Guidance and Confidence in Fundamentals
Q: How confident are you in underlying fundamentals given Corporate Payment yields fell?
A: We remain confident in our outlook for next year, with line of sight into our business. In 2023, we grew revenue by 13% including fuel prices and FX. Our midpoint guidance for 2024 is 9% growth on the same basis. We expect to continue our sales momentum from 2023 into 2024, benefit from pricing levers in mobility, annualization of credit policy changes, and full-year contributions from acquisitions. In Corporate Payments, we anticipate growth in the non-travel segment to continue, driven by our embedded payments product and success with our direct sales force. We expect growth in our travel business to moderate in 2024 after a 40% spend volume growth in Q4 2023.

Medium-Term Targets in Corporate Payments
Q: Do you still expect 10–15% medium-term growth in Corporate Payments?
A: Our long-term targets for Corporate Payments remain at 10–15% growth. However, in 2024 we expect moderation due to the exceptionally strong travel growth in 2023. We are confident in achieving our long-term targets due to the strong ramp we are seeing in our non-travel business.

Macro Outlook and GDP Assumptions
Q: Are you being conservative with GDP assumptions in guidance?
A: Our planning uses an average GDP forecast of about 1.5%, based on surveys from around 20 institutions including banks, Moody's, S&P, and the Fed. We are not seeing any trends that cause additional caution. Same-store sales were down 1.5% in North American fleet and 2% over-the-road in Q4, some of which may be weather-related. January trends are in line with expectations.

Mobility Segment Guidance and Acceleration
Q: How do you see Mobility segment growth through the year?
A: We expect acceleration in the Mobility segment over the course of 2024. The acquisition of Payzer adds about 2 percentage points to growth. In 2023, lower late fees due to tighter credit policies caused a ~3% drag on revenue. In 2024, we are not further tightening credit, so this drag will diminish. We anticipate acceleration in both gallons and revenue as we lap these factors.

Use of Cash: Share Buybacks and M&A
Q: What's the plan for use of cash this year?
A: Our intention is to use cash both for acquisitions and share buybacks. We bought back 1.7 million shares last year and believe our stock remains a good value. We will also evaluate M&A opportunities as another use of capital.

Benefits Segment Growth Targets
Q: Is high single-digit account growth the normalized level in Benefits?
A: According to Devenir's report, long-term HSA growth is projected at 10%, still in double digits. While we've seen some cycles with more non-decisions, we feel confident in our ability to grow accounts over the long term. Our custodial asset base is outpacing account growth, significantly increasing revenue per account. Cross-selling additional products and rising healthcare costs are expected to drive higher purchase volumes. These factors support our long-term growth expectations, though we are guiding below that in 2024 based on current observations.

Interest Rate Impact on Mobility Revenue
Q: How will interest rate changes affect Mobility revenue?
A: The increase in the interchange rate in Mobility was due to both interest rate tailwinds and improved merchant pricing. We expect a slight drag on Mobility revenue in 2024 due to anticipated rate reductions of five quarter-point cuts. A 100 basis point movement in rates impacts Mobility revenue by about $50 million annually.

Strong Sales Momentum in Mobility
Q: What's driving strong sales momentum in Mobility?
A: We've had a multichannel approach with over 20 branded partnerships and increased focus on digital channels. Improved marketing efforts have led to growth in larger, more profitable accounts, with reduced sales costs. Changes in credit practices required rebooting application volumes, and we're seeing the benefits in improved application quality and profitability.

Same-Store Sales in Fleet Business
Q: What are you seeing in same-store sales in Fleet?
A: In Q4, same-store sales were down 1.5% in North American fleet and 2% over-the-road. This decline was broad across categories, which is unusual, and may be weather-related. Customers indicate stabilization but are not anticipating a significant rebound soon, which we've factored into our guidance.

Impact of Acquisitions (Payzer)
Q: What is the contribution of acquisitions like Payzer?
A: Payzer is expected to continue growing at 20% in our 2024 guidance. Combined with other acquisitions, they contribute 2–3% to our overall revenue growth targets. Payzer was dilutive last year but is moving towards accretion during the year, providing a lift in revenue but not materially impacting earnings.

Venture Capital Fund Investments
Q: Any early learnings from your venture capital fund?
A: Our investments have allowed us to learn in the early-stage marketplace without significant capital deployment. We've made a few investments in pre-revenue companies solving specific niches. These investments help us expose new functionalities to our customers via APIs, fostering an open network.