capture, or X to recently, been moment EV away, give much right, stock So the the

headline. in fleet And so that's need customers the kinds that help EV. of They're non

that And And one a other. target we sitting to our supportive think, so assets build transferable then M&A pretty our there. would we interesting for that, the be purpose, got b, we've of the pretty pipeline actually are in that accelerate would that move

headline revenue. hopefully basically and So in the generate opened is a to real the we've people eyes our just greater set incremental to of ecosystem how serve

Got then within range it. competitors set? opportunity Just are just increasingly And about the space, that particular that anything of thinking call How to competition the there? competitive helpful. investment corporate I to given attacking ask and you wanted That's in payments. out in new about landscape

Yes. have I headline theory that but doing lots I on the of is that A, disruptor mean to the I lots the than you what the guys fundamentally banks people so new X% payments there's call nascent. business. theme of have new know of, TAM. guys try things, is some just most less which the that's And one it's new Where remind and of that corporate have us. that Jeff, people, true, we it's of that

set a of the is it's a it banks. digitized with to held So payables adversely get and basically it's -- massive

bringing provider. that are the for it's is the too. competition But frenzy something other people, get the current the I all of that and food, current can the so think something real the multiple it's -- new us of are And really for new us guys

it's So us. super wide for open

of Sanjay is KBW. question Sakhrani next Your from

related or to factors of macro-specific ways region, What's the a mentioned sort you from go. country? can the of number in see it's likelihood negative meaningful other we operations a discontinuing there's Russia whether Ron, that hit

doing things, uncertain, is as really right, all imagine, exploring lots We're say everything, selling of that it, you I'd doing to of going right, how Ron. transferring it, can it's bounce. kinds things. ball Sanjay,

think circa ballpark, $XXX I carrying around books. So we're on our million

the there were loss, was the some complete the ballparky to So what shuttered and of kind thing that number is. extent that's

So some a thing mother differently and look, where how ideas We've I cutting the obviously the go. got back to going ship. to with don't of obviously we're running here bit it's business ties know the

here. and and steps the of that to there's business the going it's obviously more see. wait explore continue And buyers so whether a along how to see in are just interested really honestly, We're conflict

ask significantly. how And Okay. Great. not mean, to you in terms really the help to? have And I about areas add because do feel backdrop so want but I come can't you'd valuations just M&A in the interesting what's question, now? of

Yes.

think got it's We've I working say mixed as And no what pipeline, say. is X Obviously, things. a run I'd always or through X today. different those. we're I'd I

later them of We watching a stage, moved groups. lot. are out today, point comp you like haven't the even of Some sellers some the some A, of

kind think, able I’d going put, like in so a say people see And negotiated, months, I that we've things And wait work are if last come agree things newer the some of stay us. in prices we've to to let's we of of there's been say back. couple maybe for that that just I'd say, to couple then to

some everybody kind say, I'd mix. So I but think but it's of is people interesting, reset, it's have. Not

Ramsey El-Assal question next is from of Your Barclays.

expectations? question Street right What in the you What just just number to the number came of think your that do about business quarter corporate It payments. I kind in a in as lot well. see working now? a even and own higher general versus outperformed than really is wanted I our ask

it did for business. bit talked sales in base good. I there purchasing, some in Randy, it's what have travel. the getting I'd call of know there. that of but the it a of if healthier. say a, a in but before, some in everything We recovery The clients business up And We a multi-car we out about only that's not pick sure, we Ron. we get called were don't bit does

cross-border AP thought. And amount quarter. in warring is better Mostly was the long giant add-back. decent we the thing Australia. also eating that The full cross-border others, business, some plus ago, was a still like business of XX% despite not we So than got up

really And is super it for when So four markets that was in in one which ditch -- the of business in ditch, the originates I 'XX. us, it mean, was in I Australia. say

again, say, in I'd multi-card business really really, super-duper it's of some the health sales. Australia and amount underlying in across fair So border then just

kind working all So of there.

you this wanted what sort in working direction? too, of is in important. Or EV or is create seeing is of you, is the and the shape in it it's but a I shift to an seizing market of to bit a response comment question? see in customer this it's market opportunity about to nuance, way reactive because I think you're Is starting opportunity on looks this you're evolve marketplace okay. a there. opposite of the that and in there, And more offensive ask drive of new the kind to the like in terms Is sort strategy the of -- -- fleet of well about going the this in kind kind direction. your on of and All a sort the to revenue a This right

