Donnelley Financial Solutions Inc (DFIN) 2024 Q3 法說會逐字稿

Good day, and welcome to the Donnelley Financial Solutions third-quarter 2024 earnings conference call. (Operator Instructions). And finally, I would like to provide all participants that this call is being recorded. Thank you.

美好的一天，歡迎參加唐納利金融解決方案 2024 年第三季財報電話會議。（操作員說明）。最後，我想向所有參與者告知，本次通話正在錄音。謝謝。

I'd now like to welcome Mike Zhao, Head of Investor Relations, to begin the conference. Mike, over to you.

現在我歡迎投資者關係主管麥克趙開始會議。麥克，交給你了。

Thank you. Good morning, everyone, and thank you for joining Donnelley Financial Solutions third-quarter 2024 results conference call. This morning, we released our earnings report, including a set of supplemental trending schedules of historical results, copies of which can be found in the Investors section of our website at dfinsolutions.com.

謝謝。大家早安，感謝您參加 Donnelley Financial Solutions 2024 年第三季業績電話會議。今天早上，我們發布了收益報告，包括一組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. Further detailed in our most recent annual report on Form 10-K, quarterly report on Form 10-Q and other filings with the SEC. 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.

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。有關完整的討論，請參閱我們的收益發布中包含的警示性聲明。進一步詳細資訊請參閱我們最新的 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。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。

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.

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'm joined this morning by Dan Leib, Dave Gardella, and other members of management.

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. Our third-quarter results offered further validation of our strategy, including a favorable sales mix driven by double-digit growth in our SaaS offerings, improvements in both operating cash flow and free cash flow and great progress in expanding the adoption of our offerings in the marketplace. Against the backdrop of a soft capital markets transactional environment, which resulted in an 8% reduction in our transactional revenue, we delivered solid results with net sales of $179.5 million and adjusted EBITDA of $43.2 million resulting in an adjusted EBITDA margin of 24.1%, which once again demonstrated the resiliency of our operating model across various market conditions and the sustainability of our performance as our business mix continues to transform. Dave will cover our results in more detail, including some items that negatively impacted our year-over-year profitability comparisons.

謝謝你，麥克，大家早安。我們的第三季業績進一步驗證了我們的策略，包括由我們的SaaS 產品兩位數成長推動的有利銷售組合、營運現金流和自由現金流的改善以及在擴大我們的產品在市場中的採用方面取得的巨大進展。在資本市場交易環境疲軟導致我們的交易收入減少 8% 的背景下，我們取得了穩健的業績，淨銷售額為 1.795 億美元，調整後 EBITDA 為 4,320 萬美元，調整後 EBITDA 利潤率為 24.1%，再次證明了我們的營運模式在各種市場條件下的彈性以及隨著我們的業務組合不斷轉型而實現的業績的可持續性。戴夫將更詳細地介紹我們的業績，包括一些對我們的同比盈利能力比較產生負面影響的項目。

Specific to our third-quarter performance, I am pleased with the continued strong demand for our software operators, where we delivered year-over-year organic net sales growth of 13.6% and a continuation of the strong growth rate we achieved in the first half of this year. Software Solutions net sales represented approximately 46% of total net sales in the quarter, the highest level we have achieved to date. More significantly, third quarter software solutions sales were, for the first time, meaningfully higher than both tech-enabled services and print and distribution sales. As our software offerings serve recurring and reoccurring business needs of our clients, this offers another positive proof point of our progress in transforming DFIN.

具體到我們第三季度的業績，我對我們的軟體營運商的持續強勁需求感到高興，我們的有機淨銷售額同比增長了 13.6%，延續了上半年的強勁增長率今年的。軟體解決方案淨銷售額約佔本季總淨銷售額的 46%，這是我們迄今為止所取得的最高水準。更重要的是，第三季軟體解決方案銷售額首次顯著高於技術支援服務以及印刷和分銷銷售額。由於我們的軟體產品滿足客戶重複出現的業務需求，這為我們在 DFIN 轉型方面取得的進展提供了另一個積極的證據。

On a trailing four-quarter basis, Software Solutions net sales reached nearly $322 million, growing 13.1% on an organic basis from the third quarter 2023 trailing 4 quarters and represent 40.1% of trailing four-quarter sales, an increase of approximately 360 basis points from the third quarter 2023 trailing four-quarter sales.

從過去四個季度的數據來看，軟體解決方案淨銷售額達到近3.22 億美元，較2023 年第三季的過去四個季度有機成長13.1%，佔過去四個季度銷售額的40.1%，成長了約360 個基點2023 年第三季追蹤第四季銷售額。

Our third-quarter software solutions net sales growth continues to be led by the performance of venue, which posted approximately 27% sales growth despite overlapping last year's strong third quarter. We remain encouraged by Venue's outstanding performance, which is primarily a result of strong sales execution. In addition, the growth rates of our recurring compliance software products, Arc Suite and ActiveDisclosure each improved in the third quarter compared to recent trend.

我們第三季的軟體解決方案淨銷售額成長持續受到場館業績的帶動，儘管與去年強勁的第三季重疊，但場館的銷售額成長了約 27%。我們仍然對 Venue 的出色表現感到鼓舞，這主要歸功於強勁的銷售執行力。此外，與最近的趨勢相比，我們的經常性合規軟體產品 Arc Suite 和 ActiveDisclosure 在第三季度的成長率均有所提高。

Within Arc Suite, we realized incremental software revenue from our tailored shareholder report solution. We are encouraged by the level of client adoption of our software solutions for tailored shareholder reports and remain on track to achieve $11 million to $12 million incremental recurring software revenue on a full-year basis. With approximately half being recognized in 2024.

在 Arc Suite 中，我們透過客製化的股東報告解決方案實現了軟體收入的增量。我們對客戶採用我們的軟體解決方案來客製化股東報告的程度感到鼓舞，並繼續實現全年 1,100 萬至 1,200 萬美元的經常性軟體收入增量。大約一半將在 2024 年得到認可。

In addition to positive client feedback, our leadership tailored shareholder report compliance is being recognized more broadly within the investment management industry. Earlier this week, DFIN was awarded the 2024 NOVA award for industry innovation and product development presented by NICSA, a Global Asset Management Trade Association. The award honors DFIN for its outstanding leadership, product development and innovative marketing approach in response to the tailored shareholder reports regulation.

除了積極的客戶回饋之外，我們的領導層量身定制的股東報告合規性也在投資管理行業中得到了更廣泛的認可。本週早些時候，DFIN 榮獲全球資產管理產業協會 NICSA 頒發的 2024 年 NOVA 產業創新與產品開發獎。該獎項旨在表彰 DFIN 響應量身定制的股東報告法規的傑出領導力、產品開發和創新行銷方法。

We have spoken in the past about the creation of a platform that leverages capabilities across DFIN in areas such as composition, tagging, filing and regulatory and financial reporting while maintaining client segment unique capabilities. Our award-winning tailored shareholder report solution is a great example of the benefits of the platform. We leverage foundational capabilities while building new requirements to serve the market.

