10-KPeriod: FY2023

CORPAY, INC. Annual Report, Year Ended Dec 31, 2023

Filed February 29, 2024For Securities:CPAY

Summary

Corpay, Inc. (formerly FLEETCOR) delivered solid revenue growth in 2023, increasing 9.6% year-over-year to $3.76 billion, driven by robust organic growth across its segments, particularly in Corporate Payments, which saw a 27.5% revenue increase. The company's strategic acquisitions, including PayByPhone Technologies, Mina Digital, and Global Reach, contributed to this growth and expanded its service offerings, especially in electric vehicle charging and parking solutions. Despite facing some macroeconomic headwinds, such as lower fuel prices impacting its Vehicle Payments segment, Corpay demonstrated strong operational performance, with EBITDA margin improving to 53.1%. The company also managed its debt effectively, with a significant portion hedged against interest rate fluctuations. Corpay is strategically positioned for continued growth through its diversified payment solutions and a multi-channel go-to-market approach. The company remains focused on digitalizing payments, enhancing customer control, and leveraging data analytics to provide valuable insights to its business clients. The planned rebranding to Corpay, Inc. and the ticker change to CPAY in March 2024 reflect the company's evolution and broader strategic focus beyond its historical reliance on fuel cards.

Financial Highlights

51 data points
Beta

Revenue

$3.76B

Net Income

$982.00M

26.1% Net Margin

EPS (Diluted)

$13.20

Total Assets

$15.48B

Cash & Equivalents

$1.39B

Free Cash Flow

$1.95B

Financial Statements
Beta
Revenue$3.76B
Operating Income$1.66B
Net Income$982.00M
EPS (Basic)$13.42
EPS (Diluted)$13.20
Shares Outstanding (Basic)73.16M
Shares Outstanding (Diluted)74.39M

Key Highlights

  • 1Corpay reported a 9.6% increase in consolidated revenues, reaching $3.76 billion in 2023, driven by strong organic growth and strategic acquisitions.
  • 2The Corporate Payments segment was a significant growth driver, with revenues increasing by 27.5% year-over-year, reflecting strong performance in AP automation and cross-border solutions.
  • 3EBITDA margin expanded to 53.1% in 2023, up from 51.6% in 2022, indicating improved operational efficiency and profitability.
  • 4The company completed several key acquisitions in 2023, including PayByPhone Technologies (parking), Mina Digital (EV charging software), and Global Reach (cross-border payments), bolstering its service offerings and geographic reach.
  • 5Corpay generated $2.1 billion in net cash provided by operating activities in 2023, a significant increase from $754.8 million in 2022, demonstrating strong cash flow generation.
  • 6The company repurchased $687 million of its common stock in 2023 under its share repurchase program, reflecting a commitment to returning capital to shareholders.
  • 7Corpay is transitioning its brand from FLEETCOR to Corpay, Inc. and its NYSE ticker symbol from FLT to CPAY in March 2024.

Frequently Asked Questions

Corpay reported consolidated revenues of $3.76 billion in 2023, representing a 9.6% increase compared to the prior year. This growth was driven by a combination of organic growth (10%) and contributions from acquisitions, partially offset by macroeconomic factors and the disposition of its Russia business.

The Corporate Payments segment showed the strongest performance with a 27.5% increase in revenue, reaching $981.1 million in 2023. This was driven by strong organic revenue growth of 19%, particularly in AP automation and cross-border solutions, and contributions from recent acquisitions.

Corpay had $6.72 billion in total debt at the end of 2023. The company has actively managed its interest rate risk by entering into interest rate swap contracts covering $4.0 billion of its variable-rate debt, aiming to reduce the variability of interest payments. Interest expense increased significantly year-over-year due to rising interest rates on borrowings and net cash used in financing activities.

Corpay, Inc. (formerly FLEETCOR) is rebranding and changing its NYSE ticker from FLT to CPAY in March 2024. This rebranding signifies the company's evolution and broader strategy beyond its historical focus on fuel cards, reflecting its diversified payment solutions and integrated offerings across various business expense management categories.