Corpay (CPAY) 7 Feb 242023 Q4 Earnings call transcript

Hello, and welcome to the FLEETCOR Technologies, Inc. Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to Jim Eglseder, Investor Relations. Please go ahead.

Good afternoon, everyone, and thank you for joining us today for our fourth quarter and full year 2023 earnings call. Ron CFO. Chairman are Tom CEO; today our Panther, me Clarke, and our and With

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

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

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

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

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

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

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

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

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

provide bit give of our and third, plan thanks strategic I'll both the my share and we've a our cover our four afternoon, an products Good QX XXXX a XXXX on few update full new first, I'll year highlight guidance; second, launched. you here, then for recently subjects: to earnings QX results; of review; lastly, call. and Okay, and Upfront pretty exciting Jim, joining that take priorities thanks. everyone, XXXX on status

let $XXX up mixed. results, Okay, X%; earnings bit bit our at reported helped me with a QX year. frankly, credit $X.XX, which, and million, a finish last than our begin better XX quite was QX outlooked of of XX%. up fortunately, EPS $XXX up of expected. revenue of were weaker did XX%; That approximately million, cash than EBITDA a level bit half revenue ago. the losses flow-through we was about But finishing days by We mainly

few in showed The a areas. the up revenue in quarter weakness

First, gift cards.

shipments micro accounts gift So pretty had of the by again, washed we credit card cancellations vertical a some had America we QX. we in pushed in been level. late North that soft passenger airline record quarter, fleet mostly have here the Lodging, low at a were because into delays year In in when tightened lot essentially that ago pretty losses. improvement reduction the fee we credit fortunately, continuation of away Again, is That, about exiting fees, started light. late a was a a terms. distressed

softer with outlooked. our channel a And business than then Payments, Payables had is business the last we here or even partner Corporate finishing

bottomed it's we think out. there, Fortunately

head as or guide. or So reached spots of weak spots, bottomed these kind into have kind out related related, we of soft either XXXX our of weather kind and timing have

hopefully, not again. surprising So us

a partner growth, Vehicle just X%, revenue if good, but organic what the QX, Corporate The channel. organic growth, Corporate revenue And Retention weakness sales, Payments called quarter. exclude in a out. the quite in over the also revenue call Payments, the Sales XX%, slightly the and business you by the soft impacted mixed. I growth there finished XX%. same-store for again, Payments bit XX% sales XX%. Trends overall, workforce QX, The in overall X% improved in lodging lodging up performance the we XX% we in saw terrific and airline grew a U.K. X% bit with spots to down. Again,

Okay.

BXB up Let up record XX%; up $X Sales Trends new up full X%. that, the And inside which revenue the XX%; did turn up of year year in XXXX XX%. reached sell again, and approximately, XXXX Payment $X.X me make cash for to We good. full year of XXXX. for about of billion, billion, XXXX, results, XX% Corporate full our clients EBITDA quite XXX,XXX EPS overall. sales levels. of $XX.XX,

that organic In revenue makes so plus retention consecutive full X stable organic XX%. growth, of XX% of revenue And XX%, growth. at year again, years terms

and did Additionally, a number initiatives strategic in EV understanding our of we the EV year, advance of of important versus the ICE. economics progressed relative

Russia FTC and So did We our up promising issues. results there. clean

envisioning we really this business, introduce really integrated payments vehicle initiative. consumer and vehicle couple payments-related our did close to have We X it jump-start acquisitions, in fully broader cross-border, Fleet for our in a X idea which transformation important business. We a did as of parking

So look, pretty all successful in a all, year.

Okay.

our the our start me transition major XXXX Let objectives make guidance year. out to for outlining and by the

things. few a So

performance, that's deliver as financial our consistent objectives. always, midterm with First, to

new acquisitions that to our some through hope in Payments position Corporate deepen we space. in Second,

And our Vehicle accelerate to to succeed new and out hope some them. launches growth acceptance product confirm year. Payments and the with revenue we business Third, for of with then proof cross-selling lastly, market throughout build successful

So on financial our to XXXX guide.

Russia. Russia. the midpoint print and or on a XX% revenue cash of basis up or XX% XX%, XX% the excluding EPS at XX%, midpoint So And of $XX.XX, that's Russia. at that's $X.X $X.X finally, excluding up up billion, excluding up billion, EBITDA of X% print

let again, of 'XX XX% Russia. So EPS me that growth year, just planning profits, this say excluding cash

are will grow through expense. revenue EPS. faster We good year to throughout than earnings flow expecting One, the

rate. better shares, slightly and to tax So fewer that we a and help, FX have lower operating leverage will expect do

our the sales in rate In terms year QX from helped of growing exit we're last into revenue XXXX. obviously and organic here by growth,

We a initiatives here number base have add then will year. sales cross-sell we planned in levels client do expecting are into XXXX, this our of to higher and which revenue

So cards, parking, into business, back total some provide in out specifics across the fleet And Fleet insurance, Tom the Brazil, and on selling year. services guide business, clients. it selling bit business breakdown the the the how toll back will EV, into in fuel a the rolls parking, in base. more XXXX

next FLEETCOR that the schedule the We of also the Corpay March. mark plan rebranding and to to company chapter with of for

Okay.

strategic me the our review. Let turn make to

last initially focused we whether formal and our on a a could Corporate reminder, initiate our question Fleet for of strategic business the just as value So did shareholders. portfolio from separating unlock our review business of spring Payments

months and last combinations the Dan's from We a pretty have explored of Goldman help, We with numerous fielded lots particularly rigorous with of Partners. process lot some a at run alternatives inbounds, Sachs. over XX looked

say consumers. us and to quite businesses a creation helpful the business review potential process of serve both transitioning new -- value business Fleet got I payments for our some and the really in the that was company exploring some spotlighted for structures will broader vehicle really into

priority for So us. that's super a high

value business time today to So But for to process. together announcing being, focused remain open Fleet is and Payments the least Vehicle best the of squarely keeping Corporate right conclusion look, down our forward. reconsidering repositioning really on review various we unlock Payments Obviously, now, the the options way road. we're determined business. that the the we At

