Good day, and welcome to the FLEETCOR Technologies First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jim Eglseder, Head of Investor Relations. Please go ahead.

Good afternoon, everyone, and thank you for joining us today for our first quarter 2023 earnings call. With me today are Ron Clarke, our Chairman and CEO; Tom Panther, our new CFO; and Alissa Vickery, our Chief Accounting Officer. Following their prepared comments, the operator will announce the queue will open for the Q&A session. It is only then that you can get in line for questions. Please note that our earnings release and supplement can be found under the Investor Relations section of our website at fleetcor.com. Now throughout this call, we will be covering organic growth. As a reminder, this metric neutralizes for the impact of year-over-year changes in foreign exchange rates, fuel prices and fuel spreads. It also includes pro forma results for acquisitions closed during the 2 years being compared. We will also be covering non-GAAP financial metrics, including revenues, net income and net income per diluted share, all on an adjusted basis. These measures are not calculated in accordance with GAAP and may be calculated differently than other companies. Reconciliations of the historical non-GAAP to the most directly comparable GAAP information can be found in today's press release and on our website. I also need to remind everyone that part of our discussion today may include forward-looking statements. These statements reflect the best information we have as of today, and all statements about our outlook, new products and expectations regarding business development and future acquisitions are based on that information. They are not guarantees of future performance, and you should not put undue reliance upon them. We undertake no obligation to update any of these statements. These expected results are also subject to numerous uncertainties and risks, which could cause actual results to differ materially from what we expect. Some of those risks are mentioned in today's press release on Form 8-K and in our annual report on Form 10-K filed with the Securities and Exchange Commission. These documents are available on our website and at sec.gov. With that out of the way, I will turn the call over to Ron Clarke, our Chairman and CEO. Ron?

Okay. Jim, thanks. Hi, everyone, and thanks for joining our Q1 '23 earnings call. Also joining us here today is Tom Panther, our new CFO, who is now official, so delighted to have Tom here with us. Upfront here, I'll plan to cover 4 subjects: first, provide my take on Q1 results; second, I'll share our updated full year 2023 guidance; third, discuss progress on our value creation and simplification plan; and then lastly, I'll comment briefly on our newly formed strategic review committee. Okay. Let me turn to our Q1 results. We reported revenue of $901 million, up 14%, and cash EPS of $3.80. That's up 4%. Both results finished above the top of our guidance range. The cash EPS of $3.80 clearly weighed down predominantly by higher interest expense. At constant interest expense for the quarter, cash EPS would have been $4.30, up 17%, so our model's intact. The macro environment did cooperate, basically coming in as we anticipated. EBITDA for Q1 exceeded $460 million, up 17%. Margins there, up 100 basis points year-over-year. We invested incrementally about another 100 basis points of margin and a set of capability acquisitions from 2022, those intended to better position the company for the midterm. Trends in the quarter, quite good. Organic revenue growth, Q1 was up 12% overall. That accelerated sequentially and is above our 9% to 11% target range. Same-store sales finished plus 3%, so healthy. Retention finished at 91%, slightly impacted by the credit actions we took in Q4 to contain credit risk in the micro segment. That does drive a bit of involuntary attrition. Sales performance, absolutely terrific in the quarter, up 31%, setting new record levels of new bookings. So look, fundamentals, in a good spot. I do want to highlight our Brazil performance in Q1.…

Thanks, Ron. It's great to be formally onboard and to have joined the FLEETCOR team at such an exciting time. The last several weeks have been a great opportunity for me to learn the business by spending in-depth time with our people to better understand our markets, products, sales strategies, key initiatives, technology and much more. There is more for me to learn, but the team has been incredibly helpful, accelerating my journey up the learning curve. I'm impressed by the exceptional talent and high-caliber capabilities that support the organization. FLEETCOR has a proven track record of generating strong top line growth and accretive operating leverage, and I can see why it's able to deliver those sustained high-quality results. I'm looking forward to digging in and helping the company achieve its business, strategic and financial objectives, and I'm confident in FLEETCOR's growth prospects, both organic and inorganic moving forward. And we need to look no farther than the first quarter results to understand why I'm confident in the company's future. As Ron mentioned, we posted 14% revenue growth in the quarter, including 12% organic growth. The incremental 2% of reported growth was due to acquisitions made last year as the macro fuel and FX factors were mostly a push versus prior year. Revenue of $901 million exceeded our guidance by $19 million, which flowed through to our $0.15 beat in cash EPS of $3.80. Moving on to the segments. I want to point out that we changed our organic growth solution disclosures to match the segment reporting that we implemented last year. Going forward, both reported and organic results will be disclosed in Fleet, Corporate Payments, Lodging, Brazil and other. This will be cleaner and eliminate any confusion between segment and solution categories. We've provided organic growth information on this…

[Operator Instructions] Our first question comes from Pete Christiansen with Citi.

