WEX Inc. (WEX) Reports Q3 2023 Financial Results
Q3 revenue increased 6% YoY to a record $651 million, driven by 34% growth in the Benefits segment and 19% in the Corporate Payments segment.
Q3 GAAP net income was $0.42 per diluted share; Q3 adjusted net income was $4.05 per diluted share.
Q3 GAAP operating income margin of 26.8% and adjusted operating income margin of 41.8%.
WEX Inc. raises full-year 2023 financial guidance.
On October 26, 2023, WEX Inc. (NYSE:WEX), a global commerce platform, reported its financial results for Q3 2023. The company achieved record highs for quarterly revenue and adjusted net income per diluted share, despite fuel price headwinds. This reflects the company's strong momentum and resilient business model.
Financial Highlights
WEX Inc.'s total revenue for Q3 2023 increased 6% to $651.4 million from $616.1 million for Q3 2022. This increase includes a $31.9 million unfavorable impact from fuel prices and spreads and a $5.3 million favorable impact from foreign exchange rates.
Net income attributable to shareholders on a GAAP basis increased by $62.5 million to a net income of $18.4 million, or $0.42 per diluted share, for Q3 2023, compared with a net loss of $44.1 million, or $1.00 per diluted share, for Q3 2022. The company's adjusted net income attributable to shareholders, a non-GAAP measure, was $176.8 million for Q3 2023, or $4.05 per diluted share, up 15% per diluted share from $157.8 million, or $3.51 per diluted share, for the same period last year.
Performance Metrics
Total volume across all segments was $61.9 billion, an increase of 7.6% from Q3 2022. The average number of vehicles serviced was approximately 19.1 million, an increase of 4% from Q3 2022. Benefits average number of Software-as-a-Service (SaaS) accounts grew 9% to 19.9 million from 18.2 million in Q3 2022. Corporate Payments purchase volume grew 35% to $27.9 billion from $20.7 billion in Q3 2022.
Financial Guidance
For Q4 2023, the company expects revenue in the range of $650 million to $660 million and adjusted net income attributable to shareholders in the range of $3.65 to $3.75 per diluted share. For the full year 2023, the company now expects revenue in the range of $2.53 billion to $2.54 billion, up from the prior guidance range of $2.50 billion to $2.52 billion. Adjusted net income attributable to shareholders is now expected to be in the range of $14.64 to $14.74 per diluted share, an increase from the prior guidance range of $14.15 to $14.35 per diluted share.
Payzer Acquisition
WEX Inc. announced the signing of an agreement to acquire Payzer, a high growth, cloud-based, field service management software provider. The acquisition will advance WEXs growth strategy of expanding its product suite and creating additional cross-sell opportunities by providing a new, scalable SaaS solution for its approximately 150,000 small business customers who operate field service companies.
Explore the complete 8-K earnings release (here) from WEX Inc for further details.
This article first appeared on GuruFocus.
