Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Deluxe First Quarter 2023 Earnings Conference Call [Operator Instructions]. 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 Morabito. Please go ahead.

Tom Morabito

welcome Deluxe and Earnings Quarter operator, Call. you, to First the XXXX Thank

today's McCarthy, Financial is Chief me remarks, call Joining on questions. take Barry end today's and Zint, we will the Executive Chip our our At Chief Officer. of prepared Officer; and President

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

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

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

I'll Barry. Now to turn it over

Barry McCarthy

solid off revenue a is Thanks, and Deluxe start XXXX Tom, growth. with and morning, good comparable EBITDA to to positive adjusted everyone.

This long-term on basis a been revenue by We're delivering has decade. our the than will faster exclude on in discussing acquisitions revenue of revenue. caused EBITDA which comparable an quarter, promise third than a year adjusted began and we we're recall inconsistencies in a now basis, prior on goal adjusted more elusive growing or scale, divestitures last profits both for of our that growth You'll period. the and consecutive comparable

we're cautiously represents optimistic of and do, inflection point more margin still there's improving our time. quarter that to While this over leverage earnings

results, a take quarterly the updates. review offer let we moment to a business me Before few

QX, what First, implementation with Chip provide our a moment. on clearly of to well is corporate a modernization additional program in details infrastructure project. showing always we our our execute will difficult in the completed ability ERP, X-year

Second, to I acquisition. some First offer approach second on as anniversary want we the details the of American

business is quarter. power of X% digits merchant services single our American, business this for The or discipline to this case Deluxe meet management the a First the exceed we revenue continues and now growth was progress highlights made delivering and grower, lower go-to-market and platform the One transaction. mid-single-digit financial on the our solidly growing Pre-acquisition, operational model. our acquisition

since referrals. the were new acquisition, onboarded clients we've relationships example, an that nearly As or Deluxe X,XXX

American as see Deluxe. for to We important First continue value an driver

of sale web month the closing logo be American all to at our North conditions. completed this hosting after Third, and expected business is satisfying

our on week, Chip data be business venture As further allow the of work efforts strides known on focused with I additional of optimize in into by the announced capabilities our or will as and entered to on joint consolidating data. Exchange, is Payment DPX business nonstrategic our expanding Deluxe platform. will earlier DDM. line, last this Eco improvement data-driven and our formerly further this significant divestiture payments Fisc, ongoing a Deluxe made Post divestiture, cloud and focus web hosting marketing us the Health, Fourth, sites will lockbox call, business operations. we to mentioned XX% details. or shifting share as a

future we'll calls. more business payments on future We share and in expect DPX will positively impact the periods,

talent, and our clients. been companies Newsweek. of products role to by reliability the trustworthy underscores our and the Finally, most This America's recognized speaks it Deluxe and one mission-critical for quality has again as we once and trusted of play services,

these of been dedication of work the possible without my have and not fellow hard more many and All would accomplishments Deluxers.

So let me again thank you. say,

Now on results. to the

quarter, from increased for to On management XXXX. of a impacted Total exit nearly by million, actions as X% dollars quarter was continue Total X.X% revenue $XXX For basis, year-over-year. the several the comparable to and EBITDA was X.X% business structure. a we decreased cost dollars our which basis, of adjusted EBITDA first adjusted XXXX. comparable increased on revenue pricing X.X% benefit reported throughout adjusted up ongoing

term. We EBITDA on be increasing free quality driving for growth focused to adjusted long revenue with continue flow the and cash

we we metrics progress We as as see for in to some just through messaged XXXX, improvements have expect these time.

for For the and cash revenue in million flow adjusted $XXX million. between EBITDA increases year, free $XX modest comparable looking and we're with

