SSNC - Earnings call transcript Q3 2017 | SS&C Technologies Holdings, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the SS&C Technologies third quarter 2017 earnings conference call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to hand the floor over to our host, Justine Stone.

Justine Stone

everyone. Hi, you for thank earnings QX joining call. for and our us XXXX Welcome investor Technologies. for Justine relations I'm Stone, SS&C With me Officer; today GlobeOp; Executive Vice Officer; is and Patrick Bill Stone, Boulanger, President Financial and Chairman Pedonti, President our Chief Officer. of Operating Head Rahul Chief Executive Norm Kanwar, SS&C and Chief

forward-looking the and to these we Before a with remarks XXXX. our about statements today represent of as we of be need Safe our expectations for by differ on important most prospects, October These result recent the may statement. indicated outlook review on statements plans financial including our annual we factors, materially today constitute of Actual and statements XXXX. Private XX-K, get SEC Harbor started, forward-looking Please purposes Harbor provide accessed make file factor discussed under XX, future the on risk on from which is results provisions Act website. of we report section Securities the various those note also in various the can Form the of including expectations, that Reform Litigation only those Safe the forward-looking

these forward-looking obligation the company may it elect to do specifically disclaims While any so. statements, update to

During call section investor these now over I'll in today's today's the release, website measures. non-GAAP call, earnings the GAAP in non-GAAP we'll measures our of be relations included is to referring is at financial reconciliation turn comparable A to certain financial measures to of which Bill. www.ssctech.com. located

William Stone

earnings welcome third call. hello, And Thanks, everyone, quarter and our Justine. to

XX% $X.XX diluted $XXX.X to earnings per revenue share. This per quarter, grew adjusted million and SS&C grew adjusted to share X.X%

Citi, increased perpetual paid slipping the we've earnings closed per by to and a of debt ratio and of CommonWealth increases. to acquisition pretty XXXX, public revenue Services. X.XX. our Wells, in our a leverage to did off driver quarterly Advent we a QX, offering, While from down XX% last QX bought Conifer earnings our we number impacted million $X.XX we're our over we results. week, the were acquisitions acquisition big which license our Synergies July quarter, dividend was $XXX a deals of pleased And with past margin to increase. total Since Fund share, This

Our allow to value. strong our shareholder to create flow cash and low us CapEx use best cash

$XXX including the business fund and most a continuously $XXX,XXX of SS&C testament SS&C, administration to Kanwar's eight acquisition XX-year Rahul's evolving tenure been from evaluates to Rahul personnel in Over our fund to As grown has In myself. and promotion This administrators, is growing organization, Vice reporting our Norm a Executive he's September, at we CommonWealth. million to and our and integral management. Rahul's expertise President, directly announced recent, a and leadership. quarter promotion the Boulanger

deeply We Suisse, also cyber CV announced positions and Chief technology Bank of management understands the Deutsche Credit as Stanley, and of hire at Officer. Information security. has Reuters, recent Morgan CV Thomson the and our development Channagiri intricacies held

managing over responsible it turn that, assets of lines to across XXX a is technologists of over CV CIO, As team Norm. business With I'll all agile, will promoting and for solutions. cloud-first lead all modern and technology

Normand Boulanger

security said for Geneva. LM, an to power forward new been services critical customer cyber enhanced conference on recently client, released Sessions creation year's workflow Precision risk practices software, focus be the in layered Genesis, look hosted recognize our operational market. Vegas. next and attendees everything XXX deserving publicized with our Feedback Chicago. partners, data SS&C us at over in included the and risk-based welcomed new a scrutiny new across cybersecurity security breaches of common their provided do in positive. SS&C, management efficiency. month, Las Bill. included regulatory valuable Thanks, the Client and on had networking and security peer-to-peer one-on-one financial to Recent clients overlapping demonstrations information we training, Last and we X,XXX overwhelmingly and Deliver have conference We controls, we annual and ideas SS&C's held program and of trust standards, over solution, At has growth implementation. increased security Conference model, and for security our data-centric, We order sessions, employees led an trust. Advent and our exception highly attendees conference their meetings. to requirements, solution incorporates

around threats and work professionals data and security client by protect information proactively dedicated monitoring full-time vulnerabilities. the clock to cybersecurity Our addressing

