BR - Earnings call transcript Q3 2018 | Broadridge Financial Solutions, Inc.

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Operator

Good morning. My name is Conesia and I will be your conference operator today. At this time, I'd like to welcome everyone to the Broadridge Third 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 to over like Mr. the turn would to call I Investor Edings of Thibault, Head Relations. begin. you Sir, may

W. Edings Thibault

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

may the of section accompany Our Investor broadridge.com. slides release on the and this earnings 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.

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

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

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

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

Richard J. Daly

delivering with to XXXX our also morning begin our is strong full I'm And year-end, deliver business. with Thanks, well. note us results the on months you quarter third for go highlights on quarter report as I'll to morning of before firmly Edings. this Good to to that joining how only all strong year Jim two of call. our on I'm this track another delighted pleased to the Broadridge EPS drivers two some discuss Tim will our of guidance. adjusted will you thoughts investing outlook close balancing, and I behind for short-term on then walk including for will results, the segments, X. attractive, the while increase we additional the our XXXX, are our through long-term. earnings in then review fiscal performance financials slide with and

adjusted So, rose X% billion, let's Strong recurring X% by in growth strong in a to operating Broadridge income revenue by by extent, increase quarter helped event-driven margin third to related increase EPS $X.X revenue recurring a to to rates, share. also contributed further of in year-over-year revenues. and a Total equity fee tax tax $X benefit a the per and Broadridge's increase revenues started. organic lesser expansion. a XX-basis-point compensation driven in growth XX% adjusted reported and, growth EPS was in corporate get which in results. XX% reduction resulted adjusted to X%

confluence from quarter third a our contributed to of numbers Our strong factors, which benefited results. positive

visibility excellent XX results annual important have us single we The consistent most the our months. of trends, sales growth. data of demand was growth. several over on-boarding our a and the for our revenue analytics factor to These include which see past and Broadridge's first trends the been the backlog remains organic driven benefit The growth we sales from revenue that the and That into backlog strong long-term years. over continuing mutualization biggest XX of driver increasing next have organic reported the the engine gives

customer management helped as increase the the volumes was driver markets our trading second capital Higher well volatility communications our businesses, The in line. as product in occurred wealth market quarter. that and

quarter. a the very factors three single strong event-driven was continued moments. strength Tim period produced together this these revenues. coming a factor in more third few discuss in will in The detail a All just in of

remain from on the fiscal close were Closed end million a million Broadridge sales XXXX. the XX% quarter, favorite through to targets Year-to-date healthy my sales our year $XXX topics. Now, third in expect track to in we ago. recorded hit very down let's move to full March. year one as We sales of of Closed $XX a

Closed quarterly historically be timing towards any the Broadridge's have of influenced large know, by heavily you for deals. sales quarter been quarter, results As single weighted can and the results fourth

where and in Our clients. strong progressing pipeline dialogues it are today includes well, we is quarter. deals some very in large fourth these to are we more or one and contribute expect deals, dialogues These active with meaningfully of the

discuss Next, let's guidance.

income We margin, and as have Closed on reaffirming sales. flow, our guidance and adjusted revenue, are recurring our prior adjusted revenue, I just free EPS guidance said, raising total cash operating

grow report sales Day over this and achieve lineup markets on track governance a retention strong its franchises, We of positioned have and operating growth objectives. we year, of have are: to three-year and years our the so adjusted the a one, is to more profits of into investments touch months I'll December. terms three, year out to of to made full-year advantage on back to Broadridge my high past deliver outlook in business. growth to position combination XX% results why this client already Broadridge financial take the investment, at nine market clients tax for well to the to capabilities year, the numbers; capital reason reported XX% the XXXX, of are results wrap-up. XX%. The from In benefit we to strong two, higher-than-forecasted EPS, our Incorporated strong point the over value our guidance line this strong our enabled five and and equity our into on reinforce compensation; Broadridge of broaden its With kind targets is why are we fiscal from morning sight three-year our on we is the our deliver XX% EPS we and we past we XX% as the see the to the to adjusted our some in position strengthen to of guidance for increased our at laid our raising believe first rate. this we redeploy product in Investor for new opportunities

