DFIN Donnelley Financial Solutions

Justin Ritchie SVP, IR
Daniel Leib President, CEO and Director
David Gardella EVP and CFO
Charlie Strauzer CJS
Alexis Huseby Davidson & Company
Raj Sharma Donnelly Financial
Call transcript
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Ladies and gentlemen, thank you for standing by, and welcome to the Donnelley Financial Solutions First Quarter Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Justin Ritchie, Head of Investor Relations. Sir the floor is yours

Justin Ritchie

Thank you. thank results joining conference and first Financial everyone, XXXX quarter call. morning, you Donnelley for Solutions Good

This morning, section we of at which released our earnings be in report, found the Investors of website can our a copy

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

the included report other in For report our discussion, statements on to on release and earnings SEC. Form the refer complete our with and quarterly Form annual filings XX-Q, a cautionary XX-K, please in further detailed

will release performance. evaluate provides GAAP informational however, supplementary for we operations, financial only. of and the believe way financial financial this presentation We They Further, appropriate information ongoing for discuss information. and earnings you to provided for related non-GAAP of are, information. the non-GAAP company's you financial and reconciliations tables Please company's an purposes non-GAAP information information GAAP is useful the refer to to with concerning

Dave this Gardella, joined I'm and Tom morning Turner Kami Dan by Leib, Juhase.

turn now to the over will I Dan. call

Daniel Leib

Thank everyone. you, morning, good and Justin,

we the of safe pandemic of From staying the you not have your business that day and couple DFIN, the on way of hope the anticipated the have in February over we last are potential impacts COVID-XX, at worked we months. we have each calls healthy. families our broader Well, and and impact us noted terms could would all lived of

focus, through both and challenges them to continue we and I'd employees navigate of quickly clients. ongoing the company, I'm to and thank of safe, the a meeting the dedication changing to the proud as also our needs the employees environment like for demonstrated to they've that professionally. say to keep encourage while maintain all same adapted we pandemic, rapidly personally to our as our the resilience

in position. which improvement up a quarter software improve quarter first As improving our resulting achieved it $XX sheet reduced solutions and costs, of cash reflect points strong of to year-over-year adjusted manage We and first in margin, to are by our results, record XXXX. performance, and pleased revenue liquidity the compared ability to debt first conversion, quarter EBITDA relates mix, million, XXX our basis our we with balance business

this performance financial net available negative the from times $XXX liquidity discipline prudent global coupled despite Pacific The and This of results of safety million. year, our impact focused continuity the and Asia with activated X.X in virus just health plan. region, the as our clients. employees our achieved leverage resulted pandemic. of plan the operations in these business and the in Early We over is we impact on

manage we situation. In we continuity, upon a this ensuring as plan, the global to team supply a impacts on the and addition that established opportunities regular basis functional activating continues understand to to cross unprecedented meet through

varied. to our world manufacturing, our software engagement, Our empathy is supply has organization with the safety, a from commitment a throughout our focus and the continuity, been employee development business clients and on With operations continued and candor. offering impact and to on diverse and health communicating

this Organization. attendance production and least at monitoring, unable protect could and group to Shut down World shifts, home, mid-March. to implemented and practices implementing our protocols, in those disinfecting for the models service Health and sales, from travel tested as work hosting rotation work that help took distributed all event. guidelines Our mitigate is that the long conference temperature all employees, of between home distancing within CDC great in from work We a and as the robust and to care from manufacturing conducting and

support continue our partners, business maintenance, well development. we and teams to larger performing have were unaffected With solutions software strongly. increasingly and distributed been based Our perform of and new at cloud feature part development

deemed are have clients were in and time in which company during facilities, capital our compliance of businesses us, for fully markets Our as investment particularly each been operational the manufacturing a peaks. year busy essential,

teamwork, The to things in our while overall and environment through incredible certainly safe brute innovation, is a not without the creativity, serve challenges. seeing clients, are all Yet, force doing done get we things manner. some

While actions evolve not clients in concert service in with unwavering our our changes to commitment uninterrupted to safety, and our the to health, continue has situation, providing changed.