Tom, welcome aboard here. Great to have you. I had 2 questions here. There's a lot to dig into. But Ron, I guess now with the new segmentation, how should we think about long-term kind of normalized growth for the Fleet business now that we've added some other things to that segment? I know in the past, you've talked about the segment being kind of like 4% to 8%. Does that change with the new classification? And perhaps maybe we could also address Brazil in that same vein.

Yes. Pete, it's Ron. So I'd say kind of in the base business based on how we're allocating sales and marketing investment, we're probably still in that target range, kind of mid-single digits. But I think the couple of wild cards on it are AEV, right? Does that thing, particularly with the early view we're getting of the economics, does that help accelerate it along with that consumer leg? And then B, do we get the cross-sell thing to hunt a bit more? so I'd say the wildcard is those 2 things. If those 2 things come in, obviously could accelerate quite a bit.

Okay. That's helpful. I know the toll businesses in Brazil, switching to free flow. I know it's been a benefit to some toll payment administrators here in the U.S. when E-ZPass went free flow. Just curious your take on how that could impact the business nearer term.

Yes, that's a good question. So, so far, it's good news. It's -- for those who don't know, it's pretty early days in Brazil in terms of trying to make the transition to free flow. So they're actually testing it in one region. So the good news on that for -- obviously, for the toll operator is, hey, there's no more gates and stopping people. The bad news is the, whatever, the 20% to 30% of the people that don't have electronic, have a [ clue folly ] way of paying after the fact. So it'll help us. It's a tailwind short term because it makes the electronic blast right through even more attractive than today because, again, it's more difficult for people to follow up after the fact. So we're actually seeing that, Pete, in the test region. So in the one place where they put it in, we're actually doing a bit better, so I'd say the only reason I get super excited. It'll probably take quite a while, right? There's a lot to test. There's a lot of infrastructure and stuff to move that post-payment thing to work out. So I don't think it's going to be super duper immediately but I'd say, over the midterm, helpful to us.

The next question comes from Andrew Jeffrey with Truist Securities.

Ron, I wonder if you can update a little bit on the selling motion as you move up market in fuel. It sounds like you've met with some pretty good early success. But can you just kind of elaborate on what that looks like? Can you continue to go to market using primarily digital means? Is it more kind of feet on the street? Is there a pricing or yield difference on some of those bigger fleets? Just want to try to understand how that might compare to how the fuel business looks prior.

Andrew, another good question. So point one is we already sell up market, so although we don't say it, call it, I don't know, 40% of the sales even in the U.S. business are kind of not digital, 40% to 50%. So we're already kind of in the business is point one. And point two is, I'd say, even more so internationally, we have way longer time and see there with universal networks, so we sold a bigger account for a lot longer. But back here to the U.S. So the 2 ways that we'll kind of drift up market is, one, is repointing of our digital engine. So we basically kind of reworked the algorithm there to look for different kind of search characteristics. So we let through the door, if you will, we bid in a way basically to encourage bigger accounts to come to us and obviously kind of shun smaller accounts. So that's underway. We made that pivot, call it, last October, November, so that's already started to work. And then second, what you said. We're starting to grow now the feet on the street that would go into the seam. And what we're working on is what I mentioned to Pete, Andrew, a few minutes ago of maybe going to market with not only the fuel card but going to market with this Corpay One that kind of has the corporate payments stuff built into it to see if that might be a little bit more compelling. So we're kind of in test mode now of putting some people against a bit larger prospects and giving them something a little newer kind of interesting to say. So those are the couple of ideas.

Okay. That's helpful. And then I like the U.K. mixed fleet disclosure slide from a revenue standpoint. Is it safe to assume that you see similar unit economics or maybe think about it as contribution margin in addition to more revenue? In other words, is operating leverage in those mixed fleet EV offerings?

