DLX - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the standing by. And welcome to the Deluxe Corporation Fourth Quarter 2019 Earnings Conference Call. At this time all participant lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session [Operator Instructions]. today's being that [Operator advised be conference recorded is Instructions]. Please

and the now Vice to Finance ahead, like would conference President Please sir. to Corporate Merritt, I Ed hand over go today, your of Treasurer. speaker

Ed Merritt

Chief and you, Keith today's Quarter Earnings Officer. Fourth prepared McCarthy, call Financial President Corporate is Call. Deluxe And Bush, Treasurer. President Vice XXXX Finance Merritt, Barry questions. Joelle. and and end And Chief Ed joining the Thank and of to Barry, of remarks, Corporation's our I Executive welcome Officer I'm take me will At our on today's Keith

forward-looking I to in the nature, Securities like expectations which today estimates, to as Litigation comments made Private or our XXXX. uncertainties, of materially and Reform subject regarding could are from management's results about are the would cause strategy These actual in you projections, our differ projections. risks future comments financial remind defined intentions, company's Act that performance, to or

information today, and Additional contained with release December the XXXX might press ended results we actual filings the the in projections our issued differ year cause from the well Form to SEC. XX-K is in XX, company's for factors make other as about that

information press as to of Any on and measures posted reconciled GAAP this are Portions on also during in financial comparable our the in this furnished X-K financial release call non-GAAP part Investor afternoon. references to to more SEC or will Web of are Form presentation this the the is by the statistical is our call. filed the company be Relations financial measures at addressed release, press detail that information discussed This deluxe.com. which during in site today's

over Now, to the I'll call Barry. turn

Barry McCarthy

our today our to Thanks, Ed with progress you the results. I'm believe you'll be and to XXXX be has share team made. I afternoon, everyone. with pleased impressed good

we CEO communicated to Since new progress. plans our Deluxe. our was year April to last that If year, XXX strategy transform the when considerable to as we've you think into Deluxe I this and time, new of back company old made

In wins have the largest of outsourcing of win fourth past deals those and those large quarter alone, signed top as decade. the ever. one XX Two the were largest may in three qualified of non-check the we

The business third month our products of win record In sold all for per order all order. check single in sales centers with December, Canada average into established records expanded through CIBC. We've channel. number with our time time we shopdeluxe.com high cross and sell a call values, had an

leadership We transformation leaders executives say Seven to each on-boarded new are are segments these other the Deluxe, hold careers. roles these pleased expanded four now filled. now but new were roles. in a executive I'm and significantly team, the four General of and throughout to successful Manager brand company all of champion their

Additionally, sales, we brought HR and strategy leaders. in world class

these new leaders because to they to join of part a All be our decision of wanted historic transformation. made the Deluxe

One HR Workday, hundreds key Deluxe we and Dreamforce tools. other leads. the sales world Teams, stage as Microsoft We collaboration of technology of introduced implementations and two largest captured our and in our our We main out completed events speakers the tech rolling were solution where

on Hulu, viewership winning Delta Prime, on the stream records four. addition Small that see on be Amazon can to featured Our Revolution, new program was year for soon this television the Business award in program you to able Airlines. had which program, and being for And will now and season YouTube

low in technology what from and everything our we'll covered is while our business got year company. platform, debt to say. pretty our This We we investing this what I buying say stock, and nearly incredible. of the back dividend, I to technology end do is mentioned, say business We do investing trusted transform Deluxe $XXX new into we a regular our just Deluxe. paying million in reducing

for company a detail and year significant we’ve record is revenue an and let first results. about beat a a first, financial This brand team exceeded ever, more for new for that consensus provide on full will revenue on minute. our management We're shortly. the had track. me is Keith old XXX-year strategy But Deluxe. right all-time a time billion. revenue take the minute and our delivered accomplishment reflect Think that We with to $X our proof

making delivering go so longer the strategy, well us We allocation shortly. this changes adjusted which will to term, our beginning year. above new beat consistent to level expectations, of deliberate us operations very believe shareholders. more share cash the on We're will pay consensus some from enabling we down near into we delivered debt We're the proud diluted be $X.XX, also our flow in from set for earnings which term Keith and a capital per delivered of for to team growth. detail up with

