Donnelley Financial Solutions Inc (DFIN) 2024 Q2 法說會逐字稿

Thank you for standing by. My name is Aimee and I will be your conference operator for today. At this time I would like to welcome everyone to the Donnelley Financial Solutions second quarter earnings conference Call. All lines have been placed on mute to prevent any background noise.

謝謝你的支持。我叫艾米，今天我將擔任你們的會議接線生。現在，我歡迎大家參加唐納利金融解決方案公司第二季財報電話會議。所有線路均已靜音，以防止任何背景噪音。

It is now my pleasure to turn the call over to Mike Zhao, Head of Investor Relations. You may begin.

現在我很高興將電話轉給投資者關係主管麥克趙。你可以開始了。

Thank you. Good morning, everyone, and thank you for joining Donnelley Financial Solutions' second quarter 2024 results conference call. This morning we have 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. During this call, we will 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.

謝謝。大家早安，感謝您參加 Donnelley Financial Solutions 的 2024 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。在本次電話會議中，我們將提及具有風險和不確定性的前瞻性陳述。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. I am joined this morning by Dan Leib, Dave Gardella, and other members of management.

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。今天早上，丹·萊布 (Dan Leib)、戴夫·加德拉 (Dave Gardella) 和其他管理層成員也加入了我的行列。

I will now turn the call over to Dan.

我現在將把電話轉給丹。

Thank you Mike, and good morning everyone. I am pleased with our second quarter operating performance. We delivered strong results including improved revenue performance, record quarterly adjusted EBITDA and adjusted EBITDA margin, as well as increases in both operating cash flow and free cash flow. Our second quarter performance highlights the continued progress we are making in our transformation and positions us well to achieve our long-term financial targets. We continue to make progress against a number of the objectives that underpin our long-term plan that we communicated earlier this year.

謝謝麥克，大家早安。我對我們第二季的經營業績感到滿意。我們取得了強勁的業績，包括營收業績改善、創紀錄的季度調整後 EBITDA 和調整後 EBITDA 利潤率，以及營運現金流和自由現金流的增加。我們第二季的業績凸顯了我們在轉型方面取得的持續進展，並使我們能夠很好地實現長期財務目標。我們繼續在一些目標上取得進展，這些目標是我們今年早些時候傳達的長期計劃的基礎。

First, we continue to transform DFIN into a solution centric company often delivered by software. Total software solutions net sales grew 14.4% on an organic basis year-over-year, a continuation of the strong growth rate we achieved in the first quarter of this year, comprising 35.3% of total second quarter net sales, an increase of approximately 400 basis points from last year's second quarter.

首先，我們繼續將 DFIN 轉型為以解決方案為中心的公司（通常由軟體交付）。軟體解決方案總淨銷售額年增 14.4%，延續了今年第一季的強勁成長率，佔第二季總淨銷售額的 35.3%，成長了約 400%去年第二季的基點。

As a reminder, the second quarter largely due to the proxy season historically represents a seasonal low for software as a percentage of revenue. On a trailing four quarter basis, software solutions net sales reached nearly $313 million, growing 10.1% or 11.3% on an organic basis from the second quarter 2023 trailing four quarters, representing 39% of trailing four quarter sales, an increase of approximately 340 basis points.

提醒一下，第二季度主要是由於代理季節，從歷史上看，軟體佔收入的百分比處於季節性低點。以過去四個季度計算，軟體解決方案淨銷售額達到近3.13 億美元，較2023 年第二季過去四季有機成長10.1% 或11.3%，佔過去四個季度銷售額的39%，成長約340%點。

Our second quarter software solutions net sales growth continues to be led by the performance of Venue, our virtual dataroom product, which posted approximately 38% sales growth. We remain encouraged by Venue's strong performance, which reflects strong sales execution across Venue's broad application within the M&A ecosystem that serves both public and private companies.

我們第二季的軟體解決方案淨銷售額成長持續受到我們的虛擬資料室產品 Venue 業績的帶動，該產品的銷售額成長了約 38%。我們仍然對 Venue 的強勁表​​現感到鼓舞，這反映出 Venue 在為上市公司和私人公司提供服務的併購生態系統中廣泛應用的強大銷售執行力。

In addition, the growth rates of our recurring compliance software products, ActiveDisclosure and Arc Suite both remain positive in the second quarter, albeit at low single digit growth rate. Looking ahead, we expect the growth rates for ActiveDisclosure and Arc Suite each to improve in the second half of this year.

此外，我們的經常性合規軟體產品 ActiveDisclosure 和 Arc Suite 在第二季度均保持正成長，儘管成長率較低。展望未來，我們預計 ActiveDisclosure 和 Arc Suite 的成長率將在今年下半年有所提升。

For ActiveDisclosure, this improvement is driven by recent wins combined with overlapping last year's platform transition. In the case of Arc Suite, the improved growth rate is primarily driven by the tailwind from the Tailored Shareholder Reports regulation.

對於 ActiveDisclosure 來說，這項改進是由最近的勝利以及去年平台過渡的重疊所推動的。就 Arc Suite 而言，成長率的提高主要是受到客製化股東報告監管的推動。

As we continue to evolve toward a higher mix of software solutions net sales during the second quarter that mix shift was accelerated by a reduction in print and distribution revenue, which declined by $7 million or 11.3%, compared to the second quarter of 2023. This reduction was realized both in the printing and distribution of proxy statements, as well as lower print associated with capital markets transactions. Excluding print and distribution, second quarter net sales increased by approximately 4%.

隨著我們在第二季度繼續向更高的軟體解決方案組合發展，淨銷售額的組合轉變因印刷和發行收入的減少而加速，與2023 年第二季度相比，印刷和發行收入下降了700萬美元，即11.3%。這種減少是透過代理聲明的印刷和分發以及與資本市場交易相關的印刷量的減少來實現的。不包括印刷和發行，第二季淨銷售額成長約4%。

As software solution and tech-enabled services net sales make up an increasingly larger percentage of our overall net sales, this positive shift is resulting in our sales mix becoming more stable and predictable.

隨著軟體解決方案和技術支援的服務淨銷售額在我們整體淨銷售額中所佔的比例越來越大，這種積極的轉變導致我們的銷售組合變得更加穩定和可預測。

On a trailing four quarter basis, sales of our recurring and reoccurring offerings, which include solutions that serve the ongoing compliance needs of corporations and investment companies plus the Venue dataroom, totaled over $590 million and accounted for approximately 74% of total sales, with the remainder, or approximately $210 million being event-driven transactional revenue. With nearly three quarters of our revenue being either recurring or reoccurring in nature, our business benefits from the stability and predictability inherent in such a revenue model. Especially during times of market volatility as we invest to accelerate our recurring growth while protecting market share in our transactional traditional offerings, we will continue to shift DFIN toward a higher mix of recurring and reoccurring revenue.

在過去的四個季度中，我們的經常性和經常性產品（包括滿足企業和投資公司持續合規需求的解決方案以及Venue 數據室）的銷售額總計超過5.9 億美元，約佔總銷售額的74%，其中其餘的，即約 2.1 億美元是事件驅動的交易收入。由於我們近四分之三的收入是經常性的或本質上是經常性的，我們的業務受益於這種收入模式固有的穩定性和可預測性。特別是在市場波動時期，我們進行投資以加速經常性成長，同時保護傳統交易產品的市場份額，我們將繼續將 DFIN 轉向更高的經常性和經常性收入組合。

The shift to a more favorable sales mix in conjunction with disciplined cost management and pricing improvements results in adjusted EBITDA margin expansion as we continue to balance our revenue profile to drive improved profitability.