Yes, I'd say that's way too early to call, right? We've got a tiny, tiny, little EV business and set of assets and cost structure. So our 99% focus at this point is on the revenue side, right, and figuring out how to serve these clients and win. And I don't know if people think it's a big deal, but as I kind of dug through the data, I'll say to everybody, it is a big deal, right, that companies, real clients that we have are willing to pay us more money to be more helpful in more places, and if you look at the chart, kind of significantly more money. So that is way different than I think we would have thought 2 years ago getting into the thing. So what I would say people ought to focus on is the fact that we have it. I think I'm accurate in saying we're the only ones. There's no one else that has this 3-in-1 kind of offering that brings all the things together. So I'd say, come back, Andrew, a different day to me on the margin side, but there's nothing structurally that would make us think we couldn't be at the same level over time. It's just not we're on today.

The next question comes from Sheriq Sumar with Evercore ISI.

I just wanted to get a sense on the trends in the month that you saw in the first quarter as to was there a sequential decline in the month of March versus what you saw in Jan and Feb? Or was it highly consistent across all the months? And early read across how trends have been in April and any areas of weakness or strength that you have seen so far?

Yes. Sheriq, it's Ron. So no, I'd say, if anything, the months are increasing, why we're a snowball business where we add more than we lose. And I think -- I don't know, but probably March has more workdays, so it would have been a higher print. And I did call out we've had a pretty good peak here in April, both revenue and other trends that I'd say it's kind of spot on the plan, which obviously fits with the guidance. So we're still just not seeing much. We built a plan, whatever, a few months ago, and as you can hear from the results and the April comment, we kind of track in the -- right where we thought.

One follow-up. On Corporate Payments, if I remember correctly, on the last quarter, you had mentioned that the growth will be around 20%, north of 20%, but now you had like around high teens, unless I'm wrong over here. So I just wanted to get a sense as to what's causing the difference in outlook for Corporate Payments?

Are you trying to pick on, hey, it's 19% instead of 20%?

Yes. No, I thought it was more like 20-plus percent, so I thought it probably was more like a [ 50, 100 basis point ] of decline. Yes.

Yes. If you go back and read kind of prior scripts, I would have said high teens to 20%. So 19%, I think qualifies as high teens. And I did say I think it's likely you will see in 1 of the next 2 or 3 quarters to think -- tick above the 20%. So again, we try to build, design that business to run right around the 20%, plus or minus, so still highly confident of that.

The next question comes from Sanjay Sakhrani with KBW.

Ron, appreciate the commentary on the strategic review committee, and it seems like you're onboard. I know in the past, you've considered divestitures or sales of some of the businesses, and the price simply was not compelling enough. I'm just curious, one, has the backdrop changed in terms of that pricing? Or are you just willing to make the deal in the name of simplification? And then second, maybe you could just talk about core versus noncore, sort of how you guys are looking at this.

Yes, Sanjay, on the first part of your question, the backdrop has changed our value of our earnings, right? So historically, I'd say up until, call it, the last 1.5 years, we traded in the mid- to high teens EBITDA, kind of next 12 months EBITDA sort of trade at, call it, 10, 11x is the first part of the backdrop. So a price from a third party that would be a lot higher than where we are would be more interesting to me than it would have been when we traded obviously at 15% to 20%. So in terms of the segments, I'd say it's really the size of the businesses is how we think about things that are core. So things that are big for us have big leadership positions we would call core. And so if you know what those are, that would be Fleet, Brazil, Corporate Payments. Lodging for sure would be businesses that we would view as big and core and have great positions. But again, as I said in the opening comments, we're -- when you're trading for whatever reason at this level, we are -- starting with me, we are wide open to someone else other than who's in our stock, valuing some or all of the company at a more appropriate level. And so I do want to make sure people know we are out talking and trying to get feedback if we can ID people that would value some or all the business higher.

Okay. Okay. And then just a follow-up on the Russia sale. I guess, can you just elaborate a little bit on what specific approvals need -- are needed for the -- from the Russian authorities, I mean, how much time that takes if this presents a risk?

