Deluxe Corp (DLX) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Deluxe quarterly earnings conference call. All participants are currently in a listen-only mode, and today's call is being recorded.

女士們先生們，感謝你們的支持，並歡迎參加豪華季度收益電話會議。所有參與者目前都處於只聽模式，並且正在錄製今天的通話。

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.

現在，我想將會議交給主持人、策略與投資者關係副總裁布萊恩安德森 (Brian Anderson)。請繼續。

Thank you, operator, and welcome to the Deluxe second-quarter 2024 earnings call. Joining me on today's call are Barry McCarthy, our President and Chief Executive Officer; and Chip Zint, our Chief Financial Officer. At the end of today's prepared remarks, we will take questions.

謝謝營運商，歡迎參加 Deluxe 2024 年第二季財報電話會議。參加今天電話會議的還有我們的總裁兼執行長 Barry McCarthy；和我們的財務長 Chip Zint。在今天準備好的發言結束後，我們將回答問題。

Before we begin, and as seen on the current slide, I'd like to remind everyone that comments made today regarding management's intentions, projections, financial estimates and expectations about the Company's future strategy or performance are forward-looking in nature as defined in the Private Securities Litigation Reform Act of 1995.

在我們開始之前，正如當前幻燈片所示，我想提醒大家，今天發表的有關管理層的意圖、預測、財務估計以及對公司未來戰略或業績的期望的評論本質上是前瞻性的，如1995年私人證券訴訟改革法案。

Additional information about factors that may cause actual results to differ from projections is set forth in the press release we furnished this afternoon and our Form 10-K for the year ended December 31, 2023 and our other Company SEC filings.

有關可能導致實際結果與預測不同的因素的更多信息，請參見我們今天下午提供的新聞稿、截至 2023 年 12 月 31 日的年度 10-K 表格以及我們其他公司向 SEC 提交的文件。

On the call today, we will discuss non-GAAP financial measures, including comparable adjusted revenue, adjusted and comparable adjusted EBITDA and EBITDA margin, adjusted and comparable adjusted EPS and free cash flow.

在今天的電話會議上，我們將討論非公認會計準則財務指標，包括可比調整後收入、調整後和可比調整後 EBITDA 和 EBITDA 利潤率、調整後和可比調整後每股收益和自由現金流。

In our press release, today's presentation, and our filings with the SEC, you'll find additional disclosures regarding the non-GAAP measures, including reconciliation of these measures to the most comparable measures under US GAAP. Within the materials, we are also providing reconciliations of GAAP EPS to comparable adjusted EPS, which may assist with your modeling.

在我們的新聞稿、今天的簡報以及我們向 SEC 提交的文件中，您會發現有關非 GAAP 衡量標準的其他揭露，包括這些衡量標準與美國 GAAP 下最可比衡量標準的調整。在材料中，我們還提供 GAAP 每股收益與可比較調整後每股收益的調節，這可能有助於您的建模。

And with that, I'll turn it over to Barry.

有了這個，我會把它交給巴里。

Thanks, Brian, and good evening, everyone. I'm pleased to report our second quarter results, reflecting sustained earnings momentum across the enterprise, including continued year-over-year improvement to both comparable adjusted EBITDA dollars and rate, which improved 80 basis points to 19% during the period.

謝謝布萊恩，大家晚上好。我很高興地報告我們第二季度的業績，反映了整個企業持續的盈利勢頭，包括可比調整後 EBITDA 美元和利率的持續同比改善，在此期間提高了 80 個基點，達到 19%。

We also continued to deliver strong operating cash flows, reflecting expected sequential growth versus our first quarter results, and a very robust year-to-date improvement versus the first half of 2023. These results are reflective of our continuing strong execution across core capital allocation priorities and initiatives of our North Star operating plan.

我們也持續提供強勁的營運現金流，反映出與第一季業績相比的預期環比成長，以及與 2023 年上半年相比，年初至今的強勁改善。這些結果反映了我們在核心資本配置優先事項和北極星營運計畫措施方面的持續強勁執行。

These efforts are accelerating the growth of these key profitability metrics and further demonstrate our ability to consistently expand earnings faster than revenue.

這些努力正在加速這些關鍵獲利指標的成長，並進一步證明我們有能力持續以快於營收的速度擴大獲利。

During the quarter, we continued to deliver strong revenue results across both the Data Solutions and Merchant Services segments in particular, reflecting year-to-date growth rates through the first half of 2024 at 13% and 8%, respectively, which I'll cover a bit more in a few moments.

本季度，我們繼續在數據解決方案和商家服務領域實現強勁的收入業績，尤其是到 2024 年上半年，年初至今的成長率分別為 13% 和 8%，我將稍後再介紹一些內容。

Accompanying this growth, we also experienced some ongoing revenue headwinds across the B2B payment segment as well as expected secular declines within the Print portfolio.

伴隨著這種成長，我們也經歷了 B2B 支付領域持續的收入逆風，以及印刷產品組合的預期長期下降。

Based on these trends, and our updated outlook, today, we're pleased to reaffirm our full year guidance ranges for earnings and free cash flow. We're modestly adjusting our revenue range given some lingering macro uncertainty over the balance of the year.

基於這些趨勢以及我們最新的展望，今天，我們很高興重申我們的全年盈利和自由現金流指導範圍。鑑於今年餘下的宏觀不確定性揮之不去，我們正在適度調整我們的收入範圍。

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

重要的是，我們的每個營運部門繼續保持年初至今的強勁調整後 EBITDA 利潤率，符合我們企業整體業績和北極星目標中所體現的營運槓桿。

Now prior to reviewing our second quarter enterprise and segment highlights in a bit more detail, I'd like to provide a couple of additional comments on the broader macro environment and on North Star progress. As we discussed previously, Deluxe monitors trends around both small business sentiment and consumer discretionary spending as well as the interest rate environment.

現在，在更詳細地回顧我們第二季的企業和細分市場亮點之前，我想就更廣泛的宏觀環境和北極星進展提供一些額外的評論。正如我們之前討論的，Deluxe 監控小型企業信心和消費者可自由支配支出以及利率環境的趨勢。

We review many sources of data, including from the card brands, Federal Reserve and other economic forecast providers as well as our own proprietary data. These trends impact multiple areas of our portfolio. While our year-to-date performance reflected a generally stable economic environment, there remains some signs of continued pressure on the average consumer.

我們審查了許多數據來源，包括來自信用卡品牌、聯準會和其他經濟預測提供者的數據以及我們自己的專有數據。這些趨勢影響我們投資組合的多個領域。雖然我們今年迄今的表現反映了整體穩定的經濟環境，但仍有一些跡象顯示一般消費者仍面臨持續壓力。

In our Merchant segments, we have seen some elevated trends toward non-discretionary spend compared with discretionary spend, and in certain market verticals we have seen flattening of same-store sales. Similarly, demand from some short cycle discretionary promo products has also softened.

在我們的商家細分市場中，與可自由支配支出相比，我們發現非可自由支配支出的趨勢有所上升，並且在某些垂直市場中，我們發現同店銷售額趨於平緩。同樣，一些短週期非必需促銷產品的需求也有所減弱。

As a result of these data points and lingering macro uncertainty within the balance of year economic forecasts, we believe our revenue performance may trend to the low end of our original full year guidance range, leading to our adjustments today.

由於這些數據點和年度經濟預測中揮之不去的宏觀不確定性，我們認為我們的收入表現可能會趨向於我們最初的全年指導範圍的低端，導致我們今天進行調整。

In line with our North Star execution to-date, we remain confident that our profitability outlook remains solidly within our reaffirmed guidance range, inclusive of free cash flow generation.