example, the of have result the For the is fund growth ETF in to benefit physical we if by build corporate Qualcomm the be from and of issuers universally mutual efficiently proxy is strong of infrastructure be ability process this what Broadridge gives as a message all pit they which will complex parties with like Remember, counted equity such we and investments Broadridge will quickly our votes direct ensure is that Broadridge Broadridge. underpin to applied, underlying positions the their and and technology snake P&G or arise, tens do past Corporate to investors were in know rely that the funds accurately quarter, on governance. count situation work would millions communicate And when with to and votes. delivered that shareholders accurately, and performed never made fight. standards millions high mutual of another conflicts confidence there that

for made our ability the underlying demand to products a acquisitions data data a well we integrate additional acquire benefit data to our of to addition, analytics In solution tuck-in result from set is as products. into Broadridge's result as our direct investments and have the of

it with trading provide maintaining in Broadridge today to our They bear using the cost demand. Broadridge and from that and post-trade spikes is deliver the handle franchise technology that investments have the enhancing and they markets them volume capacity and we By kind integrated made of processing position on do The our to capacity global building create solutions helps excess volatile periods. other capital past a to know strong These investments business. benefit technology processes clients. to have platforms. and associated in to Broadridge, scalable invest in put our made clients Broadridge's we Finally, of are continuing the to will in we have have not

Broadridge's only to now will more to strong a results months. our achieve its over long-term that to and are results. deliver increased in-depth over objectives and past a incremental three-year review see the our combination We investments Tim believe spending we operating opportunities lower and this benefiting rate operating year, these the sustainable provide will the investment I ability strengthen few we of call the Given of growth. ahead turn further results have tax

Timothy C. Gokey

Thank you, Rich.

to and seeing our momentum I'm the two businesses the saw is an strong both turn time, our about longer which Technology the and both segments, quarter. Let's our driving Communications performance segments, term with the in segments. of our market Operations that same align are of Global pleased teams to from operational the to work we underlying these by volatility growth X both are trends for testament Investor update slide also our in drivers. benefiting a uptick we in on the In At really segments growth. are

growth positive fee product Investor where total across growth really reported with rose our to nice X% of Communications, recurring here by start groups. X%, see is Let's led revenues. What's all revenue in revenues

very recurring Excluding fee X%. healthy a customer communications, ICS rose revenues

products. Broadridge ETF Importantly, from governance healthy trends strong demand growth to Mutual fund into benefit continued growth. fund which double-digit mutual our translated X%, and interim was revenue in record core

data side, our Morningstar hard year, we impact and XX% acquisitions generated and growth acquisition by the Fund benefited these fund XX% was lesser in We which higher But place. rose shift of quarter, that fund volumes and oriented that quarter. translate our Other capabilities product we into Financial in record roughly more XX%. impact. Spence and our stock activity from we much Revenues proxy from clients. for Summit point, the nicely expect strong to of trading of extent, growth (XX:XX) and takes the product proxy On management prospectuses small the With from ICS revenues visibility rose Customer led year product fourth product in activity solutions Johnson we in the muted by gratifying than to data made full higher growth revenues strong build driven quarter; two stock see into also grew earlier to having set mutual solutions X% of products. equity expect and growth much more record by communications to was X%, is post-sale this into mix the and at be worked now the it's of trends distribute revenue, ICS growth we the suite mutual line. an of this increased data-driven wealth Advisory where

