Corpay (CPAY) 8 Nov 232023 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the FLEETCOR Technologies, Inc.

Third Quarter 2023 Earnings Conference Call. [Operator Instructions] This call is being recorded on Wednesday, November 8, 2023. And I would now like to turn the conference over to James Eglseder, Investor Relations. Please go ahead.

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

queue operator Following Throughout comments, release this at be Relations and found will session. Please will section will be earnings open covering can call, growth. the announce note, the we our for the organic fleetcor.com. that under prepared supplement on Q&A the website the revenue Investor our

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

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

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

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

today. Jim, I plan preview. our Okay, guidance results, XXXX X our I'll joining cover to financials, us everyone. afternoon, and First, here, a subjects: our appreciate Upfront you thanks. QX Good QX brief

Second, I'll that at then we're aimed coming our lastly, where transformation review introduce fleet an provide growth revenue our update on business. out. the and And I'll plan, of which strategic is accelerating

Okay.

line outlook. our Let August at if revenue ], our constant weaker $XXX have with me begin with which year. last reported X% interest been our up macro cash would and it expectations. of X% $XXX We QX million, than million, Now generally in up QX [ of were results, versus rates. up XX% EPS

result in of transactions. PayByPhone you XX% ahead growth We through. QX QX, its about the just the maintained organic macro, was contracted the up of Overall, spreads a quarter, fuel August Russia a Our XX% XX%, our and to compresses exit guide rate. growth and corporate finished the which $X.XX point-to-point spreads. Look, are weaker the despite of fuel fuels price powered this earnings QX our exit that from increase QX that, payments if actually cents revenue few our exclude business inside for

pleased super So there.

clearly away Our paid new from small last in dividends America pivot, we started fuel this which North quarter. year super accounts micro

million to losses $XX this credit Our from fuel went the quarter $XX generally half quite Trends in in last good. America million about year. North year

products. our for demand strong Continued

year. XX% versus up sales prior new Our

stable very enterprise Retention So XX%. good. across at the remaining

in notice this our which into. noticeable same-store of and we're softening pretty quarter. We subsegment did quarter Our services soften digging kind sales bit, a to managed flat lodging, X last did from minus

margins, which XX.X%. high record Our basis million, by That's EBITDA about $XXX points versus million, up for year. company, $XXX expanded last QX all-time to an reached held EBITDA XXX the

all, a say good So all performance. pretty QX I'd in

Okay.

guidance, couple updated the Let our reflects which make a to of changes turn me QX in scope.

acquisition, So which last looking divestiture, we've bit refreshed is also PayByPhone the and which we time weaker in out the Rusher the QX macro, recent a we saw FX mentioned than August.

these these good days view So pressures, stronger quite the underlying look, our fundamentals such despite is bit than QX actually our adjustments profit guide and XX that a ago.

see our on in bridge. Page refreshed XX You earnings that supplement can

in today the So at to revenue midpoint. QX midpoint the $XXX $XXX guidance million updating we're in cash at and EPS

right of on QX our top really print. So

historically, XX% the have QX in XX% very results growth. and organic and guide QX Here a revenue again, QX a EBITDA quarter updated growth implies been similar. This

forecast XX-XX-XX [ So really model. compounding our again, the ] spot on to

Okay.

transition me quite I encouraging. which setup characterize XXXX preliminary is our Let the to view of

we're with again, next year. Revenue, outlooking we're the various to then at factors prior slightly years. that's environment up of neutral profit XX% positive. looking maybe And range. business consistent XXXX although into exit key growth the of lastly, be early to simply macro the generally they to So setting organic revenue macro kind And favorably. That's the looking, drivers this same as the in X% year out

So a stable lower we're rate expense expecting share interest lower [ tax and and bad debts ], flat count. to

So generally, a good setup.

see. So 'XX say what days it's our All I'd early right. look, we although generally planning, in we like

our an review. Let update provide shift strategic me gears and on

strategic review As is twofold. really or portfolio the goal our reminder, a of review

make and to a options to second, simpler then separation to So evaluate value. first, shareholder increase company

these few all couple done we to ]. prepaid sales. make decided On the simpler although reporting And our simplification we're things front, business Rusher other company. noncore a to We to things. working keep we've sold asset moving are of We've a segments, [ of a primary

are that's we've looking strategic front, ] a to spend risk. We've mainly pursue [ they a RemainCo primarily derating pursue and to decided also pure not not concluded at Partners sale, separation separation the On tax think of disynergies Dan's a continuing leakage with are due potentially we to we to and attractive. estimate evaluate [ couple pretty ]. alternatives that But are our

counter back over the discussions conclude we the with next we'll report and those days, parties So do then. XX to certainly expect

Plan, to is Transformation shareholder unlock re-rate is Fleet subject which thing, single to last the we our believe our introduce important and most effort stock. value Okay. My

fleet transformation double is digits. accelerate to business the objective global the our plan the of in the So growth fleet,

So that target growth. that businesses big primary X can all we double-digit have revenue

a through in walk slides prepared XX to we our around help intend to really our how X you Page supplement few fleet in The on lengthy, have centers big earnings beginning ideas. We plan accelerate growth.

first, BAU. So

And in marketplace. we we're with join front, BAU which get to through the our products market improvement offering a up corporate these new really products, payment On the plan into at performance to leasing now. differentiated the products fleet create

micro both opportunities. from repointing pivoting will from larger primary digital big bit on prospects, Zoom prospects additional which recall, may you Field business market marketing this significant that emphasis and be and seam Those a are verticals. we're targeted As also slightly to Services Construction, of segment. The and our reps larger two are adding of machine both kind small field

We solution underpinning on even maintain commercial is a EV. believe can throughout plan revenues really is that winner EV much the the [ we getting X-in-X fleet and the fleet Second, transition, ] we're increase maybe or transition. for that confident can is our EV-ICE capitalize our more we

than over out. Revenue revenue the early in this last higher EV bears quarters per running vehicle per So the ICE vehicle. XX experience U.K.