Yes.

think I Look, it's it's you as super guys duper early still know. , side. opportunity the days, it's

we've bit couple so stuff kind of one serving worked stuff. We're can of network things right and this of contracts in of heads stuff," then are the good new are preparation advantage non-fleet to make have work, it and new years. and poke too. up of that needs help moment. reworked those me fleet don't investments. minute at on just we I transition, that take these a couple us, all we I -- customers We've we've been think a wait of trying it's an a also a stuff? of that's on someone bit, their deal we've doing of a here, clients found like out ago, a created, combustion. kind and idea where So all Aha! on our "Hey, assets once kind been our wood we everything had need we why go, Aha! shame you of of look as system And a I’m for the it mentioned, on just But and was EV honestly, few was We've think being got why a this that we've combine a doing bunch they I of months given shame we and those like made building chasing

And which event sad to it of hold early we something of it people fleet and going but on built. to so it's most something days, of hey, they holy right? moly, a is maybe beneficiaries new goes time going business, for what this slow, down, much so think or way have be of faster, In duper however goes to hedging, it's other the bet, that look, they're we go call because in, they they're super Hey, my or all fleet instead goes, If actually their of thing If it up. that goes goes which, low. don't our could again, ticks

I'm So like, can today wow, And appropriate be obviously do are upside. provide we're maybe Yes. customers about here way what why we're But who net people excited more positive? say trying to are it. going info on is. what we're when saying it's I'm be those it That's and super it a you, going could telling to and literally you

That's great.

it goes. way So laying but groundwork still whichever quite early for days, you're the

customers of up turning the and the Clarke's thing in brain to talking Ron out mean just from these on I loan the is I there people. things. the night, other there's some taking want us to hearing we're actual And make prospective

to So you it's hear. the which real, sure is thing want make other I

question Truist Andrew of next from Jeffrey Your Securities. is

Andrew. for on stepping Gus It's

of higher of well? helpful. very the parsing kind expense see be Just client because go seeing existing some look bad sales. would debt that base at as the new is as Are happens and to And you that kind that, the cycle you're rising you balances? reflect Just that fees debt with bad we commented assume to safe expense, out starting and the up of you late overdue

is This Yes. Charles.

prices, default So years, due okay. bad tend in at and sales And prices higher, a higher balances, yes, customer have of unfortunate. right? to came much new tend for default, of they right? they part fuel a you us is that debt someone stick So higher fuel higher So equal with they once that's we yes, if couple underwrite to rate, be to

though, do see year, we higher losses. The first

record came So at of XX.X%, sales will sales the QX quarter normalize But year, will that. of course bit for this as some this a debt the year last driving and a do bad year record also in of continued We throughout prices little normalize are in that down. think fuel it hot.

path Okay. following force Helpful. sales glide driving of And productivity cross-sell to terms drive into of efforts we the in up, to I the about ask where want Core and are fuel?

I of you the was the Well, what of part first it. question. first the just again? the first repeat part? missed the part question I missed Can

Sorry.

a to Just we of Corpay. and kind cross-sell about wanted guys where productivity little sales to are ask driving you in force talk glide the bit path of

it. Got

our is can we absolute my and It's we sell list take efficiently an just from X rate, numbers me the a leads obviously business. let to So first first, profitable and perspective more sell which list more X, on can X the sales and sales part it the profitable product.

So it's people have assets, we help that long people-based I'd the seats and so productive. more they X of as a aging right people really things say territories huge in or focus. get our our and

couple of strides So last the the increasing huge we've made headcount years. in in

who bigger how in And of match to that benefit gets, right? to we're basically to it's now and the else. and from getting reactor, and bid the breeder of how business some the the digital front side. people smarter So then side, everything a we on aging bit The a put get at of

keep getting as basically, so because getting the Googles keep people things. at smarter well, index we stuff, more know, getting and you business better have that that And effective as we keeps successful it

So to or selling organic gets portion the portion extent that we of get higher. better free digital our

more of of the And than positive. all other super that people inflation bidding is so

land, sales we're So attractive cost also not production only well. are we in sales in of as of super a record