隨著我們繼續平衡收入狀況以提高獲利能力，轉向更有利的銷售組合，加上嚴格的成本管理和定價改進，導致調整後的 EBITDA 利潤率擴大。

Our second quarter adjusted EBITDA margin of 35.9% raised the trailing four quarter adjusted EBITDA margin to 29% further providing confidence in our ability to achieve our long-term targets. Dave will cover our results in more detail, but first, I'd like to provide an update on the Tailored Shareholder Reports regulation, which had a compliance date of July 24.

我們第二季調整後 EBITDA 利潤率為 35.9%，將過去四個季度調整後 EBITDA 利潤率提高至 29%，進一步增強了我們實現長期目標的能力的信心。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 7 月 24 日。

As I have noted previously, as the leader in both financial reporting and regulatory filings for investment companies, DFIN has been at the forefront in helping Mutual Funds and Exchange-Traded Funds clients operationalize the reporting to comply with this regulation. We demonstrated our readiness for TSR by completing critical test filings via both our ArcReporting SaaS solution as well as our services based offering prior to the July '24 compliance date.

正如我之前所指出的，作為投資公司財務報告和監管備案方面的領導者，DFIN 一直處於幫助共同基金和交易所交易基金客戶實施報告以遵守該法規的最前沿。我們透過 ArcReporting SaaS 解決方案以及基於服務的產品在 7 月 24 日合規日期之前完成關鍵測試歸檔，證明了我們已做好 TSR 準備。

In the short time since TSR's compliance date, we have successfully filed multiple live TSR documents on behalf of our clients thus far in July, which reflects DFIN's proven ability to handle the complexities of the entire TSR ruling by serving clients the way they wish to work, via either SaaS based solutions or traditional services, all in a one stop shop that eliminates handoffs in the compliance process.

自TSR 合規之日起的短時間內，我們已於7 月份代表客戶成功提交了多份實時TSR 文件，這反映了DFIN 有能力以客戶希望的方式為客戶提供服務，從而處理整個TSR 裁決的複雜性透過基於 SaaS 的解決方案或傳統服務，所有這些都在一站式服務中，消除了合規流程中的交接。

Given we are in the early days of TSR compliance, DFIN remains focused on assisting our clients to comply with the requirements under this regulation. As we look beyond TSR to an increasingly complex regulatory and compliance environment, DFIN stands ready to serve future regulatory changes. Amongst the changes, the Financial Data Transparency Act, which passed in December of 2022, expansion of statutory reporting to local government agencies and financial reporting for alternative investments are a few examples of regulatory changes, which have the potential to create future opportunities for DFIN.

鑑於我們正處於 TSR 合規的早期階段，DFIN 仍致力於協助我們的客戶遵守該法規的要求。當我們將目光從 TSR 轉向日益複雜的監管和合規環境時，DFIN 已準備好應對未來的監管變化。在這些變化中，2022 年12 月通過的《金融數據透明度法案》、擴大向地方政府機構的法定報告以及另類投資的財務報告是監管變化的幾個例子，這些變化有可能為DFIN 創造未來的機會。

As the regulatory landscape continues to evolve, our advanced technology platform and industry leading service capabilities put DFIN in an excellent position to capture recurring revenue opportunities.

隨著監管環境的不斷發展，我們先進的技術平台和領先業界的服務能力使 DFIN 處於捕捉經常性收入機會的絕佳位置。

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？

Thank you, Dan, and good morning everyone. Before I discuss our second quarter financial performance, I'd like to recap one housekeeping item. Concurrent with the release of our second quarter results, we published a set of software operating metrics for ActiveDisclosure and Arc Suite, which can be found within our supplemental trending schedule of our historical results posted on our Investor relations website.

謝謝丹，大家早安。在討論我們第二季的財務表現之前，我想先回顧一下一項內務管理專案。在發布第二季業績的同時，我們發布了一套 ActiveDisclosure 和 Arc Suite 的軟體營運指標，您可以在投資者關係網站上發布的歷史業績補充趨勢表中找到這些指標。

The publication of these software metrics reflects our efforts to provide investors additional detail into the performance and trends of our recurring compliance software products. We will continue to evaluate additional software metrics for disclosure in the future.

這些軟體指標的發布反映了我們為向投資者提供有關我們經常性合規軟體產品的性能和趨勢的更多詳細資訊而做出的努力。我們將繼續評估未來揭露的其他軟體指標。

Now, turning to our second quarter results. As Dan noted, we continue to make solid progress in our transformation during the second quarter by delivering modest consolidated net sales growth, record quarterly adjusted EBITDA and strong improvements in both operating cash flow and free cash flow compared to the second quarter of 2023. By continuing our shift toward a more profitable sales mix while also driving operating efficiencies, we expanded our second quarter adjusted EBITDA margin by 520 basis points to 35.9%, also a quarterly record for DFIN.

現在，轉向我們的第二季業績。正如Dan 所指出的那樣，與2023 年第二季度相比，我們在第二季度的轉型中繼續取得紮實進展，實現了適度的綜合淨銷售額增長、創紀錄的季度調整後EBITDA 以及運營現金流和自由現金流的強勁改善。透過持續轉向利潤更高的銷售組合，同時提高營運效率，我們將第二季調整後 EBITDA 利潤率擴大了 520 個基點，達到 35.9%，這也是 DFIN 的季度記錄。

On a consolidated basis, total net sales for the second quarter of 2024 were $242.7 million, an increase of $0.6 million or 0.2% on a reported basis, and 0.7% on an organic basis from the second quarter of 2023. The increase in net sales is primarily driven by the growth in software solutions, which increased $9.9 million, or 14.4% on an organic basis and more than offset a decline in capital markets and investment companies compliance revenue. We continue to deprioritize certain low margin traditional compliance work, a component of which is related to print and distribution volume. Excluding print and distribution, net sales grew approximately 4%, as Dan noted earlier.

綜合來看，2024 年第二季的淨銷售額總額為 2.427 億美元，報告基礎上增加了 60 萬美元，增幅為 0.2%，有機基礎銷售額較 2023 年第二季增長 0.7%。淨銷售額的成長主要是由軟體解決方案的成長推動的，軟體解決方案成長了 990 萬美元，即有機成長 14.4%，足以抵消資本市場和投資公司合規收入的下降。我們繼續取消某些低利潤的傳統合規工作的優先順序，其中一部分與印刷和發行量有關。正如 Dan 之前指出的，不包括印刷和發行，淨銷售額增長了約 4%。

Second quarter adjusted non-GAAP gross margin was 64.4%, approximately 490 basis points higher than the second quarter of 2023, primarily driven by a favorable business mix featuring growth in higher margin software solution sales combined with lower overall print volume and the impact of ongoing cost control initiatives. Adjusted non-GAAP SG&A expense in the quarter was $69 million, a $0.7 million decrease from the second quarter of 2023. As a percentage of net sales adjusted non-GAAP SG&A was 28.4%, a decrease of approximately 40 basis points from the second quarter of 2023. Decrease in adjusted non-GAAP SG&A was primarily driven by cost control initiatives, a portion of which was related to lower investment spending partially offset by an increase in selling expenses as a result of the changes in the business mix and higher bad debt expense.