X%. that events decline mutual with by was in more the revenues offset revenues some That proxy recent mutual of revenues the to flat, of up as Event-driven activity activity as we expected four ICS contest. from equity pickup, than fund losses. the the however, to increase proxy from of quarter, much client lower than in expected event-driven lap that started declined were wins customer coming the third were last Qualcomm offset communications new Excluding as related sales quarters. larger fund proxy an

fourth forward Looking be lower revenues the to quarter, expect in event-driven to XXXX. we than

from mutual benefited coming complexes, large the vote revenues especially As level in of as event-driven as a of fourth well proxy you a don't know, fund see fund significant quarter, mutual largest We on at this the contests. activity either. ETF And one and moment don't quarter we see side. the contest XXXX the similar two equity equity

which strong Let's growth. very segment, XX% turn reported to revenue our GTO

As wealth is market on-boarding new of both capital overall biggest clients the driver our typically management in the growth. sales remains and case,

one milestones The During was with the to quarter And brought also our growth online these another across the equity volumes of large demand. to we Japanese with internal market which operations a we platform. but volatility our quarter, New increased we York. continue in global (XX:XX) on client post-trade Both successfully in platform, client new the strong contributed platforms. technology significant growth the trading see sharply in brought global up implementation to Internal driver. global biggest significant strong platforms our proof-points major of client a represent management of

benefited our also increased services. broadly, we demand to capital from continue markets wealth strong management and We of professional and More managed see solutions.

initiatives dialogues several to under and and of had clients with remain clients cut we intense their revenues, grow large costs. reshape pressure transformational businesses our Additionally, our

theme bringing Beyond conversation their changes, these additional consistent opportunities new is of clients to my and model challenges of with a technologies business in businesses. recognition the

the see to in setting Our turning these us blockchain to and are we investments others. transitions, and technology from are them Broadridge making manage clients digital, and AI, cloud they help apart

On our blockchain meeting ledger end-to-end information the two maximize solution the first that conducted blockchain investments to we benefit we have North potential transparency. blockchain the on parallel blockchain issuer. could American in and automating increasing for distributed of That conducted U.S. make past market, highlighted anonymous built for the bring annual the each sharing process we distributed part, proxy technology, and meeting terms a standard of benefit of now ledger After years, running for technology continue in an the to technology.

more have We proxy as the two well. vote for fourth blockchain quarter on tap

tangible ActivePath more acquisition with communications ActivePath integrate We our March. digital the also significantly to with digital capabilities excited lower enable and of customers capabilities existing with effectively costs. to products in our our We're communicate to took a to clients enhance their

and examples bring challenges in investment they of will them passing that enabling are (XX:XX) Broadridge digital get how these clients to Our is our on of blockchain the while communications the opportunities face tomorrow. both shifts today, focused ahead

that Our for us are clients it. and commitment rewarding see

and For me, making time our Broadridge. it's investments the momentum Between for our making we're we're reality in an at seeing Ready a capabilities, be current exciting and new the in clients. to technologies strong we're Next, business for

for over a Jim? to turn now of me Jim Let results. review financial our

James M. Young

good morning, everyone. and Thanks, Tim,

market I'll higher few robust quarter strong very benefits. call-outs. results our start third a with and trends, have my benefited We continued operating revenues event-driven tax from remarks as activity, strong

organic to be pickup also growth saw drove our on-boarding growth, new in revenue boosted quarter, organic X% growth internal In engine First, the of points growth. this continues growth, of organic and a which the sales. recurring of we nice four

we in The mutual the fourth course revenue the client our in Tim trading well our the interims and most growth. noted, a growth bulk sharp equity are pickup of of as fund benefiting margin as stock proxy continued in the when As quarter from volumes, is earned. record latter matters at

activity than activity had modestly Second, Qualcomm we generated was event-driven level higher a In revenues. particular, contest the proxy Event-driven anticipated. stronger anticipated. of than

event-driven we activity the discuss I'll ahead in Looking quarter, a expect in decline later as fourth remarks. my to

here, from on from statement. in the Third, tax benefit recall, into provision benefit will most changes ETB income flow of moved as the you equity-based the or have cash as to excess the impact refer standards will tax the I statement accounting compensation tax of

year, quarter, provision. in million we Over the third significantly ETB. just In our tax or Broadridge $X in which $XX lowered quarters recorded of the $X.XX share, first two the million ETB realized per

