Earnings call transcript Q2 2023

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Operator

Good day, and welcome to the Broadridge Fiscal Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note the event is being recorded.

At this time, I'd like to turn the conference over to Edings Thibault, Head of Investor Relations. ahead. go Please

Edings Thibault

and second Allison, everybody welcome and Thank fiscal good year Broadridge's quarter XXXX to you, morning, earnings call.

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

Joining Gokey, CEO; me and Tim Reese. our Edmund on this CFO, are call the morning our

be that to these turn making today's on report forward-looking over few on involve A reminders. of Tim, found Broadridge summary risks. I can page Form on complete Before slides call One, second standard risks statements a call a XX-K. and annual the description of we be the regarding will our on the more

underlying also investors be explanation presentation. of operating we referring be reconciliations non-GAAP several these believe non-GAAP we'll measures with measures, the can complete provide more release measures and comparable GAAP which earnings and Broadridge's results. Two, a to found An to of the in understanding

let Tim? done, that me over the call With Tim turn Gokey. now to

Timothy Gokey

of close thoughts why given in and an with joining recent a business. a on remains quick Thanks, have our our confidence me client to some and meetings performance. with that start Good more here us. I'll grow strong of second even you our review followed be to morning, by key summary results to my Edings. even Broadridge pleased review quarter positioned I'll well I'm thank uncertain headlines for market.

combination both quarter. segments. of the another disciplined with Broadridge strong X, rose basis, XX%, strong Slide on management. First, rose and growth driven Adjusted currency our revenues a across expense X% delivered Recurring strong on EPS growth by constant

of remains off Equity continue to highlights slightly the markets uneven. market Clearly, capping rise. strongly performance the business. the Rates our Second, quarter, high. returns. remained Volatility strength of rose in and year negative a resilience this backdrop

remained the back managers and pulled expenditures discretionary very Asset dollar strong. on

our perform. are significant participation revenues remain long-term a recurring sales digital management face investor of our business and line enabling model XX% benefiting for with with along top from to resilient the to which, continued drive growth. us and healthy. In We're demand Broadridge's Moreover, fee strong business robust bottom solutions, cost disciplined this uncertainty, backlog, drivers

at benefited to investor position and levels. equities. participation the very second across from we healthy ahead see mid remains both high-single growth further Broadridge in particular in And digit expect to half. Third, growth funds

Fourth, continued and shareholder our we tailored communications, long-term innovating initiatives. governance, digital momentum reports on executing growth our We're we in including pass-through and capital markets. strong are in voting,

reaffirming year. are for full we guidance finally, our the and Fifth

to continue margins growth, growth. XX% deliver X% to EPS to to revenue X% We expect recurring constant and expanding adjusted currency, X%

in to growth a which Customer let's Communications business, businesses. of XX% X with biggest reported our our driver to ICS our or Solutions be new The of Now continues review for sales in our governance another turn ICS quarter. beginning strong Fund results, Slide and

strategies into Equity X% remained strong, healthy, passes. and the rotated traditional growth mid-single ETFs as growth in growth still and non-managed investors away managed active position in On slowed while double-digit accounts. digit physician growth, to driven from by accounts

how institutional asset Looking ahead as strong across their solutions expect by the half larger are equities both interest to both evidenced investors we shares retail, of voted. significant funds. and innovative remains choice for the offer underlying second amongst year, seasonally our clients Demand further and our to their growth manager on

reports, need for fund investors to number a also manager. complexes. new of we road individual will yesterday, which launched future discussions for our develop with our other fill continuing asset tailored industry. in for leading Just with with fund pilot critical We're passive we're a work And map clients another shareholder the a to

platform proven focused quarter. client major seeing digitization regulatory product near-term we're suite communications wealth digital increased products, savings capabilities signing and strong of that with over pleased compelling second steadily for and delivering into past key our a investing has through investment engagement the a few That This We've these communications. investor see to cost offers I'm combination clients. critical be enhanced the while our now to revenue for customer during years, building for omnichannel clients. demand turning Beyond our meaningful in with communications been

gains in rose and to capital been Turning now Broadridge Solutions, to to new and trust that part long made the on well revenues by contribute based our Connected start trading decision strong market by as growth. the has BTCS, sales in client the was switch see their BTCS, in performance cross-selling I a that also targeted markets. pleased quarter new Recurring share won XX%, of where are Broadridge. driven we driving as to or to continued

