Corpay (CPAY) 8 Aug 232023 Q2 Earnings call transcript

Good afternoon, ladies and gentlemen. And welcome to the FLEETCOR Technologies Incorporated Second Quarter 2023 Earnings Conference Call. [Operator Instructions]. This call is being recorded on Tuesday, August 8, 2023.

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

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

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

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

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

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

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

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

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

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

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

thanks and here, cover Up Good for front joining to us afternoon, subjects. I'll Okay. everyone, plan Jim, thanks. four today.

First, provide my take on our results. QX

XXXX updated Second, I'll our share guidance.

a lastly, discuss the priorities you we're update strategic key working on that Third, few status our review. of and then

Okay.

with of and QX of our revenue both than better sequentially. those reported EPS million cash of up Let results which our $X.XX, $XXX expectations. me begin finished We

XX% Our million, QX EBITDA almost so by by a our stepping overall revenue the both up by our a acquisition and up quarter, is Australia, the EV hurt prices, XX% for reason those touched fleet markets, growth increased revenue Both in and lower quarter. our all-time at fuel for particularly revenue Also, for wash. revenue our year-over-year. current us. components growth were Mexico The quarter. is XX% organic the which of an and growth for $XXX X% XX% came record current QX organic revenue helped of The revenue effectively lot helped over there international

enjoyed vertical, our That with our implementations, our XX% they're insurance continued XX%, of and new our and record And passengers. bank grew over sales was That tag a new airline XX%. strength core Also was new that helped for direct also along for in the QX business our add-ons. line, in of corporate payments in new cross-border finally, new doing our led results led growing auto accounts. levels XX% rebooking payables usage feature by quarter. the up of up distressed by business. up great, Brazil X%, partnerships demand from number vehicle up by Lodging, our airline increasing toll volume,

which XX% payment line. demand last Turning fundamentals that versus to also product in quarter, the year reflects of the or corporate sales QX. sales quite good. grew in for Inside trends strong XX% up that number,

And last accounts aggressive an we pivot fuel set in control XX%, That bad quarter. micro the a pretty that's credit really managed weakness. business made remained of changed. improving America in the North North SMB sales flat, we at policies despite remained reflects in of our pockets that both Weakness effort strength good of and accounts America debt. we business. finishing Retention saw the in steady and in mix same-store lodging soft fall away to really stability, trucking stability strength sales our and Our from a

ahead better Year-to-date really a bit had the revenues, a all half. sales coming all-in-all, expected, look, we and first start to in So QX of terrific plan. earnings than

Okay.

shift our outlook share year gears XXXX. for and rest of Let me the

views, ahead prior running beat is our expectations revised and of leaving considerable takes, revising so our guide And the pretty recent consistent the calling guide XX%, we're revenue and business fuel about guidance, and revenue intact. our with off, expecting $X $X.XX second roughly there revenue We're $X,XXX forecast. cash XXXX although the for first and EPS EPS the growth growth implies This the plus the million million Russia, prices. some with revenue flow-through organic FX, full our current the second half, nine albeit half still cash half. puts of for lower growth better the midpoint macro revenue three specifically half internal The neutral into of second updated is at beat, to First half baked to $XX.XX of be guide first at including of of second half about reflects XX% year midpoint. of QX sequential but

first to XX% quarterly guide an $X exit revenue in reach expected be billion attractive the the and for implies Finally, QX revenue growth time. with

interest last We EPS growth expect to from So cash pretty exciting. in as exit XX% of year. the lap begin do we rates

Okay.

few the a make priorities. turn progress against our me important and Let share

efforts EV. So transition energy business. how to in affect with fact, EV our We're our the may along progress our understanding continuing first, of

look would earnings you our If in XX Pages XX at through supplement.

this front, last So trend they seen mixed positive more the quarters. We've on very fleet be at the vehicles, vehicles, per commercial a continues generating least favorable. than ICE EV comparable economics EV our vehicle. vehicle among clients over now are to revenue EV XX

news good super really So there.

revenue EV the grow. to And versus versus accounts the beginning QX, XX% year. nearly QX year. up of in prior is in tripled prior number EV commercial U.K. EV Second,

Okay.

refreshment directors and fleet here initiative. move audit added have We in fleet to both Board our up Second greatly XXXX two has and calendar This tech committee and retire. our enhance new oversight strengthened three directors had the our Board tenured long is diversity.

So last sales in is our North up pivot. terms of America updates fleet

may selling to prospects. bigger You of lot small to accounts super decision made recall, upmarket the last year we company digital were and sales a digitally move micro

some Again, we second do So half half our XX% fleet reduces first sequentially the And new fleet essentially super onboarding two about although months North XX% America losses one expect credit decrease sales, about nine second this half. and stopped ago. there. small companies card sized to we versus progress to overall

number the apps five That's fuel more Good from of news, new cards. that modifying our digital we than increasing have engine. advertising are bidding

as on better expect sales accelerate other be year. this transition sales and So that's thus do of working. side exit positioned to the We digital we 'XX to fuel card next

up Last strategic the company we're of which of of status in more portfolio one our our reevaluating our review businesses. with Okay. of or the is idea potentially separating the

with plan. with we've imagine, you can our quite As busy overall creation this along value review, been

