For the first quarter, total revenue exceeded the midpoint of our guidance by $7 million due to a combination of strong Corporate Payments purchase volume and a very good open enrollment season in our Benefits segment. Thanks, Melissa, and good morning, everyone. So I said there were some puts and takes in that finance fee revenue. I think that was about $5 million. Get Started Contact Us - Call . Fraud losses in the segment, which we've spoken about a bit in prior quarters, were down 39% from Q4 of last year and continued to improve. Total net revenue for the first quarter of 2023 increased 18% to $612.0 million from $517.5 million for the first quarter of 2022. WEX Overview 753 Reviews 213 Jobs 1.3K Salaries 109 Interviews 315 Benefits 4 Photos 305 Diversity Follow + Add a Salary WEX Salaries How much do WEX employees make? WexLocationCode.setTransientValue("wex02"); I want to make a difference and make people feel like they belong here and WEXPats empowers me to do that by giving me a community of people who have the shared experience of immigrating to a new country for work and the passion to make the transition easier for others. I know there's seasonality to the yield likely, but maybe you could just help us think through that. The first quarter was a very good quarter for us. Just in the Benefits business, you've had a couple of really strong open enrollment seasons, and obviously, these new wins. Sure. Please see Exhibit 1 of the press release for an explanation and reconciliation of these non-GAAP measures. We also continue to benefit from a rebound in travel volume globally. The local fleet customers in the U.S. continue to have marginally elevated loss rates compared to the last couple of years but are in a relatively normal range. M&A Summary. Again, this is consistent with our strategy of ensuring electric vehicles can be charged conveniently while simplifying payments and reimbursement for organizations. The domestic fuel price in Q1 2023 was $3.86 versus $3.95 in Q1 2022. On top of that, within the Mobility space, this conversion to EV, increasingly, we see this as an opportunity. Total revenue came in at $612 million, an 18% increase over Q1 2022 with more than 80% of revenue for the quarter recurring in nature. Discovery Benefits Transition to WEX Brand Timeline Jan 2020 WEX announces the acquisition of Discovery Benefits June 2020 We also saw volume growth in our direct channel, and we are pleased to sign more than 40 new direct Corporate Payment customers in the quarter. Yes. And I guess I'm wondering if that's sustainable. With that, I'll turn the call over to Melissa. ERGs drive diversity by fostering new bonds and communities across the company. And then we look at geographic expansion capabilities, and so there's an active mix across those categories. The biggest piece of that is some of the larger customers. And then on the negative side was the factoring item that you mentioned. And then what do we need to go get in the course of the year? So we do have some escalator clauses that are built into our contracts. Your WEX benefits debit card makes it easy to spend your funds on eligible expenses. But if this is excluded from both periods, the core operating margin would still have increased nearly 1%. We have mailed a notice of assignment regarding our brand and legal entity name to the physical address we have on file for your company. The custodial revenue from the invested HSA cash deposits is the primary driver of the increase in margin. Our focus on cross-sell continues to gain traction with more than 60 signed contracts during Q1. View all pros & cons. This feedback has informed our electric vehicle strategy, which consists of giving fleet managers the tools to plan their energy transition, manage their vehicles in a mixed fleet environment and help ensure their EVs can be conveniently controlled and charged across a distributed environment. Our card works at a variety of merchants. When your card expires, or you report your card lost or stolen, we will send you a new WEX benefits card. Actual results may differ materially from those forward-looking statements as a result of various factors, including those discussed in our press release and the risk factors identified in our annual report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 28, 2023, and subsequent SEC filings. This furthers our goal of putting tools in the hands of drivers that simplify the process of determining where, when and how to charge. The products in the marketplace right now, I talked about in the prepared remarks, or the ability to move our customers letting them by as they are on the go, having this charging network, reimbursement capability and then eventually depot capability, those are really, for us, the starting points because we know, from talking to our customers, they want one integrated bill, one system of record. WEX Benefits Platform | West Fargo ND And then, I guess, secondly, travel volume, per your charts, look like -- whatever it was, it was big. Some of that will impact 2024. So we have ramped the investments that we've made in that part of the business over the last couple of years. Powered by WEX Health. Great. There's been the ongoing slowdown in the freight industry with spot rates declining. So we're continuing to see strength within the North American fleet business. Yes. And you can see that in the growth of vehicles that we've had