Broadridge Financial Solutions (BR) 2 May 232023 Q3 Earnings call transcript

Good morning, and welcome to the Broadridge Fiscal Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Edings Thibault, Head of Investor Relations. Please go ahead.

Thank you, Kate. and Conference Broadridge's Call. everybody, Year Quarter morning, Earnings XXXX good welcome Third to Fiscal And

Relations Our accompany be Investor this release call of earnings and may found the on slides that section broadridge.com. the

and call the are our Reese. on me our this Edmund Joining CFO, Tim morning Gokey, CEO;

be operating few forward-looking involve Before I annual can non-GAAP An statements non-GAAP slides these page these and call Broadridge that Two, measures, a on and A XX-K. second over with One, in explanation summary we'll reconciliations we several risks believe measures let comparable GAAP release me earnings to complete today's to we found referring presentation. on underlying provide turn reminders. Tim, will be investors risks. of to understanding of a the and make report measures results. description on which the complete can a call the standard of found be also Form making more the be regarding Broadridge's our on the more of

turn Let Tim? Tim Gokey. over to now the call me

and and morning, by review Good results. review I'll of us positions Broadridge start key us. quarter that for quick strong operating, you across be the followed close why I financial such here for year Edings. and think for Thanks, thoughts to why Then with I'm pleased our a business. on with future. been strategic some strong I'll fiscal key 'XX third a has well joining headlines summary to milestones thank our a and

X. Slide started Let's get on

growth business, strong X% revenue in growth another in delivered constant in currency, Recurring Broadridge First, double-digit and with GTO. quarter. governance our rose strong

helped adjusted adjusted and XX% drive growth operating Debt in income in growth revenue EPS. X% growth

nearly as platform tripled Importantly, free those continue flow, down step wealth translated strong we investments. year-over-year our to to which cash Street's earnings

dates completed digits high QX expect power to position with continue we XX% through fund 'XX, record to remains growth in driving fiscal equity underlining was last growth position trends participation single growth. over the investor of for was X%, that the strong. week, equity Second, the position growth XX%, and of be

a Third, capital our to transformational The wealth large place capital are seasonally to business governance, clients. is put made across wealth. front-to-back build move to fourth on Broadridge and markets our growth. with have platform track top quarter, Broadridge suite markets we in another deliver as governance capabilities Fourth, investments resonating to in innovate to continues of through and steady bottom-line execute in and year we

report X% XX% and higher growth to revenue expansion, range. outlook of for our margin X% the recurring at end guidance continued our adjusted EPS And to expect are We to we X% reaffirming growth.

has outlook objectives our end to growth growth. would us financial recurring 'XX X-year delivered mark That a financial fiscal our X% revenue and the deliver X% or X-year on at consecutive above of which high objectives. we track on XX% cycle our in Finally, have to to X% EPS fourth adjusted

recurring our revenues review to product all XX% currency growth across our ICS Governance rose beginning with or X turn let's Now governance strong a of constant business. by Slide driven for lines. results, X

investor Our and companies of to public millions broker individual connections regulatory its of from benefit investors dealers, business with tens to strong continues funds, participation.

equities income low-teens declining past technology-driven share, will especially investor equity further As growth strong growth solid participation. remains season, growth self-directed from driving we Edmund as XX%, managed over across trends secular growth all-important the ahead And and the underscores months, both increasing context positions. large-cap we the benefiting the sectors. see is markets in fixed move really at to and the particular, and in fourth and positions, proxy growth, growth, quarter. XX of broad-based for X% mid- of position across in account equity peak That Broadridge in by led

On the at solid remained growth position also X%. side, fund

and including with continue basically passive positions, in fund flat money markets fund growth growth see to positions. double-digit We ETFs in active

For decade, positions total, less of trend our for drive come. seen giving account past revenue. over us regulatory confidence passive growth the passive than posted double-digit growth a XX% all long the still continue funds business we've recurring of the in this Outside for governance time can to to the in core, growth

solutions. Our Customer strong in growth benefiting from is digital Communications business

and solutions, and are our data-driven will is to rates weakness into activity. Our we the quarter well. last event-driven likely extend contributing demand growth recurring business. issuer the registered revenue and for benefiting growth funds Partially quarter business our from as higher lower strong is fourth the The noted strong disclosure of interest continued offsetting has

these seen from market and X we've quarters of in to uncertainty. anywhere extend X past, the In levels and weakness activity periods

directors. reminder, As of this elections involves for of a fund most deferred activity mutual boards

to And eventually. grow they do, As need with such, happen when they physicians. they

to long-term BTCS, million. deliver integration $XXX to Turning of Markets Capital X% grew benefits. now The continues to GTO. revenues

the a latency multi-asset global class ultra-low competitor. member and a firm to global providing displacing with During them onboarded quarter, clearing markets major we XX leading connections

