DFIN - Earnings call transcript Q4 2024 | Donnelley Financial Solutions, Inc.

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Operator

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Donnelley Financial Solutions Fourth Quarter Earnings Conference Call. Today's conference is being recorded. [Operator Instructions].

would Head turn go of I to conference ahead. time, Zhao, Mike Investor this like the to over At Relations. Please

Michael Zhao

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

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

to and For margin we cautionary most a complete company's purposes believe GAAP company's and will and and financial information, appropriate discuss are, and EBITDA for information refer other evaluate consolidated tables supplementary discussion, the please and We the XX-K presentation in Form included refer release our certain EBITDA, provided operations our performance. useful non-GAAP further filings financial on provides details consolidated earnings as the of to information adjusted for Please to GAAP related way to the informational for ongoing earnings reconciliations with non-GAAP organic non-GAAP information. such however, financial with Further, in SEC. adjusted sales. report of annual financial you net recent statements you concerning is only. They information release the an the

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

Daniel Leib

morning, everyone. good and Mike, you, Thank

increases down growth Software sales expanding strategy, mix, further great last offerings fourth compliance $XX Offsetting in results of an approximately quarter quarter the our transactional in adoption driven Solutions, million year. was in improved revenue the in marketplace. the fourth Solutions XX% offerings, or to SaaS solid offered quarter of compared event-driven our in and growth the our fourth Software Our our progress net including by double-digit of sales validation

detail we will faced year-over-year quarter shortly. communicated, in previously we as more robust Venue. comparisons Dave fourth the in cover addition, In sales results

year both full results, of the Software sales delivered of adjusted free EBITDA, compared margin year in execution flow on our expansion operating XXXX, Despite operational adjusted cash transactional cash year. net Solutions the flow in a and to growth strong XXXX. in organic third of and improvements XX.X%, disciplined and event-driven full revenue including the for growth strategy Reflecting our EBITDA financial consecutive reduction

in Combined $X activity in million Following to declines a XXXX, resulting down $XX total with in revenue X%. full of was Companies transactional X% or muted reduction deal segment, approximately event-driven [ million remained revenue or transactional lower approximately event-driven year XXXX. ] our XXXX capital in XXXX, markets Investment revenue in and compared revenue our

was in $XXX.X we revenue achieved level For million perspective, revenue XXXX, more in average of in the million lowest as $XXX recorded history annual level stand-alone event company. below driven we've a our the than event-driven the annual

to activity deliver XXXX. an While share of long-term plus year-over-year by of XXXX. EBITDA prolonged headwind, X.X% us to EBITDA track Despite million, execution We XX.X%, strong compared remain depressed or $XXX.X points basis adjusted million higher deliver we to consolidated position, of our level XX% margin approximately this margin remained increase adjusted EBITDA XXX and consolidated our on of of retained XXXX. strong the overall market transactional goal achieving throughout enabled our adjusted of have $X.X

strength that is proof performance market extended business continued through point the for important an a and underlying our transactions of our broader demonstrates an is Our strong weak strategy. accomplishment

higher-margin to of software been the performance has our clients our the strong One our of delivering progress through strategy. further drivers of value fundamental XXXX performance offerings. margin higher demonstrated

XX.X% of sales sales. year of record in net our an delivered from XXXX year basis. software full we solutions organic XXXX, net of approximately Solutions Software comprising total $XXX an XX% full on For increase approximately Resulting million,

growth, our in us the performance important to addition Software XXXX In Solutions milestones. strong helped reach X

and our Solutions of over 'XX specifically strategy, derived First, in mix from XX Software our targeting May sales we double X to XXXX, introduced years.

and XX% go-to-market of from committed that XX% launching ecosystem that Total Moving results investments velocities focused financial return. a From our Management new new including time as net accelerate nonstrategic reporting, deliver from Arc not Software ActiveDisclosure, development profile our from financial increasing could within of XXXX and our in to Compliance products sales such more and divesting Tailored partner in business importantly, while mix. Reports we efforts module Solutions our target, software Digital, aspirational assets an expanding the the XXXX go-to-market solutions, to in the Shareholder such and benefiting to the software we from appropriate

to reductions, for and At the time, decline year a due impacted regulatory-driven tech-enabled the a maintained managed total exit goal sales, of successfully same bit in strong the in the demand divestiture products. services decline was and printed our secular to some of work. decision and we We the net proactive distribution Software representing of the net short by net Solutions finished offering sales XX.X% our part which print materials in sales nonstrategic lower-margin XX% software with the

and significant financial improved goals. our is to path a profile realizing sales proof However, long-term of on us with benefits significantly the associated mix. financial This the the transformation keeps achieve point achievement right our we are