根據我們迄今為止的北極星執行情況，我們仍然有信心我們的獲利前景仍牢牢在我們重申的指導範圍內，包括自由現金流的產生。

Shifting now to North Star progress. The enterprise continues to execute well against both cost optimization and revenue enhancing initiatives spanning the holistic North Star multi-year execution plan. As a reminder, our North Star goal remains to unlock $80 million of incremental adjusted EBITDA and $100 million of annualized incremental free cash flow both by 2026.

現在轉向北極星進度。該企業繼續在整個北極星多年執行計劃中良好地執行成本優化和收入增加計劃。提醒一下，我們的北極星目標仍然是到 2026 年實現 8000 萬美元的增量調整後 EBITDA 和 1 億美元的年化增量自由現金流。

Consistent with my update following the first quarter, we've continued to make meaningful progress across all 12 North Star work streams shown here. Initiatives comprising roughly two-thirds of our goals are moving through the execution phase. Benefit realization will be reflected over both the back half of this year and throughout 2025 as execution progresses.

與我在第一季後的更新一致，我們繼續在此處顯示的所有 12 個北極星工作流程中取得有意義的進展。約占我們目標三分之二的措施正進入執行階段。隨著執行的進展，效益的實現將在今年下半年和 2025 年全年得到體現。

One of the simplest ways to see our North Star progress is via the continued decline in corporate segment expense as a percent of total company revenue. Since we began the program, we've improved that metric by roughly 100 basis points. We're also pleased to advise that our more complex work streams plan to begin later in our process are now fully in flight along with each of the work streams shown toward the top of the chart.

查看北極星進展的最簡單方法之一是公司部門費用占公司總收入的百分比持續下降。自從我們開始該計劃以來，我們已將該指標改進了大約 100 個基點。我們也很高興地告訴您，我們計劃稍後開始的更複雜的工作流程現在已與圖表頂部顯示的每個工作流程一起全面啟動。

One notable Q2 example of execution within the marketing effectiveness work stream was the consolidation of all six brands acquired as part of First American into one unified brand, Deluxe Merchant Services. This will improve our marketing efficiency and performance.

第二季行銷有效性工作流程中一個值得注意的執行範例是將作為第一美國公司一部分收購的所有六個品牌整合為一個統一品牌：Deluxe Merchant Services。這將提高我們的行銷效率和績效。

Additionally, this brand consolidation will further leverage and simplify our One Deluxe go-to-market success in driving cross-sell. Even before the brand consolidation, the One Deluxe model has been helping drive merchant growth as evidenced by the segment's performance, which is materially improved since the acquisition in June of 2021.

此外，這個品牌整合將進一步利用和簡化我們的 One Deluxe 上市成功，推動交叉銷售。即使在品牌整合之前，One Deluxe 模式就一直在幫助推動商家成長，該部門的業績證明了這一點，自 2021 年 6 月收購以來，該業務的業績得到了實質改善。

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

現在提供有關我們第二季業績的一些其他詳細資訊。提醒一下，與我們之前的電話會議一致，今天我的評論將討論本季和年初至今的可比調整後業績，我們認為這最能反映我們持續的業務績效。奇普將審查我們報告的綜合和可比調整結果，以提供更多視角。

For the second quarter, net of business exits, revenue was $535 million, which reflected a decline of 3% year-over-year. As I noted during my introductory comments, this top-line result was just a bit below our overall plan for the first half of the year.

第二季度，扣除業務退出後，營收為 5.35 億美元，年減 3%。正如我在介紹性評論中指出的那樣，這一頂線結果僅略低於我們今年上半年的整體計劃。

The specific period included both expected softness in B2B and the promotional portion of Print in addition to some prior year comparable timing impacts in the data segment. Despite some of these top-line challenges, total adjusted EBITDA dollars increased 1.6% from the second quarter of 2023 to $102 million, continuing to reflect robust operating leverage at the enterprise level, as I noted in my opening comments.

該特定時期包括 B2B 的預期疲軟和印刷品的促銷部分，以及數據領域的一些可比時間影響。儘管存在一些頂線挑戰，調整後的 EBITDA 總額較 2023 年第二季度增長了 1.6%，達到 1.02 億美元，繼續反映了企業層面強勁的營運槓桿，正如我在開場白中指出的那樣。

Adjusted EBITDA margins finished the quarter at 19%, reflecting continuation of the Q1 year-over-year expansion dynamics and growing by 80 basis points versus the prior year. On a year-to-date basis, comparable adjusted EBITDA margins have expanded by 90 basis points, while free cash flow improved by more than $26 million from the year-to-date 2023 figure. We remain particularly pleased with these adjusted EBITDA and cash flow results, further demonstrating our progress against North Star.

本季調整後 EBITDA 利潤率為 19%，反映出第一季同比擴張勢頭的延續，與上年相比增長了 80 個基點。與年初至今相比，調整後的可比較 EBITDA 利潤率擴大了 90 個基點，而自由現金流較 2023 年年初至今增加了超過 2,600 萬美元。我們對這些調整後的 EBITDA 和現金流量結果仍然特別滿意，進一步證明了我們相對於 North Star 所取得的進展。

Moving on to some segment highlights, beginning with Merchant Services. For the second quarter, Merchant segment revenue grew 7.7%, while adjusted EBITDA dollars grew 11% and margins continued to improve, expanding by 60 basis points from the second quarter of 2023, accompanying the continued strong revenue trajectory.

接下來討論一些細分市場的亮點，首先是商業服務。第二季度，商家部門營收成長 7.7%，調整後 EBITDA 美元成長 11%，利潤率持續改善，較 2023 年第二季擴大 60 個基點，同時營收軌跡持續強勁。

The Merchant business continues to benefit from both core processing volume as well as new customer wins across our omni-channel solutions offered both via our direct and independent selling resources and our expanding network of FI and integrated software vendors, or ISV, partners.

商家業務繼續受益於核心處理量以及透過我們的全通路解決方案贏得的新客戶，這些解決方案透過我們的直接和獨立銷售資源以及我們不斷擴大的FI 和整合軟體供應商(ISV) 合作夥伴網路提供。

Shifting to results within the B2B Payments segment, we saw year-over-year declines of 8% for B2B revenue, consistent with the overall first quarter trajectory. We continue to expect material improvement in our B2B growth rate over the second half of the year.

轉向 B2B 支付領域的業績，我們看到 B2B 營收年減 8%，與第一季的整體軌跡一致。我們繼續預計下半年 B2B 成長率將出現實質改善。

As we've shared on our previous calls, we're transitioning this business toward a recurring Software-as-a-Service, or SaaS, model thereby reducing our dependency on one-time non-recurring revenue. We also experienced a bit of base volume softness across the lockbox space. The year-to-date impact has been less revenue but a 60 basis point increase in margins.

正如我們在先前的電話會議中分享的那樣，我們正在將這項業務轉向經常性軟體即服務（SaaS）模式，從而減少我們對一次性非經常性收入的依賴。我們還在密碼箱空間中體驗到了一些基本體積的柔軟度。今年迄今的影響是收入減少，但利潤率增加了 60 個基點。

Over the past three quarters, we've also signed four major new lockbox clients, all of which will go live over the course of the second half, expected to contribute more than $20 million in annualized recurring revenue, offsetting secular declines. The combination of these wins as a growing pipeline for our new products, gives us confidence in the expected revenue trajectory rebound ahead.

在過去的三個季度中，我們還簽署了四個主要的新密碼箱客戶，所有這些客戶都將在下半年上線，預計將貢獻超過 2000 萬美元的年化經常性收入，抵消長期下滑。這些勝利與我們不斷增長的新產品管道相結合，使我們對未來預期收入軌跡反彈充滿信心。

Moving now to Data Solutions, which continued to deliver strong results during the second quarter. You will recall, this business has quarter-to-quarter lumpiness based on the timing of customer plan and marketing spend. We see the best view of Data's growth trajectory remains through a multi-quarter lens.

