Donnelley Financial Solutions Inc (DFIN) 2023 Q2 法說會逐字稿

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today.

您好，感謝您的支持。我叫雷吉娜，今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to the Donnelley Financial Solutions Second Quarter 2023 Earnings Conference Call. (Operator Instructions)

現在，我歡迎大家參加唐納利金融解決方案 2023 年第二季財報電話會議。 （操作員說明）

I would now like to turn the conference over to Michael Zhao, Head of Investor Relations.

現在我想將會議交給投資者關係主管麥可趙。

Thank you.

謝謝。

Good morning, everyone, and thank you for joining Donnelley Financial Solutions' Second Quarter 2023 Results Conference Call. This morning, we released our earnings report, including a supplemental trending schedule of historical results, copies of which can be found in the Investors section of our website at dfinsolutions.com.

大家早安，感謝您參加 Donnelley Financial Solutions 的 2023 年第二季業績電話會議。今天早上，我們發布了收益報告，包括歷史業績的補充趨勢表，其副本可以在我們網站 dfinsolutions.com 的投資者部分找到。

During this call, we'll refer to forward-looking statements that are subject to risks and uncertainties. For a complete discussion, please refer to the cautionary statements included in our earnings release and further details in our most recent annual report on Form 10-K, quarterly report on Form 10-Q and other filings with the SEC.

在本次電話會議中，我們將提及受風險和不確定性影響的前瞻性陳述。如需完整討論，請參閱我們的收益發布中包含的警示性聲明以及我們最近的 10-K 表年度報告、10-Q 表季度報告以及向 SEC 提交的其他文件中的更多詳細資訊。

Further, we will discuss certain non-GAAP financial information such as adjusted EBITDA, adjusted EBITDA margin and organic net sales. We believe the presentation of non-GAAP financial information provides you with useful supplementary information concerning the company's ongoing operations and is an appropriate way for you to evaluate the company's performance. They are, however, provided for informational purposes only. Please refer to the earnings release and related tables for GAAP financial information and reconciliations of GAAP to non-GAAP financial information.

此外，我們還將討論某些非 GAAP 財務訊息，例如調整後 EBITDA、調整後 EBITDA 利潤率和有機淨銷售額。我們相信，非公認會計準則財務資訊的呈現可為您提供有關公司持續運營的有用補充信息，並且是您評估公司業績的適當方式。然而，它們僅供參考。請參閱收益發布和相關表格，以了解 GAAP 財務資訊以及 GAAP 與非 GAAP 財務資訊的調整表。

I am joined this morning by Dan Leib, Dave Gardella, Craig Clay, Eric Johnson, Floyd Strimling and Kami Turner. I will now turn the call over to Dan.

今天早上，丹·萊布、戴夫·加德拉、克雷格·克萊、埃里克·約翰遜、弗洛伊德·斯特林林和卡米·特納也加入了我的行列。我現在將把電話轉給丹。

Thank you, Mike, and good morning, everyone.

謝謝你，麥克，大家早安。

We are pleased with the company's performance during the second quarter, especially in light of continuing softness in capital markets transactional activity. In this difficult operating environment, we delivered strong second quarter results, including net sales of $242.1 million and adjusted EBITDA of $74.3 million, resulting in adjusted EBITDA margin of 30.7%. Our second quarter performance once again demonstrated the resiliency of our operating model and the sustainability of our performance in a challenging external environment as our business mix continues to transform.

我們對該公司第二季的業績感到滿意，特別是考慮到資本市場交易活動持續疲軟。在這種困難的經營環境下，我們第二季業績強勁，其中淨銷售額為 2.421 億美元，調整後 EBITDA 為 7,430 萬美元，調整後 EBITDA 利潤率為 30.7%。隨著業務結構的不斷轉型，第二季的業績再次證明了我們的營運模式的彈性以及在充滿挑戰的外部環境中業績的可持續性。

A key driver of our second quarter results is the improving performance of our Software Solutions portfolio. Software Solutions' net sales growth accelerated in the second quarter to nearly 8% on an organic basis versus the second quarter of 2022, an increase from the growth trends over the last few quarters. Importantly, the second quarter Software Solutions net sales growth was broad-based, with all 3 of our key software offerings, Arc Suite, Venue and ActiveDisclosure, delivering stronger year-over-year growth compared to recent trend. Software Solutions made up approximately 31% of total second quarter net sales, up approximately 440 basis points from last year's second quarter sales mix.

我們第二季業績的一個關鍵驅動因素是我們軟體解決方案組合績效的提升。與 2022 年第二季相比，軟體解決方案第二季的淨銷售額自然成長加速至近 8%，高於過去幾季的成長趨勢。重要的是，第二季軟體解決方案淨銷售額成長基礎廣泛，我們的所有 3 個關鍵軟體產品 Arc Suite、Venue 和 ActiveDisclosure 與近期趨勢相比，實現了更強勁的同比增長。軟體解決方案約佔第二季總淨銷售額的 31%，比去年第二季的銷售組合成長約 440 個基點。

As a reminder, the second quarter, largely due to the annual meeting and proxy season, historically represents our largest quarter overall yet represents a seasonal low for software as a percentage of revenue.

提醒一下，第二季度，主要是由於年會和代理季節，歷史上是我們整體上最大的季度，但軟體佔收入的百分比卻處於季節性低點。

On a trailing 4-quarter basis, software sales of $284 million represented approximately 36% of total sales, an increase of approximately 590 basis points from the second quarter of 2022 trailing 4 quarter period. Our second quarter adjusted EBITDA margin of 30.7% is nearly in line with last year's very strong second quarter adjusted EBITDA margin despite a nearly $30 million or approximately 40% year-over-year reduction in capital markets transactional sales.

以過去 4 季計算，軟體銷售額為 2.84 億美元，約佔總銷售額的 36%，比 2022 年第二季過去 4 季成長約 590 個基點。儘管資本市場交易銷售額年減近 3,000 萬美元或約 40%，但我們第二季調整後 EBITDA 利潤率為 30.7%，與去年非常強勁的第二季調整後 EBITDA 利潤率幾乎持平。

During the second quarter, we made progress in achieving additional efficiencies driven by process improvement and simplification, in addition to adjusting our cost structure to the current demand environment. These actions, in combination with our previous cost reduction efforts, permanently reduce fixed costs, simplify our operations and further improve DFIN's resiliency across various market conditions. While these cost savings benefited our margins, we continue to accelerate investments in certain areas of our business to drive recurring revenue growth and modernize existing business processes.

在第二季度，除了根據當前需求環境調整成本結構外，我們在流程改進和簡化的推動下，在提高效率方面取得了進展。這些行動與我們先前的成本削減努力相結合，永久降低了固定成本，簡化了我們的運營，並進一步提高了 DFIN 在各種市場條件下的彈性。雖然這些成本節省有利於我們的利潤，但我們繼續加快對某些業務領域的投資，以推動經常性收入成長並使現有業務流程現代化。

Through the first half of the year, we are on track with our stated objective of investing approximately $25 million in 2023 related to these growth and modernization initiatives, of which approximately 2/3 of the total investment is incremental on a year-over-year basis. As demonstrated by our performance, the consistent progress against our plan is delivering outstanding results. Specifically, our ability to thrive in difficult market conditions is a testament to the strength of our recurring offerings. These offerings, which span across both Software Solutions and Tech-enabled Services, serve the ongoing compliance needs of corporations and investment companies and provide our business with stability during times of market volatility.