XX% strong largest delivering excellent our Solutions another approximately returns that proof company's on or million annualized the from DFIN our turn $XXX million, in our Software of which million component sales to from in company net to and by becoming Since we've sales to $XXX an point growth solutions is Solutions year $XXX history, approximately deliver print us stand-alone full for Software continue annual from in net positions first time a sales representing tech-enabled of shareholders. offers becoming services of to overall This and grown basis. clients, organic to XXXX, nearly our rate Second, net each exceeded XX% sales. net the an distribution, the

Solutions our into XXXX XXXX. Software share the me momentum highlights Let carrying the in in few a are growth and underpin we that

First, by year-over-year Performance Venue, XXXX, XX% and outstanding delivered revenue and level $XXX pricing record room our million. driven large of room improvements was offering data strong sales nearly reaching a in results in our which and projects, growing virtual page volume. increased of several approximately execution, resulted

having The sales year, the year's our fourth XXXX. are accelerated we of growth encouraged ActiveDisclosure the compliance by momentum of and in during recurring aggregate Suite in Next, Suite, quarter compared first moderate fourth Arc approximately creates increased X the the and quarters into in products, positive posted growth improvement trend Arc quarter. the in XX% heading and to ActiveDisclosure last momentum

of decommission the former the operating product new new value XXXX represented AD count of growth completing of build well was improved subscription in net higher AD first the Since including a as ActiveDisclosure, full which in the in first platform, as the realized For XXXX. year the quarter released we've performance, XXXX, on per first client half of operating client.

enhancement, create execution, from growth. retention in future In sustained sales revenue addition, improvements technology, made improvements product a the our have The with and services, sequential offering also resulted in sales rates. support have foundation across we strong coupled for recent

to XXXX. solid ActiveDisclosure growth to deliver We continue in expect

software we As growth software Tailored on the sales our in approximately which and Arc revenue of to part Shareholder million approximately of to track $XX recurring full a to regulation from $XX X%, $X remain we line achieve expectations. in year it net relates basis. for million Suite, Reports with We revenue full solid generated year delivered million of on

renewal multiyear the a our addition, contract a In client, subscription fourth strategic the revenue. during site quarter, closed large a improving of predictability of we with further software on future

shift our update facing our In perform to businesses, into tougher expect particularly strategic and XXXX, our provide Suite by the priorities our a recurring SaaS wanted encouraged transactions, year remain can continuing to in in Arc grow revenue to the by year. comparisons, are core while on to the quick primary momentum first continue accelerating share half well paying over focus it ActiveDisclosure on you in year. traditional for turning year-over-year Venue including I of business and XXXX despite in base the Before our to maintaining expect to Dave, this mix we

to compliance the to future platform software ourselves from to will cases. ready use in continue demand capture and invest non-SEC our regulatory new We regulations and

aggressively continue and cost structure our manage efficiencies, drive additional actions level costs In to taking will align better addition, operational of current sales. including with we our to our

clients, in shareholders. value. strategy, I'm value growth allocation we we Finally, for confident and create executing disciplined of profitable maximize employees on will focus financial long-term with opportunities investments approach our capital our our to our continued pursuit our increased and maintain return and create will to