我們過去曾談到創建一個平台，利用 DFIN 在構成、標記、歸檔以及監管和財務報告等領域的功能，同時保持客戶群的獨特功能。我們屢獲殊榮的客製化股東報告解決方案是該平台優勢的一個很好的例子。我們利用基礎能力，同時建構新的需求來服務市場。

As it relates to ActiveDisclosure, while the overall growth rate improved modestly in the third quarter compared to recent trend, the subscription component of ActiveDisclosure grew at a faster pace in the quarter, reflecting the increased sales momentum from recent wins, combined with overlapping last year's product transition. The stronger subscription revenue growth was partially offset by lower Section 16 beneficial ownership filing activity as the demand for such filings continues to be impacted by a weak IPO market. Looking ahead, we expect the growth rate for ActiveDisclosure to continue to improve in the fourth quarter this year and into 2025.

就ActiveDisclosure 而言，雖然與最近的趨勢相比，第三季度的整體成長率略有提高，但ActiveDisclosure 的訂閱部分在本季度的成長速度更快，反映出最近的勝利帶來的銷售勢頭的增加，以及與去年重疊的情況。認購收入的強勁增長被第 16 條受益所有權申報活動的減少部分抵消，因為此類申報的需求繼續受到 IPO 市場疲軟的影響。展望未來，我們預計 ActiveDisclosure 的成長率將在今年第四季和 2025 年持續提高。

Within ActiveDisclosure, which also leverages platform capabilities, we are serving additional use cases via a hybrid model that combines our software solution with an unmatched service offering. For example, ActiveDisclosure serves the IPO registration and proxy statement use cases, which historically were managed in a traditional model and we have received outstanding feedback from clients regarding their ability to work in a way that leverages the full spectrum of our solutions.

在同樣利用平台功能的 ActiveDisclosure 中，我們透過混合模型提供額外的用例，該模型將我們的軟體解決方案與無與倫比的服務產品相結合。例如，ActiveDisclosure 服務於 IPO 註冊和委託書用例，這些用例歷來都是以傳統模式管理的，我們已經收到了客戶關於他們利用我們全方位解決方案的工作能力的出色反饋。

Finally, our mix shift was accelerated by the continued reduction in print and distribution revenue which declined by $4.3 million or 16.3% year-over-year. This reduction took place both in the printing and distribution of capital markets compliance documents as well as lower print volume in the investment companies business as a result of the tailored shareholder reports regulation.

最後，印刷和發行收入的持續減少加速了我們的組合轉變，年減了 430 萬美元，即 16.3%。由於量身定制的股東報告監管，資本市場合規文件的印刷和分發以及投資公司業務的印刷量都減少了。

As a reminder, the tailored shareholder reports regulation eliminated the demand for full length shareholder reports at the fund level and replace them with two to four paid summary documents at the share class level. While we experienced an increase in printing and distribution volume from the additional share class documents, primarily within the regulated insurance segment, that increase in demand was more than offset by a reduction in the overall size of the reports mandated by the TSR rule. We expect this dynamic to continue in the fourth quarter in addition to the broader secular decline in the demand for printed products, resulting in lower print and distribution revenue.

需要提醒的是，量身定制的股東報告法規消除了基金層面對完整股東報告的需求，並用兩到四份股份類別層面的付費摘要文件取而代之。雖然我們經歷了額外股票類別文件的印刷和分發量的增加，主要是在受監管的保險領域，但需求的增加被股東總回報率規則規定的報告總體規模的減少所抵消。我們預計，除了印刷產品需求的長期下降之外，這種動態將在第四季度持續下去，從而導致印刷和發行收入下降。

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

在我發表一些結束語之前，我想將電話轉給戴夫，以提供有關我們第三季業績和第四季度前景的更多詳細資訊。戴夫？

Thank you, Dan, and good morning, everyone. Before I discuss our third-quarter results, I'd like to recap two housekeeping items. First, during the third quarter, we discontinued the use and development of a certain software product and recorded pretax charges of $2.8 million related to accelerated amortization of capitalized software and $0.6 million of an impairment charge related to software development costs on assets, not yet placed in service, all within the Capital Markets Compliance and Communications Management segment.

謝謝丹，大家早安。在討論我們的第三季業績之前，我想回顧一下兩個內務項目。首先，在第三季度，我們停止了某種軟體產品的使用和開發，並記錄了與資本化軟體加速攤銷相關的280 萬美元稅前費用和與資產軟體開發成本相關的60 萬美元減值費用，但尚未計入服務中，全部屬於資本市場合規和通訊管理領域。

Second, our effective tax rate in the quarter was 43.5%, which was driven by increases in both non-recognizable losses and unfavorable discrete tax adjustments combined with the impact of lower pretax earnings. While these adjustments do not impact our forecasted effective tax rate for the year or our long-term outlook, they did have an outsized impact in the quarter. Collectively, the accelerated amortization, impairment charge and tax-related adjustments resulted in a reduction in GAAP and non-GAAP earnings per share of $0.17 and $0.16, respectively, but had no impact on third quarter adjusted EBITDA, adjusted EBITDA margin or cash flow.

其次，本季我們的有效稅率為 43.5%，這是由於不可識別損失和不利的離散稅收調整的增加以及稅前收益下降的影響。雖然這些調整不會影響我們預測的今年有效稅率或長期前景，但它們確實對本季產生了巨大影響。總的來說，加速攤銷、減損費用和稅務相關調整導致GAAP 和非GAAP 每股盈餘分別減少0.17 美元和0.16 美元，但第三季調整後EBITDA、調整後EBITDA 利潤率或現金流沒有影響。

Next, as Dan referenced, there were a handful of items that impact year-over-year comparability. Specifically, a reduction in compensation-related accruals during the third quarter of last year benefited last year's third quarter by approximately $4 million. In addition, higher compensation-related accruals related to 2024 performance resulted in approximately $2 million of incremental expense being recorded in this year's third quarter. Combined, these items negatively impacted year-over-year comparability by approximately $6 million in adjusted EBITDA across all four operating segments as well as corporate with most of the year-over-year impact being reflected within SG&A.

接下來，正如丹所提到的，有一些項目會影響同比可比性。具體而言，去年第三季與薪酬相關的應計費用減少使去年第三季受益約 400 萬美元。此外，與 2024 年業績相關的薪酬相關應計費用增加，導致今年第三季錄得約 200 萬美元的增量費用。這些項目合計對所有四個營運部門以及企業的調整後 EBITDA 的同比可比性產生了約 600 萬美元的負面影響，其中大部分同比影響反映在 SG&A 中。

Turning to our third quarter results. As Dan noted, we continue to experience positive momentum in the adoption of our software solutions, which increased by 13.6% on an organic basis year-over-year, representing the third consecutive quarter of double-digit Software Solutions net sales growth. Despite the continued softness in capital markets transactional environment, our strong software performance enabled us to deliver another quarter of improved sales mix, solid adjusted EBITDA and year-over-year improvements in both operating cash flow and free cash flow.

轉向我們第三季的業績。正如 Dan 所指出的那樣，我們在軟體解決方案的採用方面繼續呈現積極勢頭，有機解決方案同比增長 13.6%，代表軟體解決方案淨銷售額連續第三個季度實現兩位數增長。儘管資本市場交易環境持續疲軟，但我們強大的軟體效能使我們能夠再季度實現銷售組合的改善、調整後的 EBITDA 穩健以及營運現金流和自由現金流的同比改善。

On a consolidated basis, total net sales for the third quarter of 2024 were $179.5 million, a decrease of $0.5 million or 0.3% on a reported basis and an increase of 0.2% on an organic basis from the third quarter of 2023.

