Deluxe Corporation (DLX) Earnings Call Transcript & Summary

Good morning, and welcome to Citi FinTech 11, our fourth day. We're getting close to the end here. So thanks to all for hanging in for this marquee event of ours. In this session, we're going to be having a great discussion with Deluxe Corp. I'm pleased to be -- pleased to welcome Barry McCarthy, CEO; and Scott Bomar, CFO. Gentlemen, thanks for participating in Citi FinTech 11. Great to have you here.

Great to be with you. Thanks for the opportunity.

Absolutely. So why don't we start off with this. Maybe not every investor is super familiar with Deluxe. Maybe you could just provide a brief overview. We'll get into the nitty gritty in a little bit, but a brief overview of the company. And maybe it might be helpful just to briefly describe the operating segments of Deluxe.

Sure. So I suspect most people may have been familiar with Deluxe from days gone by, but the company is a fundamentally different company than most people have recognized. We have operated 4 businesses today. Our Payments business, where we help businesses pay and get paid. Our cloud-delivered services business, with a real jewel there being our data-driven marketing business where we help businesses identify their next customer. Our promotional products business that helps businesses grow. And of course, our legacy check business. Our strategy is very clear. We're very transparent. So we take the extraordinary cash flow from our Promotional Products business and our Checks business, and we are investing that for growth in our Payments business and our data business. And our results, I think, tell a really positive story that our Payments business is now on track to, late next year, be larger than our Checks business, which will be a significant milestone. And we've also said that for the first time in at least a decade and perhaps much longer, we will deliver organic revenue growth this year without the benefit of acquisitions. And those are both significant milestones, I think, really talking about the momentum of the company. And of course, you put on top of that, we completed the largest transaction, the largest acquisition in the company's history in acquiring First American Payments that gives us a really significant foothold in the merchant acquiring space, furthering our portfolio in our payments business. So 4 businesses: payments, cloud, promotional products and checks, much, much more than most people ever think about Deluxe being.

For sure. No, it's super enlightening. So before we get to the Payments and the cloud business, which I could tell you're very excited about, let's talk about the Checks business, which is where Deluxe has had its roots. And at least as a fintech analyst, we hear from our B2B players all the time, that the days of the paper check are essentially numbered. It might be helpful if you could maybe help characterize maybe that view. What are you seeing as the pace of paper check cannibalization these days? How should investors think about the future of the paper check business? And perhaps, I would imagine, as being such a stalwart in this area, that you certainly have opportunities to grab market share along the way. Am I correct in that thinking?

Absolutely. I think this is one of the biggest misconceptions, honestly, in the payments industry today. I spent 14 years at First Data. I would talk about checks going away, too. But here's the real truth is that the use cases for the checks that remain, there are no viable substitutes today. B2B checks are not going away anytime soon. Think about the use cases, think about a restaurant that is getting provisions at the back door of their store. There are no viable substitutes for writing a check. And there's no way that truck is getting unloaded with provisions loaded with steak and red wine to the nice restaurant, if it isn't being paid for today. The same is true for so many other sectors, health care payments, property, casualty, insurance payments. You go through the list and there are quite literally billions of paper checks still being written every day. And the use cases, especially in B2B, are significant without viable substitutes. Personal checks have been in decline for a long period of time, although there are still billions of personal checks still being written every year. And so, if you look at our business, our business has held up pretty darn well through COVID. Although everyone has said that checks were going to accelerate in decline through COVID, just isn't true. I want to say it again so everybody hears me. Check has maintained its trajectory all the way through COVID. Now our businesses performed even better because we've won significant market share, which is part of your question. When we go to the marketplace today, we have a superior product. We have a superior balance sheet. And we have a superior customer service. And if you talk to a bank that is going to be reselling our check product and they're going to get into a relationship with someone over 5 to 10 years, who are they going to choose? And when we are in a competitive situation, competitive bid situation, we're winning 3 out of 4 times. And that's helped us grow market share. A couple of years ago, we had no business in Canada. We now have 2 of the largest 5 banks -- the 5 banks in Canada. When BB&T and SunTrust came together to form Truist, we won both sides of that. And you go through a number of the bank integrations, and we win there. Now checks are not our future. But checks are a great cash flow source that gives us the runway and the cash flow to build the payments and data business, which is what we said we're going to do, and now we've proven we've got points on the board to show that progress.

