WEX (WEX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached a record $673.5 million, up 8% year-over-year, with strong growth across all segments and recent acquisitions.

• Adjusted net income per diluted share was $3.91, up 8% year-over-year, exceeding guidance.

• Total volume processed grew 9% year-over-year to $60.1 billion, with all segments contributing.

• Net income for Q2 2024 was $77.0 million, down from $95.3 million in Q2 2023.

• Achieved $100 million in run rate cost savings ahead of schedule and advanced strategic initiatives in product expansion and digital transformation.

Financial highlights

• Q2 total revenue: $673.5 million, 8% increase over Q2 2023; over 80% recurring revenue.

• GAAP net income: $77 million ($1.83 per share); non-GAAP adjusted net income: $164 million ($3.91 per share), up 8% year-over-year.

• Adjusted operating income margin: 40.7%, up from 40.3% last year.

• Quarterly adjusted free cash flow: $161 million.

• Repurchased $174 million in shares in H1, including $100 million in Q2 and $70 million in July; $300 million accelerated buyback planned.

Outlook and guidance

• Q3 2024 revenue expected between $688 million-$698 million; adjusted net income per diluted share $4.42-$4.52.

• Full-year 2024 revenue guidance: $2.68 billion-$2.72 billion; adjusted net income per diluted share $15.98-$16.38.

• Guidance reduced by $50 million in revenue and $0.17 in EPS at the midpoint, mainly due to Corporate Payments segment softness.

• Guidance assumes average U.S. retail fuel prices of $3.65 (Q3) and $3.61 (full year) per gallon.

• Travel-related volumes expected to remain soft in H2; non-travel Corporate Payments and other segments remain strong.