WEX(US:WEX)2024-04-25 10:36Revenue Performance - Q1 2024 revenue increased 7% year-over-year to a record $652.7 million, driven by 16% growth in the Benefits segment and 17% in the Corporate Payments segment[2]. - Total volume across all segments reached $56.8 billion, an increase of 8.6% from Q1 2023[7]. - Corporate Payments segment revenue increased by 17% to $122.5 million in Q1 2024, up from $104.8 million in Q1 2023[43]. - Benefits segment revenue rose by 16% to $191.2 million in Q1 2024, compared to $164.9 million in Q1 2023[43]. - Total reported revenue for Q1 2024 was $652.7 million, up from $612.0 million in Q1 2023, reflecting a year-over-year increase of approximately 6%[35]. Income and Earnings - Q1 GAAP net income was $65.8 million, or $1.55 per diluted share, a decrease from $68.0 million, or $1.56 per diluted share in Q1 2023[6]. - Adjusted net income for Q1 2024 was $146.7 million, or $3.46 per diluted share, up 5% from $145.8 million, or $3.31 per diluted share in the same period last year[6]. - Adjusted net income for Q1 2024 was $146.7 million, or $3.46 per diluted share, compared to $145.8 million, or $3.31 per diluted share in Q1 2023, marking a 1.2% increase in adjusted net income[26]. - Operating income for Q1 2024 was $164.5 million, maintaining a margin of 25.2%, consistent with the margin from Q1 2023[27]. - Total segment adjusted operating income reached $274.9 million, with a margin of 42.1%, compared to $252.5 million and a margin of 41.3% in the prior year[27]. Cash Flow and Assets - Cash and cash equivalents decreased to $779.6 million from $975.8 million, a decline of 20.1%[22]. - Net cash used in operating activities was $(153.3) million for the three months ended March 31, 2024, compared to $27.1 million in the same period of 2023[24]. - The company reported a net change in cash, cash equivalents, and restricted cash of $(148.3) million for the quarter, down from an increase of $20.6 million in the same quarter last year[24]. - Adjusted free cash flow for Q1 2024 was $(204.5) million, compared to $(61.4) million in Q1 2023, indicating a significant decline[34]. - Total assets increased to $14,421.8 million as of March 31, 2024, up from $13,882.1 million at the end of 2023, representing a growth of 3.9%[22]. Future Guidance - For Q2 2024, the company expects revenue in the range of $675 million to $685 million and adjusted net income between $3.75 and $3.85 per diluted share[15]. - Full-year 2024 revenue guidance raised to a range of $2.73 billion to $2.77 billion, up from the previous range of $2.70 billion to $2.74 billion[15]. Segment Performance - Corporate Payments' purchase volume grew 29% to $23.9 billion from $18.6 billion in Q1 2023[7]. - The Mobility segment reported an adjusted operating income of $131.0 million, down from $138.8 million year-over-year, with a margin decrease from 40.5% to 38.6%[44]. - The Corporate Payments segment saw an increase in adjusted operating income to $64.6 million, up from $49.2 million, with a margin increase from 46.9% to 52.7%[44]. - The Benefits segment's adjusted operating income rose to $79.4 million from $64.5 million, with an improved margin of 41.5% compared to 39.1%[44]. Market and Operational Insights - The average US fuel price per gallon decreased to $3.56 in Q1 2024 from $3.76 in Q4 2023[39]. - The number of payment processing transactions in Q1 2024 was 136.9 million, slightly down from 138.1 million in Q4 2023[39]. - The net payment processing rate increased to 1.31% in Q1 2024 from 1.26% in Q4 2023[39]. - The company is focused on leveraging technology and AI to improve efficiency and enhance offerings, alongside integrating recent acquisitions[4]. - The company purchased treasury shares amounting to $73.6 million during the quarter, compared to $100.9 million in the same period of 2023[24].