Executive Summary

Q3 2023 print: revenue $970.9M (+9% YoY), GAAP diluted EPS $3.64 (+10% YoY), adjusted EPS $4.49 (+6% YoY); modest misses vs consensus on revenue (-$7.9M) and adjusted EPS (-$0.01). Organic revenue growth was 10%, led by 20% growth in Corporate Payments .
EBITDA rose 13% to $528.9M and margin expanded 225 bps to 54.5% on disciplined expense management; operating income grew 14% to $445.0M .
Portfolio actions and capital allocation: completed sale of Russia, acquired PayByPhone, and repurchased $530M of stock (including August ASR); these actions and macro shifts drove guidance changes .
FY23 guidance updated: revenues $3.774–$3.804B, adjusted EPS $16.82–$17.12; Q4 guide: revenues $953–$983M and adjusted EPS $4.34–$4.64 .
Near-term catalysts: stabilization in Lodging, continued Corporate Payments growth, vehicle payments optimization post Russia exit/parking add-on, and buybacks; watch fuel spreads, FX and interest expense trajectory in Q4 .

What Went Well and What Went Wrong

What Went Well

Corporate Payments momentum: segment revenues up 31% YoY to $258.8M; spend volume reached $39.4B; management: “Organic revenue growth was 10% … driven by 20% growth in corporate payments” .
Margin expansion: “EBITDA margin expansion of 225 basis points over the prior period” on “solid revenue performance and disciplined expense management” .
Strategic portfolio moves: sale of Russia and acquisition of PayByPhone aligned with strategy to transform vehicle payments; CEO: acquisition is “an important ingredient to our strategy” .

What Went Wrong

Modest consensus misses: adjusted EPS $4.49 missed by $0.01; revenue $970.89M missed by $7.87M, reflecting macro FX/fuel spread headwinds despite underlying growth .
Fleet (vehicle) segment print down 8% YoY to $365.5M, with spreads and Russia disposition weighing; macro-adjusted/pro forma frame shows +4% YoY, but reported still declined .
Interest expense up sharply (+94% YoY to $88.3M) continued to pressure GAAP net income growth versus operating performance .

Financial Results

Metric	Q1 2023	Q2 2023	Q3 2023
Revenue ($USD Millions)	$901.3	$948.2	$970.9
GAAP Diluted EPS ($)	$2.88	$3.20	$3.64
Adjusted EPS ($)	$3.80	$4.19	$4.49
EBITDA ($USD Millions)	$460.0	$497.1	$528.9
EBITDA Margin (%)	51.0%	52.4%	54.5%
Operating Income ($USD Millions)	$375.2	$412.7	$445.0
Net Income ($USD Millions)	$214.8	$239.7	$271.5

Q3 YoY vs Estimates	Q3 2022	Q3 2023	Consensus	Beat/Miss
Revenue ($USD Millions)	$893.0	$970.9	$978.8 (derived: $970.9 + $7.87)	Miss ($7.9M)
Adjusted EPS ($)	$4.24	$4.49	$4.50 (derived: $4.49 + $0.01)	Miss ($0.01)
EBITDA Margin (%)	52.2%	54.5%	n/a	n/a

Segment revenue breakdown (as reported):

Segment ($USD Millions)	Q1 2023	Q2 2023	Q3 2023
Fleet (Vehicle Payments)	$372.7	$382.6	$365.5
Corporate Payments	$227.2	$247.0	$258.8
Lodging	$122.3	$136.6	$141.4
Brazil	$121.7	$126.1	$134.2
Other	$57.3	$56.0	$71.0

Key KPIs:

KPI	Q1 2023	Q2 2023	Q3 2023
Corporate Payments Spend ($USD Millions)	36,526	36,041	39,446
Corporate Payments Rev per Spend (%)	0.62%	0.69%	0.66%
Lodging Room Nights (Millions)	9.4	9.3	9.2
Lodging Rev per Room Night ($)	$13.07	$14.65	$15.41
Brazil Tags (Avg Monthly, Millions)	6.5	6.6	6.7
Brazil Rev per Tag ($)	$18.63	$19.21	$20.16

Macro-adjusted/pro forma revenue (context):

Consolidated Revenue ($USD Millions)	Q2 2023 (Pro Forma & Macro Adjusted)	Q3 2023 (Pro Forma & Macro Adjusted)
Amount	$971.3	$991.1

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenues	FY 2023	$3,836–$3,860M	$3,774–$3,804M	Lowered
Net Income	FY 2023	$1,006–$1,028M	$977–$1,001M	Lowered
Diluted EPS (GAAP)	FY 2023	$13.42–$13.68	$13.14–$13.44	Lowered
Adjusted Net Income	FY 2023	$1,281–$1,303M	$1,252–$1,276M	Lowered
Adjusted EPS	FY 2023	$17.09–$17.35	$16.82–$17.12	Lowered
Interest Expense	FY 2023	$330–$340M	$340–$350M	Raised
Diluted Shares	FY 2023	~75.0M	~74.5M	Lowered (buybacks)
Tax Rate	FY 2023	26–27%	26–27%	Maintained
Revenues	Q4 2023	n/a	$953–$983M	New
Adjusted EPS	Q4 2023	n/a	$4.34–$4.64	New

Q2 guidance for Q3 (point-in-time) vs actual:

