Corpay (CPAY) 3 May 232023 Q1 Earnings call transcript

Good day, and welcome to the FLEETCOR Technologies First Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note, this event 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 first call. afternoon, you us for for Good With me Vickery, today CEO; Officer. Tom are Ron Clarke, our CFO; our new and Alissa our Accounting Panther, Chief Chairman and

their open the that will you Following the get in only It for comments, will Q&A the announce prepared line queue is can session. then operator for questions.

section earnings release found Investor Relations be and under fleetcor.com. at can our of supplement that website note Please our the

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

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

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

to remind statements to new and reflect we everyone the are put reliance of expectations as information undue part any and discussion today regarding of need are outlook, may These include best business also undertake I acquisitions have upon performance, not today, update should of development statements about our them. our and forward-looking all statements. that information. based obligation They products that no future on you future these not guarantees and We statements. of

expect. differ could also materially numerous cause to results risks, are and to which results expected subject These from what we actual uncertainties

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

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

first, call. delighted have Also I'll 'XX joining for our everyone, us. who so here, is with Jim, Tom progress simplification QX Panther, results; here joining updated discuss comment value CFO, us take subjects: second, creation and on new to third, Hi, our full today X newly Tom thanks I'll and our our to official, XXXX thanks. here earnings plan briefly QX Upfront year provide Okay. then now lastly, guidance; is formed and cover review share our plan; on strategic I'll committee. on my

Okay.

EPS have predominantly expense me our above turn expense. up of of Let cash The $X.XX, guidance our up of clearly EPS $X.XX down $XXX That's to cash cash XX%, of weighed the by revenue $X.XX. been top EPS quarter, interest range. the reported finished our so would results model's intact. XX%, interest Both At up results. higher and for QX We million, X%. constant

company environment basically intended we points up basis macro The QX of those the XXXX, capability We EBITDA for from basis up margin set did XXX points the exceeded anticipated. as midterm. coming $XXX Margins better acquisitions for million, invested there, XXX in about cooperate, to a another position incrementally and of year-over-year. XX%.

finished QX That XX%, attrition. new to up quarter, XX% we terrific sales Same-store in Sales of does bookings. credit Trends target the in plus sequentially credit absolutely drive up contain above revenue so risk new the overall. the record finished performance, is Organic in X%, accelerated in XX% range. involuntary X% quarter, impacted a growth, healthy. and quite to XX%, QX our good. took segment. levels was Retention actions slightly bit by setting That micro of the at

in fundamentals, look, So spot. a good

performance in Brazil our highlight to want do I QX.

not consumers. transforming insurance. business only The vehicle tolls payments both broader from now fuel, nice for business, doing really initially to business, job and fast vehicle that include even food again, a now and a recently of but now businesses toll-centric a vehicle-related parking, So payments

Another super overall new by sales a quarter. were tags, in toll Santander, the sales new helped the and bank almost those level, record which quarter Brazil, to added for XX% good relationship with

the had continue in acceptance to insurance drive we helped that million Sem attach transaction our terrific million fuel quarter policy the most there, up growth, Parar consumers of users XX%, add-on coming in the of But engagement new also our sites. is, around, We consumer app, mobile as offers sales, fueling with us. active seeing approximately and rate a actually XX% to app surprisingly And X app, almost looking so the utilized increase transacting X quarter.

this opportunities. big-time engagement we think opens cross-sell up So

So to look, our here profits, all above revenues, Sales, of in all, start QX. expectations. a all very those good

Okay.

turn our gears with to guidance full it. behind me shift assumptions updated along XXXX year and Let

So and and billion $X.XXX we're beat, cash EPS up QX the our the EPS revising guidance cash midpoint full by revenue at revenue midpoint now, so $XX.XX. now of year at

be a but forecasted consistent ago, what pretty days We place. we puts in of same are to environment and few rest with XX the the expecting takes overall year

the got out mid-single Payments track we've rest our Brazil continuing the we're and results, Corporate improving I and that view to Also, plan. trends expecting Inside of digits, that, and in do fuel year to high organic to kind teens. of an mid-teens Lodging range. the April growth so want to in XX% revenue in of early of X% to point

in basis half, earnings of to rest QX and That see as in expand again, bit a margins levels expecting seasonality; EBITDA flowing by second points accelerate. about driven a XXX business year. to faster fuel through expenses. second will Revenues half the leverage year QX QX should sales That'll of really from operating sales than XXX better last be that in than driven micro by result a We'll run record the year. we the to stronger pivot acceleration into better market. We're up these in

last that will EPS the interest as year. experienced improve debt higher expense we half also bad Second mostly lap we and levels

signs we inflationary need actually solutions can pretty run higher important. if for our quickly essential, our eye keep Again, generally that times. will pretty to. a of any we we weakness are in Finally, services to out demand react tends for so And close macro

Okay.

me transition we're that creation our simplification or value plan. to progress Let making the on

So and areas reduce to in first, to we're working a case; that related succeed simpler company; to FTC present we complexity to eliminate we're finally, overhang transition. we're working Russia the there: demonstrate can across X basically working and this energy and EV,

first up, Russia. So

We're the end the Panther sell quarter, of we we QX. additional close provide impact to Russian hoops now would signed have And our a here, can to local will the awaiting to on of approval We a the for various government Tom firm. the documents expect end if transaction. deal. business through the Russia get of some at the definitive details

Okay.

