Deluxe (DLX) 4 May 232023 Q1 Earnings call transcript

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. ahead. go Please

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

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

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

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

will and today, adjusted comparable financial On EPS adjusted and we flow. adjusted including revenue, adjusted EBITDA, comparable the discuss adjusted and free comparable margin, adjusted non-GAAP call cash EBITDA measures,

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

Barry. to it over Now I'll turn

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

prior or we exclude the periods. inconsistencies a adjusted will comparable You'll in began the both on EBITDA acquisitions by basis, recall discussing that last revenue quarter, and caused which divestitures

goal scale, on promise more consecutive adjusted than decade. year now delivering and profits This an than comparable a We're a revenue. of faster on elusive been basis our has our of revenue for we're third growth long-term growing in

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

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

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

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

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

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

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

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

mentioned web XX% cloud I known allow last focus this a or call, further divestiture, our and formerly on Post As data-driven on business divestiture DDM. will hosting marketing as us be and our data. is payments business will line, the nonstrategic data business of to

by efforts improvement consolidating Chip work additional optimize operations. lockbox ongoing to further the our on share and strides significant details. made sites we Fourth, shifting will

Deluxe announced joint Health, the a or into ECHO focused as week, Payment Fifth, on of with Deluxe platform. this venture capabilities earlier expanding DPX our entered Exchange,

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

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

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

So let say, again me thank you.

the to results. on Now

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

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

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

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

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

banked institutions revenue. of by collectively represent not affected an are the any and portion then directly of We immaterial

Perhaps that were of institutions business affected away additional deposits as several result institutions. challenges, a these competing won from the more importantly, win from to we

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

comparable the segment's revenue in first quarter. Data adjusted The X.X% declined

comp this and business. that spending with recall QX unusually This grew pull forward, the into business several an blended in X.X% expectations. performance customers On the period, along QX with consistent key XXXX QX basis, strong forward of DDM a will QX impacted X-month pulled DDM long-term You XXXX. this

I'd into verticals. like financial Last our related highlight institutions. quarter, regional saw efforts DDM continued expand in to some we highlighted to nonfinancial traction Today, we

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

helped for credit line more Another than X PenFed assets based also in Credit manages applications. Union win check is longtime increase Pentagon mortgage A billion Virginia, approximately million significantly PenFed Federal and members. customer, we McLean, $XX

continues in Turning quarter, to an promotional is strong Promo with Deluxe comparable recently another margins. The growing revenue improved enabling We using Promo. which Brand improvement Amazon adjusted with our were had improving business our to or businesses Amazon DBC, and platform Center customize ordering also We benefit relationship Amazon. X.X%. from the items. strong is pleased to like

We believe provide customers. is having platform Amazon more an anchor on to the many potential our the capabilities service testament customer on to like to this a

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

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

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

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

we're we While work leverage. growth quarter still have a and adjusted our generating pleased of modest comparable with positive revenue do, lot results, to to first positive operating

believe also look these should over from completed efforts benefits margin milestone infrastructure We now leverage to forward for company We're and pleased this and that the modernization our an have investments. time. be further durable important to this unlocking is

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

everyone. Thank morning, and you, Barry, good

highlights revenue reported consolidated X.X% Let's total the million. relatively through a was year-over-year, declined for revenue X.X% comparable go the quarter. basis, flat, to first On increasing while $XXX adjusted

$X.XX $XXX share We down in diluted Adjusted X.X% from per reported at and per from $X.X a million net income adjusted share, up in million million, last of or quarter quarter up first XXXX. came $X.X on comparable first GAAP X.X% of or $X.XX the basis year. EBITDA

impacted the were XXXX data, business which checks was partially Improvements by exits. in by promo and offset

In benefits plan corporate addition, helped our benefits across cost we quarters. had better smooth changes that some the out to

basis XX margins adjusted were Comparable EBITDA points year-over-year. XX.X%, up

at quarter from $X.XX diluted down First quarter. first by EPS driven in year's and interest was depreciation and in last amortization. This came decrease expense primarily adjusted $X.XX,

XX, which a rate XXXX. also swap the first million that quarter, we March the $XXX existing interest In expired XXXX completed swap, on replaced

and existing SOFR the swaps credit modified to rate We also reference term interest these our agreements. facility rate in as utilize

partially debt from which company replacement swap, fixed the this With XX% should rate our remains hikes. rate, future approximately insulate

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

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

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

orders and usual We satisfied are of by largely have as the backlog transition. created operating the now

savings related in which long-term third-party these ERP a detail and segment's will legacy was overall supplier system near-term roughly of IT XX was but I capital and checks the supply by The improvements Examples company particularly moment, working remain. implementation include profitability spend benefits profitability basis points. Despite impacted impacted issues, costs, to in chain.

