Broadridge Financial Solutions Inc (BR) 2023 Q2 法說會逐字稿

Good day, and welcome to the Broadridge Fiscal Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note the event is being recorded. At this time, I'd like to turn the conference over to Edings Thibo, Head of Investor Relations. Please go ahead.

美好的一天，歡迎來到 Broadridge 2023 財年第二季度收益電話會議。 （操作員說明）請注意正在記錄事件。此時，我想將會議轉交給投資者關係主管 Edings Thibo。請繼續。

Thank you, Allison and good morning, everybody, and welcome to Broadridge's Second Quarter Fiscal Year 2023 Earnings Call. Our earnings release and the slides that accompany this call may be found on the Investor Relations section of broadridge.com. Joining me on the call this morning are Tim Gokey, our CEO; and our CFO, Edmund Reese. Before I turn the call over to Tim, a few standard reminders.

謝謝艾莉森，大家早上好，歡迎來到 Broadridge 的 2023 財年第二季度收益電話會議。我們的收益發布和本次電話會議隨附的幻燈片可在 broadridge.com 的投資者關係部分找到。今天早上和我一起參加電話會議的是我們的首席執行官 Tim Gokey；以及我們的首席財務官 Edmund Reese。在我將電話轉給蒂姆之前，先做一些標準的提醒。

One, we will be making forward-looking statements on today's call regarding Broadridge that involve risks. A summary of these risks can be found on the second page of the slides and a more complete description on our annual report on Form 10-K. Two, we'll also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of Broadridge's underlying operating results.

第一，我們將在今天關於涉及風險的 Broadridge 電話會議上發表前瞻性聲明。這些風險的摘要可以在幻燈片的第二頁找到，更完整的描述可以在我們的 10-K 表格年度報告中找到。第二，我們還將提到一些非 GAAP 指標，我們認為這些指標能讓投資者更全面地了解 Broadridge 的基本經營業績。

An explanation of these non-GAAP measures and reconciliations to the comparable GAAP measures can be found in the earnings release and presentation. With that done, let me now turn the call over to Tim Gokey. Tim?

這些非 GAAP 措施的解釋以及與可比較的 GAAP 措施的對賬可以在收益發布和演示中找到。完成後，讓我現在將電話轉給 Tim Gokey。蒂姆？

Thanks, Edings. Good morning, and thank you for joining us. I'm pleased to be here to review our strong second quarter performance. I'll start with a quick summary of our results and key headlines followed by a review of our business. I'll close with some thoughts on why my recent client meetings have given me even more confidence that Broadridge remains well positioned to grow even in an uncertain market.

謝謝，埃丁斯。早上好，感謝您加入我們。我很高興來到這裡回顧我們強勁的第二季度業績。我將首先快速總結我們的結果和主要頭條新聞，然後回顧我們的業務。我將以一些想法結束，為什麼我最近的客戶會議讓我更加相信 Broadridge 即使在不確定的市場中也能保持良好的發展勢頭。

First, on Slide 3, Broader delivered another strong quarter. Recurring revenues rose 8% on a constant currency basis, with strong growth across both our segments. Adjusted EPS rose 11%, driven by the combination of strong growth and disciplined expense management. Second, this performance highlights the strength and resilience of our business. Clearly, the market backdrop remains uneven. Equity markets rose slightly in the quarter, capping off a year of strongly negative returns.

首先，在幻燈片 3 上，Broader 發布了另一個強勁的季度。在固定匯率基礎上，經常性收入增長了 8%，我們兩個部門都實現了強勁增長。在強勁增長和嚴格的費用管理相結合的推動下，調整後的每股收益增長了 11%。其次，這一表現凸顯了我們業務的實力和韌性。顯然，市場背景仍然不平衡。本季度股市小幅上漲，結束了一年的強勁負回報。

Rates continue to rise. Volatility remained high. Asset managers pulled back on discretionary expenditures and the dollar remained very strong. In the face of this uncertainty, Broadridge's resilient business model with 93% recurring fee revenues continued to perform. Moreover, our long-term business drivers remain healthy. We're benefiting from a strong sales backlog, robust investor participation and significant demand for our digital solutions, which, along with disciplined cost management, are enabling us to drive top and bottom line growth.

利率繼續上漲。波動性仍然很高。資產管理公司縮減了可自由支配的支出，美元仍然非常堅挺。面對這種不確定性，Broadridge 具有 93% 經常性費用收入的彈性商業模式繼續發揮作用。此外，我們的長期業務驅動力保持健康。我們受益於強勁的銷售積壓、強勁的投資者參與以及對我們數字解決方案的巨大需求，再加上嚴格的成本管理，使我們能夠推動收入和利潤的增長。

Third, investor participation in particular, remains at very healthy levels. Broadridge benefited from mid- to high single-digit position growth across both funds and equities. And we expect to see further growth ahead in the second half. Fourth, we are executing on our long-term growth initiatives. We're innovating in governance, including pass-through voting, tailored shareholder reports and digital communications, and we continued our strong momentum in capital markets.

第三，尤其是投資者的參與度保持在非常健康的水平。 Broadridge 受益於基金和股票的中高個位數頭寸增長。我們預計下半年將進一步增長。第四，我們正在執行我們的長期增長計劃。我們正在創新治理，包括通過投票、量身定制的股東報告和數字通信，我們繼續在資本市場保持強勁勢頭。

Fifth and finally, we are reaffirming our guidance for the full year. We continue to expect to deliver 6% to 9% recurring revenue growth, constant currency, expanding margins and 7% to 11% adjusted EPS growth.

第五，也是最後一點，我們重申我們對全年的指導。我們繼續期望實現 6% 至 9% 的經常性收入增長、固定匯率、擴大的利潤率和 7% 至 11% 的調整後每股收益增長。

Now let's turn to Slide 4 for review of our results, beginning with our governance or ICS business, which reported another strong quarter. The biggest driver of our 10% growth in ICS continues to be new sales in our Fund Solutions and Customer communications businesses.

現在讓我們轉到幻燈片 4 來回顧我們的結果，從我們的治理或 ICS 業務開始，該業務報告了另一個強勁的季度。 ICS 業務實現 10% 增長的最大推動力仍然是基金解決方案和客戶通信業務的新銷售額。

Equity position growth remained strong, driven by double-digit growth in managed accounts and mid-single-digit growth in non-managed accounts. Fund position growth while still healthy, slowed to 6% as investors rotated away from the traditional active strategies into ETFs impasses. Looking ahead to the seasonally larger second half of the year, we expect further growth across both equities and funds.

在管理賬戶兩位數增長和非管理賬戶中等個位數增長的推動下，股票頭寸增長依然強勁。基金頭寸增長雖然仍然健康，但由於投資者從傳統的主動策略轉向 ETF 僵局而放緩至 6%。展望季節性較大的下半年，我們預計股票和基金將進一步增長。

Demand for our innovative solutions remains strong as evidenced by significant interest amongst our asset management clients to offer their investors both institutional and retail, choice on how their underlying shares are voted. Just yesterday, we launched a new pilot for individual investors with another leading passive asset manager. And we're in discussions with a number of other fund complexes.

對我們的創新解決方案的需求依然強勁，我們的資產管理客戶對向其機構和散戶投資者提供有關其標的股票如何投票的選擇的濃厚興趣證明了這一點。就在昨天，我們與另一家領先的被動資產管理公司啟動了針對個人投資者的新試點。我們正在與許多其他基金聯合體進行討論。

We're also continuing to work with our fund clients to develop our future road map for tailored shareholder reports, which will fill a critical need for the industry. Beyond our regulatory products, we're seeing strong demand for digital communications with a second major client signing for our wealth and focused platform during the quarter. This omnichannel product suite offers enhanced investor engagement while delivering near-term cost savings through increased digitization of critical communications. That has proven to be a compelling combination for our customer communications clients.

我們還將繼續與我們的基金客戶合作，為量身定制的股東報告製定未來路線圖，這將滿足該行業的迫切需求。除了我們的監管產品外，我們還看到了對數字通信的強勁需求，第二個主要客戶在本季度簽署了我們的財富和重點平台。這個全渠道產品套件增強了投資者的參與度，同時通過提高關鍵通信的數字化程度來節省近期成本。對於我們的客戶通信客戶來說，這已被證明是一個引人注目的組合。

We've been investing steadily in building these capabilities over the past few years, and I'm pleased to see that investment now turning into meaningful revenue with key clients. Turning to capital markets. Recurring revenues rose 12%, driven in part by the continued strong performance of Broadridge Trading and Connectivity Solutions, or BTCS, where our market share gains are driving growth. I was also pleased to see cross-selling start to contribute to new sales as well as we won a new client in the quarter that has long been targeted by BTCS, and that made the decision to switch now based on their trust in Broadridge.