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

David Gardella

Thank you, Dan, everyone. morning, and good

As Dan on our to of the the organic Software double-digit noted, Solutions grew deliver organic continue solid growth net consecutive XX.X% Solutions growth. we offerings an full Software quarter which quarter, during basis, sales in

achieved outstanding off year-over-year year rate XXXX years. performance the on last in capped which net Solutions quarter highest Software basis, we've sales XX.X% full fourth The growth organic an during increased the X

compared ActiveDisclosure the generating We offerings, during to trends. the with our double-digit growth each Suite, are accelerating growth of Arc product improvement by an software encouraged compliance and quarter, recent

adjusted EBITDA deliver another sales margin improved despite revenue. lower-than-expected quarter performance solid software Our to performance us and of mix enabled transactional

decrease companies the a of year's proxy consolidated capital by a lower XX.X% and XX.X% XXXX. decreased net Software our by transactions, million basis, sales event-driven increased fourth volume project both mutual The for offset $XX.X was were transactional approximately a $XX.X as fourth with as million driven sales quarter which the quarter, $XX basis. quarter million revenue by the large growth revenue of related total aggregate by decrease from last markets Communications in well Solutions on from Management from which an lapping or in accounting On organic segments, million million net the decline XXXX investment of $XXX.X partially net sales or of in to fund consolidated fourth in for in $X.X Compliance year-over-year lower special

higher quarter quarter ongoing decrease the was was XX expense activity. non-GAAP $X.X cost the the million basis control in sales, were and initiatives event-driven fourth gross net of the $XX.X a non-GAAP as price XXXX XXXX. of million points mostly offset approximately SG&A impacts Fourth solutions fourth software from by higher adjusted uplifts quarter transactional favorable in lower of margin Adjusted quarter XX.X%,

higher adjusted of bad selling lower non-GAAP expense transactional debt a by reduction As decrease as primarily sales driven sales, points quarter The XXXX. initiatives, basis a from in partially by was control in fourth cost XX.X% of of and SG&A an of of ongoing expense. increase the adjusted result net non-GAAP SG&A percentage was XXX a the approximately impact offset

fourth declines Our of basis million, quarter of points The XXXX. margin primarily EBITDA impact the in EBITDA a lower transactional from the XXX of from fourth was adjusted driven of quarter net adjusted $X.X solutions adjusted decrease adjusted cost initiatives. fourth EBITDA a by quarter and were EBITDA million of and Fourth higher ongoing $XX.X the decrease software quarter control by was revenue, XXXX. XX.X%, sales approximately partially offset margin

third the which in growth Turning basis year, sales compliance fourth quarter million, Capital subscription half the of X% than again increased on in stronger of and the Net performance now we Fourth to quarter. the driven organic recurring first X.X% were our rate from our an ActiveDisclosure, $XX quarter in XX% segment Software increase increased growth last fourth with recorded Markets of an Solutions quarter XXXX. the by in the results. year-over-year, approximately revenue from fourth of line segment the product, quarter our once

great we service which basis. contracted adoption service to In packages previously hoc packages a make offered bundles an services experience predictable mix of clients DFIN. our on ActiveDisclosure and commonly more offering tiered for progress and a increase for more addition, packages predictable to used continue create revenue of into were ad that The the recurring

year-over-year. up or X% were sales $X.X approximately Venue million

quarter lapped a sales Venue compared recent fourth XX% trends strong expected, the fourth as was grew of year-over-year. in Venue very approximately more XXXX, we to which during modest As growth quarter

during the In through sales. full XXXX. increased fourth projects, segment was year $XXX first net result of XX control XXXX the primarily net an the higher sales in offset basis, X significant from addition, On large versus approximately fourth XX% the basis as less increase sales XX.X%, grew Venue Adjusted robust net impact initiatives, and and for of EBITDA which aided quarter. quarters million cost a from partially to of approximately of full Venues higher delivered selling points this margin approximately expenses quarter growth was by a due the year year

$XX Compliance a and Markets event-driven XX% by Net decrease driven our million fourth segment from transactional XXXX, were quarter $XX.X lower or Capital in the primarily of Communications Management of sales - revenue. million

including quarter, fourth below million quarter fourth priced and [indiscernible] company million in deal revenue, approximately environment approximately or of our of IPOs signs improvement of XXXX. we increases in and deals from down quarter the which showed quarter During number From the completed expectations transactional the was XX% fourth perspective, XXXX. $XX.X $XX a to of recorded in compared some M&A market U.S. the the in fourth the public $XX nearly million

M&A high for transactions historical continue in to Consistent market IPO and track completed record, we quarter. maintain high-quality our with the share large,

factors. revenue year-over-year X on despite deal primarily However, to increase an lower we recorded due a basis, in activity,