Deluxe continue much a revenue will fantastic be to short low Looking our we XXXX nearly will the to without Deluxe. to us. expect in gives time in time milestone such progress us XXXX confidence target of ahead, this be be for billion, and a in historic year XXXX revenue $X.X Achieving in more mid-XXs. acquisitions. another we margins grows decade first will This for the This expect be a

it to turn Keith. Now I'll over

Keith Bush

the mentioned the Thanks, checks. that realignment cloud January forward. would we promotional This driving transformation the Deluxe XXXX. into Barry solutions, delivered and segments; everyone. outset, simultaneously solutions is business as four all we good and announced payments, while afternoon, XX, that financial very One part performance Recall we our of we're realign proud new effective company Its of at strategy Barry

quarter So we be to the the in segment current expect last this report financial will results structure.

$XXX quarter the in exceeding revenue Total consensus. was million

in was year-over-year line revenue X% revenue million, expectations. business Services with year-over-year. was about million, Financial our declining $XXX $XXX X% million, While X% revenue Direct was declining $XX about year-over-year. growing services about checks nearly

to revenue. Checks of total total nearly revenue, about and for accounted For revenue. marketing other XX% accounted the or forms and for and total solutions revenue quarter, XX% XX% of services MOS expanded of accessories

our which details shortly, year, revenue in for the expectations. believe for line will diluted more with X.X% declined XXXX be the declines. was organic was quarter of provide acquisitions $X.X. GAAP excluding year but we EPS We'll last the Revenue

of adjustments share, $X.XX non-GAAP beating EPS last after-tax adjusted year. diluted about Excluding over per growing X.X% was and $X.XX, consensus

$XXX financial and Recorded period EBITDA excluding cash EBITDA compared in adjusted related $XX and to This quarter last nearly $XXX delivered million expenses non-GAAP million. Adjusted restructuring, the million, substantial EBITDA for million free adjustments. the our other the flow same was was of $XX We our funding to year. of entirely integration common point is for to while self-fund program. us dividends also increase our year, strength This into value. yet ongoing the ability and transformation, our business which and about allowed shareholder earnings regular and company proof to repurchase reinvest another the stock

end and refresh. investors, from the $XXX of and cash a and the about At the of the beginning on year. facility, statement. transformation million technology which $XXX flow the also in to while We had $XX was balance we Moving enterprise-wide over million to returned sheet paid drawn debt million of our decrease investing quarter, the credit down

which were $XXX million the provided cash were defined spending free higher activities was $XXX primary operating previously expenditures flow, $XX activities free legal expenditures, cash plus was ahead the and million expectations. on in transformation, in disclosed, drivers flow earlier cash revenue Capital related year as the of The For we've operating business year and mix about million. our decline and changes. certain capital our of by payments

and repurchase we any of did repurchases we not the remaining. full common quarter, buyback $XXX During have fourth million share year so $XXX.X the at share million authorization stock, ended

As and share instead into in returns, made the our invest we fourth quarter allocation to priorities evaluated we that our cash capital to the business. decision suspend repurchases maximize back

expect will than stock planning XXXX continue into We the lower open continue repurchase market. opportunistically be but to and previous in repurchases to to we years, this share are

technology. one In on went transformation implement technology forward. to drive embarked live multiple XXXX, onto to outlined to that us multiple would into platform. journey HR last January our new solutions in planned, We full Moving simultaneously systems as we a Workday business platforms. invest consolidate new Xst our plan early allowing year

this fastest of company to Microsoft called, America”. Our any Teams in rollout Microsoft North “the implementation what launched by technology corporate

earlier technology it say we We said our on here. we're what refresh, on would. going you said told and I'll what to and We we time again Regarding Barry we did it delivered, and do budget.

on Salesforce XXXX currently with yet implementation. technology expect the originally the Our we of to which expected service The implementations project and solution, ERP is to remaining month exception track, and complete implementation be in a as of excellent of five are this the is end month implementation by our XX year. scoped in

$XX invest with expect last year, Consistent million new these we million total $XXX to will you on in we technologies. we to continue told what

