Slide 1: Q3 2023 Earnings
Q3 2023 Earnings October 26, 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 presentation that are not statemen
Slide 3: Quarter Highlights
Quarter Highlights $651.4M $4.05 +6% +15% Revenue Adjusted Net Income Per Diluted Share Percent change from prior year quarter Percent change from prior year quarter Key Takeaways • Delivered record third quarter revenue and adjusted net income per diluted share • Year over year revenue growth despi
Slide 4: Topic Updates
Topic Updates Strong performance Capital Resiliency in our across growth drivers allocation model Average YoY SaaS Signed agreement to HSA deposits buffer account growth of 9% and purchase Payzer, against interest rate growth of 23% in average expanding reach into field movements HSA custodial cash
Slide 5: Q3 2023 Financial Results
Q3 2023 Financial Results 5
Slide 6: Company Results
Company Results (In millions except per share data) Q3 23 Q3 22 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $651.4 $616.1 $35.3 6% US GAAP net income (loss) attributable to $18.4 $(44.1) $62.5 NM shareholders US GAAP net income (loss) attributable to $0.42 $(1.00) $1.42 NM shareholders per diluted share Adjus
Slide 7: Revenue and Adjusted Operating Income Margin by Segment
Revenue and Adjusted Operating Income Margin by Segment Mobility Corporate Payments Benefits WEX $378.1 $651.4 (7)% $616.1 $350.1 6% $166.1 $135.2 $124.1 34% $114.0 19% 46.2% 45.6% 52.9% 61.3% 24.4% 35.4% 39.1% 41.8% Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Revenue Revenue Rev
Slide 8: Adjusted Free Cash Flow & Balance Sheet
Adjusted Free Cash Flow & Balance Sheet Cash Flow, Q3 YTD $392 $407 • Adjusted free cash flow of $392 million year Adjusted Free to date ($ Millions) • Trailing twelve months adjusted free cash flow of $767 million 09/30/23 09/30/22 $958 $922 • Corporate cash1 balance was approximately ($ Millions)
Slide 9: Updated Guidance
Updated Guidance Change vs Prior Q4 2023 % Change FY 2023 % Change FY Guidance at Outlook YoY Outlook YoY Midpoint Revenue (in millions) $650 - $660 5% - 7% $2,535 - $2,545 8% - 8% $35 Adjusted Net Income per Diluted 1 $3.65 - $3.75 6% - 9% $14.64 - $14.74 8% - 9% $0.44 Share Assumed Average Domesti
Slide 10: Guidance Assumptions
Guidance Assumptions • Exchange rates are as of the end of September 2023 • Domestic fuel prices estimated at $3.80 per gallon for the fourth quarter and $3.83 for the full year, based on NYMEX futures price from week of October 16, 2023 • 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 millions unless otherwise noted) Q3 23 Q3 22 $ ∆ Yr/Yr % ∆ Yr/Yr Mobility segment Total Volume ($)* 22,220 25,386 (3,166) (12)% Payment Processing Transactions 144.6 145.3 (0.7) —% Payment Processing $ of Fuel 14,945 17,205 (2,260) (13)% Net Payment Processing Rate (%)
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 $160.0 70.0% $135.2 Segment adjusted operating income Adjusted Operating $121.9 ◦ $114.0 $110.7 margin in Q3 2023 was 61.3%, up from Rev
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 September 30, In millions 2023 2022 Operating income $ 174.9 $ 21.3 Unallocated corporate expenses 29.1 23.9 Acquisition-related intangible amor
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 September 30, 2023 2022 In millions except per diluted share data per diluted share per diluted share Net income (loss) attributable to shareholders $ 18.4 $ 0.42 $ (
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, impairment charges, acquisition-related intangible
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