good you, everyone. Thank Dan, and morning,
Before performance, I'd year-over-year housekeeping quarter first items, discuss comparability our few I like in our the recap impacted quarter. financial to which a
statement. First, quarter, within on sold sale a cash million, first Mediant. we of the $X.X the our from the earnings sale, in of investment DFIN $XX.X pretax corporate release, million The our including income gain and acquirer. in proceeds during investment of $X.X line stock recorded received the of as other noted million of common which is and resulted in income our
EdgarOnline our in fourth offering the completed Second, call, XXXX. as we of quarter's earnings disposition quarter of software discussed the on last
total quarters year. with For the X $X year-over-year the sales million, disposition comparison of net by of year majority XXXX, impacts the the impact negatively vast approximately the full the this first affecting
our and profit non-GAAP on comparisons impact The is adjusted EBITDA minimis. gross de
of level organic adjusts refer EdgarOnline A is For well sales disposition to organic earnings year-over-year for the of reconciliation which our discussions, reported the of exchange net rates. impacts change change as changes sales net sales I purposes change, segment net foreign as to will in the included in release.
were in sales expenses included in cost XXXX. certain within technology that recorded in are of Finally, SG&A XXXX
corresponding million first with As of a a and points comparability basis non-GAAP adjusted SG&A approximately and the approximately result, there SG&A to EBITDA year-over-year a increase year-over-year was the by earnings. a $X.X change to of gross impact percentage sales no comparability XXXX, reduction cost quarter net by This compared million in XXX XXX impacted $X.X to consolidated points. or negatively margin positively non-GAAP impacts basis as of sales in
and We expect a for quarters remaining the similarly sized dollar XXXX. comparability impact on each cost of of SG&A sales X of
results. our turning first Now to quarter
in XXXX the year's As Dan of offerings. downturn in our continues capital we The quarter capital first prolonged strong impact to noted, activity negatively markets environment the we deal markets as substantially transactionally-driven XXXX. transactional into remained that the of experienced the delivered despite last levels market results the softness throughout below quarter volume continued
cost cost same reduction structure, continued Given the in managing our time, environment that the the in transformation. first at approach our historical with invest accelerate took consistent we actions corporate aggressively weak of while transactions, quarter, demand to our initiatives for additional
to related these in the product with Our improve certain the quarter software processes million operating approximately included approximately first toward business technology of investments results aimed million investments efficiencies. and order to million the $X additional to and modernization accelerate in initiatives development $X $X remaining solutions our of of incremental operating
EBITDA additional points. margin In by first approximately impacted total, these quarter basis costs our adjusted XXX
a do for XXXX to our investments, rest plan, previously, cost part not mentioned our structure. as increase incremental we of As to expect these which of continue permanent represent investment the
year. quarter the XXXX an basis, of On for on basis from quarter X.X% first million late realize a of basis were a or million, total $XX.X consolidated a of decrease beginning on first organic of sales this We these the $XXX.X to XXXX. net reported and expect benefits initiatives the X.X%
$XX.X versus which of first Given last million net was year. very substantially business, decline weak the of markets the down the transactional all XX.X% quarter in year-over-year transactional the capital place or environment, sales took
impact benefits by savings the SG&A cost First was I sales basis of XXX of partially impact approximately primarily mentioned, offset changes of points price non-GAAP gross margin between lower activity. capital markets that initiatives, and by higher of driven first the quarter cost transactional XXXX, XX.X%, the and quarter than just
the SG&A $XX.X million first of was quarter XXXX. in Adjusted a increase non-GAAP expense $X.X the quarter million, from
lower percentage cost SG&A of a by driven selling incremental, is XXXX. a the in an net by cost of of adjusted in was As non-GAAP between sales volume expense, of and changes first as non-GAAP and points transformation-related impact sales, XX.X%, debt higher the offset basis XXX reduction result impact sales adjusted and expenses from of approximately initiatives. SG&A increase SG&A, the increase investments of of a primarily The partially quarter control bad
Our from of or XX% first EBITDA quarter XXXX. adjusted decrease million, a $X.X million the of first $XX.X quarter was
of strategic First the from XXXX, and uplifts first and was offset initiatives, quarter EBITDA impact volume. driven by selling margin transformation, expenses in partially transactional as our of sales adjusted decrease investments incremental points sales support capital control approximately quarter XX.X%, the by markets primarily lower lower lower price cost a a of of XXX result of basis
