They're not talking about driver shortages in the way that they have in the past [inferring], but there's a slowdown within that customer base. Acquired by WEX, Inc. (Company) on 2021-04-14 . I guess can you help us think through the timing and impact of not only implementing those deals kind of more tactically but also the degree over the longer term, whether we should expect more of a mix shift to direct and whether that could have an impact on segment yields over time, a positive impact? To this end, our Mobility team is currently expanding our DriverDash mobile app, which helps fleet [find fueling] locations on the go to include EV charging stations in Europe. Purchase volume issued by WEX was $18.6 billion, which was an increase of 58% versus last year. 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. But so far, in April, things are trending well for us. Sure. But even the construction trades within our portfolio were up a couple of percent. Any clarity on how that spread might behave here in the next couple of quarters? And so those are really the predominant products we have in the Corporate Payments space. An executive may or may not realize all of the Total Co mpensation during their tenure at the Company. In total, adjusted operating income margin for the company was 37.6%, which is down from 39.2% last year, largely driven by much higher margins in both the Corporate Payments and Benefits segments offset by lower margins in the Mobility segment. . 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. Revenue from travel-related customers was up 87% versus Q1 2022. Plenty of room for advancement We've seen lots of opportunities behind that. The elevated loss rate in the over-the-road trucking business that we have seen over the past 2 quarters are starting to abate. Over 90% of our clients come to us seeking a better benefits experience for them and their employees. Registration for the webcast of the event will be available on the Investor Relations section of our website in the coming weeks. We provide brokers, consultants, employers, and participants the broadest range of consumer and healthcare solutions as well as the services to make them successful, all built on the industrys most modern, reliable platform and backed by a $9 billion leader in payments innovation. Is that weakness the same on the smaller versus the larger? The custodial revenue from the invested HSA cash deposits is the primary driver of the increase in margin. Yes. The travel segment, WEX Virtual, helps online travel agencies facilitate cross-border payments through virtual cards, allowing online travel agencies to automate back-end accounting practices. [5] In 2012, it adopted the name WEX, signaling a shift away from focusing on fuel cards and expanding into other payment solutions. But if this is excluded from both periods, the core operating margin would still have increased nearly 1%. WEX Inc. (WEX Quick Quote WEX - Free Report) delivered better-than-expected first-quarter 2023 results. The rest of the portfolio, some of the growth rates are slowing within same-store sales, and I talked about the fact that a lot of the benefit that we received in the quarter came from some of the larger customers. If you look across the business, I would agree, the over-the-road customers, we're hearing from them certainly continued weakness within their marketplace as spot rates are continuing to be lower. Revenue for the first quarter came in at $7 million, above the midpoint of our guidance, and adjusted net income per share beat the midpoint of our guidance by $0.11. 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. Each account that is available on the debit card is referred to as a "purse". Historically, we've sold that product through a partner channel. And we saw a negative 2% same-store sales within the over-the-road business. And so those things, combined, have been a really great contribution to the overall business. One, is the embedded payments product, which is what is used within our travel customer base. We also had a period of time where people were less likely to make changes because of what was happening -- a bit of an overhang from the pandemic. And so the people that were newer in business and smaller in size, we've had a very targeted issue within that part of the portfolio. Existing User. We had record attendance at SPARK, which shows the importance of our solutions and how they resonate with customers. Finally, let's take a look at the Benefits segment. Powered by WEX Health. Let me start with an update on our electric vehicle initiatives. Where do I log in to my online account? As a reminder, we define recurring revenue as process -- payment processing and account servicing revenue, revenue from our factoring business, transaction processing fees and other smaller items. This was led by continued growth in the partner channel. The Benefits segment adjusted operating income margin was 39.1% compared to 29.3% in 2022. It's a better customer experience. So I think that we've gotten the benefit of that. This administrator has more than 100 multiemployer clients, allowing for a large market reach. I mean that's obviously impressive. Our next phase will turn to at-home reimbursement. One of the areas I am excited about is the planned improvement in the customer experience by creating a more seamless digital journey, which has the added benefit of saving costs. WEX Engaged Employer Overview 750 Reviews 214 Jobs 1.3K Salaries 109 Interviews 315 Benefits 4 Photos 305 Diversity + Add a Review WEX Employee Reviews about "benefit" Updated Apr 24, 2023 Search Reviews Clear All Full-time, Part-time English Filter Found 157 of over 751 reviews Sort Popular Popular COVID-19 Related Highest Rating Lowest Rating And then what do we need to go get in the course of the year? We provide payment solutions to businesses of all sizes across a wide