Corpay, Inc. ($CPAY)

Thanks, everybody, for joining. My name is Tien-Tsin Huang, I follow the Payments and IT Services Sector at JPMorgan. Really excited to have Corpay back, Peter Walker, CFO. My first time having him at the conference. So super excited to have him here. Thank you for being here.

Great to be here with you.

So we'll do a fireside chat. I put together a bunch of questions. I think, if there are any questions in the portal or from the audience, we'll take those as well. But again, I appreciate the time.

I thought we'd just start, if that's okay, Peter, with the obligatory macro question and what you're seeing on the ground? How healthy are SMBs? What are you seeing in terms of activity? Maybe start with that, if that's okay.

Yes, happy to. So maybe talk about it in 2 ways. One, fundamentals in the business and then what we're seeing in the overall macro environment. So the fundamental business trends are strong. We reported 11% organic growth for the quarter. It's our fourth consecutive quarter of 11% organic growth. So really thrilled about that. We actually came out of the gate stronger than we expected, as we expected originally for a lower organic growth for the quarter. Revenue retention is 93.5%, now including cross-border, so also really strong, and 24% sales growth year-over-year. So we are really set up well at the beginning of the year. And as you know from the call, we raised our revenue and adjusted EPS guidance for the full year. From a macro environment, the world is on our side right now. So I would say that higher fuel prices in the U.S. are helpful to the business, while it's rather a small part of our business today, it's still helpful. The weaker U.S. dollar is obviously helpful for us, given we're such a global company and the FX rates related to that. And then just in general, I'd say, volatility in FX is helpful for our business in our cross-border business, which I know you joined our teach-in last week and learned a little bit more about that.

Yes. I'm sure we'll dig in on that. So just quickly, just get out of the way. I know people asked me to ask you just the sensitivity to higher fuel prices. I know diesel is all over the place relative to regular unleaded. So just quickly walk us through the sensitivity there.

Yes. So I'd say just a reminder, right, in the U.S., our USDP business is about 10% of our total revenue of $5.3 billion. So I'd say higher fuel prices are helpful for the business, but it's not a needle-moving impact on the overall business. Higher fuel prices for a longer period of time are helpful for profitability of the business because typically, prices remain higher longer, which means there's a spread component on the back end.

And beyond fuel, thinking about just the signals out there watching the macro, anything else, Peter, that you pay attention to, especially with you joining the firm, what have you found to be helpful?

Yes. So I'd say we track a bunch of KPIs across the different businesses. Obviously, having 50% of our revenues overseas were really attuned into what's happening on a macro basis. It's super helpful that our largest and most profitable business is cross-border, which is in the business of managing risk for other CFOs. So Mark is a great partner to Ron and I in terms of input and really tracking what's happening macro. And as I said, right now, we feel like we're set up really well for the rest of the year.

No, it sounds that way. It definitely came across from the call and you've been on the teach-in recently. But before we get to the business, just a couple more on the headline result. There was overperformance. You said the majority of it, 2/3 of it was not macro related. So what's coming in better than expected? What's driving the step-up in financial performance, if you were to summarize it?

Yes. So I mean, the great thing, which we all hope for, is we just got off to a faster start with a lot of our initiatives this year, which was super helpful. And if you look across the segments, we had overperformance in all 4 of the businesses, especially overperformance in Corporate Payments, which is obviously the crown jewel and what we're moving towards as a total enterprise, but really pleased with the trends. So 2/3 really came from business fundamentals. And then as we talked about, the world is just being helpful to us right now. So benefit from exchange rates and benefit from fuel prices.

So pretty broad-based, but definitely a big help from Corporate Payments. So let's talk about that, that you're pivoting more into Corporate Payments. You've done a great job of remixing there. I think you're ahead of schedule in getting that to 40% of revenue, which is great. Why is mid-teens plus the right target for growth? That's the most common question I get from investors. So how do you benchmark that?

Yes. So we worked really hard in terms of doing our first teach-in last week on cross-border. And I think one of the themes in that cross-border teach-in and as holistic to Corporate Payments is our competition in this space is regional banks. So call it, Tier 2, Tier 4 regional banks in all of Corporate Payments. Our competition is not the other in fintechs out there that are relatively small compared to us in these spaces, especially within cross-border. I wouldn't say not that there's -- not competition. But there is room for all of us because there's an underserved market by these banks that we can look to serve. So I'd say this is about gaining share, and we've just had incredible success in being able to do that.

