BR - Earnings call transcript Q1 2018 | Broadridge Financial Solutions, Inc.

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Operator

Good morning. My name is Adrianne, and I will be your conference operator today. At this time, I would like to welcome everyone to the Broadridge First Quarter Fiscal Year 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank like call now host to turn Mr. to would over the your I of Broadridge. Relations Thibault, Investor Edings Head at Please go ahead.

W. Edings Thibault

Thank you, quarter call. first welcome to Adrianne. Good morning, XXXX everybody, earnings and Broadridge's conference

may slide of section accompany the Investor broadridge.com. and release on the earnings this Our call be found Relations that

Gokey, Jim on Tim Young, Financial call our our the Chief and me morning are Chief President Joining Daly, Operating Rich this CEO; our Officer; and Officer.

over to management a turn I reminders. the call Before few team, standard

regarding will factors found our we encourage involve be discussion page call, Broadridge conference Report forward-looking statements these be that refer SEC and A forward-looking can of by today's Annual complete our on of statements on of summary to faced During business. including participants to We risks. our XX-K, making Form a second risk filings, the risks slides. the for

Broadridge's can results. several will understanding We reconciliations GAAP the cash non-GAAP presentation. financial comparable these to non-GAAP measures, the their our referring including these free with believe measures measures of more underlying be earnings non-GAAP use An investors found We operating and release and and in flow. adjusted provide a also earnings in EPS, to operating income, adjusted be of of measures explanation complete

call to Rich? Let me now turn the over Rich Daly.

Richard J. Daly

morning two to thoughts upcoming Day. will our X% million. Recurring of first revenues first declined balance. is so results. acquisitions and contributed rose well growth in of event-driven to Jim quarter for strong and operating XX% as as future accounted X% recurring $X.XX. growth our X% close Adjusted then Good strong call. quarter income total revenues my adjusted Broadridge I'd on and Investor will million. the our why and distribution positioned to growth will with with our rose highlights to the an to Event-driven like revenues review delivered financials. some XX% view revenues And Broadridge X% on in overview $XXX million. Edings. $XXX resulting I for million on rose well revenue The Organic $XXX to revenue XX% Thanks, our of morning results. $XX everyone of was especially growth to start to internal EPS some growth this segments. revenues provide Tim

the saw first While profit traditionally and quarter XXXX pleased on from perspective, to good revenue fiscal to smallest building quarter report very I in am is is XXXX. Broadridge the of and the that to is momentum we a a start the off year

fiscal growth our for million. and clients. within million a business. need sales, mid-single-digit a both XXXX to our are in in $XXX how we're wide challenges in we across of and year clients adjusted range cover businesses Even GTO in fee confidence can continuing on pace a dialogs sales after closed of we clients with understand theme major opportunities their change is help discussions underlying significant XXXX, extend common face ICS active their that them transform our fiscal that The accelerate and of products. they and organizations. our remain the These having we the with to is for see reaffirming guidance recurring XX% in sales range momentum revenue A importantly the key EPS $XXX year and We ongoing XX% more growth to closed reason our record

As evolve to commitment cyber-security the them skill, a partner help innovation and who technology, they has are rapidly. to a result, more seeking

level. Our at a them very on high issues engagement those remains with

investors, the adventure X% the quarter clear first we to million elevated first opportunities, level of closing of the beneficiary a a the to good commitment was terms of P&G to this great technology, quarter, first Broadridge last governance. the rigorous clients Contest of significant investment an sales verification In transparency was showcase were these including significant and from these participants an how up year. The like in issuers, closed of third-party activity corporate have regulators Broadridge's to proxy in in year. $XX broker-dealer quarter. for We transformed process of start in off a all a contest booked Broadridge our growth. are and contributor of

of companies. than accounts. investors me accounts, by of outstanding of with represent dealer from Let processed linked respectively. Broadridge We of professionals. other processed paper and street investors. contest. ballots, billion majority Beneficial the details sharing paper institutional held processed all XX% shares multiple by the and by channels on on retail played total these team elaborate Broadridge in outstanding The vote real X.X the the institutional has that and XX% some by in came through are both vast than those shares and were are processed are time are by The than custody their shares XXX tabulated to more multiple role the more Broadridge those P&G broker including in by that that subject by on votes to shares more reviews both ensure in beneficial and retail accurately of ballots Broadridge our held bank shares in technology registered a or that by to X% XXX,XXX platform. These they state-of-the-art recorded digital

