Financial Data and Key Metrics Changes - The company reported total net sales of $242.7 million for Q2 2024, an increase of $0.6 million, or 0.2% on a reported basis, and 0.7% on an organic basis from Q2 2023 [14] - Adjusted EBITDA for Q2 2024 was $87.2 million, an increase of $12.9 million, or 17.4%, from Q2 2023, with an adjusted EBITDA margin of 35.9%, up approximately 520 basis points from the previous year [16][9] - Free cash flow improved to $36.8 million, an increase of $29.8 million compared to Q2 2023, driven by higher adjusted EBITDA and improved working capital performance [26] Business Line Data and Key Metrics Changes - Software solutions net sales grew 14.4% on an organic basis year-over-year, comprising 35.3% of total second quarter net sales, an increase of approximately 400 basis points from last year [5] - The Venue product, a virtual dataroom, posted approximately 38% sales growth, contributing significantly to the overall software solutions growth [6][16] - Capital markets compliance and communications management segment net sales decreased by $9.1 million, or 7.4%, primarily due to lower capital markets compliance revenue [21] Market Data and Key Metrics Changes - The deal environment remains soft compared to historical averages, with a decline in completed M&A deals year-over-year, although IPO activity showed improvement [22] - The company maintains a strong market share in capital markets transactions, reflecting its solid position despite the uncertain outlook for capital markets transactional activity [22] Company Strategy and Development Direction - The company is focused on transforming into a solution-centric organization, emphasizing software solutions and recurring revenue models [4][8] - The introduction of the Tailored Shareholder Reports regulation is expected to create future opportunities for the company, enhancing its service offerings in compliance and regulatory reporting [11] - The company aims to balance cost reductions with investments in initiatives to accelerate its transformation while maintaining a disciplined approach to capital deployment [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve long-term financial targets despite a challenging macroeconomic environment [4][30] - The company anticipates continued growth in software solutions, particularly from the Tailored Shareholder Reports, with expectations for stronger revenue growth in the second half of 2024 [23][59] - Management highlighted the importance of maintaining a stable revenue stream through recurring and reoccurring offerings, especially during market volatility [8] Other Important Information - The company ended the quarter with $179.6 million in total debt, down from $80 million drawn at the end of the first quarter, indicating improved financial health [26] - The company repurchased approximately 317,000 shares of common stock during the quarter for $19.2 million, reflecting its commitment to returning value to shareholders [27] Q&A Session Summary Question: Guidance for Q3 margins - Management indicated that the Q3 adjusted EBITDA margin is expected to be in the mid-to-high 20s range, consistent with previous performance [31][33] Question: Venue growth drivers - The growth in Venue was attributed to larger data rooms, increased page volume, and pricing improvements, with confidence in continued growth [35][36] Question: M&A deal pipeline and guidance - Management noted that while the M&A market remains uncertain, there is optimism for increased deal activity as monetary policy becomes clearer [42][43] Question: Software growth expectations - Management expects continued software growth driven by regulatory changes and improvements in existing offerings, with a focus on transitioning to a hybrid model [59][60]

Donnelley Financial Solutions (DFIN) came out with quarterly earnings of $1.66 per share, beating the Zacks Consensus Estimate of $1.59 per share. This compares to earnings of $1.24 per share a year ago. These figures are adjusted for non-recurring items. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Over the last four quarters, the company has surpassed co ...

Exhibit 99.1 DFIN Reports Second-Quarter 2024 Results CHICAGO – July 31, 2024 – Donnelley Financial Solutions, Inc. (NYSE: DFIN) (the "Company" or "DFIN") today reported financial results for the second quarter of 2024. | | | Second-quarter 2024 | Second-quarter 2023 | $ Change | % Change | | --- | --- | --- | --- | --- | --- | | Net Sales | | $242.7 million | $242.1 million | $0.6 million | 0.2% | | Net Earnings | | $44.1 million | $37.7 million | $6.4 million | 17.0% | | Adjusted EBITDA | (a) | $87.2 mill ...