cycle. DLT clients our of needed in pipeline recently translating forward multiple increasing needs. of represents settlement bring their step small intraday suite therefore, repo efforts on our terms, sales. front-to-back UBS the simplify together been This major are across applications and manage continues intraday real-time office still platform. velocity across executed capabilities to the In generate goals collateral and These liquidity distributed for strong in into by of has to a amount revenue repo capital addition, interest. our first trade mobility solution, BTCS, opportunities that while of workflow reducing the back ledger front to bundled one our to now a the trade Outside and develop life market

continues solid T+X announce platform economics 'XX, delivers and have free its it that We development made In while that confident on I'm as progress phased our first wealth, to significant a approach going with to we towards product Broadridge transformation. remain million. conversion wealth and we fiscal to the of will recognize revenue the Broadridge deploy its on addressing in suite. UBS the $XXX notably giving grew cash XX% to forward. see pleased to improved testing both that completed revenue rollout finalizing UBS quarter are of we digital track flexibility own We've flow timetable, modules and

have but only and modular that significantly productivity, This to in deliver investor Broadridge years adviser We our this we've is point. clients Working invested the that past now. a a front-to-back can UBS, X of differentiated with enable the that operations. talking about, others drive to improve experience digitize are closely suite capability reach created solutions

can based These conversations firms grow, the from and are transformation over their continues on Our XX% componentized the our approach this into means needs. year. resonating, that pipeline to of up step beginning now

proud a Broadridge. All moment in for all, this is

of speaking million rose sales to client quarter. Finally, $XX the in closed X% conversations, third

capital are uncertain cycles, of $XXX we're in we expect full We the digital Europe. we're longer slipping economic and are interest others, now end solutions, sales be record million our pipeline, million into sales $XXX the deals With summer, significant low entering critical year quarter and At with guidance. seeing a time, to the to in selling environment. same near some our wealth. especially Like seeing closed markets we now a highly in clearly

expect and operating, us metrics. are across on I'll FY variation means gives X. Broadridge backlog deliver financial in that is strong onboarding impact key my we confidence growth. and 'XX process is minimal strategic pipeline timing, already we the poised year strong and Slide seeing revenue fiscal of our in the close on record sold Our solutions to remarks another 'XX

dynamics position side, operating the rates, the market healthy. X growth markets past on First, strong years over After remains XX shifted months. have significantly of and ultra-low very

And added equities turn, above confidence results These and increased yet years. with that that testing, a long-term give participation for in position we'll QX the in X market intact, of in high our driving after digits early choppy forward much high all trends us and very for degree even end the funds. we're and even investor results, activity growth year-to-date, trend remain the us in the conviction mid-single digits a single seeing our year give

referred strengthen government new voting we've tailored for for reports. and steps universal business growth, implementing position a we proxy, past by to offering while it the or funds taken as shareholder to all Beyond choice pass-through developing voting, our a in

strongest drivers the enhancements, business fundamental these the regulatory been. the ever and it's is Between

our has become Second, Broadridge our clients digital while investments leading preserving a momentum. in communications begun to communication capabilities significant into translate best-in-class omnichannel giving digital enhanced hub, experience print. have an

business we've seen For many business scale. by these acquired we client 'XX, of synergies double-digit the new drive communications combined contributed efficiencies the growth earnings delivering beginning help and recently, after us wins. More years, strong fiscal at DST's

is This in we acquisition, capabilities are enabling the more clients out digital exciting to laid it and service and we our fruit. it's role bear their new now made play to grow business. And a how our see vision the and when central Broadridge

never stronger been a Third, position. our capital in business markets have

Our the their puts ability clients operations. help trade our complex position simplify cycle to address to in us a life entire unique

back-office As link market we receptivity capabilities and we and integrated have solutions the front been Itiviti, that our the built has will strong.

experience will drive the adviser this market. our modular improved are well elevated digital growing now a to solutions investment wide we operations. and strategy, of wealth Broadridge Fourth, on targeting set of positioned our investor transformation enable our platform clients productivity, their growth completed through and to terms digitized phase We've attack

year results. outlook After and a Lastly, for high calls revenue we're adjusted single-digit delivering full strong another third and strong EPS year our financial recurring quarter, of growth. consistent

are in The case and the of significant successes BTCS investments today investments, we discussing require wealth.

we across -- starting will summary, which that our Now improving ROIC results to is that in flow strong multiple investment conversion delivering we means Which is we're year which In expect well. historical as free will fronts. phase. expect 'XX return fiscal Broadridge to exiting result levels, cash

outlook metrics markets year grow. parts strengthening backed cash in wealth operating governance, results of key and by consistent and made improving we We are another Our reaffirming our flow. for key capital our financial free to important of continue franchises, steps

growth. well to to and positioned want long-term sustainable is listening this to are call. our whom conclude associates, Broadridge thanking I of by many drive

service the work with to for let And of with They Thank turn every to world. of clients. our us Edmund. a commitment associates big you. Our consistently clients our things that, client investors a apart sets day. me is make for to our millions continue difference around to over engaged and testament highly That the

our for give review good outline rising our to drivers in EPS free to growth, provide am which fiscal flow and QX And our everyone. some I insights And financial our the Tim. 'XX. revenue QX guidance you, thank going on conversion. confidence adjusted additional want Well, cash of us I performance. Today, I'll morning, recurring

and with growth EPS adjusted challenging Starting despite share quarter, revenue macroeconomic from am the results growth strong continued event-driven drove recurring weaker disciplined the where in mid-single-digit QX, management to another I pleased environment. expense revenue

