WEX Inc. (NYSE:WEX) Q1 2018 Earnings Conference Call Transcript

May 03, 2018 • 09:00 am ET

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WEX Inc. (NYSE:WEX) Q1 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning. My name is Natalie and I'll be your operator today. At this time I would like to welcome everyone to the WEX First Quarter 2018 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions).

At this time, I'd like to turn the call over to Steve Elder. You may begin your conference.

Executive
Steven Alan Elder

Thank you, Natalie and good morning everyone. With me today is Melissa Smith, our President and CEO; and our CFO, Roberto Simon. The press release we issued earlier this morning and a slide deck to walk through our prepared remarks have been posted to the Investor Relations section of our website at wexinc.com.

A copy of the release and the slide deck have also been included in 8-Ks we submitted to the SEC. As a reminder, we will be discussing non GAAP metrics, specifically adjusted net income during our call. Adjusted net income for this year's first quarter excludes unrealized gains on derivative instruments, net foreign currency re-measurement gains, acquisition related intangible amortization, other acquisition and divestiture related items, stock-based compensation, restructuring and other costs, debt restructuring and debt issuance cost amortization, ANI adjustments attributable to non-controlling interests and certain tax related items.

The Company provides revenue guidance on a GAAP basis and earnings guidance on a non GAAP basis, as we are unable to predict certain elements that are included in reported GAAP results. Please see exhibit one of the press release for an explanation and reconciliation of adjusted net income to GAAP net income. I would also like to remind you that we will discuss forward looking statements under the Private Securities Litigation Reform Act of 1995.

Actual results may differ materially from those forward looking statements as a result of various factors including those discussed in our press release and the risk factors identified in our annual report on Form 10-K filed with the SEC on March 1st, 2018 and subsequent SEC filings. While we may update forward looking statements in the future, we disclaim any obligations to do so. You should not place undue reliance on these forward-looking statements all of which speak only as of today.

With that, I will turn the call over to Melissa Smith.

Executive
Melissa Smith

Good morning, everyone and thank you for joining us today. I'm pleased to report that we beat our top line guidance for the quarter, building on last year's momentum, while demonstrating the continued success of our products and solutions through all of our lines of business. In addition, this quarter, we achieved bottom line results well above the upper end of our guidance range.

Revenue grew 22% compared to last year's first quarter, reaching $355 billion. This was the seventh consecutive quarter of double-digit revenue growth and another quarter in which all three of our business segments contributed to our growth.

Net income on a GAAP basis was $1.12 per diluted share and we generated adjusted net income