On this page of StockholderLetter.com we present the latest annual shareholder letter from WEX Inc. — ticker symbol WEX. Reading current and past WEX letters to shareholders can bring important insights into the investment thesis.

 •  4/23/2024 Letter Continued (Full PDF)
 •  4/24/2023 WEX Stockholder Letter
 •  More "Business Services & Equipment" Category Stockholder Letters
 •  WEX Benford's Law Stock Score = 91

WEX Shareholder/Stockholder Letter Transcript:

2023
2023
Annual
Annual
Report
Report
e
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About
WEX
About WEX
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WEX
the global
global commerce
commerce platform
platform
WEX is
is the
that simplifies
simplifies the
the business
business of
of running
running
that
a powerful
powerful
a
We have
a business.
business. We
have created
created a
ecosystem
ecosystem that
that offers
offers seamlessly
seamlessly
solutions
embedded,
embedded, personalized
personalized solutions
for
our customers
customers around
around the
the world.
world.
for our
Through our
our rich
data and
Through
rich data
and specialized
specialized
expertise in
simplifying benefits,
benefits,
expertise
in simplifying
reimagining
mobility, and
and paying
reimagining mobility,
paying and
and
getting paid,
paid, we
we aim
aim to
to make
getting
it easy
make it
easy
overcome complexity
complexity
for companies
for
companies to
to overcome
reach their
their full
potential.
and
full potential.
and reach
1