Yes, that's also a good question. So I don't know how many months ago, somewhere 3 to 6 months ago, the Russian government created a separate, I don't know if you call it agency, commission, group, whatever it is, for this purpose of international western companies trying to exit and effectively created a sign-off requirement, almost like an antitrust or something, oversight. And so as western companies like us make deals, right, sign SPA to sell things, then these go to this group, this agency, this committee, whatever it is, and they opine on it. Hey, we're happy to approve this deal; or, hey, we'd like to see this or that. So that's what it is. We've been told that it's a month or 2. I think it's a function, right, of the volume of transactions that are in front of the group. But they have been -- we've looked at the history. As long as they've been established, they have been processing, one way or the other, transactions. So we do think, obviously, the buyer there is communicating to us that they're in conversations with this group, so it's in some kind of a process. Risk, yes, I've used the word. There's some hoops, so for us to say we know how that ball is going to bounce would not be accurate. So we have an agreement and assuming that it gets approved, we will transact. And our best guess, it's probably in the next 60 days. But I want people on the call, it is not risk free. There's obviously some chance that they would deny the sale or ask for changes in the sale that are unpalatable, and so we're just kind of waiting.

The next question comes from Ken Suchoski with Autonomous Research.

Tom, congrats on the new role. Great to connect again. It's great to hear the comments on the portfolio review and that you're moving quickly on that front. There have been some discussions going around that FLEETCOR should consider breaking up the business and maybe ring-fence some of the things that might be weighing on the multiple. So I guess, one, what is your preliminary analysis pointing to in terms of value creation as well as any dissynergies that need to be taken into account? And I guess if you were to go through with a potential corporate action, what might a separation look like and how should we think about the timing around that?

Yes, Ken, I'd say it's too early really to try to answer that. We're, whatever, 5 or 6 weeks into kicking this thing into gear and studying it. So we don't really have a super-formed view. I think I kind of said what I said, which is we're underway. We've run, tumbled a bunch of numbers. We're obviously out talking to people. So really, we're just working our way through the options, and as I said, would be in a way better spot for a clear answer to you in 90 days.

Okay. Okay. We'll wait on that, Ron. I guess as my follow-up, can you talk about the trends you're seeing on the corporate payments side? I mean it kind of feels like the current macro slowdown or recession looks a little different than '08, '09 and maybe businesses might be pulling back ahead of the consumer. So maybe you could just talk about how you're feeling about the spending trends in the Corporate Payments segment. And then any puts and takes across the underlying businesses within that segment?

Sure. I'd say that I think we report spend in some of the appendices here and stuff, so it continues to be strong really across the board. I think maybe most importantly is the sales are just record levels. I mean our Q1 sales in our Corporate Payments business was not only an all-time high. It was an all-time high by, I don't know, 50% or something. So we're pouring money into advertising the brand now and reaching more people. We've got more people on the street. We finally have a really put-together product line. So the -- I think the fill on the top of the bucket is in -- is really the best place that it's ever been in. So I think it's -- without getting over my skis, it's kind of all systems go, the things work in. Our outlook is to compound now, like I said, high teens to 20%. And other than the channel thing, which is, I don't know, 10%, 12% of the business now, really, all the other parts of that business are rocking. So no warning flags at all.

The next question comes from Trevor Williams.

I want to ask on corporate payments in the cross border business in particular. Maybe just a higher level if you could give us a refresher just on what differentiates you on the cross border and the FX side. And now with AFEX and Global Reach, just the main benefits you get with that added scale and then how that feeds into the durability of the growth that you're seeing there?

Yes. That's really super good question, Trevor. The first and most important thing I think I'd say is who do we compete with. So how do we get business and who would we lose business to? And the answer is banks. And because we mostly serve the middle market, it's Tier 2 banks. So it's super important that everyone has that in the brand. We're playing little league. But maybe we're playing Minor League Baseball versus Major League Baseball. And so we have to be able to get a mid-sized business to trust us to make either spot or hedge transactions for them versus, let me call it, kind of a Tier 2 bank. So when you have that context, the answer is we got to win everywhere. We have a better network, right, in terms of basically the destination, if you will, of payments, more breadth, more countries. We have better tech because it's all we do versus a bank running or using some third party. But the winner, I think, Trevor, is the people. We just have more specialists, right? We have hundreds of people in these different originating markets here, Canada, U.K., Europe, Australia, that really know FX, that have grown up in FX. So I think they really just outthink and outpitch the representatives that are at these Tier 2 banks. And so it's the combo of all of those things. But we compete well because, honestly, who has the book of business would be my answer to you.