Our as other are front the office markets back, also capital performed clients. themes front our simplifying globally, product well within and of to with resonating

pipeline strong institutions. We with offset declined as see continue new core in also Management ledger Investment and lower of repo positive growth digital was to Wealth by with year-over-year revenue. discussions a license progress

advisers platform feedback. the continue completed development testing now and Wealth very XX milestones. to We've for key hit latest are with generation platform positive under We areas continued of transitioning XX to UBS Management our of workstation XX. all

refine expect new continue in rolling mid-calendar revenue begin at platform the to the to with the closely to working UBS of recognize approach to out they management their are remainder 'XX. we and We as

sales Edmund shift decreased is new we discuss, this investment Our phase. have as pipeline will into as strong. And levels our

has than Client sales. to remains were it calendar million. Year-to-date and entering been. around high, our sales Closed Moving is our pipeline technology $XX next-generation ever Closed engagement 'XX stronger

sales our are As for a unchanged. fiscal 'XX result, expectations

my X. remarks Slide on I'll close

more way. the to several looking I is that America North their them business, like clients past they value Europe. for a message XX The continuing creates are with invest technology. partners from our and weeks, CEO approach in and than in They long-term have met and clear. are the componentized next-generation Over They C-suite push that along

and a and governance three innovation uncertain. power remains trading our starts and client And That franchises critical strategy and positions direction. of with for infrastructure well and our with I'm of market service. confident aligned growth that enables is Broadridge all that confidence strong strong strongly we on is are market record with investing corporate our needs across critical coupled track mission that based These our in provide positioned

more year. bring clients value over growth expect reported to for are and a in meet to and critical invested and strong role solutions talent today, the technology. adding key to building We've revenue acquiring we driving we of the the to by playing or their technology balance These see investments need and next-generation

Importantly, we're innovating.

about we're new talked deliver we governance to today, continuing As solutions.

in traction Our digital communications capabilities market. are gaining the

drive growth of capital Wealth progress markets to Investment helping is we continue franchise, our and and business the BTCS Our to Management.

scaling a deliver By a of market shareholders. In track global attacking long-term record leader. we're needs focus market, management, clients, confidence revenue, the fintech for of long into visibility aligning uncertain gives an client with our $XX billion recurring business disciplined us and and our expense we're model resilient by opportunity, the to driven a and

the expect we above of result, three on objectives. full currency year X% our EPS consecutive we our at year X% objectives. which three a reaffirming When turn, do recurring adjusted the And to X% revenue guidance our constant for growth. be higher fourth As deliver period in we're and end it or to will to year in we've that, growth XX% delivered

at us historical shared the Finally, on investment to platform solutions. period for us more growth return free plan Broadridge our giving to a Investor Day. to and to cash the Positioning delivering in our we strong shareholders. In flow additional drive begin peak sum, we're flexibility returns past conversion our is last

is and effort deliver I possible without by products None for thanking clients. want The at to millions makes will of for exceptional important and and work knowledge service a our enables talent, us it difference does to clients' our which scale and our close for our clients of Broadridge associates' investors. associates. be

thank So you.

Edwin to the for turn I'll financials. Now call of our review a over

Edmund Reese

morning, good double-digit pleased the and to share environment. I'm EPS management even strong quarter growth, adjusted drove macroeconomic and Tim the you, from another revenue growth where results challenging disciplined expense Thank recurring in continued everyone.

backlog gives reaffirm revenue fiscal guidance. organic from healthy and continued the We continue growth. our to growth our us QX performance and position our This sales the to 'XX of execution revenue see strategy in confidence to converting recurring

margins both Slide currency summary you of basis the up as 'XX, organic. recurring XX.X% As lapped benefit rose elevated from we X% the the AOI investment all XXX constant in realize targeted event than financial 'XX increased XX% see cost actions of that of $XXX $X.XX. lower revenues which basis, expanded million, on to we fiscal a in adjusted X, rose on the and revenue. to driven impact can EPS Adjusted and points, XX% from operating offset initiated QX more income

of sales Finally, million. $XX we closed delivered

items you tax interest operating offset by higher higher that expense I'll is 'XX. income offsets of the And overall growth float to while fully income I'll partially impact we tax and taxes, in the 'XX in rates. rate level an offset the discrete On income growth, ICS interest by interest is Broadridge at segment. continue our remind for operating XX% lower QX being fiscal project note rate that

of starting marking $XXX range QX grew Slide X% of the X% full higher X. in guidance revenue get of million Let’s into to Recurring X%. recurring QX the a to end consecutive 'XX, results, second details our with near quarter on year revenue

