Company: DLX
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0000027996-25-000107
Chunk: 26

Company: DELUXE CORP
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 26
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 Administrative Officer, General Counsel and Corporate Secretary |     |                                7 |     |                               7 |

#### Fiscal 2024 Performance

#### Highlights
During fiscal year 2024 (FY 2024), we performed well, executing diligently against our North Star objectives, and progressing our strategy to invest the predictable returns from our Print business lines to drive growth across Merchant Services, B2B Payments, and Data Solutions. We also drove continued operating leverage and made notable progress toward our earnings and cash flow acceleration objectives under North Star, despite continued uncertainty across the domestic macroeconomic environment, including periodic softness in discretionary consumer spending and persistent inflationary trends. We continued to invest in our technology and product development platforms, primarily toward our growth initiatives. Our One Deluxe cross-selling model also yielded positive results.

Specific highlights from our operating segments are as follows:

• Our Merchant Services segment revenue, which contributed 18% of our FY 2024 revenue, grew 5.4% over the previous year, driven by new merchant and customer wins across our direct, FI partner, ISO, and ISV selling channels.

• Our B2B Payments segment revenue, which contributed 14% of our FY 2024 revenue, declined 3.8% as we continued to migrate toward our SaaS offerings. We reached an inflection point in mid-2024, returning to a growth trajectory after lapping prior year one-time revenues during the first and second quarters.

• Our Data Solutions segment revenue, which contributed 11% of our FY 2024 revenue, grew 10.5% from the previous year, continuing to demonstrate our success deploying an optimized set of data-driven marketing capabilities for our customers. Our growth extended across both our core FI customer base as well as expanding adjacent customer markets.

• Our Print segment revenue, which contributed 57% of our FY 2024 revenue, declined 4.5% from the previous year, driven by continued forecasted secular declines, net of pricing activity, consistent with our expectations.

We estimated that 2024 revenue would decrease by $56 million as a result of the 2023 exit of our payroll and web hosting businesses. We set all financial goals and plans on a comparable adjusted basis to remove the impact of these divestitures. Accordingly, for purposes of compensation under our Annual Incentive Plan (AIP), we used metrics of comparable adjusted revenue, comparable adjusted EBITDA, and comparable adjusted EPS, each taking into account the impact of these divestitures.

Our enterprise comparable