BR - Earnings call transcript Q4 2024 | Broadridge Financial Solutions, Inc.

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Operator

Good day, and welcome to the Broadridge Financial Solutions Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to hand the call to Edings Thibault, Head of Investor Relations. Please go ahead.

W. Thibault

Thank you, Andrea, and good morning, everybody, and welcome to Broadridge's Fourth Quarter and Fiscal Year 2024 Earnings Call.

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

me Chief this CEO; call on Tim Joining our Gokey, morning and Officer, Financial are Interim Ashima Ghei. our the

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

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

Gokey. turn Let the now me to call Tim Tim? over

Timothy Gokey

and good be joined to financial Ghei. I'm to pleased you, strong be also and interim operating Thank CFO, 'XX our discuss morning. by Ashima fiscal Edings, to results. here great It's

in Ashima we continue luck Edmund took from endeavor. his and next on good wish over to July X

she past as was in ICS work American to with as Importantly, Broadridge. the brought CFO ICS here she her and role Previously, the our strong has I've and experience business. a deep in had insight of opportunity strong Express she leading driving XX Ashima X.X over role closely combination a the to years played results at years, of of for

welcome. Ashima,

Ashima Ghei

here. be to Great Tim. you, Thank

Timothy Gokey

in quick comment the with I'll start market. what on a my we're review morning seeing this

has months, the been to Over stable the past improving. market X

about strengths higher and and modernize week they communications, drove has much closed Broadridge's moving volatility for have seen easing questions year. clients technology These sales pace engagement. growth. record This for and of sustainability play trends the infrastructure rate investor proactively been Our to the with the of past simplify enhance quarter and digitize and to their

another But a environments are 'XX, backlog represents by where It's fiscal already kinds and too if Broadridge turn. year early it confident resilient to model these really does, backed investing I'm in a and a deliver business trends. this going into market recurring on is strategy if Broadridge's capabilities. sustainable record revenue resilient strong to closed, of stands out. our that know and of growth, volume sales We're products executing our poised growth pipeline of

I very about scenario, any in feel good So we're how positioned.

review executing I'm our and that and happy strategy Broadridge capital to progress. simplify modernize to in and to wealth report management. digitize that as results strong context, governance strategic innovate let's and to is With on markets our democratize

us reduce complexity to adapt drive and record is to That and closed driving sales. as trusted position, transformative and help innovation. trusted regulatory cost look clients them transformative Our change, with to partner along and execution, strong

For continue growth enabling closed sales growth. strong sales to the record $XXX both also year, deliver and to Broadridge XX% It's growth. million. That's record Broadridge in sales and sustainable to reported

and XX% in organic rose on full recurring EPS the For X% revenues. adjusted year, growth

announce shares. As the strong our by M&A a flow cash to XX and fund balance XXth Higher in annual sheet Broadridge growth flow the us we've the increase also all our tuck-in strong $XXX in I'm at XXX%. pleased ending that XX% accompanied repurchase years. double-digit cash year, increase dividend, conversion, and in last was million seen enabled year free investments to

Broadridge deliver has strong and sales the execution year to in fiscal strong positioned Finally, and of growth another combination sustainable growth 'XX. of

million EPS to X% of and growth, $XXX includes recurring Our organic X% to with closed to guidance adjusted X% million growth $XXX revenue XX% sales.

business. generated into we with on Governance Slide our results, dive starting X these strong let's how Now

democratization the to continue in We make strategy of drive strides governments. our and to digitization executing

For FY Fund the growth of recurring ICS democratization and issuer communications. business in Main Part continued Street driven is Data-driven 'XX, driving X% revenue growth, investments Solutions, our digital enabling equity by reported investors. fund by and

X%, be area in demand and single-digit growth trends for equity was to continue a line advisers driven growth by in X% full was was to of year past Mutual more. fourth focus high position was by mid- quarter, for managed including X% wealth funds. for self-directed with flat. the the for or decade position accounts, driven which fund growth year, key growth Full where That passive the ETF

account the market that picked X% only quarter, Money have less investments growth grew bond up fourth that be fund of positions, suggesting than investors tend or XX% market to which for X% to one cash. Recall money the the many by versus While remained fund total, multiple trends remain in to funds. mixed. in content demand equity quarter, in

growth growth. markets So money to in overall tends position lower

is Broadridge driving shareholders. choice growth, by clients democratization position Beyond fund to their implement helping our voting

