Corpay Inc at Wolfe Research FinTech Forum Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : <_ALACRA_META_ABSTRACT>So I think, maybe just for the audience, just starting off back from the fourth quarter again and total organic growth, 12%, 26% in Corpay, 8% vehicle, 5% in other, I mean, 1% in lodging. But really just thinking about that in context of the guide, right? You had 10% to 12% in '25. So just start off by what gives you guys confidence that these revenue targets are achieve able beyond the period of what I know has been relatively easier comps going up all the way through the third quarter?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : So under the surface. I mean, again, we get this question a lot, but your growth rates have accelerated, right? I mean, at the end of the day, some of it is hard to distill what's actually just really the underlying drivers of the business and the sales organization kicking into gear in some of your categories and what's just comps, right, or even macro to some degree. So just to make sure we're on the same page, I mean, your conviction in that sustainability remains as high now as it did when you gave guidance, I suppose?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : We've had some fits and starts on sales actually if you go back a couple of years now, right? And so that impacted growth to your point. And it seems like it's on a much better trajectory. And I know there's been a new sales org under, I think, CRO, Mike Jeffrey. So if you just help -- what exactly do you see in terms of change in the business under his leadership and what's really going to happen (inaudible)?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : (inaudible).

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Just quickly the freight market, I mean, it's largely lapped the pivot away from micro clients and lead fee headwinds. So just what drives transactions from here? Is it largely a function of just waiting for the freight market to turn more positive or?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Yes.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Just all right. Shifting gears now to corporate payments, which I know has been a topic of focus for us and investors. Just when you think of the growth area, I mean, it's been very strong, 26% organic growth in fourth quarter and you have about a third of that REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 6:30PM, CPAY.N - Corpay Inc at Wolfe Research FinTech Forum business now cross-border, right? And 1/3 AP, full AP in some channel partners. But just if you could explain the benefits and financial impact of offering this multicurrency accounts with NXP, early signs of demand? And maybe even just take it a step back and just talk a little more about the cross-border differentiation. What are you doing for the market that's resonating so much and allowing that growth? Because I think B2B as a percentage of Corpay in general is a big percentage of the -- is a big part of the story.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : That's amazing. I mean so when you put that together with the AP opportunity more broadly, number one, I mean, what kind of cross-sell opportunity is there between the 2 sides and then we can go further into sustainability?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : So the differentiation that you offer, going back for a minute again to cross-border is I mean, obviously, it's a version of something that a business could use that's probably much better than what a bank gives them, right?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Explain why? Why is it so much better than what they can already (inaudible)?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : So going back to the accounts payable side. I mean, it sounds like your focus there has been on software and then converting more and more payments, but help us understand the focus from sales and the efforts on go-to-market around software ownership (inaudible).

Question: Darrin Peller - Wolfe Research, LLC - Analyst : How are you trying to drive higher monetization on those AP accounts? I mean -- at the end of the day, there's been some at least discussion of pushback on virtual card in the industry a little bit.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : So I'm focusing on this because you really hope this could be nearly 40% of your total company revenues. And as we know, there are theoretically multiples for this kind of growth rate business and end market could be very strong relative to your overall 13x of your stock. So it's an interesting dynamic, and it brings to light just what's the next step? So you continue to have strong growth in cross-border. What it sounds like you think AP has room, I suppose?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : On that note, I mean, I know '25, I think, is expected to be a bigger year from an M&A standpoint relative to at least buybacks versus I think it was more balanced than '24. I know Ron is also actually -- Ron's referenced, I believe, potentially larger deals coming up or at least an appetite for potentially larger deals. I don't know how this compares to something like GPS in terms of framework, which was what, over $700 million?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : So just how do we think about that in terms of what your appetite is for size and the size of deals? I imagine corporate payments is a piece of what you're looking at?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : The primary, yes.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : And within Corporate Payments, I mean, when we think about what you might want to have to even round out what you already have in terms of cross-border and AP, what types of assets make sense? Is it something that's capability oriented? Is it something that's geographic oriented?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Okay. And it certainly seems like with the dislocation of the markets these days, there maybe both private and public, I think there could be some more opportunities in Corporate Payments.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : But before we leave -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 6:30PM, CPAY.N - Corpay Inc at Wolfe Research FinTech Forum

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Real demand destruction.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Okay. Can we -- to your point, switching to the next segment. Just quickly on vehicles --

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Vehicles and fleet. I mean just a reminder of the mix of the business for us for a moment and then we'll go into what some of the opportunities are across the segment going forward?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : And just to that point, I mean, the growth rate of the overall segment is supposed to be low double digits, right?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : I'm sorry, I think I wrote down low double from the last time but --

Question: Darrin Peller - Wolfe Research, LLC - Analyst : We're trying. We're trying. Just the expectation for North American fleet?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : And then just maybe going a little further into the Brazil area just because it's definitely an interesting one, and you've done more deals there. If you could take a moment and just set the stage around the competitive landscape for your product there where you stand in terms of market share?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : I still think that's an area of the market probably can use to do more diligence on from perspective of assets you guys really have there. Just last one is just for on the lodging business. I mean is that an area that you want to keep or you want to divest?

Question: Darrin Peller - Wolfe Research, LLC - Analyst : I know you have a flight to catch --

Question: Darrin Peller - Wolfe Research, LLC - Analyst : To get ready for your next step in life in retirement.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : I mean, really moving on, yeah.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Good luck in the next stage. I know. It actually sounds like a really cool place you're going so, all the best.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Thank you for everything.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Thanks, guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 6:30PM, CPAY.N - Corpay Inc at Wolfe Research FinTech Forum