We are four-year slightly historical average which volatile ETB well, assuming year-to-year. Fourth, very that fourth year would is full the as a in quarter our similar put the investment. level recognizing of above ETB

at XX%, numerous cloud the and see fiscal will EPS spend XX% guidance to initiative, XX% Incremental for to adjusted growth of XX% making our of opportunities XXXX. level guidance last, digital include results, to market, are from infrastructure guidance. long in our strengthen at in initiatives. diluted mutual XX%, a in XXXX and our incremental to the ETB. our operating XXXX, These enhancing term. a increased guidance fiscal we XX% measures. increase the in the XX% EPS fiscal investments to range The reaffirming are XX% the guidance our we in strong and to supporting of building investments our our year our business for our growth to we've from range and funds aimed reflects investments Given we other offerings, investments projects over and raising out data pursuing medium efficiency executing Fifth We're

revenues MiFID In GTO contributor. to growth. the X% revenue page revenues biggest across modestly billion revenues. Let's starting growth. revenue recurring, trade Message Acquisitions, uptick revenues a the combination X% business third Summit in and in and of of organic About managed to to X% event-driven Distribution segment million organic as the with also growth. from increase slide $X.X document revenue. in growth distribution to recurring our with one increased was year-over-year the contributed shown the and $X on and up rose contributing X% by primarily largest sales the our mainly business, four with slide recurring quarter, XX% point revenues quarter, nice this of to point points. move the to fee Event-driven were Closed contributed and clients' contributor and growth points came Recurring growth overall another grew management a all-in, fee five in new solution, board driven activity X. third total Internal revenue a noted, On-boarding or translate two-thirds the growth. Automation quarter, higher contributed revenues the our to event-driven, here rose where, revenue of equity services volumes our Tim our into professional as

nine-month to the ahead will to rose million slide skip slide in the find X. income and year-to-date results can I operating XX $XXX Adjusted operating You to revenue on Adjusted quarter. rose X, XX% margin third basis points income XX.X%.

higher lift from from internal tends volume a to Our the profitability margins benefited a is which The activity that got our quite of and over growth existing essentially growth, marginal of organic favorable. infrastructure. be we organic growth, strong

contributed the nicely uptick trading this margin in quarter, to volumes So, in expansion.

revenues higher activity was income. operating The adjusted higher and by offset growth addition, healthy in to volumes impact event-driven In investments. to the also those partially contributed incremental event-driven

lowered ETB, last tax the impact from of in projects. third rate level driver we and effective XX% the We fourth came down performance $X.XX $X.XX $X or up pick quarter Tax the to $X.XX the from in by of in expect equity of Adjusted growth XX.X the with the investments lower Act. per a of including the grew ETB points. from out was $XX biggest related tax was in operating decline the quarter, provision, the Broadridge's from from close the that to The as growth Approximately XX.X% tax those share. million effective year. of the tax number coming period core same XX.X% rate $X.XX compensation, rate balance which to percentage EPS a

which been compensation, to than ETB solely the the of ETB stock-based the for rules the income partial which accounting but part from for impact new flows. adopting not Again, as included in of this rather year cash be of required first statement the kind benefit, is effective the that Excluding this benefit tax is have would Tax reflects Act. rate Broadridge, XX.X%, unusual

can the slide EPS GTO results. You operating move income will segment year-to-date on results of and ICS discussion our slide XX find for nine-month XX, and and brief to a I

had ICS revenues recurring last and ICS million, rose taxes Acquisitions over Also, to large contest X% Our revenues from point higher rose the strong recurring segment activity. million. by earnings one rose recurring revenues. proxy basis, fee mutual growth. New fee with a with for organic driven On to $XXX ICS earnings from contributed internal higher event-driven up X% solid compensated growth. X% additional revenue balanced Net Business revenue $XX XX% and activity year's up XX%. to quarter ICS an grow growth before both an fund