現在轉向數據解決方案，該解決方案在第二季度繼續交付強勁的業績。您可能還記得，根據客戶計劃和行銷支出的時間安排，該業務存在季度與季度的波動性。我們認為資料成長軌跡的最佳視角仍然是透過多季度的視角。

During the second quarter, the core data-driven marketing, or DDM business lapped a very tough revenue comp from 2023, resulting in a 3.2% decline for the specific period. Year-to-date, revenue growth for data was 13% through the first six months of this year, highlighting strong demand for FI and non-FI customers. This growth is helping to deliver strong margin expansion, and we remain confident this segment will deliver full year mid to high-single-digit growth, in line with our anticipated longer-term expectations.

第二季度，核心數據驅動行銷（DDM）業務自 2023 年以來的營收對比非常艱難，導致特定時期下降 3.2%。年初至今，今年前六個月數據收入成長了 13%，凸顯了對金融機構和非金融機構客戶的強勁需求。這種成長有助於實現強勁的利潤率擴張，我們仍然相信該細分市場將實現全年中高個位數成長，符合我們預期的長期預期。

Shifting finally to our Print segment. This business experienced a revenue decline of 4.8% during the second quarter to $309 million while adjusted EBITDA margins held at 30%, in line with our longer-term outlook for the combined Print portfolio.

最後轉向我們的列印部分。該業務第二季的營收下降了 4.8%，至 3.09 億美元，而調整後的 EBITDA 利潤率保持在 30%，這與我們對合併印刷產品組合的長期前景一致。

To be very clear, legacy check performed well with most of the softness occurring in the short-cycle discretionary promo business. On a year-to-date basis, legacy check revenues remained strong at $358 million reflecting a 2% decline from the prior year six-month period.

需要明確的是，遺留檢查表現良好，而大部分疲軟發生在短週期全權促銷業務。今年迄今，遺留支票收入依然強勁，達到 3.58 億美元，較上年六個月期間下降 2%。

Promo revenue softness was a bit more than expected, but roughly in line with our forecasted trajectory as we continue to focus on higher-margin printed offerings, which are more impacted by macro market trends. Overall, we continue to manage the Print portfolio to maximize cash flow through operating efficiencies, pricing actions, and responsible investments.

促銷收入的疲軟程度略高於預期，但大致符合我們的預測軌跡，因為我們持續關注利潤率較高的印刷產品，這些產品更容易受到宏觀市場趨勢的影響。總體而言，我們將繼續管理印刷產品組合，透過營運效率、定價行動和負責任的投資來最大限度地提高現金流。

To summarize, our overall second quarter results and particularly our earnings expansion, demonstrate our continuing transformation and North Star progress. While much work remains to fully execute against our second half goals and targets, our consistent and sustained pace of progress creates even greater confidence in our bright future as a payments and data company. We remain diligently focused on our multi-year capital allocation priorities, building from our first half progress.

總而言之，我們第二季的整體業績，特別是我們的獲利擴張，證明了我們的持續轉型和北極星進展。雖然我們下半年的目標和具體目標仍有許多工作要做，但我們持續不斷的進步步伐讓我們對我們作為支付和數據公司的光明未來更加充滿信心。在上半年取得進展的基礎上，我們仍然努力專注於多年資本配置優先事項。

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

最後，在將其傳遞給 Chip 之前，我要感謝所有的 Deluxers 同事，他們對我們的客戶和提供創新的公積金服務產品的持續奉獻仍然是我們實現第二季度和全年目標的關鍵推動因素- 日期結果。

With that, I'll turn it over to Chip.

有了這個，我會把它交給奇普。

Thank you, Barry, and good evening, everyone.

謝謝你，巴里，大家晚上好。

As Barry noted in his opening, we were pleased with our second quarter progress, particularly our year-to-date free cash flow generation and our continued year-over-year comparable adjusted EBITDA and EPS growth during the period. As customary, I'll begin today with a bit of additional color around our consolidated highlights for the period before moving on to the segment results, our balance sheet, and cash flow progress and our full year 2024 guidance.

正如巴里在開場白中指出的那樣，我們對第二季度的進展感到滿意，特別是我們年初至今的自由現金流生成以及我們在此期間持續的同比調整後 EBITDA 和每股收益增長。按照慣例，今天我將首先圍繞我們這一時期的綜合亮點進行一些額外的說明，然後再討論分部業績、我們的資產負債表、現金流量進展以及我們的 2024 年全年指導。

For the quarter, on a reported basis, we posted total revenue of $538 million, down 5.9% inclusive of the impact of our prior year exits while declining 3% year-over-year on a comparable adjusted basis. We have now fully lapped the divestiture of our North American webhosting business and expect the impacts of exits to be lower in the back half of the year as we finish transitioning the payroll business.

根據報告，本季我們的總收入為 5.38 億美元，下降了 5.9%，其中包括上一年退出的影響，而以可比調整後的計算，比去年同期下降了 3%。我們現已完全完成北美網路託管業務的剝離，預計隨著我們完成薪資業務的轉型，退出的影響將在今年下半年降低。

We reported GAAP net income of $20.5 million or $0.46 per share for the period, improving from $16.4 million or $0.37 per share in the second quarter of 2023. This increase was driven by improved operating results, including both lower SG&A and restructuring-related expense.

我們公佈的該期間 GAAP 淨利潤為 2,050 萬美元，即每股 0.46 美元，高於 2023 年第二季的 1,640 萬美元，即每股 0.37 美元。這一成長是由經營績效改善所推動的，包括銷售、一般費用和重組相關費用的降低。

Comparable adjusted EBITDA was $101.8 million, up 1.6% versus the second quarter of last year. Comparable adjusted EBITDA margins were 19%, improving 80 basis points versus the second quarter of 2023, as Barry noted.

可比調整後 EBITDA 為 1.018 億美元，比去年第二季成長 1.6%。Barry 指出，調整後的可比 EBITDA 利潤率為 19%，比 2023 年第二季提高了 80 個基點。

Q2 comparable adjusted diluted EPS came in at $0.85, improving from $0.81 in 2023, primarily driven by the operating income drivers previously noted. Now turning to our operating segment details, beginning with the Merchant Services business. The Merchant business grew second quarter revenue by 7.7% year-over-year to $98.5 million, reflecting strong year-to-date performance.

第二季可比調整後攤薄每股收益為 0.85 美元，較 2023 年的 0.81 美元有所改善，這主要是受到前面提到的營業收入驅動因素的推動。現在轉向我們的營運部門詳細信息，從商家服務業務開始。商家業務第二季營收年增 7.7% 至 9,850 萬美元，反映出年初至今的強勁表現。

Segment adjusted EBITDA finished at $19.2 million, improving $1.9 million or 11% versus the prior year, with margins expanding 60 basis points to finish at 19.5% mainly driven by the continued strong growth of revenue and resulting operating cost leverage across the expanding platform.

部門調整後的EBITDA 最終達到1,920 萬美元，比上年提高190 萬美元，即11%，利潤率增長60 個基點，達到19.5%，這主要是由於收入持續強勁增長以及整個不斷擴大的平台帶來的營運成本槓桿所致。

The Merchant business continued to benefit from new merchant adds and their presence spanning a diversified set of category verticals. Merchant remains well-positioned to deliver our mid to high-single-digit revenue growth and low 20% adjusted EBITDA long-term outlook.

商戶業務持續受惠於新商家的增加及其跨越多元化類別垂直領域的影響力。Merchant 仍處於有利地位，能夠實現中高個位數的收入成長和 20% 的低調整 EBITDA 長期前景。

As we have noted, potential second half moderation of macro level spending trends and our Q4 lapping of the large mid-market FI partner conversion previously discussed are likely to result in some back half easing of growth rates versus the year-to-date levels.