    r ffellow
Dear
stockholders
De
How stockholders
Reflecting
2023, II am
Reflec
ing on
o 2023,
pleased with
with the
the
am pleased
progre and
hievements that
that marked
another
progress
and achievements
marked another
mi
on= year
ear in
WEX's journey.
milestone
in WEX   s
journey. We
We remained
remained
steadfast
in our
dfast in
our commitment
commitment to
to our
our purpose
purpose of
of
simplifying
the business
simplifying the
business of
of running
running a
a business,
business,
and
this guiding
us to
and this
guiding principle
principle empowered
empowered us
to overcome
overcome
seize opportunities,
opportunities, solidifying
solidifying our
our
challenges
challenges and
and seize
position
in the
end markets
position as
as a
a leader
leader in
the end
markets we
we serve.
serve.
Our success
success in
2023 can
can be
be attributed
our
Our
in 2023
attributed to
to our
innovative spirit,
innovative
spirit, thoughtfully
thoughtfully structured
structured business
business
and, most
the dedication
dedication of
of our
our
model, and,
most importantly,
importantly, the
model,
world-class
We have
continued to
to evolve,
evolve,
world-class team.
team. We
have continued
adapt,
and
thrive,
achieving
significant
milestones
that
adapt, and thrive, achieving significant milestones that
underscore our
our growth
growth and
and commitment
commitment to
to excellence.
underscore
excellence.
Financially,
once again
again delivered
delivered strong
strong
Financially, WEX
WEX once
performance
record full-year
full-year
performance each
each quarter,
quarter, with
with record
revenue
$2.55 billion
billion -    an
an increase
8%
revenue of
of $2.55
increase of
of 8%
compared
to the
year -    and
and more
more than
compared to
the prior
prior year
than
$900
million of
of operating
2023.
$900 million
operating cash
cash flow
flow for
for 2023.
Further, we
allocate
Further,
we continued
continued to
to thoughtfully
thoughtfully allocate
balancing organic
organic investment,
M&A, and
and
capital,
investment, M&A,
capital, balancing
opportunistic
return of
In
opportunistic return
of capital
capital to
to stockholders.
stockholders. In
2023, we
we returned
approximately $295
$295 million
to
2023,
returned approximately
million to
stockholders through
the repurchase
repurchase of
of 1.7
stockholders
through the
1.7 million
million
shares.
are a
to the
testament to
the
shares. These
These achievements
achievements are
a testament
strength and
profitability of
of our
our business
strength
and profitability
model and
and
business model
the
initiatives.
execution of
of our
our strategic
strategic initiatives.
the successful
successful execution
Over
the course
Over the
course of
of the
the year,
year, we
we drove
drove significant
significant
expansion
expansion and
and growth
growth across
across the
the business.
business. The
The
foundation of
our momentum
was fueled
by the
the
foundation
of our
momentum was
fueled by
addition of
new customers
and the
the signing
of new
customers and
signing of
of several
several
addition
large contracts
renewals. We
large
contracts and
and renewals.
We also
also strengthened
strengthened
our
our core
core offering
offering with
with the
the strategic
strategic acquisitions
acquisitions of
of
Health
Benefits
line
of
business
in
our
Ascensus   s
Ascensus's Health & Benefits line of business in our
Benefits
leading
Benefits segment
segment and
and Payzer,
Payzer, a
a leading
cloud-native
management software,
cloud-native field
field service
service management
software,
within our
our Mobility
Mobility segment.
segment.
within
2
2
Further,
we deepened
deepened our
our commitment
commitment to
to innovation,
Further, we
innovation,
focusing heavily
on artificial
artificial intelligence
(AI) and
and
focusing
heavily on
intelligence (AI)
its transformative
its
potential to
to optimize
optimize both
both our
our
transformative potential
business
and those
business and
those of
of our
our customers.
customers. Last
Last year,
year,
we
more than
than 50
across
we conducted
conducted more
50 AI
Al experiments
experiments across
the enterprise,
enterprise, which
which enhanced
enhanced productivity,
productivity,
the
drove
outcomes, and
identified
drove customer-focused
customer-focused outcomes,
and identified
additional areas
areas in
which WEX
WEX can
can leverage
additional
in which
leverage these
these
technologies to
continue creating
creating value.
value. As
one
technologies
to continue
As one
example,
we
specifically
applied
AI
technology
to
specifically
applied
Al
technology
to
example, we
assist in
assist
in making
making credit
and detecting
credit decisions
decisions and
detecting
fraud.
helped drive
fraud. We
We believe
believe the
the technology
technology helped
drive the
the
reduced delinquencies
and substantial
reduced
delinquencies and
substantial credit
credit loss
loss
improvement that
improvement
that we
we saw
saw over
over the
the course
course of
of the
the
year.
invest in
in developing
year. We
We will
will continue
continue to
to invest
developing these
these
modernize the
the way
way we
we operate
operate while
while
capabilities
to modernize
capabilities to
enhancing
experiences and
enhancing our
our customer
customer experiences
and offerings.
offerings.
We
future where
internal
We continue
continue to
to envision
envision a
a future
where both
both internal
vehicles (EVs)
(EVs)
combustion
and electric
electric vehicles
combustion engines
engines and
comprise
our customers   
fleets. To
end, we
customers' fleets.
To that
that end,
we
comprise our
have built
mixed fleet
including launching
launching
have
built mixed
fleet solutions,
solutions, including
an at-home
at-home charging
charging reimbursement
product in
the
an
reimbursement product
in the
U.S.
mobile app
app to
DriverDash   mobile
to
U.S. and
and broadening
broadening our
our DriverDash  
include
EV functionality.
functionality. WEX   s
WEX's Board
Board of
of Directors
include EV
Directors
also
authorized
the
Company
to
invest
up
to
authorized
the
Company
to
invest
up
to $100
$100
also
million
2025, predominantly
predominantly in
million through
through 2025,
in early-stage
early-stage
companies
innovating in
in electric
mobility and
companies innovating
electric fleet
fleet mobility
and
energy
meet
energy sustainability.
sustainability. We
We are
are well
well positioned
positioned to
to meet
our more
than 600,000
600,000 Mobility
Mobility customers
customers wherever
wherever
our
more than
they
their mixed
journeys and
and see
this as
they are
are on
on their
mixed fleet
fleet journeys
see this
as
an opportunity
opportunity to
to tackle
amounts of
of complexity
complexity
an
tackle large
large amounts
on
on their
their behalf.
behalf.
Our focus
focus on
on operational
Our
operational excellence
has enabled
excellence has
enabled us
us
to
maintain strong
to maintain
strong cash
cash flows,
flows, providing
providing the
the flexibility
flexibility
economic fluctuations
fluctuations while
while investing
to
navigate economic
investing
to navigate
in strategic
in
strategic growth
growth and
and optimization
optimization opportunities.
opportunities.
Simultaneously,
our operational
operational improvement
efforts
Simultaneously, our
improvement efforts
have yielded
yielded significant
significant results.
results. In
In late
late 2022,
2022, we
we
have
to capture
capture $100
$100 million
shared
expected to
million in
in
shared that
that we
we expected