Okay. on really here the products. terrific My released is into with We've upfront new each last potential. marketplace subject year, new products X this

businesses, X paper where account business a our X. call Corpay first, the virtual virtual That's field fuel card, in we card cards all solution So replaces the for the cards. what with includes all in card card to and even checks exciting. pretty targeted UI, business and in so fuel-based for X X and fuel drivers owner, That's

targeted Connect to we product trucking small call the Second, companies. Comdata It's Card.

Comdata it discounts card. and reporting fuel the trucking truck connects to the companies -- business credit company's the So existing stop

get fuel their So reporting discounts truck They continue of but rewards the credit card. a and card, combine really business and of that best both trucking firms here the the with would to get existing stop from

also trucking terms this Look, small challenge companies. with credit us in of helps the

without risk. can trucking we of hopefully, credit So lots firms bring small on the

all product app. a kind to midsized newest platform in we And is walk call Payments businesses. again, really solutions, targeted cards mobile combined in and automation this of packaged our Complete. around It's X Product call a solution, is cards corporate the business we X up Third central fuel Corpay platform, what with build, again, that all so we've really AP

So really, we all in called they're around CLC businesses the have really lastly, expenses less. of for we think spend Lodging, product to Choice. modern And business manage and new way a kind

solution travel choice really for solution lodging being workforce more a flexible of really employers the it's friendly for a and employee want who more idea travelers. So with

virtually hotel brand. keep any and case, favorite hotel, choose room rewards this in So type any travelers their points could from even

solution we our So opportunity choice the there. think complement market current control solution the and will really widen

X% we're new look, products this have set hopeful accelerate these of while for products super over about So X% in the and that been new time. to excited quite a will kitchen revenue

Okay.

for today, revenue, year on to Sales cash So hopes in revenue vehicle XX%. the planning have the XX%, payment midterm. some retention EPS stable a the moves for. conclusion expense. or we're position look, Russia, excluding super up we high our of that that's XXXX, XX%. better record a up full company go-forward at good, new record really a really XX%, products Made an EV for new of assumption progress, set earnings. and Organic year, growth strategy. interest good flat Launching XXXX, and up profits record

next as March. the in company rebrand company Corpay really for beginning move then the And to to chapter the we

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

Ron, everyone. Thanks, afternoon, and good

some pockets was Payments the year. and was quarter last cash expense and the growth of XX% by delivered Organic discipline, The Here EPS in Vehicle $X.XX due in and Payments which versus growth international X%, last was as mostly related up businesses and the the within our strong our guidance a expectations tax lower expense fourth weakness bad continued of and full share mostly perform are improvement Corporate year. Lodging, softness, revenue rate, to offset slightly well. additional our in Revenue below U.S. per to quarter details continue while revenue same year. debt to

increased with XX% XX%, full grew the in are midterm Looking revenue EBITDA line at our organic which and targets. both year,

the hikes the incremental We also growth interest of for expense, and the year cash full XXXX. would absorbed due expense for higher the posted Normalizing during EPS of X%. have still million year earnings $XXX XX% interest nearly grown to rate adjusted

Corporate was for XX% increased up the performance Now full turning growth. to Payments and our of quarter XX% drivers the and our year. the underlying segment revenue revenue during

the For business AP. quarter, grew by was and again in XX% growth our direct led full

with well, are quarter, extremely up sell to continues up signed XX% we solutions payment customers this modernize sales looking who high-quality their of suite to full Our as operations. AP

I'd declining partner with the in quarter, revenue drag volumes lower from XX%. channel note that accelerated the channel

spend Excluding channel, the partner increased revenue grew XX% and volumes quarter. XX% the in

So be lapped all flat bottomed, to quite and transaction the the revenue a XX%, believe synergies was partner from on grew in XX%. the in XXXX. was core basis. activity We acquisition and GRG robust. XXXX. up revenue recurring We've Sales channel volumes volumes revenue and expected client fully have January are strong Cross-border now

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

in We new sales increased resources continue investments as to as business product well make and through marketing capabilities. this significant

nonbank this have world. provider business in Over few becoming into the largest of transformed BXB solutions the the FX last we payment years,

of the Turning and with our vehicle Recall Brazil businesses, call. creating that combination Europe of segment have consumer payment full introduced that new this the put one company, both new is to goal a along operates initiative. simpler vehicle-related our earnings of across to our America, a and with in offering Brazil consumers. we businesses reflects suite last Consistent all Vehicle solutions segment vehicle-related Fleet on North now we Payments. solutions It our and

fleet, Fuel, Armando the tags the as But President International serving You'll also we've the note products Alan and that realigned that we given such new segment, Parking. King support type, counts KPI comprise North and of by EV transactions. transaction our executive parking. Brazil segment team product as over Netto provided We've with and the to new different as as this Group have America segment's Group defined and the President

all strength Payments particular organic international the more X% involve markets. in EV a increased or U.K., Vehicle of with fuel the vehicle XX% and Brazil revenue maintenance. product, namely In quarter sales during than new nonfuel

ago. has strategy more EV all revenue EV themselves The as is Our increase. a results winning app continuing with fuel, U.K. and product, our and than to in on-road from clearly speak X-in-X year both one doubled at-home in charging cards EV charging, for

attachment having with we're great all a our rate solution at-home charging In XX% to success new selling sales. addition,