第二季調整後的非GAAP 毛利率為64.4%，比2023 年第二季高出約490 個基點，這主要是由於有利的業務組合推動的，其中包括利潤率較高的軟體解決方案銷售的成長、整體印刷量的下降以及持續的影響。本季調整後的非 GAAP SG&A 費用為 6,900 萬美元，比 2023 年第二季減少 70 萬美元。調整後的非 GAAP SG&A 佔淨銷售額的百分比為 28.4%，較 2023 年第二季下降約 40 個基點。調整後的非公認會計準則銷售費用的減少主要是由成本控制措施推動的，其中一部分與投資支出的減少有關，部分抵消了業務組合變化和壞帳費用增加導致的銷售費用的增加。

Moving forward, we will continue to balance cost reductions with investing in initiatives to accelerate our transformation. Our second quarter adjusted EBITDA was $87.2 million an increase of $12.9 million or 17.4%, from the second quarter of 2023. Second quarter adjusted EBITDA margin was 35.9%, an increase of approximately 520 basis points from the second quarter of 2023, primarily driven by a favorable sales mix and cost control initiatives.

展望未來，我們將繼續在降低成本和投資加速轉型之間取得平衡。我們第二季調整後的 EBITDA 為 8,720 萬美元，比 2023 年第二季增加了 1,290 萬美元，即 17.4%。第二季調整後 EBITDA 利潤率為 35.9%，較 2023 年第二季成長約 520 個基點，主要受到有利的銷售組合和成本控制措施的推動。

Turning now to our second quarter results by segment. Net sales in our capital markets software solutions segment were $57.3 million an increase of 22.2% on an organic basis from the second quarter of last year, driven once again by the strong performance in Venue, which was up $10.3 million, or approximately 38% year-over-year. On a trailing four quarter basis, Venue has reached nearly $130 million in sales and grew approximately 29% compared to the second quarter 2023 trailing four quarter period.

現在轉向我們按部門劃分的第二季業績。我們資本市場軟體解決方案部門的淨銷售額為 5,730 萬美元，較去年第二季度有機增長 22.2%，這再次受到 Venue 強勁表現的推動，該部門增長了 1,030 萬美元，同比增長約 38% -同比。在過去四個季度的基礎上，Venue 的銷售額已達到近 1.3 億美元，與 2023 年第二季度相比，過去四個季度增長了約 29%。

Consistent with the recent trend, Venue continued to benefit from an increase in page volume on the platform and higher pricing during the second quarter. In addition, our strong sales execution once again resulted in several large client wins in the quarter with those projects combining to account for approximately one third of Venue's second quarter net sales growth. While still significant large projects in the second quarter represented a smaller component of Venue's overall growth compared to the first quarter of this year with the bulk of Venue's growth in the second quarter attributable to the resilient underlying activity level and our strong sales execution.

與近期趨勢一致，第二季 Venue 繼續受益於平台頁面量的增加和更高的定價。此外，我們強大的銷售執行力再次在本季度贏得了多個大客戶，這些項目合計約佔 Venue 第二季淨銷售成長的三分之一。儘管與今年第一季相比，第二季的大型專案在Venue 整體成長中所佔的比例較小，但第二季Venue 的成長大部分歸功於彈性的基礎活動水準和我們強勁的銷售執行力。

Going forward we expect Venue to continue to deliver solid year-over-year growth, albeit at a more moderate pace compared to the robust growth rates we achieved in the first two quarters of this year given the impact of the large projects in addition to overlapping Venue's stronger performance in the second half of 2023. Net sales of our recurring compliance product ActiveDisclosure, including File 16, increased approximately 1% in the second quarter, driven primarily by growth in subscription revenue, which increased 2% versus the second quarter of last year, partially offset by lower Section 16 beneficial ownership filing activity.

展望未來，我們預計 Venue 將繼續實現穩健的同比增長，儘管與我們今年前兩個季度實現的強勁增長率相比，鑑於大型項目以及重疊的影響，增長速度更為溫和Venue在2023年下半年表現更強勁。我們的經常性合規產品ActiveDisclosure（包括File 16）的淨銷售額在第二季度增長了約1%，這主要是由於訂閱收入的增長推動的，訂閱收入比去年第二季度增長了2%，部分被第16 條受益所有權的減少所抵銷歸檔活動。

The demand for beneficial ownership filings continues to be impacted by a weak IPO market as well as elevated client churn as we transition to a subscription based model, a trend which we expect to continue in the near-term. During the second quarter, we made continued progress to expand the adoption of ActiveDisclosure, resulting in the fourth consecutive quarter of net client count growth. In addition to the positive trend in net client growth, we are encouraged by the improvement in the operating metrics of ActiveDisclosure, including an 11% year-over-year growth in annualized recurring revenue inclusive of contracted service packages driven by an increasing client count as well as higher average value per client.

對實益所有權申請的需求繼續受到 IPO 市場疲軟以及我們過渡到基於認購模式的客戶流失率上升的影響，我們預計這一趨勢將在短期內持續下去。第二季度，我們在擴大 ActiveDisclosure 的採用方面取得了持續進展，導致淨客戶數量連續第四個季度成長。除了淨客戶成長的正面趨勢外，我們還對 ActiveDisclosure 營運指標的改善感到鼓舞，包括年化經常性收入同比增長 11%，其中包括因客戶數量不斷增加而推動的合約服務包以及更高的每個客戶的平均價值。

The momentum in client count growth, coupled with our recent product enhancements, create a strong foundation for future sales growth. As we have stated previously, we expect ActiveDisclosure's growth in the second half of 2024 to be stronger than in the first half as we overlap some of the headwinds we experienced in 2023, including elevated customer churn as a result of the transition to new ActiveDisclosure and the impact of SPAC liquidations. Adjusted EBITDA margin for the segment was 37%, an increase of approximately 930 basis points from the second quarter of 2023 primarily due to higher net sales and a favorable sales mix from the growth in our high margin Venue dataroom offering and cost control initiatives partially offset by higher selling expenses.

客戶數量成長的勢頭，加上我們最近的產品改進，為未來的銷售成長奠定了堅實的基礎。正如我們之前所說，我們預計 ActiveDisclosure 在 2024 年下半年的成長將強於上半年，因為我們與 2023 年經歷的一些不利因素相重疊，包括由於過渡到新的 ActiveDisclosure 導致的客戶流失率上升和SPAC清算的影響。該部門調整後的EBITDA 利潤率為37%，較2023 年第二季增加約930 個基點，主要是由於淨銷售額增加以及高利潤率場地資料室產品和成本控制舉措的成長帶來的有利銷售組合，部分抵消了這一影響通過更高的銷售費用。

Net sales in our capital markets compliance and communications management segment were $113.8 million, a decrease of $9.1 million, or 7.4% from the second quarter of 2023, driven primarily by lower capital markets compliance revenue. The decline in compliance revenue was primarily due to the exit of certain proxy statement activity, including the related printing and distribution as Dan commented earlier.

