Broadridge Reports First Quarter Fiscal 2025 Results
Broadridge Financial Solutions reported Q1 FY2025 results with recurring revenues growing 3% (4% constant currency) to $900 million. Total revenues decreased 1% to $1,423 million. Closed sales rose 21% to $57 million, while diluted EPS decreased 11% to $0.68 and adjusted EPS fell 8% to $1.00. The company raised its FY2025 guidance for recurring revenue growth to 6-8% (from 5-7%) and reaffirmed adjusted EPS growth guidance of 8-12%. The company also completed the acquisition of Kyndryl's SIS business for approximately $185 million.
Broadridge Financial Solutions ha riportato i risultati del primo trimestre dell'anno finanziario 2025, con entrate ricorrenti in crescita del 3% (4% a cambio costante) raggiungendo $900 milioni. Le entrate totali sono diminuite dell'1% a $1.423 milioni. Le vendite chiuse sono aumentate del 21% a $57 milioni, mentre l'EPS diluito è sceso dell'11% a $0,68 e l'EPS rettificato è diminuito dell'8% a $1,00. L'azienda ha alzato le previsioni per la crescita delle entrate ricorrenti per l'anno finanziario 2025 al 6-8% (rispetto al precedente 5-7%) e ha confermato le previsioni di crescita dell'EPS rettificato dell'8-12%. L'azienda ha inoltre completato l'acquisizione del business SIS di Kyndryl per circa $185 milioni.
Broadridge Financial Solutions reportó los resultados del primer trimestre del año fiscal 2025, con ingresos recurrentes creciendo un 3% (4% a moneda constante) alcanzando los $900 millones. Los ingresos totales disminuyeron un 1% a $1.423 millones. Las ventas cerradas aumentaron un 21% a $57 millones, mientras que el EPS diluido disminuyó un 11% a $0.68 y el EPS ajustado cayó un 8% a $1.00. La empresa elevó su guía para el crecimiento de ingresos recurrentes para el año fiscal 2025 a un 6-8% (desde el 5-7%) y reafirmó la guía de crecimiento del EPS ajustado del 8-12%. La empresa también completó la adquisición del negocio SIS de Kyndryl por aproximadamente $185 millones.
브로드리지 파이낸셜 솔루션스는 2025 회계연도 1분기 결과를 발표하였으며, 반복 수익이 3% 증가하였고(4% 상수 환율) 9억 달러에 달했습니다. 총 수익은 1% 감소하여 14억 2,300만 달러에 이르렀습니다. 중고 판매는 21% 증가하여 5,700만 달러에 이르렀고, 희석 EPS는 11% 감소하여 0.68달러, 조정 EPS는 8% 하락하여 1.00달러가 되었습니다. 이 회사는 2025 회계연도 반복 수익 성장 가이드를 6-8%로 상향 조정하였고(5-7%에서), 조정 EPS 성장 가이드를 8-12%로 재확인하였습니다. 또한 이 회사는 Kyndryl의 SIS 사업을 약 1억 8,500만 달러에 인수 완료하였습니다.
Broadridge Financial Solutions a rapporté les résultats du premier trimestre de l'exercice fiscal 2025, avec des revenus récurrents en hausse de 3% (4% à taux de change constant) atteignant 900 millions de dollars. Les revenus totaux ont diminué de 1% pour atteindre 1,423 million de dollars. Les ventes fermées ont augmenté de 21% pour atteindre 57 millions de dollars, tandis que le BPA dilué a diminué de 11% à 0,68 dollar et le BPA ajusté a chuté de 8% à 1,00 dollar. L'entreprise a relevé ses prévisions de croissance des revenus récurrents pour l'exercice fiscal 2025 à 6-8% (contre 5-7%) et a confirmé ses prévisions de croissance du BPA ajusté de 8-12%. L'entreprise a également finalisé l'acquisition de l'activité SIS de Kyndryl pour environ 185 millions de dollars.
