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Jun 30, 2023

WEX Q2 2023 Earnings Report

WEX's Q2 2023 earnings were released, revealing record revenue and growth in key segments.

Key Takeaways

WEX reported a strong Q2 2023 with record revenue of $621.3 million, a 4% increase year-over-year. Growth was driven by the Benefits and Corporate Payments segments. GAAP net income was $95.3 million, or $2.20 per diluted share, while adjusted net income was $159.3 million, or $3.63 per diluted share. The company raised its full-year guidance for both revenue and adjusted earnings per share.

Total revenue increased by 4% year-over-year, reaching a record $621 million.

Benefits segment grew by 34% and Corporate Payments segment grew by 21%.

GAAP net income increased to $2.20 per diluted share, while adjusted net income was $3.63 per diluted share.

The company raised its full-year 2023 financial guidance for revenue and adjusted earnings per share.

Total Revenue
$621M
Previous year: $598M
+3.9%
EPS
$3.63
Previous year: $3.71
-2.2%
Avg. SaaS Accounts (Benefits)
19.5M
Previous year: 17.57M
+11.0%
Purchase Volume (Corp Payments)
$22.9B
Previous year: $17.1B
+33.8%
Payment Proc. Transactions
142.4M
Previous year: 143.16M
-0.5%
Gross Profit
$386M
Previous year: $374M
+3.3%
Cash and Equivalents
$901M
Previous year: $439M
+105.4%
Free Cash Flow
$37.7M
Previous year: $9.13M
+312.7%
Total Assets
$13.3B
Previous year: $12.3B
+8.3%

WEX

WEX

WEX Revenue by Segment

Forward Guidance

The Company provides revenue guidance on a GAAP basis and earnings guidance on a non-GAAP basis. For the third quarter of 2023, the Company expects revenue in the range of $629 million to $639 million and adjusted net income attributable to shareholders in the range of $3.65 to $3.75 per diluted share. For the full year 2023, the Company now expects revenue in the range of $2.50 billion to $2.52 billion. Adjusted net income attributable to shareholders is now expected to be in the range of $14.15 to $14.35 per diluted share.

Revenue & Expenses

Visualization of income flow from segment revenue to net income