Corpay (CPAY) 4 Aug 222022 Q2 Earnings call transcript

Good afternoon, and welcome to FLEETCOR Technologies Incorporated Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this call is being recorded. I would now like to turn the conference over to Jim Eglseder, Head of Investor Relations. Please go ahead.

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

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

this will growth. we throughout revenue Now, covering organic call, be

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

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

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

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

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

QX First, give take you my on results.

the Second, our it. And and I'll just of lastly, prospects few midterm. the guidance, then our I'll assumptions share year to reasons rest updated a like share over underlying

Okay.

reported QX $XXX of $XXX $XX turn Of which XX% revenue me versus were up frankly about acquisitions, million and benefit, the results, organic last from the that's to remainder $XXX year from million, $XX macro was board. growth. a that, Let our outstanding or million million about We across increase. million

for on QX. that puts the record XX%, about million of in quarterly $X.XX the growth finished that's company. all that for expectations report XX% above up well quarter, of and profit for Revenue represents top organic the EPS of we guidance the cash range. above quarter, $XX our an Profitability, the our the So quarter, time growth back for

prices. manage seeing above continued In a I excellent, sales do So, sales high recovery few And fleet our Same-store versus quite That's in in our as both pretty volume base, we year, the fuel Lodging, she out range. flat new wins with that. plus client just about our came renewals, join over human guidance delighted us versus goes exciting QX. at end-to-end no quarter record sales and basically Sales, last way, and accounts, and remained through Corporate intervention. to of same-store for total, quarter retention continue we QX accounts good. and way in these XX% in our XX%. number Payments lastly, client they base, and year. and of basically on new the as at Digital with up, up $X.XX X%. spoke QX the last Trends up XX% to XX,XXX the steady We're digitally globally the call since increase books that last. want top

So, Delta passenger Air selected booking, cancel distressed our event first is the and Delta, and passenger app, flight. that Lines. mobile new a automates They hotel of

get food did We gift gate, America card So us or up no program, relationship us. did to select get the and manage win booked. extended his that a win And we're delighted queuing you global then get VP, more one North at VP accommodations, there. you chains. the They waiting alert an of their so big to largest with

will So, their card through program manage to commercial we midterm. continue the

fundamentals conclusion place. So, our business good in a are for the really quarter, in look,

to obviously new We retain of accounts. clients, continue adding and satisfy lots

you So organic and together faster in results those put it growth.

Okay.

guidance. Let me gears to updated turn shift our second and half

our expecting half second be the better versus clearly, price, ago. off, impacts worse. So, think better, we're roughly view spreads first now. days to XX but the significantly revenue company macro We neutral FX Fuel net to

together, taken it's So, push. we a about think

we We're interest the a mostly offset but expense, impact looking similar rest net a by out neutral have below share of higher view the factors, On lower line of account. the year.

macro looking terms to kind and So here then overall out point we're I of macro to an second in the do that puts expecting despite QX quarters in macro hurt and these help be takes, of in want half the wash. QX. is

that the reflect quarterly we'll guidance. in So,

full revenue midpoint, look, the up XXXX to revising a $XX.XX billion $X.X So, these today assumptions, at at the guidance midpoint. EPS with to to cash year we're

this macro our results Our preliminary no results weakness this support July guide, rest year of at time. and show

Assumed flow-through is put. and the and is where guide a second performance year profit of a basically guidance Again, we're with in half over last full XXX% assume we wash staying QX revenue basically that XXXX a time. our as this revised macro

top, to a that, $X.XX of bottom. in this full achieve we guidance growth out EPS guide year XX% from XX% would full higher our do cash full implies cash XXXX reflect XX%.So, revenue and want increase Assuming of that XXXX that XXXX year February. new EPS this I initial XX% year growth in point

Okay.

want prospects the new small, to FLEETCOR's midterm. that spend businesses, today, forward the expenses. over I last large, is non-payroll might less to So, a the to company be the that is to pretty today do whether to those purposes and medium up to is world straightforward, help or a provide company's reminder which look their on here around

clients So and payments. we providing help better purchases, do solutions, payment that employee AP that just control management better expense and by control schedule also solutions really

business a to us know non-payroll all thus expenses You represent big that target. TAM very very for number, and global big a

reasons prospects our So the over let like me to just tick through midterm. few maybe a

is recovery. up really first So,

healthier. company selling since XXXX is onset of very be versus our significantly to has a quite our the of recovered up again, XX% So, in good COVID. company; Fundamentals, client's XX%. business. expected good, lot much the earnings And We're retention trends above momentum. Two XXXX. still now

organically. Three our the toll business that think the growing the get moats are clearly, we gas business general card So, operate. station deeper is and We We networks, hotel to purpose our particularly virtual more moat. than discounts competitors. and proprietary high, data

advantages. both big So,

these significant super volumes are run Our through networks. that

extremely difficult So, to it replicate. makes them

spot our home like charging public report with pretty EV our got please spent now clients up, last We We networks, or can applications, point at unique to year the that EV X,XXX Next in We're charge acceptance help make fleet believe assets Europe. business software in clients. really them. transition two EV and do the we've EV. a assembling about

plans We offense. also over for hope weeks to EV our go on we're coming how share the going to

to come there. more So,

up, Corporate Payments. Next

Corporate our business to Payments bigger make is Our today. plan much, a business in much

market automation flat, business. reminder delighted to to that's and cross our with Corporate basically will TAM, really We business in focus. Payments than invoice fuel, more that in Accrualify doubled close A today Take at that. we teed addition acquire Recession, we've of the our be in steady. our not business our an that today's fuel core almost more scale acquisition QX. added have view middle same-store, Payments price Corporate we pretty increase necessity We appointed board to discretionary. We've as and segment are our our Announcement volumes also acquisition, pretty but fuel with to may recession-proof, recession-resilient. here capability up literally company products our SMB the

points a up acquisitions is to hopeful to at $X of billion period, last capital product. and over disposal pretty today's $X acquisitions. And make the we're We necessary incremental do our expect forecast So at to billion to have ratio. leverage about