Our continued million. GTO volumes. a growth. $XXX well, is growth, growth which higher in The of was a perform the strong very by biggest to its trading growth XX% of Organic overall to boosted strong segment modest acquisitions. points contribution seven growth growing XX% total, with the revenues was contributor to impact for accounted very from In part internal organic only internal

losses, by to associated an eight with Revenues GTO higher marginal carry matches tend driver quarters. sales-driven the growth XXX important a almost taxes profitability, expansion margin two in rose and grew to Excluding earnings added were higher GTO those which of basis $XX last the volumes quarter. the and trading points. performance million degree segment before margins points, volumes to the of XX%

free quarter. $XXX third the third and slide XX, to $XXX flow Moving of million in year-to-date. invested in Broadridge million expenditures $XX in quarter capital the We million generated cash

and acquire capabilities to to our $XX to Morningstar suite to enhance further both and of governance acquire the add businesses, spent Advisory across digital our product solutions. Fund line ActivePath also customer our data-driven We communications communications to million

strengthening make we Tim continued have blockchain and noted, in Rich to As our progress capabilities. also

development final fiscal of the we we fact, triggered for in the Inveshare, acquire quarter, we total All of achievement have the acquisitions. the approximately investment year-to-date made million the the assets million during tranche the technology spent in, of XXXX. blockchain to deployed of In $XXX certain payment $XXX milestones

Finally, form to in we continued the return dividend. to capital our shareholders of

is to XX. on guidance, turn out Let's which slide laid

sales. for guidance EPS to for XX% growth adjusted flow, revenue and from XX% Closed We growth, cash recurring XX% growth, are margins, of and guidance total reaffirming our our to raising free revenue XX%,

to are In GAAP XX%. our addition, to EPS we growth diluted XX% raising guidance

Let me point. thoughts a share on each few

guidance continue X%, X%. X% is year-to-date the be fee to in range recurring revenue With expect unchanged. recurring of growth growth Our of QX we to revenue to

X% to fourth growth total to also which revenue We expect X% continue year-to-date the be X%, growth implies with quarter. to in contraction approximately

track year. lapping Our XX% the a to for outlook by fund while some activity last XX% due record decline assumes event-driven will to year, fourth revenues, QX in still quarter in proxy significant on mutual of

addition, relatively In although Qualcomm, equity our in to spin radar activity contests P&G, proxy quickly. see not contest similar can at ADP those we up or significant do

QX our year-to-date, is We be fourth expansion expect margin to adjusted investment adjusted income our contraction disciplined contract goals, to coupled our quarter. also income, with maintaining approximately XX% to increased continue we The in in up investment. expect margin means operating as revenues will XX% while operating meet the that total which

adjusted EPS to XX% We are raising growth XX%, our for XX%. to outlook to XX% up from

an Our performance, our outlook our ETB increase is XX% in adjusted year forecast strong included fourth our guidance revised $XX growth for outlook to Also quarter. in for year-to-date assumption million fiscal XXXX. our EPS the in incorporates

Our in all contribute the calls for a The Netting of $XX adjusted ETB. results. $X.XX single-digit fourth basis prior $XX implies of year ETB out growth quarter. EPS million expected EPS full million this will on for net forecast

at guidance remains million $XXX flow cash million. free Our to $XXX

with shape, our capital to demand look Finally, of we on for reported ability guidance Day on With through sharing and continue XXXX to on Back plan beginning confident the objectives We XXXX. financial close, XXXX to and we two December are quarter. we our to wealth call. markets, track be at governance, in internal last investing are strong million Investor three-year these set months $XXX take fiscal Rich. million. August deliver businesses. and our as our updated with building our in Closed our Broadridge fiscal financial forward development operating in to the management you remaining, to and fiscal on expect for we noted, our range a in to $XXX through strong To Rich sales And We're acquisitions, results. business

Richard J. Daly

of recap key call. presentation. today's XX Tim. I'm slide the on Thanks, from I'll begin with a of highlights the quick

First, Broadridge reported strong third quarter results.