I think that's interesting. Tech investors typically think of tech transformation is difficult to navigate. But since the free cash flow profile of this business is just being so robust, you really do have that capability to accelerate in the payments world, on your cloud strategy. How should we think about that cash flow generation?

Scott, do you want to talk about that? We feel great about it, by the way. But do you want to give some characteristics?

Yes. I mean that is -- look, we know -- we talked already about the secular trends in checks, but it is just a very predictable model. Like we have very good line of sight to check declines. We have a very good line of sight to new business opportunities that are out there. And so we feel that the cash flow that it generates as well as the improving cash flow from other parts of our business really gives us a solid footing to invest where appropriate in the payment space and the data business as well.

Thank you, Scott. That was helpful. Okay. Now I'm moving on to the future here, the new elements -- the newer elements of your business. I guess last quarter, First American on the SMB payment side, you saw a really nice pickup in growth. Can you just discuss to what extent your cross-selling initiatives are starting to benefit the business? And how should investors think about "Deluxe halo" impacting the growth algorithm going forward?

Absolutely. But before I answer that specifically, let me just explain to everyone listening the incredible set of assets here that we're using and leveraging to help First American accelerate its growth. We have 4,000 bank partners, and we have 4 million small business customers. First American that we bought has plus or minus 130 bank partners and about 150,000 small business customers. If we simply convert a low single-digit percentage of our customer base to be using the First American platform over a reasonable horizon, we have the opportunity to double that business. So I mean, just think about the numbers again. They have 130 bank partners, we have 4,000. They have 150,000 small business customers, we have 4 million. So we don't have to be heroic here to be really successful at bringing the First American product suite into our customers. Now through the pandemic and before we have proven that we are a great cross-selling machine, our company has had 9 of the 13 largest sales in the last decade, done all the way through COVID because we're cross-selling more product and service to existing customers. We sold 2 of the largest deals in the company's history. So we have a scaled sales machine that really works and is helping and has made the company an organic growth company. Now, what is that? And how does that affect First American? It's really simple. We take the First American products and services and snap it in to our very robust and scaled sales infrastructure, and the results you can see in our third quarter performance. There were many hundred basis point improvement above what would have been the normal trajectory of that business even after COVID and that's because of this Deluxe halo. We are actually able to sell that product into our customer base and also bring -- build a big fat pipeline. We have, I think, more than doubled the pipeline of bank partners that would be interested in the First American solution, we've sold a few already, and we're only 4 or 5 months into owning the asset. We're bringing it to our small business customers as well. So again, we have a distribution system. We have a huge customer portfolio where they're under Master Service Agreement, and we simply can go in and sell this next product and service to that customer list and it's working. You can see 12% growth out of business with a historical run rate in the low single digits. It really tells the story better than any words that I can tell you.

An important part of the First American story also is that they're not an ISO, right? They have their own processing platforms. So as we think about the benefit of the cross-selling synergies that can be realized, we anticipate, not in the near-term, but over the intermediate term, that the flow-through of that incremental volume should lead to margin expansion. And so that's really part of the thesis, that we should have operating leverage that gets created from the cross-selling opportunities that Barry just described.

I'd imagine so. But Barry, can you just break it down for me though a little bit more? I mean exactly, like you said, you got an outstanding client base, certainly a vast opportunity to cross-sell, upsell into tons of partners on the bank side, so on and so forth. But what's -- when I [ say about ] that go-to-market, what's the sales pitch there? What's the value prop that you're delivering on some of these cross-sell initiatives?

So the banks that we target, we're not going after that very, very top tier. They're doing it themselves or they've got a partnership with Fiserv or FIS or Global. We are talking about serving the community bank or the regional bank that is significantly underserved by those companies and services today. Largely, the bank leads that are coming from that type of a channel are going to a local ISO. Somebody knows somebody through their kid's soccer team, and they're just simply passing leads. And what First American now Deluxe does is provide a customized branded solution for that financial institution. So they're selling an additional product in the portfolio. It's not an afterthought. It's not, "Oh, if you need merchant services, call my cousin Johnny." It is part of what the bank is offering to their customers. Now why is that so important? The significant majority of small businesses, the first thing they do is they walk into a bank branch to get a DBA. So we get the first bite at the apple, if we can get there in more banks, which we are, we get the first bite at the apple. Now are we going to win every time? Of course, not. But we get to be at the table and get the first bite of that apple, so when that banker is in their branch, at the community bank branch or the regional bank, which is all about relationship, right? That's the reason those banks exist as they are great at relationship and being part of the community. The person walks in, says he's starting a new business, that banker can say, "I can help you, not only with the DBA, not only with the commercial card and not only by [ buying ] checks, but I also can help you really be in business by accepting credit cards." And so we've got a great story there. One of -- the First American has a great platform for that, that has been around for a while, and we're just able to scale it and get it to the banks faster. And as a result, we're signing new banks and we've built a huge pipeline that we can go chase.