We're are even deals. at We at good performance. company acquired better improving

upside we here. So, think some

chance So, give a to sustain think these us midterm. over good our growth together, the look, taken we factors

business So, today, again, quite positioned and in expand raising we're We're results full over And year believe in midterm. QX. exceptional we pretty compete our reported guidance we XXXX the well to significantly. record conclusion

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

Ron. Thanks

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

prior million We also of Ron which into X% an and had our than lower per our impact in guidance including fuel we spreads revenues the $X.XX X% most additional gallon $X We real acquisitions foreign as the more higher for growth the million macro fuel movements a with some unfavorable versus balance growth delve much were or from $X.XX to gallon, was the in expect prior $XX the XX% million a growth, past year. in around impressive May global from million the year. exited $XX I'll by Fuel posted moderate year, of we the million tailwinds. about currencies. prices at made Brazilian the moment. $X from mentioned, and of positive was to came per exchange by quarter results, Affecting than or of quarter, contributed strength assumption of compared around were negative As rates $XX other over XX% revenue, offset which $X the prices organic over year.

growth. driven all acquisition. which continuing up up Cross-border strong Now a AP Corporate sales. was activity Payments geographies. and was XX%, XX% good which up led remained normalized quarter as across full for sales The and AFEX new moving cross-border the new was very robust again levels strong outsourcing, is to by XX%, had organic again, team were by nearly

expense the our up to stable, and onto rates same-store up dipped moderation sales see Tolls Overall, continues management growth new did performance. little volumes XX% Fuel we as some and to compared flat returned a business X% contributed remained bit. rate, but application was as year was the year-over-year, pre-pandemic organically growth approval sales volumes has new Moving to its with perform. largely although XX% were solutions. in last sales up slight of activity

Southern we're solid, well, seasonally season expanded are in strong continued travel and as product head well-positioned exceptionally summer Lodging sales XX%. differentiated and the up New we proposition, value driven to utility by Hemisphere. into our the perform

continues issues. are We forward costs improved orders potential has revenues recover, higher hotel have fourth business approximately organic leading $XX delays ensure which from XX%. third with programs chain are more affect new rising. million the of year recovery earlier quarter as to to and domestic due an again still than year-end estimate International forward to our supply way. sales in outstanding lodging garner outperformed card of as brought Airlines Retailers growth room advance card Gift half, and per with in travel travel $XX the in were pulled and valuable workforce more were particularly that The in growth may up the adequate to in any has normal. volumes the as holiday quarters. they to quarter, Our XX% which had season higher with negatively stock revenue second second want organic the avoid better million viewed as customer Asia. transaction, tends travel,

statement. million $XXX AFEX of down million operations. QX ALE further expenses $XXX primarily income of Operating the over represented a looking increase due of the So, to the XX% prior in addition year, and the

was debt sales year debt. X had higher We with compensation also the to still line XXXX, stock or Bad margin was expectations. drive bad across XXX bad in debt increases with to was expense bad XX% back compensation investments our by prices, Interest of than consistent original was earned and in the $X customers QX, in write-offs. half year the benefit a expectations of In million as jurisdictions. levels and the $XX effect improvement correlate with XX% incremental book XXXX, loss historical rate the of to revenue as of and or XX% realization existing be decreased the cash fuel increased to who basis deposits points. of January foreign which EBITDA Bad levels higher more or the quarter is last volumes debt stock new XX.X%, our quarter from generation to acquisitions. and normal quarter customers benefit income expense that still line continued basis of X swaps growth expand have basis $X in fixed rate from million a activities debt, point points, the sales from tied margin of second to second down synergy expense higher businesses, tend certain returned future margins strong a from but due from and full customer largely quarter billion of which back expect and matured on in and growth. The year-over-year, driven balances our higher EBITDA We interest higher the of and which our in in have to and result new higher to

for with the rate offset tax $X income discrete foreign tax interest exercises benefit by quarter, driven effective excess decrease option a rate. a at XX.X% was and higher last quarter by which versus partially higher are benefit the on XX.X% on stock in year taxed the million less Our deposits,

