Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Deluxe Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode and today's call is being recorded.

We will begin with opening remarks and introductions.

At this time, I would like to turn the conference over to your host, Vice President of Investor Relations, Tom Marabito. Please go ahead, sir.

Thomas Morabito

welcome Deluxe and earnings quarter operator, call. you, to third the XXXX Thank

today's McCarthy, Financial is Chief me call Joining on Barry and Zint, Executive Chip our our Chief Officer. Officer; and President

today's prepared At the end remarks, will take we questions. of

in on or as remind comments company's Private performance XXXX. strategy expectations the regarding about Before today I'd projections intentions, are that slide, nature or seen the begin Reform like this forward-looking as Litigation we and Act made management's and to everyone financial defined in Securities estimates future of

in results factors differ in Additional may furnished XX-K XX, information about other that release and year press projections cause today forth company our set SEC the actual our Form December for to filings. is and we from ended the XXXX,

today, our will adjusted measures additional will the free these comparable cash find under financial measures, call including reconciliations most EBITDA adjusted release, the U.S. measures press filings the disclosures and our of to regarding non-GAAP we our EPS the including margin, discuss presentation GAAP. with flow. and non-GAAP adjusted measures, EBITDA, you On SEC, In

adjusted On your which XX Slide presentation, to the are should additional XX reconciliations EPS GAAP help of providing with modeling. of we to EPS,

Barry. Now I'll over turn it to

Barry McCarthy

everyone. Tom, and Thanks, good morning,

done Before Chief of Corporate Finance. Many you Chip welcome Financial tremendous it's to President as of we new over position begin, as our job two last month. years already has my Zint, Officer, he appointed our a pleasure the to Vice Chip, the who last was know

years including execute the serve skills and and and President company Deluxe President deep at we Chip the Hardware our will Chip's and Analysis of to continue and strategy. the strong for move held of shareholders senior Finance Corporation, forward our broader on as of Prior payments industry well, leadership, understanding FP&A his division. and roles Vice and finance nearly Deluxe, to XX Vice for joining Financial CFO Planning NCR

into moment every dedication go to quarterly hard fellow efforts their forward thank data me drive and take work. let for a their I consistent day, payments Deluxe our making Before a them the commitment to and also and my us what recognize for are the company. Their to I customers, but for a highlights, Deluxers continued continued

to of on One Deluxe Now demonstrate business delivered quarter all X This reflecting quarter journey a second our in growth, our of strong success once consecutive a our our another revenue third growth. segments, on the in sales-driven remain milestone results. and year of Deluxe key increases of continue we We're to is model. we deliver of track extremely sales-driven to transformation as proud results. these again

acquisition, million. revenue these $XXX now than in their American the X% reminder, from figures. Company-wide, more and And the previous increased included First to just as we've lapped are results a year

quarterly business nearly Excluding exits, was revenue up X%.

volume and During our changes patterns. been and strong healthy our services balance the by pricing. growth third quarter, has for and performance, our in revenue of products and demand driven buying in remains mix can you But ongoing we see saw a some as

growth was Total we and X% our Delivering focused adjusted adjusted exits, nearly EBITDA driving EBITDA remain adjusted and dollars on is in transformation, another EBITDA term. up increased adjusted business milestone excluding the yet year-over-year, growth EBITDA long X%. over

at As rate XX.X%. came in expected, our EBITDA adjusted margin

on revenue to segment Moving some highlights.

lines, expanding our X.X% particularly management. and which our mid-single-digit of increased includes expectations. Services treasury in our Payment margins. increased year-over-year this revenue X.X%, with For in payments, segment the third with The the Merchant receivables in across our line quarter, business, growth nearly grew with payables X% rest quarter, impressive revenue product

year, past been with services extensive. sharing for cross-sell merchant been opportunities the we've As the have

shows This up to added now Missouri effectively the one industry, of of of the customer to Bank our merchant was move Deluxe, we've long-standing portfolio. the ability providers and win X proving market. the top ability in example, our services against a For to

key was by driven track platform had customer develop This which business solid X% on business Deluxe. us marketing for another XXXX. or remain double-digit Cloud experienced Cloud growth. for business exits. be payments driven DDM, use, data ease growth. allowed to We almost this milestone another to in quarter, investments in our further of drive once growing Planned largest technology helping Solutions our the year-over-year, again be DDM will for revenue excluding performance early

of business than the a investing rate-sensitive diversified in platforms, helped importantly, categories. year outside interest business by More and win ago, our has us we which

