Corpay Inc Confident in XB Business Growth & Earnings Resilience After Teach-In

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Corpay Inc Confident in XB Business Growth & Earnings Resilience After Teach-In

ns, and increasingly digital asset platforms.

• Stablecoin Risks vs. Opportunities. Management made the case that stablecoins should

not reduce the need for FX conversion or overall XB volumes. Even if settlement moves

to blockchain, companies will still be required to invoice in local currency, pay employees

in local currency, and settle in local bank accounts. Stablecoins can improve how money

moves, but compliance, liquidity, and delivery won’t change according to the team.

Money may eventually move over blockchain rails, but that shouldn’t reduce compliance

requirements or transaction complexity. CPAY expects to earn economics from new

stablecoin players rather than viewing them as competitors; CPAY views them as additive

to the ecosystem and its value proposition. It expects private blockchain networks to win

the volume war vs. SWIFT due to after-hours benefits. CPAY is leaning into the notion

that blockchain rails will complement other low-cost rails for a more comprehensive set

of options. The costs of on-ramping and off-ramping have decreased significantly over

time says the company. Said another way, CPAY sounded indifferent about the emerging

new low-cost rails because CPAY provides value to clients outside of and on top of the

rails, and believes cheap rails should be neutral or additive to the company's retention,

pricing, and new business.

• Growth Drivers & Steady Compounding. The company is targeting LSD net revenue

churn and 20%+ bookings for 15-20% organic growth. New sales performance has been

consistent over the last five years. The company indicated that M&A will continue to

drive reported growth in the business beyond 15-20%. The global TAM is huge,