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

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Peter Christiansen: Okay. Sorry about that. I didn’t hear the intro. Hey, thanks for the question. I appreciate that. It’s a clean up here. I just want to dig into the fuel card business a little bit, you know, given some of the pockets of weakness that you called out on the credit side, Ron, are you going to sell any differently in 23s? How are you augmenting your sales strategy there? And then as a follow-up on the partner side of the fuel card business, just wondering if you could shed any color on like RFP activity? Or if there’s any major contract renewals coming up? Any help would be great there. Thanks.

Ron Clarke: You got to tell. So on the first part of the question, hey, what do we do in for selling in 2023? The answer is, yes. There’ll be some different things. So the first thing we’ve done, which we’re about 90 days into is, we’re repointing our digital machine and algorithm to larger accounts. So the guy that runs our digital sales business, tweaked the models effectively to point at what I would call a larger and more creditworthy accounts. So you’ll see that for sure our sales, size of new accounts will go up starting here in Q1 versus Q4. So that’s point one, will modify the targeting of our digital engine. And then number two is. I’ve moved dollars, we’ve reallocated dollars into the Corporate Payments business. So I just said okay, I’m not going to grow sales investment or sales as much in a space that has potentially more macro risk, we’re going to earmark it at least here in 2023.

And in the middle market that we have, you know, there’s more stability, if you will, in the macro. So those are really the two things we’re doing selling-wise. And again, it’s pretty small, but the pile of bad debt, this micro super-duper, new thing, but it’s not big, per se, right against the total business, right, the total revenue. So that’s a fair point. On the second one, there’s not much I’d say, it’s pretty quiet us and the other people to play the game have a lot of long-term contracts, both here and in Europe. So there’s really nothing on the radar, I’d say significant that we’re looking at in 2023.

Peter Christiansen: Yeah. Thank you, gentlemen.

Operator: And our next question will come from Nik Cremo with Credit Suisse. Please go ahead.

Nik Cremo: Hey, good afternoon. Thanks for taking my question. I just wanted to touch back on the Fuel segment first. How did the same-store sales come in across the various parts of that business in the quarter? And just looking to 2023, what parts of your business gives you confidence? The segment can reaccelerate in the back half, given the deceleration we’ve seen in the last few quarters? Thanks.

Alissa Vickery: Yeah, so hey, Nick, it’s Alissa. It’s a good question. I’ll make sure I got all your question. I think you’re asking what is €“ how the same-store sales look, and how are we outlooking?

Ron Clarke: How would you get to the reacceleration?

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