within our base, and so we start with that. Shifting gears now, I will provide an update on the balance sheet and our liquidity position. Reported anonymously by WEX employees. How does it work? That we expect. So as Jagtar said, we had a really strong open enrollment season. The CDs, it's interesting, even in '08 when there was a real freeze in the banking marketplace, people moved money into the CD market, and so it's a really stable source of funding. Get the latest Health Trends & Insights news in your inbox. And we work across a number of different partners supporting them and growing their business and then also directly, and you can see the benefit of that coming through. So to the extent that, that becomes a larger mix of the total, you would expect that to be a positive benefit to the rate. So we want to make sure that we are continuing to invest in that space. We've also had some renewals come through, and we've been very pleased with the renewal rates we're getting, which has been up in certain cases, which also drove the higher interchange rate.There was really -- the onetime item in the quarter was really market movement in Europe, which was worth about 4 basis points of that interchange rate. We will also notify participants when their new login page is live and include any other relevant changes to contact information. They're asking us for simplified solutions to manage their next fleet and are looking for a single card or app on a single credit line on a single data set, all managed and controlled through a single view. Just listening to you and Jagtar talk about the business generally in the first quarter trends, it seems like you're not really seeing any appreciable signs of slowing outside of the over-the-road sort of freight area. You can view the status of your claims and upload documentation easily with our benefits mobile app or through your online account. I just wanted to thank everyone again for hanging with us as we go a couple of minutes long here, and we look forward to speaking with you again in about 3 months. More broadly, as we drive our strategy of simplification and convenience in the EV space, the first phase of our EV product rollout is focused on en route charging. And so our expectation right now is that we will continue to grow ex PPG, ex FX at our target growth rate of 4% to 8%. And she's doing some amazing work with our technology and commercial teams and really looking at how we can, from an end-to-end perspective, look at that customer experience and even greater digitize that experience, which has a super benefit. Let me add a couple of comments there. And we've seen, as Melissa has mentioned, pretty robust demand for funding sources. (Operator Instructions) Your first question comes from the line of Sanjay Sakhrani with KBW. . In terms of what we're seeing from a multiple perspective, there still is a disconnect between what we're seeing in private multiples and public multiples. Payment processing & information management service company, Ocean Gateway International Marine Passenger Terminal, "Why Wright Express Changed Its Name to WEX", "Wright Express Corporation Announces Pricing of Initial Public Offering", "WEX Opens Global Headquarters In Portland", "Roux Institute partners with WEX on a new facility in Portland", "WEX Partnering with Gas Buddy on Fuel Data Pact", "BRIEF-Wex and OnDeck announce strategic partnership", "WEX launches ClearView Advanced platform for fuel savings", "Jim Pratt: How WEX Ignited B2B Travel Payments", "SnapShot marketplace, TravelClick gets chatty, and more", "Eureka Innovation Award Winner Wex Health", "#WorkTrends Recap: Building Successful Business Partnerships", "Travelport Agrees to Sell Enett to Wex at a Bargain Price", https://en.wikipedia.org/w/index.php?title=WEX_Inc.&oldid=1129342157, Companies listed on the New York Stock Exchange, Companies based in Cumberland County, Maine, Short description is different from Wikidata, Wikipedia indefinitely semi-protected pages, Official website different in Wikidata and Wikipedia, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 24 December 2022, at 20:47. It operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. Women play an important role at WEX. Got it. A lot of focus that we've had has been on building out digital capability, and we've talked about that a lot over the last couple of years. Posted 11:56:46 AM. (866) 451-3399. srehr@discoverybenefits.com. A piece of that is also coming from this anticipation that we'll continue to benefit from the custodial deposits that we have. Do I need to create a new account? The only place that we've seen a slowdown is in that of the over-the-road customer base, and I talked about same-store sales being negative 2%. The net interchange rate in the segment was down 10 basis points sequentially, predominantly due to the timing of incentives for the networks in Q4 last year as well as travel customers contributing a larger percentage of total purchase volume in Q1. We have pipelines that are continuing to fill and feel good about the close rates we have this year, which will more largely impact revenue next year. We have a product road map of what we intend to deliver into the marketplace. Is there an ex EV opportunity, I don't know, internationally, and even in the U.S. ex EV, where are there still compelling opportunities in the market? At the end of the quarter, the total outstanding balance on our revolving line of credit, term loans and convertible notes was $2.7 billion. Login. