Simplifying benefits for everyone. A lot of focus that we've had has been on building out digital capability, and we've talked about that a lot over the last couple of years. First Republic in limbo as US regulators juggle bank's fate, Sony shares tumble on weaker-than-expected annual outlook, 'Waste of time': Community college transfers derail students, Asia Stocks Rise, Treasuries Dip in Cautious Trade: Markets Wrap, Poll: Americans fault news media for dividing country. And you can see that in the growth of vehicles that we've had within our base, and so we start with that. We can help your team save time and money and eliminate stress. We currently have approximately 85% of our cloud migration completed. We look at scale plays, so the assets that are larger in size, which are more just financially accretive, less about the product. www.discoverybenefits.com. Is that -- are we still early enough in the secular shift to consumer-paid HSA that we can continue to expect big open enrollment seasons that provide momentum and visibility sort of year in and year out in your Benefits business? No, I think it's a market that will continue to evolve. Yes. As a user of WEX, I set up my account online, set up my Health Savings Account and commuter benefits account after open enrollment, received and activated a debit card to use for my Health Savings Account and commuter benefits account, viewed account statements, and . Click the links below to log in to a participant or employer accounts (formerly Discovery Benefits, LLC, a WEX Company). I know the net interchange piece was down a little bit from incentives. Sales Based on 148 salaries Account Manager 22 salaries Regional Sales Manager And that product itself, highly tech-enabled, really important that has strong uptime. And she's doing some amazing work with our technology and commercial teams and really looking at how we can, from an end-to-end perspective, look at that customer experience and even greater digitize that experience, which has a super benefit. And then it seems like you also talked about the late fee impacts and then maybe a little bit of just macro on the fleet business. We have about [$4.5 million] worth of deposits that sit on our balance sheet. When you put all that together, can you still get the low end of the 4% to 8% that you're kind of talking about for the full year? 88 were here. Get special fuel discounts and save on products and services for your business. Finally, let's move to revenue and earnings guidance for the second quarter and the full year. Any clarity on how that spread might behave here in the next couple of quarters? 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. With me today is Melissa Smith, our Chair, CEO and President; and Jagtar Narula, our CFO. You can also log in and pay your COBRA/Retiree premiums directly from your online account with a recurring ACH payment or from your COBRA mobile app. Hello, and welcome to the WEX Q1 2023 Earnings Call. Continue to log into LEAP like you do today using your existing username, password and passcode to access either your benefits administration or COBRA administration. Your next question comes from the line of Dave Koning with Baird. We have also been very focused around EV innovation. That's brought the whole sort of factoring item down, and we're expecting that to continue at least for the next couple of quarters. The leverage ratio, as defined in the credit agreement, stands at 2.5x, which is at the bottom end of our long-term target of 2.5 to 3.5x. Powered by the belief that complex payment systems can be made simple, WEX (NYSE: WEX) is a leading financial technology service provider across a wide spectrum of sectors, including fleet, corporate payments, and healthcare. Skip to content. Should we expect the Corporate Payments to kind of trend in the 4% range and, I guess, travel to decelerate materially just from where it's at relative to the guide? So it would be growth in most any environment because you get the benefit of this movement to consumer-directed health care, you've got benefit costs continuing to go up, and then we continue to build upon our distribution channel. The average salary for WEX is $121k per year, which includes an average base salary of $106k and an average bonus of $14k. WEX is off to a great start in 2023. Incentivized. [5] In 2012, it adopted the name WEX, signaling a shift away from focusing on fuel cards and expanding into other payment solutions. (formerly known as Wright Express Corporation) is a provider of financial technology solutions. New coupons will be mailed to you as needed. benefitexpress is a cloud-based platform for employee benefits and health exchange services. It can be easy to get caught up in a routine or a silo at WEX, but NexGen has given me the opportunity to connect with people in other functional areas that I otherwise would have never met.. Our benefits administration solutions solve employers end-to-end benefits needs including HSA, FSA, and COBRA, help employees get the most value from their benefits, and power partners business growth. It operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. Adjusted earnings of $3.31 per share surpassed the Zacks Consensus Estimate by 3.4% and our . It went public in 2005. Total segment revenue for the quarter increased 36% to $104.8 million. Women play an important role at WEX. This company is wonderful great pay great benefits and you are treated as a person as opposed to a number. We've also had some renewals come through, and we've been very pleased with the renewal rates we're getting, which has been up in certain cases, which also drove the