WEX posts record Q1 results, raises full-year guidance

Photo / Tim Greenway WEX Inc. headquarters in Portland, on the city's East End.

Write a Comment

WEX Inc. (NYSE: WEX), the Portland-based financial technology service provider, on Thursday posted a 26% jump in first-quarter revenue to a record $518 million and raised its full-year financial guidance for 2022.

Adjusted net income attributable to shareholders was $122.8 million, or $2.71 per diluted share, in the first quarter. That compares to a net loss of $2.6 million a year earlier.

First-quarter revenue rose 26% to $517.5 million from $410.8 million a year earlier. The increase reflects a $41.1 million bump from fuel prices and a $2.8 million negative impact from foreign exchange rates.

"On an adjusted basis, the first quarter of 2022 was the most profitable in WEX's history, as we continue to execute well on all fronts," said Jen Kimball, the company's interim chief financial officer. "Continued recovery in travel volumes, a strong increase in fuel volumes, a very good open enrollment season and higher fuel prices all contributed to record quarterly revenue."

On the basis of a strong first quarter, WEX raised its full-year financial guidance. The company said it now expects revenue to be in the range of $2.155 billion to $2.195 billion, up from a previous range of $2.05 billion to $2.09 billion.

Adjusted net income is now expected to be in the range of $569 million to $588 million, or $12.40 to $12.80 per diluted share, an increase from the prior guidance range of $517 million to $536 million, or $11.20 to $11.60 per diluted share.

The company, led by Chair and CEO Melissa Smith, earlier this week named Jagtar Narula as its next CFO, effective May 25. Narula is currently CFO of 3D Systems Corp. (NYSE: DDD), a printing technology developer in Rock Hill, S.C., and has held several leadership roles at Xerox.

In Thursday's results release, WEX also reported that its travel and corporate solutions segment purchase volume grew 93% to $11.8 billion from $6.1 billion in the first quarter of 2021. Among other divisions, health and employee benefit solutions' average number of Software-as-a-Service accounts in the U.S. grew 15% to 17.8 million from 15.5 million in the first quarter of 2021.

WEX shares were trading 1.63% lower Thursday morning at $161.68, for a market capitalization of around $7.27 billion. The stock is trading 29% lower than a year ago.