Solutions Now pleased top our has will also expand with exits. line, in X% improvement quarter another improving year-over-year, sequential improved, as the than availability more the Solutions back strong Chip business had Promotional We a from were the this segment. Promotional supply moment. levels. to on in margins not quarter to second historic on although excluding on

X% year-over-year. business our another growing quarter, Finally, had Checks strong

on-demand prior in our in segment will help manage print on volumes, normal they maintain rates discussed match to as our to technology return declines. to us secular strategic investments margin allowing calls, new As costs this strong us

Our over made and third segments, and growth trend been continuing underscoring model. our has across a two our our on quarter Revenue strong Deluxe results performance that once was to highlight very make the last company. a as on and the years, of look transformation. all forward We're One continuing continue execute the Payments Data to growth again to proud progress our we've ability

Chip, on it over details provide performance. to will Now I'll turn more financial our who

Chip Zint

as CFO. my to team continuing thank good everyone. really to Barry you am new be you, forward to looking financial with and objectives. and on our pleasure the work Barry, Well, It's execute morning, I today a with speaking Deluxe's

quarter go before moving for let's on consolidated the highlights through the the segments. to Now

posted $XXX up For the quarter, we third total of million, X.X% year-over-year. revenue

revenue this Barry despite products performance actions. for demonstrates As continued pricing strong demand our mentioned,

the came line up with year, $XXX.X third from quarter share, quarter in EBITDA at third share of up in of $XX.X million in Payments EBITDA and the from Adjusted $X.XX last XXXX. driven expectations. $X.XX reported was margin net business. income or X.X% Adjusted million million, by or largely per improvements XX.X% We $XX.X GAAP per in

came Third last in decrease in quarter. at expense. was interest quarter EPS down primarily from This $X.XX, $X.XX year's driven third by adjusted

an in our the XX% rate the quarter debt. of completed outstanding fix an swap we additional Importantly, interest rate third of to

nearly of our rate, Now expect from will further XX% debt is rate company fixed the which insulate hikes. we future

treasury $XXX.X segment grew Merchant largely year-over-year Now details. our turning X.X% business. in million, Services to year-over-year. management X.X% grew revenue by of quarter Payments third driven our growth to

will expect mid-single-digit term. the growth few business Over continue the to be but range next we up tough in the quarters, long comparisons, this year-over-year against over

up basis points last a our in we single-digit to year, was growth management term, XX.X%, rate. segment Payments by operating deliver high largely from continue treasury driven the margin to XXX adjusted Payments EBITDA Longer leverage revenue business. expect

For adjusted expect in XXXX, EBITDA the margins low we range. XX%

Cloud Solutions had another solid quarter.

and mix year. investments XXX due Filed declines declined to On segment declined Australian X.X% the margin the growth this the year-over-year sale XX%. in DDM higher-margin business adjusted decline due in EBITDA the million of changes to to hosting revenue in earlier the increased This quarter. of business Cloud by the from in increased strong revenue exits, hosting. driven $XX.X Excluding impact reported X% product year-over-year web from our the basis and revenue quarter to in a basis, business third was quarter XXXX points

on impact business from we XX when excluding presentation. exits, see growth detailed of the mid-single-digit For expect to Slide are XXXX, which revenue the

We expect the to also to margins adjusted range. in be mid-XX% low EBITDA

our sales down by quarter Solutions X.X% new up basis, to reported basis $XXX.X Promotional meaningful anticipate expansion XX.X%, actions. in the year-over-year, pricing increased supply Solutions exits. the grew driven to points million, will quarter to of typical year-over-year seasonal availability, initiatives third revenue patterns. see slightly operational improvement business the we from impact benefited XXX was and in adjusted was as but Promotional EBITDA sequentially We adjusted segment fourth pricing due wins nearly availability. margin do revenue excluding improved supply X.X%, further that improved a EBITDA On and margin and

