Loading...
•
Sep 30, 2023
Donnelley Financial Solutions Q3 2023 Earnings Report
DFIN reported mixed results with software solutions growth offset by transactional revenue decline and Adjusted EBITDA margin expansion.
Key Takeaways
Donnelley Financial Solutions (DFIN) reported third-quarter results with a decrease in net sales by 4.6% to $180.0 million, but software solutions net sales increased by 5.3% to $73.2 million. Net earnings were $18.1 million, or $0.60 per diluted share, compared to $19.2 million, or $0.62 per diluted share, in the third quarter of 2022. Adjusted EBITDA increased by 9.1% to $49.4 million, and the Adjusted EBITDA margin expanded to 27.4%.
Software solutions net sales increased 5.3% year-over-year, reaching a record $73.2 million.
Net sales of recurring compliance software platform increased by approximately 8% in aggregate, led by approximately 13% growth in Arc Suite net sales.
Adjusted EBITDA increased by 9.1% to $49.4 million, with Adjusted EBITDA margin expanding to 27.4%.
The company repurchased 310,365 shares for $14.8 million during the quarter.
Revenue by Segment
Forward Guidance
DFIN is focused on investing to drive profitable, recurring revenue growth, including capturing opportunities from recurring compliance use cases such as Tailored Shareholder Reports. The company launched the initial release of their Tailored Shareholder Reports’ SaaS product in mid-October, providing investment company clients an end-to-end financial reporting solution.
Positive Outlook
- Focus on driving profitable, recurring revenue growth.
- Capturing opportunities from recurring compliance use cases.
- Launched initial release of Tailored Shareholder Reports’ SaaS product.
- Providing investment company clients an end-to-end financial reporting solution.
- Leading compliance software platform and deep domain service expertise positions DFIN well to capture recurring revenue opportunities from current and future regulations
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...