Corpay (CPAY) 8 Feb 232022 Q4 Earnings call transcript

Good afternoon and welcome to the FLEETCOR Technologies, Inc. Fourth Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded.

to President conference of like Eglseder, to now Vice Senior Investor would turn over the Jim I Relations. Please go ahead.

Good joining us Vickery, our and thank our Chairman you our Ron CFO. and today And earnings quarter Alissa CEO; me XXXX full afternoon, fourth year Clarke, With are; Interim and today everyone. for call. for

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

year-over-year we compared. reminder, for exchange rates, changes Now call, will being throughout spreads. a covering fuel prices And this and organic this also results the revenue forma two fuel includes neutralizes pro the years as the in growth. metric It acquisitions foreign be of during closed impact

financial may our will income, non-GAAP the non-GAAP We measures revenues, income with basis. press directly calculated be companies. GAAP adjusted on at are be that net in GAAP diluted comparable found can These website. not on to net information in and also share an accordance all covering metrics, and including per be release most the of and calculated today’s than Reconciliations differently historical other

future them. as that you undue future information have not discussion development include forward-looking new business upon are should They may we today statements. acquisitions put outlook, and today. need do and of our reliance about expectations reflect that remind regarding based not to the statements of I on guarantees are products All and our best performance part everyone These information. statements of

expect. risks to undertake we could These of materially which numerous update cause and uncertainties expected results We from statements. results what actual are differ subject to to obligation these no any

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

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

thanks. here, At to and subjects. everyone plan joining cover earnings top afternoon, the Jim, appreciate our QX I’ll call. four XXXX Okay, Good you

first, take our results. So QX I’ll my provide on

I’ll performance. Second, year recap full XXXX our

Third, And lastly, the I’ll update of we’re on few key working. our share priorities initial that XXXX then guidance. I’ll a you

end Okay, range. me top turn to QX exceeded let our the of results, guidance make which our the

X%. EPS reported than we that’s $X.XX, of $XXX up revenue of XX% million, So expected. and better We cash that’s up

Tax-Happy, quarter was Our in the QX which cash EPS our our by overall helped rate. Brazil did tax lower

by Organic $XX Payments impacted sitting revenue in business overall, QX X% you Against negatively growing the organic growth XX% prior revenue coming million QX ‘XX. one-time million the growth Corporate of our was of inside to $XX in that quarter. good, our super at year, know of in about revenues

about XX% So the to QX growth range. that expect growth do to in We QX. organic return to revenue reduced organic X% X% by XXXX to X%

interest higher micro pressured to QX cash decision higher seeing of what rising we’re bad the a the On call did slow Fuel by we US our we delinquencies the sales. in significantly our and And expense. in both quarter business, EPS as new make debts, result in digital

So our account. very smallest

debt XXXX. move Both tightening existing bad really of expense began in here those account. SMB cautionary of control to try our to also We things terms a

think vintages, is you small call in know risk and really credit XX our newest accounts XX very what micro our months. Fortunately, to months and concentrated also we narrowly these

So really small of a impacts business. pretty overall portion our

micro quarter, to, plus grew our quite And steady sales for the decision XX% slow despite Same the good. in Turning X finished to fuel. trends quarter, sales in the at the our in are fundamentals remaining the retention quarter stores again XX%. to

‘XX. look, in here as you strong continuing roll bit than had trends into and better finish all we helping expected us know So all, a we

full Okay, position let the our me company to progress mid-term. that performance, made the we year turn for XXXX along the to better with

year that’s almost up billion, we So full and reported over revenue for million of XXXX, $XXX the $X.X up XXXX. XX%

Our EPS that’s year, XX% up versus $X.XX full cash prior $XX.XX, ahead initial XXXX and of our is a guidance.

X. growth organic And XX%. acquisitions include GRG Full if or of on you capability Our XX%. year sales full growth closed deal of five revenue year we new January the bookings

the really set. that against we primary really So, objectives good, outstanding performance

either in goals, So or segment in obviously, did This of both really financial are it obviously we because strategy long-term we business the that the growth. grows advance extend the or product addition to set better TAM, customer for serve. meaningfully is business which ‘XX, we the the and our in positions helpful, pretty beyond the

So our just a highlights of beyond few XXXX. for

we’ve we’ve acquired, So we know, progress in and applications, global our significant public know, ICE Solutions. fleet, charging got Fueling charging And capabilities, home mapping that integrated to at on you our you software. payment network. European We’ve got EV all our

So there. great progress

AP business. our we which Payments, Corporate Payment end Software Automation AP In is added the business, whole Execution company’s front an to fastest growing

each with super we’ve $XXX core million our of revenue gone those workforce delighted in In beyond workforce, the new vertical the two business Lodging, ‘XX. and So insurance in reaching airline verticals, to that. vertical, almost

to QX we more expanding and Brazil, now Solution. We’ve And $XX accepting I And about our transactions. gone reached annualized Fueling users. million more sites think then even finally, keep tag in exiting

strategic combo have performance, and really call So what good significant financial ‘XX I’d of the progress. in

So, we’re quite pleased.

a meet me environment. make is a the let what challenging important to most to gears and and right, objectives, shift our We’ve outlook. to turn our XXXX build hard All worked plan

the So is midpoint. at guidance XXXX our here

that then $X,XXX,XXX $XXX be at approximately up million, $XXX will of of up billion billion X%. midpoint XX% million. would $X,XXX,XXX reflects or EBITDA or the about that cash revenue $XX up of XX% up So EPS reflect that And

unfavorable lower certainly significantly pretty year rates. We’re and smidge environment interest macro outlooking a price a this with fuel higher

a guide in apples-to-apples expected are our an $X.XX. we’ll of reduce XXXX to $XX.XX cash be about EPS things by environments. two those cash EPS kind So giving Implying,

grow Our exiting ‘XX sales a new XXX pretty about does margins to out important the number for plus or plus, plan with expand plan in basis and deliver year, our XXX basis XX% XX% the of expenses points, set to control points to organic objectives operating a XXXX. full diet growth

major to have we print think can assumptions and not divestiture. does underlying see so to Russia, our ‘XX or that Our Guidance X% guidance add assumed XXXX first elevated growth. ‘XX acquisitions we assumes ‘XX it second of guidance, based and will plan but global rather XXXX then that have a our This finally, and the we more can builds debt And volumes, equal manage the include do in to there. recession, will from we half and project although on certainty bad about US our XXXX we are X% it’ll be level, just the and half. our really what revenue first

outlook Our a this plan ‘XX few by confidence in is or bolstered things.

