In DFIN’s just-released 2Q23 earnings results, software solutions achieved record quarterly net sales — increasing 5.7%, or 7.9% on an organic basis, compared to the year-ago quarter. It is notable that performance actually accelerated, with growth in both our recurring compliance and transactional software offerings exceeding the trend of the last several quarters.
Software solutions made up approximately 31% of total second quarter net sales, up approximately 4.4% year over year.
What’s driving this success? ActiveDisclosure and Arc Suite delivered net sales growth of approximately 9% in aggregate. This reflects the completion of our transitioning customers from the legacy AD3 platform to ActiveDisclosure, a milestone that allows DFIN to provide more resources to growing the new platform.
Net sales of our virtual dataroom offering, Venue, increased 9% year over year. Despite a continued steep decline in global M&A deal completions, the level of underlying activity remained strong, driven by the strong demand for high-quality assets and the abundance of capital.
Taken together, the performance validates DFIN’s strategic focus on innovating industry-leading software solutions that accelerate regulatory reporting, deal making, data protection and management of risk & compliance.
For the future, we are encouraged by the level of capital markets transactional activity so far in the third quarter, a continuation of the improvement we saw in June. In addition, we are excited by the opportunities created by regulatory changes on the horizon, including Financial Data Transparency Act and ESG, and the benefits they will bring starting in 2024.
As always, thanks to our employees, whose creativity and commitment are key to our success. And thanks to our clients for placing their trust in DFIN.