Corpay has streamlined its name and focuses on business payments

Keeping it simple can often pay off later.

That’s the approach the company used to be called FLEETCOR technologies carved to this March then rebranding towards a cleaner, simpler ‘Corpay’.

But the company name is not the only thing that streamlines Corpay.

During the first quarter of 2024 revenue calling On Wednesday (May 8) – Corpay’s first under the new name and brand – the business payments company’s leadership explained to investors that they are focused on building a “narrower, simpler business that we can manage and curate.”

Company serves more than 800,000 business customers worldwide and is the #1 B2B commercial Mastercard issuer in North America. Worldwide, Corpay processes more than $145 billion annually in more than 140 currencies to more than 200 countries.

If that sounds like it’s going to be complicated, that’s because it is. On Wednesday’s call, executives emphasized to investors their strategy to “build out flagship products in each of our industries that we can scale,” rather than offering fragmented solutions that can be challenging to scale.

Corpay’s offering includes: payments solutions designed to help customers manage their vehicle-related expenses and travel costs And debts. And customers are looking for the same simplicity in managing their business own finance.

During the quarter, Corpay’s overall customer retention remained stable at 91%, with new bookings increasing by 11%. latest results.

“Our Corporate Payments and Vehicle Payments segments delivered solid performance through implementations and new sales growth,” said Tom Panther, Chief Financial Officer. “Our accommodation segment saw continued weakness this quarter, but the workforce sector showed early signs of stability in April.”

read more: FLEETCOR changes name to Corpay and emphasizes range of B2B payment solutions

Simplifying business payments

“Our results were in line with our expectations. Total organic revenue growth was 6% and our Corporate Payments segment grew 17%.” said Ron Clarke, Chairman and CEO of Corpay’s to deserve Edition.

“Today we also announced a definitive agreement to acquire Paymerang, an accounts payable automation company, which strengthens our position in several new vertical markets with meaningful revenue and profit synergies,” Clarke added.

The acquisition of Paymerang strengthens Corpay’s position in the mid-market accounts payable market, and the integration of Paymerang will 250,000 traders and 1,300 customers to Corpay’s existing merchant network of more than 1 million suppliers. Together, the companies will process $120 billion annually give out.

“Our favorite part of the business is full AP, where we take 100% of customer invoices… this will support that,” Clarke told investors of the acquisition. “Because it fits so closely with what we do, the synergies are very meaningful to us. This will make a significant contribution around 2025.”

According to PYMNTS Intelligence in the report “Accounts receivable and accounts payable trends and the path to profitability,” An American Express collaboration, 73% of executives surveyed said AP automation improves cash flow, while nearly all agreed automation can contribute to business growth and increase supplier satisfaction.

Still, Corpay issued revised downward guidance for the second quarter 2024 And full The company expects full-year earnings between $18.80 and $19.20 per share, with revenue ranging from $3.96 billion to $4.04 billion.

“Our outlook for the remainder of the year reflects unfavorable exchange rates and higher interest rates, which worsened significantly in April. We expect an acceleration in revenue growth in the coming quarters, driven by revenue, improving retention And business initiatives. We are taking action to control expenses to offset the weakness we are experiencing in the lodging space,” said CFO Panther.

read more: FLEETCOR invests in Zapay and expands vehicle payments business in Brazil

PYMNTS has been around for a long time covering how prioritizing the digitalization of payment workflows can streamline operations and reduce costs.

“There are many messiness around payments, especially very large B2B payments that may contain hundreds or thousands of invoices with hundreds of associated line item details,” Dean M. Leavittfounder and CEO of Encourage payment solutionstold PYMNTS in a recent interview.

“Large companies on both the AP and AR sides (accounts receivable) are looking for ways to automate, digitize and digitize those processes. And also reduce their costs.”