of of Bill Since reviews hired external directors. qualified protocols. uniquely ensuring has our SS&C joined of security internal had and security CV newly vendors, mentioned, and capable very strong has he our is teams, detailed to SS&C, board CIO As ongoing security a he by program Channagiri firm-wide reviews our presented

billion measurement a A and to manager system. APX competitor. accounting manager asset manager win including securities. because Vision QX. Now, African for of fund A management South US reports and fixed hosted suite license version key our provider reporting their across homegrown to is billion managing A a asset Sylvan business tool a for Recon manager. PORTIA competitor for FI $X.X asset a a for Evare $XX fixed-income review renewing their it portfolio of impressed new was Geneva A chose replace $X An better and income their a GWP, portal. products, some performance historical Africa. displaced manager chose licensed $XX required the billion help of SS&C platform chose over I of by FI SS&C to data. customizable an like deals client tool out extension billion service would a extensive them Vison The with

partnership advisory credit Black for the for And is AUM division. Diamond. chose full-service our fund chose A for debt to focus. their Black A instance win. an specifically that chose Diamond the commercial Our Black due of was existing and This driver functionality. third billion $X $X Diamond solution big Geneva a bank last, hedge billion advisor client

alternatives Now, Rahul I'll to discuss turn over to it business. the

Rahul Kanwar

in September private grew September revenue a classes the allocators. strong for XX, compared XX, of XX% GlobeOp Norm. Thanks, equity, office We're for wide and XXXX. across structures, including seeing services credit, private ended hedge, range quarter asset and and demand XXXX assets, asset to products our SS&C real family

growth quarter, we investors and of across services. of suite the local market, provide During functionality endowments, allocator value asset to greater integration This completed asset important for the classes, GlobeOp. SS&C represents and our develop customers. with of comprising other wealth continued to We our applications funds state to FundHub sovereign funds, area and an

with customers for Wells the several and milestones also to respect Fargo We processes operational completed of acquisitions. Conifer

outsource SS&C's their investment like their now An firm administration for key expanded fund was A billion private existing Patrick. assets it go fund management administrator. SS&C to multibillion-dollar to real administration I'd with chose equity fund office their $X impressed real estate over deals Now, will Texas-based chose family for asset turn group private GlobeOp. fund administration selected large manager An to real expanded and group. A fund SS&C. property as with over administration. and client Chicago-based fund A I estate services their QX. SS&C administration to relationship equity

Patrick Pedonti

revenue GAAP reported over GAAP revenue operating for and QX an We XXXX. million We million the $XX.X income EPS adjusted $XX.X revenue Services, net quarter. $X.XX. $XXX.X Conifer acquired basis, for adjustment million, The $XX.X was excludes On acquisition. XX.X% was was X.X%, results increased Revenue [ph] million, XXXX. is and from revenue, the up contributed is GAAP our QX strong revenue. Advent Adjusted the million Thanks, and and X.X% or a Rahul. $XX.X had up of income EPS Fund acquisitions Wells in increased XX%. deferred Salentica,

a million a driven was the flow adjusted $XX.X position as $XXX.X equivalents payments $X was use costs, reduction Citi for for to pretax income effective Adjusted of XX.X% or the Adjusting of XX, year only and quarter, impact $X.X $X.X of quarter fund interest facility term $XX.X was admin prior constant X.X%. in million this businesses, The increase revenue income of a as balance $XXX.X $X.X an XXXX. was acquisitions $X.X $XXX.X million expect by flow, cost quarter. we strength the income we acquisition margins other $XX.X quarter. net the of to compensation, quarter items the million that in And and We completed the of excludes months X.X% Canadian the operating and gross of the margin million to includes QX lost non-cash XX.X% in costs due the year, The and million $XXX.X accounts Adjusted million to and or in stock-based debt receivable were rate first year cash our a admin software-enabled items amortization revenue acquisition. financing on in improvements of of GAAP was tax September in $X.XXX GAAP the revenue operating XX.X% mostly September costs. in million, and of nine at for XX%. of The result in we tax third of include expense offset million provision acquisition-related in revenue were and improved favorable increase $X.X and ended of or $X.XXX the of of the cash average non-recurring $XX.X quarter lower and an assets, XXXX. net non-cash and loan revenue, organic core acquired months FX by million XX% over services was nine Net Adjusted to million extraordinary the over $X.XX. was and Fund $XXX.X the of on tax of the rate cash by tangible impact of and Foreign-exchange recorded for million XX.X% X.X% sheet had OID. implemented adjusted On adjusted the XXXX issuance in basis $XX.X XX.X% of the margins amortized driven we for million our net tax XX%. million, items Advent as million. sheet was synergies income dollar. that million cash $X.X XXXX. higher balance euro and DSO, a notes for adjusting a flow of rate had of currency range XX.X% or the the and higher Cash full from operating past was million earnings, a and million, EPS increase million of debt due EBITDA Operating interest million income for of cash Citi increased revenue. was XX.X% and was improved adjustment, consolidated margins growth deferred Adjusted $XX.X for the net be or

