So we’re buyers of our stock. Let’s say, 3x leverage, we’ll go higher. For a deal, we do have again a few interesting things in this consumer space that have surfaced and a couple in our core Corporate Payments base that we’re chasing. So like always, I’d say, those will be the two main uses. I think we’ll generate, I don’t know, low $1 billion to $1.3 billion-ish. I think it’s in our early look at next year, plus we’ve got leverage still, right, where we’re sitting today. And the EBITDA will grow next year. So a handful of deals and buy our stock back would be the order.
Peter Christiansen: And then longer-term growth versus margin, are you coming out any differently post the review or as you go through the progress — process?
Ronald Clarke: Yes, good question. So if you look at our print for 3 quarters and even into our guide, I think we’ve stepped up sequentially, as we said, right? EBITDA margin, I think I quoted between 54% and 55% this quarter. And I think Tom and I look at it kind of the same number for Q4. We kind of looked at our plan for next year, similarly, which gives us a little more money because we’ve kind of gone past some of these capability acquisitions. So I’d say we’ll ramp up the sales and marketing investments a bit but look, initially at least, to try to keep the exit of our margin kind of between 54% and 55% as kind of the target for next year.
Operator: And your next question comes from the line of Mihir Bhatia from Bank of America.
Mihir Bhatia: The first question I had, I just wanted to go back to the fleet product transformation, so fleet segment transformation strategy. And on point one, where you talk about the Fuel+ business card, I wanted to ask a little bit more, if you could talk a little bit more about that. How is that different than the Beyond Fuel strategy that I think you all had a couple of years ago? I’m just trying to understand what kind of growth, et cetera, you expect that strategy to drive?
Ronald Clarke: Yes. It’s a good question. So let me start by saying that most of the competition for the prospects that we’re trying to get are on business cards. So in the older days, there was cash and house accounts and other things. And now when we look at the customers that we want to have that we don’t have, many are on business cards. And some of those are on our competitors’ fuel cards as well. And so the idea is really to go to new accounts with a combined — effectively, a business card and a fuel card in one. So — and target that against verticals that use fuel cards that have people in the field. Think of like field services like HVAC or construction, things like that. And so that’s the basic idea that we’ve now wrapped — I don’t if you guys remember, we bought a company about 2 years ago called Roger that we re-branded as Corpay One.
So we’ve wrapped all that technology now around a business card, so that it’s mobile-centric kind of automated expense capture and stuff around the business card, and then connected that to our proprietary fuel card capabilities and networks. And so what you’ve got is a business card that’s a little more high tech than some of the bank cards, combined to a fuel card that has controls and advantaged economics, and it’s bundled into kind of one package and one account. And so the testing on it has been super duper good, and we’re literally in the market selling the products now. So the biggest difference, I’d say, is the focus. It’s new accounts versus back to the base. It’s in a couple of verticals. And the product has been revamped or rewrapped with kind of some modern technology.
Mihir Bhatia: Got it. And then just — well, maybe just switching back to the Corporate Payments segment for a second. And it’s a little bit of a repeat of earlier question about just what is driving that strength that you were seeing? Like I appreciate that you are a little bit more mid-market. But some of the factors like just macro slowdown or large suppliers choosing to push back or not accept virtual card payments seem like that shouldn’t be as big of an issue, whether you’re small or medium, whether your customers are small or medium. And I was just wondering, are there particular areas of strength in that Corporate Payments segment that you would call out? I’m just trying to understand a little bit about what’s really driving so much strength for you guys. Or has it just been a lot of new sales? What’s driving that?
Ronald Clarke: Yes. I mean, I think you can see it a bit in the KPIs that it’s volume. I mean it’s really not rate. So in the 2 big businesses there, the payables business and the FX business, it’s volume and it’s what you said. I think I just quoted it that in Q3, again, I think the sales of those businesses were up 28% year-over-year over the prior, and we had a blockbuster first half. So you’ve got this huge implementation backlog effectively of new volume, new business that’s coming on the books, which helps give us the predictability. A lot of the sales we’re making in this quarter or next quarter will obviously be implemented in the spring and the summer next year. So it’s not really complicated. We finally are off humpty-dumpty work of putting a competitive set of offerings together and have made the turn really into marketing and selling them, and they’re doing a great job at it.
So I think it’s pretty straightforward. And then B, we’re getting leverage in that business on the profit side. I think, Tom — it’s looking about $1 billion ballpark, call it $1 billion per year in revenue. And so the scale of the business now and compounding at 20% the incremental revenue, the flow-through margins are 75% to 80% on that stuff. So it’s obviously increasing the EBITDA margin. So it’s just — it’s in a good spot. It’s a giant TAM, and so the game is to just keep chasing, chasing hard after it, because we finally have what we need there.
Operator: And your next question comes from the line of [indiscernible] from UBS.
Unidentified Analyst: Congrats on the strong quarter. I just wanted to ask about how the sales pipeline has been trending in the Fleet business with the pivot to larger customers and how that informs the 2024 outlook for the Fleet business when paired with the new products that you plan to roll out.
