Donnelley Financial Solutions reports Q2 adjusted EPS $1.66, consensus $1.40

Reports Q2 revenue $242.7M, consensus $244.62M. “We are pleased with the results for Q2, as we continue to make progress in our strategic transformation by delivering an improved sales mix, an increase in Adjusted EBITDA, and Adjusted EBITDA margin expansion compared to Q2 of 2023. We experienced continued momentum in the growth of our software solutions net sales, which increased 14.4% on an organic basis versus the second quarter of 2023, driven by the performance of Venue, our virtual dataroom product, which recorded sales growth of approximately 38%…,” said CEO Daniel Leib. “…We delivered $87.2M of Adjusted EBITDA, an increase of $12.9M, or 17.4%, year-over-year, with the corresponding Adjusted EBITDA margin expanding to 35.9%, approximately 520 basis points higher than last year’s Q2…As we enter the second half of the year, we remain focused on investing to drive profitable, recurring revenue growth, including realizing opportunities from the Tailored Shareholder Reports regulation, which became mandatory in late July…In addition to this opportunity, the combination of our leading compliance software platform and deep domain service expertise positions DFIN well to capture recurring revenue opportunities from current and future regulations”.