在過去的幾年裡，我們一直在穩步投資建立這些能力，我很高興看到這些投資現在變成了重要客戶的可觀收入。轉向資本市場。經常性收入增長 12%，部分原因是 Broadridge Trading and Connectivity Solutions (BTCS) 的持續強勁表現推動了我們的市場份額增長。我也很高興看到交叉銷售開始為新銷售做出貢獻，並且我們在本季度贏得了 BTCS 長期以來一直瞄準的新客戶，並且基於他們對 Broadridge 的信任而做出現在轉換的決定。

Our other capital markets products also performed well as our themes of simplifying globally, front to back and within the front office are resonating with clients. We also continue to see progress in digital ledger repo with a strong pipeline of discussions with new institutions. Wealth and Investment Management declined year-over-year as positive core growth was offset by lower license revenue.

我們的其他資本市場產品也表現良好，因為我們在全球範圍內、從前到後以及在前台內部進行簡化的主題引起了客戶的共鳴。通過與新機構的大量討論，我們還繼續看到數字分類賬回購取得進展。財富和投資管理同比下降，因為正的核心增長被較低的許可收入所抵消。

We continue to hit key wealth management platform milestones. UBS advisers are transitioning under the latest generation of our workstation with continued very positive feedback. We've now completed development of all 29 platform areas and testing for 26 to 29. We are working closely with the new management at UBS as they refine their approach to rolling out the remainder of the platform and we continue to expect to begin to recognize revenue in mid-calendar '23.

我們繼續達到重要的財富管理平台里程碑。 UBS 顧問正在我們最新一代的工作站下進行過渡，並持續獲得非常積極的反饋。我們現在已經完成了所有 29 個平台區域的開發和 26 到 29 個平台的測試。我們正在與瑞銀的新管理層密切合作，因為他們改進了推出平台其餘部分的方法，我們繼續期望開始認識到23 年中期的收入。

Our sales pipeline is strong. And as Edmund will discuss, our investment levels have decreased as we shift into this new phase. Moving to close sales. Year-to-date closed sales were $94 million. Client engagement around our next-generation technology remains high, and our pipeline entering calendar '23 is stronger than it ever has been. As a result, our sales expectations for fiscal '23 are unchanged. I'll close my remarks on Slide 5.

我們的銷售渠道很強大。正如埃德蒙將討論的那樣，隨著我們進入這個新階段，我們的投資水平有所下降。移動到結束銷售。年初至今的銷售額為 9400 萬美元。圍繞我們的下一代技術的客戶參與度仍然很高，我們進入日曆 '23 的管道比以往任何時候都更強大。因此，我們對 23 財年的銷售預期保持不變。我將結束對幻燈片 5 的評論。

Over the past several weeks, I have met with more than 30 CEO and C-suite clients in North America and Europe. The message from them is clear. They are continuing to push our next-generation technology. They are looking for long-term partners that invest in their business, and they like a componentized approach that creates value along the way. These critical needs are strongly aligned with our strategy and direction. And I'm confident that Broadridge is well positioned for growth in a market that remains uncertain.

在過去的幾周里，我在北美和歐洲會見了 30 多位 CEO 和 C-suite 客戶。他們的信息很明確。他們正在繼續推動我們的下一代技術。他們正在尋找投資於他們業務的長期合作夥伴，並且他們喜歡能夠在整個過程中創造價值的組件化方法。這些關鍵需求與我們的戰略和方向高度一致。而且我相信 Broadridge 能夠在一個仍然不確定的市場中實現增長。

That confidence starts with our strong market positions across all 3 of our franchises based on mission-critical infrastructure we provide that enables corporate governance and power trading and investing and is coupled with our strong track record of innovation and client service. We've invested to bring more value to clients and to meet their need for next-generation technology by building or acquiring critical solutions and adding talent and technology. These investments are playing a key role in driving the strong revenue growth we reported today, and we expect to see over the balance of the year.

這種信心始於我們基於我們提供的關鍵任務基礎設施在我們所有 3 個特許經營中的強大市場地位，這些基礎設施使公司治理和權力交易和投資成為可能，再加上我們在創新和客戶服務方面的良好記錄。我們投資於為客戶帶來更多價值，並通過構建或收購關鍵解決方案以及增加人才和技術來滿足他們對下一代技術的需求。這些投資在推動我們今天報告的強勁收入增長方面發揮著關鍵作用，我們預計將在今年餘下時間看到。

Importantly, we're innovating. As we talked about today, we're continuing to deliver new governance solutions. Our digital communications capabilities are gaining traction in the market. Our BTCS business is helping to drive the growth of our capital markets franchise, and we continue to progress wealth and investment management. By aligning with the long-term needs of our clients, we're attracting a $60 billion market opportunity, and we're scaling into a global fintech leader.

重要的是，我們正在創新。正如我們今天所說，我們將繼續提供新的治理解決方案。我們的數字通信能力在市場上越來越受歡迎。我們的 BTCS 業務正在幫助推動我們資本市場業務的增長，我們將繼續推進財富和投資管理。通過滿足客戶的長期需求，我們吸引了 600 億美元的市場機會，並且我們正在成長為全球金融科技領導者。

In an uncertain market, our resilient business model driven by recurring revenue, client focus and a long track record of disciplined expense management gives us the visibility and confidence to deliver for shareholders. As a result, we're reaffirming our full year guidance for 6% to 9% constant currency recurring revenue growth and 7% to 11% adjusted EPS growth. And in turn, we expect to deliver at or above the higher end of our 3-year objectives. When we do that, it will be the fourth consecutive 3-year period in which we've delivered on our objectives.

在不確定的市場中，我們由經常性收入、客戶關注和嚴格的費用管理記錄驅動的彈性商業模式使我們能夠為股東提供可見性和信心。因此，我們重申了 6% 至 9% 的固定貨幣經常性收入增長和 7% 至 11% 的調整後每股收益增長的全年指導。反過來，我們期望達到或超過我們 3 年目標的更高端。當我們這樣做時，這將是我們實現目標的連續 3 年期。

Finally, we're past the peak investment period in our platform solutions. Positioning us to begin to return to a more historical strong free cash flow conversion and giving us additional flexibility to drive returns for our shareholders. In sum, Broadridge is delivering on the growth plan we shared at our last Investor Day. I want to close by thanking our associates. The work Broadridge does is important and makes a difference for millions of investors.

最後，我們已經過了平台解決方案的投資高峰期。使我們能夠開始恢復到歷史上更強勁的自由現金流轉換，並為我們提供更多的靈活性來為股東帶來回報。總之，Broadridge 正在實現我們在上一個投資者日分享的增長計劃。最後，我想感謝我們的同事。 Broadridge 所做的工作很重要，對數百萬投資者產生了影響。

None of it will be possible without our associates' talent, knowledge and effort which enables us to deliver exceptional products and service at scale for our clients and for our clients' clients. So thank you. Now I'll turn the call over to Edwin for a review of our financials.

沒有我們員工的才能、知識和努力，這一切都不可能實現，這使我們能夠為我們的客戶和我們客戶的客戶提供大規模的卓越產品和服務。所以謝謝。現在我會把電話轉給埃德溫，讓他審查我們的財務狀況。

Thank you, Tim. And good morning, everyone. I'm pleased to share the results from another strong quarter where recurring revenue growth and continued disciplined expense management drove double-digit adjusted EPS growth even in the challenging macroeconomic environment. We continue to see organic recurring revenue growth from converting our sales backlog to revenue and healthy position growth.

謝謝你，蒂姆。大家早上好。我很高興分享另一個強勁季度的結果，即使在充滿挑戰的宏觀經濟環境中，經常性收入增長和持續嚴格的費用管理也推動了兩位數的調整後每股收益增長。我們繼續看到有機的經常性收入增長，將我們的銷售積壓轉化為收入和健康的職位增長。

This performance in Q2 and the continued execution of our strategy gives us the confidence to reaffirm our fiscal '23 guidance. As you can see from the financial summary on Slide 6, recurring revenues rose to $840 million, up 8% on a constant currency basis, all organic. Adjusted operating income increased 23% as we lapped elevated investment in fiscal '22 and realize the benefit from targeted cost actions that we initiated in Q4 '22, both of which more than offset the impact of the lower event-driven revenue.

第二季度的這一表現以及我們戰略的持續執行讓我們有信心重申我們的 23 財年指導方針。正如您從幻燈片 6 的財務摘要中看到的那樣，經常性收入增長到 8.4 億美元，按固定匯率計算增長 8%，而且都是有機收入。調整後的營業收入增長了 23%，因為我們在 22 財年增加了投資，並實現了我們在 22 年第四季度啟動的有針對性的成本行動帶來的好處，這兩者都抵消了較低的事件驅動收入的影響。

AOI margins of 13.4% expanded 220 basis points, and adjusted EPS rose 11% to $0.91. Finally, we delivered closed sales of $65 million. I'll note that the operating income growth is being offset by lower discrete tax items in Q2 '23 and interest rates. On taxes, we continue to project an overall tax rate of 21% for fiscal '23.