consumer payments idea of lastly, versus this BXB a payments business. the just again, business vehicle So pretty vehicle is positive. Then

that payment on the have, And built networks, front, and to really years. the the just that networks, expand leverage so the the the relationships over idea side is on we we last merchant further XX BXB

would the Anchor start So with idea be we Apps.

then additional So of have payment that think offer active mobile users Brazil or millions vehicle in digital and tags that solutions our parking toll in utilize the U.K. payment-related networks.

utilize second or payment in service our So like repair Brazil. XX% solution even network third active this for toll example, a use parking success consumer utilize now in or network. We've users or insurance. of demonstrated our EV our Over approach

pretty exciting. think, we So

Additionally, vehicle acquisition open payments additional up this push consumer interesting targets. does

as PayByPhone and example, well. ones literally For other

potential the look, double-digit business that we overall X via drive the fleet/vehicle believe territory into So to incrementally we ideas. these have

So acquisition. business, billion again, products clearly the in big a targeted accelerate success of new in big with Brazil, the of PayByPhone and with underway of payment couple products, we a transition hope this dollar fleet to consumer EV well build-out verticals, to and vehicle payments kind combined corporate

billion can anticipates this Literally a leg low XX double-digit that Page growth to single-digit our pull You can [ business core fleet on territory. fast, see maybe the $X vehicle growing actually the This forecast supplement. bill consumer into expanded of math XX%. ] card

[ look, but I'd forecasting encouraging $XX Rusher February a in and selling today, it lift this we in and has days. fleet fleet ] faster we with XXXX to EPS. outlook still macro. expect started think, enterprise business say So we're the conclusion, pretty busy where conclude exciting. 'XX out some potential on having We In unfavorable to much early, bit quite really of despite of believe That's discussions cash then year. we around potentially active reaccelerate separation, And to counterparties, entire plan, and transformation lastly, the that in the XX growth. some this

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

everyone. and good afternoon, Ron, Thanks,

additional quarter. the some related are details to Here

I'll Let compare active prices it FX the our me previous start in PayByPhone these address factors to by quarter business, actual of each Rusher to the fuel with movements rates. guidance. an of better of impact the that acknowledging and significant was and results sales our the from acquisition

and revenue EPS. Based Russia and on August prior Rusher, guidance the year closing lower our date revenue of the in $X.XX First, the business. lower final cash million and of proceeds, full of $XX XX included of disposition resulted a earnings Fuel from cash

XX, was of Secondly, September of earnings. the PayByPhone and adjusted acquisition revenue added million on $X.XX to dilutive $X

resulting in fuel our $X in was the headwinds total to macro Average August, were of $X.XX prices quarter, the during the $XX quarter benefit. higher a compared for negative the assumptions X% the to Turning million impact used guidance in million.

note to spreads an of our of was XX% plateaued the $XX adversely quarter. Underlying fuel majority increase However, increase and the by fuel was The retail compared to increase costs, for in wholesale XX%, rapid remainder the fuel in this the price affecting July which in compressed to from it's even fuel around increase revenue that greater price forecast, million. September important approximately in August X $X.XX. occurred point-to-point XX

spreads which to job We increase is the information So We way wholesale which and faster a million get the impact on fuel wholesale prices changes prices $X there's good impact. to a a prices, benefit. oil headwind. net the due the asked increasing for found if track price fuel prices spread. when was from and does increase fuel subscription-based or and the retail fuel compress that retail to a provider price resulting OPIS depicting revenue regularly, service, price overwhelm rapidly spread fuel can than typical prices It's in

currencies, of about $XXX foreign of The tone million now the $X we when our the August our dollar hawkish, Now these in on have per if reported resulting turning revenue our cash what per beginning factors $X.XX know In strengthen results would million an dollar of Fed's beat summary, to FX knew in caused the rates. from revenue. drag discussed, I $X $XXX August, EPS businesses. and more million share majority guide in The the international of relative to significant compared strengthening just we $X.XX came to became our to of revenue and million share. early been

Our earnings combined walks in headwind our our particularly us EPS impressive bad X the expense for the included enabled of only impact through guidance, through earnings Rusher results, and PayByPhone. We've the pro outperformance strong our parts. that from our exceed August lower flow-through forma macro with when is cash to debt these moving power supplement Slide management adjusting you and expense revenue and because still

the growth. sales spreads Now of fuel business we've revenue and the revenue year-over-year focusing $XX on in by diversification year. regarding million produced for a was to to throughout quarter, million revenue last favorable year, the million. realization FX a price lower our benefit. results of relative reduced reflecting strong the more rates fuel Organic Year-over-year, resulted $XX into were lower XX%, $XX in growth our the translating prices on and revenue details reduction that

guidance. which XX%, solid in comparison net-net, outstanding consistently revenue business, was grew macro revenue Putting a Direct AP. led again growth growth. Corporate noise business' our by year. XX% in driven prior in the $XX GAAP Payments reflects XX%, ability versus which was to full the million over revenue in growth aside by spend. up increased Strength our X%, last So headwind deliver macro to

customers of who menu continues sell we to to payment modernize comprehensive new sign as extremely well, XX% up looking Our operations. AP up high-quality solutions are their

robust. and of sales recurring also continue transaction was Cross-Border client was the our XX% to network proprietary and activity We expand merchant increase up cardable amount grew spend. also XX% revenue as

nonbank when largest clients' a compete the FX for the are recognition business. name now we provider we in advantage We is our the and world, real have

market-leading client service acquisition, importantly, see and allow best-in-class can which retention have products to you our More our capabilities, results. in and

business. very We [ Fleet X%. which U.K., X-in-X are in And revenue are markets. of shift they our add our addition their increased pleased from Turning in U.S., we continued to the the find sales in fleet, away some from with affecting our In EVs ] performance small customers our Organic attractive experienced micro impact fleet. overall results. offering, product in our strength strong softness as international to clients to the and sales the

