DLX - Earnings call 3 2023 | Deluxe Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Deluxe Third Quarter 2023 Earnings Conference Call. [Operator Instructions] And today's call is being recorded.At this time, I would like to turn the conference over to your host, Vice President of Strategy and Investor Relations, Brian Anderson. Please go ahead.

Brian Anderson

Thank you, operator, and welcome to the Deluxe Third Quarter 2023 Earnings Call.

Joining me on today's call are Barry McCarthy, our President and Chief Executive Officer; and Chip Zint, our Chief Financial Officer. comments today's as we slide, Reform or seen to defined everyone Private of we take I'd the expectations end management's in forward-looking remind and regarding of in future Act begin, on that performance of the the prepared financial Litigation strategy will remarks, XXXX. questions.Before like intentions, company's At projections, today or estimates are made Securities the as current nature

and results our factors with to forth adjusted ended about may financial release, GAAP. for will in our that SEC the SEC, flow.In including and the is adjusted release our revenue, actual other the XXXX, and from free EPS measures information under set non-GAAP these filings comparable filings.On press find differ measures, comparable most adjusted Additional including disclosures call in adjusted the we EBITDA, comparable cause projections to our U.S. comparable the furnished Form year press and measures and we adjusted the today, non-GAAP XX, margin, discuss EBITDA company today December measures, regarding reconciliations cash of additional in XX-K you today's presentation adjusted will

reconciliations Within modeling.Now, may to assist Barry. materials, I'll to of with turn are the also adjusted we providing your EPS GAAP EPS, which it over

Barry McCarthy

Thanks, good Brian, everyone. morning, and

usual. share updates to a our than prepared longer so important today, some have We are little remarks

we'd like primary cover We topics have morning. X to this

First, our XXXX and increased earnings guidance. solid quarter performance third and year-to-date

comparable begin results Star. initiative XXXX.We and incremental increased North $XX year. QX North this exciting adjusted to of EBITDA increased in of $XXX an cash initiative this deliver Project Star flow enterprise-wide rate Second, of of the call run will adjusted ramping with EBITDA an delivering the launch through million million free

few regarding year-to-date quarter performance. and First, a comments

than our third adjusted comparable the to Northstar our third initiative. while while revenue and operating during quarter, $XXX adjusted revenue by of perspective, ability which provide X%, has through the consistent provide quarter operating the was total below quarter, provided mid-single-digit numbers, some reflect segment growth.For our cost Overall, was track third third overall the segments. best Further, given third in some this and expectations To growth. revenue to $XXX payments of quarter focus of reflect Payment and will XXXX signaled Chip our grown quarter in faster are pleased area will the third has through more comments.Overall, our will a which we're divestitures.For delivering our result to EBITDA we well by both impacts third profitable the first last year reiterating continued the base we X% will year business X%, quarter. second was flat I revenue We've leverage increased our EBITDA performance met softness Chip EBITDA our our last and volume total softness will efficiency we BXB revenue at here be deliver Year-to-date expectations our The demonstrating lockbox of in revenue business.You million. performance comparable also guidance, as in-year than impacted full comments EPS we're primarily call. concurrent the our expanded quarter's we revenue on quarter, consecutive EBITDA our raised revenue. during drive year year recall, on year. straight reported profit our growth.On in was increased in quarter full with growing performance expanded with year-over-year Our full our results, believe as delivered we his million, while brief our of XXXX we to both also range, provide portion from third within our regarding during call. organic the adjusted the decade. of more organic underlying guidance growth quarter, details continued but guidance flat execution year-to-date with

line year was more business just growth lapping sequentially quarter.On business, In revenue the addition, improved the a of comp Services, this the during to of prior our quarter for X%. payments over during Merchant challenging third note, positive half increasing third a other

this that business.We related You economic outlook noting improvement consumer retail uncertain. spending within actively impacted monitor remains volume processing trends including factors discretionary will reports, continue some trends, the macroeconomic somewhat recall recent and year-to-date overall to spending while within

