NYSE$DFIN
Donnelley Financial Solutions Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Donnelley Financial Solutions reported second-quarter results with record software solutions net sales.
Donnelley Financial Solutions reported a decrease in total net sales by 9.1% to $242.1 million, but record quarterly software solutions net sales of $75.7 million, an increase of 5.7% year-over-year. Net earnings were $37.7 million, or $1.24 per diluted share, as compared to $46.0 million, or $1.42 per diluted share, in the second quarter of 2022. Adjusted EBITDA was $74.3 million with a margin of 30.7%.
- Total net sales of $242.1 million and net earnings of $37.7 million, or $1.24 per diluted share.
- Record quarterly software solutions net sales of $75.7 million, an increase of 5.7%, or 7.9% on an organic basis, from the second quarter of 2022.
- Adjusted EBITDA of $74.3 million and Adjusted EBITDA margin of 30.7%, down 30 basis points from the second quarter of 2022.
- During the second quarter, the Company repurchased 42,987 shares for $1.9 million at an average price of $43.59 per share.
Headline financials
Revenue & EPS history
Donnelley Financial Solutions · Revenue · Quarterly
$242M
Revenue by segment
Donnelley Financial Solutions · $242M total across 3 segments · Q2 2023
- Tech-enabled Services$105M-21.6%43.2%
- Software Solutions$75.7M+5.7%31.3%
- Print and Distribution$61.9M+1.0%25.6%
Forward guidance
The company is pleased with the momentum in software solutions net sales and believes it is well positioned for future growth. They are also encouraged by the level of capital markets transactional activity so far in the third quarter.
Tailwinds
- Momentum in software solutions net sales
- Well positioned for future growth
- Encouraged by the level of capital markets transactional activity so far in the third quarter
- Acceleration of software solutions net sales, which resulted in record quarterly net sales in software solutions
- Recurring compliance software featuring ActiveDisclosure and Arc Suite delivered net sales growth of approximately 9% in aggregate
Headwinds
- Nearly 40% reduction in transactional revenue driven by the ongoing weakness in the capital markets transactions environment
- Net sales decreased primarily due to lower capital markets transactional volumes, which decreased approximately $28.1 million year-over-year
- Net earnings were $37.7 million, or $1.24 per diluted share, as compared to $46.0 million, or $1.42 per diluted share, in the second quarter of 2022
- Adjusted EBITDA was $74.3 million, a decrease of $8.3 million as compared to the second quarter of 2022
- Adjusted EBITDA margin was 30.7%, a decrease of approximately 30 basis points as compared to the second quarter of 2022
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 2023
-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
| Quarter | Report date | Reaction (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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