You know, you Good, cross-border we first, the Global deal. closed our we’ve better We finish. know Reach, seen ‘XX thought. now than

So in We’ve already. that’s numbers. our made cuts expense

are those us. So behind

price rate expectations. slightly fix a for We implemented our qualified our and we FX slight interest We’re our lower bit better trends. earlier will that rates. that but seeing interest obviously swaps some tax recent improvement in expense rates, XXXX and will Brazil Tax-Happy two just than then recently lower both And XXXX improvement, lastly, fuel consolidated

me transition an on let to which important priorities. of some update our is subject, Okay, last my

So start Russia. out Russia, let with me

making So progress. good

at group a looking use probably buyback $X.XX a stock. the we’ve about And cash select Russia that mid-year lots dilution. sale with we’ve our interest, buyers business, close, we’re the our parties And at moved the $X.XX asset. point, of If this late of On number the somewhere sale recently have to would be did FLT is potential diligence any plan into we of QX. kind of Timing for had that to of of proceeds a year Russia phase. EPS bid buyers, to

me turn the to let FTC to homestretch. finally Okay, the be in matter, appears next

do implement. likely detailing in point to disclosures order, court here and that an processes at we’ll expect issue We’re where a we to need sometime the QX, incremental now

quickly implement clear those once we’ll move obviously, So things. to

we time. will Although require some

have a will have mean, a the as Nor performance this and our going performance. a financial that that last disclosure, I our made material impact few forward. just had on believe have we voluntarily changes order Court impact process the we years not financial material do reminder, enhancements over on

EV, up, again, initiative. good you last know, progress So on that really

call commercial the in solution we So UK, we’re in with our market what EV three one fleet clients. now and for

charging public commercial charging integrated the EV it in home ICE at traditional fleet and, And network, of got this solution. our about using those Fueling, So X,XXX of we’ve software, I of think all into course, a one. includes UK clients UK case,

there. So, doing well

really customer solution in with the in for Europe market EV we’re an Continental segments. Additionally, new

you segments fortunately, beyond all operators, so segments, our us those manufacturers, drivers. even is know, three which include Payment by to customer we And adoption Fleet EV incremental fleet, EV car business. So for commercial would are of all new clearly the seeing charge-point

So, out report this look, know in EV want transition big a do player the is you and goal officially be blocks. again major are a – to to I of we the

growth positive obviously in retention you finished trends, know, financial Okay, full ‘XX helps pretty well, again, again, and super XXXX this setup sales year year. good, a that important we’ve so closing, XX% and the advanced we performance, for beyond that guide. you of bottom line, the Again, know, future way ideas of the of company. XX% top ahead supports and the year initial last number

by Our operating absolute weighed sure Outlooking down EBITDA, outlook think you revenue rate for spike. the will although know, expectations, margins improving profits ‘XX interest for and positive. double-digit our be we

FTC objectives us. remain lap stake the clear the EPS world. once our going We Again, And range and EV to We our headwinds. XX% to overhang same lastly, new in position big cash to the expect to opportunity first in XX% our XXXX do grow time to interest continue here mid-term expense we want for the The intact. Russia we’re in out half.

to that, So a the provide call the quarter. Alissa more turn to back on bit detail let with Alissa? me over

Thanks, Ron.

financial the details. First,

revenue driven XX% percentages a past from $XX million The in organic of made posted the tailwinds from or into by which over came X% $XX quarter, remaining and macro growth acquisitions we in year. million, million delve mentioned, I’ll the $X in moment. As growth

in of the to repeat from accounting XXXX, true the growth by affected normal not acquisition course orders, impact expected accruals. items card ups to quarter the fourth revenue backlog breakage, and including Organic one-off negatively of was

We expect growth our organic double-digit XXXX to revenue targets. meet

new direct average and driven Payments’ by both growth revenue across was border. continued XX%, Corporate strong cross sales

continues Direct Specifically, AFEX and Payments into strong. robust to business another remained our the XX% sales nearly of all quarter, we very Activity Corporate Cross-Border were new demonstrate full as Cross-Border XX% our levels robust and platforms. completed growth. across very grew geographies, integration up good tech was

Lodging continued to perform well, up XX%.

the in we’ve quarter. recovery lapped substantially suite COVID we’ve this While business of the Lodging growth into was durability benefit, still services The XX% as the business medium-term. profile our the enlarged TAM largely airline airline and the of up over bought

growth in was International we vehicles. up offset in largely mean Micro US Fuel than Micro, our SMB And Fuel by less X% by softness Customer with with segment. five companies organically

the of fuel cost prices, case smallest economic bad higher of higher SMB their in the ability trucking, small. resulted debt. manage and lower negatively the has rates their The fuel affected micro including So bills, have which in of inflation, to expenses, spot

also shift among segment. micro We’ve some trucking negative mix seen that

and both economic As as those filling fuel larger our the more the bad generated headwinds. in lower micro year these moving quarter of volume to debt is losses carriers. contract higher volume brunt of move margin This the fourth US independent XXXX, XX% margin fully segment than trucking full to drivers

In Given a of get in standards we to micro ahead that segment rates and the was of result order purposefully further significantly targeted we are on the client credit tightened organic the higher growth stress quarter. in and micro have a way. drag the narrow approval fuel this segment, loss any experiencing,

gen to segments limiting approach demand activities, that prioritizing drive customer our balanced a and bad industries in All exposure. to taking are XXXX. are We customer healthier fuel while growth debt new

clear to in return tighter back be first effect the losses that likely growth normal of XXXX. rates segment overhang We would to of the will cause the to residual to and the of of in higher will in credit continue low at end the this But micro growth and range. our normalized year. XXXX fuel fuel This half half expect feel organic