to Europe. Our continues which at over rapid will March, chargers charging of we network And have fourth the the in charge charging we and in Tesla, nearly the also of by now coverage XXX,XXX offer expand, signed end XX% the we points in quarter. U.K., including of

over million from to $XXX,XXX ended insurance QX nearly 'XX, X we condos. locations, X quarter parking in fourfold including stations, X $XXX,XXX million, XXX when extended of network year total XX% policies we gas Total and nearly drive-through to per and Brazil, X,XXX Sales our spend in and X,XXX 'XX Toll Beyond XXX was tags from up approximately up policies. In network. locations, nearly were X% to year-over-year X in the with of customer are now restaurants QX X,XXX quarters so launched

in a large used add vehicle vision success revenue then an and of anchor payments base via driving point a Brazil proof incremental by to tangible growth. broader is mobile to leverage a our additional customer Our app services product

payment launch are the our the consumer vehicles strong U.K. leveraging We market. solution success our in in to

selling PayByPhone our the in that X maintenance to We consumer proprietary building quarter the toll to via third million over acquired in and parking customers, fuel, we able the users business PayByPhone offer to have insurance, to the begun U.K. be network the EV, access networks. to our integrations

from our fleet and from clients and revenue In impact our sales U.S., micro affect results. softness the in to away continue shift small the

digital and we applications, sales growth approvals Our and continue see in starts. are efforts as improving to field

from to 'XX. late As the shift quarter, XX% we QX also fees, mentioned clients quality last higher credit were impacted which down

late essentially While the growth, so expense, bad in is wash. a decline revenue in drag a fees resulted on it in similar decline our debt a has

the XXXX. business flat was XX%. for revenue grew QX year, And Lodging the

verticals continued was disasters. like there were fluctuations cancellations, can have growth and now verticals. quarter stabilized. insurance softness airline year, in revenue significant business This Certain affected QX appears last the natural weather our and to insurance which airline existing by of and airline weather workforce and Recall, quarterly in by customers, which benefited the within driven events have the

lowest quarters, XXXX were related from a By can comparison, the QX major business were quarters. insurance cancellations to XX% fact, this results events to are 'XX. were We're flight XX% this year. quarter. according down confident Despite And the which no fourth low experiencing approximately And of decade. claims, there return of the were QX similar weather in over in double-digit in we the recent Department approximately to the growth that soft Transportation, the cancellations down in coming in quarter,

that We will drive capabilities our experience extend recently launched sales. customer new product and new

a hospitality of as welcome Ron to new will Lodging, that excited to Group we're experience retiring replacing President be has Additionally, Rogers extensive the the business. strong lodging and the asset

demonstrates the a over XXXX. performance the of our In billion It business of generated flow. quarter clearly strength proud cash growth model free in a diversified business we and the that and of we're delivered of billion summary, our

were versus the higher of Now our by down growth business. expenses the last statement. QX looking and Russia and of million income expense Expenses sales transaction activities debt investments operating acquisitions, flat offset sale and from QX to year. bad lower were future of drive $XXX

of from XX% to is point by our This nearly in driven down of positive $XX and from was benefit Most management disciplined was declined the $XX million decline basis the the micro last lower XXX growth, expense synergies solid expense million million Vehicle quarter or from realized debt spend. expense, year-over-year fourth last to quarter bad or lower debt X we Payments, Bad leverage exposure margin was as a points XX.X%, EBITDA from $XX clients. which operating year recent U.S. revenue improvement realized year. in basis the acquisitions. of

$X.XX in drag quarter lower million EPS, this expense an debt by Interest adjusted impact and offset balances approximate year-over-year. the rates $XX resulted interest higher increased of on partially QX year-over-year,

items. quarter tax tax year. XX.X% rate the was specific effective XX.X% related rate Our last planning to for lower versus The

sheet. to balance turning the Now

sheet had unrestricted from entering our $X.X the $XXX are in quarter ended up cash, We ago, shape. million and over $XXX million with XXXX with We in billion we on revolver. available excellent days the balance XX

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

As million term with concessions revolver which on and minutes. year-end, added loan of no our $XXX facilities at buybacks in ratio This by X.Xx XXXX, and share XX few leverage I'll trailing no which our the credit range. A was incremental provide capacity and of rate we both will upsized months lower change capital a is end in for in EBITDA, and January, target In A flexibility deals maturity. elaborate the our

allocation balanced capital the per deployed average shares $X.X $XXX Our as quarter, we In share or billion. we repurchased $XXX an XXX,XXX again once XXXX in roughly was million. of at price

year, shares position year, acquisitions used excess for amortization cash the vehicle repurchased space we the debt in on during for revolver million spent payment X.X $XXX our For cross-border. remaining EV, $XXX balance. million. improving the reducing We flows and the million We consumer our and

As and allocation I by capital position. is our XXXX significant plan cash our previously liquidity supported mentioned,

XXXX. in cash we and capacity billion $X.X revolver expect $XXX billion to We cash increased our by generate have and free in million, under flow our during $X.X unrestricted

Our and businesses acquire position We'll our remains operating pipeline first core deepen priority our X M&A in M&A, is that the to robust. look segments.

capital for now Board by $X.X during share increased our authorized for We over XXXX. $X buybacks We billion the repurchase repurchases. January, also have share authorization allocating In are billion.

