Donnelley Financial Solutions Inc. (DFIN) plummeted 5.34% in the pre-market session on Wednesday after the company reported weaker-than-expected fourth quarter and full year 2024 results, impacted by a decline in event-driven transactional revenue.
For the full year 2024, the company's revenue fell 1.9% year-over-year to $781.9 million due to lower capital markets transactions and mutual fund proxy project revenue. However, DFIN's strategic software solutions business continued to deliver robust growth, with net sales increasing 13.8% organically to $330 million for the year, driven by double-digit growth in recurring compliance offerings like ActiveDisclosure and ArcSuite.
"Despite a prolonged headwind from lower transactional activity, our strong execution enabled us to deliver solid margin performance in 2024," said CEO Daniel Leib, citing adjusted EBITDA margin expansion of 180 basis points to 27.8%. He added that the company is "encouraged by the momentum" in its compliance products heading into 2025.