governance, separate in say from X to investors year their XXX funds are a We than a enabling offer now up ago. only more greater

also in see strong funds Europe, We're where choice differentiator. a as seeing competitive interest voting

some making this accessible. in meeting on investors Our We Disney fourth and VSM we're quarter. playing the for platform and a investors our our are hosted in earlier mega more more guests capabilities as also largest shareholder and enabling widely meeting to the year the a cap companies virtual in the Tesla And most meetings company. X,XXX role weigh recently tech shareholder of of on held including than market, in governance

shareholder with pleased tailored success report our especially solution. I'm of the

that previously you X-page month, digestible X- tailored beginning more to a semiannual with shareholders As last and most condensed of report. replaced page XXX-plus reports shareholder received the reports and know, annual fund

their enabling complexity. forward doesn't or communicate shareholders, in it added without funds cost a big more come step it's effectively to While with

and and individualized work. communications streamline and new to then and solutions digital tagging Funds of print now a we need to that greater demand, higher-value composed need first To the created composition to number to lower of costs manage much be digitally distributed shareholders. reports meet distribution the these that digital

overall of year. It's deliver compelling to face of do of this sales to sales solution growth deadline great the to how a clients. example clients, a asset management critical bringing the Our was and for more services looming contributed regulatory in innovation is value-added past our solutions our Broadridge TSR for and strongly our ability

our digitization double-digit continued our digital in strategy our business. crossing million we customer and is communications solution. new 'XX delivered threshold in Finally, over onboarding 'XX, in clients driving revenue of fiscal After print-to-digital by focused the driven another $XXX year digital of to wealth the growth

sees fourth as accelerate an onto was client This client and our reached drive In digital opportunity major communications financial we additional infrastructure its with an Broadridge's a engagement digital capabilities the to firm platform. Broadridge print quarter, who bring agreement to services savings. existing

like a BRCC give this sales 'XX. in business New growth for runway our clear

markets capital Now franchise. let's move to our

BTCS to of year, asset office, and rising new billion volumes face front our ever-increasing strong the strong at In our in clients pressure classes by the X% make drive We the settlement the revenue lower onboarding to trade clients. goal and progress growth simplifying spreads Capital bank innovating of global for across the $X across multiple post-trade geography. faster and the from trade life milestone, continue driven against revenues crossed Markets cycle. by

scale platform that We're by state-of-the-art global execution, and trading gives reliability. order need management, meeting that a SaaS best-in-class firms delivering

derivatives extending those new We developing the by solutions. capabilities are futures to options now market and

these fiscal back-office can bank, reduce post-trade complexity is settlement a and T+X success May strong of Only simplification driving leading a The notable and a Nordic we or In operations at to helping our a and enhancing and enabling kind of was the with post-rate to engagements. help existing the pipeline change Broadridge of multiple our with municipal our of that is cost culmination continue transition across also began clients bank international risk our clients to equities in operations major and reduce efficiency. complexity to a global the corporate reduce end the and of North that capital. systemic operations, The deliver scale, our global example. platforms lowering capabilities. additional shortened bonds regulatory the post-trade clearinghouse also their was of XXXX. bank operational to markets, initiative brought European the global goal dozens and leading at 'XX, onto Broadridge clients platform. By We move global collateral simplification simplify their means combining and adapt requirements cycle of American Driving and to optimize

showcase opportunity it benefits neutralization. to was the another Broadridge, of For

in test reduction in date liquidity. For collateral more meticulous team in testing, than change, our marked participate clients environment the and own with and planning initiatives The seamless affirmation A by transition industry-wide CDS. has T+X a year, year leading improvement led and and result a communication. the delivering trade DTCC and on requirements set industry after along preparedness, a enabled to test their that a for is up rates, our XX% clients, been rigorous client ago, we robust significant increased we thoroughly focused certain

driving innovation trading AI OpsGPT console. we're of growing technology. and AI solutions, the our distributed Finally, across We're and now adoption our including our BondGPT in seeing interest ledger capability patented through

our to is and 'XX new monthly platform volume increased added fiscal trading $X.X Our distributed sales external X liquidity. increasing in average platform repo lower DLR transaction ledger delivering reduced trillion. We clients fees, our onto

go-live fall. journey, of of on Stanley the in deconversion on revenues helping Now of X% Morgan are the of Morgan our and capabilities. terms Management the part with this In their platform clients Partially transition let's of 'XX transform rose turn year. driven After UBS growth Investment Slide a by and E-Trade. to own modernize we last helped beginning the Management X. suite was and modular at complete Stanley contract E-Trade Investment the the Wealth we fiscal offsetting our Wealth, Wealth our X-year