counted only Elections are that and votes the votes the basis. shared within votes on daily ensure are the to the two the from are positions. money monitor shares the all with closing. counting both accurate sides to are and over statistical your invested out systems re-checked results We've Inspector methods to and positions contest use X,XXX all duplicate we the a the and tallied, coming finalized updated accurate. minutes of to reports sent Throughout vote simultaneously and poll's The reported from verify that smaller of is last example, votes three of For ensure to to sampling also times in the times

and No is to provider ballots, this solicitors both are been not net into which of processes more Meanwhile, that even contested for costs intense and to is suggest or for this to undergoes and to neutral review. majority were the testing will our be by ability required a the distribute level It a also otherwise improve and the Four participants. results our and by of quarterly vote question. weeks instructions our of are and focus voting exaggeration tests Broadridge's manner a to the significantly counting technology Big exceed reporting resolved. NYSE. annual the a firm that expensive reduce sides, from other subject separately consistently accuracy that the Broadridge's These of third-party proxies be tabulate meetings, immediately that, votes the XX.X%. to an had take party result verification. direct Broadridge in the of commitment fought is verification, constantly play the made result proxy tally is is the efficient on our the not a from in it longer procedures all by Another of independent critical and resolve. results our the process platforms. all vast the The role independent to registered these if contest, timely part of accounting no commitment take and in investment closely SEC result and standard accuracy we those decades far have It the basis gathered report shareholders of and undergoes shares, on exceed Broadridge will accurately The annual vote of of our of we processing called the and dispute to investments fine-tune

who you also investors, refer be which role the implications article headlines. under learn tab. website found want of to contests and an wrote for I investing about our the on please the can in make to Activist Insights proxy those For continues for more broad Forbes.com, all Broadridge to

making been several on with company's they plans they boards the our out years, issuers recurring platform and the use their can to about engage Using corporate engage and these For and retail can that last investors technology, a reach communicate outlook and a case growth we basis. to our cost proactively P&G, of likely GM to ADP, the to going our so used for receptivity we many for X% be case And to than is have there what think less for part as of platform Optronics, proxy investors contest. more and the at a contest of a forward. do spent have recent

to for update Let Gokey the an over call Tim our business. me now turn on

Timothy C. Gokey

with Thank much from P&G fee discussed you, of global revenues. ICS to X% Broadridge in resulting and investor plus Rich execute played we continues Rich. well both already communications across that segments. technology in contest. operations important rose had the event-driven, role the recurring event-driven growth the revenues our and total

revenue, back first communications quarter. have Within mid-to-high growth fee recurring of X%. corporate record the points and So funds quarter on I second strong quarter the our fund/ETF mutual this, to the our will rates interim proxy in consecutive revenues now single-digit includes ETFs. we inflows about X% the fund/ETF talk and is X% governance drivers record (XX:XX) at mutual data continued the In our of interim into In in seen the recurring, continued business, revenues. recent growth. growth in This which second mutual growth reached increased

an our part in increase strong in revenues, products. by Another driver was ICS from growth driven rose other XX%, growth data-driven which

our year, accelerate other some continue decline growth impacted we wealth result new benefited NACC expected be as we products, we and sales to seeking We disclosed the losses strong (XX:XX). by closed our growth sales acquisition. in revenues by their our offset BRCC. premise by will of partially runoff XXXX. be digital fiscal declines to governance to are revenues offset These products of also example, largely wealth acquired expected the largest advisor the advisors' solutions for on the the corporate managers, we've previously products for since Last wins a of highlighted management business. the in was BRCC recorded partially in from of in reported who The the

past Let's of platforms, core (XX:XX) three to management fixed add adding Net or new our which our primarily as acquisitions to from income trade tuck-in in onboarding was processing grew are XXXX set. move fiscal extend contributed to to and compliance equity wealth a higher with GTO, volumes capabilities growth XX%, quarter we first biggest result product due sales growth, X% X% our equity of business Total (XX:XX). organic The Business. the coming quarters growth back New in to areas also and made

part quarter, during good mix global first the XXXX. A we critical franchise XXXX continues the of markets in progress and our process booked During some make in to onboarding this large of platform capital of development several this data multi-asset development positive quarter. in integrates individual platform, and the milestones first involves fabric global, program product a class our suites into that the we (XX:XX) achieve

infrastructure voting partner significant Trade the Post platform comments services to to of Our to value continues operations. on governance, financial Management to our want manage our Global seeking corporate example. talked consistently we is Management strategic back to and Post process, in ability proxy clients global to platform next-generation are the his and build from attract Rich In their invest business find about I brings who Trade middle-office one and that interest technology Global theme. just echo built how to

is Another artificial including key from investment computing, of emerging distributed our Broadridge intelligence in technologies cloud technology. developing and area capabilities ledger

a effort. spring our pilot announced market, on new solution and and Broadridge of builds technologies, important our for we coming clients with details, used risk U.S. leveraging a distributed need removing trade through repo to season. underscore for helping for obstacles reconciliation provider, a in straight working like operational record month, successful secure working while last the the last an (XX:XX) providing these participants the global upcoming This mutualizing by Pilots Natixis, repo ledger market can work to Société Blockchain-based technology development that we reducing role this play of reduce in Générale, proxy the proxy Just processing.