the consistent the reporting the segmentation will cover first are new results. how structure operating detail quarter, a and first we of segment are his during with Effective more new our quarter in managing under results business. now we review the with Dave

our to revenue provide and better excited you cash the of transparency shifting line enabled recurring tech delivering are higher services, about driving our toward software more of execution track top of and organic and resulting margins the We growth, strategy base flows. the this a mix revenue

Our deliver plan our XXXX. revenue from the is year solutions to XX% of software by

solutions. the in Well have and total In our of delivered on derived are software was We revenue solutions. XX% revenue we path XXXX, seen of success. XXXX, from software XX% from our

this revenue positive XXXX, Given be shift, is that organic growth. business posting our by mix year-end should consolidated the expectation the

market explore importance historically. to plan financial and choice. addition highlight mix the our assured, on Times regulations strategy being same continue the and organic capital have to of our with this that as discipline. based we allocation operate will shift to that accelerate around we opportunities provider by the discipline in driven is of the like financial valuation While Rest our asset we position in via clients M&A, the

the the we in Regarding first takes preparation. our XXXX, effect to regulation quarter of continue refine XXEX and plan that

printing impacts and light of software optimized platform. our create the to an As targeted our we mix in XX% XXXX. ability by and regulation, This factors discussed into in change also call, reevaluated secular our last distribution the revenue of for earnings we demand

color covers first on I'll provide Dave? additional this, Dave our quarter results. after

David Gardella

morning everyone. good and Dan, you, Thank

the pleased that provide with Today, quarter's software introduce I to We in footnotes of into later aimed profit clarity full and aligned drivers software our last accountability which for are across to of transformation disclosure create new Form earnings and operating and our of intent unique providing strategy, we XX-Q, On enhanced the performance segments additional filed visibility around and certain call, growth transparency traditional segments. see today each our business, at will the description changes a make be indicated new for results the better our offerings. these company. are

In summary, by visibility have offering and financial reporting we well client type as provide. we by realigned as our of to organization vertical, provide the

communications firms disclosing markets and Specifically, capital firms firms which and software solutions our we capital are reportable markets firms, and two Capital investment equity primarily advisory banks, and corporations, segments. including markets serves now law private accounting business, in management. compliance

we we're also funds and mutual business segments, solutions companies, in investment and two companies investment software insurance our companies investment primarily communications for where and serve management. compliance reporting And companies

our your supporting I will these as each today's release, attention XXXX. first each well quarter the performance remarks, information want segments, press Later of to for our to provide unallocated as specifically did of quarter I in my schedules But call for corporate detail which costs. segment in additional

currently the new to disclose full-year working in segment the year. recasting later on We XXXX those structure this results are results and expect

as mentioned, free non-GAAP consolidated first first started software by as as record in flow. significant and share, Turning well year-over-year, results, adjusted delivering per quarter Dan results, XXXX earnings financial quarter increase earnings, including EBITDA now cash strong solutions, to our we

the our mix, the by margin By the non-GAAP quarter to quarter business we adjusted XXX improved continuing EBITDA points, first to of of we second established focus also while compared XXXX, on basis in half trend improving first operating efficiencies continuing XXXX.

X.X% software million, transactions, million, in a and or as commercial by by were decrease our FundSuite capital XXXX consolidated was basis, net $XXX.X than first led for a and of print lower solutions, lower the lower On quarter first Arc sales from growth markets ActiveDisclosure $X.X transactions. compliance more funds of and XXXX quarter of the offset mutual continued

sales the as or as net solutions offering. the and in Software data quarter continued growth by more and our compliance offset first our XXXX $X.X reporting increased ActiveDisclosure, first software and room FundSuiteArc to quarter in Venue declines compared offerings X.X% than million of

decreased sales services $XX.X transactional primarily XX% decreased million by and mutual sales $X.X or by lower Print and million primarily to to distribution or Tech-enabled and compliance X.X%, activity. net mutual fund funds net lower due due mix capital becomes which heavily going print. solutions expansion, revenue print more and commercial transactional This margin drive print, our helps and tech-enabled expect as software forward towards continue lower lower weighted to shift we markets services. transactional

ongoing higher higher First points quarter margin basis driven and than cost quarter gross initiatives. sales, overall first volume control of software lower with margin by or toward XXXX, primarily the net mix combined XXX XX.X% was favorable print business solutions a

expense in quarter of XXXX. the higher million, Non-GAAP quarter $XX.X SG&A $X.X than million first the was

benefits non-GAAP points of cost. XXX As from higher non-GAAP is a of due was in SG&A increase percentage XXXX. the XX%, The an primarily to SG&A employee basis first quarter expense of revenue, increase