X%. segment in Solutions grew segment quarter, the approximately last year. was ActiveDisclosure, The growth to X% Net quarter first Capital an net this X.X% revenue Markets product, sales from recurring Turning of on subscription Software led segment quarter now million, were an approximately recurring organic our the basis by in compliance with sales growth first of increase in our results. which $XX.X our of
the elevated churn IPO customer and liquidations, we transition was the the a the revenue. and SPAC normal our the of for customer we churn weakness to modest in ongoing price impact quarter. service and client during new customer in customer in process with revenue wins which the saw AD, on rate. a realized platform growth, combined temporarily of than number end commented count, are on in Dan increases conversions, nearing from new resulted customers As more activity, ADX expected offset a slowdown by of a The earlier, which decline reduction subscription in increase we
We expect year second platform to this lower of in as of second subscription improve by complete we growth the and quarter ActiveDisclosure revenue transition end the quarter. the the the half second the in then continue
quarter offering the what our primary the of Venue of a despite sales M&A trend XXXX, X.X% compared volume. first quarter. year to $X.X in Venue million the data Similar virtual room better first during its last M&A we experienced throughout were Net performed or down steep decline of market to use case than
investments With of the the due basis segment global and AD new be to the from Venue XX%, quarter allocation XXXX, points sales. basis resiliency in development, continue decrease a incremental we of in costs M&A by was and market increased on encouraged offset the an XXX to approximately the EBITDA year-over-year control quarter, from of down cost margin first uplifts technology price by mix, sales XX.X%, nearly an primarily overhead a unfavorable for partially initiatives. first of Adjusted
the markets demand remained very as transactional volume in capital event-driven In equity & a Net Compliance first Management shifts. XXXX, revenue sales activity, decrease low a result continuation by favorable by a for were of timing in environment, of markets the compliance from prolonged in quarter quarter. an quarter of downturn modest the in the Markets, transactions capital the year-over-year driven million, and $XX.X growth offset Communications organic a compliance our first segment partially of lower Capital in transactional basis on X.X%
quarter quarter to priced the IPO remained XXXX. XX a first basis. taking as sluggish U.S. transactional of a X uncertainty, As macroeconomic priced the further during persistent particular, both quarter escalated and volatility. over the rates the throughout market interest compared as sequential geopolitical In financial over the markets market Combined elevated well very were IPOs IPOs with on quarter capital year-over-year million place with headwinds, sales lower, on $XXX only impact first progressed, first exchanges in sector the turmoil of
sequentially quarter. the quarter. last by offset favorable an The capital transactional from M&A revenue year's XX% compliance approximately grew down last the market, was quarter in our year-over-year and than first is The market versus timing markets compliance offering, while decline by of year's which XXXX more to slowed driven resilient fourth markets X% nearly first largely capital and shifts project event-driven partially relative IPO
of peak Capital reminder, Markets generating Compliance are periods. As during XX-K and those by the highest second a and the during year sales proxy with first sales seasonal driven the in filings levels quarters
compliance as the is of the while EBITDA a and need, Additionally, and in transactional proxies, by fluctuate quarter SPAC XXXX. our adjusted filings there which companies EBITDA demand our cost in supports Further, of primarily nonrecurring special partially of the public lower from due result XX.X%, approximately can a is event-driven as corporate offering, for clients number lower headwind Markets of was sales of which from from recurring lower mostly for moderate segment compliance margin basis initiatives ongoing creates and Capital control compliance component costs a decrease of a with first transactional nature, increased to points selling the margin to period period. sales, The volume. X-Ks associated Adjusted recent revenue offset of lower XXX on was such services. expenses the and overhead decrease are liquidations their trend
million in first of our basis organic $XX.X largely subscriptions. were Solutions quarter increase by sales Software segment an driven Investment Net X.X% an XXXX, versus growth Companies in on the of
compliance in a which offering, adoption past, adoption of compliance total net As management sales in strong ArcDigital, the following adoption, introduced the throughout growth Suite from We impacted more XXXX, quarter first forward. we've modest of year-over-year offering this management expect XXXX the change. going to which in first onetime quarter and the the our to regulatory saw related Arc in a highlighted demand growth more of was response total benefited XXXX. into the of with we XXXX normalized growth
XXXX. in adjusted reports about of overhead increased Adjusted margin XX.X%, approximately is price impacts. points recurring of revenue partially regulations a due segment development growth costs, capture EBITDA and from earlier first are such optimistic Arc margin tailored for of growth. decrease to shareholder and well the technology savings further additional a cost was EBITDA believe the new Dan's accelerate to as support decrease product by XXX we software on investments favorable Based and opportunities demand comments, by created opportunities tailored to positioned Suite such shareholder the initiatives higher offset quarter basis primarily from as The and in reports was regulations
