Slide 1: Q1 2024 Earnings
Q1 2024 Earnings April 25, 2024
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, expectations, and guidance and assumptions with respect to future financial performance of the Company. Any statements in this presentation that ar
Slide 3: Quarter Highlights
Quarter Highlights $652.7M $3.46 +7% +5% 1 Revenue Adjusted Net Income Per Diluted Share Percent change from prior year quarter Percent change from prior year quarter Key Takeaways • Delivered record first quarter revenue • Year-over-year revenue growth despite 8% fuel price decline • Increase to fu
Slide 4: Strategic Themes
Strategic Themes Growth Drivers Capital Allocation Resiliency in Our Model YoY growth of 14% in average Repurchased approximately HSA deposits buffer against HSA custodial cash assets in 353 thousand shares interest rate movements Benefits segment Leverage as defined in the credit In strong position
Slide 5: Q1 2024 Financial Results
Q1 2024 Financial Results wex
Slide 6: Company Results
Company Results (In millions except per share data) Q1 24 Q1 23 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $652.7 $612.0 $40.7 7% GAAP net income $65.8 $68.0 $(2.2) (3) % GAAP net income per diluted share $1.55 $1.56 $(0.01) (1) % 1 Adjusted net income $146.7 $145.8 $0.9 1 % 1 Adjusted net income per diluted
Slide 7: Revenue and Adjusted Operating Income Margin by Segment
Revenue and Adjusted Operating Income Margin by Segment 1 Mobility Corporate Payments Benefits WEX % (1.0)% 6.7 $652.7 $612.0 $342.3 $339.0 .9% $191.2 15 $164.9 9% 16. $122.5 $104.8 40.5% 38.6% 46.9% 52.7% 39.1% 41.5% 37.6% 38.5% Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Revenue Revenue Revenu
Slide 8: Cash Flow & Balance Sheet
Cash Flow & Balance Sheet Cash Flow, Q1 YTD 1 Adjusted free cash flow of $(205) million Adjusted Free ◦ $(61) ($ Millions) year to date primarily due to quarter end timing $(205) ◦ Trailing twelve months' adjusted free cash 03/31/24 03/31/23 flow of $374 million $976 2 ◦ Corporate cash balance was (
Slide 9: Updated Guidance
Updated Guidance Change vs Prior Q2 2024 % Change FY 2024 % Change FY Guidance at Outlook YoY Outlook YoY Midpoint Revenue (in millions) $675 - $685 9% - 10% $2,730 - $2,770 7% - 9% $30 Adjusted Net Income per 1 $3.75 - $3.85 3% - 6% $16.10 - $16.60 9% - 12% $0.20 Diluted Share Assumed Average Domes
Slide 10: Guidance Assumptions
Guidance Assumptions • Interest rate decreases included in line with the market fed funds projections. Company-wide net exposure to changes in interest rates is expected to remain neutral although there can be segment impacts • Exchange rates are as of the end of March 2024 • Domestic fuel prices es
Slide 11: Appendix
Appendix wex
Slide 12: 10-Year Revenue Growth
10-Year Revenue Growth $2,548 $2,351 G R 14% ue CA en Rev $1,851 $1,724 $1,560 $1,493 $1,249 $1,012 $818 $854 $717 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Reported revenue is in millions of dollars (USD). 1Q24 12
Slide 13: Key Performance Indicators
Key Performance Indicators (In millions unless otherwise noted) Q1 24 Q1 23 $ ∆ Yr/Yr % ∆ Yr/Yr Mobility segment Total Volume ($)* 19,943 21,217 (1,274) (6)% Payment Processing Transactions 136.9 137.5 (0.6) —% Payment Processing $ of Fuel 13,061 14,144 (1,083) (8)% Net Payment Processing Rate (%) 1
Slide 14: Corporate Payments Segment Revenue, Margin, Volume, and Net Interchange Rate
Corporate Payments Segment Revenue, Margin, Volume, and Net Interchange Rate - Adjusted Corporate Payments Revenue and Adjusted Operating Income Margin Key Takeaways $160.0 70.0% $135.2 $135.0 Segment adjusted operating income Adjusted Operating ◦ for all periods ($M) Revenue, net basis $121.9 $122.
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Operating Income to Non-GAAP Total Segment Adjusted Operating Income and Adjusted Operating Income Three months ended March 31, 1 1 In millions 2024 (margin) 2023 (margin) Operating income $ 164.5 25.2 % $ 154.3 25.2 % Unallocated corporate expenses 23.
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income and Adjusted Net Income per Share Three Months Ended March 31, 2024 2023 In millions except per diluted share data per diluted share per diluted share Net income $ 65.8 $ 1.55 $ 68.0 $ 1.56 Unrealized loss on f
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation The Company's non-GAAP adjusted net income excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, acquisition-related intangible amortization, other acquisition and divestiture related items, stock- based compensation, other cost
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow The Company’s non-GAAP adjusted free cash flow is calculated as operating cash flow, adjusted for net purchases of current investment securities, capital expenditures, the change in net deposits, c