NYSE$WEX

WEX Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

WEX's Q2 2023 earnings were released, revealing record revenue and growth in key segments.

WEX reported a strong Q2 2023 with record revenue of $621.3 million, a 4% increase year-over-year. Growth was driven by the Benefits and Corporate Payments segments. GAAP net income was $95.3 million, or $2.20 per diluted share, while adjusted net income was $159.3 million, or $3.63 per diluted share. The company raised its full-year guidance for both revenue and adjusted earnings per share.

  • Total revenue increased by 4% year-over-year, reaching a record $621 million.
  • Benefits segment grew by 34% and Corporate Payments segment grew by 21%.
  • GAAP net income increased to $2.20 per diluted share, while adjusted net income was $3.63 per diluted share.
  • The company raised its full-year 2023 financial guidance for revenue and adjusted earnings per share.

Headline financials

Total Revenue

$621M

Previous: $598M+3.9%
EPS (adj)

$3.63

Previous: $3.71-2.2%
Mobility transactions

142.4M

Previous: 143.2M-0.5%
Net processing rate

1.3%

Previous: 1.1%+14.7%
Net late fee rate

0.5%

Previous: 0.4%+26.3%
Avg SaaS accounts

19.5M

Previous: 17.6M+11.0%
Corporate purchase volume

$22.9B

Previous: $17.1B+33.8%
Capital Expenditures

-$65.3M

Previous: -$45.6M-43.2%
Free Cash Flow

$30M

Previous: -$11.5M+361.5%
Net Income

$95.3M

Previous: $34.1M+179.2%
Operating Income

$159M

Previous: $171M-6.9%
Gross Profit

$386M

Previous: $374M+3.3%
Cash & Equivalents

$901M

Previous: $439M+105.4%
Total Assets

$13.3B

Previous: $12.3B+8.3%
Stock-Based Comp

$35.9M

Previous: $24.9M+44.2%

Revenue & EPS history

WEX · Revenue · Quarterly

$621M

Q2 2023+3.9%vs Q2 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

WEX · $621M total across 3 segments · Q2 2023

  • Mobility
    $340M
  • Benefits
    $159M
  • Corporate Payments
    $122M

Forward guidance

The Company provides revenue guidance on a GAAP basis and earnings guidance on a non-GAAP basis. For the third quarter of 2023, the Company expects revenue in the range of $629 million to $639 million and adjusted net income attributable to shareholders in the range of $3.65 to $3.75 per diluted share. For the full year 2023, the Company now expects revenue in the range of $2.50 billion to $2.52 billion. Adjusted net income attributable to shareholders is now expected to be in the range of $14.15 to $14.35 per diluted share.

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 Q2 2023

Historical avgQ2 2023

-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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