XX% raising operating EPS it sum momentum Next, to we're year-to-date we we And seeing in with up, performance Day achieve its to growth three-year to track To XX%. our our is guidance our pleased Broadridge are finally, the Investor business. are targets. on and adjusted

of the on the our success our One and clients, focus keys our long-term shareholders. to decade past over has value for building been associates

Our that. capital technologies five a and seven we long-term three-year objectives an our AI, important commitment next us that services are to play digital capabilities. over to the governance set. When in franchise, we cloud-based we services our in provide implicitly those reminding either and our are new sign reinvest contracts role that making of our we'll franchise or blockchain, years. markets high-quality include clients in Today, technologies to these product ensure applications, And we integrating also committing into are

XX% competitors. sets over challenges Our level long-term of has from rate why that's our drive room this and is value improve. investment increased longer-term proven us believe delivering complex our That our track differentiated year. why focus we have apart course solutions record to innovative the that And retention of I of to

as franchises, on a will found powerful past digital these The make investments, in digital it One and represents easy of typically other our ongoing call. It's websites our an is e-mail platform engagement at with I closing As AI, consider like enhancing technology apps key creation network over have to kind and decision of in built wealth of brand an blockchain growth and Investments quickly the along technologies Broadridge associates the communications capital long-term we shareholders. another opportunities (XX:XX) with content here performance, like to deliver innovative strong when and market why governance management. as well and of example easy and business our CEO, clients. decades and of to the our a capabilities last into of proud in in the Broadridge. ActivePath's new new step I'm our especially is to these security. clients interactive allow for with levels well-positioned in and our investments acquisition project month. is compose clients ActivePath, our acquisition ActivePath are income fixed a personalization, ActivePath omni-channel the investments three value year reason

all think only today, into Broadridge represent, and I've I when it I can before opportunities I'll these about just However, started have that said it's to are believe be again to great potential it a say the that at really Broadridge. getting become. it investments we making time

success. I over to fellow force Q&A, commitment the associates. turn behind a Before is to thank want Chain driving Service-Profit to Broadridge my call Their the I our

Conesia? Now, let's take your questions.

Operator

Your first question comes with from David Togut Evercore ISI.

Anthony Cyganovich

fixed Good This could morning. hoping trade and new you is David potential was income Togut. prospect on of I processing Anthony equity of behalf your Cyganovich quantify pipeline contracts?

Richard J. Daly

start to going I'm it off here.

So, you I believe activity. sales what are referring the to is

that's talk of technology quality Tim, we're as adding, attract and continues be have well for strong. deeper? those business. whether the expanding that I'm specifically very pipeline in those of these even because are making. to But we ability the to feel ability investments we how have little But overall, directly offerings have. the about the the the correlated with ask clients about Tim you to to to continue it going we're we and relationships products because investments (XX:XX) believe the the good why as We more a growing bit we relationships be again, so, clients don't about retain these to how And of our services are are comment new to make ready, clients, we

Timothy C. Gokey

a it is And of because just are. sales as cycles our are question, Yeah. multiples what the answer you our to our at annual pipeline, direct long look if sales

a the seeing is both mix continuing next really capital we revenues, governments with think to mix new clients the with seeing term is business, to that all that pipeline each need these, a to and of of take wealth. grow we're across great obviously we communications, of transform Across of long-term sort had we're it I clients, like. you that a It's And so, to news deals, And that's near to our franchises, down. layer clients. existing strong costs. what their and reduce have we're markets, And seeing

Anthony Cyganovich

Great. Thanks. That's helpful.

Just you're the of nearly as could you acquisition years completion about your pipeline two post the now follow-up, a NACC talk business? that DST

Timothy C. Gokey

Sure. to Well, want of be our remains unchanged. stewards that the good to first our capital thing say is shareholders' I commitment

channel one our been as as a value. efforts owner, to we with the all we're return we that The very and leverage having high fit being distribution remains contribute logical appropriate financial happy standard So, pretty right, strategic standards ability clear Two, viewed an can so we've strong its to-date our well. set of brand and and owner, where a criteria. there clear

have would very and successful to assure this active terms But strategy continue preferred well. has in I more little of looking I us candidly, that there activity served out results. we're to a executing very right So now, you,

Anthony Cyganovich

you. Thank Great.