Adjusted our converting X% can summary from continue operating organic a and currency see of QX in growth basis, actions over investments $X.X We see income backlog than the increased lower 'XX, rose and that all realized from to robust to targeted recurring growth. And impact revenue on revenue X, of more constant we XX% 'XX initiated organic. from the offset up benefit position both revenue. fiscal Slide billion, which the you sales as lapped revenue as recurring healthy to we cost financial in on event-driven elevated

AOI points XX% EPS XX expanded X% margins $X.XX. of to rose adjusted and basis

in for delivered taxes, overall interest the fiscal offsets And income I'll level you over by float interest On continue while an the million, segment. up 'XX. we sales growth, of Finally, closed project rate higher higher ICS approximately the rate income operating at Broadridge that impact fully 'XX. XX% QX $XX of our X% is we tax partially offset to the expense remind

recurring at get high of revenue into grew revenues with Recurring our X. year $X.X the range guidance the QX to QX X% the on of details end billion And and results, was in X%. X% of let's to full 'XX Slide starting

all was objective. to our us organic, to track X% on growth keeping X% revenue growth X-year again, recurring Our exceed

Let's at X to and turn across growth look Slide GTO the now to segments. our ICS

double-digit and other recurring both XX%, revenues strong ICS with all across at product organic million, We in grew to growth continue our of segments. growth see regulatory $XXX lines. all X% to

underpinned Continued growth an and X% in increase fund to in positions million. revenues $XXX equity regulatory

our by Data-driven due mutual processing in fund unit. revenue million, solution $XXX higher XX% revenues fund to to increased trade primarily the float

to issuer disclosure by and grew registered solutions. revenues led Our XX% shareholder million, our in growth $XX

in from benefit in demand XX% recurring client our led well million, communications as new where our and digital print revenue rose in growth to continue wins $XXX we higher-margin by volumes to higher as business, customer business. Finally, strong double-digit

markets. in Turning our wealth $XXX to revenues GTO. and driven strength to million sales X%, global Recurring by products grew or capital and post-trade revenue management new and

revenue led offset markets new higher new XX% service Wealth 'XX. revenue grow-over to impact higher and sales QX million fixed revenue million, investment license growth $XXX and X% management healthy grew trading the by Capital which growth $XXX in from fees. and income by professional propelled volumes, to sales increased from by

reminder, a quarterly for QX license As in impact and impact growth, we revenue grow-over revenues can wealth a expect management.

high X% our over forward, organic of given months. to Looking ability GTO in targeted full a degree to I X results have our year our strong the growth within range, deliver past X% confidence

while modest Let's the now accounts. for continued double-digit by XX% in turn both for more self-directed and volume despite volatility. Slide in healthy in the had growth growth was position in trends. at X the growth quarter was closer look managed third and Equity a growth continued driven funds market equities growth position to and quarter, accounts We

in annual are we growth record of of the in And received data consistently XX% results and We for have testing. the for Position for meetings the through with the proxies that our period have end been proxies. now are year. peak April, expected line

So this high our estimate. QX us in data confidence gives

full equity year, of we the position For approximately X%. growth expect

encouraged be serving participation expanding growth drives long-term in as business. to a investor by in our markets that tailwind continue financial We

outflows Mutual in and similar funds, for to fixed funds X% anticipate position market we remained growth and growth year. despite fund steady at a equity for from and money full the QX income range

classes a in decline on once at our increased to activity in Trade equity saw retail volatility X asset of volume growth X% quarters And now consecutive fixed slide. blended the on volumes driving wealth management given modest income the Turning grew with double-digit volumes volume difference clients. we growth and now for trade bottom a the again, basis QX. the lower in

than lapping full will be slightly year. we but growth We and guidance up be the our year strong trading better initial a QX volume expect for to 'XX,

organic summarize continued high to net primarily growth of income X% from and and between growth internal where points internal move new positions, from business XX, was customers sales and points. of and revenue recurring our Slide now contributed provided closed float trading Let's drivers all we revenue Recurring and the growth. Revenue X growth. retention X volumes balanced existing

the Foreign of see, majority impacted impact you exchange revenue by recurring as the the in bottom with the that X slide. can on of business, GTO in point our coming table

