Hello. Thank you for standing by. My name is Regina. I will be your conference operator today. At this time, I would like to welcome everyone to the Donnelley Financial Solutions second quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, then one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the conference over to Michael Zhao, Head of Investor Relations. Please go ahead. Thank you. Good morning, everyone, and thank you for joining Donnelley Financial Solutions second quarter 2023 results conference call. This morning, we released our earnings report, including a supplemental trending schedule of historical results, copies of which can be found in the Investors section of our website at dfinsolutions.com. During this call, we'll refer to forward-looking statements that are subject to risks and uncertainties. For a complete discussion, please refer to the cautionary statements included in our earnings release and further detailed in our most recent annual report on Form 10-K, quarterly report on Form 10-Q, and other filings with the SEC. Further, we will discuss certain non-GAAP financial information, such as adjusted EBITDA, adjusted EBITDA margin, and organic net sales. We believe the presentation of non-GAAP financial information provides you with useful supplementary information concerning the company's ongoing operations and is an appropriate way for you to evaluate the company's performance. They are, however, provided for informational purposes only. Please refer to the earnings release and related tables for GAAP financial information and reconciliations of GAAP to non-GAAP financial information. I am joined this morning by Dan Leib, Dave Gardella, Craig Clay, Eric Johnson, Floyd Strimling, and Kami Turner. I will now turn the call over to Dan. Thank you, Mike, and good morning, everyone. We are pleased with the company's performance during the second quarter, especially in light of continuing softness in capital markets transactional activity. In this difficult operating environment, we delivered strong second quarter results, including net sales of $242.1 million and adjusted EBITDA of $74.3 million, resulting in adjusted EBITDA margin of 30.7%. Our second quarter performance once again demonstrated the resiliency of our operating model and the sustainability of our performance in a challenging external environment as our business mix continues to transform. A key driver of our second quarter results is the improving performance of our software solutions portfolio. Software solutions net sales growth accelerated in the second quarter to nearly 8% on an organic basis versus the second quarter of 2022, an increase from the growth trends over the last few quarters. Importantly, the second quarter software solutions net sales growth was broad-based, with all three of our key software offerings, ArcSuite, Venue, and ActiveDisclosure, delivering stronger year-over-year growth compared to recent trend. Software solutions made up approximately 31% of total second quarter net sales, up approximately 440 basis points from last year's second quarter sales mix. As a reminder, the second quarter, largely due to the annual meeting and proxy season, historically represents our largest quarter overall, yet represents a seasonal low for software as a percentage of revenue. On a trailing four-quarter basis, software sales of $284 million represented approximately 36% of total sales, an increase of approximately 590 basis points from the second quarter of 2022 trailing four-quarter period. Our second quarter Adjusted EBITDA margin of 30.7% is nearly in line with last year's very strong second quarter Adjusted EBITDA margin, despite a nearly $30 million or approximately 40% year-over-year reduction in capital markets transactional sales. During the second quarter, we made progress in achieving additional efficiencies, driven by process improvement and simplification. In addition to adjusting our cost structure to the current demand environment, these actions, in combination with our previous cost reduction efforts, permanently reduce fixed costs, simplify our operations, and further improve DFIN's resiliency across various market conditions. While these cost savings have benefited our margins, we continue to accelerate investments in certain areas of our business to drive recurring revenue growth and modernize existing business processes. Through the first half of the year, we are on track with our stated objective of investing approximately $25 million in 2023 related to these growth and modernization initiatives, of which approximately two-thirds of the total investment is incremental on a year-over-year basis. As demonstrated by our performance, the consistent progress against our plan is delivering outstanding results. Specifically, our ability to thrive in difficult market conditions is a testament to the strength of our recurring offerings. These offerings, which span across both software solutions and tech-enabled services, serve the ongoing compliance needs of corporations and investment companies and