Is it a tough lift to get your existing bank partners to start offering the First American services? Maybe talk about from a distribution point of view, have you been able to get them on board with this -- with this initiative?

Still early days. But I have to tell you, in the 4 months or so that we've really been at this, we've already closed a number of financial institutions that have only made the decision to meet. So in a normal year, First American would have converted a much smaller number. We haven't issued -- we haven't released numbers, but a much smaller number than we are going to convert this year. But it's not just bank leads. I want to be clear, we're not just in the bank lead space. We also have ISOs that rent our platform, and so we're very successful there. And we're also very successful in the high-growth area, which is integrated software vendors or ISVs. And the reason we like that, obviously, is that when the software gets sold, our platform comes with it. And again, as Scott was saying, not only do we have scale advantage over time because we own the backend platform, we also own the development here. We own the development here. We're not renting somebody else's platform and we're waiting on them to add additional feature or function. We own it. So if there's a market vertical that we want to penetrate, we control it and we can make the adjustments and modifications to the platform to help us enter new market verticals. We've already got great penetration in government, not-for-profit, hospitality, specialty retail where First American already has a great penetration through ISO, ISV and bank channel. And the marketplace is wide open for us to expand. Deluxe has a great footprint in health care, in real estate and construction. And so we are very complementary and we can bring our products and services to the First American base and the First American product to our base, and we see great upside opportunity there.

Got you. That makes a lot of sense. I want to pivot a little bit to the receivables and payables as a service offering that you have. How do you think about differentiating in that area? There's certainly a lot of solutions out there, some providers. But how does Deluxe see itself? Is it product capabilities? Is it target market? Is it just a natural fit with some of your other services? How are you thinking about growing that segment of the business?