Year-over-year impact of the eBrevia disposition (2.3) % — — — (0.5) % | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------------------------------------------------|------------------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | Net organic sales change | 23.0 % (5.6) | | | % | 2.0 | % | (3.3) | % | 1.7 | % | | Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") | | | | | | | | | | ...

Company Overview - Donnelley Financial Solutions (DFIN) is a leading global provider of innovative software and technology-enabled financial regulatory and compliance solutions [4] - The company offers domain expertise, enterprise software, and data analytics for every stage of clients' business and investment lifecycles [4] Upcoming Financial Results - DFIN will hold a conference call and webcast on July 31, 2024, at 9:00 a.m. Eastern time to discuss its second-quarter fiscal year 2024 financial results [1] - The financial report for the second quarter will be released before the market opens on the same day via a filing with the SEC on Form 8-K [2] Investor Relations - A replay of the webcast will be available after the conference call on the company's investor relations website, along with the earnings press release and related financial tables [2] - Participants are encouraged to visit the investor relations website at least fifteen minutes prior to the event to register and install any necessary audio software [3]

Donnelley Financial Solutions (DFIN) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Over the past month, shares of this financial communications and data services provider have returned -4.3%, compared to the Zacks S&P 500 composite's +6.1% change. During this period, the Zacks Internet - Software and Services industry, which Donnelley Financial falls in, has gained 3.7%. The key que ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell- side) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Donnelley Financial Solutions (DFIN) . Donnelley Financial currently has ...

CHICAGO, May 6, 2024 /PRNewswire/ -- Donnelley Financial Solutions (NYSE: DFIN), a leading global risk and compliance solutions company, announced today that company management will participate in the following upcoming conferences:19th Annual Needham Technology, Media, & Consumer Conference – Tuesday, May 14, 2024 in New York City. Dan Leib, CEO, and Dave Gardella, CFO will participate in a fireside chat at 11:45 AM EST and host investor meetings.24th Annual B. Riley Securities Institutional Investor Confe ...