in sales Wealth fiscal and more More Management solutions. from our our platform solutions rose Wealth a Investment including broadly, than the of 'XX strong contribution XX%

and and operational enhance that pipeline effectiveness, adviser to Our client demand grow, continuing engagement help for efficiency. we're seeing continues increase tools drive

and markets business. reported from benefited sales. Broadridge and grow demand reports including 'XX we've adapt million, to ICS GTO. reflection steps the strong shareholder close closed in to and It's to more record their Canadian $XXX market. change our clients clients business business for million. the fiscal taken to 'XX. quarter with Last closed in I'll back-office direct regulatory execution review of review fourth in our $XXX of That acquisition through of close process, to capabilities than our in sales tailored accelerate first XX% Canada our of provides of half moving the is firms. and wealth the ability announced expect deal bring The Canada. we capabilities, Kyndryl's platform technology it will SIS including The SIS Canadian solutions and to addition in Canadian existing new now our of middle sales we services both capital to my in financial SIS help strong digital for growth wealth front, from quarter, up a and our the fiscal We the

our gratifying It's to growth. see investments translate into

reinvest to sales strong a a a begin fiscal as Broadridge performance see year into transformative we strong sales them And operate, clear is strong that year, of innovate another help sign clients and with going next themselves. Our They grow. pipeline trusted to expect 'XX. partner as in

my closing Slide up on wrap callouts some X. review I'll with

is main corporate number of powering investing Broadridge elections get their our choice. growth First, We're extending information important that critical democratization by strategy. of We're voting driving make growing heard. their need investments the executing suite to ensuring and understand investors they and on voice a

regulatory an solutions. up stepped innovative As in report upcoming tailored reporting, shareholder the to we develop fund change

solutions print digital have clients, world-class low-cost our In and solutions GTO, enhance years combine ledger capabilities for derivatives reduce and trillions we We're and and and invested markets global faster, with to the digital, driving settlement technology. reach. our back-office solutions of and front with assets faster built And in dollars times we operational are distributed engage our with of extending adviser innovation clients AI-enabled our started We help productivity new clients to journey complexity. and enabled trade capital acquired, network. of their delivering ago dozens in and

in Canada. our sales leveraging more we our the extend including solutions, grow and We're of live we're modular technology wealth broadly, platform. the driving business and We're with as

closed Our fiscal in X% EPS growth adjusted sales, these drove strategies growth and double-digit on recurring execution record revenue 'XX.

our expect X-year we in we're growth ahead, Looking year objectives. on of fiscal 'XX, deliver on strong track another sustainable financial and and to

participate is and their enabling Most runway reduce access all look Digitalization AI. banks those of future continues shaped investors, are is the behavior we to businesses the increasingly by operations. every to the data constantly of Regulators for disclosure investments. the complexity a are cost Trading and continue to rules sophisticated them in updating and the improve investors to growth. and of world to their trends trends one see modulate and importantly, around power market to with long way engage transforming giving Technology more for accelerate, clients.

speed our even these on our Broadridge positioned we We've billion strategy executing clients growth to more power create. meet economic volatility. challenges about all reduce change and opportunities strong our is market environments, higher attack is as optimistic Broadridge's vended model and resilient I've future. business We're and growing in and cost our been more help to increase mutualizing of trends the of $XX opportunity. to almost periods do never true in particularly The

hand I thank to want associates. to over Before Ashima, I our

today, work executing would none and focus client and fronts is be our Broadridge everyone multiple As the I've hard of on talked without that at of company. about possible

for work serving clients your our for in for tomorrow. you industry to and today thank helping our transform So

Ashima?

