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Jun 30, 2020

WEX Q2 2020 Earnings Report

WEX Inc.'s Q2 2020 results reflected COVID-19 impact but underscored business resilience with recovery in spend volume trends and U.S. Health business growth.

Key Takeaways

WEX Inc. reported a 21% decrease in total revenue to $347.1 million compared to Q2 2019, impacted by COVID-19. Net income attributable to shareholders increased to $72.7 million, or $1.66 per diluted share, while adjusted net income was $53.0 million, or $1.21 per diluted share.

Experienced recovery in spend volume trends across all segments during the quarter.

U.S. Health business remained strong with year-over-year top-line growth.

Secured a $400 million investment from Warburg Pincus and amended credit agreement.

Implemented cost containment measures expected to save $60-$65 million for the year.

Total Revenue
$347M
Previous year: $442M
-21.4%
EPS
$1.21
Previous year: $2.28
-46.9%
Avg. SaaS Accounts (Benefits)
14.49M
Previous year: 12.56M
+15.3%
Purchase Volume (Corp Payments)
$3.17B
Payment Proc. Transactions
103.09M
Gross Profit
$185M
Previous year: $281M
-34.1%
Cash and Equivalents
$1.27B
Previous year: $768M
+65.5%
Free Cash Flow
$365M
Previous year: -$10.6M
-3551.5%
Total Assets
$7.91B
Previous year: $8.57B
-7.8%

WEX

WEX

WEX Revenue by Segment

Forward Guidance

WEX withdrew previously-issued full fiscal year 2020 financial guidance due to the continued uncertainty related to COVID-19 and is not providing any further financial guidance at this time.

Revenue & Expenses

Visualization of income flow from segment revenue to net income