IPOs for our and other revenue offerings declined. priced activity secondary market follow-on while for First, increased,

lower certain due of lower Second, deals de-SPAC's we collections trust we to as lack future transactions including recorded create deprioritize can de-SPAC depleted risk. redemptions financing, and which revenue quality with from

Third, region transactional low-margin the Pacific revenue work. proactive declined pursue market year-over-year, activity a and by limited decision in certain to not driven Asia

to our approach of level low-margin same and will opportunities, we As it going discipline low-quality the maintain forward. relates on

million Capital of related as as year. the approximately due lower EBITDA filings points adjusted revenue with down Compliance basis The transactions was a first margin or work, compliance distribution partially consistent year-over-year, to the and such from the Markets X-K well the corporate associated Adjusted quarter volume from control $X.X as with primarily in fourth XXX revenue of segment of X trend XX.X% proxies initiatives. by certain XXXX. margin quarters including decrease driven a event-driven the by the for printing of lower offset decrease was was EBITDA transactional cost XX.X%

part $X.X - or Solution. Tailored revenue Report Company million versus Investment Solutions XX% our million fourth XXXX, in in by were sales of quarter from segment of our an the $XX.X Net Software increase driven Shareholder

addition, economics during as Suite On and became software will to over The with subscription full Dan large a effective the continue fourth in on multiyear fourth facilitate noted the a In total term. of the earlier, a client. Arc Arc of stronger subscription $XXX from strategic improved we on quarter, renewal Arc contract closed year Tailored renewal basis, growth in XXXX. quarter a the Shareholder Suite revenue, Reports, by and X.X% growth Report in revenue delivered Shareholder in including the grew impact Suite Based revenue approximately Tailored million year-over-year expect to revenue the driven the Solution. of we incremental continue renewal first half

and Tailored was margin Adjusted in The EBITDA higher the due was leverage with offering. partially on fourth EBITDA increase the of approximately from an net offset margin XX%, the basis XXX points operating of for associated increase the quarter segment costs primarily in uplifts adjusted Shareholder to XXXX. sales Reports price of service-related ramp-up the increase by

of $XX.X million year-over-year print XXXX for of experienced which special Management regulation margin XX.X% reduction Reports in - decrease [ sales. lower which partially ] sales from in as lowered by substantially segment the the in proxy the the was revenue the fourth sales quarter by Adjusted quarter of and were offset is due the XX% lapping decrease Companies printed of sales lower what print revenue quarter. a accounted a fourth adjusted all selling Communications driven mix and the materials $XX.X million of Compliance Shareholder fourth primarily was for or large decline. sales expenses fund in lower of of mutual quarter distribution Tailored basis lower in the decrease margin and XXXX our and a result Net of a The distribution for Investment impact to an of and XXX the similar The EBITDA from approximately EBITDA we a segment points result demand unfavorable third to XXXX. project

the offset quarter were the million, year primarily in of quarter, expenses cash the partially flow incentive corporate million year Free increase expenses. free free XXXX, of $XX.X third-party increase million $XXX.X by higher was $X.X EBITDA lower higher in $XX compensation driven full by quarter flow and by of The improvement over fourth $XX.X unallocated Non-GAAP an in an the million year full was flow-through partially cash million was full capital cash offset primarily favorable and due additional adjusted of XXXX. working flow to in expenditures. capital, expenses,

debt. million of of total million At net XXXX, year and $XXX.X ended We debt $XX.X hand. of had had the year-end we non-GAAP our cash borrowings million with no $XX.X under on outstanding revolver and

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

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

full per we approximately For repurchased shares price XXXX an of year $XX.XX million at average share. $XX.X XXX,XXX for

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

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

relates it encouraged pipeline. As first outlook transactional by quarter the to our we improving for XXXX, are the of

