On this page of StockholderLetter.com we present the 9/27/2023 shareholder letter from BROADRIDGE FINANCIAL SOLUTIONS, INC. — ticker symbol BR. Reading current and past BR letters to shareholders can bring important insights into the investment thesis.

 •  9/27/2023 Letter Continued (Full PDF)
 •  10/2/2024 BR Stockholder Letter
 •  10/2/2025 BR Stockholder Letter
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 •  BR Benford's Law Stock Score = 97

BR 9/27/2023 Shareholder/Stockholder Letter Transcript:

2023 ANNUAL REPORT
Powering the
transformation
of    nancial services
Ready for Next

Ready for Next
Broadridge provides the critical infrastructure
that powers investing, corporate governance, and
communications to enable better financial lives.
Our technology-driven solutions accelerate digital
transformation to help our clients get ahead of
today   s challenges to capitalize on what   s next.
FISCAL YEAR 2023 RESULTS
CONTENTS
RECURRING REVENUE
02
CEO Letter
11
2023 Financial Highlights
12
Sustainability
14
Explanation and Reconciliation of
the Company   s Use of Non-GAAP
Financial Measures
18
Directors and Executive
Leadership Team
19
Annual Report on Form 10-K
IBC
Corporate Information
$4.0B
UP 9%
ADJUSTED EARNINGS PER SHARE
$7.01
UP 9%
FISCAL 2024 ANNUAL DIVIDEND AMOUNT
$3.20
UP 10%
ON THE COVER
Broadridge is a proud
partner of USRowing and the
U.S. Women   s National Team

   The investments we have made
and solutions we provide make
Broadridge the trusted partner for
next-generation technology.   
TIM GOKEY
Chief Executive Officer
2023 Annual Report Broadridge
1

Dear Stockholders,
Broadridge had a strong year in fiscal 2023. We brought
new innovation and digitization to our governance clients,
completed the integration of our front office trading
capabilities in our Capital Markets franchise, and finalized
the rollout of our new wealth management platform suite.
We also delivered strong financial results, including record
free cash flow, that put us at or above the high end of our
three-year financial objectives. Most importantly, we head
into fiscal 2024 better positioned than ever to continue
driving long-term shareholder value by enabling the ongoing
transformation of financial services.
benefited from new digital and print wins in our customer
communications business, enhanced our relationships
with fast-growing digital brokers, and increased investor
participation. In Capital Markets, Recurring revenue grew
11% on a constant currency basis, driven by strong growth in
the Broadridge Trading and Connectivity Solutions (BTCS)
business and the onboarding of new global post-trade clients.
Finally, in Wealth & Investment Management, Recurring
revenue increased 4% on a constant currency basis, with our
growth paced by revenues from new sales, driven by demand
for our modular solutions.
I am especially proud of these results given the backdrop
of an uneven market environment characterized by a steep
rise in interest rates, increasing regulation, and outflows
from mutual funds. Our ability to drive strong results was
driven by focused execution across our businesses and by
the continued long-term trends driving demand for our
services. Our financial services clients know they need to
streamline their operations, increase their digital capabilities,
and drive innovation. They want partners who can help,
and they recognize Broadridge is uniquely positioned as we
deliver today while investing to deliver new solutions built on
modern technology tomorrow.
We remained committed to disciplined expense management
while continuing to reinvest in our business. In fiscal year
2023, our Adjusted Operating income margins expanded
110 basis points to 19.8%, which in turn helped drive strong
Adjusted EPS growth.2 In addition, Broadridge generated
record free cash flow, which enabled us to achieve the target
leverage objective we set at the time of the acquisition
of BTCS.
Strong Financial Results
The strength and resilience of the Broadridge business model
was reflected in our strong fiscal year 2023 results. Recurring
revenue increased 9% on a constant currency basis, all
organic, driving 9% Adjusted EPS growth and 90% free cash
flow conversion.1 We benefited from continued growth
across our three franchise businesses of Governance, Capital
Markets and Wealth & Investment Management, highlighting
both the breadth and depth of our products.
In our Governance business, Recurring revenue increased
9% on a constant currency basis, with strong growth across
all product lines. Our growth was paced by new sales as we
With our free cash flow conversion returning to more
historical levels following three years of investments in
our wealth management solutions, I want to reiterate our
commitment to a capital allocation policy that balances
growth investments with capital returns to shareholders. In
line with that commitment, we raised our annual dividend
by 10% for fiscal year 2024 to $3.20 per share. Broadridge
has now increased its dividend every year for the 17 years it
has been a public company, including double-digit increases
in 11 of the past 12 years, and we are proud of that track
record. We expect our free cash flow generation to improve
further in fiscal year 2024, leaving Broadridge well-positioned
to continue to make growth-oriented internal investments,
pursue tuck-in M&A if the right opportunity arises, and
resume share repurchases for the first time since fiscal
year 2019.
1 Recurring revenue growth on a constant currency basis, Adjusted EPS and Free cash flow conversion are Non-GAAP financial measures. Please see our    Explanation and Reconciliation
of the Company   s Use of Non-GAAP Financial Measures    on pages 14-17 of this Annual Report for a discussion of the Company   s use of Non-GAAP measures.
2 Adjusted Operating income margin and Adjusted EPS are Non-GAAP financial measures. Please see our    Explanation and Reconciliation of the Company   s Use of Non-GAAP
Financial Measures    on pages 14-17 of this Annual Report for a discussion of the Company   s use of Non-GAAP measures.
2
Broadridge 2023 Annual Report