on X% three track year objective. Our was our recurring keeping growth X% growth again, revenue us all organic, to to exceed

at look growth across Let's ICS turn X to to GTO our the segments. now Slide and

grew $XXX all see lines. driven We fund to ICS growth organic in $XXX growth to and continue million, equity other and million across growth positions. in at regulatory both in double-digit with all our segments. X% revenue continued recurring increase product was XX%, to The by X% of revenues regulatory

and Solutions higher in $XX unit. in analytics our and by fund trade processing revenue grew to our data propelled revenue mutual from driven Fund million, sales revenue products XX% float Data

our Our million, to increased solutions. registered issuer revenue led growth shareholder in business XX% by $XX

new recurring from continue $XXX Communications Customer we revenues to client business. demand growth in digital rose Finally, higher-margin million, in and to by XX% in Where business. our our driven print benefit wins strong

capital to new or Capital grew strong XX% trading in Markets $XXX X%, driven from again GTO. growth Recurring and to revenues revenues including and million, propelled BTCS, fixed $XXX volumes. BTCS, Turning new million sales to income strength continued by higher by grew sales our markets,

large by grew renewal Growth 'XX. million. Investment sales $XXX a to QX in client as from Management a revenue decline license we offset over revenues and declined by X% from Wealth was

reminder, capital a can to growth, Management. Wealth markets license QX impact grow in in As for QX expect and over and quarterly impact we revenues revenue for

full our to expect be Looking year forward, organic within GTO X% growth range. we to targeted X%

closer let's Now at Slide trends. for X had solid for both funds. position equities volume to growth look and a turn We

was X% investor to volatility. double-digit And long-term our by growth market despite remained results, driven Equity accounts. you in in continued position continue see As by this can managed we markets encouraged steady of participation has by financial be tailwind. growth

digit Looking in equity growth show larger mid continues half, second growth. those by X%, in results, testing to for full fund position seasonally And still to the growth the Mutual largely to grew funds. we QX growth high-single our but range passive with position levels, to mid-single expect from 'XX continue the the moderated driven year. digit

see digit We continued the expect mid-single half. in second to growth

X% institutional the trade now at basis clients. on investors of slide. wealth higher the grew our retail offset income driven than continued blended on activity a QX lower volumes as volume in trading Turning the growth and by modest bottom management double-digit fixed volume growth equity to more Trade by volumes

flat volume QX growth we expect As trading the year a year. for lap strong we essentially continue 'XX, to be to full

closed where Let's was from X of new points growth. X organic drivers contributed X% internal existing the Recurring move revenue primarily growth and was Revenue XX, growth trading this growth customers summarize business between and positioned and growth. revenue Slide sales all retention growth also contributed and in continued high recurring balanced of net organic now from volumes internal to points. our we

by revenue you the that coming the X our table of of slide. GTO bulk recurring with see in impacted can as on business, points exchange bottom in the Foreign impact the

proxy of the driven activity as with revenue of Event revenue recurring the discussion revenue in points a and was lower the driven funds was with grew growth. total largest Total combination a historically being down fund is timing reacted year markets of prior elections the view to on the headwind as $X.X XX. driving and from X QX low fund revenue billion, in contributor activity level, to revenue on $XX of X of withdrawals. finish million mutual X% Slide a mutual slowed ETF fund weaker by proxy board to the record points I'll

driven activity an and they and will Board growth. revenue these funds term, with elections from fund ETF be not back over optional long for time-to-time, position event may the line grow pushed but are in

combination and fiscal that half low $XXX of lower million the expect $XXX fund higher of Looking will activity million end activity the us ahead recent to mutual seen 'XX, trending the have contest second the in towards we years. to range we've of

Low no by activity. the as margin communications to growth, revenue July contributed event-driven of in increased increases and X X% customer total rate and the distribution revenues impact lower higher to point the offset volumes postal

continue I'll year. that volumes impact reported adjusted distribution margin. growth higher And the income We postal for our full elevated customer operating increases to double-digit expect July revenue on rate January the revenue distribution dilutive communications and from and have a reiterate

management business, cost 'XX expense float the margin the over Turning targeted now points end QX QX that operating Adjusted to and initiated was operating driven in higher a the our margins of improvement we for 'XX, actions income continued by of QX income, XX.X%, basis on 'XX. disciplined XXX Slide impact XX. leverage at

