Slide 1: Fourth Quarter and Full Year 2024 Earnings
Fourth Quarter and Full Year 2024 Earnings February 5, 2025 © 2025 Deluxe Corporation
Slide 2: Brian Anderson
Brian Anderson Vice President, Strategy & Investor Relations 2
Slide 3: Today's Presenters
Today’s Presenters Barry McCarthy Chip Zint Brian Anderson President and Senior Vice President and Vice President, Chief Executive Officer Chief Financial Officer Strategy & Investor Relations 3
Slide 4: Cautionary Statement
Cautionary Statement Statements made in this presentation concerning Deluxe, the company’s or management’s intentions, expectations, outlook or predictions about future results or events are “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Suc
Slide 5: Barry McCarthy
Barry McCarthy President and Chief Executive Officer 5
Slide 6: Full Year 2024 Financial Highlights
Full Year 2024 Financial Highlights (in millions) -3.2% -1.2% -1.2% +3.9% +101.9% 6
Slide 7: Full Year 2024 Highlights
Full Year 2024 Highlights 2024 FOCUS AREAS HIGHLIGHTS • All 12 workstreams in-flight toward 2026 targets NORTH STAR • 80%+ of targeted gross $130 million Adjusted EBITDA improvements EXECUTION moving through execution phase IMPROVED PROFIT • Strong operating leverage across 2024 quarters METRICS • C
Slide 8: North Star Progress & Timelines
North Star Progress & Timelines 8
Slide 9: Capital Allocation Priorities
Capital Allocation Priorities 9
Slide 10: Long-term Value Creation Algorithm
Long-term Value Creation Algorithm 10
Slide 11: Chip Zint
Chip Zint Chief Financial Officer 11
Slide 12: Full Year 2024 Financial Summary
Full Year 2024 Financial Summary REVENUE NET INCOME Adjusted EBITDA Adj. EBITDA margin Adj. Diluted EPS $2.12B $52.9M $406.5M 19.3% $3.26 Down 3.2% Or $1.18 per share Increased 3.9% Increased 100 Up 7.9% versus 2023; on a diluted basis; versus 2023 basis points compared to Comparable Up from $26.2M
Slide 13: Merchant Services
Merchant Services Payment Processing & Omnichannel Payments Terminals & Devices Reporting (in millions) +5.4% +5.5% -0.2% -5.2% 2024 Revenue growth driven via wins across direct, ISO, FI partner, and ISV selling channels. Adjusted EBITDA margin for 2024 was 20.4%, consistent with expectations and fl
Slide 14: B2B Payments
B2B Payments Treasury Management B2B/Digital Payments Fraud & Security Protection Receivables as a Service Payables as a Service (in millions) -3.8% -7.9% -0.1% -16.2% Adjusted EBITDA margin for 2024 was 19.8%, down 90 basis points year-over-year driven by volume trends and new customer onboarding e
Slide 15: Data Solutions
Data Solutions Data Analytics Data Driven Marketing SMB SaaS Solutions (in millions) +10.5% +30.7% +26.8% +68.5% 2024 Revenue growth on strong core FI and adjacent market customer campaign activity. Adjusted EBITDA margin for 2024 was 25.9%, up 400 basis points year-over-year driven by strong volume
Slide 16: Print
Print Consumer and Web Storefront Platform Extensive range of Business Essentials Business Checks for Branded Products Promotional offerings (in millions) -4.5% -6.1% -7.1% -8.3% 2024 Revenue declined 2.5% across legacy check, consistent with expectations. Adjusted EBITDA margin for 2024 was 31.3%,
Slide 17: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Net Debt to Adjusted EBITDA Free Cash Flow (in millions) (in millions) For the 12 Months Ended For the 12 Months Ended 12/31/2024 12/31/2023 Variance 12/31/2024 12/31/2023 Variance Cash Provided by Net Debt $1,468.7 $1,520.9 ($52.2) $194.3 $198.4 ($4.1) Operating Activiti
Slide 18: Capital Structure - Debt maturity ladder
Capital Structure - Debt maturity ladder 18
Slide 19: 2025 Guidance
2025 Guidance Additional modeling assumptions: ◦ Interest expense of approximately $120 million ◦ Adjusted tax rate of 26% ◦ Depreciation and amortization of $140 million, of which acquisition amortization is approximately $45 million ◦ Average outstanding share count of 45.5 million shares ◦ Capita