Next up, case. the FTC

report to So here. not much new

reminder, with we been FTC both As outlining the filed and orders enhancements in proposed February discussing back some additional court. a the we have that disclosure

what up court to decide and conclusions the to really be. it's be now the what So will the order will

Given again that the go-forward not these continue are financial on order a believe we performance impact disclosure-related material the to court have of subjects, will the company.

really we moving our so actively we a change that continuing simplification, are then we're payments are ways to first, reporting that's the the a Corpay divestiture Three to set we're evaluate entire segments for noncore under solutions today's of the corporate things versus lastly, broad brand we're underway; consideration: assets, offering. X; better company. to Over considering exploring to that second, to few now X company and of simplify evaluating reflect would

make these to ideas expect the days. over decisions So XX on simplification next

Okay.

supplement. and me in XX, Pages turn to XX EV make our XX Let the earnings and reference

pretty unique a launched solution. solution the solution, it we've So call U.K. in the We our X-in-X EV

our provides in public recharging X. so one diesel at-home with fleet solution clients they can manage recharging and EV single program, make EV X program where that So purchases, a traditional reimbursement, on-road and

indications the favorable be EV actually early that The are us. to could economics

X with is vehicle. we in So see the sample, vehicle is per And at the EV quarters, actually our that that the over pattern. per can been revenue higher have a than what ICE XXX and the you U.K. examined revenue looked in supplement revenue us the last clients

So news. days, although really good pretty early

we businesses and to recharging measure really So the X and reimburse here users potentially, need million right, driver our in of have. has the case, number homes, the for

be will it So task. quite a

we're point EV building, we providing acquiring energy the some that to BXB EV the upside also repurpose are we technology continuing and consumers. networks market, payment Since decided want capabilities to consumer transition. opportunity those the potential pursue so to EV for to I to out EV serve

Europe, new EV underway we're XX we're in a buyers. So We've that doing EV their business. serving payment manufacturers, EV vehicle signed consumer building and consumer

a new EV network and EV will blocks a app, So the of consumer off when out lot, be they payment our so using there. drives

Okay.

formed new to to my last turn which the the review company. for make portfolio me strategic the options committee, evaluate is Let our subject,

know the Sachs do preliminary shareholder the Goldman and shared taking to analysis Board. and committee retain seriously, I assessment increase value. we're evaluating our to with thoughts did So we portfolio you really options have this we're They potentially both all assignments. to and their support quite want

I so. but terms want the in of our the aligned with re-rating both you that also importance know doing am to shareholders, of personally here I multiple of urgency

do report in when dissynergies. So We're it. options. more early again evaluating at have We're to We getting days, but we're we We're expect days. We're meeting folks. digging in. to XX sizing much speak

of way, in a blocks expectations. look, our out QX closing, in good the of So again, ahead

to growth close evaluating the with just so going XX% improving a up, our underway out lastly, Russia simpler guide, overhangs, advancing year communicating and just we I options, of aggressively EV And lot margins said, organic and begin rest Our capabilities. separation hopefully to working and company assuming a on. portfolio as FTC earnings, are revenue X%

turn our over Tom to So new with the some to details provide quarter. me that, Tom? additional on CFO, let the Panther, call

people our markets, the a learning up technology by and learn, onboard to in-depth last to such Thanks, much have learn my several the opportunity at is sales products, with journey have weeks spending time. time helpful, the been incredibly and better great The be FLEETCOR me initiatives, has business There more. for but accelerating to to It's team our key great been joined the Ron. strategies, curve. team an more for to exciting formally understand me

leverage, the business, confident high-caliber why capabilities track strategic company in and I'm moving talent its financial high-quality it's deliver to a to the accretive able forward. see FLEETCOR's and proven has inorganic objectives, helping can those organic generating operating both I'm impressed of that and organization. results. I'm record the growth in looking sustained and I and prospects, support top by digging growth exceptional strong achieve forward and line and FLEETCOR

to need look confident the quarter the company's we And no I'm results why in first to understand than future. farther

growth. X% last made acquisitions of year As revenue as the organic XX% The Ron macro mentioned, quarter, due reported growth in to including the was we fuel posted incremental XX% growth guidance by through our push million, in factors were a EPS $X.XX $X.XX. beat cash versus of which our Revenue FX flowed $XXX $XX of exceeded mostly year. and prior million to

we on to the growth point I organic disclosures changed segment to that year. last that segments. match the want out reporting Moving implemented to we our solution

Going segment any confusion will on in will can both the appendix Fleet, the We've supplement, and and Corporate of be X and growth for changes. earnings other. organic Slide cleaner forward, classification eliminate solution Brazil Lodging, provided reported this last be and so disclosed results in organic on you X Payments, provided these This our between map information we've track and categories. basis quarters a

across results we to revenue of exposure. sales to sales despite above growth the and guidance, our from our intentional of the fleet business last pivot upmarket on the delivered mitigate XX% strategy This was of diversification Now reflecting realization to U.S. strong the year X% credit our strong businesses. is as quarter. all results Organic

up continuing XX%, direct over by revenue Our our in which grew especially XX%, automation. by full strong led was payables AP Corpay driven Corporate Payments sales, business,

