Broadridge(BR)2024-11-05 16:12Financial Data and Key Metrics - Recurring revenue grew 4% in constant currency, driven by governance and capital markets franchises [8] - Adjusted EPS was 57 million, up 21% from the previous year [27][38] Business Line Performance - Governance Business: ICS recurring revenues rose 5%, driven by strong sales and investor participation growth [12] - Equity record growth for companies processed during the quarter was 3% [13] - Fund and ETF position growth was 6%, with strong growth in passive and money market funds [15] - Capital Markets: Recurring revenues grew 5%, driven by new sales and higher trading volumes, particularly in fixed income [20] - Wealth and Investment Management: Recurring revenue declined 4% due to the E-Trade deconversion, but underlying growth was 6% [23] Market Performance - Equity position growth was 3%, impacted by the mix of companies hosting annual meetings [13][46] - Mutual fund and ETF position growth was 6%, with mid-single-digit growth expected to continue [47] - Trade volumes rose 10%, led by double-digit growth in fixed income [48] Strategy and Industry Competition - The company is focused on democratizing and digitizing investing, simplifying trading, and modernizing wealth management [9] - The acquisition of SIS strengthens the Canadian wealth business and accelerates innovation in that market [10][24] - Broadridge is leveraging AI and data management investments to drive innovation across its platforms [6][21] Management Commentary on Operating Environment and Outlook - Global financial markets remain robust, with healthy demand driven by long-term trends like digitization and regulatory changes [6] - The company is on track to deliver strong full-year results, with recurring revenue growth of 6%-8% and adjusted EPS growth of 8%-12% [11][32] - Management highlighted the resilience of the business model amid geopolitical uncertainty and market volatility [6][7] Other Important Information - The company completed the acquisition of SIS for approximately 60 million in revenue for the full year, adding over 1 percentage point to Broadridge's growth [92][96] Question: Was there any unusual pull-forward in sales this quarter? - The strong sales performance in Q1 is not considered a pull-forward but reflects a good start to the year, with the full-year sales outlook remaining unchanged [98]