Donnelley Financial Solutions, Inc. (NYSE:DFIN) Q3 2024 Earnings Conference Call October 31, 2024 9:00 AM ET

Company Participants

Mike Zhao - Head-IR
Dan Leib - CEO
Dave Gardella - CFO
Craig Clay - President-Global Capital Markets

Conference Call Participants

Charles Strauzer - CJS Securities, Inc.
Peter Heckmann - D.A. Davidson
Sam Salvas - Needham & Co.
Raj Sharma - B. Riley

Operator

Good day, and welcome to the Donnelley Financial Solutions Third Quarter 2024 Earnings Conference Call. [Operator Instructions] And finally, I would like to advise all participants that this call is being recorded. Thank you.

I'd now like to welcome Mike Zhao, Head of Investor Relations to begin the conference. Mike, over to you.

Mike Zhao

Thank you. Good morning, everyone, and thank you for joining Donnelley Financial Solutions third quarter 2024 results conference call. This morning, we released our earnings report, including a set of supplemental trending schedules of historical results. Copies of which can be found in the Investors section of our website at dfinsolutions.com.

During this call, we'll refer to forward-looking statements that are subject to risks and uncertainties. For a complete discussion, please refer to the cautionary statements included in our earnings release further detailed in our most recent annual report on Form 10-K, quarterly report on Form 10-Q and other filings with the SEC.

Further, we will discuss certain non-GAAP financial information, such as adjusted EBITDA, adjusted EBITDA margin and organic net sales. We believe the presentation of non-GAAP financial information provides you with useful supplementary information, concerning the company's ongoing operations, and is an appropriate way for you to evaluate the company's performance. They are, however, provided for informational purposes only. Please refer to the earnings release and related tables for GAAP financial information and reconciliations of GAAP to non-GAAP financial information.

I am joined this morning by Dan Leib, Dave Gardella, and other members of management.

I will now turn the call over to Dan.

Dan Leib

Thank you, Mike. And good morning, everyone.

Our third quarter results offered further validation of our strategy, including a favorable sales mix driven by double-digit growth, in our SaaS offerings, improvements in both operating cash-flow and free-cash flow and great progress in expanding the adoption of our offerings in the marketplace.

Against the backdrop of a soft capital markets transactional environment, which resulted in an 8% reduction in our transactional revenue we delivered solid results. With net sales of $179.5 million and adjusted EBITDA of $43.2 million, resulting in an adjusted EBITDA margin of 24.1%. Which once again demonstrated the resiliency of our operating model across various market conditions and the sustainability of our performance as our business mix continues to transform.