Q3 2024 Deluxe Corp Earnings Call Transcript
Key Points
- Deluxe Corp (DLX) reported a strong third quarter with nearly 7% year-over-year growth in comparable adjusted EBITDA and a margin expansion of 140 basis points.
- Free cash flow grew by 9.5% during the quarter, demonstrating effective cash management and operational efficiency.
- The company reduced its net debt balance by $45 million sequentially, highlighting a commitment to debt reduction.
- The North Star program has reached a milestone with over $100 million of the $130 million targeted annualized EBITDA improvements in execution or completion stages.
- The data solutions segment showed strong sequential revenue growth of over 6% from the second quarter, indicating robust demand for data-driven marketing services.
- Total revenue declined by 0.7% year-over-year on a comparable adjusted basis, indicating challenges in achieving top-line growth.
- The print segment experienced a revenue decline of 2.3% year-over-year, reflecting ongoing challenges in this traditional business area.
- The B2B payment segment only achieved modest revenue growth of 1% for the quarter, suggesting slower recovery in this area.
- Merchant services revenue growth moderated to just over 6%, down from nearly 8% in the second quarter, indicating potential headwinds in sustaining growth momentum.
- Legacy check revenues continued to decline, albeit at a slower rate, highlighting the secular decline in this segment.
(Operator Instructions) Welcome to the Deluxe quarterly earnings conference call.
(Operator Instructions) I'd like to turn the conference over to your host, Vice President of Strategy and Investor Relations, Brian Anderson. Please go ahead.
Thank you operator and welcome to the Deluxe third quarter, 2024 earnings call.
Joining me on today's call are Barry C. McCarthy our President and Chief Executive Officer and Chip Zent, our Chief Financial Officer. At the end of today's prepared remarks, we will take questions before we begin. And as seen on the current slide, I'd like to remind everyone that comments made today regarding management's intentions, projections, financial estimates and expectations of the company's future performance or strategy are forward-looking in nature as defined in the private securities Litigation Reform Act of 1,995.
Additional information about factors that may cause actual results to differ from projections is set forth in the
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