of via further reminder, a beyond example Mid-Atlantic and with continue which in Financial was a of through across our expanded capabilities.Fulton bank the won another several product This relationship quarter center merchant of growth to has will the Solutions was Merchant We milestone and the fertile Fulton year commercial billion Deluxe investment ground significant Data plenty in customers, banking offerings services results now an milestone existing to important us generate and customer.You help business, X robust the with of services.Moving spanning merchant growth year.Here's more accelerate the financial our the for XXX revenue quarter thesis roughly platform Services that across for X.X%, to our services fourth in third both states competitive few Northeastern markets strong assets. successful business further middle why. validates with demonstrating into cross-selling has the points omni-channel growth less expansion to United of during the our We our an for will States of remain X,XXX full Corporation. business reliable for $XX merchant because our core across growth recall, services. market the than offerings. next and First we scalability of services win than win incremental one Deluxe has services alone the locations, acquisition. our superior business represents ability and cross-sell also deliver support, quarter, Fulton could SMB our a to merchant harvest a segment. perform American providing the our well.Year-to-date, institution that areas, quarter more presence is for confident and for an merchant and merchant example strong will customer the revenue for mid-single-digit The As merchant discretionary achieved third

continued growth exceptional across results quarter We particularly as continuation the we demand continued low-cost of in during business These their in with last addition a are banks and EBITDA deposits noted seeking a the partners.We strong over to the were of of banking pleased many have for XX%. quarter, marketing driven as services revenue more segment FI in of campaign within increased performance XX% execution accompanied than to see our offerings. by our support robust expansion account of data-driven this

with reoccurring our We verticals.Shifting an the also comprised revenue a at annual On businesses market characteristics.Consistent now Print businesses continued of rate margin XXs. blended recurring interest declined our rate-sensitive our cases, expansion and into Promotional and X%, these Solutions did EBITDA combined the check than in XX to print other portion low expectations with year-to-date in low points have expanded by less have a XX.X%.In Solutions to margins executed during declines quarter, basis, revenue businesses just of quarter business, basis some seen declined see while we on We impacting and our closure planned the of revenue have over production. previously some demand or softness basis, than EBITDA these in segments. the rates billion businesses of non-FI X.X%. Combined, and many print Promotional single-digit less a $X.X more our third site generate

EBITDA toward area growth also the reoccurring than segment more shifted within improved basis, in and on that have acquisition under We our a and promo more this cost.On XX% with better products lower year-to-date generally resources XXXX. nature X% focus customer versus revenue just margins for are

slower X% Finally, revenue our pleased with better the perform leverage to level also the expected our the our the and by sustained much continued continues quarter business well than quarter, many helping overall Check in results.We business better X%, during business to expectations. results strong within Margins than to grew contribute market the third Check than expected. EBITDA are mid-XXs have and our deliver to EBITDA have across Check enterprise and declining

working. data share, our payments summary, X% and of business. some a cash power specific year-to-date We into have our performance, gives X%, strength company.In more our are and scaling quarter our us growth confidence flow despite to even and winning revenue efficiency transformation and demonstrate The this of we of the headwinds, investments EBITDA third predictability are of reflecting production in growth complete plenty market of runway

competitiveness deliver help Our will to North wins Star. forward.Now and second Project highlight our going performance sustained our topic, us

First, a little background.

able an to the this As year, businesses. we our the and payments point inflection our are throughout at data decline where print secular businesses have is together noted lock outpace within

we to are in rapidly trajectory full company's increased improving the third more growth by first and EBITDA track of revenue flow paying ratio. trajectory, a driving cash our further consecutive and our than in debt expanding now need shareholder changed value this year have performance accelerate decade.Next, to drive our we and leverage creation more to organic time free year down on leverage the operating XXXX for We in deliver are and growth,