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Keep more of your money in your business, where it belongs.Apply for a fleet card today! Okay. We simplify benefits for everyone by delivering the broadest range of healthcare solutions (including HSA, FSA, HRA, Commuter, LSA, COBRA and more) built on modern, flexible, and reliable technology and supported by our accountable and empathetic service . It tends to be a higher quarter for travel. And I think -- I mean, related, but you had called out weakness in smaller customers within Mobility last quarter. Yes. Any callouts with respect to volume and -- as well as yield? Self-Service Portal. WEX is a financial services company that is headquartered in South Portland, Maine. But I wanted to understand how fast do these signings contribute to revenues? WEX has offices in 14 countries and employs approximately 5,600 people around the world. Mihir, I would just add, like I said, the travel trend into April continues as expected, and we've seen the same thing with fleet gallons as well has continued into April, in line with our expectations. New User. If you already use the app, just log in with your existing username and password. Net income attributable to shareholders on . Yes. Skip to content. And the -- when we think about opportunities, what we're looking at is either product extensions that we go through an analysis of do we want to build, partner or buy as we're doing our product evaluation. There seems to be some ongoing spot rate stabilization in the freight industry, but we're expecting these kind of rates going forward. Powered by WEX Health. It went public in 2005. So any of these individual contracts are relatively small in terms of the contribution to 2023. We have $776 million of available borrowing capacity and corporate cash of $149 million as defined under the company's credit agreement at quarter end. And we think of that with multiple levers. Military veterans possess invaluable leadership skills and business acumen. We have also been very focused around EV innovation. That's brought the whole sort of factoring item down, and we're expecting that to continue at least for the next couple of quarters. 1700 E. Golf Road, Suite 1000, Schaumburg . The delinquency rates are improving, and we expect loss rates to trend down going forward. Approximately $26 million of the revenue increase in this segment is due to the average interest rate earned on these balances increasing from 1.24% last year to 3.9% this year. Hello, and welcome to the WEX Q1 2023 Earnings Call. You can also mail or email a Discovery Benefits claim form to us for processing. Good results here. Will you be communicating these changes to participants? And we keep that in mind as we're working through all of this. Those assets tend to be much smaller in size. And in Mobility, we recently signed a renewal with one of the most populous states in the country, [demonstrating] that our array of products continues to be a leading value proposition. We continue to add to the product set that we have in the marketplace. Finally, let's take a look at the Benefits segment. So again, not necessarily because we're seeing that trend within our portfolio, but consistent with what we had said in the last quarter. File a claim, view account balance and summary information, sign up for FREE direct deposit, get email notifications, and more! We have allowed these results to flow through to our guidance increase for the year while largely maintaining our previous guidance for the remainder of the year. Self-Service for Employees. So that's an area where we look at product or product adjacencies across really in any part of the business. 1983. I wanted to ask about the Corporate Payments segment. This company is wonderful great pay great benefits and you are treated as a person as opposed to a number. [8], WEX Fleet provides vehicle fleet customers with fuel cards and data and telematics offerings for drivers. WEX Inc. WEX delivered better-than-expected first-quarter . I mean for a good reason, you're prioritizing electric vehicles. Focusing on diversity also means focusing on inclusion. History Over 90% of our clients come to us seeking a better benefits experience for them and their employees. But I'm going to start, and I'm sure Jagtar will add on to this. This represents a 15% increase over the prior year. Website: Size: 50 - 100 Revenue: $10M - $50M . Please go ahead. Where do I log in to my online account? The fraud remediation activities that I've spoken about in prior quarters, which include working with the truck stop operators, continuing to enhance our fraud detection tools and releasing fraud-focused product enhancements appear to be delivering a fraud reduction impact as intended. So we're continuing to sell in the marketplace. About 150. [Delinquencies here] also continued to improve. Is it Corporate Payments? WEX SPARK 2023 is our annual learning and networking event that focuses on new technologies and emerging industry trends meant to simplify payments, fleet management, and benefits administration and help fuel business growth. Within that segment, what we'd expect is the normal puts and takes between travel and our nontravel business. Included in that, we look at what do we have for contracts that have been signed but not yet implemented and what -- so