provide our business with stability during times of market volatility. As we invest to accelerate our recurring growth while protecting market share in our traditional transactional offerings, we will continue to shift DFIN toward a higher mix of recurring revenue, and more importantly benefit from the financial profile associated with such a recurring revenue model. Dave will cover our results in more detail. First, I'd like to provide an update on the Tailored Shareholder Reports regulation, which has a compliance date of July 2024. We are making great progress in our technology development and go-to-market plans, both of which are aimed to help our mutual fund and exchange-traded funds clients operationalize the reporting to comply with this regulation. From a software product development perspective, our solution leverages the leading functionalities within ArcSuite, while introducing additional features to create a modern and seamless client experience. Coupled with DFIN's service expertise and production capabilities, we have created a true end-to-end compliance solution that eliminates handoffs for our clients. We are especially encouraged by the positive market feedback and the pipeline of recurring revenue. Given our end-to-end solution, we expect sales will be recognized across multiple DFIN offerings, including software solutions, tech-enabled services, and print and distribution. We are currently working to quantify the estimated impact and look forward to providing additional details later this year or early next year. Before I share a few closing remarks, I would like to turn the call over to Dave to provide more details on our second quarter results and our outlook for the third quarter. Dave? Thanks, Dan, and good morning, everyone. As Dan noted, we delivered strong second quarter results in a challenging environment. Despite an ongoing reduction in year-over-year transactional volumes, our focused efforts to execute our strategy have enabled DFIN to become fundamentally more profitable compared to historical quarters with similar level of overall sales and transactional activity. By continuing to focus on operational efficiencies while also growing our high-margin software solution sales, second quarter Adjusted EBITDA margin was approximately 900 basis points and 680 basis points higher than the second quarters of 2019 and 2020, respectively, despite overall sales and transactional sales in this year's second quarter being slightly below the levels we reported in those quarters. Our second quarter results provide additional positive proof points that our strategy is working, allowing us to deliver strong financial results across various market conditions, while also continuing to invest and evolving to a more recurring sales mix, aggressively managing our cost structure and being disciplined stewards of capital. On a consolidated basis, total net sales for the second quarter of 2023 were $242.1 million, a decrease of $24.1 million, or 9.1% on a reported basis, and 8.3% on an organic basis from the second quarter of 2022. Given the very weak transactional environment, more than all of the year-over-year net sales decline occurred in capital markets transactional sales, which was down $28.1 million or 38.2% versus the second quarter of 2022. The decline in Capital Markets transactional sales was partially offset by growth in software solutions net sales, which increased $4.1 million or 5.7% on a reported basis and 7.9% on an organic basis compared to the second quarter of last year and reached a new quarterly net sales record. Second quarter adjusted non-GAAP gross margin was 59.5%, approximately 150 basis points higher than the second quarter of 2022, primarily driven by the impact of cost savings initiatives and price increases, partially offset by lower Capital Markets, transactional activity, and incremental investments to accelerate our transformation. Adjusted non-GAAP SG&A expense in the quarter was $69.7 million, a $2.1 million decrease from the second quarter of 2022. As a percentage of net sales, adjusted non-GAAP SG&A was 28.8%, an increase of approximately 180 basis points from the second quarter of 2022. The decrease in adjusted non-GAAP SG&A was primarily driven by the impact of cost control initiatives and a reduction in selling expense as a result of lower transactional sales volume, partially offset by incremental transformation-related investments and higher bad debt expense. Our second quarter Adjusted EBITDA was $74.3 million, a decrease of $8.3 million, or 10% from the second quarter of 2022. Second quarter Adjusted EBITDA margin was 30.7%, a decrease of approximately 30 basis points from the second quarter of 2022, primarily driven by lower capital markets transactional sales and incremental investments in support of our strategic transformation, partially offset by the impact of cost control initiatives, price uplifts, and lower selling expense as a result of lower sales volumes. Turning now to our second quarter segment results. Net sales in our Capital Markets Software Solutions