$XX we $XX about This in be out on invested expect perspective, For remainder in spend this million. The million will of the the XXXX, close projects. XXXX to to ERP. about we invest year,

of shift rest Now to let's our XXXX financial the outlook.

the deliver quarter, million to revenue of company in For range the first million. expect we $XXX to $XXX total

wasn’t increase to company in delivering this revenue X.X% expect client At range, the business because over nearly will be is wins. the the year-over-year. new last of entirely billion coming achievement We This of driven. significant for revenue be we're midpoint in acquisition revenue decade full represents growth year total and range first existing growth $X in from a year us, billion. the This a year the a $X.XX

This Recall past more through to strategy through supplement more and importantly, acquisitions. we base, strategy our it's new far services and And different This from when that working. is not is products efficient. grew organically. that the into to capital sell new revenue, companies, go very then primarily our client acquiring is market growth existing

be to We expect between adjusted and quarter million first million. $XX EBITDA $XX

the we term about margins to margin return seasonally year adjusted EBITDA the low year of quarter, range The the to quarter the is of for will carrying quarter the full compression. and target our of long lowest second XX% mid-XXs the beyond. remainder By of year first expect

to we the we XXX of by $XXX points adjusted about full At the compress basis be about to million. EBITDA decline expect margin to expect EBITDA outlook, adjusted midpoint million million EBITDA the year, For to $XXX and and between $XX adjusted XXXX. this compared

We adjusted decline to also EPS expect year-over-year. diluted

the in business; deals the profitability quarter; XX capital we primarily discussed include announced top fourth allocation checks three profitability our in Factors bringing on change the new in the third and changes, decline strategy. solutions we impacting quarter; and renewals; mixed a cloud in

Let me explain.

to We capabilities in high over long acquisitions. We expense the drive operating at revenue of term. organic expenditures capital instead build very are growth, believe a ROI investments return these for investing that

with progress our into revenue our the of pleased our our included needed it outlook. to already We growth. exciting much What's the is that visibility in progress made provides revenue we've We about grow XXXX confidence top-line sell in the to to were already outlook. way have very

will is be time. be to our over driver. clear, However, still primary we acquisitive growth This just not

can provided XXs success XXXX plan and low we of adjusted for an Our to in at confidence XXXX deliver revenue billion $X.X EBITDA our mid margin growth in the XXXX. in that

February Before Tuesday, our about two I up, XXth. is Analyst on weeks wrap away, Day

more During the earnings event, provide XXXX. for outlook our we'll revenue details regarding and

you continuing about will hear more our momentum. Additionally, sales

meet GMs. You'll four the segment

dollars four each learn very the is hundreds of our EBITDA with of revenue adjusted of healthy You'll generating plan. segments consistent with long term that of margins, millions

hear You'll Deluxe new and strategy much brand exciting see our more. the news and go-to-market around

a solid year. delivered and fourth we summary, full quarter In

transformation and drive growth. investments with smart track making future our to on We’re are

our line with team of to a unison in growth a urgency plans. XXXX of Our sense achieve with working our execute sight to is transformation

to Now turn back call I'll the Barry.

Barry McCarthy

made our investment record in to our XXXX, an a transformation. back progress new Steve. million delivered buy and We impressive all Thanks transformation, shareholders $XXX achievement. backs. and through financial tremendous we while set revenue continued results dividends solid share and time In over our returning executing What

the in from to clear can We're operate all of One and one benefits I the company summarize two success. XXXX Deluxe. words, just as are beginning

continue will opportunities new relapses about this into enthusiastic We I The shape we momentum XXXX. the and continue am taking uncover. to

We driving organization revenue growth. serious and organic about really sales improving our are

held ever sales kick-off company organization. we for the entire In January, meeting first our

have people the was it each many first our time met ever other. of Astonishingly,

surrounding we provided to energized, team, part to heard to deliver our entire events, the enabling cross we prepared new helping “I did ever of before. and and event higher and product break proud down of ready the sales silos. were, all I solutions didn't than “I'm most the further The quote, more know During common and the so is to training the organization sale The be that” excited and win Deluxe”. aligned second XXXX. We're phrases

which into offer. customers of will Now making provide understand our will payments, segments for checks. The all four new transition reporting new investors let's the we strategy while it that and promotional next. to we management move and have solutions our solutions, onto to are easier what's structure, In first and to greater our cloud quarter XXXX, transparency

earlier growing UK, and first is XX% joined Reed, segment multi-billion to payments, us a from ago The into who months management businesses Mike in America payments annually. of cash treasury is career, the fast two to at categorized start. about Bank growth in at also payments. dollar a small Mike The market be spent for time business and can solutions, Barclays off digital management his XX%