$XXX.X from industry. secular for revenue wins, actions the the declines quarter third as checks new demand outpaced broader last increased year competitive to pricing within business and million strong Checks' X%

of As we've had customer that we four before, segment. to said last growth this consecutive major revenue wins year quarters some led in

now starting this declines. Check return we QX, these in secular and normal expect see as base, in revenue continue are comparison the not results to will to However,

adjusted the segment. was for mid-XX% EBITDA XX.X%, margin within our quarter down range Third expected slightly year-over-year, but

continued our now $X.XX cash of Turning balance to flow. the down billion, paying in our to debt. quarter the sheet down We billion commitment debt net of ended demonstrating and with XXXX, $X.XX level third quarter from a

Our net debt times adjusted the of was quarter, year the improving at end X.X ago. EBITDA X.X ratio from a times to

down increased activities cash from less approximately quarter payments. long-term times. X Our of the improvement and defined cash by in sequential the million interest million in due target quarter, was Free to the remains provided in expenditures taxes $XX a XXXX capital operating quarter. third as second cash $XX.X strategic This was flow,

approved of be Board as record quarterly outstanding market a X, on dividend share on Our on November X, regular will all shareholders payable of per The to $X.XX XXXX. XXXX, of shares. all dividend December closing

approach allocation. on focused are We to taking a capital balanced

to dividend, As reduce return responsibly a to and pay value debt reminder, our capital are shareholders. invest in growth, allocation priorities our

Turning now to expectations.

Full issues, equates margin of First to follows, subject of macroeconomic XX%, are partial approximate. are growth year year American XX.X% to of rate million. an impact of our excluding is divestitures. and mind things, growth to other This as-reported reaffirming We a to prior labor prevailing revenue $XXX keeping supply of the EBITDA guidance adjusted includes in the year This among expenditures capital guidance as basis. XX% exits. impact XXXX and on XX% conditions, and inflation full to, figures Revenue all X% XX% business

$XX your average and tax interest million assumes XX.X and share adjusted is million which of of XX%, the depreciation million In $XXX approximately shares. amortization million, our expense of order $XX an also assist to of with following: and guidance acquisition rate of count amortization outstanding modeling,

uncertain To pleased third quarter these with summarize, results, are the especially economic in times. we

revenue For an following important achievement. growth We're our delivering those have for proud EBITDA this of simultaneously you years, sales-driven and performance. many story that of very is been

now questions. are Operator, we take ready to

Operator

Instructions] Zint. question Mr. CJS. from take you, our of morning [Operator this first Charles Strauzer Thank We'll

Charles Strauzer

Hi good morning.

Barry McCarthy

morning, Good Charlie.

Charles Strauzer

hoping if the little helpful? segments, give on a a bit of granularity bit be price there volume in you breakdown various you. versus on Thank can us color was kind I more more would little the

Chip Zint

morning. good Chip. Charlie, is This Sure,

the of with excluding that of coming X.X% on of growth increase price. at the we quarter down break roughly as we exits, XX% volume or X% view when about that So XX%

volume within talking Payments, of treasury Checks improved promo a management. been within And operations strong so business about lap fully wins the while in but also that's and and in for specifically specifically a those, we've we new data function the as

Charles Strauzer

there -- just Got Barry, that? DDM on that very quarter much. business then it. that you're of Cloud the next like behind for are kind That's And you the the helpful, seeing -- with you; side, are what looks at drivers the thank

