WEX Sees AI, Commercial EVs as Growth Opportunities
Global commerce platform WEX is looking to artificial intelligence (AI) and commercial electric vehicles (EVs) as opportunities for growth after reporting record quarterly revenue. “We are expanding our position as a market leader by meeting our customers where they are with new, innovative solutions,” WEX Chair, CEO and President Melissa Smith said Thursday (July 25) […]
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Global commerce platform WEX is looking to artificial intelligence (AI) and commercial electric vehicles (EVs) as opportunities for growth after reporting record quarterly revenue.
“We are expanding our position as a market leader by meeting our customers where they are with new, innovative solutions,” WEX Chair, CEO and President Melissa Smith said Thursday (July 25) during the company’s quarterly earnings call.
Smith highlighted the company’s commercial EV solutions, which are “focused on enabling the mixed fleets of the future,” and its AI applications, which aim to “drive both customer value and enhance WEX’s business model.”
For commercial EV solutions, WEX currently offers public charging solutions and home charging solutions that are focused on employee reimbursement. The company expects to add captive charging solutions for depot or private infrastructure charging later in 2024.
“We believe the majority of our customers will operate in a mixed fleet world for the foreseeable future,” Smith said. “Our strengths in both fuel and EV solutions, coupled with our seamless integration into customers’ systems, uniquely position us to help them navigate this complexity and maximize their operational efficiency.”
On the technology front, the company has already seen its enhanced AI tools contribute to efficiency gains in the form of trending improvements on credit losses. AI allows the company to better adjudicate credit, review credit line increases and spot abnormal behavior that may indicate a pending loss event.
“Looking ahead, we’re excited to keep leveraging AI capabilities in order to transform our customer experiences with specific focus on enhancing our customer service operations and risk functions,” Smith said. “This tech-forward approach continues to uncover new efficiencies that translate directly to our bottom line, supporting our profitability both in the near and long term.”
During the second quarter, WEX increased its revenue 8% year over year to $673.5 million, which was record-high second quarter revenue, according to a presentation released Thursday.
The company saw year-over-year revenue gains across its three segments, with mobility up 5.7%, corporate payments up 10.0%, and benefits up 12.9%, per the presentation.
“We have strong conviction in our growth strategy and are continuing to deliver against our operational efficiency targets that drive commercial reinvestment and margin expansion,” Smith said during the call.
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