今年上半年，我們正在實現既定目標，即到 2023 年投資約 2,500 萬美元與這些成長和現代化舉措相關，其中總投資的約 2/3 是同比增量基礎。正如我們的業績所證明的那樣，我們的計劃的持續進展正在帶來出色的成果。具體來說，我們在困難的市場條件下蓬勃發展的能力證明了我們經常性產品的實力。這些產品涵蓋軟體解決方案和技術支援服務，滿足企業和投資公司持續的合規需求，並在市場波動期間為我們的業務提供穩定性。

As we invest to accelerate our recurring growth while protecting market share in our traditional transactional offerings, we will continue to shift DFIN toward a higher mix of recurring revenue, and more importantly, benefit from the financial profile associated with such a recurring revenue model. Dave will cover our results in more detail, but first, I'd like to provide an update on the tailored shareholder reports regulation, which has a compliance date of July 2024.

當我們投資加速我們的經常性成長，同時保護我們傳統交易產品的市場份額時，我們將繼續將DFIN 轉向更高的經常性收入組合，更重要的是，從與這種經常性收入模式相關的財務狀況中受益。 Dave 將更詳細地介紹我們的結果，但首先，我想提供有關定制股東報告法規的最新信息，該法規的合規日期為 2024 年 7 月。

We are making great progress in our technology development and go-to-market plans, both of which are aimed to help our mutual fund and exchange-traded funds clients operationalize the reporting to comply with this regulation. From a software product development perspective, our solution leverages the leading functionalities within Arc Suite while introducing additional features to create a modern and seamless client experience. Coupled with DFIN's service expertise and production capabilities, we have created a true end-to-end compliance solution that eliminates handoffs for our clients.

我們在技術開發和上市計劃方面取得了巨大進展，這兩項計劃都旨在幫助我們的共同基金和交易所交易基金客戶實施報告以遵守此法規。從軟體產品開發的角度來看，我們的解決方案利用了 Arc Suite 中的領先功能，同時引入了附加功能來創建現代、無縫的客戶體驗。結合 DFIN 的服務專業知識和生產能力，我們創建了真正的端到端合規解決方案，為客戶消除了交接。

We are especially encouraged by the positive market feedback and the pipeline of recurring revenue. Given our end-to-end solution, we expect sales will be recognized across multiple DFIN offerings, including Software Solutions, Tech-enabled Services and Print and Distribution. We are currently working to quantify the estimated impact and look forward to providing additional details later this year or early next year.

我們尤其對正面的市場回饋和經常性收入管道感到鼓舞。鑑於我們的端到端解決方案，我們預計銷售將在多種 DFIN 產品中得到認可，包括軟體解決方案、技術支援的服務以及列印和分發。我們目前正在努力量化估計的影響，並期待在今年稍後或明年初提供更多細節。

Before I share a few closing remarks, I would like to turn the call over to Dave to provide more details on our second quarter results and our outlook for the third quarter. Dave?

在我發表一些結束語之前，我想將電話轉給戴夫，以提供有關我們第二季業績和第三季前景的更多詳細資訊。戴夫？

Thanks, Dan, and good morning, everyone.

謝謝丹，大家早安。

As Dan noted, we delivered strong second quarter results in a challenging environment. Despite an ongoing reduction in year-over-year transactional volumes, our focused efforts to execute our strategy have enabled DFIN to become fundamentally more profitable compared to historical quarters with similar level of overall sales and transactional activity.

正如丹所指出的那樣，我們在充滿挑戰的環境中取得了強勁的第二季業績。儘管交易量逐年減少，但我們專注於執行我們的策略，使 DFIN 的盈利能力與整體銷售和交易活動水平相似的歷史季度相比，從根本上實現了更高的盈利。

By continuing to focus on operational efficiencies while also growing our high-margin Software Solution sales, second quarter adjusted EBITDA margin was approximately 900 basis points and 680 basis points higher than the second quarters of 2019 and 2020 respectively, despite overall sales and transactional sales in this year's second quarter being slightly below the levels we reported in those quarters. Our second quarter results provide additional positive proof points that our strategy is working, allowing us to deliver strong financial results across various market conditions while also continuing to invest and evolving to a more recurring sales mix, aggressively managing our cost structure and being disciplined stewards of capital.

儘管整體銷售額和交易銷售額今年第二季略低於我們在這些季度報告的水平。我們第二季的業績提供了額外的積極證據，證明我們的策略正在發揮作用，使我們能夠在各種市場條件下提供強勁的財務業績，同時繼續投資並發展更具經常性的銷售組合，積極管理我們的成本結構並成為紀律嚴明的管理者首都。

On a consolidated basis, total net sales for the second quarter of 2023 were $242.1 million, a decrease of $24.1 million or 9.1% on a reported basis and 8.3% on an organic basis from the second quarter of 2022. Given the very weak transactional environment, more than all of the year-over-year net sales decline occurred in capital markets transactional sales, which was down $28.1 million or 38.2% versus the second quarter of 2022. The decline in capital markets transactional sales was partially offset by growth in Software Solutions net sales, which increased $4.1 million or 5.7% on a reported basis and 7.9% on an organic basis compared to the second quarter of last year and reached a new quarterly net sales record.

綜合來看，2023 年第二季的總淨銷售額為 2.421 億美元，較 2022 年第二季減少 2,410 萬美元，按報告減少 9.1%，按有機減少 8.3%。鑑於交易環境非常疲軟淨銷售額年比下降的主要原因是資本市場交易銷售，與2022 年第二季度相比下降了2810 萬美元，即38.2%。資本市場交易銷售的下降部分被軟體業務的成長所抵消。解決方案淨銷售額與去年第二季相比增加了410 萬美元，按報告計算成長了5.7%，有機成長7.9%，創下了新的季度淨銷售額記錄。

Second quarter adjusted non-GAAP gross margin was 59.5%, approximately 150 basis points higher than the second quarter of 2022, primarily driven by the impact of cost savings initiatives and price increases, partially offset by lower capital markets transactional activity and incremental investments to accelerate our transformation.

第二季調整後的非GAAP 毛利率為59.5%，比2022 年第二季高出約150 個基點，主要受到成本節約措施和價格上漲的影響，但部分被資本市場交易活動減少和增量投資加速所抵銷我們的轉變。

Adjusted non-GAAP SG&A expense in the quarter was $69.7 million, a $2.1 million decrease from the second quarter of 2022. As a percentage of net sales, adjusted non-GAAP SG&A was 28.8%, an increase of approximately 180 basis points from the second quarter of 2022. The decrease in adjusted non-GAAP SG&A was primarily driven by the impact of cost control initiatives and a reduction in selling expense as a result of lower transactional sales volume, partially offset by incremental transformation-related investments and higher bad debt expense.

本季調整後的非 GAAP SG&A 費用為 6,970 萬美元，比 2022 年第二季減少 210 萬美元。調整後的非 GAAP SG&A 佔淨銷售額的百分比為 28.8%，比第二季增加約 180 個基點2022 年第四季調整後非GAAP SG&A 的下降主要是由於成本控制措施的影響以及交易銷售下降導致的銷售費用減少，但部分被增量轉型相關投資和壞帳費用增加所抵銷。

Our second quarter adjusted EBITDA was $74.3 million, a decrease of $8.3 million or 10% from the second quarter of 2022. Second quarter adjusted EBITDA margin was 30.7%, a decrease of approximately 30 basis points from the second quarter of 2022, primarily driven by lower capital markets transactional sales and incremental investments in support of our strategic transformation partially offset by the impact of cost control initiatives, price uplifts and lower selling expense as a result of lower sales volumes.

