CORPAY, INC. (FLT)·Q2 2024 Earnings Summary

Executive Summary

• Q2 2024 results were slightly ahead of internal expectations, with revenue $975.7M (+3% YoY) and adjusted diluted EPS $4.55 (+8% YoY), while EBITDA margin expanded 60 bps to 53.1% .
• Corporate Payments remained the growth engine (+17–18% YoY), Vehicle Payments were flat, and Lodging declined 10% YoY; same‑store sales, new sales, and retention improved meaningfully, supporting a stronger 2H setup .
• FY24 guidance was updated: revenue range narrowed (midpoint unchanged at ~$4.0B), GAAP EPS lowered, adjusted EPS midpoint maintained; Q3 guide calls for revenue $1.015–$1.035B and adjusted EPS $4.90–$5.00, signaling sequential growth .
• Strategic catalysts: Paymerang closed July 1 (adding $25–$35M FY24 revenue), and GPS Capital Markets expected early 2025; management expects Corporate Payments to approach ~40% of company by end of 2025 .

What Went Well and What Went Wrong

What Went Well

• Corporate Payments revenue grew high teens, with spend volume up 19% and revenue per spend holding; management reiterated the segment is on track to ~40% of company by end of 2025 .
• Execution improved across key commercial metrics: same‑store sales turned flat, new bookings up 21%, and retention improved to ~92% in the quarter (per call highlights) .
• Profitability strengthened: EBITDA rose to $517.7M (+4% YoY) and margin expanded to 53.1% (+60 bps YoY); CFO highlighted disciplined OpEx and 2.2M shares repurchased in Q2 (3.3M YTD) .

What Went Wrong

• Lodging revenue fell 10% YoY and room nights declined 6%, with management citing slower lodging recovery versus May outlook .
• GAAP FY24 EPS guidance was lowered (midpoint to $15.00 from $15.20), reflecting slightly unfavorable FX, fuel prices, and lodging softness, despite Paymerang contribution .
• Interest expense assumptions increased to $370–$390M for FY24 (from $350–$380M in May), compressing GAAP net income outlook .

Financial Results

Segment revenue breakdown:

KPIs:

Geography mix:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Our results were slightly ahead of our expectations. Our most recent business trends, including same store sales, new sales and customer retention, all meaningfully improved in the second quarter, which bodes well for our 2024 exit.” — Ron Clarke, Chairman & CEO .
• “Our Corporate Payments revenue continued to grow in the high teens and with the addition of Paymerang on July 1st and GPS Capital Markets expected in early 2025, that business is well on its way to becoming 40% of the company by the end of 2025.” — Ron Clarke .
• “Our EBITDA margin improved 60 bps, and we repurchased 2.2 million shares in the quarter. This brings our total repurchases to 3.3 million shares for the year.” — Tom Panther, CFO .
• “Third quarter revenues are expected to be between $1,015 million and $1,035 million, and adjusted net income per diluted share between $4.90 and $5.00.” — Tom Panther .

Q&A Highlights

• Organic revenue growth and mix: Company cited ~6% organic growth in Q2, with strong gains in Corporate Payments and Brazil .
• Commercial momentum: New bookings up 21%; corporate payments sales up 28%; retention ~92%; same‑store sales improved to flat .
• Margin trajectory: Management expects operating leverage to drive margin expansion of ~200–250 bps from Q2 to Q4 with sequential revenue growth .
• Segment color: North American fleet mid‑single‑digit growth; proprietary fuel products +30%; Lodging sales up 36% despite revenue headwinds .

Estimates Context

• S&P Global Wall Street consensus data was unavailable at time of drafting due to API limits; therefore, comparisons to consensus cannot be provided. Management stated Q2 results were “slightly ahead of our expectations.” .
• Given the FY24 guidance updates (GAAP EPS lowered; adjusted EPS midpoint maintained; interest expense raised), Street models may need to adjust GAAP earnings and interest expense assumptions while maintaining adjusted EPS trajectory .

Key Takeaways for Investors

• Mix shift to Corporate Payments continues; Paymerang closed and GPS planned for early 2025 should reinforce double‑digit segment growth and margin durability .
• Profitability is improving: EBITDA margin expanded to 53.1%; management guides further expansion into Q4 on operating leverage and sequential revenue acceleration .
• Lodging remains the key headwind; watch for stabilization and recovery pace relative to guidance assumptions (slower than May outlook) .
• Macro sensitivities persist (FX, fuel, rates); FY24 guidance explicitly incorporates slightly unfavorable FX/fuel and higher interest expense vs May .
• Capital allocation remains supportive (2.2M Q2 buybacks; 3.3M YTD) while balance sheet capacity supports M&A-led growth .
• Near‑term trading: Q3 guide implies sequential revenue and EPS growth; delivery on margin expansion and Lodging stabilization are likely stock reaction catalysts. .

Source Documents Read In Full

• Q2 2024 8‑K Item 2.02 and Exhibit 99.1 press release (financials, guidance, KPIs, segments, quotes) .
• Q1 2024 8‑K press release (prior quarter benchmarks and guidance) .
• Q4 2023 8‑K press release (two quarters back benchmarks, segment context) .
• Investor relations press release page confirming Q2 materials (for corroboration) .
• Call highlights and themes (third‑party transcript summary due to transcript access constraints) .
• IR events page with Q2 webcast and supporting materials .

Notes: S&P Global consensus estimates were unavailable at time of drafting due to API rate limits; therefore, consensus comparisons are not included.