Deluxe (DLX) 31 Jul 242024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Deluxe Quarterly Earnings Conference Call.

[Operator Instructions]

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.

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

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

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

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

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

the momentum enterprise, I'm which to evening, the adjusted everyone. period. during results, report earnings rate, dollars comparable our sustained to to and basis good improved pleased and Brian, Thanks, points continued across EBITDA year-over-year both XX% quarter reflecting XX including improvement second

the results, versus expand faster a our allocation versus cash half are and priorities deliver XXXX. than to the our These of strong very flows, our robust consistently key We of efforts first plan. operating These capital North earnings are reflecting expected strong ability improvement execution metrics further to of continuing sequential initiatives demonstrate Star our operating also growth and reflective accelerating results these of core first year-to-date across growth profitability and quarter revenue. continued

During

strong ranges free the segment at pleased across rates today, more trends which particular, the headwinds both we quarter, Accompanying well these outlook, our and as within cash secular first print Solutions uncertainty a XXXX updated this I'll some of our X%, reflecting moments. and balance continued of Merchant experienced to [indiscernible] deliver given as cover expected segments revenue to the respectively, We're declines we're in a the and portfolio. modestly the range ongoing revenue the flow. and over Based in for our earnings lingering year guidance half year-to-date XX% growth through adjusting reaffirm Services results year. we the across payment Data full macro on some growth, few revenue also bit

our of Star has the each in to line operating demonstrated North in Importantly, maintain and year-to-date our with both continued operating enterprise results strong segments total margins adjusted objectives. EBITDA leverage

comments on segment reviewing more additional enterprise like to North the prior couple a broader Star environment bit progress. Now provide macro highlights I'd on detail, and in second and to our quarter of a

data. data, well As spending other review well and proprietary economic as as Reserve we sentiment brands, discussed monitors small both Thunder the interest providers trends rate sources previously, environment. business and consumer our as many Deluxe around own of forecast card discretionary as from We the including

Gap] These of multiple our [Audio impact areas trends

meaningful and by cash progress the flow, roughly goals goal of back annualized both phase. incremental Benefit across Star North remains throughout to reflected XXXX. adjusted execution work million year million and here. execution realization my be Initiatives XXXX incremental streams are $XX our X/X we've moving update as $XXX shown following continued both comprising this with will Star first the of free all Consistent through over our to XX half progresses. of the and EBITDA North quarter, of unlock make

ways brand, execution percent we effectiveness improved unified of the North in segment to efficiency flight roughly American of later of all company within complex stream We're is This our are advise of each corporate was notable work Services. acquired simplest part the Merchant streams that and total toward revenue. the decline of a of the we've one process example brands to top began now the First Star also to fully improve One shown see metric will with program, basis performance. pleased that our progress X via the our into along Since QX as continued chart. by work XXX streams marketing expense the points. the begin in Deluxe One work more consolidation marketing in of as plan our

merchant performance, Additionally, segment's this will before been and Even materially growth improved Deluxe by evidenced driving cross-sell. consolidation, simplify since XXXX. in the One our success consolidation in Deluxe drive June which brand the model has further the leverage as One go-to-market the acquisition is helping brand of

performance. Now second about some quarter details to additional our provide

our results both adjusted a comparable the year-to-date perspective. periods, and for comments best and calls, consistent business our quarter ongoing we provide reflect which with my Chip will to our results reminder, prior today, adjusted comparable additional As and reported performance. believe review discussing will consolidated be

$XXX year-over-year. million, second X% quarter, of was revenue a which exits, decline reflected the of For net business

As year some result plan expected included data addition year. softness impacts period during in portion introductory half noted overall below specific the BXB timing first I was of in bit for print this and segment. promotional the our the prior comparable both in The comments, to just my line the a of top

the EBITDA year-over-year basis continuation level, I reflecting growing QX dynamics total prior the finished the margins the year. noted in to points Adjusted line and at by of quarter continuing dollars second my comments. of at challenges, opening quarter $XXX expansion XX%, to adjusted XX versus the million, Despite these increased XXXX top robust leverage of as X.X% EBITDA operating some reflect from enterprise

by XX results, with than have EBITDA progress remain cash basis, year-to-date more cash flow and a demonstrating On points, Star. against free our while further We by adjusted EBITDA XXXX year-to-date the million improved flow these from comparable basis adjusted North $XX particularly margins expanded figure. pleased

some to beginning with on segment Merchant Moving highlights, Services.

