Nate Sanson

Nate Sanson inquired about the health of the U.S. trucking sector, specifically regarding overall capacity and the impact of CDL holder removal. He also asked for an update on the ramping of a large public fintech company in Corporate Payments and the reasons for the slight deceleration in direct account volume growth.

Answer

Melissa Smith, Chair and CEO, WEX Inc, stated that the over-the-road sector is still working through a pandemic-induced oversupply, with broader indexes showing volume pressure, and continued supply reduction would be beneficial. She confirmed the new fintech customer is onboarded and ramping as expected, contributing to Q3 and year-end guidance. For the direct business, she noted consistent sales output but a few points of same-store sales softness in the customer base, similar to Mobility, indicating slightly less spending year-over-year.

Nate Sanson from Deutsche Bank inquired about the health of the U.S. trucking sector, specifically regarding overall capacity and the potential impact of CDL holder removals. He also asked for an update on the ramping of a large public fintech embedded payments customer and the slight deceleration in AP Direct volume growth despite increased investments.

Answer

Melissa Smith, Chair and CEO of WEX Inc., explained that the trucking sector continues to grapple with oversupply, and further supply reduction would be beneficial. She confirmed the new fintech customer is onboarding and ramping as expected. Regarding AP Direct, she attributed the 20% volume growth to consistent sales organization output, with any minor deceleration from the prior quarter's 25% due to slight same-store sales softness in the customer base, not sales performance. Jagtar Narula, CFO, affirmed that cohort performance aligns with expectations.