make deepen firms, trillion to our quarter across areas. we one, broadened leading offer be worldwide and to acquisition channel acquisitions, to at and their channels for client measure strengthen franchise of of recently mutual both Broadridge's offer we which and utilizing of Day, our clients, performing communications our with other, corporate by and product acquired mutual mutual geography, services Financial, segments. in expanding issuers select sales in of and corporate assets results existing combining issuer regulatory existing better capital fund we set needs. we'll we'll our product. data made business across Spence can to document to our ICS markets fund the Johnson's first core governance we and addition as $X XX,XXX lines covering have company, leader; In discussing benchmark the Summit continue infrastructure market value data the growth funds/ETFs, corporate Broadridge institutional are to and business, themes More small a investments Market network In October, the governance the Broadridge governance one-stop Broadridge management GTO, Intelligence Market many our businesses: and our ability our reinforced July, organic positions tuck-in governance strategic our Investor two to next talk technology long-term In attractive shopping with ways, provider assist for a our opportunities about and franchise a both well which deliver Intelligence month

communications like wealth market topics management some technology-based will the as opportunity is current emerging of technologies see evolving solutions our with shift the element our investment our of we to to performance our cloud-based exciting is platforms our clients. for like the the to the Asian commitment value to of the our common future. through to critical these continued apply You and (XX:XX) cases core digital opportunities business. to right bringing in opportunities, delivering that our will also accelerate to and use emerging Broadridge line and as A hear in European operations engaging be in the all clients' newer to about running and well market, model associates

global of continued financial corporate wealth analytics capital investment next about quarter, I of are to including talk call be our over business. the our first markets enhancing our And of Jim? of governance capabilities, in the some and that's I'll and turn complemented to data our growth for products new core are results. the by by a to now will all these our underpinned review sustained our the Jim drivers maintaining as story which as the build-out the excited of provide more and well During franchise, month. continued our drivers initiatives, management key business growth

James M. Young

call-outs Thanks, Tim. everyone. good And to morning, begin. a I'll few make

fee Recurring had X%, a strong growth we EPS. and and good margins First, event-driven strong to was activity contributed quarter. revenue adjusted growth higher in

closed in increase an saw sales. also We

and rate Second, results lower efficiency event-driven exceeded outperformance: strong factors most previously we cost the organizational to achieve planned. initiatives accounting higher with discussed first quarter's for activity, of foreign our exchange three that the our expectations currency

reminder of a event-driven revenue. Third, the about volatility

expect in of activity are a into the the we forecasting the you level million to full-year second mind, the quarter. abate have when in and Our second continued particularly quarter in contest, tax from benefited quarter, first half results compensation estimates. activity, level P&G guidance of elevated for of as the year. Please our stock-based related that visibility event-driven just noted, Rich we to first of Fourth, the in impact was keep of in we recognizing benefit contest, limited excess your $X quarterization the consider the activity

fiscal While of other which continue I with my reaffirming will per our again topics to or a it touch we are Fifth, XXXX year difficult is and with $X.XX finally, on any in $XX million very along forecast share review the precision for results. the full-year. to contribution we assume guidance,

a move recap results. quick to financial our Let's of

quarter rose revenues total revenues share. rose to operating and XX% to recurring income to rose X% $XXX to $XXX First million, adjusted million. $XXX XXXX per and X% fee EPS million $X.XX XX% rose Adjusted

In to distribution and in rising fund as closed our fee a X% X%. revenue a a was proxy $XX in was Onboarding as fee Internal or recurring recurring was partially the two sales Let's X% Event-driven recurring quarter, the activity. to and first of first growth in quick with turn here organic starting growth $XXX largest as is including offset of event-driven our was a review activity, stronger for total Recurring to the added fee P&G of proxy no by event-driven first grew revenues. quarter. revenues points quarter strong contributor. then in positive quarter, growth organic contributor. new shown drivers, very business growth and in the higher result total, also revenue total mutual contest grew revenues revenues to million, revenues slide decline revenues fee revenues. activity X, Total margin million, XX%