AOI 利潤率為 13.4%，擴大了 220 個基點，調整後每股收益增長 11% 至 0.91 美元。最後，我們完成了 6500 萬美元的銷售額。我會注意到營業收入增長被 23 年第二季度較低的離散稅項和利率所抵消。在稅收方面，我們繼續預計 23 財年的總體稅率為 21%。

And I'll remind you that while higher interest expense partially offsets operating income growth, the interest rate impact at the Broadridge level is fully offset by higher float income in our ICS segment. Let's give in the details of Q2 results, starting with recurring revenue on Slide 7. Recurring revenue grew 8% to $840 million in Q2 '23, marking a second consecutive quarter near the higher end of our full year guidance range of 6% to 9%. Our recurring revenue growth was all organic, again, keeping us on track to exceed our 5% to 7% 3-year growth objective.

我會提醒您，雖然較高的利息支出部分抵消了營業收入的增長，但 Broadridge 級別的利率影響完全被我們 ICS 部門較高的浮動收入所抵消。讓我們詳細介紹第二季度的業績，從幻燈片 7 的經常性收入開始。23 年第二季度的經常性收入增長 8% 至 8.4 億美元，這是連續第二個季度接近我們全年指導範圍 6% 至 9 的較高端%。我們的經常性收入增長都是有機的，再次使我們有望超過 5% 至 7% 的 3 年增長目標。

Let's turn now to Slide 8 to look at the growth across our ICS and GTO segments. We continue to see growth in both of our segments. ICS recurring revenues grew 10%, all organic to $467 million, with regulatory at 9% and double-digit growth across all other product lines. The 9% increase to $181 million in regulatory revenue was driven by continued growth in equity and fund positions. Data-Driven Fund Solutions revenue grew 11% to $96 million, propelled by revenue from sales in our data and analytics products and higher float revenue in our mutual fund trade processing unit.

現在讓我們轉到幻燈片 8，看看我們的 ICS 和 GTO 細分市場的增長情況。我們繼續看到我們兩個部門的增長。 ICS 經常性收入增長 10%，全部有機增長至 4.67 億美元，監管增長 9%，所有其他產品線均實現兩位數增長。監管收入增長 9% 至 1.81 億美元，這得益於股票和基金頭寸的持續增長。數據驅動基金解決方案收入增長 11% 至 9600 萬美元，這得益於我們的數據和分析產品銷售收入以及共同基金交易處理部門更高的浮動收入。

Our Issuer business revenue increased 12% to $27 million, led by growth in our registered shareholder solutions. Finally, we continue to benefit from strong demand in our Customer Communications business where recurring revenues rose 11% to $163 million, driven by new client wins in print and growth in our higher-margin digital business.

我們的發行人業務收入增長了 12%，達到 2700 萬美元，這主要得益於我們的註冊股東解決方案的增長。最後，我們繼續受益於我們的客戶通信業務的強勁需求，該業務的經常性收入增長 11% 至 1.63 億美元，這主要得益於印刷業務贏得新客戶以及我們利潤率較高的數字業務的增長。

Turning to GTO. Recurring revenues grew to $373 million or 6%, driven by new sales and continued strength in our capital markets, including BTCS, Capital Markets revenues grew 12% to $235 million, again propelled by strong growth from BTCS, new sales and higher fixed income trading volumes.

轉向GTO。經常性收入增長至 3.73 億美元或 6%，受新銷售額和我們資本市場（包括 BTCS）持續強勁的推動，資本市場收入增長 12% 至 2.35 億美元，再次受到 BTCS 強勁增長、新銷售額和更高的固定收益交易的推動卷。

Wealth and Investment Management revenues declined by 3% to $138 million. Growth from sales was offset by a decline in license revenue as we grew over a large client renewal from Q2 '22. As a reminder, license revenues can impact quarterly revenue growth, and we expect to grow over impact in Q3 for Capital Markets and in Q4 for Wealth Management. Looking forward, we expect GTO full year organic growth to be within our targeted 5% to 7% range.

財富和投資管理收入下降 3% 至 1.38 億美元。銷售增長被許可收入的下降所抵消，因為我們在 22 年第二季度的大客戶續約中取得了增長。提醒一下，許可收入會影響季度收入增長，我們預計第三季度資本市場和第四季度財富管理的影響會增長。展望未來，我們預計 GTO 全年有機增長將在我們設定的 5% 至 7% 的目標範圍內。

Now let's turn to Slide 9 for a closer look at volume trends.

現在讓我們轉到幻燈片 9 來更仔細地了解成交量趨勢。

We had solid position growth for both equities and funds. As you can see by our results, investor participation in financial markets has remained steady despite market volatility. And we continue to be encouraged by this long-term tailwind. Equity position growth of 9% was driven by continued double-digit growth in managed accounts. Looking to the seasonally larger second half our testing continues to show mid-single-digit growth. And with those results, we continue to expect equity position growth in the mid- to high single-digit range for the full year.

我們的股票和基金頭寸均有穩健增長。正如您從我們的結果中看到的那樣，儘管市場波動，但投資者對金融市場的參與度一直保持穩定。我們繼續受到這種長期順風的鼓舞。受管理賬戶持續兩位數增長推動，股票頭寸增長 9%。展望季節性較大的下半年，我們的測試繼續顯示中個位數增長。鑑於這些結果，我們繼續預計全年的股票頭寸增長將在中高個位數範圍內。

Mutual fund position growth moderated from Q1 '23 levels, but still grew 6%, largely driven by the growth in passive funds. We expect to see continued mid-single-digit growth in the second half. Turning now to trade volumes on the bottom of the slide. Trade volumes grew 5% on a blended basis in Q2 driven by double-digit fixed income volume growth and modest equity volume growth as continued higher trading by institutional investors more than offset the lower activity at our retail wealth management clients. As we lap a strong Q4 '22, we continue to expect full year trading volume growth to be essentially flat for the year.

共同基金持倉增長較 23 年第一季度有所放緩，但仍增長 6%，主要受被動基金增長的推動。我們預計下半年將繼續保持中個位數增長。現在轉向幻燈片底部的交易量。在固定收益交易量兩位數增長和股票交易量適度增長的推動下，第二季度交易量混合增長了 5%，機構投資者交易量的持續增加抵消了我們零售財富管理客戶活動的減少。隨著我們在 22 年第四季度表現強勁，我們繼續預計全年交易量增長基本持平。

Let's now move to Slide 10, where we summarize the drivers of recurring revenue growth. Recurring revenue growth of 8% was all organic. And this organic growth was balanced between net new business and internal growth. Revenue from closed sales and our continued high retention from existing customers contributed 4 points and internal growth primarily positioned growth in trading volumes also contributed 4 points. Foreign exchange impacted recurring revenue by 2 points with the bulk of that impact coming in our GTO business, as you can see in the table on the bottom of the slide.

現在讓我們轉到幻燈片 10，我們在其中總結了經常性收入增長的驅動因素。 8% 的經常性收入增長都是有機的。這種有機增長在淨新業務和內部增長之間取得了平衡。來自已結束銷售的收入和我們現有客戶的持續高保留率貢獻了 4 個百分點，內部增長主要定位於交易量的增長也貢獻了 4 個百分點。正如您在幻燈片底部的表格中看到的那樣，外匯對經常性收入產生了 2 個百分點的影響，其中大部分影響來自我們的 GTO 業務。

I'll finish the discussion on revenue with a view of total revenue on Slide 11. Total revenue grew 3% in Q2 to $1.3 billion, with recurring revenue being the largest contributor driving 4 points of growth. Event-driven revenue was down $27 million from the prior year and was a headwind of 2 points as mutual fund proxy activity slowed to a historically low level, the lower mutual fund proxy activity is driven by the timing of fund and ETF board elections as funds reacted to the combination of weaker markets and record withdrawals. Board elections for these funds may be pushed back from time to time, but they are not an optional activity and over the long term, event-driven revenue will grow in line with fund and ETF position growth.

我將以幻燈片 11 的總收入來結束對收入的討論。第二季度總收入增長 3% 至 13 億美元，經常性收入是推動 4 個增長點的最大貢獻者。由於共同基金代理活動放緩至歷史低位，事件驅動的收入較上年下降 2700 萬美元，逆風下降 2 個百分點，較低的共同基金代理活動是由基金和 ETF 董事會選舉的時間推動的對疲軟的市場和創紀錄的提款組合做出反應。這些基金的董事會選舉可能會不時推遲，但它們不是一項可選活動，從長遠來看，事件驅動的收入將隨著基金和 ETF 頭寸的增長而增長。

Looking ahead to the second half of fiscal '23, we expect the combination of higher contest activity and lower mutual fund activity will have us trending towards the low end of the $240 million to $260 million range that we've seen in recent years. Low to no margin distribution revenues increased by 3% and contributed 1 point to total revenue growth as the higher volumes in customer communications and the impact of the July postal rate increases offset lower event-driven activity.