資本市場合規和通訊管理部門的淨銷售額為 1.138 億美元，比 2023 年第二季減少 910 萬美元，即 7.4%，這主要是由於資本市場合規收入下降。合規收入下降主要是由於某些委託書活動的退出，包括丹早些時候評論的相關印刷和分發。

Given the first half of the year is the peak for proxy related activity, we expect the impact from the reductions to become less significant in the second half of the year. In the second quarter, we recorded $45.2 million of capital markets transactional revenue approximately flat compared to last year's second quarter. While we continue to experience a year-over-year improvement in IPO activity during the second quarter, which resulted in an increased number of priced IPOs, which raised over $100 million compared to the second quarter of 2023, the market for completed M&A deals in the US remained down on a year-over-year basis.

鑑於上半年是代理相關活動的高峰，我們預計下半年削減的影響將變得不那麼顯著。第二季度，我們錄得 4,520 萬美元的資本市場交易收入，與去年第二季基本持平。雖然第二季 IPO 活動繼續同比改善，導致定價 IPO 數量增加，與 2023 年第二季度相比籌集了超過 1 億美元，但已完成併購交易的市場美國同比仍然下降。

Overall, the deal environment remains soft compared to historical averages. For IPO and M&A transactions that were completed in the second quarter, we maintain our historical high market share reflective of DFIN's strong market position within capital markets transactions. 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.

總體而言，與歷史平均水平相比，交易環境仍然疲軟。對於第二季完成的 IPO 和併購交易，我們保持了歷史最高的市場份額，這反映了 DFIN 在資本市場交易中的強大市場地位。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。

Adjusted EBITDA margin for the segment was 40.2% an increase of approximately 370 basis points from the second quarter of 2023. The increase in adjusted EBITDA margin was primarily due to a favorable sales mix as print and distribution revenue becomes a smaller component of overall revenue within this segment, as well as the impact of cost control initiatives. This was partially offset by lower sales volumes and higher bad debt expense.

該部門調整後 EBITDA 利潤率為 40.2%，較 2023 年第二季增加約 370 個基點。調整後 EBITDA 利潤率的增加主要是由於印刷和發行收入在該部門總收入中所佔比例較小，因此有利的銷售組合，以及成本控制舉措的影響。這被銷售下降和壞帳費用上升部分抵消。

Net sales in our investment company software solutions segment were $28.3 million an increase of 1.1% versus the second quarter of 2023, primarily driven by growth in the ArcReporting and ArcDigital modules within Arc Suite. Total Arc Suite subscription revenue declined 1% compared to the second quarter of 2023, which was more than offset by a higher services and support revenue which increased approximately 12% year-over-year. As Dan commented earlier, based on the incremental software revenue from Tailored Shareholder Reports, we expect stronger revenue growth in the second half of 2024 and into 2025. We remain well positioned to capture opportunities from regulatory changes to drive future recurring revenue growth.

我們的投資公司軟體解決方案部門的淨銷售額為 2,830 萬美元，與 2023 年第二季相比成長 1.1%，這主要是受到 Arc Suite 中 ArcReporting 和 ArcDigital 模組成長的推動。與 2023 年第二季相比，Arc Suite 總訂閱收入下降了 1%，但服務和支援收入年增約 12%，足以抵消這一影響。正如 Dan 先前評論的那樣，根據客製化股東報告帶來的軟體收入增量，我們預計 2024 年下半年到 2025 年收入成長將更加強勁。我們仍處於有利地位，可以抓住監管變化帶來的機遇，推動未來經常性收入的成長。

Adjusted EBITDA margin for the segment was 39.2%, an increase of approximately 100 basis points from the second quarter of 2023. The increase in adjusted EBITDA margin was primarily due to higher sales and cost control initiatives.

該部門調整後 EBITDA 利潤率為 39.2%，較 2023 年第二季增加約 100 個基點。調整後 EBITDA 利潤率的增加主要是由於銷售和成本控制措施的增加。

Net sales in our Investment Companies Compliance and Communications Management segment were $43.3 million, a decrease of $0.2 million, or 0.5%, from the second quarter of 2023, driven primarily by a reduction in print and distribution revenue related to the long-term secular decline in the demand for printed materials, partially offset by higher event driven revenue from a large mutual fund special proxy project.

投資公司合規與通訊管理部門的淨銷售額為 4,330 萬美元，較 2023 年第二季減少 20 萬美元，即 0.5%，主要是由於長期長期下滑導致印刷和發行收入減少對印刷材料的需求，部分被大型共同基金特別代理項目的較高事件驅動收入所抵銷。

Adjusted EBITDA margin for the segment was 42.3%, approximately 300 basis points higher than the second quarter of 2023. The increase in adjusted EBITDA margin was primarily due to a favorable sales mix and the impact of cost reduction initiatives, including continued synergies from our print platform consolidation. Non-GAAP unallocated corporate expenses were $9.2 million in the quarter, a decrease of $2.4 million from the second quarter of 2023, primarily driven by the impact of cost control initiatives, a portion of which was related to lower investment spending. Free cash flow in the quarter was positive, $36.8 million, an improvement of $29.8 million compared to the second quarter of 2023.

該部門調整後 EBITDA 利潤率為 42.3%，比 2023 年第二季高出約 300 個基點。調整後 EBITDA 利潤率的成長主要歸因於有利的銷售組合和成本削減措施的影響，包括我們的列印平台整合帶來的持續協同效應。本季非 GAAP 未分配企業費用為 920 萬美元，較 2023 年第二季減少 240 萬美元，主要是由於成本控制措施的影響，其中一部分與投資支出減少有關。本季自由現金流為正，為 3,680 萬美元，比 2023 年第二季增加了 2,980 萬美元。

The strong year-over-year improvement in free cash flow is primarily driven by an increase in adjusted EBITDA and improved working capital performance, part of which is a result of our changing sales mix, featuring more software solution sales and less print and distribution sales. These improvements were partially offset by higher capital expenditures related to investments in our software products and the underlying technology to support them. We ended the quarter with $179.6 million of total debt, or $144.6 million on a non-GAAP net debt basis, including $55 million drawn on our revolver, down from $80 million drawn at the end of the first quarter.

自由現金流的同比強勁成長主要是由於調整後 EBITDA 的成長和營運資金績效的改善，其中部分原因是我們銷售組合的變化，即軟體解決方案銷售增加，印刷和分銷銷售減少。這些改進部分被與我們的軟體產品和支援它們的底層技術投資相關的更高資本支出所抵消。本季末，我們的總債務為 1.796 億美元，以非 GAAP 淨債務計算為 1.446 億美元，其中包括我們的左輪手槍提取的 5,500 萬美元，低於第一季末提取的 8,000 萬美元。

From a liquidity perspective, we had access to the remaining $244 million of our revolver, as well as $35 million of cash on hand. As of June 30, 2024, our non-GAAP net leverage ratio was 0.6 times. As a reminder, our cash flow is historically seasonal. We are a user of cash in the first half and generate more than 100% of our free cash flow in the second half of the year.