We had treasury management a in great solutions. year

the two of deals than on top in of winning decade quarter. the During contracts top dozen largest the fourth and more third the quarter, this XX we signed new a in past was

two one solution, two lockbox and will and signed of largest also using retail who recognized banks, major our utility, treasury dealership national remittance groups, the nationally management begin organizations a We new major services. who charitable use auto will our

as We've long-term signed digital ourselves management allow payroll they XXXX, continue in initiated we leader receivables We're this space which plans community payees get are building of banks opportunities a a more of new resellers space. payroll solution and platform. an will payments, for have the we potential. as insurance expand payments, and paid. uncover the we've growth by our encouraged to launched established e-checks out In generation And in company, services how digital control in for and the our campaign building over are next to to with up

opportunity on Day more our on this Analyst exciting during provide XX. will February We

days cloud Garry a us us and from in with making annually. ADP growth web next design joined be SaaS Vodafone double spent and design and Equifax web-hosting, year. segment incorporation it dollar analytics. web digits services, and with Micro cloud spent Cloud solutions India and earlier he encompass market, into the hosting, announced multi-billion tools. Ingram solutions time growing most Bain is is delivered and progress. great cloud-based he software-as-a-service, new profitability solutions during career. or can and is also The cloud-based GM of about is Capers solutions, at at business In categorized SaaS and has his design Garry logo and XXX recently contracts and has the data this we

the clients beyond. our discussed to be Cloud While analytics, the Datamyx, customer growth XXXX continues and in impairment result and we we 'XX, will their to third attrition a be strong already delivered for quarter, as of prospects continue offerings portfolio which in data of about add from growth challenged to and new bullish include legacy FMCG customers.

which to upcoming opportunities solutions. this on the profit promotional space and Our in growth segment print, more revenue include Office other in We're us Day. day opportunities, the and during from joined Tom bullish same joined retail for Products led solutions us. continues as in the we'll Analyst detail by new Riccio, business Garry uncover that on is forms who Tom packaging, segment promotional more this banners, Depot, discuss

running transforming and is check more Tracey to leader business and of with our a our Moving opportunities business first contract bringing on customers. reporting business enthusiastic to signed of experience She across XXX% We're Canada. years now broadly CIBC. the expand has check recently our checks check bank, proven with checks, in Canadian She the her. to regarding is new Engelhardt

to minute said want emphasize I strategy, a allocation capital our ago. onto Moving what Keith

We our capital are strategy. changing allocation

said In to expense last instead deliberately invested of XXXX, exactly we This in do a businesses, on this return we operating we We're you earlier. in I the expense strategy. going acquiring the growth in investing to told investment, are what mentioned in and as do would organization, were we sales our seeing delivered. We company We acquisitions. drive is alignment already particularly than for we rather capital organic clearly with April.

component of While will beholden acquisitions. strategy, ourselves acquisitions be be no a to fully longer will our to we allow

revenue cause on described, investments compression. our some While as use these dependency drive is and this best us growth, we Keith of will that breaking margin We're enable will confident deliver the capital to growth to invest for our the term, future long acquisitions. this near term internally

While team, we new our will executive many much transformation more today, covered Analyst our hear our February about leadership Day XX. will be who on know of and to want at presenting you exciting I meet

Relations forward register on look we to You can to attend our you. and website Investor meeting

Now, Keith, Ed questions. will call I and open for up the

Operator

Thank you [Operator Instructions].

Our first question Strauzer from Charlie comes CJS. with

is Your line now open.

