Slide 1: WEX Second Quarter 2021 Earnings
WEX Second Quarter 2021 Earnings July 29, 2021
Slide 2: WEX Forward-Looking Statements
WEX Forward-Looking Statements This earnings release contains forward-looking statements, including statements regarding: expectations for future revenue and adjusted net income performance; assumptions underlying the Company's future financial performance and future operations; future growth opport
Slide 3: Highlights For The Quarter
Highlights For The Quarter 2Q 2021 Segment Revenue Growth Vs. 2Q 2020 (1) (1) +34% +50% +17% 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 expectations and adjusted earnings per share grew 29% sequentially • More than doubled volume, with $21 billion of purchase volume processed during Q2 vs the prior year • Expanded margins, with strong momentum in o
Slide 5: Quarterly Highlights & Technology
Quarterly Highlights & Technology BUILDING FOR THE FUTURE INNOVATIVE TECHNOLOGY Closed acquisition of benefitexpress Best-in-class technology platform and deep • Expands WEX’s total addressable market in the large health payment expertise and employee benefits marketplace • Allows WEX to seamlessly
Slide 6: Key Differentiators
Key Differentiators Deep Payment Expertise across Seamless Integration into Customers’ Multiple Sectors Operations via APIs Best-In-Class Technology Differentiated Products Platform and Innovation and Business Segments Experienced Management & Values- Cloud-Native Infrastructure Based Culture 6
Slide 7: Weekly Volume Metrics
Weekly Volume Metrics Fleet Payment Processing Gallon Volume & Travel and Corporate Payments Purchase Volume Key Updates • July month-to-date domestic fuel price is $3.18 • Weekly purchase volume changes for March through July 2021 have been benchmarked to 2019 to provide a more meaningful compariso
Slide 8: 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 not shown due to scale. Actual gro
Slide 9: Weekly Volume Metrics
Weekly Volume Metrics SaaS Account Growth Rate and Health Purchase Volume Key Updates • SaaS account growth - driver of 2/3 of revenue - remains strong, and includes approximately 200,000 benefitexpress accounts and 1 million temporary COBRA accounts • Weekly purchase volume changes for March throug
Slide 10: WEX Second Quarter 2021 Financial Results
WEX Second Quarter 2021 Financial Results
Slide 11: Company Results - Q2 2021
Company Results - Q2 2021 Excellent Results Reflect Continued Sequential Improvement and Gains vs Prior Year 2Q21 2Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $ 459,483 $ 347,084 $ 112,399 32 % Net (loss) income attributable to $ (33,856) $ 72,658 $ (106,514) (147) % shareholders Net (loss) income attribu
Slide 12: Revenue Breakdown - Q2 2021
Revenue Breakdown - Q2 2021 Sequential and Year Over Year Improvement in Revenue for Each Segment 2Q21 2Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $459,483 $347,084 $112,399 32 % Segment Revenue: Fleet Solutions $274,388 $204,380 $70,008 34 % Travel and Corporate Solutions $81,762 $54,495 $27,267 50 % He
Slide 13: Fleet Solutions
Fleet Solutions Strong Growth Rates With Revenue and Volume Exceeding Pre-Pandemic Levels 2Q21 2Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 274,388 204,380 70,008 34 % Payment Processing Revenue ($) 126,450 90,147 36,303 40 % Finance Fee Revenue ($) 59,258 42,463 16,795 40 % All Other Revenue
Slide 14: Travel and Corporate Solutions
Travel and Corporate Solutions Corporate Payment Customers Continue Solid Growth with Travel Volumes Rebounding 2Q21 2Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 81,762 54,495 27,267 50 % Payment Processing Revenue ($) 68,282 43,261 25,021 58 % All Other Revenue ($) 13,480 11,234 2,246 20 % Pu
Slide 15: Health and Employee Benefit Solutions
Health and Employee Benefit Solutions Return to Double-Digit Revenue Growth and Continued Strong SaaS Account Growth 2Q21 2Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 103,333 88,209 15,124 17 % Payment Processing Revenue ($) 18,694 14,053 4,641 33 % Account Servicing Revenue ($) 79,482 62,602
Slide 16: Operating Expenses and Segment Adjusted Operating Income Margins
Operating Expenses and Segment Adjusted Operating Income Margins Segment Adjusted Operating Income Margin Three months ended June 30, March 31, 2021 2020 2021 Fleet Solutions 50.2% 37.8% 48.5% Travel and Corporate Solutions 21.0% 20.1% 9.9% Health and Employee Benefit Solutions 28.1% 28.6% 31.7% Sel
Slide 17: Tax Rate
Tax Rate Key Updates • ANI tax rate consistent with the prior year quarter • GAAP tax rate in Q2 2021 driven by excess tax benefits arising from stock- based compensation • GAAP tax rate in Q2 2020 unusually high due to a decrease in pre-tax income, a shift in jurisdictional earnings and sizable non
Slide 18: Additional Balance Sheet Items
Additional Balance Sheet Items Key Updates • Corporate cash1 balance was $108.7 million • Executed on $900 million of new interest rate swaps at a fixed average LIBOR rate of 67 basis points • As of June 30, 2021, available borrowing capacity of $613 million on revolving credit facility • Amended an
Slide 19: Guidance
Guidance Q3 2021 % Change Year FY 2021 % Change over Year Year over Year Revenue (in millions) $465 - $480 22% - 26% $1,805 - $1,835 16% - 18% Adjusted Net Income (in millions) $98 - $107 38% - 51% $377 - $395 41% - 47% Adjusted Net Income per Diluted Share 1 $2.15 - $2.35 35% - 48% $8.30 - $8.70 37
Slide 20: Appendix
Appendix
Slide 21: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Three Months Ended June 30, 2021 2020 per diluted share per diluted share Net (loss) income attributable to shareholders $ (33,856) $ (0.76) $ 72,658 $ 1.66 Unrealized (gain) loss on financial instruments (6,013) (0.13) 3,842 0.09 Net foreign currency remeasurement (gain)
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 Three months ended ended June 30, March 31, 2021 2020 2021 Operating income $ 82,278 $ 28,782 $ 50,541 Unallocated corporate expenses 17,174 13,95
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 divestitu