從流動性角度來看，我們可以動用剩餘的 2.44 億美元左輪手槍，以及 3500 萬美元的手頭現金。截至 2024 年 6 月 30 日，我們的非 GAAP 淨槓桿率為 0.6 倍。提醒一下，我們的現金流在歷史上是季節性的。我們上半年是現金用戶，下半年產生超過 100% 的自由現金流。

As our sales mix continues to evolve to proportionally more subscription based software solutions, we expect the seasonality to be less significant as we have experienced so far in 2024. Regarding capital deployment, we repurchased approximately 317,000 shares of our common stock during the second quarter for $19.2 million at an average price of $60.65 per share. As of June 30, 2024, we had $122 million remaining on our $150 million stock repurchase authorization.

隨著我們的銷售組合繼續發展為更多基於訂閱的軟體解決方案，我們預計季節性因素將不像 2024 年迄今所經歷的那樣明顯。在資本部署方面，我們在第二季以 1,920 萬美元回購了約 317,000 股普通股，平均價格為每股 60.65 美元。截至 2024 年 6 月 30 日，我們的 1.5 億美元股票回購授權尚剩餘 1.22 億美元。

Going forward, we will continue to take a balanced approach toward 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.

未來，我們將繼續採取平衡的資本配置方式。我們繼續將推動轉型的有機投資、股票回購和淨債務削減視為我們資本部署策略的關鍵組成部分，並且我們將在這一領域保持自律。

As it relates to our outlook for the third quarter of 2024 we expect consolidated third quarter net sales in the range of $175 million to $185 million and adjusted EBITDA margin in the mid-to-high 20s range.

由於這與我們對2024 年第三季的展望相關，我們預計第三季合併淨銷售額將在1.75 億美元至1.85 億美元之間，調整後的EBITDA 利潤率將在20 多美元的中高範圍內。

Compared to the third quarter of last year, the midpoint of our consolidated revenue guidance, $180 million implies consolidated net sales approximately flat to last year’s third quarter as the reduction in print and distribution and lower capital markets transactional sales are expected to offset growth in Software Solutions sales, part of which is driven by incremental revenue from tailored shareholder reports. Further, this guidance assumes capital markets transactional sales of approximately $45 million down approximately $4 million from last year’s third quarter.

與去年第三季（我們綜合收入指引的中位數）1.8 億美元相比，意味著綜合淨銷售額與去年第三季大致持平，因為印刷和發行量的減少以及資本市場交易銷售的減少預計將抵銷軟體解決方案銷售的成長，其中一部分是由客製化股東報告帶來的增量收入所推動的。此外，本指引假設資本市場交易銷售額約 4,500 萬美元，較去年第三季減少約 400 萬美元。

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

現在，我將把它傳回給丹。

Thanks, Dave. Our performance in the second quarter provides us with strong momentum as we continue to execute DFIN’s strategic transformation. While the macroeconomic outlook remains uncertain, the combination of our market position, cost structure and strong balance sheet position us well heading into the back half of the year.

謝謝，戴夫。第二季的業績為我們持續執行 DFIN 的策略轉型提供了強勁動力。儘管宏觀經濟前景仍然不確定，但我們的市場地位、成本結構和強勁的資產負債表相結合，使我們能夠在今年下半年保持良好的勢頭。

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，他們不懈地努力，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。

Thank you. (Operator Instructions) Charles Strauzer, CJS Securities.

謝謝。（操作員指示）Charles Strauzer，CJS 證券。

Thank you.

謝謝。

Good morning.

早安.

Good Morning. Just looking at guidance for Q3, may be expand a little bit more on your thoughts on expected margins. You said mid- to-high-20s range. Maybe some more color what’s driving that? Obviously, you had a very strong quarter, given the mix in the quarter for Q2, but maybe talk a little bit more about your thoughts there.

早安.只需查看第三季的指導，可能會進一步擴展您對預期利潤率的想法。你說的是20多歲的中高範圍。也許更多的顏色是什麼推動了這一點？顯然，考慮到第二季的混合情況，您的季度表現非常強勁，但也許可以多談談您的想法。

Yes Charlie, this is Dave. Thanks for the question. Look, as we look ahead, and I would say whether that’s for the third quarter or even beyond, right, I would start by saying certainly no change in the strategic direction or operating plans. We continue to do a very good job managing cost and as you noted, shifting our revenue mix to drive profitability. So no change there.

是的，查理，這是戴夫。謝謝你的提問。看，當我們展望未來時，我會說，無論是第三季還是以後，對，我首先要說的是，戰略方向或營運計劃肯定不會改變。我們繼續在成本管理方面做得很好，正如您所指出的，我們正在改變我們的收入結構以提高盈利能力。所以那裡沒有變化。

Specific to Q3 guidance, probably the simplest way to look at it, when you compare to last year’s EBITDA margin, it was about 27.5% or so. That was up 300 basis points from the third quarter of 2022, and that was on about a 5% decline in top line. So, last year’s third quarter also included a few million dollars of benefit related to a true up of variable compensation. So, I think when you exclude that benefit, last year’s third quarter would have been right around 26% and again, still up a couple hundred basis points from Q3 of 2022. And so when you look at this year’s third quarter guidance of mid- to high-20s, it puts us somewhere in that same neighborhood.

具體到第三季指導，可能是最簡單的看待方式，與去年的 EBITDA 利潤率相比，約為 27.5% 左右。這比 2022 年第三季上升了 300 個基點，而營收下降了約 5%。因此，去年第三季還包括與可變薪酬的真實上漲相關的數百萬美元的福利。因此，我認為，如果排除這項收益，去年第三季的成長率將在 26% 左右，仍比 2022 年第三季高出數百個基點。因此，當您查看今年第三季 20 歲左右的指導時，您會發現我們處於同一區域。

I think the other thing I would say is that when you look this year, we’ve delivered over 400 basis points of margin expansion year-to-date. Trailing fourth quarter margin, as we commented, is now at 29%. And as also we noted in the prepared remarks, starting to overlap some of the margin expansion that we delivered in the back half of 2023. So, the comps start to get tougher. Like I said, we’ll continue to be disciplined on managing costs and shifting the revenue mix, really to deliver against the long-term projections that we provided earlier. And I would say Q3 is certainly in line with that.

我想我要說的另一件事是，當你看看今年時，我們今年迄今已經實現了超過 400 個基點的利潤率擴張。正如我們所評論的，第四季度的追蹤利潤率目前為 29%。正如我們在準備好的評論中指出的那樣，開始與我們在 2023 年下半年實現的一些利潤擴張重疊。因此，比賽開始變得更加艱難。正如我所說，我們將繼續嚴格管理成本和改變收入結構，真正實現我們先前提供的長期預測。我想說第三季肯定符合這一點。

Thanks. And can we talk a bit about venue and the strong growth you’re seeing there? What’s been driving higher volumes and number of deals? Is it just bigger deals and what gives you confidence that this trend might continue? Thanks.

謝謝。我們可以談談場地以及您在那裡看到的強勁增長嗎？是什麼推動了交易量和數量的增加？這只是更大的交易嗎？謝謝。

Yes, three things there. One, and we commented roughly a third of the growth that we saw this quarter was really driven by the kind of outsized data rooms, and that’s down proportionately. You’ll recall in the first quarter we said roughly half the growth was attributable to that. I think when you look at second quarter, the other two thirds of the growth – there was a little bit of room count, but it’s primarily the size of the rooms in terms of the number of pages that are being uploaded, as well as the price increases that we put into place starting the middle of last year and are now coming to overlap that. But we’ve seen that benefit in pricing, call it over the last four quarters or so.