Our that solutions over offerings marketplace, are to growth selling attractive well continue and and that drive we will in have we future the differentiated believe time.

the up XX%, had already strong quarter which Reach platform. the Reach Global in for which The completing underscored as customer XX% Global remained also revenue by integration, cross the was normalized while very January. our revenue another Reach team new border is border and is to of Global migrated substantially good wins Cross acquisition sales

with a X% volume. focus SMB to drag the driven our basis, increased impact the slightly of sales larger in on reported in reflects higher revenue and recent prices, fleet when the the This line the fuel Fleet expectations. weakness a change continued we Fleet from micro customer. Organically, in grew isolate by X%,

continuing half trends our are sales good success we our to reaccelerate good ability sales We year. the seeing and feel to with from of in the growth pivot the improve, about back

at perform continues was as compared revenue last high Brazil XX% level. to up year an the to extremely business

and vehicle to expands the purchases and BXB the continues which Sem certain across grow, additional addressable the BXC. now of and strategy like fuel, for Parar purchases market significantly Our using mobile retail app insurance

We a only payment It really offers continues beyond have grow, transformed market. center an this provider business. of in the tags entire vehicle we're the is single-product breadth Brazil business toll and that the the to that ecosystem

value highly differentiated it is clearly have a in proposition marketplace We the winning share. and

continued to in our XX%. highlighted verticals well, innovation and by driving business success clients solid perform to industry This strong Lodging our reflect growing across sales win from existing clients. performance that more capturing new

In addition, increased as our and we mix expand revenue to product to XX% sources capabilities. per due fee-based night customer continue revenue additional

order into Our hotel various focus is to the near-term one networks in enhance experience. on customer consolidating our

Global due year, statement. operations income made last increase in the in the generated operating Operating were space. expense remaining was operating down a $XXX and the year, The we of and expenses like the where EV Lodging, acquisitions capability primarily further prior increase Looking million, in Reach addition representing leverage. XX% primarily Corporate the we over to Payments Plugsurfing the significant

debt more importantly, down was basis from but points QX Bad 'XX. sequentially slightly expense X

that the year, soft the to the to on debt even after path giving half we're lower Our expense consideration give us of trends potentially in delinquency bad a cycle. macroeconomic back confidence

year. our The we the basis $XX EBITDA of points This 'XX. recent QX XXX to revenue higher million year XXX 'XX. benefits as with QX expect year to from full building EBITDA EV expenses compared the exit margins still and last including throughout last we XXX was basis out and synergies bought acquisitions, integrating QX automation points the quarter XXX approximately and points expand to year recent increase that realize capabilities and better We basis XXX margin about includes generate to points year or margin AP acquisitions. basis the growth from XX%, drag our of associated than than in Remember,

million adjusted EPS. on stack. rates $XX interest by drag increased driven of year-over-year, The rates by higher $X.XX quarter expense approximate higher in Interest impact first our debt resulted on

discrete quarterly Our last in XX%. some XX% by the driven for primarily effective with international tax rest tax quarter and rates the of in be rate onetime tax items. rate jurisdictions year XX.X% for XX% the increases the and We some the versus effective increase year, to was between anticipate

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

leverage our adjusted capital deployed accordance while ratio open maintaining As for We agreement. no made including in of our as in share in deals, $XXX the XX-month as March was repurchases Reach roughly X.Xx calculated million also credit EBITDA market we quarter leverage Global our ratio. XX, X trailing with

paydowns billion buybacks like accretive appropriate. pursue port we'll M&A is would near or for ample I shares makes repurchases, and that nothing for remind we back continue then if debt there's near-term and have authorized first liquidity term, always it to evaluate capital We as to deployment our acquisitions. you still share of call buy to have believe over we sense. opportunities when $X.X And

Ron's Slide addition guidance, QX our let some supporting give on some overview XX. our In be of can year to which additional thoughts me found assumptions, on detail, outlook full and including

XX%. revenues $X.XX adjusted and between adjusted billion of share income $X.XX GAAP income and EBITDA we billion, net between between $X.XXX net $XX.XX, expect finally, and For the billion, diluted year, full now billion $XX.XX per and growth $X.XXX

for Russia All of these include full the year. numbers

to decline expect adjusted $XX in XX June $X.XX for to year. we using our EPS buybacks on the million over in proceeds revenues of GAAP lower, sale the $X.XX a Russia million remainder $XX a to based resulting be close of Assuming business, the

government, I also transaction which level that added to Russian of want an the approval subject complexity. to is emphasize involves by the

be million XXXX, per between in quarter, to interest headwinds share by and slightly what For midpoint between net fuel macro down roughly expected reported from and FX $XXX of income to and which $X.XX, revenue $XX million we is $XXX expecting price is the second rates. $XX which approximately we're at be and and of adjusted higher million $X.XX of QX from the million driven expense

our are for the price rest assumption to year. of assumptions, $X.XX guidance Related fuel using the our as we

$XXX an guidance press $XXX supplement. for off based in release the expense interest of Our average be year. of can million rate is found million assumptions of The X.X% our to rest and rest of LIBOR the our