Good. Good. So a lot of ways to follow up on that. The standout for me was that you've got very high retention, upper 90s, but you've had a pretty consistent track record of reproducing the 20% of new sales growth or bookings or whatever you want to call it, replenishing the backlog in the pipeline. How sustainable is that? Where are you driving or sourcing that new revenue?

Yes. So maybe we start with retention quickly, right? 97% retention, wallet share gains is a large part of that retention. So important to think about in the cross-border business, when we think about international payments and then we think about risk management contracts, they're really peanut butter and jelly. So a client who's doing international payments is also very interested in a company that has those capabilities. So it allows us to compete in a different way than others. So that's really what's helping us grow the wallet share. And then in addition to that, right, we're really focused on growing our global bank account product. So overall, we feel really good about the retention side. If you go to the new sales side, and the same thing runs true. When we're going into a new client, and those are purely new sales, so we're including in that, call it, 20% plus. What they're interested in is that we've got this fulsome suite of 3 products to offer and they all go together really well. And again, here, we've sized the TAM at about [ $160 billion ] in terms of what we can serve in that, call it, Tier 4 -- Tier 2 through Tier 4 bank market, and we have less than 1% of it. So the ability for us to grow is really about capturing additional share. As you know, we've talked about our partnership with Mastercard which we're excited about. What that partnership allows us to do is to take these capabilities and actually sell them into the Tier 2 through 4 banks and allow them to have the same capabilities. They can white label them if they want, but really resell that product where today, they're not very successful, right? So it's not only about going after the clients directly, but we also have the ability to sell into those banks Tier 2 through 4 and have them resell the product.

So Peter, in lay terms, just tell us like your ideal client that's consuming everything that's got high wallet share? What does that look like? Can you give us a real-world example of what a customer might look like there?

Yes. So it's interesting within the cross-border space because I think all of us here in the U.S., we don't deal with foreign currency very often. So I think it does become a kind of, "Oh, what is this?" So I would refer the audience to the teach-in that we put out last week because the goal there was to be super transparent. And what we used as an example in there is we used a middle market company based in the U.K. who was then looking to open up offshore operations in different countries, right? So kind of the first use case that you start with that middle market company is they're going to have employees in a different country and they're going to have vendors in different country. So the natural place that we really start with that type of a client is how do we help them create their FX program and get those vendors paid, what then they typically stand is, "Oh, there's risk in international payments. How do I manage that risk? Corpay, can you be helpful to us in terms of managing that risk?" That's how the relationship starts, I'd say, with a lot of our corporate clients. If we move over to our private capital market clients, which is really the base that we bought when we bought Alpha, think of this as [ Bain ] Capital, right, or a PE firm, we typically start with them when they're looking at a transaction and they're looking at a transaction in an international country and they need to open up a bank account. And by the way, with a Tier 2 to 4 bank, it takes 4 to 6 months to open up a bank account. I don't know if you've worked for private equity, I have. That's an eternity in private equity time, right? So our ability to open that account within, call it, a week, satisfies their need. And then once we have them on, their thought is, "Oh, how do you protect the volatility of this payment that I'm going to transfer," right? So then that leads to growing wallet share. So I'd say both corporates and private markets, and then I talked about financial institutions, those are 3 of the 4 segments in cross-border. And in addition to that is digital currency. So hopefully, that gives a little bit of a view of how a client works.

And I think -- I do encourage folks to listen to it. I think it was very helpful to think about the plumbing. But I thought the important takeaway -- it's hard to fathom it, but the idea that the actual money movement part is not where the value is. That's not how you get monetized. And I think there's a lot of fear, right, with stable coins and how that's going to lower the cost of money movement in the rail. I think that gets too much play relative to the other services around that. Can you just give a 30-second summary of that, if I'm articulating that right?

