Donnelley Financial Solutions (DFIN) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.98%. A quarter ago, it was expected that this financial communications and data services provider would post earnings of $0.62 per share when it actually produced earnings of $0.61, delivering a su ...

Revenue Growth and Sales Performance - Total net sales increased by 2.4% to $203.4 million in Q1 2024, driven by growth in software solutions and tech-enabled services, partially offset by lower print and distribution net sales[6] - Net sales for Q1 2024 increased to $203.4 million, up from $198.6 million in Q1 2023[26][28] - Total net sales increased to $203.4 million in Q1 2024 from $198.6 million in Q1 2023, reflecting a 2.4% growth[41] - Software solutions net sales reached a record $80.3 million, up 14.6% YoY, accounting for 39.5% of total net sales, an increase of 420 basis points from Q1 2023[6] - Software Solutions segment net sales increased by 14.6% to $80.3 million in Q1 2024, up from $70.1 million in Q1 2023[34] - Software solutions net sales rose to $80.3 million in Q1 2024, a 14.6% increase from $70.1 million in Q1 2023[41] - Tech-enabled Services segment net sales grew by 5.7% to $82.9 million in Q1 2024, compared to $78.4 million in Q1 2023[34] - Tech-enabled services net sales grew to $82.9 million in Q1 2024, up 5.7% from $78.4 million in Q1 2023[41] - Print and Distribution segment net sales declined by 19.8% to $40.2 million in Q1 2024, down from $50.1 million in Q1 2023[34] - Print and distribution net sales declined to $40.2 million in Q1 2024, down 19.8% from $50.1 million in Q1 2023[41] - Net organic sales change for the consolidated company was 2.8% in Q1 2024, driven by growth in Software Solutions and Tech-enabled Services[34] - The eBrevia disposition had a year-over-year impact of $(0.6%) on net sales for Q1 2024[34] - Total net sales for the twelve months ended March 31, 2024 were $802.0 million, down from $821.2 million in 2023[37] - Tech-enabled services revenue for the twelve months ended March 31, 2024 was $341.4 million, down from $367.6 million in 2023[37] - Software solutions revenue for the twelve months ended March 31, 2024 was $302.9 million, up from $279.9 million in 2023[37] - Print and distribution revenue for the twelve months ended March 31, 2024 was $157.7 million, down from $173.7 million in 2023[37] Profitability and Earnings - Net earnings surged 110.8% to $33.3 million, or $1.09 per diluted share, compared to $15.8 million, or $0.52 per diluted share, in Q1 2023[6] - GAAP net income for Q1 2024 was $33.3 million, compared to $15.8 million in Q1 2023[26] - Net earnings for Q1 2024 increased to $33.3 million, up from $15.8 million in Q1 2023, reflecting a significant year-over-year growth[30] - Net earnings more than doubled to $33.3 million in Q1 2024 from $15.8 million in Q1 2023[41] - Diluted earnings per share increased to $1.09 in Q1 2024 from $0.52 in Q1 2023[41] - Net earnings for the twelve months ended March 31, 2024 were $99.7 million, compared to $91.9 million for the same period in 2023[37] Adjusted EBITDA and Margins - Adjusted EBITDA increased by 30.2% to $55.2 million, with Adjusted EBITDA margin expanding to 27.1%, up 580 basis points from Q1 2023[6] - Adjusted EBITDA for Q1 2024 was $55.2 million, compared to $42.4 million in Q1 2023[28] - Adjusted EBITDA for the twelve months ended March 31, 2024 was $220.2 million, up from $209.6 million in 2023[37] - Adjusted EBITDA margin for the twelve months ended March 31, 2024 was 27.5%, up from 25.5% in 2023[37] - Non-GAAP operating margin for Q1 2024 was 20.3%, up from 15.1% in Q1 2023[26] - Gross margin improved to 54.1% in Q1 2024 compared to 48.7% in Q1 2023[41] - Non-GAAP gross margin increased to 60.6% in Q1 2024 from 54.5% in Q1 2023[41] - Operating margin significantly improved to 21.9% in Q1 2024 from 7.5% in Q1 2023[41] Cash Flow and Liquidity - Operating Cash Flow improved by $23.6 million and Free Cash Flow improved by $21.9 million compared to Q1 2023[6] - Net cash used in operating activities for Q1 2024 was $27.9 million, compared to $21.5 million in Q1 2023[30] - Free Cash Flow for Q1 2024 was $(40.2) million, an improvement from $(62.1) million in Q1 2023[31] - Total liquidity as of March 31, 2024 was $262.7 million, compared to $218.3 million as of March 31, 2023[39] Segment Performance - Capital Markets - Compliance and Communications Management segment generated $91.1 million in net sales with a 42.4% operating margin in Q1 2024[28] - Investment Companies - Software Solutions segment reported $27.3 million in net sales with a 13.9% operating margin in Q1 2024[28] - Capital Markets - Software Solutions segment reported a 21.3% increase in net sales to $53.0 million in Q1 2024, up from $43.7 million in Q1 2023[34] - Investment Companies - Compliance and Communications segment saw a 7.0% decline in net sales to $32.0 million in Q1 2024, down from $34.4 million in Q1 2023[34] Share Repurchase and Leverage - The company repurchased 139,893 shares for approximately $8.8 million at an average price of $62.61 per share during Q1 2024[6] - The remaining share repurchase authorization was $141.2 million as of March 31, 2024[6] - Gross leverage stood at 0.9x and net leverage at 0.7x as of March 31, 2024[6] - Non-GAAP Gross Leverage as of March 31, 2024 was 0.9x, down from 1.1x as of March 31, 2023[39] - Non-GAAP Net Leverage as of March 31, 2024 was 0.7x, down from 1.0x as of March 31, 2023[39] Expenses and Other Financial Metrics - Total capital expenditures for Q1 2024 were $12.3 million, up from $10.6 million in Q1 2023[28] - Share-based compensation expense increased to $5.1 million in Q1 2024 from $4.3 million in Q1 2023[26][28] - Depreciation and amortization expenses rose to $13.9 million in Q1 2024 from $12.4 million in Q1 2023[28] - The company recorded a $9.8 million gain on sale of long-lived assets in Q1 2024[26][28] - Effective tax rate rose to 19.6% in Q1 2024 compared to 13.2% in Q1 2023[41] Product and Market Performance - Venue, the virtual dataroom product, grew approximately 43% YoY, contributing to a 16.0% organic growth in software solutions net sales[4] - Capital markets transactional revenue increased by $7 million, or 17%, compared to Q1 2023, reflecting improving market activity[4]

