BR - Earnings call 2 2024 | Broadridge Financial Solutions, Inc.

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Operator

Good morning, and welcome to the Broadridge Second Quarter and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] You also note today's event is being recorded.

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

W. Thibault

Thank you, Jamie, and good morning, everybody, and welcome to Broadridge's Second Quarter Fiscal Year 2024 Earnings Conference Call.

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

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

to Before a call-outs. few Tim, I call standard the turn over

XX-K. that can the One, we be the on Two, we page underlying of also provide complete our Broadridge found to annual and forward-looking A non-GAAP a description summary today's call investors more statements on will Form risks. several on on complete referring we'll of report a slides operating results. Broadridge's more be be regarding making involve measures, these believe risks understanding second which of with

to found that, over can the comparable of explanation the now Tim? An GAAP in presentation. With earnings reconciliations be release let and me Tim Gokey. call turn these non-GAAP to and the measures measures

Timothy Gokey

it at December. so Good with was morning, reconnecting you, Investor Thank our and Edings. great you Day of many in

you As opportunity more ahead. about ever lies that long-term than near- optimistic and the growth we heard, are

those themes many of outlook. our and fiscal same quarter hear today year discuss as positive You'll second I results

challenges the let was forward. find see weeks energizing discussion we move complex unique on AI comment in which they industry ahead. with our ] the moment talk to our A of of on the we Before the and ago, about and do, ourselves. I opportunities Davos me [ was lot At and X promise it how clients senior

uncertainties Broadridge rewarding particularly for more as timely. an recurring this the the as same as amount well makes growth to all to are Capital important efficiency of think attractive. was to and to Against model, operations Broadridge's geopolitical our for partner and clients in was business innovation continues hear it backdrop, resilient resilience. transform and clear environment time, of highly which generative AI the the our OpsGPT recent challenges and leverage At Markets

that, the quarter. with me And let turn to

second the Broadridge's in quarter our step results goals. segments organic toward 'XX plans line another X and our with next both marked healthy growth fiscal was long-term across First, years that with for both growth

trends position growth positive, fund mid-single-digit growth. physician remained position with equity and growth Second, stronger

executing Edmund Day against at on management. strong Fourth, driving and shared digitization discuss the return we we wealth more investing, generated achieve shareholders. last in our innovating and modernizing keeping objective are XXX% month to growth will us cash our the trading FY plan free to the quarter, 'XX by Third, of capital flow simplifying and Investor and we track democratization conversion

enter we Finally, of half as another the set results. strong we seasonally larger to deliver our of second year, fiscal expect

XX% our reaffirming are sales. strong X% X% EPS growth, growth, importantly, X% adjusted to We recurring revenue guidance for close to and

review franchise. X to starting governance our recurring Now to our in with the revenue Slide let's ICS from headlines second rose quarter. X% turn results, the

the of of growth, driver governance result focus business. our were sales on delivering New biggest across our innovation a direct

regulatory We insights communications. We're broker-dealer composition continued momentum from a customer sales and in to adding strong data are growth digital clients our from seeing business, asset solutions and managers. benefiting and global in of from we're seeing our and disclosure new growth our

with growth position driver X% our a which second both regulatory participation the seasonally and in growth accounts. for for In accounts, important to represent remains investor small physicians which revenues, self-directed X%. of under was low funds. at single-digit compared quarter double The across XX% to equity which continues Increasing biggest an be driver rose position equities digits to managed mid-single-digit just quarter, growth continues and grow

was of in the fund the slowdown of quarter by last the in physician ETF funds passive active number positions. and to pickup Fund from offset and growth growth a increased X%,

in half we expect outline, the healthy. second funds as equities both Edmund ahead, Looking participation will physician in and as remains investor mid-single-digit growth

a December, transition saw digital in continued as wealth the our was strong to you issuer largest in QX, I was of growth all successful other also particularly proportion product a ICS In offset with revenue and growth across pleased recall, QX, wealth strategy. of our one this lines. heard of high-margin we digital print. In part key opportunities platform. the focused and Communications, is the U.S. transition In by the strong driven growth significant Customer managers of In our lower you onboarding data-driven discuss us fund solutions.

This Capital is investor then, Markets engagement our and open rates months strategy Investor to costs XX% Day, click-throughs. revenues client digital for see playing and and was printed is a out. at lower highlighted focus with rose our delivering platform $XXX wealth million. our X we it great increased to and industry-leading

focus connectivity BTCS. Our dividends in the office pay to of and front strong trading continues on form the in growth in optimizing

we side, were post-trade to back-office helping the On clients' technology. simplify our

will who products I multiple to was see Broadridge new pleased transition at their drive be a win to to regional self-clearing. using bank a

