10-QPeriod: Q2 FY2024

CORPAY, INC. Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 9, 2024For Securities:CPAY

Summary

Corpay, Inc. (CPAY) reported solid performance for the quarter ending June 30, 2024, with revenues increasing by 2.9% year-over-year to $975.7 million. Net income attributable to Corpay also saw a healthy increase of 5.0% to $251.6 million, or $3.52 per diluted share. This growth was driven by strong organic revenue expansion, particularly in the Corporate Payments segment, which saw a 17.3% revenue increase, and solid contributions from acquisitions. Despite some headwinds in the Lodging Payments segment, which experienced a 10.4% revenue decline, and the ongoing impact of macroeconomic factors and foreign currency fluctuations, the company demonstrated resilience. Corpay continues to invest in growth initiatives, including strategic acquisitions like Paymerang and GPS Capital Markets, signaling a commitment to expanding its market presence and service offerings. The company also actively manages its capital through share repurchases and maintains a strong liquidity position.

Financial Highlights

49 data points
Beta

Revenue

$975.71M

Net Income

$251.66M

25.8% Net Margin

EPS (Diluted)

$3.52

Total Assets

$16.20B

Cash & Equivalents

$1.36B

Free Cash Flow

$496.82M

Financial Statements
Beta
Revenue$975.71M
Operating Income$433.34M
Net Income$251.66M
EPS (Basic)$3.59
EPS (Diluted)$3.52
Shares Outstanding (Basic)70.11M
Shares Outstanding (Diluted)71.50M

Key Highlights

  • 1Consolidated revenues increased by 2.9% to $975.7 million for the three months ended June 30, 2024, compared to $948.2 million in the prior year period.
  • 2Net income attributable to Corpay grew by 5.0% to $251.6 million, resulting in diluted earnings per share of $3.52, up from $3.20 in the prior year.
  • 3Corporate Payments segment revenue saw a significant increase of 17.3% to $288.5 million, driven by strong organic growth in spend and transaction volumes.
  • 4The company repurchased approximately $949.1 million of its common stock during the six months ended June 30, 2024, as part of its ongoing stock repurchase program.
  • 5Corpay announced significant acquisitions, including the completed acquisition of Paymerang for $469 million and the pending acquisition of GPS Capital Markets for $725 million, aimed at expanding its service offerings and market reach.
  • 6A portion of the U.S. division of the Vehicle Payments segment has been classified as assets held for sale, with the transaction expected to close in the fourth quarter of 2024.
  • 7Despite a decline in the Lodging Payments segment, overall company performance was supported by robust growth in other segments and strategic initiatives.

Frequently Asked Questions

For the three months ended June 30, 2024, Corpay reported consolidated revenues of $975.7 million, an increase of 2.9% compared to the prior year period. Net income attributable to Corpay was $251.6 million, a 5.0% increase year-over-year, resulting in diluted earnings per share of $3.52.

The Corporate Payments segment was the primary driver of revenue growth, increasing by 17.3% to $288.5 million. The Vehicle Payments segment showed a slight increase of 0.1% to $510.3 million, while the Lodging Payments segment experienced a decrease of 10.4% to $122.4 million.

Corpay's growth is driven by organic expansion, particularly in its Corporate Payments segment, and strategic acquisitions. Notable recent activities include the acquisition of Paymerang and the agreement to acquire GPS Capital Markets, which are expected to enhance its offerings in accounts payable automation and cross-border/treasury management solutions, respectively. The company is also actively repurchasing its stock.

Yes, Corpay has classified certain non-core assets within the U.S. division of its Vehicle Payments segment as held for sale, with an expected closing in the fourth quarter of 2024. The company also completed the disposition of its Russia business in August 2023, which has impacted year-over-year comparisons.