the FTC on the overhangs have injunctive relief we on first, chapter. front, So closed FTC

this request very implementing America to You fuel Russia, our we have now court government month. and and may do close expect exceeds there the order. marketing best Russia disclosure remaining North received compliance disclosure the that in We're we all to We the business the end be by recall, industry received believe of practices. necessary sale. the approvals

the close sale later Russia deal in will working closing just and hopeful mechanics through this expected some final will that Tom that, are a We impact the speak of minute. to financial month. here

we prepaid in the regarding businesses. Second, noncore assets. a We're are of our small that line business. potential of within progressing couple sale noncore of our also assets, in of well We're few sale divestitures the vehicle underway are exploring a discussions

to of working biggest Third, number of in driver the we're here to to goal fleet fuel. solutions EV fleet believe re-rating creation. reinvention. contributors, vehicle-related and that payment business; business the exciting our solutions, think that company's and earnings really do fleet We in expect growth sustainable continuing one we business. the global that accelerate create of in biggest durable our beyond is value We're growth. to reposition We're EV out for our front pretty actually future an promises overall and set really social broaden And aggressively

So lastly, of separation. the topic

of the idea value. Sachs, Goldman one of of our the We help more with further to are separating or exploring unlock businesses

initially is spinning a of look path off or separating our company. Our businesses to major one separate simply into at

forma here whole of really assumptions or for forward the stand-alone host considerations the around separation, multiples, impacts dyssynergies trade at, what a future M&A, tax opportunities pro company are things. the of So would

big pure-play a three our the to is our similar would one combine with to be very company That potentially of The dance second businesses. that path of three major solutions partner. businesses provides one

attractiveness we in are the few exploring a involved of evaluating So actively that and partner path. dance combinations

our on call, for promised complete initiatives of work our sure, expect share on As last these then. our to we'll and with year-end four before each you conclusions we

Okay.

I closing and our first that do pleased reiterate to half and want today, our our So are expectations. look, of KPIs initial QX financials in we performance, with ahead

and beat through guidance. year raising our flowing XXXX are We full QX

our to of and several we portfolios key re-rate few front, in particularly multiple. an a actively progressing our are the are effort again, EV We moves exploring priorities on

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

Thanks, Ron.

the macro comprised of to million of the to price as in acquisitions which the environment headwinds. exceeded flowed EPS revenue XX% also quarter. million, growth growth and partially macro, and million $X.XX We $X.XX. offset in XX% $XXX beat our during $X of growth are of organic Revenue was $XX by our our additional Here by details some through higher of cash revenue fuel-related reported from in guidance recent $X revenue midpoint related had fuel million offset QX, the

gallon, with our Fuel prior approximately gallon but $XX were of May, caused We exited July quarter Fuel continue per by than from a prices lower $X.XX EIA prices versus the versus around per we about $X.XX prior $X million. revenues approximately quarter, to positive lower balance year based to over spreads million trend gallon, were guide of for on fuel year $X.XX the year. prices the expect rose per in which forecast. the $X.XX the

from aggregate, $X the lower that impact acquisition-related way the Lastly, macro through of of rates, from the due last million impact negative headwind economic as organic million $XX of on. exchange able to versus were decline the we war we we power in In and to mainly had drags ruble by foreign year had growth.

Now our the for performance on quarter. to

business, XX%, As of driven including year. this full I the Corporate that organic diversification direct realization revenue our again XX%. business continued grew XX%, up last growth solutions, of first revenue from and software Payments strong healthy previously half over strength the which AP year reflecting sales was the mentioned, of in into by our was

comprehensive their and payment activity looking combined our was Our of which selling up who to on as to continues almost we to revenue new menu and reach, high-quality operations. again global set transaction AP contributing all services as of client We customer solutions are remained performance. are transform XX% sales is incredibly in was now geographies, focused sign completed up strong our Cross-border customers well and robust. the strong migration products sell

remain addition, In year. as in the will margins of and half and rationalize to IT cost we which the the we realizing the help facilities second committed expand overlap, synergies

seeing we the third sales quarter In of Organic and reducing market-leading and in effects the Turning growth, still our by slightly over a beginning sequential hours increased from XX% growth next digital comments charging kilowatt micro into our continue in digital in over last per to strategies cards X% pipelines. but year Ron's customer to Europe, improve success sales solutions business. are sales To conversion sales we lead transaction we XX% our and quarter which especially users, we expand year. markets. growth significantly are heading expand to charged. charging pivot fleet in EV driven segment higher into larger our revenue and our network SMB to anticipate the as in home from U.S., on translated our we are generation accounts, fleet We sequential proprietary and seeing feeling adjust regarding international early our revenue

committed the we start relatively given revenue emerging remains our great are capabilities. usage upon base building EVs, a commercial the small, While and unique it's to of

with enables XX% increasing would revenue where to from last distribution of million XX% growth. line the In was X% XX% XX% by business which by users, field now that driven from We expanded expectations. expanded the was remained grew products interchange. which have the compared revenue and I also channels. revenue note Sales further tag our year, revenue increase of we BXC in X.X quarter, Brazil's our XX% network. to the grew earn a strong, driven current network Lodging our year. tag robust partner us approximately increased of last digital, proportion