我們第二季調整後EBITDA 為7,430 萬美元，較2022 年第二季減少830 萬美元，即10%。第二季調整後EBITDA 利潤率為30.7%，較2022 年第二季下降約30 個基點，主要是由於資本市場交易銷售和支持我們策略轉型的增量投資減少，部分被成本控制措施、價格上漲和銷售下降導致的銷售費用下降的影響所抵消。

Turning now to our second quarter segment results. Net sales in our Capital Markets Software Solutions segment were $47.7 million, an increase of 6.5% on an organic basis from the second quarter of last year. Sales of our recurring compliance product, ActiveDisclosure, grew approximately 9% in the second quarter with the recurring subscription component increasing approximately 6%, both of which reflect the expected improvement as we finalize the transition from AD3, which was decommissioned in the second quarter.

現在轉向我們的第二季部門業績。我們資本市場軟體解決方案部門的淨銷售額為 4,770 萬美元，比去年第二季有機成長 6.5%。我們的定期合規產品ActiveDisclosure 的銷售額在第二季度增長了約9%，定期訂閱部分增長了約6%，這兩者都反映了我們最終完成從第二季度停用的AD3 的過渡後的預期改善。

The decommissioning represents an important milestone and enables us to focus on driving stronger growth for the new AD platform while also realizing increased pricing, higher retention rates and greater efficiency. We expect improved growth rates moving forward.

此次退休是一個重要的里程碑，使我們能夠專注於推動新 AD 平台的更強勁成長，同時實現更高的定價、更高的保留率和更高的效率。我們預計未來成長率將有所改善。

Net sales of our virtual [deal] room offering venue were up $2.2 million or 8.7% compared to the second quarter of last year, driven by increased room activity and higher pricing. Despite a continued steep decline in global M&A deal completions, the level of underlying activity remains strong, driven by the strong demand for high-quality assets and the abundance of capital. We are encouraged by the resiliency of the underlying activity taking place on our virtual data room platform.

受客房活動增加和定價上漲的推動，我們的虛擬[交易]客房提供場所的淨銷售額與去年第二季度相比增長了 220 萬美元，即 8.7%。儘管全球併購交易完成量持續大幅下降，但在對優質資產的強勁需求和資本充裕的推動下，基本活動水準仍然強勁。我們對虛擬資料室平台上發生的基礎活動的彈性感到鼓舞。

Adjusted EBITDA margin for the segment was 27.7%, an increase of approximately 870 basis points from the second quarter of 2022, primarily due to increased sales, price uplifts from new AD and Venue and efficiencies within our service organization, partially offset by an increased overhead costs and incremental investments in technology development.

該部門調整後的EBITDA 利潤率為27.7%，較2022 年第二季增加約870 個基點，主要是由於銷售額增加、新廣告和場地帶來的價格上漲以及我們服務組織內的效率提高，但部分被管理費用增加所抵銷成本和技術開發的增量投資。

Net sales in our Capital Markets, Compliance and Communications Management segment were $122.9 million, a decrease of 17.8% on an organic basis from the second quarter of 2022, driven by lower capital markets transactional activity, partially offset by a modest year-over-year growth in compliance revenue.

受資本市場交易活動減少的推動，資本市場、合規和通訊管理部門的淨銷售額為 1.229 億美元，較 2022 年第二季度有機下降 17.8%，但部分被同比溫和增長所抵消合規收入增長。

While the demand for equity transactions remain very weak on a year-over-year basis, we experienced a modest sequential increase in transactional revenue from the first quarter of this year, consistent with the slight pickup in deal activity to start the second quarter, which we indicated on last quarter's earnings call.

儘管股權交易的需求同比仍然非常疲軟，但今年第一季以來，我們的交易收入出現了小幅環比增長，這與第二季度開始的交易活動小幅回升一致，這與第二季度開始的交易活動小幅回升一致。我們在上季度的財報電話會議上表示。

Similar to what we experienced to start the quarter, the transactional market for the second quarter also ended on a positive note with 4 priced IPOs taking place toward the end of June, representing the most active streak of IPO pricing so far this year. That said, the overall IPO activity still remains substantially lower than last year's second quarter.

與我們在本季初經歷的情況類似，第二季度的交易市場也以積極的勢頭結束，截至 6 月底有 4 宗定價 IPO，這是今年迄今為止最活躍的 IPO 定價記錄。儘管如此，整體IPO活動仍大幅低於去年第二季。

The M&A market remained very weak, with the number of completed M&A transactions down sequentially from the first quarter of 2023 and down approximately 40% versus last year's second quarter. While the outlook for capital markets transactional environment is uncertain, DFIN remains very well positioned to capture a significant share of future demand for transaction-related products and services when market activity picks up. Additionally, the uptick in IPO activity in June and the transactional activity we've seen to start the third quarter creates positive momentum entering the second half of the year.

併購市場依然非常疲軟，完成的併購交易數量較 2023 年第一季季減，較去年第二季下降約 40%。儘管資本市場交易環境的前景不確定，但當市場活動回升時，DFIN 仍然能夠很好地抓住交易相關產品和服務的未來需求的很大一部分。此外，六月 IPO 活動的增加以及我們在第三季度開始看到的交易活動為進入下半年創造了積極的勢頭。

The decline in capital markets transaction sales was partially offset by our Capital Markets Compliance offering, which grew approximately 1% from the second quarter of 2022 driven primarily by higher proxy volumes, part of which is associated with the new pay versus performance disclosure and increased pricing.

資本市場交易銷售額的下降被我們的資本市場合規產品部分抵消，該產品較2022 年第二季度增長了約1%，這主要是由於代理交易量增加，其中部分原因與新的薪酬與績效披露和定價上漲有關。

Our second quarter compliance sales growth was against the backdrop of a very strong performance in the second quarter of 2022, during which capital markets compliance sales increased by approximately 31% versus the second quarter of 2021.

我們第二季的合規銷售成長是在 2022 年第二季表現非常強勁的背景下實現的，在此期間，資本市場合規銷售較 2021 年第二季成長了約 31%。

As discussed previously, we faced a couple of headwinds in the quarter, including the timing shift of certain compliance volumes from the second quarter into the first quarter as well as the recent trend of increased [back] liquidations, which creates a headwind on the number of public companies and the associated demand for compliance services. We were able to more than offset the combined impact of those headwinds by the increase in proxy activity and higher pricing.

如同前面所討論的，我們在本季度面臨一些不利因素，包括某些合規量從第二季度到第一季度的時間轉移，以及最近[回]清算增加的趨勢，這對數量造成了不利影響。上市公司的情況以及對合規服務的相關需求。我們能夠透過代理活動的增加和更高的定價來抵消這些不利因素的綜合影響。

Adjusted EBITDA margin for the segment was 36.5%, a decrease of approximately 470 basis points from the second quarter of 2022. The decrease in adjusted EBITDA margin was primarily due to the lower transactional sales and higher bad debt expense partially offset by cost control initiatives, lower selling expenses as a result of lower sales volume and price increases.

該部門調整後 EBITDA 利潤率。調整後 EBITDA 利潤率下降主要是由於交易銷售額下降和壞帳費用增加，部分被成本控制措施所抵消。由於銷量下降和價格上漲，銷售費用減少。

Net sales in our Investment Company Software Solutions segment were $28 million, an increase of 10.7% on an organic basis versus the second quarter of 2022, primarily driven by growth in subscriptions as a result of the continued strong adoption of Arc Suite within investment companies. We are encouraged by the performance of Arc Suite in the second quarter and remain optimistic about the opportunities created by regulations, such as tailored shareholder reports, to drive future recurring revenue growth.