$X year, strong of impact revenue X% in compared by last new year. the Tolls the was almost sales non-recurring fourth as masked up of was million of quarter last with

quarter, current the of and year in strong were mid-year offset sales sales Toll benefit from prior one-time some software the impact. recovering helping

Toll Beyond network parking drive to over Beyond car We Toll lots, washes and rate expect low-to-mid-teens in and tolls accept including progress X,XXX that out the made building to return stations, our XXXX. its tag. X,XXX locations, growth XXX have thrus now XXX fueling We’ve great X,XXX

reseller from XX,XXX holders insurance for customers, This other fast. to more are service quarter. offering our have than quite companies of a our additional to in preferential tag X pricing. we an is we Brazil, policies growing As negotiated We the more in million insurance than insurance sold whom

also a business. the All distribution largest in We bullish is total outlook up signed for the Santander fifth our very bank country. in on which partner, as Brazil all, we’re the

programs growth organic program quarters, organic and Gift the XX% between which QX of the lumpy year nature prior and card pulled the as to that QX, the of QX improved newer growth year in sales full BXB that the in Due down online the year gift was as repeat. at growth, in not card orders best prior did XX% was orders business. to quarters, over last forward have it few current is look

down increase QX, million million due levels, office higher debt recent further the expenses expense to to associated statement, and in reductions did represented prior and the bad acquisitions, with We income of over termination leases. Looking space $XXX of operating recognize $X staffing volume-related primarily increases. an

the adjusted for challenging our we base current environment. expense As

close will consistent or the suffice focused million quarter eye to what we’re our We basis very manage this, to $XX it. expenses to X manage level. continue we’re about points, expense debt very our but Bad it with a I’ve outlook. on with was talked already say, doing XXXX on third

well up borrowings for XXX% for the up over the line, by the driven year These for $XXX and higher on expense debt, quarter, million floating our share interest million prior as full QX and was repurchases increases as $XX rates XX%. below reference were the acquisitions. incremental Moving rate

Our Brazil benefit quarter. The and effective versus quarter tax guidance. was election impact tax for lower than in of year, pandemic-related XX.X% our driver XX.X% last XXXX was the rate for a realized the primary in the

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

credit As our earlier extended through facility the in maturity we and year, and approximately at a upsized the reminder, June extended attractive by rates. quite million XXXX $XXX

accordance adjusted December As of our calculated credit as leverage with times our XX-month XXth, EBITDA ratio agreement. X.X was in trailing

in XXX,XXX during we price again for roughly average balanced $XXX shares billion. total, capital at XXXX. Our X.X quarter, repurchased share. allocation was of In XXXX an once per In the about repurchased we’ve shares million $X.X

in on investments, repurchases. have XXXX, count than for Lodging. we shares Our is XX.X acquisitions We X XXXX, over back years. share $X.X last two year and shares reach over million our guided billion the guidance In spent still authorized minority and future million ago. In $XXX bought on total, excluding global January for Xst, Corporate we’ve positions Payments solidifying for EV, we XXXX what lower a million to

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

$XXX share such for and And due Looking QX income revenue adjusted is between have $X.XX This lighter quarters XXXX as and to $XXX businesses, to be between Tolls and million per holidays. certain first net tend largely to million. and expecting due ahead, Fuel, weather revenue to to be seasonality we’re Lodging $X.XX.

the both As lowest company. quarter profit of the and for in first terms tends our revenue be such, to

the to half. year flat into of levels, in for for of then will and preview the providing. the XXXX, first year bit managing be improve a the expecting the a first year the note debt to have it are we the and Of the bad second anticipate are XXXX We we half full tracking of few we weeks guidance higher

net $XXX quarter XXXX million curve interest and during between million peak on sometime expect XXXX, to XXXX. as of expense based February be third Xst, forward will rates $XXX which the reference We of the implies

further rate series fix relief over in Slides $X.X forward provide As debt. our to period. on The earnings floating interest a and and rates. billion rate, interest lower approximately into downside to can on locking reduce on we risk These in future XXXX disclosed see agreements of you expense our three-year our of helps will limit the of we a from by and the interest release, rate XX enabled rising spots some entered XX curve supplement, rates rates us rate inverted XXXX swap

with previous XXXX. swaps fixed new these most With variable total billion along our debt of now swaps, outstanding for a have we rates of on of interest $X our rate

from on a we of to notional savings of lower cross-currency swap week, benefit euro into rates, euro interest Last million X.XX% also with entered implied $XXX debt. an the interest

risk interest these will now the by on XXXX. continued estimate We with various $XX or $X.X managed debt, believe interest in our FX associated XX% With securitization. excluding reduce risks these help we actions rate expense XXXX. the and million to have swaps, swaps these We increasing rates billion of interest mitigate approximately in

rate slightly tax our expected to finally, And higher and XX% XXXX XX%. between in be is

the Brazil in more tax holiday rates the by is than higher offset benefit UK. tax from As continued the

UK the XXXX. assumptions As XX% rate supplement. our found in The to from statutory be tax April of our press increases in release of rest can XX% and

I extend force the than gratitude to us will I would year, a deliver employees to complete and to great heights prepared a our world to strong more even such like who be my finish around As throughout helped greater the driving XX,XXX remarks, who our ‘XX.

operator, in interest your company. the we’d And to for like for line you now open our Thank questions.

Thank you.

the go today Sakhrani Instructions] session. will come question-and-answer Please And with [Operator now question from first will ahead. Sanjay begin our We KBW.

a – the or come. fleet to just this you curious delinquencies bit the just you if things of contained SMEs. weakness indicator that was I’m of the little about SMEs? that were business? more be a talked I’m curious you. among weakness fuel Thank among there micro Ron, inside rising fairly any other any this think might And leading there other was Or

know you market, pressures guys you up such. go macro haven’t any additional and If I assumed

yes the the is the et good And the and short fundamentally US terms a and terms Sanjay. business bill answer. pull and it’s is the question, collect cetera. money, different. Yeah, internationally really we money way fuel we all business, The fuel because The

we’ve on XX% we’re or sells only small, and the and about one the talking year of the a new two accounts credit micro portion card the super-duper again, super-duper yeah, that and again, place So the two, of books, that mostly overall seen losses.

although So is business group sizable. not group the are that from losses super the credit sizable, of from amount that

So it. place the only yeah, that’s we’re seeing

In bit cohorts, a know know, longer fact, when months. super It’s we ratable the they’re study mature the you on XX months XX or larger more trailing with the books. to you

pocketed it’s So some super-duper for reason.