QX through impacts fiscal progress we our expansion us that will to gives objective 'XX. basis and be confidence margin deliver XX and inflation Our offset on increased points for of able approximately FX

ahead move to Closed on Let's Slide sales XX.

million our ICS Tim the Strong total off and focused were brings million, sales in year-to-date the earlier. HX which to closed that's that quarter sales sales of 'XX. quarter by wealth XX% Second $XX powered digital large mentioned of $XX

$XXX historically closed achieve sales reminder, million. remain of our sales weighted closed full are the our year $XXX to on And track a fourth quarter. guidance robust As we pipeline, towards given to million between

'XX in the Slide to cash capital improved million trend flow year. generation cash XX. strengthens million, we're cash allocation QX and over course negative seeing play this year. of the fiscal reminder flow I'll XXX% start flow I'll And a with from that $XXX on and free year. out up typically last Broadridge's again to first that the now quarter $XX is turn

conversion capital by management last year level the earnings, we to most spend free higher cash flow calculated sequential in flow net of driven of up was a flow decline the adjusted as cash was Free XX% expected. year-over-year working as client earnings over product cash improvement. improvement This points over XX strong and and platform operating notably,

platform last QX was of spend year's and our for accounted 'XX million, level investment million of the strong Total half for $XXX the progress client in quarter wealth and platform a QX spent $XXX completing The from of the majority in less the $XX of 'XX is a reduction of lower that than indicator million. the the development project.

the cash As year continue levels 'XX. we conversion of client in we conversion 'XX, expect remain on track return to to that cash Keeping recognize platform revenue remain than wealth that spending to on track than to free fiscal free historical higher lower on mid year. us platform we fiscal will be calendar deliver in confident is We 'XX. to more flow flow last

to to platform client is significant that return that On you continue and capital we the dividend. most see Slide cash of shareholders our the use XX, spend our through

'XX to followed final Let's the thoughts our second some to review year quarter by now Slide fiscal guidance, XX results. on turn

full are our metrics. of reaffirming key our year financial all on We guidance

to driven $XXX constant sales We X% revenue to growth recurring range million. basis points adjusted growth ICS and GTO EPS between million expect operating healthy currency continue income X% approximately by XX% $XXX the closed margin X% in and adjusted to expansion and of to across growth XX

half let And in which from full before guidance. discuss embedded that our guidance, I move outlook, me second on briefly year is

recurring partially growth markets low capital We of revenue the license by QX offset revenue. growth mid-single range to expect impact be in EPS adjusted to is digit as the continued lower

growth benefit be as we adjusted the the of higher and larger business EPS in seasonally investments. quarter proxy our growth fourth of timing to the recognize in We expect

showing my Broadridge Finally, key let delivered of results. technology second fund strong, is and financial continued our me for reiterate strong seasonally equity in growth is year. messages. position fiscal mission critical a half and QX Demand larger the our testing

and be flow investment cash fiscal level continue free in historical cash period in 'XX, to client the return peak fiscal resulting year, we in a last past We lower our conversion in are than conversion and platform to to more and expect a driving improved 'XX now strong free of QX again, flow 'XX. spend

a business with cycle, but the we economic and resilient performance track guidance. our model reaffirming a through record financial We proven 'XX have fiscal of are year

take your that, Operator? questions. let's With

Operator

you. Thank

will We question-and-answer now will begin [Operator And the Instructions] question come ISI. session. Togut ahead. our from today David first go Evercore Please of

David Togut

and question Good I'll together follow-up ask morning. my upfront.

that annualized Edmund, revenue profit UBS contract run once your and of from that does Tim reiterated from What rate the you'll you view contract recognize and kind the you're mid-calendar look and in up revenue both XXXX. like running? First,

Timothy Gokey

I'm that the follow-up well, David? as sorry, was

David Togut

That's question. first the

second is The record mid-single from decelerating the in the the record behind to in to the question second stock growth back stock guide half deceleration What's half? in really X%. growth digit

Timothy Gokey

Okay. Perfect.