Adjusted our recurring will driven they fiscal year. the on-demand in combination revenues adjusted was with first low points rose to increase revenue I Turning higher leverage X. cost to revenues infrastructure. in The operating year-over-year event-driven XXXX. was like a $XXX just slide apparent of typically margins, concept. single-digit to operating support rose take Broadridge which expense maintains XX.X%. profitability, and growth. in XX% existing million fee the of an Changes in proxy basis growth because recurring voting by moment XXX in quarter marginal revenues to operating income income event-driven Growth throughout on infrastructure this higher proxy generate levels in organic

result, strong the lively or profitability on in levels increase a contest a As fourth in also around seasonally the do marginal they stock activity of when a case quarter as the do held increases. P&G,

XXXX, stronger biggest we driver. a the cost the event-driven adjusted and final first for the We expenses So, marginal than achieve income lingering outcome alignment $X.XX XX% cost were the adjusted began quarter. notably in anticipated, organizational to to initiatives to the income. quarter from activity first this goals. that adjusted efficiencies rose Adjusted achieve operating reduction and of is our our on quarter clearly fiscal our operating in operating EPS but growth profitability note as good in One income with organizational efficiency related did have contributed a fourth being less increased the one-time the

accounting by the The the to the compensation partially as XXXX. adoption diluted tax were in share guidance. average from as fiscal new share the resulting of offset a we benefit weighted purchased due in count from reduction increase a Our the adjusted of slight received a our repurchase over EPS X% share diluted the count, our stock-based boost shares course well in reduction rate was

lower rate result the effective Our last excess it basis ETB the XXX the as quarter benefit, XX.X% tax first of where quarter a as was in will to of year, largely refer here. than I or points first tax

for new full-year. the recorded to this which ETB a first we accounting I is recorded the million assumed we relative ETB quarter the the of $X a $XX million And remarks, As for an at in reminder, my outset we the guidance. as noted

above, that Excluding the share in EPS quarter. the basis XX.X%. have been in ETB the with our just $X.XX I our noted first rate tax contributed the count ETB-related on would impact, to increase a effective Coupled diluted net ETB

Turning to segments. X. ICS discuss our performance I'll quarter slide the and first GTO of

contribute segment ICS Our had driven extent recurring rose revenues basis to and X% $XXX Business strong by higher first fee recurring revenues, to the X% million a lower organic to X% up growth on $XXX an was XX%, a an margin. with event-driven earnings driven fee to revenues. Revenue internal which quarter by distribution quarter, muted million rose by ICS in no little lesser Net revenue increase growth. rose New revenues and in

rose acquisitions New backlog to through markets franchise the from fiscal by implementation growth XXXX. of Much an event-driven recurring ICS continue to before revenues the work to continues XX% extend margins. and GTO business was contributed $XX fund activity. earnings our mutual million. rose Net of volumes, record to funds continued capital Event-driven resulted into of Trading the X% nice the X% operating from as $XXX $XX years. net were noted, from GTO reach the as ETF elevated the levels growth million. of back ETFs. additional million, in earnings taxes mainly XX% rising business Broadridge created million, activity. recent and growth. leverage to of positive we to segment realize especially trades, ICS revenues the made well. mutual record of tailwind $XX organic growth equity $XX Tim strong and with XX% Business, drive X% three new Organic coming perform the pickup before to points a million on in growth rose which a trading to internal rose As strength continue GTO from remained flows help The sales up and Event-driven taxes

X. Moving to slide

CapEx year quarter was $XX In again free Broadridge on acquisition XXXX. flow by generated The October in We Jersey. the which to (XX:XX) GTO versus quarter revenue of to to business. our not A of negatively form million set. of of first a case the mutual cash item seasonally we data Summit in also Summit – discussed, the New impact share was and investment operations the Broadridge closed to is approximately acquired negative global of flow fiscal so Financial, stands front, small relocation Newark, free quarter the significant cash shareholders first return our per related October, in first million, $XX expand million no Free per share. quarter. cash expenditures quarter $XX Tim quarterly now was activity higher first $XX in made acquisition and repurchase first last is did in undertake capital million for capital the flow $X.XXX impacted we quarter, invested in had the a expenditures. lower, $XX Further which $XXX the July because that cash million any on capital fund the at in flows. the in is year. big first dividend, in

to turn unchanged. is guidance. Guidance Let's

be can items guidance XXXX year fiscal found XX. on slide Our

to to X%. revenue growth in be fee recurring of expect We the X% range

of total X%. revenue the to X% range expect in growth to We be

operating expect about fiscal margin basis We points adjusted to approximately XX%, from up XXX be income XXXX.