XXbX-X open the market, to purchase $XXX later the and shares We throughout we'll year. of million expect shares month. repurchase a establish this through these plan We to plan

Generating or cash leverage be is our to plan our to XXXX. and problem, reduce flows used systematically in we so position. a our this strength revolver cash growth cash much residual through and high-class Any build M&A EPS buybacks support earnings will from to

some business me in thoughts improvement nor outlook. perspective, economic full Now our QX year meaningful XXXX and we overall a on let an recession economic share are not activity. From assuming

is of the second Our consensus lower markets, economic in year. on in based modest for forecast the interest growth and calls for half year economic the rates outlook generally our the which

a and And and fuel XX% of per between grow in anticipating year, mentioned cash blend first I is planned prices we're we to to quarter. of expect be average prices which diesel U.S. XX%, full the which the $X.XX headwind expect XXXX, to We is buybacks a for EPS fuel unleaded. the previously. In gallon, inclusive

Revenue between growth with be XX%, is Russia business of Keep of expected rates margin year. expanding in X% inclusive is and EBITDA mid-August increase projected XX%. and to XX% to approximately growth to through mind, these to last our are XX%

EPS midterm Russia, XX%, on supplement earnings XX%, up XX%, We've XX% and to growing cash revenue XX% XX% our Excluding growth slightly is to XX. our is Page EBITDA these in details provided all is above targets. increasing to

XX% XX%; a mid-single rate digits; be perspective, Net in million the facility approximately credit Lodging payments $XXX XX% be is the organic the finally, interest rate swap Also digits. expense securitization includes facility. of matured of Vehicle Payments a segment a expected is now in $XXX which is From our Corporate and tax Payments projected following the Roughly between utilizing revenue X.X%. high that interest our rate is single December. expect is replacement our variable $XXX between swap million the And we recall million, and swaps, and in that rate blended to fixed rates: growth XX%. to

the challenging of year includes lower pockets expect first revenue quarters, to well operating that a a the below full to continued comp the fuel due in tough of softness, our to half including prices. Related average Russia environment, year as as growth be we the

the we to clear, sales. We accelerate year benefits new economic divestiture Russia half as lap outlook the the the growth our revenue growth of back we of initiatives realize expect the in and of becomes and

EPS X%, X% rest our we're to and can quarter, X%, midpoint and grow revenue revenue interest supplement. increase and cash cash expecting the reflects Russia, which in X% release found rates. The For Normalizing between and at and XX%, higher between growth of X% the EPS first and respectively. assumptions be for would our be also to press

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

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

Christiansen Instructions] Today's with [Operator first Peter question from comes Citi.

Two you, Ron. questions for

on year, thinking mix tactically credit particularly performed XXXX last you -- curious, after Just of in credit least extending the pretty the How versus about improving loss about, you clients? are at side. your midsized mid-market well

say, I'd looser. question. good Peter,

last coming used called And about the has credit in So year. gotten over better XX literally the a the I I we've bit prior model that months. half losses of think out

we're say which kind this a generally larger prospects, second, to to again, I'd So And open of we're carefully. that going then pointing credit. better

So we year lower it is to plan on revenue full smidge have my full side. help than guess year 'XX, should the the just but

Ron, I M&A vertical? we think to get then, forward? acquisition going be now soon exiting should priorities areas, FLEETCOR Any least helpful. the Corpay's review, your M&A priorities at sense to going -- about particular on your horizontal forward? strategic how want fresh Just And That's guess

Yes.

at kind company. back be buying to Glad question. of basic the good Another

focus primary is on the So be Payments. Corporate

big in again of couple we've is the market consumer consumers And of networks a of block of one this other could we're So a space. that on of interesting of that then getting pipeline area that our a this we kind got things idea all capability, to.

say the those look two short-term things would be to would for. I So

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

sort some a could us I about more they'll of that the and sort a to get what could more some as represent more the if the little quarter? impacts? implied color happened maybe headwinds you're improvement. permanent in on wanted ask curious just was on you QX But And out. going know to degree of to I'm we sort of ask transient what that than on little of you just give which color you see headwinds I that you you give deeper into called us rather that 'XX confident

the mean, call the I quarter a it, same-store of was sales. in Yes. story nutshell, Ramsey, I

I So would 'XX out And our went you it transcripts, minus have to plus been QX called prior if was X%. back X%.

period basically XX-month that plus to in went X% X%. from So minus

X organic growth. of points So that's obviously,

whole expense Retention kind was lenses sales the good, that's line. were call credit my controls, good, story. that in through in Everything stands of the So line was effectively below X out. QX

to I it. so go X obviously pockets new. were surprising pretty They of not that guy through me the And to tried or carefully. kind since just I X through looked it's are Really,

go what losses. a at and shed have channel If communicated the we bunch fees, of softness; pivot softness the look credit we you 'XX, back some and lodging base; some micro partner payables about in from which having late the in accounts, talked having unfortunately, would

minus basically, of so, came it I'd X% looking called store we're that I kind on same say three out to And in those X% and things heavier at downside, were say, at just X%. the

quarter. of story And so the really that's the

And data so there X through it if cases, those hit deals in the the news, we've of the good bottom. all January, is in showing like even it looks like is any,

the thought the we sales, same-store climb we that that is out pattern. reverse the almost So have process of

in So business to book that getting that X positive thing flatlined basically minus basically X, 'XX. of minus because the back

that's on the So it. perspective basically

in quarter we the So It's things bit that than that a we have outlooked. things. basically it's really new heavier no seen were

strategic Was that could what so process the kind it in comment for friction of rates? partners? process to of that was of of prevented executing and from monetization follow-up the of alternatives it closure essence? of postmortem a up? hang a wondering if kind strategic alternatives on the on Was I me. was find the A revisit lack Was at the to Okay. just execute of valuation on? was guys kind it difficult strategy? it Why in you you kind sort Where

against the multiple business. RemainCo super Look, But Corporate we it's which great main got MainCo. look, just was said the here. months question, quick answer the the complicated straight so was is on XX with range I much. a think It the what's of thing a Payments on uncertainty an why We of spent right, trading wasn't we really

So going to I stance us think into something to synergies. -- to would do caused separate to this scale things and we were have pivot if partner that that

it's didn't as And so engaged answer synergies maybe the or social combination pan X of one and different with be it. or is a we we out good relative around we agree to the or case, short partners, thought valuation either X as to issues that couldn't

kinds a We it seriously, these bunch We've But combinations, difficult. of are say we've did know, So as you at people. always guys met quite I a learned lot. of lot looked a of structures.