Edmund Reese

off revenue working the And and start in-flight associated for on and $XX QX thanks question. of be the question. about mentioned million. on and amortization on -- November roughly expected build good roughly we for I'll to all the the with that in Maybe the million 'XX that conversion in and call, I with annualized QX cost existing last the contracts our we're first morning, $XXX be to David,

that said to the when November. remarks, what definitive specific in and mid-calendar in and more economics expect just this plans. that to those will have of full revenue fiscal that view my are as we I prepared has at in finalize to amount recognize a shared 'XX will subject 'XX, continue, annualized UBS be We not rollout we approach I The the mentioned amount will near-term those be

expect do to margins, deliver we dilutive that offset it that say expansion. to on go I'll margin we can mentioned, to continue but previously we've to and as be And

we now able period we're both our that expect our mentioned the historical prepared that flow return in cash is to important remarks think past and more -- objectives. long-term thing, be financial mentioned free deliver of investment on I as to we and peak to

Tim, component. I'll the maybe turn it for second to you

Timothy Gokey

And difference something terms David, opportunity we we for us. continue and I this at think And just reiterate, -- that components building to billion and transformational And how really Yeah. series the said think a the pipeline, seeing Wealth other discussions how live really we look but software, Management that in to $XX excited show Edmund right. we're clients is now are is real sales UBS to which we've for for was a able the as to why positions a of not broader other as created us, makes those sales for this deals, in in the be of components. I about other

feel about we that. So good

second Turning growth. the of to in second question the terms year your for guide our or part question the of stock on the of follow-up record half

years, think, mid-single well I have levels couple healthy past last over we very historic been with norms. very record at really despite year, in sort above clearly, growth stock the remained good And participation of investor elevated XX% a market, quite of growth. the of digit decline

the the half digits. to mid testing is QX. I of high-single that indicator see than visibility the collectively, QX we downs, based and funds, really really for to really think and on our into visibility call ups is solid gives And high-single stronger our can't best we but us And So market. its really into good that mid it, But equities given little predict for forward to that very bit second growth year. A pretty digit testing. expect in

market. that continued longer-term is being and trading, app of lift free And not including ago, based overall investing, underscores the And one-time rate, the couple not driven fundamental has going more think trends, investors indexing. the of levels accounts on managed that place growth level the younger sort to but taken then recently, by do that of growth fact driven it's back in a sort involved of building in effect by of we a years really the growth direct sort

Edmund Reese

in Tim's last what our with mid line to mentioned is to just to we what flat expectations Tim I'd guidance well original be that Again, and have of at growth point. digit add high-single continues testing the equity and David, in And our that to were year position level. X% as just

the So we with outlook as fund thing position on the And that. are and reaffirming well. again, our same guidance growth

that that. a But high-single digits, out. still little level deceleration You in play to a to again, and bit saw mid we of sequentially said we expect

David Togut

Understood. that. Thanks for

Operator

will question ahead. Heckmann Peter go our come Davidson. of today And from D.A. Please next

Peter Heckmann

Hey. think positions, everyone. we about for to indexing if how due Good I positions of managed -- to see equity if to where But accounts process change fairly really the continue fund to wanted thoughts economics shift? morning, Thanks continuing and strong direct mix potentially see direct the in in are we you conceptually, moving indexing. early. and question. that seems my generate slow still down interesting any It about but the could taking could to leads in case, growth be to any do relative growth that had you

Timothy Gokey

trend the and days. things with, the and investors of product Thanks, Yeah. that on those of investment help managed innovations (ph) pretty series one XXX(k)s this is drive accounts. ETFs a think have the I IRAs democratization broad Tim. latest all top of of in It's It's that things, early and we we're of sort Peter. call it's like long familiar do that

as sort even is you're about of it tailwinds. to like of of really you sort trying up begin to to see it numbers, if pick breezes sort barest of of it early think I talk too the the in a sort

those efficiency. There's it gain of could relative of I investors that things in think one And lot benefits it's do tax a for traction. to

not a today. driver big So

sort of -- to of necessarily a that lead is growth to I'd the change to lead telling think fundamental you in trajectory. going going it be like to I not as to here some it's something

really that trends it we've the long-term seen. think something that is supports I just

we it that confidence the one really have it talk as of real as the begin begin things in And we'll us thing it a begin yet, an are measurable gives to independent and to and term. break it effect, if we seeing long to seeing But not it but about out. see we're

Peter Heckmann

X.X Okay. Broadridge the the retirement that to legislation. on Secure That's see continued retirement a plan remind of you the participants. just you related then just tailwind Can how growth for fair. us being portions and business And potentially that plans in at

Timothy Gokey

this, of record on is Edmund all huge in let do client retirement serve of add I'll processing. And lot We a our the retirement then fund Yeah. the but we a keepers mutual part our to direct their market of onboarding. not XXX(k) in trade business. serve

serve. it's our smaller So wealth we of management. have couple management big obviously, wealth a a businesses And then that of our clients. directly big factor of portion for all a It's

we but we're something I'm sure to significant change see year So not now because sitting is have in be don't a that this, a we a to growth going -- directly that tailwind will a going invest, saying it their for from of our here think money more ability I our to a couple investing, and help into clients, businesses. help of generally be put is smaller