Operator

Heckmann The Peter with next Davidson. question is from

Peter J. Heckmann

Good Hi. morning.

Just following till up, we'll it see wait Ameritrade wanted that just the closes had you I Scottrade completed update. to if looked said conversion. – like TD you and an give

contribution quarter we're update So, out. any there calling any in the and that

Timothy C. Gokey

about was a that Peter, question Scottrade? sorry. I'm

Peter J. Heckmann

Yes. I'm Yeah. sorry.

Timothy C. Gokey

from about in continue the same that discussed longer-term closed continue payments and we we'll to Yeah. we owner. And have as pretty them work to be deal new the together. discussions Well, with be how continues to much receive previously. That

from that there's to really discussed. So, any change previously not we what

Peter J. Heckmann

Okay.

in this fourth $XXX $XXX quarter, around And the proxy to probably XXXX six event-driven your business. about Okay. but business in the average fiscal that generated year million than to me on comments it then million more in and appears you alluded that's revenue just your

stronger proxy or to other dynamics, would years? compared that lead may there on Just based XXXX that average going six assume are on that to and for preliminarily fiscal that would prior things event-driven to market the event-driven proxy revert you trends multi-year

James M. Young

Pete, this is Jim.

to say, love shaping when business comes year, is up this As revenue terrific. our this. we XXXX which you a be record in, of entirely We is it anchor off don't

strong and forward you whole enough should look the the about look broadly as But we which revenue to or XXXX, growth set more we updating our horizon. sales in up activity but So the next activity, think business nicely really pretty there's clearly for across year us recurring August. we three-year including

Richard J. Daly

I've in predictable close things of relatively been of event-driven, four flexibility value consistently infrastructure revenue very that percentage a not fixed as the us now have, do which adding investments. recurring doing we add to going I'm Pete, nice including grown through to it's this a terrific decades. And And has strong that as although the it's to gives cost and it's at other going lots and rate, pretty

So high-quality over from period long of new of will grown there. period little grow event-driven be and time, very a continue consistently been with these of that my more to of my dialogues. have point into additive here opportunities to even anticipate But time view, bit it we'll activities blipping and that career a year-to-year technology in I has that's bring and of some may a very, for

getting shareholders For go these for opportunities good example, in base some should are better way us a as proxy forward, communications. contest, to and contest, to very we for social not their issuers with used activity consumers the that but also just way give communicate proxy giving in a

Peter J. Heckmann

over grow you're Okay. That's will grow saying this fiscal just believe it just you helpful. clarify or event-driven time? in then, XXXX, in date And XXXX will from to

Timothy C. Gokey

August well grow is and variety time. now right what thinking over think really give objectives we was very it will We our balanced over We'll achieve take a through nicely is we year. It's on Rich the the next But think you our long-term can we think growth of latest takeaway, saying in real Pete, ways. I grown perspective. a time. business

Peter J. Heckmann

quite is Yeah. clarify the Yeah. to of wanted I business just well. doing that rest question, No issue. the

Operator

Your Donat next from with Sandler is Chris question O'Neill.

Christopher Roy Donat

curious about of really care do is appears Hi. quarter you How what the because event Closed given about sound something very if the a a record deals confident be it a like it's million about quarter $XX it. that million. I It's I you've timing that to on would implies June $XXX guess, sales Chris Good to here. your guidance lot that June got ask first it of there? you large in I'm Donat Do of this? wanted gentlemen. Rich, feel quarter morning, you

Richard J. Daly

a of business. Chris, and had to of fourth activity, first the for been time concerned sales yet closed all, because and Broadridge of there's years running running go majority isn't reasonable my I've So, cardiologist the that we've quarter amount significant

nature beast. some to it's the degree So, of

pursuing we in which all, achieve can what of have see multiple and of we're those. Second for targets we is we all ways we our have year the

Christopher Roy Donat

Closed sounds if not Or just big those out FY them? them am the that about have then are that... being And might as sort a as it larger because like hit you too I takes do Okay. to some things thinking it there, of sales XXXX implement revenues, while