And leading don’t a it’s or think looking you anything indicator historically. at

We mean, as six recession it. and good We months about macro you I talking you the up. just we and know look see start in now. sales. see it it been the volumes. get guys And it months and where maybe this six is know I don’t We’ve mine. saw one look ago, for it September, study delinquency Yeah, This don’t it kind everywhere to call in we October, step see place up started, don’t of we showed as don’t

So, my you is quasi these businesses. are that, know, consumer personal view

got ran the know, pressure, depleted, out, and know, on and the just others. as kinds businesses savings there’s than more you of You these funds as

it that go over hey, me, our said, and Payments that so see what up you we move from business dollars we dollars plays until fuel and we how always right. And When implementation guys know which sales saw tiny and there you out. away we Corporate so, okay, ask [inaudible], get is faster

Okay, great.

to quarter. quick know in happened rate on, Just follow-up Alissa the of for you fourth that impacts the some growth one these

you I affect items growth lot I’m in across been one-off the the just that as there’s did of curious, a know, those multiple lines, As different rate. segments, look variability items?

we a our mean decent in amount It did. Tolls so thought I in bit as well as Fuel our a business. business little

two. Those

Yeah.

great. Okay, Thanks.

of know, collection. it stuff, just would this all business And course I is be seemed you normal to add, just a

a to out X in were to point we’re this call of XX. back you Sanjay, Ron thing or a want the view they kind at it’s opening you more we know basically trend. that the of out I bump outlooking, try it than quarter you did know, this again, sitting Yeah in

our run So it’s minds, issue, in really not rate issue. comps’ a a

so it. All much. Thank you Got right.

to to Good Yeah. talk you.

come ahead. And our Bob question Blair. Napoli go from next will William with Please

Good Appreciate the you. afternoon. question. Thank

did focus more Corporate deceleration talked strong, You know, color mean, very business, areas you strong, about AP on the maybe in of being I Ron, the Payments what within but stronger the any – of lot see a maybe market? just So areas? your the little And you quarter. were type know, SMB on what that in significant deceleration any the you a

hear Yeah, hey, always – doing you you’re to good good Bob, hear it’s and well.

we for for category. number the know, for posted probably that’s you And quarter So our XX% ‘XX. organic the

me asked I of we’re now. haven’t looking You But overall inside say about our really yet. XX% XX%

than more is. than AP more So

of really channel So inside except it, a the everything did thing. partner well,

before, other some You of know, rates. different that to five volume it or some years partners move the get this go to we’ve that people said four at

business flat XX% So been probably to direct which backwards, now is the has we’ve software line know is fastest and you it’s, where some that the XX% modality businesses in we on started And that I going growing of think AP, I the probably have think full particular the XX%. quarter, front up business every the end. growing, are means and

So is even volume our lead up.

the you whole honestly front piece in rock the eaten another or process at is well. page of which know, say, they just I’m me I’d sales QX, So and the of deepens were eating, geography. doing in the business up us were looking sales we’ve Cross-Border business of XX% in the Again, the

firing thing, partner the cylinders. literally all say it’s And so, I’d on other than

you I’m you And appreciate guess gas looking EV, economics forward lot. EV would. – color? get you you And any and on you can the have a in this investments that? your moves versus your you where any question your Thank as especially in you give more know, give know competence is, does Europe, of continued economics I in if you. we you experience color more then Can everybody sure there, the else have know,

Yeah.

Another super good question.

So for commercial early. only of got business fleet a us the for the look to and of out kind they’ve to best there pretty been the UK, right. the really big us look right place is blocks place We’ve

when use about active those fueling got our, think know, among clients looked we’ve I the I accounts. think about that and penetration both of I XX% So X,XXX EV you average traditional amount the of EV is some

for What to the from is sure But accounts, as less reason enterprise I fees the customers. they us The bigger obvious ability get that you enterprise, is negotiate. so from probably things know generally the fees new they accounts pretty economics the EV favorable to these that need are super and EV. to right get big and then move

story looked XX the the accounts don’t report it’s that the a are won’t I super So that with enterprise. small I be XX like or same probably XX% at up sample, the something exactly guessing know I’m account. revenues among

the business it come looks agree back in we’ll fleet some are it’s like say indifferent we days to our do. based across, I’d early commercial follow. this question the the comes because actual are. the is know, you But more economics? in out on and yes, right we to So, on, XX just stuff data question, I probably to provide told million-dollar guys report

rapidly? your Are EVs growing – And

XXX new every United really. don’t registered EV You the but base year. are is, States, like know, I it’s again, in new car and you is the of new mean, the know percent sales about mix vehicles, I the vehicles, the $XX think the million XXX know a are million obviously growing, I there’s not sales right,

it’s them XXX. half X EV, So on were of

which you the other Bob more know, right, and is the happening is is super is on So consumers, these, to going there what base in adoption which there’s you the and to manufacturers things, versus to like trucks in know, car you because EV hard and lighter wheelers, heavy more be, EV. XX the going those for is EV be move I way it’s the again, coming other us years of say, to vehicles, motivation consumer know, chase EV

you. Thank

our Research. ahead. from And come Wolfe will Darrin Peller next with go Please question

a in we and industry go of Payments data Ron, around bit again? Hey, SMBs been being for Just decelerated. there’s know, the obviously guys, thanks. BXB segment a lot having activity can more, minute the Corporate because, know, a points you to you some back having little challenges

like you’re that seeing seem don’t as much. You

maybe you seeing on in little are color the what marketplace? So, a

then just medium-to-long-term. And more importantly,

that’s with the assets area obviously convergence account to combine know, that really pay, some and of it’s little talked the a and of an How update on maybe solution invoice payments, that there whether acquired. assets about know, of Just we’ve You payables you lot other that the a holistic side progressing? a some of more terms in you’ve has well? been as offer

Yeah. Hey, Darrin, it’s a good question.

