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Broadridge CEO on what the future of fintech looks like

Broadridge CEO Tim Gokey joins Yahoo Finance Live to weigh in on the company’s investor day goals, empowering investors during the pandemic and break down how Airbnb and DoorDash can be successful in the longterm.

Video Transcript

JULIE HYMAN: We have seen, of course, an acceleration of a lot of existing technological trends this year. That is true for the financial-services industry and fintech as well.

And the CEO of Broadridge is joining us now. That is Tim Gokey. Tim, we spoke earlier in the year about you all transitioning a lot of shareholder meetings, investor presentations online for your clients, and I imagine that things have just accelerated since then. You gave an investor update yesterday. Talk to me about where you are in terms of demand and how the year has gone during this pandemic.

TIM GOKEY: Yeah, that's right, Julie. It has been quite a year. And as I said to investors yesterday, you know, this is a real moment, but the way that it is taking the trends that you talked about and really making them happen even faster is making a big difference for us-- for us all. And so that's why it's such a good time to talk to people about what we see going forward.

And what we're seeing is an acceleration of trends around people needing to get onto next-generation technology. There's so much they need to do around the resilience of the technology. It's really increasing the logic for the kinds of mutualized or industry solutions for infrastructure that we provide. And, of course, it's accelerating everything around digitization, whether that's things like corporate governance going online or those critical communications that people receive, receiving those digitally instead of by paper.

BRIAN SOZZI: Tim, so your investor day was yesterday. You put out some really solid three-year goals here. You know, how do you reach the top end of your earnings guidance? What, it was about-- I think the range was up 8% to up 12%. How do you hit that 12% or even surpass it?

TIM GOKEY: Yeah, well thank you. And we are proud as a company that we are talking about not just guidance for this year but really objectives for the next three years. This is the-- it was our fourth investor day. Each of the past two three-year cycles, we have hit those objectives that we put out there. So we really try to be-- we try to invest and make sure that we are ready to do that.

In terms of what would allow us to get to the top end of those goals is really about, you know, a big backlog of clients, almost $350 million-- which is almost more than 10% of our revenue-- to onboard. And so the speed of that onboarding is certainly one of the big factors.

And then these objectives go out to 2023, so what's happening with the economy, you know, at that time will certainly be relevant also.

MYLES UDLAND: You know, Tim, in thinking about your business, obviously there's been challenges in enabling the kinds of communications with shareholders that management teams would like to do, but I'm curious about the nature of those communications as well. We talk a lot on this program about ESG, and there's a new phase of shareholder activism. I'm just curious from your vantage point how your technology is maybe enabling those conversations to happen more easily, perhaps, than they could have in a prior era.

TIM GOKEY: Yeah, absolutely. You know, we see the future as making these communications much more interactive, much more action oriented so that when you see the communication, you can drill down and you can communicate back to the organization that's trying to reach you. And we really think that's the future. We have that in demonstration with clients.

The other big thing that's going on in our industry is really trying to simplify the communications. In many cases, some of the very important disclosures-- and, of course, there's so many-- such an increase in retail trading and so many new people coming into it, and there are very important disclosures that people need to receive. But we're working with regulators and the industry to make those as simple as possible so that they can be easily understood and easily digested.

BRIAN SOZZI: Tim, as a corporate-governance guy, that's really-- that business is bread and butter to Broadridge. What's your take on IPO-- on, really, the strong reception to the IPOs we've seen this week from a DoorDash, an Airbnb? Both of them have consolidated power in their cofounders. Do you think that that's the right move, and how could these companies be successful public companies moving forward?

TIM GOKEY: You know, I think that the-- you know, the biggest takeaway for me when you look at both of these, raising price before they went out and then on the day having a huge jump. I think it just shows the incredible-- irrespective of the governance aspect of it, the incredible engagement by investors right now. And certainly some of that may be froth in today's market, but a lot of it just signals sort of a new generation of investors getting involved in the market. And, you know, that core involvement we think is a very good thing.

JULIE HYMAN: Hopefully it'll turn out well as an investment for those people as well. Tim Gokey, Broadridge CEO, thanks so much for being with us. Tim, good to see you.

TIM GOKEY: Thank you very much. Appreciate being here.

JULIE HYMAN: Thank you.