Broadridge Financial Solutions berichtete über die Ergebnisse des 1. Quartals des Geschäftsjahres 2025, mit wachstumsorientierten wiederkehrenden Einnahmen von 3% (4% bei konstanten Währungsbedingungen) und insgesamt $900 Millionen. Die Gesamteinnahmen sanken um 1% auf $1,423 Millionen. Die Abschlussverkäufe stiegen um 21% auf $57 Millionen, während das verwässerte EPS um 11% auf $0,68 fiel und das angepasste EPS um 8% auf $1,00 zurückging. Das Unternehmen erhöhte seine Prognose für das Wachstum der wiederkehrenden Einnahmen für das Geschäftsjahr 2025 auf 6-8% (von 5-7%) und bestätigte die Prognose für das Wachstum des angepassten EPS von 8-12%. Das Unternehmen hat zudem die Übernahme des SIS-Geschäfts von Kyndryl für etwa $185 Millionen abgeschlossen.
- Recurring revenues increased 3% to $900 million
- Closed sales grew 21% to $57 million
- Raised FY2025 recurring revenue growth guidance to 6-8%
- Strategic acquisition of SIS business completed for $185 million
- Total revenues decreased 1% to $1,423 million
- Operating income declined 9% to $134 million
- Operating margin decreased to 9.4% from 10.4%
- Diluted EPS fell 11% to $0.68
- Event-driven revenues decreased 28% to $63 million
Insights
The Q1 FY2025 results reveal mixed performance with some concerning trends.
However, positive indicators include
The declining operating margin (from
The wealth management and capital markets segments show divergent trends that impact future growth prospects. The Capital Markets division demonstrated resilience with
The acquisition of Kyndryl's SIS business strategically expands Broadridge's Canadian presence and should help offset some headwinds. The strong sales pipeline and
Recurring revenues grew
Closed sales rose
Diluted EPS was
Raising FY'25 guidance to include 6
reaffirming 8
Summary Financial Results | First Quarter | |||
Dollars in millions, except per share data
| 2025 | 2024 | Change | |
Recurring revenues | 3 % | |||
Constant currency growth (Non-GAAP) | 4 % | |||
Total revenues | (1 %) | |||
Operating income | (9 %) | |||
Margin | 9.4 % | 10.4 % | ||
Adjusted Operating income (Non-GAAP) | (7 %) | |||
Margin (Non-GAAP) | 13.0 % | 13.9 % | ||
Diluted EPS | (11 %) | |||
Adjusted EPS (Non-GAAP) | (8 %) | |||
Closed sales | 21 % |
"Broadridge's first quarter results keep us on track to deliver a strong fiscal year 2025," said Tim Gokey, Broadridge CEO. "In a seasonally small quarter, Recurring revenue constant currency grew
"We continue to execute on our strategy to democratize and digitize investing, simplify and innovate trading, and modernize wealth management. That execution is driving our results in the form of strong sales, a growing sales pipeline, and continued product innovation," he continued.
"We are raising our Fiscal Year 2025 outlook for Recurring revenue growth to 6
Fiscal Year 2025 Financial Guidance
FY'25 Guidance | Updates | ||
Recurring revenue growth constant currency (Non-GAAP) | 6 - | Previously 5 | |
Adjusted Operating income margin (Non-GAAP) | ~ | No Change | |
Adjusted Earnings per share growth (Non-GAAP) | 8 - | No Change | |
Closed sales | No Change |
Financial Results for First Quarter Fiscal Year 2025 compared to First Quarter Fiscal Year 2024
- Total revenues decreased
1% to from$1,423 million .$1,431 million - Recurring revenues increased
, or$29 million 3% , to . Recurring revenue growth constant currency (Non-GAAP) was$900 million 4% , driven by Net New Business in ICS and Internal Growth in GTO. - Event-driven revenues decreased
, or$24 million 28% , to , driven by lower corporate action activity and lower volume of mutual fund proxy communications.$63 million - Distribution revenues decreased
, or$13 million 3% , to , driven by lower volume of event-driven mailings partially offset by the postage rate increase of approximately$460 million .$23 million
- Recurring revenues increased
- Operating income was
, a decrease of$134 million , or$14 million 9% . Operating income margin decreased to9.4% , compared to10.4% for the prior year period, primarily due to lower event-driven revenues partially offset by higher Recurring revenues.- Adjusted Operating income was
, a decrease of$185 million , or$14 million 7% . Adjusted Operating income margin was13.0% compared to13.9% for the prior year period. The combination of lower distribution revenue and modestly higher float income negatively impacted margins by 30 basis points.