Ashima Ghei

strong XX%. all guidance of delivering long top was growth to strong different. 'XX and year to great constant strong currency sustainable shareholder line grew recurring It's bottom Broadridge results the and fiscal returns, Tim. record you, for adjusted and has 'XX. discuss and revenue X% of a you no our to this grew review and EPS track Thank with join Fiscal

our I confidence objectives. that the gives growth items on want we are on our out fiscal and X-year through go I to the results, call key Before track guidance me 'XX to that deliver

drove into and backlog, $XXX our strong a 'XX 'XX. of backlog. million closed fiscal and growth visibility in increase revenue sales sales in revenue giving First, Record XX% us

growth Equity growth. and growth position position was 'XX X%. Second, X% position in fund was

continued improvement mid- shows in single-digit high current with Our modest those in in mid-single-digit trends growth growth to a and equities funds. testing

expenses, margins. and Third, investments

of history operating long a have driving We leverage.

and This long-term will to earnings initiative that restructuring margin deliver to we growth quarter, continue growth. a completed position us grow fund investments, core

and That capital 'XX, recently fiscal to last, have we investments. announced line million contribute directly allocation. our capital tuck-in and Fourth growth. M&A X million will shares These bottom and top areas adjusted EPS repurchased X.X and calls $XXX 'XX In position X X% growth, deliver and well recurring us our which to fiscal constant currency financial XX% to revenue, our objectives X% organic; all to guidance, X-year almost for growth. for X%

organic grew numbers income of drove that, closed Slide $XXX the on operating With through recurring and Fiscal let's million, grew recurring basis. 'XX EPS an constant to $XXX $X.X up X%. X% grew XX% X. to billion, on go which revenue our sales currency we to revenues $X.XX Adjusted record Adjusted reported backlog million.

constant fourth quarter revenue $X.XX, billion. to Turning XX.X%. record grew a X% X% basis Adjusted now numbers. quarter and currency grew to to a to sales operating Adjusted $X.X the million. and EPS Recurring was rose on X% headline $XXX XX% income rose closed AOI fourth margin

by recurring Moving sales from billion, X% X. a Slide to combination position quarter revenue $X.X revenue growth. rose converting to driven mid-single-digit and Fourth of

objective was and growth For our organic the essentially X%. full year, to with all revenue recurring organic in X-year growth X%, line X% of

X% across and all X to slides grew revenue lines. QX, to In recurring review GTO by the the powered next our product turn across segments. Let's ICS ICS and growth growth

called delays fourth which results, in the our point to added quarter We X saw timing the growth. benefit out we've also of QX

year, were up revenue grew ICS Regulatory full X% X% the and in in full $X.X to the line with growth. year, recurring QX For position X% revenues for billion.

Looking with ahead, our in continued revenue position we line in testing. expect fiscal growth mid-single-digit 'XX,

solutions in year, in the closed revenue which growth in X% The the contribution retirement solutions X% our products. Solutions growth. QX grew registered for led the growth by Data-driven year, made X, by for disclosure a full products. modest and June revenue analytics on and driven by to shareholder and in very and full Issuer Advisor Fund Target fourth data our of quarter X% and increased workplace acquisition and

the rose strategy. digits full as the revenue Customer for in both year our execute the continue fourth and revenues double recurring X% quarter and we Communications the to for X% print-to-digital Digital grew year. quarter

We accelerate to 'XX combination expect growth of growth client in by digital new customer wins. a and communications driven fiscal

and float driven growth, digital loss position and ICS stronger strong growth sales, we which than ahead growth fiscal fiscal recurring 'XX, strong [indiscernible] mid-single-digit income. from the Looking continued expect revenues more revenue lower will to of revenue offset 'XX in by

Slide recurring Turning to GTO was on revenue X%. growth XX. QX

revenues in the of end Markets wealth growth full our and year, organic billion, revenue X% growth strong $X.X X% the strong and X% BTCS, fourth grew growth the capital X% across both quarter. businesses. at to For new to sales more GTO growth from revenue grew X-year objective driven sales high Strong our from trading by markets Capital by than from year revenue in license X%, powered and offset volumes lower higher increased Full global revenues post-trade clients. in revenue.

quarter the lower X% offset growth the Investment as was for sales E-Trade new Fourth revenue Wealth by was and license revenue and full year. increased Management deconversion flat from revenue.

impact will to first growth fiscal wealth first half We E-Trade management 'XX, of especially weigh expect of on in continue the investment the the through and the quarter.

we lower our at be Looking with end Wealth to ahead Management. to 'XX, growth guidance expect in and in markets range, growth growth X% stronger capital recurring X% fiscal to Investment and revenue GTO the revenue low of

Excluding the higher to growth revenue management at impact and of of the investment the would X% E-Trade, be end X% guidance. wealth recurring

