10-QPeriod: Q1 FY2024

CORPAY, INC. Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 9, 2024For Securities:CPAY

Summary

Corpay, Inc. (formerly FLEETCOR Technologies, Inc.) reported solid revenue growth of 3.8% year-over-year for the first quarter of 2024, reaching $935.3 million. This growth was primarily driven by organic increases in transaction and spend volumes, alongside contributions from recent acquisitions, though partially offset by the divestiture of its Russia business. Net income attributable to Corpay increased by 7.0% to $229.8 million, leading to diluted earnings per share of $3.12, up from $2.88 in the prior year period. The company's financial performance demonstrates continued operational strength in its core payment solutions business. The company's balance sheet remains robust, with total assets growing to $15.8 billion. Key liability areas show increases in accounts payable and customer deposits, while debt levels remain significant. Corpay also continues to execute its capital allocation strategy, evidenced by substantial share repurchases, underscoring management's confidence in the company's financial health and future prospects. The company also highlighted the completion of its name change and rebranding to Corpay, Inc. effective March 25, 2024.

Financial Highlights

50 data points
Beta

Revenue

$935.25M

Net Income

$229.80M

24.6% Net Margin

EPS (Diluted)

$3.12

Total Assets

$15.83B

Cash & Equivalents

$1.31B

Free Cash Flow

$308.99M

Financial Statements
Beta
Revenue$935.25M
Operating Income$397.34M
Net Income$229.80M
EPS (Basic)$3.20
EPS (Diluted)$3.12
Shares Outstanding (Basic)71.77M
Shares Outstanding (Diluted)73.55M

Key Highlights

  • 1Revenue increased by 3.8% to $935.3 million for the three months ended March 31, 2024.
  • 2Net income attributable to Corpay rose by 7.0% to $229.8 million.
  • 3Diluted EPS increased to $3.12 from $2.88 in the prior year period.
  • 4The Company completed its corporate name change from FLEETCOR Technologies, Inc. to Corpay, Inc. on March 25, 2024.
  • 5Acquisition of 70% of Zapay, a Brazil-based digital consumer mobility solution, for approximately $56.3 million in March 2024.
  • 6Consolidated operating income increased by 5.9% to $397.3 million.
  • 7Interest expense, net increased by $9.3 million primarily due to rising interest rates.

Frequently Asked Questions

Corpay's revenue growth of 3.8% was primarily driven by organic growth of 6%, stemming from increases in spend and transaction volumes, along with the implementation of new sales and business initiatives. Acquisitions also contributed to the revenue increase, partially offset by the divestiture of the Russia business.

In March 2024, Corpay acquired 70% of Zapay for approximately $56.3 million. Zapay's results have been included in the Vehicle Payments segment from the acquisition date. The acquisition contributed $77.8 million to goodwill and $18.6 million to intangibles on a preliminary basis.

Corpay believes its current cash and borrowing capacity under its Credit Facility and Securitization Facility, along with expected cash flows from operations, are sufficient for at least the next 12 months and into the foreseeable future. As of March 31, 2024, the company had approximately $2.8 billion in total liquidity, including $1.3 billion in unrestricted cash and $1.5 billion available under its Credit Facility.