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

XXXX. extended billion. was $X.X The revolving XX, A the the from loan $X five-year rata extended lower by pro facility to As our calculated pro leverage billion our rate points of on credit and we and basis increased approximately an X.XX LIBOR power borrowings billion ratio margins consistency, $XXX credit EBITDA to quarter, upsized facility SOFR strong $X.XX of was was second was credit agreement. and from The converted credit the term trailing $X.XXX shares XX-month from June pre-amendment. our adjusted with quarter. in The rata new of X.X with the during earnings $XXX accordance facilities generation than flow billion reflect average increased of XX.X times base roughly $X.X term as to the maturity million to June a to million billion facility and the business. at repurchased improved our terms cash We price a In

shares remains authorized been in $XXX Board plan no-brainer, shares low allocators. we've $XXX under us $XXX we million. and XXbX a of capital recently along buy a repurchases. XXX,XXX deals a had at to advantage price. very is back take and small efficient at these this with year, also repurchased further place valuations. put another we've cash levels total back X.X shares July, in lot We repurchased average shares a for opportunity this continue the to million which our for In Buying million very our a to at profits announced. We position of always flow And have be unique in by

to a Further the the order organizational reporting, changes press geographic its in our in as be from provided recent recast details split product segments level split, of X with XX-Q align seen earnings structure Exhibit has of company more release. in will in upcoming the management filing. Finally, to and a

now year As let outlook our Ron and updates, QX our guidance full has assumptions. share thoughts some covered our me on

prices $X.XX. assuming of again based and For expecting between and forward and curve per million be to QX, QX our be share period. $X.XX are $X.XX $X.XX income assumptions, between fuel we're net in guidance revenue we million, our the for and $XXX On QX, forecast in $XXX adjusted off to

having expansion particularly in in already Given July. prices, during experienced anticipated we spreads, higher an fuel assuming fuel spread are decline QX,

of of LIBOR and assumptions QX, our in respectively. X.X% million in to Our found can press results million receive recently. like thank QX outlook, X.X% our supplement. and rest us away the I employees interest assumes the $XXX moving the our world expense The average around be of rates from release and $XXX would guidance and And of two helped to all distinctions who

recognition its the honors opportunities team are and Mind. Loved Most support, charity, given resources in as to secondly, FLEETCOR valued a by become gold Workplace Workplace, certified health creating also the health employees Wellbeing award Index employee to in U.K. First, which winning a earned And dedication for succeed. has a has which mental our culture and mental company's

proud to are the commitment to our our company's reflect hard and And core now We you work Thank for create these as for open and they incredibly of values interest. like questions. line culture believe so recognitions we'd operator, we we maintain. the to your

you. Thank

from Your question the Christian Instructions] begin now will comes with We Please [Operator Citi. first question-and-answer go session. ahead. Pete

wondering us cross-sell BXB difficulty]. Hi, Corpay update I solution, the and with everyone. can Thanks the question. you for One Ron, on just was initiative the [technical if

Pete, still days. early Hey, pretty Yeah. say I'd it's

said sure I that first time this we got platform think to them. we make cross-sell last new to we're try on payment I trying before people

moving up and little some card So in half aha the fleet it, bit say it's about half spend we pretty in X,XXX I'd the XXX,XXX say U.S. accounts still we're we determined review of payable call or spend. over, signing but moment have a I'd that early. which spend, a our, of clients an XXX,XXX had

So one of amount okay, spend of XXX,XXX, of of lot refocus or revenue we times spend a spend. can on companies all I'm are can half that energy that that a was where those X,XXX certain earn on will we we the targeting XXX,XXX have like, the that

that So redirected. has moment bit aha us a

some we're the say but progress, things still I'd of always learning. kind new So,

one And last Thanks. for me.

know place. an you've fueling on I systems capital to update Just in deployed there in tag you some wondering had Brazil. those if get

the if there update get fueling. tag on an had you to Just more wondering efforts

question. Good going is super thing way That Yeah. It's good. up.

period. prior up XX% it's the think I versus

new we're year. that or calendar going to locations plan X,XXX on this we're think I X,XXX add

have Because transactions? more thesis to is track on get locations, locations will that. million trans can we importantly tag, the hey, is if have And most right, X so, people me, Pete, will them if or in of, they stick we're got accept you active that we for million we've good the X more of So, grow? the and front the news tag a do. that so, But

locations stick in accepting acceptance, new appear. when geographies So, didn't we we where transactions have see we

So, is the I XX I add keep here going thing. Obviously, XXXX. at our another thousand going to beginning, said locations. million transactions we're hope we're in have And few pushing to to the think

of So, I'd say it's all kind still green.

results. so much, Great. Nice Ron. Thanks

Pete. Thanks

you. Thank

Wolfe next Your with Darrin comes Peller question from ahead. Please Research. go

guys. basis the organic two-year trend they're line, I terms Hey, example, like of rates, on fuel, stack growth at they're low-teens stack looking on the when the for at we even look Corporate Payments in fuel, similar two-year stacked. we again, just the in two-year look a for When mean, sounding And for acceleration. --

at or assumptions year, is what's trends curious, see something type the like the when we growth as the will impacting it? of helping organic cross-selling of that good the assume obviously, is first all, Secondly But XX%, that just price growth is are are outlook embedded is we medium and organically a you're gas guidance. plus fuel term business outlook, the And organically. normalized that? which fuel? I'm I for lower, the the rate the assuming at I you look for So, rest mean, X% in a growth of look

business, investment model, production and rates high Corporate the single hit -- to comes say, loss part Darrin, have obviously, Fleet marketing Hey, again, be it the the Ron. it but know in first don't stats hit We digits targets, basically sales to same-store, We're place. and over we're to take actually record, model broken sell in because, Chuck? on we lose then business of to out the I'd in fuel a so like the Payments. same planning. and targets we So, Payments give deploy the basically of going those right? all terms if in it X, sounds I Y. it's we high-teens the and, We're sales and we right Corporate Why I