Charlie Strauzer

of level about at we maybe talk the talk top-line, on well? this driving of kind confidence little year a the your that first If bit more as growth a what kind behind about your year looking little are and bit can assumptions organic of that being

Barry McCarthy

Charlie, we company. an had our year the of year. We And QX. the really for confident on the that's our decade deals about largest XX extraordinary in We of feeling last extraordinary three into QX. we the top go had sold success in

sight line have especially going plan the remind great because here. feel in where just deliver didn't to And year. that in you, are feel of we great have the about And forward Charlie, we we we the So organized need July. we it, an into revenue I'll team sales about we

decade, start Our even deals start the until top until closed didn't started, going We fourth we And July. XX quarter. though organization just that three the fourth of just is quarter. getting CRO in over really getting the sales the last didn't

of the exactly do about to doing that's what that grow April, said our That's confidence So and going gives us were ability go company we're organically. I what lots to we in now.

Charlie Strauzer

bank these signed driving well, you the as of And is that two as or new sign to part about of customers as part well? of that

Barry McCarthy

where Q. talking I know and company be, in when different about line customers, the implementation for think. we're existing have that this we products can that about. place new selling part from expect a see the solutions we plans to are we and all and Honestly, the revenue start, our Those have. to wins That's of We revenue to sight schedules selling of it's all

other Reed got have got checks. was GMs and the products, Charlie, running The we that thing the last we've Tracey Garry to confidence, all of us Thanksgiving running of promotional Tom but join honestly is Mike gives lot cloud, here week, running in place. He one a us.

contingent. So a full have we

amazing. meeting And our sales out up of all and have We on fire to the our deliver. first some We new on it them and entire was products us an team got way, kickoff get got beating we to were the management trained had we've on that's by ever market fire. in People the bushes business. them

Charlie Strauzer

Shifting gears maybe you of a those? any term Thanks. from investments? you long those on expenditures little of kind this magnitude to bit sharing help you're expecting Can to are what going quantify incremental year. then, And expect the the thoughts returns

Barry McCarthy

we So we we period out makes said are -- making also and investments building this business right. new would. we our what is sales but that we are We're all organization, this especially unique investing online, like bringing

a fortune that think I is that great online, money that business giant business to exactly the we of forward our need going multiples because a long want what sales acquisition, spend be of going which the you'd self-sustaining many we investment book We to this on the think to pay just of have returns some get to to going only organization, are grow We traditional do. us as that's because company get to is not the we're us building term. that's for going it online, but help dividends

now able only So grow ourselves where position are fundamentally company acquisitions existing acquisition, to to we're we're sustain customers the to proposition be in by to that itself and And we services be going a that having and is company instead would of new continuing a because pathway its products and already than in sustain going a different only a we as growth. that's invest and to customers. to to sell have grow

Charlie Strauzer

about? million those the to And QX the mentioned think related spoke QX, investments. Were of you the then, in just that $XX.X I IT release in you refresh lastly,

Barry McCarthy

going to you that. Keith is give

Keith Bush

the in So IT those IT rule XXXX change. in investments. start because Many fourth of non-GAAP to there accounting component, quarter, you out, experience will an that but the are were of

up So show to we'll additional see start expense. those as subscription

And tell all for feeling compression accounted I so here. are value going for though, those part are you we're will capture. through to paid and be those of the

these those of out the platforms as online we that with pay expect what new get legacy earlier we systems themselves platforms, running cost and said. back we So the come and bubble all consistent the of

Operator

you. Thank

with Our next from question Jamie Buckingham. comes Clement

Your line is now open.

Jamie Clement

this, again? three through Do on spent then, my you just and how just and much you Keith, those numbers giving that was The the me XXXX, can behind I know you run you in IT back, projection was mind laid notes. XXXX year went XXXX? for out, expense and I

Keith Bush

be on -- those XXXX In million. In $XX functional. this XXXX, in that by exclusively it will other remaining be we that was about close remainder all XXXX, $XX the ERP, million. portion of the be will year, and would The will will systems

Jamie Clement

So $XX million, that and $XX is right? $XX million, million

Keith Bush

million. about $XX-ish No,

Barry McCarthy

total $XXX We between be spend million. million going said $XX the was to somewhere and

Jamie Clement

million… $XXX

Barry McCarthy

be will what it. $XX we whatever Yes, that's to at in way million that of and the 'XX. the we million said, but higher year this spend left $XX was is 'XX, said in expect end It we

