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Mar 31, 2024
Corpay Q1 2024 Earnings Report
Corpay's Q1 2024 financial results were reported, showing revenue growth and strategic acquisition.
Key Takeaways
Corpay reported a 4% increase in revenue to $935.3 million and a 7% increase in net income to $229.8 million for the first quarter of 2024. The company also announced an agreement to acquire Paymerang. The Corporate Payments segment saw a 17% growth.
Revenue increased by 4% to $935.3 million, including a $31 million impact from the divested Russia business in the comparable period.
Net income attributable to Corpay increased by 7% to $229.8 million.
Adjusted net income per diluted share attributable to Corpay increased by 8% to $4.10, up 14% excluding the Russia business.
A definitive agreement to acquire Paymerang was announced, enhancing the company's position in new verticals.
Corpay
Corpay
Corpay Revenue by Segment
Corpay Revenue by Geographic Location
Revenue by Segment
Vehicle Payments Revenue
CapyFin.comCorporate Payments Revenue
CapyFin.comLodging Payments Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
US Revenue
CapyFin.comBrazil Revenue
CapyFin.comUK Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Corpay expects revenue growth acceleration over the coming quarters driven by sales, improving retention and business initiatives. Second quarter revenues are expected to be between $960 million and $980 million, and adjusted net income per diluted share between $4.45 and $4.55. For fiscal year 2024, Corpay, Inc. updated financial guidance is as follows: Total revenues between $3,960 million and $4,040 million; Net income between $1,075 million and $1,115 million; Net income per diluted share between $15.00 and $15.40; Adjusted net income between $1,348 million and $1,388 million; and Adjusted net income per diluted share between $18.80 and $19.20
Positive Outlook
- Revenue growth acceleration is expected over the coming quarters.
- Growth will be driven by sales.
- Growth will be driven by improving retention.
- Growth will be driven by business initiatives.
- Second quarter adjusted net income per diluted share growth, excluding the sale of our Russia business, is expected to be 13% at the mid-point
Challenges Ahead
- Unfavorable foreign exchange rates.
- Higher interest rates.
- Lodging segment experienced continued softness in the quarter.
- Taking actions to manage expenses to neutralize the softness we are experiencing in Lodging
- Outlook for the remainder of the year reflects unfavorable foreign exchange and higher interest rates, which significantly worsened in April
Revenue & Expenses
Visualization of income flow from segment revenue to net income