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

Business overview and transformation

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

• Business has shifted from tech-enabled services to nearly 50% software, with a goal of reaching 60% software revenue by 2028.

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

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

• Print and distribution now represent only 15% of revenue, down from 40% in 2016, with a focus on margin improvement through a variable cost model.

Market position and competitive dynamics

• Holds top-three market share positions across core offerings, supported by strong software, distribution channels, and domain expertise.

• Competitive landscape varies by product, with different competitors in data rooms, corporate compliance, and fund compliance.

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

• Print remains a necessary but shrinking segment, driven by regulation and customer preference.

Growth strategy and future opportunities

• Growth to 60% software revenue will be driven by market share gains, price increases, and migration from traditional services.

• Exploring non-SEC use cases and adjacent markets for incremental growth.

• New product launches, such as the rebuilt Venue and ArcFlex for private funds, target expanding market needs.

• Regulatory changes like Tailored Shareholder Reports and EDGAR Next provide ongoing growth opportunities.