XX,XXX-plus employees world to I'd thank our a start the who like fantastic XXXX. helped to around Finally, deliver

of quarter's prospects strength our This of and franchise. go-forward power business our growth-oriented, the our diversified reinforce the and results

your we'd open for interest questions. for operator, now to FLEETCOR. line you in Thank the And like

[Operator Instructions].

first Citi. Christiansen question with comes Our from Pete

you. added welcome other about being normalized in the perhaps I guess to new the questions now here. that Does we growth segment And could aboard should the the like Tom, of kind segmentation, talked address I in I business to past, But with here. about for long-term had X%. that that vein. know we've Great with of same into. There's change to maybe the a new things now you've also X dig some Ron, to have how segment? classification? Fleet think lot X% Brazil that kind we

it's Pete, Ron. Yes.

I'd are early so think say we're is we're accelerate obviously mid-single that accelerate digits. the on kind leg? that those bit probably in things. along hunt thing base getting we X get the of consumer come bit. So I'd And that a in, and particularly If allocating the with of the X it based in how do B, view sales kind could cross-sell Does thing, quite things target still then more? But AEV, those range, it cards with business wild does economics, marketing couple of right? say help we're a that the the to wildcard investment, I of on

know know Okay. a been toll here free in free That's to helpful. I businesses benefit some to it's I the Brazil, switching went when flow. payment E-ZPass flow. administrators U.S. the in toll

take the curious that on nearer could how Just term. impact your business

good question. that's Yes, a

to it's good the in news. terms It's to days those far, so don't pretty of for flow. So, early who Brazil transition in make trying -- it's know, free

actually in they're region. testing So it one

to the, electronic, news news obviously, is, paying good no there's -- and of the The don't the have on toll the whatever, of that XX% way the hey, operator people people. that is have for a for more after gates So stopping the bad XX% fact.

us. the help makes people tailwind it'll short attractive the because, through So because fact. It's even more it today a it's to after follow term blast electronic more difficult than right up again, for

So in region. we're that, the actually test seeing Pete,

So put a It'll in where while, better, take that to infrastructure I the one only actually they bit post-payment There's test. move probably lot to stuff a we're super lot get work a place say in, reason I'd There's thing and doing excited. to quite of the it right? so a out.

it's think to helpful say, don't to the midterm, I'd be but I us. going over super immediately So duper

Jeffrey Truist The next Securities. Andrew question comes from with

understand some a a elaborate you to Ron, update go bigger bit looks Is some fleets? I business you to you feet on how good might using Can of difference how compare pricing kind as the move the yield But continue street? sounds want to to digital met in on with on to Is of those prior. try it like can there that success. what the pretty motion selling primarily Just that more kind little market looks fuel fuel. means? like? or if of you've on just early you wonder can It market up

question. good another Andrew,

don't up to we it, not XX% call XX% are sales business we So U.S. point say of digital, even one know, the is I sell in of so XX%. kind the it, although already don't market,

I'd for we're lot is, universal time see already bigger the of And a point is a account business longer. So one. we with networks, sold say, more internationally, kind even there in so longer point have way so two we and

But back here to the U.S.

up of the drift repointing is, is we'll digital kind X So our that of engine. ways market one,

to look reworked we algorithm search kind So for of kind of the there different characteristics. basically

if door, kind come So we accounts. us basically way you let encourage through of we in to bid to bigger a accounts and obviously shun will, to the smaller

November, already it, We So that pivot, started call underway. that's that's October, to last so work. made

Corpay what the you ago Pete, go And on is seam. mentioned feet we're then going minutes bit to One Andrew, going into to compelling. a I few starting has to on now market of the not kind be to that working would stuff We're second, built payments it this what more only fuel card the what a to said. might but of into maybe the that street grow if corporate see with the market little with And that

newer of test in of a putting them people now kind prospects mode to say. against kind of a some and larger we're So interesting giving bit something little

the So couple ideas. those of are

operating then to in Okay. the revenue you or is those see I offerings? slide fleet EV as contribution about In standpoint. disclosure words, revenue? leverage And think maybe That's U.K. that margin assume it a safe fleet mixed in helpful. Is economics mixed other like addition from to it unit more similar

that's I'd tiny, got and to early business call, a little We've say way set of EV tiny, structure. right? cost and Yes, assets too

focus to people I how think say everybody, as helpful don't the I'll it's these be at you right, kind data, big kind to through we at that us revenue and that more pay look money. And this companies, dug more I win. and willing deal, know the and XX% significantly of right, figuring money more but our out clients real deal, of it if a to places, is on in to a side, serve point clients the are is big more have chart, if So

have we think thing. I ago thought years way getting would So the that is into X different than

I people on the ought it. would fact to have we what is focus say So that

offering in the no has saying that There's of one that we're only think X-in-X together. else kind all things brings I this ones. accurate I'm the

level would the structurally be side, time. make we today. but on couldn't It's Andrew, day back, me on come nothing different So over that not us same we're the at I'd there's margin a just say, think to

comes question Sheriq next The with Sumar Evercore from ISI.

