Corpay Inc Q3 2024 Earnings Call Summary

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

Question: Tien-Tsin Huang - JPMorgan - Analyst : I just want to ask on new sales, if that's okay. Just a couple of questions there. How did the third quarter come in versus plan? And how quickly can the new sales reorg and the CRO here produce results in your mind?

Question: Tien-Tsin Huang - JPMorgan - Analyst : Okay. No, that's great to hear. And then just my follow-up just thinking about visibility into '25. I know we're so got certainty on the election, and we'll see what happens with rates here, but double-digit growth at this point? How do you feel about visibility there, Ron versus 90 days ago or even same time this time last year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 10:00PM, CPAY.N - Q3 2024 Corpay Inc Earnings Call

Question: Christopher Svensson - Deutsche Bank - Analyst : Sorry about that. I wanted to ask about North American fleet still remains a little bit of a drag on overall growth. And I know one of the other players in the space recently talked about some macro-driven softness there. So wondering if you can call out some of the broader trends you're seeing in that business. I know you mentioned same-store sales flat in 3Q, but any call-outs you have on trends quarter to date? And then maybe more importantly, your 25 outlook calls for North American fleet to return to positive growth. So can you talk about your confidence, maybe follow-up on Tien-Tsin's questions about visibility into that positive inflection sort of beyond the sales work changes that you mentioned?

Question: Christopher Svensson - Deutsche Bank - Analyst : Got it. That's helpful. And then another question with regard to the '25 outlook. I think you mentioned a couple of the key assumptions being the net impact of lower interest rates and higher taxes. So hoping you could drill down into each of those a little more. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 10:00PM, CPAY.N - Q3 2024 Corpay Inc Earnings Call So on interest rates, obviously, lower interest rate impact to interest expense. But I wanted to ask about the impact of flow revenue, particularly within corporate payments. I know it's not something you manage the business for probably spend two seconds thinking

Question: David Koning - Robert W. Baird & Co., Inc. - Analyst : I guess, first of all, the growth is so good in Q4, and then obviously it's good next year, too. But what's in Q4, the 13% that if we look at next year at that's not totally sustainable. It seem lodging would probably get better next year, not worse. So what is going to be different in Q4 than the rest of next year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 10:00PM, CPAY.N - Q3 2024 Corpay Inc Earnings Call

Question: David Koning - Robert W. Baird & Co., Inc. - Analyst : Got you. Yeah, that makes sense. And maybe a quick follow-up. Just corporate mix of growth in volume and yield was super strong this quarter, volume decel. Was that just purely the mix of what was happening?

Question: Sanjay Sakhrani - Keefe, Bruyette & Woods North America - Analyst : Ron and Tom, you guys talked about a pipeline and M&A pipeline. I'm just curious sort of what's in there. I know there's more on the share buyback. But as we think about where you're going to allocate your capital next, I mean, is it M&A more so than buyback given some of the valuations are compressed? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 10:00PM, CPAY.N - Q3 2024 Corpay Inc Earnings Call

Question: Sanjay Sakhrani - Keefe, Bruyette & Woods North America - Analyst : I guess just to follow up, I know you talked just on that previous question about the acceleration and then the comps and stuff. I guess as we think about this acceleration, I mean, you said you peaked into October, it looks good. Where is there any risk in the numbers? I mean, it seems like things are progressing quite well. But you're calling for a pretty decent acceleration in the fourth quarter. I'm just curious as we look at these, is it just all comps and therefore, you're pretty comfortable? Because sometimes the comp thing doesn't work either. Just curious.

Question: Peter Christiansen - Citi - Analyst : This for the question here, really nice trend because of some results. Cross-sell has been an initiative in the past, granted. We've had to pivot the business the micro accounts in between that last effort. Just trying to see how you're going about cross-sell differently this time around and what makes you confident that you see that this is a more viable opportunity in '24 and outside?

Question: Peter Christiansen - Citi - Analyst : I appreciate that. It certainly sounds more encouraging this time around. I did wanted to ask a little bit about the preview for '25, super helpful. Appreciate the initial preliminary look there. Just curious on view on margins generally. Obviously, there's going to be a lot of factors that could influence that over the year. But at least from what you're looking at now, do you see that as a component to earnings growth next year? Thank you.

Question: Rufus Hone - BMO Capital Markets - Analyst : Sorry, I joined the call a little late, so hopefully it hasn't been asked. But on corporate payments, the gross sales performance looks really strong and you noted 40% growth in cross-border. I think about the retention there is slightly better than the Corpay average. So how are you thinking about the organic growth in that segment heading into 2025 with that kind of sales traction, obviously, moving pieces from the acquisitions? But any thoughts there would be great.