Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q1 2025 Earnings Presentation
30 slides from Broadridge Financial Solutions's earnings presentation, Nov 5, 2024
Slide 1: Powering and transforming financial markets
Powering and transforming financial markets Earnings Conference Call Fiscal First Quarter 2025 November 5, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and other written or oral statements made from time to time by representatives of Broadridge Financial Solutions, Inc. ("Broadridge" or the "Company") contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act
Slide 3: Use of Non-GAAP financial measures, KPIs and foreign exchange rates
Use of Non-GAAP financial measures, KPIs and foreign exchange rates Use of Non-GAAP Financial Measures This presentation includes certain Non-GAAP financial measures including Adjusted Operating income, Adjusted Operating income margin, Adjusted Net earnings, Adjusted earnings per share (“EPS”), Fre
Slide 4: Key messages
Key messages Broadridge delivered solid Q1’25 results, including 4% Recurring revenue growth constant currency, 1 $1.00 of Adjusted EPS and record Closed sales Broadridge is executing on its growth strategy across Governance, Capital Markets, and Wealth & 2 Investment Management We are strengthening
Slide 5: Broadridge is executing across Governance, Capital Markets, and Wealth & Investment Management
Broadridge is executing across Governance, Capital Markets, and Wealth & Investment Management Governance Q1’25 Highlights • ICS Recurring revenue growth driven by strength in Data-Driven Fund and Issuer Solutions $493M +5% YoY • Equity and fund position growth remained healthy and in-line with our
Slide 6: Broadridge remains well-positioned for long-term growth
Broadridge remains well-positioned for long-term growth Broadridge delivered solid first quarter financial results 1 We are executing on our long-term growth plan, including enabling investor participation, driving 2 digitization, delivering innovation, and adapting to regulatory change Our focus on
Slide 7: Summary financial results
Summary financial results FIRST QUARTER $ in millions, except per share data 2025 2024 Inc./(Dec.) Recurring revenues $900 $871 3% Constant currency growth (Non-GAAP) 4% Total revenues 1,423 1,431 (1%) Operating income 134 148 (9%) Adjusted Operating income (Non-GAAP) 185 199 (7%) Adjusted Operating
Slide 8: First quarter 2025 Recurring revenues
First quarter 2025 Recurring revenues $ in millions; growth in constant currency Q1 RECURRING REVENUES FISCAL YEAR RECURRING REVENUE GROWTH Acquisitions Organic growth +4% 16% $900 7% 10% 10% 9% 2% 6% 6-8% 6% 9% 9% 8% 6% 4% Q1'24 Q1'25 FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 Guidance Information about o
Slide 9: First quarter 2025 segment Recurring revenues
First quarter 2025 segment Recurring revenues $ in millions; growth in constant currency ICS RECURRING REVENUES GTO RECURRING REVENUES +5% +2% $493 $407 Regulatory $190 6% Capital $261 5% Markets Data-Driven 6% Fund Solutions $108 Issuer $31 8% Customer Wealth & $164 3% Investment $146 (4%) Comms. M
Slide 10: Key volume drivers: position and trade growth
Key volume drivers: position and trade growth EQUITY & MUTUAL FUND/ETF POSITION GROWTH FY’23 FY’24 10Y Avg. 1,2 9% 6% 10% 2 8% 3% 7% ITG 3 4% 13% 7% 8% 7% 6% 5% 6% 6% 3% 3% 5% (1%) Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 INTERNAL TRADE 15% 12% 11% 15% 10% GROWTH 1. Q1’24 equity position growth represented 6%
Slide 11: First quarter 2025 Recurring revenue growth drivers
First quarter 2025 Recurring revenue growth drivers $ in millions. Pts contribution to growth RECURRING REVENUE GROWTH CONSTANT CURRENCY WAS 4% Organic Growth: 3 pts 6 pts 1 pts 0 pts 4% 3% (0) pts (4) pts $900 $871 Q1'24 Recurring Closed Sales Client Losses Internal Growth Acquisitions Q1'25 Rec. R
Slide 12: First quarter 2025 Total revenue growth drivers
First quarter 2025 Total revenue growth drivers $ in millions. Pts contribution to growth FIRST QUARTER 2025 TOTAL REVENUE GROWTH DRIVERS 2 pts (1%) (2 pts) (1 pt) (0 pt) $1,431 $1,423 Q1'24 Total Revenues Recurring Event-Driven Distribution FX Q1'25 Total Revenues QUARTERLY EVENT-DRIVEN REVENUES $8
Slide 13: Operating income margin and Adjusted Operating income margin
Operating income margin and Adjusted Operating income margin Q1’25 OPERATING INCOME FISCAL YEAR OPERATING INCOME OPERATING 10.4% 9.4% 13.8% 13.6% 13.3% 15.4% 15.6% INCOME MARGIN 20.0% ~20.0% 19.8% +20 +110 bps bps ADJUSTED 13.9% 18.7% OPERATING +60 INCOME 13.0% MARGIN 18.1% bps (NON- +60 GAAP) 17.5%
Slide 14: Free cash flow
Free cash flow $ in millions Q1’25 FREE CASH FLOW 1 FISCAL YEAR FREE CASH FLOW CONVERSION 2 Q1'24 Q1'25 102% 95% – 90% 105% 85% 84% ($76) 48% ($158) FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 (E) 1. Information about our use of Non-GAAP measures and reconciliations to GAAP measures may be found on slides 2