Jamie Clement

us think multi-period you all of want other going foot XX,XXX to how Can want are play further with out over give that capabilities of this you you a to force, kind how mind, $X.X to the to about of over of make years kinds sales investments you Do perspective? you that about of next think that time? kind couple of your that of multi-year to are add add guidance there revenue? view to the should from get Kind in we billion want to time

Barry McCarthy

in XXXX, company on growth. million million to acquisitions we to we're was been secular self-sustaining are and building average on going that some zero. product to going for the revenue XXXX capital and cover year company our organization XXXX, a because provide growth. and anyway, the 'XX deliver to spending In of for This company spent allocation a before years buy three each zero, to your the adjustment and the has got so to revenue, I'm strategy. investing that and we I and spent of about we organization, talking The just capital by decline start can fill say me $XXX about sales let declines and In Jamie, sell approach 'XX, some growth here, we are secular service doing a we again. have. $XXX XXXX, it it provide

debt, if can that about we of think carrying to So you but on that think see and in the us became other the point is million -- debt acquisitions books million about other XXXX, about the we're roughly in just with $XXX grow XXXX, reduced on to today. buying, we you spent still $XXX which on in And anyway. XXXX, actually going that

So alluded approach to Keith value and flow to, able protecting going and we've returns perfectly, we to produces in like what but within company we growth forward already provide especially largely, to say income and the cash expect has we're is from like going and largely been for low mid-XXs. what to not the about saying be the margins which going capture, able the invest always to what been we've I'm

that. in make that will you see to we're do largely we us see to to So make is self-fund you development. think in investments see sales, you expect would continue us continue But new going investments that to be will I to that think product able us what

time optimistic returns period deliver beyond. that can and over we great shareholder this very we're So of

Jamie Clement

before able are you the say you actually do allocate item line four I the it, or segment terms on going what of seeing, but unallocated to having going reporting you're to know Keith, cost don't segments? anticipate corporate everything just we're that would you to to be in new And

Keith Bush

about time anticipate spend talking for a Day. a do having couple corporate that we yes, We on reasons. of Analyst will more And segment

are we these on working organizations. is, building out still First

there mentioned in redundancy to our business. And you we so that is

a we'll has place to infrastructure be should compress XXth. infrastructure. and on supports that this an shared is costs see so business And able be more And can the that the about reality business. but to that's whole the us you continue great that that And expect to is those share where

Jamie Clement

giving I guidance cash an then think. you're flow And operating think not don't I

work. a look enough Do cash somebody number rough XXXX? EBITDA for what give build for of I and number there in it work operating might wants at spending an have is to restructuring to mind cash you then kind think flow rough of who a to an adjusted projection, expectation

Keith Bush

this get No, providing to that of let's not we're guidance your, Day providing. and we're at what time, Analyst capable

Operator

Thank you comes with next Chris [Operator Our McGinnis from question Instructions] Sidoti.

Your line is now open.

Chris McGinnis

could maybe the starting of cross the organic as as you -- that's obviously me story come If start, you been part and growth. selling to a mentioned that's let around, about well your

more Just maybe the of coming is that then rate in and system? growth gets customer Thanks. seeing? the where maybe dig base into into the Is acceleration that to integrated you're of maybe terms that continuing pick as up

Barry McCarthy

had centers The last of to changed them cross to products able proud having call is people allowed call, order, Chris. result, order. compensated. had in record sell what of products from an a revenue being so rather to we number multiple per which sell We do all-time in were gave we to instead year. per products people for We the and them we a one, sell transfers, themselves. than our lines more high tell you, sales this of their I order but to all-time record that. really training. And it company at aspired shipped is just sales Absolutely, the And hard fundamentally high really to got do time, went be desk way as we're the we we long

we're us without call are process especially that deliver our in sales a in of like of that will and calls those us any growth the We started. have rolling is, lot and all we start the those Right. that across numbers. it. just to can of And marketing all been and see us. and it What showing spending promise optimistic has as we've operations on obviously a for our we unlocking next very at just that come can you out that's marketing sustained we center of dollars dollars, the an company fire up our That And sell delivering organization that's that on we're product. to come always do result and of it

