Broadridge Financial Solutions (BR) UBS Global Technology and AI Conference summary

Company overview and business model

• Operates as a $26B global fintech at the intersection of asset managers, corporate issuers, capital markets, and wealth management, with $6.5B in revenues, $4.2B of which are recurring.

• Business is structured into three franchises: ICS/governance ($2.6B, 8% CAGR), capital markets ($1B, 15% CAGR), and wealth management ($600M, 10% CAGR).

• Provides core governance, technology for wealth management, and capital markets operations across asset classes and geographies.

Financial model and outlook

• Targets 7%-9% recurring revenue growth (2024-2026), with 5%-7% organic and 1-2% from tuck-in M&A.

• Achieved 70bps annual margin expansion over the past decade; free cash flow typically at or above 100%.

• Raised recurring revenue guidance to 6%-8% and reaffirmed 8%-12% earnings growth and $290M-$330M sales guidance.

• Maintains a three-year outlook, currently in its fifth cycle, and balances investments, dividends, M&A, and buybacks.

Growth drivers and market trends

• Position growth driven by democratization of investing, new retail investors, managed accounts, and direct indexing.

• Passive fund growth and innovation in products like ETFs and managed accounts support long-term trends.

• Near-term position growth is at the high end of mid- to high-single digits for equities, mid-single digits for funds.