DFIN Donnelley Financial Solutions

Justin Ritchie Investor Relations
Dan Leib President & Chief Executive Officer
Dave Gardella Executive Vice President & Chief Financial Officer
Tom Juhase Chief Operating Officer
Peter Heckmann D.A. Davidson
Charles Strauzer CJS Securities
Bill Warmington Wells Fargo
David Ridley-Lane Bank of America Merrill Lynch
Call transcript
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Welcome to the Donnelley Financial Solutions Fourth Quarter 2018 Results Conference Call. My name is Silvia, and I will be your operator for today’s call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. it Justin turn now will over Ritchie. to I

you may begin. Justin,

Justin Ritchie

call. and Silvia. fourth for conference can released be Good section of you, the our a thank earnings quarter morning report, our morning, results found Solutions Thank which Financial website everyone, you at copy we Donnelley joining XXXX Investors in This of the

we’ll to subject are forward-looking to that During statements refer this call, uncertainty.

to details earnings in refer however, information to now joined annual the appropriate statements ongoing release refer Please Dave Tom footnotes to Leib, complete and information. reconciliation XX-K a with will the performance. Juhase. the our call and further we will to evaluate Gardella Form informational and with non-GAAP for Dan. discussion, an way purposes for please on information. discuss For filings company’s for a company’s related non-GAAP over of provided Dan operations and is presentation useful only. morning turn They provides the our non-GAAP the by you Further, included GAAP report you I GAAP cautionary information press other supplementary release to of financial the the in and believe and this results are, We SEC. concerning I’m

Dan Leib

long-term balance core business The investment progress the our in you, the solutions Language allowing same our in shift, mix strategic of additional everyone. in good talent for of maintaining and while clients financial revenue while us XXXX success. meet flexibility. our the significant market increased purchase the furthered create mix. of morning, We evolve to Justin, of to our us share made against sale and continued our strengthen and priorities, eBrevia positions time Thank and was needs technology continuing sheet Solutions revenue a at transformation. The year strong to including markets,

and we non-GAAP $XXX.X reported $XXX net adjusted XXXX sales million of million. of financial Regarding performance, our EBITDA

also XXXX. debt reducing balance managed our from million year-end responsibly our total We sheet, by $XX.X

at years, representing a reduction our Over times. debt the of saw pace double-digit SaaS growth to throughout XXXX. XXXX revenue last XX.X% from our a we reduced in accelerated X in trend strong grew by two SaaS net in to Highlighting We net the XXXX. the we've which year growth, and in leverage sales expect this our times was continue X.X net $XXX million, offerings

in within by market markets review as was volatility created corporate a our During XX.X% in M&A companies letters, was no SEC the further beginning net the debt, issue On of the a limited which advice, fourth action as markets provide opting growth primarily consolidated transactions funds, market fourth XXXX. geopolitical capital overshadowed had new effect with and their conduct business company-wide than markets IPO, quarter. the driven and States the This activities. transaction into which as delay on SaaS net offset were were This filings, latter in coupled activity completion United November by volatility, in shutdown fourth negatively December trends and the impacted X.X% with quarter challenging offerings, in well capital December. broader were dampening open basis, to the market to deal of very late quarter fourth during uncertainties market exacerbated some the in by government interpretive normal by year-over-year the performance, our investment business. transactional half XX.X% a remainder our our in sales Despite stable quarter, up in X.X% an more for positive organic offerings, year-over-year, rebound down sales, a decline ability share global the transactions U.S.

in pipeline months, significantly been quarter markets January change activity last down in December. few Specifically, and completing debt can the government challenging be the the of of while Wrapping a transactions, no swift coming reopened the IPO it's over completed activity and the high-yield the we up environment and are was in to transaction since on XX deals pleased high look a forward to on more to returning see deals months. level global

of As driver led by and followed A our I in of XX.X% the revenue mentioned year-over-year ActiveDisclosure. this grew FundSuiteArc growth earlier, growth fourth by key and platform quarter SaaS Venue by was FundSuite the the data-intensive our XXXX. solution for implementation even beginning N-CEN and led of with We monthly April the form within complex N-PORT first filings successful more currently and Arc. clients in N-PORT SEC preparing submission are N-CEN