I have a that business of challenges. seen our we associated weakness of to mention Importantly, lines result not any banking across recent wanted the as industry

as any directly institutions institutions an We Perhaps importantly, business the collectively are not affected additional were institutions. immaterial to away a we won these of of the from win revenue. result from by banked challenges, more and competing portion of several affected that then represent deposits

revenue offset XXXX. Payments, segment's includes a our impacted grew with other receivables roughly quarter solid declined revenue strong growth. segment Services first X.X% in increasing The the X%, Commercial long-term expectations was X.X% pressures Data comparable was management and of which some performance mid-single-digit revenue site the in ERP and project. highlights. The of end rest our the treasury and quarter. by efforts Payments our partially the had to first revenue on areas of volume consolidation at from cost business as Moving flat adjusted by payables of and quarter businesses, high of temporarily

our regional like along business. spending DDM efforts business consistent quarter, DDM institutions. basis, that impacted Today, DDM expectations. continued highlight You saw in X.X% comp expand verticals. period, highlighted forward X-month to some an into unusually the we QX grew QX related long-term strong nonfinancial Last this QX we with this key QX XXXX to a XXXX. traction forward, in into with I'd customers performance several financial pulled This the of recall blended pull and will On

example, years, relationship the recently our XX helped at customer banks solutions. outreach For digital expand their for innovative with introduce largest of include solution business over one its Bank, lines. Deluxe Texas X DDM to expanded We to IBC a IBC Check regional of an Deluxe

mortgage based PenFed A Pentagon Another in claim had Virginia, more Credit Federal win than credit also we manages helped Check significantly in is line for Union, the assets members. customer, billion a $XX X Fed million increased and applications. approximately longtime

customer and Center Promo. Amazon service businesses testament an adjusted Amazon with believe Deluxe on using We from Amazon. relationship a to benefit customize X.X%. provide improved to improving more our platform Promo business is is quarter, recently many had pleased like DBC, in on The growing our strong were margins. to also strong revenue promotional the Turning ordering Brand improvement We with is continues or this to which the customers. We another comparable an capabilities the to platform anchor items. having to enabling potential like Amazon our

our business onetime our expectations did year-over-year, ERP declines. consistent The revenue Chip mid-single-digit profitability, discuss. with declined Finally, of long-term check will which a impact X.X% implementation on have

allocation briefly discuss do Before process. capital to want concluding, our I

businesses. growing strategy reinvesting the our harvested and from the focused Our by on is data print businesses Payments cash

this Payments have are shareholder expect data revenue our encouraged and in a become year, Payments and we business and very by and to both progress. growth will growth are data our positioned returns. strong We payments improve largest deliver to disciplined markets. we well investments, process secular positive

leverage. with over We're still investments. milestone believe forward to to growth and infrastructure have that a for leverage this now also and we modernization time. modest While these quarter should from pleased pleased positive further and work comparable We of benefits efforts do, to durable the revenue company this to operating results, completed be positive unlocking have lot our we're an our margin generating look is important first adjusted

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

Chip Zint

morning, Thank and everyone. you, good Barry,

through $X.XX a and highlights up at X.X% net came or Let's Improvements business declined the for $XXX increasing to offset first or the from was On consolidated exits. GAAP relatively year. quarter. partially last million. basis, in EBITDA a We per X.X% flat, $X.XX total quarter XXXX. down adjusted X.X% up income in share, reported revenue the Adjusted impacted $X.X was on basis million, the data, million of $X.X were while first revenue diluted reported comparable and from year-over-year, of which by checks share adjusted million promo first per comparable XXXX in X.X% quarter $XXX by go

out points year-over-year. benefits across better up adjusted had addition, costs In were the smooth plan some corporate changes Comparable quarters. EBITDA that XX.X%, basis we XX benefits margins to help our

also and replaced first adjusted on last came quarter XXXX quarter. First EPS in existing $X.XX rate swap expense swap, first depreciation quarter, the completed which $X.XX, XXXX. interest we driven a amortization. at This down by In from expired in year's decrease that $XXX million and was primarily diluted XX, the March interest

credit our partially should rate We term rate, insulate hikes. company interest existing fixed approximately also the facility replacement SOFR debt XX% utilize in the swap, future this agreements. reference which these modified our With from rate as rate swaps and remains to

a SOFR reaching assumes and rate high guidance a no may Our increase XXXX. of with in reductions rate roughly X%

segments, on to additional some implementation. our provide the details I'd like Before going through ERP

throughout challenges built revenue the on As March. in February, have up profit. we is system that live, mostly Notably, some did occurred backlog improvements experienced went impact and an but

include roughly costs, in basis benefits system of The satisfied and Examples the supply company backlog profitability usual orders remains. near-term legacy We was chain. a impacted, by capital XX overall segment's savings impacted are supplier now ERP spend detail transition. profitability long-term the I implementation which related to as and operating Checks was will these have by of improvements IT issues, working but moment, largely the third-party in and points. created particularly Despite

several ecosystem. have through on value We also streamlined a expect be of saved operating more end-to-end to dollars future million to

operating the a we and has the Check the on reduce in also driving and systems are and materially inherent businesses legacy that focus Finally, within legacy nonstandard expenses our of very mark Promo of in now businesses. numerous continue infrastructure, we massive modernize was in acquired will undertaking, benefit. operating to This This the unsupported our reduction and ERP completed. risk will to increases been and end the effectively pleased systems antiquated

