DFIN - Earnings call transcript Q2 2024 | Donnelley Financial Solutions, Inc.

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Operator

Thank you for standing by. My name is Amy, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Donnelley Financial Solutions Second Quarter Earnings Conference Call. [Operator Instructions]

It is now my pleasure to turn the call over to Mike Zhao, Head of Investor Relations.

begin. may You

Michael Zhao

trending morning, section Financial Good This thank for found a you we of results, Thank can our which Second everyone, website Quarter Donnelley be supplemental including report, Solutions' our the Call. of XXXX joining historical released copies Investors you. in earnings and schedule of Results morning, dfinsolutions.com. Conference at

and forward-looking uncertainties. we'll call, are that this statements refer to to During risks subject

release on statements For further a on refer please our in recent details with and complete and earnings most to the in filings included Form our cautionary SEC. XX-K, Form discussion, annual other the report quarterly XX-Q report

earnings Further, EBITDA of with informational you supplementary for of financial financial provided non-GAAP margin appropriate non-GAAP Please information information refer non-GAAP EBITDA, useful you are, company's an ongoing concerning and for we financial GAAP way the organic however, and We evaluate is the They discuss adjusted and purposes information. presentation reconciliations operations only. adjusted net financial performance. information release our company's related the for to to and information, provides such to will the sales. GAAP as tables believe

morning of joined turn by Dave am other Leib, members this I call over and management. Gardella, now will Dan. I Dan the to

Daniel Leib

and as margin, operating flow. including revenue EBITDA cash performance, improved increases Mike, am pleased adjusted performance. results, strong and flow with as everyone. adjusted cash you, good Thank I free in operating record morning, delivered our second and We quarter well EBITDA both quarterly

positions our and progress performance making quarter our are long-term us transformation to second the well continued achieve we Our highlights financial targets. in

objectives year. a our against progress we plan underpin make that communicated long-term earlier to number of that continue the this We

from growth grew year's total XX.X% of transform increase the we strong sales, on second often a continuation XX.X% we solutions year, an DFIN an second sales points net delivered comprising XXX achieved of by this First, of net of first quarter. company, basis the organic quarter software. rate a in last approximately Total software year-over-year, to solution-centric basis quarter continue into

largely reminder, As percentage for a the due software historically represents to seasonal the second proxy low as a quarter of a revenue. season

trailing a of the $XXX growing reached X points. quarter approximately XX.X% quarters, XXXX basis on million, basis, or XX.X% net solutions organic nearly basis, sales an XXX On sales, second trailing quarter of representing software increase an X-quarter from trailing X XX%

of encouraged performance, Our second solutions quarter sales approximately Venue, across Virtual which led strong ecosystem growth software Room which public both application XX% Data by strong to performance Venue's companies. by reflects sales and serves broad remain that continues We growth. net the be posted execution product, private the our sales M&A within Venue's

compliance In quarter, low the addition, growth at products, ActiveDisclosure positive and our software albeit rates the remained second both in of Suite, rate. growth single-digit Arc recurring

growth expect the half we ActiveDisclosure for this year. Arc of to ahead, the Suite second Looking and each rates improve in

reports regulation. For primarily recent combined ActiveDisclosure, the the the tailored this rate driven Suite, last the platform of by tailwind overlapping shareholder growth improved Arc improvement In is transition. by year's wins, is case from with driven

net capital well and associated distribution and second the to higher revenue XX.X% This quarter realized a distribution during as with that million reduction we printing in solutions by second compared both continue print was markets $X As of in which the proxy evolve was software the lower shift by toward of transactions. or to of declined XXXX. mix print mix quarter, as a accelerated sales reduction statements

net approximately sales increased quarter Excluding by distribution, X%. print second and

and corporations reoccurring becoming and solutions in X-quarter shift the remainder the companies sales over a our million and recurring with XX% sales As include sales, which our basis, software sales, make sales plus of tech-enabled predictable. revenue. $XXX mix total net million stable more or of event-driven net investment trailing solutions our compliance positive is up an increasingly needs $XXX larger and services overall approximately accounted Venue of the of and percentage resulting this On offerings, that for Room approximately serve totaled Data being ongoing transactional

recurring With such in of revenue revenue X/X nature, predictability and during the especially market benefits model, nearly our volatility. of from being business inherent or either reoccurring stability in our a times

of growth to As reoccurring we revenue. shift we toward share continue invest higher to recurring will -- recurring our in market traditional a accelerate our while offerings, protecting mix deepen transactional and

to profile margin a continue sales to mix management improved in shift and as our adjusted with more pricing cost expansion drive favorable revenue to disciplined in conjunction EBITDA The balance we results improvements profitability.