Slide 15: Closed sales
Closed sales $ in millions CLOSED SALES $342 $290 – $330 $280 $57 $48 $246 $231 $224 Q1'24 Q1'25 FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 Guidance 14
Slide 16: Capital allocation
Capital allocation $ in millions, except per share data SELECT USES OF CASH Q1’25 TOTAL CAPITAL RETURNS4 11/1/24 Acquisition of SIS FY’25 YTD Dividends Paid $781 CapEx and Software1 $32 Client Platform $312 $6 $269 $248 $253 Investments 2 $93 M&A 3 $8 $193 FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 (E) 6 D
Slide 17: Fiscal year 2025 guidance
Fiscal year 2025 guidance FY’25 GUIDANCE UPDATES Recurring revenue growth constant currency 6 – 8% Previously 5 – 7% (Non-GAAP) Adjusted Operating income margin ~20% No Change (Non-GAAP) Adjusted earnings per share growth 8 – 12% No Change (Non-GAAP) Closed sales $290 – $330M No Change 16
Slide 18: Appendix
Appendix Broadridge:
Slide 19: Supplemental reporting detail - product line reporting
Supplemental reporting detail ‒ product line reporting (Unaudited) 2023 2024 2025 Q1% Dollars in millions FY Q1 Q2 Q3 Q4 FY Q1 Growth Investor Communication Solutions ("ICS") Regulatory $1,141 $179 $195 $345 $477 $1,196 $190 6% Data-driven fund solutions 404 102 105 106 122 435 108 6% Issuer 243 29
Slide 20: FY'24 - FY'26 long-term growth objectives
FY’24 – FY’26 long-term growth objectives FY’24 – FY’26 (CAGR) Organic Recurring revenue growth 5-8% Recurring revenue growth constant currency 7-9% (Non-GAAP) Adjusted Operating income margin expansion (bps/year) 50+ (Non-GAAP) Adjusted earnings per share growth 8-12% (Non-GAAP) Note: AOI margin ex
Slide 21: Explanation of non-GAAP measures and reconciliation of GAAP to non-GAAP measures
Explanation of non-GAAP measures and reconciliation of GAAP to non- GAAP measures
Slide 22: Non-GAAP measures
Non-GAAP measures Explanation and Reconciliation of the Company’s Use of Non-GAAP Financial Measures The Company’s results in this presentation are presented in accordance with U.S. generally accepted accounting principles ("GAAP") except where otherwise noted. In certain circumstances, results have
Slide 23: Non-GAAP measures
Non-GAAP measures We exclude Acquisition and Integration Costs, Restructuring and Other Related Costs, Litigation Settlement Charges, Russia-Related Exit Costs, Real Estate Realignment and Covid-19 Related Expenses, Investment Gains, the Software Charge, Gain on Acquisition-Related Financial Instrum
Slide 24: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended September 30, 2024 Data-Driven Fund Investor Communication Solutions Regulatory Issuer Customer Comms. Total Solutions Recurring revenue growth (GAAP) 6% 6% 8% 3% 5% Impact of foreign currency exchange 0% 0% 0% 0% 0% Recurrin
Slide 25: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Fiscal Year Ended June 30, 2024 Consolidated Recurring revenue growth (GAAP) 6% Impact of foreign currency exchange 0% Recurring revenue growth constant currency (Non-GAAP) 6% Fiscal Year Ended June 30, 2023 Consolidated Recurring revenue growt
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended Sept. 30, Fiscal Year Ended June 30, Dollars in millions 2024 2023 2024 2023 2022 2021 2020 Operating income (GAAP) $134.4 $148.4 $1,017.1 $936.4 $759.9 $678.7 $624.9 Adjustments: Amortization of Acquired Intangibles and 48.2
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended September 30, Fiscal Year Ended June 30, Dollars in millions 2024 2023 2024 2023 2022 2021 2020 Net cash flows from operating activities (GAAP) $(125.5) $(62.0) $1,056.2 $823.3 $443.5 $640.1 $598.2 Capital expenditures and So
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended Sept. 30, Dollars in millions, except per share amounts 2024 2023 Diluted earnings per share (GAAP) $0.68 $0.76 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 0.41 0.43 Acquisition and I
Slide 29: Reconciliation of GAAP to Non-GAAP measures: Fiscal year 2025 guidance
Reconciliation of GAAP to Non-GAAP measures: Fiscal year 2025 guidance (Unaudited) Fiscal Year 2025 FY25 Recurring revenue growth Impact of foreign currency exchange (a) (0.5%) - 0% Recurring revenue growth constant currency (Non-GAAP) 6 - 8% FY25 Adjusted Operating income margin (b) Operating incom
Slide 30: Broadridge Fiscal First Quarter 2025 Earnings Conference Call
Broadridge Fiscal First Quarter 2025 Earnings Conference Call Contacts Replay Options W. Edings Thibault Online replay available at broadridge-ir.com Sean Silva Telephone replay available through November 12, 2024 broadridgeir@broadridge.com Domestic Dial-In: 1-877-344-7529 Live Call Information Dat
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