market is news good the business a So Payments business. for us is Corporate our that, middle

in look like $XXX for you there $XXX So million average, clients. million would revenue to the know, our account

you you a of company, So decent kind know, you sized creditworthy know, know company.

middle So client. of would business call Corporate our I’d XX% is Payments market all what a say we

whatever the kind extend to trying a So year down SMB really trying of was upside to move market. half made, ago we and be that’s that a

So progress know, with you and we our we’re made on what’s haven’t friends it’d as some there. going given lucky of be we, as maybe much

on So that’s know, number is at see compounding if ‘XX. at in again, are you business, nothing, direct you you the partner piece kind at of the know, here up, headline, we’re as And is, up outlooking seeing you revenue we’re is out kick numbers, the same spend XX%. the the volumes can

which of there’s ingredients to feel get six a know, come know you plate a we super million and question, on like plate. second also your you someday good a sudden, and making Thanksgiving it’s a is, is that got dinner On one now is I the is all stuff there the the and items X all

don’t got we a payment say, AP pay all the we got every international global, know, close want we stuff, you capability, got we I done, we of got done, smartcards, we to got to kind We’re networks. modality, but frontend automation software,

with whole package know, the buy have our market sense And now line got AP CFL say stuff to to now, marketing the clients. brand sales we of as a the we’re an as to And between We I we the going that and the smartcards the more the package getting is kind market, guys offer coming we one the company and moved in challenge have it’s and in full we’re our of both of us. now stuff makes more would clients in to it think here. So because pack so these of so I front and we’re you middle integrated branding move more stuff, forward to educating the more sell stuff, in office. way Darrin the

I Ron, revenue year’s for okay. off you there’s obviously, But, Timing-wise, trends, we follow-up out is if seasonality Maybe quarter. to this when do you’re it. throw and called rate. X% I’ll have it quick which that Okay, actually again, the of items on that’s last revenue growth now, one-time growth you in some okay, coming know, a know just Alissa on I the look then just cadence were rate, those there at

Or that see in to impediments year you no or terms for there’s of do clean that a pretty basis? growth over have that of sure other adjusted items make we else? beyond to to – you see kind Just macro grow one-time anything any rate macro being this – do that is

revenue we always call same we’d which anything that perhaps growth, expect quarter macro would the expect as than organic I make we meaningful. Other of out neutralizes mean, I the short prior year. those wouldn’t that Yeah, in items, adjustments,

we, mean, So be back fuel speak those spoken segment, Yeah than only of. I I I encourage we’ve at you look But to our customer the micro going I that’s that notes. business. as SMB the think item to would to to other think no,

it’s role You is, know, points the The guide guide of couple the and we’re there XX% today, guiding you midpoint for again. and of Ron know, right, organic the at kind acquisition. a the XX% add of XX%,

That’s That’s So chasing. the the XX%. number. we’re print at what

Understood. Thanks, guys.

Good to talk to you.

from come go Huang will question with next our Morgan. Please Tien-Tsin ahead. And JP

to Thank wanted outlook. I much. ask on to the chat. you so Good margin

you’d I think fund. that XXX bps mentioned

bps previewed days ago, XXX XX So bps. that’s XXX like you to

Is or it costs like days? investing XX more mix? last the that or things in in about changed what’s changes curious thinking So around

good question, Yeah, Tien-Tsin.

XXX, that plan answer QX I spend is, to acquired And XXX. we’ve full yeah, the we the I more is, on businesses. decided just year money and landed So guess, short the

XX OpEx, incremental, out our think But don’t know, did, core below the acquisitions it’s only $XX it’s another, of million all X% you I so look million year-over-year. or X%, if I the kick we So we’re at or X%. spending $XX acquisitions, pile

and easy And things those like diluted bunch to things, you one-time sales Reach, investments things, integrate their of are they’re, they’re Global a stuff. know, so a

oxygen the a was to The call we that sure got the that can it. sets so that was return new we gave really get to on just that so And enough assets we make call. of

a kind could we with since then the we it. design, know, start we and goal with start all And of way around you you make numbers what’s work, the work know, our

sales I kind top, in the to, XX% So guided you kind we you kind we growth of of high know, the of know, we on profit like made and number XX% EBITDA XX%. where of, felt teens, the want

fit the growing faster, it operating into of you we it. to call so earnings envelope, kind the So made know, do so obviously,

a the your right No, then follow-up to just of quick pause see but the have just ask pipeline little you. as you short my including make. Got bit from I you’re perspective, – this, deal know does the run deals. deals going spending Then I I on, more do the how assets on always you a know that’s a appetite on standpoint? lot Ron, in to investment to making acquired look? from do we or NAVs are a the a more can

Yeah, know well, Tien-Tsin. you as certainly

so never you in I’d waited longer kind capital. right. cost seeing pipeline am bad know, think Prices there’s I for and little say a hitting answer valuation think side, my had the obviously are good bids of is were the we for bit you have of deals. reset waiting on have to the than of people bids are yeah, looking good that on the see been the in really mind the looking for kind some some the bad is people We down I the deal longer know, without the aren’t I I

right returns. your to raises the confidence you thesis, right to make trigger your and So kind generating pull of know, we’re the sure it

a know, you there’s little say between I’d tension So of bit those.

cost So, better bit to maybe a valuation capital. outlook but higher

have always had you buy know where view it We’ve as double look just always and financial things but of some we’ve not profits. a been it. buyer we to absorb So, how of

maybe we’re So is we you off. back again, capital trigger cost I’d can isn’t as short-term we think sitting less returns we have, say like you [appreciatively] about know, things know, make excited know will. and given you here the on but capital We’ll attractive. in the, the can, that we short-term to [ph] long-term the buybacks pipeline probably quite okay, again to allocation we that if we

know, crazy, de-levering, you rates. given And right wider borrowing spreads more attractive, between rates are and the deposit bit a frankly, is

billion, So billion some plan, about thinking how is I’d a say bit the of a Alissa? of that affecting the kind these was $X.X is changes $X.X we’re Tien-Tsin.