正如我們所指出的，下半年宏觀支出趨勢可能放緩，以及我們之前討論過的大型中型市場金融合作夥伴轉換的第四季度可能會導致下半年增長率與年初至今的水平相比有所放緩。

Moving to B2B Payments. For the second quarter, B2B segment revenues finished at $70.2 million, sequentially improving from the first quarter, but down from $76.3 million during 2023. Overall, remittance volumes were slightly below expectations with lockbox revenues declining roughly 4% during the quarter, while the balance of the B2B offerings continue to lap from prior year non-recurring sales for 2023, resulting in an overall 8% decline year-over-year.

轉向 B2B 付款。第二季度，B2B 部門營收為 7,020 萬美元，環比第一季有所改善，但低於 2023 年的 7,630 萬美元。整體而言，匯款量略低於預期，本季密碼箱收入下降約 4%，而 B2B 產品的餘額繼續低於去年的 2023 年非經常性銷售，導致整體年減 8%。

In line with some of the year-over-year revenue headwinds within the segment, adjusted EBITDA declined 7.9% from 2023 to finish at $14 million, while margins remained flat at 19.9%.

與該領域的一些同比收入逆風一致，調整後的 EBITDA 較 2023 年下降 7.9%，最終達到 1,400 萬美元，而利潤率仍持平於 19.9%。

As Barry noted, year-to-date adjusted EBITDA margins of 19.5% reflected an overall 60 basis points improvement versus the first half of 2023, as we sustained our focus on operational efficiencies during the transition of this operating segment toward an increasingly SaaS-based set of product offerings.

正如 Barry 指出的那樣，年初至今調整後 EBITDA 利潤率為 19.5%，與 2023 年上半年相比整體提高了 60 個基點，因為我們在該營運部門向日益基於 SaaS 的轉型過程中持續關注營運效率一套產品。

Based on these year-to-date results, we now anticipate a full year low-single-digit revenue decline rate for this segment, which is included in our updated revenue guidance. We remain confident that adjusted EBITDA margin should improve to the low to mid-20% range over time.

根據今年迄今的結果，我們現在預計該細分市場全年收入將出現低個位數下降率，這已包含在我們更新的收入指導中。我們仍然相信，隨著時間的推移，調整後的 EBITDA 利潤率應會改善至 20% 的中低水準。

Moving on to Data Solutions. This segment continued its strong performance, inclusive of the very challenging prior year revenue comp during the second quarter. Data revenues finished at $57.4 million for the quarter, reflecting a modest year-over-year decline of 3.2% versus the same period of 2023, lapping very strong prior year deposit-seeking campaign activity amongst core FI partners, which we discussed during both the second and third quarters of 2023.

轉向數據解決方案。該部門持續保持強勁表現，包括第二季極具挑戰性的上年收入比較。本季數據營收為 5,740 萬美元，與 2023 年同期相比小幅下降 3.2%，超越了核心金融合作夥伴去年非常強勁的尋求存款活動活動，我們在2023 年第二和第三季。

Adjusted EBITDA finished at $15.8 million, reflecting a very strong 17.9% growth versus Q2 of the prior year while adjusted EBITDA margins expanded 490 basis points to 27.5% on both an improved mix of DDM campaign activity and continued operating expense efficiency across the business.

調整後EBITDA 最終達到1,580 萬美元，與上年第二季度相比增長了17.9%，而調整後EBITDA 利潤率則擴大了490 個基點，達到27.5%，這得益於DDM 活動組合的改善和整個企業持續的營運費用效率。

The continued strong performance of this segment reinforces our mid to high-single-digit longer-term growth expectations for the full year 2024 horizon. We also maintained strong confidence in the long-term low to mid-20% adjusted EBITDA rate guidance for this segment.

該細分市場的持續強勁表現強化了我們對 2024 年全年中高個位數的長期成長預期。我們也對該細分市場 20% 的長期調整後 EBITDA 率指引保持堅定信心。

Turning now to our Print businesses. Print segment's second quarter revenues was $308.8 million, declining 4.8% on a year-over-year basis. This decline was largely in line with our secular decline expectations especially given the deployment of our ERP upgrade during the first half of last year and the resulting shift of some revenues from the first to second quarter comparable figure.

現在轉向我們的印刷業務。印刷部門第二季營收為3.088億美元，較去年同期下降4.8%。這一下降在很大程度上符合我們的長期下降預期，特別是考慮到去年上半年我們部署了 ERP 升級，以及由此導致的一些收入從第一季到第二季可比數字的變化。

Legacy check product revenue declined 3.8% during the quarter with promo revenues driving the balance of the full segment decline rate. Adjusted EBITDA for the quarter finished at $93.9 million remaining at 30.4% of revenue in line with our longer-term low 30s target, but 190 basis points below the prior year rate.

本季傳統支票產品收入下降了 3.8%，促銷收入推動了整個細分市場下降率的平衡。本季調整後 EBITDA 為 9,390 萬美元，佔營收的 30.4%，符合我們 30 多歲的長期目標，但比去年同期低 190 個基點。

Certain specific accounts receivable reserve adjustments during the quarter impacted margins for the period by approximately 140 basis points versus the prior year. Legacy check margins remain consistent with our historical and previously communicated expectations during the period, inclusive of these adjustments, and we would not anticipate this level of reserve adjustments to recur over the balance of 2024.

本季的某些特定應收帳款準備金調整影響了該期間的利潤率，與前一年相比下降了約 140 個基點。傳統支票保證金與我們在此期間的歷史和先前傳達的預期保持一致，包括這些調整，我們預計 2024 年剩餘時間不會出現這種程度的準備金調整。

We remain very focused on operating expense discipline and overall efficiency across cost of goods sold inputs within the Print segment, in particular. Consistent with our longer-term outlook for the balance of 2024, we continue to expect to see low to mid-single-digit revenue declines across the Print segment with adjusted EBITDA margins remaining in the low-30s, inclusive of the non-recurring Q2 items previously noted.

我們仍然非常關注營運費用紀律和印刷部門內銷售成本投入的整體效率。與我們對2024 年餘下時間的長期展望一致，我們繼續預計印刷業務部門的收入將出現低至中個位數的下降，調整後的EBITDA 利潤率仍將保持在30 多歲左右，包括非經常性第二季前面提到的項目。

Turning now to our balance sheet and cash flow. We ended the second quarter with a net debt level of $1.53 billion, remaining nearly flat to our 2023 year-end level of $1.52 billion while materially improved from the $1.63 billion mark at the end of Q2 of 2023 and consistent with our ongoing commitment to debt reduction as a top capital allocation priority.

現在轉向我們的資產負債表和現金流。截至第二季末，我們的淨債務水準為15.3 億美元，與2023 年年底15.2 億美元的水準幾乎持平，同時較2023 年第二季末的16.3 億美元大關大幅改善，這與我們對債務的持續承諾一致將減持作為資本配置的首要任務。

Our net debt to adjusted EBITDA ratio remains 3.7x at the end of the quarter, flat on a sequential basis, while slightly increased from the 3.6x ratio reported at year-end. As we've noted, our long-term strategic target remains approximately 3x leverage, and the second half typically reflects sequentially improving cash flow results, which tends to weigh improvements of our reported leverage ratios more heavily towards the balance of the year.

截至本季末，我們的淨負債與調整後 EBITDA 比率仍為 3.7 倍，環比持平，但較年末報告的 3.6 倍略有上升。正如我們所指出的，我們的長期策略目標仍然是大約3 倍的槓桿率，下半年通常反映出現金流結果的連續改善，這往往會更嚴重地影響我們報告的槓桿率的改善對今年剩餘時間的影響。

Free cash flow defined as cash provided by operating activities less capital expenditures, finished at $17.6 million for the year-to-date period, improving by $26.2 million from the negative results reported through the first half of 2023, driven by continued improved operating results, lower restructuring spend, and lower capital expenditures versus the prior year.