wins new ISV, vendors, partners. via and continues of well processing direct second grew both revenue accompanying Merchant our expanding continued to EBITDA to benefit XX points customer continued segment strong as grew offered margins X.X%, trajectory. resources the quarter the Merchant and from improve, adjusted network our solutions volume from while by quarter, XXXX, basis omnichannel both independent or dollars integrated core and selling our software XX% The For expanding as second of revenue and business the FI across

Shifting segment, of saw consistent overall results payments revenue, within BXB year-over-year the with trajectory. the to declines BXB we X% quarter first for

BXB our continue over the half expect growth We rate material year. to of improvement the second in

on shared thereby we've previous or dependency reducing calls, our as Service, on nonrecurring we're a recurring Software SaaS, As transitioning model our revenue. business this toward onetime a

bit XX also experienced has point base impact We basis but increase been The revenue softness in volume across a margins. of a the less space. lockbox year-to-date

ahead. wins in offsetting to of expected the X growing new over also pipeline secular a of products, past course the million these rebound in for recurring combination Over revenue revenue, our gives will half, trajectory all quarters, annualized second $XX major the the new we've more as declines. The which than of contribute expected signed us lockbox confidence live go X clients,

results the to quarter. deliver Moving which to Data now Solutions, during second strong continued

You will multi-quarter the and business of on marketing through has growth this based customer spend. recall, lens. see timing of view quarter-to-quarter a the Data's lumpiness We plan remains best trajectory

demand X.X% and of or in DDM, data-driven marketing, non-FI expectations. the growth period. through quarter, and months first full from second to customers. for the single-digit for decline deliver this comp was Year-to-date, year, revenue remain tough business growth strong in core line with a mid- is the resulting revenue helping X During anticipated expansion, data a specific this we very This the to segment our high lapped highlighting XX% year growth, will margin FI strong confident longer-term deliver for XXXX,

prior we impacted macro through we by offerings, during $XXX on X% Overall, well the decline softness portfolio at margins Promo business. for business bit trends. more promo year the XX%, from the print period. to revenues pricing while market with cash softness forecasted held short-cycle of basis, a second investments. check outlook in higher-margin flow X-month a legacy to in To very trajectory reflecting to with quarter but longer-term expected, check focus of line Print manage Shifting responsible continue actions and year-to-date at maximize portfolio. operating line clear, with revenue the roughly performed segment. to million continue in experienced legacy Print our This million decline EBITDA finally adjusted $XXX X.X% a our discretionary are to strong efficiencies, was most occurring On which more remained printed combined revenue a the than be our the as

and overall results transformation continuing earnings second progress. and expansion, Star To quarter particularly demonstrate summarize, our our North our

much and While execute building creates We and allocation half of payments capital greater even confidence our against future and our our as second to progress. our goals data our from remains in progress targets, half remain a multiyear first priorities, fully work sustained on pace consistent company. diligently bright focused

second service acknowledge and before whose Deluxers, toward year-to-date and quarter I offerings realization I'll delivery of this results. to that, all dedication customers of passing Finally, a Chip. enabler and to the want thank over provident to turn the our innovative to our to Chip, fellow continuing my remains With critical it our

everyone. and you, evening, good Thank Barry,

generation Barry EBITDA our period. particularly adjusted our flow cash were we year-over-year in and his EPS year-to-date growth progress, quarter opening, free continued during our As the second comparable noted and with pleased

As today our cash period highlights XXXX on sheet results, additional the full year to progress balance consolidated our moving and with and our color segment guidance. of the customary, a around I'll flow for before begin bit

on the our year basis, comparable basis. quarter, revenue we total on X% of the million, a For inclusive while declining of of adjusted impact exits reported down posted a year-over-year X.X% $XXX prior

