Broadridge Ignites Fiscal 2024 with 8% Revenue Increase

<p>Broadridge
Financial Solutions, Inc. (NYSE: <a href="https://www.financemagnates.com/tag/broadridge/" target="_blank" rel="follow">BR</a>) has kicked off its fiscal year 2024 with a
robust first quarter, marked by significant growth in recurring revenues and
adjusted earnings per share (EPS). The company has reported an 8% increase in total
income, which now stands at $871 million, and a 30% surge in adjusted EPS,
reaching $1.09.</p><p>Broadridge Showcases
Robust Q1 Fiscal 2024 Performance</p><p>The
financial landscape for Broadridge appears strong, with the company not only
increasing its recurring revenues but also seeing a substantial rise in total
revenues, which have climbed 12% to $1,431 million. This growth is attributed
to organic expansions within their Global Technology and Operations (GTO) and
Investor Communication Solutions (ICS) segments.</p><p>The
company's focus on organic growth has also paid off, with closed sales
escalating from $19 million to $48 million. This is complemented by a strategic
capital allocation that has seen Broadridge repurchase $150 million of its
shares.</p><p>Tim Gokey,
CEO of Broadridge, attributes this success to the company's ability to
capitalize on strong secular trends and the increasing demand for its solutions.
"We continue to benefit from strong secular trends and demand for our
unique solutions as we work with clients to democratize investing, simplify and
innovate trading, and modernize wealth management," Gokey stated.</p><p>Operational Performance</p><p>The
operating income soared by 70% to $148 million, <a href="https://www.financemagnates.com/fintech/broadridge-announces-surge-in-operating-income-revenue-in-q4/" target="_blank" rel="follow">following a good last quarter
of fiscal year 2023</a>. This has been largely driven by the increase in recurring
and event-driven revenues. The operating income margin has improved notably
from 6.8% to 10.4%, indicating a more efficient revenue conversion into profit.</p><p>A closer
look at Broadridge's segments reveals that Investor Communication Solutions has
seen a 12% revenue increase, while Global Technology and Operations has enjoyed
an 11% rise in recurring revenues. These segments have thrived due to new
business acquisitions and internal growth, with particular strength in capital
markets and wealth and investment management.</p><p>Forward-Looking Statements</p><p>Looking
ahead, Broadridge remains steadfast in its fiscal year 2024 guidance,
projecting continued growth in recurring revenue and adjusted EPS. </p><p>"We
are reaffirming our fiscal 2024 guidance, including 6-9% Recurring revenue
growth constant currency, 8-12% Adjusted EPS growth, and Closed sales of
$280-320 million," Gokey concluded.</p><p>In October,
the global <a href="https://www.financemagnates.com/terms/f/fintech/">fintech</a> firm <a href="https://www.financemagnates.com/fintech/broadridges-ltx-unveils-customized-ai-solution-for-enterprise-financial-services/" target="_blank" rel="follow">launched a generative AI tool</a> offering advanced
features for processing complex bond-related queries and identifying corporate
bonds. In addition, it announced <a href="https://www.financemagnates.com/fintech/broadridge-and-iress-partnership-aligning-innovation-with-market-needs/" target="_blank" rel="follow">a strategic partnership</a> with Iress, a
technology company specializing in software for the financial services
industry.</p>

This article was written by Damian Chmiel at www.financemagnates.com.