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Fleetcor revenue increased 30% YOY for 2nd quarter in a row

Earnings per share grew 29% year-over-year

(Jim Allen/FreightWaves)

Global commercial fuel card and business payments company Fleetcor Technologies Inc. on Thursday reported a 30% year-over year increase in revenue from $609 million in the first quarter of 2021 to $789 million in the first quarter of 2022. The company reported a similar 30% year-over-year increase in the fourth quarter of 2021.

“We reported an outstanding first quarter, with strong core trends driving revenues and adjusted net income per share growth of 30% and 29%, respectively,” Ron Clarke, chairman and CEO, said in a release

Adjusted earnings per share (EPS) grew 29% from $2.82 in the first quarter of 2021 to $3.65 in Q1 of 2022. The Atlanta-based company’s retention rate remained steady at 93% while net income increased to $218 million in the first quarter, an 18% year-over-year rise.

During the earnings call Thursday, Clarke described Q1 as “terrific” and “one of the best quarterly performances that I can recall.”

Fleetcor (NYSE: FLT) reported fuel transaction revenue of $319 million, a 22% year-over-year increase. Revenue per fuel transaction grew 15% in Q1 compared to 2021, at $2.73 per transaction.

“Our businesses demonstrated positive momentum as a result of the focus and initiatives we’ve had in place over the last year or so, in addition to the benefit of higher fuel prices,” said Fleetcor CFO Charles Freund. 

Clarke said one of Fleetcor’s largest North American retail partners, Speedway, extended its relationship with the company.

In terms of electric vehicles, “we’re going on offense,” Clarke said. Fleetcor aims to serve its customers and keep revenue strong by building out EV capabilities in its business. Clarke said he also sees potential for the company to create some incremental revenue by repurposing its EV assets.

“We expect our strong performance to continue, and we are raising our guidance to reflect our first quarter outperformance, and our updated outlook,” Clarke said.

Q2 and 2022 outlook

Fleetcor expects revenues in the second quarter to fall between $805 million and $825 million. It predicts an adjusted EPS between $3.80 and $3.90.

“The outlook for the balance of the year remains positive, as we expect fundamental trends from the first quarter to continue. We also expect the macro environment, specifically fuel prices and foreign exchange rates, to be a meaningful tailwind. Our updated expectations do include higher interest expense and a higher tax rate, and on balance we are adjusting our guidance higher, as a net result of these factors,” Freund said in a statement.

Table: Fleetcor’s key performance indicators

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Alyssa Sporrer

Alyssa is a staff writer at FreightWaves, covering sustainability news in the freight and supply chain industry, from low-carbon fuels to social sustainability, emissions & more. She graduated from Iowa State University with a double major in Marketing and Environmental Studies. She is passionate about all things environmental and enjoys outdoor activities such as skiing, ultimate frisbee, hiking, and soccer.