diluted and versus EBITDA the both XX Comparable year. Barry adjusted noted. versus $X.XX, basis XXXX, in $X.XX quarter adjusted adjusted by XXXX the expense. margins at was of half including lower of SG&A GAAP $X.XX improving reported transitioning or now million our of the the $XX.X the share expect have from $XX.X We divestiture quarter business. the second XXXX. in second lapped or restructuring-related as QX second of increase driven income noted. XX%, business $XXX.X results, in operating be improved driven operating Comparable per finish last for back million the payroll year points drivers North were to the quarter previously period, comparable X.X% by EBITDA EPS came was per exits share up million, primarily We and and This in of of as the improving net American web impacts from $X.XX fully of hosting improving the income we lower

growth driven diversified details, Merchant Now segment by with turning XX% business merchant cost The Services second well performance. our outlook. Merchant adds to the remains Segment growth Merchant $XX.X XX.X% expanding quarter grew reflecting long-term high continued year-to-date low new EBITDA from continued the million verticals. to XX% mid- prior revenue positioned across spanning a improving to leverage and finish our at category business. operating mainly EBITDA and the year-over-year at The to XX benefit revenue and with platform. deliver adjusted single-digit strong resulting of set beginning revenue finished to of adjusted $XX.X $X.X to points year, Merchant operating strong business presence their million, million, expanding basis X.X% the margins or versus by

noted, spending of the levels. large have year-to-date our some half back half second are mid-market previously growth rates in lapping result of likely QX easing level we discussed, partner of the versus and conversion As FI potential to moderation trends macro

payments. BXB to Moving

the segment X% finished BXB slightly from while For the roughly XXXX. with of to balance year the BXB resulting at during revenues X% overall down in million expectations an continue from improving prior quarter, offerings deplaning first lap lockbox for the from XXXX, remittance nonrecurring sales revenues Overall, below year-over-year. quarter, million, decline volumes second the $XX.X quarter, sequentially but during $XX.X were

at X.X% from line the some with declined XX.X%. to headwinds finish adjusted year-over-year $XX flat the remained XXXX at of million, segment, while margins within revenue In EBITDA

we noted, As toward during Barry as included confident to results, EBITDA we remain reflected this on single-digit guidance. mid-XX% year full which increasingly XXXX decline that XX.X% SaaS-based our revenue EBITDA operational this year-to-date product improve to is margins rate range the on set Based these updated low adjusted now revenue the for time. XX sustained offerings. our half low operating basis focus anticipate transition points improvement year-to-date of efficiencies of an over margin an segment, the in adjusted segment should of versus overall first of We

at strong basis full activity campaign for strong growth year versus the DDM same adjusted at efficiency performance revenue Adjusted This quarter. high very reflecting challenging segment for strong XX.X% across year Data Moving our inclusive this and comp the very $XX.X of the single-digit points during modest which expense continued Solutions. XXXX expanded the a growth reflecting quarters on expectations FI EBITDA the lapping reinforces of to EBITDA XXXX. million its year-over-year of operating the of deposit-seeking revenues prior a prior XXX The the to continued on core third XXXX, finished to amongst while of year mix period finished decline Data segment during X.X% longer-term continued quarter, second activity XX.X% both performance, improved an of of very both million, versus strong the mid- business. horizon. we campaign second partners, $XX.X margins QX year prior discussed and

strong We maintained to in low mid-XX% rate confidence this adjusted long-term for also guidance the EBITDA segment.

during with figure. expectations our remaining low revenue Print given comparable was to revenues Legacy second second Legacy for goods during secular margins first segment we of in expense these in balance with period, receivable prior with balance accounts and points to our year anticipate focused nonrecurring quarter margins adjusted basis was first declined the promo Check consistent quarter the adjustments remain our this recur of half decline across of our approximately remain not of Print target, the we would rate. reserve versus of of check the in the now our last largely product We finished balance over previously print expectations operating the the the $XX.X X.X% revenues impacted at points year. decline resulting the deployment longer-term historical our inclusive quarter the and for rate. of the by especially discipline inputs declines year EBITDA of with the line previously XXX $XXX.X the businesses. the to on noted. margins period million Consistent quarter segment's very prior line basis communicated quarter decline of shift but level during adjustments, XX.X% revenues Print declining to segment, upgrade Adjusted QX within specific XXX outlook overall ERP sold adjustments from and efficiency the across low expect cost Certain some basis. see XXXX, low XXs mid the with particular. longer-term with the on the remaining EBITDA continue year-over-year Turning a of segment, and the revenue to at items of below inclusive to for driving This reserve X.X% revenue single-digit full during in XXs, XXXX. million,

of net XXXX the commitment to year-end capital improved at QX cash from level top billion end billion $X.XX with with Turning our nearly the and now priority. XXXX $X.XX a and flow. allocation quarter level debt materially the $X.XX our of to flat mark balance of as remaining of billion, consistent second a ongoing to sheet reduction our ended debt We while