Delivering on Our
Long-term Objectives
At Broadridge, one of the ways we try to help investors
better understand the growth potential of our business is
by setting longer-term financial objectives every three years.
Fiscal year 2023 marks the completion of the latest set of
those objectives, which covered fiscal years 2020 through
2023. I am pleased to report that Broadridge has met or
exceeded the high end of our targets across all key metrics.
Since fiscal year 2020, we have grown our Recurring revenue
constant currency by a compound annual growth rate
(CAGR) of 11%, expanded our Adjusted Operating income
margin by an average of 77 basis points per year, and our
Adjusted EPS increased at a 12% CAGR.1
Our ability to deliver on those goals becomes even more
meaningful when viewed through a longer lens. The fiscal
year 2020 through 2023 period marks the fourth consecutive
three-year cycle in which we have delivered against a similar
set of objectives. This consistent performance underscores
the long-term nature of the trends driving demand for
our solutions, Broadridge   s focus on profitable growth,
and the strength and resilience of our recurring revenue
business model.
Broadridge Met or Exceeded the High End of its Three-Year
Fiscal Years 2020-2023 Financial Objectives
Objective: 5-7% CAGR
ORGANIC RECURRING REVENUE GROWTH   
8%
Objective: 7-9% CAGR   
11%
RECURRING REVENUE GROWTH 1
Objective: 8-12% CAGR
ADJUSTED EARNINGS PER SHARE GROWTH 1
12%
Objective: 50+ bps/yr
ADJUSTED OPERATING INCOME MARGIN EXPANSION 1
77 bps
1 Recurring revenue on a constant currency basis, Adjusted EPS and Adjusted Operating income margin are Non-GAAP financial measures. Please see our    Explanation and
Reconciliation of the Company   s Use of Non-GAAP Financial Measures    on pages 14-17 of this Annual Report for a discussion of the Company   s use of Non-GAAP measures.
2 Average of the annual Organic Recurring revenue growth per year for fiscal years 2021 through 2023, as defined in the 2023 Form 10-K.
3 Fiscal years 2020-2023 Investor Day Recurring revenue growth objective in constant currency reflecting Broadridge   s approach to foreign exchange reporting as of December 10, 2020.
2023 Annual Report Broadridge
3

9/27/2023 Letter Continued (Full PDF)

 

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