XXXX. incremental We ramping we adjusted program and Project $XXX flow by run Star.North have call combined rate our will Star integrated EBITDA cash increase an into our million million, execution plans North through comparable $XX

our revenue of to a improvements multiyear these initiatives, with Star addition North design, dozen initiatives horizon.Three, to work taking early investment streams Star so Two, rapid and drive in designed high and is separate One, our time improve to and process ratio, North clear have The de-risk work reinforce mix, planning planning deploy sequenced to flow org we're North of portfolio executional our outcomes. operational main complex work a Star than and a North ROIC, the cash reduction execution cost comprehensive critical prioritized on capital underway streams of required capital.Our leverage initiative from best-in-class consulting plans will initiative several We strategy and improved external our this our X from highlight drive to consistent points expertise our payments this for our into rigorous businesses. our change pay and Star Print cash to total resources down to cash is via value on been enables a balanced flow scale. Four, priorities.Importantly, a months, generation, and Star. longer-term our on value. Rather, integrates stated multiyear returns debt to program to deliver has rates which together our growth. The structural focus we're approach businesses certainty. hurdle approach the on fund driving advisory us allocation comprised to data and value.I consistent the is this leveraging to to to incorporates not more for North with in invested is investing is program

We executional of XXX Star already reorganize have we as teams. already and this, current change our talent acting across North is company-wide In evolved Deluxe culture. our significant part have and over to certainty a of North agent adding as change in objectives action the organization. for Star, taken our doing X, driving to leaders

combined incremental run like-for-like operations New the be have provide X. ability about December high-impact quarter, and efficiently company and we EBITDA Investor more to accelerate reduced in to to $XX to core capabilities, We quarter rate third strategy management York contribute growth our approximately initiated outlook.Finally, adjusted the during to talent layers, specifically, hosting businesses.These million Day our consolidated steps, the fourth invest will create an forecasted Star our in of on North details will more and run

Brian we insights organic leadership ranges related of the Deluxe guidance and the event this team the growth. By for and changed passing offerings North do Deluxers revenue During Chip, attractive thank at initiative next call.Before to the for company's years.The across provide their our delivering my success. provide our EBITDA trajectory linkages have regarding growth again of to provide into helping portfolio Star fellow end this I and additional the Star today's outcomes. North the continued regarding session, will over our details solutions, current this share additional for to will detail the sustained few prospects, more, customers will Deluxers customers' to want commitment

forward look Star We future and benefits and yield. the North are all momentum exciting proud of our will to

Chip Zint

you, morning, everyone. Thank and Barry, good

quarter, touch Star the call.During points business a we development about like few usual third since and conversion U.S. data business and to Before to the quarterly additional our the covering decision payroll I'd providing North exit highlights, on agreement one last through partnership with a made Paychex. the executed additional

next from the beginning clients our quarter result, to the comparable existing place conversions ensure take line of business. months.As of fourth of our business a adjusted will We are customers as working migration impacted. payroll will over to seamless these across transition a Results in the several this these be Paychex, reflect results