綜合來看，2024 年第三季的總淨銷售額為 1.795 億美元，與 2023 年第三季相比，報告基礎上減少了 50 萬美元，即 0.3%，有機成長了 0.2%。

The decrease in net sales was driven by lower volume in our Compliance and Communications Management segment, which decreased by $9.5 million in aggregate, nearly offset by the growth in Software Solutions net sales which increased by $9 million or 13.6% on an organic basis.

淨銷售額的下降是由於我們的合規和通訊管理部門銷售下降所致，該部門總計減少了950 萬美元，幾乎被軟體解決方案淨銷售額的成長所抵消，後者有機成長了900 萬美元，即13.6%。

Third quarter adjusted non-GAAP gross margin was 61.7% and approximately 110 basis points higher than the third quarter of 2023, primarily driven by a favorable business mix, featuring growth in higher-margin software solution sales and the impact of ongoing cost control initiatives, partially offset by lower capital markets transactional activity and higher compensation-related expense.

第三季調整後的非GAAP 毛利率為61.7%，比2023 年第三季高出約110 個基點，這主要是受到有利的業務組合的推動，其中包括利潤率較高的軟體解決方案銷售的成長以及持續成本控制措施的影響，資本市場交易活動減少和薪酬相關費用增加部分抵消了這一影響。

Adjusted non-GAAP SG&A expense in the quarter was $67.6 million, a $7.9 million increase from the third quarter of 2023. The increase in adjusted non-GAAP SG&A was primarily driven by higher compensation-related expenses, including the items that I noted earlier and higher bad debt expense. These variances were partially offset by lower third-party expenses and cost control initiatives.

本季調整後的非 GAAP SG&A 費用為 6,760 萬美元，比 2023 年第三季增加 790 萬美元。調整後的非公認會計準則 SG&A 的成長主要是由於薪資相關費用增加，包括我之前提到的項目和壞帳費用增加。這些差異被較低的第三方費用和成本控制措施部分抵消。

Our third quarter adjusted EBITDA was $43.2 million, a decrease of $6.2 million from the third quarter of 2023. Third quarter adjusted EBITDA margin was 24.1%, a decrease of approximately 330 basis points from the third quarter of 2023, primarily driven by the year-over-year variance in SG&A that I just outlined.

我們第三季調整後的 EBITDA 為 4,320 萬美元，比 2023 年第三季減少 620 萬美元。第三季調整後 EBITDA 利潤率為 24.1%，較 2023 年第三季下降約 330 個基點，這主要是由於我剛才概述的 SG&A 同比差異所致。

Turning to our third-quarter segment results. Net sales in our Capital Markets Software Solutions segment were $53.3 million, an increase of 16.8% on an organic basis from the third quarter of last year, driven by the continued strength in Venue which was up $7.4 million or approximately 27% year-over-year.

轉向我們的第三季部門業績。我們的資本市場軟體解決方案部門的淨銷售額為 5,330 萬美元，較去年第三季有機增長 16.8%，這得益於 Venue 的持續強勁增長，同比增長 740 萬美元，約增長 27%。

On a trailing four-quarter basis, Venue sales have exceeded $137 million and grew approximately 33% compared to the third quarter 2023 trailing four-quarter period. Consistent with the recent trend, an increase in volume on the platform and higher pricing continue to be the main drivers of venue sales growth. Further, our strong sales execution continued to deliver large client wins onto the platform. The sales growth contribution from large projects in the third quarter was similar in magnitude to the second quarter or approximately 1/3 of total third-quarter growth. 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 three quarters of this year given the impact of the large projects in addition to overlapping venues very strong performance in the fourth quarter of 2023.

從過去四個季度的數據來看，Venue 銷售額已超過 1.37 億美元，與 2023 年第三季的過去四個季度相比增長了約 33%。與近期趨勢一致，平台銷售的增加和定價的上漲仍然是場館銷售成長的主要驅動力。此外，我們強大的銷售執行力繼續在平台上贏得大客戶。第三季大型專案對銷售成長的貢獻與第二季相似，約佔第三季總成長的1/3。展望未來，我們預計 Venue 將繼續實現穩健的同比增長，儘管與今年前三季度實現的強勁增長率相比，由於大型項目的影響，增長速度較為溫和。強勁。

Net sales of ActiveDisclosure, including File 16, increased approximately 3% in the third quarter, a modest improvement compared to recent trend driven by growth in subscription revenue, which increased 6% versus the third quarter of last year, partially offset by a reduction in services revenue primarily as a result of lower Section 16 ownership filing activity that Dan noted earlier.

ActiveDisclosure（包括File 16）的淨銷售額在第三季度增長了約3%，與最近由訂閱收入增長推動的趨勢相比略有改善，訂閱收入比去年第三季度增長了6%，部分被訂閱收入的減少所抵銷。

The growth in third quarter subscription revenue reflects the improvement in ActiveDisclosure's operating metrics that we have been seeing over the last several quarters, including continued growth in net client count which has accelerated following the platform transition in mid-2023. In addition, our sales execution, coupled with recent product enhancements is resulting in sequential improvements in revenue retention rates relative to earlier this year. Our improved performance and sales momentum create a solid foundation for future sales growth.

第三季訂閱收入的成長反映了我們在過去幾季中看到的 ActiveDisclosure 營運指標的改善，包括淨客戶數量的持續成長，這種成長在 2023 年中期平台轉型後加速。此外，我們的銷售執行，加上最近的產品增強，導致收入保留率相對於今年稍早連續提高。我們改善的業績和銷售動能為未來的銷售成長奠定了堅實的基礎。

Adjusted EBITDA margin for the segment was 24.8%, a decrease of approximately 80 basis points from the third quarter of 2023, primarily due to an increase in compensation-related expense and higher bad debt expense, partially offset by higher net sales and a favorable sales mix from the growth in Venue and cost control initiatives. Net sales in our Capital Markets, Compliance and Communications Management segment were $63.5 million, a decrease of $6.6 million or 9.4% from the third quarter of 2023, driven primarily by lower capital markets transactional revenue.

該部門調整後 EBITDA 利潤率為 24.8%，較 2023 年第三季下降約 80 個基點，主要是由於薪酬相關費用增加和壞帳費用增加，但部分被淨銷售額增加和有利的銷售所抵消場地增長和成本控制措施的結合。資本市場、合規和通訊管理部門的淨銷售額為 6,350 萬美元，較 2023 年第三季減少 660 萬美元，即 9.4%，這主要是由於資本市場交易收入下降所致。

We recorded $45.3 million of capital markets transactional revenue which was flat on a sequential basis and down $3.8 million or 7.7% compared to last year's third quarter. Similar to what we experienced in the second quarter, the level of deal activity in the third quarter remained mixed. IPO activity in the third quarter remained higher than last year, which resulted in an increased number of priced IPOs that raised over $100 million compared to the third quarter of 2023, while the market for completed public company M&A deals in the US remain down on a year-over-year basis. Overall, the deal environment remains soft compared to historical averages.