spectrum of sectors, including fleet, corporate payments, travel and health. Allow employees to log in and review the details of their employee benefits program elections 24/7 and make changes and enroll in benefits as required. We look at scale plays, so the assets that are larger in size, which are more just financially accretive, less about the product. The company traces its origins to A.R. We continue to invest in our platform to help our customers meet the demands of their markets, employees and customer [bids]. No, that's prudent and makes sense. Yes, thanks, Sanjay. Is there a change to where I mail my COBRA premiums and can I continue to use my current COBRA/retiree premium payment coupons? Simply select your account type below and you'll be sent to the login page for your Benefits account. No action is needed by you and you can keep the notice for your records. Participants can continue to contact our Participant Services team at 866-451-3399 Monday through Friday from 6 a.m. to 9 p.m. Central time, or by emailing customerservice@wexhealth.com. So we have ramped the investments that we've made in that part of the business over the last couple of years. 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. These updated ranges represent an increase of $20 million in revenue and $0.25 of EPS compared to the midpoint of our previous guidance. And we've had good success in selling that into the fintech community, ultimately in the United States. So I guess 2 questions. This concludes the conference call. How does it work? If used elsewhere, you may need to upload supporting documentation (depending on your benefits plan). WexLocationCode.setTransientValue("wex02"); 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. Neither of these banks were customers or partners of WEX, and we had minimal deposit exposure. PORTLAND, Maine--(BUSINESS WIRE)--WEX (NYSE: WEX), a leading financial technology service provider (the "Company"), today announced the signing of an agreement to acquire benefitexpress, a . I mean, I think you guys have an investor event coming up around that, right, which we'll go into more detail. We expect to reach our overall cloud goals later this year, allowing us to further leverage shared technologies across product set. So really, really strong still conversations within our customer base. Military veterans possess invaluable leadership skills and business acumen. So one thing I would point out, just at a top level, you'll see that our deposits increased about $1 billion from the end of Q4 to the end of Q1 this year. Yes. We have about [$4.5 million] worth of deposits that sit on our balance sheet. Will you be providing new service contracts? Yes. Other than macro factors like fuel prices and interest rates, we are largely maintaining our previous guidance for everything else. We'll be piloting an at-home reimbursement product this quarter and expect to have a broader rollout in the second half of this year. Values of the benefits may change over time. See the company profile for WEX Inc. (WEX) including business summary, industry/sector information, number of employees, business summary, corporate governance, key executives and their compensation. Let me briefly address the increased credit losses, which were within our guidance range of 32 basis points of spend volume, including approximately 4 basis points from fraud losses. Yes. Total volume processed across the organization in the first quarter grew 17% year-over-year to $52.3 billion driven by strong performance in our Corporate Payments and Benefits segments. So we start with that because I think that there's still meaningful opportunity there, both in the United States and outside the United States. From an earnings perspective, on a GAAP basis, we had net income attributable to shareholders of $68 million in Q1. We are assuming that you see a trail off in travel growth in the second half of the year. On top of that, within the Mobility space, this conversion to EV, increasingly, we see this as an opportunity. Women play an important role at WEX. They want all that data so that they can really understand the total ownership -- cost of ownership for their fleet. Military veterans possess invaluable leadership skills and business acumen. With a female CEO, an executive team with 30% female leadership, and global workforce that is nearly half female, women are a key part of WEXs business at all levels. The domestic fuel price in Q1 2023 was $3.86 versus $3.90 in 2022. Melissa D. Smith; Chairman of the Board, President & CEO; WEX Inc. Steven Alan Elder; SVP of Global IR; WEX Inc. Andrew William Jeffrey; Director; Truist Securities, Inc., Research Division, Darrin David Peller; MD & Senior Analyst; Wolfe Research, LLC, David John Koning; Associate Director of Research & Senior Research Analyst; Robert W. Baird & Co. It operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. As with prior quarters, this quarter shows the strength of our global commerce platform, the competitiveness of our offerings and the power of our business model. We continue to drive strong growth, resulting in Q1 revenue of $164.9 million. Simplifying benefits for everyone. Looking for your Discovery Benefits Login? This highlighted the ongoing transformation of our business as we discuss unifying product themes around data, payments and digitization. Our card works at a variety of merchants. Our objective is to create a universal network of EV charging stations similar to our fuel acceptance network. Yes. We will also notify participants when their new login page is live and include any other relevant changes to contact information. So Ramsey, I mean, I think you asked a longer-term question. 1700 E. Golf Road, Suite 1000, Schaumburg . Melissa, appreciate all of the color on business development. We are also continuing to work with the customers that we have on board to make sure that we are continuing to meet the needs that they have in the marketplace and to look for areas that we can further ramp that customer segment. Will employer services numbers stay the same? 