Our first of adjusted XX% million the quarter of was first $X.X quarter or million, non-GAAP $XX.X increase EBITDA XXXX. from an

basis of first EBITDA mix. initiatives quarter non-GAAP ongoing first Our XXX the control Again, and XXXX. points increase margin from XX.X%, adjusted favorable the of a quarter revenue driven was impact by primarily cost of more an

XXXX, million an related quarter net of growth Software environment. in XXXX, Market from continued reduction revenue ActiveDisclosure in transactional first our the the our sales by of from Turning to were segment segment first a Capital partially results, as in now Solutions to X.X% $XX.X the challenging increase quarter was offset of venue

EBITDA of impact XXX basis increase due was margin the XXXX. cost was increase primarily increase first the margin leverage initiatives. adjusted adjusted of the Non-GAAP ongoing the for operating segment EBITDA on of XX.X% and non-GAAP sales an quarter in from the control The to in points

slowdown Compliance weeks of of X.X% million lower due segment the the sales the quarter. the a transactions our last during XXXX, Markets Net outbreak first to the Capital transactions a U.S. $XX.X Asia, capital first were market and of in from quarter related and COVID-XX to Management decrease XXXX in few primarily the Communications of markets in in quarter

due favorable increase and an non-GAAP basis EBITDA XXX for initiatives XX.X%, margin EBITDA ongoing primarily of increase XXXX. sales segment of impact from mix. was Non-GAAP of adjusted quarter cost The margin first to in adjusted the a control was the the points

Investment XXXX. of increase over XXXX, margin basis of of were due an from was strength XXXX the million Non-GAAP Solutions of FundSuite sales first quarter increase Net Companies adjusted XX.X% the XXXX our segment first segment Software XX.X%, points the in subscriptions. quarter $XX.X for to Arc quarter in first the EBITDA of from in an

to primarily regulatory to EBITDA Arc in-house The due cost adjusted in significant gained efficiencies was from margin an tremendous an in we by solutions moving our to increase Europe, solution. efficiencies related where outsourced non-GAAP

the and segments transactional our lower first mutual quarter Companies commercial sales compliance, funds Management from due Communications $XX.X Investment Compliance the in Net XXXX, XX.X% a million lower of first to volume volume. in of and of decrease were primarily print XXXX quarter

EBITDA adjusted was lower was due for of the of basis a segment the X.X%, The of by Non-GAAP in margin the quarter decrease from offset XXX first partially adjusted impact non-GAAP to XXXX. volume primarily ongoing control. EBITDA print decrease points cost

of The first unallocated quarter by an first the XXXX from employee last an quarter in primarily unallocated corporate non-GAAP were expense. corporate increase expenses million, expense driven in benefits $X.X Our million was increase of increase year. $XX

cash from million quarter due in quarter the, to capital $XX.X year, higher flow management, last lower capital by primarily and taxes, improved first spending working Free lower the EBITDA. of cash

a we've we nearly the XXXX. the trend of usage first first been the Given historically to XX% that of year's quarter. quarter did seasonal quarter This first in in by business, cash continued the nature compared of this our reduce cash user

quicker with have this a actively three continues engaged over to flow progress made projects little the year's by last good conversions. in first are last over we and goal to we cash track improving the into in quarter, first discussed year’s the processes, quarter, driving a cash of our few improve second days on in point month last of calls, well quote-to-cash quarter. quarter. As second DSO ahead from Free a We

non-GAAP XXXX We is in of million we of expense P&L of earnings. recognized costs. of at recorded on excluded senior pre-tax from $XX.X $X.X a it that million interest The gain X.XX% average price purchased the our extinguishment XX.XX unamortized gain within and net due have and our notes debt retired of our issuance an debt

million debt, of $XXX.X total our liquidity million $XXX including We of quarter and had $XXX over with ended debt, just on available the net revolver net million of million. $XXX.X and drawn

our net X.X XXXX, As X.X down from XX, of a year was times ratio times ago. leverage March

quarter of common quarter program, share the company's $XX shares Lastly, million an approximately the shares price million with of at XXX,XXX during the stock per our stock repurchase average first $X.XX XX.X under repurchase ending we outstanding.