Edmund Reese

if we processing those this and economics as of to in add what do see said the is assets some the by expect retirement in our fund retirement through goes amount administration assets see increase accounts And unit we uptick I'll in and we that, accounts. trade the and assets, have to thing And driven Tim well. mutual should only legislation then Yeah. under

generally is small the specific right it I a us, about be we'll for think this plays now, tailwind and overall, while economics out. more So as

Peter Heckmann

helpful. That’s Appreciate Great. it.

Operator

Please Research. Wolfe of Peller Darrin from come ahead. will go today question next Our

Darrin Peller

this half like, of closed touch for, the for be have Hey, to sales wanted second guys. which prepare to in bookings for we pickup based always honestly expected. on, to seasonal that have have we to sort is I we

XX% normal. quarter, in of bookings I budgeted XX% maybe think is, around you guys again, seasonally which XX%, to were this or your XX

get more parts color for half year. of little year the second have conviction So that what and business the coming for are your to full guys pipeline those the on meet we from maybe just targets drivers of you make a of the actual they're the sure the on what

have conviction and now? I as be be you of will are mean, do going much running any of the how And UBS wealth -- just know of, not out flow numbers I side it's again, seeing And to up and contract the you through but that, part to profitable. very those coming a

So really contracts and any evidence on of you relying yet? to revenues Are other that complement it's platform. that Thanks, seeing other guys.

Timothy Gokey

start Edmund can on. I'll and add Darrin. Yeah,

in and and deals I think now pipeline the to half, say, pipeline deals as maturity. the terms of XX stage at we then seasonally second is half second look place very is the it for of their the in are previous when right sort and of of our you very normal the at a similar for stages coverage where years of we in

So as we're today, at. we reiterate that's looking really what

as Specifically in side, pipeline it to call build. the said XX% not last up is in numbers the pipeline sort where our we on of the is as wealth It's we're the sales see much stage that year-over-year. time beginning to it the in

quality of where that of lot conversations sort stands. feeling. a think gives of I that's So us But the the good

lot month. I over way. time, C-suite that remarks, a there's just along same the conversations, value management just that to and around my but prepared the like technology, in have next-generation teams this of on back on and I've to, want at come in I And energy focus a things continued approach the past is other those the digitization the their delivers delivers a CEOs modernization, had then with why plates, meetings lot and componentized And which they executives discussed plus XX

is of are I to combined to where an pipeline being that feel things what really the as rest a year. of there's those so that And led sort all-time us stages the of the a things around about have of think, at those, then in positivity partner. our pipeline And the are allows lot confident us the high. And

Edmund Reese

big point. has And recurring Darrin, closed which full in-year what Tim know add And XX% you closed, here, growth. driver already It's on backlog impactful this, one the revenue, we've is just that Tim, I'll of the been closed as revenue aren't now have our of the the sales that's I sales revenue. of important discussing know recurring our year

correct, to think I year. everything gives what this revenue but able is confidence our be is the So guidance ability backlog the us said in the to Tim hit

Darrin Peller

just platform, And out? -- of wealth much be that's of quick a able the you're take going as advantage side, to you the where platform evidence built to reminder on how seeing just that UBS the you're

Timothy Gokey

Yeah.

I I'm there those to And the in back year-over-year, and people it back as I when specific a about the components that pipeline substantial think them is increase. comes which -- think see that that really see enthusiasm numerically, anecdotally, conversations comparing live. comes then and to and involved the

So we is we and of on pipeline actual more ongoing news topic have have I the on this the news a topic be that think the a but sales, there'll (ph). the don't

Edmund Reese

the business is we again, QX all saying sales return Which, I $XX we good incremental in about belief number. that We in pipeline $XX we the to wealth think gives us and on confidence what here. and the that case feel news reaffirms in and was in our the overall company that for of have million expect that million and said Tim the

Darrin Peller

can dynamic. correlation have clearly, people else really growth in your in is the mutual It's matter Guys, anything just savings stocks in equity and But and control. do side. position out follow-up there's accounts a some they in terms of one what of that to position -- what their market quick on investing. there's Obviously, in fund or is

feel a but It forward that of type but you if of know of patterns maybe guess Thanks. your beyond just the drivers the showing? love enough the in medium-term to rates, do growth company see is sustain targets growth, sources in that and the of you've provide mean, I that a I seems hear position change and there's are it's do you looking I'd wood this just for to fire into early, 'XX I so outside strong lot like thoughts. been And

Timothy Gokey

Yeah.