展望 23 財年下半年，我們預計較高的競賽活動和較低的共同基金活動將使我們趨向於我們近年來看到的 2.4 億美元至 2.6 億美元範圍的低端。低利潤或無利潤的分銷收入增長了 3%，並為總收入增長貢獻了 1 個百分點，因為客戶通信量的增加和 7 月郵政費率上漲的影響抵消了事件驅動活動的減少。

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

我們繼續預計全年的分銷收入將實現兩位數增長。我要重申，7 月和 1 月郵政費率上漲以及更高的客戶通信量導致分銷收入增加，對我們報告的調整後營業收入利潤率產生了稀釋影響。

Turning now to margins on Slide 12. Adjusted operating income margin for Q2 '23 was 13.4%, a 220 basis points improvement over Q2 '22 and driven by the operating leverage in our business. Higher float income, continued disciplined expense management and the impact of targeted cost actions that we initiated at the end of Q4 '22. Our progress through Q2 gives us increased confidence that we will be able to offset inflation and FX impacts and deliver on our margin expansion objective of approximately 50 basis points for fiscal '23.

現在轉向幻燈片 12 的利潤率。23 年第二季度的調整後營業收入利潤率為 13.4%，比 22 年第二季度提高了 220 個基點，這受到我們業務運營槓桿的推動。更高的浮動收入、持續嚴格的費用管理以及我們在 22 年第四季度末發起的有針對性的成本行動的影響。我們在第二季度取得的進展使我們更有信心，我們將能夠抵消通貨膨脹和外匯影響，並實現我們在 23 財年實現約 50 個基點的利潤率擴張目標。

Let's move ahead to closed sales on Slide 13. Second quarter closed sales of $65 million which brings our year-to-date total to $94 million, that's 16% off of H1 '22. Strong ICS sales in the quarter were powered by the large digital wealth and focused sales that Tim mentioned earlier. As a reminder, closed sales are historically weighted towards the fourth quarter. And given our robust pipeline, we remain on track to achieve our full year closed sales guidance of between $270 million to $310 million.

讓我們繼續看幻燈片 13 上的結束銷售額。第二季度結束銷售額為 6500 萬美元，這使我們今年迄今的總銷售額達到 9400 萬美元，比 22 年上半年減少了 16%。本季度強勁的 ICS 銷售得益於 Tim 之前提到的大量數字財富和集中銷售。提醒一下，歷史上已結束的銷售集中在第四季度。鑑於我們強大的管道，我們仍然有望實現 2.7 億美元至 3.1 億美元的全年銷售目標。

I'll turn now to cash flow and capital allocation on Slide 14. I'll start with a reminder that Broadridge's cash flow generation is typically negative in the fiscal first quarter and strengthens over the course of the year. And we're seeing that trend play out again this year.

現在我將轉向幻燈片 14 上的現金流和資本配置。我首先要提醒一下，Broadridge 的現金流產生在第一財季通常為負，並在一年中加強。今年我們又看到了這種趨勢。

Q2 '23 free cash flow improved to $104 million, up 276% from $28 million last year. Free cash flow conversion calculated as free cash flow over adjusted net earnings was up 10 points over last year to 51% driven by operating cash flow improvement. This improvement was the product of higher earnings, strong working capital management and most notably, a year-over-year and sequential decline in the level of client platform spend as we expected.

23 年第二季度的自由現金流增加到 1.04 億美元，比去年的 2800 萬美元增長了 276%。自由現金流轉換計算為自由現金流與調整後淨收益的比值比去年上升 10 個百分點，達到 51%，這得益於經營現金流的改善。這一改善是收益增加、營運資本管理強勁的產物，最值得注意的是，正如我們預期的那樣，客戶平台支出水平同比連續下降。

Total client platform spent for Q2 '23 was $78 million, a reduction from last year's $154 million and less than half of the Q1 '23 level of $163 million. The wealth platform accounted for the majority of the investment in the quarter and the lower spend is a strong indicator of our progress in completing the development of that project. As we remain on track to recognize revenue on the wealth platform in mid calendar '23, we expect client platform spending to continue to be lower than last year.

23 年第二季度的客戶平台總支出為 7800 萬美元，低於去年的 1.54 億美元，不到 23 年第一季度 1.63 億美元水平的一半。財富平台佔本季度投資的大部分，較低的支出是我們在完成該項目開發方面取得進展的有力指標。由於我們仍有望在 23 年中期確認財富平台的收入，我們預計客戶平台支出將繼續低於去年。

Keeping us on track to deliver free cash flow conversion that is higher than fiscal '22. We remain confident that we will return to more historical levels of free cash flow conversion in fiscal year '24.

讓我們走上正軌，提供高於 22 財年的自由現金流轉換。我們仍然相信，我們將在 24 財年恢復到更多歷史水平的自由現金流轉換。

On Slide 15, you see that the client platform spend is our most significant use of cash and that we continue to return capital to our shareholders through the dividend.

在幻燈片 15 上，您可以看到客戶平台支出是我們最重要的現金使用，我們將繼續通過股息向股東返還資本。

Let's turn now to Slide 16 to review our fiscal year '23 guidance, followed by some final thoughts on the second quarter results.

現在讓我們轉到幻燈片 16 來回顧我們的 23 財年指南，然後是對第二季度業績的一些最終想法。

We are reaffirming our full year guidance on all of our key financial metrics. We continue to expect 6% to 9% constant currency recurring revenue growth driven by healthy growth across ICS and GTO. Approximately 50 basis points of adjusted operating income margin expansion and adjusted EPS growth in the 7% to 11% range and closed sales between $270 million to $310 million. And before I move on from guidance, let me briefly discuss our second half outlook, which is embedded in that full year guidance.

我們重申我們對所有關鍵財務指標的全年指導。在 ICS 和 GTO 的健康增長的推動下，我們繼續預計 6% 至 9% 的固定貨幣經常性收入增長。調整後營業利潤率擴大約 50 個基點，調整後每股收益增長 7% 至 11%，銷售額在 2.7 億美元至 3.1 億美元之間。在我繼續指導之前，讓我簡要討論一下我們下半年的展望，它包含在全年指導中。

We expect Q3 adjusted EPS growth to be in the low to mid-single-digit range as the impact of continued recurring revenue growth is partially offset by lower capital markets license revenue. We expect adjusted EPS growth to be higher in the seasonally larger fourth quarter as we recognize the benefit of growth in our proxy business and the timing of investments.

我們預計第三季度調整後的每股收益增長將處於中低個位數範圍內，因為持續的經常性收入增長的影響被較低的資本市場許可收入部分抵消。我們預計調整後的每股收益增長在季節性較大的第四季度會更高，因為我們認識到代理業務增長的好處和投資時機。

Finally, let me reiterate my key messages. Broadridge delivered strong Q2 financial results. Demand for our mission-critical technology is strong, and our testing is showing continued equity and fund position growth in a seasonally larger second half of the fiscal year.

最後，讓我重申我的關鍵信息。 Broadridge 公佈了強勁的第二季度財務業績。對我們的關鍵任務技術的需求強勁，我們的測試顯示本財年下半年季節性較大的股票和基金頭寸持續增長。

We are now past the peak period of investment and again, driving strong free cash flow in Q2 '23, and we continue to expect our client platform spend to be lower than last year, resulting in improved free cash flow conversion in fiscal '23 and a return to a more historical conversion level in fiscal '24. We have a resilient business and financial model with a proven track record of performance through the economic cycle when we are reaffirming our fiscal year '23 guidance. With that, let's take your questions. Operator?

我們現在已經過了投資高峰期，再次推動了 23 年第二季度的強勁自由現金流，我們繼續預計我們的客戶平台支出將低於去年，從而改善 23 財年的自由現金流轉換和在 24 財年回歸到更具歷史意義的轉換水平。當我們重申我們的 23 財年指導方針時，我們擁有一個有彈性的業務和財務模型，在整個經濟周期中都有良好的業績記錄。有了這個，讓我們回答你的問題。操作員？

We will now begin the question-and-answer session. (Operator Instructions) And our first question today will come from David Togut of Evercore ISI.

我們現在開始問答環節。 （操作員說明）我們今天的第一個問題將來自 Evercore ISI 的 David Togut。

I'll ask my question and follow-up together upfront. First, both Tim and Edmund, you reiterated your view that you'll recognize revenue from the UBS contract in mid-calendar 2023, what does the annualized revenue and profit run rate look like from that contract kind of once you're up and running?

我會提前提出我的問題並一起跟進。首先，Tim 和 Edmund，你們重申了你們的觀點，即你們將在 2023 年日曆中期確認來自 UBS 合同的收入，一旦你們啟動並開始運營，這種合同的年化收入和利潤運行率會是什麼樣子？

And I'm sorry, was that the follow-up as well, David?