Barry McCarthy

strongly Sure. demand saying affirming Charlie, I that that successful the think talks know product. demand before I of we I asked things as was highlight demand, increasing we really at about and moment ago, have just about the for the want our there this as we that are is showing a you've question we another talk do of that services. elasticity about think been think, well our that actions think and before, fact strength to for I where quarter we the pricing that that, volumes, one Chip

is point the does Second asking that and about mix where come. DDM you're

DDM of income services really we sources last making was diversify sector, Historically, coming so, you on and business. or been in know the diversify dependent we've industries, us services. heard the new financial year investments Over you've which significant the that have expand more the into financial rate-sensitive wins very announce multiple and helped categories. to us us beyond to our architecture away database interest from And invested has allow in to

market are financial drivers expansion financial we to the services services the and additional services. And so continued expanding the going be going offer beyond within in forward verticals

the interest other in business. So here. for And or future businesses And the for about work all rate, financial that's, of successfully mortgage, other us what we at to in time that's is think, within a helped example, there rising us do if expand institutions. sectors opportunity less is

Charles Strauzer

Great, then thank another question and you for Barry just you.

that don't If envision of facing year comps this tough looking at growth, organic year? glimpse, mind, you path an next kind can a you're given there early to you is the

Barry McCarthy

good sales of going secular accomplishments, we're about driven provide very and business. the years we're had, seen or us not here X guidance next will proud sales the But some today and prospects to you've going forward. our obviously, year. returning we impact revenue for deliver growth, Charlie, wins we've said feel with declines consecutive to now organic we've of our But to on that our have Checks we're

Charles Strauzer

very much. you thank Okay,

Operator

at We'll Lance Thank to now Vitanza next go Cowen. you.

Lance Vitanza

economy, of a seeing become quarter. macro Thanks quarter? those start guys more in are the you perhaps perhaps on results sensing early bigger here problem I Are pressure a in question with girding Are weakening third for wanted congratulations either and the of just or consumer that to quarter you lines? you in the on of -- outlook. And slow any sort do in great the along from down you sort the spending? a any or XXXX? Anything expect to that sort fourth

Barry McCarthy

aggregate We third So see and of Lance, for is customers are in stronger pretty in expect, in demand what to this that overall month-to-month what point seeing economic to But is quarter, we the is numbers. August we buying, might some than are up the at mix July showing good continue we saw slowdown our so not stronger example, July. some we're variations. than changes not be feel seeing profile in and August, we that but

it see mix some can't I but said, demand You see in it aggregate we an of issues, decline. don't as the

Obviously, the stuff month-to-month, is But aside company mix what like. future the environment to about a we know great to specifically, all don't And the from of crystal things year. demand. do impact some see next look doing ball to the in to of unusual we're we shift no an one help aggregate regardless and some succeed, very has going

Lance Vitanza

Okay. That's helpful.

expect But the -- And wondering was that there think that perhaps you I see that portion there, that businesses revenue whether sort to businesses could pressure I'm that you DDM suggests On or do there's that those underperforming. the those you in be abate flattish. cloud that so well some think of the that you're double-digit presumably other obviously seeing side, growth. pressure about really doing opportunities Cloud talk of of piece, are divest you if will revenue additional and might some what alternative, revenue whether

Barry McCarthy

So really and for investing the in had highlights to DDM on it specifically, revenue. think I we've focus drive new innovation

in So the noninterest great even sector. financial financial to we're DDM seen have growth a of sector, very business specifically, categories. And rate our financial services, the within outside seeing we shift

Obviously, as But largely the business as industry. portion what is of headwinds. exposed being reported headwinds is to mortgage the had not in our large our that mortgage some are

there the really growth can key for what's that economy. future, expand gives So is a takeaway I verticals have into think that business happening lots the in that of multiple we built us of the opportunities regardless

divestitures, at future the be, and continuing as prune to far As think, responsible you've think seen very I businesses portfolio. underperforming us I exiting

of that at continue you the perhaps And to looking expect heard responsible think You in be underperform I will some us think would assets appropriate us do at time. quarters. previous to we see choice a in that make and an

gives good us quality diversification anything anticipate it think growth stool Lance, our we of legs lot we mopping a opportunity. don't one and always, any of As of and the up of