what do we need to actually push through from an implementation perspective? The company continues to have a significant presence in South Portland. You can continue to log in to your online account or mobile app to file a claim. And as a result, I am pleased to share that we are raising our guidance for 2023 to reflect those results as well as the benefit of share repurchases completed to date. Neither of these banks were customers or partners of WEX, and we had minimal deposit exposure. [We lose] less customers coming through but also at a lower cost. The average annual salary of Wex Bank is estimated to be approximate $94,668 per year. We've definitely looked at this business similar to the way that we look at everything else. Got you. As you may recall, we've added to our direct sales force in this business and are starting to see a positive return with more than 40 deals signed in the first quarter. In Benefits, primarily, the conversation is around still employee retention and how we're making sure we're offering benefits within the marketplace that are attractive and continue to evolve in the way that the marketplace expects. [17] Some partners include Fifth Third Bancorp,[18] Paychex,[19] HSA Bank, and Discovery Benefits. Just my quick follow-up. WEX offers complete benefits administration, including benefits accounts such as HSAs, FSAs, HRAs, LSAs, COBRA, and more | Set your business free by . We expect to reach our overall cloud goals later this year, allowing us to further leverage shared technologies across product set. And I would say that travel will be the higher of that, and Corporate Payments would be on the lower side. We look at scale plays, so the assets that are larger in size, which are more just financially accretive, less about the product. We are looking at where do you want to continue to build, and we've had a bias of buildings just again because of what's happening with multiples. So our interchange rate was up nicely this quarter. Type: Company - Public (WEX) Industry: Investment & Asset Management. And then my last question, just on capital allocation. Revenue from travel-related customers was up 87% versus Q1 2022. WEX Virtual launched in 2000 [14] in support of customers including HitchHiker,[15] HotelTonight, Expedia, and Priceline. I assume just the natural progression is not going to stay quite that strong. So we do believe that not only do we have this opportunity nascent within the existing customer base, with the products they have but we're building in the future, both through digital capability and through this migration to a mixed fleet offering that's going to create opportunity for us. I guess, is probably the way I'd say it as opposed to -- I don't think you can feel like we're done. Tuition Reimbursement. Fleet fuel cards have many impactful benefits like data-tracking capabilities and more. Powered by the belief that complex payment systems can be made simple, WEX (NYSE: WEX) is a leading financial technology service provider across a wide spectrum of sectors, including fleet, corporate payments, and healthcare. WEX Benefits | 15,040 followers on LinkedIn. Our passion for continuous innovation and our unparalleled level of service were further fueled when Discovery Benefits who we partnered with for more than 15 years joined WEX in 2019. WEX Benefits Login Simply select your account type below and you'll be sent to the login page for your Benefits account. Finally, before turning the call over to Jagtar, I want to highlight that we will host an investor event to provide an in-depth understanding of our Benefits segment, including the product set, opportunities and financial profile. Higher credit losses versus the prior year were the primary reasons for the lower margin. WEX is our administrator of several employee benefits, including Health Savings Accounts, commuter benefit accounts, an COBRA. New users can create a new account to get started. The segment adjusted operating income margin for the quarter was 40.5%, down from 50.2% in Q1 2022. It is an area that we continue to take market share. So it would be growth in most any environment because you get the benefit of this movement to consumer-directed health care, you've got benefit costs continuing to go up, and then we continue to build upon our distribution channel. Benchmarked against 2019, we're seeing improvement versus Q4 in all regions with the largest gains coming from Europe. We expect ANI EPS to be between $3.45 and $3.55 per diluted share. No, that's prudent and makes sense. The company has more than 3,500 team members throughout the world and supports more than 20 currencies and 10 countries, with locations in Asia, Japan, Australia, Europe, and Latin America. Turning now to Corporate Payments. I'm proud of our strong execution this quarter and believe we remain well positioned for the future as we deliver on our strategic priorities. And I'd say those contract expectations would have been built into that. And you also asked about rate. As part of this initiative, we've been looking closely at a number of areas of our company using improved processes, data and technology. Is that -- are we still early enough in the secular shift to consumer-paid HSA that we can continue to expect big open enrollment seasons that provide momentum and visibility sort of year in and year out in your Benefits business?
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