NYSE$DFIN

Donnelley Financial Solutions Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported record full-year software solutions net sales, adjusted EBITDA, adjusted EBITDA margin, and free cash flow.

Donnelley Financial Solutions reported a strong fourth quarter and full year 2021, marked by record full-year software sales, Adjusted EBITDA, Adjusted EBITDA margin and Free Cash Flow. The company's software solutions full-year net sales grew 35% from 2020, reaching $270 million.

  • Net sales increased by 10.7% to $232.8 million compared to Q4 2020, driven by growth in software solutions and strength in capital markets.
  • Software solutions net sales reached a record $73.8 million, a 36.2% increase from Q4 2020, accounting for 31.7% of total net sales.
  • Net earnings increased to $25.6 million, up $61.4 million from Q4 2020, driven by decreased restructuring charges, increased net sales, and a favorable sales mix.
  • Adjusted EBITDA increased by 75.6% to $61.3 million compared to Q4 2020, driven by higher net sales, a favorable sales mix, and cost control initiatives.

Headline financials

Total Revenue

$233M

Previous: $210M+10.7%
EPS (adj)

$1.07

Previous: $0.36+197.2%
Adjusted EBITDA

$61.3M

Previous: $34.9M+75.6%
Adjusted EBITDA Margin

26.3%

Previous: 16.6%+58.4%
Capital Expenditures

$14.1M

Previous: $6.6M+113.6%
Free Cash Flow

$62.7M

Previous: $95.1M-34.1%
Net Income

$25.6M

Previous: -$35.8M+171.5%
Operating Income

$41.4M

Previous: -$27.4M+251.1%
Gross Profit

$141M

Previous: $101M+39.8%
Cash & Equivalents

$54.5M

Previous: $73.6M-26.0%
Total Assets

$883M

Previous: $866M+2.0%
Stock-Based Comp

$5.3M

Previous: $3.8M+39.5%

Revenue & EPS history

Donnelley Financial Solutions · Revenue · Quarterly

$233M

Q4 2021+10.7%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Donnelley Financial Solutions · $233M total across 3 segments · Q4 2021

  • Tech-enabled Services
    $125M+16.3%
  • Software Solutions
    $73.8M+36.2%
  • Print and Distribution
    $34.1M-30.0%

Forward guidance

Looking ahead to 2022, the company remains committed to executing its strategy of being the market-leading provider of regulatory and compliance solutions.

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 Q4 2021

Historical avgQ4 2021

-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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