Now by single equities mid- in our growth Position to quarter. the let's in was volume to driven for fourth quarter, almost year turn X% growth Slide entirely accounts. testing. Full in Equity to rose position to and managed trends. funds to line growth review with growth double-digit the both high X%, in fourth digits XX returned

single-digit testing growth. healthy to high continues Our mid- show first fiscal half to 'XX

recent a testing X%. positions modest in in fund growth underlying have double-digit X%, is driven money the flows and in months to current indicating and in market growth pickup position by funds. Fund fund was quarter. passive to between of growth to growth funds X% metric Fund strengthened X% position our rebounded year Full

a XX% volumes. in both QX, basis volumes Trade on blended higher grew and to trade equity volumes. fixed income driven by Turning

full the were volumes up For year, trading XX%.

revenue Slide to for move now XX Let's drivers of recurring the growth.

revenue quarter, growth growth. X between and of internal all For X%, balanced organic points virtually and growth. sales was the new provided business recurring Revenue from net closed

year. the retention for was revenue quarter for rate full XX% recurring and Our the

Adjusting and E-Trade for positions points. remained the deconversion, X XX%. growth, rates at contributed primarily trading volumes retention internal And

Adviser our to less closed small basis beginning revenue than July. in quarter fourth and CompSci growth Lastly, target segment. the at X of closed X points ICS we acquisitions contributed

fiscal contribute We growth. 'XX expect to revenue these X points basis approximately recurring will acquisitions XX

on guidance margin. recurring $X.X contest in largest X mutual revenue and higher $XX was versus of total with year. the growth. Slide QX our finish X billion, QX point levels Event-driven these I'll Remember, contributed points was growth, and quarter revenue the dilutive activity higher X% contributor the postal by revenue point grew revenue Total distribution growth. XX. last rates. revenue to contributed on million X benefited to X% of operating increased no-margin to Event-driven driven from revenue and income fund and equity fourth impact have proxy revenue Low- adjusted on a of to

turn enabled our the let's of in timing margin operating long-term was of operating was income QX XX%, our investments offset meeting XX.X%, earnings was objectives. leverage 'XX Slide basis for from from higher 'XX. the points while increasing income combination deconversion our and expenses. the absorb The growth from and to amortization restructuring our positive fiscal So benefits a XX and leverage and of margin E-Trade annual us Adjusted by platform from operating wealth operating impact basis, full to fiscal up year the margins XX. adjusted on On

distribution, points. The by little of increased earnings revenue on impact have float and impact margins XX net basis higher which

in and cost management realign included these quarter of will growth. also restructuring in which and not would our businesses annualized actions our matters. million note various fourth of $XX generate incurred items, year completed us estimate over began charges we EPS. investments, to will earnings were the that During last the non-GAAP quarter, adjusted in fourth Rounding legal scale $XXX savings, deliver settle We further to program income to the I fourth quarter position calculation operating $XX We our adjusted million in that structure. we which out incurred fund business our charges, million some streamline and we

to very where Let's by million. had year. a XX% Fiscal driven record a to move to strong Broadridge very XX% ahead fourth sales on closed Slide closed quarter XX. sales $XXX $XXX sales sales a strong grew million. 'XX rose

we and strong revenue solutions across shareholder $XXX As report Tim, you well and wealth from of capital from our as sales digital tailored strong heard markets recurring management benefited solutions. both revenue. to sales XX% as our equal our strong of These growth and 'XX fiscal million, investment lifted to backlog our

I'll XX% conversion Free on Broadridge million in more from free a to period XX% flow fiscal to from investment. higher flow increased after cash cash a generated 'XX, returning XX. fiscal 'XX. cash turn XXX% 'XX up Slide of XX% flow to $XXX now historic fiscal levels 'XX, of and in in

approximately expect flow cash 'XX. We free of XX% to XXX% conversion in fiscal

to next Slide allocation XX. move on capital Let's

return to solutions acquisition M&A. data and issuer with smaller acquisition enhanced and July total, Fiscal to million we continue platform software We marked $XXX $XX our to X take capital AdvisorTarget and the analytics a of on capital allocation. In million closed a investments on spend. balanced capabilities. to the made we CompSci of also 'XX, million and of fiscal expenditures augment $XX our In 'XX approach deployed tuck-in

of fiscal In capital XX wealth year XX technology will May, not and million SIS million. the The half acquisition USD is XXX during is our acquisition EPS first USD a operation. the impact have year revenues and on of of for the annual adjusted Kyndryl from leading first SIS margins million. to we of to with proposed announced platform or close significant our approximately markets Canadian during a expected USD

our it included timing, in guidance. the regulatory we have review, uncertainty Given inherent not of