segment were $47.7 million, an increase of 6.5% on an organic basis from the second quarter of last year. Sales of our recurring compliance product, ActiveDisclosure, grew approximately 9% in the second quarter, with the recurring subscription component increasing approximately 6%-... both of which reflect the expected improvement as we finalize the transition from AD3, which was decommissioned in the second quarter. The decommissioning represents an important milestone and enables us to focus on driving stronger growth for the new AD platform, while also realizing increased pricing, higher retention rates, and greater efficiency. We expect improved growth rates moving forward. Net sales of our virtual data room offering Venue were up $2.2 million or 8.7% compared to the second quarter of last year, driven by increased room activity and higher pricing. Despite a continued steep decline in global M&A deal completions, the level of underlying activity remains strong, driven by the strong demand for high-quality assets and the abundance of capital. We are encouraged by the resiliency of the underlying activity taking place on our virtual data room platform. Adjusted EBITDA margin for the segment was 27.7%, an increase of approximately 870 basis points from the second quarter of 2022, primarily due to increased sales, price uplifts from new AD and Venue, and efficiencies within our service organization, partially offset by an increased overhead cost and incremental investments in technology development. Net sales in our Capital Markets – Compliance and Communications Management segment were $122.9 million, a decrease of 17.8% on an organic basis from the second quarter of 2022, driven by lower capital markets transactional activity, partially offset by a modest year-over-year growth in compliance revenue. While the demand for equity transactions remained very weak on a year-over-year basis, we experienced a modest sequential increase in transactional revenue from the 1st quarter of this year, consistent with the slight pickup in deal activity to start the 2nd quarter, which we indicated on last quarter's earnings call. Similar to what we experienced to start the quarter, the transactional market for the 2nd quarter also ended on a positive note, with four priced IPOs taking place toward the end of June, representing the most active streak of IPO pricing so far this year. That said, the overall IPO activity still remains substantially lower than last year's 2nd quarter. The M&A market remained very weak, with the number of completed M&A transactions down sequentially from the 1st quarter of 2023 and down approximately 40% versus last year's 2nd quarter. While the outlook for capital markets transactional environment is uncertain, DFIN remains very well positioned to capture a significant share of future demand for transaction-related products and services when market activity picks up. Additionally, the uptick in IPO activity in June and the transactional activity we've seen to start the third quarter creates positive momentum entering the second half of the year. The decline in capital markets transaction sales was partially offset by our capital markets compliance offering, which grew approximately 1% from the second quarter of 2022, driven primarily by higher proxy volumes, part of which is associated with the new pay versus performance disclosure and increased pricing. Our second quarter compliance sales growth was against the backdrop of a very strong performance in the second quarter of 2022, during which Capital Markets compliance sales increased by approximately 31% versus the second quarter of 2021. As discussed previously, we faced a couple of headwinds in the quarter, including the timing shift of certain compliance volumes from the second quarter into the first quarter, as well as the recent trend of increased SPAC liquidations, which creates a headwind on the number of public companies and the associated demand for compliance services. We were able to more than offset the combined impact of those headwinds by the increase in proxy activity and higher pricing. Adjusted EBITDA margin for the segment was 36.5%, a decrease of approximately 470 basis points from the second quarter of 2022. The decrease in Adjusted EBITDA margin was primarily due to the lower transactional sales and higher bad debt expense, partially offset by cost control initiatives, lower selling expenses as a result of lower sales volume and price increases. Net sales in our Investment Companies Software Solutions segment were $28 million, an increase of 10.7% on an organic basis versus the second quarter of 2022, primarily driven by growth in subscriptions as a result of the continued strong adoption of ArcSuite within investment companies. We are encouraged by the performance of ArcSuite in the second quarter and remain optimistic about the opportunities created by regulations such as Tailored Shareholder Reports to drive future recurring revenue growth. Adjusted EBITDA margin for the segment was 38.2%, an increase of approximately 420 