對不起，大衛，這也是後續行動嗎？

That's the first question. The second question is really the guide to decelerating stock record growth in the second half to mid-single digit from 9%. What's behind the deceleration in stock record growth in the back half?

這是第一個問題。第二個問題實際上是將下半年股票創紀錄的增長率從 9% 降至中等個位數的指南。下半年股票創紀錄增長放緩的原因是什麼？

Okay. Perfect.

好的。完美的。

Maybe I'll start off with the first question. David, thanks for the question. I mentioned on our last call in Q1 -- for Q1 '23 in November that we expected the annualized revenue on the existing and in-flight contracts that we're working on to be roughly $100 million and the amortization associated with all of the build and conversion cost to be roughly about $65 million.

也許我將從第一個問題開始。大衛，謝謝你的提問。我在第一季度的最後一次電話會議上提到——對於 23 年 11 月的第一季度，我們預計我們正在處理的現有合同和飛行合同的年化收入約為 1 億美元，以及與所有構建相關的攤銷轉換成本約為 6500 萬美元。

We continue, as I said in my prepared remarks, to expect to recognize revenue in mid-calendar '23, this will not be at the full annualized amount that I just mentioned and that we shared in November. The fiscal '24 specific amount will be subject to the rollout approach that UBS has and will have a more definitive view of what those near-term economics are when we finalize those plans. And as we've previously mentioned, I'll go on to say that we do expect it to be dilutive to margins, but we can offset that and continue to deliver margin expansion.

正如我在準備好的發言中所說，我們繼續期望在 23 年中期確認收入，這不會達到我剛才提到的和我們在 11 月分享的全部年化金額。 24 財年的具體金額將取決於瑞銀採用的推出方法，並且在我們最終確定這些計劃時，將對這些近期經濟狀況有更明確的看法。正如我們之前提到的，我會繼續說我們確實預計它會稀釋利潤率，但我們可以抵消這一點並繼續擴大利潤率。

I think the important thing, as we mentioned -- we both mentioned in our prepared remarks is that we're now past that peak period of investment and expect to return to more historical free cash flow and be able to deliver on our long-term financial objectives. Tim, I'll maybe turn it to you for the second component.

我認為重要的是，正如我們提到的——我們在準備好的發言中都提到，我們現在已經過了投資的高峰期，並期望恢復到歷史上更多的自由現金流，並能夠實現我們的長期目標財務目標。蒂姆，我可能會把它交給你來做第二部分。

Yes. And I think just to reiterate, I think Edmund said was right. And David, the really -- for us, this is something we continue to be really excited about in terms of the broader $16 billion opportunity in wealth management and how this positions us. And as we look at the components that we've created for UBS and how we are now able to show those to other clients as live software, that makes a real difference in the other sales discussions which is why we're seeing a building sales pipeline, not for other transformational deals, but for a series of components. So we feel good about that.

是的。我想重申一下，我認為埃德蒙說的是對的。大衛，真的 - 對我們來說，就財富管理領域更廣泛的 160 億美元機會以及這對我們的定位而言，這是我們繼續感到非常興奮的事情。當我們查看我們為瑞銀創建的組件以及我們現在如何將這些組件作為實時軟件展示給其他客戶時，這對其他銷售討論產生了真正的影響，這就是我們看到建築銷售的原因管道，不是針對其他轉型交易，而是針對一系列組件。所以我們對此感覺很好。

Turning to the second part of your question. Or the follow-up question on our guide for the second half of the year in terms of stock record growth. I think, clearly, we have been at quite elevated levels of stock record growth over the past couple of years, well above historic sort of mid-single-digit norms. And last year, really despite a 20% decline in the market, investor participation remained very healthy with very good growth. So we can't really predict the market. But given its ups and downs, our best indicator is really our forward testing.

轉向問題的第二部分。或者關於我們下半年股票創紀錄增長指南的後續問題。我認為，很明顯，在過去幾年中，我們的股票增長一直處於相當高的水平，遠高於歷史上的中個位數標準。去年，儘管市場下跌了 20%，但投資者的參與仍然非常健康，增長非常好。所以我們無法真正預測市場。但考慮到它的起伏，我們最好的指標實際上是我們的前瞻性測試。

And that really gives us very good visibility into Q3 and pretty solid visibility into Q4. And really is based on that testing that we expect to see mid- to high single-digit growth in the second half of the year. A little bit stronger for equities than for funds, but I think collectively, call it, mid- to high single digits. And we do think the fact that it's not sort of going back to levels of a couple of years ago, sort of not the growth rate, but the overall level really underscores a fundamental lift that has taken place driven by free trading, app-based investing, younger investors being involved in the market.

這確實讓我們對第三季度有了很好的了解，對第四季度也有了非常可靠的了解。並且確實基於我們預計在今年下半年看到中高個位數增長的測試。股票比基金強一點，但我認為總體而言，稱之為中高個位數。我們確實認為，它並沒有回到幾年前的水平，不是增長率，但總體水平確實突顯了由基於應用程序的自由交易驅動的根本性提升投資，年輕投資者參與市場。

And that sort of onetime effect is then building on the continued growth driven by longer-term trends, including growth in managed accounts and more recently, direct indexing.

這種一次性效應隨後建立在長期趨勢推動的持續增長之上，包括管理賬戶的增長和最近的直接指數化。

And David, I'd just add to Tim's point. Again, equity position growth of 9% is flat to last year and the testing that Tim just mentioned continues to be in line with what our expectations were in our original guidance and what we have as well at that mid- to high single-digit level. So we are reaffirming our guidance and outlook on that.

大衛，我想補充一下蒂姆的觀點。同樣，股票頭寸增長 9% 與去年持平，蒂姆剛才提到的測試繼續符合我們在最初指導中的預期以及我們在中高個位數水平上的預期.因此，我們重申我們對此的指導和展望。

And again, the same thing with the fund position growth as well. You saw a little bit of a deceleration sequentially in that. But again, we said mid- to high single-digits, and we still expect that level to play out.

同樣，基金頭寸增長也是如此。你看到了一點點的減速。但同樣，我們說的是中高個位數，我們仍然希望這個水平能夠發揮作用。

And our next question today will come from Peter Heckmann of D.A. Davidson.

我們今天的下一個問題將來自 D.A. 的 Peter Heckmann。戴維森。

I wanted to see if you had any thoughts about where we are in the process of moving to direct indexing. It still seems fairly early. But conceptually, could we see managed accounts and direct indexing continue to generate really interesting growth that leads to strong growth in equity positions, but potentially fund positions continuing to slow down and if you -- if that could be the case, how do you think about the -- any relative change in economics due to mix shift?

我想看看您是否對我們在轉向直接索引的過程中所處的階段有任何想法。現在看來還早。但從概念上講，我們能否看到管理賬戶和直接指數化繼續產生真正有趣的增長，從而導致股票頭寸的強勁增長，但基金頭寸可能繼續放緩，如果你 - 如果是這種情況，你如何看待關於 - 由於混合轉變而導致的經濟相對變化？

Yes. Thanks, Peter. It's Tim. I do think that this is one of those things, it's the latest in a long series of investment product innovations that have help drive sort of the broad trend that we call the democratization of investors on top of things we're all familiar with, like 401(k)s and IRAs and ETFs and managed accounts. It's pretty early days.

是的。謝謝，彼得。是蒂姆。我確實認為這是其中之一，它是一系列投資產品創新中的最新成果，這些創新有助於推動我們稱之為投資者民主化的廣泛趨勢，比如我們都熟悉的事情401(k)s、IRA、ETF 和管理賬戶。現在還很早。

I think it is even too early to really sort of pick it up in the numbers, you sort of begin to see it as a sort of like the barest of breezes if you're trying to sort of talk about tailwinds. And I do think it's one of those things that could gain traction. There's a lot of benefits for investors in it relative to tax efficiency. So not a big driver today. I think of it as not necessarily something that is going to lead to a -- I'd like to be here telling you it's going to lead to some sort of fundamental change in the growth trajectory.

我認為現在真正從數字中發現它還為時過早，如果你想談論順風，你就會開始將它視為一種微風。我確實認為這是可能獲得牽引力的事情之一。相對於稅收效率，投資者在其中有很多好處。所以今天不是一個大司機。我認為它不一定會導致 - 我想在這裡告訴你它會導致增長軌跡發生某種根本性的變化。

I think it is something that just really supports the long-term trends that we've seen. And if we see it begin to have a real measurable effect, and we'll begin to talk about it and break it out. But we're not seeing it really as an independent thing yet, but we are seeing it as one of the things that gives us confidence in the long term.

我認為這是真正支持我們所看到的長期趨勢的東西。如果我們看到它開始產生真正可衡量的效果，我們將開始討論它並打破它。但我們還沒有真正將其視為獨立的事物，但我們將其視為讓我們長期充滿信心的事物之一。

Okay. That's fair. And then just on the Secure 2.0 legislation. Can you just remind us that the portions of the business related to retirement plans at Broadridge and how you see that potentially being a tailwind for continued growth in retirement plan participants.