- Adjusted Operating income was
- Interest expense, net was
, a decrease of$32 million , primarily due to a decrease in average borrowings.$1 million - The effective tax rate was
20.4% compared to19.5% in the prior year period. The effective tax rate for the three months ended September 30, 2024 was primarily driven by a decrease in discrete tax benefits relative to pre-tax income due to a lower excess tax benefit related to equity compensation. - Net earnings decreased
12% to and Adjusted Net earnings decreased$80 million 9% to .$118 million - Diluted earnings per share decreased
11% to , compared to$0.68 in the prior year period, and$0.76 - Adjusted earnings per share decreased
8% to , compared to$1.00 in the prior year period.$1.09
- Diluted earnings per share decreased
Segment and Other Results for First Quarter Fiscal Year 2025 compared to First Quarter Fiscal Year 2024
Investor Communication Solutions ("ICS")
- Total revenues were
, a decrease of$1,016 million , or$13 million 1% .- Recurring revenues increased
or$24 million 5% , to . Recurring revenue growth constant currency (Non-GAAP) was$493 million 5% , driven by Net New Business. - By product line, Recurring revenue growth and Recurring revenue growth constant currency (Non-GAAP) were as follows:
- Regulatory rose
6% and6% , respectively, which included the impact of equity position growth of3% and mutual fund/ETF position growth of6% . - Data-driven fund solutions rose
6% and6% , respectively, driven primarily by growth in our global distribution insights and retirement and workplace products. - Issuer rose
8% and8% , respectively, driven by growth in shareholder engagement solutions and disclosure solutions products. - Customer communications rose
3% and3% , respectively, driven by growth in print revenues and digital communications.
- Regulatory rose
- Event-driven revenues decreased
, or$24 million 28% , to , driven by lower corporate action activity and lower volume of mutual fund proxy communications.$63 million - Distribution revenues decreased
, or$13 million 3% , to , driven by lower volume of event-driven mailings partially offset by the postage rate increase of approximately$460 million .$23 million
- Recurring revenues increased
- Earnings before income taxes decreased by
, or$19 million 16% , to , as the benefit from higher Recurring revenue was more than offset by lower event-driven revenue. Operating expenses rose$97 million 1% , or to$6 million as lower distribution volumes more than offset the impact of the postage rate increase.$919 million - Pre-tax margins decreased to
9.5% from11.2% in the prior period.
Global Technology and Operations ("GTO")
- Recurring revenues were
, an increase of$407 million , or$5 million 1% . Recurring revenue growth constant currency (Non-GAAP) was2% , all organic, driven by Internal Growth. Net New Business was flat as revenue from new sales was offset by losses. - By product line, Recurring revenue growth and the corresponding Recurring revenue growth constant currency (Non-GAAP) were as follows:
- Capital Markets rose
5% and5% , respectively, driven by Net New Business and Internal Growth. Internal Growth benefited from higher trading volumes. - Wealth and Investment Management declined
5% and4% , respectively, driven primarily by the ongoing impact of a large client loss which reduced revenue growth by approximately 10 points.
- Capital Markets rose
- Earnings before income taxes were
, an increase of$47 million , or$14 million 41% from a combination of higher revenues and lower expenses, including lower labor costs. - Pre-tax margins increased to
11.6% from8.4% .
