SSNC - Earnings call transcript Q2 2019 | SS&C Technologies Holdings, Inc.

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Operator

Good afternoon. My name is Sheryl and I will be your conference operator today. At this time, I would like to welcome everyone to the SS&C Technologies Q2 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions] [Operator

may you your begin Stone, conference. Justine

Justine Stone

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

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

only forward-looking represent XXXX. today, These July statements XX, of as expectations our

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

referring section Investor in today's call, earnings the we GAAP website measures. today's of included is in financial certain reconciliation our these located Relations A release, During non-GAAP will at to be measures financial non-GAAP is comparable measures financial of to www.ssctech.com. which

call turn now the will to over Bill. I

Bill Stone

everyone. Thanks, thanks Justine and

diluted revenue in the million adjusted we and earned earnings are share. adjusted $X,XXX.X per for results quarter Our $X.XX in

the was lost made his out DST QX walk talk. through clients revenue EBITDA pocket at we to margin close. revenue acquisition include will about to EBITDA growth before prior you numerical from XXX was Patrick amounts exact the spoke and zero revenue, which DST in bringing million, Our consolidated XX.X%. Adjustments our organic FX, margin organic growth X.X%. of to adjusted adjusted consolidated

have can quarterly with deck our earnings our which website included We under also results. on release, found Relations be a slide Investor

update driven by several deck specific Top We line to quarterly. will slide businesses. performance was

and accounting quarter Our X% thriving. portfolio trillion Diamond, across a alternatives business real system strong X.X% class Geneva, has over double assets our now is had continues best X our RIA in Solutions, assets over digit license our and Black business post and to growth. in XXXX customers. Black Diamond grew organically

more see And and [indiscernible] at also cross We're the in house moving these aggressive from to DST an outsourcing to The opportunity seeing to more an us. solution a house technology we're come proactive starting upsell to with opportunities sales -- massive. in is clients sell culture. moving organization fruition. to and existing firms

years, operational us. past or of to XX outsourced two In of functions our clients the have some their all largest

We expect focus expense model. continue, this competencies M&A their core a trend We're Inorganically, and on managers as move effective towards capacity market including variable for our acquisitions. financial operating asset very record to opportunities. at X.XX, ample EBITDA, active. we is the leverage a keeping range consolidated ratio to high international markets, incorporate end of able With have wider from cost quality

I'll Rahul. now to turn it over

Rahul Kanwar

forefront. Thanks, development Bill. pipeline Innovation and future continued quarter with a performance across at business, remains the innovation, We had sales strong the integration. good

and system; visualization We which advanced for SightLine, data are smart our investing in sets. include investment gathering products business. cloud-based a central across large enrichment and Singularity, CORE, number These complex and our system of and operation services new data our on and allows

data processes. known which business management process and our complex intensive industries, is healthcare to delivered banking particularly solution enhancements to as services, financial relevant have the We AWD, insurance, which and

Highlights strong. win gain business, equity new mandates real continue to which and business our share. and and outsourcing private remains services market Our include assets

scale simplify suite our leverage, designed to operating operations gaining for is search firms their investment products services and As transform of momentum. and

and room during middle into to acquisition. office out differentiates in based including Intralinks SS&C front, for asset artificial selling and business data. in unique of fund platform intelligence is a M&A and marketplace, next and invest continued, deals solution us a top Eze deal Eze. in generation the product, managers, from to us that traditional seeing integrate offering. derive with and business. their North we're cloud is Their use more At Intralinks, the as Intralinks GlobeOp in the new Seven our Eclipse now objectives to combined of XX in alternatives Geneva We we back larger XXXX continue this capabilities, to our Eze additions newest which the insights quarter, the was one further progress America administration give

client key mention Chinese asset management for fund plus will Geneva portfolio as administrator their A billion asset billion XXX for XXXX. administration. admin services chose their some our upgraded I client longtime billion over XX on-premise Black A under Now, deals model. for $X system Diamond. and system QX and The assets manager manager their the software outsourced $XX hosted to years access upgraded to