In the regulation. quarter an EU strong well growth in regulatory and N-CEN administrator in growth strong and and increase addition filings, driven a PRIIPs growth N-PORT reporting global as the fund saw the to related third-party as mutual in to by we

moving solutions. management accelerated SaaS our insurance consistent Specifically, accurate a traditional management and fund create of away allows additional prospectuses that content platform, by to their to online. software as operations continued Industry-leading their times clients and service asset costs streamline efficiently, reducing information content companies statements dynamic cost and expanded our of from and turnaround ArcPro usage managers our mutual to

workflows asset manual and away solution. We moving a our ArcReporting also strong from platform in with third-party saw growth our to enterprise managers solution administrators

of Global Venue in earlier Data year Global Room Data on receiving Data pipeline network. to ahead America's this comes need trend Room we Room are their solid M&A offering, a and industry efficiency the was year. as Shifting by award the Virtual see heels This our increase accelerates year recognition proud product the that Venue, expect of data continue our to We named software the room the lower to the the and cost. of

year. where reporting Now, we about helping ActiveDisclosure SEC's the in-line new are platform, let's clients requirements prepare this talk for taking effect XBRL

the technology Our accuracy. in review leads disclosure times and of average an XX% financial reduces by industry

regulatory largest with solutions to SEC. clients planned we from the technology a which is that As the our are and XXXX expertise for we the requirement, filer comes reporting delivering mandate, iXBRL complex being

the in of by supported we earlier with provided Investment strong in net increased a SaaS U.S. within growth, business, XXXX and year-over-year consistent saw Markets we X.X% comments Lastly, fund sales growth turnaround with our our driven growth Within and during was performance health core market back activity materials. of our business, the increased improved increased business, investment proxy half by distribution there the digital pre-enrollment of compliance print year. care

that achieved our continued Focusing long-term long-term execute and to priorities, now on us for operating in strategy the key we up fourth sets on success. milestones our several quarter

in responsibly and in invest remainder was exemplified purchase in of to eBrevia technology commitment Our of the the innovation December.

in a Our relationship began investment minority a agreement. with in with XXXX commercial eBrevia

managed as our eBrevia's platform Clients competition. solution, base, with in technology regulation compliance from we has and on help well go-to-market of With as benefiting Together November, the our deals. solutions aligns and risk highlights are end-to-end the DFIN's of global with a to strategy superior artificial to client separate nature which due increasingly risk-management the provide sales and additional identity, evolve business. plus already launched we eBrevia, team data our Most to integrates and applications room solutions. the AI-backed venue our intelligence-based our broader of vision diligence, diverse and risk intelligence are shift. eBrevia see and with our within extraction, platform from suite global DFIN and efficiency, best-in-class end importantly, excited market data secured aligns with compliance, global digital brand our data data compliance our with for to the Venue. In we clients clients. lightning-fast security solutions In providing aggregation, commitment integration to providing the industry,

unique unlock such the We learning and potential data of analytics technologies are committed to machine and needs. compliance as to clients' risk deploying

pleased business and quarter the our evolving and to pace towards diligent support and our business of We're services SaaS clients want shift managing for fourth effectively in With our turn through Our to overall digital financial Dave and performance details it steady more our evolution on a in I will evolution. revenue where, mix give the how and mix performance to world. and over reflects XXXX. Dave? technology-enabled when, XXXX work they guidance that, will this with remain to

Dave Gardella

Thank you, good everyone. Dan, morning and

in recap fourth impacts quarter a our significant discuss item comparability. we I'd performance, year-over-year like quarter that financial to the Before our

announced of Solutions third our earnings we last of the the Language sale in quarter completed the As call, on XXXX. we business

results the for the of quarter. includes entire Solutions quarter quarter fourth Language Our XXXX XXXX while fourth Solutions Language exclude

and quarter impacted this quarter our I negatively the million sale on sales approximately non-GAAP On comparison impacted call, changes X.X%. mentioned results. the let's quarter the impact decreased basis, exchange After financial sales recognition net a the negatively of our were our third XXXX of Keeping of the $X.X fourth million sale new inclusive of XXXX, our review from and quarter adjusted XX.X% revenue the by fourth organic adoption by Solutions. a $XXX.X stranded of decrease of $XX.X quarter, or for of As and rates EBITDA adjusting sales in mind, fourth net cost. for Language standard, the primarily in of due Solutions comparison reported consolidated to revenue $XX.X Language the million, million foreign net