The day relooking at is our but things so this on it different we again. back And in focus to look. will buying obviously lane continue to a and rebuilding now open vehicle business, we are

now, forever. for close not So kind but of

with comes JPMorgan. question Huang from Tien-Tsin Next

I you you're -- that thinking that was growth. laid product the enhance side new out just going to on here

curious into humming sales think Do do mentioned you in the think are How you time. you around X I X where Just that. over with have already? that quickly convert you points to engine your can sales?

hear your to voice. good Tien-Tsin,

why AP scenes, an capability a We platform. X, tech acquisitions, platform platform, end. bought we brand-new front right? bought fair this So or workforce the The the X over X I headline with call a last behind of amount mean business we've those I really European the the a have software our is, done years, acquisitions. out term been of And capability a Corpay what some called

described the of the that allowed that kind I at next-gen top. spin we up And some, got products of so us what internally kind tech to I them call

plan sales we've a robust pretty And them got we're so out selling now, them. for

would roll the expect of those So for And acceleration. to we'd next us I this is thing as be then revenue, next sales into key obviously, basically, to year, those would say year. you the products. report convert year The

the is or Does in the So market them? put X key the like of we'll front reception? that what's these X things

prior reliance it. just just Got a It years. revenue you, for my 'XX visibility more is there's again, visibility growth always versus recent cross-sell Macros but Ron, years? new know about then you I how done. follow-up, year always versus products it this you've what maybe something it. into and bit And consider the is, little initiatives. like thinking in feels on Got would

super like things. It most that's question. Yes, good a sounds

same Some some things things the are different. stay and

important as for again full year why most of I I for you out know, XX. the That's XXXX, the called our off year last is And thing target is us, obviously, out growth the sales, I call for rate. base. think So a which bigger

and micro 'XX. the we've selling And that as had better. Two should getting retention. year, the accounts last same flush retention first success we is So is is structurally, bit here help those the expect thing a in

take new you those right versus business. things, two recurring you basic those know, losses to a is as business the So key the underpin,

the year the then the been ended has So in bet the the wildcard, which, the again, minus thing, in softness column. the plus and year here entered column

ideas So we've platform prebooks flat, for important example, new that technology new differentiate. then let acceleration. a turning is we someone super thing us top as price in someone the walking where I than that who and instead into dynamic to of on pricing getting think, around that, back But some the or the got most rooms could weeks ago for of X a pricing, lodging hotel didn't the different

we for they come vehicle lay a We've fear want the to when adding carl their basically to on. we've few a of it plan got that if partners people park. happen And big park will new around your they point, every got a insurance signed then buck time to something we've that that cross-sell, announced haven't

should the but super of the products little pretty it's more be would I'd past, different a that not So a say historically. than and the some say supportive balanced. I cross-sell it's new than

the in helpful. it. help Got I No, I the would think way think, And of strategic view might a focus to, Ron. update, that's appreciate with I the also but

Yes, extension base for the back of the

comes next with Wolfe Research. question The Darrin from Peller

that vehicle initiatives bit talk back Ron, are the what little double-digit growth and low of -- to feel now. we're maybe for it's to a the being a maybe you double-digit really just we bit guiding a segment mid-single-digit when sorry, to But think Tien-Tsin's mid-single strength? that from year, drive just just the a question follow-up going I'm -- now about -- aspirations go to of

And or obviously, it in Brazil. now with success, of look a you're it's EV having whether like obviously does lot

-- credit you're any I'm as a also of a those that? 'XX the some of color have had just on just follow-up, fourth just know assuming would you quarter for more quick variables rate those seems combination vehicles. headwinds yet quarter. a factors, on it So better on of but I And all than the abate, guiding in like and it's growth you a growth but some fourth but mentioned like call, similar you certain

So that. just a little more color on

Say the part, what last Darrin, is to in guiding XX. on

would have quarter, a a bit has know comparing it'd vehicle in mid-single-digit be Yes, I thought which fourth growth, per some headwinds little I segment, to it better it.

Yes.

So beginning let that then back the question. to my and take last back me your of part -- way

to of XX%. mid-single low if yes, you go digit that from up quarterly kind So looked our thing would inside role,

organic you So the vehicle said to we internal exactly have what plan to accelerate. the growth is

So better structurally the normal because kicked drivers again beyond micro of out get of the which retention, things should the accounts. we two that

card one And it's new consumer, I this the obviously, that second sales just some being fuel the is is the core right, thing and point, both talked the products working. your the trucking in to incremental. business, all EV extensions in about, business good and just But

in just So pretty people another to we incremental soon add services that on take X of X people, it's and X about the million Brazil, and we'll there that which we every extent in the million is have, dollar profitable. can couple and U.K. talk already or

and on good on So The new retention of couple which have handle consumers. sales, and sales, then we really two a the new drivers. those things the and the same-store products base are new the

So now where we're this vehicle in restructuring. on distracted Obviously, But working I then headed super think on look, we had bullish a and a this is thing clear. bit pivot it. we're

vehicle. micro longer-term mind, still have the had Keep thing of half the And the clients first question Darrin, in Ron, the add to for we I'd late about other fees that from elevated year SMB last platform. one on your