Part I - Financial Information [Item 1: Condensed Consolidated Financial Statements (unaudited)](index=4&type=section&id=Item%201%3A%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) This section presents the unaudited financial performance for the three months ended March 31, 2024, compared to the same period in 2023, including statements of operations, balance sheets, cash flows, and detailed notes [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales increased to $203.4 million in Q1 2024, with net earnings significantly rising to $33.3 million or $1.09 per diluted share, driven by service and software growth and other operating income Consolidated Statements of Operations (Q1 2024 vs Q1 2023) | (in millions, except per share data) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Total net sales** | **$203.4** | **$198.6** | | Tech-enabled services | $82.9 | $78.4 | | Software solutions | $80.3 | $70.1 | | Print and distribution | $40.2 | $50.1 | | **Income from operations** | **$44.6** | **$14.8** | | **Net earnings** | **$33.3** | **$15.8** | | **Diluted Net earnings per share** | **$1.09** | **$0.52** | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $867.8 million as of March 31, 2024, driven by receivables and cash, while total liabilities rose to $458.9 million due to increased long-term debt Balance Sheet Summary | (in millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $268.1 | $208.5 | | **Total assets** | **$867.8** | **$806.9** | | **Total current liabilities** | $179.9 | $201.6 | | **Long-term debt** | $204.5 | $124.5 | | **Total liabilities** | **$458.9** | **$404.7** | | **Total equity** | **$408.9** | **$402.2** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $27.9 million in Q1 2024, while financing activities provided $48.6 million, primarily from borrowings and share repurchases Cash Flow Summary (Q1 2024 vs Q1 2023) | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | **($27.9)** | **($51.5)** | | Net cash provided by (used in) investing activities | $0.2 | ($1.7) | | Net cash provided by financing activities | $48.6 | $47.7 | | **Net increase (decrease) in cash** | **$20.6** | **($5.4)** | | Cash and cash equivalents at end of period | $43.7 | $28.8 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies and financial results, covering revenue disaggregation, a land sale gain, debt structure, and share repurchase activities - On March 29, 2024, the company sold land for net proceeds of **$13.2 million**, recognizing a net pre-tax gain of **$10.6 million**, with **$9.8 million** recorded in Q1 2024[38](index=38&type=chunk) - As of March 31, 2024, the company had **$204.5 million** in total long-term debt, consisting of a **$125.0 million** Term Loan A Facility and **$80.0 million** in borrowings under its Revolving Facility[62](index=62&type=chunk) - In Q1 2024, the company repurchased **139,893 shares** for **$8.8 million** at an average price of **$62.61 per share** under its authorized stock repurchase program[83](index=83&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2024 financial results, business segments, and financial condition, covering revenue drivers, profitability, market impacts, non-GAAP measures, liquidity, and capital resources [Executive Overview](index=24&type=section&id=Executive%20Overview) Q1 2024 net sales increased 2.4% to $203.4 million, while income from operations surged to $44.6 million, driven by transactional volumes, software performance, a land sale gain, and reduced restructuring charges - Net sales for Q1 2024 increased by **$4.8 million (2.4%)** year-over-year, primarily due to higher capital markets transactional volumes and increased Venue volumes and pricing[108](index=108&type=chunk) - Income from operations for Q1 2024 increased by **$29.8 million** year-over-year, benefiting from a net pre-tax gain on a land sale, reduced restructuring charges, higher sales volumes, and a favorable sales mix[109](index=109&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Consolidated net sales reached $203.4 million in Q1 2024, driven by growth in software and tech-enabled services, while operating income benefited from a land sale gain and reduced restructuring charges Net Sales by Offering (Q1 2024 vs Q1 2023) | (in millions) | Q1 2024 | Q1 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Tech-enabled services | $82.9 | $78.4 | $4.5 | 5.7% | | Software solutions | $80.3 | $70.1 | $10.2 | 14.6% | | Print and distribution | $40.2 | $50.1 | ($9.9) | (19.8%) | | **Total net sales** | **$203.4** | **$198.6** | **$4.8** | **2.4%** | - Restructuring charges decreased significantly to **$1.8 million** in Q1 2024 from **$10.9 million** in Q1 2023[112](index=112&type=chunk)[122](index=122&type=chunk) - Other operating income was **$9.8 million** in Q1 2024, primarily from a net pre-tax gain on the sale of land[112](index=112&type=chunk)[123](index=123&type=chunk) [Information by Segment](index=26&type=section&id=Information%20by%20Segment) Segment performance varied, with Capital Markets - Software Solutions showing strong growth and profitability, while Capital Markets - Compliance and Communications improved operating income, and Investment Companies segments faced sales pressure Segment Performance Summary (Q1 2024 vs Q1 2023) | (in millions) | Net Sales Q1 2024 | Net Sales Q1 2023 | Income from Ops Q1 2024 | Income from Ops Q1 2023 | | :--- | :--- | :--- | :--- | :--- | | Capital Markets - Software Solutions | $53.0 | $43.7 | $9.5 | ($0.6) | | Capital Markets - Compliance & Comms | $91.1 | $94.1 | $38.6 | $16.6 | | Investment Companies - Software Solutions | $27.3 | $26.4 | $3.8 | $5.0 | | Investment Companies - Compliance & Comms | $32.0 | $34.4 | $7.1 | $8.1 | [Non-GAAP Measures](index=28&type=section&id=Non-GAAP%20Measures) Adjusted EBITDA, a key non-GAAP measure, significantly increased to **$55.2 million** in Q1 2024, with reconciliation from net earnings including adjustments for restructuring, share-based compensation, and asset sales Reconciliation of Net Earnings to Adjusted EBITDA | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net earnings** | **$33.3** | **$15.8** | | Restructuring, impairment and other charges, net | $1.8 | $10.9 | | Share-based compensation expense | $5.1 | $4.3 | | Gain on sale of long-lived assets | ($9.8) | ($0.3) | | Depreciation and amortization | $13.9 | $12.4 | | Other adjustments | $1.3 | ($4.3) | | **Adjusted EBITDA** | **$55.2** | **$42.4** | [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$43.7 million** in cash and **$219.0 million** available under its Revolving Facility, totaling **$262.7 million** in net available liquidity, with 2024 capital expenditures projected at **$65-70 million** - As of March 31, 2024, the company had net available liquidity of **$262.7 million**, including **$43.7 million** in cash and **$219.0 million** available under its Revolving Facility[164](index=164&type=chunk) - The company expects capital expenditures to be approximately **$65 million to $70 million** for the full year 2024, primarily for software development[157](index=157&type=chunk) - In Q1 2024, the company had net borrowings of **$80.0 million** under its Revolving Facility and used **$30.8 million** for common stock repurchases[159](index=159&type=chunk) [Item 3: Quantitative and Qualitative Disclosure About Market Risk](index=32&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) No significant changes to the company's market risk were reported compared to the Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no significant changes to the Company's market risk disclosed in the Annual Report[169](index=169&type=chunk) [Item 4: Controls and Procedures](index=32&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with a new quote-to-cash (QTC) process being implemented as a significant internal control component - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of March 31, 2024[170](index=170&type=chunk) - The company is currently implementing a new quote-to-cash (QTC) process, including new systems, which is a significant component of its internal control over financial reporting[171](index=171&type=chunk) Part II - Other Information [Item 1: Legal Proceedings](index=33&type=section&id=Item%201%3A%20Legal%20Proceedings) The company refers to Note 7 for litigation details, stating that management believes current legal proceedings will not materially affect its financial position or results - For a discussion of litigation, the report refers to Note 7, Commitments and Contingencies, to the Unaudited Condensed Consolidated Financial Statements[173](index=173&type=chunk) [Item 1A: Risk Factors](index=33&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes to the risk factors identified in the Annual Report on Form 10-K for the year ended December 31, 2023, were reported during Q1 2024 - There were no material changes during the three months ended March 31, 2024 to the risk factors identified in the Annual Report[174](index=174&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **486,256 shares** at an average price of **$64.37** in Q1 2024, with **$141.2 million** remaining available under the stock repurchase program Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Remaining Authorization (in millions) | | :--- | :--- | :--- | :--- | :--- | | Jan 2024 | 23,671 | $61.66 | 21,000 | $148.7 | | Feb 2024 | 28,690 | $63.45 | 28,690 | $146.9 | | Mar 2024 | 433,895 | $64.58 | 90,203 | $141.2 | | **Total** | **486,256** | **$64.37** | **139,893** | **$141.2** | - On November 14, 2023, the Board authorized a new stock repurchase program of up to **$150 million**, effective from January 1, 2024, to December 31, 2025[175](index=175&type=chunk) [Item 3: Defaults Upon Senior Securities](index=33&type=section&id=Item%203%3A%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[177](index=177&type=chunk) [Item 4: Mine Safety Disclosures](index=33&type=section&id=Item%204%3A%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[178](index=178&type=chunk) [Item 5: Other Information](index=33&type=section&id=Item%205%3A%20Other%20Information) On March 27, 2024, CEO Daniel Leib adopted a Rule 10b5-1 trading plan for the potential sale of up to **30,000 shares** of common stock between August 15 and September 30, 2024 - On March 27, 2024, President and CEO Daniel Leib adopted a Rule 10b5-1 trading plan to sell up to **30,000 shares** of common stock[179](index=179&type=chunk) [Item 6: Exhibits](index=34&type=section&id=Item%206%3A%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, a real estate sale agreement amendment, CEO and CFO certifications, and XBRL data files - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL documents (101.INS, 101.SCH, 104)[181](index=181&type=chunk)

Donnelley Financial Solutions, Inc. (NYSE:DFIN) Q1 2024 Earnings Conference Call May 1, 2024 9:00 AM ET Company Participants Mike Zhao - Head, Investor Relations Dan Leib - Chief Executive Officer, Board Member Dave Gardella - Chief Financial Officer Eric Johnson - President of Global Investment Companies Craig Clay - President of Global Capital Markets Conference Call Participants Charles Strauzer - CJS Securities Pete Heckmann - D. A. Davidson Kyle Peterson - Needham Raj Sharma - B. Riley Securities Opera ...