So against a year-over-year this quarter is tough up comp.

quarter's sales This our industry success highlighted across solid verticals. performance by was

In XX%, channel addition increased that driven to revenue primarily per mix. room and night product from

to timing wanted cards stock our the retail In their to quarter The Other not QX of due did and in ordered shift from segment season. second pulled clients delays declined in XX% supply chain gift orders were card ensure forward retailers as by card year, our for the last year-end of the a business. QX impact holiday

expectations revenue for business year with remain this full prior Our in line our expectations. net

over activities debt statement. primarily increase We stable QX the of Global was the tied addition which Reach higher of currently expense in XX% and with $XX increases million income increase expect year and last the the Operating Roomex the and to sales half in X% to to of a line XXXX. due compared Group The the or by second back was Bad our growth. represented Now OpEx X expenses also half to looking Plugsurfing points higher impacted year, to investments bad with basis million and operations. debt, of approximately bad debt spend, of the expectations. in further prior $XXX down was improve future year of drive transaction

the improvement which to recent from than solid expense year in increased XXX higher better We EBITDA increased and on XXX full basis our XX Normalizing by improve in the the exit last points the is $XX revenue This year basis around points XX.X% million for growth the will driven Interest was margin compared year-over-year acquisitions, and year points driven year expect to SOFR stack. the XXX in quarter increase quarter and first realized EBITDA prior year. XX% margin our XXX this throughout of prior basis EBITDA year. from quarter. basis debt still be margin than by synergies to our acquisitions. points capability

higher adjusted drag EPS. The approximate QX an interest in rates impact $X.XX on resulted of

swap years, These X.X%. Over immediate average incurring approximately capitalized rate basis rates the interest executed the interest few past months, monitoring relative of of These actions portion our average we fixed points forward out fixed expense fixed. and the with forward an interest billion management maturity XX% three of carry debt we've stack, generating rates risk the without substantially relative ladders $X strong risk. XXX of swaps to an August, In point reduces been of positive benefit X.X an curve. which provide year fixed curve, expense SOFR four of approximately swap value rate the is the to rate to duration volatility immediate on now of swaps going outsized rate at and

a versus XX.X% was the quarter Our positively that rate. last effective discrete XXXX XX.X% affected year, item the rate tax for tax tax which reflected

balance ended $X.XX on in the million with We billion the available and sheet. $XXX cash, unrestricted we to turning had revolver. our quarter Now

we We securitization facilities our have $X.X on borrowed credit under had $X.XX facility. our million outstanding billion and

have As over of in with June authorized EBITDA and $X.X share made the repurchases. market credit quarter, trailing was repurchases leverage we for our X.Xx XX as open ratio agreement. share no XX, still our in calculated We months billion accordance

pursue near-term opportunities it M&A shares buy We when have ample liquidity to to makes continue and back sense.

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

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

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

for these year. of full include estimates Russia All the

remainder final now Upon $XX continue resulting details. we million for lower, assuming as through to we $XX our the closing year the previous in for expect million to adjusted are the year. with after sale the EPS close, a Russian for August adjusting over This $X.XX work consistent Based to in to buybacks. of We of an guidance be using August close. close guidance is decline proceeds $X.XX on the our business revenues anticipated

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

guidance rest to year. the of Our $XXX average expense interest of the $XXX an based rate for is of million million X.XX% SOFR off

our press found and Additional release in be supplement. assumptions can

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

Instructions] [Operator

first from Huang Tien-Tsin question comes Your with JPMorgan.

update afternoon, the appreciate Hey, thing. I everybody. good on the

act. maybe see seek going immediate my but that has lot follow the could value. other a Or last this to for Thank a question. you. longer that of So up as if the learned know the mentioned probably forward which your how with tell Ron, here. of process, views I mean, going a through with guess, I certain? separation time, And things think want you, I could versus is on leading us sort ask to be balancing immediate that some to the you've are strategic some way Really per you're of review, moving value you're there couple seek I your you value noncore. I you're to you I the Thanks. on creative you've know taken ton options gratification preference over you on learned se. a term, But you don't priorities mid to this you're changed have long-term and

get pretty these X idea to running durable, Yes. believe such of transform into do opening, in so or and to because big obviously, say and hard think go to thing I'd value. part Tien-Tsin. through business leading to kind right, to chance of of, X We're reiterate that big. the comment X or business things. working the I the say think? EV different do I as exciting fleet X, would a the What terms X tried I Job that's say company, question. Hey, as think? One, people going what getting I we that it's and to future what story. It's the I we guess have areas. of with the the we're a your part vehicle in two particularly got hey, of where no Has

say super like I'd working with So full some are that we stuff in XX come and hard will it days.