Metric	Q3 2023 Guidance (from Q2 release)	Q3 2023 Actual
Revenues	$980–$1,000M	$970.9M
Adjusted EPS	$4.44–$4.64	$4.49

Earnings Call Themes & Trends

Topic	Q1 2023 (Prev Mentions)	Q2 2023 (Prev Mentions)	Q3 2023 (Current)	Trend
Corporate Payments growth	24% YoY; sales +31%; Global Reach acquisition; strong retention	+30% YoY; raised FY guide; interest rate swaps to manage funding	+31% YoY; spend $39.4B; organic +20% driver of total organic growth	Improving/Strong
Vehicle/Fleet segment	+6% YoY; macro-neutral growth positive	+1% YoY; macro headwinds (FX, fuel)	-8% YoY reported; macro-adjusted +4%; parking acquisition; Russia exit	Mixed (reported down, adjusted improving)
Lodging	+29% YoY; rev/night improving	+17% YoY; margin contribution solid	+12% YoY; room nights -7%; FEMA one-time mix fading	Stabilizing
Macro: FX, fuel spreads	Neutralized in organic; headwinds called out	~$20M fuel price and ~$9M FX headwinds; spreads partially positive	Net ~$23M spreads and $12M fuel price negative, offset by +$15M FX; organic +10%	Headwind (spreads), FX improving
Capital allocation	Raised FY guide; margin focus	Entered $2B swaps; guidance raised	Russia exit; PayByPhone acquisition; $530M buybacks (incl. ASR)	Shareholder-friendly
Legal/regulatory	FTC case references in disclosures	Ongoing FTC reference	Forward-looking risk statements and FTC mention	Ongoing monitoring

Management Commentary

CEO Ron Clarke: “We reported another good quarter, with revenues and adjusted net income per share growth of 9% and 6%… Organic revenue growth was 10% for the quarter, driven by 20% growth in corporate payments. Strategically, we completed the acquisition of the world’s second largest mobile parking operator…” .
CFO Tom Panther: “Our results came in ahead of those proforma expectations… EBITDA margin expansion of 225 basis points over the prior period… deployed capital to drive future growth by acquiring PayByPhone and repurchasing $530 million of FLEETCOR stock in the quarter” .
FY outlook context: “We currently expect our fourth quarter revenue and adjusted net income per share to grow approximately 10% and 11%, respectively” .

Q&A Highlights

Corporate Payments outlook: management conveyed confidence in mid-teens organic growth, discussing drivers across payables/AP automation and cross-border, despite float headwinds; emphasis on strong sales execution and client acquisition .
Fleet/vehicle payments: analysts probed organic growth and geography; management noted mixed small-fleet dynamics as they pivot upmarket and outlined consumer vehicle ecosystem ambitions beyond Brazil into U.K. and U.S. .
Near-term guidance confidence: reiterated Q4 organic ~10% with segment cadence, noting October trends had been incorporated into the outlook .
Call logistics/participants reference confirming Q&A coverage .

Estimates Context

Adjusted EPS: $4.49 vs Wall Street consensus $4.50 (miss $0.01); Revenue: $970.89M vs consensus $978.76M (miss $7.87M). Source: Seeking Alpha Q3 2023 transcript summary and consensus comparison .
S&P Global consensus data was unavailable via our tool due to mapping constraints; we relied on publicly available consensus from Seeking Alpha for estimate comparisons. Values retrieved from S&P Global were unavailable.

Key Takeaways for Investors

Quality quarter operationally with expanding margins and double-digit organic growth, but modest headline misses vs consensus likely tempered immediate reaction; monitor Q4 delivery against raised organic targets .
Corporate Payments remains the growth engine (31% YoY), with spend scaling and revenue per dollar stable; continued sales execution and AP automation ramp underpin medium-term thesis .
Vehicle payments print is mixed (reported down, adjusted up); inclusion of PayByPhone and Russia exit reshape segment—watch U.S. small-fleet recovery and pricing/spreads into 2024 .
Strong cash generation and capital deployment (ASR/buybacks) plus deleveraging potential support TSR; diluted share count trending lower aids EPS compounding .
Macro sensitivities remain: fuel spreads are an explicit Q4 headwind vs 4Q22; FX turned net positive; consensus calibration should reflect guidance reset and portfolio changes .
Lodging stabilized with higher revenue per room night despite lower emergency/FEMA activity; a re-acceleration depends on improved sales and mix—upside if demand normalizes .
Near-term trade: expect shares to key off execution vs Q4 guide and Corporate Payments momentum; medium-term, portfolio focus and segment optimization plus margins suggest durable double-digit adjusted EPS growth .

Appendix: Additional Context from Prior Quarters

Q2 2023: revenue $948.2M (+10% YoY), adjusted EPS $4.19; guidance raised then for FY23; entered $2.0B interest rate swaps to hedge floating-rate debt (~60% coverage) .
Q1 2023: revenue $901.3M (+14% YoY), adjusted EPS $3.80; strong sales (+31%) and margin up 100 bps; initial FY23 guide raised .
Russia exit and $450M ASR announced Aug 15, 2023; ASR expected to complete by end of Q3 2023 .

Non-GAAP definitions and reconciliations provided in Exhibits of the Q3 press release (Adjusted Net Income and EPS; EBITDA and margin; macro-adjusted revenue methodology) .

CORPAY, INC. (FLT)·Q3 2023 Earnings Summary