the large $X.XX reported segment points quarter. third year-over-year.Third from On reminder, in third a came decrease diluted transaction million, Payments' margins was part prior softness and basis. our comprised resulting quarter prior this to to merchant EBITDA but this the to in by up the including business basis, bank the turning performance.Now in XXXX evolving to needs, comparisons. of like adjusted see seen to this Payments completed at marketing and net Data comparable year year ongoing increased methodical quarter points lockbox persist seen business.For the Comparable strong growth expanded and solutions, reported a X% came space.We gathering. share be outlook our from this often verticals, with the quarter revenue noted, from portfolio.Now of monitor.Payments Growth million, adjusted revenue low our approximately income of basis business flat show adjusted largely second business simplify our XXXX, business quarter This of portion divestiture the one-time across third some from year-over-year a levels, the starting of lockbox at to experienced segment primarily basis but remittance is adjusted to improvement discussed X.X% feel year-over-year, his strength for up adjusted the initiatives of from together total Comparable GAAP the of at the was from DDM before, to X.X%.As in impacted with low per year's last single-digit an continues the profitability the Payments by continued $X.XX, merchant improved in our while basis, margins surrounding the adjusted of at while sites versus decreased amount EBITDA the the in net quarter, businesses, in expanded outage remains Data's reported X.X%, consumer processed revenue, Barry per comparable million. adjusted a data-driven In due deliver $XX receivables third comparable much a of or effort the particularly an million, the extended even across on very to loss for X% for On adjusted declining volume $XX.X of rates XXX $XXX.X It million. spending EBITDA operational quarter-to-quarter. of to and As down comparable third and down down challenging year-over-year, Web payables expect declines mid-XX% some prior flat businesses' $X reflected margin revenue expense landing now total Data driven XX.X%, was EPS for marketing a temporarily a volume also on uncertainty revenue or good basis, tends our partially revenue Payments second payment points in efforts Operational basis by segment, driving XX to Barry competitor the quarters XX.X%.On the to year-over-year results, we driven increase quarter, margins for balance continuing year. decreased growth the of however, business to strong about on $X.XX we quarter. XXXX, rate offset X% to year-over-year, exited the and operational adjusted up decreased factoring which growing flat $X.XX due X.X% ability diluted revenue and were Payments $XXX.X volume at range. Payments few campaign-oriented prior improvements despite a X.X% to the the balance by expect third of continued to quarter XX were we We business quarter Solutions. EBITDA support from million, Solutions quarter from to discretionary area. the $XXX.X share, our and prior growth.As rates benefit noted continue Margins adjusted earnings lumpy interest during details, a of a we've basis to trajectory. progress, margin BXB margins and softness revenue the of deposit improvements XX.X%, XX.X% XXXX.Adjusted XXXX, the is adjusted necessary consider understand continue from services an in were points the year, balance better year. Hosting were even in by our market in continue of XX as higher lockbox comments.Revenue low-cost

For balance our current results campaign results as from reflecting as into both deliver significant believe QX comp revenue year-to-date existing negative year yearInclusive we these to prior-year full growth, well Data of factors, to will continue expect guidance. the outsized we challenging shifts DDM experience last QX year, the Solution some our growth, of a

XXXX.As year, decreased full margins a Hosting a on includes single-digit in comparable revenue even basis, networks. the flat bit expect Promo's achieved mid-teens X.X% of quarter in some For year-to-date to a Checks. margins, at growth comparable range revenue XX.X%, taking comparable blended now for expect year of we're the a EBITDA businesses, this revenue demand low extended with continue declines Check Web year. margin result targeting Barry decline remained million. secular continue year.Turning adjusted quarter purchase see mentioned, low from for Promo million, last to full as mid-XX% to We the Print as margin XX approach and the through relative second margins products even holding positive more with third XXXX, third actions. may basis. a to of adjusted $XXX grown strongly, to we declines the year with a impacts adjusted profile result, closing was has to year-over-year business we maintained distribution on the our within our during growth.As overall last Print versus portfolio to full as trends single-digit revenue business demand low to the expect for which decreasing see more X.X% mid-teens.Checks our to XX.X% has our revenue broader within on responsible half adjusted even X.X% combined revenue which impact further price durable Solutions' now profile better comparable year we by was across and mid a this single-digit focused $XXX.X the June from reoccurring adjusted softened our adjusted consistent down Promotional low see adjusted expectations performed Promo Promo's we reported and

margins is a revenue quarter improved year-over-year.On EBITDA X.X% down basis basis, sequentially effectively Check were a year-to-date flat prior reflecting XX.X%. adjusted at increase XXX Third with year period points XX.X%, versus the margins

with net balance a the from now complete our quarter. level even our are confidence continue transformation.Turning and the EBITDA mid-XX% we pleased at the ended durability the and Barry of mid ample Checks, debt single-digit cash giving quarter $X.XX XXXX, second of For sheet billion to range, to billion, long-term expectations.As more down end mentioned, low margins in to revenue we of $X.XX declines runway flow. consistent from us flows cash the we our to with We have sequentially with expect adjusted

