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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.
WEX
WEX
WEX Revenue by Segment
Revenue by Segment
Payment Processing Revenue
CapyFin.comAccount Servicing Revenue
CapyFin.comFinance Fee Revenue
CapyFin.comOther Revenue
CapyFin.com 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