to X%. we're going grow So,

a business. right? up had need do prices, we've up Digital those COVID numbers I higher yeah, And way has business, bit. help, the Sales So, way mentioned because the that is control are I demand think, maybe some in I boosted think to is that in higher. recovery the fuel

terms So, year I'd revenue those on up, of we're other rest the than and two of targets lines where We the kind to business the Do Chuck, say in nothing coming them. that, out. in pick you fundamentally said that's question? of different want we're

is Yeah. as say said, that, Ron of business kind single digit. the a I'd high

would consistent can high our this macro be do an periods, You be but that probably coming that's say have organic Again, of down We the organic we over which lose, to more for expect see organic basis. on but going growth quarter to good the growth I X%. rest mid around for to year. than news, digits. the of kind selling is we single that,

It's Ron. Hey, Darrin.

want Just revenue, said just we product incremental really the to I landed group is interesting, -- you the to tell something where to haven't stick your point.

So, the but product number, virtual back a what the think client categorize sold card thing let's that question. Payments, gets fuel larger is using be to extent we just kind the is. client. that services in by been card that's When by to it to the it I or Whether some card, of that, it's small, pay the it bill we've let's or say, put the say we mostly fuel Corporate

Thanks. Payments side. just a Okay. the Ron, quick Corporate on follow-ups

be you be sell want can used to good selling more buildout the set accounts of salesforce you're the of are where like strategy obviously, you payable, differentiated. It tuck-ins that doing side really the virtual a now, card assets of is terms Where the of terms one AP In on in it than Nvoicepay. really good rather on seems mean, I to that solutions are in integrated specifically? that what

good super That's like we're happy. complete, virtually say I'd Darrin. a we're super question, duper

try on this you. me Let

there's this buckets three I Payments, So, of thing Corporate historically, term been providers. of in think that kind we

business pay B, companies approval, of And in XXX front really or whether the it's or then workflow execution, card. paper bill paying software of scheduling, kind AP ACH. whether So P process TD the or that card or process card help kind basically it's a is really a company, or third the Then or of stuff. card SaaS for co-payment that card, kind reinvent really invoices

If workflow all obviously, you got top position, now we've buckets. name So, got payment software so MasterCard. the we've right? pay the certainly you about -- a then we've not think are in software a I volume. versus pretty obviously those three, the in think people I few execution If card, generally business with different it, non-bank to largest close suppliers three said have terms bill front got big the card -- spend in of And we're with and relationship versus

love as that how like matter we single pay have a virtual the provision, so, a And we fact software, the to to have network. no it's process credit card make big provider, a paid, capabilities

So, go people the that kind more platform back The is than market, are right? one we we package may thought to idea. attract to the as at looking like for of a that we thing time

it. happy pretty we're with So,

guys. Thanks right. All Great.

Thank you.

KBW. from Your go with comes next Sakhrani Sanjay ahead. question Please

Ron. Thanks. Maybe question, just to follow-up that on last

about made, that distribution it mentioned? to add have that you like the to look ahead, we need of feel the there you those different to And comes Or sort that when other now on three you of we as of you acquisitions strategy much business? you then, that So, all with are do everything pieces Corporate you've buckets? think revenue from want focus Payments, how

the partner or processing, where business what say right, need. virtual card the about ballpark have we Again, I'd Yeah. which with something take out, business think or help we it's you do. we say I'd other Sanjay, channel I FinTechs mostly we if that

third, ended business, ourselves, between to about business a that So, go end is there out virtual of call fourth cards, deal we zero, call traditional third on what go just or And year we capabilities turning or there last and there then cards sitting what to if right? we just we you starting. the through deal whether We AP. or to kick this it's where up workflow software want to a would We're a an third, the we direct spent full bigger call and do basically close B. what a SaaS bucket

kind the a piece. size, the we head last quarter, that's partner is on dramatically quarter, the direct growing quarter, full rundown. a as right? if similar it's The first growth. a of So And kind of think quarter, not approaching business. it, your call, to business in reported And is XXs, business, the quarter, the quarter, a I that a the is I hurt I direct mentioned for AP faster, think the the I half, in high year-to-date, in think XX% call

got about, super we're Darrin new set. Payments And marketing we just in and Corporate which ask the call what core good focused execution we've as of you So, growth said, didn't this And it. really but super let sales now product, on the me like add.

incremental payment. search, to there's there First of SaaS invoice call what this analyze stuff that's Google we'll demand for all, software seems to be, the when we

by salesman dollars out get we incremental we sales. revenue some and that same some hopefully, then, the the straight payment sales we execution, get could And both So, productivity software so having then more think because the may generate product. sales leads could sell the of and a we'll

quoting go hope we bring So, that the will this thing basically into is the fold. the per area production as up

assume Okay. question Great. and can And factored two-part flows interest you've then, that for talk I you how maybe speak just sort in, higher of everything model? then the rates, most follow-up question. just Could but through a And just that. about to Charles. just like you

assume monitoring, there mean, your of fraud. call is, I instances higher that's competitors of anything saw one you're something Second but to out is part I there? Thanks.

Sure.