So and to normalized quarter expect the near a continue far return headwinds, we in transactional overall the to In weigh the activity deal more level to activity. below historical on term, first remains the factors average. of well geopolitical volatility market macroeconomic the

distribution with recurring the the on compliance remain sleep. sales expect In offerings, ActiveDisclosure Arc addition, recent which our decline print offerings, and compliance a software we our trajectory bullish We continued trend. traditional will growth in and impact of consistent

adjusted quarter backdrop, $XXX quarter consolidated million the the the part in that mid-XX% the sales distribution the expected year, range driven markets Solutions projects, Venue our a activity. is With million by approximately Further, $XXX the last EBITDA the we expect first of Compared of Software than first of and and through transactional sales volume X% decline consolidated benefited to to $XXX in offset range. million implies which continued in growth last lapping large to revenue first of is net half year, the more guidance, the as Venue print midpoint in year. capital of in and as face consolidated tough lower decrease by comparisons margin

the and approximately range more sales. our of sales on assumptions I'll of sales in a the XXXX XXXX. first $X we bit also transactional a provide our reflecting for from of At markets $XX.X fourth quarter the the midpoint a in decrease we recorded million quarter, first transactional assume million million of the from of sequential color the quarter $XX increase capital approximately

As it XXXX operating investments year, continued transformation. the our aimed relates to reflects the associated full our of toward plan our accelerating strategy execution and

which is capital supports million. Our addition for be in and projected CapEx them $XX development toward the regulatory including of predominantly to incremental spending between the our developing our products compliance to $XX This technology single and regulations is million in support use cases. compliance development to related continued underlying software our software and and solutions platform advancing platform, targeted new to

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

Daniel Leib

Thanks, Dave.

further in become is to strategic market transformation XXXX also strategic delivering invest profitable, more enabling results well in very challenging executed and in environment, execute DFIN financial serves to our performance resilient. proof Our transformation. a our solid continuing point that as while focused We and

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

that, questions. with Now for ready we're

Operator

our take We'll Instructions]. CJS of question from Strauzer first Securities. [Operator Charles

Charles Strauzer

about what could give key we the kind behind of If maybe the And questions. versus differential? talk some guidance? some of results of color drivers couple on were more a Just

David Gardella

one. take the I'll Yes, question. that Charlie, it's Thanks Dave. for

biggest revenue transactional we from a markets had capital off guidance. variance was assumed the about, our million as revenue perspective, in what which we from the talked So $XX was

just of from we as at XX%. EBITDA think north I perspective margin came well, an in

XXs. Our guidance was the low for

transactional I So the that think that margins range. when million, the look think in XX% XX% at incremental revenue, about work you we $XX in variance right? to typically on

our of XX.X% puts it, in it million and call which line XXs. another $X low guidance of add XX% kind right $X you would have of, to with range, EBITDA, million us the to been in So

that the explains variance. just the markets capital effectively, So it's transactional volume, really which

Charles Strauzer

just future a a basically and and kind kind then And EU? Great. to in you regulatory of Can or the the expect how bit ESG little shifting specifically about on U.S. reduction of how impact negative will regulations comment not you address whether the on in gears you from regulations. change and you regulations, think

Daniel Leib

you, then ask It's and I'll make of Dan. Thank Charlie. Eric start, to Craig couple a I'll and comments.

our if speaking, assess on to proposed if teams suited to certainly, So fit build and partner. own and to relative to with we're just our how best working our regulations and broadly offerings they or are

comment From long a a period regulations timing between a perspective, proposal, then effectiveness the and period. time typically the lead

of economically our required talked is one ability so services. our And of share more the quicker to to and also get platform built common to investment and we've our we the market platform as regulations. lowers This benefits that about core have serve

-- related relative U.S., us. impact, we over to impact ESG if question your EU minimis on So and de specific pivot to the

existing platform as filing. tagging to Our the was for our SEC leverage last the to mile entering the and plan market

So with Craig, ask want detail. to little if you a more add I'd that,

Craig Clay

to climate. global are Thanks, Dan. Yes. ESG political changing reflect the current certainly The regulations

the clients court ESG So rule entirety. ultimately, the our in vacate U.S., that, is going us to telling here the its in are

have the upcoming been X move the you to is omnibus huge bill, take previously on If February quote expected to passed. XX in is which ESG that reducing to a requirements approach has their step, that EU, EU said all President X

about but ESG our ESG has little shop. DFIN documents moment our and today stated, with within includes ]. met their of this, their the think the DFIN impact worth Dan noting one-stop efforts without an And [ that it's that So to clients are a very I and as CSRD as taxonomy, a mandate, talking CSXD that there's result

platform, compliance as the shareholders as investors. and SEC ActiveDisclosure, last our to our clients, through delivering well mile we're So