authorization share is million. $XX.X Our remaining repurchase

as quarter as it objectives. who well provide regarding now I'll pass our well to rule XXe-X back as as Dan, the will SEC business term first longer Dan? updates highlights,

Daniel Leib

Dave. Thanks

in Venue highlights PII tool information, business quarter can use which Act. its first data information making new and involving capital corporations, our markets, or transactions California for search ideal clients to the ActiveDisclosure it a launched quarter, pace. Moving GDPR identifiable Privacy solid and privacy adding again and the at had steady Consumer personally another cases for redact for

With expect automatically Force including XX%. the of different related to to contract identify was terminations, near speeding first eBrevia, default transactional events and solid remained while in and XX% Majeure, share hundreds quarter performance markets, we capital the of to provisions market see our mixed their clients contracts, helped term by in we headwinds, global review transactional up despite COVID-XX. Elsewhere

activity to is would pipeline we nicely transactions Our in be stronger expect building year. for what later the

its software continued to as to out continued recent regulatory for its strong momentum, to automate in and back see costs Europe, companies, in multiyear our with the clients to drive winning Elsewhere. more reporting six provide sales Luxembourg. contract a software demand growth compliance to ArcPro financial wins RBC office continue quarter we and workflows. Switching reporting help investment Arc

Lastly earlier, as Dave in we launched global regulatory regulatory January. platform our Arc mentioned

complex never suite of consolidate As the the reporting critical. solutions has reporting solutions offers regulatory demands. full need to requirements Arc been cloud-based shift regulatory to continue a more globally, to meet regulatory

given would optimize earnings our provide like a context XXe-X changes. profitability bit call, our demand optimization and platform regulatory I manufacturing rule our broader we last client job and change the to to to a upcoming upcoming Next, more SEC at associated efforts look initiatives. platform to take On product discussed

Our the reports, XXXX. fund will work be analysis print reduced distribution that in variable includes and shareholder annuity and January mutual

to specific of no customer third-party that print justify internal In would addition necessary in distribution the and lines longer enough profit to work. contracts our business XXe-X and that network absence to capacity related work generate and maintaining to produce of

strategy and we from solutions. proactively have away print accepting with contracts and service higher based actions software from margin lower toward to based of types refrained to decided These future align As and such, our production. terminate printing certain certain distribution streams revenue move margin

services we Regarding the than tech and lower almost revenue generates nature, profit software shed only is much and modestly impacting and the this implications, enabled the offerings. solutions profit our revenue print while in impact This profit that exclusively can of margins in distribution process. means

million XXXX. now the reduction range in estimate to million only Further, diligently will offset mostly total impacts million expect after-tax refine million and these freed $XX has and $XXX be to Our the EBITDA being be revenue of EBITDA $XXX January and reduction our in our team reduction by to up. from minimis the starting planning been working the we restructuring of changes XXXX free working the as cash annual flow in capital de that in we $XX will a the have on cash annual are charges associated in to the range to effect

more call. actions changes do on detail note also a on prior impact and next our platform provide earnings will to We're I details our XXXX the we that efforts should results. on these or currently of not have final expect the working through meaningful optimization to our specific

growth print low XXe-X Further, its software we for we continue a absent in recognize isolation, to portfolio, we face need the mid-teens as XXe-X impacts revenue, management. by to decline we in in regulatory while elsewhere as solutions growth overcome expect the each and even and driven describe that to print, reduction cost well year, in our which in

our our leveraging position protecting and which where XXXX, our of a the our core update revenue as remain we with focused culture. first XXXX. strategic XX% solutions software expertise, domain a by and organizations software revenue Moving standalone growing strong service on the We evolving our communicated revenue included introduced our we company, Investor changing to objectives, longer of In next and base our mix, market and derived from being sales total on markets, objectives. May by of Day term an hosted DFIN goal