Yes, happy to. I mean innovation is always exciting, right? And so I think investors' role is to always be looking at innovation, saying, how is it going to change the market? What we really wanted to do in the teach-in was kind of how further educate. So I think, Tien-Tsin, the best point I can lean on is over 85% of our revenue is in G20 currencies. Those G20 currencies are super liquid, they're nearly instant and there's a pretty thin spread there, right? These are sophisticated markets. So there's not disruption to be had in terms of the rail, so to speak, or really in terms of the margin. So that's kind of the first thing that I would lay out. The second thing that I would lay out is running, what we believe, is the largest cross-border business outside the banking system, takes many more capabilities than the rail. The rails is just one component, but one, you've got to have a great customer acquisition engine. Two, you've got to have liquidity across the world. We're now in a place today that we can net over 60% of our trades, which is super important, and the technology that we have and the licensing framework. So we've been investing in this for, call it, 20-plus years. The idea of somebody catching up to at the rate we're growing, I think that's going to be difficult. And then lastly, I would just say, hey, blockchain and stable coin, we think the really interesting use case here is the 24/7 settlement, right, the after banking hour settlement. And we're really leading in. Ironically, JPM has built the Kinexys product. We're really enthusiastic about it because it is using the blockchain, it is a tokenized currency, but it's not a stable coin, and it's easier for people to use because they don't have to go on chain and off chain. It's such a -- it's a less difficult process of doing that. And the idea of foreign currency exchange still exists in that product. So we actually think that the uptake of banks who've always been the leaders of top-tier banks in money movement in the blockchain and tokenized currency, that's going to be the real winner versus stable coin.

And how does Alpha fit the acquisition?

You mean in totality?

Yes.

Yes. So Alpha, really, 2 pieces to the business, right? They had the private capital markets business and they had the corporates business. The private capital markets business brought with it about $3 billion in deposits in global bank accounts, really focused at asset managers and as I described, kind of Bain Capital example. So what we're super excited about there is Alpha was licensed in the U.K. and in Continental Europe. We have license in Australia and we have license in the U.S. So big picture in terms of synergies, that's a huge opportunity for us. I'd say there's also a whole other list of taking a company the size of Alpha and adding it to the company our scale that we get benefits out of. So what I'd say in terms of synergies is back half of this year, as we have shown in our guidance, there's an uptick, and that's because we'll see those synergies come on board, and we expect even a bigger impact as we go into 2027.

Right. Just by exposing it and getting that geo expansion, I think, naturally creates those synergies.

That's correct. And the great thing is the global teams are already working together. So we got that figured out really quick, ended the year strong in cross-border out of it. And then as we shared call, we moved about 15% of their business to our one global platform within cross-border. And through mid-summer, we'll move the rest of it. So this is -- we're a serial acquirer here. So these are new things for us in terms of how do we get the synergies out as soon as possible.

No. So the deals have been good. So let's stay on that. I think you and Ron have said that the pipeline is really, really strong and active on the Corporate Payments stuff -- front. It feels like it's imminent. Can we assume that they have similar criteria or common features what we've seen in past deals? Or could these be different?

Yes, I think you should assume they would look similar to past deals, right? I mean, Alpha was a very large deal for us. Second in the company history. So I'm not sure we've got something that big in the near time -- near term. But hey, we are an acquirer of choice, right? So people reach out to us all the time with different ideas, whether that's large businesses or whether that's innovations we can buy and enhance our products, et cetera, and our open sign is on in terms of M&A and deals.

Okay. Yes. I think sometimes we underappreciate that, right, that Corpay is a destination of choice for a lot of targets to join. So no, we're definitely excited about it. Anything else on Corporate Payments I didn't ask before we move on?

Well, also, we didn't talk about our payables business, which I would just say, again, a lot of white space there for us to compete within the payables business. There's really 2 products in there. One is our spend management product and the others are AP automation products. So those businesses continue to perform well, and the organic growth rate for Corporate Payments in totality from payables and cross-border was quite strong in Q1, as we talked about.

Yes. We've been seeing a lot of ads from people forwarding -- or texting me [indiscernible] management. So it sounds like Corpay's been pretty active on that front. Okay. Before we open it up for questions, I just want to hit a few more, just on the Vehicle Payment side, if you don't mind, Peter. Just -- you're back to double-digit growth. You've got 3 major geos there. Any surprises, anything to consider as we move into the second quarter and the back half across the 3 geos?

No surprises. I'd say everything is performing as expected. Brazil, much higher growth, call it, mid- to high teens. If we move over to Europe and rest of world, super consistent, delivering, call it, 9% to 10%. And then USVP delivered 5% in Q1. So everything really tracking our expectations there.

And I know you've cleaned up the down market within the U.S., so not as much exposure to very small businesses, and the credit performance has generally been good. We get this question quite a bit. Is the credit performance, some of the delinquency signals out there, how do you see that?

Yes. So we manage it very tightly. To your point, we really moved out of the micro SMB, which cuts it off at the heels, from that perspective. Typically, when the fuel business grows, which there is some impact of growth, obviously, from what's happening in the macro. We've watched credit even more carefully, right? Because this product becomes more popular in the macro. We could do with this macro because you all of a sudden have companies who are running a fleet of 20 that didn't think they needed a program, and they need a program now. So I'd say the good thing is it enhances revenue, but it ensures that we're running our credit processes so we don't upsize our credit risk.

