WEX Inc. reported strong financial performance for the third quarter and the first nine months of 2024, with total revenues reaching $665.5 million for Q3, up from $651.4 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues increased to $1,991.6 million, compared to $1,884.7 million in the prior year. The Mobility segment contributed significantly, generating $357.2 million in Q3 2024, a 2% increase from $350.1 million in Q3 2023, while the Benefits segment saw a notable rise, with revenues of $181.5 million, up 9% from $166.1 million.
Net income for Q3 2024 surged to $102.9 million, a substantial increase from $18.4 million in Q3 2023. This translated to a diluted net income per share of $2.52, compared to $0.42 in the prior year. For the nine-month period, net income reached $245.7 million, up from $181.7 million in 2023, with diluted earnings per share increasing to $5.89 from $4.18.
WEX's operating income also improved, totaling $196.4 million for Q3 2024, compared to $174.9 million in Q3 2023. The company reported a significant increase in income before income taxes, which rose to $141.1 million from $44.4 million in the previous year. Adjusted net income for Q3 2024 was $177.5 million, slightly up from $176.8 million in Q3 2023.
Strategically, WEX completed two significant acquisitions: Payzer Holdings, Inc. for approximately $250 million and certain entities from Ascensus, LLC for about $185.5 million. These acquisitions are expected to enhance WEX's capabilities in the Benefits segment and expand its service offerings.
The company also engaged in a substantial share repurchase program, repurchasing approximately 2.5 million shares for $543.6 million during the nine months ended September 30, 2024. This is part of a broader authorization allowing for up to $2.05 billion in repurchases.
Despite these positive developments, WEX faced challenges, including a decrease in payment processing revenue for Q3 2024, which fell to $309.9 million from $313.3 million in Q3 2023. Additionally, cash and cash equivalents decreased to $535.4 million as of September 30, 2024, down from $975.8 million at the end of 2023, primarily due to increased investments and share repurchases.
Overall, WEX Inc. demonstrated robust growth in revenue and profitability, supported by strategic acquisitions and a proactive approach to share repurchases, while navigating challenges in specific revenue streams.
About WEX Inc.
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