自由現金流定義為經營活動提供的現金減去資本支出，今年迄今為 1,760 萬美元，在經營業績持續改善的推動下，比 2023 年上半年報告的負面業績增加了 2,620 萬美元，與上一年相比，重組支出和資本支出減少。

We remain very pleased with our overall operating cash flow generation during recent quarters and in our ability to continue our deleveraging path consistent with our clear capital allocation priorities.

我們對最近幾季的整體營運現金流產生以及我們根據明確的資本配置優先事項繼續實施去槓桿化路徑的能力感到非常滿意。

As a brief additional update regarding our overall capital structure, I'll remind listeners, as we shared last quarter that we entered into an accounts receivable securitization facility and utilized a drawdown against the interest rate advantage capacity towards prepayments of the balance of our 2024 required quarterly amortization. This 36-month agreement terminates in the first quarter of 2027 and has shifted $80 million of maturities to the extended horizon beyond 2026 shown on the current slide.

作為關於我們整體資本結構的簡短補充更新，我要提醒聽眾，正如我們在上個季度分享的那樣，我們進入了應收帳款證券化工具，並利用利率優勢能力提取了2024 年所需餘額的預付款項。這份為期 36 個月的協議將於 2027 年第一季終止，並將 8,000 萬美元的到期日轉移到目前幻燈片所示的 2026 年之後。

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

正如巴里所提到的，我們繼續積極監控更廣泛的利率環境，因為它關係到對我們經營軌蹟的潛在影響，以及探索有關我們長期債務資本堆疊的選擇。

As shown here, our existing revolving credit and terminal facilities are just over three calendar quarters from current status carrying June of 2026 maturities, while our 8% bonds mature in 2029. We continue to remain comfortable with our available liquidity levels, and we'll certainly provide additional updates on any capital structure or financing developments going forward.

如圖所示，我們現有的循環信貸和終端設施距離目前狀態僅三個多季度，到期日為 2026 年 6 月，而我們的 8% 債券將於 2029 年到期。我們繼續對現有的流動性水準保持滿意，並且我們肯定會提供有關未來任何資本結構或融資發展的更多最新資訊。

Before turning to guidance, consistent with prior quarters, our Board approved a regular quarterly dividend of $0.30 per share on all outstanding shares. The dividend will be payable on September 3, 2024, to all shareholders of record as a market closing on August 19, 2024. As noted previously, we continue to make progress across our key North Star initiatives. Forecasted realization of the implemented work stream impacts noted in Barry's comments are fully reflected within our 2024 guidance ranges.

在轉向指導之前，與前幾季一致，我們的董事會批准了對所有流通股每股 0.30 美元的定期季度股息。該股將於 2024 年 9 月 3 日支付給截至 2024 年 8 月 19 日收盤時記錄在案的所有股東。如前所述，我們繼續在關鍵的北極星計劃上取得進展。巴里評論中提到的已實施工作流程影響的預測實現充分反映在我們的 2024 年指導範圍內。

As signaled during his introductory comments, our year-to-date revenue results combined with remaining uncertainty around some of the economic outlook for the second half of the year, present line of sight towards the low end of our original guidance, leading to the adjustment we are making to the expected revenue range.

正如他在介紹性評論中所指出的那樣，我們今年迄今為止的收入結果加上下半年一些經濟前景仍然存在的不確定性，使我們的視線接近最初指導的低端，從而導致了調整我們正在達到預期的收入範圍。

With that, our full year guidance figures are shown on the current slide, keeping in mind all figures are approximate and reflect the impact of business exits over the past 12 months. Revenue of $2.12 billion to $2.16 billion, reflecting a decline of 1% to positive 1% comparable adjusted growth versus 2023.

因此，我們的全年指導數據顯示在當前幻燈片中，請記住，所有數據均為近似值，反映了過去 12 個月業務退出的影響。營收為 21.2 億美元至 21.6 億美元，與 2023 年相比下降 1%，調整後可比成長為正 1%。

Adjusted EBITDA of $400 million to $420 million, reflecting between 2% and 7% comparable adjusted growth. Adjusted EPS of $3.10 to $3.40, reflecting 3% to 13% comparable adjusted growth and free cash flow of $80 million to $100 million.

調整後 EBITDA 為 4 億至 4.2 億美元，反映了 2% 至 7% 的可比調整後成長。調整後每股收益為 3.10 美元至 3.40 美元，反映出 3% 至 13% 的可比調整後成長率和 8,000 萬美元至 1 億美元的自由現金流。

Finally, to further assist with your modeling, our guidance assumes the following: interest expense of $120 million to $125 million; and adjusted tax rate of 26%; depreciation and amortization of $160 million, of which acquisition amortization is approximately $70 million, an average outstanding share count of 45 million shares and capital expenditures of approximately $100 million. This guidance remains subject to, among other things, prevailing macroeconomic conditions as noted previously, including interest rates, labor supply issues, inflation, and the impact of divestitures.

最後，為了進一步幫助您進行建模，我們的指南假設如下： 利息支出為 1.2 億至 1.25 億美元；調整後稅率為26%；折舊和攤銷為 1.6 億美元，其中收購攤銷約為 7,000 萬美元，平均流通股數為 4,500 萬股，資本支出約為 1 億美元。除其他因素外，該指引仍然受到先前提到的當前宏觀經濟條件的影響，包括利率、勞動力供應問題、通貨膨脹和資產剝離的影響。

In summary, we remain pleased with our continued execution during the second quarter and our overall first half year-to-date results. Our ability to demonstrate sustaining year-over-year growth of adjusted EBITDA, EPS, and particularly free cash flow despite areas of anticipated top-line pressure during the quarter are testament to our continued focus on both North Star execution and our clear long-term capital allocation priorities.

總而言之，我們對第二季的持續執行以及年初至今的整體表現感到滿意。儘管本季預計存在營收壓力，但我們仍能證明調整後 EBITDA、每股收益，尤其是自由現金流的同比持續增長，這證明了我們繼續關注北極星執行力和明確的長期目標資本配置的優先順序。

We remain confident that this diligent focus against core deliverables will continue to be reflected within our ongoing back half performance and look forward to providing additional updates as the year progresses.

我們仍然相信，這種對核心交付成果的孜孜不倦的關注將繼續反映在我們持續的下半年業績中，並期待隨著今年的進展提供更多更新。

Operator, we are now ready to take questions.

接線員，我們現在準備好回答問題。

(Operator Instructions)

（操作員說明）

Lance Vitanza, TD Cowen.

蘭斯·維坦扎，TD·考恩。

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

你好。你們聽得到我說話嗎？我很抱歉。抱歉，我把電話調成靜音了。謝謝你們提出問題，夥伴們。巴里，我有一個關於你面臨的宏觀壓力的問題。希望現在是我向 Chip 尋求更多指導的時候了。但是巴里，我認為你提到了一些調查，也許是你正在查看的一些政府資料系列。但你能多談談你所看到的到底是什麼讓你在後半場承受了更大的壓力嗎？哪些細分市場最容易受到這種壓力？

Sure. Lance, we've gotten word that this section, maybe it was a little bit hard to hear. So just for everyone's benefit, I thought I would reread the section of the prepared comments and then I'm happy to take the question there and go any deeper as we'd like.

