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Dec 31, 2019
WEX Q4 2019 Earnings Report
WEX's Q4 2019 earnings increased with double-digit top-line growth and strong operating leverage.
Key Takeaways
WEX Inc. reported a 15% increase in total revenue for Q4 2019, reaching $440.0 million. Net income attributable to shareholders increased to $54.4 million, or $1.24 per diluted share. Adjusted net income was $114.7 million, or $2.61 per diluted share, a 24% increase from the previous year.
Total revenue increased by 15% to $440.0 million.
Net income attributable to shareholders increased to $54.4 million, or $1.24 per diluted share.
Adjusted net income was $114.7 million, or $2.61 per diluted share, up 24% from the previous year.
Average number of vehicles serviced increased by 19%.
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 the first quarter of 2020, WEX expects revenue in the range of $445 million to $455 million and adjusted net income in the range of $95 million to $99 million, or $2.15 to $2.25 per diluted share. For the full year 2020, the Company expects revenue in the range of $1,860 million to $1,900 million and adjusted net income in the range of $447 million to $464 million, or $10.15 to $10.55 per diluted share.
Positive Outlook
- Revenue in the range of $445 million to $455 million for Q1 2020.
- Adjusted net income in the range of $95 million to $99 million for Q1 2020.
- Revenue in the range of $1,860 million to $1,900 million for FY 2020.
- Adjusted net income in the range of $447 million to $464 million for FY 2020.
- Guidance is based on an assumed average U.S. retail fuel price of $2.69 and $2.70 per gallon for Q1 and FY 2020, respectively.
Challenges Ahead
- Guidance does not include any impacts from the recently announced acquisition of eNett and Optal.
- First quarter and full year 2020 guidance is based on an assumed average U.S. retail fuel price of $2.69 and $2.70 per gallon, respectively.
- Guidance assumes that fleet credit loss for the first quarter will be in the range of 15 to 20 basis points and the full year will be in the range of 13 to 18 basis points.
- Guidance assumes approximately 44.0 million shares outstanding for the full year.
- The Company's adjusted net income guidance, which is a non-GAAP measure, excludes several items that may have a significant impact on our financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income