year the for had we for $XXX.X we've the and the of lower in levels down So, to to year-end, in interest We've prior-year taxes of – compared used of we acquisitions. the cash portion average million interest nine total to paid paid used that was million $XX.X including outstanding revolver XXXX. debt, remaining paid which million XXXX months $XX.X the $XX.X in to due $XXX.X We've XXXX, compared prior debt million million of the lower fund in at had rate.

to days million accounts the at million related payment to of and is software, activities. paid million. share expenditures IT capital facility $XX.X year-to-date, operating used the of quarter XX.X from mostly December $XX.X for settlement end expansion we've net in for withholding which was dividends proceeds infrastructure. XX.X and receivable million cash tax XXXX. and capitalized Option XX% of approximately we've provided And $X.X $XX.X And were cash days Our as of that DSO and compares the of was

the of As and $XXX.X of and XX, revenue we is covenant related of of million. $XXX X.XX On use on of LTM to saving includes which total acquisition. of times. million XXX approximately $X.X million income based in outlook range million the for shares to of September ratio $X.X debt was in cost acquired net diluted position $XXX range net billion, $XXX our range to the EBITDA, adjusted And fourth million leverage for the fourth quarter million was our consolidated the expectation compliance, to in quarter, Adjusted million XXX.X for million. our XXX.X current and the EBITDA

of capital For of revenues. and be the operating the earnings XX%. back of X.X% full from million expect X.X% be $XXX we to be range it And $XXX Bill. expect over in million to in the cash activities for I'll to to rates to turn the we range adjusted tax expenditures year, And to

William Stone

Thanks, Patrick.

were on Over to are XXXX pushed XX very opportunity actively finish a deals those We to have strong a managing note. QX great and we deals.

fund of hundred in the of with deals $XX closed few so in size $X same with the AUA QX, over Additionally, several billion over of pipeline. billion far, have administration we

We're can We XXXX. we are about QX are. about what optimistic finish excited excited about we're where we do and to

So, it turn with that, questions. over we'll for

Operator

you. Instructions]. [Operator Thank

Our for Deutsche with comes Sabadra of Ashish question line first today from Bank. the

Ashish Sabadra

Hi. getting revenue on fourth And, My you at The the pushed growth. growth was question when million. deals was slowed guidance quarter regarding it look it year $X guidance, the looks guidance lower implied by I in with line revenue guess, to was was But the related like was out. roughly earlier full what and down.

you've the more with solid we upside and So, the already numbers? the about, quarter quarter see deal to fourth fourth closure talked didn't the why pipeline in

William Stone

Yeah.

I think that's question. a really good

hit the that we to we track of sure doing think something those, make that don't we fourth to I recognize and to improve is but, XX do pushed obviously, have to a trying we're of to what record that deals need we like if quarter, had XXX% would think we it's I on.

that per of hit to. estimated what think flow cash And the to do share our beginning what and million. $XX quarter. nine we the year the we'd operations Hey, year think XXX, the from which first I better, up do up we of $X.XX, through we've this earnings guided XX% like executed XXX number about to is I our but think at is at months I were to

are are executing. And working so, our They people hard.

very getting sense. big well it. We on in didn't real make have stick we're need we But to very, us that focused issues a people of improve out I are think that to some know And on. pretty execution to a QX lot number

Ashish Sabadra

expansion year-over-year good on the on cost and think also expansion really we expansion. progress a the sequential color, we should some take about basis. also start both acquisitions both And from on basis, a XXXX but as How fourth quarter, Thanks out the opportunities We margin good for margin into Bill. more in to XXXX? saw some going margin

