Corpay (Fleetcor) Citi’s 15th Annual FinTech Conference

Yeah, a couple things. I mean, the fundamentals in the business are really strong. I mean, Q3 was another great quarter for us. It was our sixth quarter of double-digit organic growth, and it was our fifth quarter of beat and raise. We delivered 11% organic growth, and then our primary focus area being corporate payments delivered 18% organic growth. If you take our corporate payments segment, our vehicle payment segment, and put them together, that's about 80% of our revenue, it's 13% organic growth. The business just continues to perform as we've designed it to, which is super exciting given the turbulent times that we're in for some other folks.

I think the other thing is we're obviously sitting in early November, so I've already seen October results, and I've got about a month and a half of the year left to go, so I have high visibility into what the performance will be for the full quarter.

Yeah, so we recently had an investor perception study done, and those are always helpful to have, hear from the investors and get an outside view on what we're doing. I think one thing that we recognized out of that study is that we're giving investors a lot of data, but maybe we're not putting it together in the most helpful framework. I think when you think about our organic growth, what's really important is the building blocks, which we do provide, but let me put them together maybe in a way that people haven't heard it before. Our retention rate is, call it, 92%-93%, so really strong retention across the business.

If, let's say, I do $100 million of revenue in 2026, when I wake up on January 1st, I know I've got $92 million of revenue showing up in 2027, right? So over 90% of the revenue there, plus. Same for sales, plus or minus 1%, so really not meaningful. Price, call it 3%, right? So I'm at 92 plus three, now I'm at 95. We have a large sales organization. It's been one of our long-term unique advantages of the business. What we sell in the current year translates into the following year. We specifically gave the example on the earnings call of we predict we're going to sell half a billion of revenue in corporate payments in 2026.

When you think about that half a billion of revenue, about 50% of that revenue we will earn within 2026, and about 40% of that revenue we will earn within 2027. There is about a 10% delta there because we will have early life attrition and some other things. If you take that base of that revenue over my base corporate payments revenue for 2027, it is about 7-8 points. Now you have 95, call it, plus eight, you are in at 103, and I need to get to 110 to deliver organic growth of 10% as an overall organization.

A lot of my revenue for the next year is already set up in the current year, and really what turns on that 103 to 110 is my sales effort that I make within the current year, which again, has really been one of our secret sauces in terms of growing the business, multiple years of 20% plus sales revenue. One thing we are going to work on with investors is just an easier, simpler kind of bridge of this is how you should think about the durability and the recurring level of our revenue.

Yeah, so I think we think of the business really in two pieces today, one with the spend management business, the other our cross-border business. Both of those businesses are performing extremely well. Within the cross-border business, we completed the Alpha acquisition last year, and that has gone quite well. Then when we look across the segments that we sell into within cross-border, corporates being our primary client, followed by private capital markets and FIs, we are performing well across all of those segments. If we move over to the spend management side, which is our AP automation product and our commercial card product, also having a lot of success there. If you think in general, who are we selling against? Who are our competitors? Our corporate payments business is really set up to sell into the middle market, so call it businesses with revenue of $300 million-$500 million that are typically underserved by banks.

That's really our opportunity, is to go in and service those clients better and create value for them that they're not getting by their current providers.