DFIN’s third quarter 2022 financial results, released this morning, demonstrate that our continuing transformation into a software-centric company is going strong.
In a difficult market, with IPO and M&A activity down significantly, we achieved higher margins and made solid progress toward our goal of software accounting for 55% to 60% of DFIN’s total revenue by 2026.
Drilling down further, on a trailing four-quarter basis, software solutions sales reached $285 million, growing 14% from the third-quarter 2021 trailing four quarters. It represented 32% of total net sales, an increase of approximately 590 basis points from the third-quarter 2021 trailing four-quarter period.
A highlight was ActiveDisclosure, DFIN’s SEC filing and reporting software, which delivered year-over-year subscription-based revenue growth of 14%, a key metric that will help to accelerate our recurring revenue growth. Also, we will surpass $100 million Total Contract Value (TCV) in the fourth quarter, driven by higher pricing and longer-term contracts.
The continued growth in recurring compliance software is an important step in the transformation of our business mix and financial profile to become more predictable and resilient.
Thanks to DFIN’s employees, the best team in the business — they continue to deliver innovation and value every day. And thanks to our clients, who entrust DFIN with their most important financial information.