William Stone

getting of we're start like have quarters and performing, execution, act have If better performance expansion, these will because don’t we pushouts right, organization not. because a we to can't we faster and we're oriented margin kind we're

basis some worked everybody real that on. think think is understand margin in this probably if SS&C we these we around. the turn do of looking that for think I size I basis margin expansion And got points that have not see have something – So, and We've acquisitions QX. get we XXX whatever the or the that we're to can kind you'll depending can I things execution we got quarter, in incremental we've at imagine but that some progress hard people some XXX would to of We on XX points of incrementally. made

Ashish Sabadra

Bill. Thanks,

Operator

the you. Thank next Morgan Stanley. line of And question from our Brian comes of Essex

Brian Essex

of terms taking slip for you in deals is thank closed? common on denominator terms after the pushed, question. broad-based pushed of any business how type quick the And can there a real afternoon. question there good up Ashish's the a Bill, is in follow a of XX sense if this that Maybe that Hi, I going of or more And happen you're issue? deals you certain or of to deals. many

William Stone

we of focus. QX challenges in deals but slip we a we to basis, but done have have our communicate had in of now subsidiary very the QX. XX communicate in we the been large Far daily had tremendous on on to people we a weekly a in where good and communication primarily – majority the few, And the we slipped also really And East It's closed the used Far Primatics deals, we East. vast where number some

Brian Essex

maybe Right. And the and the for Paul, far to acquisitions? particularly give the and you you've us with an up, that the acquired stuff update could on are progressing? then follow Citi, those there, and How now Wells, margins the latest along Conifer, progress

Patrick Pedonti

are acquisition's approximately Citi The quarter. XX% Patrick. the margins in is This operating XX%,

So, right XX% most last are near quarter. we and in And Wells, now mid-XXs Conifer significant recent did, acquisitions the improvement from last from the year.

Brian Essex

for slip. much. very That's Apologize the helpful. Thank you

William Stone

Patrick, pretty They It's right. saints. Paul, all are all Peter, similar.

Operator

Thank our Capital Markets. next from Dan you. the with of Perlin comes line question And RBC

Daniel Perlin

Thanks. the same Bill – thing. I'm going to on harp

about like XX call the up doesn't are to conference East. going to talking a weekly obviously, deals the you're moving bringing they daily versus So, in Far typical you table. And, sound the hammer to

So, that? it the really was doing I'm what that in execution? problem you rectify that the many. What actually are surprised to was

William Stone

people have. get we ground the have prospects of evaluate that we that have experience, Dan, quality to Again, that on the can the

educated satisfied deals these jugular And our of and going lot of needs on are have I pretty and maybe, Rahul, know a that Rahul, And for you, some the we you opportunity. of that have And could have times have deals. of need And ink then on and top to things the that. to lot involved people Norm, And Norm real that these these the a be both a well. it's through right gone getting people real are number that comment. paper. intimately been and are executing as times, with maybe We the on

Normand Boulanger

had are closure. Bill is the thing Asia East. first out, in a lesser higher notorious the opportunities broad-based. degree we and were a actually for pretty But of concentration And to in to as that trying those The organizations bring slips Middle pointed the

job bringing world, there sales obviously, a we're not closure. bringing done positive great the of But, the part and we they've to quarter, this that is, new organization to the opportunities built actually them in have relatively So, a of table.

some overseas problem hurricane. generally. accounts thing tends is on be And it summer we is – the that the other the few into a a ran The issues to which for months,

kind positive of board, really we we need numbers, look intended. but across the very these board, us. a the where I the so to short didn't really just strong perfect ended we didn't had to and is up against across business. things went when The we across diverse pipeline at a lot of whole We So, of hit be execute

are real. the what team that sales we So, around directly that have senior deals those happening management make to sure we sales sure is and the reaching deals. clients trying make test to We're management thinks the out to

sales to about it We're to be sell. execution going the that's always they on. going focused products the in invest is the what in think We going we're we're right and to that So, also doing invest we're things. and organization

So, those But things, obviously, fruit that bear against we come went us were quarter, long-term, to other but are disappointing. that things for it going pretty was us. enough – to not close, able this

Rahul Kanwar

thing the to sense also Norm a prospects think that more with would and I of about what And scheduling dates I is our add little that precise we're said conveying same becoming signature and we're And managing is urgency some their daily that about with just deal pretty how will a make status interacting processes and communication sure that the difference. and internally of prospects. we're

Daniel Perlin

the reconcile that pending, that $X like, kind these license said sounded were $XX fourth if deals me billion And deals. it wasn't that's the billion the of another that's in maybe XX it Help Bill, deals. something $XX the perpetual were XX to if clear or was quarter. these already signed to Okay. else. sounded billion tied been And you like It

William Stone

no. No, fund closed. billion deals. is $XX And The administration already that's

Daniel Perlin

Right.