當然。蘭斯，我們得知這部分內容可能有點難聽清楚。因此，為了每個人的利益，我想我應該重讀準備好的評論部分，然後我很樂意在那裡提出問題並根據我們的意願進行更深入的探討。

But what I was saying and perhaps some people could hear it, some didn't. I said that as we've discussed previously, Deluxe monitors trends are on both small business sentiment and consumer discretionary spending as well as the interest rate environment. We review many sources of data, including from the card brands, Federal Reserve, and other economic forecast providers as well as our own proprietary data. These trends impact multiple areas of our portfolio. While our year-to-date performance reflected a generally stable economic environment, there are some signs of continued pressure on the average consumer.

但我說的話，也許有些人聽得到，有些人卻聽不到。我說過，正如我們之前討論的那樣，Deluxe 監測趨勢既包括小型企業情緒，也包括消費者可自由支配支出以及利率環境。我們審查了許多數據來源，包括來自信用卡品牌、聯準會和其他經濟預測提供者的數據以及我們自己的專有數據。這些趨勢影響我們投資組合的多個領域。雖然我們今年迄今的表現反映了整體穩定的經濟環境，但有一些跡象顯示普通消費者仍面臨壓力。

In our Merchant segment, we've seen some elevated trends towards non-discretionary spend compared with discretionary spend and in certain market verticals, we've seen flattening of same-store sales.

在我們的商家領域，與可自由支配支出相比，我們發現非可自由支配支出有一些上升趨勢，且在某些垂直市場中，我們發現同店銷售額趨於平緩。

Similarly, demand for some short-cycle discretionary promo products has also softened. As a result of these data points and lingering macro uncertainty with the balance of the economic forecasts, we believe our revenue performance may trend to the low end of our original full year guidance, leading to our adjustment today. In line with our North Star execution to-date, we remain confident that our profitability outlook remains solidly within our reaffirmed guidance range inclusive of free cash flow generation.

同樣，對一些短週期可自由支配促銷產品的需求也有所減弱。由於這些數據點以及揮之不去的宏觀不確定性和經濟預測的平衡，我們認為我們的收入表現可能會趨向於我們最初的全年指導的低端，導致我們今天進行調整。根據我們迄今為止的北極星執行情況，我們仍然有信心我們的獲利前景仍牢牢地保持在我們重申的指導範圍內，包括自由現金流的產生。

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

偉大的。所以我想我確實聽到了。但為了更深入一點，我想知道你在準備好的發言中提到了麥錢特。這是否意味著，這就是我們應該預期承受大部分壓力的地方？或者它真的會在整個企業中得到更廣泛的應用嗎？

Well, Lance, I think you saw it in our Q2 performance that our short cycle promo products were impacted and that we do see a little bit of pressure there in Merchants. And we think that it is the average consumer seems to be under a bit of stress. You can see that the level of the balance between discretionary versus non-discretionary still is in favor of non-discretionary spending, which in some ways is very good for our Merchant portfolio.

好吧，蘭斯，我想你在我們第二季的表現中看到了我們的短週期促銷產品受到了影響，而且我們確實看到商家面臨一點壓力。我們認為一般消費者似乎承受著一些壓力。您可以看到，可自由支配支出與非可自由支配支出之間的平衡水平仍然有利於非可自由支配支出，這在某些方面對我們的商家投資組合非常有利。

We have a large amount of our business there that is non-discretionary. People have to pay their taxes. They have to get their cars fixed. They have to pay fees throughout their community. So that part of our business is strong. But there are other pieces there that we're just signaling where we're seeing some flattening out of same-store sales, which we think may be a bit of a headwind in the back half.

我們在那裡有大量非全權業務。人們必須納稅。他們必須修好汽車。他們必須在整個社區繳納費用。所以我們這部分的業務很強大。但還有其他一些事情，我們只是發出信號，我們看到同店銷售有些趨於平緩，我們認為這可能會在下半年帶來一些阻力。

But like we said, we feel confident about our profitability, and we think that the revenue is going to be at the low end of our original guidance, but we thought it was just prudent, Lance, just prudent to make the modest adjustment that we did to be reflecting what the bit of consumer pressure we see.

但正如我們所說，我們對我們的盈利能力充滿信心，我們認為收入將處於我們最初指導的低端，但我們認為這是謹慎的，蘭斯，謹慎地做出我們的適度調整確實反映了我們所看到的一點消費者壓力。

Great. And then just maybe on Merchant, the strength in merchant revenues up 8% from. Is it possible to talk about how much of that growth came from cross-selling new merchants versus increased volumes at existing merchants? And then just as a follow-up to that, if you could remind me sort of what's the lead time you're seeing on cross-selling Merchant Services? How long does it take from the initial contact to the time that you can actually generate revenues from a new merchant? Thanks.

偉大的。然後，也許在商家方面，商家收入成長了 8%。是否可以談談這種成長有多少來自新商家的交叉銷售與現有商家銷售量的增加？作為後續行動，您能否提醒我您在交叉銷售商家服務上看到的交貨時間是多少？從初次接觸到真正能夠從新商家獲得收入需要多長時間？謝謝。

There's a couple of great questions in there. So let me start with the revenue growth that you're seeing there. We see a good performance from our existing portfolio of customers. But you recall that we won a large piece of business that went live in the fourth quarter of last year, and that continues today to perform actually above our expectation. So a piece of the growth that you're seeing here is from that significant win. But even we feel solid about the base business that is performance on our ability to win merchants in the broad marketplace.

其中有幾個很好的問題。讓我從您所看到的收入成長開始。我們看到現有客戶組合的良好表現。但您還記得我們贏得了去年第四季度上線的一大筆業務，並且今天的表現實際上超出了我們的預期。因此，您在這裡看到的成長的一部分來自於那次重大勝利。但即使我們對基礎業務也感到很踏實，那就是我們在廣闊的市場上贏得商家的能力。

And your question is about if we win an individual merchant, how quickly we can get that merchants boarded and live and any individual merchant could take a couple of days to be longer depending on the complexity of their system.

您的問題是，如果我們贏得單一商家，我們需要多快才能讓該商家加入並​​上線，任何單一商家可能需要幾天的時間，具體取決於其係統的複雜性。

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

如果你考慮像去年第四季上線的大交易，這是一種銀行推薦關係，並將他們的整個商家組合重新登錄到我們的平台上，正如你想像的那樣，這可能是一個相當長的周期，如果您要移動大量交易量並最終執行開關翻轉以將該交易量移動給我們。

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

您最後提到的關於交叉銷售的問題，我們真的很高興三年多前的收購的基本論點之一是，我們可以幫助商家業務在我們的內部更快地發展。能力提供來自整個投資組合的線索，以及我們品牌的實力、我們對小型企業金融機構的信任等等，而這確實發揮了作用。

Just for perspective, Lance, we can board merchants in cases as fast as two hours if we have gotten -- if the merchant meets certain criteria. And that's, of course, obviously, for certain types of merchants. But we're very pleased with the progress of that business. I think it's obviously a standout in the portfolio and the fundamental thesis of what we're doing with First American and for the acquisition we think is proving out quite well.

蘭斯，只是為了長遠考慮，如果商家符合某些標準，我們可以在最快兩小時內登機商家。當然，這顯然是針對某些類型的商人的。但我們對該業務的進展感到非常滿意。我認為這顯然是投資組合中的佼佼者，也是我們與第一美國公司合作的基本論點，而且我們認為這項收購證明效果很好。

Kartik Mehta, Northcoast Research.

Kartik Mehta，北海岸研究中心。

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

午安.也許只是在商家業務上，我想知道，當你縱觀整個季度時，我想，當你開始注意到消費者可能存在一些弱點並影響商家業務時，在某個時間點開始放緩。

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

Kartik，我們所看到的是一些普遍不尋常的模式，其中非自由支配類別的支出比自由支配類別的支出佔餅圖的比例更大，我們以前見過這種模式。但我們從第二季開始看到這一點。我們並不特別關心它。我們只是注意到，這確實給普通消費者帶來了一些壓力。我們今天提出這一點只是為了警告。

I'm sorry, Chip. I apologize.