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

promo systems businesses acquired our the Finally, and unsupported check numerous within of the legacy our reduce risk nonstandard inherent in in and will businesses. systems reduction operating legacy ERP and

and very operating the driving increases also materially effectively we infrastructure, benefit. to and completed. of on will was the end This a mark This it we massive expenses now modernize in are to undertaking, continue pleased antiquated the been focus has

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

As year-over-year up previously year improve slower progresses. tough for of indicated, we against a as We was growth have still we quarters comps. growth all few rates anticipate to payments the as expect

partially Strength patterns. in was softness offset in Merchant nonprofit modest Services spending government areas by and from consumer

we levers payments year. While overall subject for deliver the confident many guidance across to remain the our conditions, still that to merchant portfolio our business we market is have

efforts. quarters. month. X margins sites the cost in third expect with mostly be adjusted our to prior operating expansion points closed we to a of changes were volume year, expected completed improve this points basis between by further will Payments EBITDA this lockbox and down from margin We driven pressures consolidation These and basis and XXX XX related XX.X%, subsequent lockbox XXX performance, quarter

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

the year-over-year, X.X% adjusted a a The down Australian year's of web pipeline decreased reported divested XXXX divestiture. data's adjusting from softer Comparable year-over-year and On revenue than quarter to declined data for to million. quarter. the $XX rebuild to last revenue we the related little million of fourth hosting $X the revenue first basis, results strong were due XX.X% having from to expected

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

the combine X.X%. of a strong you increased quarters, DDM performance If the X

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

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

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

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

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

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

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

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

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

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

target remains Xx. approximately strategic long-term Our

to as expenditures, the just cash flow, was in last cash we capital be as activities operating call. less defined the on expected quarter, negative by first provided outlined Free

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

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

To free payments flow generated more core checks capital generate responsibly our build around allocation, comments we the over data, believe businesses cash growth Barry's can into business we are on time. by significant robust that investing and

high-return Our investments disciplined XX% current planning rigorous process We have and reducing process, a dividend. and paying all our leverage, and business compelling facilitate delivering allocation returns internal rate. and investments annual are ensuring for case our a target clear: a hurdle capital priorities debt above net our is

through equates our which to quarter $X.XX X% shareholders to per roughly yield. very and attractive value share return is a We currently dividend, per

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

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

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

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

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

free on interest impact guidance with a million. share the million, factoring million and $XXX million, which after However, the of continues to basis. Also, guide of shares adjusted and of of flow remains of average in year-over-year expenditures following: the an the to to $XXX $XX approximately outstanding is increase comparable divestiture, $XXX cash order assist amortization million, expense our your adjusted assume amortization million approximately acquisition of capital tax rate count of an XX.X an $XXX XX%, modeling, depreciation

divestitures. to subject this of interest and other other inflation prevailing including issues, is impact macroeconomic supply the guidance labor rates, things, Among conditions,

we start we are to with summarize, believe are we off to additional have To encouraged a quarter first results our do, solid and while work XXXX. to

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

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

take questions. Operator, we to ready are now

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

Or JV. if to about Health improving could more growth? more Was line of up I'm cost ECHO a the volumes thus the you set little that in it bit talk accelerating with and about actually start business? motivation about is JV. we could Barry, that just more the wondering structure revenue the

Deluxe ventures whether could the partnership about and other expect verticals? potentially you in or this other perhaps one-off or case, how whether future, for you a the any just in blueprint a help in is additional talk to And partners with

Sure.

paper-based we that or payments. of progress often So digital first of are payables in the to all, outbound area recall make payments, continued what of you'll digitizing the have side

helped for a as -- Payment with have it as about created, making years something we had that called process. ago much product MPX payments We've internally a that more called digital medical Medical success X or really payments, and guess, streamlining that solve outbound great Exchange I we the well DPX

that some We today and for that we partner the same solution large succeed type that assets other very digital saw and an the underserved with opportunity of to required the to payout mechanisms, middle of is and deliver market have ECHO has are there assets.

to the the we had -- in real market these with the collection payables of saw of so And we the -- and market assets, going in assets in bringing that And our motivation. of together payables was middle market. meaningful the to opportunity take middle a for -- by share a the business the

it's that that additional We of a a feature do to very but limits to and get attractive us quicker us the functionality think take to our CapEx way for market piece allows faster. have pie this, investment and bigger

so And great.

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

it's Lance, Chip.

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

streams X revenue. of there's So

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

to we'll sales go drive have and we clients revenue the distribution force. them to continue as find So

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

Great.

Okay.

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

Yes.