margin Our second in to X raised our confidence achieve XX%, trailing our to ability further adjusted XX.X% quarter margin providing targets. of the EBITDA quarter long-term adjusted EBITDA

cover provide a clients date had will update more our like detail. Dave shareholder XX. But first, results reports an I'd in tailored the on regulation, which to July of

regulatory for and DFIN reporting As investment funds well regulation. forefront helping previously, completing services-based have companies, funds the to offering our as filings solution our via I the in critical to prior SaaS test TSR at compliance been operationalize filings both mutual this July and both as readiness with leader demonstrated exchange-traded noted has comply date. the We clients, by XX our ARC financial in report for reporting the as

by serving work, of wish in ability we traditional behalf time thus or way our have the live the the documents a solutions via TSR to compliance successfully the reflects handle which all of in one-stop In ruling clients to on date, since filed DFIN's the shop that lineation they services TSR entire TSR's short July, far clients, compliance multiple SaaS-based process. either complexities proven

regulation. focused comply with assisting early remains of requirements the under we DFIN the in our TSR are this on clients compliance, days to Given

alternative changes, an TSR to increasingly XXXX, have Act, for reporting future opportunities which of local Financial ready expansion agencies are in create and the to statutory stands to for Data of environment, a changes potential DFIN investments December regulatory Beyond future and DFIN. the few regulatory passed complex examples which the serve regulatory compliance changes. Among government financial reporting to Transparency of

the position revenue evolve, to excellent our advanced deepen As recurring in continues landscape regulatory an industry-leading platform and capture service put to technology capabilities opportunities.

I share I more our outlook quarter. remarks, on the to third quarter over call provide and turn for to second a the details closing our Dave? Before would Dave results few to like

David Gardella

you, Dan, morning, everyone. good Thank and

I the Arc second supplemental of discuss be operating software set our software Before efforts ActiveDisclosure performance, software release published Concurred our found detail our products. metrics second a of within our housekeeping results, and recurring one financial posted which of on schedule item. like with of we these for of The can to historical to metrics performance and Suite, results recap quarter publication I'd the trends our compliance Investor reflects investors additional trending into website. our Relations our provide quarter

metrics evaluate additional for future. disclosure in to We the will continue software

Now results. turning second our to quarter

XXX also for By quarter mix, shift adjusted noted, sales Dan DFIN. second to modest quarterly growth, by to make toward record cash quarter improvements delivering operating efficiencies, compared we continuing and second solid by free margin while our a in adjusted the sales of also second our the profitable more consolidated quarter quarterly flow a As progress and both cash net continue strong points EBITDA our XXXX. in transformation operating EBITDA record to XX.X%, we basis driving in flow expanded

reported increase basis, on basis million X.X% second for million of on of a organic a and XXXX. On quarter total from an or basis sales net the quarter $X.X decline solutions, second of in XXXX capital than basis organic revenue. increase markets more consolidated X.X% is The driven an million the were software and by sales in growth the net XX.X% a offset $X.X primarily or in investment increased which compliance and companies' on an $XXX.X

We of and volume. related traditional deprioritize low-margin which continue compliance work, a distribution certain to to component is print

X%, print grew Excluding net noted and earlier. Dan distribution, approximately sales as

solution adjusted second approximately higher-margin points quarter business growth ongoing XXX XX.X%, higher volume XXXX, in was featuring and quarter impact overall non-GAAP of driven print the margin by sales, combined basis mix lower a the cost gross with control of initiatives. Second primarily software favorable than