Now turning and growing first details, revenue quarter Payments growth grew million, Services to our to $XXX Payments with year-over-year X%. segment Data. our with Merchant businesses, X.X% starting

growth as few Payments of in for anticipate spending Strength previously from the indicated, up We comps. offset a consumer patterns. As government by rates slower was to quarters year have softness areas year-over-year expect was growth all as against Merchant in still modest nonprofit Services we tough progresses. partially and we improve

from cost we the levers guidance driven our deliver and points will month. sites pressures improve were across consolidation EBITDA of XXX for subject While to the We a the related that merchant lockbox X have efforts. These to third expected Payments business we closed to to we further completed margins points prior our operating our performance, in changes and conditions, overall still down lockbox with quarter this remain quarters. year. portfolio market between adjusted mostly is many basis volume year, XX expect confident XX.X%, expansion subsequent by XXX and margin Payments this basis be

see the to revenue low the XXXX, The pipeline expect For having fourth to were the to in results adjusted continue growth quarter. mid-single-digit due we strong to we and little expected year-over-year rebuild softer data mid-XX% and to than a range. from down EBITDA margins

million year-over-year, Data's adjusting a year's divestiture. million. web XX.X% declined of basis, $XX divested from hosting for XXXX the Comparable X.X% to $X to On first quarter revenue adjusted revenue related the last Australian reported decreased of revenue

hosting up mentioned, campaign quarter, the the and experienced declined the Data Barry shifts into which include against XX.X% results As web this some business, and fourth the still quarter. comps the tough was of impact

revenue points. Taking quarters, we EBITDA EBITDA If quarter disciplined second in a improved account, of points the comparable mix basis a quarter. the strong year-over-year to you increased to product into adjusted XXX due growth the the see margin combine expense rebound performance solid in XX expect adjusted margins XX.X%, and basis, to management. largely basis a these Data's On X.X%. factors two in DDM increased

to adjusted see growth low basis. XXXX, continue to we single-digit For comparable on a expect revenue

see expect to also EBITDA low the margins We XX% comparable adjusted in range.

X.X% the XX.X% a to many from business XXX increased actions to EBITDA EBITDA Turning improvements reported Promo's of as new adjusting and year's driven sales X.X%, Print operations year-over-year businesses, Promo's adjusted adjusted Comparable wins first million revenue our exits. basis, points divested margins margins continued and now up first Promo in last Checks. from actions and a pricing million by XXXX. revenue of benefited $XXX comparable cost XX adjusted and for points we quarter from basis improved quarter structure. basis. and on basis pricing On $X revenue was increased

adjusted comparable million revenue price secular from first to and continue to to we growth in last the see revenue actions For declines. to business Demand EBITDA as quarter to continue XXXX, return maintain year high to we continues retention adjusted the predictable, X.X% rates. and and Check's margins low mid-teens. expect decreased single-digit $XXX responsible expected take remains

First basis did year-over-year I due ERP-related expedited did mostly margins points quarter impact the not February, orders. XX.X%, occurring see EBITDA challenges higher down we profit see significant an adjusted mentioned, but a decline volumes, in and we specialty XXX were on some in to

on and Over the as the operating weeks, six bookings expected remain system past been has trend.