XXXX. to also impacted higher from credit shift Our were XX% late clients which down QX quality fees,

expense, bad revenue been But important it While results has the pivot decline than been positive. our I'll growth, comment decision in debt later. out on late in a by on market to drag to EBITDA our more up point has it's offset that fees decline which a in

Ron and significant and acquire go-to-market going about additional rollout are we in to excited next sales mentioned, products uplift into will strategy customers as of heading forward. expect the larger Lastly, our refine continue drive that a year we we to

paid specifics, I Their and million largest transactions $XXX X million on million fleet our $XX PayByPhone active and to million network deal parking totaling the over into move in how they Europe, million fits X PayByPhone platform, the America, monthly Before transformation give payments you approximately its strategy. primarily second about covers process XXX over it the spend. $XXX year. We spaces Ron with app. expect in world's addressed mobile company million approximately for and To U.K. global is and acquisition users North in next revenue realize parking annually, the on, some

where driven to last to growth. Now Brazil, by grew X% revenue XX% tag year, compared

increase where expanded In from the transactions gas Our of further products spend expanded of our network network from our quarter, of growing we revenue over expanding our customer incremental with is the was Fuel and us example earn to great stations a tag approximately of growth enables up of revenue. the XX% proportion enabled XX% XX%. we're how number network. tag product

quarter enabled the extensive XX% sales over Our us the XX% growth generate almost prior non-tag to sales of network coming in the products. with from year

where used Our we services deliver a payment additional large proof leverage revenue Brazil tangible a success customer in of point incremental an anchor vehicle product to and is driving our broader by strategy, base growth. products

questions where the Brazilian individual the toll a deploying website. to by Lastly, after several last about over fact we've and going impact toll plate potential license pays some received the reads quarters of government the free the the tolling, the flow the station

that installed, is a sell our automatically in tough quarterly a a the more toll increased is for tag. is business toll XX%. these grown frictionless the when years, incremental Now business to been against tags fluctuations user few This disaster tag for have revenue actually weather the experience are via It's XX% to stations flow had stations pay for place natural that by experience because not we and discount their prior driven these and free small business comp revenue receives where the Year-to-date, XX%. customer up year have variability. the unusual demand product. Lodging drives growth our QX able

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

namely and these passenger that is driven from in Offsetting and softness revenue degree to XX%, as weaker hotel some addition product commission higher revenue. which verticals our our the transportation environment per sectors. mix, from increased construction channel primarily was product In macroeconomic impacting and night, distressed to

clear. to We economic as rebound softness the becomes expect this outlook

this to segment our change leaving the operate in our expectation move business segments. company to We're how comment in new and the primary want the we briefly on fourth segments, X reflect I Before the quarter making to XX-K. in

to X% down by and bad year EBIDTA to sale our that, realized Operating FX growth, drive expense improvement revenue of of This still debt expect basis the bad to to debt transaction The on debt looking resulted expense this for expenses lower in points a exposure increases $XX or expense SOFR drag point as driven investments and the better our is micro basis from to EPS. versus last full from million Xrd solid than driven last income expense $XXX lower from an acquisitions. Interest ] the declined future margin acquisitions. Now statement. business. Bad management XXX by and sale, Rusher offset Rusher year interest year-over-year by [ increased of driven was driven debt QX of rates year. and the XXX EBITDA further represent the of balances quarter sales XXX higher realized and growth, QX acquisitions, from positive previously prior activities by million recent partially the increase $XX XX.X%, by rates normalizing year, year-over-year, Within a of tied was to in the approximate margin disciplined Fleet we million impact XX% year. After points last synergies benefit as expense X year, operating higher discussed. on increase debt the adjusted stack exit leverage quarter spend. we in million $X.XX $XX higher clients our lower basis down

was for the versus rate year. last quarter XX.X% XX.X% tax effective Our

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

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

Rusher as authorized quarter repurchased our million repurchases. was $XXX including shares we sale, ] million in XX, leverage conjunction the we XX-month the September for million We with have credit [ ratio ASR in share announced our X.XXx $XXX calculated As with EBITDA for X over accordance of trailing the agreement. and in

buyback liquidity continue it M&A when makes We pursue and sense. opportunities to to near-term ample we'll shares have

our Now guidance. turning to

to thought the bridging earnings XX in midpoint. the acquisition ] would in at $X.XX what factors. With quarter presentation We're per offset QX reflect let these $X.XX. QX earnings We're our Slide factors Making higher the of expecting by to $XX lowers lays prices $XX forma to the includes macro the business We've what divestiture we the reduce between me $XXX net these The activity adjusted pro of expect partially to versus revenue the and XX% per is and our would share on point comment per And midpoint, at over XX% macro income versus outlook driven that forma $XXX [ sale the and million, we guidance million included in that $XX XXXX. by and implied be a we and share increase start me I adjustments $XXX revenue guide, back QX by be expecting PayByPhone mentioned. and which, million we acquisition August Rusher established, that out by provided primarily $X.XX of headwind up reference just million fuel QX pro per reported now current rates, growth during FX the share prior the million. midpoint. to $X.XX by August, between million representing revenue year worse Let to environment. last revenue adjusted at in share,

and net billion. to year-over-year margin operator, billion XX%. Thank to softening earnings we between FLEETCOR. to in per and diluted per for and for Xrd conditions between So $XX.XX for our income expect net now generate EBITDA questions. your like full the And quarter, now of billion. $X.XXX Adjusted expect interest growth share open we'd GAAP billion this you income EBITDA year, despite Adjusted share and similar revenues and guidance, growth line and XX% between QX revenue in $XX.XX of the on economic $X.XXX $X.XXX some Based the markets. we solid $X.XXX

the and answer the line question session. Sanjay Your we Sakhrani Ladies now gentlemen, will question and from [Operator Instructions] first begin from of comes KBW.

