Global commercial fuel card and business payments company Fleetcor Technologies Inc. on Wednesday reported revenues of $861.3 million, a 29% increase compared to $667.4 million in the second quarter of 2021.
The Atlanta-based company experienced 30% year-over-year (y/y) increases in revenue the previous two quarters.
“We reported an exceptional quarter, with continued momentum leading to revenues and adjusted net income per share growth of 29% and 32%, respectively,” Ron Clarke, Fleetcor chairman and CEO, said in a news release.
Adjusted earnings per share (EPS) grew 32% from $3.15 in the first quarter of 2021 to $4.17 in Q2 of 2022. Fleetcor’s retention rate remained steady at 92% while net income increased to $262 million in the second quarter, a 34% y/y rise.
“We continue to satisfy and retain clients,” Clarke said.
Fleetcor (NYSE: FLT) reported fuel transaction revenue of $347 million, an 18% y/y increase. Revenue per fuel transaction grew 14% in Q2 compared to 2021 at $2.83 per transaction.
Fleetcor also announced it acquired accounts payable automation software company Accrualify, Inc. The acquisition will expand Fleetcor’s payments solutions and corporate payments platform capabilities.
“The Accrualify acquisition provides workflow and process automation software that AP [accounts payable] departments are looking for and rounds out our ‘process to execution’ AP payment solution set,” Clarke said. “We expect this capability to increase demand and revenue per client for our corporate payments product line.”
During the earnings call, Clarke described Q2 results as “frankly outstanding.” He said the company boasted more than 50,000 new accounts on the books in the second quarter.
“We are adjusting our guidance to reflect our second-quarter outperformance and our updated outlook,” Clarke said. “Our preliminary July results remain positive and support our guidance for the second half of the year.”
Fleetcor expects third-quarter revenues to fall between $870 million and $890 million. It predicted adjusted EPS between $4.15 and $4.25.
“The outlook for the second half of the year remains positive, as we expect the fundamental trends from the first half of the year to continue,” Fleetcor CFO Charles Freund said in a statement. “We expect the net benefits from higher fuel prices, higher fuel spreads and lower share count to effectively offset headwinds from foreign exchange rates and higher interest rates.”