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Dec 31, 2024
WEX Q4 2024 Earnings Report
WEX Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024.
Key Takeaways
WEX Inc. reported a 4% decrease in Q4 revenue year-over-year to $637 million, primarily due to unfavorable impacts from fuel prices and foreign exchange rates. Full year revenue, however, increased by 3% to $2.63 billion. GAAP net income per diluted share for Q4 was $1.60, while adjusted net income per diluted share was $3.57, down 7% from the prior year.
Q4 revenue decreased 4% year-over-year to $636.5 million, impacted by a net $26.6 million unfavorable impact from fuel prices and spreads.
Q4 GAAP net income was $63.9 million, or $1.60 per diluted share, a decrease from $84.9 million, or $1.98 per diluted share, in the prior year.
Q4 adjusted net income was $142.9 million, or $3.57 per diluted share, down 7% from $163.9 million, or $3.82 per diluted share, in the prior year.
Total volume across all segments decreased 6% year-over-year to $53 billion.
WEX
WEX
WEX Revenue by Segment
Revenue by Segment
Mobility Revenue
CapyFin.comCorporate Payments Revenue
CapyFin.comBenefits Revenue
CapyFin.comPayment Processing Revenue
CapyFin.comAccount Servicing Revenue
CapyFin.comFinance Fee Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
For the first quarter of 2025, WEX expects revenue in the range of $625 million to $640 million and adjusted net income in the range of $132 million to $138 million, or $3.35 to $3.50 per diluted share. For the full year 2025, the Company expects revenue in the range of $2.60 billion to $2.66 billion and adjusted net income in the range of $571 million to $595 million, or $14.65 to $15.25 per diluted share.
Positive Outlook
- Targeted investments in product innovation and sales expansion are expected to set the stage for long-term success.
- Initiatives are anticipated to enhance competitive edge and accelerate growth.
- The company aims to deliver exceptional value to shareholders.
- Confidence in growth ambitions due to successes in targeted sales and marketing investments.
- Expectation that investments will drive acceleration in top-line growth rate over time.
Challenges Ahead
- Assumed average U.S. retail fuel prices for 2025 are lower than 2024, which reduces 2025 revenue and adjusted EPS.
- Unrealized gains and losses on financial instruments are difficult to predict and can significantly impact financial results.
- Net foreign currency gains and losses are difficult to predict and can significantly impact financial results.
- Changes in fair value of contingent consideration are difficult to predict and can significantly impact financial results.
- Acquisition and divestiture related items are difficult to predict and can significantly impact financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income