'XX SIS fiscal it after We will closes. to our guidance add

fiscal combination external and repurchases. we to We return shareholders of a 'XX and through and returned in excess dividends to million internal shareholders. capital investments, After $XXX share

'XX million XXX During the repurchased we in quarter, shares, fiscal fourth gross to bringing XXX of repurchases our total million.

below the leverage our target ratio, X.X year long-term million. repaid $XX million ending of of we a with X.Xx Finally, debt,

to our XX% Board increase share. approved a per $X.XX dividend night, Last

in Tim capital growth our commitment long-term the XXth increase is which earnings XX double-digit our our noted, years, last As emphasizes sustained allocation. and this both to balance

this I'll morning some prepared our on close remarks Slide on guidance with XX. my detail

expect sales year and EPS 'XX. in growth adjusted healthy growth, core fiscal margin sustainable recurring of very expansion, another We revenue strong close

Let through revenue. with first me walk points, starting each those of

constant revenue X% backlog. to million of recurring almost expect new We organic, $XXX currency X%, all we our sales by growth revenue as driven onboard

We expect at to revenues ICS of recurring be range lower. end with higher the GTO that

revenues high We be end our of historic second major expect event-driven a at at driven range quarter. the to mutual by in a campaign our proxy complex fund

rate Distribution are to rates revenues double-digit by stronger grow forecast postage low print and at powered BRCC higher volumes.

our these expect dilutive impact a margins. no-margin We revenues to low- reported to have on

let's Second, to move margin.

be income basis operating line adjusted anticipate of us higher operating enable margin We combination points of underlying expansion, with the management XX%. expense financial expect core deliver X-year to will leverage We disciplined our and objectives. XX margin over will approximately in

of float revenues lower by to offset be and distribution higher We impact the expect income. partially this

EPS. Third,

sales. in EPS expect We Embedded Fourth, closed expected this is year strong we of another tax to outlook an adjusted expect of growth X% XX%. XX%. of rate

our reflects Our SIS. solutions. $XXX results, guidance will 'XX that million not sales of to $XXX lastly, million include impact I of remind the our report And growth tailored excluding guidance does range of continued shareholder from you fiscal

of strength highlights 'XX Broadridge fiscal Taken together, our business model. the guidance the

conclude, I on our insight me before first let quarter. offer some Now

event-driven year lower our in by versus the full of the range, of driven revenue low historical part of QX We account expect XX% 'XX earnings XX% impact. EPS our at and adjusted E-Trade first our to quarter end will for

a our So up summary let's results. strong quick of wrap the key fiscal from takeaways with 'XX

sustainable EPS First, adjusted revenue Broadridge of delivered another and and year recurring growth. strong

us demand growth. highlight record and into give sales future visibility our the strong our closed for Second, solutions increased

putting double-digit acquisitions our cash strong shareholders are and share and we free with another to for repurchases. work increase, Third, strategic flow dividend value-accretive

year 'XX, our consecutive Q&A. Broadridge With objectives for to strong to deliver well growth move that, fiscal fourth the poised us X-year track to cycle. Finally, is keeping on in let's another achieve

Operator

Markets. RBC from our Dan come question will And Instructions] Capital first of Perlin [Operator

Daniel Perlin

a the Tim, is different appreciate wanted revenue kind has think of and in this historical here, volatility this a really of ask I the been? how uplift the heightened on volatility, recurring kind you seen in at little might about are the speak, other and behavior what volatility we'd we performed past, times and had just you pretty there periods that look question hands, structurally the this go remarks, kind you to in The stable where if And are I in the touched business client have this but seeing of prepared material model. so where have to we've has we business we things today around? more bit

Timothy Gokey

something Yes, most Dan, And features about our resiliency. thank is of one significant. model prepared knowledge moment much that But whether business in attractive special its a of we do more you. the is seeing my and Thank just you no obviously, have this or very for we're I that. what remarks is think, I highlighted

variety economic things fee down. of $XXX highest And they That is when a we have contracted. X. when cycles. driver and of financial our million there from already Global gone revenue recurring. position pretty went And are a you sales, are go through that it at at revenues, it's crisis, the It sometimes XX% has look And still down. look been didn't resilient would you below stay growth, positive. It backlog

interest trading. We're and benefits on volatility us hedged rates on

of model, where really we all that revenue business a recurring of where the you bit a now in fundamental compare components those periods we've I of near sales, volatility a plus high around little from not really in intact. resilient volatility, revenue, The different. think lot High are it's trading, remain past if to is So been that term.