I the solution I kind the the part in -- Corpay we second of XX think until put in. the paused Corpay the selling I question, payable of think cross-sell, I days, we mentioned On mentioned the platform last

bills." to So of us. when Clarke first us, we went is you thousand giving else. my what a new was is, and a we hey, accounts card started by by put way, too pay you other you how guys we're And the bill, bill it. much, it fuel you're bit we so to found pay doing it like the out Ron can and your cheese maybe way said, pay some you to And put now here I And oh, "Hey, we something couple pay the out moving

we in on do of make the to people go comfortable able in sure plan thing to And so this to platform back, which QX. are then pay being we the platform this us first basically put quarter decided do in new and

I'm update next terms for we to stuff hoping speak So have demand a when better you and of time. in

America. Bhatia is from Mihir of Bank next Your of question

some chatter Are trends? what few are Any driven? what you Maybe Can April I'll fleet that. and fuel been looked holding in a of just the start little commentary up things freight business. like about just a around if just nicely? miles talk like? about seeing you Obviously, in with fleet there's recession April terms card bit those But

Charles. is Yes. This

supply as a you driver we digits. we low bit say that single truck little business, hear trucking, which trailer big I single shortages bit, see in mentioned, business a little and/or with But of over-the-road our to as what now shortages. some both deal is related softness chain the when would So it's issues, well in like

there, softness little bit a but yes, nothing of material. So

it. Got

Okay. you you growing terms back And increasing. segments your guidance your the fundamental to the there just are And then obviously that in of like the did it expected? first million, -- just followed about at to faster of think think driving expectations in comments I wanted and than than going be guide I $XX the growing that quarter, $XX in the terms about to is -- of be Are excluding today are million. than start just particular go grew fuel maybe it I other macro Or the you year? if improvement is right, had faster that the increase

Okay. Sure.

COVID, the space, obviously, terms lot come will of help back you macro and in expect terms see of in business. fuel pent-up of demand will as price travel most in seen benefit lodging airline we've that inside for from of continue of the the we lodging a also our So there which

lot we that of expected a business sequential in So in have particular. improvement

last my just then And Okay. question.

But sales the the or they you the the or increasing probably just a whatever just bit in you you're have terms the some credit talk how mean of can might fuel used of productivity that, available to up other because side coming higher used Just you just little -- of line on borrow. because pay to to force method other looking they managing card about stretch right? prices. folks just existing their increase are to of mentioned inquiries of I their

about of talk that? you side can just how you're credit managing So the

Yes.

cover their someone And we if an and regard. underwriting of them. folks we policies amount we'll So such. -- to and look looking then underwrite up, amount. come of all increases we underwrite in lose ask at taking a at as full will a do a share prices for wallet go And and and bit we're volume, can't that we when new, are Generally, we're

It So is it area where we such. do quickly you and can watch quite closely. monitor spending an levels

performing, to when are So fuel a their be they stable. good on, volumes we Are comes get good? tend someone sense they pretty

more as cover an stuff I early if the with prices so they're them. straight strict There's what amount ride off you long us comfortable have with while, as kind got, the new in bat. we pretty I of But for feel up a clients, and great, to can days. the it's we'll wallet share a And to for will can't,

Ron. It's

that add we Let the business, me in fuel the cycle. works other on one card just which changed is trick payment

it's and out not getting as your lot screening digital So we're point, well. if to a stop of

Our rates as aren't approval good.

daily can it One or of move to weekly, we is daily, the like business, it X. move local effectively in a a things to weekly do trucking, net

usage payment are fair onshore clients because the do stuff, of business of the and a number So and in that terms. have turn we kind of that

we but minimize, way that's a basically will, occur. obviously, on basically losses bring that So to if point to Chuck's could customers to still you the limit

comfortable prepaid. where don't feel push into we'll segments we In certain

Jeff Your next Cantwell of question is from Fargo. Wells

the have me earlier, for revenue you this sort maybe I are out meaning here. dimensionalize thinking us how where but sort giving And for you're the they and in us segment could talking results color. them? of into of goal are why feel call. those join And cross were allowing even about framework those to would cross-sell opportunities Maybe Great developing, could it. in Thanks Appreciate a ton to model. you dig you sell, somewhere be some our for of about my to guess fits developing?

