The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst
: All right, terrific. I think you set the table for a bunch of the questions that I have lined up here. What are Broadridge's key priorities
for fiscal '25? And does very strong event-driven revenue in the December quarter allow you to more aggressively attack those
opportunities via investment?
Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst
: What do client budgets look like right now? Where strong equity markets in 2024 and strong capital markets activity and an expectation
for a rebound at M&A, does that help client budgets as it pertains to spending on your solutions?
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MARCH 03, 2025 / 8:25PM, BR.N - Broadridge Financial Solutions Inc at Raymond James Institutional Investors
Conference
Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst
: You mentioned the addressable market in your opening comments. And you guys have measured the entire market, the entire TAM
at $225 billion, of which $60 billion is currently vended. What are some of the key components of the unvended $165 billion? And
how is Broadridge attacking those opportunities?
Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst
: And then in terms of capturing more of the $60 billion TAM that is currently vended, what would you say is key to Broadridge winning
market share?
Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst
: How do you see the generational wealth transfer that's expected to happen or probably is already underway? How do you see that
impacting your business? And I imagine that it has implications on multiple components of your business.
Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst
: So my team recently published a research now where we highlighted the consistency of your results, certainly over the three-year
period, but also across fiscal years. How would you characterize the actions that your management team takes to deliver that
consistency?
Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst
: And you mentioned the EPS growth algorithm at Broadridge. A component of that historically has been margin expansion. And the
company saw 20 basis points of margin expansion. Last year, you're kind of guiding to flattish margins in fiscal '25. Has something
really changed there? Or is that just a unique aspect to the last couple of years?
Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst
: We've touched on distribution revenues a couple of times, and I've covered you guys for a long time, and it feels like the story has
always been, well, distribution is going to get deprioritized. Things are going to get sent out electronically. And that's going to be
less important going forward. And it seems like every single year, distribution revenues are about 30% of total company revenue.
Do you think we'll ever hit that inflection point where distribution becomes less important? Or because of postal fee increases and
other drivers, it's never going away?
Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst
: Got you. Switching to current events and macro. One idea that's been pushed by some folks, including the CEO of Robinhood recently
in an op-ed is the tokenization of assets, including equities. Should tokenization occur in a meaningful way, how do you think about
the opportunities or risks that presents to Broadridge?
Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst
: And then staying on the current events theme, clearly, there's an entirely new mindset at the SEC right now versus a few months
ago. And sometimes, when we get different regimes in there, they make different proposals that impact Broadridge or reports to.
Is there anything on the horizon that you see from this new SEC that has any implications for Broadridge?
Question: Patrick O'Shaughnessy - Raymond James & Associates, Inc. - Analyst
: All right. Terrific. Well, on that point, I think we're out of time here. So thank you very much, and there will be a breakout session
downstairs.
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