好的。這還算公平。然後就是關於 Secure 2.0 的立法。您能否提醒我們，Broadridge 的部分業務與退休計劃有關，以及您如何看待這可能成為退休計劃參與者持續增長的順風。

Yes. I'll let Edmund add on to this, but Retirement is not a huge direct part of our business. We do serve all of the retirement record keepers in their client onboarding. And then we serve a lot of the 401(k) market in our mutual fund trade processing. So we have a couple of our smaller businesses that directly serve. And then obviously, it's a big factor for all of our wealth management clients. It's a big portion of wealth management.

是的。我會讓 Edmund 補充一點，但退休並不是我們業務的直接重要組成部分。我們確實在客戶入職時為所有退休記錄保管員提供服務。然後我們在共同基金交易處理中為很多 401(k) 市場提供服務。因此，我們有幾個直接服務的小型企業。然後很明顯，這對我們所有的財富管理客戶來說都是一個重要因素。這是財富管理的很大一部分。

So we don't see a -- I'm not sure that we're going to be sitting here a year from now saying we have a significant change in growth because of this, but it is something that is going to put more money directly into investing, help our clients, help their ability to invest, and I think will be generally a tailwind for a couple of our smaller businesses.

所以我們沒有看到——我不確定一年後我們是否會坐在這裡說我們的增長因此發生了重大變化，但這會投入更多資金直接投資，幫助我們的客戶，提高他們的投資能力，我認為這對我們的一些小企業來說通常是順風。

Yes. And the only thing I'll add to what Tim said is that we do have in our mutual fund trade processing unit economics driven by assets under administration and retirement accounts. And if this legislation goes through and we see the increase in the amount of retirement accounts and assets, then we should expect to see some uptick in those assets as well. So overall, I think while small right now, this is generally a tailwind for us, and we'll be more specific about the economics as it plays out.

是的。我唯一要補充的是蒂姆所說的是，我們的共同基金交易處理單位經濟確實由管理資產和退休賬戶驅動。如果這項立法獲得通過，我們看到退休賬戶和資產的數量增加，那麼我們應該會看到這些資產也有所增加。所以總的來說，我認為雖然現在規模很小，但這對我們來說通常是一個順風，我們會在經濟發展時更加具體。

Our next question today will come from Darrin Peller of Wolfe Research.

我們今天的下一個問題將來自 Wolfe Research 的 Darrin Peller。

I wanted to touch base on -- we always have this seasonal pickup in the second half for bookings for closed sales that we have to prepare for, which is honestly sort of to be expected. I think you guys were around 20% to 20% -- maybe 21%, 22% of your budgeted bookings in this quarter, which is, again, seasonally normal. So maybe just make sure we get a little more color on what the actual drivers are of your conviction on the pipeline and what parts of the business they're coming from for the second half of the year to meet those targets that you guys have for the full year.

我想談談——我們總是在下半年有這種季節性的回升，用於我們必須準備的已結束銷售的預訂，老實說，這是可以預料的。我認為你們在本季度的預算預訂量中大約佔 20% 到 20%——也許是 21%、22%，這又是季節性正常的。因此，也許只是確保我們對您對管道的信念的實際驅動因素以及下半年他們來自業務的哪些部分以實現你們的目標有更多的了解整年。

And just as a part of that, I mean, how much conviction do you have now? And are you seeing any of those numbers flow through to the wealth side coming out of -- again, I know the UBS contract will be up and running and -- but it's not going to be very profitable. So it's really relying on other contracts and other revenues to complement that platform. Are you seeing any evidence of that yet?

作為其中的一部分，我的意思是，你現在有多少信念？你是否看到這些數字中的任何一個流向財富方面 - 再一次，我知道瑞銀合同將啟動並運行 - 但它不會非常有利可圖。所以它真的依賴其他合同和其他收入來補充該平台。你看到任何證據了嗎？

Yes, Darrin. I'll start and Edmund can add on. I think as you say, where we are right now is seasonally at a very normal place. And when we look at our pipeline and then sort of the stages of deals in the pipeline for the second half, it is very similar to previous years in terms of the coverage of deals in -- for the second half and their stage of maturity.

是的，達林。我先開始，Edmund 可以補充。我認為正如您所說，我們現在所處的位置是季節性的，非常正常。當我們查看我們的管道，然後對下半年管道中的交易階段進行排序時，就下半年的交易覆蓋範圍及其成熟階段而言，它與往年非常相似。

So as we reiterate today, that's really what we're looking at. Specifically on the wealth side, we said in the call last time that our pipeline is up 25% year-over-year. It's not to the stage where we're beginning to see it in the sales numbers as much as it is sort of in the pipeline build. So that's sort of where that stands. But I think the quality of the conversations gives us a lot of good feeling. And then I just want to come back to I discussed this in my prepared remarks, but the 30-plus meetings that I've had with CEOs and other C-suite executives over the past month.

因此，正如我們今天重申的那樣，這正是我們正在關注的。特別是在財富方面，我們在上次電話會議中表示，我們的渠道同比增長 25%。現在還沒有到我們開始在銷售數字中看到它的階段，就像它在管道構建中一樣多。所以這就是它的立場。但我認為對話的質量給了我們很多良好的感覺。然後我只想回到我在準備好的發言中討論過這個問題，但在過去一個月裡我與 CEO 和其他高級管理人員舉行了 30 多次會議。

And just in those conversations, there's a continued focus on next-generation technology, a lot of energy around modernization, digitization and at the same time, management teams have a lot on their plates, which is why they like the componentized approach that delivers things and delivers value along the way. And so there's a lot of positivity around us as a partner. And those, I think, are the things that have led to our pipeline being really at an all-time high.

就在這些對話中，人們持續關注下一代技術，圍繞現代化、數字化投入了大量精力，與此同時，管理團隊有很多事情要做，這就是為什麼他們喜歡交付東西的組件化方法並一路傳遞價值。因此，作為合作夥伴，我們周圍有很多積極因素。我認為，這些是導致我們的管道真正處於歷史最高水平的原因。

And that then combined sort of the stages of where those things are in the pipeline is what allows us to feel confident about the rest of the year.

然後結合這些東西在管道中的各個階段，讓我們對今年餘下的時間充滿信心。

And Tim, I'll add one important point. And Darren, I know you know this, the closed sales that Tim has just been discussing here, the in-year close sales have aren't as impactful on our full year recurring revenue. It's the revenue backlog of what we've already closed, which is now 12% of recurring revenue, that's the big driver of our growth.

蒂姆，我要補充一點。達倫，我知道你知道這一點，蒂姆剛剛在這裡討論的關閉銷售，年內關閉銷售對我們全年的經常性收入沒有那麼大的影響。這是我們已經關閉的收入積壓，現在佔經常性收入的 12%，這是我們增長的主要動力。

So I think everything Tim said is correct, but the revenue backlog is what gives us the confidence in our ability to be able to hit the guidance this year.

所以我認為蒂姆所說的一切都是正確的，但收入積壓讓我們有信心能夠在今年達到指導目標。

And just on the wealth side, just as a quick reminder of where that's -- how much evidence you're seeing that you're going to be able to take advantage of the platform, the UBS platform you built out?

就財富方面而言，就像一個快速提醒——你看到有多少證據表明你將能夠利用這個平台，你建立的瑞銀平台？

Yes, I think that comes back to the -- anecdotally, when I think about the specific conversations that I'm involved in and enthusiasm as people see those components and see them live. And then numerically, it really comes back to the pipeline and comparing that year-over-year, which there is a substantial increase.

是的，我認為這又回到了——有趣的是，當我想到我參與的具體對話以及人們看到這些組件並看到它們時的熱情。然後在數字上，它真的回到了管道並與去年同期相比，這是一個大幅增長。

So I think this is more of a topic that we don't have the news on the actual sales, but we have the news on the pipeline and there'll be a ongoing topic.

所以我認為這更多的是一個話題，我們沒有關於實際銷售的消息，但我們有關於管道的消息，並且會有一個持續的話題。

We have the news on the pipeline and what we said in Q1 was that we expect incremental sales of $20 million to $30 million in that wealth and all that Tim is saying I think gives us confidence in that number. Which, again, we feel good about and reaffirms our belief in the business case and the overall return for the company here.

我們有關於管道的消息，我們在第一季度所說的是，我們預計該財富的銷售額將增加 2000 萬至 3000 萬美元，蒂姆所說的一切我認為讓我們對這個數字充滿信心。再次，我們對這裡的商業案例和公司的整體回報感到滿意並重申我們的信念。

Just one quick follow-up is on the position side. Obviously, position growth and equity in mutual fund is really out of your control. It's a market dynamic. But there's -- clearly, there's some correlation to what people have in their savings accounts and what they can do in stocks or anything else in that matter in terms of investing.