believe software the We revenue strategy company driving for investors. right is the both on focus the and that

to which we opportunity margins, they into manner existing new offerings served, clients an our high introducing to serve offerings and the scale while relationships, in quarter. this did Arc with desire our have we in client also as be regulatory As incremental to continue existing our

both overall funds helping increase recurring will maintaining and annual In objective as stabilize and an carries improve help leading of filing to nature visibility the forward our addition corporations mutual our the Similarly, revenues quarterly compliance and margins, performance. from software of market XXXX. for our SEC financial and position

Our not we also new our help annual From new same from increasing a opportunity existing who of market new solve introduce leaders of merge the DFIN the modernize an perspective, continue to offerings have us ever to a have makes the base ideas, expertise set that that retaining the partner. culture with only we but our them provide strong spin-off to time leadership clients with the trusted post technology to and talent a infused industry, obligations. at business, business, industry steady the us give customer to relationships compliance with culture helping

execute clients while regulatory aggressively our compliance and expertise on strategic meeting also obligations. and objectives, leverage their these operating continuing industry will We to efficiencies, assist in to domain drive

our I our why illustrate shareholders. produce objectives we to that Finally, term a help strategy longer to feel compelling provide few financial will returns wanted for

the the adjusted development Well, which targets representing annual to plan increasing an as increase XX introduction points. XX%, basis approximately transactional makes products approximately annual in average our of EBITDA of of for current variability estimates conservative and offerings XXXX our it our transactional includes already consistent to difficult margin provide revenues

associated benefits producing are average net approximately with growth current In share through an X.XX% refinance XXXX share margin, With XX%. non-GAAP and addition opportunity opportunity consistent share repurchases. increase per annual plan per the to of to further our notes, earnings this earnings to the future growth improved deleveraging senior realizes the our

XXXX. organic Given mix, we low revenue during single-digit the shifting growth would expect

XXXX million that net Free $XX zero the cash we XXXX exceeding capital cash plan and achieve allocation and builds purposes again, in organically. flow all is debt policy for in modeling our

solutions the shareholders. excited leading strategy next and we about deliver customers relationships business and very to believe chapter client are We returns our software our of our right compliance have to market the lead transformations. excellent We to

With that, perspective discuss our year. I'll Dave? the it Dave to balance of to turn the over on

David Gardella

Thank you, Dan.

release, for provide press guardrails to like we level for in guidance the of a guidance As specific year high this absence some outlook I we morning's have In would and however, our retracted the quarter. stated for the XXXX. second also

over ongoing the First is XX% in of required funds with mutual business recurring their SEC still to corporations guardrails, are compliance obligations. our nature, and comply

So revenue be portion this expect we to of our unaffected. mostly

related be impact of updating we impacted our is the duration including transactional But magnitude and to and revenue guidance improves. visibility very not until environment. will Venue difficult which certainly XXXX overall the is the predict, Our why are retracted by

more environment more related I've can so. it and previously, often much makes transactional our the environments, As to challenging current revenue be mentioned stable macro forecast in

line level. to revenue aggressively much and capture market our our well a positioned including as add market in quarters the structure revenue more Meanwhile, our the leader of to the the XXXX, conditions nearly last of was in And Venue profit as some bottom transaction manage of size, transactional return transactional for growth To when last revenue mitigate we as of continue revenue, impact XX% total remain filings, three related possible. quarters cost we normalized context to $XXX to of to for three XXXX. approximately our million,

include X.XX% year expense, and approximately a Interest expect to continue feel approximately reflecting benefit be partial by we partially enough Other we a we million. to revolver depreciation portion be that expect we our which which to visibility retiring of offset amortization notes to $XX of higher items balance. million, the, on comment have $XX

additional current in to expenditures, our assuming diluted to of share of which a approximately fully we to be light no the expect repurchases. range Regarding shares $XX approximately in be year, expected be situation to capital markets. expected previously are Full $XX.X million end $XX $XX we million, now million million in

