Broadridge Financial Solutions, Inc. (NYSE:BR) today announced financial results for the second quarter ended December 31, 2023 of fiscal year 2024.
Total revenue for the second quarter of fiscal 2024 rose 9% to $1,405 million from $1,293 million a year earlier.
Recurring revenue increased $58 million, or 7%, to $899 million. Recurring constant currency (Non-GAAP) revenue growth was 6%, all organic, driven by Net New Business and Internal Growth.
Event-based revenue increased $18 million, or 47%, to $55 million due to higher mutual fund brokerage activity.
Distribution revenue rose $36 million, or 9%, to $451 million, thanks to a roughly $28 million increase in postage and higher event-based shipments.
Operating income was $124 million, an increase of $16 million, or 15%. Operating income margin increased to 8.9%, compared to 8.3% for the prior-year period, primarily due to higher Recurring income and higher event-based income.
Adjusted operating income was $174 million, up $1 million or 1%. Adjusted operating income margin was 12.4% compared to 13.4% for the prior year period. Operating leverage from higher revenue and a net benefit of 40 basis points from higher variation revenue and distribution revenue was offset by increased capital expenditures and higher selling, general and administrative expenses.
Net income rose 22% to $70 million and adjusted net income rose 1% to $110 million.
Diluted earnings per share rose 23% to $0.59, compared to $0.48 in the prior period and
Adjusted earnings per share rose 1% to $0.92, compared with $0.91 in the prior period.
“Broadridge’s second quarter marks continued progress toward the growth goals we outlined at our Investor Day in December,” said Tim Gokey, CEO of Broadridge. “Our results, including 6% organic recurring revenue growth, demonstrate the continued execution of our goals of democratizing and digitizing governance, simplifying and innovating capital markets transactions, and modernizing wealth management. Our focus on driving growth and returns translates into higher free cash flow and enables us to return additional capital to shareholders.
“We are reaffirming our 2024 guidance of 6-9% constant currency Recurring Revenue growth, 8-12% Adjusted EPS growth and record close sales of $280-320 million. As a result, we are off to a strong start to meet our three-year growth targets, including 7-9% year-over-year growth in Recurring Revenue and 8-12% in Adjusted EPS,” concluded Mr. Gokey.