AI transactions, innovation continue also drive data enhance clients' to launched AI uses ledger physicians month, settlements We capabilities. in and our markets with OpsGPT we generative capital solution. OpsGPT this to AI distributed Early and to sales synthesize resolution. complex

world the subject and As Broadridge investment as given and of in back our in helping progress partner matter innovate the sales natural BTCS office reducing simplify clients This on how front deep are expertise innovation, in reinforces of our combined early cost office AI. clients in their T+X, successfully trading. they operations, focus with and wins especially strong and we a the complexity accelerated in leverage see the to

strong $XXX offset the January, we Revenues In partially for early transition. Management. Wealth E-Trade Turning by onboarded client rose now first the workflow alternatives was module. to to as and UBS X% growth from million Investment

are the of offering investors. antiquated. the one to of asset classes. you set know, alternatives remain a are many managers office As products Wealth rapidly processes of back But growing fastest-growing these

seeing are growing wealth firms challenge. alternatives this seek address and interest strong We in as workflow to opportunity

sales Closed for XX% the rose first sales. closed to half. Moving

the second And sales. our closed accounts to As I'm year half of note levels. bulk know, sits at pleased pipeline our the current you of that for typically the record

confidence increasing the our we're within important, see As half. pipeline, in to starting the second movement more

our clients invest plays improve which them While drive productivity the products requirements, our in cautious, and we revenue, strength that solutions. are to meet of seeing regulatory remain

pipeline are print opportunities beginning continue which the customer implementation products our experiencing we poster capabilities. a have and for print for to shareholder digital digital and also see our governance, the built demand growing around we our look driving in strong data increasing We're and solutions a T+X, communications. to In world Markets interest to Capital significant new managers global clients of tailored insight from beyond asset reports. in is

to wealth, $XXX first strong strong to for as result significant pipeline. the in million. And remain saw in we we sales we net year, in the begin line sales million on our track The half that closed to guidance with $XXX convert deliver is of our

X Let's quarter final on thoughts outlook. move our for Slide to and some

First, more I'll delivered than and recurring second that flow. results on X% strong quarter us constant Broadridge free continued revenue keep cash currency growth reiterate that growth with track for

And to investing, AI business Second, data the growth last deliver enables made those the innovate an Day investments who trends, growing help about importance and including evolving democratization communications, clients grow. of of we align so you our the Being consistent trading, steady to talk growth attended our over with how in clear of operate, digitization those long-term the with environment. regulatory our and me our month, years Investor have aligned and in of for of doing, the us acceleration drivers investors. heard

to wealth markets are and This in those priorities and in step investment drive governance, client we quarter again the capital in against these potential outcomes. AI, drivers, has changes executing illustrated management. Among how particular,

financial position We with are unique we that incorporated center all be Broadridge. at a difference. to leader future, work More will have a services and believe committed we make companies AI to the opportunity In solutions within not-distant our doing our that unique be the that position. provide will AI differentiated gives fundamentally, industry in us products, in And be into will a space. at data of across a

OpsGPT our a distribution introduced, products win-win a first and shareholders. That's direction. in are our AI step for formula we've already including that and The BondGPT, clients

on for free as and our internal as recurring year. while we continue track based the funding fiscal on full progress, both need guidance growth revenue this for of conversion the outlook for to EPS investment cash remain well our flow to deliver innovation to that sales Third, we are all closed year, Fourth, clients. our we reiterating deliver adjusted XXX% to

strong we our and that will are Broadridge and me well growing to additional in to out as well That's and currency, discuss laid XX% which deliver rating, to an growth, the X% organic, to $XX X% X-year XX% while of 'XX tuck-in M&A X% enable market our last we attack as is execute approach that point, to a objectives deliver financial growing us and to brings positioned recurring FY to including EPS that shareholders. adjusted opportunity. which And billion revenue my growth beyond dividend, internal will fund retain investment-grade as as we capital constant grow Edmund is on to continue December, strategic return investment

every is Before I one most knowledgeable close, been Yesterday, and time tenth of recognized talented, admired This that's XX,XXX Fortune's I want and companies. we've as better the our result to that financial hard-working recognized is service, associates. clients thank Broadridge our industry for associates' makes resiliency and of of great investors direct our innovation day. Thank and you. that delivering and commitment a our millions lives enables stronger,

And with it over that, to let me turn Edmund.

Edmund Reese

here good full and the the the signals and second second pleased fiscal first quarter. results I'm for moving highlight it's morning, half But be Tim, to to with really before important everyone. to 'XX. into the the seasonally detailed larger review, you, Thank discuss year half for

us to guidance. of right financial line quarter with we growth, in and revenue strong year execute growth, recurring right the margin second Broadridge to in model our track First, expansion results the continue on adjusted deliver another EPS have

confidence Second, of X capital-light nature flow strong fiscal and of and quarters 'XX. objective million free the cash business our our through XXX% highlights conversion in positive cash increases free $XX our flow

return modest 'XX, of increased in finally, the higher share half combination in demand fiscal flow the strong that the repurchases cash shareholders is of 'XX. for M&A through free our Third, means second expect we And strong. fiscal and products capital to

and client discussions reinforce will our First over XX% and year, current pipeline objectives. year that last conviction sales full our meet half our up we were

full the shows our year. for growth equity mid-single-digit testing position Additionally,

participation are continue by the signals investor tailwind half. significant and long-term results the as So business. for the expanding These X a meaningful be we our to financial markets, from in our through the serving performance encouraged and items first