of approximately be for year-over-year the to offerings. million million we're expecting largely and second approximately in $XXX on the of transactional the range our to context, in quarter, due COVID-XX of the net Again XXXX. these midpoint, Lastly, revenue impact for XX% $XX million $XXX the offerings size generated Venue at second of down sales to quarter

due to of initiatives. we expect margin by profitability, to approximately adjusted transactional second in lower points cost expected offset impact XX% of activity, range the partially the XX%. our ongoing our the non-GAAP to Down XXX from quarter second Regarding EBITDA of quarter XXXX basis level savings the be of

back to Dan it turn before up it now we Q&A. I'll for open

Daniel Leib

Thank you, Dave.

highest been In the service closing, continue thank operations working world quality I around the to to who ensure to without our maintain our tirelessly business employees receive want have DFIN and disruption. clients the

stay Your and efforts have been inspiring, safe healthy.

for questions. we're ready Operator,


[Operator Please Instructions] is Strauzer our ahead. with Charlie first from go And CJS. question

Charlie Strauzer

should Couple that thank of that just quick the year? in about of $XXX XXe-X, of year, of million the How for the the additional you next questions as we the revenue? on ramp course the over ramp just there, think about $XXX think million and quantification we decline to

Daniel Leib

Sure. Yes.

Dave start off, Tom in I'll can jump well. as So and

option. allows January, rather And is their default by the it annuities reports kicks then to electronically than distribute another regulation and background, exiting. that balance we're client this the So mutual funds and just variable by shareholder in work

and we role think management, organizationally, unchanged. is service software when content about organization So our

Our filing viewing. system SEC financials continues shareholder manage client and and content for to

also As the on we've assets said we previously from then own print rely our we and and have trade. distribution,

internal team trends and options of platform both the external the as and serve our demands been to in So printing secular design and planning we for volume has light needs. including a

we're the lot when our from our of in passed strategic volume, paper or I and revenue impact, we then, familiar serve the software designing excited, it strategy print by network revenue that's the accelerates primarily, mentioned that XXXX. XXX% into through And So at and as the look to beyond XX% perspective, the addressing with ink delivering a and my prepared of needs. from remarks, variable a materials, financial we fluctuates is get as here you're on the side,

Charles Strauzer

been Great, but that. about that Are offerings, is thank of in baked for gave of kind of cetera kind equity their into of balance debt forecast has looking you of sheets. doing and or seeing you the offerings, benefits for talk QX some et to company's out? the And on lot there a what near-term, follow that that, news short the you

Daniel Leib

Sure, yes.

So let start, I'll the then if view, broader in me you to as Dave, well. guidance jump take and want

is compliance the XX% So, non-software XX% requirements. you said segments, the know, Dave space within software by of the fun as requirements of recurring same of recurring, driven our and about that revenue Within both and software the from corporate predictable. roughly revenues mix works derived our

transactions is of by balance total The including filings data Venue work driven highlighted year-to-year. room. up Within offerings, you our as actually the transactional are the is

into began in However, change to last half March April. the and the mix of

So sensitive M&A markedly were were reduced more such higher. spin transactions that market IPOs, lines debt and issuances product as

and ample until events we'd given clear and companies market market. is on disruption valuations, that market have a stabilizes In expect view the term, liquidity the the the advisors short in maintained

to financing So, come as continue. that underlying and this valuations happens, rate and have we interest Regardless of their et be dynamics on medium amount would the cetera as will favorable some of spots to the down some access that in of and of level, digital we'll transformation new normal, technological well environment defines find low long-term. disruption level as expect is and dry we're in powder the M&A bullish that deployed, there tremendous the

transactions, QX, restart comments The I'll thing here they can I him of also terms up quickly. one can let minute. relatively with is, on jump Dave's in and say they quickly, seen would relatively as we've In in a dry

despite past in continue it, as well. as of revenue, think deployment, and sheet capital on the driven shrinking And to to the as balance about disciplined the opportunistic business be it expanded quarters. we've XX% remained three we by has Our be the overall relates year, half to margins over our we've activities schedules. roughly the seasonality side, largely We'll the in cost compliance first client of meantime, aggressive

you David, jump QX So, more to specific to want in the question?