Chris McGinnis

And then bit just maybe more elaborating year. just the bit that of you buckets talk Thanks. can I million going And little the get to about dig Maybe don't that more into? just a million? if Keith, mind little this little $XX in you a a if into can don't numbers bit for but maybe granularly, you $XX know that on

Keith Bush

there. little Chris Obviously, didn't a XXXX's plan, jumbled you what you us you something specifically asking. are were about So we hear were but asking

Chris McGinnis

of around the if Just can you by I more million around of dollar, break $XX bit just spend, can where that you. investment you going? a to but know maybe maybe don't in the it put down little buckets that? that's just granularity the Thank

Keith Bush

we're is be new as Yes, to -- the flowing that and well wins subscriptions that the a the are board check in to talking what fourth declines extensions related then, the year, the there. a that And making experiencing. Those about happening that, are the investments the that to business the going the businesses contract through carry of you're as we're are SaaS on happening in big quarter. that chunk portion part of in of to big in legacy addition

Chris McGinnis

that guidance think you in year, think full the I lastly, largely call already this but revenue already, have you said line. on the just the then, mentioned have on And for that I you may

but want thinking this easier feel the don't I target that for to hit year. to an really say So that's about easy, number confident it's year? full you I guess,

Keith Bush

to sight of that. line have We

earlier. I think that's said Barry what

sight $X.XX what and we year. to to of these to deliver do to billion very were to a us for give billion us Now line wins this get the significant $X need they

very got good… we've So

Operator

Thank you.

Charlie Our CJS. next question comes from Strauzer with

Your line open. now is

Charlie Strauzer

the Thanks. Just follow-up, one you Small on quick if for Keith, have numbers one, numbers Financial and the segment Business this organic just handy, there Services?

Keith Bush

XXXX. This is for

of we quarter declines was liked decline saw same What about were down we really So we the for amount, X.X%. while and Small that Checks Business about had slowed down the the in has was of down is rate about X.X%, Services year, fourth substantially. X.X%. Financial full that and

grew down So SB was quarter, in down the fourth and down were X.X%. Checks while X.X%. X.X%, Services X.X%, was organic our about Financial decline

Charlie Strauzer

it like… sounds And

Barry McCarthy

one that's so try to we're into off. lift confident going that we QX. that happened We exactly we year, feel another of in what that's shrink were going Charlie, the getting and reasons to the said

into on We of on be revenue going this a big, to sight growth. confident longer have dependent big getting feel we the for It's that's acquisitions that's no for milestone and line us. a so year the business about new why

Operator

you. Thank

Our Jamie from next with comes question Clement Buckingham.

open. now is line Your

Jamie Clement

discussed don't and it's data-driven way quarter was that In terms the I then in in marketing It driven seems the in get it the then fourth outlook. XXXX XXXX was mix pretty the fourth like -- mentioned But quarter? the the quite in of in marketing outlook. data-driven data marketing what's the good shift

Barry McCarthy

QX. So we're We we're very the pleased of proud progress that a that of helped in had wins client and or with in making segment. us relationships number expansion that

and that we Year gives continue data forward. a to reason the going into businesses for optimism us lot that think expect And really New and helpful. the that's of We

Keith Bush

has that, what that that into is experience full business impact been of impairment. That's We're that the loss feeling contrast, XXXX, continue that. XXXX. component other the the effect will of of in the happened resulted last will in we this And year

outcome quarter the to where we So we below with that earlier is quarter while expected are year. the happy fourth the be that -- in was for very

Jamie Clement

hosting that expected web and revenue data-driven you for would what to with adjusted XXXX, market, primarily mix below that But talking say EBITDA in is is about comment? from decline you're changes

Keith Bush

Yes.

Operator

questions like call to remarks. closing back not would I'm any over McCarthy turn showing any now I Barry the to further you. this at time, for Thank

Barry McCarthy

for participating questions. and the call you all for your thank Well, on

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says what are say. going we team to do we finally, what and And do we're a that we

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call back turn the some I'll for final comments. Ed Now to

Ed Merritt

Barry. Thanks,

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Operator

this you participating. for today’s Thank conference gentlemen, call. and concludes Ladies

now disconnect. may You

Deluxe (DLX) 6 Feb 202019 Q4 Earnings call transcript