So, yes, rates. we factored interest have escalating in

up X.X% X.X% LIBOR that is for QX, for curve. going basically to in assumption Our QX following

our have half of of in of variable factored which off January year, all next year. through December the that We about have $X hedged, We still other half billion comes in debt. next do

contemplated. credit seen that's application I always attempted have uptick an fraud, high fraud our people up. fraud say and attempts. has kind they who and that or fuel not in factor, prices in as on that it numbers. we It's fraud, in get would something skimming say side, be does been, been transaction always loss are have they coming So, whether all the or of activity been things, ramp a as they But when that's

have to we monitor tools such. it and place in So,

We have last been watching we ourselves uptick an say. saw bit over or in transactions probably, protect it as say quarter, duplicate And a maybe very, this very to should closely. applications, we in little rotated I I'd

Some whatever partner people our who right? sites, sites, through we multiple of sites, it own, Google people though, get applications, coming portal have Because are may those our channels, be.

harshly a we're monitoring dialed while of [indiscernible]. we too it's And our nonetheless, little always effect we're And that. seen up on so, we it probably revisiting terms a had uptick our dramatic But and numbers, in the it's in bit haven't that closely.

Great. Thank you.

you. Thank

Your next from Securities. go Trust Jeffrey with ahead. Andrew Please comes question

Hi. Lots moment a kind of to business, in you guess, sort question. know big of would with perhaps Good makes been at take sense of picture lodging would start seem there conversation? I the be of an doing the Ron, to question. it gift To well. it's optimum taking are kind a of points here in has at all kind of Is afternoon. point it strength long that. this different whether or the Appreciate businesses cycle, that which a I the advantage consider streamline like

mean, word you the in of do What terms Andrew, use just you when streamline?

the I that are maybe little mean, ancillary bit offering. businesses divesting overall selling a to potentially or

businesses kind any just and years. think been I I for fuel company. the has the over the model I the as said, standpoint. business a conversation wonder update core And Brazil from and there's Corpay of gift being on sort of if as that about

you I'd is, started, say where start that perform. businesses Yeah. which like that we I'd

there's grow, have So like to a you don't of me, we where we and call we think there's performance, that. in XX% I organically XX% front business business demand compete the market, well I we print. we in it lodging and perform and have tend grew, where and I think, we're out non-essential but when

So be that the would thing. first

through it. about That's the and the would fuel it I These MasterCard different company time, all guys, categories are that whatever. sit just their saying and this like spent, how thing, this hotels think running second spend about was The and Visa employees kinds guess we on of hey, be you business or spend. at the we that that categories spent were say I

And of one to model, last we're a we and is the one, could them We get a the to through platform same multiple, to we business, control and right, we call so, just again, is people these head identical. use product solutions. to listening, of the kind another is single And this kind. trying give then client go spend business, where to us, the what

has walk you're of midsized So, people. that some around company kind

travel, a vendors, give fleet thing. pay that So, some you give people of bill of a pay you're of give you With And fair a travel sales we have we hey, number big enough the been you you then, product. card. OTA we

We point. it [Indiscernible] actually the to that is things hey, hope just to me, they perform. more first start will where the unrelated? oh, so, are. And bring time, stop are go we asking businesses start together back over Let people like where of -- these will that me

Got it.

Okay. understand like customers areas revenue a I'd and growth for ramp maybe to 'XX? around this be could any accelerate sounds as that to should question. you in meaningful in. spend is a we of -- guess, where sort just investment that. level so up more you could way about, of the Charles, and especially Any check appreciate more we another out thinking high focused you -- look I of question your forth. It And get I kind cycle as composition be Thought from cross-selling then, setting areas

Yeah.

repeatedly that us logical that reason is, the I channel, advertisers I one, both think fastest think without this I literally And digital the mentioned way mostly boost for any revenue advertising and and and is people. sales, most to that the spend. advertising, half say sales we complete

it's channel. the we then channel, closing second, it's amount So, advertising resource enormous marketing only have field of not talent there. And an out and sales an

in is giving our So, to drive revenue. to solutions another way that be interested the leads, more more right qualified them pointing crystally and sales may them targets

we profit a a we the revenue. know the soften one, from place We I'm get go could amount returns We target of you would in go. about to hopes relatively go that's ramping big quickly. could up in what of if fair said, way. So a And going That's kind we hey, first it.

Thank appreciate I Okay. all. you.

Thank you.

Please Your next with go question Sumar comes ahead. from Sheriq Evercore.

should quick Sheriq even for year? drove half Evercore. about quarter lodging A pricing of the kind business significantly from this the of Were This the and moved pricing how second the Hi. Like for is question there think the in on pretty front. for we well. it? up that the Hey. as tolls specific And any items

Yeah.

starts better, expansion pretty and in some created are is business, recover, We seen So, a have this higher more we of the In than recovery additional of our that. does are just rates is hotel right? higher. as that helpful, air terms capturing volume. some Also, saw to obviously, pricing, Hotel Charles. have which in margin that we lodging has domestic rates international air. take rates, It business, in sizable

the be we'll some of lodging that able so, to ride as And business. in well

say rest job I'd our are success should mentioned product help business. of and our that revenue pricing also, as Ron of We're merchant flat and more of subscription. we've tag, fast revenue discount as terms able pricing, vis-a-vis to also side, good the And brings markets toll the continue per earlier, our differentiating seeing in On withhold tag done that improve. a food in that fuel, per even that to metric terms good parking

follow-up. Understood. And it. Got quick one

baked assuming July? done any year, just count share have the in buyback half? for that the it there are is in buybacks the Or you the full for second On

really we then Our go-forward which what favorite choice. is Everything guidance the July. in is only paydown use to we would else debt, under assumed our that assumes XXbX completed least

