ME-based fuel card kingpin, WEX, reported first quarter (1Q/17) total revenue soared 41.5% year-on-year (YOY), and net income rose 25.4% YOY in 1Q/17. WEX says return on 2016 investments is paying-off handsomely, according to CardData.
Total revenue was $291.4 million for 1Q/17, compared to $290.8 million in 4Q/16, and $205.9 million for 1Q/16.
Net income was $29.1 million for 1Q/17, compared to $5.3 million in 4Q/16, and $23.2 million for 1Q/16.
Revenue for the Fleet Solutions division skyrocketed 57.6% YOY to $190.8 million for the first quarter, compared to $192.3 million for the prior quarter, and $121.1 million for the year ago quarter.
Revenue for the Travel & Corp Solutions division increased 4.4% YOY to $47.7 million for 1Q/17, compared to $53.5 million for 4Q/16, and $45.1 million for 1Q/16.
Fleet Solutions payment processing transactions rose 15.4% YOY for 1Q/17 to 102.8 million, compared to 99.7 million for 4Q/16 and 89.1 million for 1Q/16.
Travel & Corp Solutions purchase payment transaction volume rose 35.3% YOY to $6600 million for the first quarter, compared to $6352 million for the prior quarter, and $4879 million for year ago quarter.
The Fleet Solutions net payment processing rate increased 22 basis points (bps) YOY and 1 bps quarter-to-quarter (QTQ). The 1Q/17 rate was 1.22%, compared to 1.23% for 4Q/16, and 1.44% for 1Q/16.
The Travel & Corp Solutions interchange rate decreased 18 bps YOY, and down 18 bps QTQ. The 1Q/17 rate was 0.53%, compared to 0.71% for 4Q/16, and 0.71% for 1Q/16.
For the second quarter, WEX expects revenue in the range of $286 million to $296 million and adjusted net income in the range of $51 million to $54 million.