WEX Inc. (WEX) Earnings Call Transcript & Summary

All right. Let's get started. So joining us next, I'm excited to bring up Melissa Smith, who's been in her role as Chair and CEO of WEX since 2013. Prior to stepping into the CEO role, she held a number of leadership positions across the company as well as a 4-year stint as the company's CFO. Thank you for making it here, Melissa. Appreciate it.

I'm very excited to be here. Thank you.

Yes. It's nice to have you in person. So look, WEX has been able to win in a highly competitive marketplace. Maybe you could talk about your capabilities and the offerings that differentiate WEX and give you the confidence that you're going to hit the long-term targets you've outlined.

Yes. Sure. Part of the confidence starts with track record. So if you go back -- CAGR for the last 5 years ending in '21, revenue growth reported was 13% despite the pandemic. And EPS was 19%. I feel good in part because of where we're coming from. But from a product perspective, I like where we are because we have developed through customer-focused innovation these really specialized solutions in each of the verticals, so as you know, fleet and health and corporate payments and travel. But that's all sitting on our technology platform. And increasingly, that, for us, is a way that we've been able to continue to sell but create scale within the organization. So we have these specialized processes that we have that are very focused on the verticals. We go into the marketplace, we have really strong sales execution. And at the same time, because we've done a lot of work on our technology, we are increasingly able to pull through from one vertical a capability into another. And as a result, we were able to actually really think about how you sell more into that customer base. So from a product perspective, fleet, we've really been focused around how we can use that proprietary network and extend our capability. We talked about the fact that we're adding on capability with opening up acceptance with our Mastercard relationship. So that with those fleet customers, we can focus on not just buying what they have historically, but actually adding on capability. Also doing that digitally, so that people can -- when they come into our website, they have the capability of purchasing more. On health care, we're very focused around how you can actually extend the ben admin solution we have into other parts of that ecosystem. In travel and corporate payments, a lot around embedding payments and creating scalability as a result of the work that we do there. So I feel like we've got some really unique barriers in each of the products we're in. But we have a scale of having this commerce platform that really did play across the enterprise.

Yes. I mean, obviously, we agree. You guys are doing very well inside the verticals that you operate in. I don't know that there's as much appreciation how much specialization there is required and how modern the tech is. Maybe you could just speak to your technology versus some of the newer technology. Because I think some of the newer fintechs come in and say, well, theirs is better. Maybe you could just help us think through that.

Yes. So we have moved 80% of our technology into the cloud. Anything that we've been doing has been cloud native for years. So again, part of the strength that we have is the fact that we've built these solutions over many years with customer-focused innovation. So we're solving unique use cases for each of the industries we're in. But at the same time, we're doing it in a way that's scalable because it's sitting across our technology base. We've done a lot of work to really move the technology we had into microservices, making sure that it's scalable and shareable across platforms. And I think we're really seeing the benefit of that right now. So when you compare us, I think the part of what makes us unique is we have all that technology. But at the same time, we have over 600,000 customers. And so we have an ability to actually use that as -- in the data that we've collected with those customers to create insights that -- just really think of it as like the great network effect. The more customers we add, the more work that we do, the better the products become, the more data that we have that we can actually accelerate the next set of products.

I guess is there something that the fintechs are doing that is better than what you guys can do with what you have?

No. I think that often, what they're doing is they're very focused on a narrow sliver. What I like about where we are is we can do that narrow sliver, but then we can say, if you want that, here you go, here's an API, connect them through that. If you want this, here is a whole host of offerings that we have. And including the fact that we own a bank, we have an ability to actually offer products and services through that. And so I actually -- I find it -- and we've been very focused around scalability. So from a cost perspective, too, that we have an ability to compete in the marketplace.

So yes. Well, maybe we drill into corporate and travel because those businesses or that segment has definitely been quite a focal point for investors, right? I know Steve loves it. But yes, maybe you can -- maybe in your own words, you could give us some comfort around what we've been seeing there because I think people have been a little concerned on the yields coming in. But obviously, there's -- that's been offset by the fact that you've seen good operating leverage as well. So maybe you could just speak through what's been happening there and how you see things progressing going forward.