$X.XX per share ETB. XX% We XX%, expect including adjusted to growth estimated an EPS be to

ETB, adjusted the be X% growth to Excluding XX%. expect we EPS to

of be to flow range expect estimated free ETB. million million of We $XX $XXX to an inclusive million, $XXX cash in the

respect this levels, quarter, full-year, the sales forecast Again earnings. into the and limited second of for calls into do have accounted be we we expect first activity to with remember in levels for we in Rounding fees, of our for historically we the have or closed million. event-driven a second do expect visibility visibility quarter our half have a of $XXX to has expectations more which less line future to than down be year, out event-driven of to the the please XX% moderate that fiscal $XXX QX range not Finally, you for XXXX. million from period, above sight significantly activity to full-year

to fiscal to So to off are XXXX. sum we start a up, good

Our event-driven activity. benefited first fully results quarter strong from

up With investments business. initiative ramping us, the the busy in organizational further efficiency behind we are

track We share closing guidance topline $X.XX deliver of EPS full-year to call that, our will for assuming his hand With to to and adjusted are on XX% growth Rich ETB contribution. per for remarks. XX% I the back

Richard J. Daly

Jim. Thanks,

On on our results. to in of to a rose the adjusted X%, to good revenues start the growth Broadridge operating slide presentation, strong strong quarter calls track and activity adjusted call. in XX let's review Recurring X% up and from which XX% growth. to event-driven reported year and XX% are to the key X% points for first of contributed XX% EPS XX% our income XXXX to recurring the guidance, growth growth We're achieve revenue and EPS. adjusted

length that that year. strong opportunities efficiently you new a idea The of help will Next, we Closed to theme and Next month last enable Ready phase is journey. more enter creation is dialogs X% our basis communicate clients us for sales. more specific value Investor better Day the build adopted of clearance with forward meaningful closed is our growth settlement drive to encouraging. which look as customers, discussing is complexity among the cost activities to our that non-differentiating and reduce opportunities. And the of trading at the exciting rose are our at their drivers required greater and next Ready momentum versus they sales have with For Day. other in reduce We and activities of to hold of Investor their capital an support digitally The we with overall We importantly, are and continue momentum to our to pipeline clients

grow. they Tim of As to know businesses technology mentioned, across the our to challenges their and from face coming own margin their complexity to to continue need pressure, evolution they adapt increasing faster clients more. want if operations, move businesses relentless our significant They

innovation is to that for our position communicate Ready will technology, commitment market stronger in So, transformational has to another put clients us help key much partner Next built our part capabilities evolve. large them to be opportunities. who cyber-security to the Broadridge of help Those and that pursue clients a scale, to

corporate we mutual help For issuers, see increase between example, to investors. opportunities ETFs engagement in funds, and governance, their

services and well serve. are and corporate new issuers by that benefit investors transparent the by positioned to network grow We that of we effective making more cost and driving governance

our We market positioned become infrastructure more technology critical transform need and they their to to by help to capital are well transformative business the enabled adapt clients technologies. building new efficient

two-dimensional We navigate physical opportunities managers of clients' global on positioned we critical bottom than investment a Broadridge will mission which cloud-based as the are wealth sight to this and of line generate well is to technology-enabled, clients of future. The a into and from clear the network our email of market. mail market, line provide market. better to fixed the benefits income part is significant to communications managers. players is can and the we for see as infrastructure in capital to and our That world large evolution the have There ever also think dynamic also bring a that meaningful people. growth cost and opportunity helping more to in sustained we reduce there capabilities their capital have our impact Further, a and strengthen role in opportunities investments in is made due on we your how have with

X. we December more on excited So, share you opportunities key with specific really to about are

questions. over turn I for Before your it

the to to at we associates. and moment clients Broadridge take sits is proposition what dedication value that reported results our a our to the Their me Let you thank our serving drive heart today. of

the your for the to you over Q&A. please me Let call turn now questions. Adrianne, begin

Operator

of first comes with Heckmann A. Davidson. Peter The question the line from D.

Peter J. Heckmann

to as that going a question their an update or give acquisition, on going are Wanted How platform. just whether think, to acquirer's us was go resolved question live on Can given they're Scottrade. you I some to there? ask convert been there whether has they to the

James M. Young

Hi, is Jim. Pete. This Absolutely.

Peter J. Heckmann

Hi.

