NYSE$DLX

Deluxe Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Deluxe's first quarter of 2023 saw a slight decrease in reported revenue, but an increase in comparable adjusted revenue and adjusted EBITDA.

Deluxe reported a decrease in revenue by 1.9%, but comparable adjusted revenue increased by 0.5%. Net income decreased, while adjusted EBITDA increased slightly. The company affirms its full-year 2023 guidance.

  • Revenue decreased by 1.9% due to divestitures, but comparable adjusted revenue increased by 0.5%.
  • GAAP diluted EPS was $0.06, and adjusted diluted EPS was $0.80.
  • Net income decreased to $2.8 million from $9.7 million in the prior year.
  • Adjusted EBITDA increased by 0.8%, and comparable adjusted EBITDA increased by 2.1%.

Headline financials

Total Revenue

$545M

Previous: $556M-1.9%
EPS (adj)

$0.80

Previous: $1.05-23.8%
Adjusted EBITDA Margin

18.4%

Previous: 17.9%+2.8%
Free Cash Flow

$2.75M

Previous: $9.64M-71.5%
Net Income

$2.75M

Previous: $9.64M-71.5%
Operating Income

$34.1M

Previous: $30.9M+10.5%
Gross Profit

$295M

Previous: $307M-3.9%
Cash & Equivalents

$24.6M

Previous: $44.1M-44.1%
Total Assets

$2.94B

Previous: $2.95B-0.5%
Stock-Based Comp

$5.87M

Previous: $8.14M-28.0%

Revenue & EPS history

Deluxe · Revenue · Quarterly

$545M

Q1 2023-1.9%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Deluxe · $58.6M total across 1 segment · Q1 2023

  • Data Solutions
    $58.6M

Forward guidance

The Company continues to expect the following for full-year 2023, inclusive of expected divestitures, and all figures are approximate:

Tailwinds

  • Revenue of $2.145 to $2.210 billion
  • Adjusted EBITDA of $390 to $405 million
  • Adjusted EPS of $2.90 to $3.25
  • Free cash flow of $80 to $100 million

Headwinds

  • Guidance is subject to the closure of the web hosting and logo divestiture in May 2023.
  • Guidance is subject to prevailing macroeconomic conditions.
  • Guidance is subject to labor supply issues.
  • Guidance is subject to inflation.
  • Guidance is subject to the impact of other divestitures.

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 2023

Historical avgQ1 2023

+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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