Wex, Inc. (WEX) Q4 Guidance Tops Consensus, CFO Steps Down

WEX (NYSE: WEX), a leading financial technology service provider, today announced that Roberto Simon stepped down as the Company’s Chief Financial Officer (CFO), effective December 31, 2021, to pursue another opportunity. Jennifer Kimball, currently WEX’s Chief Accounting Officer, has been appointed Interim CFO, effective January 1, 2022. To facilitate a smooth transition, Mr. Simon is expected to remain employed by the Company, serving in an advisory role through April 1, 2022.

“On behalf of the Board and executive team, I would like to thank Roberto for his many contributions to WEX over the years,” said Melissa Smith, WEX’s Chair and Chief Executive Officer. “Roberto helped lead WEX through an exciting period of growth and innovation, and we wish him well in his future endeavors.”

In announcing his plans, Mr. Simon said, “I am grateful for my time at WEX and proud of all that we have accomplished since I joined in 2016. While I look forward to pursuing a new opportunity that will allow me to be closer to my family, I am confident that WEX has a bright future.”

Ms. Kimball joined WEX in April 2019 and was promoted to Chief Accounting Officer in August 2020. Prior to joining WEX, Ms. Kimball served as Chief Accounting Officer at Syneos Health, a leading global biopharmaceutical solutions company. She has more than two decades of financial experience across both public and private markets, M&A transactions, including merger-related integration leadership roles, and significant public accounting and audit experience gained in previous key finance roles at inVentiv Health (a legacy Syneos Health company prior to its merger with INC Research), The Timberland Company, Thermo Fisher Scientific Inc. and PricewaterhouseCoopers. Ms. Kimball is a graduate of Boston College.

“I look forward to leveraging Jen’s many years of financial leadership experience, and continuing to collaborate with her as we guide WEX in this next phase of growth,” said Smith. “The Board and I are confident in her ability to lead our talented finance team while we conduct a search for a permanent CFO.”

The Company has initiated a search for Mr. Simon’s successor, with the assistance of Heidrick & Struggles. In addition to her role as Interim CFO, Ms. Kimball will continue as Chief Accounting Officer.

Raises Fourth Quarter and Full Year 2021 Guidance

In its third quarter earnings release, WEX provided estimated financial guidance for the fourth quarter 2021 and full year ending December 31, 2021. In light of better than expected performance, the Company is increasing its fourth quarter and full year guidance.

The Company provides revenue guidance on a GAAP basis and earnings guidance on a non-GAAP basis, due to the uncertainty and the indeterminate amount of certain elements that are included in reported GAAP earnings.

• For the fourth quarter of 2021, the Company now expects revenue in the range of $485 million to $495 million and adjusted net income in the range of $111 million to $115 million, or $2.45 to $2.55 per diluted share.
• For the full year 2021, the Company now expects revenue in the range of $1.838 billion to $1.848 billion and adjusted net income in the range of $409 million to $413 million, or $9.01 to $9.11 per diluted share.

(Consensus sees Q4 EPS of $2.46 on revenue of $479.2 million)

“We closed the year with positive momentum across our business, and I’m excited about our path forward as we enter 2022. I look forward to sharing more during our fourth quarter earnings call next month,” concluded Smith.

The Company plans to report financial results for the fourth quarter and full year 2021 in mid-February.

The Company's adjusted net income guidance, which is a non-GAAP measure, excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, changes in fair value of contingent consideration, acquisition-related intangible amortization, other acquisition and divestiture related items, the gain/loss on sales of subsidiary, stock-based compensation, other costs, debt restructuring and debt issuance cost amortization, similar adjustments attributable to our non-controlling interests and certain tax related items. We are unable to reconcile our adjusted net income guidance to the comparable GAAP measure without unreasonable effort because of the difficulty in determining the amounts to be adjusted, including, but not limited to, foreign currency exchange rates, unrealized gains and losses on financial instruments, acquisition and divestiture related items and adjustments to the redemption value of a non-controlling interest, which may have a significant impact on our financial results.

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