James M. Young

strengthen in going the convert most is TD during TD. good and clients status in of It And clients closed Scottrade really as transaction the I back between There to has direction. and Scottrade for protections that ourselves platform. that contract assumed have isn't allows to TD any good to change that this the available a and TD The in and occurred great They very that we the and has them really and we discussed time. There the have think TD us is previously products to this Scottrade going isn't make – platform – with all to quarter. relationship relationship intention that they're now why TD's existing the on it. over that's quickly

Peter J. Heckmann

Thanks. And proxy kind you Broadridge? it where then Rich, comment the that any of of effect into then maybe to stand potentially, going and and Okay. on probability can impacts universal

Richard J. Daly

proxy performance. terms effectiveness what Universal What meaning be participation proxy a knowledge, something and versus on proxy card we understanding right of don't receive that in of and position that investor activity to card Broadridge is contest. the what oppositions Sure. does, in enable a management's will is wrong they impact don't on used take a in a things or company's

the some with been capabilities for can effectively and have is the of deems of the on SEC taken investors, the to sitting that. this technology the have quite This we of we SEC time. deems because our in be really SEC we reported if is an the appropriate, best have, call this position implement SEC universal it has because strength a that interest proxy, While we that

transformed week. I been just and any raised the dialogs the a it this of real this a period around haven't week, So, time with that until has though SEC of contest remains for long recent even this was activity in and heard it

Peter J. Heckmann

you. Thank Okay.

Operator

The from Sandler line next question Chris of with O'Neill. comes Donat the

Christopher Roy Donat

could wanted Good and taking little seen my basing issuers morning. questions. detail something of pickup a battles in on we've that Rich, after profile activity Is of give or high this had then you Thanks you see instances if a prior new? high something you've are where seen proxy, cycles, this sort you the in we've to recently. over profile on your the to receptive for are more comment more products products governance proxy us these think

Richard J. Daly

an back something past. Chris, in the This it's question. has to great a evolution, this been is going

are split to enormous by at detail massive there's contest. vote. So, calls to shareholder, the up in give I'm call. took $XX pop-ups this that that just read told the repeating little for a RedZone had the on P&G they institutional meetings been have who in We're I've that investors, if not you been a down they Not situation, of place that to a talking of watching I've to reading, small a other come retail what recent spent cost insignificant in more amount phone let to views. it's to me an you on money shareholders get these of but money. try their was a press recent An phone amount retail because on Sunday outreach were investors here. people likely contested about

I CEOs okay. CEOs, a clicks, area many the your So into right. small in phone We with street companies that basis. have you said, know, place, XXX-plus you this of in all on from as but can messages the and technology on sending it's your but put three percentage, send side, very we given a category recurring vote on good in hygiene, still proxies can the are the

process an is You cost in very, it's We're recurring a majority to reasons retail to any have to technologies care effective why is a rate, all is is class the a of do you could you just basis have investors there communicate on to that that all pick who can are just can technology-enabled and could who who reach on shareholders not company. identify right, don't and in wrong we strategy, right, retail wrong. What actively get we customers activist in it going good companies follow and matter, asset and percentage, communication we an is basis. exists, right, for a for the who involved because enable percentage with of just very their a high even is many the candidly selectively a to believe activism

paper postage and no So, cost.

and be certainly to transpires, we ad, untapped amount will and uptick you for or they all companies remains and have bias still it's right, that Super buyers have seen as amazing that consumer people way expect of with by will to a on products their spend continue shareholder time spend get a So the we most the a Bowl an area. for an companies me the as product that and that product their likely buying

we a we issuers we're So, the encourage the that value and to present going of forward. to coverage throughout for something issuer them very the ground sales be to have good market corporate America better go our create proposition North to this on feet as will force

Christopher Roy Donat

the good BRCC Okay. Is from Jim, opportunity a had (XX:XX) any losses. that one is client a That there quarters. And in losses? business X, recurring pretty slide fee then over question revenue X% all for or there growth, that Thanks. other headwind just on the client like seems coming

James M. Young

Go ahead.

Christopher Roy Donat

BRCC, attrition Yeah, you to from I that when expect was remind we for say there just abate? can the us going to

James M. Young

Yeah.

of about losses is the not that a X% is attributable BRCC. So, BRCC, all point to to attributable

normally discussed I and this quarter, about has it been tick BRCC. X% think, rate attributable X% to loss we to last year our up

a will some and up starting sales to year, less losses to next that run-off the have grow business. this the we as noticeable We year, start ramp of be

Operator

Patrick comes O'Shaughnessy line question with Raymond the from next of The James.