] XXXX. expense million [ a quarter SG&A the $XX million, second $X.X non-GAAP Adjusted quarter the from in decrease was of

from approximately XX by non-GAAP second Decrease basis points non-GAAP a of As quarter a the net was XX.X%, SG&A in adjusted driven percentage primarily was decrease sales, of the SG&A cost of adjusted investment XXXX. in offset business expenses bad which of changes the debt initiatives, to result control selling the a as expense. partially related higher a and lower portion was mix of in increase spending,

with Moving reductions forward, cost our continue to investing to initiatives in we balance transformation. accelerate will

adjusted was or Our second million of from quarter of EBITDA XXXX. $XX.X an quarter $XX.X million, increase second the XX.X%

points and cost Second of XXX from control the sales favorable XX.X%, an quarter approximately by mix initiatives. primarily of basis a second quarter driven XXXX, margin adjusted EBITDA was increase

quarter million second increase an our of Turning sales quarter Capital nearly by again $XXX organic trailing by quarter trailing which On approximately now results our or to of reached the $XX.X XX% million, once quarter were Markets last Net approximately $XX.X segment. on XX.X% million an sales from period. in basis second year, driven and the X-quarter Software the Solutions Venue, in grew segment compared performance to second in XXXX strong was year-over-year. X has basis, XX% up Venue a

to Venue the Consistent and second higher during volume with in continued benefit quarter. pricing from the recent increase page on trend, platform an the

several approximately strong Venue's our sales quarter to quarter large net in sales. with combining execution second client those projects for again resulted once addition, of in wins In X/X account the

with to level overall smaller While of bulk the activity quarter strong in compared venues to in represented second significant execution. large year, a projects our the quarter the still venue's the quarter and underlying this first resilient second the component attributable sales of of growth growth

stronger continue growth first rates at year, of year-over-year large in forward, XXXX. the impact expect of to to Going in moderate this more Venue second Venue's the albeit to given in growth half to compared addition we pace of overlapping projects the solid robust X we quarters achieved deliver the a performance the

to ownership versus ownership quarter, model, term. for by in of a second of File be offset last expect Active partially sales IPO transition compliance Disclosure, increased filing primarily continues trend year, as by by our approximately product, including the near XX which the revenue, to which second continue XX, quarter driven weak in a well subscription Net burn we activity. X% beneficial subscription-based market recurring lower beneficial impacted as Section as client we a The demand the to X% in increased filings growth elevated

consecutive quarter During made count second net of progress continued the of client the adoption growth. in fourth to ActiveDisclosure, we the resulting expand quarter,

revenue, positive as value are ActiveDisclosure, metrics service the to in count annualized including recurring client. well addition year-over-year an we the client in higher average increasing packages trend XX% encouraged as growth net contracted an client by improvement in by In the per of operating driven inclusive of growth,

enhancements in growth. future our coupled talent The sales with create momentum recent client a product growth, foundation for strong

overlap we we of second ActiveDisclosure's as in including we previously, SPAC stronger disclosure be and in customer XXXX, some expect new to the stated have headwinds growth of transition as first in to XXXX we the impact the liquidations. of the elevated a the As experienced of half churn than active half result

segment was quarter EBITDA a offering for net points sales favorable XX%, Adjusted and an sales of to partially approximately initiatives, data from margin increase second our growth the due offset XXXX, mix high-margin and control primarily the by XXX Venue higher from higher expenses. of basis in cost the selling

Markets, and related Capital decrease were was markets our $X.X to quarter capital in of the of due primarily primarily earlier. certain $XXX.X Dan proxy the Management lower revenue as in Compliance distribution, compliance of exit sales from commented activity, decline revenue. million, The and X.X% a XXXX, compliance million segment including driven statement printing second the Communications by or Net

proxy-related the in the of reductions we impact the year to year. the from become Given half for second the activity, is significant the peak the half first less of expect

markets to compared quarter, transactional second revenue, capital quarter. approximately second the $XX.X last flat we In million recorded year's of

year-over-year the which to compared While million the soft to historical of IPOs, down improvement remains second of completed $XXX activity which second experience environment on an continue the IPO in the U.S. raised increased during XXXX, quarter we deal the basis. resulted in Overall, market a for over averages. year-over-year in number remain to quarter, deals M&A compared a

maintained share, capital we markets historical reflective IPO our position completed within transactions the transactions. of were that DFIN's market For high in quarter, and strong M&A market second

future While demand capital for to activity environment transactional the and DFIN transaction-related capture picks remains very well share products of services is a when outlook up. markets for uncertain, positioned significant market

volumes component a debt and of cost and a of print XX.X%, offset XXX primarily of distribution in for favorable adjusted the second was basis segment revenue to as EBITDA the EBITDA increase bad margin quarter points expense. initiatives. higher increase becomes This lower margin mix an as the as Adjusted approximately sales overall within from XXXX. The was revenue sales smaller by due impact well was this partially control of segment