and as wanted on saw in was the in month I the month first just get that sense a in any highly trends have quarter it March of versus how all and or to sequential a Or been the early the that far? Jan across April trends you decline Feb? was have in in you so areas months? to across the weakness what there you consistent saw And strength read of seen

it's Sheriq, Yes. Ron.

months a than I'd more So are if has no, don't other lose. been that call in business a print. anything, we peak would And snowball say, increasing, it's fits have why know, of but guidance. with the it April, we're a higher And I probably where -- workdays, more we I add think good had I so we've pretty obviously which both say on did and here plan, spot I'd the kind the revenue out trends March

kind the as a we're ago, in hear track the and months the We and right we seeing you comment, So whatever, from where we still built thought. can a just plan, much. few results of April not --

follow-up. be you high On teens, the like here. had last of on I'm had XX%, wrong XX%, mentioned if Payments, you correctly, the that One remember but now unless quarter, I growth north around around Corporate over will

Payments? in the for wanted outlook to as get to Corporate just I So causing difference sense what's a

Are XX% you trying it's hey, instead pick of XX%? to on,

more was decline. a I like more No, of was it thought I Yes. like percent, it Yes. probably so thought XX-plus

Yes.

I said back have XX%. go to of prior would high teens read and you If kind scripts,

quarters likely high the And as think X I qualifies think tick I think in say above X of teens. will XX%, see XX%. you to the or So next X it's did I --

highly we plus to business again, build, that the of minus, right XX%, that. or so still around design run try to So confident

from question comes KBW. Sanjay The with Sakhrani next

Ron, make of in of the seems that of noncore, name appreciate onboard. of guys you how core not compelling one, enough. or review just price the I the maybe the Or And businesses, considered versus to talk then and willing has terms at backdrop looking strategic could divestitures know are committee, changed you of past, the the and some simplification? you've it simply was pricing? just just commentary deal second, on sales are this. curious, in the you I'm the sort like about in you're

Yes, of kind the our we your mid- the last first months Sanjay, backdrop. sort of call earnings, has at, to first next high of up XX in question, So our until, EBITDA of backdrop XXx EBITDA, part of XX, I'd value X.X say years, the historically, on part call is the teens the traded trade changed the right? it, it,

from me be more So where it XX%. a have than a would lot interesting are that would party be a price we higher at to when than to obviously third would XX% traded been we

we terms in really about of the So how is think the size are it's things say of segments, I'd the businesses that core.

core. So us things that call are would big for have we big positions leadership

Corporate be would Brazil, and what for so as are, would Payments. have and core businesses that Lodging would that we Fleet, sure positions. if view And those know be big you great

other all more as appropriate to wide the are whatever valuing I at a stock, who's in trading reason for in when opening -- comments, said the you're we're than some of at or else are our someone me, starting again, with we we level. But open -- level, company this

And people do business so the ID I are to that higher. we trying would feedback know want all talking can sure make to or get some value we out people if and

Okay.

from just Russian Okay. specific for Russia -- that And little I can I bit just -- risk? you sale. takes are needed the mean, guess, the on if what approvals a how authorities, need then follow-up time this the elaborate much a on presents a

good Yes, that's question. a also

call an antitrust don't somewhere X western to it many trying I effectively to a companies government group, whatever X requirement, sign-off or oversight. for how ago, So know and created international created a ago, separate, like the I months purpose of something, agency, months don't exit this it know commission, almost if is, Russian you

to And like whatever that. western to right, agency, we're opine it committee, these us hey, then and this it. sign or this deal; we'd sell this happy is, so companies or, things, they see approve like this to go on as group, this deals, make SPA to Hey,

So been it's is. a X. that's We've that what month told it or

function, been a we've transactions front they it's think of have But -- of I the are group. looked right, the that volume the of history. in at

As the long they other, one as transactions. have they've way been been processing, established, or

think, buyer in to in do process. it's us some they're the we conversations a that So so kind communicating with there group, is this of obviously,

Risk, yes, word. would know not the going that say to bounce accurate. is I've for hoops, some us There's be ball how so used to we

that it assuming some in deny and chance best would agreement it's unpalatable, There's it the on in I days. we're sale call, But sale risk approved, so probably changes And free. is an our or have we of that So that want next are gets not they guess, the transact. people waiting. XX will the the kind just ask for obviously and we

comes next Research. Ken The with Autonomous question from Suchoski

moving the breaking to great that There the Tom, might It's multiple. comments should again. up on on and congrats hear that on ring-fence FLEETCOR that around business new the Great role. the going consider to the discussions some things and on you're quickly weighing the portfolio maybe that connect review been some front. of have be

need about around well a you we like analysis that that? preliminary what account? might taken So and if creation value with action, guess go how is separation guess, think And as the in into to what to dissynergies your to should a as timing be terms I of I pointing corporate one, look through were potential any

Yes, Ken, this studying try really X We're, it. answer thing it's into into kicking and say that. weeks X or gear whatever, early I'd to to too

So a really we don't view. super-formed have

we're a of underway. talking to think tumbled I kind numbers. what obviously of people. said out I said, bunch is We're I which run, We've

the way and options, to spot our a a would as clear working answer you days. in just be I for in we're through really, way said, better So XX

Okay.