對不起，奇普。我道歉。

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

我的意思是，儘管存在這些壓力，正如巴里所指出的，我們開始看到本季度中後期的情況，這與您本週從其他消費者相關發布中讀到的所有內容一致繼續指出的是，我們今年仍指導該業務實現中高個位數成長。

So still feel good about the year-to-date trends we've been on, the volumes we're seeing there and of course, the long-term trajectory of the business. However long it started, however long it's going to last. We view this as a bit of a softening that a lot of people are going to be dealing with, and we don't view it as a long-lasting pressure against our business that would change our strategy. So we still feel good about the long-term growth trajectory of the Merchant business.

因此，我們仍然對今年迄今為止的趨勢、我們看到的銷售以及業務的長期發展軌跡感到滿意。無論開始多久，它都會持續多久。我們認為這是很多人都會面臨的一種軟化，我們不認為這是對我們業務的長期壓力，不會改變我們的策略。所以我們對商家業務的長期成長軌跡還是感覺良好。

Fair. Just kind of the Print business on Checks, you've had success winning market share. And I'm wondering, as you look over the next 12 months, maybe obviously, if you could name opportunities that'll be paid, but if you can't, maybe what the outlook is for your ability to gain market share in that business?

公平的。就像支票上的印刷業務一樣，您已經成功贏得了市場份額。我想知道，當你展望未來 12 個月時，也許很明顯，你是否能說出將獲得報酬的機會，但如果你不能，也許你在該領域獲得市場份額的能力前景如何商業？

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

因此，很難預測市場份額的成長以及像今年下半年這樣的狹窄窗口。但我可以告訴你，我們真的很高興我們在競爭性投標中贏得的勝利遠遠多於我們失去的勝利，並且我們希望有機會繼續擴大市場份額。你會記得，卡蒂克，我們甚至有一段時間在公司的這一部分領域實現了收入成長。因此，我們認為這仍然是一項現金流良好的業務，並且有良好的前景繼續下去。

And I guess, I'd just add, Kartik, along those lines, we, of course, can't predict market share takeaways; we're going to get very dilutive. But I think one of the great things about Deluxe is given our reach of the 4,000 FIs and the way we partner across the segment with those FIs if we don't support them from a Check perspective today, we do have some on average typical commercial relationship with them, which gives us the ability to talk through these things and have it on our roadmap and get a chance to play in when the opportunity comes our way.

我想，我想補充一點，Kartik，沿著這些思路，我們當然無法預測市佔率的變化；我們將會變得非常稀釋。但我認為 Deluxe 的一大優點是考慮到我們涵蓋了 4,000 家金融機構，以及我們與這些金融機構跨領域合作的方式，如果我們今天不從支票的角度支持他們，我們確實有一些平均典型的商業與他們的關係，這使我們能夠討論這些事情並將其納入我們的路線圖，並在機會到來時有機會參與其中。

Fair. And just one last question. On the promo business, obviously, it seems like the economy is having a little bit of an impact on that business. Are you seeing any pricing pressure as a result of our competitors getting a little bit more aggressive because they're seeing the same trend or as pricing not been an issue to this point.

公平的。還有最後一個問題。顯然，在促銷業務方面，經濟似乎對該業務產生了一些影響。您是否看到任何定價壓力，因為我們的競爭對手變得更加激進，因為他們看到了相同的趨勢，或者定價目前還不是問題。

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

嘿，又是奇普。我認為很難直接解決定價問題。我不相信我們已經看到了根本的改變。不過，我要提醒您的是，作為我們北極星之旅的一部分，也是與這個合併後的印刷實體合作的主題之一，我們已經專注於利潤率提高和利潤率擴張，特別是改善現金流。

So we've mentioned it before. We've already gone a bit put forward to try to think about the deals we do take, the price we're willing to take and the margins we're willing to play in that promo space. So I think you can think of it, yes, there's a softening there with the short cycle promo activity, but there's also us being a little bit more discerning in terms of the type of deal we want to take. And so because of that, are we seeing a little bit of pricing change, it's hard to know because we've just fundamentally shifted our focus a little bit there, Kartik.

所以我們之前已經提到過。我們已經開始嘗試考慮我們所做的交易、我們願意接受的價格以及我們願意在促銷空間中發揮的利潤。所以我想你可以想到這一點，是的，短週期促銷活動有所減弱，但我們對我們想要採取的交易類型也更加挑剔。因此，我們是否會看到一些價格變化，很難知道，因為我們只是從根本上將我們的注意力轉移到了那裡，Kartik。

Charlie Strauzer, CJS Securities.

查理·斯特勞澤 (Charlie Strauzer)，CJS 證券。

Hi, good evening. It's Charlie. I just want to say, thanks for taking my questions, and if you look at the results on Data, clearly performed better than we had expected, especially given the strong Q1. Can you provide maybe a little bit more color on how we should think about the back half of the year beyond what Chip had laid out before?

嗨，晚上好。是查理。我只想說，感謝您提出我的問題，如果您查看數據結果，顯然表現比我們預期的要好，特別是考慮到第一季的強勁表現。除了奇普之前的闡述之外，您能否提供更多關於我們應該如何看待下半年的資訊？

Yes. Thanks. Thanks for acknowledging that, Charlie. You're right. As we indicated on the last call, we recommended averaging three quarters at that time to get the right trend and given the lumpiness of the business and the timing of the campaigns. I would continue to update that perspective and say, now I think if you average the most recent four-quarter, I think it continues to show you the right trend.

是的。謝謝。謝謝你承認這一點，查理。你說得對。正如我們在上次電話會議中指出的那樣，考慮到業務的混亂程度和活動的時間安排，我們建議當時對三個季度進行平均，以獲得正確的趨勢。我會繼續更新這個觀點，並說，現在我認為，如果你對最近四個季度進行平均，我認為它會繼續向你展示正確的趨勢。

That will clearly imply again another softer data quarter because we're coming up against just another record comp. You may recall, Data had a fantastic Q2 a year ago and then followed-up with a new greater Q3. But again, if you roll these things forward, it continues to go on a rolling basis, very solid growth.

這顯然意味著又一個數據疲軟的季度，因為我們面臨的只是另一個創紀錄的比較。您可能還記得，Data 一年前的第二季表現出色，隨後又迎來了更出色的第三季。但同樣，如果你將這些事情向前推進，它會繼續滾動，非常穩健的成長。

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

因此，即使我們不提供季度指導，我對您的指導是查看從去年第三季度到我們剛剛報告的第二季度的最近四個季度的平均值。我認為這是一個很好的指標，可以預測第三次的預期。

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

偉大的。這很有幫助。謝謝。然後看看密碼箱，巴里，您提到您正在那裡招募一些新客戶。也許這背後還有更多的色彩。

Yeah. We continue to win market share here. And it's because of the quality of our service footprint we have and the way we process those payments. I think what we're really pleased about is that those wins represent sort of the -- across the industry. They are regional banks all the way up to money center banks, and that they're in the queue to go live across the back half of the year.

是的。我們繼續在這裡贏得市場份額。這是因為我們的服務品質以及我們處理這些付款的方式。我認為我們真正感到高興的是，這些勝利代表了整個產業。它們都是地區性銀行，一直到貨幣中心銀行，而且都在排隊等待今年下半年上線。

And that's why we just have confidence that that part of the business over the long-term, we'll continue to get share to help that business stay robust. As we're building and launching and selling and implementing our new products in B2B around receivables and payables, digital receivables and digital payables.

