Slide 1: Q3 2022 Earnings
Q3 2022 Earnings October 27, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements These materials include forward-looking statements including, but not limited to, statements about management’s plan and goals. Any statements in these materials that are not statements of historical facts are forward-looking statements. When used in these materials, the w
Slide 3: Quarter Highlights
Quarter Highlights $616.1M $3.51 +28% +43% Revenue Adjusted Net Income Per Diluted Share Percent change from prior year quarter Percent change from prior year quarter • Delivered record quarterly revenue Key Takeaways • Full year revenue and adjusted net income guidance at midpoint above long term t
Slide 4: Topic updates
Topic updates Deepen customer Build for small Capital Resiliency in our share of wallet business allocation model Early success expanding Flume enables WEX to HSA deposits buffer Opportunistically return product set usage in the expand wallet share against interest rate capital OTR segment contribut
Slide 5: Q3 2022 Financial Results
Q3 2022 Financial Results 5
Slide 6: Company Results
Company Results (In thousands except per share data) 3Q22 3Q21 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $616,129 $482,764 $133,365 28 % Net (loss) income attributable to shareholders $(44,145) $48,318 $(92,463) NM Net (loss) income attributable to shareholders per $(1.00) $1.07 $(2.07) NM diluted share Adj
Slide 7: Revenue and Adjusted Operating Income Margin by Segment
Revenue and Adjusted Operating Income Margin by Segment Fleet Travel & Corporate Health & Employee Solutions Solutions Benefit Solutions WEX On a comparable basis, revenue growth in Q3 was 47% * * Slides 13 and 14 in the Appendix show a comparable revenue presentation for periods prior to Q4 2021 as
Slide 8: Cash flow and balance sheet
Cash flow and balance sheet Cash Flow, Q3 YTD • Adjusted free cash flow, a non-GAAP Adjusted Free measure, is defined as GAAP operating ($ Millions) cash flow adjusted for changes in restricted cash (generally customer cash), changes in deposits and investments at WEX Bank (operational in nature), a
Slide 9: Updated Guidance
Updated Guidance Change vs Prior Q4 2022 % Change FY 2022 % Change FY Guidance at Outlook YoY Outlook YoY Midpoint Revenue (in millions) $570 - $580 15% - 17% $2,302 - $2,312 24% - 25% $42 Adjusted Net Income per Diluted $3.15- $3.25 22% - 26% $13.24 - $13.34 45% - 46% $0.12 Share 1 Assumed Average
Slide 10: Guidance Assumptions
Guidance Assumptions • Exchange rates are as of the end of September 2022 • Domestic fuel prices estimated at $4.00 per gallon for the fourth quarter and $4.38 for the full year, based on NYMEX futures price from week of October 17, 2022. • Adjusted net income tax rate is expected to be between 25.0
Slide 11: Appendix
Appendix 11
Slide 12: Key Performance Indicators
Key Performance Indicators (In thousands unless otherwise noted) 3Q22 3Q21 $ ∆ Yr/Yr % ∆ Yr/Yr Fleet segment Total Volume ($)* 25,385,822 17,082,795 8,303,027 49 % Payment Processing Transactions 145,257 134,029 11,228 8% Payment processing $ of fuel 17,205,436 11,907,220 5,298,216 44 % Net Payment
Slide 13: Travel and Corporate Solutions Segment Revenue, Margin, Volume and Net Interchange Rate - Adjusted
Travel and Corporate Solutions Segment Revenue, Margin, Volume and Net Interchange Rate - Adjusted Key Takeaways ◦ For comparative purposes, graphs show revenue, net interchange rate and adjusted operating income margin in all periods as if a specific customer contract was reported on a net basis to
Slide 14: Impacts of Amended Contract on Travel and Corporate Solutions Segment
Impacts of Amended Contract on Travel and Corporate Solutions Segment Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Key Takeaways Reported: Volume $ 12,799,555 $ 10,916,015 $ 11,809,450 $ 17,119,962 $ 20,656,953 ▪ Accounting presentation changed in Q4 2021 from Net interchange rate** 0.62 % 0.63 % 0.55 %
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Operating Income to Total Segment Adjusted Operating Income and Adjusted Operating Income Three months ended September 30, In thousands 2022 2021 Operating income $ 21,288 $ 100,822 Unallocated corporate expenses 23,918 20,977 Acquisition-related intang
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Net (Loss) Income to Adjusted Net Income and Adjusted Net Income per Share Three Months Ended September 30, 2022 2021 In thousands except per diluted share data per diluted share per diluted share Net (loss) income attributable to shareholders $ (44,145
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, changes in fair value of contingent consideration, acquisition-related intangible amortization, other acquisition and divestiture r
Slide 18: 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 generated from operations, excluding the change in restricted cash payable, less net purchases (maturities) of available- for-sale debt s