Yes. Sure. So travel and corporate payments for us, as you know, there's a heavy component of mix that will affect the rate. And I know people have been very focused on rate. So let me split that segment into a couple of products. So when we go into travel and corporate payments, we really are selling primarily 2 products: Our embedded payment product, which is really grounded off our technology. So it's an infrastructure play where people are doing something into the marketplace. They're interested in taking our payment capability, embedding it in the workflow and then they scale. And so that business model for us, very little incremental costs, lower revenue that we're going to assume when we add a customer with that product set, highly profitable going forward. And so as you see that part of our business scale, you're going to see the rate blend down, but at the same time, highly profitable. So -- and you can see that in the course of 2021, we had a couple of things going. We had more of a blend towards that product set at a lower rate. And at the same time, we were integrating eNett and Optal. And so you saw synergies coming out. And so those things combined created lots of operating leverage. So operating margins were improving each quarter, but the blended rate is going down. We also had travel volume increasing in the course of 2021, which is built more on the back of that embedded payments product. So it tends to have also high scalability, lower net rate. And then on our AP direct product, that product is -- it's great. We're outsourcing and taking people's AP payments, making that on their behalf, a lot more cost structure associated with that, higher revenue, higher cost, also great margin profile. But the blend of what's happening between those 2 things will move the rate. And so we added disclosure around that. We actually specifically broke out over the last couple of quarters the rate between travel and corporate payments because that was the easier way to talk about it in volume. And you can see as travel volume increased in the course of the year, the rate was blending lower. And what we said in 2022 is we think the travel rate will be relatively flat and that the corporate payments rate will drop a little bit as more of that embedded payments activity comes through.

And so how easy is it for someone to come in and do what you do in travel? Because I think that has been sort of the undertone of the concern there.

Yes. Yes. What we do in travel is actually fairly complicated because we're doing it for a customer on a global basis. And so...

I still remember when you guys built it out. I remember. It was a multiyear initiative.

Yes. Yes. So you start with this idea that they're embedding a payment, but then you layer on top of that but integrated within their systems as real-time payments are occurring. They're occurring across the world in different geographies. And so we have an ability to settle an issue in over 20 currencies, which is really impactful to the online travel agency that we're working with. And the actual charge-back volume and activity is really huge. And so there's a scalability aspect of that. So it means we ended up having to be licensed and operating around the world in all these different geos, recognized by their central banks, having the proper regulatory structure in place. It actually is a very complicated model that we've built. And as a result, and we've done this working with our customers, this is -- they're embedded in their workflows. So it actually is pretty complicated to -- the idea of stripping that out, particularly the work that we're doing that's cross-border.

And obviously, we've seen a precipitous decline in the yield as that business has scaled, as your partners have scaled. I mean, how much more downside is there as we think about the pricing there?

I think of it as more -- we have worked over the years to make sure that we are reducing the cost so that it's highly scalable. And so that part of our business, we're very focused on making sure that we continue to have a highly profitable model. And that's been a big part of our focus. I don't think -- we don't expect to see huge changes from a rate perspective.

Okay. And then when we think about the corporate payment side, obviously, there's a lot of different players that have entered the arena. Maybe you could just like compare and contrast. Because you work with some of the fintechs, you're obviously competing as well. And I know that you do that across all your businesses. But maybe you could just speak to that because there's a lot of attention being paid to that sector and the new players inside that space.