It's via they're visualize ESG companies an In design. way uses a been what addition and to to the really take has doing solution, for disclosure, that general fact which providing guidelines. easy sheet SASB years DFIN for

it's with presentation ActiveDisclosure. an again, layer, a So integrated

level, it value highest I the ESG it's our think or new any at disclosure highlights proposition. whether required,

great to trust We client and happen. software have make it

Eric Johnson

that Charles, investment from if company's an just to could perspective. add I

I XXXX Dan the Shareholder just will our really passing think first year note, this, mentioned be impact. rule the to point Reports midway it's important David and and Tailored is and full

working out which process year. So the of will our still with that roll through clients, through we're balance the

And Suite then to as Dan our well to you're to happening the the mentioned, very around help platform, related for Arc new of investment clients market the also watching to private requirements financial relative is in benefits what's reporting emerging our sure broadening tracking positioned retail and been the meet trends. access And investors. I'm markets many

is benefits historical reporting these structures. the our regulations financial reporting going Dan requirements. which really different the is be on ability this and requirements, And as drive handle new to and products, platform mentioned, are So [indiscernible] product of based to

some So area we very see nice positives as that in well.

use And They drive efficiencies. use to our us it tell to cost processes. they I'll by is saying the out clients Suite also Arc streamline close

tools. robust and content We workflow have management

the So Suite horizon. Arc the of utilization regulatory beyond this goes well

we've a to of TSR investors. work year this this retail private exciting do and new products things to some created relative market lot shift certainly to So got being with with

Operator

at Kyle We'll Peterson Needham. go next to

Kyle Peterson

continuing remarks, in how long Great. off of to some on how guess de-SPAC questions. I tail you guess, remain my seems like this the mentioned Or I this I to I a Is headwind? last taking is appreciate just kind start about it year? the prepared that long -- should we wanted guys of this activity? think headwind

Craig Clay

the is for question. you Thank Craig. Yes. This

revenue we're from leaseback again, de-SPAC, quarter you we low-quality expect think at through SPAC took 'XX. And certainly I lower the strategy can where we deals. at changed tail off market these because transactions deprioritize our the end, that the in is, certainly had we in 'XX

financing. So happen the poor market at due look are has it looking redemptions, shifted. a de-SPAC's depleted with to includes that to going de-SPAC's trust When at we deal, with

nothing in what If years completed you targets to foreign. and there And had ago left X are deals, New redemptions, X due of Exchange the not they in are done over and meeting happened listing the were XX their terminated York trust unpack due had almost stocks them now them or of delist risk have IDO all XX at them half de-SPAC's, the QX, previously were of acquiring of requirements. were many nanomicro-cap of Stock almost NASDAQ to

So Chairman look yes, 'XX will compete market. end SEC see the be market what I the few that's a ones prescriptive and that we are has think to And The at for coming he'll new forward about take. passed. moving that into in very rules we'll an quality the But is those. said, coming we'll we 'XX left, are

David Gardella

bad that Kyle sorry, would specifically of I increase Yes. years, And over talked would relates debt. few we've seen strategy the -- lot to about just it. that in the to the A Kyle, I just we've add last SG&A line, as it

was as peak, here capture discerning as much as and arena. and perspective, at going were Craig from in we're sense economic losers But look knowing And some the could, back to there quality, just this, when say outlined. being that share on some we of as market an much that that SPAC forward and its it be more the so made winners go to we we evaluate

Kyle Peterson

to the on color appreciate I revenue. switch that. wanted I Okay. and the to over print distribution

that bigger in coming mid-single-digit 'XX? print you Or for reset after are for kind of I 'XX. to runoff. quite kind was should as mid-single-digit year? we it a larger back it in think bit and the kind distribution guys of Obviously, 'XX? the of pace how about declines the historically, of guys revert it about budgeting how kind we you should of Should print have How think revenue messaged the a think in

David Gardella

I talk equal. being the in So the, X% question. the else trend, the call for that's X% we thanks range, Kyle, market, secular overall And overall all about just Yes. clarify, declining print we right? how revenue it, should view to when

the when drives best addition think the look baseline. quarter fourth our to to both positive see that really relative in revenue. we'll example The special in probably you that at to negative results, was I -- that specific proxy XXXX, right, print and any secular variances of decline, underlying

revenue market demand to transactional be increased level. normalized back on to extent a print reverts well. the that that will as with activity more Certainly, there

underlying have So decline special cetera. the bifurcate et you as proxies, print from almost secular or event-driven to market activity activity such

Kyle Peterson

Okay.

if that's in, one Okay allocation. particularly that's last one capital And color. then could good squeeze I just on --

is You good were in XXXX? think How on progress planning you are this you buy back on kind of guys -- there have guys then of your in and really thinking lot you the pension. debt stock. a I to a continue And guys have any spot, prioritizing about update?

