Loading...
•
Dec 31, 2020
Deluxe Q4 2020 Earnings Report
Delivered solid financial results and accelerated historic transformation despite COVID challenges.
Key Takeaways
Deluxe reported a decrease in revenue compared to the same quarter last year, but the Payments segment showed growth. Net income was impacted by COVID-19 and transformation costs, while adjusted EBITDA margin remained strong. The company is establishing guidance for full year 2021 revenue growth.
Revenue was $67.6 million lower than last year, impacted by COVID-19 across Promotional Solutions, Cloud Solutions, and Checks segments.
Revenue grew 3% from the third quarter, reflecting new business and some seasonality in Promotional Solutions.
The Payments segment delivered revenue growth of 3% over the same period last year.
Adjusted EBITDA margin remained strong at 20.9%, despite the impact of COVID-19.
Forward Guidance
Deluxe is establishing guidance for the full year 2021, expecting revenue to grow in the range of 0% to 2% and adjusted EBITDA margin between 20% to 21%.
Positive Outlook
- Full year 2021 revenue is expected to grow in the range of 0% to 2% primarily due to the combination of sales transformation and related wins and steady macro-economic recovery from COVID-19.
- We expect first quarter financial performance to be a continuation of fourth quarter 2020 results as we begin to lap the onset of the pandemic in March 2020.
- We are positioned for recovery to begin in the second quarter, enabling us to exit the year with revenue growth in mid-single digits.
- Adjusted EBITDA margin for full year 2021 is expected to be in the range between 20% to 21%, at the lower end of the company’s long-term target range.
- We expect our tax rate to continue to be approximately 25%.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...