FLEETCOR Technologies, Inc. (NYSE:FLT) Q4 2022 Earnings Call Transcript

Page 5 of 11

So in that area, I would say for sure, there will be a broad package of services that will all be sold into the same client. As you move into the SMB thing, I think we’re going to move organizationally towards a more integrated model like you’re saying, because the tech I think frankly is ahead of our org. And so we’re looking at starting to consolidate the vehicle-related purchases. So if you’re sitting in a car, and you buy fuel or you recharge on EV or you pay for a toll, when you go into a parking spot, whatever, all of those, even 92% of our Lodging clients drive a company vehicle, you know, the tree cutting truck to the to the actual hotel. So we’re in the business, mostly of vehicles, company vehicles running around and us helping make the payments.

And so though, it’s a way more super-related thing than what we’ve talked about before as though they’re discrete things. And so, you’ll see us start to move organizationally, more to looking at that set of solutions as vehicle, you know, related payments, and then the Corporate Payments again, as the thing for the middle market.

Ramsey El-Assal: That was super helpful. It makes a ton of sense. A quick follow-up for me. I think on the 2023 guidance, you were able to call out in the course of the call a segment-specific expectations for Corporate Payments. And I think Alissa mentioned something for tolls and fuel. Would you mind rounding that out and just giving us your expectations for Lodging and if applicable gifts for the year so we for sort of modeling purposes?

Ron Clarke: Yeah, sure. So again, it’s that the midpoint would be 10. Overall, so fleet kind of mid-single, but weaker first half, stronger second half. Lodging in Brazil, mid-teens, maybe a smidge below 50 and a smidge above and Corporate Payments, even with the channel and I’m going to give another probably 20 you know, maybe north of 20 and obviously way north of 20 if you kick out the channel. So that’s the mix that rounds to 10. And again, you guys have heard this before, you know, we’re super thoughtful on the design when we saw the super micro segment weaken we just literally reallocated I just said okay, I’m going to pour in terms of marketing and sales investment more into the middle market. You know, that Darrin brought up earlier that has you know, not many, certainly not as many macro kind of risks and basically just kind of, you know, tread water a little bit until we see more about how this you know micro and SMB segment plays out this year.

So we’re kind of de-risking the plan a bit, I tell you.

Ramsey El-Assal: Fantastic. Thanks, Ron. Appreciate it.

Operator: And our next question will come from Sheriq Sumar with Evercore ISI. Please go ahead.

Sheriq Sumar: Hey, thanks a lot for taking my question. I have a question on the 2023 outlook, especially on the share count, it says $75 million for the full year. Does that assume any sort of buybacks throughout the year? Or it does not? And if it does not, then would there be more upside to the EPS assuming that you accelerate the buyback throughout the year?

Page 5 of 11