AOI you now quarter. growth income margin operating declined Adjusted to a increased Recurring turning revenue. the for revenues XX.X%. was see Slide constant Adjusted increased modestly X% up X, points to all as to up performance basis X% X% $XXX rose the organic. given EPS summary XXX to So on million, on the basis, financial second above-trend currency investments event-driven we $X.XX.

first finally, $XXX delivered half million sales first to bringing XX% $XX the fiscal of the closed million 'XX. up of in over And half we quarter, our total

Let's X% range and Recurring guidance recurring within in get into results, revenue 'XX. starting of with details the $XXX our revenue on was Slide year X. full QX these grew to million

Our $XXX revenue, a recurring driven to fund growth segments. recurring trade GTO. sales our growth in position X% growth ICS Slide converting volume on to was by GTO backlog across float our we grew and and income. driven of new recurring revenue And double-digit revenue revenue position can combination see by growth growth and X, million, in ICS ICS

solutions new equity fund and from position products revenue analytics retirement in due our increased data was Data-driven float Regulatory to disclosure in a shareholder in revenue lower digital business from growth registered was growth income as margin revenues. Fund sales. float products. and Communications up in flat, our Solutions revenue by offset led higher X%, with growth and Issuer higher strong print as Customer in by revenue of XX%, was and grew revenue workplace sales and X% strong well driven our our revenue healthy revenue higher-margin decline by solutions. by

we in half as onboard clients. fiscal the expect second of volumes We 'XX to print new increase

replacing its print And communications again I on digital that strategy, to to declining digital here higher-margin to revenues. pause print continues volumes with customer note will execute

we long term, the growth. combination earnings low in to and line low growth with Over expanding single-digit expect the result margins top continued double-digit

X% volume income and grew Capital revenue Recurring increased revenue led trading equity GTO. to by new in million. Markets $XXX XX%, sales growth. fixed to Turning

the X% solutions, of the BTCS note performance double-digit Investment our from Morgan which revenue quarter. the continued and partially also by grew transition the I'll was Stanley contract had recurring Wealth in revenue first offset office again E-Trade strong which growth. late front to fiscal revenue in platform. the Management occurred as successful UBS

high have organic more second the in to markets relative capital to X% objective. third timing both last our both growth GTO weighted growth half and license confidence we with of ahead, being in year businesses year. the growth in With Looking continue quarter, by and X% full to line to revenues driven wealth

more Slide discussion The levels more managed healthy driven long-term was for remained Equity a Day, account to at X%, investor Turning investor in more positions we growth participation equity trends. by of for Position at second per position X in markets financial growth volume double-digit and that self-directed funds that growth quarter. trends and modest both growth in accounts. growth. primarily highlighted the and underpin Investor

to the communications, the mid- of year As proxy over second we single-digit generates spring now of giving insight to the year, on our relative testing XX% equity half season, high our the approach typically into extending range. which full our is us

for shows of position mid-single-digit growth second the Equity year. half the testing

result, the fiscal to revenue full QX guidance to position keeping our track X% As 'XX growth by of recurring again fund X%, position passive year funds. a Mutual us mid-single-digit to for improved 'XX of from expect and driven on we ETF growth deliver growth. now X%

the mid-single-digit markets see with Trade growth which income half on revenue. a of bottom to second volumes on fixed growth trade turning to continued now in basis blended expect And the the slide. volumes, XX% capital year. We the for rose trading benefited our strong volumes of

X% was X% now X-year move drivers. organic line growth Recurring in growth recurring to XX And of constant X% revenue with and our Slide objective. currency let's organic growth revenue the for to all

of of X from points growth. As from to wealth Day, points With of growth XX history point during revenue X revenue points retention we ICS contributed contributed points in X delivering year. I points or continued contribution each the Internal in new Investor a from business decade-long customers, In growth. position including QX have sales better had mentioned boost and from closed X of with to management. recurring a GTO, X including existing high from growth, X net points revenue 'XX

a had from X.X exchange growth. benefit Foreign point recurring revenue

of to contributor the recurring revenue adjusted due with So operating which growth. total Low revenue total in to X% revenues to with grew a QX to powering postal distribution revenue rate points up increases X%, billion, primarily on XX. revenues I'll a $X.X points wrap contributed discussion Total growth. to of being are grew X margin revenue margin. Slide view largest X no headwind our Distribution revenue income the

rate We low revenue continue to in grow expect driven distribution range, to further double-digit the to postal high by increases. single

added point Event-driven revenue was million $XX and to growth. X

revenue level $XXX As more now the last proxy for also of will million XX% half levels combination historical contest to have will activity anticipated, higher in the QX mutual the increased activity mutual in event-driven we us first million activity $XXX immaterial modestly the to activity we our is contest year. proxy above year, driving expect fund saw lower normalized of trending a and full that compared of fund over I note increase 'XX, through while year. levels

mentioned earlier, investments trend up flexibility QX performance, ramp or event-driven have down I investments increased on and we we based on to based As ramp growth in above the modestly revenue. the