in revenue was lower will mutual and as the of on revenue of by Total view modest not pushed of mutual points growth continued activity. that ETF I'll billion from I total revenue. on QX including board is revenue driven may $X XX. $X.X was optional to finish activity Event-driven the recurring a highlight growth are to elections, timing but X discussion a with Slide down grew saw which X% revenue and proxy million fund proxy again be we back lower activity. headwind an fund fund

million year, years. we've the the the in $XXX remain that year $XXX below seen million ahead $XXX to level full to we to with of in expect QX revenue balance range, in million recent the $XXX weaker to Looking activity million

margin X% communications to increased points higher and Low no volumes than the increases and postal rate event-driven by impact revenue in revenues of X contributed growth total as more to the distribution offset customer lower activity. the

higher and We rate revenue that expect to for income reported and margin. distribution I'll our have a from postal the full on volumes operating elevated customer increases distribution growth reiterate impact continue the dilutive revenue again year, adjusted double-digit communications

leverage prior impact continued Turning QX of operating by actions management targeted higher QX a point over margins combination income XX%, margin XX disciplined and at the year, of was end that float driven on cost expense we improvement and our Slide business, now initiated the of to Adjusted income operating 'XX. in a XX. basis the for

FX progress gives on we Our objective approximately be through of will for and X 'XX. expansion confidence able quarters points us XX and to that increased inflation our deliver fiscal offset margin impacts basis

on sales XX. Slide ahead to closed move Let's

million 'XX were $XX bringing million, total million our year-to-date sales Third below $XX year-to-date quarter up QX in $XX 'XX. $XXX closed from to million, and QX

full Over in XX% fourth we sales closed the years, quarter. have our the last of average year on X

So XX. meeting free in year XXX% QX cash QX million strengthened flow million, from period. cash I'll close our be flow continues full to dependent $XXX the objective 'XX to heavily to performance. Slide up turn now sales year on $XX prior on

was of over and XX 'XX And conversion product client year-over-year flow was for reduction Total the flow with year's last this flow the driven improved sequentially working notably, million, platform management capital most strong spend cash a Free decline operating to free client level calculated consistent months cash expectations. QX from $XX earnings the platform cash last as million. adjusted improvement. a net improvement in XX over our points XX%, spend by $XXX of

The development lower progress and the wealth the project. the platform in was investment phase of the the that quarter spend in demonstrates component completing our primary and testing of

clearly expect is We and and that fiscal conversion cash of 'XX, will are we to levels historical flow cash the we to significantly to than managing we deliver that remain investment higher fiscal free more conversion year fiscal flow free return in 'XX now spend, 'XX. year confident continue

economics as with Broadridge, And delivers on that prior quarter said, on consistent on when UBS. before the during spend, platform on And solid and QX finalize spend I'll we recognized our plan 'XX that moving the of we've client in wealth we more fiscal Tim on with to the we'll from share platform finalizing near-term progress to economics a XXXX. our the track comments, first complete are and made revenue add approach rollout the

mitigate business our on model our continue objectives. We other confidence dilutive and will inherent ability growth leverage allow the the that earnings to operating and deliver have to us impact in investments the continue to prioritize to

see spent investments Slide we've capital returned year-to-date, discuss XX Let's million million now $XXX you move Slide $XXX and XX, shareholders. to that for growth On allocation. to on to

year investment allocation investment-grade And rating. down the time growth the to pay that combination cash of while in capital debt feel Our at an acquisition. after lower make balances with platform X.Xx on we 'XX spend client very we continue has shareholders credit model our fiscal to towards return leverage free growth of track maintaining us and that flow communicated the the objective and ratio earnings for to Itiviti capital progress good

thoughts final and let's on quarter. to our guidance Slide turn Next, updated our fourth some XX on

to to guidance revenue expect to of this we there as reflects growth. important revenue is recurring and view. point] constant the First, our year-to-date, X% And end And constant always, it's range. guidance [X.X deliver at X% higher growth the recurring a note currency currency a differential the between reported that

are EPS points income X% growth of XX%. adjusted basis our to we adjusted Second, expansion operating guidance and reaffirming margin XX approximately of

Embedded delays Finally, low in impact modest end the want of $XXX that reiterate to on we And revenue near be strong sales, the medium-term of primary in million closed very QX. given timing our and have drivers this is the a only the 'XX, our sales a $XXX growth full expect there I items on QX are to outlook of strong highlighting as year worth sales guidance X million. in to backlog.

of and sales emphasize conversion the backlog provides. visibility continued that I'll First, the revenue to revenue,

into seasonally earlier, position important we I proxy data. quarter, growth and Second, XX% from said record received of revenue over this strong having already have as visibility

weeks QX the over end of over targeted before quickly see received of last address we we've initiatives 'XX I about that And expansion close, banks. the initiated growth and to at 'XX. want exposure the regional significant questions fiscal in discrete as impact cost we grow Finally, few our I investments margin some to that

the our revenue is our basis of from $X.X of First, XX fiscal revenue. stopped operating less recurring than billion exposure that 'XX have banks points

the broadly than overall less across of XXX banks make more more X% than recurring Regional our client relationships. up revenues

overwhelming majority banks operations the capital. of systematically our Finally, prioritize the of with banking safety is internal our and deposits important policies

