Revenue climbed 21.8% to $1.34 billion as corporate payments grew 41.7%, and the company agreed to sell U.K.-based epyx, r2c Online and Business Gateway to OEConnection.
Corpay raised its full-year revenue and adjusted earnings outlook after reporting stronger second-quarter results, with business spending holding up through the April-June quarter despite economic uncertainty and elevated interest rates. Adjusted profit for the quarter ended June 30 rose to $464.4 million, or $7 per share, from $366.4 million, or $5.13 per share, a year earlier, while total revenue increased 21.8% to $1.34 billion. Growth was led by the corporate payments business, which automates vendor payments (payments to suppliers), where revenue jumped 41.7% to $548.7 million, while vehicle payments revenue rose 13.3% to $580.2 million. Corpay now expects annual revenue of $5.29 billion to $5.33 billion and adjusted earnings of $27.15 to $27.55 per share, and separately agreed to sell its non-core U.K.-based vehicle payments business epyx, along with r2c Online and Business Gateway, to OEConnection as it simplifies its portfolio and focuses on corporate payments.