投資公司軟體解決方案部門的淨銷售額為 2,800 萬美元，與 2022 年第二季相比有機成長 10.7%，這主要是由於投資公司持續大力採用 Arc Suite 導致訂閱量成長所致。我們對 Arc Suite 第二季的業績感到鼓舞，並對監管所創造的機會（例如客製化股東報告）保持樂觀，以推動未來的經常性收入成長。

Adjusted EBITDA margin for the segment was 38.2%, an increase of approximately 420 basis points from the second quarter of 2022. The increase in adjusted EBITDA margin was primarily due to operating leverage on the increase in sales and efficiencies within our service organization, partially offset by higher product development and technology investments in support of growth opportunities.

該部門調整後 EBITDA 利潤率。調整後 EBITDA 利潤率的增長主要是由於我們服務組織內銷售和效率增加的營運槓桿，部分抵消了透過更高的產品開發和技術投資來支持成長機會。

Net sales in our Investment Companies Compliance and Communications Management segment were $43.5 million, a decrease of 2.3% on an organic basis from the second quarter of 2022, primarily driven by the exit of low-margin print work, partially offset by price increases on the remaining work.

投資公司合規與通訊管理部門的淨銷售額為 4,350 萬美元，較 2022 年第二季有機下降 2.3%，主要是由於低利潤印刷工作的退出，部分被印刷品價格上漲所抵消。剩下的工作。

Adjusted EBITDA margin for the segment was 39.3%, approximately 660 basis points higher than the second quarter of 2022. The increase in adjusted EBITDA margin was primarily due to a favorable sales mix, the impact of cost reduction initiatives, including continued synergies from our print platform consolidation, and price increases, partially offset by higher overhead costs.

該部門調整後EBITDA 利潤率為39.3%，比2022 年第二季高出約660 個基點。調整後EBITDA 利潤率的成長主要是由於有利的銷售組合、成本削減舉措的影響，包括我們印刷業務的持續綜效平台整合和價格上漲，部分被較高的管理成本所抵銷。

Non-GAAP unallocated corporate expenses were $11.6 million in the quarter, an increase of $0.4 million from the second quarter of 2022, primarily driven by an increase in expenses aimed at accelerating our transformation, partially offset by the impact of cost control initiatives.

本季非 GAAP 未分配企業費用為 1,160 萬美元，較 2022 年第二季增加 40 萬美元，主要是由於旨在加速轉型的費用增加，部分被成本控制措施的影響所抵消。

Free cash flow in the quarter was positive $7 million, a decrease of $23.9 million as compared to the second quarter of 2022. The year-over-year decline in free cash flow was driven by a decline in adjusted EBITDA, higher restructuring and interest payments, partially offset by lower capital expenditures and lower cash tax payments.

本季自由現金流為正 700 萬美元，較 2022 年第二季減少 2,390 萬美元。自由現金流年減的原因是調整後 EBITDA 下降、重組和利息支付增加，部分被較低的資本支出和較低的現金稅支付所抵消。

We ended the quarter with $219.8 million of total debt and $200.4 million of non-GAAP net debt, including $95.5 million drawn on our revolver. From a liquidity perspective, we had access to the remaining $203.5 million of our revolver as well as $19.4 million of cash on hand. As of June 30, 2023, our non-GAAP net leverage ratio was 1.0x.

本季結束時，我們的總債務為 2.198 億美元，非 GAAP 淨債務為 2.004 億美元，其中包括我們的左輪手槍提取的 9,550 萬美元。從流動性角度來看，我們可以動用剩餘的 2.035 億美元左輪手槍以及 1,940 萬美元的手頭現金。截至 2023 年 6 月 30 日，我們的非 GAAP 淨槓桿率為 1.0 倍。

As a reminder, our cash flow is historically seasonal. We are a user of cash in the first quarter, close to breakeven in the second quarter and generate more than 100% of our free cash flow in the second half of the year. As our sales mix continues to evolve to proportionately more subscription-based sales, we expect the seasonality to continue to become less significant.

提醒一下，我們的現金流在歷史上是季節性的。我們第一季使用現金，第二季接近收支平衡，下半年產生超過 100% 的自由現金流。隨著我們的銷售組合繼續發展到比例更高的基於訂閱的銷售，我們預計季節性將繼續變得不那麼重要。

Regarding capital deployment, we repurchased approximately 43,000 shares of our common stock during the second quarter for $1.9 million at an average price of $43.59 per share. As of June 30, 2023, we had $121.1 million remaining on our $150 million stock repurchase authorization. Given the ongoing high interest rate environment and our floating rate debt, we continue to assign a higher priority to debt management in the second quarter, which resulted in lower share repurchases. Going forward, we will continue to take a balanced approach towards capital deployment. We continue to view organic investments to drive our transformation, share repurchases and net debt reduction, each as key components of our capital deployment strategy, and we'll remain disciplined in this area.

在資本部署方面，我們在第二季以 190 萬美元回購了約 43,000 股普通股，平均價格為每股 43.59 美元。截至 2023 年 6 月 30 日，我們的 1.5 億美元股票回購授權尚剩餘 1.211 億美元。鑑於持續的高利率環境和我們的浮動利率債務，我們在第二季繼續更加重視債務管理，這導致股票回購減少。未來，我們將繼續採取平衡的資本配置方式。我們繼續將有機投資視為推動我們轉型的有機投資、股票回購和淨債務削減，每一項都是我們資本部署策略的關鍵組成部分，我們將在這一領域保持紀律。

As it relates to our outlook for the third quarter of 2023, while we expect the overall macroeconomic environment to remain challenging, we are encouraged by the recent modest pickup in transactional activity. We expect consolidated third quarter net sales in the range of $170 million to $190 million and adjusted EBITDA margin in the low to mid-20% range. Compared to the third quarter of last year, the midpoint of our revenue guidance, $180 million, implies a year-over-year net sales decline of approximately 5%, primarily as a result of lower transactional activity, the less of a year-over-year decline than we experienced in the first 2 quarters of the year.

由於這關係到我們對 2023 年第三季的展望，雖然我們預期整體宏觀經濟環境仍將充滿挑戰，但近期交易活動的小幅回升令我們感到鼓舞。我們預計第三季合併淨銷售額將在 1.7 億美元至 1.9 億美元之間，調整後的 EBITDA 利潤率將在 20% 的低至中水平範圍內。與去年第三季相比，我們營收指引的中位數 1.8 億美元意味著淨銷售額年減約 5%，這主要是由於交易活動減少（年減）。年減幅度比今年前兩季的下降幅度還要大。

From an adjusted EBITDA margin perspective, our guidance of low to mid-20% contemplates the lower level of transactional sales as well as incremental investments toward technology development and improving our operating efficiencies, similar to the level of incremental investments made in the first and second quarters. We expect our third quarter adjusted EBITDA margin to be once again much stronger than historical quarters of like size total and transactional sales.

從調整後的EBITDA 利潤率角度來看，我們對20% 中低水準的指導考慮了較低水準的交易銷售以及對技術開發和提高營運效率的增量投資，類似於第一和第二階段的增量投資水平宿舍。我們預計第三季調整後的 EBITDA 利潤率將再次遠強於同等規模總銷售額和交易銷售額的歷史季度。

With that, I'll now pass it back to Dan.

有了這個，我現在將其傳回給丹。

Thanks, Dave.