只有一個快速跟進是在頭寸方面。顯然，共同基金的頭寸增長和權益確實不受您的控制。這是市場動態。但很明顯，人們在儲蓄賬戶中擁有的資金與他們在股票或其他任何投資方面可以做的事情之間存在某種相關性。

And so I guess just looking forward maybe into '24 and beyond and I know it's early, but if you do see a change in the patterns of position growth rates, I mean, is this company do you feel that the drivers outside of that are strong enough to sustain the medium-term type targets you've been showing? It seems like there's a lot of wood in the fire that provide for sources of growth, but I'd just love to hear your thoughts.

所以我想也許只是展望 24 年及以後，我知道現在還早，但如果你確實看到職位增長率模式發生變化，我的意思是，這家公司你覺得外面的驅動因素是足夠強大以維持您一直展示的中期目標？似乎火中有很多木材可以提供增長源，但我很想听聽您的想法。

Yes. I think, Darren, when we look sort of at the -- it's true that in past times when there have been significant dislocations like 1999 and 2008. In those extreme times, position growth went to 0, did not go negative, went to 0. If you look at the growth of our ICS, GTO is clearly just driven by pure technology sales not related to position growth.

是的。我認為，Darren，當我們看到——的確，在過去的時期，像 1999 年和 2008 年那樣出現了重大的混亂。在那些極端時期，頭寸增長變為 0，沒有變為負數，變為 0 . 如果你看一下我們 ICS 的增長，GTO 顯然只是由與職位增長無關的純技術銷售驅動。

And then if you look at the growth of our ICS business, it's been about half and half in the past couple of years in terms of revenue from new sales versus internal growth from positions. So clearly, if position growth were to go all the way to 0, that would reduce our overall growth rate. But that has never -- has not happened for an extended period. So I think we wouldn't have any reason right now to think that our medium-term growth plans wouldn't be the same.

然後，如果你看看我們 ICS 業務的增長，在過去幾年中，就新銷售收入與職位內部增長收入而言，它大約是一半和一半。很明顯，如果頭寸增長一直到 0，那將降低我們的整體增長率。但這從來沒有——很長一段時間都沒有發生過。所以我認為我們現在沒有任何理由認為我們的中期增長計劃會不一樣。

Yes. And again, I'll just add to Tim's point, position growth -- we have a very diversified business. Position growth drives 20% of our overall recurring revenue. So I'll point that out. But I just reiterating a point that Tim made, you won't be surprised. We look 6 months out and have confidence in that information, and we come and share that with you. You won't be surprised, we won't be surprised and we have the flexibility in our model to make adjustments and ensure that we're still online with our growth objectives and guidance that we give if we see anything like that.

是的。再一次，我只想補充蒂姆的觀點，即職位增長——我們的業務非常多元化。職位增長推動了我們總經常性收入的 20%。所以我會指出這一點。但我只是重申蒂姆提出的一個觀點，你不會感到驚訝。我們期待 6 個月後對這些信息充滿信心，我們會來與您分享。你不會感到驚訝，我們也不會感到驚訝，我們的模型可以靈活地進行調整，並確保我們仍然在線，如果我們看到類似的事情，我們會提供我們的增長目標和指導。

Next question today will come from James Faucette of Morgan Stanley.

今天的下一個問題將來自摩根士丹利的 James Faucette。

Just wanted to follow up on questions around the rollout of the wealth platform with UBS and the leverage that potentially you get with other customers. I think it makes sense that as those start to go live, it should improve sales cycles, et cetera. But what about from an implementation perspective. Are there things that you're learning in this process with UBS that should allow you to make commitments to potential customers in terms of their own new implementations even if it's just for specific pieces or modules? And how should we think about that on a go-forward basis in creating that flywheel?

只是想跟進有關瑞銀推出財富平台的問題，以及您可能從其他客戶那裡獲得的影響力。我認為隨著這些開始上線，它應該會改善銷售週期等，這是有道理的。但是從實現的角度來看呢？您在與 UBS 的這個過程中學到的東西是否應該允許您在潛在客戶自己的新實施方面做出承諾，即使它只是針對特定的部分或模塊？我們應該如何在創造飛輪的基礎上考慮這一點？

Yes, sure, sure. And first of all, James, welcome to the call. Great to have you -- great to have you on and I do think, look, there have been lots of lessons learned in the work with UBS. I think in the future, we would break things like this into smaller pieces and do them a little bit differently.

是的，當然，當然。首先，詹姆斯，歡迎來電。很高興有你 - 很高興有你，我確實認為，看，在與瑞銀的合作中吸取了很多經驗教訓。我認為在未來，我們會把這樣的事情分解成更小的部分，然後做一些不同的事情。

So that's definitely a learning. But moreover, we have built a lot of muscle as we have gone through this in terms of our project management technology tracking, the level of our ability now to look at -- we've converted all to agile. Where we are in the agile sprint. The number of story points left, the velocity and the story points. Whether -- when you get into the testing, what are the expected defects, what are the defects and the defects when they're retested. How do you model all that out from a capacity standpoint. And we've built a whole platform around that, which we're now using rolling out to the rest of the company.

所以這絕對是一種學習。但此外，在我們的項目管理技術跟踪方面，我們已經建立了很多力量，我們現在看到的能力水平 - 我們已經全部轉變為敏捷。我們在敏捷衝刺中的位置。剩餘的故事點數、速度和故事點數。是否 - 當您進入測試時，預期的缺陷是什麼，缺陷是什麼以及重新測試時的缺陷。您如何從容量的角度對所有這些進行建模。我們圍繞它構建了一個完整的平台，我們現在正在使用它推廣到公司的其他部門。

And so it's been a pretty incredible maturation as well as just becoming much, much more mature on leveraging AWS. A lot of this new technology for UPS is all based in the cloud. and our maturation around that and around the development productivity that we're seeing is something that I'm very, very excited about. So we've talked about how this work is really driving the technology transformation of Broadridge to be the true SaaS company in the future. And I think that piece is really playing out well. So thank you for the question.

因此，這是一個非常令人難以置信的成熟，並且在利用 AWS 方面變得更加成熟。 UPS 的許多新技術都基於雲。我們圍繞這一點以及圍繞我們所看到的開發生產力的成熟是我非常非常興奮的事情。所以我們已經討論了這項工作如何真正推動 Broadridge 的技術轉型，成為未來真正的 SaaS 公司。而且我認為那首曲子真的很好。謝謝你的提問。

Great. And then just wanted to ask a question related to headlines that we started to get some inquiries from investors on, and that's related to tailored shareholder reports. And given the pending SEC regulation on tailored shareholder reports. Can you provide some color on how Broadridge is becoming involved or the opportunity to be involved in the creation and production of these reports to help offset some of the admittedly small headwinds associated with notice and access fees.

偉大的。然後只想問一個與頭條新聞相關的問題，我們開始收到投資者的一些詢問，這與量身定制的股東報告有關。並考慮到美國證券交易委員會對定制股東報告的未決規定。您能否提供一些關於 Broadridge 如何參與或有機會參與這些報告的創建和製作的顏色，以幫助抵消與通知和訪問費相關的一些公認的小逆風。

Yes. Absolutely. So tailored shareholder reports, as a reminder to everyone, what are for the annual and semiannual reports that people get around fund communications, it's 2 communications a year instead of getting either a link to or a notice of a very long report that's difficult to read. People will receive, investors will receive a 2- to 3-page summary, just like summary prospectus years ago.

是的。絕對地。如此量身定制的股東報告，提醒大家，人們圍繞基金溝通獲得的年度和半年度報告是什麼，一年 2 次溝通，而不是獲得一份很難閱讀的非常長的報告的鏈接或通知.人們會收到，投資者會收到一份 2 到 3 頁的摘要，就像多年前的招股說明書摘要一樣。

And we are -- we think this is very positive for investors, all the testing shows that it is much, much clearer for investors to see. It's more cost effective for funds and the long-term report is much more digestible to be e-delivered and we're big fans of e-delivery. So a lot of positives all around. For us, as we said on the last call, there is the slight (inaudible) that we get paid right now for these notices. I think we said $30-some million and that will go away. In the meantime, as we talk to our fund clients, this change, while it sounds simple, create some real complexities for them.

我們是——我們認為這對投資者來說是非常積極的，所有的測試都表明投資者看得更清楚了。這對資金來說更具成本效益，而且長期報告更容易被電子交付，我們是電子交付的忠實擁護者。周圍有很多積極因素。對於我們來說，正如我們在上次電話會議上所說的那樣，我們現在收到這些通知的報酬很少（聽不清）。我想我們說的是 30 到 100 萬美元，那將會消失。與此同時，當我們與我們的基金客戶交談時，這種變化雖然聽起來很簡單，但卻給他們帶來了一些真正的複雜性。

The reports are -- the mandate is the reports come to investors not with a sort of generalized expense table that pertains to many different shared classes, but it is tailored specifically to the shared class that, that investor has. And so in talking to our fund clients, we talked to one fund complex who today does 200 different reports. In the future, they're going to need to do 1,200 different reports. So the scale of the work on them in terms of even though the reports are short, creating them in a very tailored way specific to each investor, there's a lot of complexity there.

