Donnelley Financial Solutions Inc · Q2 2022 earnings

Briefing

Donnelley Financial Solutions reported strong second-quarter results, driven by growth in software solutions and tech-enabled services, increased Adjusted EBITDA and margin despite a challenging capital markets transactional environment.

Donnelley Financial Solutions (DFIN) reported second-quarter 2022 financial results, featuring total net sales of $266.2 million, net earnings of $46.0 million, and adjusted EBITDA of $82.6 million. The company's performance was driven by growth in software solutions and tech-enabled services, which offset a reduction in capital markets transactions activity. DFIN also repurchased 2,180,796 shares for $64.4 million during the quarter.

• Total net sales reached $266.2 million, with growth in capital markets compliance, software solutions, and tech-enabled services offsetting declines in capital markets transactions.
• Software solutions net sales hit a record $71.6 million, up 7.5% year-over-year, driven by compliance software growth of 12.7%.
• Net earnings increased to $46.0 million, or $1.42 per diluted share, up from $42.9 million, or $1.24 per diluted share, in the second quarter of 2021.
• Adjusted EBITDA rose to $82.6 million with a margin of 31.0%, up 110 basis points from the previous year, due to higher capital markets compliance volume and cost savings initiatives.

Headline financials

Revenue & EPS history

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