Yes. So I find this interesting, right, because we've been in a very competitive market for a long time. I think what happened is some of those people went public. And so it didn't change how we viewed things competitively in the marketplace. And so I -- what we have thought all along across everything we do, what we focus on, we want to make sure that we are highly focused on solving customer problems, and we're looking for unique customer problems to solve. We're trying to do that in a scalable and reliable way, and that's true when you think about what we're doing in the corporate payments world. The part of what enables us to think about this differently, we feel really good about the underlying tech. So again, like what we've got there was cloud native. I would put our technology against anybody's. And then at the same time, we have an ability to offer that technology across our portfolio of over 600,000 customers. And so we come into this with an ability to actually really think about how we can use that across the business. I mean, part of why we made changes to our underlying org structure was to make sure that we're really taking advantage of that. And we're having customers who are interested in being able to do more, buy more, have more capability with us and -- so that we can actually think about that customer experience end-to-end. And so a corporate payment solution is something that we can apply to a customer that's sitting in another vertical. And so part of what I think is a differentiator for us is the data that we collect associated with that customer set and -- which we use to create insights across the portfolio and just the relationships that we've established that are sticky and have been there for a long period of time. The technology is great. Again, I'd stack it against anybody's. And then these solutions that we're continuing to create with -- for our customers based on this customer-driven innovation that we've been cycling through faster and faster. The more that we change technology, the -- just faster we're able to move.

And definitely, it seems like a differentiator for you guys is you're willing to provide the software or be the infrastructure.

Yes. Yes.

Maybe we could just kind of pull up a little bit and think about the various businesses you're in and post-pandemic, sort of where are we today relative to pre-pandemic, right? Because there's obviously been impacts across your business. Some have come back better than others. So maybe you can just walk us through each segment and sort of tell us where we're at.

Sure. Yes. And I'd start with 2021. We were 7% higher in total than 2019. So net-net, we were net positive from where we were before the pandemic. And I'll start with the one obvious negative, and it's travel. So travel is still down from where it was before the pandemic. And we have seen steady increases in -- when we gave guidance for this year, one of the things we said, we saw a little bit of a pullback in the beginning of this year, '22, because of Omicron. And that was true. That was included in our guidance. We expect to see continued improvement in the course of the year. If you compare what we saw in 2021 within our travel customers, you saw improvements in Western Europe and the U.S. Asia really didn't see much improvement in terms of a rebound. We do think that you're going to see that continue to get better over the course of this year, but we think this is a -- like it's a slowly improving yield that we're going to see across that customer base. That being said, we feel like we're really well set up. We have relationships with 8 of the 10 largest online travel agencies, since we're established and -- there to continue to partner with them as volume does rebound. If you go across the other segments, in our fleet business, we've had a really great sales year in 2021. We had -- name after name, you can see that coming through. It's part of why we feel really good about our 2022 run rate is because we had strong implementations across. We had a digital marketing program that really had great results in 2021. That's something we'll continue to deploy in 2022. And so if you think across the customer segments, over-the-road business, we've been really doing incredibly well, bringing on new business. They've also, as a customer segment, have seen a lot of volume increases from the pandemic. You've had these kind of structural changes, and I think that they have been just a benefactor of that. In the North American fleet business, so think of that as local fleet, you have -- the largest of those customers were still a little soft compared to where they were before the pandemic. And I think -- I tend to attribute that to lots of people that are still working from home and -- where smaller businesses actually continue to just perform. There were more essential services in that category, and they performed throughout the pandemic. So I think there's a little bit of latent demand that's probably still sitting in that North American fleet portfolio. But overall, volume has returned to before pre-pandemic levels, largely because of our sales capabilities. And then in health, we have great enrollment season. We feel good about how we came into the year. We're already providing services for over 50% of the Fortune 1000 and an ability to just to continue to build upon that within our business. And so that continued to grow through the pandemic. The growth was a little bit more muted than it had been prior, but it continued to grow. And we feel like this year, we've said, we think it's going to land in the teens, high teens this year.

Do you think there's been any structural changes in behavior, whether it's consumers or businesses, that are going to be long-standing impacts for you guys?