We positioned fiscal committed 'XX to still investing long-term adjusted well to guidance. growth are EPS delivering short-term our in stay while

year to down XX. Adjusted XX.X%. prior basis from points now Turning Slide on operating was income XXX margins margin to

structure. in recurring our investments Day, technology points Adjusted and on some the the XX enhancements contributed benefit our income, the immaterial Investor an on other timing event basis impact our initiative outlook impact to revenue the gave at from higher in offset have higher by operating in of benefits QX impact streamline quarter. from invest us detailed income positive items and the The net which and impact the benefit management realign year growth product Those our I margin to 'XX operating earnings full digital of our of businesses, growth the the were of platforms. in on as continued of float expense as the higher leverage confidence to and our restructuring the distribution revenue

to margin capacity. we expense adjusted and expect on increase to I'll you focused income continue operating XX%. management we disciplined ahead, And investment that to Looking remain remind year-over-year approximately creating

to the 'XX have the remaining the of and we fiscal excluded adjusted continue initiative in income end year. by complete charge expect QX that to This will calculation be restructuring restructuring So began of our the restructuring adjusted operating charge EPS. from and

bringing start see in XX. XXXX. I million the sales quarter, half half first Let's Closed strong move close was a Slide half sales to to first second sales growth the total from to to in continued with January. up $XX $XXX also ahead of pleased on XX% million, the the were

More increased free confidence cash in flow that full Tim pipeline I'll objective. Slide to XX. meeting the mentioned on momentum importantly, And now turn our gives year us

QX million, than cash better $XXX last was 'XX free flow $XX million year.

flow this For cash and being expectations conversion for million cash our conversion, This the a Free growth negative flow by flow These million of XX% of on calculated flow consistent year. continued XX-month in adjusted the are is over cash to lower free XXXX. track strong up driven for spend. positive from first first results net 'XX. half, $XX the $XXX platform half XXX% fiscal us XXX% relative QX free last cash free client earnings trailing has 'XX year was and our with is in earnings

that to we Slide you committed a see On allocation capital balanced XX, remain can policy.

of technology to invested year, platforms in the $XX our we For our converting on first clients half million the platforms.

proceeds, in before $XXX share returned shareholders million repurchases. and dividend to first X option through we the capital due to Additionally, months,

return on fiscal to XXXX, $XXX total capital million positioned conversion, million the which for cash limited half. additional repurchases, share estimate expectations Based our includes free $XXX $XXX to we current $XXX outlook an in shareholders. additional are in million million to our Given second in for XXX% M&A flow we to

concluding to guidance So XX, thoughts. some with on Slide moving along

Broadridge fiscal model reaffirming guidance on 'XX and in therefore, executing We financial all financial are successfully full metrics. year the of our our key

expect note revenue adjusted approximately XX%, currency, between year in million. sales is EPS of $XXX And embedded QX to to and I'll $XXX X% million EPS to closed both recurring and guidance year-over-year operating that of growth, adjusted adjusted full continue X% of constant We margin income single-digit for to QX. X% high growth that growth XX%

I for fiscal that guidance addition model. highlight high business the In free flow 'XX, it's important to cash our

M&A beyond months in the are And to year fiscal flow reach flow consistently conversion, We free next of free long we confident ability free our term limited a after positions XXXX. million are X to combined XXX% investing for outlook million $XXX strong XXXX. in cash for $XXX conversion, with through quarters, in fiscal of X share capital and generate return cash conversion. to cash repurchases in our current flow the dividends That our total our

drivers to us finally, that strong investments And driving combined growth. the objectives XXXX mentioned earlier, the XXXX participation, both of and in confidence growth, meeting with in sustainable I our demand investor long-term give

let's So with take that, Operator? questions. your

Operator

Morgan comes from first today James Our Instructions] from Stanley. question [Operator Faucette

James Faucette

I the arithmetic wealth about would I at recurring that business them that concentrated It have presume growth. want a those And were Are in about about right? we to business, math just of the like X%. that constant looking losses if Great. revenue currency kind probably segment. X% to grown to losses check drag were Wealth some client quick on looks X-point without

Edmund Reese

wealth. question for the thanks on So James, first, and

there's a of make couple points to think there. in your I question

generally for just First, Broadridge.

XX% that. have we're talked think of I revenue. we Day, our points XX% Stanley, it, in And aside of with long recurring history just to of X transitioning And contribution. retaining existing As about to I a here, see with you Investor E-Trade Morgan even we're during right line set and as when I

So that's point. the sort of first

segment, that a We be the wealth would million. I wealth the can sense think what math over for that $XX year, largely incremental E-Trade. you we would the said by offset transitioning be good about do on the gave just exactly revenue

some gives you components. X would sense what it -- those about so with losses knowing be the And

James Faucette

Got it. it. Got

closed now the broadly, previously then And constructive about discretionary had impacted sales sales helpful. obviously, some And the But being you've outlook. Okay. of That's you by weakness. to guess, reiterated I closed year-to-date adversely think number. I more that European see spoken tech

that. Your seems bullish tone particularly on

think maybe are Broadridge can if the overall And what is is give for more of? there incremental So Broadridge opportunities that? -- in into there motivating a demand how you is to improvement little take insight an advantage environment, you

