Broadridge Financial Solutions, Inc. (NYSE:BR) has reported its financial results for the second quarter of the fiscal year 2024, showcasing an increase of 9% in total revenue at $1,405 million.
Broadridge's recurring revenues experienced a significant uptick, totaling $899 million. This marked an increase of 7% year-over-year. This growth, which translates to a boost of 6% in constant currency, reflects the company's resilience and adaptability in navigating market dynamics.
Growth in Recurring Revenue
Tim Gokey, the CEO of Broadridge, mentioned: "We are reaffirming our 2024 guidance including 6-9% recurring revenue growth constant currency, 8-12% adjusted EPS growth, and record closed sales of $280-320 million, as a result. We are off to a strong start in delivering on our three-year growth objectives, including annualized growth of 7-9% for recurring revenues and 8-12% for adjusted EPS."
The Investor Communication Solutions segment witnessed total revenues of $1,000 million, reflecting a jump of 9%, driven by higher recurring revenues and event-driven revenues. Besides that, the Global Technology and Operations segment reported recurring revenues of $405 million, marking an increase of 9%, primarily propelled by net new business and internal growth.
Broadridge ignited its fiscal year 2024 with an impressive first quarter, marked by notable growth in recurring revenues and adjusted EPS. With an upturn of 8% in total income, which stood at $871 million, and remarkable growth of 30% in adjusted EPS, reaching $1.09, Broadridge's fiscal performance sets a positive trajectory for 2024.
Consistent Growth in Revenue and EPS
During this period, Broadridge posted a notable expansion of 12% in total revenue at $1,431 million. This growth was credited to organic expansion within their Global Technology and Operations and Investor Communication Solutions segments.
The company's strategic focus on organic growth yielded positive results, with closed sales soaring from $19 million to $48 million. Additionally, a strategic capital allocation saw Broadridge repurchase $150 million of its shares, indicating confidence in its future trajectory.
Besides that, the firm's operating income soared 70% to $148 million, with the operating income margin improving notably from 6.8% to 10.4%. This reflected a more efficient revenue conversion into profit.
Recently, Broadridge introduced OpsGPT, a solution leveraging Generative AI to revolutionize post-trade operations. The company’s commitment to AI innovation extends beyond OpsGPT. Last year, Broadridge launched BondGPT, an AI-powered application that streamlines bond selection within the US corporate bond market.