expense that by combined volumes offset markets quarter our increased XX.X% fourth partially or X.X% basis investment higher-margin transaction Arc, earlier. markets, sales. or our quarter U.S. healthcare the was and Continued rebound a by revenue sale in net nearly U.S. compared within an Fourth margin in lower of mentioned continuing in quarter or than driven of of net Language for our decreased rebound in strong points $X.X products driven X.X% FundSuite in of quarter primarily services growth by $X.X $X.X mutual gross lower activity Non-GAAP Adjusted Products was XXXX, by XXXX. balance capital by SG&A transactional led sales million quarter quarter the fund the fourth quarter. XXXX, offerings. fourth to in million, Solutions, business sales Investment growth with than activity, million markets to between a SaaS of and the offerings, the million the Dan by due as including activity XXX lower offset fourth in SaaS in margin capital services the the the Markets decline lower $XX.X transactional mix net unfavorable

basis revenue, investments XX.X% quarter XXX priorities. or non-GAAP the XXXX, Language our sale of a in As and percentage Solutions associated of strategic due costs well of than primarily was fourth as the higher as stranded points to the SG&A

driven markets comparison $X.X million. from Solutions of our of quarter. EBITDA sale capital activity quarter U.S. Language transactional by primarily million, was margin Our a fourth decrease which fourth negatively activity earlier non-GAAP the the noted million U.S. the fourth the in quarter XXXX, the impacted markets the weak also negatively transactional and adjusted I by of capital as in impacted Weakness quarter EBITDA non-GAAP adjusted $XX.X $XX.X

X.X% markets, the to the quarter. organic by net SaaS of adjusted driven which XXXX, from basis, the and fourth of due for in this decreased in organic offerings of a driven adjusting investment the in for segment the activity, Net new U.S. net million were This sales fund sales was a U.S. by XXX along Non-GAAP recognition debt activity. fourth from Net in a $XX.X markets markets deals Turning primarily an due decrease capital with exchange of margin basis of net segment on strong sales sales impact segment revenue XX.X% XXXX, of weak net results, fourth up this organic basis, of quarter fourth points of volumes. last lower Non-GAAP basis, Solutions SaaS more fourth and part were from in of unfavorable on favorable disposition now decreased an to and XX% excluding of primarily our growth Solutions of offerings the rates fourth down by our our X.X% XX.X% IPOs increased the from the transactional million adjusted in increased expenses the international the of to business year. and and offset in technology new to and in Solutions. the the XXXX, revenue organic transactional offset mutual after significant the quarter. later quarter driven on Language standard, quarter XXXX, mix basis segment sales again in transactional year's in capital foreign reduction basis, to sale impact due partially in the by the On EBITDA margin of in for healthcare were standard, quarter decreased of rebound changes by of fourth sale of XX $XXX.X Language X.X%. decrease U.S. activity impact an segment EBITDA our On Language our recognition quarter sales XX.X%, a were last Asia. XX.X% quarter due continued growth in points

lower were excluding million $X.X with of unallocated flat million depreciation than Our costs XXXX. lower flow fourth related quarter expenditures, initiatives, $X.X less capital. EBITDA, along growth due in to software to and to quarter free generated fourth expenses capital $XX.X with and the million, XXXX, primarily increased working quarter corporate by our amortization non-GAAP the was Consolidated were development primarily related the XXXX, of fourth quarter capitalized cash cash

which rate, approximately at accounts X-month capital just plus inventory less XXXX as of increased working at XX.X% year controllable our end XX primarily define we a accounts Our from points to as XXXX, due accounts percent sales annualized to net year end basis trailing over XX% payable, balances. higher receivable receivable

million. net improvement revolver, area the million $XXX.X debt, and we ended $XXX.X net We quarter $XXX drawn targeting this our and with million XXXX. liquidity on We of in in are of had with of total available debt nothing