modules Investment of primarily million, were Arc increased driven approximately compared was versus XXXX, our Solutions second more Software in quarter ArcDigital subscription Suite. by second in the of than $XX.X Company the Arc increase services an and growth which segment X.X% ArcReporting within sales to of Suite higher Total Net XXXX, revenue, which by revenue offset X% the XX% declined year-over-year. support quarter and

the As of in revenue we XXXX growth. capture growth from revenue XXXX. regulatory incremental Dan second based expect revenue recurring opportunities software drive commented shareholder stronger future half from earlier, on positioned and We remain well to reports, the changes to into tailored

and basis in the control quarter EBITDA approximately margin adjusted of Adjusted segment XXXX. due higher margin was primarily sales the initiatives. points from XXX EBITDA was XX.X%, for an increase The increase cost second of to

Communications decrease driven the quarter proxy long-term $XX.X Compliance $X.X of special demand printed reduction a were in by higher event-driven secular or primarily materials, million Management distribution a decline sales the mutual and fund segment revenue related and from of X.X% our Net large revenue by partially from Investment a the in print offset XXXX, in to project. million, Companies second for

points the synergies for was Adjusted XX.X%, mix margin impact from in margin reduction consolidation. a approximately of and sales quarter cost XXXX. higher increase our segment primarily than of the second to XXX The platform continued favorable initiatives, basis was EBITDA adjusted print including due the EBITDA

The the from impact and of million by part related result of EBITDA control unallocated an is was driven performance, improvement the partially in more improved underlying quarter, positive initiatives, software in print Non-GAAP working solution our technology the by of distribution spending. year-over-year primarily of our $X.X adjusted $X.X million, improvement to the cost quarter and XXXX, featuring related and is software free expenses XXXX. which support strong flow which compared in cash higher cash driven the million an sales by were portion lower $XX.X improvements a to expenditures changing the capital Free $XX.X mix corporate investment of primarily less quarter quarter second flow in offset was capital and in of second million were a a decrease of increase sales. sales to investments to These products them. of

$XXX.X our of $XX debt our revolver the We From including the million ended the remaining a quarter non-GAAP debt end drawn net the with as hand. $XXX $XX on total $XXX.X as well first at cash million on million or drawn on perspective, $XX a basis, quarter. million from million we million of revolver to of comes liquidity had access of

XX, non-GAAP of was our X.Xx. net June leverage XXXX, As ratio

our a is cash historically As seasonal. reminder, flow

of the the user in than the We of in are generate our flow cash more a half free cash year. and half of second XXX% first

As software less to to expect our subscription-based so continues sales far to be in proportionately the seasonality mix evolve significant more we have experienced solutions, as XXXX. we

of per shares second for at an quarter share. common average $XX.XX $XX.X million approximately price we stock repurchased deployment, XXX,XXX of capital our the Regarding during

XX, million authorization. $XXX remaining June of $XXX stock million we had repurchase our As on XXXX,

deployment. we forward, balanced will to take Going approach capital continue a towards

We drive in organic continue transformation, will repurchases each components our our view this capital debt to deployment share key and to reduction disciplined net strategy of as remain area. and investments

in the adjusted the in third year, Compared to relates net third our margin are mid- for last to the to implies expected the revenue quarter we markets EBITDA of quarter from to million XXs consolidated consolidated to software the third offset last of which our in driven expect reduction $XXX reports. is lower part third sales incremental the to year's range it distribution sales sales, solution sales quarter capital As approximately and by print midpoint million $XXX quarter high of consolidated of transactional outlook shareholder and growth as million, net $XXX XXXX, in guidance, tailored of flat range. revenue and

$X $XX down third million this million, Third, of approximately sales capital guidance markets approximately last year's from transactional assumes quarter.

now Dan. to I'll back it that, With pass

Daniel Leib

Dave. Thanks,

execute the Our with us second transformation. quarter we momentum as performance in DFIN continue strong provides strategic to

market structure macroeconomic back strong combination year. While cost the into the well sheet uncertain, balance our half position and us the outlook of of position, heading the remains

for around thank tirelessly employees the quality open the up we to DFIN have clients the receive ensure Before Q&A, our been solutions. it world, to continue like working to highest who I'd

we're questions. operator, that, for ready with Now

Operator

[Operator Instructions] to At go open with this for time, line would the Charles I like Strauzer ahead Securities. and CJS