Timothy Gokey

thanks the do sales year have James, Tim. one. And we This conversion on Yes, because as question million impact $XXX much about this for by this. don't the obviously, year. about a are the strong where the reminder, I'll that is it's I take And really really closed talked at all, of we good backlog, first feel think our we year. on of of supported beginning the

all is about this So question growth. future a

that that one we that, from was nice front to just saw is continued extended. have and in which around you in, other And we conversations and areas we're wealth really remain and discussions. And so the true the tailored communications, as first a management, sales having tech cycles thing want to see. I strong we've companies we've came discussions, January strong. that listeners -- investing far really like growth we've from office around at The been And second our that previously digital half. the the for reports, like heard weakness good really that been wealth Europe seeing look continued caution that out it's and is shareholder and point seen front-office half, we

willing spend what partly costs, well. away regulatory lower drive to that revenue, as all areas conversations have that really we fit didn't some those that and really coming those those seeing were on of that specific now we're very are but of clients through. think I they is, And extended, now go are we're needs, said, seeing

sales is good long-term year million, do to you -- conversion on we obviously confidence should and trend million that of a nice guidance $XXX our we improving. strong us pipeline tone, of and there. last achieving uptick a seeing And the So growth really feel returns which that very heard have to some $XXX the in are lot in

Operator

Our next ISI. question comes from David Togut from Evercore

David Togut

questions I'll upfront. and my X Tim Edmund. combine

really tailwinds. first The on is headwinds and

first million The trend historical is million. to you coming event-driven about really above $XXX revenue. line likely of average the part in talked on Edmund, revenue $XXX

So be more like bottom you to toward X% guiding half digit other, seem the growth that seems the of range and then a the tailwind on your X%. record versus to nice mid-single

So remarks, through in maybe you expenses. might how X out balance the revenue the just half in dynamics year? the more walk about support could than up you driven. those event walk operating through Can those of talk And the expenses in then they guide? of of the in out on SG&A, and as your second called was you is ramp the in really evolution back

Edmund Reese

thanks question. Yes, for the

it's and emphasize in in year us guidance being an line gives that our opportunity important the I with to one have. an full think confidence we

that. about guidance Your how part we headwinds think to event tailwinds first overall of question is as relative the and really and on

talk Let me recurring about headwinds then a first the overall and tailwinds. comment the make revenue the maybe event the on and and itself guidance

including mention could in as this that more that we of QX recovery back proxy half quarter the event, low QX the because the by the But that the might we started increasing saw contest mutual when good number activity remarks, current that expectations. did in in was the investments some have to know, year, about have thus outlook strong really transparency be we are I activity. driven a the we a investments And the the above talked you full while seen when continue in we there outlook levels of 'XX, year, in half expect And types higher the of of because, year, on our given year. the the headlines suggest contest in fund on likely through these we it unfunded event. far, earlier have On it's of we prepared first activity, event-driven revenue. And as in performing we of sort

to and our to increase that of it allows in list growth able We're those overall because drives deeper XX%. to that and guidance within us go We investments. X% still long-term do be

our items from strength and X backlog we in And it. levels, about it to know, very had convert ability on opportunity the we a you that, X above so to said ] really X being able to we'll comes recurring down [ to I of long the as to invest event continue do I've and a for before, revenue revenue able have are those think we've I opportunities while our do guidance, history as quarter. think very, revenue and Overall, driving strong look to items growth to be over we being as that, those had to of points think

we testing now showing continue there. to our right our line mid-single-digit The to I growth. in that expectations So is feel very with included We confident growth. be had in will position guidance, mid- high single-digit

And change stay I'll here that line think guidance. to to been is float has with the no us really third in So and I event the that that half a right mention which first item allows thinking. income,

X% through halfway to being about the X% year, that So very still and I are we within where we're range. comfortable think still

long well, here. But expansion we X-year margin been to being last initiatives the expenses, including but I in really, of any on not move have hung to in the you have expansion. over not our pleased that the basis based objectives. on execute operating am particular know able drive margin and only that history create been I the XX digital, XX deliver XX get about I to leverage comes have margin really the quarter we years, our to not taking look, expansion we points our to up just last On basis it do realign know businesses able very based on based when points business capacity. in investment

it playing prepared expect year, be that to invest importantly, still As in just items be the margin. AOI able at about in Tim approximately I out We to that we capacity XX% expected. mentioned remarks. is the more think full his creating as to But we're

completes. year So we'll as there the be right

Operator

question from Dan comes next from Capital. Our RBC Perlin

Daniel Perlin

expectation to quarters kind I and just we here. of go just wealth maybe into fourth wanted the third the revisit as

came So that of kind you said quarter. you in said E-Trade think late off, the I

of And get over to so our March I don't the jumping kind into skis want quarter.

we So the the sales could you about there the XXX that expectation step fair assumption? new that pretty down that is a from Is robust second look fact modeling half? despite it printed, that that in As that ] area? [ think

Timothy Gokey

Tim. entire is it for stepping don't the off No, It quarter. down. was it's E-Trade Dan, much Yes. we pretty see --

quarter forward. factors And some so is in will but those up There net I and going think similar be the may down, other you of X this saw positive. be the balance

Daniel Perlin

it. That's super Okay. helpful. Got

Edmund Reese

I'll add I to markets that both within and do Tim's that of that expect me weighted to then sort for year to you to And good management businesses, And the fourth wealth objectives. feel be be just longer-term the X% of both the X% full we for capital about those heard point, again, the relative We mention X-year to third that. think will quarter more the quarter.