a little physician those that speculative very point. And move really growth slow to at numbers. it's all causes when this Sometimes broad volatile, but our bit, don't things that's

X% revenue today recurring So confident X% pretty we earnings. XX% growth, to our that's why X% guidance are around to on

Operator

Darrin from Wolfe Peller of comes question Research. next The

Darrin Peller

Ashima congrats just call. trends. wanted the bookings to and base I in touch strength welcome to on the

I $XXX million fiscal the above 'XX, range. for closed sales was hit which think you

was for you midpoint, the had at said think the $XXX million I year.

if you new really -- take and a where demand So demand drivers forward and for drivers right revisit you're back key bookings new in in then of just the of revisit strength and the what seeing just maybe real and now of going areas sales? terms the closed step

Timothy Gokey

stories, both Yes, sales management. Darrin, the shareholder onetime $XXX results that markets of million, sort in 'XX but excluding digital the of grow strong tailored an off growth of expect other proud at by off with -- Look, of we're solutions, reports, were X reports, too. we we and really shareholder the impact driven much. and like investment part and out sales, story, reports thank to you really drivers, if that wealth levels, those sales the TSR. in record tailored very pull tailored those And of important shareholder 'XX were And capital you

like nice each investments on we this investments those the sales growth in strong the and What in is for front pipeline we has digital, really of areas are wealth. of saw that aligned investments the seeing year, those that we're in especially regulatory, next have making, capital side areas each And investments that with markets, a been in office year.

the their those of you that the we where reduce helping those. as demand about on solutions hit we've clients or mentioned, our think we're grow we revenue and bigger helping seeing in of about as think our clients cost that talked themes really about So each areas sub

to continue very looking to we're ahead, be expecting positive. So these trends

million our grow expect $XXX the tailored 'XX to continue Excluding million we of about pipeline. to strong on sales reports, feel $XXX our in shareholder FY the based and good we to impact

Operator

Faucette James Morgan from comes question of next Stanley. The

James Faucette

a wealth to be to on Wanted how strong front, some track the road module should still $XX deliver Are solutions. million incremental of wealth. you like wealth on of for down the on $XX you alluded million about there? growth new It And seems sales? to to the thinking incremental opportunities management ask pipeline we the

Timothy Gokey

sort for happened Yes, out after you benefit quarter with our X% being by of of E-Trade. continued the the of last bit thank how James, X% onboarding see the much. end up a perform, the continued offset We we 'XX partially really Remember, the E-Trade impact. to from we happy past business at momentum year. with wealth And E-Trade were if little very high first the do really as we year in UBS, X% obviously, pulled end of to that

first impacted. quarter will year be the So this

Look, of own call right transformer to to the is always the XX -- sort way near opportunities it our which pipeline is over of sale quite able and $XX like a goal, right that million. higher of not pipeline in a the obviously, in pipeline XX% months million, the use the was sales modular that up but $XX million if is ago. nearer bit and it terms, to strong is pipeline than and We who so now year $XX their really you a That is want was transformation. though up And long-term it was XX% year-on-year. we be before. it, to as the clients And with approach remember,

So we're that see think continuing to I build. nice

being opportunity. long-term really in the to to And the to bring that And with to then add looking into to our we're get market bring going as and able Canadian accelerate really, wealth to well. SIS as platform on the we that's Canada, investment SIS forward

Operator

next of The question from Puneet Jain JPMorgan. comes

Puneet Jain

like prior that deals. seems and CompSci or deals typical It from your are different the AdvisorTarget

they noted, we areas. more As as both them the nature your in both as like as of you near this are over tuck-in well in M&A term? priority are small expect Should digital deals