謝謝，戴夫。

Our performance in the second quarter offers a further proof point that our strategy and execution continue to make DFIN more durable and structurally resilient than in the past. As we progress on our transformation journey, we will continue to invest in opportunities to drive profitable recurring revenue growth while also continuing to aggressively manage our cost structure and being disciplined stewards of capital.

我們第二季的業績進一步證明，我們的策略和執行繼續使 DFIN 比過去更加持久和結構性強。隨著我們在轉型之旅中取得進展，我們將繼續投資於推動可獲利的經常性收入成長的機會，同時繼續積極管理我們的成本結構並成為紀律嚴明的資本管理者。

We are excited by the opportunities created by regulatory changes on horizon, including tailored shareholder reports, Financial Data Transparency Act and ESG, and the benefits they will bring starting in 2024. In the meantime, we're focused on creating best-in-class regulatory and compliance solutions to help our clients comply with regulations. Finally, as we head into the second half of the year, we are encouraged by the improved trend in capital markets transactional activity.

我們對即將到來的監管變革所帶來的機會感到興奮，包括量身定制的股東報告、財務數據透明度法案和ESG，以及它們將從2024 年開始帶來的好處。同時，我們專注於創造一流的監管和合規解決方案，幫助我們的客戶遵守法規。最後，當我們進入今年下半年時，我們對資本市場交易活動改善的趨勢感到鼓舞。

Before we open it up for Q&A, I'd like to thank the DFIN employees around the world who have been working tirelessly to ensure our clients continue to receive the highest quality solutions.

在我們開始問答之前，我要感謝世界各地的 DFIN 員工，他們孜孜不倦地工作，以確保我們的客戶繼續獲得最高品質的解決方案。

Now with that, operator, we're ready for questions.

現在，接線員，我們準備好回答問題了。

(Operator Instructions) Our first question will come from the line of Charles Strauzer with CJS Securities.

（操作員說明）我們的第一個問題將來自 CJS 證券的 Charles Strauzer。

I was hoping you could maybe delve a little bit more into the cost reduction efforts you've been taking on and really, what's going on there to drive the margins? And what portion of that is permanent versus temporary? And looking at the guidance for Q3, could we see potential upside there from continued efforts there on the cost front?

我希望您能更深入地研究一下您一直在採取的降低成本的努力，實際上，到底是如何提高利潤率的？其中哪一部分是永久的，哪一部分是暫時的？看看第三季的指導，我們是否可以看到在成本方面持續努力的潛在上升空間？

Yes, Charlie, it's Dave. I'll take that one.

是的，查理，我是戴夫。我會接受那個。

I think certainly -- and we've commented quarter in, quarter out regarding cost reductions, I would say the actions that we've taken are certainly permanent, and they really range across -- right across the company. I think -- in fact, when you look at the gross cost reductions, they're actually higher than what's reflected in our margin performance.

我認為當然 - 我們已經每季度就成本削減發表評論，我想說我們所採取的行動肯定是永久性的，而且它們確實範圍廣泛 - 整個公司。我認為，事實上，當你看到總成本的降低時，你會發現它們實際上高於我們的利潤率表現所反映的水平。

And we've noted in the past that we've redirected a portion of the savings to really increased investment in other areas and predominantly, that's product development and IT, both of which are in support of our strategy to drive the Software Sales growth as well as to increase the proportion amount of our recurring revenue. And we're continuing to invest in those areas to create long-term value.

我們過去注意到，我們已將部分節省的資金用於真正增加其他領域的投資，主要是產品開發和 IT，這兩者都支持我們推動軟體銷售成長的策略以及增加我們經常性收入的比例。我們將繼續在這些領域進行投資，以創造長期價值。

I think on the [permanence] comment, you can see that in our historical margin trends. We have a slide in our investor deck, it shows the historical transactional revenue and the company's consolidated margin. You look at the trailing fourth quarter transactional revenue, it's right around $200 million. That's substantially below the historical average, yet our EBITDA margin has improved by about 1,000 basis points from, call it, the mid-teens to the mid-20 percent despite the challenging environment.

我認為關於[永久性]評論，您可以在我們的歷史利潤率趨勢中看到這一點。我們的投資者平台中有一張幻燈片，它顯示了歷史交易收入和公司的合併利潤率。你看看去年第四季的交易收入，大約是 2 億美元。這大大低於歷史平均水平，但儘管環境充滿挑戰，我們的 EBITDA 利潤率仍提高了約 1,000 個基點，從 10% 左右提高到 20% 左右。

And going forward, this will continue to be a focus for us, certainly driving efficiencies. But also importantly, continuing to invest in the strategy.

展望未來，這將繼續成為我們關注的焦點，當然會提高效率。但同樣重要的是，繼續投資於該策略。

Dan, I don't know if you want to add to that?

丹，我不知道你是否想補充？

Yes. Thanks, Dave, and thanks for the question, Charlie.

是的。謝謝戴夫，也謝謝查理的提問。

Yes, a couple of things just to maybe amplify on permanence. As Dave said, the majority of these are permanent, and the reason being is that it's -- these are really -- most of them are changes driven by the change in the way we do business. And so there's a lot of externally-facing improvements that have been made in terms of external products and the way we serve clients.

是的，有幾件事可能只是為了增強持久性。正如戴夫所說，其中大多數都是永久性的，原因是它們實際上是由我們開展業務方式的變化所驅動的變化。因此，在外部產品和我們為客戶服務的方式方面進行了許多面向外部的改進。

And then we've also spent over the past several years and more work ahead of us on transforming the inner workings of the company and how we do work. And that's also led to new metrics being put in place, new ways of monitoring, et cetera, and that's also what's driven efficiency within the company. And as Dave said, these are net numbers. We continue to invest both in new product development, as Dave mentioned, and then also in enhancing the employee value proposition.

在過去的幾年裡，我們也花了更多的時間來改變公司的內部運作方式和我們的工作方式。這也導致了新的衡量標準、新的監控方式等的實施，這也是提高公司效率的原因。正如戴夫所說，這些是淨數字。正如戴夫所提到的，我們繼續投資新產品開發，然後也投資於提高員工價值主張。

So we've done a lot just to improve what we offer to the associates around the world who are making the strong results happen. And so a lot more ahead of us, but happy with what we've accomplished thus far.

因此，我們做了很多工作來改善我們為世界各地的員工提供的服務，他們正在取得出色的成果。我們還有很多工作要做，但我們對迄今為止所取得的成就感到滿意。

Great.

偉大的。

Just a quick follow-up. When you look at the strength in Software Sales this quarter, maybe a little bit more color behind what drove that? And the sustainability of that into the back half of the year?

只是快速跟進。當您查看本季軟體銷售的強勁表現時，您是否會發現推動這一成長的背後原因有更多的色彩？下半年的可持續性如何？

Yes, sure.

是的，當然。

So it was broad-based, as we mentioned, and so maybe a little bit of a different story in each one. We had signaled -- I'll start with ActiveDisclosure. We had signaled that as we work towards the decommission of AD3, which occurred in June, that we expected to see in the back half an uplift in sales growth. And we saw probably a quarter earlier than expected, and so I feel good about the momentum that we have with that product.

正如我們所提到的，它具有廣泛的基礎，因此每個故事可能都有一些不同的故事。我們已經表示——我將從 ActiveDisclosure 開始。我們曾表示，隨著我們致力於 6 月 AD3 的退役，我們預計下半年銷售成長將有所提升。我們看到的時間可能比預期早了一個季度，所以我對產品的勢頭感到滿意。

We have seen -- to the Venue, we've seen really strong performance, and we can go back and look at -- it just hasn't had the volatility that our transactions offering has had despite the fact that its main use case is M&A. Obviously, there's a lot more broader use case for Venue in terms of deals that may be private to private, utilizing the deal room, et cetera. But we've seen really strong performance, and that's been quarter in, quarter out, so feel good about that heading into the back half.