So that QX. we get into you until all late start lapping

it of an a creates annual that look basis. you bit grow-over when little So on a challenge at

$XX revenue effectively someone reasons, we've some text, late of And a taken little revenue of like, hey, out And credit million not send of like million me million, light. and which the lower I been the out $XX the It's $XX a fee swap, people but it's out. credit one Darrin, losses may looks $XX million kind basically to of one-for-one having there of ratability losses.

shift of moved portfolio and expense. And Tom's both that so to revenue kind point,

I if helpful. that's follow-up. know really time a That for there's -- don't quick

of just understand you the a if Just bit virtual the around one its little explain it's channel little -- card And I can finished that's bottoming drivers, and channel is more here. of partners maybe to more out on very or on or the want if anything business adoption a guys? quickly underlying dynamic the Corpay. else, a what

that take one. me Let

question. good Another

trend, an it's we customers some the is virtual So And what a nonexclusive. from third-party moving years ago, if you channel those relationship effectively U.S. provide we which about think to exclusive where card basic call business, partners with processing. us started X

Ron used you to XXX% processing. I, for So my of use are

it's me to X told providers. have a Someone good idea

So I'm over rate. try business your of to half to or you I'm the time, haircut to give going going kind

years, call that Darrin, the effectively, having with. really we've were having, XX gone over X it, with So were partners partners we last important exclusive nonexclusive XX from

that So the with contracts have 'XX. we us now good X have this is flat news the on 'XX one

which out that down of moved that across in we're business effectively for course flat way business, print our during into looking 'XX. revenue So the 'XX, its

be channel you'll great, will will So instead saying that answer hopefully, business but at hear Payments crummy, me the hey, oh, Corporate be of business say 'XX. every flat. it The was the was quarter

from Bank. with The Nate next question comes Deutsche Svensson

Darrin on first right off wanted to outlook growth -- what Payments. I So leads Very wanted the XXXX. Corporate to to in actually ask into about hear I for XX% nice very a payments, card ask the talked continuing challenging despite because you've stickiness that with virtual sort in suppliers to regards resilience the accept to about of and see -- you past, macro.

give So any resilience decision since update Or spoke sort maybe how with great? us with be would months last that X has on there an the Anything you suppliers? your trended process can ago? changing of update we

Nate, change. much it's Ron. I'd say not

before we paid Merchants or on more acceptance not or acceptance a for of more that example, more have that turns margins, merchants. higher think it virtual really accepting because said of I flow sooner. card merchants they're the cash obviously are So profile need a

say car if kind steady. is again, new. is. merchant function of really who has nothing takes the I'd So Kind who pretty of super there's of the been will, you the a And opt-out really rate,

nothing So new.

we've Nate, tick bit. And actually a penetration seen little levels card up

the it a moved of on at card, a spend and over look it day, kind up So end of to that's as you quarterly at down of trend. comes that's the the amount

hear to That's the penetration great levels. about

there's Complete know lot on end of One, the Corpay products of at I wanted new release so throughout And a to deeper talk dig about was was there the been out know of I call. I came a press new January. products? that the kind

So full cetera, maybe between offering, seeing you're AP the motion Corpay of where there, et potential you the talk go-to-market within cross-border, Complete? about synergy can the that sort

given are or a automated and expense the menu some expenses of pitch or got to good some coming Looks I expense CFO fuel another knock one we've drivers, you la question. got based looks here. like kind you a got products great do control And That's used we've of on in reimbursement. a need Nate, simplistically, mostly, midsized carte. management Yes. cards. high better Hey, it that company, some the like got was not that's business hey, mean, we card,

So how presented historically, we things. that's

a so look spend And have to kind was be idea or the of whole the company. the rebate or at to able of wrap

all you month you've points your does life million So X.X basis back, combine spend. not easier. sound? you've a back got How walk I make give of CFO, XXX could around and spend, that AP got that and

have those literally So stuff around things, the walk underwriting and report, it, is X stuff AP of terms we and in a call automation stuff. the system finally together, all credit platform where X brought

deal. idea a deal, to present a now the that's so And a carte an will, if could instead you of package la that company we effectively

leaves literally set it, first the said, of with call underway, you we just so or call So a it. been it, in just what month

going someone credit a it's future. clearly, how They hope la them is to But we that use and stuff. It's the if an have carte day, underwritten on be we railroad. go easier to they're the to sell know They've we back. the UI. first learned My the even account,

time. to And it so better think we certainly lends sales add-on over

Sanjay with from KBW. comes question Sakhrani next The

are for kind questions. on these of and the macro sort on of assuming the that I macro you've just what bit you are answered assumptions hopped I you little Sorry, a But if using year, late. beginning guys guys of ending apologize the year? the

it's Sure. Tom. Sanjay,

all of in to completely big let's of there, but any the in markets cuts year. at economic those expecting we gangbuster-type maybe detailed and look of and macro it talk I relatively major macro, picture When occur, Brazil, rate as in markets picture relatively then a expect in improving broad can economy kind various a consistent, stay not slightly So we're line we think little U.S. markets specific certainly, big in U.K., outlook not recession, with an macro, start you to But kind economic and relates guide. as terms bit expecting our company. more to of stable, of expecting GDP X our those see to we're we're

that the first, today. to it fuel affects price to categories, are we couple in XXX, more narrow and -- fuel about little I respect of With a FLEETCOR, price, combined a where average diesel below and macro unleaded think terms that's of

you to are XXXX, closer If we're rate where $X.XX. probably of blended around a we through just of at kind look

challenge. the in growth to But of So of oil that's one that prognosticators terms pull-through we're callouts had the and QX of fuel. not we the

out. other play at year look just those And things. providers We view was of would of how consensus the and EIA that the

would It's as absolute. more volatility to of generally Spreads predict. that I not think on demand hard That's really from last price, based see just you with a perspective, seasonal increase. consistent increases fuel year.