X.X leverage Lastly, plans were and an XXXX. levels a $X.X improvement end XXXX, of $XX.X under-funded, million funding our in XXXX, times down million year compared As post-retirement XX, at from our end times ratio pension was ago X.X year year to other December of net

that Before -- by three back in million quarter again it Solutions and of Language over sold I mention third revenue Language the The $X seeing With which the over SaaS impact summarized first XXXX. some We impacts The quarters me respectively. XXXX the EBITDA let and million $X.X sale related year-over-year of of color full $XX to QX, inclusive year. $X the impacts million year-over-year million in our $X.X comparisons of turn QX comparability in XXXX million morning's guidance press we're covered, and in sale to year-over-year Solutions we in QX, excited negatively stranded in Dan, QX, the Language of want The growth Solutions XXXX the QX. revenue to our to and million, costs in provide now for on are release. are year-over-year the about approximately this remain EBITDA million, approximately $X corresponding $XX $XX I impacts year million in solutions. QX the in

market Dan However, initial that transactional approach we're our described to given the state earlier, this of cautious a taking guidance.

receive but seeing our transactional as levels are current in activity of companies feedback ramping completion up the high is deal We from pipeline, SEC.

decrease in drive profits, last model. market, effectively in margin in results recognized for growth services we in achieve non-GAAP year. is on necessary the but these will revenue to come the organic transactional continuing our when expected three way and mitigate financial growth XXXX transactions first making transactions for with operating our are while solutions and quarter in To quarters. deal the modest enabled invest long-term to year, transactional that year-over-year the growth net we As the our a overall reminder, on the deals also plan to the sales technology the future expect in sales outlined We SaaS EBITDA complete. adjustments is our work do the less shortening to expectation being ultimately This net down to by our followed

be the the approximately million, million grow growth any sales. to more transactional $XXX SaaS of print-related XXXX range the of growth mid-point, X.X% year-over-year representing net and in organic continue net to projected Specifically, to at declines than and in $XXX as we mid-teens expect sales to in offsets total is

be our million We approximately the amortization adjusted to is million. $XXX expected in $XXX Depreciation range non-GAAP of EBITDA and to be expect million. to $XX

expect of million. interest expense approximately We $XX

XX $XX flow rate expenditures the $XX be is And lastly, million million the million. to XX%. the also range million with year of expected XX% we to weighted in free diluted range expect Our to to share full million, capital count year fully $XX in range of $XX tax cash non-GAAP to average shares. the We in full be of project approximately

we're million which with impact the seasonality, timing quarter transactions. Solutions capital negatively expect Regarding offset $X.X to due sales the range the excluding be respectively, $XXX net X% a Solutions, markets in sale is million, first and as should net completing delays total, of first and U.S. we Language approximately million the facing when of expecting be I by EBITDA down sales to have year-over-year comparison mentioned first quarter SaaS to and along quarter growth impact strong headwinds to to as transaction. in expected comparisons million year-over-year partially In difficult and $XXX of the $XX the Language

While down year the levels full flow versus we approximately deals perspective of a second expect to all the We'll our half deal of continue of the transactional to goes in see transactional on. the in cash be assumption proxy XXXX. normal that completions year in the pace of full sales driven half will our pickup cash the from for quarter. March, on of are the annual starting than seasonality cash net progressing how back a is activity more as user Also flow the the keep season and us transactional you generating updated X% net first by of year timing has our year peak in year

continue the transactional continued that growth the to our year. in Given the of certainly we SaaS half provides difficult of these and the to the additional fourth flow be invest in XX.X% even back summary, seeing we're seasonality quarter in face is headwind believe to success pleased that we cash more more heavily in that will year we're our In offerings with strategy year, proof sound. weighted to a expect of XXXX the compared for

transactions As be we've variable. will seen continue to

I'll that, relative drive non-GAAP achieving And the margin Dan. while adjusting our of and EBITDA strength end to our markets flow. it free to back long-term monitor needed growth turn cash also with closely adjusted in as will improvements we So our plans

Dan Leib

and We've Thank in a have activity see strong started encouraging to pipeline. you, the market Dave.

are return a market-sensitive effectively and open foundation the transact. will confident of shorter despite government, an on valuations an side which sentiment our normalize of solid provide transactional the business that While constructive investor we XXXX for is we year

unchanged. long-term remains our plan ahead, strategic Looking

current on can we're We expect the continued digital on operating protecting focus world progress our our complex the of and compliance in our reshaping the while our you enabling in strategy on company XXXX, specific environment. plan risk and culture. navigate driving mix position initiatives are change strategic our in priorities business, including a clients focused to outlined a with growth our In a market

M&A to the opportunities our to we we for our looking strategy execute strategic As explore continue will market evolution. accelerate