higher interchange rate.There was really -- the onetime item in the quarter was really market movement in Europe, which was worth about 4 basis points of that interchange rate. And we saw a negative 2% same-store sales within the over-the-road business. So I think that we've gotten the benefit of that. But we feel like we have a good foundation that we continue to build upon. Yes. We are pleased with this result and are working diligently to continue on this track. At the end of the quarter, the total outstanding balance on our revolving line of credit, term loans and convertible notes was $2.7 billion. Is it finding some kind of adjacency expansion capabilities? Wright began allowing trucks to fuel up without having to pay an attendant by using a post-paid fuel card, leading to the creation of Wright Express Corporation in 1983. Got it. And then my last question, just on capital allocation. Welcome to WEX! 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. . If we could touch on the Benefits segment for a minute, the account growth there obviously has been, strong mid-teens-type growth, and now you're adding the Midwest manager as well. The company continues to have a significant presence in South Portland. This allows us to see the company through a different lens or perspective than we normally would. And then maybe you could just remind us what you guys are incorporating into the guidance? Mihir, I would say that the contracts that Melissa talked about are factored into the guidance we've given out. Yes. History 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. In our case, greater than 95% of our deposits are FDIC-insured. Remember Me Next. This was led by continued growth in the partner channel. If used at an IIAS merchant, simply swipe your card and it will automatically approve anything thats an eligible expense. We brought in our Chief Digital Officer, first time we've had one, a little over a year ago. It tends to be a higher quarter for travel. Advances WEXs employee benefits platform with the addition of one of the fastest-growing solutions providers in the marketplace Complements WEXs technology platform with leading benefits account technology Jan. 17, 2019- WEX (NYSE:WEX), a leading financial technology service provider, today announced the signing of an agreement to acquire Discovery Benefits, Inc. (DBI), a high-growth employee . Higher credit losses versus the prior year were the primary reasons for the lower margin. We saw higher rates earned from a number of merchants due to renewals at favorable terms, the impact of interest rate escalator clauses contained in various merchant contracts and the rate impact from a reduction in fuel prices versus Q4. So really, really strong still conversations within our customer base. The custodial revenue from the invested HSA cash deposits is the primary driver of the increase in margin. It's also, if you look across the whole deposit portfolio, we have over 95% of our deposits are FDIC-insured. Fleet fuel cards have many impactful benefits like data-tracking capabilities and more. Is that where you see the largest future growth opportunity? New users can create a new account to get started. Will my service experience change? The company has more than 3,500 team members throughout the world and supports more than 20 currencies and 10 countries, with locations in Asia, Japan, Australia, Europe, and Latin America. They also will see the WEX logo and reminders about the brand change on the online account banner image. Continue to use any premium payment coupons you already have and continue to mail them to the address located on the coupon. Please login again. 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. I talked about the fact that we've had 40 signings in the quarter. 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. Overall travel-related purchase volumes pro forma for the eNett acquisition was up 29% versus 2019 with approximately half of the growth due to the number of transactions and half due to the value of each transaction. Now let's start with the quarter results. Your WEX benefits debit card makes it easy to spend your funds on eligible expenses. Benefits revenues of $164.9 million registered 36% year-over-year growth. Revenue from travel-related customers was up 87% versus Q1 2022. . . Your next question comes from the line of Mihir Bhatia of Bank of America. So there's a number of things that are really important to that customer base. (Operator Instructions) I will now turn the conference over to Steve Elder. Like are we thinking that's like second quarter or back half of 2023 thing? Military veterans possess invaluable leadership skills and business acumen. Fitness Subsidies. So we -- this is something we watch closely, given the overall discussion about the macro economy. Employee Resource Groups are great because it gives everyone a voice regardless of origin and background. The employee's options to upload receipts seem difficult for some. The Fleet Solutions segment offers fleet vehicle payment and transaction processing services. We've looked at a range of metrics around the banks we look at -- we work with, from what's the ratio of insured to uninsured deposits, credit default swaps, things like that, just to make sure that we're prudently managing money and moving it around where appropriate to banks that we're more comfortable with. The rest of it, I would largely expect to be recurring in nature. And also from a risk management standpoint, any change in operations, either on the benefit side or the corporate payment side, given all the cash flow activity that happens naturally