Broadridge Witnesses Stable Growth in Total Revenues for Q3 FY24

The global Fintech leader Broadridge Financial Solutions, Inc. (Broadridge), released its financial results for the third quarter ended March 31, 2024 (Q3 FY24), unveiling a total revenue of $1,726.5 million, increasing 5% from $1,645.7 million in the same period of last year.

Compared to the year-ago period, recurring revenues rose 4% from $1,082.0 million to $1,126.2 million, event-driven revenues jump 29% from $51.8 million to $67.0 million, and distribution revenues increased from $511.9 million to $533.3 million, up 4% on a year-on-year basis (YoY).

Operating income amounted to $302.9 million for the quarter, an increase of 6% compared to $286.8 million in the same quarter of FY23, while the margin stood at 17.5%, 10 bps higher than 17.4% in the prior year period. The adjusted operating income came in at $369.5 million with margin of 21.4%, increasing 7% compared to $344.8 million with margin of 21.0% in the year-ago quarter.

Net interest expense reported $35.3 million for the three months, down 3% compared to $38.5 million in the same period of last fiscal year.

The effective tax rate was 19.8% compared to 20.6% in the prior year period.

Net earnings increasing 8% from $198.5 million in Q3 FY23 to $213.7 million.

Diluted earnings per share (EPS) was $1.79, rising 7% compared to $1.67 in the prior year quarter, and the adjusted EPS rose 9% YoY from $2.05 to $2.23.

Tim Gokey, Broadridge CEO, commented: "Broadridge reported 4% Recurring revenue growth and 9% Adjusted EPS growth in a quarter that was modestly impacted by the timing of annual meetings. Closed sales rose 29% as we continue to execute on our strategy to democratize and digitize governance, simplify and innovate trading in capital markets, and modernize wealth management.

"Entering our fourth quarter, Broadridge is poised to deliver another year of steady and consistent growth. For fiscal 2024, we expect Recurring revenue growth constant currency at the low end of our 6-9% guidance range and are reaffirming our outlook for Adjusted EPS growth at the middle of our 8-12% range, as well as record Closed sales of $280-320 million. We also expect to deliver on our full year objective of 100% free flow conversion, positioning Broadridge to return additional capital to shareholders while funding tuck-in M&A."