是的，有三件事。第一，我們評論說，本季看到的成長大約有三分之一實際上是由超大數據室推動的，而這一比例正在按比例下降。您會記得在第一季我們說過大約一半的成長歸因於這一點。我認為，當你看第二季度時，增長的另外三分之二——有一點房間數量，但主要是房間的大小，即上傳的頁面數量，以及我們從去年年中開始實施的價格上漲，現在與此重疊。但我們在過去四個季度左右的時間裡已經看到了定價方面的好處。

Yes, this is then translate to add to that Dave gave.

是的，這將被翻譯為添加到戴夫給出的內容中。

The increased page activity, higher pricing, these rooms are also staying open longer, which is again reinforcing the stability of venue. Underlying demand is less volatile versus the M&A market. So, we’re seeing this more stable revenue stream, which has been an event-driven transactional product.

頁面活躍度增加，定價更高，這些房間的開放時間也更長，這再次增強了場地的穩定性。與併購市場相比，潛在需求波動較小。因此，我們看到了這種更穩定的收入流，這是一種事件驅動的交易產品。

And then just on those large deals, as Dave mentioned, driving a third, it’s really about sales execution, us taking share at large Tier 1 banks. So, we’re super encouraged by the resilience of the activity taking place on the platform. We think the broad application within the M&A ecosystem is serving both announced and unannounced deals across public and private companies. And so, as we look at the M&A market, we are certainly hopeful and excited for it to return to some median level of activity. But there is a large amount of activity looking to be put to work. We’re pleased with the venue pipeline. We’re also in the process of growing it outside of M&A into recurring subscriptions and then also reoccurring growth.

然後，就那些大型交易而言，正如戴夫所提到的，推動三分之一，這實際上與銷售執行有關，我們在大型一級銀行中佔據了份額。因此，我們對該平台上發生的活動的彈性感到非常鼓舞。我們認為，併購生態系統中的廣泛應用正在為上市公司和私人公司的已宣布和未宣布的交易提供服務。因此，當我們審視併購市場時，我們當然對它恢復到一定的中位數活動水平充滿希望和興奮。但仍有大量活動需要付諸實行。我們對場地管道感到滿意。我們還在併購之外將其發展為定期訂閱，然後也不斷成長。

So, we’re just going to continue to focus on what got us here. Great product, sales execution and share expansion.

因此，我們將繼續專注於讓我們走到這一步的原因。出色的產品、銷售執行力和份額擴張。

Peter Heckmann, D.A. Davidson

彼得‧赫克曼，D.A.戴維森

Hey, good morning, everyone. Thanks for taking my question. So, in terms of the completed M&A deals, I guess, i know it’s hard to totally handicap that, but with the venue growth, it certainly feels like there’s a lot of potential deals in the pipeline, either dual process IPO M&A, or just straight M&A. Is there any way to think about what you are embedding in your third quarter guidance in terms of completed M&A from a filings perspective?

嘿，大家早安。感謝您提出我的問題。因此，就已完成的併購交易而言，我想，我知道很難完全阻礙這一點，但隨著場地的增長，肯定感覺有很多潛在的交易正在醞釀中，無論是雙重流程IPO併購，或者直接併購。有沒有什麼方法可以從備案的角度來思考您在第三季指引中所包含的已完成併購的內容？

Yes, I’ll touch on the market and turn it to Dave for the guidance. I think you can look at what our clients are telling us. So, certainly Federal Reserve Chair, Powell, said sticky inflation was the reason they didn’t change rates in May. And he addresses this again today at 02:00 p.m. what’s he going to say? I think the bet is there will be a September cut and these rising interest rates have been a drag, a super drag for the last two years with soaring transaction financing costs, depressing stock valuations. So, what we’re hearing our clients talk to us about is a belief that this clearer path to the monetary policy of the future is going to create certainty and will help support deal activity.

是的，我會接觸市場並向戴夫尋求指導。我認為您可以看看我們的客戶告訴我們的內容。因此，聯準會主席鮑威爾肯定表示，黏性通膨是他們 5 月沒有調整利率的原因。他今天下午 02:00 再次談到這個問題。他要說什麼？我認為九月將會降息，而不斷上升的利率一直是個拖累，是過去兩年的超級拖累，交易融資成本飆升，壓低了股票估值。因此，我們聽到客戶與我們談論的是一種信念，即這種更清晰的未來貨幣政策路徑將創造確定性，並將有助於支持交易活動。

It’s going to bridge the gap between bid and target price expectations. And the indication we’re getting, as you stated, is private equity players are coming back into the market and deals will get done. So that is exciting for venue, given our results, and it’s certainly exciting for the CM-CCM platform. And Dave, I will turn it to you.

它將縮小出價與目標價格預期之間的差距。正如您所說，我們得到的跡像是私募股權參與者正在重返市場，交易將會完成。因此，考慮到我們的結果，這對場地來說是令人興奮的，對於 CM-CCM 平台來說當然也是令人興奮的。戴夫，我會把它交給你。

Yes, and Pete, can you clarify the second part of that question?

是的，皮特，你能澄清這個問題的第二部分嗎？

I was just trying to think about what’s embedded in your third quarter guidance as regards capital markets transaction revenue. I think you said down $4 million year-over-year.

我只是想思考一下你們第三季關於資本市場交易收入的指導包含了什麼內容。我想你說的是年減 400 萬美元。

Yes.

是的。

Just thinking about like, from an M&A perspective, like, I’m sure that’s a range, but just how you’re thinking about that.

只是想想，從併購的角度來看，我確信這是一個範圍，但只是你如何思考這個問題。

Yes, I would say it is a range. And we have some visibility, obviously to the near term better than the longer term, and kind of handicap each of the projects that we’re looking at. I would say the $45 million overall is pretty similar, obviously, to each of the first two quarters. And so, on an aggregate basis, probably not much different in Q3 than what we saw in Q2.

是的，我會說這是一個範圍。我們有一定的可見性，顯然短期比長期更好，並且對我們正在考慮的每個項目都有一定的阻礙。我想說，顯然，4500 萬美元的整體收入與前兩季的收入非常相似。因此，從總體上看，第三季度的情況可能與我們在第二季度看到的情況沒有太大不同。

Okay. And then just in terms of tailored shareholder reports, any additional findings as you’re getting into the go live, or any thoughts about your relative share on either the software services or print side?

好的。然後，就客製化的股東報告而言，您在投入使用時是否有任何其他發現，或者對您在軟體服務或印刷方面的相對份額有何想法？

Yes, it’s Dan. We’re really happy with, that we’ve talked about this before. Our full set of offerings from software through to our traditional platform, which really helps with chain of custody. And so, we’ve seen strong uptake on our software platform. We did mention we thought print would be a lower number, and in fact, that’s playing out that way.

是的，是丹。我們非常高興，我們之前已經討論過這個問題。我們提供從軟體到傳統平台的全套產品，這對監管鏈確實有幫助。因此，我們看到我們的軟體平台得到了強勁的採用。我們確實提到過，我們認為印刷版的數字會更低，事實上，情況就是這樣。

So, on the software side, we expect about $11 million to $12 million of annual impact. That will be in 2025. We will get half of that in 2024. But really happy with it’s early days, there is a lot of onboarding and a lot of work going on in the organization, but thus far, in a relatively lite early season, things are going very well.