Okay. like We'll as the wait consumer. guess I follow-up, you're pulling businesses mean 'XX, of different talk I on than that, can you of be macro ahead maybe might the on and my corporate back payments or seeing a side? the Ron. kind slowdown it current the looks little recession about 'XX trends feels

any puts segment? and underlying in you segment. you're the So takes Payments businesses just could that the about spending across Corporate maybe talk the about then trends feeling And how within

here think spend across Sure. in appendices report really of so to continues I'd it I board. say stuff, strong the some be and the that we

high. most XX% the Payments all-time was levels. not our mean in an I QX Corporate all-time maybe just sales is record was only think It by, are I business high don't something. I know, an our importantly sales or

money more we're people got on pouring really So line. into put-together more We've the brand We and the have a people. reaching finally street. advertising product now

been the bucket I is the on in -- really of it's place ever the think that the So -- best fill in. is top the

think things getting -- So it's systems of work go, all without skis, the over kind in. my it's I

I of are Our know, of outlook said, is to that compound the than now, XX%, don't is, which rocking. business thing, like teens business And all really, other XX% XX%. other parts high channel I the to now, the

So no warning all. flags at

The next Williams. question from comes Trevor

feeds Global you side. just just FX business AFEX you durability on want there? the scale particular. a I to and that just that on border a ask the benefits the growth seeing corporate the on differentiates give and cross level of now you in main and what with into could get payments refresher the border Maybe then the how cross that added And you're with us in higher Reach, if

Yes. That's question, Trevor. good super really

do important is think compete first The most thing I'd I with. and say who we

would because banks. answer market, is the business So we how mostly And we And do business and who lose banks. Tier it's to? middle the we X serve get

league. we're maybe League Baseball that Minor So We're it's everyone versus that the But super League important in little playing Major Baseball. brand. has playing

we to be spot make to transactions or of kind bank. a so business hedge either a to for Tier let X have it, them versus, get trust to me call And mid-sized able us

answer that the have win to context, you got is we everywhere. when So

terms We better will, you in payments, of the network, have basically a right, more destination, if breadth, more countries. of

all running We third using have some better versus bank we do party. because or tech a it's

Europe, is have originating Australia, But the of that Canada, U.K., grown really know people. the in different have specialists, We in winner, these FX, more I We have FX. just think, that up markets hundreds Trevor, right? here, people

outpitch these X are the at outthink So representatives really Tier just think I they and banks. that

has of the to all it's answer would honestly, compete things. you. business who because, be so And those combo well of my the But we of book

just the to through? Ron, of the digits. segment, new of would the the of getting help fleet in X sales I But And the cadence the as it. a just just finer flow should to then to of think of quarters, on Got course helpful. growth as you growth said any on next we're think how mid-single the progression be earlier Fleet just we on, any larger timing year? those Okay. you put pivot could way the Is customers point around over thinking and start of

of just I'd question. as say think good it stepping Super up.

call for of middle we're to based basically it, the X plan to QX, going up built. the it's, on for step . print if So we've It's end going kind

or so sequentially. So acceleration point kind of X

next The Bob from Napoli William with comes Blair. question

This strength then Bob of the just digital Napoli. or in strength may if Ron, components you on the provide environment driving how sales motion. The sales might and of -- is new maybe a definitely summary may us. maybe not on new touch impressed that there? Spencer for sales what's driving James number the new And and what's the you be ad could could impacting

that North taking I I'm Yes. was the sales segment, business XX%, crazy in XX% second which face I is, yes, the cover, part, the up shut America XX%, of of of quarter, to part to We a first off to right, contain. it don't and it used just gas try but micro of so I business, our right? get, in and the good that's down, sure, the can Fleet right? know, question, Spencer, the not We're

the of of fleet even grew all the you tells and it to the So faster that rest international XX%. rest businesses

things. combo and getting helping we're One corporate leads investment, I'd stepped I in We've which way And more And it's lot. pouring marketing. then is, the and up money in of hang that's a campaign, digital second, more is generating again, so say, this particularly we've of been marketing leads, finally brand think I a sales think payments Corpay into every business.

of digital Lodging call here them business our I campaigns, We unique or have and Sara. like -- a feel one Fleet. called in something naming campaigns, in one of -- both I'm boats We couple Barbara

campaigns so the in us. space kind of been personality a bit have of that for And create a incredibly these successful

a don't fed barrel, but to with were the before. it, more So than want I is leads, they're fish sales a force in call getting say quality lot they in shooting the year last

we So it's just It's kind cost reduction products. of so good. all time, have inflationary

We have. have better than products we

the people have street, is and thing better. lead our more working We on

mean, what just say just I it's working, -- doing. So we're it's I'd

a Fleet an fraud the credit as follow-up, on And maybe and update Great. trends business. in

Yes.