這就是為什麼我們有信心這部分業務從長遠來看，我們將繼續獲得份額以幫助該業務保持強勁。我們正在圍繞應收帳款和應付帳款、數位應收帳款和數位應付帳款在 B2B 領域建立、推出、銷售和實施我們的新產品。

And Charlie, just to add, I think lockbox is an area we're not talking enough about. You may recall, a few years ago, we went through some operational changes there. It coincided with the rapid raise and labor rates for hourly workers, and we also had just some systemic things we had to work on. And so you may recall over the last few years, we've been talking about the work we've done to improve the profitability, improve the operations, and that's included a lot of investments in our system there, consolidating sites, getting new modern sites.

查理，補充一下，我認為密碼箱是一個我們討論得還不夠多的領域。您可能還記得，幾年前，我們在那裡經歷了一些營運變革。適逢小時工的快速加薪和勞動率的提高，我們也有一些系統性的事情需要處理。因此，您可能還記得在過去幾年中，我們一直在談論我們為提高盈利能力、改善運營所做的工作，其中包括對我們系統的大量投資，整合站點，獲得新的現代化網站。

And I think it's all colliding in this moment in time where we now have very stable modern operations there, they're performing very well. And it's met a point in the market where we have an opportunity to take share gains, and we're just capitalizing on that. And it's also super critical for us because that lockbox area becomes the gateway to migrate these transactions to our new receivables are 360 SaaS-based solutions.

我認為這一切都在這個時刻發生衝突，我們現在在那裡擁有非常穩定的現代業務，它們表現得非常好。市場已經達到了一個點，我們有機會獲得份額收益，而我們正在利用這一點。這對我們來說也非常重要，因為密碼箱區域成為將這些交易遷移到我們基於 360 SaaS 的新應收帳款解決方案的入口。

So the strategy is coming together. The team is performing great. The investments we've made over the last few years have put us in a really great position. And so we're trying to go take market share. And as I said in the Check conversation, this is a place where we have great relationships that can really leverage cross-sell and all of our partners to really take a hold of that area. And we're going to continue to really take -- make some really good progress there.

因此，戰略正在整合。球隊表現出色。過去幾年我們所做的投資使我們處於非常有利的地位。因此，我們正在努力爭取市場份額。正如我在 Check 對話中所說，我們在這個領域擁有良好的關係，可以真正利用交叉銷售以及我們所有的合作夥伴來真正佔領該領域。我們將繼續在這方面取得一些非常好的進展。

Excellent. And staying on lockbox for a second, do you think you can find more ways to expand margins there? Is it purely revenue -- additional revenue? Or is it anything you can do that to improve the margins?

出色的。停留在密碼箱上一秒鐘，您認為您可以找到更多方法來擴大那裡的利潤嗎？是純粹的收入──額外收入嗎？或者你可以採取什麼措施來提高利潤？

I think we do believe that. And we have made progress there. As Chip has said, we have works on our -- the distribution footprint of how we receive payments, et cetera, and operating efficiencies throughout the organization.

我想我們確實相信這一點。我們已經在這方面取得了進展。正如奇普所說，我們正在努力改善我們如何接收付款等的分銷足跡，以及整個組織的營運效率。

So we do believe that is an area where we have opportunity over time for margin expansion, win market share. And then, Chip, has already given you the message about how it's strategically important for us as we build the other future businesses around B2B.

因此，我們確實相信，隨著時間的推移，我們有機會擴大利潤率，贏得市場份額。然後，Chip 已經向您傳達了這樣的訊息：當我們圍繞 B2B 建立其他未來業務時，它對我們來說具有多麼重要的戰略意義。

(Operator Instructions)

（操作員說明）

Marc Riddick, Sidoti.

馬克·里迪克，西多蒂。

I wanted to sort of -- we covered quite a bit. So a lot of my questions have already been answered, but I wanted to circle back around to the commentary around the forces that led to the sort of pointing to the low portion of the revenue guide.

我想——我們涵蓋了相當多的內容。因此，我的許多問題已經得到解答，但我想回到有關導致收入指南中較低部分的力量的評論。

I was wondering and I appreciate you putting a finer point on a lot of the things that you guys are looking at. Was there any one or two parts of those considerations that maybe help greater weight or if not greater weight, maybe we're a little more surprising than you thought they would be? Or how should we think about maybe a bigger impact than others?

我想知道並且感謝你們對你們正在關注的許多事情提出了更詳細的觀點。這些考慮因素中是否有一兩個部分可能有助於增加體重，或者如果不能增加體重，也許我們比您想像的更令人驚訝？或者我們應該如何考慮比其他人更大的影響？

Marc, I think it wasn't any one specific thing. I think what we're communicating is that there's just a bit of softness in the consumer demand for the consumer that's under a little bit of stress. We are not signaling major stress. We're just signaling there's a bit of softness there. And that will guide us to the lower end of our range. And we're just trying to be prudent and sharing that with you at this point in time.

馬克，我認為這不是一件具體的事。我認為我們要傳達的是，消費者的需求有些疲軟，而消費者面臨一點壓力。我們並不是發出重大壓力的訊號。我們只是發出信號，那裡有一點軟弱。這將引導我們到達範圍的下限。我們只是想謹慎行事，並在此時與您分享這一點。

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

好的。這很公平。我想，然後在不同的軌道上。我想知道我們是否可以——我認為在準備好的發言中，有一些想法圍繞著你今年要在哪些方面動搖。您能否提醒我們您對削減潛力的想法以及這如何影響您的利息支出想法等。謝謝。

Yes. Thanks for the question, Marc. We aren't including any cuts in our forecast. And I will remind you that throughout the last two years, we've fixed 75% in our interest rate. So any cut we have, while we'd welcome it. Obviously, the whole market would welcome it for what that could help with the consumer and the economy, we wouldn't expect any unless the rates really start to come down by a few points, it's not going to be material.

是的。謝謝你的提問，馬克。我們的預測中沒有包括任何削減。我要提醒您的是，在過去的兩年裡，我們將利率固定為 75%。因此，我們歡迎任何削減。顯然，整個市場都會歡迎它，因為它可以對消費者和經濟有所幫助，除非利率真的開始下降幾個點，否則我們不會期望任何東西，這不會是實質性的。

So a 25 basis point cut next month, as an example, would maybe help us save $300,000 of interest cost in the back half of the year. It's not material, it's not meaningful, and that's because we're 75% fixed at this moment. I think, obviously, we're hopeful rates will continue to come down, and that will be a big part of as we think about long-term debt financing structure and what we do in terms of setting the long-term policy around our fixed variable interest rate exposure.

例如，下個月降息 25 個基點可能會幫助我們在下半年節省 30 萬美元的利息成本。這不重要，也沒有意義，因為此時此刻我們已經 75% 固定下來了。我認為，顯然，我們希望利率將繼續下降，這將是我們考慮長期債務融資結構以及圍繞我們的固定利率制定長期政策時的一個重要組成部分。

Okay, great. That's very helpful.

好的，太好了。這非常有幫助。

At this time, there are no further questions. I would now hand this call over to presenters. Any closing.

目前，沒有其他問題了。我現在將把這通電話轉交給主持人。任何關閉。

Thank you, Tamika. Before we conclude, I'd like to share that management will be participating virtually at CL King's 22nd Annual Best Ideas Conference on September 16 during the quarter, for which the webcast link will be posted to our Investor Relations website.

謝謝你，塔米卡。在結束之前，我想告訴大家，管理層將在本季度以虛擬方式參加9 月16 日舉行的CL King 第22 屆年度最佳創意會議，該會議的網絡廣播鏈接將發佈到我們的投資者關係網站上。

Thank you again for joining us today, and we look forward to speaking with you all again in November as we share our third quarter results.

再次感謝您今天加入我們，我們期待在 11 月再次與大家交談，分享我們的第三季業績。

This concludes today's call. Thank you for joining, and you may now disconnect your lines.

今天的電話會議到此結束。感謝您的加入，您現在可以斷開線路了。