Got so it. Thank you much.

you. Thank

with Automotive Ken ahead. Your Suchoski next Research. from Please go question comes

the Thanks in just helpful. can on you if And Hi. growth just since into much comment to of for there? move taking about then, more side anything how question. revenue procurement ask be the the not, Does evening, acquisition for And you asset. you. is I really the deal, would Accrualify of that up I business, things? familiar Good wanted the life the Thank get guess, that to cycle the with transaction mean, everyone. not I I'm appetite there regards to size the

It's Yeah. Ken. Ron. Hey,

size small. a basically It's capability asset. We is -- the yeah. So,

it. package So, of we group software that built bought a and a cloud-based people have

they have single clients ballpark market revenue. XXX-ish at digit of think millions kind of middle I

say On interested. not platform procurement right, The super the your in procurement, I'd is a point, wider, terms help. of to little

is products stuff. buy of really that help and the Our departments in automation space, AP payables get helping invoice our focus the process again,

build SaaS pull that with people you imagine, area people package external to on studying as we'll convinced the which competes against do it. us the this software, out. so, kinds we did that's all to how And and the And can that really internal and of trigger and other compares

connect more So, more to salesforce, it capability, our result give business and we'll value. incremental and the rate, engine, payment its it they'll execution our of right, as to hopefully, get a

So, but this. I we're I it's to -- those do this. do it. going we're We of probably now. pretty year mean, about to Hey, it's excited for little, one preview need a

and was really team this. And the just really trigger guys, the with the basically what, it we We do on. we will pull that like

guide getting in coming expectations like versus there into year it. ask about out leading because weaker that's then, or for particular to strong you just that causing exit that's the as there, but that and guidance a can in bit of exit I a move It Okay. lighter maybe on than are to And questions XXXX? want what the guidance the looks little we're Great. the anything XQ my Is XQ maybe few just rates some some some expected. follow-up, anything

Hey, that's good a super question.

macro. it to answer really remember. short the short, I trend can't the is of So,

and price I of interest fuel said it's spreads, of from of remarks, a shares a this things, Well, a think and wash then things, it's the together, it little the expense, kind of opening put the I stair below when in we macro you step. XX my ago. stuff, line all bit cetera, that what thought FX, kind et days

kind High of got the we best rates not still QX, right? So, fuel high. prices, interest are macro in here

kind run you the to QX things QX, and rolling then to down keep of those As hill.

going we up again, forecasted we So, down be quarter. be Interest forecasted to fuel expense, each going price, each to quarter.

it's mostly the on And so, our core overlay macro business.

what call can So, we're business macro we we neutral we or drop which our hurt and right you sure macro we guys on running print, business then the help the run like so to kind of inorganically, make see.

in with will look into if at print level, sequentially what QX, overlay the cooked answer. and even we you math, assumptions the right? our that, you declining in do So still up, QX sequentially short a is that's macro -- even That But revenues The versus it's produced. QX, grow QX QX. the just

that that did of gift add, Ken, forward bring also see of the reiterate, we would the second to circa I'd come out of $XX $XX in revenue just million half. card business a to million

also is calendarization that an so And having impact.

much. right. Appreciate you All Thank it. very

it. got You

Thank you.

question next with of Your ahead. comes Bank Please from Bhatia Mihir go America.

of of it, maybe question. Can live? room start the the with it just rev Just just maybe you for it per there. of size And detail Delta understand to wanted the additional us taking your when Good I lodging terms impact you afternoon. nights go share any detail lodging in just or my business? help win. to Thank Any does room? you can historical

that up. picked question? Did I sure that get not you I'm

means he the the think I Delta.

Yeah.

Sorry, the Delta business. lodging

of? to trying understand the Just impact

Yeah. Yeah. Yeah.

missed I of sorry, it. the I'm first So, part

annualized it, the insurance not again, in your million $XXX and So, the rough business. is hurt lodging And segments, million, it, its the number. revenue call business versus entirety call segment $XXX to XXX-something-million, airline XXX head workforce

show they in it So, to But expect breadth most, and have seen interesting flight the or been queue phone to build a our that to business everyone of you. say clients and Like, that up I would some that we want grow scrub on this the the or XX%, when that out rollout company pace tech call the here and depending on this has line do. actually people I their the in been would obviously, stuff just probably we the either idea one I'm sure that on they clients. --

idea of the the massive a kind being system into passenger such being service to leap forward. So, and their manifest instamatically provision just is connected of able

got, four thing this don't certainly well XX that this or know, I beyond a prospects XX clients five go or using the Delta. and are know, think for airline new So, handful, I global I We've product. don't

that the bunch way. have distressed and them up and pick of it clients it fashioned way passengers so, old that more thing the wider goes handled becomes And kind versus is a with hope the the of are we the that,

Right. sales about No, that makes momentum. just I just question could ask other sense. ask the Thank to you. is If wanted -- I

mentioned digital You've good And for quite way, seen were few sales quarters. a momentum really you obviously some now up. way

So, want I on to did bit little there. drivers the a dig in

think high. had searches being last you inbound quarter about I talked

normalizes trying productivity So, that the is or driving Just momentum? where done process you've improvements something that's back. understand this the like to sales about there

As productivity gas the prices come does back sales back down down, where normalize to?