Okay. And then on Brazil, you mentioned mid-teens plus on that. What's the growth algo there? I know non-toll has been an important driver for the company or at least an important strategy for the company. Where is that in the growth algorithm?

Yes. So I think what's really impressive there is over 40% of the revenue is coming from non toll. And so what we built is really the best network in the country related an individual vehicle. And through that network and the super app, as we call it, they're able to buy toll, parking, insurance, vehicle debt to really diversify the offering. So I'd say toll continues to perform well, but we're seeing a lot of growth around the additional products that we're offering. We did 2 vehicle debt deals in like the last 2 years, where the, really, the primary owner business in Brazil, and it continues to perform really well for us.

How do you see that mix changing then, Peter, between toll and nontoll?

Yes, it's a good question. I would say that the non-toll will continue to a bigger part of Brazil going forward.

Okay. I know that a divestiture has been talked about there for some time. I know fitness is always a question, and I know there's a mix towards Corporate Payments, but what qualifications -- what qualifies the company to be potentially -- or a piece of the business to be potentially divested within Corporate? Specifically the Vehicle Payments?

Yes. So I'd say -- Corporate's had a great long history in M&A, right? 125 acquisitions over the last 25 years. That was really focused on high-performing payments business with great growth rates, great profitability. There's obviously the transition called a couple of years ago into Corporate Payments, where we realized some of those businesses like PayByPhone, we'll use as an example, that we recently sold. It's a great business, terrific growth rate, profitable company, but we felt that it was TAM-constrained, in order to be able to grow it. So that's really what we're focused on is when we look at Vehicle Payments, which of the businesses and other businesses outside of Corporate Payments, which of the businesses are TAM-constrained, and which of them can we not scale, right? Because as now we're a $5 billion-plus revenue company, the strategy for who we want to be is just very different. And kind of where I started out, the TAMs are so attractive in Corporate Payments that if we can reinvest the capital, let's say, in buying back shares of Corpay and then we generate so much cash per year, almost $2 billion a year, my ability to do M&A Corporate Payments is quite high.

Yes. Okay. So let's open it up here in a second, but you mentioned it there. I think Ron, CEO, said that he'd be tempted to buy back half the company given how cheap the stock is today. But in the same breath, he's also talking about wanting to do deals, which has been a super power for the company. So as the CFO, Peter, how do you balance those 2 things?

Well, just going back to being CFO of a company where this year, we have $2 billion in free cash flow, I have a lot of optionality. So if you look at kind of -- and we published this chart in the earnings deck at the end of the year, if you look over the past 8 years and kind of the split between buybacks and M&A., it was about $15.5 billion we spent, and it was almost 50-50, a little bit more weighted towards buyback. So it's always a thought of what is the most opportunistic thing for the company, given we're still undervalued, buybacks are really attractive. Where Ron was going -- talking about the future is we're just about -- and we'll announce it later this week. I just refinance all of the debt of the company. And through the process of refinancing in November related to the Alpha acquisition and this financing process, we are just an incredibly attractive company to the credit market because of our free cash flow dynamics and our growth dynamics. So when you look at the free cash flow of the company and the ability for us to continue to take leverage, by the way, not above 3x, which is our stated guidance, it puts us in a place of saying, hey, if we continue to sit at what we believe is a very depressed stock price, we'll just continue to buy back shares. And that's how we create valuation for our shareholders, and at the same time, we'll be able to do M&A. So if you look kind of at the past what we did with that $15.5 billion, what can we do with it in the future, that's what Ron was focused on.

Good questions. Happy to take questions from the portal of our folks in the room. Otherwise, I could go on. Yes, we got a couple.

Just on deals. You've talked about doing 125 in the last 21 years. I'm just curious to know, going forward, how do you frame internal rate of return when you acquire something?

Did you hear that?

I think how do you frame IRR on deals? Is that right?

Yes.

Yes. So we've not specifically disclosed kind of what our framework is around that. But I'd say if we look at the history of our deals, the IRR has been extremely high. And so our expectations would be to continue to produce that. I can't hear you without a microphone.

Would 20% be a ballpark figure? Or is that too low? A 20% IRR threshold, is that too low, too high?

I'd say it's -- that would be at the minimum.

Makes sense. Thanks for the question. Anyone else? [indiscernible] point. Yes, [ Brendan ]?