second The more much because that can in stuff but in space say and the with to have the we only the if thing, one something, interesting could me, is of more with on not create it. and separation separation it do synergies bunch also a scale compelling I'd combination potentially that

in enables mothership. separation structural the some the ways not that transactions as so And easy of out are

fleet those say two. So my for where the potential I'd that future separation people also be the that and believe combination. a include would It’s in would reinvention the

well. didn't very down, I the So wrote ask Ron. I question

I mentioned EV that fleet think you in would business. accelerate growth the

grew in the supplement coming short sources bit how within piece more good now, revenues would little the are think and sight growth Can line at XX%. have a the on where of least I midterm, to you EV us a it on like feel tell fleet. you you from? Do of EV

if question. take good you existing Tien-Tsin, the defensive too nature. is it the first mean accounts, I another that's the just Yes, thing,

some So, millions vehicles What are EVs. hey, are those of have this we vehicles. vehicle, of

be fact, make from vehicles owned make years care. conclusion conclusion we a company, money, they're can as making or of commercial different of as first revenue. in forming long could in now what the don't can And more. So we're exist by we in the we We matter is bunch

fashion for a in we and is, commercial do companies and is second get combined oil our because having it's one advantage looking selling our including, The might We're that retaining bit ahead the better like because basic we better. new out EV old package. we fashion other the by stuff people, have fleets that of example,

on And that got third not segment a one, in. then comment the is a consumer we've which new the side, trick we're

we the side consumer So we the to extent that the light stuff just can up have. by repurposing

the the kind the the Neutral the X, that consumer, X. that's with of So one, of flat commercial bit first trifactor. to X, in add and would a kind more then in be

comes El-Assal question from next Ramsey Barclays. from Your

my for fleet I evening. the gentlemen. question ask in wanted taking Hi, this It segment came to model. our about organic above Thanks revenues.

international I markets, think you Mexico, called out some in Australia. outperformance

of of expect internationally was the curious driver remainder through what year? And continue of surprise? kind growth sort that the the to Just whatever we should boosted there upside

the Her, appreciate of Ramsey, it's I question. Ramsey, variety Tom. just it's a things.

international international good saw transaction our mind, in our think just some I markets. And activity diversified we keep fuel. beyond in markets

drive also businesses fleet other have We that within helps that segment growth.

just business than a say of were the side retail also experience the in what price it's would stickier, international performing. So function here that markets particularly in our fuel I'll was U.S. the where at we necessarily

international rate also degree. relook kind growth overall it in successful the will bolster growth That Russia affect rate. saw transaction. in that healthy the nice and at of a pickup to helps that closing when we're the we overall some Obviously, So forward But revenue growth. side going overall, the we'll

it's Ron. Ramsey, Hey,

kind was last we of tick that that it the thing along, on Just to said lower. think would add, the right, call I

And our of is. where so kind guide still of mid-single kind digits is

answer wanted impact And big customer, the in Okay. question or think from residual I this know but the regardless, performance bankruptcy. your they're All any the not is exposure to based quarter credit that? your now a ask right. and anything on I I yellow probably to like any guide,

to exposure No, yellow. no

Cremo Your from comes Nick next Credit with Suisse. question

as we follow-up continue just segment. And Fleet transaction the Great. mid-single-digit to growth in us Thanks you basis? to expect should like for revenue was the my question, I what Thank question on per sales you. maybe half? this segment, wanted on growth same-store North in American taking Ramsey's the on then a second question. tell Fleet Could just up follow the just

segment actually break the it don't down We Nick, beyond level. Tom. it's

international overall, outperformed stay keep it I kind details that as total something just and going the business is the I getting And into I kind just I mean, at the the from. rate can see level then of would think But think expect forward, range away fleet of our U.S. and So we somewhere you we see hang QX. of think mid-single-digit and prices that we said, to guidance. growth as look borrowing, ahead you type we into spreads fuel we to in continue That QX

Hey, Nick, it's Ron.

fleet me on Tom just add Let in the sales what consistent business. to same-store pretty said,

in last look the going on few Let's about same the quarters, so not there. a lot

next Research. from Your comes question Darrin with Peller Wolfe

the Hey, growth, the seeing just sustainability invoice just segment those. pay. the Maybe it one guys. well. how touched to on we Corpay into fleet sources would that know you some be what more love I But mean, great. segment strong down the and a out And obviously, by made minute, different continues about you're hear given we've Thanks. of business break be. side on to of cross-selling if I'd as obviously, for of then, anything most more on Ron, strength comments, And I the

curious your if thoughts on So there's progress. any been there

question. good Yes. Darrin, Yes.

off, us someone on happy me. picked So first we're for

time I he think XX%, saying, XX%. was I said think last hey, it around

that moment, know XX%. for I guys So

down. business the of the called strain started not I'd before, side, So channel and seven trending with thing the still direct negative partner business the ago. That out say on thing that years what is the we're we've where is happy

consolidated super no which direct of There's were you the XX% well to stuff excited about. with up obviously end concentration XX%, is in that north tell that to So business.

know so do X-X percent thing. cross-border I And need was well. to you doing heard up don't quarter-over-quarter. out that's new business XX%, for it, call but if I I mean, So the sales, the

cross-border new all-time sold and business amount it's crazy of So was we've just in record an of of the sales. that terms

don't way the I the thought are if in this that performance would people business in what above hear direct know they So sales be. we trending business but and

So cross-sell. your last question on

and payments. an review, part fleet, did So looked right, corporate into go thing three interesting of we as biggest And at the U.S., blue we businesses said, call box. lodging in what the our we we where strategic the let's

the find it, not about on are to we already. got that of And we've XX% call million. XX% XX% And we focus three that companies above So like micro, industries are. where $XX overlap clients about

we lodging is have has, hey, the more small, and words, clients in more than of and say, have than of one? lots are the they clients corporate has kind have So let's overlap. answer other XX% has that we that say, that, payments when XX% The take do one, fleet the not to