Daniel Perlin

is bigger super Tim, helpful. That's this kind picture question. of a it. Got

page but Davos You at clients we to you said on talked alluded ], to here. it a turned you [ the little of the calendar bit, a bunch

back guess, I'm the clients. will maybe into I from come put just expectations, then figure willing in are capital you business. So of, And operating of pace think which to the where just the view, their speed demand pockets with out the trying the clients from? to environment, commitment incremental your

Timothy Gokey

Yes. opportunity same I I -- bit to days, Thanks, it's about bunch but little all talk guess, time. of it embarrassing to is these the clients great at Davos, a a connect a with Dan. And

for useful little about catch-up bit really half, of already So I demand new which discussions. a factors we're those is is the that then taking discussions. were it's a the second think really seeing X it that discussions it is it And before, I then is nice was -- of place. And set of talked

seeing cautious. is people are we And it -- are being -- and

is there at or So demand have industry going that they into they many But really areas looking big at they tangible that to incremental need arena. a of -- see we're fit they're very around products very our reports. change where as we needs forward, And shareholder returns address. look tailored specific

money the improving our they not that, going great relationship industry be the over really it. a driver that of the solution. it's is part saves with fund That but sales nice as of any clients' a in to other solution second have really implement for being whole half, We could way our only

the on parts point management proof had that while digital had a extended to lower look the when pretty communication period I just a communications, is that about -- that. to long-term that and the as they to be X of how firms success still and that, we're engage the The the our omnichannel with over XX% The are midterm so think that -- I actually digital, and communications, strategy, it fact skip large wealth of conversion want the don't do very their talking unvended. looking at all those but conversations market do continue had our they really you conversion of better to management of at cost. robust of players great wealth one is clients And the across

scale well. the there players are of of we outsource. as losing a conversations more as to therefore, are, goes going And in-house world basically and those And digital some lot choosing that have are

all the nice think sides second sales I So the communications half. have in some will of

strength discussions front Continued lot A in of there. office.

numbers numbers As not looking so investing lot really number three, business, but we're and for a partners long-term are of great in two know, are you our clients and there. having their one but and sort discussions of

half, double have environment, wealth having how a trial seeing sandbox we with the side, them out. sales around about to a discussions their talked I play in really first clients good we've and -- in they the that components those in components that And then hands the said

strength And see strategy. some across dimensions really so nice multiple really we of the

Operator

question next Our Peller Research. from comes Darrin from Wolfe

Darrin Peller

could Just be the in you now been what sales after the opportunities side. embedded about more year and When is is closed kind maybe again follow-up been obviously what either progressing wealth a the ahead. you that's just how now progress of on you've on in that cross-selling quick or Maybe making [indiscernible]? comment the think UBS -- embedded

Timothy Gokey

the Darrin, million. We our pipeline really Tim. -- over the Day it's great at because $XXX accelerated year has now Investor for we about think past it's you talked us. topic how Thank over is a it's at a

sales. live really about has be software makes it just our question the been inside. what the to see then hands-on keys, their as difference begin so we into a I clients to And talked data for own how have is about software And that pipeline to demo, with convert and to a huge able have sandbox,

strong UBS, of invested things that a pretty we good modernized and that components. we brought the in second that and it cloud. have traction we first And different one across broad led to components in why half is XX of for the feel a the And think were has is so I like to Remember set really half. there the and that

so of tax -- need of bit many corporate and or north whether transition star. their what it's see onboarding their client of sort clients immediate different in a is And actions, a terms or that's on little their to its sort path

And so in U.S. and we're having in just Canada. lots of the good both conversations

are. feel we where we good about -- it's So

Edmund Reese

add And just one to about expect million from in We Tim incrementality at sales, we point very wealth to in million just as feel good Tim. that $XX still, we we number. of quantified terms and what $XX said, incremental to

Darrin Peller

one just quick then And follow-up.