basis points from the second quarter of 2022. The increase in Adjusted EBITDA margin was primarily due to operating leverage on the increase in sales and efficiencies within our service organization, partially offset by higher product development and technology investments in support of growth opportunities. Net sales in our Investment Companies – Compliance and Communications Management segment were $43.5 million, a decrease of 2.3% on an organic basis from the second quarter of 2022, primarily driven by the exit of low-margin print work, partially offset by price increases on the remaining work. Adjusted EBITDA margin for the segment was 39.3%, approximately 660 basis points higher than the second quarter of 2022. The increase in Adjusted EBITDA margin was primarily due to a favorable sales mix, the impact of cost reduction initiatives, including continued synergies from our print platform consolidation and price increases, partially offset by higher overhead costs. non-GAAP unallocated corporate expenses were $11.6 million in the quarter, an increase of $0.4 million from the second quarter of 2022, primarily driven by an increase in expenses aimed at accelerating our transformation, partially offset by the impact of cost control initiatives. Free cash flow in the quarter was + $7 million, a decrease of $23.9 million as compared to the second quarter of 2022. The year-over-year decline in free cash flow was driven by a decline in Adjusted EBITDA, higher restructuring and interest payments, partially offset by lower capital expenditures and lower cash tax payments. We ended the quarter with $219.8 million of total debt and $200.4 million of non-GAAP net debt, including $95.5 million drawn on our revolver. From a liquidity perspective, we had access to the remaining $203.5 million of our revolver, as well as $19.4 million of cash on hand. As of June 30, 2023, our non-GAAP net leverage ratio was 1.0 times. As a reminder, our cash flow is historically seasonal. We are a user of cash in the first quarter, close to breakeven in the second quarter, and generate more than 100% of our free cash flow in the second half of the year. As our sales mix continues to evolve to proportionately more subscription-based sales, we expect this seasonality to continue to become less significant. Regarding capital deployment, we repurchased approximately 43,000 shares of our common stock during the second quarter for $1.9 million at an average price of $43.59 per share. As of June 30, 2023, we had $121.1 million remaining on our $150 million stock repurchase authorization. Given the ongoing high interest rate environment and our floating-rate debt, we continue to assign a higher priority to debt management in the second quarter, which resulted in lower share repurchases. Going forward, we will continue to take a balanced approach toward capital deployment. We continue to view organic investments to drive our transformation, share repurchases, and net debt reduction, each as key components of our capital deployment strategy and will remain disciplined in this area. As it relates to our outlook for the third quarter of 2023, while we expect the overall macroeconomic environment to remain challenging, we are encouraged by the recent modest pickup in transactional activity. We expect consolidated third quarter net sales in the range of $170 million to $190 million and Adjusted EBITDA margin in the low to mid-20% range. Compared to the third quarter of last year, the midpoint of our revenue guidance, $180 million, implies a year-over-year net sales decline of approximately 5%, primarily as a result of lower transactional activity, though less of a year-over-year decline than we experienced in the first two quarters of the year. From an Adjusted EBITDA margin perspective, our guidance of low to mid-20% contemplates the lower level of transactional sales, as well as incremental investments toward technology development and improving our operating efficiencies, similar to the level of incremental investments made in the first and second quarters. We expect our third quarter Adjusted EBITDA margin to be once again much stronger than historical quarters of like-size, total, and transactional sales. With that, I'll now pass it back to Dan. Thanks, Dave. Our performance in the second quarter offers a further proof point that our strategy and execution continue to make DFIN more durable and structurally resilient than in the past. As we progress on our transformation journey, we will continue to invest in opportunities to drive profitable, recurring revenue growth, while also continuing to aggressively manage our cost structure and being disciplined stewards of capital. We are excited by the opportunities created by regulatory changes on the horizon, including Tailored Shareholder Reports, Financial Data Transparency Act, and ESG, and the benefits they will bring starting in 2024. In the meantime, we're focused on creating best-in-class regulatory and compliance solutions to help our clients comply with regulations. Finally, as we head into the