David Gardella

is better look size, on this just at of bit where of point. in pipeline pipeline terms we deals that sure, the number at little ago the a are significant Yes, Charlie, transactions we QX, identified were transactional a of as than year actually the

will I think the market current for long continue to how question the impact big the obviously the macroenvironment, or COVID-XX on us impactful with be. is how overall

about we're these so a the the building come year. or will and later to in hopeful the from market fact optimistic, we're Dan tough back just as And timing pipeline in said come to year perspective, that, It's predict. later the

offerings overall comment the around are. question certainly and size, debt a other there to your of we've than in that an size make we've respect would I work. seen with But deal talked The get value about that offerings, from past, activity certainly of share fair debt as and from are our deal IPO M&A more valuable


question Davidson go ahead. Company. Peter Heckmann with & your from is And next Please

Alexis Huseby

for morning. Alexis on This is Good Pete.

for of details XXe-X. you incremental I helpful. thank also the all So on very wanted to definitely touch its

set at about from XXXX. printing is in the the would loss double Investor So Day estimated what you

is it saying essentially But reduction same. EBITDA at the think $XX million was the the time. I

the how much how into that of I'm going more is is a can that then really assumptions on much contracts? bit hoping and provide practically you detail terminating So of XXe-X, this, and it

Daniel Leib

Sure, thanks.

profit there highlighted, the of So couple double, the about revenue impact overall same. impact components the new as about a is you

client and variable assumption reporting, addition some And actions then In well. we've to taken assumed electronic on annuity, contracts. funds, also reporting we've as shareholder the go will shareholder

think the more internally I about, mitigating numbers platform, there as in better is work to the able do terms mentioned, think of and well refine been then managed we And our both in we've high about and revenue a spot just a impact. as the content get as those trade, to costs, as the and of So, as composition costs. we of variable

Dave, thought roughly in. the impact would half transformation don't I because accelerate much company a So about and it something us And service into that the mix of more be we're tech-enabled as we excited of originally, software have the prospect if you and help margin revenue. does know the it

David Gardella

in Yes, of terms them really difficulty] difficulty] move that of to allowed trade would things ad driven. [technical cost those at you're look we is and that out to the a the regulatory of us costs the just structure mentioned prepared are when has cost Dan on into or our overall a one in of have lower remarks, the out of at move XXXX. additional [technical to Alexis, And just fixed our combination reduction the what say his the platform the ability the Yes, either better moved I own majority assets, take is summary two was work

originally contemplated to out. further So was be that

Alexis Huseby

Okay, it I thank wondering suppose quarter, that. initiatives was you which and savings much cutting expense nicely my - could question, the the how in if of next the you for quantify cost you consider was And would done, sustainable?

David Gardella

Alexis, Yes, so that one. I'll take

the decline quantified looking face his the related here, quarter. remarks cost years, at regulatory to an mentioned prepared We on about print headwinds through the Dan changes, in the always reductions. we that aspect of amount and savings ongoing are in specifically reduction still the even over We quarters is absent cost frankly handful haven't talked last cost secular

place. to in yet related I XXe-X are the reductions think cost not

be cost while in so, as had and normal kind to efforts. the of execute ready And would that appropriate, to plans a we addition mitigation

Daniel Leib

company efficiencies business sustained company the job what to it, I'd business these Yes, tremendous and thing mix everyone and like look is are levels. and and doing by cost add to some by facilitated the differently thinking that shift, this needs of throughout that, the Dan ways of savings at the only company the of driving all is, within just

Alexis Huseby

capital IPO so markets fairly maintained then on that transactional us, off one thank quarter. Understood, well the for one the sounds based first side, transactions of review in our actually you. like last it And

And more so, be is M&A to trends. then in maybe that that's from leads I'm of on bullish long-term? inferring April it any most the in your you volumes going and which of M&A course lower, improvement Venue to to seen leading coming medium Have outlook

Daniel Leib

and Dave. one comment jump start I'll and in Yes, and then

for closed the year last had or the and we as to was the So so. about month think first year, market last comparison we certainly SEC

early the So did of And it pretty moved seen that then, a the Thankfully, was in on Pacific from Asia viruses we the we've of rebound that region. region. impact virus as coming see some IPO light on has the environment.