foremost I’d that we on. So, say and deals make is first always my can returns go, make

is thoughts. clear. It for your Okay. Grateful

from Barclays. Ramsey go our next come question El-Assal will And with ahead. Please

need and My Thanks question. my be on is Or now Darrin’s capabilities sort wanted broader to you technologically for having to maybe the within place of still unlock you earlier linkages realize power. your in taking enterprise, kind enterprise? to question know kind and Payments that all broader so the actually question Corporate within about and there the I ingredients of response segments across positioned the follow-up to are in that selling? the well entire all to Are of potential of much in segments. kind order synergy organizationally for cross made the initiatives

the it’s in question, Ron. on a reason Yeah. ahead a and and synergy A say Hey, business. It’s we’re market good is, middle I’d Payments, the super-duper. Corporate Ramsey, relatedness it’s primary out

So you $XXX needs, revenue, that’s whenever more go million to it has to a $XXX client, million right. got of

got things, around, of you it’s a a lot obviously got AP, $XXX more if right revenue, probably employees to of running obviously, of does lot million it’s got $XXX million it’s It know, vehicles. in

see fleet clients, And among payment shocking. which Corporate XX% selling And us spend know, runs guess you middle XX% so, to Payments example to I volume cards, all market corporate for our be clients. of the our you’ll wouldn’t fuel

into say I of So would that the for be will will sure, there a package all same area, client. services in that be sold broad

thing, of I the think we’re a move integrated going As tech towards because org. I is into more you our ahead the move saying, to organizationally SMB frankly think model like you’re

And starting so vehicle-related we’re at to consolidate purchases. the looking

a truck you know, recharge EV or the in parking Lodging tree into pay spot, you’re buy when hotel. to if the a XX% cutting go the sitting to or of you and you a on clients for actual you you drive car, vehicle, all fuel even So our toll, those, a whatever, of company

in us vehicles the around vehicles, the payments. business, we’re company So make mostly and running of helping

And more before they’re super-related discrete so thing than way it’s a though, we’ve as about though what things. talked

And more of you move market. so, then you’ll looking and the thing solutions see us at Corporate the to as that organizationally, know, for middle payments, start set Payments as related vehicle, to the again,

me. follow-up sense. That quick was super helpful. A ton for of makes a It

Would expectations so something course applicable purposes? you just your Payments. tolls were sort XXXX a for year and and for able mentioned I expectations rounding think if mind out in the guidance, on that for Alissa Corporate of out us segment-specific for and giving for I gifts call And think we fuel. the you the the call to modeling Lodging of

Yeah, sure.

obviously with of of midpoint below XX half, and channel you Overall, maybe north and if a you so even know, Corporate second maybe give XX XX way smidge and north and Lodging that half. kind the but So would XX. mid-single, kick Payments, the out another going to I’m above probably the XX stronger of Brazil, channel. weaker a smidge it’s in first be again, mid-teens, fleet

to we’re on the this and saw mix just terms And we to super you I’m again, super guys I going marketing investment we market. rounds pour more have before, you know, weaken middle micro of the XX. segment thoughtful when heard just the okay, that sales reallocated in literally that’s design So the said into

see of You up bit you until we more just how not this know, of, you and certainly not that risks out many micro kind segment many, has plays little macro that tread you basically year. this brought SMB know, earlier and as know, know about a Darrin water kind

So you. of de-risking we’re bit, kind I plan tell a the

Fantastic. Thanks, Appreciate it. Ron.

ISI. And from with our come Sumar will Sheriq Please ahead. go next question Evercore

you throughout not, throughout does that more there have my share million accelerate on Hey, to does the especially year? if would a buyback for Or the any says on question lot the Does assuming question. a it count, upside buybacks of the year? sort the it taking year. then And assume that the I it EPS the not? be thanks outlook, for $XX XXXX full

good Hey, Sheriq a question. it’s Alissa. That’s

never like we’re You we share know similar our buyback, say to our to it going count, in first sense. on guidance, include I’ll decision the they decisions because impact make divestiture, until potential capital we see those acquisition or of allocation hold

that do guidance. we into not so build And

is the in, year. the of our consistent guess number the of as in assumptions the terms what And we then we in presented share that rest see you count, run I expect with we for

QX Yeah what printed and right. for we QX,

us what where aligned now in you can the out QX you see coming Yeah. fairly of and saw with And QX number.

Ron. it’s Sheriq Yeah,

of that assume the you a then to cash models take to is reflect update right. that know in different we’ll de-levering, default just through know debt run just QX, reduce as in billion free $X.X and We always Our capital. money to do you the of we our buyback generate extent we plan the that to use flow we guidance year,

Understood. Thank you so much.

next Wells with And ahead. will from Jeff come our Please question go Cantwell Fargo.

AP Ron there. – is that end you you this know, all Darrin’s what question follow-up and you to remarks, know congrats doing in on that AP been know is we what And whole XXXX, a the added said Hey, your an results. execution on front your automation earlier. you’ve software In you business. thanks prepared

you there to that years mean that your forward? does Thanks. trying front that to us end? on is Does going understand way? those you how Can help the and think forward with would you’re that end about going capture that over the just the others mean you’ve volumes strategy any execution know, question front the my in that what So been on impact partnering there

while not you picking I’m up it for rephrase me? questions. Can the Jeff, [inaudible] just

did, Ron, so that know we A. watching And you know as and, well. we’ve Comdata Yeah, of you you been what course, have

picture competitive you’re into to you’re you the figure angle to you doing with the what trying start how there’s front SMBs? we’re you some market bring So as to out know to know with that on going if end,

that Yeah, Okay. competitive there’s angle. clearly a

so I I don’t that know, software you you you automates approvals, do. actually bank you companies help simplifies electronic sold for automation AP, or digitize execute know you knock-knock, a software what AP got lose and And your hi, knock-knock Cross-Border that’s think said, payments historically, can stuff, we AP software, you Payments. then I’ve processes, standalone automation hey, know, it,

know let’s time we’ve the idea And them obviously. been which so you is, both, already, at long a we’ve do connected

your or print and to modality call ways your we every you better all, the paper you help the to B you, knock-knock, company and checks risk your So you or you know different hey, all and bank the we’ll work reduce will need thing. save company in make will time FX know out don’t can it execute whole process specialist printing pay do