Other
- Loss before income tax increased to
from$44 million in the prior year period, primarily due to higher compensation and other Corporate expenses, including Acquisition and Integration Costs of$36 million .$2 million
Acquisition of SIS
On November 1, 2024, the Company completed the acquisition of Kyndryl's Securities Industry Services ("SIS") business ("SIS Business") to provide wealth management, capital markets, and information technology solutions in
Earnings Conference Call
An analyst conference call will be held today, November 5, 2024 at 8:30 a.m. ET. A live webcast of the call will be available to the public on a listen-only basis. To listen to the live event and access the slide presentation, visit Broadridge's Investor Relations website at www.broadridge-ir.com prior to the start of the webcast. To listen to the call, investors may also dial 1-877-328-2502 within
Explanation and Reconciliation of the Company's Use of Non-GAAP Financial Measures
The Company's results in this press release are presented in accordance with
The Company believes our Non-GAAP financial measures help investors understand how management plans, measures and evaluates the Company's business performance. Management believes that Non-GAAP measures provide consistency in its financial reporting and facilitates investors' understanding of the Company's operating results and trends by providing an additional basis for comparison. Management uses these Non-GAAP financial measures to, among other things, evaluate our ongoing operations, and for internal planning and forecasting purposes. In addition, and as a consequence of the importance of these Non-GAAP financial measures in managing our business, the Company's Compensation Committee of the Board of Directors incorporates Non-GAAP financial measures in the evaluation process for determining management compensation.
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Earnings and Adjusted Earnings Per Share
These Non-GAAP measures are adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items the exclusion of which management believes provides insight regarding our ongoing operating performance. Depending on the period presented, these adjusted measures exclude the impact of certain of the following items:
(i) Amortization of Acquired Intangibles and Purchased Intellectual Property, which represent non-cash amortization expenses associated with the Company's acquisition activities
(ii) Acquisition and Integration Costs, which represent certain transaction and integration costs associated with the Company's acquisition activities.
We exclude Acquisition and Integration Costs from our Adjusted Operating income (as applicable) and other adjusted earnings measures because excluding such information provides us with an understanding of the results from the primary operations of our business and enhances comparability across fiscal reporting periods, as these items are not reflective of our underlying operations or performance.
We also exclude the impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, as these non-cash amounts are significantly impacted by the timing and size of individual acquisitions and do not factor into the Company's capital allocation decisions, management compensation metrics or multi-year objectives. Furthermore, management believes that this adjustment enables better comparison of our results as Amortization of Acquired Intangibles and Purchased Intellectual Property will not recur in future periods once such intangible assets have been fully amortized. Although we exclude Amortization of Acquired Intangibles and Purchased Intellectual Property from our adjusted earnings measures, our management believes that it is important for investors to understand that these intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.
Free cash flow
In addition to the Non-GAAP financial measures discussed above, we provide Free cash flow information because we consider Free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated that could be used for dividends, share repurchases, strategic acquisitions, other investments, as well as debt servicing. Free cash flow is a Non-GAAP financial measure and is defined by the Company as Net cash flows provided by operating activities less Capital expenditures as well as Software purchases and capitalized internal use software.
Recurring revenue growth constant currency
As a multi-national company, we are subject to variability of our reported
Changes in Recurring revenue growth expressed on a constant currency basis are presented excluding the impact of foreign currency exchange fluctuations. To present this information, current period results for entities reporting in currencies other than the
Forward-Looking Statements
This press release and other written or oral statements made from time to time by representatives of Broadridge may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature, and which may be identified by the use of words such as "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could be," "on track," and other words of similar meaning, are forward-looking statements. In particular, information appearing in the "Fiscal Year 2025 Financial Guidance" section and statements about our three-year objectives are forward-looking statements.