Okay. Got it. And then on the Fleet segment, any help just on how we should think of the cadence of growth over the course of the year? Is the pivot of new sales to the larger customers as those start to flow through? Ron, I think you said earlier on, getting to the mid-single digits. But just any way you could put a finer point around timing and just as we're thinking of the next 3 quarters, just progression of growth in fleet would be helpful.

Super good question. I'd say think of it as just stepping up. So if it's, call it, 3 for the print for Q1, we're going to end middle kind of [ 3, 4, 5, 6, 3, 5, 6, 7 ]. It's going to step up basically based on the plan we've built. So kind of 1 point or so acceleration sequentially.

The next question comes from Bob Napoli with William Blair.

This is Spencer James on for Bob Napoli. The new sales definitely impressed us. Ron, could you maybe just provide a summary of what's driving the strength in new sales and the components of that number and what's driving the strength there? And then maybe if you could touch on how the digital ad environment might -- may or may not be impacting new sales motion.

Yes. I'm not so sure, Spencer, the second part of the question, but the first part, I can cover, which is, yes, it was a crazy good sales quarter, right? We're [ tallying guys ] up 31%, and that's in the face of taking the gas off of our North America Fleet business, right? We used to get, I don't know, 10%, 15% of the business in that micro segment, and I just shut it down, right, to try to contain. So it tells you that the rest of international fleet and all the rest of the businesses grew faster even to 31%. And I think it's a combo of things. One is, again, we've stepped up marketing and sales investment, particularly marketing. We've been pouring more money in corporate payments into this Corpay brand campaign, and so that's helping a lot. And then I'd say, second, I think we're finally getting the hang of digital leads, which is generating way more leads in every business. We have a couple of unique campaigns, digital campaigns, both in Fleet. We call one of them Barbara -- I feel like I'm naming boats or something here -- and one in our Lodging business called Sara. And so these campaigns that kind of create a bit of a personality in the space have been incredibly successful for us. So I don't want to say they're shooting fish in a barrel, but the sales force is getting fed with a lot more quality leads, call it, in the last year than they were before. So it's just all good. It's inflationary time, so we have kind of cost reduction products. We have better products than we have. We have more people on the street, and our lead thing is working better. So it's just -- I mean, I'd just say it's working, what we're doing.

Great. And as a follow-up, maybe an update on credit and fraud trends in the Fleet business.

Yes. So I don't know if we -- Alissa print that or not. So it's a smidgy bit better sequentially from Q4. And again, based on when we started to take the actions, most of the benefit in terms of improvement is expected in the second half. So we're seeing a lot kind of in our -- what we call our delinquency roll rates. So we're staring at the last week. We have super good visibility into Q2, which doesn't necessarily impact the credit reserve we'll take for this quarter but super does for the following quarter. So we can see that thing really coming down. So I don't know if we can take it to the bank yet, but the early warning, the early good news signs are that the actions we've taken are going to take credit losses down in the second half like we planned. And then same on the fraud side. The fraud side has been a combo of what we call application fraud, which are fully people pretending to be somebody and getting us. So we basically put in a bit of a new system that does way better at that, has a few more variables that it looks at before it says okay. And then the second one is just criminal fraud, right? People at a truck stop putting in skimming and selling cars and stuff. And so I think we're down 40% in fraud sequentially in those couple of areas. And our partners, like the truck stop partners, have been helpful in trying to police that better at the site. So as those numbers got bigger, right, because fuel prices, what, Q2, I guess, peaked last year, I'm going to say Q2, it became a more attractive target. And so it took time, I think, for us and others to get on it. So not mission accomplished yet, but we're making good progress.

The next question comes from James Faucette with Morgan Stanley.

I had a couple of follow-up operational questions here. Retention in the quarter was really strong. I think it was like 91.2% but was down about 100 basis points from last quarter. And I know you just mentioned kind of the credit actions taken. But can you expand if there were any other factors driving that? Is there seasonality, et cetera, that we should be aware of? And how are you thinking about that for the remainder of the year?

Yes, James, Ron again. No, that's it. I mean the reason it shows up there is what we call involuntary attrition, which is about half of our losses, right? So let's use 10% not to hurt our head. Hey, 10% of our customers quit us every year. We quit 5 of them, which means we get uncomfortable with your credit profile and so you're not our customer anymore. And so when you go through what we did of having greater -- heightened attention on these small-ish 1, 2, 3 kind of card accounts, we took actions basically to cut lines and pull back payment cycles and stuff really just obviously to contain losses. And so that just translates into us effectively kicking those clients out. So that's it. That's the totality of the thing. And I want everyone clear, we did it with our eyes just completely wide open. And based on what we're seeing, happy that we did it. In your opening comment, we're still -- work for ADP for 10 years and still super happy with a consolidated 91% revenue retention rate. So we're -- no tears here.