Patrick J. O'Shaughnessy

a in I Good acquisition on fits of was Hey. to with and ability more in it more you're hoping, how business your it? little what kind Financial speak bit bit if the cross-sell Summit doing little a could just you the describe morning. currently towards of just

Timothy C. Gokey

which these through shop expand of them reports related that, creation And and composition their the the something with their to mutual something around help them to – the businesses shop filing are about to which around business has their of the electronic today of the new would is our actual other governance documents is well, two excited part we of companies of filing bring Yes. actual helping to one-stop them. that corporate and composition documents doing of documents. is issuers, and be and particularly believe, and fund business we of is should we around into Summit one-stop the the issuers of both that. Part composition potentially the the to ability the needs, from both

one-stop ourselves (XX:XX) one from good experience. clients seen for certainly over our past the seen as our in particularly capabilities, of to the expanded have done few are years have things place. very all of seeking a We that demand sort get of demand, And in we secretaries growing we've moment sort as corporate

but not right a we into a channel have corporate large a are everyone, force It's good pretty call So excited do very significant that business sales about We we virtually have now, this. on issuers. we there.

the issuers So, with corporate nexus us. is for connected a to of we good sort growing that around annual services business think their opportunity meeting of this

Patrick J. O'Shaughnessy

that. and And my lot you what remind sales, you looks second implementation Got what Can Thank just it. depending timeline a for question. for varies your probably of for sales it typical suspect us is closed then on I closed the like? the

James M. Young

Jim. months right skewing seems to hard trend it's cycle. say be we implementation as months some kind typically the current to XX of been deals; with but typical, XX to Patrick, now. Again, Hey, longer that late We've a of a you put larger say, the of

Timothy C. Gokey

just that, even longer. the to significant definitely just add that or because it that is, XX that to to it months deals to little product detail – I'll a of related more put in are our sometimes kind can months And be Jim, XX

those there or you shorter. some much at some the the If some are other and sales, of products, are you products ones that look are the at look of if event-driven advisory shorter,

a sort as the mix product it the of few on bit blends years first dependent the So product and really across mix changes. and changes little it's

Operator

David next Evercore question comes from the ISI. The line of with Togut

David Mark Togut

late a your be joined contest won a call. parent just obviously apologize earnings for this event big another if proxy morning, Thank a I But you. quarter? would corporate material the from Good former in ADP, was asked. yesterday, example, little December I

Richard J. Daly

career just more entire revenue what that event-driven on as it, has time four that From in and Jim I'm in insight something on now you event-driven is let comments over it's been this, my my point covered consistently comment quarterly to overall. that just Dave, a grown during comment close quarter. pretty as revenue this the the it view, event-driven for So, revenue a in have we I because which second talk or annual time; to little pure the asked. relates rate specifics want we of be bit Jim not on And into to about basis. his decades, has I'll just doing will is and on

James M. Young

to activity, nearly QX, we proxy contest There'll we in for be We we QX. David, elevated some anticipate So, going that to saw anticipate mutual think levels more is be do don't healthy. levels. fund the

So, referenced, the a well-above with no in specific average clearly specific out client but event-driven call expecting we're you QX. quarter

David Mark Togut

infrastructure among big bank-led I often how Rich, terrific obviously work, Project processing these three will to to JVs longer-term costs. don't trade cut there then big banks you And the you're some think Scalpel with consortium processing mean The of Understood. do sitting evolve. and the big the assets it their doesn't? and pull extent

Richard J. Daly

the I was director tied again activity, four-decade operations when of been when I that of to me career, go let always because talked about it's sell-side back wirehouse. Dave, including a

not this, such in Tim about, played role of really really, the in of we So talked data about are of about he segment, able talked fabric those they with are things an or the services managed global clients, to as – are know all can't he GTO adopting one go well. to the with from arguably our the capabilities lots we we on is coming all around refer today, largest last has effective our and months on real about major of and clients is I major as them happy our over we banks might who announced technology, what while the What talking be actually With we out globe, planet six what only have, names, capabilities. What dialogs to right. large all platform the And people of create. the also into our use number their clients, but activity, the okay. all we our

we great have the with one GTO. used we really have to we pleased very the a performance be. – segment to right declare that of say have and believe are we could we We that So,

we Day, performance GTO, when and And these we hear segments in right that specific beyond the have at Investor all move be offerings you tangible we I I Investor will of both the as think, now, that. we reflects two think things Day forward. on be I well. great opportunities talk can the things into what go that segments and are put that pipeline, have these think you'll that can about encouraged as And we specific the by but great where needle

so So activities the Tim of the future let me GTO. give vision in now it for involved and been the he's to because

Timothy C. Gokey

definitely getting and were One to done the a continuing theme. main had. theme, mutualization question, there agreement in on largest of together a even we improves, are the as that of want around what challenges they see economy get really institutions sort order. and how to as to large the what institutions is were push and continued great It's There a lot Yeah. to that conversations coming to prioritize three and

there is technology was no available them challenge really Second that for to use. platform

the process cost is very then risk and the of third to the that important really which and of daunting. overall on people And one a build the technology largest platform, of getting high part very platform, so, the is technology having And cost. to

our as brick-by-brick sell it player someone think doing we balance like has really advertising that problem by today create can private have but a we into I of if if ourselves same can later what's is you two different that using have way, now that you a a will stepping today, sheet collective person times that at thing if one knowing that else on. problem that, instead large look

are the is my is have Trade for ramp can very be so, And getting in approach. second consortium it to regard. going our that the we're and drive And that think we new and future in are continuing and the in need the to looking last think we what things to piece Post I Management matching a time remarks, piece about need clients is market institutional we on for you receptivity is our that. you have to pure And Global the talked good and technology don't really platform,

we think is So, do an this opportunity.

different a But we've thing than the little we're But, meantime, of those it together, the always we to with believe having same open in lots we're open get think come said, I on that. building to work do bit in will about success we're form them brick-by-brick. essentially people conversations.