These statements are based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. These risks and uncertainties include those risk factors described and discussed in Part I, "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended June 30, 2024 (the "2024 Annual Report"), as they may be updated in any future reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by reference to the factors discussed in the 2024 Annual Report.
These risks include:
- changes in laws and regulations affecting Broadridge's clients or the services provided by Broadridge;
- Broadridge's reliance on a relatively small number of clients, the continued financial health of those clients, and the continued use by such clients of Broadridge's services with favorable pricing terms;
- a material security breach or cybersecurity attack affecting the information of Broadridge's clients;
- declines in participation and activity in the securities markets;
- the failure of Broadridge's key service providers to provide the anticipated levels of service;
- a disaster or other significant slowdown or failure of Broadridge's systems or error in the performance of Broadridge's services;
- overall market, economic and geopolitical conditions and their impact on the securities markets;
- the success of Broadridge in retaining and selling additional services to its existing clients and in obtaining new clients;
- Broadridge's failure to keep pace with changes in technology and demands of its clients;
- competitive conditions;
- Broadridge's ability to attract and retain key personnel; and
- the impact of new acquisitions and divestitures.
There may be other factors that may cause our actual results to differ materially from the forward-looking statements. Our actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on our results of operations and financial condition.
Broadridge disclaims any obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech leader with over
Contact Information
Investors
broadridgeir@broadridge.com
Media
Gregg.rosenberg@broadridge.com
Condensed Consolidated Statements of Earnings | ||||
In millions, except per share amounts | Three Months Ended | |||
2024 | 2023 | |||
Revenues | $ 1,422.9 | $ 1,431.1 | ||
Operating expenses: | ||||
Cost of revenues | 1,075.0 | 1,075.3 | ||
Selling, general and administrative expenses | 213.4 | 207.3 | ||
Total operating expenses | 1,288.4 | 1,282.6 | ||
Operating income | 134.4 | 148.4 | ||
Interest expense, net | (32.3) | (33.4) | ||
Other non-operating income (expenses), net | (1.9) | (2.1) | ||
Earnings before income taxes | 100.3 | 112.9 | ||
Provision for income taxes | 20.5 | 22.0 | ||
Net earnings | $ 79.8 | $ 90.9 | ||
Basic earnings per share | $ 0.68 | $ 0.77 | ||
Diluted earnings per share | $ 0.68 | $ 0.76 | ||
Weighted-average shares outstanding: | ||||
Basic | 116.9 | 117.9 | ||
Diluted | 118.1 | 119.2 |
Amounts may not sum due to rounding. |
Condensed Consolidated Balance Sheets (Unaudited) | |||||
In millions, except per share amounts | September 30, | June 30, | |||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ 292.8 | $ 304.4 | |||
Accounts receivable, net of allowance for doubtful accounts of respectively | 895.3 | 1,065.6 | |||
Other current assets | 162.2 | 170.9 | |||
Total current assets | 1,350.2 | 1,540.9 | |||
Property, plant and equipment, net | 160.3 | 162.2 | |||
Goodwill | 3,511.7 | 3,469.4 | |||
Intangible assets, net | 1,265.4 | 1,307.2 | |||
Deferred client conversion and start-up costs | 882.0 | 892.1 | |||