there? With that, operator, please open the line for questions. Okay. Registration for the webcast of the event will be available on the Investor Relations section of our website in the coming weeks. So Flume is still -- I'd say, still early days, and we've had -- we started this about 15 months ago. A piece of that is also coming from this anticipation that we'll continue to benefit from the custodial deposits that we have. Thank you, Steve, and good morning, everyone. ). So we do have some escalator clauses that are built into our contracts. I want to make a difference and make people feel like they belong here and WEXPats empowers me to do that by giving me a community of people who have the shared experience of immigrating to a new country for work and the passion to make the transition easier for others. One connector exchanges demographic, enrollment and contribution data. For the first quarter, total revenue exceeded the midpoint of our guidance by $7 million due to a combination of strong Corporate Payments purchase volume and a very good open enrollment season in our Benefits segment. We saw solid mid-single-digit growth from our local customers in the U.S., while we had a small decline in over-the-road transactions due to freight market conditions. So that's an area where we look at product or product adjacencies across really in any part of the business. Sure. Track fuel expenses automatically. Manager in Human Resources. Simplifying benefits for everyone. And I'd say those contract expectations would have been built into that. Your next question comes from the line of Bob Napoli with William Blair. But then when you migrate across the rest of the portfolio, our fleet mobility customers in our North American fleet business was actually up 2.5%. On an organic basis, which excludes the impact of fluctuations in fuel prices and foreign exchange rates, revenue in the quarter grew 19% compared to the prior year's period, once again beating our long-term organic growth target of 8% to 12%. New User. Yes, thanks, Sanjay. Self-Service Portal. 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. We are aware in monitoring what's happening within the marketplace. And I guess I'm wondering if that's sustainable. Youll continue to leverage the same online account, mobile app, and debit card (if applicable) you use today. 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. Get the latest Health Trends & Insights news in your inbox. We've been listening closely to the evolving needs of our commercial customers. 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. Okay. And so the growth with movement to HSAs has slowed, but it is still a strong grower. Is there an ex EV opportunity, I don't know, internationally, and even in the U.S. ex EV, where are there still compelling opportunities in the market? Our card works at a variety of merchants. But I wanted to understand how fast do these signings contribute to revenues? So I feel good about the path that we're on because not only would we have the ability to continue to use the sales channels we have now but to enhance that with further digital capability. Will customer service numbers stay the same? With that, I'll turn it over to Jagtar to walk you through this quarter's financial performance in more detail. But even the construction trades within our portfolio were up a couple of percent. This furthers our goal of putting tools in the hands of drivers that simplify the process of determining where, when and how to charge. Of our clients continue to partner with us during renewal because of the experience and support we provide them and their employees. 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. WEX generates a significant amount of cash each year with Q1 typically being the lowest due to seasonality. And so those are a combination of CDs, which we used to fund the business, and then HSA deposits are the 2 largest pieces of that. Remember Me Next New User? This represents a 15% increase over the prior year. 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. Should we think about that as being the predominant sequential change in that yield? The Fleet Solutions segment . We continue to add to the product set that we have in the marketplace. Company Outings. WEX has offices in 14 countries and employs approximately 5,600 people around the world. This reflects continued strength in the consumer travel demand, and we are very pleased with these results. 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. SOUTH PORTLAND, Maine-- ( BUSINESS WIRE )-- WEX Inc. (NYSE: WEX), a leading financial technology service provider, announced today that it has . File a claim, view account balance and summary information, sign up for FREE direct deposit, get email notifications, and more! In 2012, WEX Fleet acquired Fleet One to provide fleet cards to drivers. We provide payment solutions to businesses of all sizes across a wide spectrum of sectors, including fleet, corporate payments, travel and health. 