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Sep 30, 2024
Donnelley Financial Solutions Q3 2024 Earnings Report
Donnelley Financial Solutions reported mixed results for Q3 2024, with software solutions growth offset by declines in other segments and adjusted EBITDA margin decreasing.
Key Takeaways
Donnelley Financial Solutions (DFIN) reported a slight decrease in total net sales for Q3 2024, with $179.5 million compared to $180.0 million in Q3 2023. Software solutions net sales increased by 12.3%, but this was offset by decreases in tech-enabled services and print and distribution net sales. Net earnings decreased to $8.7 million, or $0.29 per diluted share, compared to $18.1 million, or $0.60 per diluted share, in the same quarter last year. Adjusted EBITDA was $43.2 million, with an Adjusted EBITDA margin of 24.1%.
Software solutions net sales increased by 12.3% year-over-year, reaching a record $82.2 million.
Total net sales decreased slightly by 0.3% compared to the third quarter of 2023.
Adjusted EBITDA margin was 24.1%, a decrease of approximately 330 basis points compared to the third quarter of 2023.
The company repurchased 208,254 shares for approximately $13.3 million during the quarter.
Revenue by Segment
Forward Guidance
DFIN will continue to invest in generating a more favorable recurring revenue mix, including capturing recurring revenue opportunities from current and future regulatory changes. In addition, DFIN will continue to prudently manage its cost structure and remain disciplined in the allocation of capital as it executes its transformation to become the market leading provider of regulatory and compliance solutions.
Positive Outlook
- Investing in generating a more favorable recurring revenue mix.
- Capturing recurring revenue opportunities from current and future regulatory changes.
- Prudently managing cost structure.
- Remaining disciplined in the allocation of capital.
- Executing transformation to become the market leading provider of regulatory and compliance solutions.
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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