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Sep 30, 2020
Deluxe Q3 2020 Earnings Report
Delivered improved sequential third quarter financial results and accelerated historic transformation
Key Takeaways
Deluxe reported better than expected results for the third quarter, with improved revenue, net income, and adjusted EBITDA margins. The company also secured two new deals and announced plans to lower future operating expenses.
Delivered improved sequential third quarter financial results
Sales-driven success and historic transformation accelerate
Confidence in financial strength as liquidity continues to build
Payments segment delivered strong revenue growth of 15.6%
Forward Guidance
The Company does expect fourth quarter 2020 year-over-year revenue performance on a percentage basis to be softer than third quarter 2020 due to expected COVID-related delays in customer implementations of new wins and data campaigns. This will be most evident in Payments, where the Company expects a temporary slowing of double-digit growth to low/mid-single digit growth. The Company is confident in Payments’ growth prospects and expects overall margins to remain in the long-term target range.
Positive Outlook
- Confident in Payments’ growth prospects
- Expects overall margins to remain in the long-term target range
Challenges Ahead
- Fourth quarter 2020 year-over-year revenue performance on a percentage basis to be softer than third quarter 2020
- Expected COVID-related delays in customer implementations of new wins and data campaigns
- Expects a temporary slowing of double-digit growth to low/mid-single digit growth in Payments
Historical Earnings Impact
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Avg. Return Before/After Earnings
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