So or helpful. would just be cash timing there any update on impact expected very

David Gardella

Yes.

unpack a it. remarks me in deployment shares there, for in deployment. So the and usual lot priorities debt a as you capital outlined investing From are net expect prepared I reduction our should business, business think the repurchasing as we perspective, capital let

a is very So same more relates we're transaction. specifically while of capital on us. termination, similar don't still to estimate share took the the end look and track for at this time an yet by on year. would the the the to done right? the do this this this We we deployment, balance to now to going cash And that we're are disciplined forward to pension it behind contribution. ready that have our get confident I that say, have right as to of had of waited a pretty We

Operator

from Securities. follow-up CJS a of take now Strauzer Charles We'll

Charles Strauzer

some if really that? wouldn't in you a of When Just bit mind the providing have QX baking into more you looking level confidence the you're assumptions a the at guidance and behind color little insight, quick guidance, follow-up.

David Gardella

Yes, Charlie.

at have So this point, a an perspective, January look February overall from we confidence obviously, in factor at activity.

biggest variables, one Markets you obviously, will the some look of at the assumption be when around think Capital transactional the activity. I

right, increase noted quarter. Markets in is it's $X from the that assuming remarks, that roughly down prepared slightly for $XX about is also quarter a did we we're million the from $XX the -- million in fourth significant million we first pretty $XX But XXXX, Capital As transactions down million. of the

of variability the if that remains where what kind we on to seeing a and tough That's in were in -- visibility, these saw when deals with look from hit. really would area how area so but were off forward and that's million. still came back far perspective, will what $XX understand what the Again, the we we fast some QX, in I similar to insight to had January timing where we're say we February. of biggest

Craig Clay

To to bit little add Craig. a is that, this of maybe

As stated, we on. uncertainty, we're always IPOs, pleased subject since good and news a which see to early the what with January January the for we busiest XXXX. little was are is bit

noting that full IPO ] this quarter DFIN's of there of is today, XX. It's we've of XX% done so [ the only in worth As count were 'XX, IPOs year. XX,

they but a we're last and and had hopeful So market, SailPoint, exciting, it's ownership, was had they trying its X still positives. that decent lot It's week. a only client, of price of for to equity find direction. which private years

IPO they after So more tech end, to they had headline did SailPoint the was priced at window. XX million But in unstick than the it the high shares anticipated. little crunch [indiscernible]

things these market. are how So don't we going know to impact just the

plan of we're happen. And to then a continued said, a focused market. the solid is for little off volatility. only has takes you euphoria depleted some bit. few a make We M&A It we're deals about think space that it as We're Dave to As planning the really start. where in any market, for

that the by in before bankers low announced market XXXX. year a Journal fading an [indiscernible] and have X,XXX the deals, uncertainty you the CEOs has the article decade deal Trump had earlier Street and to past were in prior So XXX, which week, you that And this January in the X,XXX had fast. is been Wall curtailed year. just compared which

Weiss ripe [ ] again, a just Paul the Tsunami coming. is stated of optimism. article in of It's the of ] The M&A a to [ lot So partner later. arrive

to space idea have But certainly to as and focused We it then no we're from nature it, transaction M&A when that's in perspective that going of Venue given come. well. the as relates

Operator

closing concludes remarks. session. the to Leib for conference that Q&A now back And our I turn Dan will over

Daniel Leib

you, speaking for joining couple and you, look of us. thank everyone, months. We a forward in to Thank

Operator

for call. And your today's conference you this participation. concludes Thank

You may now disconnect.

Donnelley Financial Solutions (DFIN) 18 Feb 252024 Q4 Earnings call transcript