So or I we don't not. -- if know that Alissa print

in half. we on the a it's bit take of better improvement the started actions, terms in benefit So sequentially smidgy second when expected most again, to And from of the QX. based is

So delinquency we're we seeing call our in rates. kind a what of -- lot our roll

the So we're staring week. last at

QX, We into but the credit have doesn't visibility we'll super reserve following good for necessarily take this the quarter. super quarter which does for impact

we thing see that can down. So really coming

application losses are actions signs a are don't I has we people going that planned. if And the side. side it of are early but bank been what us. yet, to fraud, be credit second the and the know taken on take warning, getting down take fraud then So news same we we've the The the can pretending which the call to half good early somebody like combo fully we fraud in to

it at that at of few basically it a before we So put does way a that, more in better okay. system new a says has looks variables bit that

at just And People cars putting and criminal truck and stuff. then stop is the in one fraud, skimming right? selling a second

couple so partners, truck And site. sequentially fraud in we're the in XX% think our partners, police those have I been the And at helpful areas. to better that like down in stop of trying

QX, peaked attractive I to So say it last as became those going I'm numbers QX, more got year, bigger, target. right, guess, a because fuel prices, what,

took think, I so it. time, And get for to us and others it on

accomplished not mission yet, good we're progress. but making So

The next Morgan Faucette with Stanley. comes question from James

had I operational in here. a quarter questions follow-up strong. couple really Retention of the was

was was of actions mentioned think And from I taken. XX.X% I know it expand XXX points down the can quarter. but credit about kind basis you like But you last just that that thinking are you factors other any remainder about Is of seasonality, be were aware that? driving we there how cetera, the And of? there the for if year? should et

and it. mean attrition, I reason Ron losses, of the James, is So our half let's X customer is with again. up there we Hey, use Yes, not not of what shows about right? you're XX% which call No, involuntary our that's it of XX% quit customers means We our so hurt our get to them, quit which head. year. us profile we credit anymore. every uncomfortable your

attention X, took lines of And back having and card what pull go kind these you so stuff we heightened did greater cut cycles and actions we when X to small-ish really just losses. to -- contain through accounts, of X, on obviously payment basically

kicking And out. those us so that just into translates effectively clients

want seeing, XX% and revenue did it. XX In with eyes retention of consolidated work ADP that still everyone rate. open. that's it. totality did your we're what comment, still super -- years our we just we're thing. with opening the So That's I happy wide And clear, for the for based a And on it we completely happy

no -- we're So tears here.

obviously redefined realignment follow-up cetera. and on segments lot at been cetera? planned But then -- you've And there's of some any or a change a impacts perspective, on segment those et strategy, least et the definitions, go it. as just strategically a that Got how conversation businesses to of to from market,

super That's question. good really Yes. a

to all what to stopping business around -- product-centric kind for now EV, those even started pay view. And good you maintenance, or having account one things that driving the make seems called those of hey, I'm they're businesses business Let provision things business parking, a if I from on the you guy insight of as, our that we kind me lines a proven and like toll, all a the comes it to those the customer-centric right, into idea fuel, at versus a or little payments, of those the bit help the that right and a food, whether view our those things a to vehicle-related say I around, getting market to of I call, a they've going redefine them. top think the is, has out driving shows that rider consumer that payment consumers want and drivers to think believe related how that guys they're the your of whether Brazil all things insurance, offer vehicles, business on of

idea now -- of hey, headed. So one in you're the said I selling go -- kind would X. the to we're We're talked be The stop I'd where about thing. Like thing as, that's to around, you and at basically X Europe. looking we're say driving

selling we're is but users I diesel think fleets, selling also stuff? we're to us, the to that think those millions and customer and sense insurance can't and And sell same sets so the to strategic old-fashioned that's about for turn really to Now them. we makes of toll we could and multiple parking Why sell of EV. things the

you it to out crazy is to the on of We go I starting don't windshield, a the that you million me. have a to great used that's right? in tag I'm stuff. a The phone that. know real like our Like XX% we a case if to missed the And And stick thing the now people phone, on looking to to are matter. decided guys, and news their guessing phone live is case, consumers million app app month. but the in of our other X mobile for is phone Brazil I is to X in tell people users,

creates, insurance that enormous an offer to the up, think, the again like so base. example, ability I to And things more customer

we to headline of can customer world by more going we're and the the are lens -- the product. than the we're product looking is So what offer at we through

with question Fargo. Cantwell next comes Wells from Jeff The

this. be off Lodging, a that number noncore up follow is something and a amongst would color us to bounce ton I X and of years, the of a statement just on would operational just over of you questions you to agree if core potentially Payments And versus that, and this about the those Corporate wanted segments. amongst some there see you giving synergies Fleet, fair on

the would could some core versus you noncore. on clear Brazil give question be the that comments so within follow-up us And context to maybe of

business of piece that in ties how curious your rest. Just with the

and poster I is think portfolio, lead right? consumers. That, in and EV, how just of said, I Yes, networks like repurposing Jeff, Brazil same, said hey, ago, kind about the or years we business the done, me, we're To selling how We're X X was both and is that it tech. the consumers. it. the notice right, -- basically it's Brazil and right? businesses dog, what transformed, things And I mostly to selling the in some the Well, child toll-centric businesses should just for kind bought X to of right, has ways, we a obviously, both the really think business, that's when

that got use. They've They've both that both parking both networks got networks toll use. fuel have They that use.

