NYSE$DFIN

Donnelley Financial Solutions Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Donnelley Financial Solutions reported an increase in net sales and adjusted EBITDA, driven by software solutions growth and cost control.

Donnelley Financial Solutions (DFIN) reported a slight increase in net sales for Q2 2024, with a significant boost in software solutions revenue offsetting declines in other segments. Adjusted EBITDA and margins expanded substantially due to a favorable sales mix and cost management. The company is focused on investing in profitable, recurring revenue streams.

  • Record quarterly software solutions net sales of $85.6 million, up 13.1% year-over-year.
  • Total net sales increased by 0.2% to $242.7 million compared to Q2 2023.
  • Adjusted EBITDA increased by 17.4% to $87.2 million, with margin expansion of approximately 520 basis points.
  • The company repurchased 317,388 shares for approximately $19.2 million during the quarter.

Headline financials

Total Revenue

$243M

Previous: $242M+0.2%
EPS (adj)

$1.66

Previous: $1.34+23.9%
Capital Expenditures

-$31.7M

Previous: -$13.2M-140.2%
Free Cash Flow

$12.4M

Previous: $24.5M-49.4%
Net Income

$44.1M

Previous: $37.7M+17.0%
Operating Income

$64.5M

Previous: $55.6M+16.0%
Gross Profit

-$94.9M

Previous: -$105M+9.5%
Cash & Equivalents

$35M

Previous: $19.4M+80.4%
Total Assets

$883M

Previous: $902M-2.1%
Stock-Based Comp

$7.4M

Previous: $6.7M+10.4%

Revenue & EPS history

Donnelley Financial Solutions · Revenue · Quarterly

$243M

Q2 2024+0.2%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Donnelley Financial Solutions · $180M total across 3 segments · Q3 2023

  • Tech-enabled Services
    $80.4M-8.0%
  • Software Solutions
    $73.2M+5.3%
  • Print and Distribution
    $26.4M-17.0%

Forward guidance

The company remains focused on investing to drive profitable, recurring revenue growth, including realizing opportunities from the Tailored Shareholder Reports regulation.

Tailwinds

  • Realizing opportunities from the Tailored Shareholder Reports regulation.
  • Positive market response to ArcReporting software offering.
  • Leading compliance software platform.
  • Deep domain service expertise.
  • Capturing recurring revenue opportunities from current and future regulations

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 2024

Historical avgQ2 2024

-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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