That's actually a good question. super

quite obviously well, sales compounding So, yes, the which are delighted is faster. we're the and even compounding digital

two the reasons basic spend. one, for so, are, And that

we're We're right? obviously spending more et cetera. So, trying more, to reach people,

process with digital more, team more. has So, produce second, a I you done the spend think great then you And job improvements.

to the the website target's end. prospects so off spending So, with, visit money, the prospects, for handoffs at of instead that example, websites redesigning drop the right begin better, less people wrong the

don't people the get up to sign over the how how fast. we but all want talk to of and them XX% So, somebody, that digitally,

to basically So, there's in each get thing of that we bunch spend. kind dollar workflow we've made a been whole more of the that of improvements out dialing

got ideas. whole new bunch running. geography We've we've And tests We've a websites launching. so, got got new of

-- just an all group So, is listening, people don't keep forward. the the team are plans of thing I have any know world if but that taking it's to

moderate. So, back resetting we don't prices fuel when it see

some. I moderate invest more that in probably continue to will my searches jump boat think more channel. produce some is of in guess we'll and free the the that But

you. Thank Great.

welcome. are You

you. Thank

go next question ahead. Please from William comes Blair. Your with Napoli Bob

you. afternoon. Thank Good

a come What any most Solid have are interested Ron, adding. have M&A, and your in? on you since I'm guys question quite most is on you results. the consistently bit. where pipeline? you Valuations A active thoughts -- you're ever active Obviously, you. I've sure down Just been interested just in how known have

M&A? is adding Payments. where of to there? lot a that been additional expect see we there Is Corporate Or You've view would broader a

That's question. good a

well, First, you're [indiscernible]. just doing Bob, glad

Thank you.

run-up the from you the is little a the saw lot deals, capability of albeit answer consider, So, call in or the we done maybe last important Probably acquisitions. we us was basically year, would in what short terms capital purchase in of the X.X cheap, because that right, six, M&A and internally a of we on year, we've terms capabilities five price, more of got.

think So, few more of I is those. we have what you'll see a

super opening think about EV, In I that thing a announce where a in fact, in teased one line is coming the transaction, we weeks. capability which my here we EV a bit to pretty the yard on important hope

So, you'll business one international. international a a those. that's where see We've few got of we're more getting not

So, old bigger revenue bigger call couple base, synergies. it, a obviously, and that fashioned FLEETCOR deals larger, two or the accretive our sight bigger in gun three are more. profit client of now got we've But

So, as normalized. the some of conversations. valuations those reengaged in have We've

next back the year to us you more few larger, announce rolls as deals. see should of XX, more And you'll some be is then, kinds guess accretive a see my type on, the doing capability us XX surprised deals. days, So,

Thank Great. you.

[Technical Difficulty]

Right.

add business. And in the that the and kind toll just the business a thoughts, and your that what that business, market. you long-term, on to and grow Brazil look on Just to or follow-up like on that of quick to would ability business

when the just a business, mean, I about question. reviews we the That's gigantic scale. good of just time another enormity talk we there It really it's we're thing. and is the do and the thing every such

it's it, -- -- millions, a got literally the retail that is right, to feel got country, because it's It's users. everywhere. just drive active brand it's name and around You of

or of it crazy. the franchise the a size company, old So, is year the over is, whatever XX-plus path

think thing guy it's repeatedly And of and say the best. so, B what the the -- Board, the people, one say there, I'd and our that to I runs I team the

Because One XX a we is, per Bob, have So, see we're these times And guys user, thing to group parts. that? is great what told fuel folks But the on clients monetizing it, take this we spend. you toll. to why add has I are about, there. to two we of all doing going say in I'd and have we're we it going

per So, toll year and a X user fuel. spends in in XXX

So, MDR, X% X% every over one is fuel move we the fuel. or helpful, people on can plus of to that we get those

example. see team testing a one, example. way. is Vehicle you'll which think also the where add-ons. to that three think insurance do basically a bring I But add-ons idea, is the it is for contributes now proposition, as to So, big big two or realization an us new in a The I

Going back obviously, about those insurance BXB X and up vehicles X amount million drivers a the because, drivers basically them. to million the they for on offering know fair

think we're going core got I -- the We've big So, another name business. win it's there. to

are just getting products. to that sell So, we've our got launched banks

of business. there sales new all fuel is Phase And Phase X guy is X is things the idea then to to monetize. really add-on net Our kind thing, getting world. that of this that close the

don't if there. I super it, hear bullish So, about know we're still prospects can but you the

Appreciate you. Thank it. Great.

you. Thank

comes question go with next Trevor Jefferies. from Your Please ahead. Williams

or your quarter $XX Great. provision, Thanks. million it, Good on or QX you've minus plus credit afternoon. and QX. I because been running, so per in wanted call to ask

percentage can that second think number sensitivity it losses help First, in in And of has for bad just debt. year what both half and recession, how the high building just any a of you're how go? kind we then, you start on things the the with should turn. to off that, or but credit dollars. of how can if And when shut and business, know as of you in the to cite billed I that guys then, spigot, counterbalancing on quickly tend metric whether