我們錄得 4,530 萬美元的資本市場交易收入，環比持平，與去年第三季相比下降 380 萬美元，即 7.7%。與第二季的經驗類似，第三季的交易活動水準仍參差不齊。第三季的 IPO 活動仍高於去年，導致融資額超過 1 億美元的定價 IPO 數量較 2023 年第三季有所增加，而美國已完成的上市公司併購交易市場仍處於低迷狀態。總體而言，與歷史平均水平相比，交易環境仍然疲軟。

For IPO and M&A transactions that were completed in the third quarter, we maintain our historical high market share. While the outlook for the 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.

對於第三季完成的IPO和併購交易，我們維持了歷史高點的市場份額。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。

Capital Markets compliance revenue was down $2.8 million or 13.3% compared to the third quarter of 2023, driven primarily by a lower volume of compliance work, including the related printing and distribution, consistent with the trend from the first half of the year. In addition, while our Capital Markets compliance offering, which supports our corporate clients with our ongoing compliance needs is mostly recurring in nature, a component is event-driven, including certain 8-K filings and special proxies, which can fluctuate from period to period. During this year's third quarter, we experienced a decrease in the volume of event-driven special proxies, further contributing to the year-over-year sales decline.

與 2023 年第三季相比，資本市場合規收入下降了 280 萬美元，即 13.3%，這主要是由於合規工作量減少（包括相關印刷和分發），這與上半年的趨勢一致。此外，雖然我們為企業客戶提供持續合規需求的資本市場合規服務基本上是重複性的，但其中一個組成部分是事件驅動的，包括某些8-K 備案和特殊代理，這些內容可能會隨時間波動。在今年第三季度，我們經歷了事件驅動的特殊代理數量的減少，進一步導致銷售額同比下降。

Adjusted EBITDA margin for the segment was 31.7% and a decrease of approximately 620 basis points from the third quarter of 2023. The decrease in adjusted EBITDA margin was primarily due to the lower transactional sales and higher compensation-related expense, partially offset by cost control initiatives.

該部門調整後 EBITDA 利潤率為 31.7%，較 2023 年第三季下降約 620 個基點。調整後 EBITDA 利潤率的下降主要是因為交易銷售額下降和薪酬相關費用上升，但部分被成本控制措施所抵銷。

Net sales in our Investment Companies Software Solutions segment were $28.9 million, an increase of 8.2% versus the third quarter of 2023, driven by incremental revenue from our tailored shareholder report solution. As Dan noted earlier, we are encouraged by the positive market response and client adoption of DFIN's TSR software solution. The growth from TSR was partially offset by lower revenue in our Arc regulatory offering as we overlap onetime revenue from a regulatory-driven filing in the EU that benefited us in the third and fourth quarters of last year.

我們的投資公司軟體解決方案部門的淨銷售額為 2,890 萬美元，較 2023 年第三季增長 8.2%，這得益於我們量身定制的股東報告解決方案帶來的增量收入。正如 Dan 之前指出的那樣，我們對 DFIN 的 TSR 軟體解決方案的積極市場反應和客戶採用感到鼓舞。TSR 的成長被 Arc 監管產品收入的下降部分抵消，因為我們與去年第三和第四季在歐盟監管驅動的備案中獲得的一次性收入重疊。

We expect a similar dynamic for the fourth quarter of this year, specifically continuing to realize incremental revenue from tailored shareholder reports while overlapping the onetime EU-related revenue that benefited the third and fourth quarters of 2023, which combined will once again result and strong overall Arc Suite growth compared to the first half of 2024.

我們預計今年第四季也會出現類似的動態，特別是繼續從客製化的股東報告中實現增量收入，同時與曾經使2023 年第三季和第四季受益的歐盟相關收入重疊，這兩者結合起來將再次帶來強勁的整體業績Arc Suite 與 2024 年上半年相比的成長。

Adjusted EBITDA margin for the segment was 30.8%, a decrease of approximately 630 basis points from the third quarter of 2023. The decrease in adjusted EBITDA margin was primarily due to higher compensation-related expense, higher service-related costs associated with the ramp-up of the TSR offering and higher product development and technology investments in support of growth opportunities, partially offset by higher sales volume and pricing uplifts. Net sales in our Investment Companies Compliance and Communications Management segment were $33.8 million, a decrease of $2.9 million or 7.9% from the third quarter of 2023 driven primarily by a reduction in print and distribution revenue related to both the long-term secular decline in the demand for printed materials as well as the tailored shareholder reports regulation.

該部門調整後 EBITDA 利潤率為 30.8%，較 2023 年第三季下降約 630 個基點。調整後 EBITDA 利潤率的下降主要是由於薪酬相關費用增加、與 TSR 發行增加相關的服務相關成本增加以及為支持增長機會而增加的產品開發和技術投資，但部分被銷量增加所抵消以及價格上漲。投資公司合規與通訊管理部門的淨銷售額為3,380 萬美元，較2023 年第三季減少290 萬美元，即7.9%，這主要是由於印刷和發行收入的減少，這與印刷和發行收入的長期下降有關。

Adjusted EBITDA margin for the segment was 30.2 approximately 390 basis points lower than the third quarter of 2023. The decrease in adjusted EBITDA margin was primarily due to lower sales and higher compensation-related expense partially offset by a favorable sales mix. Non-GAAP unallocated corporate expenses were $9.2 million in the quarter, a decrease of $2.3 million from the third quarter of 2023, primarily driven by lower third-party expenses and the impact of cost control initiatives partially offset by higher compensation-related expense.

該部門調整後 EBITDA 利潤率為 30.2，比 2023 年第三季低約 390 個基點。調整後 EBITDA 利潤率的下降主要是因為銷售額下降和薪資相關費用上升，但部分被有利的銷售組合所抵銷。本季非 GAAP 未分配企業費用為 920 萬美元，較 2023 年第三季減少 230 萬美元，主要是由於第三方費用減少以及成本控制措施的影響被薪酬相關費用增加部分抵銷。

Free cash flow in the quarter was $67.3 million, an improvement of $6 million compared to the third quarter of 2023. The year-over-year increase in free cash flow was primarily driven by 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 and lower restructuring and interest payments. We ended the quarter with $124.6 million of total debt or $91 million on a non-GAAP net debt basis, a reduction of $41.3 million and $63.2 million, respectively, versus the end of last year's third quarter.

本季自由現金流為 6,730 萬美元，比 2023 年第三季增加 600 萬美元。自由現金流的年增率主要是由於營運資金績效的改善，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、印刷和發行銷售減少以及重組和利息支付減少。截至本季末，我們的總債務為 1.246 億美元，以非 GAAP 淨債務計算為 9,100 萬美元，與去年第三季末相比分別減少了 4,130 萬美元和 6,320 萬美元。

From a liquidity perspective, we had no outstanding borrowings under our revolver and had $33.6 million of cash on hand. As of September 30, 2024, our non-GAAP net leverage ratio was 0.4x. As a reminder, our cash flow is historically seasonal, generating more than all of our free cash flow in the second half of the year, as our sales mix begin to evolve to proportionately 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 208,000 shares of our common stock during the third quarter for $13.3 million at an average price of $63.96 per share. Year-to-date through September 30, we've repurchased approximately 666,000 shares of our common stock or $41.3 million at an average price of $62.10 per share.

