Donnelley Financial Solutions Inc · Q3 2021 earnings

Briefing

Donnelley Financial Solutions reported record quarterly Adjusted EBITDA and Free Cash Flow, driven by strength in capital markets and growth in software solutions.

Donnelley Financial Solutions reported strong Q3 2021 results, with net sales up 18.2% year-over-year to $247.7 million. The company achieved record quarterly software solutions net sales, Adjusted EBITDA, and Free Cash Flow. The shift to a more profitable sales mix contributed significantly to the company's transformation.

• Net sales increased by 18.2% to $247.7 million, driven by capital markets and software solutions growth.
• Software solutions net sales reached a record $69.3 million, up 35.6% year-over-year.
• Net earnings increased to $42.2 million, up from $7.1 million in Q3 2020.
• Adjusted EBITDA increased by 73.3% to $82.5 million with Adjusted EBITDA margin of 33.3%.

Headline financials

Revenue & EPS history

The Company now expects 2021 reductions to net sales, net earnings and Adjusted EBITDA to be approximately $110 million, $4 million and $5 million, respectively. The Company expects the remaining impact to occur in 2022, with an expected reduction in net sales, net earnings and Adjusted EBTIDA of approximately $30 million, $2 million and $3 million, respectively. In aggregate, the expected impacts to net sales, net earnings and Adjusted EBITDA are in line with previous guidance.