Timothy Gokey

organic that's an Yes. growth to about company. Thanks, but this question. And Puneet. a I'd talk -- just just stepping back, is we're like And great M&A, to remember,

out, over organic. long for primarily us of an billion points sort been we're TAM. to remember, runway calling is context, for you There's M&A a has that growth for needs way And pointed new X X meet Our to the from But for term. the attractive clients. as $XX M&A said, given long

it. who've and look to it's there a you And When a faster look where it and combining CompSci, client really would Or that's them help think it build platform person we one perfect fill they gotten we need to at then an at we there's entrepreneurs with and the in have us than build really philosophy. that area where can the product our examples on? buy market help a AdvisorTarget line out to accelerate it set taken buy that of we're is us look, versus a we good and of place is we right it something meet, build to do when are then

that's past. company seen So also sort and sort revenue real you of over real with of SIS, mix in and you've interesting is AdvisorTarget is this the about it's margins, which of forward, the and CompSci, mix had us portfolio a nice for been think successful you very that time. you When that M&A going year but because had

record really terms our very It's transactions, -- best owner are and been the we've the We've always won't So time areas that been -- why those with always disciplined it's in M&A. of track things done financial terms in of of change. we're strategic XX-some proud how returns. the been but and we were over the

Puneet Jain

then generally backlog, the the duration that has if past? than any can $XXX Okay. ask, is is different quickly, And it I million, of from in like, what been

Ashima Ghei

Yes.

take So that. Puneet, I'll

our in Our and our GTO business. backlog backlog ICS business includes a

typically convert on our backlog. the from for As faster fiscal into side. at you we've we're lot on as GTO And account, know, accounting conversion that that ICS of revenue some sales than sales looked taken guidance we've and 'XX, a

Timothy Gokey

just And Puneet, remarks, is but you as at of revenue, is look share backlog this year. part I'd when prepared this XX% the a the revenue recurring that and the of add

back last XX%. was look it you year, If

better. different, but incrementally dramatically not it's So

Operator

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

Patrick O'Shaughnessy

margins. on Question

the 'XX lack the Just guide. about kind embedded fiscal of of expansion margin curious within

Difficulty] of savings [Technical by [Technical X.X%, restructuring, Given I Difficulty]. in boost would think margins

headwinds in fiscal picture, of outlook? and about quantify from points you still per income talk And you kind margin basis revenues 'XX. are XX float in X-year your can then the maybe how maybe year distribution bigger So confident or

Ashima Ghei

Patrick. take one. I'll that Thanks,

this, has expansion margin average story. on points know over earnings annual the XX of of while our part of And Broadridge on you delivered So super a important able delivering expansion margin objectives. a is We've long-term that basis long to fund history being investments last XX years.

do Having and is opportunities, towards end. while are fiscal both growth fiscal on to said a earnings effectively see in we which on focused means is What what for as of margin growth sustainable we 'XX we long-term 'XX. our we investing in that, are delivering double-digit an guiding expansion achieved really

-- expect 'XX, fiscal couple into we see in of a guiding lower. will we're So to to We've our the cuts as in you're we about XX%. We do in income pointing right float estimate. factored coming freight think out, impact of

and expansion sustainable distribution, impact just earnings margin to on growth. allow expect fund but restructuring benefits we the getting to the core growth XX% program that us the track expect do the with from to long-term we still did right We investments, of our us X%

Timothy Gokey

add in Patrick, that, was great. just And Ashima that and I'll

I coming when think overcome the a -- we [indiscernible], of you down have about think number with pointed impacts one-off as with with out, you now. of X-year number E-Trade rates

are number next same we core the to there things. year reason case be a And margin expansion why future. to So continue the time, the no in the of really good that feel about and at see wouldn't

that's always And client and we part investing growth for clients, we're And every of great formula an think I back a to organic as be XX-year promise company. next. client say to our shareholders. what's is in and associates of just step that a

choice, time. we've office. ability flex And the of be to able governance, so in that's investments are in the one really those down, to resilient we we and the in been and front voting over digital up have making And ways

Patrick O'Shaughnessy

then And quick Perfect. question. just a clarifying

to X X% the nothing deal. growth outlook the a the contribution Do from that year, X.X% for revenue smaller tuck-ins recurring from X% the I SIS and have that So correct? embeds

Ashima Ghei

correct. That's

Operator

like to any This question-and-answer remarks. to session. call closing over our I'd for turn management concludes the

Timothy Gokey

'XX fiscal believe operator. fiscal growth long-term 'XX and us that strong in our outlook another business for with you for resulted we're resilient we're we you, market. year the strategy X-year tell, can in as model period. Thank billion We a we behind results, is Yes. a that that executing positioned And believe very Broadridge in $XX well have on growing and trends and strong

your our set look for We company. much our very later you forward to of results you Thank next this interest to fall. in reporting

Operator

Thank attending now presentation, for may concluded. disconnect. and today's The conference has now you you

Broadridge Financial Solutions (BR) 6 Aug 242024 Q4 Earnings call transcript