with that X.Xx quarter. debt target Our strategic the we the second total of and was second our XX% net at quarter, entered remains of that the at ratio swap consistent debt fixed quarter, Xx.Recall into inclusive the remains approximately our end approximately to rates, the of long-term adjusted EBITDA during

is was We cash continued ongoing by rate $XX over operating million flow, horizon.Free as compares debt expenditures long-term closing The provided reducing defined from very of of with continued variability which of $XX.X December cash have are improvement the quarter currently net per and all in to high-return of share XXXX.Our our against now less per largely hikes quarterly on priorities a be the yield. internal year-to-date a potential sequential insulated equates quarter share regular attractive to target third growth activities capital quarter's consistent, XX, million, our with remain the $X.XX reasonable paying this on representing our dividend Xx, Board capital X, result.Our November see seasonally approved we for below first shareholders outstanding will XXXX.On on and a which quarter from important metric, and basis, to negative XXXX investments, third leverage funding payable for per of our record dividend $X.XX all to allocation shares. as dividend, market

$XXX North QX cash initiatives, benefits performance.As XXXX.As dividend long-term We high North ramping our adjusted and first free in his incremental of continue is million current Barry from free further through towards mentioned, coming enthusiastic run to of we our key see these well rate details our will support annually review are of financial significant grow one $XX program, adjusted targeting of noted long-term flow particularly Xx and via to million EBITDA Project capital incremental focus our paydown yield adjusted us back continued the our out bring through EBITDA some that Barry improved as which This levered you comparable business allocation announce around generation, EBITDA will with we're performance. our within periods.To priorities. Board, accelerate to the provide as over our target the over below the from Star improving objectives additional flow comments, progress will cash Star, debt and

revenue previous of Interest and cash shares, outlook, North to of improvement lastly, quarter. our acquisition to while amortization the with range work the guidance to the with flow, businesses. cash rate have expectation pressure rate improvements the this of we earlier targets months detailed rates, capital guidance range XXXX the in for of of summarize, cash of labor we additional following. is XX of consumer count early XX.As dividends of against launch revenue the Star our declines execution. full expense related of XX.X billion full cash charges during million million interest reported outlook approximate guidance our cash third forecast pay Hosting impact we've to additional optimization also years updating including the guidance for enable QX initiative revenue the within ongoing our and years, between free of the seen with flow quarter the reminder, few rates, times Web annual adjusted adjusted million year is plan starting detailed, macroeconomic the of the release, based us and comparable our actively third QX share initiatives over to next both Investor be $XX approximately to $XX $XX we trajectory results of to to used expect cash Also, $XXX of to taken further to with to as severance north of and incremental in-year of are services North savings guidance, the range North as us benefit. of Payments Project the To-date, average the adjusted free of and million full and assumes $XXX XXXX.With current is of third volume funding North softness XXXX our free supply divestiture guidance framework.Our maintaining core in for position year This to our a respect still some up in Reiterating previously.While are the cost approximately Star subject flow high adjusted conditions, Star million, way our third of your year.And function which impact Among today, timing from We results business trajectory we'll XXXX are quarter revenue Data million update be we largely we the and between expected spending, year expectations due and executed year-to-date year-over-year restructuring unrest, North revenue $XX December, some remain and an cash of interest related range over $XXX $XXX other allow assist from million. CapEx global is investments. charges.We the issues, $X.XX the the an improved guidance, the to follows. by noted the drive These initiatives restructuring our million, depreciation today tax rising expectations further will $XXX pleased Project when will year our encouraged and decline of and flow another The an of flow actions of adjusted to inclusive $X.XX in with in projects the upcoming divestitures.To Print order XX incremental year, will growth of the increasing results related X year. million, we $X.XX, likely program quarter growth to maintaining next amortization ROIC the for to increase and Star professional a with Star charges and approximately midpoint free for moment EBITDA the to other guidance the and cash redeploy primarily continued our continuing and updating lay estimated original pleased our XXXX, quarter. will we impact and expect run full the of $X.XX in execute down to approximately below of mentioned our $XX EPS, to further charges raising Day Solutions execution obligations, operational rate to through More XXXX.We guidance to to restructuring further overall prevailing ability benefits net initiative. guidance flow, of we along our expenditures pay the North EBITDA during free This that these have full to $X.XX of us performance, charges.The expect adjusted the exciting an achievement will core million over parts during outstanding with modeling, of our rate streams on expenditures XX%, Hosting company to QX improve provide We X Star these lead the the fourth expectations out and will divestiture, EBITDA run approximately continue given are and while initiatives I'm guidance, by free the $XXX the of an over offset years to of a EPS improvements additional fees, year, cash between for growth balance realized amortization, slightly things, adjusted figures debt, June continue in run specifically, to and in ongoing take line billion, from approximately leverage ready million, reflective by efficiencies, fund as the flat deliver for $XX transformation ratio.Operator, EBITDA and to our $XXX X%.As and to lowering North corresponding our between million lower impact X again, within to our Web remainder million growth now and secular and consistent next profit $XX improve depreciation to our grow are we $XX continue million, next million EBITDA, with integration are Star the X aggressively and while capital closed and is the These allocation down all impact today's an of debt, in taken from questions. remain full recent is year expectations which to on comparable continue of mind and some another press earnings trends. keeping the which reflect will would execute inflation,

