Wex’s travel and corporate solutions segment revenue, which
represented 21 percent of Wex’s total revenue at the end of 2016, grew 3
percent year over year to $55 million in the second quarter. Purchase volume
also increased to $7.7 billion, a 37 percent year-over-year gain, owing in
large part to online travel booking clients like Expedia and Barcelona-based
eDreams Odigeo and non-travel customers like project management, logistics and
engineering firm Noventus, Wex CEO Melissa Smith explained during an earnings
call on Thursday. Wex’s June-2016 acquisition of corporate and fleet payment
company Electronic Funds Source, which allowed Wex to offer single and
multipurpose corporate cards, also contributed to the segment’s volume growth, she
said.
Wex continues to grow purchase volume in Brazil, where it
has been expanding
its footprint, by cross-selling products to existing corporate clients and
signing more partners, including travel group Flytour and a local partnership
with Amadeus to provide virtual cards to mutual clients, Smith said.
In the future, Smith said, the travel and corporate
solutions segment could experience more non-travel volume growth. Singling out
the Asia region as an example, she said customers there are requiring slightly
modified Wex products. “I do expect that you’re going to see more of the
corporate payments piece of the business growing over time… both in terms of
new products but also new market expansion opportunities. There’s nothing I’d
call out now, that I would say you’re going to see an immediate lift for, but
it’s part of our longer-term strategy,” Smith said.
Overall, total revenue for Q2 increased 30
percent year over year to $303.9 million. Net income totaled $16.6 million, up
from $11.9 million the same quarter last year. Wex is divided into three
segments, fleet solutions accounting at 63 percent of total revenue, travel and
corporate solutions at 21 percent, and health and employee benefit solutions
accounting at 16 percent.