second half of the year, we are encouraged by the improved trend in capital markets transactional activity. Before we open it up for Q&A, I'd like to thank the DFIN employees around the world who've been working tirelessly to ensure our clients continue to receive the highest quality solutions. Now, with that, operator, we're ready for questions. At this time, if you'd like to ask a question, simply press star followed by one on your telephone keypad. Our first question will come from the line of Charles Strauzer with CJS Securities. Please go ahead. Hi, good morning. Morning, Charlie. I was hoping, hey, I was hoping, you could maybe delve a little bit more into the cost reduction efforts you've, you've been taking on. Really, you know, what's going on there to drive the margins and, you know, what, you know, portion of that is permanent versus temporary? Looking at the guidance for Q3, you know, could we see potential upside there, you know, from, you know, continued efforts there on the, on the cost front? Yeah, Charlie, it's Dave. I'll, I'll take that one. I think, you know, certainly, and we've commented quarter in, quarter out regarding cost reductions. I, I would say the actions that we've taken are certainly permanent, and they, they really range across, you know, right, right across the company. I think, in fact, when you look at the gross cost reductions, they're actually higher than, what's reflected in our margin performance. We've noted in the past that we've redirected a portion of, of the savings to, really increase investment in other areas. You know, predominantly, that's product development and IT, both of which are in support of our strategy to drive the software sales growth, as well as to increase the proportion amount of our recurring revenue. You know, we're continuing to invest in those areas to create long-term value. You know, I think on the permanence comment, you can see that in our historical margin trends. We, we have a slide in our investor deck. It, it shows, you know, the historical transactional revenue and, and the company's consolidated margin. You know, you look at the, the trailing fourth quarter, transactional revenue is right around $200 million. That's substantially below the historical average, yet our EBITDA margin has improved by about 1,000 basis points from you know, call it the mid-teens to the mid-20%, despite the, the challenging environment. You know, going forward, this will continue to be a focus for us, certainly driving efficiencies, but also importantly, continuing to invest in the strategy. Dan, I, I don't know if you wanted to add to that? Yeah. Thanks, Dave, and, and thanks for the question, Charlie. Yeah, a couple of things just to maybe amplify on permanence. As Dave said, the majority of these are permanent. The reason being is that these are really, most of them are changes driven by the change in the way we do business. You know, there's a lot of externally facing improvements that have been made in terms of external products and the way we serve clients. We've also spent over the past several years, and more work ahead of us, on transforming the inner workings of the company and how we do work. That's also led to new metrics being put in place, new ways of monitoring, et cetera. That's also what's driven efficiency within the company. As Dave said, these are net numbers. We continue to invest both in new product development, as Dave mentioned, and then also in enhancing the employee value proposition. We've done a lot just to improve, you know, what we offer to the associates around the world who are making the strong results happen. You know, a lot more ahead of us, but, you know, happy with what we've accomplished thus far. Great, thanks. Just a quick follow-up. You know, when you look at the strength, strength in software sales this quarter, you know, maybe a little bit more color behind, you know, what drove that and, you know, the sustainability of that into the back half of the year? Yeah, sure. You know, it was, it was broad-based, as we mentioned, and so, you know, maybe a little bit of a different story in each one. You know, we had signaled... I'll start with ActiveDisclosure. We had signaled that as we work towards the decommission of, of AD3, which occurred in June, that we expected to see in the back half an uplift in sales growth. You know, we saw it, excuse me, probably a quarter earlier than expected, you know, feel good about the momentum that we have with that product. We have seen pivot to Venue, we've seen really strong performance, and, and we can go back and look at, it just hasn't had the volatility that our transactions offering has had, despite the fact that its main use case is M&A. Obviously, there's a lot more, or broader use case for Venue in terms of deals that may be private to private, utilizing the deal room, et cetera. We've seen really strong performance, and that's been quarter in, quarter out. Feel, feel good about that heading into the back half as well. On ArcSuite, which had strong growth in the quarter, you know, we