want for if seems appropriately, I about you. So think to we cross-sell like nice it just opportunity can see certainly as a

the sure I'm Yes, thing. whether I is this wrong, not catched much

You're we and saying, opportunity. think company the the about Hey, do how measure cross-sell

it kind we that through of we area. think I by run go area

is So in our cards, payments. idea fuel corporate

travel, selling sell I We're companion -- X.X BillPay starting mentioned in In sold to buys added I insurance. quarter. In selling in client now the cards So same kinds lodging before, lodging allow other that air that million there. fueling. we cars our not the business. sell our or we've to we're buy of mentioned obviously, it's lodging. transactions in there. business, we generated total We're

kind add of on to say products bigger millions revenues we And spending business and obviously, say making we've billions. have gotten hundreds get us, payables every what I'd that platform every -- of the interested. out, hundreds people we most have so are back of guess good we look, in the or we we're on XXX,XXX Jim, of them. with one the people pretty products if core paused did So now I progress to sales what those it's in related taking up interesting report have. we're to have could group those because now, more we I we virtually pay customers But But first.

opportunity So sell to products we got back. plenty of

quarter? color. your any could provide color then wins, see I I ask about before, year to And them? new how you could years, think Okay. do guess, if same did That's this you clients great And had new you the many you you for might versus driving now previously. about on back winning out you're if what think the the stand last you is does why few anything

us would And curious great be, as are sort that the you they dimensions color. of if Just give I to some well. follow-up would be sizable? guess Any could

Charles. is This

the think on wins. client you're new So I

XX,XXX we new had the them of lot of fuel corporate digitally tend the more our sell base. get the mid-market. arena, payments do A small, quarter, clients. Ron think we I in mentioned in When in lot acquired, a be to them to we

larger are they clients and So such.

in. on such. we So it consumers, lots the business and that really depend of tags you're sell does Brazil, In

So it depends.

selling or mentioning that's We individual a that yet. opportunities around are to the Ron was still prospect in the the products not before really main And one is of bundling big platform.

as we additional then build So haven't out on that has turn Once sell the it. been that in in, as But it of it doing can we functionality. products platform we and people then late. multiple

performance that So really sales function channels. coming a is lot and of of digital new better just a a wins you're through lot seeing the

And results. on Okay. the congrats

from next Your is Pete Citi. of Christiansen question

you out some here. card fuel in here, results some space called really Ron, deals. to Great the ask, Wanted large nice wins

you these looking Are out quarter looking activity the you so, area? healthy Just next in maybe color that provide on could how for you're wondering some days, if activity large seeing seeing deals. RFP or

board it's the think of accounts, or through run and new which partners, they anything, -- else, I'd we call up. those I'd come cycles, under call the that larger run of our enterprise say, out they're us say don't on take because someone the out that in the accounts with names. I we rest had ordinary, and will to they Pete, contract Yes. XX,XXX with

And or so I think, newish mentioned. that of no, stuff that I no rate. in do I that like some of think Amazon super kinds kind there's change, different thing

So the EV kinds side. little bit a of there's a different same some players on bit

difference. that So be would the one

terms the business there of I it the is. just out think of some in that's different a type is little of new bit business

macro flow upside utilizing Interesting. of And just curious prices, the marketing, activity that variable line. you've in thinking just getting been like spend, you're more to inbound was of that, some spend higher general, versus but lot more then perhaps to with of terms letting enjoying? that about how things the dedicating digital fuel in Obviously, bottom I you're a some

you're at thinking differently juncture? if your Just anything there about wondering if this calculus has changed

good Yes, it's a question.

So I'd lot. say a not

we One fed of couple the is will. already here reasons. army if a you a bit, So

get sales -- year, the a this at normal, more I beginning think profit and gave that we in could than we target we that growth IT. said particularly because expense

the think initial shift planet, still of other the and X/X the I on one, of it. in can is, some. decent amount us So don't guide and guide our has the around I upside planet love Two uncertainty being refactor

was so because sales, we that step month?" way the digital that for XXX% one the one you I would this and the reason would of to the be want walk get do into it's market, with some you one head on quickly, my the and area. I in do build gas. to to the Pete, another "Look, the in and getting So I But Unlike can so a can down digital is million say, other selling. that take spend that area and be can't. it million, do where would things, because twice longer we're area, And $X prepare plan to and #X. would it great things money to would guy spend be we which is, future you that, office bit the more, that the like spend would It hit you can count And $X say don't on, right

Your next of ISI. question from Togut Evercore is David

I have X.

were toll business, tags strongest in corporate possible verticals between growth what the within contribution the growth at payments, growth. question, the going forward? quarter. looking growth based you in looking transaction growth kind corporate And the of business would talk signings and the could in be payments new saw, when the the verticals XX% expect the of XX% you growth Ron, what that that it revenue at And is to highest to on down break up, second First through you the XX% then tolls then

Yes.

