NYSE$DFIN

Donnelley Financial Solutions Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

DFIN reported a decrease in net sales due to lower capital markets transactional volumes, but delivered record software solutions revenue and strong margin performance.

Donnelley Financial Solutions (DFIN) reported third-quarter results, featuring record software solutions revenue, driven by double-digit growth in recurring compliance software products. Despite a weaker capital markets environment, the company maintained a strong Adjusted EBITDA margin, demonstrating its ability to operate profitably.

  • Record third-quarter software solutions net sales of $69.5 million, accounting for 36.8% of total net sales, up from 28.0% in Q3 2021.
  • Net earnings were $19.2 million, or $0.62 per diluted share, with an Adjusted EBITDA of $45.3 million and an Adjusted EBITDA margin of 24.0%.
  • Third-quarter operating cash flow was $83.3 million, and Free Cash Flow was $68.7 million.
  • The company repurchased 959,579 shares for $32.3 million during the quarter.

Headline financials

Total Revenue

$189M

Previous: $248M-23.8%
EPS (adj)

$0.77

Previous: $1.36-43.4%
Adjusted EBITDA

$45.3M

Previous: $82.5M-45.1%
Adjusted EBITDA Margin

24.0%

Previous: 33.3%-27.9%
Capital Expenditures

-$14.6M

Previous: -$10.5M-39.0%
Free Cash Flow

$4.6M

Previous: $31.7M-85.5%
Net Income

$19.2M

Previous: $42.2M-54.5%
Operating Income

$26.7M

Previous: $65M-58.9%
Gross Profit

-$88.9M

Previous: -$95.4M+6.8%
Cash & Equivalents

$10.8M

Previous: $123M-91.2%
Total Assets

$851M

Previous: $995M-14.4%
Stock-Based Comp

$4.4M

Previous: $5.2M-15.4%

Revenue & EPS history

Donnelley Financial Solutions · Revenue · Quarterly

$189M

Q3 2022-23.8%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Donnelley Financial Solutions · $189M total across 3 segments · Q3 2022

  • Tech-enabled Services
    $87.4M-38.5%
  • Software Solutions
    $69.5M+0.3%
  • Print and Distribution
    $31.8M-12.4%

Forward guidance

While the outlook for capital markets transactional activity remains uncertain, DFIN anticipates leveraging its financial flexibility to invest in a more favorable recurring sales mix, aggressively manage its cost structure, and remain disciplined in capital allocation.

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 Q3 2022

Historical avgQ3 2022

-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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