pretty little about was were it we I and Charlie's my good look when M&A think mentioned domestic look as the quarter, so quarter-to-quarter. both we is, actually activity April And think up levels, I and soft that, international. think at yes, March a IPOs But So obviously in news when comments was it the doesn't in worldwide, a And there then good. I arena question. so

there think to there's that a lot as of stabilize. environment out I foreshadow Dave add. Then would you want dynamics M&A a better things

David Gardella

going I thanks. to what say, No covered you Dan was


question is your And ahead. go Sharma next from Please Raj Donnelly Financial. with

Raj Sharma

wanted areas touch couple to I just A on. of

be in immaterial guidance of So material fiscal XXXX you And that mentioned correct, because that this year. you would XXe-X. savings? working free beginning the of new cash obviously the change XXe-X no in year, capital that from impact that the the from flow there's Is starts said also,

David Gardella

That's correct.

Raj Sharma

SaaS FundSuite And what the overall growth now was and are SaaS what a as I the up in that business then is business know what percentage was percentage year-on-year? of the of double-digits? overall the number the the offerings

David Gardella

You’re right.

just that was segments if that the you of software So total get overall the X.X% I you're and that solution two the in represents, to take terms number you revenue growth of it the looking think for. portfolio

Daniel Leib

or XX% so. over just Yes


[Richard go And question is Please your Investor. next Sosa], from ahead.

Unidentified Analyst

to do and I $XX discount individual debt, and on to know Just much that see in on buying able from I you companies can't you that you to the April, that at me I investor, rarely be makes par, your can continue to but of so million wait? very know you a happy. congratulate back you am that debt have markets, I bonds the to a be will trading is we discount comment there still something or discuss want probably are at

Daniel Leib

would something on. we yes Yes, that's that not comment

Unidentified Analyst

XXXX. and And second into question, looking XXXX just

sales? higher there kind all we of like else we that XXX kind little a - like or seeing maybe is equal, is else should of, what or thinking XXX, bit be a lower? Is should if like Just in about that being something

Daniel Leib

software on the can to guidance Yes, get the think, We given revenue you there out I have so still grow. start pieces, we expect years the right. at specific to

talked terms the our I As and on we've what about print, exiting. math would impact XXe-X we of And indicated, be the get estimates secular think be. the we're that in of that to if do close some decline the able you on then contracts you to should pretty

communications big the well markets management both of capital Obviously, software compliance - would capital be solutions. communications variable the the in related as as Venue and transactional markets, work portion the

Unidentified Analyst

to that. of So at to right XXe-X it’s think year a the pullback year… once kind for is a correct should in way be going at like fully we should take be over sales that the right Could all

Daniel Leib

It will throughout XXXX. be

Unidentified Analyst

already? that that of okay. sales of there happens, that as any been - asset are like printer done XXXX, most further throughout a we or And anything is expect, could or selling Okay, then this

Daniel Leib

looking things any Yes wouldn't than that other on again, asset sales, say, always monetizing at specific comment to we're can. we

generated do past we at always our have in comments that. from specific don't You've value any on ways, We're the looking assets, to transactions seen the best cash. us but some get where

Unidentified Analyst

question, the debt And call can't term buying pay or is to additional of chance you prior million a see October debt, further the any of refinance my $XXX last that date off, question at take with to so is that that there the out - out you much correct? to

Daniel Leib

any or that say Obviously plans. not anything conditions October next about specific beyond its any contemplating. of note by contemplating driven are market But in callable on of refinancing we comment that that that wouldn't transactions lot again wouldn't at year a XXX. Yes, is

Unidentified Analyst

you I the great call really guys And perfect. again. taking and seeing aggressive with stock my debt quarter being appreciate and I guys appreciate love you and I that. so Okay,


at We further time. Instructions] this no [Operator have questions

Daniel Leib

your thank you in to virtually Okay, if thank thanks person the And and We much, very you not in future. near seeing everyone interest. joining. to again forward look for for you,


today's for does joining again conclude call. This conference you us Thank today.

disconnect. You now may