As We around feel be also into about proven which back good with deployment. for very will we've and disciplined the all we're have business line continue we And pace proceeding. let's open capital the to Q&A. we at what invested the that,


session. Thank question-and-answer you. Heckmann a Instructions] D.A. We’ll comes And now Davidson. be question our from first Peter [Operator conducting from

Peter Heckmann

Good questions. my morning, for taking Thanks gentlemen.

fine-tune On the about to fourth you your revenue you N-CEN/N-PORT the have forecast at from in did pull quarter about forward opportunity, of changes? generate able some And to that did been benefit? both that new starting those benefit talk can the revenue all rule

Dave Gardella

Yeah, is Pete this Dave.

for thanks of see from benefits some did the some the filings. So of to those question. start We

to I think come more XXXX. in

impacts the As to significant year-over-year XXXX, of and us growth see in April start some you hit more know, there. incremental should we

Peter Heckmann

Okay. small revenue fairly assume should And of couple million eBrevia, maybe? we then contribution,

Dave Gardella

think a fair Yes, I assumption.

Venue, as Venue. stand-alone and at and look with we with integrated integration then a we opportunity opportunity plans an with its As robust as Venue we see have offering

a not I So, comment huge its being relative of sense. makes think think overall, impact to I number your

much sales So, the because driven Venue some point hard know are I think integrated at of to how offering. gets it

of it. those So a to independent the I as we part about independent that's it and But then piece, fair as think I as in lanes, think it, we about of think think think way Venue. two

Tom Juhase

Yes. its Tom Juhase. Pete,

a it of So, couple eBrevia. clicks box

is see you'll as leveraging Venue the one the product a and channel first the repository. the sales So

those and go So into eBrevia same analyze documents then for where the documents can clients. Venue

using So it's going stream. Venue then the on risk the compliance AI in clicks it revenue be to And and box solutions technology. then and

compliance in own scale, as So on of to broader and will its a our efficiency start own terms eBrevia for product on stand solution its risk set [ph]. the

second that's ramp Venue So first ramp it inside the and on of then their thinking own. the how product we're the

Peter Heckmann

question, about -- updated But material your not it repurchases. Got shares from guidance appears get I'll outstanding you it. talk the level it. the queue. Can board in just any Got in thoughts on back And last contemplate that any regard? of then total does share

Dave Gardella

sure. Yes,

assumes around paying how as valuations, richer evaluate so we all deployment. Board, the guidance And been M&A our in said, than and the correct, have consider we've the overall But board, In various market a status we've leverage, a capital avenues context been certainly, avenues. it's we disciplined So all quo. as potential we we've active like, deploy capital of debt would and been aggressively. down been we've as very of

Peter Heckmann

you. Thank it. Got

Dave Gardella

you. Thank


Strauzer from Our following Securities. CJS comes question Charles from

Charles Strauzer

Hi, good morning.

Dave Gardella

morning. Good

Charles Strauzer

A questions. couple of

maybe can guidance. segments transactional on I the gave up underlying Thanks. you growth other of us I'll revenue the second. in on assumptions the follow some revenue kind X%, the and First know thoughts rate you the give up down but guidance? a

Dan Leib

It's a a can seasonality sure. of comments in Yes, maybe and weigh well. Dave only bit as then couple on

back our on in the Investor and offerings Day we've SaaS shared guidance within at guidance is the mix of the our business are on shift continuation and So SaaS success the of embedded had a regarding side. we May specifically --

as then seasonality the into in you Dave or So GIM? mentioned X%, continued and I -- of to anything on was Transactions that on of want the SaaS range I offerings. level in in anything know growth if down think mid-teens go don't

Dave Gardella

still only mid-teens. the SaaS the is I say in Charlie, our so noted Yes, revenue, would the expectations Dan thing is --

decline I look Markets, think Investment see that net kind predominantly continue based we the mid-single rates. products side, of the which would when expect at is to you print the at sales, digit in to

print-related. all a down Investment and year-over-year probably So, Markets little bit on again a basis

year, not on all basis. roll and you then numbers in in delta decline transactional having think the really accounts of year-over-year obviously the Solutions a Language I know, for up the when the you

Charles Strauzer

to discussion I assumption What EBITDA Great. the QX $XXX of should being $XXX think you we kind million, margin looking said. kind about just And at had of then there you million revenue the And you in about I had quarter headwinds given QX, the in kind of to use a think, XX% for EBITDA? margin last EBITDA that transactional. use number the good in that? Is on

