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Jun 30, 2020

Broadridge Q4 2020 Earnings Report

Broadridge reported strong Q4 2020 results with adjusted EPS growth of 25% and recurring revenue growth of 14%.

Key Takeaways

Broadridge reported strong Q4 and fiscal year 2020 results, including 10% recurring revenue growth and 8% adjusted EPS growth. The company's performance validates its business model and value proposition, giving confidence in its long-term opportunity. Broadridge achieved its three-year objectives for recurring revenue growth, margin expansion, and adjusted EPS growth.

Total revenues increased 12% to $1,362 million.

Recurring fee revenues increased 14% to $930 million.

Adjusted EPS increased 25% to $2.15.

Closed sales were $112 million, a 55% increase.

Total Revenue
$1.36B
Previous year: $1.21B
+12.5%
EPS
$2.15
Previous year: $1.72
+25.0%
Equity Position Growth
11%
Previous year: 6%
+83.3%
Mutual Fund/ETF Growth
2%
Previous year: 5%
-60.0%
Internal Trade Volume Growth
27%
Gross Profit
$478M
Previous year: $400M
+19.5%
Cash and Equivalents
$477M
Previous year: $273M
+74.5%
Free Cash Flow
$500M
Previous year: $379M
+31.7%
Total Assets
$4.89B
Previous year: $3.88B
+26.0%

Broadridge

Broadridge

Broadridge Revenue by Segment

Forward Guidance

Broadridge anticipates recurring revenue growth of 2-6%, total revenue growth of 0-4%, an increase of ~100 bps in adjusted operating income margin, and adjusted earnings per share growth of 4-10% in fiscal year 2021. Closed sales are expected to be $190-235 million.

Positive Outlook

  • Recurring revenue growth of 2-6%
  • Total revenue growth of 0-4%
  • Adjusted Operating income margin increase of ~100 bps
  • Adjusted earnings per share growth of 4-10%
  • Closed sales of $190-235M

Revenue & Expenses

Visualization of income flow from segment revenue to net income