NYSE$DFIN

Donnelley Financial Solutions Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Donnelley Financial Solutions reported financial results with software solutions net sales increasing and Adjusted EBITDA margin decreasing due to lower transactional sales volumes.

Donnelley Financial Solutions (DFIN) reported first-quarter results with total net sales of $211.0 million. Software solutions net sales increased by 15.8% year-over-year, reaching $69.8 million. Net earnings were $26.4 million, or $0.77 per diluted share, and Adjusted EBITDA was $51.1 million with a margin of 24.2%.

  • Record first-quarter software solutions net sales of $69.8 million, an increase of 15.8% from the first quarter of 2021.
  • Total net sales of $211.0 million.
  • Net earnings of $26.4 million, or $0.77 per diluted share; Adjusted EBITDA of $51.1 million and Adjusted EBITDA margin of 24.2%.
  • The Company repurchased 1,227,303 shares for $42.1 million during the first quarter.

Headline financials

Total Revenue

$211M

Previous: $245M-14.0%
EPS (adj)

$0.82

Previous: $1.15-28.7%
Adjusted EBITDA

$51.1M

Previous: $71.1M-28.1%
Adjusted EBITDA Margin

24.2%

Previous: 29.0%-16.6%
Gross Margin

53.1%

No prior period
Operating Margin

16.7%

No prior period
Capital Expenditures

-$9.9M

Previous: -$8M-23.8%
Free Cash Flow

$16.5M

Previous: $27.2M-39.3%
Net Income

$26.4M

Previous: $35.2M-25.0%
Operating Income

$35.3M

Previous: $50.9M-30.6%
Gross Profit

-$100M

Previous: -$112M+10.2%
Cash & Equivalents

$10.4M

Previous: $38.5M-73.0%
Total Assets

$872M

Previous: $900M-3.2%
Stock-Based Comp

$3.6M

Previous: $3.1M+16.1%

Revenue & EPS history

Donnelley Financial Solutions · Revenue · Quarterly

$211M

Q1 2022-14%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Donnelley Financial Solutions · $211M total across 3 segments · Q1 2022

  • Tech-enabled Services
    $91.7M-22.6%
  • Software Solutions
    $69.8M+15.8%
  • Print and Distribution
    $49.5M-25.6%

Forward guidance

The Company expects nearly 60% of total sales to be from software solutions by 2026, with a financial profile consistent with such a sales mix.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-2.6%

Avg return

Earnings day

-2.8%

Avg return

5 days after

-2.8%

Avg return

30 days after

40%

17 / 42 earnings

Positive

+25.5%

Q2 2022

Best reaction

-22.6%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-15.0%-23.6%
Q4 2025+12.3%+21.2%+20.0%
Q3 2025-14.3%-10.3%-5.1%
Q1 2025+3.9%+11.6%+17.4%
Q4 2024-22.6%-26.3%-32.5%
Q3 2024-11.6%-9.5%-5.7%
Q2 2024-7.0%-12.7%-4.0%
Q1 2024-0.6%+0.6%-2.9%
Q4 2023+3.2%+3.9%+1.4%
Q3 2023+1.8%+1.3%+6.9%
Q2 2023+1.0%+2.3%+6.2%
Q1 2023+1.6%+1.7%+8.9%
Q4 2022-14.6%-13.5%-22.0%
Q3 2022-18.9%-16.9%-8.9%
Q2 2022+25.5%+26.9%+17.0%
Q1 2022-14.6%-12.2%+0.4%
Q4 2021-3.9%+0.5%+3.3%
Q3 2021+15.4%+23.0%+12.5%
Q2 2021+10.4%+6.4%+5.3%
Q1 2021-16.4%-14.2%+1.1%
Q4 2020+14.4%+24.3%+20.9%
Q3 2020+2.6%-0.1%+22.4%
Q2 2020+23.1%+17.5%+9.9%
Q1 2020+13.1%+0.3%+35.6%
Q4 2019+1.4%+6.9%-37.3%
Q3 2019-16.4%-14.1%-10.4%
Q2 2019-1.0%-11.3%-22.0%
Q1 2019+6.4%+2.1%-18.3%
Q4 2018-12.0%-10.7%-7.8%
Q3 2018+6.9%+7.3%+1.1%
Q2 2018-10.4%-11.8%+0.8%
Q1 2018-7.3%-7.8%-17.8%
Q4 2017-15.4%-10.1%-14.2%
Q3 2017-8.2%-12.6%-4.5%
Q2 2017-5.9%-9.7%-7.7%
Q1 2016-2.2%-1.4%+2.6%
Q1 2017+3.6%-0.9%+15.7%
Q2 2016-13.9%-18.4%-25.9%
Q4 2016-13.9%-18.4%-25.9%
Q4 2014-13.9%-18.4%-25.9%
Q4 2015-5.5%-0.7%-2.0%
Q3 2016-5.5%-0.7%-2.0%
Q3 2015
Q2 2015
Q1 2015

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