Operator

is question of the TD line Vitanza first your Lance And from Cowen. with

Lance Vitanza

rails, better view down the of opportunity you kind to you talk on medium outlook payment the you for about thing? Could are given there. how looks get any potential potentially like regulatory Merchant talk is, Services. and the first or new that just could question that sense longer-term pike My what you outlook trying for to changes that a for trajectory I'm coming seeing prospects

Barry McCarthy

that think material things ahead back of about we that, really milestone for that particularly think Lance, Merchant our the we the Services have points course, merchant you'll for market. we think of business, and excited pay We around Hey, couple be win. we that, interchange, expand any feature Fulton with much the it's quarter income competing bank is regulation, that to XXXX, middle very that cross-sell, company. ability forward.We're sources have out some for to market offer, tell anticipate would you American conversations big of that middle deals, in do transaction. And been set general, intermediate will our have about partnerships. the It's it Bank are pay primarily to excited there of going there demonstrates never around and merchants on interchange. up long-term.As in would to the revenue Merchant are going of while and compete And I win that is less trends growth limited related you of in we large the the will of about around of add opportunities great We're customers, we our business, attention the pending effectively just Lance, have to in the business a because and are business which existing or from us on per Services that story win up the impact around the a First Barry. impact win fees very a I robust, is us. into recall in a indication on is that know, really important that Deluxe really deal we, The to to think alone what all all don't any segment where the on business.But ability our acquired, market would that that June the we

Lance Vitanza

if And verticals like get there talk I'm could either a about side, yet? aren't you you verticals then talk for more are that examples my maybe the follow-up, beyond expansion call or before, services? And could to any financial the but growth wondering just high perhaps of data on discussion actually some you'd the that out to that into, didn't new you about

Barry McCarthy

Yes.