這些報告是——授權給投資者的報告不是帶有一種與許多不同共享類別相關的通用費用表，而是專門針對投資者擁有的共享類別量身定制的。因此，在與我們的基金客戶交談時，我們採訪了一個基金綜合體，該綜合體如今負責 200 份不同的報告。將來，他們將需要做 1,200 份不同的報告。因此，就他們的工作規模而言，即使報告很短，以針對每個投資者的非常量身定制的方式創建它們，那裡也有很多複雜性。

And that's all around data management. Converting that data and composing it digitally and being able to send that. That's something that's a real strength of ours. And so we think that there is an opportunity for us to really help the industry. We've had a couple of webinars, one with Ignites, one with Nicsa among the best attended webinars for those groups over the past year because there's a lot of interest in the fund industry about how do they meet this mandate, which, on one hand, is sort of -- it sounds like it makes sense from an investor standpoint, but if you are the one having to actually deliver it, it's tough. And so we are definitely working with fund clients. We definitely think we can help be part of that solution.

這就是數據管理的全部內容。轉換該數據並以數字方式對其進行組合併能夠發送。這是我們真正的優勢所在。因此，我們認為我們有機會真正幫助這個行業。我們舉辦了幾次網絡研討會，一次是 Ignites，一次是 Nicsa，是過去一年中這些團體參加人數最多的網絡研討會之一，因為基金行業對他們如何滿足這一要求很感興趣，其中一個手，有點——從投資者的角度來看這聽起來很有意義，但如果你是必須真正交付它的人，那就很難了。因此，我們肯定會與基金客戶合作。我們絕對認為我們可以幫助成為該解決方案的一部分。

Our next question is from Puneet Jain of JPMorgan.

我們的下一個問題來自摩根大通的 Puneet Jain。

I know like you talked about that the stock record growth can slow down to mid-single digits in the back half of the year. Can you disaggregate that 5% or so growth into benefit from secular tailwinds like 0 commission, direct indexing and any potential macro headwinds there?

我知道就像你談到的那樣，今年下半年股票創紀錄的增長可能會放緩至中等個位數。你能否將 5% 左右的增長分解為受益於長期有利因素，如零佣金、直接指數化和任何潛在的宏觀不利因素？

Puneet, it's Tim, and I'll let Edmund add on this. It is -- what we have is very specific testing where we're able to measure right now, how many positions are there in these funds, which allows us to say when we -- and how does that compare to where it was last year, and that's where we get the growth numbers for.

Puneet，我是 Tim，我讓 Edmund 補充一下。它是 - 我們擁有的是非常具體的測試，我們現在能夠衡量這些基金中有多少頭寸，這讓我們可以說我們什麼時候 - 與去年相比如何，這就是我們獲得增長數字的地方。

We don't have specific data on macro versus tailwinds. What we do know is things like the positions in managed accounts. We're growing at double-digit rate the positions on non-managed accounts. We're growing more mid-single digits. So we can see that differentiation, you could do some math on that. So that's where -- when we talk about the tailwind, we can incrementally measure that, and this may be [1 point or 2 points], and then broadly, it's driven by the macro with these additions, but I'm going to see if Edmund can do.

我們沒有關於宏觀與順風的具體數據。我們所知道的是管理賬戶中的頭寸。我們正在以兩位數的速度增長非管理賬戶的頭寸。我們正在增長更多的中個位數。所以我們可以看到差異化，你可以對此做一些數學計算。所以這就是 - 當我們談論順風時，我們可以逐步衡量它，這可能是 [1 點或 2 點]，然後從廣義上講，它是由帶有這些添加的宏驅動的，但我會看到如果埃德蒙能做到的話。

You hit on many of the points that I was just going to hit on. The one thing I'd do first, Puneet, is just to be clear, we were saying mid- to high single-digit growth. So that 5% would be sort of at the low end of what we expect here. So I just want to be clear on what's been in our guidance and continues to be what we're reaffirming here. And as Tim said, it's very hard to disaggregate between macro and other, but we've talked previously about broad-based growth in online and full brokers and large accounts in midsize and small accounts as well and managed accounts. And self-directed accounts.

你擊中了我剛要擊中的許多要點。 Puneet，我首先要做的一件事就是要明確，我們說的是中高個位數增長。因此，5% 將處於我們預期的低端。所以我只想明確我們的指導方針中的內容，並繼續成為我們在這裡重申的內容。正如蒂姆所說，很難在宏觀和其他之間進行分解，但我們之前已經討論過在線和完整經紀人以及中型和小型賬戶中的大賬戶以及託管賬戶的廣泛增長。和自主賬戶。

And we continue to see solid growth across each of those areas. And that, I think, seeing that broad-based growth is what continues to give us the confidence in the guidance here.

我們繼續看到這些領域中的每一個領域都在穩步增長。而且，我認為，看到基礎廣泛的增長繼續讓我們對這裡的指導充滿信心。

Got it. And it was good to know that the pipeline is strong, but are you seeing any changes in client behavior over the last few quarters in terms of maybe delays in decision-making or flow deals through the pipeline and any changes in client preferences for outsourcing versus in-sourcing given the macro pressure that they might be facing right now?

知道了。很高興知道管道很強大，但是您是否看到過去幾個季度客戶行為的任何變化，可能是決策延遲或流水線交易以及客戶對外包偏好的任何變化考慮到他們現在可能面臨的宏觀壓力，內包？

Yes. I would say our clients are definitely busy. They -- our banking clients -- do have money. And it's an interesting one for us which is we do best when they have money and sort of just enough money. So if they have too much money, then they like to build it in-house, and when they don't have any money that it's hard for them to fund the project. So you have to be sort of just right as a sweet spot for our sales.

是的。我會說我們的客戶肯定很忙。他們——我們的銀行客戶——確實有錢。這對我們來說是一個有趣的事情，那就是當他們有錢並且錢剛好夠用時，我們會做得最好。因此，如果他們有太多錢，那麼他們就喜歡在內部建造它，而當他們沒有錢時，他們就很難為這個項目提供資金。所以你必須恰到好處地成為我們銷售的最佳點。

So I do think that the conversations, there's a lot of thought before people go forward. There's a lot of work to get these over the goal line. And we certainly feel like that -- feel that, I'm sure you're hearing that from others. At the same time, we're moving in. We got a lot of stuff done in the month of December. As for the preferences for in-house versus third party, I think if I go back 12 months ago, people had a lot of money, and you could sort of feel some of the conversations flowing a little bit more towards, well, maybe I should build this, maybe I should build that. And I think when you look at where things are now, I don't know if it's money, I think it's as much all the regulatory change that is coming. There are so many things that people are having to address coming in from the SEC and others that they have a lot on their plate and getting help is very useful. So it's -- and you have to segment that a little bit by size of institution. Certainly, all the Tier 2 institutions are strongly looking for help.

所以我確實認為，在人們繼續進行對話之前，有很多想法。要讓這些球超過球門線還有很多工作要做。我們當然有這種感覺 - 有這種感覺，我相信你是從其他人那裡聽到的。與此同時，我們正在搬入。我們在 12 月份完成了很多工作。至於內部和第三方的偏好，我想如果我回到 12 個月前，人們有很多錢，你可以感覺到一些對話更傾向於，好吧，也許我應該建造這個，也許我應該建造那個。而且我認為當你看看現在的情況時，我不知道是不是錢，我認為這與即將到來的所有監管變化一樣多。人們必須解決來自美國證券交易委員會和其他機構的許多事情，他們有很多事情要做，獲得幫助非常有用。所以它是 - 你必鬚根據機構的規模對其進行細分。當然，所有二級機構都在強烈尋求幫助。

At this time, we will conclude our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

屆時，我們將結束我們的問答環節。我想將會議轉回管理層聽取任何閉幕詞。

Thank you. This is Tim. I'll just close things off. I want to thank everyone for joining us this morning. I hope that what came through is how pleased we were with our second quarter performance and our outlook for the full year. That our growth drivers remain healthy. Our business is resilient and that with our investment cycle increasingly behind us, our free cash flow is strengthening. So thank you very much. We look forward to continuing the conversation next quarter.

謝謝。這是蒂姆。我會結束一切。我要感謝大家今天早上加入我們。我希望我們對第二季度的業績和全年展望感到滿意。我們的增長動力保持健康。我們的業務具有彈性，隨著我們的投資週期越來越落後，我們的自由現金流正在加強。非常感謝。我們期待在下個季度繼續對話。

The conference has now concluded. We thank you for attending today's presentation, and you may now disconnect your lines.

會議現已結束。我們感謝您參加今天的演講，您現在可以掛斷電話了。