我們已經看到——對於場地來說，我們已經看到了非常強勁的性能，我們可以回去看看——它只是沒有我們的交易產品所具有的波動性，儘管它的主要用例是嘛。顯然，在私人對私人的交易、利用交易室等方面，Venue 有更廣泛的用例。但我們已經看到了非常強勁的表現，而且已經連續四分之一個季度了，所以對後半段的表現感覺很好。

As well, in our Arc Suite, which had strong growth in the quarter, we had said the same that last quarter was a bit of a depressed level, and we thought there would be higher sales growth going forward. So again, feel good there, and that's obviously independent of what we're looking at in '24 for Arc Suite relative to the TSR initiative.

同樣，在我們的 Arc Suite 中，本季成長強勁，我們也說過上季的水平有點低迷，我們認為未來會有更高的銷售成長。再說一次，感覺良好，這顯然與我們在 24 年對 Arc Suite 相對於 TSR 計劃的看法無關。

Your next question comes from the line of Kyle Peterson with Needham.

你的下一個問題來自凱爾彼得森和李約瑟的對話。

Great.

偉大的。

Just wanted to touch a little bit on the guide, and some of the assumptions behind the Capital Markets expectations for the coming quarter. It sounds like you guys were kind of optimistic about how 2Q ended and about how the quarter started so far, but I guess what assumptions you guys may put in the guide for Capital Markets activity for the balance of the quarter? Is it kind of a status quo in terms of what you guys have been seeing in the past 6 weeks or so? Or any improvement or deterioration? Any assumptions would be helpful.

只是想簡單介紹一下指南，以及資本市場對下一季的預期背後的一些假設。聽起來你們對第二季度的結束以及本季度到目前為止的開始情況持樂觀態度，但我猜你們可能會在本季度剩餘資本市場活動指南中做出什麼假設？就你們在過去 6 週左右所看到的情況來看，這是一種現狀嗎？或有什麼改善或惡化？任何假設都會有幫助。

Yes. Thanks for the question, Kyle.

是的。謝謝你的提問，凱爾。

I think when you look at the guidance and what we're implying, right, and I'll talk sequentially at first, right, the transactional activity in Capital Markets, I think went up $4 million or $5 million between Q1 and Q2. We're probably looking somewhere in that same range sequentially in the $50 million range, again, at the midpoint of our guidance. I think on a year-over-year basis, then that decline, it's still a decline, but certainly muted relative to the year-over-year declines that we saw in Q1 and Q2.

我認為，當您查看指南和我們所暗示的內容時，我將首先按順序討論資本市場的交易活動，我認為第一季和第二季之間增加了 400 萬美元或 500 萬美元。我們可能會在 5000 萬美元的範圍內依次尋找同一範圍內的某個位置，同樣是我們指導的中點。我認為，與去年同期相比，這種下降仍然是下降，但相對於我們在第一季和第二季看到的同比下降來說，肯定是溫和的。

So I would say, cautiously optimistic, right? The activity in June had a modest pickup, and that obviously flowed through to the sequential impact in the quarter, essentially expecting that sequential uptick again here in Q3.

所以我想說，謹慎樂觀，對嗎？ 6 月的活動略有回升，這顯然會影響到本季的環比影響，基本上預計第三季會再次出現環比上升。

That makes sense, and it's helpful.

這是有道理的，而且很有幫助。

And I just wanted to do a quick follow-up on compliance. It seems like that came in really strong this quarter. I know you guys called out both pricing and kind of pay versus performance disclosures, but I wanted to see if you guys could quantify or at least rank order on some of that upside and strength this quarter? Maybe how much came from pricing versus whether it be kind of a cross-sell, upsell or share gains here with some of these newer initiatives?

我只是想快速跟進合規情況。看來本季的表現非常強勁。我知道你們都提出了定價和薪酬與績效揭露的關係，但我想看看你們是否可以量化或至少對本季的一些優勢和實力進行排序？也許有多少來自定價，以及是否是交叉銷售、追加銷售或與這些新措施的分享收益？

Yes. And it's tough to bring out specifically, I would say, the vast majority of that compliance work. And again, I assume you're talking about the Compliance and Communications Management segment and the compliance revenue there. What was proxy-related, and again, some of it driven by in performance, et cetera, some of it driven by pricing. The 2 kind of blend together, right, as we're performing additional work on behalf of the clients, aggregate pricing goes up. So it's a bit difficult to strip those 2 apart, but generally, proxy was the overall driver there.

是的。我想說的是，很難具體介紹絕大多數合規工作。再說一遍，我假設您談論的是合規和通訊管理部門以及那裡的合規收入。什麼是與代理商相關的，同樣，其中一些是由性能驅動的，等等，其中一些是由定價驅動的。兩種混合在一起，對吧，當我們代表客戶執行額外的工作時，總定價就會上升。因此，將這兩者分開有點困難，但一般來說，代理是那裡的整體驅動力。

Yes, David, if you wanted me to add to that. It's Craig.

是的，大衛，如果你想讓我補充的話。這是克雷格。

So from a compliance perspective, we have Q2 of '22, big growth, so over 27%. And pleased with the 1% this quarter. You mentioned the areas, it's a result of a number of things which is increased client count, new disclosure for pay versus performance, which is the tagging of that exact comp table. And then certainly, price increases. We're in an inflationary environment, we were able to work with our clients and certainly capture the value that we're adding.

因此，從合規性角度來看，我們在 22 年第二季實現了大幅成長，超過 27%。對本季 1% 的成長感到滿意。您提到了這些領域，這是由於客戶數量增加、薪酬與績效的新披露以及確切的薪酬表的標記等因素造成的。當然，價格也會上漲。我們處於通貨膨脹的環境中，我們能夠與客戶合作，並且肯定會獲得我們所增加的價值。

So in CNCM compliance or our Software, we're really leveraging that entire team of deal experts here at DFIN, and I think it shows. The results show our extensive network and relationships throughout this ecosystem is really benefiting or reoccurring business, whether it's our CNCM or certainly our software.

因此，在 CNCM 合規性或我們的軟體方面，我們確實利用了 DFIN 的整個交易專家團隊，我認為這表明了這一點。結果表明，我們在整個生態系統中廣泛的網絡和關係確實使業務受益或重複出現，無論是我們的 CNCM 還是我們的軟體。

All right. Makes sense. That's helpful.

好的。說得通。這很有幫助。

Your next question comes from the line of Peter Heckmann with D.A. Davidson.

你的下一個問題來自 Peter Heckmann 和 D.A.戴維森。

I wanted to talk a little bit about price again. Hearing that come up, that's always a good sign. I guess, do you sense that -- I missed it, but I don't think you've quantified. Can you talk a little bit about -- for the year about how much you think price is moving up? And kind of how you allocate that between regular price increases on Software, but then kind of wage inflation-related increases on Tech-enabled Services?

我想再談談價格。聽到這個消息，這總是一個好兆頭。我想，你是否感覺到了——我錯過了，但我認為你沒有量化。您能談談您認為今年價格上漲了多少嗎？您如何在軟體的常規價格上漲和技術支援的服務上與薪資通膨相關的上漲之間進行分配？

Yes, Pete, I'll start.