and in adjusted we EBITDA mid-XX% For margins range. XXXX, continue revenue expect the mid-single-digit to declines

first of We flat the of XXXX. quarter $X.XX level flow. ended our a now debt Turning cash and to net to the billion, with quarter compared balance sheet

net of projections, our of and our the the unchanged on a EBITDA Xx not year. Clearly, our to we rate goals for paydown will change line. Our adjusted remain do quarter from any end ratio of track leverage debt for linear first ago. of be reduction at debt in the was not The the impact a quarter, perfectly year and ratio

to we remains approximately first Our strategic operating outlined activities was less target call. last expenditures defined long-term cash be on as by quarter, flow, expected Free Xx. as capital just the in the negative cash provided

on implementation. XXXX, driven temporary This anticipated and by $XX the capital a the primarily free gives changes decrease somewhat anticipated, the positive of negative free interest. confidence quarter second a seen remain expected flow Once ERP cash and to flow in in already the negative year. the increases cash first was impacted early in CapEx, taxes was to for related quarter, of the the and However, million we've can less flow compares working in million again, by $XX.X was recovery us free cash track than which

by Payments build around robust generated responsibly businesses regular share free all June a shareholders to cash capital the flow on allocation, quarterly on dividend Board our are significant record outstanding believe Our into of closing all generate Checks Data more $X.XX The shares. approved To XXXX. market growth investing comments that on Barry's XX, and on core XXXX, payable time. May can per dividend will be of of X, we we business over as

priorities for have allocation annual We above net process current reducing leverage, and planning process, debt Our are to and is X% XX% a is compelling delivering our yield. through disciplined clear: and investments all dividend, investments which our our roughly and returns internal share $X.XX returned capital high-return our paying dividend. rigorous business facilitate very per case ensuring and target a a per hurdle We attractive shareholders to quarter equates currently rate. a value

to of and grow continue performance. focus We with business the yield through improving Board, out review is to our that Data our current high

through to and Xx free flow more of focused even We on details below share calls. our improved Finally, upcoming debt get on that levered. we cash can growth paydown back plan rate remain we more accelerating EBITDA

to affirming are in mind web the now close are keeping and of expected impact hosting all expectations figures for divestiture, Today, expected are and month. Turning which now logo to approximate guidance. our we XXXX, the this reflect

million, adjusted flow EBITDA million. $X.XXX to billion EPS $XXX $XXX to to free million $X.XX We revenue of of $X.XX continue to adjusted million $X.XX cash of to and billion, expect $XXX of $XX

to negative X% As XXXX on comparable adjusted negative to a EBITDA represents rates impact adjusted range depreciation Adjusted growth. incremental range an revenue The $X.XX previous and impact X% year to mentioned on now our we due EPS the divestiture. of decline the comparable represents estimated year-over-year interest to is positive X% a call, of announced amortization rising full positive expected from basis, X% growth.

the other and macroeconomic divestitures. we to including To we impact while of an count tax continues XXXX. modeling, amortization $XXX acquisition divestiture, solid summarize, adjusted are $XX the is interest comparable first and of other our depreciation $XXX $XXX to rate in believe guide to shares XX.X prevailing million. your share However, to additional approximately of on after assume cash have with of million a a our supply expense guidance guidance to remains XX% an do, of factoring average the and basis. labor and capital work encouraged increase impact and conditions, Among outstanding of start million interest things, approximately the order of million, of is assist million, year-over-year with flow subject the amortization quarter this issues, and $XXX to to expenditures million rates, adjusted are results we free following: off which inflation Also,

Our forward. is now implementation significant we to live, expect see ERP and benefits going

to down through our increased which growth, us are leverage should cash move Operator, lower we addition now expecting take grow ratio. EBITDA, debt help also are to in improve questions. continued efficiencies, As XXXX, free ready operational revenue we we pay and flow,

Operator

question with [Operator will take our Instructions] from Lance Vitanza TD first Cowen. We

Lance Vitanza

structure in with the is about you actually the or revenue talk thus help the bit could start set other it we how if about the about you perhaps talk accelerating the could expect any in to more JV. improving just motivation partners just ventures of this in partnership other In that the Echo is up JV. cost for verticals? and one-off Was with additional little you Health wondering Barry, Deluxe growth line more I'm volumes about more a potentially a could business? case, or whether to and a future, that whether blueprint or

Barry McCarthy

we are I outbound the well two side first payments, mechanisms, Exchange streamlining is we recall a of years solution echo make there We've of the DPX underserved large it payables making we middle the outbound succeed Medical very really with payout helped success in continued payments, progress the all, or paper-based that to MPX and payments. much and and have called you'll internally great that to have the deliver guess, for same created ago or what other that more assets. as something that digitizing that So that as and often for an assets digital digital opportunity area partner of digital market of we to required of today have about that called solve had medical as a type with are product Payment the payments, We saw some process.