Yes on all of that. But let's just start with the most fundamental thing in the payments landscape. Payments is a two-sided market, which means the payer and the payee have to have a common way of interact, and they have to agree to that before the transaction can happen. That's why there are still so many paper checks out there, there are so many billions of them, because it is the most ubiquitous example of what is possible. Now we are going about to go to the digital frontier but solve that in the notion of having a 2-sided market and make it easy. So neither side, the payer or nor the payee actually have to change what they're doing. So let's talk about receivables first. And this is why we have what we think is a very distinct competitive advantage and receivables are AR as a service. The significant majority of financial institutions and billers today are running our software that is underlying our lockbox operation. There are a number of modules that are associated with that software. One of them is lockbox, managing an inbound payment that comes by mail, making sure it gets posted, and the money flows as it should. But that's not the only module. Now we have a full suite of services that help a business and the entire order to cash life cycle. And we call that our integrated receivables, receivables as a service model. But it is built upon the software that the bank and the billers are already using. So unlike all the other service providers in the marketplace that have to get the 2-sided market to work by getting both of them to agree, we start from the place where they've already agreed because they're already using our software. And then we built on top of that. You've seen us announced significant wins with Arvest, Synovus and they're taking our platform. And they're rebranding it Synovus and Arvest and going to their customer with a digital end-to-end solution. So we know the model works. We know the market likes it. And we can go fast as a result of that. Now we're early days on this, but the early days have been really, really encouraging. So let's talk about payables next. And payables has the same dynamic. It's 2-sided, the payer and the payee have to agree. Let's talk about health care payments specifically, and then we can talk about other use cases. In health care, the hospital sends a bill to the insurer. Someone at the insurer, the adjuster opens the envelope and says the hospital wants $10,000, my policy limit is $8,000. They then print a paper statement that explains why they're only getting $8,000. They put a check in the envelope for $8,000, they put a stamp on it, put it in the envelope and the receivables clerk at the hospital accepts it. They have to unzip the envelope, match it, put it in and then put it in the stack of checks to go and be deposited at the bank. Put a rubber band about around or walk across the street at lunch. Our product sits on top of that, so that when the hospital sends the invoice to the insurer, the insurer already has in their software a button that says print and mail the payment. That's us. Print and mail the payment is us. There's now a second button there that just says, send electronically. And now our product takes it from there and digitize it. So we sent an electronic -- we send an e-mail to the hospital, the hospital receives it and embedded to that is an electronic check. And you're probably saying is a fintech guy, why the heck would you want an electronic check? And the reason is and the reason it works is because it's universally acceptable. Now if that hospital wants to convert it real time via ACH, they can. With a tap of a button, we will convert it real time. They will have good funds immediately in their bank account. But if they want to print it and put it on that stack of other checks they've got from other insurers, they can. They don't have to change their process. They don't have to install new software. They can just simply accept an electronic form of payment. And that's why we're seeing great lift off in that business. Let me give you another use case. Talk about and think about class action litigation disbursements. There are billions of these checks that are being sent every year. These are the checks you've probably gotten, $3.97 with an explanation that you were wrong somewhere a long time ago. That comes in an envelope with a stamp, with an explanation of benefits or explanation of payment. And we, in the second -- I'm sorry, in the third quarter, we delivered 2.5 million electronic payments using this platform to 2.5 million recipients to settle class action litigation. Those would have gone before via paper method. We've delivered a 75% cost savings. The customer got paid immediately. And it was just simple and it was acceptable to everybody. Instead of the property -- I'm sorry, instead of the class action litigation sending a file to be printed, they send it to us and we send it electronically. And the customer then got a statement with an electronic check. And just like the hospital, could decide to print it and deposit it like any other check or convert it electronically via ACH. The platform works and we scaled it in the third quarter from 50,000 transactions a day to 1 million. So we were able to do that 2.5 million customer order, and we did it in a couple of days. And we saved them 75%. We have 4 more or 5 more, I'm not exactly sure. There's a number of them in the queue. I shouldn't promise exactly the number. There's a number of them in the queue that are waiting to be implemented, they're the same model. So we know the model works. Let me go to property and casualty insurance. We go through the list of all of these single-use paper checks today, and we have a huge opportunity to win. And what we especially like about it is at least half the time, we're not displacing ourselves, because at least half the time, it's somebody else's check. And in the case of print mail, it's probably way more than half of the time it's not us. So all of that is net new incremental to us and at a great margin, it gives us great runway. It really makes us the digital payments company of the future.

That's super interesting because I imagine having both sides of the equation, which I think is fairly unique out there. Certainly helps you improve your vendor enrollment capabilities, your master vendor list and connectivity and so on and so forth. Because I think what we're seeing is, on the payable side, business is looking to optimize or increase interchange. The receivable side is trying to reduce interchange. And maybe that's why the business model is getting in the way of some scaling, but you're really going forward in that notion. How do you balance those 2 sides of the equation from a monetization point of view? Is this like as a software kind of subscription business? Is that how we should envision the economics? Maybe that's a question for Scott.

Yes. It depends on the particular product. The business model, revenue models are a little bit different there. But we certainly have software, kind of SaaS-based agreements on some of the software suites that we offer. The digital payments on the disbursement side, that is more of a transaction-based model. So the story is going to be a little bit different, depending on which product you're looking at. But look, we are going to look at the full value chain and make sure that we're delivering value to our customers. Like it's the 2-sided aspects, it really helps the eases the implementation aspects here. But it's really important that we're delivering value to both sides of the equation when we think about the kind of the end-to-end economics of our products to make sure we have something that's competitive.

Nice. I appreciate that approach. And I think you'll be successful there. Let's pivot to cloud delivered services a little bit here in that business. Can you give us a sense of how that business has evolved? Certainly, as financial product marketing, it's clearly on digital. How are you positioned? How is Deluxe positioned there?