是的，皮特，我要開始了。

I think when you look at from a pricing perspective, it will certainly vary from product to product. Craig mentioned the inflationary environment, and some of it's just the efforts to keep up or at least mitigate some of that. I think when you look at ActiveDisclosure and the transitions from AD3 to new AD, we talked about the price levels going up, mid- to high teens on average. A lot of that work has taken place over the last couple of years, and so incrementally, we're still ramping up on that product, right? And that's probably, call it, mid-single digit in 2023. And then I think when you look in aggregate, it's probably much closer to low single digit on a consolidated basis for the company. But again, that will vary from product to product.

我認為當你從定價的角度來看時，它肯定會因產品而異。克雷格提到了通貨膨脹環境，其中一些只是為了保持或至少減輕其中的一些努力。我認為，當您查看 ActiveDisclosure 以及從 AD3 到新 AD 的過渡時，我們討論了價格水平的上升，平均為中高十幾歲。在過去的幾年裡，我們已經完成了許多工作，因此我們仍在逐步增加該產品的開發力度，對嗎？這可能是 2023 年的中個位數。然後我認為，當你從總體上看時，它可能更接近公司綜合基礎上的低個位數。但同樣，這會因產品而異。

And to my earlier point, when Kyle asked the question, some of this is -- yes, we're getting paid more, but we're also doing more work so it's sometimes difficult to split that part. But I think low single digit is a decent indicator.

就我之前的觀點而言，當凱爾問這個問題時，其中一些是——是的，我們的薪水更高，但我們也做了更多的工作，所以有時很難分割這部分。但我認為低個位數是一個不錯的指標。

Okay. And then -- Craig.

好的。然後——克雷格。

Yes, maybe -- this is Craig.

是的，也許──這是克雷格。

To maybe just frame it a little bit. It's capturing the value, so it's capturing the value we were delivering, whether that's in service realm, whether it's our built-in price increases on renewals. It's the client recognizing the value of a better product, so signing up for multiyear contracts. We have price as an opportunity with our competitors where we're able to deliver and bring them to us where our clients are able to buy what they want, not being forced to pay for modules that they're not using. So it's really an opportunity for us to capture the value that we're creating and meet the market where it's at.

也許只是稍微框架一下。它正在捕捉價值，因此它正在捕捉我們正在提供的價值，無論是在服務領域，還是我們在續訂時內建的價格上漲。客戶認識到更好產品的價值，因此簽訂了多年合約。我們將價格作為與競爭對手合作的機會，我們能夠將它們交付給我們，讓我們的客戶能夠購買他們想要的東西，而不必被迫為他們不使用的模組付費。因此，這對我們來說確實是一個抓住我們正在創造的價值並滿足市場需求的機會。

Okay. That's helpful. That's helpful.

好的。這很有幫助。這很有幫助。

And then we've been talking about tailored shareholder reports for a while, and it does seem like an interesting opportunity. I know you're still trying to really get a tight quantification of the potential benefit. But could you give us some sort of broad range, just thinking about the multiple share classes and some of the additional work that might have to occur on a printing basis? I mean, is it reasonable to think something in the range of like the $20 million annual benefit? I'm just trying to figure out, is it the $10 million or $100 million in terms of the potential benefit?

然後我們已經討論了量身定制的股東報告一段時間，這似乎確實是一個有趣的機會。我知道您仍在嘗試真正嚴格量化潛在收益。但是您能否給我們一些廣泛的範圍，僅考慮多個共享類別以及可能必須在列印基礎上進行的一些額外工作？我的意思是，每年 2000 萬美元的福利是否合理？我只是想弄清楚，就潛在收益而言，是1000萬美元還是1億美元？

Yes, sure. So I'll start, and certainly, Eric or Dave, if you want to weigh in.

是的，當然。所以我會開始，當然，埃里克或戴夫，如果你想參與其中。

I think you're thinking about it the right way in terms of it will be a broad-based benefit across Software, Tech-enabled Services and Print and Distribution. We certainly will put numbers out there. As we mentioned, it will be later this year or beginning of next year. This is an opportunity that is -- or a requirement that goes from fund level to share class level, so you can think about a multiplier effect there.

我認為您正在以正確的方式思考它，因為它將為軟體、技術支援的服務以及印刷和發行帶來廣泛的好處。我們當然會公佈數字。正如我們所提到的，這將是今年晚些時候或明年初。這是一個機會，或者說是從基金層面到股票類別層面的要求，所以你可以考慮那裡的乘數效應。

That said, we're -- as Craig just mentioned, we look to charge based on the value that we add. We also know this is compliance-related work and our clients have fee pressure, et cetera, on the fund and ETF side. So we're selling both into third-party administrators and we're also selling into asset managers, and we'll look forward to providing additional guidance on the impact starting, and it will be a half year in '24, but starting the end of this year, beginning of next year.

也就是說，正如克雷格剛才提到的，我們希望根據我們增加的價值來收費。我們也知道這是與合規相關的工作，我們的客戶在基金和 ETF 方面面臨費用壓力等。因此，我們將這兩種產品出售給第三方管理機構，也出售給資產管理公司，我們期待著就影響開始提供額外的指導，這將是 24 年的半年時間，但開始今年年底，明年初。

Okay. All right.

好的。好的。

Pete, sorry.

皮特，對不起。

And just on Dan's comment, the rule becomes effective midyear next year. Depending on the cycles that each of the funds report on, the likely year 1 impact will be less than half a year would be probably 25%, as you get kind of the clients overlapping their reporting timing and then the full impact starting in 2025.

根據丹的評論，該規則將於明年年中生效。根據每個基金報告的週期，第一年的影響可能會不到半年，可能為 25%，因為您會發現客戶的報告時間重疊，然後從 2025 年開始產生全面影響。

(Operator Instructions) And your next question will come from the line of Raj Sharma with B. Riley.

（操作員說明）您的下一個問題將來自 Raj Sharma 和 B. Riley 的線路。

Congratulations on a good quarter.

恭喜您度過了一個美好的季度。

If -- can I jump into the guidance? I'm trying to understand the outlook for Q3 better. Given the results in Q2, it seems -- Q3 outlook seems conservative. If I look at them, can you comment on transactions versus compliance? The sequential performance you're expecting in Q3? Up, down, or transactions versus compliance? And then can we talk about Software, or Tech-enabled part or Print part?

如果——我可以跳入指南嗎？我試著更了解第三季的前景。考慮到第二季的結果，第三季的前景似乎保守。如果我查看它們，您能否對交易與合規性進行評論？您對第三季的連續表現有何期望？上漲、下跌，還是交易與合規性？然後我們可以談談軟體、技術支援部分或列印部分嗎？

Yes. Raj, it's Dave.

是的。拉傑，我是戴夫。

So I think I'll reiterate what I said on transactional, right? If you think about transactional sequentially, if you look at Q1 and Q2, we went from $41 million to just over $45 million and are estimating at the midpoint of our guidance around $50 million specific to transactional.

所以我想我會重申我在交易方面所說的話，對吧？如果你按順序考慮交易，如果你看看第一季和第二季度，我們從4100 萬美元增加到略高於4500 萬美元，並且根據我們的指導中位數估計，交易特定的費用約為5000 萬美元。

I think when you look at Compliance, that analysis is more challenging just given the seasonality of the business. Certainly, 1Q and 2Q are much higher than the Compliance sales that we drive in Q3 and Q4. But when you look at it on a year-over-year basis, Compliance was, call it, flat to slightly up in the first half of the year. And again, at the midpoint of our guidance, kind of broadly flat or in that range for the balance of the year, and that's inclusive of Q3. And that's on the Capital Markets side.