Yes. I'll follow up on a little different deal question. Given all the noise that you all have had to address in -- as it relates to cross-border business with stable coin. I know some of the assets like yourself in the public markets are trading lower. What can you share about target company expectations or rationality about valuations? How rational are sellers at the moment given obviously the benchmark of Corpay stock is pretty attractive.

It's a pretty good question. I would say in the market, I mean, I often hear this, and it always makes me want to cry, but people always say to me, "Hey, you're a great house in a really bad neighborhood." whenever I ask about how we're trading and the stock price. But I think what that means is that deals are available at pretty attractive prices right now. People -- I don't think investors truly appreciate cross-border. We're hoping that we helped with that last week in the stable coin risk. But I'd say there's a lot of things out there that are pretty attractive. On the same hand, as we just talked about, we're also in the divestiture business right now. So that's always the debate on the divestiture side is we probably like to move a little quicker there. But again, those multiples are kind of pulled down by what it looks like across the overall market.

Anyone else? So I wanted to ask about incremental margins, if that's all right, especially with the mix shift going on and you're moving more into Corporate Payments. I think Corpay has the third highest margins in our whole coverage behind Visa, Mastercard, which I think is underappreciated, but also creates a high bar around margins. So as you see this evolving net of divestitures, can we still see accretive incremental margins? Or is that too much?

So adjusted EBITDA margin runs about 55%. This year, we're slightly down from last year. That's mostly driven by Alpha, right, and bringing them on as is versus getting through the synergy process. So when we talk about '27, we should be able to talk about some margin expansion into '27. But I think the important thing to think about here, Tien-Tsin, is we run a really attractive margin, but we also are a 10%-plus organic growth rate company. So I've got to fund the growth. So finding that mix is really important. So I'd say we're getting out kind of long term, like 3 to 5 years from now, and we've done that full rotation in Corporate Payments. Yes, I would expect some incremental increase in EBITDA margins, but I also want to be thoughtful of making sure I'm feeding the business to deliver the growth that I've committed to investors.

No, for sure. I think that's the right answer, Double-digit growth is coveted. And if you can produce that, that's very, very powerful. So the obligatory AI question then, Peter, just to ask it, we went pretty far along without me asking you the -- is that a big initiative? Again, the margins are high, but do you see a lot of opportunity to unlock some productivity and maybe break this linearity between revenue growth and people?

Yes. So I'd say our focus right now on AI is on our products and how do we improve our products. So we've introduced AI agents across many of our products, right, to bring value to market. We recently announced that we are going to have purchasing cards that AI agents can actually use. So we've got the controls in place to be able to do that. So we think that's pretty exciting that AI agents will be [indiscernible] for customers, to be able to make payments on customers' behalf. So that's been where we're leaning into. I think the next question there is probably, "Hey, can you charge for that?" And I'd say too early on to tell you, but really good question. Also, I'd say on the efficiency side, we've been focused on it, I'd say, throughout the organization. I think there's a lot of thought if you think of the organization, unfortunately, as hierarchy as a triangle, the opportunity for AI is at the bottom in the middle, right? And so don't get me wrong. In call centers, there's opportunity. We're focused on it. In engineering and optimizing engineering and focusing their time, we're focused on it. But we also believe, at the thought leader level, the Peter Walker level, the Ron Clarke level, that AI can be a huge innovator. So I'll give you a great example of a cross-border presentation that you saw last week that was presented. A lot of that is through proprietary data and public data that we've added into a database on the cross-border business and asked it a series of questions so we're able to create, call it, an investor level intellectual document. So we think that if we can help the top 150, 200 leaders across the organization, cut half of their time on things that are not creating value like the initial pulling together of a presentation or refining of it and really focusing them more on driving the business, then there's benefit. So I'd say we have religion on AI and continue your updates...

Good. That's a good summary. I think you -- I think in the spring, you hosted an [ off-side ], we brought all the leaders of the companies -- of the company together and talked about strategy and the go forward plan. Does it sound like AI is top, top of the list of things. But you tell me, where did you gauge the energy to be the highest in the company that you're willing to share with us here?