I when negative, dislocations to in think, went sort In XXXX. physician been those times past go of it's -- Darrin, at have to true look we like the times, and extreme went zero, when XXXX growth there significant zero. that didn’t

at driven of our sales pure clearly just GTO to If you not the look growth physician by growth. is related ICS, technology

about been in our internal growth from half from at versus in and new half growth look of physicians. you if couple of it's then revenue the business, And past the of terms ICS sales years

So clearly, extended period. that overall were reduce would has for not way the to that if But never to physician -- happened rate. all go our growth growth an zero, has

right we So medium-term reason growth wouldn't have be same. plans any wouldn't think our the now that I to think

Edmund Reese

I'll again, growth drives And Position overall position Yeah. growth revenue. we Tim's of just point, XX% recurring very have our add business. to a diversified --

information, and you out. come I'll point We with share out But reiterating you. be six that that and won't confidence that months look in I Tim So we a have and point that made, surprised. just

and we You model that. like we surprised, flexibility won't if objectives be anything see the adjustments that we're have we and won't growth ensure our that surprised guidance be online make with and we in still our give

Darrin Peller

guys. Thanks, right. All fair. That’s

Operator

today next Faucette Our Please of question James come will from Morgan go ahead. Stanley.

James Faucette

Thanks very much.

to wanted on wealth the rollout with the you other the with that Just platform and UBS follow up of customers. get leverage potentially questions around

live, with go And make should flywheel? cetera. as But that process those to go-forward should or about implementations even et to UBS customers that just on own sense about should in what learning for a that this there modules? potential their that you from in we pieces sales how commitments think it of allow basis you're perspective, makes terms specific creating cycles, that to if it's new implementation it improve start things are in an think I

Timothy Gokey

Sure. welcome to And of welcome you to Yeah. -- Great all, first to the on. James, have call.

James Faucette

you. Thank

Timothy Gokey

learned of And look, I UBS. have with the lots work in lessons there think, do been

in the do future, this things like and little break a think smaller differently. I bit into them we would pieces

But the a lot this at management a So now technology The Where the our our tracking, to terms story in the of as number definitely we through points. sprint. have gone ability look agile all of muscle -- points velocity we level we moreover, agile. the in of converted built project and of have that's learning. are to we've left, story

when company. How get around they're we're built testing, a whole using we've defects, all And from model that, retested. do you defects platform the a standpoint. defects what rolling you the the capacity of the the are to When into now which rest what expected out out that on are the

is based more just lot all much, cloud. pretty leveraging UBS And maturation it's A becoming as for new AWS. in mature as well so technology this much on a of the incredible been

very, something about. that that maturation our is I'm And around around that development we're excited seeing the very productivity and

this of So transformation true SaaS technology the we've that work the in is talked be company about how well. out driving think to really And I Broadridge the really future. piece playing is

for you thank So question. the

James Faucette

how to opportunity and the we notice to shareholder headwinds related from the Broadridge on small just Can involved some SEC a access started question to admittedly the reports. tailored you to fees. in investors involved headlines production these ask and on, then some reports. reports pending is regulation inquiries get becoming creation to some that's related be with And given And wanted Great. shareholder and help that associated color of provide offset of or on the to

Timothy Gokey

Yeah. Absolutely.

reports, of reports that's very for get or reminder will of year it's that getting three a like what annual read. as to a link semiannual to tailored prospectus communications, ago. people fund just So notice two everyone, summary, receive, the receive to two years investors instead around page People to shareholder and a communications some report a difficult a a will long either

more big it we to positive and very shows e-delivered the testing funds think for that much, see, long-term is more digestible investors in is is e-delivery. for report this of is fans effective clearer all investors to cost we're the much for be And much

all positives around. of lot a So

these we for said we that slight as notices. us, right get the call, last there For is the paid on flying now

said generalized some come a talk has. change, them. reports clients, is investors many simple, the to create it think to classes, this is mandate million as table the different $XX meantime, not and that, the but it we pertains while investor The fund I class real expense that to sort with our -- that sounds we to share away. share that of tailored some reports the complexities go for specifically are will In

fund fund In who reports. XXX X,XXX talking one does to different clients, we different do to to reports. today And need so complex to in our talked the future, going they're

to even lot And being data composing the all That's a scale terms in work on data there. each So very management. that. investor, something strength of creating them a the the real and them around specific send there's that's reports short, complexity of way and to in a Converting of that's able it though tailored that digitally are of ours.