Slide 20: Long-term Value Creation Algorithm
Long-term Value Creation Algorithm 20
Slide 21: dlx
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Slide 22: Brian Anderson
Brian Anderson Vice President, Strategy & Investor Relations 22
Slide 23: Upcoming Conferences/Events
Upcoming Conferences/Events 23
Slide 24: Appendix
Appendix dlx
Slide 25: Consolidated Condensed Statements of Income
Consolidated Condensed Statements of Income in millions, except per share amounts (Unaudited) Quarter Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Revenue $520.5 $537.4 $2,121.8 $2,192.3 Cost of revenue (248.2) (253.9) (995.3) (1,029.6) Gross profit 272.3 283.5 1,126.5 1,162.7 Sell
Slide 26: Segment Information
Segment Information in millions (Unaudited) Quarter Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Effective January 1, 2024, the Revenue: company realigned its organization Merchant Services $95.5 $95.7 $384.0 $364.2 structure to better reflect its portfolio B2B Payments 73.0 73.1 2
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin in millions (Unaudited) Quarter Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net income $12.6 $15.0 $52.9 $26.2 Non-controlling interest — — (0.1) (0.1) Interest expense 32.4 31.7 123.3
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Adjusted Diluted EPS - Q4 2024 dollars and shares in millions, except per share amounts (Unaudited) Gain on sale of businesses/ Acquisition and Restructuring Share-based Asset assets and Income tax Q4 2024 accelerated and integration compensation impairmen
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Adjusted Diluted EPS - Q4 2023 dollars and shares in millions, except per share amounts (Unaudited) Acquisition Gain on and Restructuring Share-based sale of Income tax Q4 2023 accelerated and integration compensation businesses/ impact of Q4 2023 GAAP amo
Slide 30: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Adjusted Diluted EPS - Total Year 2024 dollars and shares in millions, except per share amounts (Unaudited) Gain on sale of businesses/ Total Year Acquisition and Restructuring Share-based Asset assets and Income tax Total Year 2024 accelerated and integra
Slide 31: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Adjusted Diluted EPS - Total Year 2023 dollars and shares in millions, except per share amounts (Unaudited) Acquisition Gain on Total Year and Restructuring Share-based Certain legal- sale of Income tax Total Year 2023 accelerated and integration compensat
Slide 32: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Comparable Adjusted Revenue / Comparable Adjusted EBITDA / Comparable Adjusted EBITDA Margin in millions (Unaudited) Quarter Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Revenue $520.5 $537.4 $2,121.8 $2,192.3 Business exits (0.4) (6.1) (
Slide 33: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Comparable Adjusted Revenue / Comparable Adjusted EBITDA / Comparable Adjusted EPS Outlook (Unaudited) Total Year 2025 Outlook 2024 Actual (in billions) Revenue $2.090 - $2.155 $2.122 Less: Business exits — (0.011) Comparable adjusted revenue $2.090 - $2.1
Slide 34: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Net Debt to Adjusted EBITDA dollars in millions (Unaudited) December 31, December 31, 2024 2023 Total debt $1,503.1 $1,592.9 Cash and cash equivalents (34.4) (72.0) Net debt $1,468.7 $1,520.9 TRAILING 12 MONTHS ADJUSTED EBITDA: 12 Months Ended 12 Months En
Slide 35: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Free Cash Flow in millions (Unaudited) Year Ended December 31, 2024 2023 Net cash provided by operating activities $194.3 $198.4 Purchases of capital assets (94.3) (100.7) Free cash flow $100.0 $97.7 35
Slide 36: deluxe.
deluxe.