Richard J. Daly

it two parts, So, I'll into Chris. break

clear over deals. to play the on see, we without largest guidance targets, some that all, but of to that at, it paths the out we're time. to achieve of large multiple it first the but of very all have there we see we like we ways happen, said, So will achieve the looking were the With deals

So, period. now would speaking, mean of large conversion a the deal, a that for longer generally

in we right One comments XXXX gives to next and now at the we implemented months. over the Closed backlog of look XX XX confidence was sales out specifically yet things be my have as the I to pointed us even

what Investor where how or XXXX really some talk make backlog that we you you. discussing sales more be I when fiscal gave insight like did Hopefully, So, there we give that about can we we XXXX into during in Day, can year. consistent the we're and we'll something Jim

Christopher Roy Donat

driving I for will than record been Any stock Tim. commentary year. Okay. Any growth? you recent full-year the And it then one years. what's it likely better commented XX% like looks around that Tim, for some question commentary, been mean in on it's fiscal growth that has be

Timothy C. Gokey

Yeah.

above think, pretty is long-term single-digits. steady now. It's know, trend long-term I been here as of this sort the you and mid – trends that been has the have right

sort leading year. been here the of fund sort the tend markets think example this The I of strong to of fiscal flows. indicators you see have that in an of side. retail are That's sort very the driving

other accounts, growth those positions additional are which sort overall and we activity continuing. above see global create the above of market of advisors tend in growth addition the are that to the factors and trends continued the of think managed though continued I beyond market activity

Christopher Roy Donat

Thanks very much. Got it.

Operator

Puneet JPMorgan. Your next question with is from Jain

Puneet Jain

Yeah. talk about Hi. be qualitative backlog the comment will guys. how's you us And Maybe you into on $XXX backlog helpful. if you revenue? there can quarter, converting in update Can December? disclosed Good also million

James M. Young

we'll plan Yeah. to Hi, as some December, sort about Jim. you Puneet, as short, backlog. visibility. in it's Yeah. give to you backlog, But, million of The try recall, Rich of as $XXX mentioned, we about, in talked

this we in chip add more. quarter, build on and to more continue Obviously, now backlog. equilibrium significantly hope at We right fourth to add convert as continue that, probably sales. away It's we an with that to

really in position onboarding Rich sort As into In and strong X% a as GTO great even we good visibility then, from And gives planning Closed at from puts that into we're which mentioned, it us numbers. in is a particular Closed really on of I next seeing, about investments, which for great. XXXX, year sales the growing those sales revenue. we've contributions think some basis mentioned had particular, us

a X comes from growth of And that really it. of Broadridge, obviously in points rate neighborhood continues we've for produce visibility if the to coming strong so all about about and So, with high that's our revenue sales, growth in Closed think of we really adds. the been

Puneet Jain

year a long-term issues. And it's business? we It seems it. about like How should that strategy. been Got in think since NACC growth a client great almost

or just you anything to logos adding to get there it is So, else about need do is there?

Timothy C. Gokey

pleased the is this very pleased quarter. growth communications turn progress. Tim. feel Yeah. see Puneet, we were to our with customer look, to And, this We

client our think, that of see client which thesis physical communications seeing sales a the in of we're longer both in is on appetite the side, I digital our lot also lot a around continue side, on to omni-channel and combination we delivery and discussions but belief in term, pipeline.

and of that the next little with the we timing of nice But, at little feel bit time next acquisition, we few significant implementation very the quarters the leaving growth of And couple difficult there. timelines the prospects very run-off of to of the clients about long-term about was uncertain long so, term, a are knew with predict. quarters while we nice thesis feel and the

Puneet Jain

Got Thank it. you.

Operator

questions. no At there time, this are

W. Edings Thibault

to the look much, appreciate Well, very on forward thank future for joining call. everyone, and we on your you you interest again. Broadridge, calls. updating in us Thanks We

Operator

This concludes today's conference.

now may disconnect. You

Broadridge Financial Solutions (BR) 8 May 182018 Q3 Earnings call transcript