Slide 1: Q2 2023 Earnings
Q2 2023 Earnings July 27, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements These materials include forward-looking statements including, but not limited to, statements about management’s plans, goals, and guidance and assumptions with respect to future financial performance of the Company. Any statements in this presentation that are not statemen
Slide 3: Quarter Highlights
Quarter Highlights $621.3M $3.63 +4% -2% Revenue Adjusted Net Income Per Diluted Share Percent change from prior year quarter Percent change from prior year quarter • Delivered record second quarter revenue Key Takeaways • Year over year revenue growth despite significant fuel price decline • Revenu
Slide 4: Topic Updates
Topic Updates Strong performance Capital Resiliency in our across growth drivers allocation model Average YoY SaaS Signed definitive HSA deposits buffer account growth of 11% and agreement to purchase against interest rate growth of 25% in average Ascensus' Health and movements HSA custodial cash as
Slide 5: Q2 2023 Financial Results
Q2 2023 Financial Results 5
Slide 6: Company Results
Company Results (In millions except per share data) 2Q23 2Q22 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $621.3 $598.2 $23.1 4% US GAAP net income attributable to shareholders $95.3 $34.1 $61.2 179 % US GAAP net income attributable to shareholders $2.20 $0.76 $1.44 191 % per diluted share Adjusted net income
Slide 7: Revenue and Adjusted Operating Income Margin by Segment
Revenue and Adjusted Operating Income Margin by Segment Mobility Corporate Payments Benefits WEX $379.2 $621.3 $598.2 (10) 4% % $340.2 $159.2 $121.9 % $118.6 34 $100.4 21% 50.9% 44.2% 50.8% 54.4% 23.9% 37.2% 42.3% 40.3% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Revenue Revenue
Slide 8: Adjusted Free Cash Flow & Balance Sheet
Adjusted Free Cash Flow & Balance Sheet $131 Cash Flow, Q2 YTD • Adjusted free cash flow of $130.9 million Adjusted Free year to date ($ Millions) • Trailing twelve months adjusted free cash flows of $1,047 million $(134) 06/30/23 06/30/22 $901 $922 • Corporate cash1 balance was approximately ($ Mil
Slide 9: Updated Guidance
Updated Guidance Change vs Prior Q3 2023 % Change FY 2023 % Change FY Guidance at Outlook YoY Outlook YoY Midpoint Revenue (in millions) $629 - $639 2% - 4% $2,495 - $2,515 6% - 7% $35 Adjusted Net Income per Diluted 1 $3.65 - $3.75 4% - 7% $14.15 - $14.35 5% - 6% $0.20 Share Assumed Average Domesti
Slide 10: Guidance Assumptions
Guidance Assumptions • Exchange rates are as of the end of June 2023 • Domestic fuel prices estimated at $3.70 per gallon for the third quarter and $3.72 for the full year, based on NYMEX futures price from week of July 17, 2023 • Adjusted net income tax rate is expected to be between 25.0% and 26.0
Slide 11: Appendix
Appendix 11
Slide 12: Key Performance Indicators
Key Performance Indicators (In millions unless otherwise noted) 2Q23 2Q22 $ ∆ Yr/Yr % ∆ Yr/Yr Mobility segment Total Volume ($)* 20,228 27,822 (7,594) (27)% Payment Processing Transactions 142.4 143.2 (0.8) (1)% Payment Processing $ of Fuel 13,780 18,640 (4,860) (26)% Net Payment Processing Rate (%)
Slide 13: Corporate Payments Segment Revenue, Adjusted Margin, Volume, and Net Interchange Rate
Corporate Payments Segment Revenue, Adjusted Margin, Volume, and Net Interchange Rate Corporate Payments Revenue and Adjusted Operating Income Margin Key Takeaways $160.0 60.0% Segment adjusted operating income Adjusted Operating $121.9 ◦ $114.0 $110.7 margin in Q2 2023 was 54.4%, up from Revenue ($
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Operating Income to Total Segment Adjusted Operating Income and Adjusted Operating Income Three months ended June 30, In millions 2023 2022 Operating income $ 159.4 $ 171.1 Unallocated corporate expenses 25.3 19.0 Acquisition-related intangible amortiza
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted Net Income per Share Three Months Ended June 30, 2023 2022 In millions except per diluted share data per diluted share per diluted share Net income attributable to shareholders $ 95.3 $ 2.20 $ 34.1 $ 0.76 U
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation The Company's non-GAAP adjusted net income attributable to shareholders excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, changes in fair value of contingent consideration, acquisition-related intangible amortization, other
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Cash Flows from Operating Activities to Adjusted Free Cash Flow The Company’s non-GAAP adjusted free cash flow is calculated as cash flows from operating activities, adjusted for net purchases of current investment securities, capital expenditures, the