assets piece we these in and collection had to of the going we the saw of the that by to that additional our CapEx opportunity market the middle market. business market payables bringing real limits attractive this, us investment a And And meaningful market We together motivation. payables of and the take with a to was the share so have us the middle for but very in of and assets, pie a a quicker to do think bigger it's to that get take allows for faster. functionality feature way our

Lance Vitanza

is so from income to And on consolidated your this be we thinking about? this the or stake be of financial an of an that in statements equity is going sort structure, terms to need

Chip Zint

Chip. it's Lance,

there's So streams here. about actually think to various

three revenue. of there's streams So

The first distributor venture. be towards the joint is platform a of the we will

to the and equity sales stream find investment getting equity financials. our have into force. clients of we distribution inside our the as venture We'll the method And consolidated the joint continue we income the revenue percentage selling share net technology, a third joint the our method we'll venture revenue the will that stream, that we then will investment So side. go and an leveraging record from servicer where platform, to side, of of have ownership in the drive be a servicing and as them

Lance Vitanza

any corporate at of revenues. was or we expense the line, is over guess did X.X% Let that and which better about It forward that than corporate I at year, me additional the of balance turn about there? much expense latter thoughts down going least to the of we year-on-year how it color was XX% expected. should had or X.X% model stat revenues,

Chip Zint

I since year-over-year. to I quarter talk of first been about we've So while improving we have say it's had all, corporate a think a Lance, would where

that upgrades on be journey benefits headwinds, to reinstating from having to fantastic modernization So in been we've with place, COVID. the restructure and deal various

we to it benefits made of I of to kind is now nice help start change into are minor of a eat the here our it's be made The important of where comment call, that smooth sort on we timing plan it. So in one to the will out to some understand corporate.

a timing. in been benefits and little our in As with the of to business over that you QX know, history and do QX past had certain loaded we've front-end lower

down was kind things about smooth shifted million we've $X were that out. there help despite of from that So into we overall though, QX now that QX million. Still will $X

there's as to assume But manage be of the out that get we improvements that plans X.X% efficient. million to worth year, now, around spot get X% more revenue good modeling. to would continue about. your cost continue So $X and feel to X% we on to were to to roughly is for good continue our a execute I of somewhere to cost we from now roughly percentage able there take X%,

Lance Vitanza

see came our I where because in And the really then press your into line just unfortunately, well free a we the lumped other me, statement, well, can't flow for the in cash the That flow. all to at expectation. be off delta actually were least a in last And cash -- below bit one on seems release.

Other there were we subsequent know in you but items the start cash guide, million. were one cash reverse year. the unpack should think slow us? the $X year -- you that the were just outflows we the outflows given could year I other year, quarters? should be So then thinking full you million to be that more there timing And thinking this low for reiterated Can for about or ago, $XX end

Chip Zint

tell million the negative go we exactly guide. So in number, expect we internal course, you now first can was didn't last on We of the our I quarter. far to call, as the maintain $XX to you be plan tell mentioned our but We, continue to negative.

said, it tied capital. slightly working I negative $XX as was the million, So in we worse than thought, really up was and

gotten So its we so of that -- bumps, But project. through mentioned the It a those things was a its The did we've we're any that. team ERP. Once like glad fantastic again, job. we're delays. it just has difficult has

capital that, immune AR a from little collections of and not specifically was working some bit inventory. so And

really, So we working million difference made that plan. million in $X in is $XX delivered we the the million from capital to $XX had bridge our

news significant Now we've customer activity collection here million the good $X already that April in had is miss. that's even than higher

So I which me as worry a think give can down up I nothing range. in sit that plan here terms moving of rebound, today, of or year-to-date the to without a solid quarter, to and a ahead actually in about there's I'm perfect visibility. on continues be good basis, confidence QX

remains range the I here perfectly be Our I call. able on can To time reconciliation feel real year. confident you We do a solid. to don't the give with of others, think

the drivers see up expected hikes we'll back ago. off-line, you were we've many, can all year do. last we costs, called we on what big what out higher interest and follow call seen since the a as and that know we us let year-over-year But with So many rate we

the higher, to we knew would bit be be would we continue as products. when So in reinvest CapEx new higher. knew be would taxes interest a We growth higher

and And all getting improving more they me, efficient would. our so we working And knew the capital it's execution played way there. about things and those out all for