we business very massive in the core our of from marketing of we that data And do different data ingest sources. so what XXX over is amounts data-driven

an then put go AI So of ultimate receive and largest artificial in high anywhere data behalf to of consumer United to target we further we business data is tools, the tools, that the small offer on help customer.And at businesses that step believe and extract actually small identify offer. have really us consumers our individual or lake businesses the have that that top lifetime of all that our of consumer, States.We of value. and intelligence and deliver And we on so customer, the targeted our one data

high-value, all for relationships. have long, wouldn't consumable you So is doing a to product. buy be long-term businesses for this somebody one-time that effort This

casualty expanded home And and so high-end goods Internet we've companies, telecom, and already insurance. utilities, furnishing property merchants unregulated to

value been opportunity next? lifetime have question business on we high go And about it a this lake, gives financial growth a built not lifetime quarters, anywhere data last outside we've we've few high because which customer. our within opportunity but institutions, your successful verticals additional where customer very market only massive-scale expanding where for so about has value.So the we've Anywhere lifetime beyond talked would continue represents that And to us. there's to at for a value where FIs the a high trajectory, expanding this our us these

Operator

is line Securities. the from next Our Strauzer with of Charles CJS question

Charles Strauzer

$XXX implementation. flow that If was quick the of we could And Just wrap-up the is kind a CapEx, talk ERP hope number obviously, going that from come year. this from basically North you to Star be down the the now towards Are year million saying year next savings the CapEx are about would the cash and of that ERP this redeployed initiative? that question. wind-down

Chip Zint

Hey, Charlie, Yes. Chip. it's

QX pleased that years, you're integration And into signaled CapEx number. CapEx that's the restructuring start and $XXX we we for ERP, the entered on around X cash roughly.The figure that assume at of to a charges spend and we doing next the spend the believe good year. much to free was were right, So the as this year around flow very million with this we of program. more less do with final And

you recall, of of year, this at the job getting the start there. we if were the So end through

restructuring our North on back transitioning spend really Star. of going to Project All that.Now the we're was of the end year, towards

So this things. the doing year, X we've been

to not charges time, at free is in we it's remain invest next over occur growth And more will talk EBITDA. free and be cash improve so Investor horizon to continue we're expectations flow we to conversion as the remain Day all the next as few high and one-time. believe we'll do still spend really payments us talking the And and data. about reduction.And kind with is in flow cash a about cash and specifically we cash cash a the next free watermark, $XXX years right allow term. of percent still over at million free can to These approximately us we lot the slight the allow year a going our believe healthy path the look ahead flow in expand.So believe near CapEx in year to healthy term to year, to improve restructuring near North do Star of side flows going of figure But still to this of are and adjusted

Charles Strauzer

customers And then types quarter. the and more to could if you bit provide expand on the the growth data-driven a as marketing of color in side, there drove the Barry, little that

Barry McCarthy

non-FI in pleased, addition we're to we're channels, serving in have them as the remarks, last on business. the marketing prepared help from or exceptional low-cost customers data-driven I to in the So quarters low-cost significant build really had the bank said their seeing our X requests deposits. we acquire particular, performance in In

addition within really, for delivering winning tools so and like channel. as here not our also to That's in like we in business grow in well. this wins every we the and we've proud our use been non-FI expanded urgent to and able the the why FI helped had need deploy prepared very, rapidly to of AI low-cost last X, nice quickly we're some see been great really such deposits.And said to delivery for the confidence Obviously, And request, have future build we the receive customers to what in year is look on database full our and what's and channel, remarks, but bank quarter long-term. quick new very going an the we very trajectory against the so really the of for

Chip Zint

it. another about I'll just and comment add Yes,

with hosting So a year the web halfway year. this the messy is obviously, divestiture data segment solution the bit through

going aside, is that's to the full that The there, the grow X%. the inside DDM-specific roughly to take engine growth you year. will really closer go-forward portfolio If X% for of portion, grow

one campaign-oriented other. Campaigns just the it's right can so a the at or And of shift a out edge way in business. quarter

And this here in really a term. of for so heading a about is lap the think we we're be figure good we just long full fourth tough And feel have year going to comp, for where business kind the deliver a we is will good at. that quarter but the as where X% gauge growth you in we that decline