Got it. And then just a follow-up on -- there's been a lot of conversation obviously on segments and strategy, et cetera. But from a realignment perspective, at least as you've redefined some of the segment definitions, any change to how that strategically impacts those businesses or planned go to market, et cetera?

That's really a super good question. Yes. Let me say what I think kind of the insight is, and it comes a little bit from how we started on kind of a product-centric view of our lines of business versus a market rider or a customer-centric view. And I think the Brazil guys that I called out at the top of the call, they've proven that if you want to redefine your business as, hey, I'm going to help vehicle-related drivers make payments, whether they're a business guy driving around or whether they're a consumer driving around, all those things that you pay related to the vehicles, right, fuel, toll, EV, maintenance, stopping for food, parking, now even insurance, that those things -- getting into those shows that the businesses and the consumers believe that our business has the right to offer to provision all of those payment things and having all those things on one account seems like a good idea to them. So I'd say that's kind of where we're headed. The idea would be to basically stop looking at the thing as, hey, you're driving around, and we're selling you one thing. Like go to Europe. We're now -- I said -- talked about the 3 in 1. Now we're selling fleets, but we're also selling old-fashioned diesel and EV. Why can't we sell parking and toll and insurance to those sets of millions of users and stuff? And so I think that's the strategic turn for us, is to think about really the multiple things we could sell to the same customer that makes sense to them. And the great news is we have a live case, like a real case to that. And the other thing I'm guessing people missed is the phone, right? The mobile phone is starting to matter. Like I tell you that 3 million out of 5 million users, consumers in Brazil decided to go to our phone app in a month. I don't know if that's crazy to you guys, but it is to me. We used to stick a tag on the windshield, and now 60% of the people are on their phone in our app looking for stuff. And so that creates, I think, an enormous ability again to offer up, like the insurance example, more things to the customer base. So we're going to -- the headline is we're looking at the world more through the lens of the customer and what we can offer than we are product by product.

The next question comes from Jeff Cantwell with Wells Fargo.

And just to follow up on some of the questions about core versus noncore and you giving us a ton of color on this. I just wanted to bounce something off you and see if you would agree that this is a fair statement that, over the years, amongst Fleet, Corporate Payments and Lodging, there would be potentially a number of operational synergies amongst those 3 segments. And so the clear follow-up question to that would be could you maybe give us some comments on Brazil within the context of core versus noncore. Just curious how that piece of your business ties in with the rest.

Yes, I think Jeff, I kind of just said it. To me, in some ways, Brazil is the lead dog, is kind of the poster child for really how we should think about the portfolio, right? That, hey, when we bought that business 7 years ago, it was mostly a toll-centric business, and it's transformed, right, in the -- like I said, selling 5 or 6 things to the same, both businesses and consumers. And notice how we're selling EV, right, to both businesses and consumers. We're just basically repurposing the networks and the tech. Well, obviously, that's what Brazil has done, right? They've got toll networks that both use. They've got fuel networks that both use. They have parking that both use. So they've literally taken the same networks and tech and sold the stuff to the 2 different groups. So I'd say, if anything, that business looks more related. The other thing, which is so weird, is fleet's in 8 giant markets today. Fleet's not only in the U.S.A. It's in, obviously, the U.K. It's in Czech. It's in Germany. It's in Russia. It's in Australia. It's in Canada. Obviously, it's in Brazil. Obviously, we have a Fleet business that's in 8 geographies, of which 1 of them just happens to be Brazil. So our lenses are, in some ways, it might be the -- it is -- the most related business in the company to our Fleet business would be our Brazil business because all of it is another country doing fleet, vehicle stuff. So I would say that would be a super duper long shot. The only thing is I like businesses that are working, just as an aside. So the fact that the business is compounding in the teens and pressed at about the 50% EBITDA line and beaten down people that are giving things away for free and continuing to compound, we like that. I mean I like that like a lot, the performance of the business.

Okay. And my follow-up is for Tom. For those of us who have not covered you at your prior, would you maybe just, if you don't mind, give us a sense of how you think strategically and also conceptually about managing the business and so forth? Would love to get your thoughts on what your mindset is as you're coming onboard here.

