Donnelley Financial Solutions (DFIN) 28th Annual Needham Growth Conference Virtual summary

Business overview and transformation

• Provides regulatory compliance solutions, primarily for SEC requirements, serving public and pre-IPO corporations, mutual funds, ETFs, and insurance companies.

• Business has shifted from tech-enabled services to nearly 50% software, with further migration planned based on client preferences.

• Three main software products: ActiveDisclosure (corporate compliance), Venue (data room for deals), and ArcSuite (financial reporting for funds).

• Recurring revenue comprises 75% of the business, with event-driven revenue at 25%.

• Strong market share, ranking in the top three across all offerings, supported by robust software, sales force, and distribution channels.

Market dynamics and growth strategy

• Competitive landscape varies by product, with both diversified and point-solution competitors.

• Targeting 60% of sales from software by 2028, up from just under 50% currently, through market share gains, price increases, and migration from traditional services.

• Exploring non-SEC use cases and leveraging the compliance platform for incremental growth.

• Tech-enabled services remain a significant segment, especially for clients preferring a do-it-for-me model.

• Print and distribution now represent 15% of revenue, down from 40% in 2016, with a shift to a variable cost model and higher margins.

Capital markets, regulation, and innovation

• Capital markets activity is expected to rebound in 2026, potentially restoring over $100 million in revenue and driving high incremental margins.

• Regulatory changes, such as Tailored Shareholder Reports and EDGAR Next, provide growth opportunities.

• New Venue product launched in Q4 2025 to address more market segments.

• AI investments include Active Intelligence for benchmarking and document management, with a balanced approach to opportunities and risks.

• AI and technology are leveraged for both client-facing products and internal efficiency improvements.