Yes. So it was my first time participating in the leadership off-side. This is my fifth CFO gig, so it's not my first time doing leadership [ offsite ]. So you always go into those, sometimes with an, "Uh, what is this going to be? Is it going to be interesting?" I'd tell you it's the best one I've ever been to because it was a true working session. Like we all came with sessions with prepared materials, but the whole group got the opportunity to absorb the materials and make decisions on it. So I'd say where we started that offsite was the voice of the investor. I think you always know kind of the culture here is we want to hear from investors, the good, the bad and the ugly, right, all of it, right? And then because that helps us become better, right? So we really started the session with the voice of the investor, then what is our strategy? How are we placed today? We looked at a bunch of other companies in the market, kind of how we line up. We did a review of all of the lines of businesses that we own. And where we left the meeting was just a stronger conviction than ever, that Corporate Payments is the journey that we're on. And I think if you probably picked up on our last earnings call, Ron kind of leaned into, hey, PayByPhone, we did the divestiture. We've got another one on top of size. And we've got some other things we're contemplating for the rest of the year. So things like that were outputs of meeting where, as a leadership team, we got together and said, "Yes, the future is Corporate Payments. How do we continue to rotate into it faster?"

Good. Any final question here? Yes. Maybe use mic, if you don't mind. It'd be easier for everybody.

Peter, if you could do a pre-mortem of, let's say, 2 of your biggest businesses, the transportation business and the cross-border business, what will be your biggest concerns?

Sorry, which 2 businesses?

Let's say, the transportation, the fuel business, and then the cross-border business. Do you know what I mean when I say pre-mortem?

Pardon me?

Do you know -- does the question about pre-mortem makes sense?

You go ahead and define it for me.

Well, basically, like if you could imagine something going wrong with those businesses, what would it be? Or what are you most concerned about longer term?

Well, so if we look at the Vehicle business, right, there's 3 businesses within that business based on geographies, right? Think about it as Brazil, Europe and Rest of World and the U.S., and we kind of walk through the positioning of those businesses. And I'd say kind of U.S. VP business is the lowest growing business in there. But I think we've managed that to a good state, and that was really the company's heritage starting in that business. And now it's at a $500 million business today. So I'd say if there's anything in there, the progress we've made is a transition out of the micro SMB and really going up market. So I'd say I'm not overall concerned about the risk there. Brazil performing really well and Rest of World, really well. Moving into the cross-border business, I think my biggest concern is like investors don't understand the business and really helping investors better understand the business. So something I've been super focused on. I've been in this role for about 10 months. And by the way, we've had 3 quarters of beaten raise over those 10 months. So I'm pretty proud of that in terms of the company performance and results. But something I've been super focused on is transparency and helping investors better understand the business so that they can come to their own conclusions about risk themselves. And in the cross-border business, I think the company has an overhang from stable coin, and this happens, right, when there are new innovations. And I think it's because people really don't understand the cross-border business. And by the way, I didn't understand the cross-border business until I came with this company, right? So it's no fault. When we sit in America and I go from Boston to New York to Miami to Atlanta, I don't have to change currencies. So I don't even think about, right? When I set up business partnerships across the U.S., I don't think about it. So the goal of the cross-border business was, "Hey, let's give transparency in the business. Let's give people investors enough detail without turning it into jargon. And let's also really give context to this blockchain innovation and how it will be helpful to the business." So that's probably been a big focus of mine. I do truly believe that we're super undervalued given the results that we produce. So our goal is the additional transparency will help investors see the business the same way we do.

Good. We got less than a minute left. I was thinking about a good closing question for you, Peter. But with you coming in from the outside, you've got a really interesting great background coming in from a different -- lot of different places, including on the private equity side, as you mentioned. We've always thought of Corpay. So from a value creation standpoint, Ron is a genius thinking about driving value and returns and things like that, but I don't work there. So with you going there, what's been validated in your mind in terms of the secret sauce of Corpay and maybe what we all don't appreciate coming -- looking at it from the outside?

Yes. I'd say we've got the benefit of being a large S&P 500 public company, but operating like a private equity company, right? So I've reported to 4 other CFOs and CEOs in my life. With Ron, it's a constant let's reimagine the business. Let's think about some things differently. Oh, I have an M&A idea, right? As opposed to other professionals, CEOs I've worked for have been, "Oh, we've got the Board meeting next week or oh, kind of the judge and the bureaucracy, like don't get me wrong, you can't help that in a large company, but we try and minimize that as much as possible and really focus on the value creation, and that comes from the very top of the house. And I don't want the company to think that Ron is the only one right? I mean there is a leadership team which he has built and then a team underneath us, and all of those are indoctrinated that culture of we show up every day to create value, not to just punch the clock and be an executive. And that's why I joined the company. I love it.

Good. No, culture comes from the top, and we always learn when we track the talent. So glad to have you here and part of the company and look forward to chatting more.

Appreciate it.

Thank you, Peter.

Thanks.