Corpay Reports Robust Quarterly Growth in Corporate and Vehicle Payments
BIRMINGHAM, Ala. – November 7, 2023 – Corpay, a leading business payments firm, announced a 6% increase in adjusted profit for the recent quarter, buoyed by significant growth in its corporate and vehicle payments sectors, according to their earnings report released today.
The company's CEO, Ron Clarke, expressed satisfaction with the business fundamentals, highlighting improvements in same-store sales, retention, and continued strong sales performance. "Robust corporate spending, driven by the anticipation of an economic soft landing, has helped us offset the effects of lower fuel prices compared to last year," Clarke stated in a press release.
Corpay's vehicle payments division, which facilitates fleet fuel payments for governments and businesses, reported a revenue of $506.8 million, marking a slight 1% increase year-over-year. Conversely, the corporate payments segment, aiding companies in automating and managing vendor payments, saw a significant 25% rise in revenue, reaching $321.9 million.
Looking forward, Clarke remains optimistic: "We’re confident that our revenue growth will accelerate in the fourth quarter, positioning us well heading into 2025."
Finance Chief Tom Painter also shared updates on strategic acquisitions, noting the closure of the Paymerang acquisition on July 1 and plans to finalize the purchase of GPS Capital Markets in the coming months. "For the fourth quarter, we expect revenue growth acceleration across each of our segments and the realization of synergies from the Paymerang acquisition," Painter added, projecting a 13% revenue growth and a 21% earnings growth for the upcoming quarter.
In related news, PYMNTS Intelligence recently wrapped up its "B2B Payments: Outlook 2030" event, which explored the transformative trends in B2B payments. The event underscored four major themes driving change: the digitization of payments, cash flow and treasury enablement, automation for optimization, and the adoption of emerging technologies and new payment innovations. Industry experts emphasized the shift towards automated solutions, which promise enhanced efficiency and significant cost savings, although many companies still grapple with manual process inefficiencies.
Corpay's performance and strategic moves reflect a broader industry trend towards modernization and efficiency in B2B transactions, promising a dynamic future for the sector.