Slide 1: Q1 2023 Earnings
Q1 2023 Earnings April 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 earnings release that are not stat
Slide 3: Quarter Highlights
Quarter Highlights $612.0M $3.31 +18% +15% 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 • Revenue and adjusted net income above mid point of guidance • Executed $93 m
Slide 4: Topic Updates
Topic Updates Strong performance Capital Resiliency in our across growth drivers allocation model Average SaaS account Opportunistically HSA deposits buffer growth of 14% and growth return capital to against interest rate of 25% in average HSA shareholders movements custodial cash assets in Benefits
Slide 5: Q1 2023 Financial Results
Q1 2023 Financial Results 5
Slide 6: Company Results
Company Results (In millions except per share data) 1Q23 1Q22 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $612.0 $517.5 $94.5 18 % US GAAP Net income attributable to shareholders $68.0 $122.8 $(54.8) (45) % US GAAP Net income attributable to shareholders $1.56 $2.71 $(1.15) (42) % per diluted share Adjusted n
Slide 7: Revenue and Adjusted Operating Income Margin by Segment
Revenue and Adjusted Operating Income Margin by Segment* Mobility Corporate Payments Benefits WEX $612.0 % 7% $342.3 18 $319.1 $517.5 % 36 $164.9 $121.1 36% $104.8 $77.3 50.2% 40.5% 36.7% 46.9% 29.3% 39.1% 39.2% 37.6% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Revenue Revenue Re
Slide 8: Adjusted Free Cash Flow & Balance Sheet
Adjusted Free Cash Flow & Balance Sheet Cash Flow, Q1 YTD • Adjusted free cash flow negative in Q1 2023 Adjusted Free and Q1 2022 due to seasonality and timing ($ Millions) • Trailing twelve months adjusted free cash $(61) flow ~$798 million $(78) 03/31/23 03/31/22 $922 $922 • Corporate cash1 balanc
Slide 9: Updated Guidance
Updated Guidance Change vs Prior Q2 2023 % Change FY 2023 % Change FY Guidance at Outlook YoY Outlook YoY Midpoint Revenue (in millions) $613 - $623 2% - 4% $2,450 - $2,490 4% - 6% $20 Adjusted Net Income per Diluted 1 $3.45 - $3.55 -7% - -4% $13.85 - $14.25 2% - 5% $0.25 Share Assumed Average Domes
Slide 10: Guidance Assumptions
Guidance Assumptions • Exchange rates are as of the end of March 2023 • Domestic fuel prices estimated at $3.85 per gallon for the second quarter and $3.83 for the full year, based on NYMEX futures price from week of April 17, 2023 • Adjusted net income tax rate is expected to be between 25.0% and 2
Slide 11: Appendix
Appendix 11
Slide 12: Key Performance Indicators
Key Performance Indicators (In millions unless otherwise noted) 1Q23 1Q22 $ ∆ Yr/Yr % ∆ Yr/Yr Mobility segment Total Volume ($)* 21,217 21,704 (487) (2)% Payment Processing Transactions 137.5 132.7 4.8 4% Payment Processing $ of Fuel 14,144 14,390 (246) (2)% Net Payment Processing Rate (%) 1.21 % 1.
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 $120,000 $113,975 $110,672 60.0% $104,800 $100,410 ◦ Segment adjusted operating income Adjusted Operating margin in Q1 2023 was 46.9% up
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 March 31, In millions 2023 2022 Operating income $ 154.3 $ 122.3 Unallocated corporate expenses 22.4 21.0 Acquisition-related intangible amortiz
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 March 31, 2023 2022 In millions except per diluted share data per diluted share per diluted share Net income attributable to shareholders $ 68.0 $ 1.56 $ 122.8 $ 2.71
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