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Mar 31, 2022

WEX Q1 2022 Earnings Report

WEX's Q1 2022 earnings were released, demonstrating record revenue and increased profitability.

Key Takeaways

WEX Inc. reported a strong first quarter in 2022, with total revenue increasing by 26% year-over-year to $517.5 million. GAAP net income per share increased to $2.71, and adjusted net income per share increased by 61% to $2.88. The company also raised its full-year 2022 financial guidance.

Total revenue for Q1 2022 increased by 26% to $517.5 million.

GAAP net income per share increased to $2.71 per diluted share.

Adjusted net income per share increased 61% year-over-year to $2.88 per diluted share.

Total volume across the company increased by 50% from Q1 2021.

Total Revenue
$518M
Previous year: $411M
+26.0%
EPS
$2.88
Previous year: $1.79
+60.9%
Avg. SaaS Accounts (Benefits)
17.85M
Previous year: 15.51M
+15.0%
Purchase Volume (Corp Payments)
$11.8B
Payment Proc. Transactions
132.66M
Gross Profit
$315M
Previous year: $253M
+24.7%
Cash and Equivalents
$578M
Previous year: $561M
+2.9%
Free Cash Flow
-$193M
Previous year: -$236M
-18.1%
Total Assets
$11.3B
Previous year: $8.32B
+36.3%

WEX

WEX

WEX Revenue by Segment

Forward Guidance

For Q2 2022, WEX anticipates revenue between $555 million and $565 million, with adjusted net income ranging from $154 million to $159 million, or $3.35 to $3.45 per diluted share. The full-year 2022 revenue is projected to be between $2.155 billion and $2.195 billion. Adjusted net income for the year is expected to be in the range of $569 million to $588 million, or $12.40 to $12.80 per diluted share.

Positive Outlook

  • Revenue is expected to be in the range of $555 million to $565 million for Q2 2022.
  • Adjusted net income is projected to be between $154 million and $159 million for Q2 2022.
  • Full-year 2022 revenue is now expected to be in the range of $2.155 billion to $2.195 billion.
  • Adjusted net income for full-year 2022 is expected to be between $569 million and $588 million.
  • Guidance assumes approximately 47.5 million fully diluted shares outstanding for the full year.

Challenges Ahead

  • Guidance is based on assumed average U.S. retail fuel prices of $4.46 and $4.13 per gallon for Q2 and full year 2022, respectively, which could fluctuate.
  • Adjusted net income guidance excludes certain items, making it difficult to reconcile with GAAP measures.
  • Uncertainty in predicting amounts to be adjusted, including foreign currency exchange rates and acquisition-related items.
  • Potential impact of the coronavirus (COVID-19) pandemic on the Company’s business and financial condition.
  • Risk of fluctuations in fuel prices and fuel spreads in the Company’s international markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income