CHICAGO, April 23, 2024 /PRNewswire/ -- Donnelley Financial Solutions (NYSE: DFIN), a leading provider of risk and compliance solutions, today announced it has met another major milestone in advance of the July 24 compliance deadline for the Tailored Shareholder Reports (TSR) rule. DFIN, the provider of industry-leading financial software, successfully test filed a full Form N-CSR based on the new regulatory requirements, including an iXBRL-tagged TSR, via its proprietary SaaS solution ArcReporting® to the ...

CHICAGO, April 17, 2024 /PRNewswire/ -- Donnelley Financial Solutions (NYSE: DFIN) will hold a conference call and webcast on Wednesday, May 1, 2024, at 9:00 a.m. Eastern time to discuss its first-quarter fiscal year 2024 financial results, provide a general business update and respond to analyst questions. A live webcast of the call will also be available on the Company's investor relations website. Please visit investor.dfinsolutions.com at least fifteen minutes prior to the start of the event to register ...

CHICAGO, April 9, 2024 /PRNewswire/ -- Donnelley Financial Solutions (NYSE: DFIN), a leading provider of risk and compliance solutions, today announced it has met a critical milestone in advance of the July 24 compliance deadline for the Tailored Shareholder Reports (TSR) rule.  DFIN, the provider of industry-leading financial software, successfully test filed a full N-CSR based on the new regulatory requirements, including an iXBRL tagged TSR, to the U.S. Securities and Exchange Commission (SEC) on behalf ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to fin ...

ActiveDisclosure Enables Collaboration; Delivers Audit-Ready ReportsCHICAGO, March 7, 2024 /PRNewswire/ -- Donnelley Financial Solutions (NYSE: DFIN), a leading risk and compliance company, makes complying with the U.S. Securities and Exchange Commission's (SEC) new climate-related disclosure mandate easy and cost-effective. "The SEC's announcement ends the years-long speculation of what will be required of companies when reporting corporate climate impact. DFIN is already helping our clients manage and re ...

