Donnelley Financial Solutions, Inc. (DFIN) reported its financial results for the three and nine months ended September 30, 2024, revealing mixed performance across various metrics. For the third quarter of 2024, net sales totaled $179.5 million, a slight decrease of $0.5 million (0.3%) from $180.0 million in Q3 2023. In contrast, for the nine-month period, net sales increased to $625.6 million, up $4.9 million (0.8%) from $620.7 million in the same period last year.

The revenue breakdown for Q3 2024 showed tech-enabled services generating $75.2 million, down 6.5% from the previous year, while software solutions rose by 12.3% to $82.2 million. Print and distribution services saw a significant decline, dropping 16.3% to $22.1 million. For the nine months, tech-enabled services decreased by 1.1%, while software solutions increased by 13.3%, reflecting a shift towards higher-margin offerings.

Despite the increase in overall sales for the nine-month period, income from operations for Q3 2024 fell to $18.2 million, a decrease of 38.9% from $29.8 million in Q3 2023, primarily due to higher selling expenses and incentive compensation. However, for the nine months, income from operations rose to $127.3 million, an increase of 27.0% from $100.2 million in the prior year, driven by improved software solutions sales and cost control measures.

Net earnings for Q3 2024 were $8.7 million, down 51.9% from $18.1 million in Q3 2023. Conversely, net earnings for the nine-month period increased to $86.1 million, up 20.3% from $71.6 million in the same timeframe last year. The earnings per share reflected this trend, with diluted earnings per share for Q3 2024 at $0.29, down from $0.60 in Q3 2023, while for the nine months, it rose to $2.86 from $2.36.

Strategically, DFIN recorded restructuring charges of $0.7 million in Q3 2024 related to employee terminations, with a total of $3.6 million for the nine months, a significant reduction from $7.9 million in the same period of 2023. The company also reported a net gain of $9.8 million from the sale of land during the nine-month period.

As of September 30, 2024, DFIN's total assets increased to $843.6 million from $806.9 million at the end of 2023, with cash and cash equivalents rising to $33.6 million. The company maintained a strong liquidity position, with net available liquidity of $332.6 million. DFIN continues to focus on enhancing its software solutions and tech-enabled services to adapt to market trends and client needs.

About Donnelley Financial Solutions, Inc.

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