On this page of StockholderLetter.com we present the latest annual shareholder letter from Donnelley Financial Solutions, Inc. — ticker symbol DFIN. Reading current and past DFIN letters to shareholders can bring important insights into the investment thesis.
Annual Report
2023
Our Values
Our values enable us to make a positive impact
on our employees, clients, and shareholders.
Purposeful Agility
Collective Genius
We navigate
constantly changing
market conditions
in order to help our
clients succeed.
We create the
best solutions by
leveraging diverse
perspectives, sharing
knowledge, and
fostering an inclusive
environment in which
all voices are heard.
Uncompromising
Integrity
We adhere to the
highest standards of
integrity, quality, and
transparency in all
that we do.
Bold Action
We are con   dent
and willing to push
boundaries to
pursue innovative
and unconventional
solutions.
DEAR FELLOW SHAREHOLDERS:
2023 was a year of focused execution against our strategic plan. We delivered strong results while investing in areas that will accelerate our
growth and further our transformation. Despite continued market headwinds created by economic and geopolitical forces, we achieved strong
financial results, delivering $82.2 million of net earnings, $207.4 million in non-GAAP Adjusted EBITDA, and a non-GAAP Adjusted
EBITDA margin of 26.0%, levels of which are significantly above historical periods with similar overall and transactional revenues.
Additionally, in 2023 we generated superior returns for our shareholders compared to relevant market indexes and our peer group.
It is evident our strategic transformation has made DFIN more durable and resilient across various market conditions. Our focused execution
to improve our sales mix and manage our costs in a disciplined manner has resulted in DFIN becoming fundamentally more profitable,
providing us the financial flexibility to invest in our multi-year strategic transformation, deliver value to shareholders via share repurchases,
and reduce debt. I am confident that we remain on the path to continue to create increased value for all our stakeholders - our clients,
employees, and shareholders.
Delivering Continued Progress on our Strategic Transformation
We made significant progress in 2023 and strengthened the foundation for continued success:

Evolving our business to become more consistent and predictable. In 2023, we derived approximately 75% of our total revenue
from recurring and reoccurring offerings, with the remaining 25% of revenue being event-driven. We expect the evolution of our
revenue profile towards a higher mix of predictable revenue to continue going forward as we accelerate the growth in our recurring
and reoccurring offerings, while benefitting from, but being less dependent on, event-driven revenues.

Expanding the adoption of our software solutions. Our 2023 progress was highlighted by the continued growth in our SaaS offerings,
which reached a record of nearly $293 million of net sales and accounted for approximately 37% of total net sales. Our virtual dataroom
product, Venue, grew 11% year-over-year and once again demonstrated a consistent level of performance compared to the market for its
primary use case, M&A, providing further stability to our results.

Assisting our clients with current and future regulatory changes. As a leading regulatory and compliance solutions provider, we
deliver enterprise software, domain expertise, and leading service capabilities to help our clients navigate a changing regulatory and
compliance landscape. In 2023, we assisted our clients to comply with new SEC regulations such as the Pay versus Performance
disclosure and introduced solutions for the upcoming Tailored Shareholder Reports rule, which becomes effective in July 2024.

Investing to accelerate our transformation. In 2023, we made incremental investments in both our software solutions offerings
and associated business processes to support continued modernization, innovation, and growth. These investments will help to
profitably scale existing products, increase our speed to market, and enhance client experience. Our investments in areas such as the
Tailored Shareholder Reports software solution and the development of a single compliance SaaS platform will help drive future
revenue growth in existing markets, as well as from new regulations and future use cases.
Building on our Momentum in 2024
Our strategy - to be the market-leading provider of regulatory and compliance solutions - remains unchanged. In 2024, you can expect our
primary focus to remain on accelerating our business mix shift by continuing to grow our recurring revenue base, while maintaining market
share in our core traditional businesses, including transactions. We will continue to invest in our regulatory and compliance software platform
to position DFIN to capitalize on the demand from future new regulations and non-SEC use cases. In addition, we will remain disciplined in
the allocation of capital in order to maintain our financial flexibility to execute our strategy.
Well-positioned to create long-term value
We believe DFIN   s opportunities ahead are greater than what we have accomplished thus far. With a strong foundation created, we are well
positioned to create increasing value to all our stakeholders in the next chapter of our transformational journey. Based on our updated longterm projections, we expect to deliver predictable, consistent organic top line growth, continued strong profitability, and robust cash flow
generation over the next five years. Our continued transformation and growth will enable DFIN to introduce new solutions to the marketplace,
expand into additional serviceable markets, and deliver more stable and consistent performance. We are confident we are taking the right steps
to drive growth and capture the significant opportunity ahead of us to create enhanced value for all DFIN stakeholders and make DFIN the
partner of choice in the industry.
Thank you for your feedback, ideas, and support, as well as your investment. We look forward to continuing to share our successes with you
for years to come.
Thank you,
Dan Leib
Chief Executive Officer
 • shareholder letter icon 4/3/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/5/2023 DFIN Stockholder Letter
 • stockholder letter icon More "Business Services & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon DFIN Benford's Law Stock Score = 70