Non-GAAP Financial Measures & Forward-Looking Statements - The presentation includes forward-looking statements provided on a non-GAAP basis only, without GAAP reconciliation due to "unreasonable efforts"[3, 4] - DFIN uses non-GAAP financial measures like Adjusted EBITDA, Organic Net Sales to assess financial performance[4] - These non-GAAP measures exclude certain costs, expenses, gains, and losses not indicative of ongoing operations[4] - Free Cash Flow is defined as net cash flow from operating activities less capital expenditures[4] - Organic net sales is reported net sales adjusted for foreign currency changes and the impact of acquisitions and dispositions[4] Consolidated Financial Performance - Consolidated Non-GAAP Adjusted EBITDA for 2023 is $207.4 million [10] - Non-GAAP Adjusted EBITDA Margin % for 2023 is 26%[10] - Consolidated Net Sales for 2023 is $797.2 million[26] - Trailing 4-Quarter % of Net Sales: Software solutions is 37%, Tech-enabled services is 42%, Print and distribution is 21%[11, 28] Segment Performance (2023) - Capital Markets - Software Solutions net sales is $185.9 million[46] - Capital Markets - Compliance & Communications Management net sales is $355.4 million[46] - Investment Companies - Software Solutions net sales is $106.8 million[24] - Investment Companies - Compliance & Communications Management net sales is $149.1 million[24]

Financial Data and Key Metrics Changes - In Q4 2023, consolidated net sales were $176.5 million, an increase of $8.8 million or 5.2% year-over-year, driven by higher sales in Investment Companies Compliance and Communications Management segments [52][41] - Adjusted EBITDA for Q4 was $41.3 million, a 5.1% increase from the previous year, with an adjusted EBITDA margin of 23.4%, consistent with Q4 2022 [21][54] - Free cash flow for the quarter was $56 million, a decrease of $2.5 million compared to Q4 2022, primarily due to higher capital expenditures [29] Business Line Data and Key Metrics Changes - Software solutions net sales reached approximately $293 million for the full year, a 7% organic increase from 2022, with Venue dataroom revenue growing nearly 11% to approximately $110 million [4][43] - Capital Markets Software Solutions segment net sales were $48 million in Q4, a 12.4% organic increase, driven by Venue's growth [22] - Recurring compliance product ActiveDisclosure, including File 16, saw a decline of approximately 2% in Q4, primarily due to lower Section 16 filing activity [23] Market Data and Key Metrics Changes - The overall event-driven revenue decreased by approximately 18% year-over-year, reflecting continued weakness in capital markets [11][3] - The company expects the Tailored Shareholder Reports to generate $20 million to $25 million in revenue for 2025, with a half-year impact anticipated in 2024 [13] Company Strategy and Development Direction - The company is transitioning towards a higher mix of predictable revenue, with expectations that by 2028, 80% of revenue will come from recurring and reoccurring sources [34] - The focus remains on accelerating the growth of recurring revenue while maintaining share in traditional businesses, with continued investments in regulatory and compliance software [37][65] - The company plans to invest approximately $60 million annually from 2024 to 2028 to support long-term organic growth [35] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic headwinds and geopolitical factors are expected to continue affecting deal activity levels [31] - The company anticipates consolidated first-quarter net sales in the range of $210 million to $220 million, implying an 8% growth compared to the first quarter of the previous year [31] - Management expressed confidence in the company's ability to create value for stakeholders through disciplined capital allocation and strategic investments [36][78] Other Important Information - The company completed the sale of eBrevia, resulting in a pretax loss of $6.1 million, as it was deemed to have limited standalone value [17][49] - A new share repurchase program of up to $150 million was authorized, reflecting the company's commitment to driving shareholder value [50] Q&A Session Summary Question: How sustainable is the growth in Venue given the volatility of the M&A market? - Management indicated that Venue's growth is more stable than the broader M&A market, with a 26% growth in Q4 despite a sluggish market [83] Question: Can you provide more color on the assumptions baked into your near-term guidance? - Management noted that while they anticipate a significant percentage increase in transactional revenue, it will still be below historical averages [87] Question: How does the Tailored Shareholder Reports revenue opportunity compare to the overall market potential? - Management believes their integrated compliance solution positions them well to achieve targeted market results, leveraging their full spectrum of services [92] Question: What is the expected margin contribution from Tailored Shareholder Reports in 2025? - Management expects the margin to be above historical print margins, estimating an incremental margin of 40% to 50% [107]

Donnelley Financial Solutions (DFIN) came out with quarterly earnings of $0.61 per share, missing the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.61%. A quarter ago, it was expected that this financial communications and data services provider would post earnings of $0.52 per share when it actually produced earnings of $0.72, delivering a su ...