NYSE$DLX

Deluxe Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Deluxe reported solid results despite COVID-19 impact, with payments revenue growing, but total revenue declining slightly.

Deluxe Corporation reported a slight decrease in revenue compared to the previous year, primarily due to the impact of COVID-19. The company's Payments segment showed strong growth, but this was offset by weakness in other segments. Deluxe is taking steps to preserve financial flexibility and liquidity during this period of uncertainty.

  • Deluxe's 'One Deluxe' strategy and structure delivered solid results, despite COVID-19 impact.
  • Total revenue declined 2.5% from last year, primarily driven by COVID-19.
  • Payments revenue grew 18% over last year.
  • The company ended the first quarter with $310 million in cash and short-term investments.

Headline financials

Total Revenue

$486M

Previous: $499M-2.5%
EPS (adj)

$1.08

Previous: $1.54-29.9%
Free Cash Flow

-$60.1M

Previous: $41.2M-246.0%
Net Income

-$60.1M

Previous: $41.2M-246.0%
Operating Income

-$60.8M

Previous: $63.8M-195.4%
Gross Profit

$284M

Previous: $299M-5.0%
Cash & Equivalents

$310M

Previous: $61.5M+404.1%
Total Assets

$2.04B

Previous: $2.32B-12.0%
Stock-Based Comp

$3.62M

Previous: $3.76M-3.8%

Revenue & EPS history

Deluxe · Revenue · Quarterly

$486M

Q1 2020-2.5%vs Q1 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Deluxe · $64M total across 1 segment · Q3 2023

  • Data Solutions
    $64M

Forward guidance

Due to the significant uncertainties surrounding the current business environment, the Company previously announced that it was suspending its 2020 outlook, and it is not providing second quarter or full year financial guidance at this time.

Tailwinds

  • Payments segment is expected to see year-over-year revenue growth, driven by new client wins and strong demand for its services.
  • Management believes Cloud Solutions business will recover slightly as the year progresses.
  • Management currently expects the Company to remain cash flow positive.
  • The company continues to take actions to manage expenses in line with revenue trends.
  • Some stabilization exiting April entering May.

Headwinds

  • Revenue began to soften in March, and total Company revenue in April declined 28%.
  • Cloud Solutions is experiencing revenue declines in data-driven marketing.
  • The decline of web hosting revenue will largely depend on the resilience of small businesses.
  • Promotional Solutions is seeing the largest revenue impact of all segments and will be significantly impacted by the resilience of small businesses in the current economy.
  • Checks is expected to decline in line with the economy in the near-term due to delayed business and consumer spending throughout the year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.3%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+0.3%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+18.5%

Q3 2024

Best reaction

-12.8%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%-3.9%-12.0%
Q4 2025+13.3%+14.5%+16.1%
Q3 2025+14.3%+13.4%+14.8%
Q1 2025+1.0%+4.3%-2.3%
Q4 2024-11.3%-17.8%-27.5%
Q3 2024+18.5%+26.4%+21.9%
Q2 2024-9.0%-18.7%-14.3%
Q1 2024+9.2%+11.2%+15.1%
Q4 2023+10.0%+10.2%+2.6%
Q3 2023+14.5%+12.8%+16.2%
Q2 2023+10.5%+15.4%+10.8%
Q1 2023+1.6%+3.4%+17.7%
Q4 2022+0.9%+0.2%-9.2%
Q3 2022+8.1%+10.7%+7.8%
Q2 2022-7.1%-10.4%-28.3%
Q1 2022-7.1%-12.2%-17.1%
Q4 2021+3.1%+1.5%+6.3%
Q3 2021-1.6%-2.5%-11.6%
Q2 2021-2.6%-2.4%-7.9%
Q1 2021-1.1%-4.4%-1.0%
Q4 2020+3.4%+4.2%+10.7%
Q3 2020-2.5%+18.6%+24.4%
Q2 2020+13.7%+13.5%+18.2%
Q1 2020+2.1%-9.6%+17.5%
Q4 2019-12.8%-13.5%-31.4%
Q3 2019+4.5%+8.5%+1.6%
Q2 2019+3.0%+2.4%+3.1%
Q1 2019-4.5%-3.6%-15.0%
Q4 2018+9.1%+9.5%+12.9%
Q3 2018-12.4%-4.5%-3.9%
Q2 2018-9.0%-8.2%-6.8%
Q1 2018-5.5%-7.9%-10.3%
Q4 2017-0.4%-2.2%-4.7%
Q3 2017-4.8%-5.5%-7.0%
Q2 2017+3.4%+3.0%-3.6%
Q1 2017+0.1%+1.4%-5.2%
Q4 2016-2.3%-2.2%+1.4%
Q3 2016-3.3%-3.3%+10.7%
Q2 2016-2.4%-2.3%-0.7%
Q1 2016+0.2%
Q4 2015+9.6%
Q3 2015+1.7%
Q2 2015+0.9%
Q1 2015-3.2%
Q4 2014+5.8%
Q3 2014+3.3%
Q2 2014-2.1%
Q1 2014+0.8%
Q4 2013-5.0%
Q3 2013+2.4%
Q2 2013+2.9%
Q1 2013-1.1%
Q4 2012+7.9%
Q3 2012+5.2%
Q2 2012+5.7%
Q1 2012+7.8%
Q4 2011+1.6%
Q3 2011+0.9%
Q2 2011-3.7%
Q4 2010-3.7%
Q1 2010+1.5%
Q1 2011+1.8%
Q4 2008-5.6%
Q3 2009+6.8%
Q3 2010+6.8%
Q2 2009-3.3%
Q4 2009-3.3%
Q2 2010-3.3%

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