not advantage to have package we’re you you more generates know, you know clients huge non-bank the early be the already. AP you that thing, it’s and one a know because historically to that provide on on a think know both to sides more of interested biggest to full people we seemingly been it’s value of got that payers have and leads, think biggest we I So

a So advantage I us going is big think pretty for forward. it

it. Got

just Okay, one follow-up. And great. of the

is question revenue question cap you know, you’re company the is, payment of know, know ratio just generating billion of I here. you the billion on $X.X and is, you guess EV. an $XX annual an found Just for And unboxed you’re coming market a the earlier you that

five us can three, can EV cite you out. – So just you two, remind present opportunity got, know, in years revenue you that

impacts, this you up and et pick effect, to cetera, substitution trying incremental obviously know, We’re revenue cetera. et

that you how think about So frame we models? Thanks. would as our

Yeah, question. another good super that’s

revenue, size fleet is, you So of a know thing on our I’d you the billion we’d replace XX hope future, what went now so we But everything easy, between whole we’ve the and defensive first years on years out. billion the then. have side, grow we’d time opportunities, the the the business, if is, business commercial and fleet a however plus into $X.X the first a a obviously say global so that was side, XX off, business got the long right, it’s $X.X business,

station is opportunity through we’re this the gas But get operators for and us, vehicle I in, that the new through think nearer thing charge-point bigger that know, carmakers, it’s lighter consumer the are to EV going called, operators. to you

on of big that and to of is that business, the part light any spending money me, show our right, the our better, we’re the strategy segments we going vehicles. sooner, So going chasing think work are part offensive today excuse are that two new vehicles up because

a the a just a not is every, That’s mean, I right, TAM. of in massive, adoption. terms you’re right. of vehicle into fleet, every function that’s, It’s So obviously, there commercial it’s again

massive, I guy. business. said is the repeatedly, the I our thing think be it’s strategy network to So massive And and a

our pick And that unique idea that You and company better have, know, is the that creates economics. the that same. volume we data our networks is proprietary we then have built on up

open collect put networks acceptance going We’re where we to out if together interesting what is I charges charger that’s EV like the data kind of are clients there, there. to drive

in super to new big carmakers going know our that be some right that is using charge try And got or we we software in And to XX network providing way interesting. our already of to know buyers. think simple five reduce EV anxiety, you you

just before know either how commercial long, side, you consumer or So is the side gets side right the The question when, massive. either it’s big.

Thanks much. congrats again. And great. Okay, helpful. That’s super so

Thank you.

difficulty] [Technical

hear Hey, Pete. Pete, hear Can Yeah, you we can you. us?

Okay.

card fuel a you Sorry appreciate clean credit the side, of fuel there? hear then a color shed could like major as you the I you if a dig How sell question. Thanks. didn’t for if partner contract Hey, thanks given of out just are up? going renewals Or are any augmenting coming business into pockets the in card on on any there’s great to would know, some activity? differently weakness about you XXs? you Any intro. any that that. want on bit, just the to I your the wondering of there. follow-up It’s little sales I be side And strategy called Ron, the RFP that. here. up help the business,

to You tell. got

some There’ll of So what The question, do be on is, different do things. XXXX? the answer in for first part the in selling hey, we yes.

and done, repointing into to is, thing first we’re about the So which larger XX machine we’re accounts. digital algorithm days our we’ve

digital a and accounts. our the the point So more I that to would sales effectively creditworthy guy call what business, at tweaked larger runs models

of So our go versus up you’ll in see will new here QX size sure accounts that starting for QX. sales,

engine. So that’s point modify our will digital targeting one, the of

number into two is. we’ve dollars business. the reallocated I’ve Payments moved then Corporate And dollars,

potentially here at you said sales risk, So investment I’m if market we as in more there’s the grow much middle in know, going you we’re or that I has just macro. a that XXXX. okay, stability, sales earmark more in not to macro And in the have, space to going it least will,

se, the big, pile debt, two but really new right against And we’re per pretty this the the business, right, selling-wise. are small, super-duper, thing, micro but total of those not it’s total So bad the doing it’s again, things revenue.

fair point. So a that’s

in of long-term quiet not lot have other to the pretty there’s On and both the much play contracts, say, I’d a the game us here and one, Europe. it’s second people

nothing So really on we’re I’d there’s looking XXXX. that say the at radar, significant in

gentlemen. you, Thank Yeah.

question our go will Cremo with Nik come from Suisse. Credit ahead. next Please And

the few the confidence? the my gives the in can on come Thanks sales what the Thanks. first. we’ve to taking business business half, just of that quarters? quarter? deceleration segment in How afternoon. back in good you the Fuel XXXX, seen across touch Hey, the in last And parts your looking parts question. same-store of to back wanted I given The for segment just did various reaccelerate

all make Alissa. Yeah, got a so it’s Nick, I your It’s hey, sure good question. I’ll question.

I how we think sales how the look, you’re asking what is same-store – and are outlooking?

get How the to reacceleration? would you

Okay.

re-tweaking say of than a usually is X massive, same-store the you say in so for X same-store I know, again did we quarter that see minus soften to a segments. healthier I sales we X. to board ‘XX comp target engine as reacceleration, the in across range. refocusing head as credit we that would into and more And short bit those into quality engine customers, minus entire fourth just we repointing always to really in to But engine look that then say just the the easy bases plus little sales So the that is customer would digital higher yeah it sales, a it

you that the me like you’re we’re Nik, super-duper the let deteriorating. pull trigger, know, sure, we of accounts small conscious was health Yeah, super make this that clear

So selling to we let’s okay, stop them. said

and too, and then then because attrition, their delinquency great the softness it right. things basically so so involuntary both thing creates a more stop, So happen, second, up, repoint those volume was of

not You the – we’re going to keep open. spigot

know, you if terms tightening you We’re look, shaky.

bigger turn didn’t our a did And sure that a so tiny to into business make it small little of part problem. we

So eyes open right our with we went thing. wide this doing

And bigger the the is, moving been XX answer and repointing mid-market. accounts fuel so then the thing to days, we’ve to money for

So nothing we’re happy where wrong. there’s

in the Again, worried to about not thing. of more the our We’re have second plans half.

reasons something, want for later. It’ll of X%. first decisions we hear But going it’s and right both to that over second to X% and think cautionary X% to made be not run the or do I things half, these half. I it, you

incremental Understood. stuff. Thanks for all the

got it. You

Please with ahead. Securities. our next come And go Andrew question from Truist will Jeffrey

question. Thanks on [Julian] the This guys. for taking is Hey, [ph] for Andrew.

and of more modeling So I one have quick kind then a general one.

growth rates, Is that? the to like XX% think about XX%? about right to think that So business, way is the we normalized how Lodging that like

XX% to to XX% XX%. XX%.