Charles Strauzer

a strong the a your margins there. that. Obviously, said little thoughts bit quarter on color your just given Dan, Dave, expected you quarter, could what's on expand very Maybe the for bit maybe but QX. little some thoughts you mix talk more for QX, range. a to mid- high had you driving a guidance Maybe XXs more in more about

David Gardella

this or certainly is we Charlie, whether I the I and Thanks our Yes, that say even in -- or operating change ahead saying would would right? look no plans. that's Dave. the the question. Look, for as strategic by start for direction quarter third beyond,

good job revenue We managing continue our a to to as noted, very profitability. costs. And shifting do you drive mix

change no there. So

Specific to X% from XX.X% on QX the EBITDA about way XXX when simplest basis about third to compare at top last or that you margin, the that quarter decline to up it a probably it was and in was was 'XX, of look points so, guidance, line. year's

included also So last of of few variable compensation. related benefit year's true-up to million a third quarter dollars a

XX%. exclude from hundred So year's still of 'XX. I have that benefit, points again, around third couple think quarter a And would you last when basis right up been of QX

of this look neighborhood. year's somewhere that quarter guidance mid- in third to kind XXs so us of puts high And you when same at

that delivered noted we XX%. now year-to-date. year, of And Trailing overlap as of is you say margin points of the margin, we've back other half look commented, what we also, in expansion prepared I X-quarter basis to in 'XX. XXX expansion that at the delivered I we remarks, starting is over the some would when think margin the thing this

So projections to start that we get shifting that. costs the with be to to the long-term and QX cited comps the deliver I is really in I mix, revenue we'll continue tougher. line said, earlier. say certainly on disciplined Like managing And would against

Charles Strauzer

the about continue? volumes? there? trend just driving that And might talk it What's confidence is we number deals, of you And bit strong bigger deals? gives and can Venue higher been what a And this growth

David Gardella

there. we quarter Yes, two things by proportionately. really outsized this that's growth One, of saw we down that rooms. was driven roughly well, the the three X/X things -- commented and data And

the You'll growth first in that. attributable recall said quarter, was half the we roughly to

think as little you to terms that price last uploaded a the being middle the as in when year in seen primarily we I that. put coming the well pricing, call but -- it, of X number the pages look overlap But second are and starting of of bit place quarters increases other of count, are that so. growth of now at the or quarter, over that of benefit we've into the the room the was there rooms X/X it's size last

Daniel Leib

to is is, are M&A Dave. Venue. higher a you. Thank these stability to -- that, again, This open less the Yes. which longer is add the rooms The volatile market. Underlying reinforcing versus demand pricing, increased staying of also

at stream, mentioned, it's execution of X large more driving seeing Dave those event-driven about as taking Tier which taking has an been deals, really transactional product. a And third, banks. stable share, large share then revenue but sales just we're So on this

announced M&A serving So companies. encouraged within public unannounced and and taking We the the activity platform. private application broad the the place by super of across think both resilience on is ecosystem deals we're the

return be growth. We're outside activity we're into pleased we a in for it hopeful excited of level market, some there's And amount of the with it look growing also But subscriptions, certainly recurring to pipeline. M&A large so to process activity. the We're looking to also put as medium reoccurring to work. and M&A the at of venue of

share focus us got just expansion. what So and product, going to to on sales continue execution here, we're great

Operator

next Your Heckmann D.A. of comes from question with Peter the line Davidson.

Peter Heckmann

do in -- totally M&A the how or Venue the process, of So handicap perspective? deals, quarter potential in -- that, guidance there straight I M&A in to you're feels in it's with is way a lot third completed a see pipeline, So either like of any guess, terms know certainly completed M&A embedding but of growth, think filing M&A what hard just to I your about you deals there's IPO, terms the from dual it

Daniel Leib

Yes. I'll Dave touch the for market turn it and to on the guidance.

look at can telling are what think I clients our you us.

share X:XX didn't May, Federal p.m. reason costs, have at again there'll Pala stock What's was addresses these us is in with bet for been he think to and they depressing inflation interest So today rising he the say? cut and soaring going certainly drag change last valuations. Reserve sticky rates the -- super X a drag rates transaction be September I a the years financing

is certainty bid and going that we're clearer this indication the players hearing create done. giving monetary is belief what is to support we're And back and a future talk private our gap policy between So get going you equity about to deal coming to are clients into will us the deals to market the the bridge and of will activity. target the help price path state It's expectations.