Ron, Good the can just assets? scenario color us results be? You're you permutations strategic what a in certain backdrop with these little could Maybe the [indiscernible] bit speak in Dan's here. Partners. considering give tough on a to more might you

Sanjay. Sure,

Corporate business. our really mostly Payments and around in it's So

we And pure of have that a interesting a stuff. has so where and might more actually have separate and couple and synergies counter we something scale parties play

And and so we're working of kind there's those conversations whether there. mile seeing of in something final through the

FX whether just guess that of you And you variables sort Understood. a revenue we that? economy macro when it growth us and appreciate preliminary then what the at and terms year. organic give of backdrop, obviously into be of different think such. in for of next I where macro outlook then from sort Like Can the with about sense backdrop. are we're the baking the a standpoint, guys organic

comment Yes, the gave is I think generally, I comp.

kind both smidge the if to a the today, and I'd fuel at of So maybe you look way it we're that spreads, [ et FX, sitting price a cetera. macro feels factors exiting positive. various say nuetralish here ] like

the And But unlike basis so our that want profit good. to across that looks whatever, our rates to of puts quite side, organic stuff the did grow with I XXX bit preview this of basically year, up, levers organic. key between the a Sanjay, right, points obviously, some [indiscernible] over a provide that just interest

normalized setup looks way has last couple the of than it years. the in So more

the JPMorgan. And line from next question your of Tien-Tsin Huang comes from

just $X lot you the consumer about today on I the different the as payments, CDP ask margin a get the guys a , consumer Ron, assets to covered And to out? this to the 'XX expect maybe for business you wanted that billion profile or you, I you know have you're since on that you talking vehicle you here. to do do is at called $X need be billion? time that

Good to talk. great a It's question.

the debate get You tonight. can Tien-Tsin, only into

which we is basically up active get, the payment just right, it match a of and consumer mostly where know have, product don't out right, these But additional we're was accounts. So I of at play and network lines. this organic to use say, couple the the yes, but is, clear how couple, merchants. that a blocks, we've I got I'd of big an with looking already what transactions we we fill in,

there, the so just velocity. million Tien-Tsin, question dollar that is And

additional So what's related some million show going rate to people, X when take things, the be. we

most So we've I'd is times obviously profitability. studying studying the deal, both we caused key it's that view talk the key that you thinking, this Brazil and million That's is the what is to say sales. and organic. And were, the the a of growth done in

news to we're the let's view tons rather marketing, not is good our but up going go do is of so And dollars of big to a, a gazillions try light basis. spend

So we EBITDA profile got go. thing the to I'd basically say like the

So organic, a more that's mostly and couple deals the game plan.

Yes. And Tien-Tsin, our be dilutive. attractive we look has our and across to rest wouldn't expect Again, bellwether margins it the as portfolio. margin Brazil at of

a think as expands. we So the business be that's good what of overall indicator can it

as are cost, new add-on always lower tensions, new know, The than accounts. right, you

No, Sure. mean I exciting. like it's I it.

think into lot synergies consumer the side there of make I sense. getting and a getting the

curious as Just I'm margin that, hear your and side, the you're called that but thoughtful cost on I'm out, about sure you zone. in it's to glad

get across the there views those the profitability high-level that? lot but that I share can give our lines own, reporting are thoughts we're cleaning the know as know different the I some any think Lodging. between the an it's on the three? about my parts, just follow-up up there three, on Because but more, be differences idea the the is on of and Just margin I thinking can a of you you and business X going on to Corpay, And going that segments. is to Payments, suppose, Vehicle us then, I we're the, idea general

Yes.

segments, on start, yes. Tien-Tsin Let the ,just me

a Fleet X really, the be PayByPhone so in honestly, business, Brazil things business. will our So the other part then Brazil is and will be segment vehicle, which be big which Global this today, the Consumer, would thing that. And our of

Payments Corporate and Second business, Lodging. business third obviously, then

three be So the lines. those would

Yes. And your in modeling, we're just Brazil today. combining fleet for really

those two. on level, operating type the those based and be so Vehicle a may And bringing shift into model simple how Payment income business would it detailed together We segment. wouldn't just is we in a margin of more any summation the profile just you anticipate in the report two how of

And your Peller of next from Wolfe from the comes question line Research. Darrin

current, going important to competitive lot well sticking obviously the this Ron, they from thinking an going the part mean I'd debating forward. then of in And were going around chatter quarter, that's hear But just you headwinds, of you some see suddenly, There's just macro the what themselves I there? to segment love structural side. the a Corpay on strong changes. hear past strategic

to segment? us a Before just going real your you well? that next mergers year? about to strategic like the little or stand-alone, just on What more it So talk look do plans any over else, what's anything anticipate

of XX% Mostly many think not mid- right, going sales the few, I to don't Good inside at line business. is going quite am post, question, Darren. forward. but well how i everything, quarters looking where know I XX%, in of a were from that high the And the to XXs for

lot we're of us So that a selling a There's demand. lot. that tells

what's well of. working well the of everything well not exception today, channel business, which that with and spoken of working terms In is we've

XX%. So to growing implies smaller to of know, part a much you again thing again, continues decline, but to direct is XX% as that the which business that close become, total the

see as border. across added couple getting So really And while years software, right, the ago. of we you more sales brand out marketing We've sales. in now the scale whatever stuff, last assembling getting head said I growth spent We as game a the look, is rate. count put before, the scale,

we're middle reported the market, really So the And have because people Our to point, stable just your quarter. stable, look that's get a book some game and now. pretty those implemented. drive same-store unlike other stable, exiting new the is faster to right? sales It's look sales

of seeing any not we're So that.

haven't level on seen We erosion the either. supplier

continues spend good cardable expansion, see move network to continue We to gradually up.

side the to from level favorable. interest merchant be the side continue the supplier So and

Ron, the really quick That's a helpful prepaid decision. follow-up just business to color.

other to sell that take just any there back And sense to keep maybe noncore step assets that now? why do make Just a you decided on are potentially?

