The following is a summary of the Donnelley Financial Solutions, Inc. (DFIN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Donnelley Financial Solutions (DFIN) reported a Q1 net sales of $203.4 million, a 2.8% organic increase from Q1 of 2023.
They showed strong growth in adjusted EBITDA and an expanded adjusted EBITDA margin of 27.1%.
The Software solutions and Tech-enabled services net sales increased by 16% and 6% respectively, with a decline in Print and Distribution of 20%.
The company completed the sale of land in Phoenix, resulting in a net of $13.2 million.
Capital deployment included the repurchase of approximately 140,000 shares of their common stock for $8.8 million at an average price of $62.61 per share.
In Q1 2024, the company recorded $50 million in capital markets transactional sales, a $5 million increase from last year's Q2 and a $2 million increase from this year's Q1.
Business Progress:
In Q1, the software solutions portfolio was a key driver with $80.3 million in net sales.
The growth in software solutions was led by Venue, with a sales growth of 43%.
They are prepared to assist clients with compliance for the upcoming Tailored Shareholder Reports Regulation.
The gross margin in print increased from 20% to over 40%, primarily due to a change in emissions.
The company has seen a significant change in profits due to shifting towards more software and less print. This change is driving profit dollars and margin.
DFIN regards themselves as the compliance leader attracting future clients and anticipates a strong pipeline for their ActiveDisclosure product.
The company continues to pursue its transformation journey with investments to drive profitable recurring revenue growth and effective cost management.
More details: Donnelley Financial Solutions IR
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