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]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $1.6 billion, an increase of 8% year-over-year, and cash EPS of $4.51, up 10% [6][24] - Organic revenue growth for the quarter was 9%, with cash EPS expected to increase by 18% on a constant macro basis [6][24] - Retention rate remained steady at 92%, with new bookings up 35% compared to Q1 last year [7][24] Business Line Data and Key Metrics Changes - Corporate Payments revenue grew 19% organically, driven by solid spend volumes [25] - Vehicle Payments revenue increased 8% organically, with significant growth in Brazil [28] - Cross border sales grew 51% year-over-year, with revenue up 18% organically [25][26] 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 and retention were noted [30][31] Company Strategy and Development Direction - The company is focused on expanding its corporate payments business through strategic acquisitions, including a partnership with Mastercard and an investment in Avid [14][15][17] - Plans to divest three non-core businesses to create liquidity for further investments in corporate payments [16][114] - The company aims to enhance its product offerings and market presence, particularly in the U.S. and U.K. [19][90] Management's Comments on Operating Environment and Future Outlook - Management maintains a cautious outlook due to macroeconomic uncertainties but sees no immediate need to revise forecasts [9][39] - The company expects to maintain its full-year 2025 guidance, projecting organic revenue growth of 11% at the midpoint [11][39] - Management expressed confidence in the performance of the corporate payments segment and the potential for growth in the vehicle payments business [72][102] 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 by 8% year-over-year, influenced by recent acquisitions and higher transaction volumes [33][34] - The company ended the quarter with a leverage ratio of 2.69 times and over $2.5 billion in cash and revolver availability [35] Q&A Session Summary Question: Confidence in Mastercard partnership for incremental revenue growth - Management expressed optimism about the partnership with Mastercard, highlighting the potential for significant revenue growth through their extensive client base [42][44] Question: Nature of the Avid investment - The investment in Avid is strategic, aimed at enhancing corporate payments capabilities, with a focus on profit acceleration [45][46] Question: Update on enterprise sales pipeline - Management confirmed that the enterprise sales initiative is live and progressing well, with potential for significant growth [54][55] Question: Impact of tariffs on vehicle payments - Management clarified that while tariffs do not directly impact their business, clients with goods-based operations may experience indirect effects [61][62] Question: Performance of the hedging business - The cross border business showed strong performance in Q1, benefiting from market volatility, with expectations for continued growth [94][95] Question: Organic revenue guidance for the year - Management remains confident in achieving the full-year organic revenue growth target of 11%, with expectations for a strong Q2 [98][102]