So close exposure Broadridge With final delivered by will my messages. reiterating these to key again, note, small we financial have that institutions. very strong results. QX I

fourth deliver to quarter another and strong year. are results importantly, fiscal positioned strong more We

X% X% growth. to calls Our to end growth, XX% constant updated higher EPS revenue X% currency, the higher adjusted margins and of recurring guidance for

platform investment X.X or debt pay the our testing, our allowing cash our again, down for flow and X-year us once on in we ratio finalized and have progress and our We wealth past leverage objective. our investment-grade strength to the model time. against business strong The development to and peak of spend noted, driving consecutive resiliency as objectives visible performance poised financial growth are free fourth is deliver and and Tim

to that, with take Back operator. let's questions. And your you,

Instructions] question is David Togut The ISI. from [Operator Evercore of first

delays materially go particularly level next quarters over on will deeper, seeing affect sales Europe you of couple Could new fruition cycles 'XX? you longer in in the bookings, of of you're reach why kind perhaps Tim, just think some some of and a FY the not the

when And Yes, see than pursuing, are when at big the opportunities that is really absolutely. cases, our can look make the exciting, ever and conversations Thank we industry. in we're having you, pipeline, we look the the for and just transformational overall at it's continued a Dave. it stronger we ways And difference we're we we of -- that been. quality some

we really like the So in. we're conversations

on time, then going the at world. lot a And in the there is same

do and can have lot predict of of on haven't contracting always that in. and opportunities And on what very the -- when makes in And just you things have and that things the on institutions. any the fourth phase those done come away. get going when when gone it There to all so there's a expand all the been we you everything particular exactly between in our are contract with you're quarter, will based that agreement doing that one and sales it's hard things or

you we put I need to staff, of to going. on need and we then that a adds which all to as through, of remember, projects backlog end, know well get the know, teams In work

our in run. And impact revenue the June it closes July, in so in whether or something it on immaterial really long closes an has

So great we're demand. seeing

solutions across that but each areas the about, and won't. could pleased, we're We go are I of excited new really I the on about really

a so our a we going things year, play by -- -- seeing we it we'll of we'll did but And like are clients. lot just others, on in

to And get working so hard there. we're

that. extensive March And a suggesting a quarter. I follow-up, I've about know quarter a pointing season. questions there a the to June Appreciate anything And received steeper-than-normal Edmund, But in March versus would implied ramp is versus fourth investor guide, suggest guide testing implied did strong perhaps of quarter kind proxy else as fourth some the just steeper quarter out call you the ramp? that

high for thanks visibility and year. question. the And line right one important equities. the would strong this growth David, in component, single-digit in the what So I we've think that been from you hit been XX% the we we key that, -- entire is And and directly position gave all be can to on saying approximately with that record data and X%, now point having year strong, we've mid- to of for saying growth year

continued the in out, component, is business. this on expansion mention other did our the I drive to and though, to call remarks, ability in The operating

this in both operating We of had leverage our businesses.

actions. as revenue, remember some impact in targeted bring you'll benefit QX that right continue line we I we expectations expansion new basis QX. So XX leverage operating know had of in to QX, to in points And announced expect we and see there. with that on our We 'XX, drive in we

fruition took We to well. expect those come to see particularly continue our environment. other as And benefits new targeted about estate footprint, we real as cost we in to actions our We the our we well. think hiring. hybrid So QX as 'XX rightsize slowed work

our to high expansion taking So that add we'll you the margin the add and for 'XX, when gives the business equity growth drive actions growth in that full that us for the you QX position and leverage confidence we the explicit able are earnings be operating have and that year.

question next RBC. is from Dan The of Perlin

It behind to just wanted do is see the The us. you us that question cash that heavy XX%. XXX% reconcile touch think from help given the about that, base ramping back is, of Anything how to to flow of to back lift I conversion. of conversion? can it cash free we of think here as on kind that's the closer of flow you kind kind pacing about was great getting free kind to

Yes. to first I so thanks, mean Dan, you -- have the call, all. join of good

be here. to Good

peak seen in What the platform uptick lower 'XX is had peak our after going I to it. be would was 'XX, you've of client say beginning that going which We in spend sequential level said from investment XX% QX fiscal through we of that, quarter client decline our and year-over-year was into as in XX% QX, and in continued of to platform QX, down that -- we QX I is the see in saw and expect down QX go XX% QX spend well. as

As cash of up you've flow seen each and XX quarters a last quarters. the conversion in tick the result, X those free two sequentially over points

fiscal 'XX. to client that number what for So as that to give platform continue spend drops, not ready yet is we'll see improvement. exactly We're