Richard J. Daly

Hey, Dave, be late don't Investor for Day.

minute You wouldn't want to it. a of miss

David Mark Togut

Look forward I'll seeing then. to you be Rich. there,

Operator

final Jain comes from line the question Your of Puneet JPMorgan. with

Unknown Speaker

just should maybe expect rank upside wanted considering initiatives, order how on helped I'm sense margins. Hi. cost those event-driven? going Jim, wanted wondering to question strong of for another impact much just of some that those and I between if you could Puneet. (XX:XX) expansion Connor of the get this This points is for ask we to quarter. couple event-driven on gave have a a you quarter a kind forward maybe of

James M. Young

we are Yeah. anchor full-year. full-year, first the to improvement I the XXX I'll back basis (XX:XX), for point expecting Connor mean, margin

come anticipate up certainly can XX% relatively is high clearly at earnings look actually So, of on a because small there in If can that of in this FX relatively some loss margin. up be others. more event-driven earnings our a quarter, there, than I quarters quarter, contributing actually remember we

those focused You've right tracking in in portfolio, cost increase actually we're we're other benefits of you incurring we're in you on. about trades and what talked XXX a there those the really are think without margin. future basis mind realizing about come the as initiatives that quarters. think towards that's this we're that high a But, – got coming do point I've some if at improvement Keep the going lot because of in to way, now

Unknown Speaker

Okay.

my sales million quarter doesn't maybe And this question as on then believe, full-year $XX So second well. unchanged change. I closed just guidance

guys. Just the you of rest visibility for the have acceleration wondering what into of Thanks kind the year?

Richard J. Daly

Sure.

challenge. schedules quarter that's transactions challenge significant because a at bit the months vacation first of that level Many a always The our and a multiple of is to sign-offs and client challenge. of require always add the summer

this and went really More our importantly in year-end lot – we call. an awful into

We with in sales went we is ever. we're specific this of a in that into So, segments. of you've place. dialog can better you be whether the call, There it'd than given pipeline believe really in or that's quarter where year still from excitement first both amount in heard terms the that Tim have in absolutely this me positioned the

our to and term capital the Investor to go hear to that we're have again about a decade And the benefit at same there really and we're leading Day, to platform are investments We're in in about all we're effective, we're more and more When more having one returns have and their market halo that for So, managing no they by leader on communications look their scale evolve get effectively I (XX:XX) cost to do you the the of of but me longer to has to but that see right. forward, get business the relentless from you strong into to time on the near choice watching than segment, a our When also Investor some we and because investments platform. us that okay, has a we're to looking When when can the the we've the lead platform in we've do, come our something transformation moving business, right. over pleased Broadridge the us way to solutions needs GTO think that at when the into could dialogs the Broadridge that very and many out to to select Day, cases leaders provide Tim arguably one we made the in in we scale. our we create and tie looking to your what the as can, today. a being that dialogs this adding of platform, reasons and and they their dialogs people going really to not cost paper why we're today very position you're you're only tangible it's shareholders, that the competitors being cloud, no investing who many balancing that's all that's viewed on in, ways transformation for true regularly margins you clear firms receptivity we going go are the focus competitors available discussed, you to been if made clients we're giving the as the need. Broadridge in

feel I capabilities. felt about the So, ever our feel ever about I better capabilities sales and than pipeline, better and go-to-market I've than

So, we're forward. pretty as go sales excited we about to continue ability grow to our

Operator

I will now turn Edings to the call over back Thibault.

W. Edings Thibault

Thank just you, quick Adrianne. few And notes. a

York We results office will Investor be Tuesday, discuss in New next hosting at to XX. an our our November lunch

If want we as Investor very Again, please to know, Day York so be discussed in let on today. City holding and December much me attend, will New an we you X.

Thanks. please very know. attend not If to registered have Thank for interest and much choose you your you again, me great and all wish to Broadridge have in let a day.

Operator

This concludes today's conference call.

disconnect. now may You

Broadridge Financial Solutions (BR) 8 Nov 172018 Q1 Earnings call transcript