Other non-current assets | 847.4 | 870.6 | |||
Total assets | $ 8,017.1 | $ 8,242.4 | |||
Liabilities and Stockholders' Equity | |||||
Current liabilities: | |||||
Payables and accrued expenses | $ 771.4 | $ 1,194.4 | |||
Contract liabilities | 201.1 | 227.4 | |||
Total current liabilities | 972.4 | 1,421.8 | |||
Long-term debt | 3,585.9 | 3,355.1 | |||
Deferred taxes | 256.3 | 277.3 | |||
Contract liabilities | 457.4 | 469.2 | |||
Other non-current liabilities | 538.5 | 550.9 | |||
Total liabilities | 5,810.7 | 6,074.2 | |||
Stockholders' equity: | |||||
Preferred stock: Authorized, 25.0 shares; issued and outstanding, none | — | — | |||
Common stock, and 154.5 shares, respectively; outstanding, 116.9 and 116.7 shares, respectively | 1.6 | 1.6 | |||
Additional paid-in capital | 1,580.3 | 1,552.5 | |||
Retained earnings | 3,412.0 | 3,435.1 | |||
Treasury stock, at cost: 37.6 and 37.8 shares, respectively | (2,484.9) | (2,489.2) | |||
Accumulated other comprehensive income (loss) | (302.5) | (331.7) | |||
Total stockholders' equity | 2,206.4 | 2,168.2 | |||
Total liabilities and stockholders' equity | $ 8,017.1 | $ 8,242.4 |
Amounts may not sum due to rounding. |
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
In millions | Three Months Ended September 30, | ||
2024 | 2023 | ||
Cash Flows From Operating Activities | |||
Net earnings | $ 79.8 | $ 90.9 | |
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||
Depreciation and amortization | 32.3 | 29.4 | |
Amortization of acquired intangibles and purchased intellectual property | 48.2 | 50.8 | |
Amortization of other assets | 42.8 | 39.3 | |
Write-down of long-lived assets and related charges | 0.1 | 5.6 | |
Stock-based compensation expense | 14.9 | 16.4 | |
Deferred income taxes | (17.3) | 2.2 | |
Other | (7.6) | (15.3) | |
Changes in operating assets and liabilities, net of assets and liabilities acquired: | |||
Accounts receivable, net | 179.8 | 68.4 | |
Other current assets | 8.7 | (8.6) | |
Payables and accrued expenses | (453.7) | (294.2) | |
Contract liabilities | (21.8) | (7.8) | |
Other non-current assets | (28.7) | (38.8) | |
Other non-current liabilities | (3.0) | (0.3) | |
Net cash flows from operating activities | (125.5) | (62.0) | |
Cash Flows From Investing Activities | |||
Capital expenditures | (7.9) | (4.7) | |
Software purchases and capitalized internal use software | (24.2) | (9.7) | |
Acquisitions, net of cash acquired | (8.0) | — | |
Net cash flows from investing activities | (40.1) | (14.4) | |
Cash Flows From Financing Activities | |||
Debt proceeds | 470.0 | 462.7 | |
Debt repayments | (240.0) | (192.7) | |
Dividends paid | (93.4) | (85.6) | |
Purchases of Treasury stock | (0.3) | (161.1) | |
Proceeds from exercise of stock options | 17.8 | 37.7 | |
Other financing activities | (2.3) | (3.7) | |
Net cash flows from financing activities | 151.8 | 57.3 | |
Effect of exchange rate changes on Cash and cash equivalents | 2.1 | 0.8 | |
Net change in Cash and cash equivalents | (11.6) | (18.3) | |
Cash and cash equivalents, beginning of period | 304.4 | 252.3 | |
Cash and cash equivalents, end of period | $ 292.8 | $ 234.0 |
Amounts may not sum due to rounding. |
Segment Results (Unaudited) | |||
In millions | Three Months Ended September 30, | ||
2024 | 2023 | ||
Revenues | |||
Investor Communication Solutions | $ 1,015.6 | $ 1,028.6 | |
Global Technology and Operations | 407.2 | 402.4 | |
Total | $ 1,422.9 | $ 1,431.1 | |