Operator

next our Charles CJS. take will Strauzer from with question we And

Charles Strauzer

there thoughts, like hear that I if build could banking pressure for publics, turn could, love things I'd shifting share positives take Are you customers you possibility banks, there gains and a various about to to, turmoil buying, into as chase potentials customers share there this that. guess, positive potential Barry, there? the and are

Barry McCarthy

where opening So Charlie, are, we But we challenges. banking want And mean, impact banking far, banking far the institutions, so serve don't sector every not of But significant headlines exposure. for with to seen consolidations, that of we any our as the the channels. opportunity, we any have any average, in us. the as distribution you relationships us revenue banking highest turns those that are a from we the have net see one any specifically, at level, said it what there as I banking reiterate material this even or we have I comments, very of course, positive are morning time into, on in

the when And encouraging be our whether bank we did We that's campaigns checking to businesses or something data and our in in a net are business that our we attract consolidation. to when quickly consolidations. accelerate to helping into some data looking see additional winner a tend very to short-term customers business But our in were net of from was for as winner us there actually market ability otherwise, we first quarter institutions with go their and to institutions are deposits thought draw revenue affected go and turn deposits. those there's

there to change we us, analysis sector, we the horizon. in in our end concern and the some a impact is we net think any happening so seen and volumes have not what for definitely is And while the or see on positive

Charles Strauzer

the little had things quickly? do bit Board little level allocation Board down to help some gears when about capital there and more at Barry, balance more Has discussions just bit And -- the down to maybe been that. more like discussions a sheet. to pay shifting the more [debt] a things -- more aggressively

Barry McCarthy

getting on which we trying sheet it done ERP all, complete, One of see we've we you and focus of to opportunities focused we And we with decisions knew that shareholder things will these now is some like us very returns overall operations are that opportunity us we improvements. to have that we this there now is behind Board sure especially because what we've think And us have we for get great of this additional implementation I of make that needed feel are streamline improving to allocation very shareholder First stewards us, to do of before been not course, things over do and we're gives completely that. do and the of infrastructure coming the that improvements. good biggest we have make to balance capital on capital the did the some quarters, the got precious think engaged understand we that for I things about talk company. And very

Operator

question will take Marc Riddick from final we Sidoti. with And our

Marc Riddick

wondering start questions. of some a more ERP commentary was then a around I could in pricing the about environment that those I if and and little bit was few over rates. if maybe to prepared could controls you and talk remarks, wondering the we retention shift was So we there can

Barry McCarthy

So let and a macro start level, solutions. about take the give at our come specificity. to message is a We me and of hold very pleased a our Chip macro little that a price for more we've durability demand really volume. increases been then ability important can with about at think But the in you

think important I of that very solutions demand for it's continues. to note our durability the

So even we're price. across solutions as solid entire we our portfolio, the sustainable and demand for seeing take

we journey. not to So over. think on to is price the continue this for room continues be Inflation us

have on while talk they the that. like frequency with to them in may a to greater we're not actions fact than Our that pricing memory. we understand customers anyone's now And going much

about reality and us and more understand they have going want to talk think to help going that anything Do that forward. I accepted you is specifics?

Chip Zint

the up doing profits. using And this aren't our prices our Yes, at it. we to I last our gone and mean, it very about it the We're year. the input requirements in about the over I contractual really looking costs, being make to new responsible think and in just price. partnership muscle prepared last way built we've We've an customers in used and gauge as Marc, that's simply opportunity the I taking remarks, quarters. responsibly term

I the inputs it go it, analysis but rhythm the coming we is about and think And center a using it about price, do of thoughtful we very Obviously, how not keep front the take yet, that we're is we and look where to want it down what bit, we're slowing inflation should continue inflation. at to down. price just be. we

be and having responsible opportunity getting right our have about we internally the this we on which what's but stay it So to to to as line an pricing, use make to it's customers. and sure do we're the that rethink degree slower, continue bottom about continue to by continue whole to conversation