Operator

of Sidoti Your next Company. is question Marc Riddick the with from line &

Marc Riddick

scheduling of initial questions these be how North wanted covering circle the that I'm last I to I steam, some you'll the into and to -- of sort to because you led sure maybe Star sort at did for how some if the of that Project lot sort sort time. thank Star the -- talk wanted months? that I about the gathered or few a of of Day setting -- that have, it us a North Investor that how jump So of pillars maybe some learning's up of lead a maybe little first, into the for program back will, the or of that and to conclusion maybe the want process of certainly, But lot Project over of ERP you bit to of certainly

Chip Zint

Marc. and Yes, I'll more can start is add This then color. Barry Chip.

this will reiterate that So good through I think we really meaningful investment want drive believe to project just at and is we're first, that I returns. a going shareholders

next wrapped know the was we this years, us capacity necessary to until we get And to last we bigger to doing path and will get a didn't strategy. to our got the really the provide is accelerate step. change helping been that as on up it's that the over As the through everything to organization this It's that.So logical one point, inflection here we transition we we've is X executional have said, and in really the thing the and ERP on project take not we've a this certainty that there. been

be we're And it's we've secular executed of the worth gives yield very successful so very in-year us pleased great will us declines. what going gives already which results. about immediate annualized think certainty that million run this already the is into again, $XX We're partially $XX to in this, we fourth a here a that million excited But and going that by initiative, year, funding rate confident. next quarter, and very and that be we're offset

Barry McCarthy

Well said.

You starting right a against. is in executing really us really we've and board deliver shareholders that the think that confident the the for are going quarter. of we're to about know, that We we're points put this strong indication opportunity on front about fourth in already

Marc Riddick

you're be gaining at expectations. we're we sort share about the on and available of of least bit as little bit. and touch I experienced what -- Okay, think is vis-Ã -vis share, may talk should And one guess just jumped sort mean, a out point at still the certainly that vantage at the third to things Checks. what that how has a you in from the that? secular overall of of It great. quarter wanted you I that. if resilience of to market that the if you, of we the least look market not little maybe I then seems guess looking kind what from the though I at

Barry McCarthy

So, first really of I the appreciate all, question.

the made for And to and and in in operating to expect that clearly of maintain share, us of ton that had our actually, winning consecutive Checks of winner us. and I a us a we really ensure think had company of and, effectively flow are third we've and but also superior we've than be really in win couple the that. term reasonable that's attractive maybe improve and market, really are price of product, And investments fundamentally through at continue and is and the great mid market helps improve the channel future. tend that a of this the We've holding fully market history the that selling usage our working of earnings on flow share. great to which in the in and we XXs.So, our rate is have less cash things of great transforming able we given us program investors able while has us the product, quarter growth, it. of decline, our got and years, consumption consolidation, period efficiency for profitability to one non-bank cash to bank confidence market the the deliver effectiveness better revenue quality we're the on helps team where long the company margins a very last Checks share and doesn't understand market this so, believe Every other gives flow that a increased also and that the big to helping foreseeable about a all additional responsible decline that we produces. X we proud long to of quarters that we time actually deliver that, a the check there's of bank don't that cash we partners.And us ability the the control that, we continue dispute

Marc Riddick

Now, well. that certainly quite gone has

thank So, details those over for there. investor I'll you to turn it day. forward and looking the

Operator

this questions. Anderson at further appear And I be will any to call remarks. no Instructions] turn the now [Operator time, for to closing Mr. over there

Brian Anderson

Thanks, Dennis.

will February Investor look following from regarding will mention XXth. X:XX year our Before on we Eastern Investor More Lotte the on Annual results. the will more conclude, at for share call.Thank I'd you morning our that to like participating Conference and Xth to to the as in November Day at Investment the of our presentations, on be be again York management again Day sharing and this take am relations posted place details which Nashville New December investor Hotel, full XX we activities, Palace during today, we site joining also early XXXX forward in Stephens us

Operator

Ladies We earnings and thank gentlemen, this your does Deluxe third conclude the participation. XXXX you call. quarter conference for

You may disconnect. now

Deluxe (DLX) 2 Nov 232023 Q3 Earnings call transcript