Our X.Xx at to net of flat X.Xx on the from slightly remains basis, ratio sequential EBITDA the debt the reported while at adjusted ratio end a year-end. increased quarter,

capital first from spend results, our results XXXX, with sequentially half negative reflects less at by for which our our recent cash in continued leverage, half improving to towards with period, operating consistent of our long-term heavily expenditures, by restructuring our ratios driven year-to-date Xx lower generation our prior clear $XX.X pleased As Free flow, remains reported lower flow leverage target cash improved through very we've of weigh typically the improvements the improving versus year. during $XX.X the the the cash and the and path as second expenditures remain operating capital and by to continue tends priorities. balance results, flow capital finished activities more operating approximately year. noted, the million ability defined provided million deleveraging We quarters allocation of overall strategic cash reported

update utilized structure, against securitization quarterly our remind a we of of rate interest the towards amortization. overall our shared additional into last brief that a accounts the As prepayments XXXX capacity drawdown an advantage as listeners, capital entered receivable quarter, regarding and I'll we balance required facility

in quarter terminates $XX agreement first the on the beyond XX-month This current XXXX has XXXX of slide. to shifted and of maturities extended million horizon shown the

it of actively to capital environment mentioned, well as our regarding to rate interest Barry longer-term relates both the potential to monitor impacts we stack. exploration As debt as our trajectory continue options operating broader as

are revolving bonds just of maturities, carrying credit quarters existing terminal X while current and from our XXXX here, over mature status X% facilities XXXX. June shown our As calendar in

available remain updates capital and financing structure We to our additional developments going or provide certainly with forward. liquidity any continue comfortable on levels, we'll

Board of Before of dividend on on $X.XX with a turning guidance, on outstanding shares. consistent record XXXX, as be shareholders all payable to our X, September quarterly to dividend XXXX. approved per prior closing market will all The XX, quarters, share a August regular

previously, noted progress North our initiatives. Star across make we As to continue key

Forecasted the our work fully ranges. of within impacts Barry's are XXXX realization reflected implemented comments stream in guidance noted

the EPS with year, low our As second uncertainty versus of XXXX. of $X.XX million of remaining the [indiscernible] over X% for end Revenue around of the signaled results to Adjusted year-to-date present introductory months. $X.XX economic of and the XX% adjusted of reflecting of during towards line free X% the to $XXX revenue outlook reflecting million. decline a EBITDA comments, reflecting $XXX $XX some of comparable of his adjusted combined growth all sight and $X.XX to XX of our that, original past million comparable X% guidance and cash impact the comparable to the are on between X% figures growth current exits leading With keeping X% mind flow slide, adjustment we billion year revenue billion, range. the $X.XX, million, to guidance, are approximate to reflect figures expected our growth. Adjusted positive adjusted full in the are making to shown $XXX to business

your $XXX guidance amortization Finally, assumes which is rate of and depreciation of our interest modeling, million; $XXX million, macroeconomic to among average assist of adjusted approximately and This tax acquisition inflation $XX impact issues, to and including million further amortization of with the and subject XX%; following: million expense an to, million, shares of million. supply approximately rates, guidance expenditures prevailing the XX count interest of divestitures. outstanding remains as share labor capital of $XXX noted things, other $XXX previously, conditions

remain with our half during In second year-to-date results. summary, we execution the and pleased continued overall our quarter first

adjusted deliverables core the remain Our of ability this testament of We quarter questions. priorities. execution the updates Star within to be during back we are our against growth to EPS diligent clear top on allocation and look to performance Operator, ready half both confident focus now to continue flow to and North sustaining line demonstrate cash particularly continued despite pressure free areas reflected long-term and EBITDA, will year-over-year progresses. anticipated capital as our that forward our focus additional take ongoing year providing are