And silos the of the called to went those because we before product brand, in sold three and that can is Clarke out businesses Ron haven't the unrelated reason products. and just each we started

now So brand hey, clearly, those advertising we started in three tell them, bigger and to accounts all things. the Corpay got we

that, of So more that of more same got. expect of be prospective everyone should the there'll we've kind decent sized customer everything taking

It the a way just would less like be follow-up And was little just around in seems in the buybacks hear. first to of allocation. there my capital good That's good. quick Good, half. bit

or for Russia aware just strategy any is should we of? that So it anything on the is close deal your allocation? change to be on there Or waiting cap going else to

follow-up. good a it's Yes,

and that Obviously, continues be review talk. given right, in lead change. the M&A no the activity that's And I've the combination some the inherent, of So to made. M&A the strategic comments

So that's sales, proceeds Russia if the will one, expect part sale the of you And back. stock be we out basically it. then it, closing the and/or successful should in you got we'll we're buying second earmark prepaid

comes Christiansen Your with Citigroup. from question Peter next

year, just that we operating execution, first wanted which question. Is is segment uptake, guess, talk mix was the know wondering the leverage? where cost be Thanks which you're expansion margin price seeing here. the that to there about the guess, of would for for this I Any I all particular Nice for trends second shift? seeing guys. it evening, year? can year, you're fuel in detrimental. Is better, half decline, quite a is it you're be looking Good the margin the pretty I sources color a full I the helpful. considering commendable of

it's Ron. Hey, Pete,

in. jump Let me start, I'll Tom and let then

one don't over will the the So as is $XXX inherent first or first our operating climb, be business, is million the half. So half right? our Pete, up, second right? I guide leverage revenue million, in So $XXX our a there's revenue always know,

So that is then the the I'd super-duper marginal EBITDA the flow second through acquisitions. And kind say one capability incremental is on lapping high. of revenue

EBITDA said basis I to XXX points future. XXX our investing think that it, out things for right, tapping, we earlier that's call the in of margin,

So that, it up. we as pick lap we'll

which is basis about of me In forecast, has fact, points. the consolidated up front piece our XXX internal QX paper of in our margin

in, we revenue and than they the our exiting lap strong. will if the year. QX we and operating way be last were get thing, leverage We're So comes the margins

Yes, that to we also on continue to GRT acquisition. the synergies acquisition from has keeping expect some our front, realize

some. well. will also related to that And So comp, stock then improve also relative those debt will items year-over-year as two to bad help

and that give So all margin. on, those acceleration items the that items Ron in commented

bad seeing of in that relatively the work why the and we which lots here forecasting. people, both right, quickly Yes, reacted what second right, trends reported we we're we we're debt, the thing that is grew what surprising on and in half,

super margin. you Tom's down to helpful step obviously point, exit EBITDA the to So big there's as QX, is a pretty which

No. a point. That's good

on of history the good a it have past hit follow-up question, and just debt in bad sure. getting for guys You Ronald My earlier. after

called AP. some in really out full the certainly and particularly Corpay, You impressive growth cross-border

on a helpful. little us qualitatively direction you the what's direct if card of business virtual the in the side side, those and of going a more, paint bit Thank wondering give sense of just slices you. picture at Just be the could would least

Yes, Ron Pete, again. it's

only the level I'm a I the sales the the record it's business cross-border. of payables think the in the at So year-to-date, are but I of sales, the lead both indicator, not side fact quarter, as and the mentioned, in in looking that right?

in then So we're that's hey, of if the of to your of what first but on, I how has to the point. having mix And full selling, had look, our I'll or room, idea sales stand-alone you terms or bills. both all virtual the group pay some I’ll in the more still bills, do AP, your draw areas pay of pal, And sell we card. think shifted

I and some you want, you either way. back give what me can money tell You

So I that think, is resonating. two pitch, for

a both we're stand-alone full but the the days. of the selling and more these whole So bit still

on Peter, acceleration volume also good increase. seeing And we're sheer just

really And as of base, to implementations that onboarded from just our much also deepening working customer from some sales of and to that hard as and is getting get cardable is spend try existing some with possible.

So terms those to in things drive all the growth the level. of all and that existing mining portfolio, front of door impressive

question Truist next from comes Jeffrey Securities. from Your Andrew

what results might is for Hi. mean of can Appreciate which you, mix taking as segment? to to as as profit to Maybe bit a as far on about question. and that Tom, FX? to indifferent in gross or little is, in sort that yield -- relatively the it you you Great elaborate Are within you FX mix think see. good maybe anything stack versus payables be And profit to strong or margin margin need continues contribution segment? if full we to Corpay, gross

business. obviously overall that They're between materially they're Andrew, attractive. -- subsegments don't businesses. within don't the they they them Both are of different -- also No, differ

business there is you that much be like internationally payables much difference diversification margin in. more necessarily more the But isn't oriented. where brings. domestically oriented modeling We that to a cross-border is need Our material

in solid perspective, Ron from And of mentioned, both just customers. recurring have I sales as of of have very them we think strong existing a sales business with them, what pipeline. see terms results, both

generally of recurring anything of transaction-oriented kind one-and-done may more cross-border You of transactions. have are kinds who tight they think customers but that. relationships cross-borders They're

coming a revenue recurring of us healthy And kind stream from so businesses. that type provides those

their more similar may than a they're normally more than and kind product their So compositions are think. and you of economics geographies, probably their