Lance Vitanza

number cetera. over is the of line. still number the wondering of that what be relative or in turning might line, might like if line actually And future it perhaps? big EBITDA, it's corporate size quarter. -- And mean Are that your perhaps of then I there a -- big nature it able no, time, the But I kind wondering think, And seems estimate. was with to whittle the there down we a on our there the is expect et to I'm in I'm in of expense opportunities just $XX sort -- to be Okay. it's million, to

Chip Zint

Sure, take This that one. Chip. I'll is Lance.

over I few with lapping of technology corporate expectations, few everyone's much We've benefits disappeared that's of the function in as quarter, finally this lot back calls. been infrastructure last think, us add to a right, the in more headwinds some line we've that a investing the over was COVID. last of had talking you're So part been about costs years. the We

corporate finally into of digest So entering an us all bit XXXX. as feel We for ongoing been we little a like headwind that. has

to don't and invest that but in able able need there, to a costs continuing we of be position taking be turn as to, portfolio. be we do do view focus And out a getting way headwinds to into going where area the that responsibly, a have as We're we the year-over-year where corporate down. many cost corner to in coming of key that center

bringing costs Now gone that way of three we've we years revenue more next obviously, the the to a but a And ago, number a into continue we that ours. as go lot in alluded segments focus getting to hopefully, out being corporate out taken revenue percent has but that and a cost down, that corporate year. operating main thought get of just nature, not is corporate to to leverage structure that benefited would as it's playing them, we'll to of of by focus grow, down fixed future, a from is continues the big ours because

Lance Vitanza

rather dividend-oriented And sheet, shareholders. thoughts me swapped down and buck than there? that that bang down. like the you cash coming sense And then using from rates leverage add great first ongoing might I interest to for paying the that have I'm though, wondering just a out. the dividend, the get your to getting I'm lot and -- Okay. if more I lastly just debt you is on balance wondering, job quarterly off, of more like pay any quickly

Barry McCarthy

hypothesis ability and that to in because to investment flow. that we have quarter about dividend that as know considers and flow. contemplating use the our part every diligent generate company, And Board the remain we of for company's and continued income thesis is optimistic we the very the cash support Yes, how cash we

go plan. not the specifically able date, our because that, has capital to to attack structure seen to make to need so progress on the we've continue Board been overall And

Lance Vitanza

Understood, Congrats again. thanks guys.

Barry McCarthy

Thank you.

Operator

Charles Thank you. now We'll at to go next Stephens. Nabhan

Unidentified Analyst

[ph] for a better on business? This those then you Newman have seeing questions. to Chuck. cost cost To any morning. effects extent mitigate are going Alex our side pressures? Thanks any or labor good on from what is on And the of side any Hi, or From either the inflation standpoint, having impact are forward? for taking you that flexibility

Barry McCarthy

Sure.

with of So we some can have sort add then like we are color. now Chip and But I'll -- start more up caught feel inflation.

Of you course, notification in models the which of periods, we as we if are to our have -- it it our our the about inflation the pricing believe -- up, with place way part keep to we in it's think where ever-moving actually we're after we at certain pretty inflation, confident of target. continue sort forward. feel time and And an up pace good with we about pricing work, up ability our will, caught But ability can a going with implement contracts. we now are at significant to continues

going a been we've some at do think lot We forward. that that. is pretty this of we beginning our year. last to But of labor end the along feel about We've We able into helpful. there, which offset year to ability moderation help good pricing to seen going saw inflation us of pass

that, on Do add you want anything to Chip?

Chip Zint

of sit of rhythm -- good all And just on, the constant year on inflation feel do caught on and and an companies, started of it. in ever really quarter. take It's with inflation a was And and side. started labor spot has across issue. handling part it. can to QX of it's price like the on about Barry whether up operating to and a ever and ago year we directly to stay would We It I hit ago this our feel where where and terms really a everything us point inflation relevant now we talking on, portfolio. started year has like supply all we we all customers we've the it, work long, been it been or top say, growing we've side we

Unidentified Analyst

believe nice your Thank for management. thank the within from win you standpoint of you. or then prepared within remarks, if follow-up, called turn either to speak in Okay, some led you on wondering you I a out treasury I that win. the to competitive just a platform And the strength that a could the color. factors, was

