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Sep 30, 2023

WEX Q3 2023 Earnings Report

WEX's Q3 2023 financial performance was reported, marked by record revenue and adjusted net income per diluted share, despite fuel price headwinds.

Key Takeaways

WEX Inc. reported a 6% year-over-year increase in revenue, reaching a record $651 million in Q3 2023. The growth was driven by a 34% increase in the Benefits segment and a 19% increase in the Corporate Payments segment. GAAP net income was $0.42 per diluted share, while adjusted net income was $4.05 per diluted share. The company also raised its full-year 2023 financial guidance.

Total revenue increased by 6% year-over-year to $651.4 million.

GAAP net income reached $0.42 per diluted share, and adjusted net income was $4.05 per diluted share.

Benefits segment grew by 34%, and Corporate Payments segment grew by 19%.

The company entered into an agreement to acquire Payzer to expand its service offerings.

Total Revenue
$651M
Previous year: $616M
+5.7%
EPS
$4.05
Previous year: $3.51
+15.4%
Avg. SaaS Accounts (Benefits)
19.9M
Previous year: 18.2M
+9.3%
Purchase Volume (Corp Payments)
$27.9B
Previous year: $20.7B
+34.8%
Payment Proc. Transactions
144.6M
Previous year: 145.3M
-0.5%
Gross Profit
$416M
Previous year: $364M
+14.4%
Cash and Equivalents
$4.74B
Previous year: $759M
+524.5%
Free Cash Flow
$10.1M
Previous year: $565M
-98.2%
Total Assets
$13.9B
Previous year: $11.9B
+16.7%

WEX

WEX

WEX Revenue by Segment

Forward Guidance

For the fourth quarter of 2023, WEX expects revenue in the range of $650 million to $660 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 $2.53 billion to $2.54 billion and adjusted net income attributable to shareholders is now expected to be in the range of $14.64 to $14.74 per diluted share.

Revenue & Expenses

Visualization of income flow from segment revenue to net income