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. In Corporate Payments, we signed a part of one of the largest health care systems in the United States. So still decent growth we have in our underlying assumption because we know that there's still pent-up demand, but coming off the highs that we're seeing in first and second quarters. And one of the things that we find interesting about that part of the business is it's also really resilient. Will customer service numbers stay the same? And just one follow-up question for Jagtar. While our name and branding will change, your service experience will not be impacted by these changes. Of our clients continue to partner with us during renewal because of the experience and support we provide them and their employees. And so I think we're continuing to get a little bit of benefit of that. They encourage questions and curiosity. The company is headquartered in Portland, Maine[2][3] and provides services in the United States, Canada, South America, Europe, Asia, and Australia. Professional Development Benefits. Think of that as a customer, typically someone who is highly sophisticated, is embedding an API payment stream within their workflow, and they are taking advantage of either our virtual card technology or other payment modalities. Employee Resource Groups are great because it gives everyone a voice regardless of origin and background. The beginning of each year is typically a weak time for cash flow due to the timing of some payments. I know there's seasonality to the yield likely, but maybe you could just help us think through that. There seems to be some ongoing spot rate stabilization in the freight industry, but we're expecting these kind of rates going forward. So those direct accounts would come in at a higher rate, which is one of the reasons we go direct there. And so it's been negative for a few quarters now. And we'll continue to look at where should we build, where should we partner, where should we buy. I wanted to ask about the Corporate Payments segment. 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. Now let's start with the quarter results. It's been a great part of our business. COBRA, Retiree & Leave of Absence Member login, Learn more about the Discovery Benefits transition to WEX, Inventory Information Approval System (IIAS). We brought in our Chief Digital Officer, first time we've had one, a little over a year ago. Revenue growth of 18% and adjusted earnings per share growth of 15% this quarter represents the eighth consecutive quarter these metrics each grew 15% or more. 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. The first quarter was a very good quarter for us. Like are we thinking that's like second quarter or back half of 2023 thing? Thanks, Tien-Tsin, for the question. WEX Health Cloud helps to administer HSAs, HRAs, FSAs, VEBAs, COBRA, defined-contribution, wellness plans, and transit plans. Specifically, you can use it anywhere with an Inventory Information Approval System (IIAS) or at merchants that meet the IRS 90 percent rule (where 90% of gross sales meet eligibility requirements). Most of these expanded relationships are Mobility customers to whom we were able to sell a Benefits solution. Prev Next 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. Mobility revenue for the quarter was $342.3 million, a 7% increase over the prior year powered by solid volume growth from new customer wins and renewals and an increase in the interchange rate earned on payment processing transactions. 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! And M&A is something, obviously, we're always active. Higher credit losses versus the prior year were the primary reasons for the lower margin. And I guess I'm wondering if that's sustainable. Strong quarterly revenue, paired with the scalability of our business model and a superior funding model, resulted in adjusted net income per diluted share of $3.31, an increase of 15% compared to the same quarter last year. WEX offers complete benefits administration, including benefits accounts such as HSAs, FSAs, HRAs, LSAs, COBRA, and more | Set your business free by . You will not need to make any changes to your recurring ACH schedule. WEX Inc. is a provider of payment processing and information management services to the United States commercial and government vehicle fleet industry. Yes. Please see Exhibit 1 of the press release for an explanation and reconciliation of these non-GAAP measures. But I was curious, are you seeing macro weakness anywhere else? 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. Your next question comes from the line of Ramsey El-Assal with Barclays. We're excited to do that highlight. The domestic fuel price in Q1 2023 was $3.86 versus $3.95 in Q1 2022. We do feel good about the products that we have. And as we -- it looks like that has largely run its course. I think the multiemployer administrator in Benefits, the large health system in Corporate Payments. Existing User. Language links are at the top of the page across from the title. Given this more challenging fundraising environment, are you seeing more interesting opportunities on the M&A side? [4], Wright Express grew over the next several decades. Focusing on diversity also means focusing on inclusion. Benefits Total WEX Inc. Three months ended March 31, 2023 2022 2023 . 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. Reported anonymously by WEX employees. But I'm going to start, and I'm sure Jagtar will add on to this. SOUTH PORTLAND, Maine-- ( BUSINESS WIRE )-- WEX Inc. (NYSE: WEX), a leading financial technology service provider, announced today that it has .
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