gas, base at some So that's kind be modeling, trends but relatively in look we expect to we of and consistent. done spreads historical

have -- doesn't of the strengthen week weaker, business. dollar the will be correct to FX of and dollar a expect last the so a But is FX, strengthening the our dollar tailwind. the and little or and rate a term, little bit little side bit cuts we projection so. of longer over help a If the continue, that

overall, so a slight we tailwind think, that will us. be And to

Rates of neutral generally kind to better.

rate based modeled there. have the rate last out out on curve the curve We

lapping we we significant a rates So full then, finally, Certainly, I be XXXX. expense better. year bit the taxes, the a tax in benefit to be think will think will be us. rate of grow year interest from in 'XX with over will consistent this terms the guess, little from headwind generally And

macro kind have respect -- from and So benefit slight a to characterize big with of things us perspective is to neutral to of affected a directly. macro kind macro -- perspective us overall, the we that

Sanjay, It it's last Play interest Ron. XXXX say feels year the FX we we get great it's interest of here. instead sitting whatever -- and clearly of expense earnings print anchor here with printed I living half year. to at that's the to it's or right, print rates. can it $XXX But back got optimist shiny beginning that to declining the super XX% because XX% off and Tom. million all days, through I'd with jump in a

So say setting or be this moment super positive super that I at to it. with up happy it's would

Yes. my I'll take fingers crossed.

your a And in Ron, can initiatives prepared of How anything can cross-sell the in then Is Just a you there when get the that we over actually happen contribution baked mentioned significant XXXX? follow-up. sort of much remarks. in? way?

Yes. different I in happening it's mean places.

Corporate we've before, Brazil base. back are sales company the and I said, back base. into taking We're probably selling base back We're card -- back add-on products reselling the as them Payments of consumers. got fuel the with there the we've think of out called XX% something it's in core to millions underway you the because I now that, the into of app with parking

significant in say there. plan. probably we get as number the through I'd relatively So what expecting it's it's in sales clearly we're our terms of year

So some number core you business are got, pretty a clients and it's know, them been the of XXX,XXX we've idea part of of big. as

of having more them always offer the idea. part been has to so things And

So this year. it's meaningful I think

with from comes Sumar question The next Evercore Sheriq ISI.

I see that take was Payments in looking has rate Corporate the at Slide XXXX. XX, can I and increased

over get have some to can the the trajectory? think by here? to segments. the the done that's So as pricing context we just you that function of what's expect power the same I And adjustments wanted

on get just that. insights So some to

give page It's Sheriq, again? XX? number

XX.

XX.

Okay, just sorry do that of a Yes, has the channel mix. with to lot so

that's of So fluctuate versus take Corporate saw the business the as volume the related Ron have quarter, Payments. amount in mentioned we earlier of what's on way take to channel channel we the in rate terms direct the the the fluctuation as rate causing in

follow-up segments, on We is and Payments and grinding all Got higher across the within Vehicle that the it. And my especially been margins. see the have the Corporate Payments. margins

sense a a which get to to to do you contributor? be margins just like So as could expect be segment in what biggest the meaningful XXXX, driver in

rounded to think don't it's or one I disproportionate kind out of of just another, summarize. Yes. way kind

For guided bit XX%. be full year and XXXX at I being to year, as that, higher XX%. for exiting we a than were the little probably were would at the expect. around we We you XX%,

a There's really not it's one. so of And there. not change lot

You're take, XXX basis or XXX, about, talking give points.

of the the we're of doing structure business inside something secondly, driving existing that's business modify the and margin, not structure. that to more the And think the it's necessarily necessarily I business model the

amount margin perspective this benefit sales the each of going at grow a you'll at levels we rotate get as natural that and just growing operating where are see just So and leverage businesses up. cost, you're from from fixed to which of revenue the the

to same So also we at want time, continue invest... to the

Credit

credit 'XX the would the also from is sales bit, marketing. in 'XX other help to make company, standpoint significant we investments to Yes, But a around margin. point. continue just investment, the thing particularly coming fair just that and guess, little the down I of

generated. sales spend of in can the growth historically of we the company back that continue of into make engine mindful so that terms generate the And are the amount kind we're we've to levels sure to putting that

William Blair. next The Chris comes Kennedy question with from

you forward that's economics in about can EV you over sample U.K. how the confidence I But your the business. know that, for unit give of going evolved time, of just broadly that? your talk

Yes. it's Ron. Chris,

still XXX we've been preface XXX it's it. what, analysis X quarters it early and or I I days. with this something look, So or -- have guess, in for, running accounts

So a paramount. look, we know

We I to just me conceptually you paid customers purchase. paying real more. just and simplistically same that that reason get have paying the more is the bills can are we that real think more, say I'd us to or there's

So gas stations. the U.K., in say, business, X,XXX in let's the fuel there's

there. drivers million X have We

way be incremental So than someday, every an gal million has points. to charging or X X,XXX EV, It's there's public when points. more guy charge going

transition again, pay simple X our all old charging or ability, some make charging and gas scope useful company to for is public that a some home, they fashion the the keep to together so peanuts. And help million from it stations, and fuel of what the fees at the in bring

it like so feels they what we're more And doing. me to And it I know we importantly, doubled, we like products that think have Tom, year-over-year.