from And year a with those standpoint, over attended of so we about with they is think there's on is, had it the groups Nixa industry. in tough. actually sense fund the opportunity view the meet to having webinars that webinars, industry it but help the interest among mandate, us couple -- for lot hand best how it's really deliver an do like of one a sort Ignite, one makes there which an investor of this because to past for is one it, the We've sounds one

are we working We that fund definitely we think solution. so And definitely of with help be can part clients.

James Faucette

great. so much. That’s you Thank

Operator

ahead. next Our JPMorgan. Jain from question of Puneet is Please go

Puneet Jain

commission, of the zero to Hey. taking the that from digits like X% in indexing know and Thanks mid-single stock there? into any macro that direct about year. potential so talked tailwinds growth disaggregate benefit for half secular headwinds record I down or my you growth back you question. Can the slow can like

Timothy Gokey

numbers year, and the What digits. do where like rate non-managed get last double-digit specific versus what know that's how Tim, which able we where things measure very have positions tailwinds. don't to say to growing and on accounts. us on it does have in we are I'll in accounts. Puneet, add growth there data let when many right for. to We're managed Edmund we testing how we're is allows the macro more on at We is we positions the physicians is, growing this. It and now, where We're it's compare specific was that mid-single funds, these

you see could that. differentiation, we So math on do some can that

So about X. but see going can incrementally driven with and that, that's we can we it's to or additions, point be the that’s Edmund on -- a these broadly, where macro that. may cover then measure talk when tailwind, – by I’m And if the

Edmund Reese

(ph) to digit is growth. first, the one clear, we on going to just just So do hit Puneet, high-single host saying the I thing is were to -- mid be

end sort of be X% we would at the of low here. that So expect what

and what's So talked in in be reaffirming to previously online very to I guidance but and been hard it’s brokers our we've and as desegregate we're be just here. other, And about Tim broad-based between want said, clear continues full to on confidence macro accounts. and give and And areas. what what broad-based I guidance solid accounts of is accounts here. the those continue to each in across we growth mid-size that as self-directed in to accounts large And and small and well managed continues seeing the see think, us growth that, growth

Puneet Jain

good sourcing, quarters to versus is pipeline in the client seeing be or some Got in last for given the know behavior was are flow right strong, it outsourcing preferences making might decision but it. macro now? maybe pressures they terms that over facing And in any changes client through any changes deals you of delays And few in that in the pipeline?

Timothy Gokey

are they just best sort one busy. which we interesting money. And an when definitely clients are for I would say of do have Yeah. us They enough money do money. and it's banking clients have is,

and don't they So then to have them money if they have to any for hard build it's too it much the like you project. fund money, that in-house,

sort just to spot So a right of you sweet have our as sales. for be

So December. we line. a like same got others. done moving over We a feel I go There's these that, do to a lot in. thought think the that there's of of lot of month people the forward. goal At you're feel stuff work in hearing sure before that we're the of I'm conversations, the from that lot get time, certainly And

party, should go conversations some preferences for had in-house of a I and maybe people As money. the toward, third think I that. could well, of I think money back versus of bit don't I now, the more you where feel XX ago, things months maybe if slowing look build for I sort you little lot are a should build And it's if I when know this, at

lot on I having a coming think useful. others and address change things it's the coming. their are is very SEC as to regulatory have that they and many that plate so There getting people in is the from help much all are that

institution. So strongly are Certainly, it's bit that by a looking have for the -- all Tier institutions and X to you help. segment little of size

Puneet Jain

it. Got Thank you.

Operator

conference turn to like to I management will we time, over remarks. our conclude this closing question-and-answer back any the At session. would for

Timothy Gokey

Thank healthy. off. I us everyone outlook hope what we is came things for our our that second year, remain were pleased and for morning. our to this close thank drivers want you. with I'll Tim. growth This I the is full how performance just that joining quarter through

resilient cash that flow free increasingly is with cycle Our business behind and our is strengthening. our investment us,

conversation So look very to the quarter. next We thank much. you continuing forward

Operator

now for you We thank presentation, now conference today's you lines. may disconnect your attending and concluded. has The

Broadridge Financial Solutions (BR) 2 Feb 232023 Q2 Earnings call transcript