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

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

we to to eat to it. here kind now nice of it's start be So where into are

some of understand The will it in minor of important I change benefits to the on plan our smooth timing sort a made is that call, comment made one out the we of corporate. help

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

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

So cost there's worth that $X of were manage we to million good that feel able about. improvements we

on continue would our now, to plans the get be efficient. But X%, spot your more continue continue from to X% good roughly assume somewhere roughly get a of and take there out I is cost modeling. to revenue to X% as for to percentage execute now around to we to X.X% year,

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

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

Yes.

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

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

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

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

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

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

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

feel Our range we the remains solid, and with confident year.

you reconciliation give a others, to I able the think call. real be perfectly do here can of I To on time don't

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

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

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

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

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

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

consolidations, But there every it as into, for us. banking time positive turns far a average, are on as net opportunity,

are in that's consolidation. data a be business, there are bank we net businesses in otherwise, winner a our net We whether there's winner consolidations. to when our checking when or And tend

But that we to institutions. data institutions see It encouraging go was in something customers looking to draw quickly our first us from deposits. to our thought as deposits in to in we did very the revenue their affected actually for market those some accelerate short-term ability go attract of business quarter were turned into with campaigns additional helping

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

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

the are of the not it done First knew the balance before was do company. biggest ERP operations we to overall that because on implementation and us needed of gives improving all, we sheet have we've things which did this complete, of opportunities we get now we one streamline the the to focused very

coming see good understand is feel make make we that on precious trying things for got shareholder the that. I that improvements. there to about additional some is will you we've completely especially have and us for capital us, of us that with we things to and we we're talk And like And over do behind some think decisions we Board have are I capital been focus infrastructure engaged shareholder of think And great sure getting very returns very improvement. to allocation we quarters, these opportunity that now do what stewards course, of

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

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

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

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

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

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

in and to understand accepted I talk to us reality customers like that with Do that that. we're Our talk think and to have we going them they And fact greater want forward. is about on not memory, a may to that have while they anyone's going understand the going specifics? more much frequency now help you anything pricing than actions

the the in the the mean about prepared I in quarters. Marc, I that's think taking it we've price. used Yes, And term have remarks, gone way I last responsibly

over as our using input prices very our about costs, We simply contractual We've to it an muscle year. make our built gouge and the really customers and new looking just aren't opportunity in at being this partnership up responsible We're last and requirements it. profits. to doing

what I think how analysis be. of it, do should price we're using the we inputs we're rhythm price, about about very take the go the to that we thoughtful

it at it a down. center yet, and inflation keep to down is it slowing look want coming is Obviously, continue just bit, and we front And we inflation. but not where

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

a -- imagine of also to that Well, to bit you always held a I but want until on little this is kind of other I highlight -- got of the the sort side I you the to to touched was would you doing the ERP maybe things the sort of could about of journey that. that being bit, always -- other if are have wondering off get of X-year the some other on there and you on it's side and talk side good that. congratulations little on And so journey

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

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

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

be working So kind it low get hyperfocused, cost. near get going we of to have what term, smoothly. We very going, just and it's call perfectly it hypercare,

the underinvest anyone in in We're the it more to to regular transition traditional a it shelf. be see you of cadence do. We'll platform. always that to start leave We'll would not investing or on going slowly

functionality. So the we'll continue to improve

give performance. term, near faster about will we'll analytics I our we think visibility close, in which us is to how what consolidation drive improve process really do faster look think and business our

place. what put it's me, to bit in start we really, little of to But a use

get It daily from on operations of we to the big get part is March. We improve we with, away, through things got that the amazing we of went the and output fulfillment new the forward the for into had going the cadence to AR, look improved really inventory, quarter to was how business bumps was at billing, the dealt the We capital, an keep very on. to get how the going stand area customers. our opportunity on like had right get plant, we efficient doing help working leverage right a we deals everyone stable. business. and what insightful with daily manage for process, a up opportunity system the run now As That's of February us to very

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

over would I able allow does the put that streamline time reliance X company to do well. to other that The ERP we it is over that, the operating don't the from but further we be away the that it only us us step will absolute add in time, systems. give as actual thing on on does of infrastructure opportunity and spend more of so quarter, And new

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

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

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

going continue to that expect forward. We

think, the institutions, the I our remind ourselves we overblown is a they're banks, it's a what's customer, bent attachment to that they're what still to user, a user on because to is end [ have the ], and bit think always going but end the partner, to financial important I vehicle thing get Marc, the right?

relationship, at banks go and of journey. look side they of as where it. the have get customers a data the out move portfolio opportunity of may kind we to marketing It ours it target of around. to the where shuffle We customer may move the analytics help leverage our So into to we may help a move kind

-- favor, in to Barry usual, keep to material customers. as our business know, out it's on we not were a for bit play a little of serve continue we all. really said, and But us, and ready operating But going we at to as it's it's impact the we just just be -- average,

time. no are at there questions this further And

So I will now turn remarks. the closing call back to Tom Morabito for

Abby. Thanks,

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

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

now disconnect. may You