solution so got it it like fashion thing. paying more the than feel clients paying And I we've the better clients for whole and are down about right and the they're

today." in would us. of would I'd fray be super I my time here "Hey, So fire a lot there's sitting say alarms. stop It comment the front of to But people, not raining be frigid

question from is Jefferies. Williams The with next Trevor

color airline how the I like be was the different want on to relative on you those sounds side. other ask of services, more to especially within most workforce, incremental managed the the helpful? did, the segment? But of some would more on weakness It Any insurance, detail QX components give on just pieces any Lodging. can

Trevor, Tom. Sure. it's

we related would seasonal product, people in of to a forecasted the growth things the distressed the of what was uptick. fourth like with level cancelations that remarks, experience flight So quarter come for piece. historically biggest We anticipated, where lot we prepared the workforce and in our from and business, and see quarter. the more the was did it actually our saw seen as where holidays mentioned softness lots with we airline insurance Lodging air piece surprise had expected of on was typically had the we've that. the our you There's in a the where about in really

insurance. fruition. we saw the And insurance decline come on in that the overall did Similarly side, the to

to in a softness has of So fourth that really the that businesses occur decline indicated, things just quarter-over-quarter the those stopped move towards had little based episodic new in and more introduction But the we materialize. those out directed continue that was there. to and new of type we didn't products. quarter Lodging see X where of the Workforce, on Ron bit sales of feel expect as like some forward types

guide. No, helpful. finer Okay. that's the on put to for the And then a or just macro organic assumptions point neutral the

year of In progressively will rate point, that else the high where like QX growth the were point the exit low call cadence, is XQ anything for organic terms of over So the of you 'XX with the out? or should accelerate year? course saying for expectation vehicle be growth to

Trevor. Yes,

and that can add Tom me then it. Let to

the main I So reason mean, the is sales. conceptually, same-store

make right, business, we We math, we you about think and of sales to right, lose X%. then sales. if same-store to get have So right, XX%, how the

the head so X that the which and minus store was And seeing back bet will plus is we're flat. the X that X trends, same ago to in it we quarter past have, was this quarters

organic And in obviously, that by points. thing example if that X does,

better again, retention. rates our retention our card than So accounts, think faster, up of micro that's then you A. and business retention, third, business. have higher more B, just growing we the When Payments flush. And bigger has is this likely Corporate have will tick structurally fuel it you because

the model as two help those half. So things, we back it will

the which the those to will now of start that we're then build, start add-ons out, set half. to hopefully, the cross-sell And pouring stuff new products in and build back will

up the the So makes as run that's year. what curve through we

is David Koning The Baird. from next with question

yield have on things. fell that volumes called corporate about must But low-yielding what mix? is guess, XX% the the improvement. were I sequentially. line, But down mix off. falloff What a the in you Just volumes couple volumes was out the of corporate It been

sales that that would our literally was X% been business flat. just before. mean, thing reduction. We that that if It's same-store I I said the have was Yes. of point channel

and So partner around that dates us big again, no volume just non-exclusively. of goes goes, and money gives a it's lots

bit revenue, we lot lose of And so, a we little of a and hey, volume. lose

But of And obviously, the we lot spend the up that's also XX%. channel, that take of that because north level know weren't business a rate low-margin goes we getting. excluding was

we But on you that's story and the point heard you volume have I take right, again, to the have contracted, channel a 'XX. make noise the really it's to sure that finer be just driving have So for to may the business seeing. people for -- that thing, both rate said want

we So the hit that with because helps look at dating. that the that we're more done -- relate kind of minimums there what's I of us effectively dating to there's we guys when contracted, no bottom you inside have, around

it If or you X more that, in X that's day is. any where on

So there's any good the that's here. that news -- if news, good

was suspendered some And kind it of well. also as and belt minimums

got a too. minimum also we perspective, we protection contract, we're under that have commitments also So while some some from

low mean, is just Got out, to that quick or lowest it normal? XXXX a you. or so. in -- it million, remain in if your X you Bad unsustainably so, anything guidance Like And Is related lowest I to is low? XXXX follow-up. for quarters just reversals? called And $XX expense, debt

because but necessarily I'd debt grow. necessarily the perspective, mean terms grows, revenue or of of in rate points it expect No. amount it's Obviously, a fluctuate think we business percentage the as that business basis I going say more spend you'd grow, not dollar the dollar to of it's to bad normal. from of to fairly grows,

So I good continue we'll think in see XXXX. performance to

more to the client We in models. be a opportunistic have it, plus a Ron of I learned we've and that's credit. over a of our terms how the where be X lot we'll a quarters, we we position gotten we've in where call point manage some We've think can tuned said, last, bit think micro I

down like into is helps because And take you credit late flow-through the decent you right, the like out you're to out a add again, looks EPS. although basically, expense, when those it revenue the point earnings, it have loss taking flow-through is just fees

So that's one of remain pretty the good. reasons that the flow-through profit

next James Morgan The with Faucette comes question from Stanley.

It's Mike for James. on

for one me. quick one Just

be there? be in terms quarter? On it distributed of weighted the you based evenly cadence seasonal any think fairly of mindful it Do will particular generation? free should be to we buyback, flow just cash on anything Or will that

Michael, Yes. it's Tom.

to going terms price stock we're of the like think market is. we be I and conditions, in mindful where

we use Obviously, you all of want liquidity, But and $X to we M&A. put for add to of to $XXX some to we're billion work, I we both As mentioned, flush worth have want that possible. up, upsized then as million it another have the revolver, sheet it up we cash quickly billion, with we to put the on liquidity. to balance liquidity that and probably of we work as $X.X want when

are and But be year the I be on I amount market to the the market, the plays market quarter of the then out. just the So and think stock timing we will predicated we'll conditions of think those is going in be see types how looking over things. as to of the course this

Thank well you for concludes as participation. this gentlemen, conference. session our as and the Ladies question-and-answer your

your may disconnect lines. You now