had said the same, that last quarter was a bit of a depressed level, and we thought there would be higher sales growth going forward. Again, feel, feel good there, and that's obviously independent of what we're looking at in 2024 for ArcSuite relative to the TSR initiative. Great. That's helpful. Thank you. Thank you. Your next question comes from the line of Kyle Peterson with Needham. Please go ahead. Great. Thanks. Good morning, guys. You know, just wanted to, you know, touch a little bit on the guide and, you know, some of the assumptions behind the... Capital Markets expectations for the coming quarter. It sounds like you guys were kind of optimistic about how 2Q ended and about how, you know, the quarter started so far. I guess, you know, what assumptions have you guys made, put in the guide for in Capital Markets activity, you know, for the balance of the quarter? Is it kind of status quo in terms of what you guys have been seeing in the past, you know, six weeks or so, or any, you know, improvement or deterioration in the assumptions would be helpful. Yeah, thanks, thanks for the question, Kyle. I think when you look at, you know, the guidance and what we're implying, right? I'll talk sequentially at first, right? The transactional activity in capital markets, you know, I think went up $4 million-$5 million between Q1 and Q2. We're probably looking, you know, somewhere in that same range sequentially, you know, in the $50 million range, again, at, at, at the midpoint of our guidance. I think, you know, on a year-over-year basis, then, you know, that decline, you know, it's still a decline, but certainly muted relative to the year-over-year declines that we saw in Q1 and Q2. I, I, I'd say, you know, cautiously optimistic, right? The, the activity in June, you know, had a modest pickup, and that obviously flowed through to the, the sequential impact in the quarter. You know, essentially, expecting that, that sequential uptick again, here in Q3. That makes sense and it's helpful. You know, just wanted to do a quick follow-up, you know, on compliance. You know, seems like that, you know, came in, you know, really strong this quarter. I know you guys called out, you know, both, you know, pricing and kind of pay versus performance disclosures. You know, wanted to see if you guys could quantify or at least rank order, you know, on some of that upside and strength this quarter. Maybe how much came from pricing versus, you know, whether it be, you know, kind of a cross-sell, upsell or share gains here with some of these newer initiatives. Yeah. You know, it's tough to break out specifically. I would say, you know, the, the, the vast majority of that compliance work, and again, I, I assume you're talking about the Compliance and Communications Management segment and the, the compliance revenue there. What was proxy related, and again, some of it driven by, you know, pay versus performance, et cetera. Some of it driven by pricing. The, the two kind of blend together, right? As we're performing, you know, additional work on behalf of the clients, you know, aggregate pricing goes up. It's a bit too difficult to, to strip those two apart. But generally, proxy was the overall driver there. Okay. Yeah, Dave, if you wanted me to, to add to that. Hi, it's Craig. From a compliance perspective, you know, Q2 of 2022, big growth, so over 27% and, you know, pleased with, with the 1% of this quarter. You mentioned, you know, the areas, it's a result of a number of things, which is increased client count, new disclosure for pay versus performance, which is the tagging of that exec comp table, and then certainly price increases. We're in a, you know, inflationary environment. We were able to, to work with our clients and certainly capture the value that, that we're adding. You know, so in CNCM compliance or our software, you know, we're really leveraging that entire team of deal experts here at DFIN. I think it shows, the results show our extensive, network and relationships throughout this ecosystem is, is really benefiting our reoccurring business, whether it's our CNCM or certainly our software. All right, makes sense. That's helpful. Thanks, guys. Thank you. Your next question comes from the line of Peter Heckmann with D.A. Davidson. Please go ahead. Morning, everyone. Thanks for taking the questions. I wanted to talk a little bit about price again. I, you know, hearing that come up, that, that's, that's always a good sign. I guess, to the extent that I missed it, but I don't think you've quantified, you know, can you talk a little bit about for the year, about how much you think prices is, is moving up and, and kind of how you allocate that between, you know, regular price increases on software, but then, kind of wage inflation-related increases on tech-enabled services? Yeah, Pete, I'll, I'll, I'll start. Sure, go ahead. I think, I think when you look at from a, you know, from a pricing perspective, it'll, it'll certainly vary from product to product. You know, Craig mentioned, the inflationary environment and some of it, you