BR Shareholder/Stockholder Letter Transcript:
Be ready
for the future of
nancial services
Trusted expertise.
Transformative technology.
2024 ANNUAL REPORT
Broadridge s strategy is
anchored in long-term trends
that are reshaping the nancial
services industry
Contents
01
CEO Letter
07
2024 Financial Highlights
08
Sustainability
10
Explanation and Reconciliation
of the Company s Use of
Non-GAAP Financial Measures
16
Directors and Executive
Leadership Team
17
Annual Report
on Form 10-K
Today, more than ever, Broadridge is a trusted
and transformative partner that clients
depend on to help them drive innovation
Tim Gokey
Chief Executive O cer
Dear Stockholders,
Broadridge delivered another year of strong and sustainable
growth in scal 2024. We are executing on our strategy to
democratize and digitize governance, simplify and innovate
trading, and modernize wealth management. Our focus on
execution helped drive strong nancial results, including a
double-digit increase in earnings and record Closed sales.
Importantly, we are entering scal 2025 poised for another
year of sustained growth backed by a record backlog, robust
demand for our solutions, and resilient volume trends.
Our strategy is anchored in long-term trends that are
reshaping the nancial services industry. Over the past
several years we have actively repositioned Broadridge to
help our clients address the opportunities and challenges
created by these trends, and that is translating directly into
our nancial results. Today, more than ever, Broadridge is
a trusted and transformative partner that clients depend on
to help them drive innovation, adapt to regulatory changes,
and reduce the cost and complexity of their operations.
Another Year of Strong and Sustainable Growth
Fiscal 2024 Recurring revenue increased 6% constant currency,
and Adjusted earnings per share ( EPS ) rose 10%. Free cash
ow conversion returned to 102%, consistent with more
historic levels and in line with our 2024 guidance. We also
reported record Closed sales of $342 million, an increase of
39% from scal 2023, highlighting the robust demand for our
solutions and giving us increased visibility into our projected
growth in scal 2025 and scal 2026.
Fiscal Year 2024 Results
Recurring
revenue*
+6%
$4.2B
Adjusted
EPS*
+10 %
$7.73
Fiscal 2025
annual dividend
amount
$3.52
+10 %
* Recurring revenue growth constant currency percentage, Free cash ow conversion, and Adjusted EPS are Non-GAAP nancial measures.
Broadridge 2024 Annual Report | 1
Be ready for the
democratization and
digitization of investing
Broadridge is digitizing corporate governance to ensure
that investors get the critical information they need to
understand their investment and vote their shares.
Processing over 800 million shareholder positions to ensure
that tens of millions of investors can vote their shares.
Digitizing almost 90% of proxy communications to reduce
the cost of communications for funds and public companies.
Our growth was paced by the performance of each of our
three franchise businesses. In Governance, Recurring revenue
increased 5% constant currency, powered by growth in
our data-driven fund solutions, issuer solutions, and digital
communications. In Capital Markets, Recurring revenue
grew 8% constant currency, surpassing the $1 billion mark.
We bene ted from the continued demand for our Broadridge
Trading and Connectivity Solutions ( BTCS ) and the
onboarding of new global post-trade clients. Finally, in Wealth
and Investment Management, Recurring revenue increased
7% constant currency, paced by revenues from sales, including
the go-live of the foundational client on our wealth platform.
Our 6% Recurring revenue growth, coupled with our consistent
ability to generate operating leverage, enabled Broadridge
to deliver Adjusted EPS growth of 10% for scal 2024. Our
healthy Free cash ow conversion and investment-grade
balance sheet supported our shareholder-friendly capital
allocation policy, which balances investments for the future
with capital returns to our shareholders. During the year, we
announced or completed three value-accretive tuck-in M&A
transactions while returning $781 million to shareholders,
including an attractive dividend and $450 million in share
repurchases. In August, we raised our annual dividend by
another 10% for scal 2025 to $3.52 per share. Broadridge
2 | Broadridge 2024 Annual Report
Empowering shareholders of more than 100 funds
and ETFs to have a voice in how their fund manager
votes in corporate elections.
Optimizing digital and print communications with our
Wealth InFocus platform to give investors more e ective
communications while lowering costs for their advisors.
has raised its dividend every year during its 18 years as a public
company, and this latest increase marks the 12th double-digit
rise over the last 13 years.
Broadridge s scal 2024 results, underscored by record sales,
keep us on-track to deliver again on our latest set of three-year
nancial objectives, which we announced at our December
2023 Investor Day. Those objectives call for 7% 9% Recurring
revenue growth constant currency and 8% 12% Adjusted EPS
growth over the scal year 2024 through 2026 period.
Our Growth Strategy is Driven by
Long-term Trends
Underpinning Broadridge s strong and sustainable growth
are ve powerful long-term demand drivers.
The democratization of investing is propelling the growth
of our Governance franchise. Lower trading costs and an
ever-expanding array of nancial products are putting more
investment options into the hands of a growing number
of individual investors. This trend has continued in recent
years with ETFs, managed accounts, model-based investing,
and more recently, app-based and zero commission trading.
Growing investor participation also means our clients need
to modernize their wealth o erings to keep pace.
The second driver is the ongoing digitization of communications.
Twenty- ve years after email became ubiquitous, the urgency
around reducing the cost of physical communications is still
very real. Innovation leaders have also realized that e ective
digital communications can increase client engagement,
providing top line bene ts as well. This trend is resonating in
the wealth management industry, driven by the generational
transfer of wealth from Boomers to Gens X and Y and by
increased engagement with younger, digitally native investors
who have grown up in the age of Apple and Amazon.
Third is the acceleration of trading. Capital markets rms
face pressure to drive ever increasing trade volumes at lower
spreads and with faster settlement times. New asset classes
continue to grow, often built with separate operations and
technology infrastructures. Multiply each asset class by dozens
of markets around the world with ever-higher volumes, and
you can see why both large and smaller clients face constant
pressure to simplify and innovate their operations.
Fourth is the growing importance of data, and with it,
Arti cial Intelligence ( AI ). Ever increasing computing speeds
and the plummeting costs of storage have enabled companies
to use growing lakes of data to guide decision-making and
fuel an array of nancial products. The advent of generative
AI gives every company a tool to increase productivity and
improve the user experience. For those companies with
unique data, the bene ts will be even greater.
Finally, regulatory change is a constant as regulators around
the world continuously update rules to regulate behavior and
improve disclosure for all investors.
Over the past few years, we have actively reshaped Broadridge
to address these trends. In Governance, we have scaled our
regulatory business, invested in our digital capabilities, and
helped our clients address multiple regulatory changes. In
Capital Markets, the acquisition of BTCS has extended our
capabilities into the front- and middle-o ce. We have also
invested in our global post-trade platform across multiple
Be ready to
simplify and innovate
capital markets
Broadridge is powering trading at scale with
global, multi-asset class, modular solutions that
drive revenue, increase e ciency, and reduce risk.
Driving simpli cation and innovation
with front-o ce platforms that support
high-volume, low-touch trading strategies
and high-touch customized execution
across multiple asset classes.
Simplifying operations by enabling banks
to clear and settle trades on a uni ed,
next-generation system across multiple
asset classes and markets around the world.
Innovating with distributed ledger
technology to help global institutions
increase liquidity, transfer collateral,
and reduce counterparty risk.
Broadridge 2024 Annual Report | 3
10/2/2024 Letter Continued (Full PDF)