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Jun 30, 2023

Corpay Q2 2023 Earnings Report

FLEETCOR's Q2 2023 financial results were reported, showing revenue growth and progress in strategic review.

Key Takeaways

FLEETCOR Technologies, Inc. reported solid second quarter results with 10% revenue growth, 20% sales growth, and 11% EBITDA growth. The company is raising its 2023 guidance to reflect the second quarter beat and is progressing with its strategic review.

Revenues increased 10% to $948.2 million compared to Q2 2022.

Net income decreased 9% to $239.7 million due to higher interest expense.

EBITDA increased 11% to $497.1 million compared to Q2 2022.

Adjusted net income per diluted share increased 1% to $4.19.

Total Revenue
$948M
Previous year: $861M
+10.1%
EPS
$4.19
Previous year: $4.17
+0.5%
Corporate Payments Spend
$36B
Previous year: $28.8B
+25.0%
Corp. Payment Rev / Spend $
0.69%
Previous year: 0.66%
+4.5%
Lodging Room Nights
9.3M
Previous year: 9.5M
-2.1%
Gross Profit
$743M
Previous year: $625M
+18.8%
Cash and Equivalents
$1.25B
Previous year: $1.42B
-11.9%
Free Cash Flow
-$93.2M
Previous year: $119M
-178.4%
Total Assets
$15.4B
Previous year: $14.7B
+5.0%

Corpay

Corpay

Corpay Revenue by Segment

Corpay Revenue by Geographic Location

Forward Guidance

FLEETCOR Technologies, Inc. provided financial guidance for fiscal year 2023 and the third quarter of 2023.

Positive Outlook

  • Total revenues between $3,836 million and $3,860 million for fiscal year 2023.
  • Net income between $1,006 million and $1,028 million for fiscal year 2023.
  • Net income per diluted share between $13.42 and $13.68 for fiscal year 2023.
  • Adjusted net income between $1,281 million and $1,303 million for fiscal year 2023.
  • Adjusted net income per diluted share between $17.09 and $17.35 for fiscal year 2023.

Challenges Ahead

  • Weighted average U.S. fuel prices of $3.66 per gallon for the balance of the year.
  • Market fuel spreads to decline compared to the second half of 2022 average.
  • Foreign exchange rates equal to the monthly average for July 2023 for the balance of the year.
  • Interest expense between $330 million and $340 million for the full year.
  • A tax rate of 26% to 27% for the full year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income