Slide 1: Q4 2023 Earnings
Q4 2023 Earnings February 8, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains 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
Slide 3: Quarter Highlights
Quarter Highlights $663M $3.82 +7% +11% Revenue Adjusted Net Income Per Diluted Share Percent change from prior year quarter Percent change from prior year quarter Key Takeaways • Delivered record quarterly revenue • Q4 revenue and adjusted net income above quarterly guidance ranges • Executed $150M
Slide 4: Annual Highlights
Annual Highlights $2.5B $14.81 +8% +9% Revenue Adjusted Net Income Per Diluted Share Percent change from prior year Percent change from prior year • Delivered record full year revenue Key Takeaways • Strong revenue growth from Corporate Payments (+24%) and Benefits (+32%) segments • Strong adjusted
Slide 5: Strategic Themes
Strategic Themes Growth Drivers Profitable Growth Capital Stewardship Well positioned for a mixed fleet High confidence in achieving Continuing to balance organic environment that incorporates $100M of operating cost investment, M&A, and EV - including selection, en reductions on run rate basis by o
Slide 6: Q4 2023 Financial Results
Q4 2023 Financial Results wex
Slide 7: Company Results
Company Results (In millions except per share data) 4Q23 4Q22 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $663.3 $618.6 $44.7 7% Net income attributable to shareholders $84.9 $88.7 $(3.8) (4) % Net income attributable to shareholders per diluted $1.98 $2.02 $(0.04) (2) % share Adjusted net income attributable
Slide 8: Company Results
Company Results (In millions except per share data) 2023 2022 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $2,548.0 $2,350.5 $197.5 8% Net income attributable to shareholders $266.6 $201.4 $65.2 32 % Net income attributable to shareholders per diluted $6.16 $4.50 $1.66 37 % share Adjusted net income attributab
Slide 9: Revenue and Adjusted Operating Income Margin by Segment - Q4
Revenue and Adjusted Operating Income Margin by Segment - Q4 Mobility Corporate Payments Benefits WEX % $663.3 (4.7)% 7.2 $367.2 $618.6 $350.1 6% $178.2 26. 0% $140.7 22. $135.0 $110.7 45.2% 43.0% 47.9% 58.4% 28.1% 33.2% 38.5% 39.6% Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Rev
Slide 10: Revenue and Adjusted Operating Income Margin by Segment - Full year
Revenue and Adjusted Operating Income Margin by Segment - Full year Mobility Corporate Payments Benefits WEX (4.2)% $1,443.7 % $1,382.7 8.4 $2,548.0 $2,350.5 .5% $668.4 32 % $504.5 23.5 $496.9 $402.3 48.0% 43.3% 47.9% 55.8% 26.5% 36.2% 39.8% 39.9% 2022 2023 2022 2023 2022 2023 2022 2023 Revenue Reve
Slide 11: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet $782 • Adjusted free cash flow1, a non-GAAP Adjusted Free ($ Millions) $517 measure, is defined as GAAP operating Cash Flow cash flow adjusted for changes in deposits and investments at WEX Bank (operational in nature), capex, and other items 2023 2022 $976 $922 2 • Corpo
Slide 12: Guidance
Guidance Q1 2024 % Change FY 2024 % Change Outlook YoY Outlook YoY Revenue (in millions) $650 - $660 6% - 8% $2,700 - $2,740 6% - 8% Adjusted Net Income per Diluted $3.40 - $3.50 3% - 6% $15.90 - $16.40 7% - 11% 1 Share Assumed Average Domestic Fuel Price $3.50 (9)% $3.55 (9)% ($/Gallon) Mobility Cr
Slide 13: Guidance Assumptions
Guidance Assumptions • Guidance is based on US GDP growth of approximately 1.5% for 2024 • 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 impacts on segments •
Slide 14: Appendix
Appendix wex
Slide 15: Key Performance Indicators
Key Performance Indicators (In millions unless otherwise noted) 4Q23 4Q22 $ ∆ Yr/Yr % ∆ Yr/Yr Mobility Total Volume ($)* 21,057.4 23,994.5 (2,937.1) (12)% Payment Processing Transactions 138.1 139.2 (1.1) (1)% Payment Processing $ of Fuel 13,814.3 15,936.6 (2,122.3) (13)% Net Payment Processing Rate
Slide 16: 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 $135.0 $135.2 $135.0 80.0% $121.9 ◦ Segment revenue increased significantly for all periods ($M) Revenue, net basis Adjusted Margin $10
Slide 17: 10-Year Revenue Growth
10-Year Revenue Growth $2,548 $2,351 GR 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). 4Q23 17
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Operating Income to Total Segment Adjusted Operating Income and Adjusted Operating Income Three Months Ended December 31, Year Ended December 31, (in millions) 2023 2022 2023 2022 Operating income $ 158.5 $ 155.1 $ 647.1 $ 469.8 Unallocated corporate ex
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 per diluted per diluted per diluted per diluted (in millions except per share data) share share share share Net income attributable to shareholders $ 84.9 $ 1.98 $ 88.7 $ 2.02 $ 266.6 $ 6.16 $ 201.4 $
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation The Company's non-GAAP adjusted operating income excludes acquisition-related intangible amortization, other acquisition and divestiture related items, debt restructuring costs, stock-based compensation, other costs and certain non-recurring or non-cash operating charges that
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Operating Cash Flow 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 change in net dep