Yeah good follow up.

Darren, ultimately, some looked more at the think than I we just people the it. like of that business

time shopped of I'd dilution that look business leakage, than So tax we making we when you the that ago. at from and X years that, lot a say it better when a spent

the looking people we I to I tax the so right, what is premium about worth think thing. see we enough were And to get the wanted or close for where didn't today, that pay to

review, kind good of the we went of to all feel it. With that as hold part So other through small noncore enough things. we this said,

have actively So noncore kind do we're buyers of of to things that to kind about. we talking

we So and XX the a come chads days. there. But of counterparty up left to in have will both we couple mopped there's hanging broader when that thing, back you

of the next from line from El-Assal question your Ramsey comes And Barclays.

quick a the assets consumer, execute you sort a available just on that geographic of U.S. helpful How plan on kind or that focused on place going to how new about all looking think it a key of we follow-up of are the in perspective? kind Is Or from the over have consumer geographies? Europe? the become are business. you're you whether Or should at depending I that?

Look question, great Yes. Ramsey.

and So company. X current really Brazil the right if our countries, U.K. you call XX% step here, back, business the X in it, is markets, of

be would answer. that the So

U.S. X, were, in So payment consumer today. million I don't right, $XXX the Brazil we're, U.K. target of Close know, business to $X million and in the the billion or $XXX

U.S. get idea so of where to again base And networks have was idea. a was customer the big the part already in U.K. in and this the we PayByPhone these

to a we and and to faraway stuff. no go build management and tensions the for business try plan there's question to in fire a man networks for don't or young So places have us where

and how U.K., we're that Brazil, it. or, U.S. thinking is So about

a sense. ton makes one All follow-up. of And right,

a mentioned On the year-over-year vertical. the Also segment, tough you out this some in comparison Lodging called sub softening quarter.

services. I think was it managed

comp is next gets stick subvertical through quarter, service easier, out seeing model trying expect a easier Just around, should that next the how the the you're we but sort in managed or that of to back headwinds more to comp did of on think quarter? bounce

question Good started think and in I'd unclear, this we out QX. it called I to see Yes. start we because say I

top to let and the this me helpful. again, So be maybe go will

serve, business, different or our of inside X So Lodging subsegments. it, customer X we call

insurance, construction, that. things like So things airlines, we do railroads, like

segment. those So of one kind project-based of is segments this

only, places It's merchandising while. feel first or they Ramsey, pretty I big don't XXX stay clients know, think to people So retail they companies. teams a in consulting but it, go of for and environmental like XXX people

or a So to weeks. maybe city X X there go stay for XX and people

So nature that's of the the business.

XX they So instead literally that and like big just a say own of stores" like, move those our some client or we over XXX their more a QX clients merchandising QX people. to in local use to contractors when say, of in call of company things them, go Walmart, in who's hey, and our using their starting super in-house "Oh, flipped start say out do to hey, for clients there go construction and couple merchandising third-party some would i

segments. don't this place. So I'd really. one in Sure. The it. see We of It's not news just good other is the resident say we're mostly kind

up what's read we've XX% think I So organic.

went that backwards bit, that obviously, while forward. of So thing rest the went actually the managing a businesses

when to the of we Ramsey kind out thing softish of obviously the we're next a make and a idea kind in in to better QX So go year. looking, then turn stay here

question the comes line your from Citi. of And Peter Christiansen next from

curious Ron, review the through of like the up seems that certainly you good set I'm and strategic for portion you're have quarters. a just of couple it a team next now

those share trade-off are of invest your margin secondary on use repurchase, curious to more, relationships. you you the that, sales? leverage growth growth bit Do generally Just maybe here. And on of Just opportunity thinking on about to accelerate perhaps more behind see your curious an thoughts then a get between levels? on the thoughts and

Good question, Pete.

pretty say busy been, X it's a review. So and X been it's whatever or strategic I'd months active

news good ad put when it So out activity. incremental that, the it an does you look, like generate in is

only So additional going, surfaced not and we've in the but or people M&A discussions interesting said, the separation kind of still around look some do some to targets space I as we phone. same have, the as

around So are priorities our look, and think of same. the kind I leverage capital

target X%. is Our

grow obviously don't I the X.X% think know, EBITDA next for year, That's faster. where compounding of stock buyers we're this or X% XXx X.X%, grow if running, multiple we bottom company the team. to I in at our XX% price,

let's will go stock, say, buyers of higher. we're Xx So our leverage

a do For chasing. surfaced We we're a Payments few space, deal. in this our core base that couple things and Corporate a that have, consumer again, have interesting in

two those I'd say, main uses. like So always, the

leverage is our today I we're will generate, in at right, think I year. $X.X and we've billion-ish, got where will the I next early sitting low billions know, still think grow don't to look EBITDA plus next year,

deals handful a back the order. of be So would and our stock buy

growth longer-term then And versus the postal through review? margin? coming Are products. differently out you any you Or as get

Yes, good question.

guide, said, think EBITDA sequentially, stepped look So we've I as margin. and [indiscernible] X we into up quarters at right, or our if you our even

I more think between we've on this same Tom And think gone which little kind for I of and XX% QX. number I a next kind of for looked past our these year, because of money quoted I quarter. gives look capability acquisitions. kind plan at and the We at similarly, us XX%

So year. we'll between for investments of I'd the kind and ramp a initially margin but keep XX% try the of our at the kind look target and XX% say marketing of to is sales bit, least next exit up

next Bank America. of Bhatia your And line question comes from Mihir from the of

How to I on the strategy think that. about wanted more that you ask couple just cetera, to question strategy wanted bit you is about et could all go than Fleet back where I so Card, what the if strategy. I Fuel that bit drive? little had, growth first Beyond segment a expect the a ago. to to And one, Business transformation, I more, fleet kind of years transformation you point little you fuel talk a understand plus that to just The had I'm of talk product trying different