CNCN Dave, and certainly exciting it's you. our the Venue results, to that platform. for I'll exciting for So given is it turn

David Gardella

clarify Pete, question? second the part that you can of

Peter Heckmann

what's that? $X think to you -- transaction your trying capital range, from sure embedded in said I about as was I think perspective, don't I just an you're markets know a third million revenue, quarter how thinking that's just if year-over-year. think I but regards down like M&A guidance about just I'm you

David Gardella

to near better is the the X say, that looking of obviously, of would similar, quarters. projects have Yes, at, overall say first visibility, each million kind obviously, handicap we term than $XX range, is of term the and we I longer I would it a the and some of pretty kind -- we're each to the

we saw not in aggregate than an basis, QX. what QX probably on in so different And much

Peter Heckmann

shareholder go-live? tailoring services into terms any finders software thoughts on relative your either of getting the in any you're about just or reports, side? Or the share print then And Okay. additional

Daniel Leib

through Dan. -- of our this about before, Yes, offerings of from it's really our with happy software to which platform, chain we've talked reps with We're traditional full set custody.

And We we fact, that's would platform. strong software be number. uptake lower thought out did playing seen we've on way. print that in so mention a our And

about software half the impact we side, on of we'll it's with XXXX. onboarding expect really $XX to of work There's happy in that million and in million anything. lot So very $XX annual be early well. light of if going that on get a going days. XXXX, But lot far, I'll of will Eric a things in a have in you are But the season, let organization. thus relatively But add early --

Eric Johnson

seeing thanks, Yes, we're I spectrum. TSR a we solution is offering what cover Yes, the so from Stephen's perspective, Dan. think full

July, engaging that of clients rule, prepared how lot have in we're of for perspective. launched variability since us are traditional of a seen the filing come clients composition, from things, this -- our seeing on us SaaS through here and seeing the to just a get we're So and clients side looking it's some filing. are we client tagging And to

well seen optimized And to rectum as close our digital highly success profile our in our for for deepens is on a are platform. traditional that output seeing in many services. driving work. delivery we're single platform. we've software staying our digital we package perspective, Dan our where as clients. cases, digital We're print But Leveraging of full print, is the the competitive mentioned and it from printing So as margin very

profile. and a and that's change extremely for from output nice platform margin been well, fits our us it our perspective, certainly hits an So

So here. I early say stage

Next I takeaway shaping is spectrum as we it's big close. as it, cycle, I'm more expected. with we'll But our the we clients. again, full ability a our provide for But sure up services get see the to think volume of

Operator

comes next of from the with Your Needham. Peterson line Kyle question

Kyle Peterson

on a growth. touch to little wanted I bit software

quarter, of year-on-year low in you consecutive kind had teens growth guys Second have that segment. to mid-

Just logos see breakdown Just color the of it's the it want to really would since any pricing? here it's with whether the or give accelerated breakdown half any new guys helpful. first that could on really between you of more be if ear,

Craig Clay

the build This is Venue. for on disclosure. We touched Thanks Craig I'll Clay. active question. on

saw quarter, software partially that had I in XX. File by sales the you offset subscription think X%. up We

market-leading excited built ActiveDisclosure. just think on we're touch to to XX the Section platform I that, have within filing

So beneficial company. their the publicly to owners for those disclose with relationship

negative AD, to So process. like within had we with the a it. just was It conversion quarter, some contextualize But drag.

an new we we managing priced solutions. to to So durable were excited it's from pipe what out result a a for low-paying more system that. clients, old managed by in hold the going We're

expected see. half, what we I'm by the What's excited second

which progress of made the being to have adoption We expand the AV, is slowly results. reflected in quarter

As fourth of you growth. to new continue Dave net prospective But metrics as talk the our client heard about. trend favorably quarter

is inclusive year-over-year We're our of with QX annualized revenue, growth surpasses our client of recurring client it XX XX% an total service about clients. we're packages. our eclipses which 'XX, So churn what new really and offering logos saw excited in wins. We

be growth price the ActiveDisclosure up we Our expect -- average to our second is due mid-teens X in first. product stronger versus the and our than in the half

more As and a to come. our lot we're to you overlap going there's platform transformation, heard,