William Stone

or the deals. almost XX then term perpetual all are And license

their that's the the excited that separation And two. we've market forward. in closed ability say we're reputations would so, that those our to I and lever in that going between And about

Daniel Perlin

makes more to Okay. me. That sense

for So, I have you. another question did

lot discipline and – of fairly you In terms quickly of here. with a de-levered

You're said, turns. X.X, as X.X to, you down

to like. when what lever You're, sheet wondering But balance the looks opportunities. to the you being find market obviously, accustomed able up I'm

typically it don't are willing case. year. And the for? asset wondering there You kind points I'm that's looking many look qualities the haven't there out this particularly or aggressive at why like that sellers to just been characteristics price of that you're the there's that Is at you are meet

William Stone

to and I do. capital about both, we're it's allocation going are going right? in we're how interested think what we but it, everybody I know is about our disciplined

to numbers change. the and LOI change disappointed, not then And an acquisition get we're and you LOIs you and then sake. an acquisitions we get have And right? We don't for going get all Sometimes, then do maybe the LOI, numbers right?

We targets. have

We have dates.

sure run the told you to close been bought, And have through grab don't, what way into that We discipline way that not that having process this through of you've the up have you a all scrutiny. to the having it. to And bag acquisition to in understandings. have walk if all of stands everything funding make play the you you and

Daniel Perlin

to I'm last okay. out. going One jump Right, and one

closed, But, a Sorry. obviously had your organic big roughly is would where been? Patrick, these have deals growth disappointment. X.X%

backwards. You're moving

like. some we all kind give have think get I to here of that But Thanks. us it. what as silver lining looked could

Patrick Pedonti

it think $X – million on $XXX million right? I year. Well, it's compared last have to extra, would been So,

have So, been it another or percent would so.

been So, near it X% have organic. might

Daniel Perlin

closed deal, X%? you have it So, the That's at did saying? you you're what close

Patrick Pedonti

we guidance, the talking you're midpoint I at of were For think our about? X.XX%, if right? QX,

Daniel Perlin

all would these growth occurred, been? what you and had have actually Yeah. organic Yeah, say slip. the I would Were have not that to deals rate –

Patrick Pedonti

around would suspect. Somewhere I X%,

Daniel Perlin

Okay, thank you.

Patrick Pedonti

of our around think business revenue, fast. I if that recurring that's fact, think, administration if for a lot point, maybe alternatives you grew you weakness fund at look license, refresh But important is it's little in bit perpetual on pretty financials the the And, XX.X% growing of look quarter. services. the our another a at QX, is I in

of good we're and our business there getting seeing we're and XX% out performance that of out expansion strong business. growth really margin we're revenue of So, seeing

William Stone

And done XX.X% XX% actually, we've up it and why organically. acquisitions. that's was And

Patrick Pedonti

Yeah, right. organically,

William Stone

got we've go on. And, Dan, to

Daniel Perlin

I know. I'm sorry.

Operator

you. from of Shutler with next And Thank Blair. comes our the line Christopher question William

Unidentified Analyst

for [indiscernible] actually is This Chris. afternoon. Good guys. Hi,

asset. touched SS&C administrator. as going you Obviously, a saw competition bank-owned strikes I'm acquired any it, wasn't of times but forward. you you And, the can additional the where those concerns competitor one doing questions, second, about you we PE-backed in for how have set recently that the a fund acquiring. previous may administrators the a just think of closely first discuss while I the if curious in considered have extent one To bank-owned the

William Stone

right, in very, Wells came all As quality you we can hard. of we capabilities from all also very are and the And we The well focus GlobeOp, that look do we continue we people participate we're at and we everything going know, think management at of If that through that we picky. got criteria. We're them on Chris aspect our can Patellaro and doesn't Conifer improve guys like at can Fullerton to and McDonald Citi a us it leads Joe Sleightholme our of that Jack teams industry at people we with expand, meets Kundro those and we it that Fargo leaders. think Ken not and jointly Citi to meet leads to up. and businesses that and Mike every crowd not the at that it acquire. And criteria, bid we

value do the I we So, on getting am all whatever think I players of that's space. one, for to which from that, going shareholders, focus differentiates acquisition we're might and other know for us the our you what in

