Booking.com Contract Impact
Q: What's the impact of the Booking.com contract renewal?
A: WEX renewed its contract with Booking.com, facing short-term headwinds as Booking transitions some activities in-house. " " This will affect reported purchase volumes and interchange rates, but WEX expects long-term benefits from the continued partnership. " Corporate Payments revenue is still expected to grow in the high single digits, consistent with prior guidance. "

Benefits Growth and HSA Outlook
Q: How will Benefits growth and HSA accounts perform?
A: Excluding the loss of a Medicare Advantage account, total accounts grew by 8%. " WEX anticipates continued strong account growth, aiming to outpace the market. " " Long-term guidance remains at 15%-20% growth for the segment, though anomalies this year may affect results. "

Mobility Margins and Growth
Q: What's the outlook for Mobility margins and revenue growth?
A: Mobility margins are expected to improve over the year due to higher fuel prices, improved late fees, and a better interest rate environment. " Revenue growth is guided at the high end of the long-term range at 8%, with contributions from Payzer and pricing initiatives. " First-quarter growth was 5% excluding fuel prices, up from below 2% in Q4. "

Credit Loss Outlook
Q: Why are credit losses expected to increase in Q2?
A: WEX anticipates slightly higher charge-offs in Q2 based on recent trends. " New credit adjudication models and automated credit line monitoring are being implemented to contain losses. " Credit losses are expected to trend down over the course of the year. "

Guidance and Interest Rates
Q: What changes influenced the guidance adjustments?
A: Adjustments in fuel price assumptions increased EPS guidance. " Interest rates also impact revenue through merchant contracts and HSA assets, but WEX manages interest rate exposure to be neutral at the EPS level. " Fuel-related changes flow through to earnings, while interest rate changes affect revenue but not EPS. "

Corporate Payments Mix
Q: How is the mix between travel and nontravel revenue expected to change?
A: Currently, travel accounts for about 55%-60% of revenue and 70% of spend volume in Corporate Payments. " Over time, spend is expected to normalize as travel rebounds from the pandemic. " Nontravel purchase volume rates are expected to remain stable, with overall growth influenced by the Booking.com transition. "

Direct Sales Growth
Q: How is direct sales impacting Corporate Payments growth?
A: Half of the growth in Corporate Payments came from direct sales outside of travel. " WEX continues to build its pipeline and execute in this area, resulting in sustained growth. " Nontravel payment processing revenue has trended upwards for three consecutive quarters. "

HSA Growth and Rate Cuts
Q: How will HSA growth and rate cuts affect performance?
A: WEX aims to outgrow the market in HSA account growth by continuing sales efforts and cross-selling additional products. " Most HSA balances are in fixed-rate instruments, so expected rate cuts should not significantly impact them. " Guidance includes assumptions of about two rate cuts this year. "

Medicare Advantage Impact
Q: What's the revenue impact of losing the Medicare Advantage account?
A: The loss is expected to impact Benefits revenue growth by a couple of percentage points this year. " Despite this, WEX feels confident in its overall growth trajectory. " "

EPS Guidance and Costs
Q: How do cost savings affect EPS guidance in the second half?
A: WEX front-loaded investments and expects cost reductions to flow through in the second half, supporting EPS growth. " Increased revenues from pricing and volume, along with anticipated cost savings, provide visibility into the EPS trajectory. "

Booking.com Long-term Benefits
Q: What's the long-term opportunity with Booking.com?
A: WEX views the renewed partnership as a long-term opportunity to work on other areas across Booking.com's portfolio, potentially creating new revenue streams. "

Interchange Rate Trends
Q: How will interchange rates in Corporate Payments trend?
A: Interchange rates decreased from Q4 2023 to Q1 2024 due to revenue recognition timing. " Rates are expected to be flat to slightly up for the rest of the year, despite dynamics related to the Booking.com contract. "

Credit Loss Modeling
Q: How is WEX forecasting credit losses?
A: WEX uses sophisticated models to forecast losses and expects a slight increase in Q2, followed by a downward trend over the year. " New systems are being implemented to monitor and manage credit risk. "

Virtual Cards and Sales
Q: What's happening with virtual card attach rates and sales?
A: WEX continues to benefit from the migration to the merchant model in Europe, though growth this quarter was driven more by transaction growth outside Europe. " Direct sales efforts are contributing significantly to growth in Corporate Payments. "