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Sep 30, 2020

Broadridge Q1 2021 Earnings Report

Broadridge reported strong first quarter results, including 8% recurring revenue growth and record first quarter earnings, driven by long-term trends and strong cost actions.

Key Takeaways

Broadridge's first quarter results showed strong growth, with an 8% increase in recurring revenue and record earnings. The company's cost actions contributed to significant margin expansion. Updated guidance reflects confidence in full-year results, with increased investment in people, platforms, and technology.

Total revenues increased 7% to $1,017 million.

Recurring fee revenues increased 8% to $671 million, driven by net new business.

Adjusted EPS increased 44% to a record $0.98.

Updated full-year guidance includes recurring revenue growth of 3-6% and Adjusted EPS growth of 6-10%.

Total Revenue
$1.02B
Previous year: $949M
+7.2%
EPS
$0.98
Previous year: $0.68
+44.1%
Equity Position Growth
16%
Previous year: 7%
+128.6%
Mutual Fund/ETF Growth
6%
Previous year: 1%
+500.0%
Internal Trade Volume Growth
20%
Previous year: -7%
-385.7%
Gross Profit
$230M
Previous year: $221M
+4.2%
Cash and Equivalents
$357M
Previous year: $358M
-0.5%
Free Cash Flow
-$58.5M
Previous year: -$101M
-41.8%
Total Assets
$4.75B
Previous year: $4.22B
+12.5%

Broadridge

Broadridge

Broadridge Revenue by Segment

Forward Guidance

Broadridge updated its outlook to reflect increased confidence in its full year results. The updated guidance calls for Recurring revenue growth of 3-6% and Adjusted EPS growth of 6-10%.

Positive Outlook

  • Recurring revenue growth of 3-6%
  • Total revenue growth of 1-4%
  • Adjusted Operating income margin increase of ~100 bps
  • Adjusted earnings per share growth of 6-10%
  • Closed sales of $190 - 235M

Revenue & Expenses

Visualization of income flow from segment revenue to net income