know, just the efforts to, you know, keep up or at least mitigate some of that. You know, I think when you look at ActiveDisclosure and the transitions from AD3 to new ActiveDisclosure, we talked about, you know, the price levels going up mid to high teens on average. A lot of that work has taken place over the last couple of years, and so, you know, incrementally, you know, we're still ramping up on that product, right? That's probably, you know, call it, you know, mid-single digit in 2023. You know, I think when you look in aggregate, it's probably, you know, much closer to low single digit on a consolidated basis for the company. Again, that'll vary from product to product. You know, to my earlier point, when Kyle asked the question, you know, some of this is, you know, yes, we're getting paid more, but, you know, we're also doing more work, so it's, it's sometimes difficult to split that apart. I think low single digit is a decent indicator. Okay. Yeah. That's helpful. And then. Good. No, go ahead. Yeah, maybe just this is correct, to maybe just frame it a little bit. It's capturing the value. So it's capturing the value we're delivering, whether that's in service realm, whether it's our built-in price increases on renewals. It's the client recognizing the value of a better product, so signing up for multi-year contracts. You know, we have prices and opportunity with our competitors, where we're able to deliver and bring them to us, where our clients are able to buy what they want, not being forced to pay for modules that they're not using. So it's really an opportunity for us to capture the value that we're creating and meet the market where it's at. Okay, that's helpful. That's helpful. You know, we, we, we've been talking about Tailored Shareholder Reports for a while, and it, it does seem like an interesting opportunity. I, I know you're still trying to, you know, really get a, a tight quantification of the potential benefit, but, you know, could, could you give us some sort of broad range? You know, just thinking about the multiple share classes and some of the additional, you know, work that might have to occur on a printing basis. I mean, is it reasonable to think, you know, something in the range of, of, like, a $20 million annual benefit? You know, is it... I'm just trying to figure out, is it, you know, is it, is it $10 million or $100 million in terms of the potential benefit? Yeah, sure. I'll, I'll start, and, and certainly Eric or Dave, if you wanna weigh in. I, I think you're thinking about it the right way in terms of it'll be a broad-based benefit across software, tech-enabled services, and print and distribution. You know, we certainly will put numbers out there. As we mentioned, it'll be later this year or beginning of next year. You know, this is an opportunity that is, you know, or a requirement that goes from fund level to share class level, so you can think about, you know, a multiplier effect there. You know, that said, you know, we're, you know, as Craig just mentioned, we, we, we look to charge based on the value that we add. We also know this is, you know, compliance-related work, and our clients have fee pressure, et cetera, on the fund and ETF side. You know, we're selling both into third-party administrators, and we're also selling into asset managers. You know, we'll look forward to providing, you know, additional guidance on the impact starting, and it'll be a half year in 2024, but starting, you know, either end of this year, beginning of next year. Okay. Okay, all right. Yeah, Pete, sorry, just. Just on Dan's comment, you know, the rule becomes effective midyear next year. You know, depending on the cycles that each of the funds report on, you know, the likely year one impact will be less than half a year. Probably, you know, 25% as you get kinda the clients overlapping their reporting timing, and then the full impact starting in 2025. All right. Thank you. Again, to ask a question, press star one on your telephone keypad. Your next question will come from the line of Raj Sharma with B. Riley. Please go ahead. Yeah, thank you for taking the questions. Congratulations on a good quarter. Can I jump into the guidance? I'm trying to understand the outlook for Q3 better. Given the results in Q2, it seems Q3 outlook seems conservative. Can you comment on transactions versus compliance, you know, the sequential performance you're expecting in Q3, you know, up, down, or transactions versus compliance? Can we talk about- Y- the software part, tech-enabled part, or print part? Yeah, Raj, it's Dave. I, I think, you know, and I'll, I'll reiterate what I said on, on transactional, right? If you think about transactional sequentially, you look at Q1 and Q2, we went from $41 million to just over $45 million, and are estimating, you know, at the midpoint of our guidance, around $50 million, specific to transactional. I think when you look at compliance, that analysis is more challenging just given the seasonality of the business. You know, certainly, 1Q and 2Q are, are much higher than, than