Hey, Ron. Andrew, it's

thing. but Just and difference on way super terms only of are what second sales are we then lot business their super-fast. efficient sales point not sales attractive. cross-border love of make we us other They sales, in they sale the dollar in get it so The costs a of that. to our second, top And up, start their Tom’s to one out of cost are most company

the say what call super-duper rate, is you it's roll start So kind call from of when or quick would we contracted. implementation

actually really of business make particular that attractive. two are those So things about line that it

LTV bit, to they're traction marketing starting some CAC sounds to Okay. on be That's to we I to wanted that thinking It considerations then digital initiatives. need you if touch And of as of the about? bigger sort like accounts gain helpful. those Any little market. could, a I sign

a machinery I'd It we repoint I'd certain tuned complicated then right and to Yes, or and really, it's kind the thing a a Andrew. haul move say the different say, okay, say gets that. a work not in Piano like pretty way. machine like big way, way, tuned certain something of to gets

kind itself So it grab start lots data to to sort again. out to needs of of

I So it's bigger my in the But a probably it's coming us accounts digitally working, longer. taken number is growing of opening, now. to new as said bit

it say just want the it's way ones. harder to They stop turn the the get don't It's way problem. So easier one. more easy, I of small but don't up was to to big

-- has XX% business been I of think accounts. we've So our always always bigger

used underwriting them and to both servicing and them totally that. we're So starting that, on

to appropriate getting money just how smarter in it's really, the spend segment So the about to door. get

Okay.

like here. sounds it only upside from So

mean I to because be are and I a the not to going matter. is And all thing close news didn't were that we're out little It down. that's roll the Yes. is work, number. brought credit credit crazy we numbers I already what want were forecasting up down to reaching us rate a good to call

get it's has go, bigger saying accomplished. to So we the I of it. stuff horse tense, the Job to up new Job And number going, now QX past one better, is told and more your of in I guy, started weigh it's getting two get am increased. and need

the pace half. report as up whether picking through we we'll that second run we're So

continue well. And significant client remain they as are they've sales been and the well to quite be those field level, a already strong. And at of overall doing portion obviously segment a and larger

kind that our digital. bit So of pivot from buffers a the little impact of in

question with Svensson Bank. from Deutsche Nate Your comes next

through the business you've any seen the move And off then second for reason about quarter for that month-to-date. year. taking the of in thanks had of question. growth I through the on update And trends my first what to fleet acceleration in organic we as sort August previously quarter? asked monthly ask wanted you Hi, in the and July that that pointed X% it continued I remainder of organic the saw a you

And I how know just just for sequential you acceleration kind digits wondering it but into XQ. the year, So of mid-single to wondering trended full we got that it about the continued through as quarter. the for move potential

really Yes, many particular I'll and counts skew from month I a month. weren't Obviously, it, a there within that day there's month kind of the how from weeks can to really perspective, take monthly Nate. certain anomalies. mean numbers

So things misleading terms I kind from can business a But momentum in saw shifts bit to wouldn’t it and be a look that. perspective, and say we of significant just months. volumes of just transactions little at like pure

As we more same. probably more say, seen crude, of into of benefit will higher July, what head we've into retail. with the translate I'd that recently, uptick Maybe the in

that's right And that should that within number range. so a to right XXX in provide XXX the guidance number we referenced that

added nothing call out. to ordinary really So the

drive into fair months. We summer some growth I as amount Those think we'll seasonal continue to usage. it the continues. can of of heavy think also a expect level of agricultural the months some

we've point the commented think, things, to earlier the on of of us I kind direction call. on here all those So

for I'll appreciate that's guess think all And it. the follow-up, color. I come my here don't Got on Q&A. I in I that up lodging. ask

year-over-year. that in down in growth, off you I the sequentially softness impressive. remarks, revenue managed mentioned And some a accounts. So was revenue nights XX% were noticed But very also prepared and believe difficult comp

a give easier for move and second half can but then past color lot mid-teens back on the I the cadence you know that maybe growth you're seeing? on Thank quarter? softness color moving you. any of of the relatedly, as growth some you that year, And maintained full So the sort into we comps get

It's Nate. again. Ron Yes,

kind I group, going out. say, I'd surprised. what something, English that right. larger of super sure did to it in call a you're go something people, groups really would environmental or like managed place that's business but going to merchandise the why, to means consulting is. groups utility do so of that a through warm, I'm groups somewhere, we little go yes, an like groups our when we're not which So accounts, like

did so for And what than looking. less of of accounts in out reason, some on it their QX some number just we were own

when we to where say, kind that not that were so call, is And super level? hey, or we you before. going of be at clear, it's

couple it, of So that call the of that soft was kind outlook. of growth points a didn't pocket a bit, of we

retention super to what of them not like us, a not going lot that's can rate. forward. see like the we're say certain look in you going as It's I'd quit So

of whatever trans story we're kind look, that quarter. hopeful the So was is, for that

good diversification there have we The as we offset insurance and of good well news on is nice strength that a that of commented some that, as kind that where Nate, helps we've airline seen earlier. pretty

call call Yes, direct. like and we and have have we business, we a business big, shine what railroads a we accounts in small it SMB custom trucking firms,

want of We team. my other one mid-teens. that there was that still group travel I the with plan -- consulting in did this of business to segments a kind happy there's this at But call business. So lot out. Look,

level. that above performed it's So

to still be it. So happy people I clear, want with

from Williams question comes Trevor with next Jefferies. Your

Hey, guys. Great. Thanks.

