Donnelley Financial Solutions, Inc. (NYSE:DFIN) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 09:00 am ET


Donnelley Financial Solutions, Inc. (NYSE:DFIN) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Donnelley Financial Solutions Second Quarter Earnings Conference Call. [Operator Instructions].

I would now like to turn the call over to Justin Ritchie, Head of Investor Relations. Please go ahead.

Justin Ritchie

Good morning, everyone and thank you for joining the Donnelley Financial Solutions second quarter 2020 results conference call. This morning, we released our earnings report, a copy of which can be found in the Investors section of our website at

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

Further, we will discuss non-GAAP financial information. We believe the presentation of non-GAAP financial information provides you with useful supplementary information concerning the Company's ongoing operations, and 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'm joined this morning by Dan Leib, Dave Gardella, Kami Turner and Tom Juhase.

I will now turn the call over to Dan.

Dan Leib

Thank you, Justin, and good morning everyone. From all of us at DFIN, we hope that you and your families are staying safe and healthy. We are extremely pleased with the Company's performance during the quarter, especially in light of the continuing pandemic, current social unrest and related market volatility. We leveraged our long history of focusing on health and safety to rapidly implement measures to protect our employees throughout the Company, with a specific focus on our manufacturing employees, who are most at risk.

Our decisive actions allowed us across the Company to remain fully operational during our peak filing period, serving clients well with minimal disruption and operating safely. I'm also pleased with the solid progress the team made against the number of the operating objectives that underpin the 44 in 24 strategy, deriving 44% of our sales from software by the year 2024 and delivering the financial results associated with that business mix, that we outlined on the last earnings call.

Specifically, we improved our mix of business helping to drive significant margin and profit improvement, released a new software solution ArcDigital, increased our second quarter market share in SEC compliance filings, extended our market leading position in SEC transactional filings, and shed lower profit offerings from our portfolio.

The consistent progress we continue to make against our stated plan is showing results. We will continue to provide you with additional updates on our progress each quarter. This quarter displayed DFIN's ability to continue to thrive in tough conditions and again shows the strength of our recurring offerings. These recurring offerings provide our business with stability during times of market volatility, while also keeping us close to our