Marc Riddick

it's also that the side get the I ERP of on always other want other -- highlight -- Well, and journey good is the the always sort of X-year side to of to the to being journey.

until So was got there that that. and maybe I touched And side the a things of would congratulations of that. but on on doing other to I little little kind if of on sort talk -- bit this you a about held imagine are you wondering could you have bit, some off you

that wondering to the targets might you so was a or some degree bit look what of longer-term I have to. And some the initial of ERP efforts of maybe then about you of we forward that maybe sort could benefits sort share and little post can

Chip Zint

for you journey. we're and very pleased worked here. Thank very be to acknowledging that hard, The team

focused we're of around the Right a that As them on issues near you manual now, it the kind we have reautomated. and out know the bugs stabilizing imagine, about could of time. processes fixing and and through term, we period come getting or gone that them operations, long for

hyper just see to that term, be hyper of We platform. kind start going would to get cadence near call it low So will transition anyone you investing in perfectly of focused, smoothly. traditional regular have more cost. going, we do slowly the a and it always to working it's get care, We'll what be very

leave shelf. in going We're underinvest not to or on the it

term, think start new I functionality our went and little amazing me, the process, on AR, of look daily really on. we insightful stand what output at performance. improve improve really, a a very the part put bit it the from analytics stable. we very to capital, give doing to off what a help to the the to billing, to get faster to leverage of to us the keep big for We visibility we'll February get business. an us fulfillment right But use We customers. had faster with, opportunity had we right That's for improve how inventory, business really was continue get on not business forward things efficient cadence away we improved we deals to our of and we area in with working the is as the place system operations on process, will through about and think plant, was got the run going it's opportunity consolidation And into bumps March. to how our get that the everyone is a close, quarter we up dealt we'll drive the what do which So near manage like look how daily going

really and do just needs, us make me, and going full now. I the the business continue business but benefits out of to as by So we're to and to it for to feature usual, right feature get it more it's just efficiencies run now think the system, expect better our

Barry McCarthy

thing would of infrastructure allow actual add company. I is the does it streamline only that The to on further the us operating

step does quarter, other we in be will spend put absolute on time it systems. So well. but that ERP to the over don't us able from do more away that over give reliance and X time, that of as the new we opportunity And

Marc Riddick

your know I see headlines exposure sort that challenges and we and of then that I and commentary there. the -- there you every the around of And -- day the had banking appreciate lack exposure in mentioned

of to getting talk cost types of winning longer-term if those of a -- from of opportunities those kind from emergency to moves nature as clients? of that sort benefit you an those Are able emerging in trusted the wondering provider. I So about I little the sense through a about type sense bit sort want this talked bit they're from do are from to a going opportunities you little tend just that of that. maybe of be generating savings a was you're perspective, getting sort of a is of some

Barry McCarthy

we're it. the think when to multiple industry and that revenue, we that's past, it in winners associated of continue aggregate, happened levels, expect course, dollars In from has net on we And that there with which, is profit consolidation going forward.

Chip Zint

think may thing customer end but It target they're help our our of play is side analytics what's the ours partner, customer, that institutions, go get it. it's and kind because leverage important I at banks the remind opportunity of bit user out may right? bad, to for think, of of the it data banks, customers vehicle it's is little impact have we -- still and on us, help Marc, keep really So business what attachment bit they kind that the as a to ourselves move it's to to said, We average, were move journey. we and financial move the may we operating at know, the But to to marketing usual, going the where to user, the shuffle material we ready to to continue in just and of a look just it's But relationship portfolio have always the serve around. our a favor, end overblown I get we as as a -- Barry we on into all. not where the we have to a customers. out be going

Operator

Tom at And to closing Morabito remarks. now will for I are further questions turn this the there back call time. no

Tom Morabito

Thanks, Aby.

with today, forward we for Cap quarter participating in Annual like share to to XX. Annual Before May second Colin's on TMT Sidoti XXXX Media you will Virtual we Conference results. on on Small and XXth Conference I'd we and us management look June Conference XX and that Thank in the Technology again August XXst our speaking the as mention Needham conclude, be joining May XX, you

Operator

And ladies you participation. thank your this today's and conference gentlemen, concludes for and call, we

You may now disconnect.

Deluxe (DLX) 4 May 232023 Q1 Earnings call transcript