the revisit the print. the I communications just I digital you think business. then us been maybe rates about positive little growth obvious to challenged customer business. you I strong a from after deal it the about consistently. had mean, help to it -- first that the growth know went closed to how it's pretty of Just talked transformation understand BRCC, and know profile pretty bit

right was now. I think it flat

are what Just your again expectations remind that? for us

Timothy Gokey

strategy think we Yes.And one scale, our as any a But synergies time low-cost from our you and strategy broader I in longer leverage we in the of to said, is just really is to ticked have -- plug in be about are the will the And what talked great more the which working. just industry. up this omnichannel is in particular term, before, how demonstration was really quarter. down, one we provider that quarter Darrin, that communication our and be technology rates put growth to

still is digital. digital footprint high which print to drive print, XX% drive scale and as operations -- to in-house to high-margin unvended lose from consolidate then To print

remains that So strategy. the

to into line As we over continue we sort single-digit long-term with given of but not quarter, think of about many plays see growth how all quarters, growth low that margins top growth. expectations, earnings and any double-digit we expanding expect sort low

sort profile should from that's So business. that you of the expect really

Operator

Peter Davidson. next D.A. from Heckmann from question Our comes

Peter Heckmann

market how some tailored wins. talk about the shareholder I'm tailored But how of Going feel you sure upon I your guess, Broadridge? do compliance about and you shareholder back Can there? for there. it's to the reports around position opportunity thinking you're reports the dependent

Timothy Gokey

And we we clients you. tailored we moved now We got would it, sort is at I'll in remember the And And a the issues of revenue. away look and second, of $XX that help creates. come the industry that moved that the we really in issues thank sort got [indiscernible], of argued to this [ an Peter, million to a -- about XX that solve as when a it Yes. uptick. a about a is the that our headwind pleased against million when the commented but have shareholders, $XX world uptick. back what the I'm had -- when ] we from

I think and or going people that reports, It's challenge just what very XXX-page is. reports The with so taking see the clients annual than face shareholder nice. that semiannual revenue to is we're more that to it a saying, for that digestible replaced, remind more tailored receive are that more investors. much much the sort of is people and really that readable and condensed, creating care X- it X-page to are data points key people inside what there about is summary which

for reports, ] tailored. [ be challenge that them that, to new has regulation the clients to the is creates The that class the share our wires has it good. that's has. client So It those specific

class you. would had past, talked something your you We SKUs. to report we increases earlier That that said, be look a and XXX and to an of you makes and you advance what it reports in going dramatically have them. to So to for have number figure now to to to you That inventory different in the table hard very that's in about print the to you X,XXX has XXX share like we'll out talked a a be have means try reports up reports. it different specific gotten and the call fund now and

that savings inventory the [indiscernible]. We multiple facility there's in the that of invested digital, of lot can this and savings our in that. a of but postage lot on all -- on all a is a solution that digital, all print, things line creating So all significant database which and of that still envelope latest in in is reports, is envelopes because digitizing right the all for we've -- and we and the the XX% regulatory put but digital things this can print we also same of percent have of is significantly it's the

into clients reports single other a ability over consolidate all of a our it. creates so very doing way savings significant multiple And to that for line, any envelope digitally in it

to to side funds are high registered fact, of in having many And themselves a the used a do this for we're So that. percent us really funds are coming that us on to coming -- also that. for

So that's and of mailing output the whole side of sort things.

points. other can unique about and great be Donnelley for digital laborious that The XBRL And by and in of reports the to very tagged is and moving side things. done the data other has of And into delivery process. -- the That a though, others, things one regulation is upstream is thing that composition extraction of by Confluence. be need with work which the I'm really pleased, historically, been by Financial

we composition natively thing. same as embedded so very is built makes don't of second it easy to the unique that also come it in that that And have in a -- it's versions, way sort it's in tagging built that And XBRL many process. back with of have pretty a engine is have first you to the all,

have upstream a of to seen So to asset solution move it's and interest enabling managers. much us better newer composition We're there, a that's relationship player deeper the lot a with side. a really but on the much client we've

Operator

question next from our comes O'Shaughnessy from Raymond And Patrick James.

Patrick O'Shaughnessy

well guys to outlook as growth the GTO, growth. that X% I I seem today, both you you in term. for heard a as medium speaking to think, X% to X% X% to to past for And 'XX So quarters, in, business speak fiscal recall I

a if curious of then that faster trading year, bigger contributor And terms business? than I to may specific has So or I'm higher changed anything had be previously is this to for anticipated? growth your volumes you outlook in think

Edmund Reese

I'll and We for growth one objectives, emphasize at growth and is question. thanks for big X% we important us to from objectives X% an out X%. did. moving that changes our to organic X-year growth X% our the change Day for that Patrick, of an Investor did come to

as strength growth Now that But in the we've that. fiscal do Tim lot said be the we with have, there the a earlier, we strong front management, we wealth that been making in been capital incremental our saying, that office and given investments think that markets the sales that GTO business in to strength will has well. even expected 'XX a contributor the we've

you're the of our and going X to capital businesses performing X% that, right And with wealth both X% to over the next GTO years. each see line management in objectives I are -- markets of think here. playing Those

Patrick O'Shaughnessy

to more detail due All you kind spending represents? up? short-term of spend more very on investment bringing there that right. being Are type of a that expenditures able you little you're revenue. ramp And your to higher bit Can as give of on maybe kind guys Are to are the event-driven you to able consultants? modulate other

