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. "