It's a Yes. question. good

the is we're prospects get of that let saying most cards. start business trying for the by So to are me competition that

now things. in cash the house don't have, days, was on we So the And older and are customers and many we that have accounts want that at look other we to cards. there business

some our And are competitors' well. fuel of those on as cards,

the one. go card accounts to a new with card is combined fuel to effectively and really And business in idea a so

So, services of field think in like fuel people the field, cards and that. things that that like against have verticals target use that like HVAC construction, or

as so basic rebranded I call remember, bought ago, years now wrapped, Roger, we if company a guys Corpay the we don't idea X that about One. it, And we've that's that you

mobile-centric wrapped that that automated that so card, business expense it's the now our to kind and we've card connected fuel of around capabilities. business capture and technology around all So then proprietary stuff a card

that's And so combined more of to it's a cards fuel and account. is bundled of has high economics one package and a card into one the what you've little bank a got that business tech kind controls and card advantaged than some

and been testing the market selling super And good, now. has in on so literally we're the duper it products the

has And biggest technology. versus the base. to the So I'd a modern back a product couple of focus. difference, verticals. is the been kind accounts say, It's rewrapped with of the new It's in

small accept you just repeat were macro seeing? call Got appreciate about of strength to it's corporate out? been of driving there segment push like that bit that just would small what's just for a Has payments I that? that whether it. that [indiscernible] to whether guys? maybe suppliers that large virtual more question I'm second. to customers like choosing switching in little of the areas what driving one for you're payment medium, a slowdown card Like bit And you a wondering, of so trying are back just was be or some is But Or of or it issue you your I a And not as of factors lot just understand little are little you medium. And strength strength just about shouldn't segment then really a What's seem earlier just particular or mid-market. sales? driving an payment bit that are corporate big the your a much back?

KPIs in it's bit I rate. think volume. it's can you mean, I I mean not Yes. that really see it the a

the the FX it's said. the in Payables volume business, big businesses there, X you it's business and and So what

businesses I blockbuster half. QX, XX%. just we those of over quoted I year-over-year a the think And that think had I and again, sales in the up were first prior,

huge this spring in you've new we're be summer in volume, us sales the business implemented the the making quarter which predictability. year. helps that's quarter So the got or new give coming and implementation of obviously A next the books, on will lot effectively next this backlog

"humpty So job it's putting not are at to and We dumpy" a they're of marketing really really great made selling competitive set together work doing have it. the them, of turn offerings complicated. and off and a finally

getting So side. B, I the then in think we're it's that on And pretty leverage straightforward. profit business

$X year call a revenue. ballpark, I think, Tom, it it's looking billion in about $X billion

that incremental compounding the scale now stuff. And and XX%, so at flow-through the revenue the XX% margins to of are on XX% business the

So it's EBITDA the margin. increasing obviously

spot. so and hard there. keep chasing just It's a the and we just, after need good TAM have it's So in a it's giant what chasing, it finally to is game we

from next your UBS. Nick question the And comes of from line Bremo

sales Congrats roll to fleet plan I the business? wanted new that for with When informs customers paired business that strong the to pivot quarter. out. the to how on the has in just ask the the and trending about outlook XXXX you been products the fleet how pipeline with larger

Ron. It's

So happening. I'd say a happening. little slower than we'd like, but

but year half the credit So said worked can't in clear and quarter, XX%. this [ that in our a going for ], XX% is QX, I it, losses guess, to I the or remember XX% we're how into XX% down to again, XX%, pivot. went outlook about it's it's, I right so business QX

We have bad. because a small obviously late have that are going traded accounts right, don't we going bit those of revenue, fee later

little complicated to think, So I'd that process. creditworthy the It's on it's X we market that seen contact, in outbound, in that larger and I say the card as and pretty been algorithm if But engine sequentially make Zoom to I than then bigger turn accounts that working. is field bit sure will, mentioned, you digital there. And that be seeing they're we're to started a it call the staff above building second, an will we micros. what increase

moving some digital with that along pivoting dollars investment we're the say So I'd engine.

field the that So pivot pick don't have incremental that sellers. lot. next I business sales a the and the up up back of it in plan year I to think digital the of, plan two of one, front of line XX% U.S. on in the is here is me, it our for but for

I business. to the of sales do would also percent well. lose levels continues And It Yes. of international year-to-date, sight XX-plus growth. quite

Fleet overall the that generate helps Performance seeing. also that So you're

great That's credit see and color down to is very the substantially. helpful loss

a I'm was of if And that but I sorry see follow-up on already do on this question, and basis? to what's you my profile touch opportunity growth side For margin there? expense to optimize much just business revenue PayByPhone. stand-alone profile addressed, how wanted the on the

is going $XX year, been pro in $XX [ right? That's another Yes, XX% in business is there X to preliminary million $XX ] next it, the of this going that their years year business, to a In kind margin plan compounding go-go no last It's profile. into, XX% growth year, stand-alone 'XX it to million virtually call forma circa, earning million nothing. call XX%. to next the

