Slide 1: Q4 2022 Earnings
Q4 2022 Earnings February 9, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements These materials contain forward-looking statements, including statements regarding: expectations of the Company’s future financial performance, assumptions underlying such expectations; future operations; future growth opportunities and expectations; expectations for futur
Slide 3: Quarter Highlights
Quarter Highlights $619M $3.44 +24% +33% Revenue Adjusted Net Income Per Diluted Share Percent change from prior year quarter Percent change from prior year quarter Key Takeaways • Delivered record quarterly revenue • Q4 revenue and adjusted net income above quarterly guidance ranges and above long
Slide 4: Annual Highlights
Annual Highlights $2.4B $13.53 +27% +48% Revenue Adjusted Net Income Per Diluted Share Percent change from prior year Percent change from prior year Key Takeaways • Delivered record full year revenue and adjusted net income • Launched EV focused product in Europe and US as part of mixed fleet strate
Slide 5: Topic Updates
Topic Updates Capital Resiliency in our Growth Drivers Allocation Model Net new customers Continuing to balance HSA deposits buffer contributed 4% revenue organic investment, against interest rate growth in 2022 opportunistic return to movements shareholders and M&A Executed on cross-sell with On tr
Slide 6: Growth Framework | Ahead of our targets in 2022
Growth Framework | Ahead of our targets in 2022 2022 Revenue Results ~6% 1% 2% 27% 4% 21% 14% Existing Net New New Products M&A Revenue excluding Impacts of PPG, FX & Revenue Total Revenue Customer Growth Customers macro factors Recognition Investor Day Revenue 15% Growth Framework (5-YR CAGR) 4-5%
Slide 7: Q4 2022 Financial Results
Q4 2022 Financial Results 7
Slide 8: Company Results
Company Results (In thousands except per share data) 4Q22 4Q21 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $618,610 $497,538 $121,072 24 % Net income (loss) attributable to shareholders $88,691 $(11,760) $100,451 NM Net income (loss) attributable to shareholders per $2.02 $(0.26) $2.28 NM diluted share Adjust
Slide 9: Company Results
Company Results (In thousands except per share data) 2022 2021 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $2,350,511 $1,850,542 $499,969 27 % Net income attributable to shareholders $201,438 $137 $201,301 NM Net income attributable to shareholders per diluted $4.50 $0.00 $4.50 NM share Adjusted net income at
Slide 10: Revenue and Adjusted Operating Income Margin by Segment - Q4
Revenue and Adjusted Operating Income Margin by Segment - Q4 Fleet Travel & Corporate Health & Employee Solutions Solutions Benefit Solutions WEX % % $618,610 .7 4.3 19 $367,208 2 $497,538 $306,829 % 28.9 8% 35. $140,730 $110,672 $109,197 $81,512 50.9% 45.2% 38.8% 47.9% 19.2% 28.1% 37.1% 38.5% Q4 20
Slide 11: Revenue and Adjusted Operating Income Margin by Segment - Full year
Revenue and Adjusted Operating Income Margin by Segment - Full year Fleet Travel & Corporate Health & Employee Solutions Solutions Benefit Solutions WEX % $1,443,664 % $2,350,511 .9 7.0 29 2 $1,111,415 $1,850,542 48% excluding impact of accounting presentation change % 21.8 8% 23. $504,539 $402,308
Slide 12: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet $782 • Adjusted free cash flow, a non-GAAP Adjusted Free $535 measure, is defined as GAAP operating ($ Millions) Cash Flow cash flow adjusted for changes in deposits and investments at WEX Bank (operational in nature), and capex 2022 2021 $922 • Corporate cash1 balance wa
Slide 13: Guidance
Guidance Q1 2023 % Change FY 2023 % Change Outlook YoY Outlook YoY Revenue (in millions) $600 - $610 16% - 18% $2,430 - $2,470 3% - 5% Adjusted Net Income per Diluted 1 $3.15 - $3.25 9% - 13% $13.55 - $14.05 0% - 4% Share Assumed Average Domestic Fuel Price $3.86 (2)% $3.83 (14)% ($/Gallon) Fleet Cr
Slide 14: Guidance Assumptions
Guidance Assumptions • Guidance is based on a slow growth environment in the US • Guidance does not assume any benefits from future M&A or additional share repurchases beyond those already completed • One to two additional interest rate increases included in the first half of the year • Exchange rat
Slide 15: Appendix
Appendix 15
Slide 16: Key Performance Indicators
Key Performance Indicators (In thousands unless otherwise noted) 4Q22 4Q21 $ ∆ Yr/Yr % ∆ Yr/Yr Fleet segment Total Volume ($)* 23,994,570 18,165,852 5,828,718 32 % Payment Processing Transactions 139,156 132,894 6,262 5% Payment Processing $ of Fuel 15,936,630 12,600,745 3,335,885 26 % Net Payment P
Slide 17: 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 Travel and Corporate Solutions Adjusted Revenue and Operating Income Margin Key Takeaways $113,975$110,672 for all periods ($000) Revenue, net basis $100,410 ◦ For comparative purposes, graphs show Adj
Slide 18: 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 Q4 2022 Key Takeaways Reported: Volume $ 12,799,555 $ 10,916,015 $ 11,809,450 $ 17,119,962 $ 20,656,953 $ 17,085,097 ▪ Accounting presentation changed in Q4 2021 from Net interchange rate**
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Operating Income to Total Segment Adjusted Operating Income and Adjusted Operating Income Three months ended December 31, Year Ended December 31, In thousands 2022 2021 2022 2021 Operating income $ 155,149 $ 108,359 $ 469,842 $ 342,000 Unallocated corpo
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 per diluted per diluted per diluted per diluted (In thousands except per share data) share share share share Net income (loss) attributable to shareholders $ 88,691 $ 2.02 $ (11,760) $ (0.26) $ 201,43
Slide 21: 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 22: 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, less net purchases of current investment securities and capital expenditures plus the change in net deposits.