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. WEX benefits account resources Participants HSA, FSA, HRA/Wellness & Commuter login Non-employer Individual HSA login COBRA, Retiree & Leave of Absence Member login Participant Knowledgebase No. Let me start with an update on our electric vehicle initiatives. And the team is focused on each of those areas.So when we talk about that segment, kind of the long-term growth rate that we've had for that segment is 10% to 15%. WEX Overview 753 Reviews 213 Jobs 1.3K Salaries 109 Interviews 315 Benefits 4 Photos 305 Diversity Follow + Add a Salary WEX Salaries How much do WEX employees make? Username Forgot Username? Like I understand your guidance is for a slowdown in the back half, but have you seen any actual slowdown yet across your businesses? That did not materialize, and overall, finance fee revenue was up only 3%, which includes a 33% slowdown in our factoring revenue, which is related to the freight market conditions I just mentioned. WEX SPARK 2023 is our annual learning and networking event that focuses on new technologies and emerging industry trends meant to simplify payments, fleet management, and benefits administration and help fuel business growth. We continue to drive strong growth, resulting in Q1 revenue of $164.9 million. This highlighted the ongoing transformation of our business as we discuss unifying product themes around data, payments and digitization. As a reminder, we will be discussing non-GAAP metrics, specifically: adjusted net income attributable to shareholders, which we refer to as adjusted net income, or ANI; and adjusted operating income and related margin; and adjusted free cash flow during our call. Tuition Reimbursement. 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 continue to invest in our platform to help our customers meet the demands of their markets, employees and customer [bids]. Your next question comes from the line of Darrin Peller with Wolfe Research. Revenue: $1 to $5 billion (USD) Competitors: FLEETCOR, Comdata, U.S. Bank. So our interchange rate was up nicely this quarter. Our passion for continuous innovation and our unparalleled level of service were further fueled when Discovery Benefits who we partnered with for more than 15 years joined WEX in 2019. Great. It is an area that we continue to take market share. Also, as we noted last quarter, our deposit balances and, as a result, our reported adjusted free cash flow were about $150 million to $175 million more than we would normally expect, which were reversed during Q1. Professional Development Benefits. And we keep that in mind as we're working through all of this. Your next question comes from the line of Ramsey El-Assal with Barclays. Read More. 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. And you also asked about rate. ERGs drive diversity by fostering new bonds and communities across the company. I would say -- I would just add that -- a reminder that we project -- we gave guidance of 10% to 15% growth rate for the travel and Corporate Payments or the Corporate Payments segment overall. Our primary use of free cash flow this year has been to repurchase shares. Get the latest Health Trends & Insights news in your inbox. In the 1980s, A.R. These challenges are experienced across many industry verticals and include personalizing employee benefits, navigating the complexity of mixed fleet [interests] and removing the friction caused by inefficient payment processes and systems. There has been significant improvement in these margins as volume accelerates. And in terms of what we're assuming from a volume perspective, we are assuming that idea of having a slow growth environment. Our mission is to help our clients and their businesses flourish both financially and personally by becoming trusted advisors that care about them as people first, and then by providing accurate and reliable financial reporting and read more in Accountants, Tax Services, Bookkeepers Location & Hours 4321 20th Ave S Fargo, ND 58103 Get directions Yes. With a WEX Health Visa/Mastercard-powered account, members enjoy easy access to funds for supplemental benefits like OTC, groceries, transportation, dental, vision, hearing, fitness, chiropractic, acupuncture, home services, utility bills, premium rebates, etc. Our payments platform technologies give you everything you need to run an advanced payments program in one place, including the expertise to make payments smarter, faster, and more profitable. You can also access your account from the COBRA mobile app. File a claim, view account balance and summary information, sign up for FREE direct deposit, get email notifications, and more! Plenty of room for advancement Our platforms areSee this and similar jobs on LinkedIn. I know there's seasonality to the yield likely, but maybe you could just help us think through that. We believe these new agreements will be a win-win for WEX and our network partners given the significant relationships we have (inaudible) with the government and large fleet. Please see Exhibit 1 of the press release for an explanation and reconciliation of these non-GAAP measures. And then what do we need to go get in the course of the year? Do I need to create a new account? Aside from the base salary, Wex Bank offers its employees a list of benefits. We had anticipated the trend of higher late fee rates that we saw at the end of last year to continue in Q1. Now let's move to segment results, starting with Mobility. Some of that will impact 2024. This administrator has more than 100 multiemployer clients, allowing for a large market reach. We have hundreds of customers that are using the product. You can continue to use the debit card you have today. [17] Some partners include Fifth Third Bancorp,[18] Paychex,[19] HSA Bank, and Discovery Benefits. In terms of operational changes, we are closely monitoring the banks that we work with. And M&A is something, obviously, we're always active. We have a dedicated leader for this initiative, with dozens of cross-functional teams inside of WEX who are focused on execution and has the full support of me and my entire management team. And we work across a number of different partners supporting them and growing their business and then also directly, and you can see the benefit of that coming through. When you switch to a WEX fleet card, you can eliminate fuel purchases from employee . And we have made changes with our credit approval processes, both for the over-the-road business and our traditional retail business, to tighten credit standards in keeping with this idea that we're anticipating or planning for a slow-growth environment in the second half of the year. 