Unidentified Analyst

thank right, just then, you. a All administrative items. few And

XX us what's deals quarter, had possible, all assume baked that organic amount in fourth the in into fourth Just pushed same does of assumption to quarter. that for guidance if growth what could guidance? Thank revenue curious, let closed embedded And or you got is if terms Patrick, you. growth organic the XX that of the know

Patrick Pedonti

approximately for organic at is growth X.X% guidance, QX. the QX midpoint The

Unidentified Analyst

that does – all assume And Okay. XX

Normand Boulanger

some those sales targets not quarter XX and around of blend other working. is We're Norm. deals of a are the a assuming for This XXX% closure XX. we're this The

Unidentified Analyst

much. great. you Okay, Thank very

Operator

And Davidson. comes our DA the with you. next Thank question line from Peter of Heckmann

Peter Heckmann

shaking Rahul, administration Bill of Good somewhat six can suboptimal here five grow everyone. what of there players a we're where you think large that's standpoint. perhaps with the the roadmap Do to kind really get space, of continue competition think consolidation XX in or and do to and and or could a the industry out point is pricing? terms and to afternoon, there some you SS&C in out X, three that the maybe is holdouts top going business? you better this get really to in or the Or then some stay hold clear two of business continue top a where in are from leaders

Rahul Kanwar

First, right? closed as funds in pretty terms we're of two deals certainly We both the more and think the to think right? strong organic that there's is doing it, end the of us it. is growth of And with market year our it XX% administration, having matures, relates We organic in technology. plenty the there demand do total XX% out in quarter, to of biggest terms total well. we that So, I growth after plus quarters for as and there's opportunities keep acquisition of as opportunity of there terms this for the some way more So, growth. do quarter, which

And we're so, I prospects. think going to bigger keep getting

William Stone

that technology of already. administrators Peter, or in or of biggest purview an would not be four three is our the thing, that the other probably And acquisition

Peter Heckmann

right. Right, right. That's

still lever And percentage Axys the an What has financial So, future be would is that of those And I follow-up we be advisor business, with but platforms? side what are potentially in platforms retaining? would of they away if Advent's the seeing My to? migrating are regard retaining when migration primarily from – going? important platform? a so, what other on negotiations. them, Diamond, like might they they SS&C where assume are

Normand Boulanger

Advent higher the have the all, whole rates than actually retention across are of business been. they First

lots Black really upgrade, when a lot choosing are consider seeing them migrations off to we're So, Axys. Diamond. of people not But of

Some GWP. choosing are

products. for every to decides the to client having going But keep not of part, any look. we're we're course, that the not a most Of significant Advent in activation

William Stone

clients that been X,XXX us than decided had acquiring objectively new very to stable X,XXX, clients is Quite we that client And Axys strategy and in the employed X,XXX that products secondly, have X,XXX. Advent prior to July services XXXX. different out to we're of bit base and been group bringing a to a have long-term

Peter Heckmann

it. That's Got helpful.

Operator

Thank comes you. question Kramm UBS. Alex And our next line from of the with

Alex Kramm

evening. good Hey,

kind revenue for really the saying blaming of you in bit. Just little to and I all the coming are a and side I execution. appreciate miss back was quarter it here guess the yourself that

So, that's great.

well. has just forecasting MiFID wondering all right the generally, do in demands environment sales regulatory or didn't good the anything I'm be better a these customer stuff? seeing as on the just soon. base Just got more it Is like changed coming harder at you've now we're in to II it and with you is thinking, this job that really demands given

William Stone

million say revenue. but we're not were change about responsible the I hurricane, concerned Yeah. that probably get models, here. too And that right? yet. for better us trying weather to $X We're right? would we have in or climate was we We're taking not So, cost more don't them one, that

ink it an professional as when services, or said contract many something to you earlier contracts. had think when month see we we And really and it's go that ready about, you people to disciplined Rahul in have because also when do, then I is do do eye softness our we delayed teams get – you two. on. as a deals of about So, have have pipeline some that as the gets in But keep you

two now weeks, that's out have and you of that at day four some would've expensive. a or and the thousands or three people sitting on now, So, sidelines for they're been dollars billing three

capabilities trying that the So, correctly tighten force own to their they We're up as that management on well we're procedures. get commissions their in processes have the and deals. sales comped trying as sure that coaches player management structure, in the for think I are those make they to the we

in beer. year-over-year make of in in of all too cry we we those growth, earnings across focusing general, share, XX% trying to the much manage don't we're things better. lines the we sure business when our have per So, But, earnings and

Alex Kramm

very you update business. alternatives about now give right in we Thank quickly, AUA, just And stand as – an the where you. can just

Rahul Kanwar

end AUA the At $X.XX of was QX, trillion.

