DFIN’s ActiveDisclosure (AD) achieved double-digit sales growth in the first quarter, marking another excellent quarter for our financial reporting software.
The continued success of AD is especially gratifying, because 2024 represented the first full year of DFIN’s operating only our upgraded and relaunched ActiveDisclosure, after sunsetting the previous solution. The robust growth shows that we are meeting — and exceeding — our clients’ needs.
Indeed, the first quarter marked our seventh consecutive quarter of net client growth. Our AD subscription revenue continues to grow as does our service revenue, up 36% in the quarter, driven by significant increases in our service package sales.
And the AD team is not slowing down. We've recently added presentations, offering a “single source of truth,” which helps reporting teams create accurate, comprehensive presentations for boards and investors. We’ve also improved the ability of clients to work in a hybrid environment, leveraging both our software and unmatched service and domain expertise.
Along with our other software solutions, AD’s success contributes to DFIN’s transformation into a software solutions company. On a trailing four-quarter basis, total software solutions net sales made up 42.8% of total net sales, an increase of approximately 500 basis points from the first quarter 2024 trailing four quarter period. Our profitability remained robust, underscoring the strength of our recurring revenue base and the permanent improvements we’ve made to our cost structure.
Looking ahead, we remain confident in our strategy and our ability to perform across market cycles. We are well positioned to achieve our long-term target of deriving approximately 60% of total net sales from software solutions by 2028.
These achievements and milestones are the result of our employees’ commitment to DFIN’s transformation. As always, I thank them for their hard work and our clients for placing their trust in us.