因此，在軟體方面，我們預計每年的影響約為 1,100 萬至 1,200 萬美元。那將是 2025 年。到 2024 年，我們將獲得其中的一半。但我對它的早期階段感到非常滿意，組織中有大量的入職工作和大量的工作正在進行，但到目前為止，在一個相對精簡的早期季節，一切進展順利。

But I let Eric add if you have anything.

但如果你有什麼的話我讓艾瑞克補充。

Yes. Hey, thanks, Dan. Yes, so I think what we’re seeing is DFIN is offering from a TSR solution perspective, we cover the full spectrum. So, we’re seeing clients that are engaging us on the SaaS side of things, we have seen clients come to us looking for traditional composition, tagging and filing. And since the rule has just launched here in July, we’re seeing a lot of variability in client, how prepared our clients are to get through some of this from a filing perspective. So, we’ve seen the full spectrum of services.

是的。嘿，謝謝，丹。是的，所以我認為我們看到的是 DFIN 從 TSR 解決方案的角度提供，我們涵蓋了整個範圍。因此，我們看到客戶在 SaaS 方面與我們合作，我們看到客戶來找我們尋求傳統的組合、標籤和歸檔。由於該規則於 7 月剛剛在此處推出，我們看到客戶存在很大的差異，從申請的角度來看，我們的客戶為解決其中的一些問題做好了準備。因此，我們已經看到了全方位的服務。

And as Dan mentioned on the print, from a traditional printing perspective, it is highly competitive and, in many cases, we’re staying very close to our margin profile for that work. But where we are seeing success is in our optimized digital print platform where we’re driving single package delivery for our clients, leveraging DFIN’s digital software, as well as our digital output platform.

正如 Dan 在印刷品中提到的那樣，從傳統印刷的角度來看，它的競爭非常激烈，而且在許多情況下，我們對作品的利潤狀況非常接近。但我們看到的成功在於我們優化的數位印刷平台，我們利用 DFIN 的數位軟體以及我們的數位輸出平台，為客戶推動單一包裹交付。

So that’s been a nice change for us from an output perspective, and it fits our platform extremely well, and certainly hits our margin profile. So, I see early stage here. Next cycle I am sure we’ll get more volume with the six thirty close. But as we see it, it’s shaping up as we expected. But again, I think the big takeaway is our ability to provide a full spectrum of services for our clients.

因此，從產出的角度來看，這對我們來說是一個很好的變化，它非常適合我們的平台，並且肯定符合我們的利潤狀況。所以，我在這裡看到了早期階段。我相信下一個週期我們會在六點三十分結束時獲得更多成交量。但正如我們所看到的，它正在按照我們的預期發展。但我再次認為，最大的收穫是我們有能力為客戶提供全方位的服務。

Okay. All right, that’s really helpful. I’ll get back in the queue. Thank you.

好的。好吧，這確實很有幫助。我會回到隊列中。謝謝。

Kyle Peterson, Needham.

凱爾彼得森，尼達姆。

Appreciate you taking the question. I wanted to touch a little bit on software growth. Second consecutive quarter, you guys have kind of had mid to low teens year-on-year growth in that segment. Just want to see if you guys could give any more color on the breakdown between whether it’s new logos or pricing, just any breakdown of that since it’s really accelerated here with first half, the year would be really helpful.

感謝您提出問題。我想談談軟體成長。連續第二個季度，該領域的同比增長達到了中低水平。只是想看看你們是否可以對新徽標或定價之間的細分提供更多信息，只要是任何細分，因為上半年確實加速了，今年將非常有幫助。

This is Craig Clay. Thanks for the question. We touched on venue. I’ll build on ActiveDisclosure. I think in the quarter you saw software subscription sales up 2%. We had that partially offset by File 16. I think just to touch on that, we’re excited to have built the market leading Section 16 filing platform within ActiveDisclosure. So those are for beneficial owners to publicly disclose their relationship with the company. So, within the quarter we had some negative drag. But like with AD they just contextualize it, it was a conversion process.

這是克雷格·克萊。謝謝你的提問。我們談到了場地。我將在 ActiveDisclosure 的基礎上進行建置。我認為本季軟體訂閱銷售額成長了 2%。我們用文件 16 部分抵消了這一點。我想只談這一點，我們很高興能夠在 ActiveDisclosure 中建立市場領先的第 16 條歸檔平台。因此，這些是為了讓受益所有人公開揭露他們與公司的關係。因此，本季我們遇到了一些負面拖累。但就像 AD 一樣，他們只是將其置於上下文中，這是一個轉換過程。

So, we were managing from an old system to a new, we managed out low-paying clients. It’s going to result in a more durable, pipe priced solutions. We’re excited by what the future will hold for that.

因此，我們從舊系統管理到新系統，我們管理低薪客戶。這將帶來更耐用、價格合理的解決方案。我們對未來的前景感到興奮。

What’s the expected second half? We are excited by what we see. We have made progress to expand the adoption of AD, which is slowly being reflected in the quarter results, as you heard Dave talk about. But as the prospective metrics continue to trend favorably, our fourth quarter of net new client growth, so our total client surpasses Q3 at 22, it eclipses 83 churn with new logos and client wins.

預計下半年會怎樣？我們對所看到的感到興奮。正如您聽到 Dave 所說，我們在擴大 AD 的採用方面取得了進展，這正在慢慢反映在季度業績中。但隨著預期指標繼續向好趨勢發展，我們第四季度的新客戶淨增長，因此我們的客戶總數超過了第三季度的 22 個，新徽標和客戶贏得的流失量超過了 83 個。

We saw an 11% year-over=year growth in annualized recurring revenue, which is inclusive of our service packages. We are really excited about what we’re offering our clients. Our average price is up in the mid-teens versus our ActiveDisclosure 3 product and we expect our growth in the second half to be stronger than the first. As you heard, we’re going to overlap our platform transformation and there is a lot more to come. We have price that is continuing to be an opportunity.

我們的年化經常性收入年增 11%，其中包括我們的服務包。我們對為客戶提供的服務感到非常興奮。與 ActiveDisclosure 3 產品相比，我們的平均價格上漲了十幾歲左右，我們預計下半年的成長將強於上半年。正如您所聽到的，我們將重疊我們的平台轉型，並且還會有更多的事情發生。我們的價格仍然是一個機會。

Clients want a choice. They’re signing up for multi-year contracts. Our contract length is 30 months and we’ve been able to achieve these higher prices with built-in price increases on renewals and longer-term contracts. And our clients are paying less than our competitor. So, our clients want a choice, which is an exciting place to be. You couple that with product exciting things that we’re putting into market, including design elements, including presentations, which is the full connection of the SEC documents to a presentation that reporting teams need for boards and investors, it’s an exciting place to be.

客戶想要一個選擇。他們正在簽署多年合約。我們的合約期限為 30 個月，我們能夠透過續約和長期合約的內建價格上漲來實現更高的價格。而且我們的客戶支付的費用低於我們的競爭對手。因此，我們的客戶想要一個選擇，這是一個令人興奮的地方。將其與我們正在投入市場的令人興奮的產品相結合，包括設計元素，包括演示文稿，這是SEC 文件與報告團隊需要向董事會和投資者提供的演示文稿的完全連接，這是令人興奮的去的地方。

So, our clients are choosing ActiveDisclosure for their most important reporting needs. Our pipeline is strong and we’re looking forward to the rest of this year in 2025.