States what the, big can already, their got are we've idea the that in app businesses right, United do is here the So a two using and U.K. One, we of in are with the are it, things. again, already ton the which employees

service. is go rate working we the second to hopefully think I networks of the parking, parking" increase FYI, business. And we have is for better we a don't clients parking going Beyond business has have if then to you're and company where said they So have, have right? amount we're one, "consumer the dramatically substantially obviously our instead that we the BXB EV,

and registrations have things. of compliance We and kinds fine

Ron EV so customers accont making payments got remember, XYZ, their idea is of when add try his license on show in is It's the who plate we information. he's where, the up his the that we an app iPhone, to in we the is, obviously, to data to light kind the Clark. up. And need are on recharge his Mastercard, He's

will, that we into thing take territory, synergy, head into you right, as if we XXXX. positive the So expect to

line the comes from your question next Blair. of from Bob Napoli William And

there, there a tonight go lot through. lot A to

essentially, Payments thoughts any I business, your what's, of size Or around work merging the mean, would, about alternatives Ron, into I company? that could given that, going what merging would Is Just mean, someone be somebody there? that how public the to just essentially separation Corporate acquiring with is you're then thinking FLEETCOR's a else. and that,

voice. hear to good is this you, Bob,

we structure we're obviously, on at depending ours a counterparty a the a and private entity the So of into There's their who that is. there's on spin assets private of company. few combine different same pretty that effectively fascinating amount entity. fair and control could into would that asset looking someone else an out working we're We flavors where have obviously actually

I So asset looking would we've And scenario feel our then different consolidated synergies. another into we the day. company. that We're put on a basically, work another literally at where

something is get really just it combinations. And which, combining lot to a guessing than we're different think of few premium a of "pure of kind by at we and could there's kind sense again, spin separating pro So us a function "where more the accretive, we how forma what makes multiple.

whether So figure we've and been trying people in thing conversations while, or sense we're not. a few makes a the quite to out for with

Interesting.

given really year? size size. follow-up acquisitions or something The organic on relative outperforming more Is Corporate next is XX% there. of maybe key growth the you've made impressive What it Payments. is side is number a AP of is the FX, Cross-Border of pieces a Corporate And the Just that into Payments? sustainable the that

final of give terms level. are of you XX-XX we yes, card, backlog I'd got ideas with Board But in of you I around and again next we I'd revenue, but believe accounts. number. say they're as And then high the given They're the pushing of some too I hard. year monetization teens Ron of again, without, got will, kind same to if days get come sales a Another more the the of that kind both we've online next the good to compounding XX% couple question. year. And early think, Q say due in to that think

just keep it's even big, though next think I and going I getting the about again good we So feel think it's year. thing up

Nate Deutsche of from And line your comes Bank. next question from the Svensson

period organic I double-click to just fleet growth the a within on bit. little wanted

like growth out from at relatively organic you Rusher X% ] this [ if was So all it flat looks quarter. periods, take

I what you last quarter, give out on Australia. can a drove and little detail So geographic you that called know Mexico X% growth?

this what that, trends happened growth quarter, and softer. have So wondering the may the X%? little as Within into what stay through we to roughly did quarter Rusher should ] organic fourth which expect well, move how grown moving flat around a monthly third ex that quarter, [ progress we at the just grew

to the well. U.S. do within well, Nate, our quite that. relative the in the level of Again, all I'd our blended perform very I'll some was performed U.K., rate. them well. of Mexico, take But growth over-the-road growth say trucking business, positive international Europe, to we continue do both markets of overall some enterprise able segment saw even quite Even to Australia,

accretive most So of growth, within we overall. while some to the positive international see pockets weight markets business the carried did the also the the U.S. that was of

small said, just filling little is we of that a in bit struggling we've the of as bucket fleet back up the As with activity terms sales market. some business the pivoted

Got it. I appreciate that.

And into so that on consumer I but a know questions there's pretty been I shift vehicle few find intriguing. the payments,

me that you that that another So strategy great fairly the called market seems building like kind out earlier. U.S. I'll seen of to out the ask success you've the idiosyncrasies get compared or U.K. to may unique of one in about Obviously, but there's lot it a here. Brazil,

you're on the ecosystem U.K.? what take from how you can you planning implementing learnings path to and as And it and So U.S. can vehicle hurdles you maybe consumer those in some of your the talk over see experience? you that about the the the might out to Brazil get roll hurdles

another It's good question. Yes.

whole I file. active think customer the existing turns on the thing

is just consumer think, there, the original walk Brazil, if big So learning, in tags you mostly recall back initially. the to I was in time business

store, go go on toll you online it one you go booth, and I windshield it there and want is". "hey, stick a and my and I I So tag, to get a automatic hey, to you toll the

And of people years tag onto phone so get that ago a to those a have people there phone. to couple idea the the was on get the big to same be

what account content we the put there million what is were stuff the X or month that of the the million the because know like so they of there found X car And is and on checking their car we phone. once on the and we hey, things people app like that phone on learn we their value are stuff. every the Doing on

additional of providing example, And for sales so the what that's insurance, things, enabled insurance.

like the That's every that's the X car, because month for couple things on million EV, it. And point at hurdle. example, X and of that will vehicle them other that like or their to is, it the light U.K. the can in are phone million you a question so in rest servicing the related take users we dollar active their take of has Brazil have

networks. We connects that kinds all and networks still to the the G&A the these of top have and stuff. on is tech computers have the all We host like obviously and of

you keep consumer with game more So the that's that the the and willingness The app things. their conversation, focus. there's no dated that take idea, that And is basically to marketing, input. secret I is telling

make Clarke, I type i one Rover, where separate rather stuff Range in than apps vehicle and my in phone here's Ron card, and number is a play, card the here's It's So go. place. on. of X The your and license X To here's have my done. having or you already so parking kind the and credit app

of kind And so add-on it's for in the place apps.

to fast this would grow there in I big to lies point thing. the how So you we question can

customer the of multiple products. base using XX% over that's Brazil, is in And

case, feel a types and to it's a do some just use significant people where good number described, time that as payment the of their service number ultimately transactions like to multiple get activities as we really over I we So app wanted can Ron vehicle? would surrounding use penetration one of

Yes.