I this as QX year -- our fiscal to we -- us high levels as what that entire continue into see gives we'll us we it saying see 'XX. significantly go confidence been is fiscal trend we've 'XX year time And as towards than you 'XX. think the go But into gives trending more historical better

just nice Yes. a quarter, think my a out as XX% great. up a recurring And really it -- That's I was -- is basis. XX%. on follow-up you I'm a pipeline, wondering called

say, I demand this And if the want kind just should are take I'm of them your lot in a So where, most of books you've management? wondering it Is days? are finding alternatives? in Is got they're there. record? anything, good platform. to that or order interest just they towards? Is particular, there sounds gravitating it I'm of things modules wondering, clients the these

to welcome is Yes. Also Dan, this thank to you Good And here. you. also Tim. you very much. call. the Thank have

really in a are calls, that I of as we North their North means that value Star direction on place that along to, are in how call of like terms the the said it we which componentized terms, a as allows the there it, transform -- really evolution clients which way. in create is going take on to and market we're approach, solutions think put to Star really we've past

foundational point in interest client some We solutions strong securities-based other they are existing interest and the things that the have addition for like of and all time. marketing platform, been which in sore of sort the there. multiple that the a components the a things -- firms are relationship seeing industry solutions existing have are actions had, seeing And in onboarding and the to solution. some of of for lending with strong in pipeline -- our we master That's the well. together We're and digital lot demand pulls to as technology, really corporate

So quarter see it's time. really importantly, this but to been more the the is see over how pipeline building growth to nice

Heckmann The next Davidson. question of is from Peter D.A.

had I and if reports tailored to opportunity Broadridge access. some to thoughts on just related revenue any where and see see shareholder might additional of offset the to loss wanted you notice

the very And thank is good going industry think topic. for series And enable of drive Yes, and we a you to innovations reports, good good funds for industry. And has something shareholder important that to very Peter, they're a you and digitization. engagement in investors And it's tailored much. clients. really its know, for by of as we'll and have ultimately valuable that it long the the more makes been undertaken really that Broadridge part investors is deeper

number where has last tailored means revenue Now by because to to maybe the reports dramatically of over number and quarter does as we X,XXX. think funds challenges some these -- talked with share have number from increased. about, it since talked need just go class And -- of one will SKUs they about under it's XXX $XX versions challenges away of fund, that going ourselves about I I reports the that be basically for for million the have of create

industry. So the for a real challenge

creating a what are We is unique solution address that we significantly industry funds that believe really will challenges face. the

print able to combine off, envelope still a distribution out there one still for millions -- print these Instead on creating demand client of savings in mailings to digital, is From an we're eliminates of there's line things something different print inventory, while of unique thousands And funds there. create of that need directly this being print. and X shot. fair envelopes, XX% tens put -- the in a solution standpoint, SKUs XX% of of them tens a really is of that's print X bit postal literally right in receiving a by is a and

And And solution lot so a power creates also -- really in a important really composition. funds that that in. of opposition seeing are is opportunity this then a

really the a And years digitally uniquely composition a the in. something an in or to is having of of help delivered the that's documents, document competitors performed have been has we and delivered. couple competed our are those that of been engine, industry, hasn't we directly But it bought by delivering one many funds been versions same composed solve whether largely ago, and physically of data into problem strongly area composition suited of

And so a by unique putting the solution engine the our unique together this clients. composition really can that with really on print it's for end-to-end simplify demand,

very that been that has clients. combination, to should our So we're reception we be demoing that offset solution The with the we to positive. think or see. we And revenue more able actively end-to-end

can just you kind the flow retirement float? us remind that the remind of mechanics in there the terms what And and is talking insight. just account the That's then And we're it us -- generates about. some I of business of type trading helpful. Helpful of think

Yes. you. Thank

on of of our do the and on And fairly businesses that there their is in trading typically behalf in It's to mutual business, one trading retirement record significant. yes, the does funds the plans working on smaller of float. keeper behalf. fund So generate behalf

rates get And so as benefit we of that. up, the go interest

has effective. extremely team been Our

rates the in XX%. flow-through interest of to something think from has been the us I order

debt that interest that so on go gotten up is we have rates we here. counterbalancing counterbalance been really that we've so as seen a something the has that And the have,

Now that we're positively I'll will to, shift as debt say, certainly, we for pay balance down the as talking us.

is question Peller Darrin The next Wolfe of Research. from

to cash it's the mean fiscal 'XX quarter. progress build-out, talked -- think I conversion, see the So XXX% the look expected I free when the know great you in you get was I at on to side it you to said wealth we last and

about cash of You free years directional any going that may next reticent of the be more in guidance see where we now. terms conversion? in couple But to just say

be scaled out. as a operating maybe sense really as takes now what it done just And that a much that get then mean, now customers Again, you it I lifting, should us better bring And new help business right? it going. of you've Can leverage on new heavy the the just give same on to once bring a you beyond UBS we follow-up business. you on understand us

we platform with wouldn't much, look the been terms as just forward bring conversion be platform start I clients, the And built, have of It's but much -- Darrin, additional build. bringing not has investment expect to us. Yes. let really significant part Obviously, clients and things the going additional me the would second we this, on we in There's data Absolutely. that. on as we the say is X, to lower. investment for like that first. a just