Instructions] [Operator

is Cowen. Lance Lancet TD with Your first of line question Vitanza from the

bit to some that's seeing could in Barry, it government mentioned I pressure you Chip you that the little But the be a it are you which at. what little hopefully, question you. looking that making back for guidance. pressure most will pressure? a you're more think then for in some data about maybe And to segments for build bit is were more series me that talk regarding I more macro in exposed And had half? you surveys, exactly a Barry, regarding get But one time

[ that Lance, to a bit were Sure. little hard hear. ], they word this section we've gotten

hear review the card both of comments other thought So and said reread well are happy I of on saying and the proprietary rate brands, interest everyone's I portfolio. deeper prepared multiple as discussed discretionary just small didn't. we'd and sentiment I what impact our of trends economic well would perhaps as the that benefit, the areas business for then it, I'm forecast go some monitors there some environment. as and any providers data, consumer But previously, was trends We to like. as we've people Federal including take I could section many as the as sources own Reserve from spending our and data. Deluxe These question

stable reflected there performance While some a continued signs pressure of the on average our economic environment, year-to-date are generally consumer.

market sales. segment, spend same-store flattening we've verticals, seen our nondiscretionary demand spend also with products and discretionary compared for trends some Merchant seen certain softened. In has some elevated promo towards discretionary short-cycle Similarly, we've in of

points execution original of generation. solidly line the of remain balance performance to leading may these and lingering believe of As uncertainty revenue economic to a of In range with North our year the guidance a to macro end remains guidance, our trend we date, result outlook forecasts, data low our we our adjustment today. the reaffirmed our cash our with confident within profitability Star flow inclusive that full

Great.

yes, the be called hear going enterprise? imply deeper, I Or I that of you prepared to -- think it that throughout wondering, does we is remarks. broad-based Is in to the expect I'm did more so mean bulk should that. in the that -- the where pressure? to And little go Merchant that, a just really out that's But bit

to see little under the bit it QX Well, in of bit products Merchants. were be our that pressure and that Lance, we a we saw impacted that average you performance think stress. do I of consumer And short-cycle there think seems is in our promo -- a it

ways can balance discretionary You of some between very spending, is portfolio. in for favor Merchant our in good nondiscretionary of level still is see the that nondiscretionary the which versus

pay to have get fixed. taxes. of We not People pay to fees their to a their have They have They throughout that cars amount there community. business discretionary. is their have large our

the back which and modest just end business we feel at to we of make part a seeing it other the Lance, -- prudent, bit we signaling may there to But adjustment half. what confident we're the profitability, low we is where a thought are to headwind same-store be that we the sales, said, we're strong, original that So guidance, going just but see. pressure we bit be be think our our revenue reflecting think but the consumer that in was our of pieces that like we flattening there of we is prudent did of some about of out just

Great. if Merchant, that, just How And Is take versus revenue the from new then the to is to it much possible contact of time at growth about it from me cross-selling as the seeing what's X%. of actually follow-up maybe up Merchant a lead cross-selling just can that that does generate new you increased sort you strength existing the merchant. on revenues could a remind you're talk came how volumes merchants on long in Merchant to merchants. time Services? from then And initial

couple there. a questions great There's of in

But to So our that that revenue you business let of performance good large, growth of recall customers. with from a of the and start won seeing large existing the me actually that today in our continues year, last above that quarter went perform we there. see you're expectation. portfolio live piece fourth a We

could depending system. question complexity of their So is the how your days broad take in But that from a win even is that about couple and our here business the of that to can if individual the merchant, win. ability feel individual about And base merchant solid on get marketplace. significant the be live is we merchants quickly longer any you're we of merchants win on to an performance a piece we growth that and boarded seeing

be portfolio big our referral quarter to a that on and ultimately a cycle, the pretty bank if reboarding can volume which to deal a us. year, a executing one you went of like the about That long you're If of live volume last think moving The the move relationship you a fourth imagine, merchants entire was their flip would amount that of switch platform. of as large with in

really cross-selling, leased help you're the of ability faster as of cetera, walls you that's we all about leads theses businesses, -- across Merchant had one our really business years thing the we that with nature now trusted out. the well acquisition strength question ago, X could fundamental to last and grow X are of from our more the about than the inside with financial was of portfolio played offer because as our et making brand, the institutions our