DFIN Shareholder/Stockholder Letter Transcript:

Annual Report
2023

Our Values
Our values enable us to make a positive impact
on our employees, clients, and shareholders.
Purposeful Agility
Collective Genius
We navigate
constantly changing
market conditions
in order to help our
clients succeed.
We create the
best solutions by
leveraging diverse
perspectives, sharing
knowledge, and
fostering an inclusive
environment in which
all voices are heard.
Uncompromising
Integrity
We adhere to the
highest standards of
integrity, quality, and
transparency in all
that we do.
Bold Action
We are con   dent
and willing to push
boundaries to
pursue innovative
and unconventional
solutions.

DEAR FELLOW SHAREHOLDERS:
2023 was a year of focused execution against our strategic plan. We delivered strong results while investing in areas that will accelerate our
growth and further our transformation. Despite continued market headwinds created by economic and geopolitical forces, we achieved strong
financial results, delivering $82.2 million of net earnings, $207.4 million in non-GAAP Adjusted EBITDA, and a non-GAAP Adjusted
EBITDA margin of 26.0%, levels of which are significantly above historical periods with similar overall and transactional revenues.
Additionally, in 2023 we generated superior returns for our shareholders compared to relevant market indexes and our peer group.
It is evident our strategic transformation has made DFIN more durable and resilient across various market conditions. Our focused execution
to improve our sales mix and manage our costs in a disciplined manner has resulted in DFIN becoming fundamentally more profitable,
providing us the financial flexibility to invest in our multi-year strategic transformation, deliver value to shareholders via share repurchases,
and reduce debt. I am confident that we remain on the path to continue to create increased value for all our stakeholders - our clients,
employees, and shareholders.
Delivering Continued Progress on our Strategic Transformation
We made significant progress in 2023 and strengthened the foundation for continued success:

Evolving our business to become more consistent and predictable. In 2023, we derived approximately 75% of our total revenue
from recurring and reoccurring offerings, with the remaining 25% of revenue being event-driven. We expect the evolution of our
revenue profile towards a higher mix of predictable revenue to continue going forward as we accelerate the growth in our recurring
and reoccurring offerings, while benefitting from, but being less dependent on, event-driven revenues.

Expanding the adoption of our software solutions. Our 2023 progress was highlighted by the continued growth in our SaaS offerings,
which reached a record of nearly $293 million of net sales and accounted for approximately 37% of total net sales. Our virtual dataroom
product, Venue, grew 11% year-over-year and once again demonstrated a consistent level of performance compared to the market for its
primary use case, M&A, providing further stability to our results.

Assisting our clients with current and future regulatory changes. As a leading regulatory and compliance solutions provider, we
deliver enterprise software, domain expertise, and leading service capabilities to help our clients navigate a changing regulatory and
compliance landscape. In 2023, we assisted our clients to comply with new SEC regulations such as the Pay versus Performance
disclosure and introduced solutions for the upcoming Tailored Shareholder Reports rule, which becomes effective in July 2024.

Investing to accelerate our transformation. In 2023, we made incremental investments in both our software solutions offerings
and associated business processes to support continued modernization, innovation, and growth. These investments will help to
profitably scale existing products, increase our speed to market, and enhance client experience. Our investments in areas such as the
Tailored Shareholder Reports software solution and the development of a single compliance SaaS platform will help drive future
revenue growth in existing markets, as well as from new regulations and future use cases.
Building on our Momentum in 2024
Our strategy - to be the market-leading provider of regulatory and compliance solutions - remains unchanged. In 2024, you can expect our
primary focus to remain on accelerating our business mix shift by continuing to grow our recurring revenue base, while maintaining market
share in our core traditional businesses, including transactions. We will continue to invest in our regulatory and compliance software platform
to position DFIN to capitalize on the demand from future new regulations and non-SEC use cases. In addition, we will remain disciplined in
the allocation of capital in order to maintain our financial flexibility to execute our strategy.
Well-positioned to create long-term value
We believe DFIN   s opportunities ahead are greater than what we have accomplished thus far. With a strong foundation created, we are well
positioned to create increasing value to all our stakeholders in the next chapter of our transformational journey. Based on our updated longterm projections, we expect to deliver predictable, consistent organic top line growth, continued strong profitability, and robust cash flow
generation over the next five years. Our continued transformation and growth will enable DFIN to introduce new solutions to the marketplace,
expand into additional serviceable markets, and deliver more stable and consistent performance. We are confident we are taking the right steps
to drive growth and capture the significant opportunity ahead of us to create enhanced value for all DFIN stakeholders and make DFIN the
partner of choice in the industry.
Thank you for your feedback, ideas, and support, as well as your investment. We look forward to continuing to share our successes with you
for years to come.
Thank you,
Dan Leib
Chief Executive Officer



shareholder letter icon 4/3/2024 Letter Continued (Full PDF)
 

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