So let me just tell everybody, first, what's in our cloud business. And there are 3 elements in our cloud portfolio. We have a series of products that are software as a service that help businesses at different stages of their life cycle, everything from cloud-based incorporation services, logo design, web design. There's a bundle of services. There's dashboarding tools there as well. Second business is web hosting, where we are hosting about 4 million small business websites. We don't sell those websites directly. You don't come to deluxe.com to get those websites. We sell it primarily through third parties. So most of the major telcos are our customers. So if you go and get the small business bundle from the telco, it comes with WiFi, a router, a broadband router, [indiscernible] phone, maybe a landline and it comes with a website. And when you use the website, you're using our tools on a fully white label basis. So when you text us or you chat with us or you call us, we answer that call or that inquiry, hello, telco. Fully turnkey white label for the telco. But the business that we are -- we think is the real jewel, the real jewel here is our data-driven marketing business. And in this business, we have very sophisticated AI tools that can ingest an incredible wide array of data. So we have not only our proprietary data, we have the bank data. The customers are primarily banks, but I'm going to talk some more about that in a second. Bank data. All 3 credit bureau data. Plus a variety of other data, lifestyle, life stage, et cetera, we can put into a model. And what we do is we deliver for a financial institution a highly converting lead list. So they know where to spend their marketing dollars. So rather than going mass market media, buying billboards all over the place, we could help them be very, very targeted. So if you're trying to get CDs, you're trying to get a new DBA, you're trying to drive credit cards, we can help you help as a financial institution specifically target people that are likely to convert. We're so good at it. As a matter of fact, we -- we offer the model in 2 ways, one of which is pay for service and the other is pay for performance. We'll take all the risk on our side and we simply get a balancing when a customer converts. So we're that good and we're that confident of our model, we're willing to work for free and just get about to when we convert a customer. So we know we're good. But that's not the end of the story there. We've also announced in the last 2 quarters that we've expanded beyond financial institutions. And so now we have delivered for unregulated utilities so that when an unregulated utility is trying to find their next customer, we are there. And we've announced a couple of other additional market verticals in the last quarter. So we're expanding beyond the traditional bank vertical. And you've seen us put up some terrific numbers there. And yes, some of that is COVID recovery, but it's also market entry and winning new customers and taking these tools and then commercializing them for different markets. So that's why we keep saying we're really a payments company now, with a great data business also, all funded with the great cash flow coming from the checks and the cloud business.

That was super helpful, really interesting insights. A few more questions here, but I definitely want to get to this, for sure, is how Deluxe thinks about M&A. Historically been a very active company. How should we think about your build versus buy thinking on a go forward? Particularly given we've seen a lot of valuations rise in fintech land for sure. But can you think about how Deluxe thinks about this trade-off decision? How they're thinking about M&A opportunities going forward?

Let me answer that at the highest level, and then I'll let Scott cover sort of capital allocation and the rest. So we -- when I first got here, the first thing I did was stop the acquisition train. We did not buy anything for 2.5 years. And we did that so that we could integrate the 50 different acquisitions that had previously come before us. And we did that by updating and upgrading our technology infrastructure, building a sales organization, product organization, building a great team. And we -- our team is loaded now with payments and data talent. And, of course, making sure that our balance sheet was very strong. We paid down debt all the way through the COVID crisis, again, to the strength of the cash flow of the company. We did all of that to put ourselves in a position to do meaningful acquisitions, meaningful transactions. And that's what we saw -- you saw us do with First American. We were extremely disciplined at looking for an asset that was going to fill a gap in our portfolio. So we help businesses at all different stages of their life cycle, incorporation, logo design, web design, web hosting. And when it got had to take a credit card, we said, "Go call somebody else, we can't help." So there was a gaping hole in our product portfolio that merchant acquiring would fill. It also fits really well with our strategic direction of being a payments company, and we went out specifically looking for a merchant acquiring asset that was a platform. Going forward, when we bought that asset because it was -- we wanted the platform, it was scaled and it came with talent. We wanted those 3 things, and it brought those things to us. Those were things that we couldn't have reasonably built on any reasonable time line, so much of the market to buy. And that also helped accelerate our movement to become a payments company. And going forward, I think you would expect to see us very selectively do one of 2 things, add things, buy things that give us more scale on platforms we already have; or second, add additional capability in the markets and the businesses we already compete in. But I do not expect to see us go try to buy a fifth leg of the stool. That's just not in the -- where we're headed. And we make sure everybody is crystal clear: payments and data, that's where we are, that's where we're focused. And I'll let Scott talk about capital allocation.

