Broadridge Financial Solutions (BR) 6 Aug 24 2024 Q4 Earnings call transcript

On the heels of reporting strong financial results for the fourth quarter and fiscal year 2024, Broadridge Financial Solutions held an earnings call to discuss their performance and strategic initiatives. The call, led by CEO Tim Gokey and Interim CFO Ashima Ghei, highlighted the company's focus on digitalization, democratization, and simplification across various sectors, setting the stage for a promising future.

Financial Performance and Strategic Progress

Broadridge reported a 39% growth in closed sales to $342 million, marking both a record in sales and sales growth. This robust performance has positioned the company for another year of sustainable growth, with a record backlog of sales already closed and a strong pipeline in place. Adjusted EPS rose 10% on 6% organic growth in recurring revenues, underscoring the company's strength in a stable to improving market.

Governance Business

In the governance sector, Broadridge has made significant strides in driving the democratization and digitization of governance. The company's ICS business reported 5% recurring revenue growth, driven by data-driven fund solutions and digital communications. Equity position growth, including managed accounts, has been a key area of focus, with 6% growth for the year. The tailored shareholder report solution, replacing traditional annual and semi-annual reports, has been a game-changer, enabling funds to communicate more effectively with their shareholders while managing higher demand for individualized reports.

Capital Markets

Broadridge's Capital Markets franchise has seen strong progress in simplifying and innovating across the trade life cycle. The division reported 8% growth in revenue, driven by strong growth in BTCS and the onboarding of new global post-trade clients. The company's state-of-the-art global SaaS platform is a testament to its commitment to delivering best-in-class order management, execution, scale, and reliability.

Wealth and Investment Management

The wealth and investment management sector has seen a 7% increase in revenues, driven by the go-live of the UBS contract and the acquisition of Kyndryl SIS business in Canada. This strategic acquisition is expected to accelerate Broadridge's ability to bring new capabilities, including wealth solutions, to the Canadian market.

Looking Ahead

Broadridge's guidance for fiscal year 2025 includes 5% to 7% organic recurring revenue growth and 8% to 12% adjusted EPS growth. The company's strong performance and strategic initiatives position it well for another year of sustainable growth, backed by a record backlog of sales and a strong pipeline.

Conclusion

The earnings call highlighted Broadridge Financial Solutions' strong financial performance and strategic initiatives, underscoring its position as a leader in the digitalization and democratization of governance, simplification and innovation in capital markets, and modernization in wealth management. With a focus on driving value for clients and shareholders, Broadridge is poised for continued success in the years ahead.