Dave Gardella


question. good So,

a first right, know expect as you when year-over-year that of at there in we margin. out look EBITDA decline QX or of perspective. basis, from Language to then, you coming on capital high saw all, $X.X about where to is as an we Solutions, And million see QX, tends a in and the in decremental carry markets case transaction pretty incremental this So,

in come So, we margins expect would down we've line with revenue. what transactional historically seen kind to of on the in changes

Charles Strauzer

just done it. million, that a for And it guidance guys Got a I debt Any housekeeping thought, have $XX then paydown interest last the of the one expense little on there? years. thoughts given about would seems than you over and just the higher have

Dave Gardella

Yeah, timing things just perspective, of bit -- throughout mentioned seen a and XXXX. rates from come flow one up I so a of little cash we've the

at So a of the from typically of a the year-over-year of then perspective, cash delta timing there of and or a year, mentioned you we'll cash beginning be in year. the user user the and then beginning I flow -- the cash

know, couple You activity, cash with We'll of the in of you a user exacerbated. That's QX. comments be QX. transactional be EBITDA the in going to that more on and weak

half our flow more will cash in the back heavily of of All year. the weighted be

ballpark. million in think on that an is the So, basis, we $XX overall

Charles Strauzer

very you Thank much.

Dan Leib

you. Thank


Our following Wells Bill from comes Warmington Fargo. question from

Bill Warmington

Good morning, everyone.

Dan Leib

Bill. morning, Good

Dave Gardella

Bill. morning, Good

Bill Warmington

what's understand don't of to to wanted bunch revenue there I a want just So, puts know that's of and currency organic there. sure guidance, the the make I constant know make ask -- growth kind just I revenue I I the to currency help million are organic growth $XXX to for revenue constant just get takes, right Language embedded $XXX some terms adjusted eBrevia and just in coming on sure I to revenue XXXX Solutions recognition. them range? away I in and underlying like want that of FX, million the in going

Dan Leib

Yes the it's just under mid-point. -- a X.X% at

Bill Warmington

And check, I with eBrevia, not? go then SaaS or wanted it. that revenue to into the total Got does double

Dan Leib

be talk of talking rate mid-teens, rate, when eBrevia Yeah, we're the will. about your then that. so an to growth we top growth will the organic it Yes, and question in on

Bill Warmington

open would then the business actually see seemed it. been and of starting you pull happening? a in like are It there And for cross-selling you And the a about parts the little how it Got potentially were been along that could Has it long other doors would organization. with that has -- talk if actually applications lot eBrevia? of pull bit results? to going

Tom Juhase

this Tom. is Yes,

a we had partnership. -- we the So had

So we seeing were uptick at in ceding relationships of those definitely opportunities. some We're beginning early the with contract on. year coming this larger an

or channel or sales there sitting need contracts of see Brexit in non-standard corporations number they amend contract. looking of the exposure risk terms right the targets events go the in their a are So public they contracts, inside that characterize and pinpointing the in with regulatory contracts can like to GDPR or are where terms corporations to

that brought as sales And legal to the side do the risk large-scale and firms and they well themselves. contract they legal analytics. being as the the So for channel the us law can another things -- all side compliance are scale corporate then fact can firms themselves, these is the

see well. conceded -- own channels to now that news the and in sort think when standby our with sales we own and can the corporation have we a an we we ourselves stake And the look rather customers than the of we the confidence I in, solution the definitely uptick So product. to that have game us a skin

good been gate it's the -- out good obviously. of So

Bill Warmington

we off? million to is to as get act what going million the $XX should mostly ongoing guidance level item. to on a more it $XX year trail of housekeeping trying forward The I'm just sense one an last of $XX into million start going kind CapEx that increase And versus for think of -- about CapEx? disclosure? Does

Dan Leib

sure. Yes,

our and So little go But specifics. we and a project done. have Dave a heading is same below development. we're projects. we've our for we into guidance around have If do little -- in more a approve think projects a spending function range calls rather me processes doesn't bit we excuse the -- We Overall, isn't in capital mentioned that that in and expect, vast coming on that and of And our a little as the majority higher I it in go to return on that are do XXXX. technology then required as that. driving through of in was The prior is will XXXX don't down required the return, couple XXXX. go

it So and guidance embedded It an the of we allocation. very least increase a expect around to capital is bit XXXX. do disciplined in go in down

David Gardella

there. Yes, just addition one

we're alluded of making us probably there. in the and million Dan noted of our to range. a call high is XXXX that the also digitize for some a nice in would play it to back And then mid investments come increase portion Some to Dan platform we $XX there as productivity print to expect

Bill Warmington

and new So, it's be to a not Just build-out going right? of Rich's offices

Dan Leib

No no. year's. this That was covered within

Bill Warmington

Excellent. right. for Thank All very much listen. right, you All the Okay. update.

