Slide 1: Q3 2024 Earnings
Q3 2024 Earnings October 24, 2024
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, expectations, and guidance and assumptions with respect to future financial performance of the Company. Any statements in this presentation that ar
Slide 3: Quarter Highlights
Quarter Highlights $665.5M $4.35 +2% +7% 1 Revenue Adjusted Net Income Per Diluted Share Percent change from prior year quarter Percent change from prior year quarter Key Takeaways • Delivered record-high third quarter revenue • Adjusted net income per diluted share below the guidance range largely
Slide 4: Strategic Themes
Strategic Themes Growth Drivers Capital Allocation Resiliency in Our Model Mobility segment revenue Spent approximately $370 HSA deposits buffer against growth was 2.0% in Q3 vs million in repurchasing WEX interest rate movements prior year, including a 5.9% shares during Q3 including headwind from
Slide 5: Q3 2024 Financial Results
Q3 2024 Financial Results wex
Slide 6: Company Results
Company Results (In millions except per share data) Q3 24 Q3 23 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $665.5 $651.4 $14.1 2% GAAP net income $102.9 $18.4 $84.5 NM GAAP net income per diluted share $2.52 $0.42 $2.10 NM 1 Adjusted net income $177.5 $176.8 $0.7 — % 1 Adjusted net income per diluted share $
Slide 7: Revenue and Adjusted Operating Income Margin by Segment
Revenue and Adjusted Operating Income Margin by Segment 1 Mobility Corporate Payments Benefits WEX $651.4 2.2% $665.5 $350.1 2.0% $357.2 % $181.5 $166.1 9.3 $135.2 (6.2)% $126.9 45.6% 46.8% 61.3% 56.4% 35.4% 43.2% 41.8% 44.0% Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Revenue Revenue Revenue Re
Slide 8: Cash Flow & Balance Sheet
Cash Flow & Balance Sheet Cash Flow, Q3 YTD $393 1 $335 Adjusted free cash flow of $393 million Adjusted Free ($ Millions) ◦ year to date; Q3 standalone was $190 million ◦ Trailing twelve months' adjusted free cash 09/30/24 09/30/23 flow of $568 million $976 2 ◦ Corporate cash balance was ($ Million
Slide 9: Capital Allocation
Capital Allocation Capital Deployed Key Takeaways ◦ WEX allocates capital through a rigorous 2023 2024 YTD analytical process focused on long-term IRR ◦ Since 2022, have returned $1.1 billion to 16% 16% shareholders via share repurchases 1% including $544 million during the first 33% nine months of
Slide 10: Updated Guidance
Updated Guidance Change vs Prior Q4 2024 % Change FY 2024 % Change FY Guidance at Outlook YoY Outlook YoY Midpoint Revenue (in millions) $630 - $640 -5% - -4% $2,622 - $2,632 3% - 3% -$73 Adjusted Net Income per 1 $3.51 - $3.61 -8% - -5% $15.21 - $15.31 3% - 3% $(0.92) Diluted Share Assumed Average
Slide 11: Guidance Assumptions
Guidance Assumptions • Interest rate decreases included in line with the market fed funds projections. Company-wide net exposure to changes in interest rates is expected to remain neutral although there can be segment impacts • Exchange rates are as of the end of September 2024 • Domestic fuel price
Slide 12: Appendix
Appendix wex
Slide 13: 10-Year Revenue Growth
10-Year Revenue Growth $2,548 $2,351 % A GR 14 e nu eC $1,851 R ev $1,724 $1,560 $1,492 $1,249 $1,012 $818 $854 $717 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Mobility Corporate Payments Benefits Reported revenue is in millions of dollars (USD). 3Q24 13
Slide 14: Key Performance Indicators
Key Performance Indicators (In millions unless otherwise noted) Q3 24 Q3 23 $ ∆ Yr/Yr % ∆ Yr/Yr Mobility segment Total Volume ($)* 20,137 22,220 (2,083) (9)% Payment Processing Transactions 146.5 144.6 1.9 1% Payment Processing $ of Fuel 13,227 14,945 (1,718) (11)% Net Payment Processing Rate (%) 1.
Slide 15: Corporate Payments Segment Revenue, Margin, Volume, and Net Interchange Rate
Corporate Payments Segment Revenue, Margin, Volume, and Net Interchange Rate Corporate Payments Revenue and Adjusted Operating Income Margin $160.0 70.0% Key Takeaways $135.2 $135.0 $134.1 Adjusted Operating $126.9 for all periods ($M) Revenue, net basis $122.5 ◦ Statistics reflect migration of larg
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Operating Income to Non-GAAP Total Segment Adjusted Operating Income and Adjusted Operating Income Three months ended September 30, 1 1 In millions 2024 (margin) 2023 (margin) Operating income $ 196.4 29.5 % $ 174.9 26.8 % Unallocated corporate expenses
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income and Adjusted Net Income per Share Three Months Ended September 30, 2024 2023 In millions except per diluted share data per diluted share per diluted share Net income $ 102.9 $ 2.52 $ 18.4 $ 0.42 Unrealized (gai
Slide 18: 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, acquisition-related intangible amortization, other acquisition and divestiture related items, stock- based compensation, other cost
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow The Company’s non-GAAP adjusted free cash flow has historically been calculated as cash flows from operating activities adjusted for net purchases of current investment securities, capital expendit