Barry McCarthy

Missouri. a for AP in continue we So management. to and which highlighted And of X wins we we but is with American, treasury of specifically AR big the Missouri is remarks But in as [indiscernible] are Deluxe. customer acquired the the and join we course, of our our everybody, our move was deal we able First bring them of able X Bank have And to significant of to to business, were us. merchant reminder digital solutions, with just services long-standing that providers a off Bank of

significant it can And milestone of of in up because institutions with that we that service. the for American banks ability that's move First help inside we us our win financial Deluxe scale shows a and family, and size

there's So I X, important there. think, really points

would be First, hypothesis talking big and of great that the accelerate the deepening or institutions of the ongoing many of Deluxe grow that we're example. is We've out. and help Bank a quarters, because First now been across thesis growth American again reach for about we proving by to proving financial Missouri is that entire hypothesis able their part

The into big the up and players competing financial market winning. second part larger of to that is institutions with go we're three able

one Now our And would the into you First call the our in is from the the is you that American, plaques of we top a reason of line main with about if quality performer perspective. deal long our centers, went being particular customer won satisfaction exceptional. customer specifically service see center

So very that is critical.

help that overarching we our three company was of fact the to think, values therefore, the won. and a the continue Obviously, set portfolio I important. to And we was product functionality, those, very have Second, All of that align feature reason a which helpful. with we were of grow add ability, culture the them bank. their

to between wins First ours, the customers the of and of and that connection Deluxe see ours, best American bringing as customers continue those already and partners We accelerated Deluxe a relationship. expanding result the as and of are to wins

Unidentified Analyst

Nice Great, thanks for quarter. the color.

Barry McCarthy

Thank you.

Chip Zint

you. Thank

Operator

go Thank Sidoti. Riddick We'll at you. next now Marc to

Marc Riddick

Hi good morning.

Barry McCarthy

morning, Good Marc.

Marc Riddick

could general a your you evolve, seasonality how if -- about to adjustments whether four as that if might segments might segments. little of due -- visibility or make recessionary within of talk and within that some sort wondering have was bit just visibility the of there's order customers sense the each a I to trying change, to were the to the pressures you like, a get of aspect level

Barry McCarthy

Help me again with specifically. the question? I'm trying not sure drive I to understand what at you're

Marc Riddick

I was or if far talk just that on revenue flow far you trying or at. timing of is sense the trying like what if as the order sort you visibility about to visibility I'm maybe get you a as or as as what going it, could -- segments, would might clients the to make get pricing change within dynamics to see have a your when were of

Barry McCarthy

got I Yes, it.

have price. I we it's there to on the -- things responsible has couple and it indicators inflation our help increases successful you at said a offset earlier, impacted reverse. not volume. it of of Sort actually, see And been price can us and leading taking

solid. volume continue business appear ongoing demand continue Our the expand continues we to to win to products and for because very

and of you I certainly over as play so. out quarter. quarter, As increasingly, order forward that them, insight recurring And yet fourth all appears much on businesses, we the as the be to it but will not the course increasingly expected, far the can't give continuing of revenue have but book,

Marc Riddick

you thank very much. Excellent,

Operator

David now go Silver We'll King. of you. to CL next Thank

David Silver

platform a larger out Yes, add win your just Deluxe from any follow-up comments morning. in servicing one to or that's that, that. and shifting Bank of your maybe hi out in wins, win from it of in Missouri I like But one build good on about -- features require infrastructure I'd one guess talked like a to about way? maybe the your that start larger But does and you to another. any to with particular,

you of words, period? Or so kind have transition is how might two-year try to And of it other on that the deal you be potential customers? seamless how be you how the spare other other or of a Missouri capacity? going replicate over hand, immediately In Bank with seamless, and will available kind could or do replicable be that think one for to

Barry McCarthy

Sure.