Earnings before Income Taxes | |||
Investor Communication Solutions | $ 96.5 | $ 115.2 | |
Global Technology and Operations | 47.4 | 33.7 | |
Other | (43.7) | (36.0) | |
Total | $ 100.3 | $ 112.9 | |
Pre-tax margins: | |||
Investor Communication Solutions | 9.5 % | 11.2 % | |
Global Technology and Operations | 11.6 % | 8.4 % | |
Amortization of acquired intangibles and purchased intellectual property | |||
Investor Communication Solutions | $ 11.6 | $ 11.4 | |
Global Technology and Operations | 36.6 | 39.4 | |
Total | $ 48.2 | $ 50.8 |
Amounts may not sum due to rounding. |
Supplemental Reporting Detail - Additional Product Line Reporting (Unaudited) | |||||
In millions | Three Months Ended September 30, | ||||
2024 | 2023 | % | |||
Investor Communication Solutions | |||||
Regulatory | $ 189.9 | $ 179.4 | 6 % | ||
Data-driven fund solutions | 108.0 | 101.8 | 6 % | ||
Issuer | 30.9 | 28.5 | 8 % | ||
Customer communications | 164.2 | 159.1 | 3 % | ||
Total ICS Recurring revenues | 493.1 | 468.8 | 5 % | ||
Equity and other | 21.1 | 40.8 | (48 %) | ||
Mutual funds | 41.9 | 46.1 | (9 %) | ||
Total ICS Event-driven revenues | 63.0 | 86.9 | (28 %) | ||
Distribution revenues | 459.5 | 473.0 | (3 %) | ||
Total ICS Revenues | $ 1,015.6 | $ 1,028.6 | (1 %) | ||
Global Technology and Operations | |||||
Capital markets | $ 261.0 | $ 248.5 | 5 % | ||
Wealth and investment management | 146.2 | 153.9 | (5 %) | ||
Total GTO Recurring revenues | 407.2 | 402.4 | 1 % | ||
Total Revenues | $ 1,422.9 | $ 1,431.1 | (1 %) | ||
Revenues by Type | |||||
Recurring revenues | $ 900.3 | $ 871.2 | 3 % | ||
Event-driven revenues | 63.0 | 86.9 | (28 %) | ||
Distribution revenues | 459.5 | 473.0 | (3 %) | ||
Total Revenues | $ 1,422.9 | $ 1,431.1 | (1 %) |
Amounts may not sum due to rounding. |
Select Operating Metrics (Unaudited) | |||||
In millions | Three Months Ended September 30, | ||||
2024 | 2023 | Change | |||
Closed sales (a) | $ 57.5 | $ 47.6 | 21 % | ||
Record Growth (b) | |||||
Equity positions (Stock records) | 3 % | 8 % | |||
Mutual fund/ETF positions (Interim records) | 6 % | 3 % | |||
Internal Trade Growth (c) | 10 % | 15 % |
Amounts may not sum due to rounding. |
(a) Refer to the "Results of Operations" section of Broadridge's Form 10-Q for a description of Closed sales and its calculation. |
(b) Record Growth is comprised of stock record growth and interim record growth. Stock record growth (also referred to as "SRG" or "equity position growth") measures the estimated annual change in positions eligible for equity proxy materials. Interim record growth (also referred to as "IRG" or "mutual fund/ETF position growth") measures the estimated change in mutual fund and exchange traded fund positions eligible for interim communications. These metrics are calculated from equity proxy and mutual fund/ETF position data reported to Broadridge for the same issuers or funds in both the current and prior year periods. |
(c) Represents the estimated change in daily average trade volumes for clients whose contracts are linked to trade volumes and who were on Broadridge's trading platforms in both the current and prior year periods. |
Reconciliation of Non-GAAP to GAAP Measures (Unaudited) | |||
In millions, except per share amounts
| Three Months Ended September 30, | ||
2024 | 2023 | ||
Reconciliation of Adjusted Operating Income | |||
Operating income (GAAP) | $ 134.4 | $ 148.4 | |
Adjustments: | |||
Amortization of Acquired Intangibles and Purchased Intellectual Property | 48.2 | 50.8 | |