Sure. Yes. I mean, I think that I would describe a lot of that -- and the French -- a lot of that's opportunity for us, though. When I think about structural changes, I think this desire to have things delivered, which always affects our over-the-road customers, I think people have come quite accustomed to that. And I think that, that will change. I think this move to digital, people have become much more tech savvy in the last couple of years. And I think that, that's going to be something -- it's a trend that will -- I feel like that's a benefit to us as well. And so I do think the world is a little different than it was before, and some of those changes are going to be lasting.

And then when you think about like the inflationary pressures on energy, inflationary pressures generally, like how do you -- how does that filter through to your model? Understanding on the surface, it helps revenues and fuel, right? But are there other negatives as well or none?

Yes. I think it affects, as you said -- I felt that.

Yes. I was like, "Oh my God."

We see it on both sides. We see it from a revenue perspective because prices are up, and that comes through as we earn a percentage of that, whether that be in fuel prices or just cost of goods. And then on the other side of that, as an employer, we see that coming through from just a labor cost. What I hear from our customers is that same thing, it's a lot about labor cost. It's availability of labor and labor cost. And I think that's -- if I were to think of something more overarching that we hear across businesses, it's this concern around that and how that affects their business.

And I guess when I think about how it affects your business as a result of that, right, is that a plus or a minus? Because they would try to look for operational efficiencies, and you can help provide that. Is that correct?

Yes. I think the net part -- because people aren't able to get -- even get sometimes the human capital they need that they're moving more to automation.

I see. I see. So it's been an accelerant for automation as well.

I think so. I think that it's -- I think people have become more willing to change and to try new things, and that's certainly -- that is, I think, a benefit to us and our desire to continue to innovate.

And then when you think about supply chain issues, obviously, that's been negative. Do the recent events sort of just perpetuate that even more or do you feel like things have been loosening up a little bit?

I think things more are loosening up. I don't think that we know yet in how it's going to play out right now. But yes, there was -- and you could -- from -- there was a period of time that some of our customers, like if you were an over-the-road trucking company, you couldn't even get parts sometimes to fix the vehicle to get it on the road. And so there were some -- and we still hear that people are trying to replace vehicles, and they're in the marketplace and just -- so there's definitely some of that. But I do think that it had been loosening and getting better. And we just -- it muted probably a little bit of what you could have seen in that over-the-road business, but it was already doing and has continued to perform very well.

Okay. Great. I guess you've talked, Melissa, about the cloud, 80%, I guess, is multi-cloud-based today.

Yes.

Is the goal to be 100%? And how much of that is actually reaching to your end user, you know what I mean? Like you've made the move. When do your customers actually see the benefits of that move?

Yes. They already see it. They may not know it, but they see it. Yes, our goal is to get to 100%, but that doesn't mean that -- where we are right now, because anything that we do that we're doing, we're developing cloud-based. I think it was probably -- the foundation part was really important, moving things into microservices, having it just shared allows us to think about things from a platform perspective and really being able to move quickly. And so the hard part of that is already done. Now as we continue to move things into the cloud, I think there's a net benefit of that. But I feel like we're now at a place where really, the thing that we were focused on is speed. We wanted to be able to go from ideation to test into the marketplace and to prototype more, and we're there because we're actually seeing that. Now we're actually -- be able to take an idea and move it into the marketplace, test it and learn. And that will only increase for us in the course of this year. So I feel like that was really the biggest motivator for us. The second thing for us was, it's important to our customers that we have a high level of reliability. And moving into the cloud has just made that easier. And so from the customer perspective, they would feel that part.

Got it. So I guess no conversation on fleet is complete without talking about EV, right? People are obviously concerned about the move and your dependency on fuel. Maybe you could just talk about sort of where you are in the strategy and how you see it unfolding over the next 5 years.