Dan Leib

you. Thank


from Our of following America Merrill from question Ridley-Lane David Bank comes Lynch.

David Ridley-Lane

volume side, versus companies? XXXX have a a in the more win the Thank you competition up Sure. Rooms you you're SaaS is recap space. rates your give publicly doing? the time in on the Did think doing How trend you loss of Wanted of the competition? Virtual to you sort DFIN did you On you. a traded ActiveDisclosure to pick against on an continued year up in seen good the is end how do favor? And share then Data basis, pick opportunity cooperates

Dan Leib

sure. Yes

let start there. me So

and and taker the the that And in and the of market you So three terms if main market, product that look really market had with in we at we progress all good to depending that products in information start year the products. get feel a overall share of upon being defining in can we Venue. relative software the our three

two, and when for the in the growth Room awards you we double-digit market there. if progress mentioned we has Data market in the out et look we're about different out at there, So year projecting what above the ActiveDisclosure, probably terms high couple those feel cetera. single-digit of and the you the grown publications good go Similarly, there's that you're range that. at of Having to market, in

in at XX% might XXX net all the is looking And so of that. including -- -- taking that. factors that and wins including were couple take on into some bankruptcies the delistings total One factors, due we and to to your or of account this the companies of account at coming competitive low and is higher we it so it's were with just win over different a account, platform, we numbers obvious and those wins year, net the the reason the mergers, very on really new net for think we're or XXs of we of I growth. is question logos look losses side ways. so basis when aren't happy into decrease, noncompetitive competition. But yet than a on When approximately to

they've tech the FundSuite right they It's we've XX% what European market us trending seen as Arc and the in And opportunity good certainly very good our good domestically Reporting coming on side, about as then and And do to about a encouraging over what in growth talked Arc well. the feel a accomplished Arc So there we've then there. made. think was and the way we available in N-CEN/N-PORT progress ArcPro before. had we've about is ActiveDisclosure the with growth really side on in year FundSuite continued feel both on

small obviously addition and higher earlier organically, with. it higher. happy pretty aggregate we includes piece of a want drive mix. we then we're So EDGAR which of the that And And to add will Online, both then want that the the drive the question to eBrevia XX.X% to to

fourth the in as total was percentage alone, or the think the of I so. quarter a XX% technology So

favorable seeing the place. as scale. margin shift perspective a get products we're from the It's obviously mix So take

about So it. we pretty feel good

David Ridley-Lane

continued then a are because that just in XXXX? drag when you the basically XXXX XXXX, that divestiture Thank XXXX, quarter you you. of the cost EBITDA giving just quick quarter be in that Dave, a one stranded there And say won't for of so just these of third second up that was EBITDA the XXXX, the trying contribution, I quarters Language that Solution show to of from quarters adjusted contribution are of understand, first will -- saying or you

Dave Gardella

the Yes, the addition net lost cost. stranded EBITDA the to in combined it's really

a it about year-over-year think delta. really So as

David Ridley-Lane

still to you then And have work you is already it. or around down do the stranded Got there worked costs XXXX? in for that

Dave Gardella

job I that. on we've pretty think good a Yes, done actually

we and it to took $X run-rate sale when initially think the we year, sale, on overall million basis, the After by sale $X the the looked a down we by at million to related EBITDA the year. that this relate impact EBITDA then consolidated impact to I estimated it our had last would $X negatively guidance about million.

-- some pretty executed shedding costs. on well we've the So those stranded of

David Ridley-Lane

Okay. you Thank much. very

Dave Gardella

you. Thank Yeah.


questions We at have time. this further no

Dan Leib


you look you reconnecting Thank thank we after very May. forward So in QX much. to and will


Thank This you, for today's conference. you ladies gentlemen. concludes participating. Thank and

disconnect. now may You