Timothy Gokey

that onetime we're it's investment. a with things making on clear question. investments one are of the that is of Patrick, our businesses we're is Yes, all our great It very the

technology as of we building we, have for kinds a providers relationships with things. So whole set many external other do firms of consulting, -- have

going accelerate. that are when And largely but the that the but not may long parties in ability for be that incrementally here and is deeper already already those, be really for that it accelerating run, into projects we third leveraging to invest, have motion it is we adding can things are underway so to associates going

Operator

from ] And from Brendan [ our next Miles question JPMorgan. comes

Unknown Analyst

Jane, JPMorgan. Puneet. for on from course, by I'm the way, of

following updates the the on can free the ] cool, so the [ cash platform wash generation. unfold been your I've J been curve stock it's for like in all on the So on investments really to wealth, flow

on kind Quickly on this question. market a AI, a So last It off a capital quick like like ask then a the quarter update the to bouncing And I of markets that's that in great technical quickly cap see. us of you just question on state it maybe Could -- question. markets. seems exciting was give in can business? I

rolling Is OpsGPT that you Or the out, tons data BondGPT's data. incredible guys are kind is that are you you products like that's I data and custody? have in your For understand of just of data access to own? it that

Timothy Gokey

Yes.

the pleased an activity of last AI. capital be in where So space, specific about to nuances and that -- of talk is because particular natural come is It the back a mutualization able leader talked in, earlier, expect as I'm to investing many market we a a and clients, depends then just to our about start broader we're one area really on be the I let doing because with me we're because this getting real often place activity. value out a this it and for for to

client one for data more invest would have better any sense any can invest, than makes client it to one we we can and than have.

a benefit really nice -- our for opportunity a of and So mutualized it's benefit the and clients. for to

we -- terms we specifically data, lots data across obviously of of the house clients. do in Now

specifically could and be careful our we being It are this clients permission that we across but are to -- our future, permission. extremely we of are owned is -- in the that client by very Could careful client. with that. would how by that at those with longer data clients' be opportunity doing there our models is leverage we're be it about point, terms have a client that is on pools, We is -- this it in possible

of that and out you at like look there's we expensive it. a knowledgeable reason then fail, And present looking today, queries whole is the to put write kicks research an it process be it a not database of say, that Internet that professional there's, have OpsGPT, then easily that, and it cut process research answer database can tons fairly it? able referencing it's fail get up using the databases things what's ops the When and at this things together it be by about when other who to automated of to to the and join an sort off people quickly working And looking to party out for sort in then and real That really like real contacting cross and and time. data can that of validate and here. ops AI to SQL

of on behalf the much company. scratching this terms taking a I possible. be it investment of really And And think we'd remember, on this very about not will is in -- and clients be so our what very of are people that just idea surface really we're just technology company, a efficiency. the drive we're industry to excited excited about help But a lot the

of that's So efficient, as our things we clients out really our save money. not that's coming helping personnel more make

more. AI, I'm we'll be lot a that's talking it So about and sure

was part capital the market of other just the The state on markets?

Edmund Reese

an things, the item to is point the that are in One probably to talked because be the thanks of out asking in post-trade solutions. continue, there But into making the as been X me things and have earlier, our I'd revenue, is capabilities the this the our allow front is mentioned. that ability in BTCS, Tim that there. convert Brendan, we question, to office of it For come drivers does hit we brought in different particularly as we business. able given each Two, units back investments to on about just across our backlog see our strength revenue case probably growth I'd and growth continued capital to markets, that for double-digit and X Patrick business

that the to But we volumes Patrick did markets this quarter. in is for go mentioned, We a strength boost continue of point the converting into post-trade cycles into That We new see some business. in volumes our trading that trading strength planning a see significant And in our the strong solutions and from capital not past and the over revenue. within third, that Wolfe very a clients growth expecting business, as with fixed is our to mentioned, strong of that, importantly, almost assuming flat. in trading, And [ growth objective driving capital has markets. us the income continued have be along couple particular, confident X% in quarters, again, most having to X% will that is ] boost here. also I

Timothy Gokey

when And you take business. I'm -- very one capital is esoteric is sorry, have markets add other margin which to our I a -- capital thing, just

with capital in tier And you it very put innovation in take conversations leading team. to great showing going, AI very with LTX, all team repo, real with our You are those the where that across that are of clients. we ledger front at markets leadership edge impressive -- areas any capital is having digital And are with front back, thought and client. of see a markets top even the the

Operator

question-and-answer And back with that, management any like for ladies today's the I'd gentlemen, to floor closing concluding be to we'll and session. turn remarks. over

Timothy Gokey

this of Jamie, thank you thank morning. and all very for you joining much, us

to enter runway to and a strong long are As heard, we on difference make track shareholders. half, our ahead. our everywhere to deliver we you as continue I clients, for growth a investors and hope another our see for and larger for seasonally our year And associates we second

your this much interest very you for morning. Thank

Operator

thank with and for that, conclude joining. today's you call Ladies conference gentlemen, and we'll We presentation.

disconnect your now may You lines.

Broadridge Financial Solutions (BR) 1 Feb 242024 Q2 Earnings call transcript