Broadridge Delivers Strong Quarter Results with 12% YoY Increase in Total Revenues for Q1 FY24

The global Fintech leader Broadridge Financial Solutions, Inc. (Broadridge), published its financial results for the first quarter ended September 30, 2023 of its fiscal year 2024 (Q1 FY24), recording the total revenues of $1,431.1 million, increasing 12% compared to $1,283.3 million in the same period of last fiscal year.

More specifically, recurring revenues were $871.2 million, 8% higher than $805.8 million in the year ago quarter; Event-driven revenues rose by 39% from $62.7 million to $86.9 million on a year-on-year (YoY) basis; distribution revenues rose by 14% from $414.8 million to $473.0 million YoY.

Operating income totaled $148.4 million during the period, up 70% compared to $87.5 million in Q1 FY23. Operating income margin stood at 10.4%, compared to 6.8% in the prior year period. Adjusted operating income came in at $199.3 million, an increase of 33% compared to $150.1 million in the same period of FY23. Adjusted operating income margin stood at 13.9 %, compared to 11.7% for the prior year period.

Net interest expense amounted to $33.4 million, up 24% compared to $26.9 million in Q1 FY23.

The effective tax rate was 19.5% for the period, compared to 9.0% in last fiscal year's Q1.

Net earnings jumped 80.4% from $50.4 million in the year ago quarter to $90.9 million and adjusted net earnings increased by 30% YoY from $99.7 million to $129.6 million. Diluted earnings per share was $0.76, compared to 0.42 in Q1 FY23 and Adjusted earnings per share increased 30% to $1.09, compared to $0.84 in the prior year period.

Tim Gokey, Broadridge of CEO, commented: "Broadridge delivered strong first quarter results, with 8% Recurring revenue growth constant currency, all organic, and 30% Adjusted EPS growth. As part of our balanced capital allocation model, we also repurchased $150 million of our shares. We continue to benefit from strong secular trends and demand for our unique solutions as we work with clients to democratize investing, simplify and innovate trading, and modernize wealth management."

"We are reaffirming our fiscal 2024 guidance, including 6-9% Recurring revenue growth constant currency, 8-12% Adjusted EPS growth, and Closed sales of $280-320 million," Mr. Gokey concluded.