thing, or doing hour another here, And of and the parking your it an phone jelly, go you found carry this time away butter app you're to me, but you've one a and got and not, hey, whatever. you do I and park bit here I'm it's extend then and just me you be of your to the peanut hour. Let in on end a going fast, for is which like hand you

exactly with you're what the when stadium a game no or So stuff. Hey, something contents theft covered period X hours. we you're while watching How you for your when about from that vehicle. about insurance I know during at deductible, parked parked that X-hour leaving

and when for your one stuff. that Super think you nest, we an like and So up. we have. I of were scanned provide Duper is could as give notifications some registration that We close, example that have of reminders can things thing we fines

in power the is the to is. application being existing it it So close of really super what

line next of question Trevor Williams from Jefferies. your the And comes from

fleet days, on I can fleet been X% get assumed for wanted to about ex in specifically Rusher to Ron, So how XXXX now, to early at with rate you in with thinking ]? rough and the know XXXX, historically, what XX%, what growth [ so about it term, a but shared to organic grow X%, back are the to in had XX%, line you near historically [ you're X% that's I kind go think targets. I is least out? Rusher sketch, you've if X% it's But for you thinking the in growth especially to think within there ] of organic thinking right it's how the

Payments. later. I what of the There's know more then installed right? probably stuff a say Corporate of because give too I'd answer. and as question. around head kind the you set done way we is into to days Yes. for early I'd backlog we've Trevor, work cells that forward that visibility home as say a the good year, good we And started Christmas. super

selling kind low is So last the new the product new been baseline think businesses obviously much obviously, fleet new juice of new stuff, from piece, global single upsides quarters. then line where have I of around come we kind parking. example, so of this has big channel. And digits few We how and the big question X the like out for obviously, consumer business this

company and probably it the boost turns to it, basically the do with digits remember, what before from things far so my to me, breath, Brazil And going incremental you the these high of on much going that. question so the and that how that as we're X%, assignments can top what invest big to conversation faster. at take and how move combo to how with real and to some somewhere. try that. But a get and call you're on up new already push going on X be is much are really to It's tell So this is I'd it vehicle we we out we the take is that business try To and new probably International, single and back that's at of X% the reuse push. it between layer number to being and to to Brazil, try find you're exciting #X, that's X going say we're to and of U.S.,

X that have businesses X. like instead we of people So

that's what I we're to So want hear and on. loud that, clear

basis And corporate one XXX then, Tom, margins, just payment like we're Understood. a looks for quick year-over-year. you. The it points up little than a more

if Anything be global I that there in remarks. reach, through? that there? some don't synergies alluded specific to I think came know was potentially your some prepared coming out synergies But you helpful. would call through expense to

factor and generate a to business leverage some the Trevor, just technology And cost over of that and global stable dynamics and a drive synergies how revenue We're with that's structural and positive just of eliminate fixed just positive of look higher. early costs, one operating within base. relatively a significant lot to contributor. the was going in of the growth at XX% business margins a leverage then that spring a we're operating lifting able We're against that did reach. office to the to certainly heavy realize move contributing platform. We terms summer the able on back to costs,

be So combination things that. to synergies the contributed and that structural components would

Research. Suchoski Autonomous question comes And Kenneth of your from line last the from

Ron, one for merge about wanted Spin the ask with a to you. partner. maybe I opportunity strategic

You've been over X-plus out CEO business decades time. at built FLEETCOR for the and

would BXB combine with? market that how to you separately, product or new to the of the geography, out are or entities? really Either segment your and and you fall think responsibilities there within with cost? would business do where that assets structure, find responsibilities guess, scenario where So spin/merger, the would about two be in And which separate day-to-day there then under by the is a your I another look specific is play take overlap

Yes.

Ken. multiple So

working couple first I say, possible, been not sure, don't We've again. one. and I'd on resting we leave to and pay this say this, we're depends point to a So So that people number I'd have I attractive think, at That's off, [indiscernible] a combination, would is Ron one. or two, it be to structures but of they're the but Number "hey, right? it's don't want call where complete something" want

of like that's the have to this private case, in idea spinning And is into world had look where it minority a company of we one almost So that and we else. assets me FLEETCOR that entity a someone before. structures a investor, kind interesting of which would us

the basically that, So I'm that of in something were on am public, and a plan board, a kind doing thinking and into to sit clear else I where went of we busy were probably was the we the going. advance have RMT about way it I was that today. If other it thing that thing as

a and that be to get path something to take resolved. and going makes on warrant I That will that convinced go it's to valuable, have sense So a it's to premium. to that's going super super your point, we

issues on to lot would comment to how of going be social is, I that you are we involved we would it combination our not eyes. and go. But on So talk close with. about and spending and went in spin time I others We're think forward those early my certainly a super whatever just

your in payment as a out Ron. some And businesses. have of guess sense, called my lot of then peers follow-up, their cross-border of Yes. headwinds just That makes the, some I

is business seeing how U.S. I the currencies. those risk rather converted for guess, Specifically, of being Payments? a seeing of they're than guys Corporate dollars you any cross-border payments Cross-Border payments more transactions in being that And done I those to much are guess, local trends? within

of it not it's But weeks there's was, right Yes. margin. mean That's bit and ago. of on few follow-up. kind a of kind a really say dollar softens good a the much. say I'd volatility where FX when little whatever I'd the I

what the the remember, States, look just the volume at the a diversity to business, right, again the softness here Maybe then that generally we're We're in point clients pretty XX% U.K., we just and United it's outside stable. right? So share of I'd for and you say smidge us, we're originate Canada, more of guess, growth. and business, If there. I the of all there, printing revenue all about adding just, your more Europe, it's Australia. spend, in And

also of big geographic kind impact. the so have diversity And the originating a and currencies

base little a hedge, little a weaker, it's bit bit is little the, is bit a the of So counterpart One stronger. a but right?

So I slowdown. seeing say don't in but we're I'd say to the much immune, not we're way

There Thank does further at Ladies gentlemen, that conclude our no conference for are this you. questions and participating. today. all you time. Thank for

You all disconnect. may