I would hoping have year Russia? same sale on reported the on Russia. full lot. thing the get updated Russia, And we quarter looked organic could what ex fleet, without what on that impact help So numbers, for rate I a in for appreciate target like in the was would fleet just growth the the some like Thanks mid-single-digit growth for the but look

Yes. the Trevor, that. we all update of kind of closes of we'll transaction all that when and refresh

to back you on come that. Let's

closed, we transaction until and okay. reset we'll of wait if the think that, after get kind I that's

a start alluded think I getting you're that's third for for million the customers QX, you new like growth think implied on, larger of sounds us to, level QX. Thanks. sales kind on else kind visibility of but anything then the it's in, guide, and have just through, maybe you It that into of that? $XX layering some And in of fleet implied might into quarter-over-quarter decent still talk quarter. visibility just sequential of enough. Ron, you on the of amount there especially Fair both fourth level Okay. the Maybe the is

question. good Yes,

thing look I'd July. we is a first say had at decent The

always helpful. that's So

to So guide. tracking our that's

on So the which sequentially, track. when business. we half, have the is built Ron's thing the Tom about Yes, thing bill and does the I favorite second output that's is

snowball. a people I started and this the downhill that more He snows think there's I told roll down is hill.

beat I revenue the sales we're that call like ahead that's QX versus corporate as attaches stuff rolls it gets the sequentially, as way Tom's ahead And up think million point, a already year-to-date. we so obviously, $XX nature business that QX. sales, sequentially of and recurring I more we're which snow, is to So ball of implemented about payments,

look, say, on is high. I'd We're So track. our pretty confidence

super is just right? in We We implemented then to sales them always the have than there's QX the duper is better a QX. seasonality, and get quarter bag. need the and QX

So we get some benefit of strength.

in example, for For super-duper QX. example, always Brazil good, is

a been sideways the the having something time, we're think, go on of we've I pretty comfortable kind with planet So long unless guide. that

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

rates transaction to the ask a thank spend little for And you afternoon. or per payments. corporate about or revenue take Good in here. per bit me wanted I just more in squeezing

some You growth pretty saw good there.

bit channel about fleet Thank in strength there the it maybe product in But more segment in the corporate think drove What you. called transaction lodging, a and and wouldn't per payments, particular. talk you driven. out, revenue you if also little was I in mind.

in and I and of swing may Yes, It's corporate fleet? question. take have a that, both I'll bit missed the at rate little take a payments

Yes. Correct.

of There's nothing really call to out. mix. particular kind in just Generally,

of bit our release. it's You little you pretty increase see a when a an increase. rate in Again, take refer modest to

call think just business respect out of like to our always more that. with So pricing I and it's matter mix really things and really a nothing that. to besides competitive just We're of

will fuel played and spread overall those So out. our things have into also how what factor I think,

kind nothing slight increase just in so kind that's really rate. but in of a And of what And in the a things, out the of terms it's of combination of seeing you're just ordinary. numbers

Mihir, it's Ron.

to is the to to, on. Just refers corporate think, which Tom that add go payments, mix shift will that, in we

take direct to So backwards, channel that rates we're is payments in those and growing going the the is you that the today or corporate Xx different. high-XXs tell it, significant. when mid- delta Xx guys business we in business Call

is the say, every let's higher of improve growing, every with shrinking, channel the direct business So rate or and turn forward XX% is prospectively. that that will business that, quarter

All more, helpful. picture one type I Thank question. a one just that And if is big you. right. can big, ask No, then

a I be think about I the were more some cross-sell. more earlier wanted aggressive takes potentially digital review strategic in marketing, review talking Thanks. are about a same midst ending bit is divesting on you know of we At the How the time, doing that. you puts are with the to the you ask strategic cross-sell to going just up? about and businesses. till short in where term

another good Yes, really question.

first So learn. I'd that yes, have, reporting And trying that we today, the one larger finding when of say to the I more study we're they I'm our that today use clients they we think is products. have among do. we And selling. than cross

consolidated So thing by offering the generating prospective advertising more to leads the up way we're brand, now company. solutions more we've second the that same doing is we're

still as afterwards lots or think just we commercial to example. kind no So an have the sense. input separation that's dyssynergies separation. the I the reason think made for could another the potentially the in extent with as that synergies There's And obviously, of agreement, agreement we about company us some of

where see clearly But just for learning it I and separation think and input So an decision it's we us. we're what running the separate them sure. into tracks on can lands