Charles. Yeah. it's Trevor,

towards end of year. debt, maintain forward, So, do the levels we of the bad looking until through end -- current to kind expect the

So, remained to while the a flow through for as receivables. that pretty takes fuel have high, prices it

that's and next quarter two kind to going go as we into to year. then or flush So out of take a hopefully normalize

are that we would COVID That and have it, it fuel seen expect I with lower tax a I'd bank, we're that regard. offer little sets the see was financial yes, different here. We a we while being that go in But the that, exit right? could year unique. payment than up, said, time we've And cycles things what seen we hopefully you up as more see crisis. a as -- downturns prudent the in around We a standard a in our said, we don't before. at say generally through call or we been year. similar We've are on some And better revolving. side, -- weekly lot net, of But call a that our was type recession we of clients XX. global kind for cycles biweekly bit next recession, we've it cycles. clients are monthly cycles, frequent on on more have price

exposure someone us, down out pretty pay our a revolving if shut have -- doesn't they quickly. sitting so, we loan And can there. big don't it And that's

higher. of we do, recession. might like could like pull haven't just we can we if yes, you So, wouldn't basis kind lines do, as and the see other relook through the some where open sign in points fuel did see certainly spike portfolios. in it We any while yet, we seen to COVID, lines went type excess that up, such. In go But prices card we we credit tend any of event will portfolio back up we and back and haven't go and did

So, we down back -- we'll and pull fuel something, smell if we go prices as drop. them of course,

lot this of We've game. years a fire drill practice. ran Ron. just it's two had a We Trevor, ago Yeah. on

place go what fixed. do, And That's Chuck's half you we the pretty back job. But a come point, at to our which new business you good get losses, point, the where we know I think dust on sure business So, particularly published, the look that some. did I'm credit from. we dial your off losses can if instamatically, could playbook. we the to It to of our probably thing that does

rates everything. look the here. drill. manage how and So, pretty we wood to knocking confident we And carefully, We on get We're it monitor know low I'm at it.

that then, off enough. be XXXX? help like we're year. with think guide, expense, backing $XX my interest as out next that On that updated hedges taking follow-up. Okay. with something the for the flowing just any with million QX, how And I into No, to should roll we fair

initial just baseline there is us give kind So, any you XXXX interest can Thanks. of quarterly framework expense? for for

think probably the and I Yeah. around off your forward depends step all is ballpark. on Trevor, in the It curve.

lot of next actual anticipating is an seen SOFR I've what a reduction in that year. people through So, LIBOR, are

what on so, And depends you believe it there. just

to we're off. hedged guidance, step-off sounds million And say forward That have $XXX in roll right. give will around off at So, rolls will not I'd but we that ready kind X.X. that that It's your of about January. currently

it. Got

you. Thank Okay. Perfect.

you. Thank

question El-Assal go with next ahead. Please Your from comes Ramsey Barclays.

Thanks what rate might at through those of curious think some with higher of follow-up have -- gentlemen. talk my just offset you mentioned do to other high for -- I'm expenses of cash machinery the line interest bottom I'm And you kind have? evening. trying balances, what a jurisdictions the of balances on thinking probably know taking well. about you'd offsets in else can expense question interest think about other had model hikes. higher tools mentioned. can soak But rate to Hi, some Charles, that about I'm you Are have to you how buybacks, there. this I what income. like that as high for disposal like you flows of the in question, impact up cash the there some to as float from just your you and help I

Yeah.

foreign that tax tax tick So, we here why if taxed. rate on tax year. which interest pay bit higher our locally Subpart is that jurisdictions under do this pick continue get is note and is passive I double F interest some do income, to We benefit. would income income higher, we same rates those a there of in

that So, call I would out.

is of factored All that in.

in coming that see into help. others, prices rates view. our we see it we down, forward Brazil, Fuel factored will with any So, forward have

our of $X.X kind maxed at securitization, out we've So billion.

will that drop, prices bit. fuel a come little as so, down And

there to for that yes, if foreign So jurisdictions, continue offsets helpful. But in up will things sure. are be go

it. Got

are break a structure you perspective? just you kind exit question of right just bit already me on And this, the forgive time? Or the for here it Or the a Okay. you to more on sanctions is, Russia there looking regime a it, it prepared just regulatory is question little depending guess on was staying And sort to and the the on the then I from it of you lastly, Is things unless you commented planning how indefinitely business? update an if potentially remarks. forces are business. might sort on of I missed out? hang of of that It

regulatory. idea Yeah. Hey, I'd about Ramsey. less say people, and the It's we Ron. there. an got We've good it's have

how I our conflict think function we a it it's out the what options are. said of repeatedly plays and

people So, helping us thing fully. got exiting we've explore, that

at were what's looking lots and at at our looking options day-to-day of probably how going the So, kind with on and like thing's of people the going conflict. look

keep on at So, sense it. it looking us for doesn't seem we're the to make to pull to plug it today, going but

helpful. All right. so much. Super Thanks

time question-and-answer of session. our Thank you. our the for allocated end reached We've

attending. for for our that conclude today. conference So, Thank does you

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