Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $1.6 billion, an increase of 8%, and cash EPS of $4.51, up 10% [8][24] - Organic revenue growth for the quarter was 9%, with vehicle payments growing 8% and corporate payments growing 19% [9][25] - Retention rate remained steady at 92%, with new bookings up 35% year-over-year [10][24] Business Line Data and Key Metrics Changes - Corporate Payments revenue increased 19% organically, driven by solid spend volumes [25] - Cross border sales grew 51% year-over-year, with revenue increasing 18% organically [25] - Vehicle payments revenue grew 8% organically, with significant growth in Brazil [29] Market Data and Key Metrics Changes - The company expects tariff impacts to be modest, with an estimated unfavorable impact of $10 million to $15 million on cross border revenue [28] - U.S. vehicle payments revenue growth was down 3% organically, but improvements in customer application approvals were noted [30] Company Strategy and Development Direction - The company is focused on expanding its corporate payments business through recent acquisitions, including a partnership with Mastercard and a minority investment in Avid [15][16][18] - The company aims to enhance its position in the corporate payments space and is exploring additional acquisition targets [18][19] - A major push into the institutional client segment for cross border payments is underway [21] Management's Comments on Operating Environment and Future Outlook - Management maintains a full-year 2025 guidance of $4.42 billion in revenue and $21 in cash EPS, reflecting confidence in the business despite macro uncertainties [12][40] - The company is not seeing any meaningful change in customer behavior due to economic uncertainties as of April [40] - Management expressed optimism about the performance of the hedging business, benefiting from market volatility [94] Other Important Information - The company completed the acquisition of Gringo in March, which had an immaterial impact on revenue and adjusted EPS [24] - Operating expenses increased 8% year-over-year, influenced by recent acquisitions [33] - The company has over $2.5 billion in cash and revolver availability, providing ample capacity for acquisitions [35] Q&A Session Summary Question: Confidence in Mastercard partnership for incremental revenue growth - Management expressed confidence that the partnership with Mastercard will create significant opportunities, especially with Tier two and Tier three banks [44][46] Question: Nature of the Avid investment - The investment in Avid is strategic, aimed at enhancing corporate payments and payables, with a focus on profit acceleration [48][49] Question: Update on enterprise sales pipeline - Management confirmed that the enterprise sales initiative is live and progressing well, with potential for significant growth [57][59] Question: Impact of tariffs on vehicle payments - Management noted that while tariffs do not directly impact the company, clients with goods-based businesses may experience indirect effects [65][67] Question: Performance of U.S. vehicle payments - Management reported improved retention rates and anticipated mid-single-digit growth in the second half of the year [72][74] Question: Avid's supplier network access - Management indicated that there is a pre-existing commercial agreement to enhance supplier network monetization, which will be further developed [112][113] Question: Potential noncore divestitures - Management mentioned that divesting three noncore businesses could provide upwards of $2 billion in liquidity [17][115]

Corpay (CPAY) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Speaker0 Good day. I'd like to welcome everyone to the Corpay First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Today's call is being recorded. I would now like to turn the call over to Jim Egglestader, Investor Relations. Please go ahead. Speaker1 Good afternoon, and thank you for joining us today ...