sales first Net were our low-margin of Management fees million, & quarter a and the primarily Investment X.X% price offset in Compliance Companies EBITDA from XXXX, the segment driven decrease service of Communications work, adjusted higher of $XX.X segment uplifts. partially approximately basis by margin cost Adjusted quarter XXX by the the of for to and exit print, increase due partially higher mix, margin impact primarily services featuring of was first XX.X%, savings The uplifts initiatives points offset more sales EBITDA a costs. by price higher overhead XXXX. and than the favorable in was less
including to Free initiatives. quarter working were adjusted in $XX.X negative of million made commission capital $XXX.X XXXX as the the debt, in of cash increase We cost $X.X on Non-GAAP to million decline payments changes from with net as was increase $XXX.X million revolver. incentive-based $XX.X of lower of non-GAAP quarter an ended we driven the our quarter, perspective, total in performance. ongoing in a and flow versus of made quarter XXXX first million related by EBITDA, and year our offset unfavorable partially the first at of hand. payments in quarter an the first transformation, From quarter XXXX, of the on higher well by expenses in as the offset the of of control drawn impact of aimed first sales debt XXXX the million to were our unallocated and million million, interest access payments quarter remaining had our million $X.X cash by $XXX expenses corporate $XXX.X this primarily the revolver accelerating flat liquidity
As XXXX, X.Xx. ratio our net non-GAAP of March was leverage XX,
historically flow our As a reminder, seasonal. cash is
the breakeven of closer in the and cash flow than of year. our quarter user in the are quarter, first more second half free to in XXX% We cash generate of the second
sales, less seasonality our proportionately become significant. mix expect As continues evolve to sales we continue more the to to subscription-based to
capital approximately price million deployment, share. $X.X quarter we repurchased average of Regarding an $XX.XX common per during at stock shares for XX,XXX the of
As authorization. of XX, million on our $XXX March XXXX, million repurchase $XXX remaining we and had stock
and we assigned the resulted repurchases. rate high Given interest debt, in rate management priority a debt to which lower current environment higher floating our share
we to will balanced continue capital forward, a Going towards take approach deployment.
We continue organic investments debt strategy repurchases view area. this will and our net components and to as remain drive deployment share key transformation, capital each in disciplined to our of reduction
for As quarter while far macroeconomic encouraged it relates quarter. we so environment the challenging, to outlook transactional second modest to in are in our the the XXXX, expect of we activity the a remain overall with second pickup
well. still Through below improved April, as the priced IPO while last transactions, year's level, showed slight improvement sequentially from first quarter, M&A large
in by change cautious transactional to can as start encouraged quarter, activity the the the very pace we pickup are activity we of While remain quickly.
operating in In second our our we investment expenses accelerating for our priorities additional quarter addition, with will XXXX, the execute continue plan transformation. consistent to toward directed with
quarter to quarter. compared the first a investment second the similar of level the from We incremental during expect level
transactional guidance, as to second million $XXX compared expect the that range contemplates earlier. to and primarily net the perspective, range, of mid-XX% well a level I as lower XXXX which sales From revenue second guidance backdrop, million consolidated EBITDA quarter revenue sales implies of midpoint quarter activity. the With approximately $XXX we of our of second last mid-XX% in a margin result margin $XXX as our of investments, described non-GAAP a of decline quarter to transactional the a as of range. million lower the in XX%, year-over-year Compared adjusted year, the incremental the
We than margin transactional once be to historical much our EBITDA sales. like-sized second adjusted quarters expect of quarter total and again non-GAAP stronger
level our also this the for reported more a Let to the so the experienced year, we sales segment. At Markets, our sales second provide me Capital first in we've activity in higher quarter compared we Management range, & the quarter. of far quarter Communications this assumptions transactional midpoint of on level color a bit Compliance assume modest increase reflecting
line sales seasonality, As it second normal based within the be quarter in to sales expect relates year. we the segment, of the the quarter compliance largest with to
to second We compared sales compliance also XXXX. decline to expect modestly strong second quarter a quarter very of
strong compliance from XXXX decline the shifting of new as and These impacted the be have second by as is combination quarter Dan. entities driven quarter be by which of to I'll benefited will liquidated. to since quarter expected Pay many into back quarter the compliance are that, a offset the Versus proxy the With second in revenue certain of compliance well Performance disclosure. those XXXX, partially activity, from Second it sales volumes declines of which first SPACs pass by part