從流動性角度來看，我們的循環貸款下沒有未償還的借款，手頭上有 3,360 萬美元現金。截至 2024 年 9 月 30 日，我們的非 GAAP 淨槓桿率為 0.4 倍。提醒一下，我們的現金流在歷史上是季節性的，在下半年產生的自由現金流超過了我們所有的自由現金流，隨著我們的銷售組合開始演變為比例更多的基於訂閱的軟體解決方案，我們預計季節性將是與 2024 年迄今為止我們所經歷的情況相比，影響較小。在資本部署方面，我們在第三季以 1,330 萬美元的價格回購了約 208,000 股普通股，平均價格為每股 63.96 美元。今年迄今，截至 9 月 30 日，我們已回購約 666,000 股普通股，即 4,130 萬美元，平均價格為每股 62.10 美元。

As of September 30, 2024, and we had $108.7 million remaining on our $150 million stock repurchase authorization. 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.

截至 2024 年 9 月 30 日，我們的 1.5 億美元股票回購授權中剩餘 1.087 億美元。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紀律。

As it relates to our outlook for the fourth quarter of 2024, we expect consolidated fourth quarter net sales in the range of $165 million to $175 million and adjusted EBITDA margin in the low 20% range. Compared to the fourth quarter of last year, the midpoint of our consolidated revenue guidance, $170 million implies a consolidated net sales decrease of approximately $6 million to last year's fourth quarter as the reduction in print and distribution and lower transactional sales mostly related to last year's large mutual fund special proxy project within the investment company's Compliance and Communications Management segment are expected to more than offset growth in Software Solutions sales part of which is driven by the incremental revenue from our tailored shareholder report solution. Further, the guidance assumes capital markets transactional sales of approximately $48 million down approximately $2 million from last year's fourth quarter.

由於這與我們對2024 年第四季的展望相關，我們預計第四季度的合併淨銷售額將在1.65 億美元至1.75 億美元之間，調整後的EBITDA 利潤率將在20% 的低水平範圍內。與去年第四季（我們綜合收入指引的中位數）1.7 億美元相比，意味著綜合淨銷售額比去年第四季減少了約600 萬美元，因為印刷和發行量的減少以及交易銷售額的下降主要與去年的銷售額有關。增量所得推動的。此外，該指引假設資本市場交易銷售額約為 4,800 萬美元，較去年第四季減少約 200 萬美元。

Before I turn it back to Dan, I'd like to comment on an action the company has taken regarding its primary defined benefit plan which has been frozen since 2011 at RR Donnelley and was inherited by DFIN as part of our spinoff.

在我把問題轉回 Dan 之前，我想評論該公司針對其主要固定福利計劃所採取的行動，該計劃自 2011 年以來一直在 RR Donnelley 凍結，並作為我們分拆的一部分由 DFIN 繼承。

During the quarter, we executed an amendment to allow for the termination of the plan. We intend to settle the existing obligations by offering lump sum distributions to participants followed by the purchase of annuity contracts to transfer the plan's remaining obligations to a third party. As settlement of the obligations will be funded with planned assets, we expect to make a cash contribution in 2025 to fully fund the plan. The amount of the cash contribution is dependent on how many participants elect lump sum settlements as well as prevailing market conditions.

在本季度，我們執行了一項修正案，以允許終止該計劃。我們打算透過向參與者提供一次性分配，然後購買年金合約以將計劃的剩餘義務轉移給第三方來解決現有義務。由於債務的清償將由計劃資產提供資金，我們預計將在 2025 年提供現金捐助，為該計劃提供全額資金。現金捐贈的金額取決於選擇一次性和解的參與者數量以及當前的市場狀況。

In addition to the expected cash funding, we also expect to record noncash pension settlement charges in the second half of 2025 related to the termination. Given the planned termination is subject to certain considerations including market conditions, the amount of cash payments required and regulatory review, we have the ability to change the effective date of the termination or revoke the decision to terminate the plan. We will provide updates on our progress over the next several quarters.

除了預期的現金資金外，我們還預計在 2025 年下半年記錄與終止相關的非現金退休金結算費用。鑑於計劃終止須考慮某些因素，包括市場狀況、所需現金支付金額和監管審查，我們有能力更改終止的生效日期或撤銷終止計劃的決定。我們將在接下來的幾個季度提供最新進展。

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. The execution of our strategy continues to deliver positive results and further demonstrates deepens ability to perform well in varying market conditions. Our solid financial profile provides us with the foundation to continue to execute our strategic transformation. We are in the midst of preparing our 2025 operating plan. In 2025, we expect to realize additional year-over-year benefits from tailored shareholder reports, continued operational transformation and the execution of our strategy.

謝謝，戴夫。我們策略的執行持續取得正面成果，並進一步證明了我們在不同市場條件下表現良好的能力。我們穩健的財務狀況為我們持續執行策略轉型奠定了基礎。我們正在準備 2025 年營運計畫。到 2025 年，我們預計將透過量身定制的股東報告、持續的營運轉型和策略的執行實現額外的同比收益。

Consistent with past practice, we expect to provide an update on 2025 and guidance for the first quarter in February.

與以往的做法一致，我們預計將在 2 月提供 2025 年的最新情況和第一季的指引。

Before we open it up for Q&A, I'd like to thank the decent 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優秀員工，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)

（操作員說明）

Charles Strauzer, CJS Securities, Inc.

查爾斯‧施特勞澤 (Charles Strauzer)，CJS 證券公司

Sorry about that, I'm mute there. If you could talk a little bit about EBITDA margins in the quarter and some more color there in terms of the items that impacted your year-over-year comparisons versus Q3 of last year? And also what you're kind of assuming what kind of assumptions are you assuming in Q4 guidance?

抱歉，我在那裡啞口無言。您能否談談本季的 EBITDA 利潤率，以及影響您與去年第三季同比比較的項目？您在第四季的指導中做了什麼樣的假設？

Yes, Charlie, it's Dave. I'll take that one. Thanks for the question. So we talked about in the prepared remarks on a year-over-year basis, there was about $4 million of benefit that was reflected in Q3 of 2023's results and about $2 million of incremental expense in Q3 of '24 related to 2024 performance. So just some anomalies on the timing there in terms of overall margin and the impact as it relates on a year-over-year basis.

是的，查理，我是戴夫。我會接受那個。謝謝你的提問。因此，我們在準備好的評論中談到，與去年同期相比，2023 年第三季的業績反映了約400 萬美元的收益，24 年第三季與2024 年業績相關的增量費用約​​為200 萬美元。因此，就整體利潤率和與去年同期相比的影響而言，只是時間上出現了一些異常。

I think also, from a sequential perspective, Q3, or I should say, Q2 is typically our highest margin quarter and that's really a result of the operating leverage given the seasonality of our top line. So we typically do see lower margin in Q3 compared to Q2. Obviously, some of the relative impact from '23 relative to '24 was exaggerated by some of these compensation-related items that I mentioned.