因此，我們的客戶選擇 ActiveDisclosure 來滿足他們最重要的報告需求。我們的產品線很強大，我們期待著 2025 年今年剩下的時間。

That’s really helpful. And I guess just to follow-up, I know in the third quarter guide you guys mentioned that the expectation is for some of the capital markets revenue to be down a bit year-on-year. It seems like a lot of the filing activity has been up quite a bit year-to-date, is the market has been pretty healthy. So just wanted to see, like, is that come comps? I know we had a little bit of a boost last year in the third quarter, whether it’s couple of competitors or a slowing pipeline or just conservative on your part?

這確實很有幫助。我想跟進一下，我知道你們在第三季指南中提到，預計一些資本市場收入將比去年同期略有下降。今年迄今為止，許多申請活動似乎都增加了很多，市場相當健康。所以只是想看看，這是比較嗎？我知道去年第三季我們取得了一些成長，無論是幾個競爭對手還是通路放緩，或者只是您的保守？

Yes. Kyle, I guess I would describe it as, like I said earlier, we have some visibility into the deals that we’re working. It’s certainly not a pipeline or a market share question, really more just kind of handicapping the timing of when we think these deals ultimately close out and come to market. And so kind of basing a lot of that and what we’ve seen so far this year and just the overall trends, certainly, if things accelerate quicker than what we’re assuming, that would be great, but it’s our best guess at this point.

是的。凱爾，我想我會將其描述為，就像我之前所說的那樣，我們對我們正在進行的交易有一定的了解。這當然不是管道或市場份額的問題，實際上更多的是阻礙了我們認為這些交易最終完成並上市的時間。因此，基於許多內容以及我們今年迄今為止所看到的情況以及總體趨勢，當然，如果事情加速得比我們假設的更快，那就太好了，但它是我們目前最好的猜測。

Helpful, thanks guys.

有幫助，謝謝大家。

Thank you. (Operator Instructions) Raj Sharma, B. Riley & Company.

謝謝。（操作員說明）Raj Sharma，B. Riley & Company。

Yes, thank you for taking my questions. I wanted to understand, the sales inflection, the top line inflection relies really on software growth second half and ongoing that should happen, I guess, due to software growth, but also print any proactive reductions they’re still to be expected forward? And related to the top line inflection in software, you’ve talked about software having double-digit growth in the next few years but doubling again over a three-, four-year period. And you just said the TSR contribution for next year is $11 million to $12 million. What takes software to that double-digit growth over the next few years?

是的，謝謝您回答我的問題。我想了解，銷售拐點、營收拐點實際上依賴軟體成長下半年和持續的成長，我想，由於軟體成長，這應該發生，但也列印出任何主動減少，他們仍然可以預期未來嗎？與軟體的收入變化相關，您談到軟體在未來幾年內將實現兩位數的成長，但在三、四年內將再次翻倍。您剛才說明年的股東總回報金額為 1,100 萬至 1,200 萬美元。是什麼讓軟體在未來幾年內達到兩位數的成長？

Yes Raj, I’ll start. So, you had a handful of questions there. I think as it relates to the back half of the year, you are right, I think, our expectation certainly to continue the software growth. Part of that comes through the TSR regulation, right, which we commented on. And of that $11 million to $12 million, roughly half of it, we expect to come in Q3 and Q4.

是的，拉吉，我要開始了。所以，你有幾個問題。我認為，由於這與今年下半年有關，我認為你是對的，我們的期望肯定會繼續軟體成長。其中一部分來自股東總回報監管（右），我們對此進行了評論。其中 1,100 萬至 1,200 萬美元（約一半），我們預計將在第三季和第四季實現。

As it relates to the print reductions, as we commented on not only last quarter, but also this quarter, you look at Q1 and Q2, that tends to be the higher quarters in terms of the concentration of print as it relates to 10-Ks and proxies specifically. And so, while there is some impact in the back half of the year, it’s not nearly as significant as we’ve experienced in the first half of the year.

由於它與印刷減少有關，正如我們不僅評論了上個季度，而且還評論了本季度，你看看第一季度和第二季度，這往往是印刷集中度較高的季度，因為它與10- K 相關以及具體的代理。因此，雖然下半年會產生一些影響，但其影響並不像上半年那麼顯著。

And then with your comment or question regarding the ability to double the software, really a combination of a couple of things. One is growing the existing offerings as they currently sit today. And you’ll also recall then we talked about over time, we believe that a lot of what we’re doing in the Compliance and Communications Management segment ends up shifting to a hybrid model or maybe over a longer period of time, a full software model. And so, there is a little bit of mix shift as we look ahead in those five-year projections.

然後，您對軟體加倍能力的評論或問題，實際上是幾件事的結合。一是擴大目前的現有產品。您還會記得我們隨著時間的推移談到的，我們相信我們在合規性和通訊管理領域所做的許多事情最終都會轉向混合模式，或者可能在更長的時間內，完整的軟體模型。因此，當我們展望這些五年預測時，會出現一些混合變化。

Great. And then just lastly, I know on your guidance, your 3Q guidance, you’re assuming slightly down transactional volume. Now ex-Venue do you think that we should kind of expect or are you seeing – are you assuming a flat second half on transactions from where you stand now?

偉大的。最後，我知道根據你們的指導，你們的第三季指導，你們假設交易量略有下降。現在，前場館您認為我們應該期待嗎？

Yes. So, we haven’t really given guidance looking beyond Q3. And I should clarify that when we talk about transactional, that’s excluding Venue. We do expect, as we said, Venue to continue to grow probably not at the same pace that we’ve seen year-to-date, just given what we’ve seen in some of the kind of outsized, large, rooms, as well as starting to overlap some of the price increases that went into play midyear last year.

是的。因此，我們還沒有真正給出第三季之後的指導。我應該澄清的是，當我們談論交易時，不包括場所。正如我們所說，我們確實預計 Venue 的繼續增長速度可能不會像我們今年迄今為止所看到的那樣，只是考慮到我們在一些超大型房間中看到的情況，以及開始與去年年中開始實施的一些價格上漲重疊。

But from a transactional perspective, again, when we say transactional excluding Venue, like I said, we expect that to be in Q3 pretty similar to what we experienced in each of the first two quarters this year. And then for Q4, we’ll provide an outlook on the Q3 earnings call in early November.

但從交易的角度來看，當我們說排除場地的交易時，就像我說的那樣，我們預計第三季的情況與今年前兩個季度的情況非常相似。然後，對於第四季度，我們將在 11 月初的第三季財報電話會議上提供展望。

Great.

偉大的。

Great, thank you for answering the question. I will take it offline. Great.

太好了，謝謝您回答問題。我會把它離線。偉大的。

At this time, there are no further questions. Mr. Leib, I’d like to turn the call back over to you for closing remarks.

目前，沒有其他問題了。萊布先生，我想將電話轉回給您進行結束語。

Great. Thank you. And thanks to everyone for attending the call. We look forward to speaking with you soon.

偉大的。謝謝。感謝大家參加電話會議。我們期待盡快與您交談。

This concludes today’s conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。