It's dramatically componentized also is a simpler. the since it's -- approach, testing

to regular on investment lot does which more GTO And have margins. so like pretty bring our look business, the will new attractive a clients incremental

expect on we incremental those. do good So margins

your me let wrap in to to topic. me come Let And flow that. cash just free something

number, just So I going none said -- be historic. 'XX. didn't be just XXX% around in we of been be it to will What said we has to is -- clear, it that and and will more historically, us

it's bit committing little now, and little b, that. a cycle it's not equals of for So but early a a transitive to the like property in to too that the we're

the the that as but is to what for capital capital to allocation want attention, on us really that our result return high do call free think it though, cash does really conversion, it allocation And of side. different. be we can I has what unchanged your from been, flow I

growing funding to to rating. high-return on and committed letting then to credit dividend sheet we're committed to shareholders. So We're M&A build making balance the return capital investment-grade a to tuck-in high-value excess up then not investments, internal

X we really as now enter 'XX. we're an with going point on things so And at inflection

historic committed as which to our we for towards more expect return to less debt 'XX, a do paydown. X.Xx means exit we lot first, trending need we're So leverage, free second, cash flow strongly conversion. And

yet, buybacks we capital there, more but get and to return our M&A. when there flexibility historic have when get we're that to we'll which we and therefore, allocation strategic So lot approach not a really share on balances tuck-in there,

mentioned over I high And expect quarter, that drive of last of as to all teens the outcome medium mid- the an we increased to ROIC to term.

that turning we this will sort flow do make page -- and think something do here cash we the think we did want in to people on forward. of going quarter an So point moving a because like we're this emphasis to that

Okay. That's really helpful.

a think of accelerated when at together for, Just growth touch I Crédit what preliminary, you UBS position on and growth I mean, position look did to business? a but then actually, When that And said, is, thoughts the you I it strong like been think about maybe a when Suisse years follow-up. mean, point I mean, quick has obviously means what it on we -- I for normal coming there any rate early equity growth. of now. also. couple want

rates on Or and are relatively what reiterate, over XX months, we I -- And norm levels maybe so do, rates assuming cetera? you guess, stay in -- new savings what depending next just savings we see et unemployment the the think can now?

Sure.

take the hasn't Suisse, has integration closed, piece Crédit its UBS And not clear, plan. the transaction Let completed UBS me be to first.

versus the at first side, does business But not impact Crédit how So all, if of the of States. all this there. a the footprint and X it significant is There's United of the have wealth look very Suisse you little very on in institutions us, lines preliminary. wealth up

to will strategic UBS priority be for grow UBS. that note will I reaffirmed a that wealth U.S. has continuing

continue. no And their seen And wealth that on side, in really that. them terms the on focus so in slowdown doing work we've of the with we're that will

the The capital client side. is you as us of is us know, other is And as side a that market America. the on for not on in may important for market side. North capital UBS things Suisse side an Crédit client

plan And Suisse. that opportunity. certainly said of they that speculation. said in is will so What an size as does UBS they that's business what the be a sort reducing Crédit of they've

but specific it said, that any And to this, to be left. But the try to infrastructure logical and information on that is infrastructure. consolidate I bring for would whatever don't on Broadridge them again, have to

So be think that us. for uptick will modest a we

has a if it have or to a position to we're question from Then we levels year. years, overall as on investors a there, look throughout growth, past the at this would elevated base. question see And a on if two-fold been So of seeing that grow position it pre-pandemic X it's that's new and been that modest wondered it Darrin. as uptick. transaction, bit we'd But to decline growth, positions

now data in with the think we our outlook. feel for in I this confident year, XX% of pretty

about seeing We in small year. anything pretty than do have year early now. year. testing there's continuation half next next that, early make other nothing said, trends part a that that to and on of that, first all indicates the the that we're is But the relatively a of any that reference It's real of

a of and And to a place lift so as new I kinds people free pandemic onetime the of moved think that things. some this other during was sort took the of our conclusion there apps on that fundamental on is trading

from top growth we're of on indexing. before, recently continued more that seeing and direct And discussed the managed long-term base drivers is other I that accounts you have then including new what the and

So we're play that's it of how out. sort seeing

that, have of economic long-term insight We like trends. a more on indicators really little and sort on less focused specific things but just the

The next of is Stanley. Morgan from question James Faucette

on et does how impact be thinking the week? competitors you generally or We the SimCorp acquisition of acquisitions your Appreciate be uses. either over wondering should change allocation to your comments geography just you I'm how to acquisitions. particularly And cetera? on assets expect we past product, previous could by saw how and your thinking that of on and targeting in BTCS return one that about capital or

product, a on Börse a Sure. think you. back-office data we'll I and -- first relatively to We that sort an relative have thank putting plays. coming SimCorp, compete and interesting almost never James, essentially with assets and of their together And all, with Deutsche that how low theory they see about together, us. of that I has is impact SimCorp think,

really with we directly But compete don't them.

