FLEETCOR Technologies, Inc. (NYSE: FLT), a global business payments company, reported financial results “for its first quarter ended March 31, 2023.”
Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc., said:
“We reported a very good first quarter, with fundamental trends driving reported and organic revenue growth of 14% and 12%, respectively. Broad-based strength in new sales, up 31%, and stable customer retention of 91%, drove the results. EBITDA margins were up 100 bps, as a result of tighter expense control, as we focus on improving margins while growing our business,” continued Ron. “Our first quarter performance is a great start to the year, and we are raising our guidance as a result of this over performance.”
Financial Results for First Quarter of 2023:
GAAP Results
- Revenues increased 14% to $901.3 million in the first quarter of 2023, compared to $789.2 million in the first quarter of 2022.
- Net income was relatively flat at $214.8 million in the first quarter of 2023, compared to $218.0 million in the first quarter of 2022, largely due to higher interest rates resulting in a four times increase in interest expense over the first quarter of 2022.
- Net income per diluted share increased 5% to $2.88 in the first quarter of 2023, compared to $2.75 per diluted share in the first quarter of 2022.
Non-GAAP Results
- Adjusted net income1 decreased 2% to $283.1 million in the first quarter of 2023, compared to $289.7 million in the first quarter of 2022.
- Adjusted net income per diluted share1 increased 4% to $3.80 in the first quarter of 2023, compared to $3.65 per diluted share in the first quarter of 2022.
- Adjusted net income per diluted share increased 17% at constant interest rates, compared to the first quarter of 2022.
Tom Panther, chief financial officer, FLEETCOR Technologies, Inc., said:
“Our first quarter results came in ahead of the expectations we provided in February, for both revenue and EBITDA. Our businesses demonstrated positive momentum as a result of strong sales and our recent investments in distribution and product capabilities. In the first quarter, we closed the Global Reach Group acquisition, which expands our scale and international footprint in our cross border business.”
Updated Fiscal Year 2023 Outlook:
Panther shared:
“The outlook for the balance of the year remains positive, as we expect our strong business trends from the first quarter to continue. Despite the notable revenue beat in Q1, our increased guidance is limited to the over performance in the first quarter in order to maintain discipline in context of macro economic uncertainty. Specifically, our guidance assumptions include fuel prices and foreign exchange rates in aggregate that are neutral compared with our original outlook, and the credit environment to improve. We remain focused on controlling expenses, and are confident in our ability to exit the year with EBITDA margins increasing 200 to 250 basis points versus the fourth quarter of the prior year.”
For more details on this update, check here.
