NYSE$WEX

WEX Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

WEX's Q1 2022 earnings were released, demonstrating record revenue and increased profitability.

WEX Inc. reported a strong first quarter in 2022, with total revenue increasing by 26% year-over-year to $517.5 million. GAAP net income per share increased to $2.71, and adjusted net income per share increased by 61% to $2.88. The company also raised its full-year 2022 financial guidance.

  • Total revenue for Q1 2022 increased by 26% to $517.5 million.
  • GAAP net income per share increased to $2.71 per diluted share.
  • Adjusted net income per share increased 61% year-over-year to $2.88 per diluted share.
  • Total volume across the company increased by 50% from Q1 2021.

Headline financials

Total Revenue

$518M

Previous: $411M+26.0%
EPS (adj)

$2.88

Previous: $1.79+60.9%
Mobility transactions

132.7M

No prior period
Net processing rate

1.1%

No prior period
Net late fee rate

0.4%

No prior period
Avg SaaS accounts

17.8M

Previous: 15.5M+15.0%
Corporate purchase volume

$11.8B

No prior period
Capital Expenditures

-$24.2M

Previous: -$18.3M-32.2%
Free Cash Flow

$64.4M

Previous: $4.2M+1432.6%
Net Income

$88.5M

Previous: $22.5M+293.8%
Operating Income

$122M

Previous: $50.5M+141.9%
Gross Profit

$315M

Previous: $253M+24.7%
Cash & Equivalents

$578M

Previous: $561M+2.9%
Total Assets

$11.3B

Previous: $8.32B+36.3%
Stock-Based Comp

$23.7M

Previous: $17.9M+32.5%

Revenue & EPS history

WEX · Revenue · Quarterly

$518M

Q1 2022+26%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

WEX · $651M total across 3 segments · Q3 2023

  • Mobility
    $350M
  • Benefits
    $166M
  • Corporate Payments
    $135M

Forward guidance

For Q2 2022, WEX anticipates revenue between $555 million and $565 million, with adjusted net income ranging from $154 million to $159 million, or $3.35 to $3.45 per diluted share. The full-year 2022 revenue is projected to be between $2.155 billion and $2.195 billion. Adjusted net income for the year is expected to be in the range of $569 million to $588 million, or $12.40 to $12.80 per diluted share.

Tailwinds

  • Revenue is expected to be in the range of $555 million to $565 million for Q2 2022.
  • Adjusted net income is projected to be between $154 million and $159 million for Q2 2022.
  • Full-year 2022 revenue is now expected to be in the range of $2.155 billion to $2.195 billion.
  • Adjusted net income for full-year 2022 is expected to be between $569 million and $588 million.
  • Guidance assumes approximately 47.5 million fully diluted shares outstanding for the full year.

Headwinds

  • Guidance is based on assumed average U.S. retail fuel prices of $4.46 and $4.13 per gallon for Q2 and full year 2022, respectively, which could fluctuate.
  • Adjusted net income guidance excludes certain items, making it difficult to reconcile with GAAP measures.
  • Uncertainty in predicting amounts to be adjusted, including foreign currency exchange rates and acquisition-related items.
  • Potential impact of the coronavirus (COVID-19) pandemic on the Company’s business and financial condition.
  • Risk of fluctuations in fuel prices and fuel spreads in the Company’s international markets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.8%

Avg return

Earnings day

-3.3%

Avg return

5 days after

-2.2%

Avg return

30 days after

39%

27 / 69 earnings

Positive

+10.0%

Q3 2022

Best reaction

-18.7%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.0%-17.6%-18.7%
Q4 2025-0.2%+11.5%+12.2%
Q3 2025-1.6%-3.9%-3.7%
Q2 2025-0.4%-3.5%-3.1%
Q1 2025-6.8%-6.2%+2.0%
Q4 2024-18.7%-17.1%-15.0%
Q3 2024-16.0%-18.7%-13.0%
Q2 2024+0.9%+3.0%+3.8%
Q1 2024-7.2%-9.5%-19.5%
Q4 2023+4.8%+4.2%+13.1%
Q3 2023-9.5%-7.7%-2.8%
Q2 2023-4.3%-2.5%-4.5%
Q1 2023+1.7%-4.0%-2.9%
Q4 2022+7.9%+6.6%-3.5%
Q3 2022+10.0%+11.9%+10.8%
Q2 2022-2.4%-1.6%-5.8%
Q1 2022+1.3%+1.3%+3.1%
Q4 2021+2.9%+4.7%-2.7%
Q3 2021-18.7%-21.9%-28.4%
Q2 2021-6.5%-10.1%-9.2%
Q1 2021-9.5%-9.9%-13.6%
Q4 2020-5.2%-6.9%-4.4%
Q3 2020-5.3%+0.1%+35.9%
Q2 2020-7.0%-5.4%-3.7%
Q1 2020+2.7%-3.2%+35.4%
Q4 2019+5.4%+4.6%-38.4%
Q3 2019-5.5%-4.4%-1.3%
Q2 2019-7.3%-11.4%-6.2%
Q1 2019+0.1%-2.9%-9.2%
Q4 2018+2.6%-0.2%+8.7%
Q3 2018+4.1%+0.8%-7.6%
Q2 2018-1.7%-0.9%-0.3%
Q1 2018+4.5%+5.5%+10.2%
Q4 2017+8.8%+8.5%+6.9%
Q3 2017-0.5%-0.9%+2.7%
Q2 2017-2.1%-5.4%-6.3%
Q1 2017-5.0%-7.1%-3.2%
Q4 2016-6.6%-6.9%-10.7%
Q3 2016+6.6%+0.1%+3.0%
Q2 2016-1.4%-4.6%+2.9%
Q1 2016+4.1%
Q4 2015-11.9%
Q3 2015-3.4%
Q2 2015-4.9%
Q1 2015-0.4%
Q4 2014+0.7%
Q3 2014+3.0%
Q2 2014+2.7%
Q1 2014+0.6%
Q4 2013+5.3%
Q3 2013+6.9%
Q2 2013+4.6%
Q1 2013-9.3%
Q4 2011-0.1%
Q4 2012-5.9%
Q3 2012+2.8%
Q2 2012+2.7%
Q1 2012+0.7%
Q3 2011-1.5%
Q2 2011-4.1%
Q1 2010-1.8%
Q1 2011+1.5%
Q4 2008-2.4%
Q4 2010-2.4%
Q3 2009-2.6%
Q3 2010-2.6%
Q2 2009-5.0%
Q4 2009-5.0%
Q2 2010-5.0%

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