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Mar 31, 2021
Donnelley Financial Solutions Q1 2021 Earnings Report
Donnelley Financial Solutions reported first-quarter 2021 results with revenue up 11.1% and Adjusted EBITDA up 136.2% compared to the first quarter of 2020.
Key Takeaways
Donnelley Financial Solutions (DFIN) reported a strong first quarter in 2021, with significant growth in net sales and Adjusted EBITDA. Net sales increased by 11.1% to $245.3 million, driven by strength in capital markets and software solutions. Adjusted EBITDA saw a substantial increase of 136.2% to $71.1 million, with the Adjusted EBITDA margin more than doubling to 29.0%.
Net sales increased by 11.1% compared to Q1 2020, reaching $245.3 million.
Software solutions net sales grew by 27.5% year-over-year, accounting for 24.6% of total net sales.
Adjusted EBITDA increased by 136.2% compared to Q1 2020, reaching $71.1 million.
Adjusted EBITDA margin more than doubled, reaching 29.0%.
Revenue by Segment
Forward Guidance
The company anticipates the momentum in equity capital markets will continue into the second quarter and reaffirms estimates for print-related net sales reduction of approximately $130 million to $140 million, a net earnings reduction of approximately $4 million to $7 million, and an Adjusted EBITDA reduction of approximately $5 million to $10 million for 2021.
Positive Outlook
- Momentum in equity capital markets is expected to continue into Q2 2021.
- Company is well-positioned to benefit from market leadership.
- Company remains focused on investing in software products.
- Company aims to grow software solutions sales.
- Company is focused on the "44 in '24" strategy to create shareholder value.
Challenges Ahead
- SEC Rule 30e-3 is expected to reduce print-related 2021 net sales by approximately $130 million to $140 million.
- Associated reduction in net earnings is expected to be approximately $4 million to $7 million in 2021.
- Associated reduction in Adjusted EBITDA is expected to be approximately $5 million to $10 million in 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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