Yes. Yes. And we're going to talk about this in more depth at Investor Day. But I feel really excited about this migration for a couple of reasons I feel like we're in this pole position with our customers that are coming to us, they're asking for help. We have become so much more knowledgeable, we've developed a product road map. We have extended our relationship with ChargePoint. So the initial product set that we're building upon is this idea that our customers want to be able to charge wherever they want to charge, and they want to make sure that, that is integrated into one bill that goes into their system just like the rest of our workflows do. And so they want to be able to do depot charging, not at-home charging. They want to be able to do on-the-fly charging and have all of that information put together in a way that's easy for them to digest. And so that's the piece that we are building out right now. We have functionality in the market. We've been doing that. We talked about the fact that we have federal government as one of our test customers, and we're just going to continue to build upon that functionality. Then beyond that, there are a couple of other things that I think are very exciting. It's an opportunity to really think about how you exchange value in a different way. So we would move to more of a subscription model over time, which is what you see as more prevalent in this marketplace. And you would -- then we can see all of these products that we can offer into the market beyond this initial set of product sets. So I feel like it's an opportunity to help our customers as they go through environmental innovation and their transition and what they're going through. And at the same time, it's an opportunity for us to really change the way that we exchange value and that we earn revenue from the marketplace. And so I think it's actually an exciting thing.

I mean, that sounds exciting because, obviously, a big part of the volatility goes away in that situation to fuel. But I guess maybe if you could bring it to life, if you think about, I don't know, an electrician. And there's a bunch of people that go out every day, and they have their trucks. And then they come back to the lot and charge them, right? In that scenario, how do you help that electrician -- the electrical company?

Yes. What they want to understand is how much it cost to actually deploy that vehicle, right? And so they are interested in -- and how does that compare to -- for at least some period of time, they're going to have a gas-fired vehicle to, how does -- because fundamentally, these are businesses. They're making the migration. Sometimes if they're -- they may be making the migration out of some type of pressure, but most of them are making a migration still with an economic framework in mind. And so they really want to understand what the cost of that vehicle is. They want to understand how efficient is it to use that vehicle. And so what we can provide is really understanding that total cost of that vehicle, and we would be able to get a fee associated with really understanding that. They want it all integrated. They want to be able to do a bunch of different comparatives on what does that vehicle cost to run. And to the extent that we can help them also, talk about what it is in terms of just efficiency to use it. Now that's easier if all you're going to use is a depot. But mostly, for them, they don't have that space to actually do that. Now they're thinking about, "How do I offer this in multiple different ways?" And if my employee being able to charge at home is one of them.

And so you're going to have to line up different distribution partners, too, right?

Well, we have -- we've added a lot of network just through the relationships that we have right now. So that is definitely important to have acceptance. Beyond that, it's then making sure that we're able to data capture all the information that's happening in each of these different areas in a way that we can integrate it back to the customer.

Got it. And okay. I guess if we think about the fleet, just sticking to the fleet business, and we think about the more SME or SMB area, like has that fully recovered? Or is there still a lot more recovery to happen there?

Yes. I think that actually, the small businesses have really recovered. And again, in our world, it's the larger fleets that -- think of like a sales -- the sales per fleet -- a pharmaceutical sales fleet that's driving around, they're not doing that, right? So I mean, it's remarkable that we're all here together. And so that's just going to take a little bit more time. So I think of that as kind of -- that's the furthest reach for us. And all of the things that happen around the business, the people that are going into the business in order to actually service the facility, the -- all the -- think of the caterer and all of that, that happens, those are the things for us that had been a little bit softer. But in general, smaller business has done more on the fleet side than larger businesses.

Okay. And when we think about the economic proposition of the SMB, I mean, that's definitely a stronger contributor in terms of yields and such. So as those come back, those should be a nice tailwind.

Yes. Yes. I would say like across the borders, we just have seen this kind of steady reopening that's happening over -- that happened through the course of last year and just now, like a little bit more, a little bit more.

You alluded to this before. I think you guys have done very well in terms of taking share in the market. What has driven that? Like what's -- is it the competitive dynamics that sort of eased? Or what drives that success?

Well, it hasn't gotten easier.

You just got back.