Sure, Jeff. Look forward to working with you and good to work with many of you on the call that did cover EVO. My DNA as a finance person is really to approach it from a business-centric perspective. I've had the benefit over the last month or so being able to participate in a variety of meetings here, really learning the company firsthand, and getting grounded in how the business operates is centric to how I and the rest of the team within finance thinks and supports the business. Our role is to make sure we bring good information and good advice and ideas to the business. And we can't do that by just looking at the output of the results. I've said repeatedly over the course of my career, I like focusing on the inputs in order to drive the outputs. And my dialogue and the team's dialogue with the business is around their KPIs. And if we can get their focus on their KPIs and how those KPIs drive the kind of outcomes that we're looking for financially, then the company wins. So you'll find me and again, the rest of the team very focused on making sure that we understand how the business is operating and how we can help it become more and more successful. Very focused on things up and down the income statement and balance sheet, so no real bias there. It's where the opportunity is, is where we'll focus.

The next question comes from Mihir Bhatia with Bank of America.

My first question just has to do with the consumer EV build-out that you kind of mentioned, Ron. Can you maybe expand on that? Is the idea there to build a FLEETCOR consumer brand? Or are you white labeling? Is the -- I mean, I guess, based on some of your other comments about Brazil, is the thinking there that using EV instead of tolls, you can do something similar on the consumer side as what they have done in Brazil using tolls as the wedge if you will?

Yes, that's a good question. So as I mentioned at the top, the motivation initially here is repurposing assets we have, which are networks, right, in tech. But your comment about brand is a good one. So the first thing I'd say is some of that build initially will be under other people's brands, where we'll be kind of Intel Inside. So what I mean by that is think of us going to an EV car manufacturer. Pick Volvo, Renault, somebody who's making EV cars and they want to give their new buyers an easy way to find public recharging and pay for it. They're going to use our network and our app. The brand and sometimes even the app will get pulled into Renault's or Volvo's way, right, of communicating. So that's one, so leveraging kind of the carmaker's brand to get to those drivers. And then the second one is kind of the CPOs, the gas stations, if you will, the charge point operators is what they call them. Same thing, we would go to someone that's got 100 charge points and has customers coming in that wants them to be able to roam to go to places other than their 100. They would be trying to sign those customers up and get them under an app that we would provide them. So that's the first headline, is that some amount of our consumer business would leverage these intermediary brands. But lastly, I think it is a good idea. We have this brand, this company we bought called Plugsurfing, which, I guess, kind of sounds like an EV brand. So yes, we're not going to use, for sure, the FLEETCOR brand. We want something that's representative of EV. And so we might invest. We may take a market, to your point, and invest digitally to see if we can build that brand and add some consumers directly. But that's for a different day.

Understood. And then just switching gears to this year, and obviously, you're seeing some sales momentum that you've highlighted. But just in general, as you sit here today, do you think things are getting better or worse relative to 3 months ago? Because there's a lot of conflicting data. I guess, from your -- the data you are seeing, are you seeing any pockets of weakness across your offerings? Or is it really just the macro is the only -- like outside macro is a big question mark for you?

Yes. I know it's the question on everyone's mind, but I guess I'd make a couple of points. So first is our best internal metric here is what we call same-store sales, which basically isolates existing clients in the period that we had in the same period a year ago and just ask, hey, are they getting healthier or sicker, and the answer is healthier. So across our -- across the globe, at least among our clients, they're plus 3% healthier than they were 12 months ago. So that's kind of point one. The second point is our company that grows revenues double digit and grows profits faster isn't super reliant on GDP. I don't know what our GDP is here in the U.S. or in some of our big markets, but let's say it's 1% or 2%. We're growing by gaining share, right? We sell way more than we lose. So the growth rate and potential of our company is way more in our control of being able to sell way more businesses at the top of the bucket and lose less businesses at the bottom. If the existing clients shrink 1 point or so, oh, woe is me for a quarter or 2 maybe, but that's not our game. Our game is to basically power through, either happier or a little bit sadder, GDP kind of environment. So again, we're not seeing much, and frankly, I think it's -- the impact, it's at the margin for us.

This has concluded our question-and-answer session, and the conference has also now concluded. Thank you for attending today's presentation. You may all now disconnect.