Research. question next Autonomous Suchoski comes Kenneth from from Your

Thanks the good taking just to question. for corporate payments. wanted ask I Hey, evening. about

business cross-border new pretty sales up is think Those mentioned, the ramp that quarter-over-quarter. XX% quickly. you I new Ron,

is business even and XX% the for the above So of XX% north guess, the this into I or XXXX? that grows year rest expectation of

Yes.

payables sure what said both the want look, book to that internally So sales, I I XX% what said. which payment year-over-year. clear make call Collectively, are it's cross-border. corporate up was I we and

the payables then is, And implements point does one. first yes, the cross-border that's not. second quickly So

And benefit payables, more don't it's have that guess XXXX. of front guide, So XXXX incremental I you business. is to it's it, revenue on working, in of of hearing are is guiding overall Sales are extent than guys if is XX% Payments to in kind but in that I the some is Corporate still in we're But a the actually working. my the know plus growth that the amount don't me, working.

trends -- we're it's certainly are -- a good the spot. in So

anything just having Ron, overlap mentioned then, And just sales, out anything quick, more different of And the a think certain create the know on as on strategic kind in are in on mean customer the that segments? separation, and totally. the of you I the to about of else the dyssynergies I et that but Yes, review just you terms value? spending, opportunity greater real stand base, guess you dyssynergies, see just there cetera. I segments some

the think of strategic creation what call it's I complicated. review value pretty Ken, Yes. we plan,

tick to emotional fleet kind to we through thing, the different review, of the is pieces, of try the how of which I and why right, thing Russia separation. from four that's operationalize kind the to kind political of So a noncore assets the reinvention

And the so couple you inside the vehicle heard a businesses, ahead rush including noncore on business. of sit full-speed ahead as full we're speed on of the that things we're thing, small

big is which We think I businesses, half on Corporate people fleet, And everyone Corporate the the focused three really lodging have I company are Payments. question and have or and fleet, right? think XX% has Payments. So

of the some attention the separate, same part not on and if off separation. where better be payments was really corporate separated. focusing company in all but that's whichever the were way, one So the we're Would fleet mothership,

you that's looking before, we're only I trying combination thing. the separation, stand-alone pure to but looking in of will, or question the I'd that the some separation primary So say idea mentioned not if And we're with as answer. issue, at parallel

working So where mean, which eyes is to and can have know defined price. I me, thing, on. like open. get you the in we're is that's any dyssynergies. what something to unfortunately, important something my there's really a away sell takes what ability to separation, it the most yes, I'd And

base after a And so the straight difficult. losing whatever, one XX% businesses or of sale makes those cost XX% of pretty

management, that is run both what You right, and IT we're that cover stuff early. the get right, a we tax which to got particularly is price, IT how around dyssynergy, manage and co-mingled to looking really would really but good

right, of the kind worth the digging anything it, and make cost want would to all be would So we're through sure that benefits faraway we that that it that here. that pull

study because to have we it in And we forever. commit days. to we're when did it. working we So still it We're talk an answer can't going XX

question next from ISI. Sumar with Evercore comes Your Sheriq

a around the terms growth for I tag and sales question working tag strong of business, of taking sequentially. were rates tag business, question. products? thanks Hey, XX% in much talk the my in segment about up on growth what's growth and on pretty you have around take The like also that Brazil was strong too. the Can X%

And Any would driving the and XQ higher? think should appreciated. from XQ what's rates the take So rate take we how here? about color for be

think. I Yes,

up is volume said, up revenue a think I all, right, it's X% is tag question what there, strategy of because double. and First the the pivot great highlights the it that you the revenue, on of

One is is we healthy, points. volume two partly so widening And the distribution the because channels. keep

So in Parar the Brazil the sell last year, our of banks two our Sem we to five in biggest signed stuff, tags.

that And added that channel other at doesn't the so are cannibalize we things ways pretty much sell those tag.

that customers prospective reaching weren't reaching we're before. we So

helpful. So that's super

the from is take one the second growth really and The add-ons. rate incremental is the

it, So XX% are add-ons, me, in crazy back have insurance insurance is fuel And tag for XX%. these and or vehicle compounding. I in add-ons, the to selling then call like the holders front it of content don't micro that demand. insurance we're

any bolting account tags. incremental on to more same we're the so And revenue adding without

as millions find idea think tags. sell because keep Brazil in are on that what to parking expanding the we that so more we are. vehicle-related But was and that's of and think is insurance customers that answer have I the everybody almost and was could was And business fuel the reminder, first I we toll. there, we And quarter, said just and like to beyond a more add the millions spend of things in distribution XX%

now lots products. purchasing is of toll lots and there beyond So

business. for And so idea that's the the

remarks, in BXC prepared customer at XX% under my base. in of missed this it just terms have our again quarter right may was You

from, other terms revenues of our was from coming than In products tag subscription. much how coming

And success been it's has So continuing good momentum sales that add to of success. business. just their to showing the

been year, prior of things a tied level the the record or overall Just absolute the for sales whatever sales, on last all a at level. it's the year. sales record three versus year-to-date every get or And years,

customers. the So reaching rate there's been at no that slowdown we're new

So again, working. it's another business that I'd say is

are this at Ladies you. further gentlemen, there and Thank no questions time.

So this for your conference concludes today.

now disconnect lines. may You your