XX%. to XX%

prior a Like, an is had Thank the maybe terms that then in well, there pipeline looking of bit. on you airline Like EV. the block something much. to it. you that know Okay, I seeing? quarter that you there? deals kind on got little know said of Any Is you really of this expand that are elaborate you up. that did very you’re Kind there? in-house know anything in updates Obviously there off And I you’re option. XX%

I really just on Yeah, couple a comments, the airline growth. think of

just continued right. one recovery, So was it know, down. is Airline you super of

volume you today So tail there’s still and still to here I think back, COVID in picks know some Asia we recovery there’s still up. got know come if sitting Asia more still back long you the

we’ve this year working. think couple mentioned, the ago we bought done things accounts that app one new we that I in know, instead know, added, of forward you we to the a up the a company it, line. logic. where at people rebooking queuing But is the speed, that simultaneously a we, with had you contract, now numbers distress we’ve you’ll put really their hotels, I right sold which first see Like of in the we for Well, the basically

So in your here Atlanta plain gets you tonight. canceled, know,

First, have out any any to you then on, you say And sleep. got and to it or available. go flights doesn’t know, how let’s find you Air to to got figure you’re flights Canada, well, a place

literally getting you’re the Our looks plane, as and hotel airlines you to off getting you’re books on rebooked. tech other basically and walking

a from they sat getting off airlines customer less people having the are So the that when plane. unhappy get

that airlines literally is could that on table we thing table us this the couple going early, this think picking the become the stakes are from to couple thing for see this. I run this

So, problem kind working. it’s this bringing an syntactic old-fashioned of and is kind of an example of

talk examples that’s there? bit Can digital a marketing? maybe it, you. in. sneak to you now little Got any thank How along? coming that’s one want about recent your I more Maybe

the mean used business, to XX% two think that up X% it’s just in years do other sales was Lodging, way and larger now and obviously, it example, I marketing probably every about think for taking trade is know, leads, chunk micro middle a shows thing, things old-fashioned, we a the or which the answer three like about, of it’s line that. you the larger in piece, we than I for bigger of markets is, ago, of talked representing Yeah business, I

say are with in the is know, sources I’d sales I on, right, good we’re not are that that compounding a up. the think But digital that you lot chasing the only world making this just also right So rate. way Again, lead close a we places. along we’re of the sure world, from digital

much. Got it. you Thank very

with Williams And Jefferies. next come Trevor our ahead. from go question will Please

you the Great, the growth an for update can now Good AP, and revenue on I Global with guess year card, wanted primary within between give a is just thinking see afternoon, good buckets full pieces sense outlook kind which closed, to of just expect to moving of know the XX% elevated any you mix if those FX, within ‘XX? be contributors then vol, Reach FX us year for thanks. virtual Corporate just for Cross-Border, Thanks. the you’re within Payments so the segment how I of currency really this with the

payments so going XX%. mean call way then it best about to Jim. I is that closer This all to about you know XX% to the direct be in now corporate Trevor. Yeah, probably think it Cross-Border Cross-Border Yeah, XX is I and is XX% - XX% XX?

move to going bit. little around they’re So a

growth in are then thing having Europe pacing right we, out so is the terms Brazil creates rates having the volatility. know, you differential I question guess differently, out markets obviously different super your rate is chasing cut the that and early FX timing US and one, you a like Trevor cut know, mean, of I good interest you now know moves and

So that obviously is of in ‘XX. the helpful run beginning here into

Okay, – then and

we’re backwards a way print reasons an at XX% year the the to plus the look, higher a almost from revenue right low-to-mid today thing deal. growth entire has we’re because telling looking get all we’re is the else obviously working, the the than probably giving number be adding pretty hey that you aggregate a to so somewhere for XX%. would in gone XX% recipe less are to Clearly piece XXs organic to everything which got to working be get But everything has you channel small just be I’m

I but cocky want on don’t of So to kind it’s like all sound it, working. too

market, companies growing businesses. trucking or areas and of selling just up. obviously to is are with Retention like the We’re spend that’s middle is you in right be other bigger great types those in companies a know picking small fault Obviously it super lot.

is to us. you that big into a So – billion business is, finally, complete. kind I is to line And I its into I for better own billion. message think know just more our of And guys $X it coming going this was, the and think ago. coming It’s what product and it was it now surpass don’t $X it’s right. but few really years

the become thing for a now it’s sizable company. So

just migrations, of the that’s last on some us? any Thanks. one just great. And with of I plan progress corporate you overall approach measured year, about update can think on year, strategic give Yeah, sell more were talking years pay. on know taking you a update cross last Corpay more There the One couple I thinking for think but any and of opportunity? it next or your for the you there

so still one but really a pretty a part. a the It’ll is small Yeah, say core because middle there’s is that market. this work-in-process, core is business

we when really we sell, a cross did, okay, product did not so the a I and do at miss the We’ve thing. get be smart to swing scene? right took we said how for the super And

we’ve in we’re so off for product kind still micro much we’re you into right and like And who and you seems market of rushed super-duper the particularly kind accounts. up have to that the below right floor at to so accounts kind know the of going call the retooling very the of marketplace know, bit, but market, have be know, the how seeing a distribution that really AP given you to don’t distribution and AP hearing super is, the middle are chase we’re like what get so small of scene not do and bottom what concluded be we that

it we wise cross the priority our the it. mess of you report know been did we’ll since biggest hasn’t on work to So we are this way sell continuing but

Thank it. got Okay, you.

reached allotted we’ve the And time questions today. for

lines attending at session for conclude may thank the to This You presentation. now question-and-answer like we’d will time. disconnect So your you today’s this