NYSE$DFIN

Donnelley Financial Solutions Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Donnelley Financial Solutions reported an increase in net sales and adjusted EBITDA, driven by strength in capital markets and software solutions growth.

Donnelley Financial Solutions (DFIN) reported a 5.3% increase in net sales to $267.5 million and a 31.4% increase in Adjusted EBITDA to $79.9 million for the second quarter of 2021. The growth was primarily driven by continued strength in capital markets and growth in software solutions net sales.

  • Net sales increased by 5.3% to $267.5 million compared to Q2 2020, driven by capital markets and software solutions.
  • Software solutions net sales reached a record $66.6 million, up 39.9% year-over-year.
  • Net earnings increased to $42.9 million, up from a net loss of $1.3 million in Q2 2020.
  • Adjusted EBITDA increased by 31.4% to $79.9 million, with an Adjusted EBITDA margin of 29.9%.

Headline financials

Total Revenue

$268M

Previous: $254M+5.3%
EPS (adj)

$1.38

Previous: $0.87+58.6%
Adjusted EBITDA

$79.9M

Previous: $60.8M+31.4%
Adjusted EBITDA Margin

29.9%

Previous: 23.9%+25.1%
Capital Expenditures

-$9.7M

Previous: -$8.8M-10.2%
Free Cash Flow

$33.2M

Previous: -$10.1M+428.7%
Net Income

$42.9M

Previous: -$1.3M+3400.0%
Operating Income

$62M

Previous: $3.9M+1489.7%
Gross Profit

-$120M

Previous: -$141M+15.0%
Cash & Equivalents

$39.9M

Previous: $37.4M+6.7%
Total Assets

$932M

Previous: $964M-3.4%
Stock-Based Comp

$5.9M

Previous: $3.1M+90.3%

Revenue & EPS history

Donnelley Financial Solutions · Revenue · Quarterly

$268M

Q2 2021+5.3%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Donnelley Financial Solutions · $268M total across 3 segments · Q2 2021

  • Tech-enabled Services
    $134M+16.1%
  • Print and Distribution
    $66.9M-26.5%
  • Software Solutions
    $66.6M+39.9%

Forward guidance

DFIN is seeing continued momentum from the start of Q3 including strength in the transactional environment. The company is well positioned to capture acquisition activity from the SPAC market and capture additional ActiveDisclosure software subscription sales.

Tailwinds

  • Ongoing positive market response to software solutions.
  • Sales momentum across software solutions offerings accelerated.
  • Strength in the transactional environment.
  • Robust pipeline of clients seeking acquisition opportunities in the SPAC market.
  • Well positioned to capture additional ActiveDisclosure software subscription sales.

Headwinds

  • Not mentioned
  • Not mentioned
  • Not mentioned
  • Not mentioned
  • Not mentioned

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 Q2 2021

Historical avgQ2 2021

-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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