So David. me from hear you, -- good to anyway, let

So let first thing. me take the

to I customer or to you're both. let refer the but verticals, So try when to know you verticals referring products, the if don't me answer

we product the grown full outsourcing side, on AP obviously or what full going the It's great. of is line call So kind XX%. over

So our obviously, of which sales. good you line the also news, the half average. well it implied above represented And is

obviously, It's a super partners. which customer has vertical So in of network. partners, United our I'd That just sales than here it's of say much construction side, why healthy, does in ERP is merchant on the in it come our gangbusters terms States. the super part We've great got position got going and revenue, then the at a larger we're And least the back. new faster. We've on a great vertical. accounting growing

you, Do to too, so that I that from want sales do mean, the at levels and for us. -- places And take but not channel interest one's the is just you selling David's other going record we're great. question? second Chuck,

Yes.

in you X% our then growth you'll if or financials, tag is the tag and exhibits per revenue to XX% -- at the up XX. our tolls, see in think growth even to I look

so is adjustments that make. we pricing part of And

like some or of it is expect the bit related is we in fuel. little be of of inflation It's MDR Some fairly small these years. fuel piece. food as fast couple cardholders. in country, which pass the of the some we're we getting that the much to a can from a that But we purchases on non-toll more of next to build still or it the parking particularly out, network, And

in been I excited you've David, know one. But this

I'll bit a little the view. So of forward share

out million called I X.X So transactions.

that runs year. will that me, the guy bet million a that for business has plus the be with So $XX

grow And double idea, some crazy so and let's accepting this even exiting year sites. during -- an gone from, thing at to really it's go We next kind see during A, we the has to again level. how the plan a of year, exiting

We million holders. tag or have X the vehicles same

accomplished, to really that thing too but it's early mission little now. a working So is say

question Cowen. George next from of Your Mihalos is

revenue taking where a up me were just for higher about question, Charles, you Let on and we X first quarter the me adjusted they add thank my squeezing going The up that's so there's updated net look at previously. guess you're in X% revenues income, congrats guidance, for if than is here. you just of gap relative outlook? points, bridge kind I that differential. I of be income adjusted bit assume some of maybe part is the that maybe -- growth one to what better of interest down else of the Can weighing going net to but the us? a expense, the in

going Yes, in will interest expense definitely be now up. my head

tax other rate. is The our one

of first in in So of QX. exercises some option that stock from the benefit are some half year, options getting low actually stock this we expiring very are priced still

So we don't see benefit that we'll get that the in second half.

through. And so of flow course, changed the that,

George, Ron. this is

below add just it's the me that line. all Let

through. initial kind from flowing the a points year of At EBITDA it of print. million QX be from of couple year, line, the will guide, upside rest the our of our isn’t why our $XXX of up rest right, the So

put wafer So or I we PBT, we operating obviously down there or X the every billion And up high, $X.X expense. in in Chuck a cash It's some two as who it's back it we Chuck massive big. tax mean year all knows. that's is billion things the expense. rate, I interest mean we increase mean, again, has then there. run a I will through of just on the I interest get said. have forecast think in But on leverage $X.X point

through. sure And line X thing operating that than things. it be going people But leverage in the QX. make that I in better way to so is flowing want we're here to at losing It's just those

Okay. was at. getting That's great. I what exactly That's

really I color. then appreciate -- And So that

I And we too. work help think that rates on down, would the if us, interest

you. a might Fair bit be That point. to tough

that expense And out point, increases on the factoring close in to this Just interest now again, you congrats to quarter. rate increased guidance? how are many

Yes.

the using forward equivalent kind QX of give interest bps bps in to bps curve XXX QX. we fuel let LIBOR and So we're XX you in we're for prices, the me going in that of expense, gave a curve XXX forward on QX,

Trevor of from Williams question next is Your Jefferies.