the compliance sales that we drive in Q3 and Q4. When you look at it on a year-over-year basis, you know, compliance was, was, you know, call it flat to slightly up in the first half of the year. Again, at the midpoint of our guidance, you know, you know, broadly flat or, you know, in that range for, you know, for the balance of the year, and that's inclusive of, of Q3. That, and that's on the capital market side. I think when you look at, you know, the, the, investment company's compliance work, again, you know, some seasonality a little bit less. You know, generally, we've seen some of that compliance shift from traditional to software, in the, in the first couple quarters. Compliance revenue in investment companies was down, I, I, I think $3.5 million over the first half of the year. Again, you know, expecting something in that range again in the, in the back half of the year. Got it. Thank you. On the, on the Q2 results for, can you talk about the actual level of the, the transactional makeup? How much was M&A and IPOs? Yeah, I can kick off, and then, Craig Clay, if you wanna jump in with some additional detail here. You know, when we look at, as we said, starting to see a little bit of you know, better IPO activity, as we exited the quarter in June and, you know, the broad market still looks, you know, pretty reasonable in July as well. M&A remained very, very difficult. You know, we commented that M&A was down 40% on a year-over-year basis. You know, most of the benefit we saw was within IPO. Craig, anything to add there? Yeah, I think to, to reiterate, you know, we have an M&A market that, that certainly has been significantly challenged, to, to say the least. When you look at the deals that are, you know, from CapIQ, whether it's $1 billion, whether it's $500 million, you have to go back before, you know, 2016 to find a market that, that even comes close. In the quarter, it doesn't even beat the, the COVID 2020 year. Certainly an M&A market that was challenged. For the deals that are announced, we've been doing pretty well and holding our share there, just many fewer. From an IPO perspective, it's a market that's rebuilding. It is not fully open yet. The recovery is not gonna be a straight line, but there are reasons to be upbeat, as we've talked about. We talked about the, the, the quarter. We see a, a little bit of, of movement publicly, in July, but a lot of it is still under the waterline. The pipeline for companies, to go public, who publicly filed, deals over $100 million, now stands at 25. We have, our historic share of that, which is strong, and that does not include the companies who filed confidentially. That really gets at, what our clients are telling us, which is that the, the barriers to resurgence in the IPO market appear to be lifting. You can pick your, your metric, whether it's the Fed, whether it's the Nasdaq. What we're gonna see is likely this backlog starting to clear in 2023 and then moving into 2024. Certainly it's better to talk about the excitement, but it won't be a, a straight line as, as we accelerate. Great. Thank you for that. Then just lastly, I know in the, in the recent past, you've talked about software sales. You've kind of guided to the next few years-- over the next few years, doubling, doubling of software sales. Is that, is that a target we're still sticking to? What year are we talking about that you can, you can double software sales by the 2025 or fiscal 2026, or? Yeah. Let me start on that, Dave, and then if you wanna grab it. I think if you look at the historical, you know, and just when, when we spun out, we were about $135 million of software revenue. You can, you know, look, look at a doubling there, over, you know, several years. Obviously, given the product line, there's, you know, uneven or not a linear progression. In 2021, I think we're up about 35% in software sales or something in that range. As we look forward, the guidance that we've given, and, you know, Venue, as I've mentioned, sensitive to M&A, is that, you know, Venue will have slightly lower growth than the compliance offerings. We're starting to see the compliance offerings, you know, pick up some speed. Obviously, we've talked about the TSR regulation and some additional regulations that'll be helpful, with part of the benefit hitting in the software area and part of the benefit hitting in other areas of the company. Right. Getting to the $600 million in software revenues, you know, implies a pretty strong growth rate out to, is that 2025, 2026 time period? Yeah, Raj. That's all. Sorry, it was $500 million, and that's in 2026. Yeah, which is where you get to the 55%-60%, which is the, of the total or so. Got it. Okay, got it. Thank you. That's all for me. Thank you. I'll take it off line. Great. Thank you. I will now hand the call back over to Dan Leib for any closing remarks. Great. Thank you, Regina, and thank you everyone for joining us, and we look forward to speaking in the near future. Thank you. That will conclude today's conference. Thank you all for joining. You may now disconnect.