Slide 1: WEX Third Quarter 2021 Earnings
WEX Third Quarter 2021 Earnings October 28, 2021
Slide 2: WEX Forward-Looking Statements
WEX Forward-Looking Statements These earnings materials contain forward-looking statements, including statements regarding: assumptions underlying the Company's future financial performance, future operations; future growth opportunities and expectations; expectations for future revenue performance,
Slide 3: Highlights For The Quarter
Highlights For The Quarter 3Q 2021 Segment Revenue Growth Vs. 3Q 2020 (1) (1) (1) +25% +42% +18% Fleet Travel & Corporate Health & Employee Benefits (1) Health and Employee Benefit Solutions segment purchase volume represents US Healthcare purchase volume only 3
Slide 4: Executing on our Commitments
Executing on our Commitments ACHIEVEMENTS THIS QUARTER • Exceeded high end of revenue and adjusted earnings expectations with growth rates of 26% and 54% • Purchase volume processed at $26 billion across the organization during Q3, an increase of 93% • Significantly expanded margins in Fleet and Tra
Slide 5: Electric Vehicle (EV) Vision
Electric Vehicle (EV) Vision As customers transition to the “new” mixed-fleet, WEX can help manage end-to-end reporting and payment needs with a full-suite of integrated solutions ◦ WEX EV Offering: ▪ On-route, depot and at-home charging solutions ▪ Streamlined program enrollment On-Route: At-Home:
Slide 6: Weekly Volume Metrics
Weekly Volume Metrics Fleet Payment Processing Gallon Volume & Travel and Corporate Payments Purchase Volume Key Updates • October month-to-date average domestic fuel price is $3.41 • Weekly purchase volume changes for March through October 2021 have been benchmarked to 2019 to provide a more meanin
Slide 7: Weekly Volume Metrics
Weekly Volume Metrics Fleet Payment Processing Gallon Volume & Travel and Corporate Payments Purchase Volume Key Updates: • Includes purchase volume for eNett and Optal as if they were owned for the entire period shown • Travel customer purchase volume April - June 2021 not shown due to scale. Actua
Slide 8: Weekly Volume Metrics
Weekly Volume Metrics SaaS Account Growth Rate and Health Purchase Volume Key Updates • SaaS account growth - driver of ~2/3 of health segment revenue - remains strong • Weekly purchase volume changes for March through October 2021 have been benchmarked to both 2019 and 2020 to provide a more meanin
Slide 9: WEX Third Quarter 2021 Financial Results
WEX Third Quarter 2021 Financial Results
Slide 10: Company Results - Q3 2021
Company Results - Q3 2021 Excellent Results Reflect Continued Sequential Improvement and Gains vs Prior Year 3Q21 3Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $ 482,764 $ 382,116 $ 100,648 26 % Net income (loss) attributable to $ 48,318 $ (65,840) $ 114,158 173% shareholders Net income (loss) attributable
Slide 11: Revenue Breakdown - Q3 2021
Revenue Breakdown - Q3 2021 Sequential and Year Over Year Growth in Revenue for Each Segment 3Q21 3Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $482,764 $382,116 $100,648 26 % Segment Revenue: Fleet Solutions $286,361 $228,704 $57,657 25 % Travel and Corporate Solutions $91,002 $64,296 $26,706 42 % Health
Slide 12: Fleet Solutions
Fleet Solutions Strong Growth Rates With Revenue and Volume Exceeding Pre-Pandemic Levels 3Q21 3Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 286,361 228,704 57,657 25 % Payment Processing Revenue ($) 130,006 102,418 27,588 27 % Finance Fee Revenue ($) 67,529 46,129 21,400 46 % All Other Revenue
Slide 13: Travel and Corporate Solutions
Travel and Corporate Solutions Strong Increase in Travel Customer Volumes and Revenue with Solid Growth from Corporate Payment Customers 3Q21 3Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 91,002 64,296 26,706 42 % Payment Processing Revenue ($) 79,815 53,239 26,576 50 % All Other Revenue ($) 11
Slide 14: Health and Employee Benefit Solutions
Health and Employee Benefit Solutions Double-Digit Revenue Growth and Continued Strong SaaS Account Growth 3Q21 3Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 105,401 89,116 16,285 18 % Payment Processing Revenue ($) 16,305 15,420 885 6% Account Servicing Revenue ($) 83,145 63,103 20,042 32 % Al
Slide 15: Operating Expenses and Segment Adjusted Operating Income Margins
Operating Expenses and Segment Adjusted Operating Income Margins Segment Adjusted Operating Income Margin Three months ended September 30, June 30, 2021 2020 2021 Fleet Solutions 50.6% 44.7% 50.2% Travel and Corporate Solutions 34.1% 22.1% 21.0% Health and Employee Benefit Solutions 22.6% 26.7% 28.1
Slide 16: Tax Rate
Tax Rate Key Updates • ANI tax rate higher than prior year quarter due to change in jurisdictional mix • GAAP tax rate in Q3 2020 unusually low due to a decrease in pre-tax income, a shift in jurisdictional earnings and sizable non deductible expenses primarily related to the sale of the Company’s B
Slide 17: Additional Balance Sheet Items
Additional Balance Sheet Items Key Updates • Corporate cash1 balance was $145 million • As of September 30, 2021, available borrowing capacity of $665 million on revolving credit facility • Amended and restated credit facility dated April 1, 2021, increased borrowing capacity by $60 million and incr
Slide 18: Guidance
Guidance Q4 2021 % Change Year FY 2021 % Change Year over Year over Year Revenue (in millions) $468 - $483 17% - 21% $1,821 - $1,836 17% - 18% Adjusted Net Income (in millions) 1 $102 - $111 57% - 71% $400 - $409 49% - 52% Adjusted Net Income per Diluted Share 1 $2.25 - $2.45 55% - 69% $8.81 - $9.01
Slide 19: Appendix
Appendix
Slide 20: Pro Forma Impacts of Amended Contract on Travel and Corporate Solutions Segment
Pro Forma Impacts of Amended Contract on Travel and Corporate Solutions Segment • Accounting presentation will Travel and Corporate Solutions change from gross revenue Segment Actual Pro Forma recognition to net, with a YTD Q3 2021 YTD Q3 2021 corresponding change in sales Purchase volume $ 27,643,2
Slide 21: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Three Months Ended September 30, 2021 2020 In thousands except per diluted share data per diluted share per diluted share Net income (loss) attributable to shareholders $ 48,318 $ 1.07 $ (65,840) $ (1.49) Unrealized gain on financial instruments (6,424) (0.14) (3,774) (0.
Slide 22: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Reconciliation of GAAP Operating Income to Total Segment Adjusted Operating Income and Adjusted Operating Income Three months ended September 30, Three months ended In thousands 2021 2020 June 30, 2021 Operating income $ 100,822 $ 1,845 $ 82,278 Unallocated corporate expe
Slide 23: WEX Non-GAAP Reconciliation
WEX 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 divestit