Alex Kramm

Thank good. Very you.

Operator

And comes next question of our from line Kumar Evercore. with Ranya the

Ranya Kumar

if Good evening. client out alternatives end? quarter. businesses from the fund the revenue Secondly, their Can in retention you can administration call growth organic you and your overall discuss quarter at

Normand Boulanger

of – And first question. alternatives QX. in of I miss part second the the second missed it, grew sorry, the part XX.X% I'm part business the but I your organically of

William Stone

rate? retention Our

Ranya Kumar

our Yeah, rate. client retention

Normand Boulanger

measure LTM. the them and rates, Our retention

XX% third the we last months, end quarter. XX For at the of are the

Ranya Kumar

earnings acquisition discuss Could contribution Fund your for Services? from and you. your you thank expectations CommonWealth just Great, of recent revenue

William Stone

enough. Not

Normand Boulanger

to the I which about it's fourth – two-and-a-half million about in CommonWealth contribute going quarter, is about think $X is months.

Ranya Kumar

acquisition you're types lastly, about And there. of speak seeking and can pipeline acquisition you what Great. your if

William Stone

We Yeah. than have that's number get months deals regulators. both We're I get a two And internationally. little would year, deal more to and at through the of lawyers, if US or two a but months. the another the I in looking before the of get think end to left we'll

farm on pretty when something the sale. we're a stuff PE So, I but of had. got in aggressive want. ever And has it's it's for that, bet is more there's money we lot money. wouldn't awash World

firm. are of be disparate services together. and set And hard with you you'll products up to prices a that are have So, or disciplined end gel to

Ranya Kumar

you. Thank

Operator

Thank comes you. Jefferies. question with And DiFucci our the John next from of line

AJ Ljubich

the back, provide could that end Hey, the now potentially is on for to take out you the on we're there This comments XXXX are that year? if that for any XXXX. of catalysts a topline there we entering nearing be step might AJ you Ljubich growth see guys. just able if any outlook accelerate preliminary and I'm can Can John. wondering

William Stone

is that, stock levels the the the XX,XXX market on S&P -- XXX. think Dow XX,XXX or similar and at what, I

products, technology, create need new they there's they strength good they strength who confident because make financial If into And you more business by to the all over in well how they of regulators SS&C's and much demands you world. all new geographies, you new get quickly decisions, markets, with. new have going continued and work people funds, new have they the you launch in with go you're know

the there creation wealth in think to we a going momentum think and is that that it world's we benefit just SS&C So, well XXXX. that go is will beyond

AJ Ljubich

Great, division on a be division. intermediate thanks. real a update of to expect get meaningful assets and new. just there in relatively And you was any that term? it's I contributor if your the of I But too the have we sort could had do wondering quick to traction revenue initial you sort know

Rahul Kanwar

pleased pipeline. million while a that, of of for going that. think Malde And certainly of We a few it's management up division. which ones already. in my property we handful won one could and build the and big hundred an won for with that had we've the business wins billion has real was medium-size the firm, few that got the of years, – us. announced done a be really to estate ones I feel really the Bhagesh opportunity dollar real remarks that Bhagesh take a bunch in Look, terms I and few $X but a over where to We're first work contribution, we in revenue good we big manages a pretty think others about

AJ Ljubich

much. Great. Thanks very

Operator

Morgan. And question the JP you. comes Sterling of Thank our line Auty from with next

Jackson Ader

This on that how and those. just Sterling those Norm, think some early tonight. mentioned Middle were you the question. I for recent East Far guys. East curious sales Jackson teams and any We're is maybe impacts quick changes. had that from Hey, experienced and Ader changes recent what One