Lance, can the X pleased board fast of perspective, merchants. merchant we of certain certain merchants if for cases very And gotten in if course, progress we're -- as as of with hours types have we Just business. that obviously, the meets criteria. But for that's,

the think and we're of with obviously portfolio the is a proving and we thesis standout I out the in acquisition, what it's fundamental think, doing American First for well. quite

line question is Kartik Research. Mehta Your next Northcoast of with from the

start noticing some the Merchant point I'm the guess on you just business. Maybe maybe certain look a at in time. weakness that the in as I is wondering, business. you when impacting consumer throughout merchant the quarter, and the slowing start

is percentage and towards we just been where But of we've pattern the a the not Kartik, spending seen the discretionary that what before. seen about concerned some bigger just in And started categories consumer. nondiscretionary unusual has We're particularly versus it for patterns generally stress the pie caution. today we're flagging that, noting that some that does just as quarter. a we're we've And represent second it. average seeing

checks. the In

Sorry, Chip, I apologize.

towards to even out is of for line high still see of all we're single-digit to from just point would I kind that continue the what this guiding have would year. Barry growth other mid- week I to pressures, you mid- those is with late started read business been in quarter and to indicated, despite the it's which things we the as part mean, this

we're volumes been So business. the still we've feel the trajectory course, year-to-date of of the trends on, good about the there seeing and long-term

are However long people it of a a our that and we as that would to to lot view view however strategy. long-lasting with, going bit a don't against long last. as We softening going business of dealing it this change started, pressure be a it's our

still business. the long-term of growth trajectory we about good feel Merchant So the

Fair.

I'm And you your you've as outlook business share market kind to over you gain wondering, Just if name paid. obviously, look what that'll Checks, in the for be months, Print But could is the if ability of maybe market XX had opportunities next the on share. success winning business? maybe you that can't

had than It's back hard like year. half would But tell you continue the win far window narrow that of gains in to we're we lose any the situation, in in can share like to part periods predict competitive that our recall, I market really space. more Kartik, pleased market that and even the we're we revenue company there. of to chances grow a of share we've you'll And bid we continuing where growing

like still a great we prospects cash flowing solid So to business and continue. feel that's

I from the on which ability things support Kartik, we, with guess we're of the of map to don't just and commercial do our a to Check our if along through the of market these the I FIs comes things a given we across But those talk we the them course, perspective takeaways, FIs some opportunity get predict chance dilutive. we road way average Deluxe have them, great get today, our when play way. us think going about partner can't one And I'd very is to the with segment those share add, and in on reach it lines, relationship gives typical have X,XXX and

just X And last question.

result business. it as getting seeing as any on having to pressure this a [ business. aggressive pricing more the same competitors of that bit an issue promo little they're of the because is a bit economy the an you Obviously, a point. or little seeing not been North pricing impact On ] Are trend seems like

It's Chip again.

is you, with address don't print this radical What on going of would theses cash directly journey as we've to North the of I gotten margin though, margin flow. focused part question. a one the remind the hard our I we've of specifically expansion, and it's believe improve seen Star think I to improvement entity, and change. combined pricing

take, to it to do in space. we're gone price bit that about deals mentioned willing play we've promote margins So the think already willing try before. to the take to and put forward a we We've we're the

also short-cycle being deal take. us with there bit in of type activity, a So I yes, the want can think more of there's little to promo we you discerning terms think a of there's it, but softening the

seeing so It's hard we've of focus our know Kartik. just shifted that, of fundamentally change. little bit a because bit And we pricing little because are to a there,

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

want to we maybe Chip the you expected, little Charlie. before. clearly back especially half a on about say Can what on just how of if strong out the than year Data, the provide should performed color more think at the results beyond you look QX. better It's I laid we bit had had given

Charlie. that, acknowledging Thanks Yes. for

right. You're

quarter, say, most softer to think again the another the That another now against average I recent clearly you data right continue the As think that quarters it because continues right trend. we're would we record if [indiscernible] comp. I coming quarter show we time that recommended I the and given to the of call, and the last lumpiness to averaging get trend and update X timing you just indicated imply campaigns. will the of business at up on perspective the

roll a recall, ago may a very fantastic up forward, on and QX. you new followed to solid ] things rolling QX it had then growth. But a these with You basis, again, continues if [ greater Data go a year

you of my X-quarter I we year be direction look the most And what quarter average to though the guide good to to second from don't think the at even third. reported. the third to a that's expect for we just quarters, So indicator to last recent would quarter through

new at And that too. Barry, there. that, customers Maybe Great. onboarding some some looking you're That's color that helpful. lockbox, mentioned behind more then you