Well, no, I think there's 2 things. I think I actually really do -- I believe in this concept of a network effect. I really believe that we had -- we started with better products. Like I actually really believe that we have the best products in the verticals we're in. We have market leadership as a result. And every year, we make them better. And when we make them better, our customer benefited from that. And then we have really strong sales and marketing capability. And so as we lift the product, we take that into the marketplace, and we're pretty thoughtful as we go into each of the markets and doing that both directly and through partner channels. And we've just seen continued strong results. In our fleet business, we've done a lot of work on our digital marketing capability. And we're now moving that and deploying that more broadly across the company. And so that helps with things. Like if you think of our fleet business, we have direct customers, and then we have partner channels. And there are a whole host of different oil companies that we are representing in that business. By having a digital marketing capability, you're actually able to really identify what brand is going to play to that particular customer set based on brand attributes and actually get much more targeted about how you're marketing. And that level of sophistication is something that we can actually learn from what we've done specifically in the fleet business and move it over into other parts of the business. And I think you've seen there's way more drop-through that's coming digitally, touchless into the business.

Got it. Shifting gears to travel. You sort of alluded to this before, Omicron obviously had some small impact. But where are we today with travel relative to pre-pandemic? And how do you see the recovery unfolding, hopefully, if things stay stable going forward?

Yes. Yes. So we have -- we believe and -- when we gave out guidance, we would see continued steady improvement from travel. We -- and I would say similarly, that's what we've seen so far this year is that there was a little bit of Omicron at the beginning of the year and then kind of this continued improvement pattern.

And you don't see anything -- well, it's kind of early with what's happening in Ukraine and such. Are you seeing any impact related to that as far as travel is concerned?

It's so small for us. Well, I guess if you're talking about Europe, it would be bigger. But when we see travel, it's when people actually go to the hotels. So it will be a little bit of a lag from what you would see from some of our travel customers specifically. So not yet, not from our perspective. And just to be clear, like the travel into Russia and that region for us is like really, really small.

Right. So your revenue pull from Russia is pretty small. It's not significant.

Yes. Yes. I think -- well, less than 1%.

Got it. Okay. I don't want to -- I want to talk about the health care business because you guys have done really well there. Now obviously, some unique situations there as well through the pandemic for a variety of reasons. Employment was weak. People couldn't get their medical procedures done. Things seem to be rebounding. Maybe you could just give us the -- I know you're going to talk probably about this at Investor Day, but just give us some sense of the progress you've made in building out that business because it seems to be a big -- a good part of your business.

Yes. Yes, and continuing to grow. Yes, I'd start with, this is an important part of the year, just coming off from an open enrollment season. This is when people choose where they're going to move from a benefit perspective and where we go. Going into enrollment season, we do a lot of partner implementations. And so we -- I think we showed stats in January. We had 14% account growth, SaaS growth in January. So we feel pretty good about how we entered the year. And on top of that, we continue to see interest from customers and partners. So it does seem like it's returning more to normal. On top of that, one of the things we did at the beginning of '21 was purchased the rights to utilize the assets within HealthCare Bank. And so we now have deposits that we've moved into our bank, which gives us a whole other channel to monetize in this market. And so talked about the fact that we have a little less than $1 billion of assets that we've moved into our bank. And that also is a nice hedge from an interest perspective. So as interest rates go up, over time, we will actually get a benefit of that, which will help offset anything we might see on the funding side. So I think of that as like it's a nice financial lever. It also gives an even better customer experience because you have all the offerings integrated together within the company. So when we think about growth of the business, that's a lever, account growth, just continuing to add new customers into the mix as a lever. And then as they come in, we're now able to extend more services like COBRA or benefit admin services. And so I really believe that this is the part of the business we just continue to build the ecosystem here.

Yes. No, it gets kind of lost, right, inside a lot of things that are going on in your company. But like I'm just curious, when we think about your best competitor, is it HealthEquity? Like who -- how should we compare you to someone else?

Well, HealthEquity would be the one that -- when you think about public company comps, think of HealthEquity as a public company comp to that part of our business.

But you guys do more than they do in some core [ specs ]?

