Broadridge Delivers Strong Q2 FY24 Results with Total Revenue of Over $1.4Bn

The global Fintech leader Broadridge Financial Solutions, Inc. (Broadridge), released its financial results for the second quarter ended December 31, 2023 of its fiscal year 2024 (Q2 FY24), reporting a total revenue of $1,405.0 million, increasing 9% compared to $1,292.9 million in the year-ago quarter.

More specifically, recurring revenues $898.8 million, an increase of 7% compared to $840.4 million in the same period of last fiscal year. Event-driven revenues jumped 47% from $37.6 million to $55.2 million on a year-on-year basis (YoY), and distribution revenues rose by 9% from $414.9 million to $450.9 million YoY.

Operating income amounted to $124.4 million during the period, 15% higher than $107.9 million in the same quarter of FY23. The operating income margin came in at 8.9%, compared to 8.3% for the prior year period. While the adjusted operating income was $174.5 million, 1% higher than $173.1 million in Q2 FY23. Adjusted operating income margin stood at 12.4% for the quarter and 13.4% for the year-ago quarter.

Net interest expense totaled $36.3 million, up 6.5% compared to $34.1 million in the same period of FY23.

The effective tax rate was 19.9% for the quarter, compared to 20.0% in the prior year period.

Net earnings increased by 22% from $57.5 million in Q2 of the fiscal 2023 to $70.3 million, and the adjusted net earnings increased by 1% YoY from $108.4 million to $109.6 million.

Diluted earnings per share (EPS) was $0.59, an increase of 23% compared to $0.48 in Q2 FY23. The adjusted EPS was $0.92 for the quarter, compared to $0.91 in the prior year period.

Tim Gokey, Broadridge CEO, commented: "Broadridge's second quarter marks continued progress toward the growth objectives we outlined at our Investor Day in December. Our results, including 6% organic Recurring revenue growth constant currency, demonstrate continued execution on our goals to democratize and digitize governance, simplify and innovate trading in capital markets, and modernize wealth management. Our focus on driving growth and returns is translating into higher Free cash flow and positions us to return additional capital to shareholders."