Great. and fuel. the And particularly macro the on have just well. in And on another guide question you had more underpinning as I assumptions,

notable you Just on then then what And seasonal the particular? there of guys rest of in underlying Europe U.S. differences just U.K. within any assuming? terms between callouts year are volumes, and assuming trends? the normal follows the you're Any and pre-COVID the kind in is of Europe

also seasonality. recovery, will were of prices a change the because the they don't deliveries. back change in but for customers a a more the I'd of we They we Ron lot in it volumes, going they in seen fuel or demand have et really as Europe follow them, of the for a product, et recovery work But terms in Australia bit our would have of mentioned drive and say outlined our additionally, we've of fuel make forward, ditch, of with terms so seen assumptions bounce And don't service normal as cetera, more volumes. COVID-related volume. have we've It cetera. to they have calls, in to the anything to make kind

in pricing seasonal the really a So kind But of volumes course. doesn't yes, normal should fall matter.

additional on buybacks. it on embedding Okay. year then anything Perfect. isn't updated looks like guide capital full allocation, the And

for there framework debt how rates you're M&A? where any help paydown buybacks, Ron, terms going, on just your are it? you're Just of update how between thinking capital about the potentially about in allocation priorities with Any thinking just

got You it.

assumption basically do answer the because we So we the provide first do. default. a It's the unless we something, to with no, XXX% question, is what guidance that delevering

unchanged. So forward really I'd in the guide. what's say that's

assets course at add dramatically the or improve high. FLT is and capital. that M&A. imagine interest is FLT today, of that looking Our stock highest always we my our That's can in first If can first buying But we use capabilities. you price have stock meaningful

don't out quarter. hundred generating whatever, billion current got Chuck few if something I our it clearly, put has So million a $X at know there, facilities a we've more

obviously, it of a So lot we've to got, spend.

So our will At we prices, some of try happen. be these my get guess to is we'll There'll both stock. done. are transactions buyers

they today, likely X will And of have we're some of both those done sitting months things. from near it's so

And question Autonomous Research. of Suchoski your Ken from next is

of because trying was the last acquisitions I touched nights? I fully growth lodging on terms there. the wondering how recovery ask wanted segment some of the a about the it There's lot and/or yet, normalize where don't things But few to years. track given relative would just levels be was and business to to levels, pre-COVID lodging revenue in pre-COVID we've over think there noise -- I room to if that decent

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

the So you're flights is airline workforce right, everywhere, segment back, vertical, XX% there, also come insurance core of whatever and into it's deal airline the right, recovery the have our getting it print as It's it's and travel is, happiness a space. our right?

gotten more clients driving and Our healthier have kinds done of travel.

teens happy for that, are So things happening high that's, I'd base. in X the business say again, us. all

is the Obviously, normal baseline potential is those." you you sales. airline company airline helpful global of said, to If some market the in think to some all "Hey, be that of business We get this just software get through incredibly little going and is we X you kind of normal to or bought global. those comp enormous a

we to and taking the the So to finally core TAM. launching the now have we Europe, that in of harder in an prospects way it workforce look increase how product idea do

means the super-duper for in business lowest It's the business there than more of margins business prospects which sell the new we the company, The seen are are company. the efficiently other any line that good. thing great. in So as in

we business. So the love

as follow-up the automation the business. of on really AP There's a Great. just my That's helpful. question. And maybe lot side of competitors

they Your that talk the adoption what Can days curve? more full really still to early you AP just grow side. business quickly. continues on we you're crowded? Or are Are RFP seeing about in getting

Yes.

I think B. it's mostly

products. There's But more And the right. laid game game people distribution. You're networks. is more you as and out, the is

you work cards monetize remind software everybody, monetize, you're to fee. if relegated don't Just to don't the otherwise, if can't a the products

got product. we said times, get the purchasing can maybe don't merchant things don't, a good right, cards. a have we age couple right, pretty pressure of is proven a -- guys, and so XX-year-old we but And create just which as And new these virtual a this we greatest love kind the that accepts we we've have on -- distribution And of the million world's network, I've -- that marketplace. that

economics. process and And so create actually we're able to

said got what way companies on conky better just but people is space. I -- an just just lots of the kind still what big offer, feel are white what doing. have of and it's advantage join old it's like of we kind than It's you we we've that kind mostly certainly a So still in just And of model. other they're -- a

And group will some I win selling so lot. share. a mentioned, we're that But as

winning share. we're So

again, So disruptor. to the kind can but hope I of I this point, still make method. the of business kind We're be taking old the want we the new guy in from

see these join business. and put people to that want the of basically to us go get other we disrupting in So guys you bucket trying that as

our view of So it. that's

No more questions. Please continue.

Thank for today. us you joining

else. know us anything if there’s Let

nice a evening. have So

participating. thank This you concludes for today's conference call, and

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