How do WEX's revenue costs impact gross profit?

WEX's revenue and cost dynamics significantly impact its gross profit, reflecting efficiencies and challenges in its business segments.

1. **Revenue Trends**: WEX's total revenue for the most recent quarter was $636.5 million. This figure represents a decrease from the previous quarter's revenue of $663.3 million, indicating a short-term contraction in sales. Factors contributing to this decline include unfavorable impacts from fuel prices and foreign exchange rates, which totaled $26.6 million. Despite these headwinds, the Mobility segment saw a 2% increase in revenue, reaching $357.2 million.
2. **Cost Factors**: Total expenses for the quarter were $378.9 million. The company has faced challenges from declining fuel prices, which affected revenue by approximately $8 million. Additionally, operational issues and softer same-store sales within the Mobility segment have impacted financial results. Despite these challenges, WEX has achieved cost savings, with approximately $110 million in annual savings, exceeding their target of $100 million.
3. **Gross Profit Impact**: The gross profit for the quarter was $378.9 million - $378.9 million = $0. This calculation assumes that the reported figures for revenue and expenses directly influence gross profit. However, the actual gross profit margin is more complex, considering the revenue shortfalls and cost impacts mentioned earlier.

|code|Ticker|Name|Date|Gross Profit|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|WEX|WEX.N|WEX|2024 Q1|3.855E8|6.527E8|169|
|WEX|WEX.N|WEX|2024 Q2|4.097E8|6.735E8|169|
|WEX|WEX.N|WEX|2024 Q3|4.163E8|6.655E8|169|
|WEX|WEX.N|WEX|2024 Q4|3.789E8|6.365E8|169|

In summary, WEX's gross profit is influenced by its revenue from business segments, particularly the Mobility and Corporate Payments segments, and the costs associated with providing those services. The company's strategic initiatives and market conditions, including fuel prices and foreign exchange rates, significantly impact its gross profit margins.