我還認為，從連續的角度來看，第三季度，或者我應該說，第二季度通常是我們利潤率最高的季度，考慮到我們營收的季節性，這實際上是營運槓桿的結果。因此，與第二季相比，我們通常會看到第三季的利潤率較低。顯然，我提到的一些與薪酬相關的項目誇大了 23 年相對於 24 年的一些相對影響。

The second thing, I would also say some of the -- in addition to these items, when you look at the combination of Q2 and Q3, EBITDA margin is close to 31% this year. And then when you compare that to the same periods over the last couple of years, that margin is up a couple of hundred basis points. Looking back to 2022, the combined quarters were about 28%, just over 28%. And last year, about 29.5%. And again, that's close to 31% this year.

第二件事，我還要說一些——除了這些項目之外，當你看第二季和第三季的組合時，今年的 EBITDA 利潤率接近 31%。然後，當您將其與過去幾年的同期進行比較時，您會發現該利潤率上升了數百個基點。回顧 2022 年，合併季度約 28%，略高於 28%。去年約為29.5%。今年這一比例再次接近 31%。

So some noise from quarter-to-quarter, but we feel really good about the direction of margins and our long-term guidance there of 30%-plus. Specifically as it relates to Q4 guidance, the assumption there, we outlined the impact of transactional in capital markets, down a couple of million dollars relative to last year. Certainly, the impact of some of the onetime items that we had last year, which amounted to about $7.5 million within the two investment companies segments. By the time you get to Q4 margin our guidance in the low 20% range is pretty consistent with what we delivered in Q4 of last year.

每個季度都會有一些噪音，但我們對利潤率的方向以及我們 30% 以上的長期指導感到非常滿意。具體來說，由於與第四季度指導相關，即假設，我們概述了資本市場交易的影響，與去年相比減少了幾百萬美元。當然，我們去年的一些一次性項目的影響，在兩家投資公司部門內的金額約為 750 萬美元。當你達到第四季度的利潤率時，我們在 20% 的低範圍內的指導與我們去年第四季的交付結果非常一致。

Got it. Great. And just one housekeeping item on G&A in the quarter. It seemed to tick up a little bit sequentially and year-over-year. Any color on that?

知道了。偉大的。本季的一般管理費用中只有一項內務管理項目。它似乎比去年同期略有上升。那上面有什麼顏色嗎？

Yes. I would point back to one of the housekeeping items that I noted at the beginning of my prepared remarks, we accelerated amortization of an asset that we're no longer using and that was about $2.8 million of accelerated amortization there.

是的。我想回顧一下我在準備好的發言開始時提到的一項內務管理項目，我們加速了不再使用的資產的攤銷，加速攤銷約為 280 萬美元。

Got it. And how should we think about modeling that going forward?

知道了。我們應該如何考慮未來的建模？

Yes, you could strip that out. That was a onetime acceleration. And so I would go back to kind of what the normal run rate had looked like historically.

是的，你可以把它去掉。那是一次性的加速。因此，我會回到歷史上正常運行率的情況。

Peter Heckmann, D.A. Davidson.

彼得‧赫克曼，D.A.戴維森。

A few questions, and I was in just a little bit of trouble taking on the notes on the call, a lot of information. But can you give us an update on tailored shareholder reports and kind of put the -- update us on the brackets around kind of the full year benefit that you're expecting and how that's evolved over the last three or four quarters?

有幾個問題，我在記電話筆記時遇到了一點麻煩，因為有很多資訊。但是，您能否向我們提供有關定制股東報告的最新信息，並將您所期望的全年收益以及過去三四個季度的變化情況放在括號中？

Yes, it's Dan. You cut out a little -- I think I guess the question was an update on tailored shareholder reports.

是的，是丹。你刪掉了一點——我想我猜問題是定制股東報告的更新。

That's right. Sorry, I don't have the best signal here. But yes, just I think you said, $11 million to $12 million? And kind of how do you expect that to roll on?

這是正確的。抱歉，我這裡信號不好。但是，是的，我想你說過，1100 萬到 1200 萬美元？您預計這種情況會如何發展？

Yes, exactly. So it's $11 million to $12 million recurring software revenue. Half of that we realized in 2024 and then we should realize the full $11 million to $12 million in 2025.

是的，完全正確。因此，軟體經常性收入為 1,100 萬至 1,200 萬美元。我們在 2024 年實現了其中的一半，然後我們應該在 2025 年實現全部 1100 萬至 1200 萬美元。

Okay. And so the print portion of it, I think you had said previously that some of your competitors were going out with some very competitive pricing and I assume that's consistent. And so you don't expect much of a print benefit from TSR then?

好的。因此，它的印刷部分，我想您之前曾說過，您的一些競爭對手正在推出一些非常有競爭力的價格，我認為這是一致的。那麼您預期 TSR 不會為印刷帶來太大好處嗎？

That's correct. Yes. We saw some pickup, as we mentioned in the script. And then there is a regulation change that reduces the amount of print necessary just in going to a shorter form. So that's a net reduction off of any pickup.

這是正確的。是的。正如我們在腳本中提到的，我們看到了一些回升。然後還有一項法規變更，減少了縮短版式所需的印刷量。因此，這是任何皮卡的淨減少。

Okay. Okay. And then within Capital Markets transaction revenue, I think it was down $2 million year-over-year. Just noting that the number of IPOs you retained on sale, it looked like M&A and debt issuance was up. Would you attribute at least a portion of the low revenue to a lower level of leaseback merger transactions?

好的。好的。然後在資本市場交易收入中，我認為比去年同期下降了 200 萬美元。只要注意到你保留在售的 IPO 數量，看起來併購和債務發行就增加了。您是否會將低收入的至少一部分歸因於回租合併交易水準較低？

Yes. This is Craig. Thank you for the question. I think the overall market, we said was up. We had some larger deals in 2023, so some comps there.

是的。這是克雷格。謝謝你的提問。我認為我們所說的整體市場是上漲的。我們在 2023 年有一些更大的交易，所以有一些比較。

As you look at the market from a total perspective, we said at the beginning of the year, the IPO market wouldn't be a straight-line recovery, and that certainly hasn't been the case. The interest rate cut last month from the Fed didn't do much to turn the tide for IPOs despite equity in being at an all-time high.

當你從整體角度看待市場時，我們在年初就說過，IPO市場不會直線復甦，而且情況當然並非如此。儘管股本處於歷史最高水平，但聯準會上個月的降息並沒有對扭轉首次公開募股的潮流起到多大作用。

The VIX was in range for conducive to IPOs. But as we stated, there were very few that raised over $100 million. When you look in the quarter, July started out strong. There were seven IPOs that raised over $100 million. It was led by Lineage.

VIX 處於有利於 IPO 的範圍內。但正如我們所說，籌集超過 1 億美元的資金很少。當你看這個季度時，七月開局強勁。有 7 次 IPO 籌集了超過 1 億美元的資金。它是由 Lineage 領導的。

We were proud to support Lineage. They raised $4.4 billion near the high end of the range but this positivity in the market didn't last. The market stumbled in early August with economic weakness and then previous Labor Day, we saw more clients who are turning to 2025 for the pre-IPO look.

