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

Jeff Cantwell: Got it. Okay, great. And just one of the follow-up. Just found an unboxed question earlier you know on EV. And you know, I guess the question that is, just the payment for you is, you know, you’re a $16 billion market cap company and you’re generating the ratio of $3.8 billion of an annual revenue is coming here. So can you just remind us €“ can you cite that revenue opportunity present in EV got, you know, two, three, five years out. We’re obviously trying to pick up this substitution effect, and you know, incremental revenue impacts, et cetera, et cetera. So how would you frame that as we think about our models? Thanks.

Ron Clarke: Yeah, that’s another super good question. So first off, it’s obviously a long time out. But the first thing I’d say is, you know on the defensive side, so on the commercial fleet side, the opportunities, the size of our whole business, right, if you went 40 years into the future, and we’ve got a what a $1.5 billion revenue, global fleet business, the hope is, we replace the business 50 years so that everything was easy, we’d have a $1.5 billion business plus however we’d grow between now and then. But for us, I think the bigger opportunity it’s nearer in, is this consumer lighter vehicle thing that we’re going to get to through the EV carmakers, and through the new gas station operators that are called, you know, charge-point operators.

So the big part of our strategy that we’re spending money on is going offensive and chasing two new segments that are any part of our business, excuse me, today that we think are going to show up sooner, because the vehicles work better, right, the light vehicles. So that’s, I mean, again it’s just a function of adoption. That’s a massive, obviously, right. It’s every, right, every vehicle is not a commercial fleet, you’re into there in terms of the TAM. So it’s a massive, massive business. And I think I said repeatedly, our strategy and the thing is to be the network guy. You know, our company is built on proprietary networks that have unique data that we pick up and then the volume that we have, that creates better economics. And our idea is the same.

We’re going to put together EV acceptance networks where we collect data that’s interesting to clients like what kind of charges are there, is the charger open out if I drive there. And we think that providing that in some simple way is going to be you know super interesting. And we got five or 10 already big EV carmakers using our software in our network to try to reduce you know charge anxiety, right of new buyers. So it’s massive. The question is just when, how long, right before either side, either the commercial side or the consumer side you know gets big.

Jeff Cantwell: Okay, great. That’s super helpful. Thanks so much. And congrats again.

Ron Clarke: Thank you.

Ron Clarke: Hey, Pete. Can you hear us? Yeah, Pete, we can hear you.