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. Thanks, Tien-Tsin, for the question. The WEX Health Card is a prepaid debit card that contains the value of your annual Health Care Flexible Spending Account (FSA) or Limited Health Care Flexible Spending Account elected amount. WexBocaLink.setUrl("locations-flyout", "WEXFleetUniversal", "cc1"); Save money and manage fleet operations with our modern business mobility solutions, including a broad array of fuel cards for any size fleet. Where does it work? Total volume across the company came in at $52.3 billion, up . And in each of our areas of our business, we're really focused on each of those things, making sure that we retain our existing customers and are maximizing from that, implementing and then signing new customers. At the same time, we've been moving aggressively to the cloud, which increases [fleet to market of] innovation and enhance scalability for our customers. WEX has 5 employees across 31 locations and $2.35 b in annual revenue in FY 2022. . WEX rewards excellence, hard work, and innovation by providing qualified . A copy of the release has also been included in an 8-K we filed with the SEC earlier this morning. I think that was about $5 million. Can you discuss your 2023 growth expectations for travel-related revenue and Corporate Payments-related revenue separately to arrive at the 7% to 11% guide? So we're continuing to sell in the marketplace. I would also like to remind you that we will discuss forward-looking statements under the Private Securities Litigation Reform Act of 1995. Website: Size: 50 - 100 Revenue: $10M - $50M . [8], WEX Fleet provides vehicle fleet customers with fuel cards and data and telematics offerings for drivers. We simplify benefits for everyone by delivering the broadest range of healthcare solutions (including HSA, FSA, HRA, Commuter, LSA, COBRA, and more) built on modern, flexible, and reliable technology and supported by our accountable and . No action is needed by you and you can keep the notice for your records. If you already use the app, just log in with your existing username and password. No. The elevated loss rate in the over-the-road trucking business that we have seen over the past 2 quarters are starting to abate. The other question I had was, Melissa, you mentioned a couple of big customer signings in your remarks. I think some of that is continued rebound of people going back into the office, sales fleets being out and moving. Year If used elsewhere, you may need to upload supporting documentation (depending on your benefits plan). And we talked about AvidXchange from the customers that we had added more recently. Incorporated, Research Division, Mihir Bhatia; VP in Equity Research & Research Analyst; BofA Securities, Research Division, Nikolai Chrin Cremo; Research Analyst; Crdit Suisse AG, Research Division, Ramsey Clark El-Assal; Research Analyst; Barclays Bank PLC, Research Division, Robert Paul Napoli; Partner and Co-Group Head of Financial Services & Technology; William Blair & Company L.L.C., Research Division, Sanjay Harkishin Sakhrani; MD; Keefe, Bruyette, & Woods, Inc., Research Division, Tien-Tsin Huang; Senior Analyst; JPMorgan Chase & Co, Research Division. As the banking industry cope with significant movement in deposit flows since the recent bank failures, our custodial HSA cash deposits and certificates of deposit have shown themselves to be extremely stable. So we expect some volume impacts from that as we go through the next couple of quarters. Will customer service numbers stay the same? HSA funds are payroll-deducted (and company-matched, if applicable) and loaded to the employee's WEX account. 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 . The majority pay is between $82,985 to $107,380 per year. Our message to customers centered on WEX' unique ability to address the challenges they see in their businesses. In January 2020, the company announced it would acquire travel payments companies eNett and Optal from Travelport for $577.5 million.[20]. The local fleet customers in the U.S. continue to have marginally elevated loss rates compared to the last couple of years but are in a relatively normal range. Focusing on diversity also means focusing on inclusion. The biggest piece of that is some of the larger customers. It operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. Thanks, Melissa, and good morning, everyone. It's been a great part of our business. (Operator Instructions) Your first question comes from the line of Sanjay Sakhrani with KBW. Existing Users Username Forgot Username? We expect ANI EPS to be between $3.45 and $3.55 per diluted share. WEX Benefits Platform | West Fargo ND We continue to see travel volumes in April in line with our forecast. And then just on your B2B payments business, I mean, as you had called out, I know with Flume and any progress what you're seeing with the SMB customers. WEX Inc. WEX yesterday announced that it has inked a deal to purchase benefitexpress for a sum total of nearly $275 million. WEX Virtual launched in 2000 [14] in support of customers including HitchHiker,[15] HotelTonight, Expedia, and Priceline. We are assuming that you see a trail off in travel growth in the second half of the year.