Normand Boulanger

of and and We've of geographies the the some some of in won. sales terms the management management of got realignment some some of the sales who

added actually sales of we've strongest had And a of the lot guys. these part a long probably in the world sales we that Some pipeline had in time. of

interested them it's – to also we I group when with that now there's opportunity that to get to So, are going experience we whether hard some judge but close. people to signing, an challenges and then in want have find but close think they

them, investing things specialize and think the has to But we're need to there make comfortable revenue kind that products our part to we more and to closed. in help people responsibility get right? we So, world the what That's I the build that world help going of have things sure in where needs. keep management of step part that's sales and we're opportunity that started that the in of we contributing organization that

Rahul Kanwar

just Kallis add is pretty one that, right, and to that. of executives senior example [ph] And also I have Walter sales – some to we think

one. another is Nottage Justin

part more So, momentum, the deals more in of to starting that world. we're see

Jackson Ader

Thanks, it. got Okay, guys.

Operator

Thank you. And our next question comes from the line of Chris O'Neill. Donat with Sandler

Christopher Donat

for Thanks my afternoon. taking Good questions.

to on back the Just transactions. go delayed

the effect product banks who a don't factor are in Anyway, feet not that's for I mention the losses that's if some software of in use it's because heard the that years, I thought I to going of is this have credit EVOLV to an assume related I I'm was that timing fire. that involved. these So, couple to just estimate was the not. but small, their all and the or imagine something was accounting you the deals Primatics current so standard just wondering if And of wondering

William Stone

think I it's have we pipeline we in think I strong although a it and people have pretty is, Primatics some focused. think talented and I

I comments. group have reports some think – maybe that up Rahul you and to

Rahul Kanwar

Yeah.

ways deals still I And three correct starting got a we've think you're some four a to management in we've or signed them. the to We've see we the date, this but pipe go Bill implementation like in before the of in process. already lot said, And that just got build of [indiscernible]. particular, are more into We're little trying bring a team. confidence discipline up. to

Christopher Donat

role is a officer. something your a you appointment to if more curious same. the Okay. information structural Just trying on new And of issue, there? but the Does just signal change of fill anything just it just or understand new to or needed in it's chief then, separate management that

Normand Boulanger

Bob that was Schwartz running who position [indiscernible].

William Stone

is was prior Bob he that, previously, officer. was long-term at And GlobeOp. chief information Yeah. And to Brothers. at he our Lehman

think made as us. somebody for we're really equal Bob CV the impact of get so, trying an we caliber And has to already and

Christopher Donat

you. thank Okay,

Operator

O'Shaughnessy Thank Patrick the you. Raymond from James. line of comes our And next with question

Patrick O'Shaughnessy

afternoon. good Hey,

between So, growth divergence no clearly, your organic fund total. notable and admin your there's

I overall. the are that tough business. losses obviously, or anything your that think there as the comps or that there pressure is in of organic or professional XX.X% half dimension quarter growth it imply admin X.X% for customer is pricing Are fund negative of services would, versus really seeing revenue? just That you for other said, seeing pockets of for the other half third

William Stone

there's Well, be path in products to other we able out licensing as I as order in attrition fast some business. technology. the new think people can to give our bringing to We're

comp tough with going a QX. have to and think QX talented has last of some had year pretty had are I pretty the success. They QX to comp capability tough lot force. in they this a in are good sales they Advent and But year of a group, a

could let grown. capital I have think for organizations because services government the companies, more last hasn't ten financial have the over way inside worldwide, challenge license grow services primarily companies they software expenditures most financial businesses the with years that

financial economy overall, leads SS&C is them the we And seeing a what build and that risk-taking bit some little semblance a aggressive what their need have will so, if to see that there think services organizations support ambition. new spirits where – and a they follow then services in we're products in of people on run to for US chance like economy particular, them and is to in start And order new I in in through is the i animal world think some to let retrenchment. I

Patrick O'Shaughnessy

Great, thank you.

Operator

the turn Thank will closing call that I question-and-answer over concludes Stone remarks. now today. session you. And for for our back Bill to

William Stone

being well for mean is doesn't forever, better everybody than earnings-per-share going but share XX% XX% understand And earnings that enough, do going to pretty call. on per the growth do we're not to that we're I for Again, thanks time. that long right? growth a do

interest year. appreciate to to and So, talk the we look we Thanks. end the at your forward you of

Operator

participation gentlemen, conference. thank you disconnect. have and today's does you a day. Ladies for now the may This program good your and Everyone, in conclude

SS&C Technologies (SSNC) 25 Oct 172017 Q3 Earnings call transcript