First have recall acquisition chose with platform. And American, already when here, Because playing Missouri and announced family. in platform Bank volume. that deal. volume of is that's robust to the for take scaled example, solid, the you'll and our deal, and it why And the American we take already in we can on in the a to join out had that a So can First of we company certainly that buying put scaled additional is we their

So we platform. to to that relatively business our will think continue be seamless it for grow on

help And us accelerate we can because of that they of the program. course, they chose believe them success their merchant

of scale solutions But other expand We able of more the bank the to be because set we even and banks the are and their we to that always investing business have. we and in prove have we additional feature functionality, expanding existing offerings the helped tools are won how merchant and successful.

number the First greater of to done I than several bank signing think historically own. American we're on the And just is think question I year-to-date, in times have we their partners are would replicable, that

new year. would handful a American, I think First do in a between of Deluxe of typically, bank bank new several handfuls we're And of the I they think partnerships and customers. a signing result alignment as

we're And the and just ability think, scale, Deluxe is American tools what support that doing asset business we're the and that has to and for bringing we together, bought a that the grow. sales terrific I just, of we're further with reach First evidence helping that

David Silver

angle revenue from for not, months or a but that know have or I target can in don't of that. maybe do that? for on mean just Bank kind assumption a maybe Missouri this is incremental I maybe But if And of first fold, an more Okay. the one answer the you XX you the

kind margin of And then the correct revenue kind above that platform? average incremental to other I high margin class to being an pretty business secondly, of assuming in incremental added in be existing would of it's business for the it, words, have since incremental a would

Barry McCarthy

for obviously, And understand bank. I the information a question, but competitively sensitive Sure. a

it can't the really comment I So of fairness bank. to scale in the on specifically, just

You've hold had growth that to these like very now at solidify we that's think term that many a very healthy long we margins. confident wins, we're mid-single-digit that for the business help a we've long revenue time going of business saying and for as can been

David Silver

not the I've But but just try or to of out. there many right. noticed continued two business, All I too are questions your improvement kind that legacy about ask one financially. Check there pop

months customers' is very opportunity And a on how assume comment early could for they And perspective, of would maybe the anxious to any results from introduced that incrementally year-to-date? have that, kind it's popular access days few you kind that to I think this but maybe added innovations ago. point option to your on-demand how you You there print you of other are that?

Barry McCarthy

Sure.

are fixed our variable. with promo in expense our So that in we formally that and and to business fair our moved a process invested story, Check a of multistep largely in takes we've in the it technology to folks our listening what process bit of are new and -- is for those new investing set a of

and different we much volume. down up now can production depending designs, efficiently or can our scale So many the capacity produce more on that more we

Check with in the be able in course, its important alignment manage particularly expense we'll secular As normal of is to volume. but which decline, to directly business, returning

importantly, been the in win ability of we've that confident rate. because hold we range very the that's in But deals. about just also not margin technology. in Check feel Check mid-XX% maintaining couple us this business It's helped why margins. margin So investing it's significant In business our to a about

significant actual we takeaway better and as had more from but were into we're year us of those us Now overall which QX, have helped we a competitor we allowed our Check Check. able offer quality, to designs lapping And because to go in to chief have that growth those this wins.

the we And competitive we we for will be our a advantage space. against go chief renew the as in and as it long-term, think rival

we've winning market know, you share. been lot of As a

that through and on the implementation, capability, including our with partners. print but can progress. demand those in is only And we're value part what improved Our partway pleased for do we proposition customers of

David Silver

Okay, great. Thank you very much.

Operator

closing with to Thank you. any Mr. Morabito over that, back things turn And comments. for I'll

Thomas Morabito

Thanks, Bo.

to mention in Conference forward to conclude, on you share we Thank we November with today, results. in XXXX. we participating and quarter February Before XX, full the be again fourth as I'd Investment speaking our and joining that management XXXX for Annual you will look like Stephens us year

Operator

Thank you Earnings day. Conference you, XXXX Call. so great Mr. Morabito. and joining Deluxe's us much conclude Quarter Ladies to that We'd you and Goodbye. all gentlemen, thank all wish like Third for a will

Deluxe (DLX) 3 Nov 222022 Q3 Earnings call transcript