我認為，當您考慮合規性時，考慮到業務的季節性，該分析更具挑戰性。當然，第一季和第二季遠高於我們在第三季和第四季推動的合規銷售額。但如果你比去年同期來看，上半年的合規性是持平或略有上升。同樣，在我們指導的中點，今年剩餘時間的情況大致持平或處於該範圍內，其中包括第三季。這是資本市場方面的情況。

I think when we look at the Investment Companies Compliance work, again, some seasonality, a little bit less. Generally, we've seen some of that compliance shift from traditional to software. In the first couple of quarters, compliance revenue in investment companies was down, I think, $3.5 million over the first half of the year. And again, expecting something in that range again in the back half of the year.

我認為，當我們審視投資公司的合規工作時，再次發現，有些季節性，有點少。一般來說，我們已經看到一些合規性從傳統轉向軟體。我認為，前幾個季度投資公司的合規收入比上半年下降了 350 萬美元。再次，預計今年下半年會再次出現這項範圍內的情況。

Got it.

知道了。

And then on the Q2 results for -- can you talk about the actual level of the transactional makeup? How much was M&A and IPOs, and...

然後關於第二季的結果—您能談談交易構成的實際水準嗎？併購和首次公開募股的金額是多少，以及…

Yes. So I can kick off and then Craig, if you want to jump in with some additional detail here.

是的。所以我可以開始，然後克雷格，如果你想在這裡加入一些額外的細節。

When we look at, as we said, started to see a little bit of better IPO activity as we exited the quarter in June and the broad markets, they looked pretty reasonable in July as well. M&A remained very, very difficult. We commented that M&A was down 40% on a year-over-year basis, and so most of the benefit we saw was within IPO.

正如我們所說，當我們在 6 月退出該季度和廣泛市場時，我們開始看到 IPO 活動有所改善，7 月的情況看起來相當合理。併購仍然非常非常困難。我們評論說，併購同比下降了 40%，因此我們看到的大部分收益來自 IPO。

Craig, anything to add there?

克雷格，有什麼要補充的嗎？

Yes.

是的。

I think to reiterate, we have an M&A market that certainly has been significantly challenged, to say the least. When you look at the deals that are from CapIQ, whether it's $1 billion, whether it's $500 million, you have to go back before 2016 to find a market that even comes close. In the quarter, it was -- it doesn't even be the COVID 2020 year. So certainly, in M&A market, it was challenged. For the deals that are announced, we've been doing pretty well and holding our share there, just [many] fewer.

我想重申一下，至少可以說，我們的併購市場肯定受到了重大挑戰。當你查看 CapIQ 的交易時，無論是 10 億美元還是 5 億美元，你都必須回到 2016 年之前才能找到一個甚至接近的市場。在本季度，甚至還不是 2020 年。當然，在併購市場中，它受到了挑戰。對於已宣布的交易，我們一直做得很好，並持有我們的份額，只是少了[很多]。

And then from an IPO perspective, it's a market that's rebuilding. It is not fully open yet, the recovery is not going to be a straight line, but there are reasons to be upbeat as we've talked about.

從IPO的角度來看，這是一個正在重建的市場。它還沒有完全開放，復甦不會是一條直線，但正如我們所說，有理由保持樂觀。

So we talked about the quarter, we see a little bit of movement publicly in July, but a lot of it is still under the water line. The pipeline for companies to go publicly filed deals over $100 million now stands at [25], and we have our historic share of that which is strong, and that does not include the companies who filed confidentially. So that really gets at what our clients are telling us, which is that the barriers to resurgence in the IPO market appear to be lifting. So you can pick your metric, whether it's the Fed, whether it's the NASDAQ. But what we're going to see is likely this backlog starting to clear in 2023 and then moving into 2024.

所以我們談論了這個季度，我們在 7 月公開看到了一些變化，但其中許多仍處於水位線以下。目前，公司公開提交超過 1 億美元交易的管道已達 [25]，而且我們在這方面擁有歷史性的強勁份額，而且這還不包括秘密提交的公司。因此，這真正體現了我們的客戶告訴我們的，即 IPO 市場復甦的障礙似乎正在消除。所以你可以選擇你的指標，無論是聯準會，還是納斯達克。但我們將看到積壓的訂單可能會在 2023 年開始清理，然後進入 2024 年。

So certainly, it's better to talk about the excitement, but it won't be a straight line as we accelerate.

所以當然，最好談論興奮，但當我們加速時，它不會是一條直線。

Great.

偉大的。

And then just lastly, I know in the recent past you've talked about Software Sales, you've kind of guided to the next few years, over the next few years, doubling of Software Sales. Is that target we're still sticking to? And what year are we talking about that you can double software sales? By the '25 or fiscal '26, or...

最後，我知道您最近談到了軟體銷售，您已經在某種程度上引導了未來幾年，在未來幾年中，軟體銷售量將翻倍。我們仍然堅持這個目標嗎？我們談論的是哪一年軟體銷量可以翻倍？到 '25 或 '26 財年，或...

Yes. So I can -- let me start on that, Dave, and then if you want to grab it.

是的。所以我可以——讓我從這個開始，戴夫，然後如果你想抓住它的話。

So I think if you look at the historical and just when we spun out, we were about $135 million of software revenue, and so you can look at the doubling there over several years. Obviously, given the product line, there's uneven or not a linear progression. So in 2021, I think we're up about 35% in software sales or something in that range.

所以我認為，如果你看看歷史，當我們分拆出來時，我們的軟體收入約為 1.35 億美元，所以你可以看到幾年內翻了一番。顯然，考慮到產品線，存在不均勻或非線性的進展。因此，我認為到 2021 年，我們的軟體銷售額將成長約 35% 或在這個範圍內。

And so as we look forward, the guidance that we've given and Venue, as I've mentioned, sensitive to M&A, is that Venue will have slightly lower growth than the compliance offerings, and we're starting to see the compliance offerings pick up some speed. Obviously, we've talked about the TSR regulation and some additional regulations that will be helpful, with part of the benefit hitting in the software area and part of the benefit hitting in other areas of the company.

因此，正如我們所提到的，我們給予的指導和 Venue 對併購敏感，Venue 的成長將略低於合規產品，而且我們開始看到合規產品加快一些速度。顯然，我們已經討論了 TSR 法規和一些會有所幫助的附加法規，其中部分利益影響到軟體領域，部分利益影響到公司的其他領域。

Right. So getting to the $600 million in software revenues, that implies a pretty strong growth rate out to -- is that 2025, 2026 time period? And that's all.

正確的。因此，軟體收入達到 6 億美元，這意味著 2025 年、2026 年期間會有相當強勁的成長率嗎？就這樣。

Yes, Raj. Sorry. It was [top] $500 million, and that's in 2026.

是的，拉傑。對不起。 [最高] 5 億美元，那是在 2026 年。

Yes, which is where you get to the 55% to 60%, which is the -- of the total or so.

是的，這就是總數的 55% 到 60% 左右。

I will now hand the call back over to Dan Leib for any closing remarks.

現在，我將把電話轉回給丹‧萊布 (Dan Leib)，讓其發表結束語。

Great.

偉大的。

Thank you, Regina, and thank you, everyone, for joining us, and we look forward to speaking in the near future. Thank you.

謝謝你，雷吉娜，謝謝大家加入我們，我們期待在不久的將來發表演講。謝謝。

That will conclude today's conference. Thank you all for joining. You may now disconnect.

今天的會議到此結束。感謝大家的加入。您現在可以斷開連線。