Yes, sure. When we think about capital allocation, we first just start with what do we think is the right level of investment for the business? And as Barry described, our product development, our technology capabilities are greatly enhanced from where they were a few years ago, so we want to make sure that we're earmarking enough capital to build the capabilities that we need to augment our existing products and services. So we start with determining the right investment level and sort of after the First American, which was largely a debt-financed transaction, we've committed to deleverage the balance sheet. And so we are committed to reaching our long-term target of 3x debt-to-EBITDA in the long-term. And so we'll be taking excess cash for the near-term and continue to file it against our existing capital structure to deleverage the balance sheet a little bit. Again, not because we think we're over-levered. Our predictability of our cash flow is really strong. We just feel it gives us financial flexibility going forward. And obviously, we'll commit to our dividend as well. So that's where we start, and that's where we end from a capital allocation perspective.

Scott, maybe it might make sense here just for you to overview the latest outlook that the company has provided. And how should investors think about the next, maybe at least qualitatively, the next few quarters, how the model should evolve?

Certainly. The last 2 quarters, Deluxe reached a major milestone, Barry referenced it earlier in the discussion around organic growth, the positive revenue growth, excluding the benefit of acquisitions. And we certainly think that momentum that we've gathered, which is a huge milestone for the company, will continue into subsequent quarters. We've guided to Q4 of 10% to 12% revenue growth, including First American. We're now thinking we're going to head towards the high end of that range. EBITDA between 20% and 21%, which is if you look over the course of the last 5 or 6 quarters, with the exception of Q3 2020, which was an outlier for a whole host of reasons, we've sort of consistently been between that 20% and 20.5% EBITDA. We expect to be in that range, towards the low end of the 20% to 21% range for the quarter. I receive questions around interest expense and depreciation often from investors because of the First American acquisition, so think about $20 million approximately per quarter of interest expense and depreciation of about $45 million, with $25 million of that being related to the First American acquisition. So look, we've got -- I feel like we have great revenue growth and momentum in the business, and we're going to see that continue into Q4 and into the new year as well. So we're really happy with where we are at the company.

Thank you, Scott. That was great. Barry, I think we got time for one more. I think one observation that I've taken away from our conversation so far is, I guess Deluxe was really very much like this product-centric kind of company at one point. In recent years, it seems like it's certainly getting more customer-centric based upon providing solutions for the end user. And it comes within that one Deluxe purview, the mantra of the business. How should we think about that helping with client retention, overall customer SAT scores and PS? I'm not sure how you measure it. But with this new go-to-market approach that you have, the way the product portfolio is kind of packaged today, are you seeing clients becoming more sticky?

Such a great question, and the simple answer is yes. The company has a great -- has had a great relationship because of its 100-year history on the checks side. But our customers have been asking and are eager to do more with us because they know we deliver over and over and over again. They already trust us with their entire portfolio of personally identifiable information when we print checks for them. So they deep trust us deeply and we deliver for them over and over and over again. So our satisfaction scores are fantastic. Our renewal rates are fantastic. It's because we do a great job for our customers. And we're leveraging that to have bring them additional products and services. And honestly, it's one of the other things we loved about First American. They have a great reputation for great customer service. And if you go to their Fort Worth offices, where the people are on the phone talking to customers, the wells are literally lined with top award for customer support, customer satisfaction. And it's been like for 20 years. There's like years worth of them because they take it so seriously. And so culturally, we're really -- we're aligned, because our company is very focused on customer satisfaction and making sure the customer is pleased with what they get from us. And so is First American. So you bring those things together, a very natural fit. And it creates more opportunity. And obviously, we've got a customer now that's buying First American that wasn't involved with First American customers buying First American were involved before because they knew Deluxe. And that will continue to unfold. Arvest is a great example. They've been a check customer for 30 years, 3 decades, and they bought 1 product from Deluxe. And in the second quarter, they bought a product from each 1 of our 4 divisions. And we continue to do more business with them. It's just a great example. P&C, a big company, P&C had been buying 1 product from us, which was data-driven marketing, and it was the single biggest deal in the company's history where we -- where they bought multiple products to help them ultimately deliver and bring a customer -- multi-hundred million dollar total contract value over a handful of years from one relationship that it was a decade old. So we are really proving this notion, you said it, of One Deluxe, that we leverage the great relationships we have, the trusted position we sit in, and we go, we simply solve the customers' problems and they're happy to do more business with us. And it's working.

That's great. Really an enlightening conversation, gentlemen. Thank you. And it sounds like a lot of encouraging things going on at Deluxe that investors should be paying attention to. But Barry McCarthy, Scott Bomar, thank you so much for participating in Citi FinTech 11. It's great to have you.

Thanks, Pete. We appreciate it.