Donnelley Financial Q2 revenue and adjusted EPS beat estimates on software solutions growth
DFIN•Outlook
- DFIN sees Q3 net sales between $175 mln and $185 mln
- Company expects Q3 adjusted EBITDA margin of 26% to 28%
- DFIN forecasts Q3 capital markets transactional net sales of $45 mln to $50 mln
Overview
- Compliance software provider's Q2 revenue rose 2.8% yr/yr, beating analyst expectations
- Adjusted EPS for Q2 beat analyst expectations
- Company repurchased 763,451 shares for $34.7 mln during the quarter
Company press release: ID:nPn2yNBPVa
Result Drivers
- Software solutions growth - Q2 net sales growth was primarily driven by a 7.8% increase in software solutions revenue, led by continued momentum in ActiveDisclosure, per CEO Daniel N. Leib
- Capital markets transactional activity - Higher capital markets transactional volumes contributed to net sales growth, despite geopolitical uncertainty and market volatility
- Favorable sales mix and cost control - Improved Adjusted EBITDA margin was driven by growth in higher-margin software solutions and tech-enabled services, along with permanent cost structure changes and ongoing operating efficiencies