Yes. Well, I mean, we have the ability to not only do what we're doing within the health care part of the business, we also have a ben admin capability. We have the ability to take it all across the account basis. So it's not just an HSA account. It's any of type of -- think of any tax deferred account structure. We have the ability to provide the underlying technology for that. And the interesting part of this market is it's really -- the distribution channels are just so vast. So you're able to distribute the technology product directly into the marketplace. You can go in through the broker channels, which is, for us, it's a really big channel for us. We're going through health insurance companies. We're going through third-party administrators or payroll companies, other ben admins. And so there's a lot of ways to get into this market. And the offering that we have is really designed to reduce the complexity either to a partner or ultimately to an employer.

And today, when we think about that business, how much of it is SaaS-based revenues versus sort of where you're going direct?

SaaS-based revenue, we would even get that from a partner as well. So about 2/3 of the revenue is SaaS-based.

Okay. Yes. That's great. So we got about a few minutes left. I figure let me open it up to the audience, see if there's any questions from the audience. Raise your hand if you have any questions. I think I'm doing a good job. Yes. All right. I guess M&A, valuations have come down. Anything looking interesting -- more interesting now than prior?

We always have a pipeline.

Yes. And if you think there was something, where would you be looking like in terms of verticals?

Yes. So when we were looking, the assets we look at, anything that can create scale. We look at assets that have product capabilities. When we're designing or thinking about products, it is a traditional build versus buy. And we'll go through analysis and say, is it better for us to build than to buy in the marketplace and then geographic expansion. So I'd say -- I wouldn't narrow it to any one vertical that we're looking. We're always looking kind of across verticals. I'd say in corporate payments, and I've said this for probably a year now, it's part of the business we continue to look at assets. Often, what we find when we go into the marketplace is that you don't get a lot for what you're -- looking at often what I would describe as a thin asset, not many customers, not a lot of products for a lot of money. And so we've had more of a bias towards building over the last year. But we continue to look in that marketplace and fare it through, and that ultimately could result in us executing an M&A in that space. But I would say, across our whole strategy, we are looking at constantly, should we build, should we buy this? What does that look like? And continuing to develop relationships for assets that we do want to buy.

And do you ever envision like adding another business or another tool to the arsenal, I mean, that can leverage upon your platform? Or do you feel like you got your hands full with the 4 that you're in right now?

Well, I think that's a really fair question. The businesses that we're in have so much market. We are trying to increase the addressable market as we do M&A, but we have so much opportunity in the verticals we're in. We've been really focused there, and I think that will continue to be our focus. Now that said, as we've integrated the technology, it is easier to then take something and move it into another vertical and have that actually make sense. But it just has not been our top priority so far.

So last question is on ESG. Obviously, ESG has been an increasing focal point of our investors. Maybe you could just talk about what you guys are doing. I mean, you're in a pretty sensitive area there with fuel. So maybe you could just talk about it a little bit.

Yes. So we had -- we issued our first ESG report last year, and we'll continue to build upon that. We actually went through it and had a listening session with the governance arms of our major investors and -- which has been also instructive. I'd say where we're focusing, we do believe we're in this unique position to their customers to help them as they go through their electrification and their needs on that side. We also believe that we're in this unique position and have been -- really been thoughtful about how we can help consumers move into assets like HSA assets, which have such great tax advantages. So we have created and have been working on this, I think, 3 years now in something called HSA Day, which is designed towards really creating financial literacy around the use of HSAs and -- from a consumer perspective and how they can actually take advantage of that. And that helps us obviously also. The more people to do that, it's a benefit to us. But also, we think it's a benefit more broadly in the community. So really, part of what we're thinking is where we already play, how can we make sure that we're actually doing good for the world from either a social perspective or an environmental perspective, but also where it connects to where we do business has been where we're really double-clicking.

All right. Well, great. We're out of time. Thank you so much, Melissa. Appreciate it.

Yes. Yes. Thank you. Thanks, Sanjay.