我們很自豪能夠支持 Lineage。他們籌集了 44 億美元，接近該區間的上限，但市場的這種正面情緒並沒有持續下去。8 月初，市場因經濟疲軟而下跌，然後在先前的勞動節，我們看到更多的客戶轉向 2025 年進行 IPO 前的投資。

So we have seen large issuers joining the pipeline. So we had 15 companies that joined the IPO pipeline, which is slightly below prior quarters. And then what we've seen in October. So as we look at Q4, is a busier month. There were 10 marquee IPOs that priced.

因此，我們看到大型發行人加入了這一行列。因此，我們有 15 家公司加入了 IPO 管道，略低於前幾季。然後是我們在十月看到的情況。因此，當我們看到第四季度時，這是一個更繁忙的月份。有 10 宗大型 IPO 已定價。

We were fortunate to have supported 8 of those 10, there should be just a handful more IPOs in November and December. And if Q4 ends as we think, we should have a year that has about 69 IPOs. So this would be more than 2022 and 2023. But to add context to Dave's comments earlier, there were just 40 last year. There were 27 in 2022 and the 20-year average is 254.

我們很幸運為這 10 家中的 8 家提供了支持，11 月和 12 月應該還會有一些 IPO。如果第四季如我們所想的那樣結束，這一年應該會有大約 69 家 IPO。所以這將超過 2022 年和 2023 年。但要為戴夫之前的評論添加背景信息，去年只有 40 條評論。2022 年有 27 起，20 年平均值為 254 起。

So the longer-term outlook for IPOs is more promising. Morgan Stanley on their earnings call, their CEO talked about the surge that they expect in 2025. There's still obviously room for skepticism as the US. election will provide hopefully some clarity and the market is looking for certainty around regulatory as well as economic policy.

因此，IPO的長期前景較為樂觀。摩根士丹利 (Morgan Stanley) 在財報電話會議上，其執行長談到了他們預計 2025 年的成長。美國顯然仍然存在懷疑的空間。選舉預計將提供一些清晰度，市場正在尋找監管和經濟政策的確定性。

So as you relate back to the quarter, a few more -- it's the mix of those and then the lower per debt invoice, the debt doesn't make up for that. And then M&A is certainly still suppressed. So it only takes a few and you've heard the market is sort of ready for change, and we have a robust pipeline of companies who filed confidentially or planning to file as well as a strong pipeline of IPO RFPs.

因此，當你回顧本季時，還有一些——這是這些因素的混合，然後每張債務發票較低，債務並不能彌補這一點。那麼併購肯定仍然受到抑制。因此，只需要幾個，你就會聽說市場已經做好了改變的準備，而且我們擁有大量秘密提交或計劃提交的公司以及大量 IPO RFP。

So I think another piece as this normalizes this event-driven transactions, it's a pipeline for our recurring software and contracted software. So it leads to venue, it leads to active disclosure pre-IPO, as Dan talked about IPO and certainly post IPO work. So thank you for the question.

因此，我認為，隨著事件驅動交易的規範化，它是我們的循環軟體和合約軟體的管道。因此，它導致了地點，導致了首次公開募股前的積極披露，正如丹談到的首次公開募股，當然還有首次公開募股後的工作。謝謝你的提問。

Sam Salvas, Needham & Co.

薩姆·薩爾瓦斯，李約瑟公司

Just jumping on for Kyle here this morning. Wanted to dig into Venue, it was good to see another quarter of strong growth. And I know you guys mentioned a tough comp from last year, but I did want to just touch on the decel, which was pretty sharp. Are there any changes in the market you're seeing in terms of competitive dynamics? Any lockup in the market given the uncertainty around the election or anything like that, that may be contributed to the decel this quarter?

今天早上我就來找凱爾。想要深入研究 Venue，很高興看到另一個季度的強勁成長。我知道你們提到了去年的艱難比賽，但我確實想談談減速，這是相當尖銳的。您認為市場的競爭動態有什麼改變嗎？鑑於選舉或類似因素的不確定性，市場是否會出現鎖定，這可能會導致本季的經濟放緩？

Yes. I'll start and then maybe we've pointed towards some of the larger projects, and I think that had taken place earlier in the year and the expected tougher comps given our improvement in performance late last year. And then to your question on the market, there's not great market information in terms of how other companies are performing, but we have seen at least one or two and feel like in a 27% increase in revenue that we are taking some share and the market remains consistent with, frankly, what we've seen earlier in the year. And so Craig, anything to add?

是的。我將開始，然後也許我們已經指出了一些較大的項目，我認為這些項目是在今年早些時候進行的，鑑於我們去年年底的業績改善，預期的競爭會更加艱難。然後，關於你在市場上提出的問題，關於其他公司的表現，目前還沒有很好的市場信息，但我們至少看到了一兩家公司，感覺我們在收入增長 27% 中佔據了一些份額，並且坦白說，市場與我們今年早些時候看到的情況保持一致。克雷格，還有什麼要補充的嗎？

Yes. So I appreciate the question. Certainly, that type of growth in Q1 and Q2 is hard to sustain. And as we said, we had tougher comps, we have tougher comps coming up in Q4 and then certainly as we get out to '25. We're proud of the quarter, and we think to build on Dan's point, we drove higher page activity, higher pricing.

是的。所以我很欣賞這個問題。當然，第一季和第二季的這種成長很難維持。正如我們所說，我們有更艱難的比賽，我們在第四季度將有更艱難的比賽，當然，當我們進入 25 年後，我們也會有更艱難的比賽。我們對這個季度感到自豪，我們認為在丹的觀點的基礎上，我們推動了更高的頁面活動和更高的定價。

We're seeing still sluggish M&A demand, but we believe the continued sales execution, which has resulted in several large projects driving some significant revenue in Q3 will continue. So we feel great about the position we're in. The product that we have, the sales team that we have, the broader application within the M&A ecosystem that's serving both announced and unannounced deals across public and private companies is resulting in a more resilient stable demand.

我們看到併購需求仍然低迷，但我們相信持續的銷售執行將繼續下去，這導致了幾個大型項目在第三季度帶來了一些可觀的收入。所以我們對自己所處的位置感覺很好。我們擁有的產品、我們擁有的銷售團隊、以及為上市公司和私人公司的已宣布和未宣布交易提供服務的併購生態系統中更廣泛的應用，正在帶來更具彈性的穩定需求。

So we think as we look into 2025 and hopefully getting back to a median level of activity, the demand for assets will be high, private equity we got. There's a large amount of capital looking to be put to work. We're pleased with our results. We're pleased with the pipeline, and we are going to continue to execute on what got us here, just great products, sales execution and share expansion.

因此，我們認為，當我們展望 2025 年並希望恢復到活動的中位數水平時，對資產（我們得到的私募股權）的需求將會很高。有大量資金等待投入使用。我們對結果感到滿意。我們對管道感到滿意，我們將繼續執行我們所取得的成就，即出色的產品、銷售執行和份額擴張。

Got it. That's super helpful. I appreciate the color on that. And then just as we think about the fourth quarter and maybe the next few quarters. In terms of the software business and growth there, how are you guys thinking about price versus volume with new sales, et cetera, near term?