Acquisition and Integration Costs | 2.2 | — | |
Adjusted Operating income (Non-GAAP) | $ 184.8 | $ 199.3 | |
Operating income margin (GAAP) | 9.4 % | 10.4 % | |
Adjusted Operating income margin (Non-GAAP) | 13.0 % | 13.9 % | |
Reconciliation of Adjusted Net earnings | |||
Net earnings (GAAP) | $ 79.8 | $ 90.9 | |
Adjustments: | |||
Amortization of Acquired Intangibles and Purchased Intellectual Property | 48.2 | 50.8 | |
Acquisition and Integration Costs | 2.2 | — | |
Subtotal of adjustments | 50.3 | 50.8 | |
Tax impact of adjustments (a) | (11.9) | (12.2) | |
Adjusted Net earnings (Non-GAAP) | $ 118.3 | $ 129.6 | |
Reconciliation of Adjusted EPS | |||
Diluted earnings per share (GAAP) | $ 0.68 | $ 0.76 | |
Adjustments: | |||
Amortization of Acquired Intangibles and Purchased Intellectual Property | 0.41 | 0.43 | |
Acquisition and Integration Costs | 0.02 | — | |
Subtotal of adjustments | 0.43 | 0.43 | |
Tax impact of adjustments (a) | (0.10) | (0.10) | |
Adjusted earnings per share (Non-GAAP) | $ 1.00 | $ 1.09 |
(a) Calculated using the GAAP effective tax rate, adjusted to exclude |
Three Months Ended | |||
2024 | 2023 | ||
Reconciliation of Free cash flow | |||
Net cash flows from operating activities (GAAP) | $ (125.5) | $ (62.0) | |
Capital expenditures and Software purchases and capitalized internal use software | (32.1) | (14.4) | |
Free cash flow (Non-GAAP) | $ (157.6) | $ (76.4) |
Reconciliation of Recurring Revenue Growth Constant Currency | |||||||||
Three Months Ended September 30, 2024 | |||||||||
Investor Communication Solutions | Regulatory | Data- | Issuer | Customer | Total | ||||
Recurring revenue growth (GAAP) | 6 % | 6 % | 8 % | 3 % | 5 % | ||||
Impact of foreign currency exchange | 0 % | 0 % | 0 % | 0 % | 0 % | ||||
Recurring revenue growth constant currency (Non-GAAP) | 6 % | 6 % | 8 % | 3 % | 5 % |
Three Months Ended September 30, 2024 | |||||
Global Technology and Operations | Capital Markets | Wealth and | Total | ||
Recurring revenue growth (GAAP) | 5 % | (5 %) | 1 % | ||
Impact of foreign currency exchange | 0 % | 1 % | 0 % | ||
Recurring revenue growth constant currency (Non-GAAP) | 5 % | (4 %) | 2 % |
Three Months Ended | |
Consolidated | Total |
Recurring revenue growth (GAAP) | 3 % |
Impact of foreign currency exchange | 0 % |
Recurring revenue growth constant currency (Non-GAAP) | 4 % |
Amounts may not sum due to rounding. |
Fiscal Year 2025 Guidance Reconciliation of Non-GAAP to GAAP Measures Adjusted Earnings Per Share Growth and Adjusted Operating Income Margin (Unaudited)
| ||
FY25 Recurring revenue growth | ||
Impact of foreign currency exchange (a) | ( | |
Recurring revenue growth constant currency (Non-GAAP) | 6 - | |
FY25 Adjusted Operating income margin (b) | ||
Operating income margin % (GAAP) | ~ | |
Adjusted Operating income margin % (Non-GAAP) | ~ | |
FY25 Adjusted earnings per share growth rate (c) | ||
Diluted earnings per share (GAAP) | 20 - | |
Adjusted earnings per share (Non-GAAP) | 8 - |
(a) Based on forward rates as of September 2024. |
(b) Adjusted Operating income margin guidance (Non-GAAP) is adjusted to exclude the approximately |
(c) Adjusted earnings per share growth guidance (Non-GAAP) is adjusted to exclude the approximately |
View original content:https://www.prnewswire.com/news-releases/broadridge-reports-first-quarter-fiscal-2025-results-302296130.html
SOURCE Broadridge Financial Solutions, Inc.
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