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Mar 31, 2024

WEX Q1 2024 Earnings Report

WEX's Q1 2024 financial results were reported, featuring record first-quarter revenue driven by growth in the Benefits and Corporate Payments segments.

Key Takeaways

WEX Inc. reported a 7% year-over-year increase in revenue to $652.7 million for Q1 2024, driven by strong growth in the Benefits and Corporate Payments segments. GAAP net income was $65.8 million, or $1.55 per diluted share, while adjusted net income was $146.7 million, or $3.46 per diluted share. The company raised its full-year 2024 financial guidance.

Total revenue increased by 7% year-over-year to $652.7 million, a record for the first quarter.

Benefits segment revenue grew by 16%, and Corporate Payments segment revenue grew by 17%.

GAAP net income was $1.55 per diluted share, and adjusted net income was $3.46 per diluted share.

The company raised its full-year 2024 revenue and adjusted net income guidance.

Total Revenue
$653M
Previous year: $612M
+6.7%
EPS
$3.46
Previous year: $3.31
+4.5%
Avg. SaaS Accounts (Benefits)
20.3M
Previous year: 20.3M
+0.0%
Purchase Volume (Corp Payments)
$23.9B
Previous year: $18.6B
+28.3%
Payment Proc. Transactions
136.9M
Previous year: 137.5M
-0.4%
Gross Profit
$361M
Previous year: $365M
-1.1%
Cash and Equivalents
$780M
Previous year: $922M
-15.4%
Free Cash Flow
-$187M
Previous year: -$61.4M
+205.0%
Total Assets
$14.4B
Previous year: $12.7B
+13.3%

WEX

WEX

WEX Revenue by Segment

Forward Guidance

For Q2 2024, WEX expects revenue between $675 million and $685 million, and adjusted net income per diluted share between $3.75 and $3.85. For the full year 2024, revenue is projected to be between $2.73 billion and $2.77 billion, with adjusted net income per diluted share between $16.10 and $16.60.

Positive Outlook

  • Revenue is expected to be in the range of $675 million to $685 million for the second quarter of 2024.
  • Adjusted net income is projected to be in the range of $3.75 to $3.85 per diluted share for Q2 2024.
  • Full-year 2024 revenue is now expected to be in the range of $2.73 billion to $2.77 billion.
  • Adjusted net income for the full year 2024 is projected to be in the range of $16.10 to $16.60 per diluted share.
  • Guidance includes the anticipated impact of the Company’s new long-term agreement with Booking.com.

Challenges Ahead

  • Guidance is based on assumed average U.S. retail fuel prices of $3.69 and $3.64 per gallon for the second quarter and full year 2024, respectively.
  • Guidance assumes approximately 42.5 million fully diluted shares outstanding for the full year.
  • The Company's adjusted net income guidance excludes certain items, including unrealized gains and losses on financial instruments.
  • The Company's adjusted net income guidance excludes net foreign currency gains and losses.
  • The Company's adjusted net income guidance excludes acquisition and divestiture related items.

Revenue & Expenses

Visualization of income flow from segment revenue to net income