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Jun 30, 2023
Donnelley Financial Solutions Q2 2023 Earnings Report
Donnelley Financial Solutions reported second-quarter results with record software solutions net sales.
Key Takeaways
Donnelley Financial Solutions reported a decrease in total net sales by 9.1% to $242.1 million, but record quarterly software solutions net sales of $75.7 million, an increase of 5.7% year-over-year. Net earnings were $37.7 million, or $1.24 per diluted share, as compared to $46.0 million, or $1.42 per diluted share, in the second quarter of 2022. Adjusted EBITDA was $74.3 million with a margin of 30.7%.
Total net sales of $242.1 million and net earnings of $37.7 million, or $1.24 per diluted share.
Record quarterly software solutions net sales of $75.7 million, an increase of 5.7%, or 7.9% on an organic basis, from the second quarter of 2022.
Adjusted EBITDA of $74.3 million and Adjusted EBITDA margin of 30.7%, down 30 basis points from the second quarter of 2022.
During the second quarter, the Company repurchased 42,987 shares for $1.9 million at an average price of $43.59 per share.
Revenue by Segment
Forward Guidance
The company is pleased with the momentum in software solutions net sales and believes it is well positioned for future growth. They are also encouraged by the level of capital markets transactional activity so far in the third quarter.
Positive Outlook
- Momentum in software solutions net sales
- Well positioned for future growth
- Encouraged by the level of capital markets transactional activity so far in the third quarter
- Acceleration of software solutions net sales, which resulted in record quarterly net sales in software solutions
- Recurring compliance software featuring ActiveDisclosure and Arc Suite delivered net sales growth of approximately 9% in aggregate
Challenges Ahead
- Nearly 40% reduction in transactional revenue driven by the ongoing weakness in the capital markets transactions environment
- Net sales decreased primarily due to lower capital markets transactional volumes, which decreased approximately $28.1 million year-over-year
- Net earnings were $37.7 million, or $1.24 per diluted share, as compared to $46.0 million, or $1.42 per diluted share, in the second quarter of 2022
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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