On August 7, 2024, Corpay Inc (CPAY, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Corpay Inc is a global S&P 500 corporate payments company that helps businesses and consumers manage and pay expenses in a simple, controlled manner. Its suite of modern payment solutions helps its customers better manage vehicle-related expenses, travel expenses, and payables, resulting in time savings and reduced spending.
Performance Overview
Corpay Inc (CPAY, Financial) reported a 3% increase in revenues, reaching $975.7 million in Q2 2024 compared to $948.2 million in Q2 2023. Net income attributable to Corpay increased by 5% to $251.6 million, up from $239.7 million in the same period last year. The net income per diluted share rose by 10% to $3.52 from $3.20.
“Our results were slightly ahead of our expectations. Our most recent business trends, including same store sales, new sales and customer retention, all meaningfully improved in the second quarter, which bodes well for our 2024 exit,” said Ron Clarke, chairman and chief executive officer, Corpay, Inc.
Financial Achievements
Corpay's EBITDA increased by 4% to $517.7 million in Q2 2024, compared to $497.1 million in Q2 2023. Adjusted net income attributable to Corpay rose by 3% to $325.0 million, and adjusted net income per diluted share increased by 8% to $4.55.
“Our Corporate Payments and Vehicle Payments segments delivered solid performance driven by implementations and ramping of new sales. Our U.S. local fleet and lodging businesses demonstrated progress in the second quarter with strong sales and improving same store sales,” said Tom Panther, chief financial officer, Corpay, Inc.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Revenues | $975.7 million | $948.2 million | 3% |
| Net Income | $251.6 million | $239.7 million | 5% |
| Net Income per Diluted Share | $3.52 | $3.20 | 10% |
| EBITDA | $517.7 million | $497.1 million | 4% |
| Adjusted Net Income | $325.0 million | $314.3 million | 3% |
| Adjusted Net Income per Diluted Share | $4.55 | $4.19 | 8% |
Balance Sheet and Cash Flow
Corpay's total assets increased to $16.2 billion as of June 30, 2024, from $15.5 billion at the end of 2023. The company reported a strong cash position with $1.36 billion in cash and cash equivalents. Net cash provided by operating activities was $891.1 million for the first six months of 2024, compared to $1.1 billion in the same period last year.
Updated Fiscal Year 2024 Outlook
Corpay Inc updated its financial guidance for the fiscal year 2024, projecting total revenues between $3.975 billion and $4.025 billion, and net income between $1.058 billion and $1.088 billion. The company expects adjusted net income per diluted share to be between $18.85 and $19.15.
“Our outlook for the remainder of the year includes $25-$35 million of Paymerang revenue, offset by slightly unfavorable foreign exchange rates and fuel prices compared with our May outlook, in addition to a slower lodging recovery. For the second half of 2024, we expect revenue growth acceleration as we exit the year, driven by sales, improving retention, flat same store sales and business initiatives,” concluded Panther.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Corpay Inc for further details.