知道了。這非常有幫助。我很欣賞它的顏色。然後，正如我們思考第四季以及接下來的幾個季度一樣。就軟體業務和那裡的成長而言，你們如何考慮近期的價格與新銷售量等問題？

Yes, Sam, it's Dave. We haven't broken that out specifically, but I would say, I'd point to a couple of items. I think when we look at our long-term contracts, certainly, there are customary price escalators there. We've seen historically in venue kind of moving up to a more market-based price, which has driven a lot of the growth over the last year, but still some opportunity there as well. Probably the one item to point to that's a little bit unique is the tailored shareholder reports impact.

是的，山姆，我是戴夫。我們還沒有具體說明這一點，但我想說，我會指出幾個項目。我認為，當我們審視我們的長期合約時，當然，那裡有習慣性的價格自動扶梯。從歷史上看，我們已經看到場館的價格正在上升到更基於市場的價格，這推動了去年的大量增長，但仍然存在一些機會。也許要指出的一點有點獨特的是定制的股東報告的影響。

And as Dan mentioned earlier, right, $11 million to $12 million. Most of that on an annualized basis, most of that hits within software. And so with half of it coming this year and then getting the second half benefit into next year.

正如 Dan 之前提到的（右），1100 萬至 1200 萬美元。其中大部分按年計算，其中大部分發生在軟體領域。因此，其中一半將在今年實現，然後將下半年的收益留到明年。

Raj Sharma, B. Riley.

夏爾馬 (Raj Sharma)，B. 萊利 (B. Riley)。

Solid growth in software, especially venue again and just kind of following up. Can you provide some more color on the Arc Suite the better growth you're expecting in Q4, if I heard that correctly?

軟體方面的穩健成長，尤其是場地的再次成長以及後續行動。如果我沒聽錯的話，您能否為 Arc Suite 提供更多關於您期望第四季度增長的更多資訊？

Yes. Raj, I think what we said there was a continuation of the better growth that we saw in Q3 relative to the first half of the year. We'll also hit in Q4, and that's the point I just raised regarding tailored shareholder reports, right? So we saw the benefit in Q3. We'll continue to see the benefit in Q4 and then also in the first half of 2025 since that regulation was effective -- became effective in the third quarter.

是的。Raj，我認為我們所說的第三季度相對於上半年的更好成長仍在繼續。我們還將在第四季度進行討論，這就是我剛才提出的關於客製化股東報告的觀點，對嗎？所以我們在第三季看到了好處。我們將在第四季度繼續看到收益，然後在 2025 年上半年也將看到收益，因為該監管已於第三季生效。

Got it. Got it. And then can you comment on the ongoing operating expenses, the spend on the software. Is that higher, lower?

知道了。知道了。然後您能否評論一下持續的營運費用以及軟體支出。是高了還是低了？

Yes. There's always, again, some timing changes and modest variances from quarter-to-quarter. But I think largely from a modeling perspective, whether you're looking at Q4 or longer term, I think it's making an assumption something similar to run rate is the right way to look at it.

是的。再次，每個季度總是會有一些時間變化和適度的差異。但我認為主要從建模的角度來看，無論你是著眼於第四季度還是更長期，我認為做出類似於運行率的假設是正確的看待它的方法。

Got it. So no real change on that. And then can you give a little bit more color, the tax impact again in Q3 that led to the $0.17 charge. Can you clarify that again, please.

知道了。所以沒有真正的改變。然後您能否再詳細說明一下，第三季的稅收影響再次導致了 0.17 美元的費用。請您再澄清一下好嗎？

Yes, yes. And so let me clarify that. So I addressed it in the prepared remarks as one of the two housekeeping items. The tax rate was 43.5%, really a combination of two things. There were some with the way the tax laws work, some non-recognizable losses, right?

是的，是的。讓我澄清一下。因此，我在準備好的演講中將其作為兩個內務事項之一。稅率為 43.5%，實際上是兩件事的結合。有些與稅法的運作方式有關，有些是無法辨識的損失，對嗎？

So you don't get the tax benefit associated with those losses. And then some discrete tax adjustments. You combine those two things with the modest pretax earnings, and it has kind of an outsized impact on the tax rate at 43.5%. I should also clarify that within the $0.17, about $0.09 is related to those tax adjustments. The other $0.08 impact was the combination of the accelerated amortization and the related impairment charge on the asset that we took out of service and wrote down.

因此，您無法獲得與這些損失相關的稅收優惠。然後是一些離散的稅收調整。將這兩件事與適度的稅前收入結合起來，就會對 43.5% 的稅率產生巨大影響。我還應該澄清的是，在這 0.17 美元中，大約有 0.09 美元與這些稅收調整有關。另外 0.08 美元的影響是我們停止使用並減記的資產的加速攤銷和相關減損費用的組合。

Got it. And I think I missed the point on the call where you were talking about the guidance for the fourth quarter. Could you mention that again, please, for revenues?

知道了。我想我錯過了你在電話中談論第四季度指導的要點。關於收入，您能再提一下嗎？

Yes. So baked in our guidance for Q4 is that transactions will be down a couple of million dollars relative to Q4 of last year. I think also when you look at the guidance relative to our guidance and compare that to Q4 last year, we did have about $7.5 million of onetime revenue related to a regulation change in the EU, and that impacted the investment companies segments. Mostly the investment company's Compliance and Communications Management segment.

是的。因此，我們對第四季的指導是，交易量將比去年第四季減少數百萬美元。我還認為，當您查看相對於我們的指導的指導並將其與去年第四季度進行比較時，我們確實有大約750 萬美元的一次性收入與歐盟的監管變化有關，這影響了投資公司部門。主要是投資公司的合規和通訊管理部門。

Right. And so the range is -- for 4Q?

正確的。那麼第四季的範圍是？

So $170 million at the midpoint of the range we gave was $165 million to $175 million.

因此，我們給出的範圍的中點為 1.7 億美元，即 1.65 億美元至 1.75 億美元。

And then low 20s EBITDA margins?

然後 EBITDA 利潤率低至 20 多歲？

Yes, and that's pretty comparable to what we did in Q4 last year.

是的，這與我們去年第四季的表現相當。

Got it. And just lastly for me, the cadence so far on transactions business in Q4. Anything unusual or?

知道了。最後對我來說，第四季交易業務迄今為止的節奏。有什麼異常或嗎？

I'd say nothing unusual. Obviously, we have a view of the October activity and certainly, that gets kind of baked into our guidance for Q4. So I'd say at a high level, more of the same of the environment still being relatively soft, certainly compared to historical levels.

我想說沒什麼不尋常的。顯然，我們對 10 月的活動有一個看法，當然，這也融入了我們對第四季的指導。因此，我想說，從高水準來看，環境仍然相對疲軟，當然與歷史水準相比。

There are no further questions at this time. So hand the call back over to Dan Leib for closing comments.

目前沒有其他問題。因此，請將電話交還給 Dan Leib 以徵求結束意見。

Great. Thank you, and thank you, everyone, for joining, and we'll look forward to speaking with you soon.

偉大的。謝謝大家的加入，我們期待盡快與您交談。

That does conclude our conference for today. Thank you for participating. You may now all disconnect.

我們今天的會議到此結束。感謝您的參與。你們現在可以斷開連結了。