We They're opportunity. Clients contracts. have be to an want up signed price is a choice. continuing multiyear that for

And a of SEC is We XX boards including to be. which connection want less that contracts. to we've length our that the able So longer-term achieve with presentations into on which than presentation reporting that elements, clients an and be. teams been to with clients full need putting place the for couple market, design exciting built-in months. prices contract are our documents choice, to is exciting place a including exciting we're things price Our It's product, And these investors. is renewals an higher increases and paying

disclosure So most -- active reporting but for the clients are important choosing needs.

the strong, year in is forward we're of and pipeline this looking XXXX. Our rest to

Kyle Peterson

bit a very been guys It I of mentioned year-to-date -- be the you markets helpful. activity down lot a seems healthy. for been a of I some in pretty has like the is expectation That's know follow-up. bit guide, market the quarter third filing up just year-on-year. to capital then a has is guess quite And the the revenue

know So on in comps? a that like, see, -- couple wanted that bit pipeline or is we little a last to compares it's much but slowing come I just like your just third of is boost quarter, the how year part? or had a conservative of whether

David Gardella

it I and of we're have visibility out It's question, of ultimately Kyle, more market a as would the market. I not handicapping some describe -- timing said kind share close these or we I deals into guess the come really certainly that a just like pipeline earlier, think deals Yes. when to working. we

kind And and best of quicker far year accelerate it's our great, we've guess basing assuming, that but trends. a of if things the so be this seen we're at that point. so what Certainly, overall lot just and than would this what

Operator

next from Sharma Instructions] [Operator Riley question B. with & line the Company. of Raj comes Our

Rajiv Sharma

-- million. contribution double-digit you again years, the you've software just million few to the to having doubling And about growth forward? still talked next takes years? due on the next software $XX also next expected doubling really I sales said understand, wanted guess, to the to any they're -- X-year be TSR inflection software, second but for ongoing half related top relies $XX double-digit in year top inflection what a software happen, I that the software and X-, from line the is but reductions proactive that line period. should to inflection over print in growth, And over few -- growth to growth What

David Gardella

Raj, I'll start.

of So a had there. questions handful you

$XX roughly TSR certainly half it we the half to million to $XX I continue of which commented to Part we that And and regulation, QX. think you through expectation to that of year, back expect QX comes think in the growth. of the of software million, it, relates come on. as the right, our

print to this commented of the also As print the relates in we quarters not be last and that relates of tends it and only to to as it the reductions, QX proxies quarter, as XX-Ks higher terms QX, at you on concentration but look quarter, specifically.

One question regarding as as the then shifting a Communications about Management over of they lot then model recall in a Compliance is in experienced it's the a ends back comment And time, to growing your time, hybrid some of that the over And of a so of to software, the full believe longer really the also today. there year. And while of first sit significant maybe nearly a we couple things. segment or model. not we're the ability the or talked year, existing of what you'll up double combination as offerings with currently is the impact half and we software we've half doing period a in

projections. of look in there's And a mix little X-year as so bit we shift those ahead

Rajiv Sharma

know And I XQ just volume. assuming slightly you're Great. your your down lastly, on then guidance, guidance, transactional

do we half you -- -- or second seeing transactions think of Now you on that from assuming a flat should you where kind are you stand expect are now?

David Gardella

Yes.

given just should kind that year. midyear quarters So seen QX, early increases we've QX. Venue talk of for that we be then we price beyond we this we earnings we'll say year. same play Venue, perspective, that And in like a on when that's some into call the I the said, in well similar We each said, we at as year-to-date, went looking clarify to And first QX expect, guidance experienced to pretty to really when again, the to in outlook of we excluding Venue. an grow pace provide QX November. some last given we've But the starting from expect of what transactional I of excluding as that overlap haven't outsized probably continue rooms about what to transactional, seen the as do not in transactional X

Operator

At are to for like Leib, call turn you over to remarks. closing Mr. I'd this back no the further time, questions. there

Daniel Leib

the speaking look thanks soon. you We attending with for to forward everyone Great. and Thank call. you, to

Operator

today's conference concludes This call.

disconnect. now may You

Donnelley Financial Solutions (DFIN) 31 Jul 242024 Q2 Earnings call transcript