Broadridge Reports 9% Increase in Q2 Revenue

Broadridge Reports 9% Increase in Q2 Revenue

Time Stamp: February 1, 2024 8:35 AM
Broadridge Reports 9% Increase in Q2 Revenue PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Broadridge Financial Solutions, Inc. (NYSE:BR) has
unveiled its second-quarter fiscal 2024 results, showcasing an increase of 9%
in total revenue to reach $1,405 million.

Broadridge’s recurring revenues, a key metric for
the company, witnessed a significant uptick, totaling $899 million, marking a
7% increase year-over-year. This growth, which translates to a 6% surge in
constant currency, reflects the company’s resilience and adaptability in
navigating market dynamics.

Tim Gokey, the CEO of Broadridge, mentioned: “We are reaffirming our 2024 guidance including 6-9% recurring revenue
growth constant currency, 8-12% Adjusted EPS growth, and record Closed sales of
$280-320 million, as a result. We are off to a strong start in delivering on
our three-year growth objectives, including annualized growth of 7-9% for
Recurring revenues and 8-12% for Adjusted EPS.”

The Investor Communication Solutions (ICS) segment
witnessed total revenues of $1,000 million, reflecting a 9% increase, driven by
higher recurring revenues and event-driven revenues. Besides that, the Global Technology and Operations
(GTO) segment reported recurring revenues of $405 million, marking a 9%
increase, primarily propelled by net new business and internal growth.

Broadridge ignited its fiscal year 2024 with an impressive first quarter, marked by notable growth in recurring revenues and
adjusted earnings per share (EPS). Reporting an 8% surge in total income, which
now stands at $871 million, and a remarkable 30% surge in adjusted EPS,
reaching $1.09, Broadridge’s fiscal performance sets a promising tone for the
year ahead.

Consistent Growth in Revenues and EPS

During this period, Broadridge posted a notable
increase in recurring revenues and a substantial rise in total revenues, which
have surged by 12% to $1,431 million. This growth was credited to organic
expansions within their Global Technology and Operations and Investor
Communication Solutions segments.

The company’s strategic focus on organic growth
yielded positive results, with closed sales soaring from $19 million to $48
million. Additionally, a strategic capital allocation has seen Broadridge
repurchase $150 million of its shares, indicating confidence in its future
trajectory.

Additionally, the firm’s operating income surged by
70% to $148 million, with the operating income margin improving notably from
6.8% to 10.4%. This reflected a more efficient revenue conversion into profit.

Recently, Broadridge introduced OpsGPT, a solution leveraging Generative AI to revolutionize post-trade operations. The company’s commitment to AI innovation extends beyond OpsGPT. Last year, Broadridge launched BondGPT, an AI-powered application that streamlines bond selection within the US corporate bond market.

Broadridge Financial Solutions, Inc. (NYSE:BR) has
unveiled its second-quarter fiscal 2024 results, showcasing an increase of 9%
in total revenue to reach $1,405 million.

Broadridge’s recurring revenues, a key metric for
the company, witnessed a significant uptick, totaling $899 million, marking a
7% increase year-over-year. This growth, which translates to a 6% surge in
constant currency, reflects the company’s resilience and adaptability in
navigating market dynamics.

Tim Gokey, the CEO of Broadridge, mentioned: “We are reaffirming our 2024 guidance including 6-9% recurring revenue
growth constant currency, 8-12% Adjusted EPS growth, and record Closed sales of
$280-320 million, as a result. We are off to a strong start in delivering on
our three-year growth objectives, including annualized growth of 7-9% for
Recurring revenues and 8-12% for Adjusted EPS.”

The Investor Communication Solutions (ICS) segment
witnessed total revenues of $1,000 million, reflecting a 9% increase, driven by
higher recurring revenues and event-driven revenues. Besides that, the Global Technology and Operations
(GTO) segment reported recurring revenues of $405 million, marking a 9%
increase, primarily propelled by net new business and internal growth.

Broadridge ignited its fiscal year 2024 with an impressive first quarter, marked by notable growth in recurring revenues and
adjusted earnings per share (EPS). Reporting an 8% surge in total income, which
now stands at $871 million, and a remarkable 30% surge in adjusted EPS,
reaching $1.09, Broadridge’s fiscal performance sets a promising tone for the
year ahead.

Consistent Growth in Revenues and EPS

During this period, Broadridge posted a notable
increase in recurring revenues and a substantial rise in total revenues, which
have surged by 12% to $1,431 million. This growth was credited to organic
expansions within their Global Technology and Operations and Investor
Communication Solutions segments.

The company’s strategic focus on organic growth
yielded positive results, with closed sales soaring from $19 million to $48
million. Additionally, a strategic capital allocation has seen Broadridge
repurchase $150 million of its shares, indicating confidence in its future
trajectory.

Additionally, the firm’s operating income surged by
70% to $148 million, with the operating income margin improving notably from
6.8% to 10.4%. This reflected a more efficient revenue conversion into profit.

Recently, Broadridge introduced OpsGPT, a solution leveraging Generative AI to revolutionize post-trade operations. The company’s commitment to AI innovation extends beyond OpsGPT. Last year, Broadridge launched BondGPT, an AI-powered application that streamlines bond selection within the US corporate bond market.

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