Q4 2021 Donnelley Financial Solutions Inc Earnings Call

Thats still the number and does it happened mostly in the first half or the second half.

How do we kind of view the gross margins for income could you talk about the divisions with softwood gross margins and gross margins.

What about the other piece of you've.

You see them moving forward and of course, the venue as it related to that.

One which is going to start and then I'll, let Craig comment further.

And so I think our comment around the market volatility.

Yes.

See here in the first several weeks of the year applies broadly to the transactional space not just the <unk> transactions.

The other activity I think from from at that side, obviously, not not as impactful to our overall financials.

But.

And then lastly, with your comment on venue.

Very often venue is.

Not.

Highly correlated to the number of deals that are actually getting completed right there could be activity going on in the background or private company deals that don't impact our the other part of our transactional business.

I think I think we're seeing.

Pretty good activity, there as well Craig you want to comment further.

Yes. Thank you for the question.

Certainly.

<unk> in the early days of 2022 dealer imbalances.

Political issues in the pandemic.

What we're seeing from our clients working is this business cycle is going to normalize for these extremes. So if you look at the IPO segment specifically.

Specifically.

First ipos, especially in January where small and mid cap offerings.

But with only one offering over $1 billion, TPG, which was a decent deal and then you look at the pipeline. So post Presidents' day. There are several potential large IPO will have the ability to launch.

So the boss help spinoffs Socal medical.

And Walsh of Boston long flavors value.

So there are ipos that have that ability to go on the roadshow and so we're really hearing seeing from our clients.

There are some strength that we will see in the later part of Q1.

Clearly we've mentioned stocks.

The 600 stack searching for a business.

Combinations.

The headlines with respect that so it went up in grade cancellations.

That is we hear and see from our clients is a natural shakeout.

Sort of the company.

Any sort of public market for this recent volatility has certainly dampened enthusiasm pushback spot.

Again, what we're seeing and hearing from our clients in the world.

But they are doing in preparation.

The underlying market.

Still strong were going to see Sparks combined.

And to go after targets.

We're going to see consolidation.

But it's created again.

Terrific ecosystem for us.

Again, our position.

So then as you get to venues.

Sure.

Clients are using that we believe we're taking share above our competitors we believe.

Our product excellence.

With that we have.

Better than that.

Dax content sort of burn than redact.

Our pipeline is.

Still at a terrific.

Outside of any market.

We're going to continue to take share, which gives us confidence for 2022.

Great and then I have a mic.

I have a last question.

And then I'll take it offline.

On software.

Should we how do we view are you gaining share in software in any of the key product lines versus your other competitors with kiva.

Because software obviously is very.

<unk> is very strong and robust.

But your total valuation.

Gets held back significantly.

Because of your episodic business and transactions.

Just wanted to understand your software.

The field and if you are gaining share and then if you can comment on the total valuation being out there.

<unk> business.

Yes.

Thanks Raj, it's a great question.

You look at our overall growth breaking apart even.

And compliance software from transactional.

And we feel like we did really well.

Sure.

In the markets in which we play and there is we compete against different parties in different offerings and there's not one company. That's a direct overlay, but when you start to segment the pieces, we feel really.

Really.

Out of how we did in good about how we did and feel enthusiastic about the future based on what we've developed what we're hearing in the marketplace.

Across the various software lines.

To your point on valuation.

Comment in my prepared remarks that.

Based on trailing.

EBITDA multiple enterprise value multiple we're trading at about EBITDA not for it.

And so we think it's cheap.

We think it's attractive.

A larger buyback.

And I think it's important that we.

We focus on what we've done with them.

Our balance sheet, that's put us in a position to.

Execute our strategy, we have a lot of financial flexibility to do just that and we have the dollars.

Q2 also.

Execute buybacks and so we agree when we look at the intrinsic value when we recognize.

Some of the volatility I should say the volatility in some of our product lines.

We have a lot of product lines that are recurring.

And predictable and trade at significantly higher valuation in the marketplace. So so we agree with the sentiment.

Alright, I'll take my questions offline. Thank you.

Thank you.

So im altering the call back to the presenters.

Great. Thank you very much and thank you everyone for joining we will look forward to.

That being following our Q1 results in May and hope to speak to many of you in the interim and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect.

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