Yes.

here. We the footprint we way of service we continue payments. have to win quality because those and process of our it's the And market share

of we go that that have live confidence across those And to I industry. help the why of of long across robust. continue think the money year. -- to that to all business business the banks in They over represent up that back to the just share what the way we'll the sort stay center the term, that's the pleased half is queue are that part get about wins really and we're banks, they're

implementing around payables. and digital in our BXB selling As receivables new we're receivables and and launching building and and payables, products digital

talking Charlie, add, about. an area not enough And we're think I is to lockbox

had a also raise coincided with You operational and through [indiscernible] changes workers, just on. ago, It the there. we things years some went and for to few we may work rapid had hourly rates labor recall, some we

this few lot we've where it's gains, we're have about transactions they're time profitability, sites. over improve think we there, that's I it's included recall for market to are you [ system XXX point we the the very operations, years, going in SaaS-based our to well. very work talking in met we're migrate now because that so the and modern the And an super our becomes a that. it's new improve in on last solutions. opportunity have in share there, done area And may take moment to the new capitalizing all receivables and to And stable sites, also the of investments colliding getting operations ] gateway just where these a us consolidating lockbox And modern critical

us team we've is performing strategy few the together years have over coming really the the put great is made So investments and in great. position. a last The

really so I market to a go is our Check of a And can have great partners -- to to cross-sell progress share. all to trying really really we we're make we're really and in of that the area. there. hold relationships take take conversation, as where And that continue this said good place going And leverage take some

revenue can it do a find think ways you for is then on more -- to And revenue? expand Excellent. [indiscernible] purely Is margins? [indiscernible] there? additional do the Or it you margins to second, that improve Data

there. And have we do think we progress made I that. believe

on the As cetera, distribution of we throughout efficiencies payments, how the our operating et receive organization. has footprint works have said, -- and we Chip

area margin businesses that, market have over important we we And So BXB. has strategically as believe us for is share. around message do where the it's the expansion, time for other win build that we opportunity how future about given an then already Chip

[Operator Instructions]

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

quite we sort bit. of -- a to covered wanted I

questions X that of of at. help So greater greater impact I looking that guys putting a there low X they not guide. point on weight you maybe than if or parts about wondering to my than how a others? the you of you be? around weight, commentary to we forces are or was I lot Or the of sort surprising things to lot maybe have should think the wanted finer -- and led circle a thought the already more those maybe around been a the little revenue the to Was portion considerations bigger answered, of would any appreciate back I that pointing we're a but

Marc, wasn't any I thing. X it think specific

what for we're think the softness consumer of I stress. under the bit little a communicating a in demand consumer of there's is that's that bit

bit our We're just just us are there. that and there's We we're will of range. in a at to not And to guide point major you be stress. end the sharing trying signaling that And signaling this time. prudent softness lower with of

and that up you are of into for potential remind were shaking That's how your on your I interest around where in And us thoughts I then we think the -- you remarks, cuts of could expense plays interest wondering fair. track, there for just suppose. the thoughts Okay. year. thoughts were around the a was different what [indiscernible]. Can I sort if prepared maybe and

question, Yes. the We Marc. -- thanks for

will we've rate. in of XX% We the our last cuts that any aren't And forecast. remind interest you including fixed our I throughout years, X

going we'd the the the market points, while welcome are that material. come what be it rates a could [indiscernible] we it. consumer down any So the and by unless have, with wouldn't expect to not welcome economy, for few would it's cut whole to we help Obviously,

half basis we're cost of save month, interest and It's the in year. XX XX% fixed not that's help this an cut as it's at a $XXX,XXX material, meaningful, point example, of not next because maybe moment. So would us the back

think, we long-term hopeful rates our come as of exposure. and we're terms around setting we debt I do to will and structure that down, interest financing obviously, long-term big the be rate of variable a about part in fixed continue will what think policy

over At no for presenters to today's now questions. this there are further I closing time, any will hand remarks. call

Thanks, Tamika.

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joining. Thank call. you today's for concludes This

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