The following is a summary of the WEX Inc. (WEX) Q1 2024 Earnings Call Transcript:
Financial Performance:
WEX reported Q1 revenue of $653 million, an increase of 7% year-over-year, and processed a total volume of $57 billion, a 9% rise from last year.
Adjusted net income per diluted share for Q1 was $3.46, up 5% compared to the same quarter last year.
An additional $400 million in share repurchases were authorized by WEX's Board.
Cash flow impact of $190 million was suffered due to the quarter end falling on a weekend. The company anticipates its reversal in Q2.
The company spent $74 million on share repurchases of 353,000 shares.
Revenue and earnings guidance for 2024 has been raised by WEX based on Q1's performance. Predictions for Q2 include revenue between $675 million and $685 million and Adjusted Net Income earning per share between $3.75 and $3.85.
Full year forecasts estimate a revenue between $2.73B - $2.77B and ANI earnings per share between $16.10 and $16.60.
Business Progress:
WEX is assisting mobility customers in their transition to EV and hybrid solutions, while also having launched their at-home reimbursement feature for integrated mix fleet solutions.
The acquisition of cloud-native field service management software, Payzer, has been completed, and a new long-term partnership agreement with Booking.com has been signed.
Milestone of serving 8 million HSA accounts has been achieved, as the integration of the Ascensus Health and Benefits line continues.
They've made advancements with AI technology in their Benefit business, delivering personalized messaging and predictive analytics to HSA account holders.
The company expects growth to be majorly driven by Mobility revenue improvement and various pricing changes.
WEX is optimistic about its expanding Electric Vehicle (EV) portfolio and sees new subscription revenue.
High single-digit growth figures are expected in the Corporate Payments sector, and the new contract with Booking.com is predicted to generate more revenue for WEX.
The company will accelerate direct sales efforts in corporate payments to drive growth.
More details: WEX Inc IR
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