I competitive see impact. So it don't any direct

been I think the very little In time this market and somewhat about fortuitous terms think out activity. really it of we been of has that there's market, how that the been we've

I I same think still At months. the that the next time, people or that levels there downturn. some asset activity asset is predicting increased think the despite most are pricing will elevated XX be over pretty

bar of sort And avenue. irrespective being think you see pretty so us of a pretty high with the I selective

owner. We really uniquely we the are of best sort where look for things

the of And were years investment side to on of they opportunities done be the about assets are business. obviously, lot lot ICS for. over you would If past think we've few there side GTO the the of interested we'd of kinds if become a available, the a that that be looking we in on

what on but I you'd think thing, then new see. shareholders. And if not right return that's we'll that's So the

X to from X model of focused our And thing on then that. continue growth points expect the to see to points said, to the could to which if our fit, I'd from add organic was that And drivers. we organic just growth what strategic We we recurring Tim as of is growth said, revenue drive tuck-in only X revenue of find, on, spot right James, have sort we Tim growth. X

Suisse might have it. little relates then drill Got bit updates around I And the that as Crédit UBS, situation, you it want to for any us just to down a ACV. particularly on more

go previously, or run 'XX, around $XXX of have do quarterly that once quarter so first same you in think be targeting in to been you've expect million we live I still the that rate range? fiscal

we of where not or the you based should can opportunities that concrete I guess guess, I before how -- there clear experience, end long there's may moving when I get lot expect a where now. up a more over And previous right or lie? on But and should pieces on view may know

jump Tim and might here. So start, let me in James,

the the fiscal in and are recognize it said quarter -- calendar in of first and on start 'XX. we our remarks, go just in testing to prepared fiscal we now in the year revenue and to complete As this live still with development track

more we when the them, on we'll economics finalize specifics And share plan with that it. rollout of

we'll dilutive will us. As before, of in recognize in 'XX that. It fiscal be we the first revenue to that quarter said

back have As get are a able Tim sales that very the margins accretive rollout. us us seen pipeline. to be on just returns strong at to bring we that in help We'll we've more our said, to very historically to

on that's so UBS. focused more we'll now, what And plans share the we're as and with we finalize

Yes.

thing when as they only the that I are just approach will qualitatively, think shifted I'd add phases, is agile where to be the implementing less we'll will and not comes the than will that able when but and less, number also lay can. we be it less but amortization that UBS more dramatically, be million investment out $XXX be in to and modular this has in on, to revenue it the

JPMorgan. The next is of from Puneet Jain question

macro? delaying Like question like something weak a would that expectations I on pipeline? like decision-making like clients sales, closed the you lowered in like to year. your seeing are attribute a this just the you any, for Like had is

Puneet. Sure, Sure.

to that I to -- stakes they the to clients in continue our prioritize that of news view think many as I is their view business I they think cases, continuing their good part spend. forward. that are technology drive And table think --

And we any so that really conversations. the seen in haven't it's interesting decline volume of

that's issue. so a And of makes this that what is timing believe us more

it's untangle conversations very to just other -- is it Is hard number the macro? the weak continue those. by have? to they it Is us be that we're heartened It's positive. what that of moving for parts But

like the on guidance, expect then guidance the versus internal for contribution growth, for what And growth new contribution? volume, trade the record QX, QX sales should it. implied from we Got

we've in that We and that X Tim balanced in coming year, the across the this few just Puneet, that past balanced not those other business. we've sales other the growth, seen coming revenue. earlier, saw growth to over converting half see but years, half this mentioned backlog, the our items, from to points from of So continued X GTO quarter trading growth position from and historically, growth it

going move expense think mentioned and taken objective big saw able balance forward of I actions side I again, it QX from will contribution continue particular the this coming as ability on well. the you're And to in that I be those we from to points -- management the think QX X a hit X David In that. play earlier, quarter, as role areas to we same into to of as our we've that our to see

turn would This concludes management our question-and-answer like session. conference closing I over remarks. back for the to to

long-term within the as who I against hope, us are and you, for joined you excited those has and progress this the about up Thank how future. you, tell, way sets today. operator, that about can out our and we're year everyone, playing thank us our objectives

results, our on wealth. seeing across are of flow. that markets making governance, of benefits We're cash and progress seeing important strong business businesses of we're in key increasingly the We and of in benefits our milestones really capital our that strategic each the free

you reporting we So very interest to in much for thank consistent the of you in look your meet another you. August. Thank forward Broadridge. to results We strong when and year

now The concluded. you attending presentation. for conference has Thank today's

disconnect. now may You