different the the tech they've taken same sold and the stuff to So groups. networks X and literally

business looks related. I'd that if anything, So say, more

It's in Brazil. of in business have happens we that's it's Australia. X Fleet's markets It's to which thing, giant Russia. in them only which X is in, so Czech. U.K. U.S.A. Brazil. today. weird, It's fleet's It's the in Germany. Obviously, is other It's be in Fleet in Canada. obviously, It's geographies, Obviously, in a in not X the of in The just

fleet, our it business it another because be So is vehicle to doing in -- in the are, might would be some our lenses the business it the Brazil company business of -- ways, our related is Fleet country most stuff. all

an be like as would that duper that working, is a shot. The businesses say only super would thing just aside. I I are So long

that EBITDA are continuing and that for like lot, a business like things people in I down we that. that the compound, performance business. beaten of and is the about XX% to mean away giving So the the line the free pressed at fact teens the I like compounding and

Okay. for is Tom. And my follow-up

on to you maybe your and think us just, and thoughts is love For give conceptually not at managing who the coming you you're also get us you of those your have strategically about covered as business don't of sense forth? prior, here. what onboard would how a your mind, Would so mindset you if

many or month getting and to able company the business being firsthand, meetings EVO. really My really benefit so of finance approach good from the I rest is variety you is business. forward I've Look to finance Jeff. centric over that and as Sure, the perspective. work call in learning the the here, last to operates it had cover business-centric on supports working team person did the thinks how with how a the with participate you and in a to the grounded and of to of a DNA within

is good like drive by can bring order KPIs. over the financially, career, focus And in drive ideas of Our role their around information course on outputs. results. the good we're the looking if dialogue the team's get that to output looking and KPIs said then And the just do to the we their at business. those is business to the KPIs the kind of make on inputs company we dialogue their the can't how and and we And and that of focusing I sure repeatedly my for outcomes with the wins. I've my advice

no is and on things on we'll can bias the Very is find and up focused real and sheet, operating the we where making understand it you'll business and team the focus. me It's So more become is, and again, focused down of how successful. statement opportunity rest there. how the we help the so more sure income where very balance that

from comes Mihir question with Bhatia The next America. of Bank

that can has with I labeling? white that? FLEETCOR using do similar on the done of if maybe guess, of they are other that Or consumer you expand the what just in something Ron. there EV mean, tolls consumer Can your you to My Is Brazil is you build based I you Is some of first there question tolls, EV instead brand? wedge the to consumer do idea will? as mentioned, thinking the a on kind the have about on side as Brazil, build-out the -- comments using you

question. Yes, that's good a

brand mentioned assets good one. But the are here at is the in as your comment which So tech. repurposing about have, I top, right, a initially motivation is we networks,

some under of be Intel Inside. where will other that initially of is first say the I'd we'll people's be thing build kind brands, So

want think give by pay public it. recharging of an mean car app. is EV use find Volvo, an network what So that and buyers us and making cars they I somebody their and EV easy to They're our going new manufacturer. our to way to Renault, for Pick going to who's

The brand communicating. will right, Renault's or Volvo's app get and even pulled sometimes of into way, the

them customers provide XXX wants call that's brand the And them. drivers. one kind go operators than so is the leveraging So carmaker's trying them in stations, app be to has get to is go got would charge get sign points will, we we they then to if of second an what one, and to those to Same coming charge roam them. up be kind the those CPOs, someone to XXX. other They the to gas point of would that under that's to thing, able you their places and customers would that the

some headline, amount first business consumer the is that leverage that's intermediary of our brands. So would these

But think is lastly, I it good a idea.

which, brand, EV have company kind this Plugsurfing, like guess, We of an called bought we this I sounds brand.

representative So use, sure, the something for FLEETCOR want yes, going brand. of not that's to We EV. we're

and We point, And a market, directly. add can a so to for But your if brand we take digitally may we some consumers might see that's invest. day. invest different and build that to

this just X your the any like you Because year, switching really getting question think is in you've seeing some you do general, sales of and worse only things the from you weakness relative you're just are outside here months I are mark the data -- momentum then you? better sit ago? today, that Or data. gears to a offerings? your pockets obviously, And to highlighted. or big Understood. just you for conflicting are But of it is seeing guess, as there's macro across lot macro -- is seeing, a

it's everyone's question mind, know I'd make guess I I of a but points. Yes. on couple the

had what just basically is same ago first a is and here isolates answer they getting best in sicker, in period healthier. year clients the we call ask, is that So are healthier our hey, the existing sales, period which and same-store the or internal we metric

among clients, globe, -- at So plus across our were healthier months the XX than our ago. they're least X% across they

of one. So that's kind point

is our X% our and here way that grows The We're GDP. I revenues isn't share, second in We let's faster company our super say gaining by we it's lose. U.S. don't but the profits double or on than point more big in GDP is growing X%. what digit of some reliant grows markets, sell know or right?

businesses growth rate at point company bucket the control bottom. and our lose being sell able more So our existing potential top that's quarter more so, and X is of in less a businesses clients the oh, but If me the woe of our not shrink is way of or or at maybe, to game. the X the for way

a bit environment. to through, sadder, is either little power of game happier basically Our kind or GDP

I So it's for margin much, again, seeing it's impact, us. and we're -- at the the think not frankly,

for question-and-answer concluded Thank session, attending the conference today's concluded. and has you also This our presentation. now has

all disconnect. now You may