Broadridge Financial Solutions, Inc. (BR) Q3 2023 Earnings Call Transcript

Broadridge Financial Solutions, Inc. (NYSE:BR) Q3 2023 Earnings Conference Call May 2, 2023 8:30 AM ET

Company Participants

Edings Thibault - Head of IR

Tim Gokey - CEO

Edmund Reese - CFO

Conference Call Participants

David Togut - Evercore ISI

Daniel Perlin - RBC Capital Markets

Peter Heckmann - D.A. Davidson

Darrin Peller - Wolfe Research

James Faucette - Morgan Stanley

Puneet Jain - JPMorgan

Operator

Good morning, and welcome to the Broadridge Fiscal Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Edings Thibault, Head of Investor Relations. Please go ahead.

Edings Thibault

Thank you, Kate. And good morning, everybody, and welcome to Broadridge's Third Quarter Fiscal Year 2023 Earnings Conference Call. Our earnings release and the slides that accompany this call may be found on the Investor Relations section of broadridge.com. Joining me on the call this morning are Tim Gokey, our CEO; and our CFO, Edmund Reese.

Before I turn the call over to Tim, let me make a few standard reminders. One, we will be making forward-looking statements on today's call regarding Broadridge that involve risks. A summary of these risks can be found on the second page of the slides and a more complete description on our annual report on Form 10-K. Two, we'll also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of Broadridge's underlying operating results. An explanation of these non-GAAP measures and reconciliations to the comparable GAAP measures can be found in the earnings release and presentation. Let me now turn the call over to Tim Gokey. Tim?

Tim Gokey

Thanks, Edings. Good morning, and thank you for joining us. I'm pleased to be here to review our strong third quarter results. I'll start with a quick summary and key headlines followed by a review of our business. Then I'll close with some thoughts on why I think fiscal '23 has been such a strong year for Broadridge across key operating, strategic and financial milestones and why that positions us well for the future. Let's get started on Slide 3. First, Broadridge delivered another strong quarter. Recurring revenue rose 9% in constant currency, with double-digit growth in our governance business, and strong growth in GTO.

Debt revenue growth helped drive 10% growth in adjusted operating income and 6% growth in adjusted EPS. Importantly, those earnings translated to Street's strong free cash flow, which nearly tripled year-over-year as we continue to step down our wealth platform investments. Second, investor participation remains strong. Q3 equity position growth was 10%, and fund position growth was 6%, with over 90% of equity record dates completed through last week, we continue to expect position growth to be in the high single digits for fiscal '23, underlining the power of the trends driving that growth.