run rate
efficiencies by
end of
run
rate operating
operating cost
cost efficiencies
by the
the end
of
2024. We
on track
to accomplish
2024.
We remain
remain on
track to
accomplish this
goal,
this goal,
having realized
million of
runhaving
realized $75
$75 million
of savings
savings on
on a
a runrate basis
the end
end of
of 2023.
rate
basis through
through the
2023. We
We expect
expect to
to
reinvest
a portion
portion of
these cost
cost savings
reinvest a
of these
into the
savings back
back into
the
business
including
business to
to further
further enhance
enhance capabilities
capabilities including
our digital,
digital, product,
product, and
groups, our
our risk
risk
our
and technology
technology groups,
management tools,
management
tools, and
and centers
centers of
of excellence.
excellence.
WEX
and great
WEX combines
combines great
great people
people and
great products.
products.
Our
are among
among the
in our
industries,
Our people
people are
the smartest
smartest in
our industries,
solutions-oriented, and
solutions-oriented,
and keenly
keenly focused
focused on
on freeing
freeing
our
our customers
customers from
from the
the complexities
complexities that
that hold
hold
them back.
back. Our
core values
them
Our core
are the
the bedrock
of our
values are
bedrock of
our
culture
culture and
and our
our commitment
commitment to
to creating
creating a
a diverse
diverse
and inclusive
workplace where
and
inclusive workplace
where every
every employee
employee feels
feels
empowered is
unwavering. Together,
Together, these
these drive
drive our
empowered
is unwavering.
our
competitive
advantage
and
ability
to
consistently
advantage
and
ability
to
consistently
competitive
deliver for
deliver
for our
our customers.
customers.
Our
Our core
core values
values
.6:31
Put
Put ingenuity
ingenuity
to work
work
to
Stick
to it
Stick to
it
Team up
Team
up
uzi )60
Act with
with
Act
integrity
integrity
Be a
a pos  tive
positive
Be
force
force
Stay
open
Stay open
Along
efforts
Along those
those lines,
lines, embedding
embedding a
a focus
focus on
on efforts
supporting our
our business   
business' sustainability
sustainability is
supporting
is integral
integral
to
our culture
long-term strategy.
to our
culture and
and long-term
strategy. In
In 2023,
2023,
sustainability strategy
we
strategy through:
through:
we advanced
advanced our
our sustainability
We
to deliver
We believe
believe the
the companies
companies best
best positioned
positioned to
deliver
long-term success
success will
will be
be those
those that
that prioritize
prioritize
long-term
business
impact.
performance while
while making
making a
a positive
positive impact.
business performance
Overall
Overall II am
am pleased
pleased with
with the
the progress
progress we
we
our strategic
strategic priorities
priorities
made executing
against our
made
executing against
throughout
in the
throughout 2023
2023 and
and have
have great
great confidence
confidence in
the
future of
we remain
future
of WEX.
WEX. Looking
Looking ahead,
ahead, we
remain laser
laser
focused on
on winning
winning new
new customers,
customers, deepening
deepening
focused
our share
share of
of wallet,
wallet, and
and bringing
bringing new
new products
products
our
to market.
We will
will also
also continue
continue to
to thoughtfully
thoughtfully
to
market. We
allocate capital
between organic
organic investment,
investment, M&A,
M&A,
allocate
capital between
and
repurchases.
and share
share repurchases.
II am
am immensely
immensely grateful
grateful for
for the
the hard
hard work
work and
and
the trust
trust of
our valued
valued
dedication
of our
our employees,
employees, the
of our
dedication of
customers,
customers, and
and the
the support
support of
of our
our stockholders.
stockholders.
II continue
continue to
believe
WEX
is
extremely
wellto believe WEX is extremely wellpositioned
to drive
drive sustainable
sustainable growth,
growth, enhance
enhance
positioned to
value, and,
and, above
above all,
all, fulfill
fulfill our
our purpose
purpose
stockholder
stockholder value,
of
the business
of running
running a
for
of simplifying
simplifying the
business of
a business
business for
our
our customers
customers worldwide.
worldwide.
Thank
you for
for your
your ongoing
Thank you
ongoing support.
support.
MAZ,
S514 r7)4
Chair, CEO,
CEO, and
and President
Chair,
President
April 23,
23, 2024
2024
April
       Expanding
Expanding our
our Mobility
include
Mobility offerings
offerings to
to include
EV functionality
where appropriate
EV
functionality where
appropriate
    Publishing
Publishing our
Report, which
our third
third annual
annual ESG
ESG Report,
which
included
first Task
Task Force
on Climate-Related
Climate-Related
included our
our first
Force on
Financial
Financial Disclosure
Disclosure Report
Report
       Launching
Vendor Inclusion
Program,
Launching our
our Vendor
Inclusion Program,
optimizing
optimizing our
our procurement
procurement process
process to
to drive
drive
intentional inclusion
inclusion of
intentional
of diverse
diverse businesses
businesses
Accomplishing our
our cloud
cloud migration
       Accomplishing
migration and
and data
data
center
center consolidation
consolidation goals
goals
       Continuing
Continuing to
and individuals
individuals
to help
help businesses
businesses and
navigate
healthcare system
complex healthcare
system while
while
navigate a
a complex
minimizing cost
cost and
and maximizing
benefits
minimizing
maximizing their
their benefits
3
3



 4/23/2024 Letter Continued (Full PDF)