Donnelley Financial Solutions Inc (DFIN) Q3 2023 Earnings: Software Solutions Sales Hit Record High
DFIN reported record third-quarter software solutions net sales of $73.2 million, a 5.3% increase from Q3 2022.
Third-quarter net earnings were $18.1 million, slightly lower than the $19.2 million reported in the same period last year.
Adjusted EBITDA for Q3 2023 was $49.4 million, up 9.1% from Q3 2022.
The company repurchased 310,365 shares for $14.8 million during the third quarter.
On November 1, 2023, Donnelley Financial Solutions Inc (NYSE:DFIN) released its financial results for the third quarter of 2023. The company reported record third-quarter software solutions net sales of $73.2 million, marking a 5.3% increase from the third quarter of 2022. Software solutions net sales accounted for 40.7% of total net sales, up from 36.8% in the same period last year.
Financial Highlights
DFIN's third-quarter net earnings were $18.1 million, or $0.60 per diluted share, compared to $19.2 million, or $0.62 per diluted share, in the third quarter of 2022. The company's Adjusted EBITDA for the third quarter was $49.4 million, up $4.1 million, or 9.1%, from the third quarter of 2022. The Adjusted EBITDA margin for the quarter was 27.4%, up approximately 340 basis points from the same period last year.
During the third quarter, DFIN repurchased 310,365 shares for $14.8 million at an average price of $47.77 per share. As of September 30, 2023, the remaining share repurchase authorization was $106.3 million.
Company Performance and Future Outlook
DFIN's President and CEO, Daniel N. Leib, expressed satisfaction with the company's consolidated results for the third quarter. He stated,
We are pleased with our consolidated results for the third quarter, as we continued to execute our strategy to expand the adoption of our recurring regulatory and compliance offerings to drive more predictable performance."
Leib also highlighted the company's focus on investing to drive profitable, recurring revenue growth, including capturing opportunities from recurring compliance use cases such as Tailored Shareholder Reports. He concluded by stating that DFIN's leading compliance software platform and deep domain service expertise position the company well to capture recurring revenue opportunities from current and future regulations.
Financial Statements Summary
As of September 30, 2023, DFIN's total assets were $839.3 million, up from $828.3 million as of December 31, 2022. The company's total liabilities were $454.0 million, down from $498.8 million at the end of 2022. DFIN's net earnings for the third quarter of 2023 were $18.1 million, compared to $19.2 million in the third quarter of 2022.
For the third quarter of 2023, Adjusted EBITDA was $49.4 million, an increase of $4.1 million compared to the third quarter of 2022. Adjusted EBITDA margin was 27.4%, an increase of approximately 340 basis points compared to the third quarter of 2022.
Explore the complete 8-K earnings release (here) from Donnelley Financial Solutions Inc for further details.
This article first appeared on GuruFocus.
