Q1 2024 Corpay Inc Earnings Call Transcript
Key Points
- Corpay Inc (CPAY) reported a revenue of $935 million, up 8% excluding Russia, with cash EPS of $4.10, up 14% excluding Russia.
- Organic revenue growth was 6% for the quarter, with Corporate Payments business revenue growth up 17% overall.
- Retention remains stable at 91%, with sales or new bookings up 11% year-over-year.
- Corpay Inc (CPAY) has made significant progress in its North America Vehicle business, shifting focus from low-quality micro accounts to SMB accounts.
- The company has successfully closed major investments and acquisitions, such as the majority investment in Zapay and signing Paymerang, expected to be accretive to revenue and EPS growth next year.
- Same-store sales were soft, showing a negative 2% for the quarter, primarily driven by lodging.
- The North America Vehicle business is experiencing a slower than expected pivot, impacting performance.
- Workforce lodging business continues to experience softness due to macro weakness and issues converting to a new IT system.
- Foreign exchange movements and higher interest rates are expected to depress financial performance for the remainder of the year.
- Full year 2024 revenue guidance was reduced from $4.80 billion to $4 billion, and cash EPS guidance was reduced from $19.40 to $19 due to macroeconomic factors and lodging revenue softness.
Good day, everyone, and welcome to today's Corpay First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note this call is being recorded. (Operator Instructions)
It is now my pleasure to turn the call over to Jim Eglseder. Please go ahead, sir.
Good afternoon, and thank you for joining us today for our first quarter 2024 earnings call. With me today are Ron Clarke, our Chairman and CEO; and Tom Panther, our CFO. Following the prepared comments, the operator will announce that the queue will open for the Q&A session. Today's documents, including our earnings release and supplement can be found under the Investor Relations section of our website at corpay.com.
Throughout this call, we will be covering organic growth. As a reminder, this metric neutralizes the impact of year-over-year changes in foreign exchange rates, fuel prices and spreads. And it also includes pro forma results for acquisitions and divestitures or scope changes closed during the 2 years being compared. We
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