streamline equity Kong on services chose the combination of Eze’s a digital in back fund world's hedge tool, Intralinks’ Funspace to including business services. DST front based management services. health and client chose their An composition administration more GlobeOp, And process existing chose design. largest An regulatory Asset administration operations. our SS&C solutions private DST services, to client investor AWD, solution fund for platform, [ph]. and fund firms existing statement reporting One GlobeOp Management SS&C existing back their investor from chose of took A and reporting Hong SS&C client

to it over turn run through I will the financials. Patrick to now

Patrick Pedonti

income quarter. second acquire we’re the revenue XXX.X the earnings share of net revenues Results of revenue per a GAAP Overall, GAAP quarter the standard was $X.XX. revenue you. we adjustment million were recognition of and DST, and million, Intralinks million new had Adjusted diluted implementing for excluding and deferred X,XXX the for for X,XXX.X acquisitions. Thank adjustments, strong

Adjusted income million. XXX.X of and XXX.X contributed The increased Intralinks XX.X% XX.X% increase operating diluted adjusted revenue EPS over increased an XX.X%; acquisitions Eze $X.XX, up and DST, was revenue was Adjusted XXXX. million. CACEIS, of

DST the of quarter reduction quarter. growth, terminated revenue in the pocket Organic XX Foreign businesses. of or DST the Advent a adjusting the unfavorable an for driven million. the in out and pre-acquisition exchange constant million had revenue, impacted revenue on the of of strength and by currency for X.X% X% clients impact reduction basis X.X and alternatives was and

XXX.X increase Adjusted million, quarter XXXX. operating income of XXX.X QX the or over was XX.X% for second an million

a in X.X rate quarter, the the expenses reached annual cost in second to from June margins as the quarter. had of and impact XX.X% second implemented the quarter. first XX.X% were exchange of sequentially million in run quarter XXXX. Foreign in margins million DST the improved on Operating positive synergies XX.X% operating XX, XXX

of X.X an combined non-cash and Adjusted financing the facility pre-tax Net the increase compared our adjusted recorded to the provision in XXXX. consolidated senior the million of be and X.XX% credit and XX.X for full expect tax average interest of quarter QX, or the We for amortized We second X.XX% to second the million rate our XXXX. XX% million XX% was a notes over cost XX.X% million OID. XX.X% of in EBITDA XXX.X XXX.X of income. quarter includes quarter was expense currently tax in GAAP year. the rate approximately GAAP for interest revenue, or The was quarter

and related adjusted million of million depreciation was to X.X market net mostly million million was adjustments adjustments reductions. million gains, related million $X.XX. of and issuance tax X.X related amortization revenue including XXX.X assets, of adjustments mark purchase to gain used staff XX.X The compensation, excludes of X.X of revenue of effective assets, non-operating net on severance stock-based net amortization, XX.X costs deferred The adjustments, from net adjusted XXX EPS and intangible of XX.X million XX%. million million was of non-cash income rate XXX.X of net for income of debt revenue Adjusted income of cost, accounting to adjusted a standard, investments, XX.X adoption to revaluation

and issued X.X% gross for shares compared fourth Operating cash X.X cash and XXX.X due or X.X ended was XXXX million June debt QX cash sheet shares net and acquisition of the June, mostly employee XXXX. our same the period balance million had million as in flow flow, XXX.X to approximately exercises. months billion. Diluted stock Intralinks of of option quarter over of and we XXX the for increase On of increased XXX% six approximately to or a equivalents cash the million, approximately debt ’XX, in

the that payment in so brings X,XXX for six to on of million interest million second last September period paid is million. quarter. period we highlights March, since total of not April interest unsecured acquisition make down the the did a year. Couple semi-annually We to at of and and paid DST paid June. in debt We've XXX compared same notes million XX.X net to the The the XXX.X note the unsecured XXXX cash date month year due ended

million We XX.X of year. taxes period to last paid XXX.X in million the compared cash same

software, quarter improvements. of million capital days DSO cash March, at accounts for in receivable Our XX.X IT XX.X compared for And to leasehold used XX.X XXXX. to and mostly we improved on expenditures the capitalized

X.X X.XX, our as Based XX. Our on of ratio X,XXX ratio LTM as and was debt total June June was the net consolidated X.XX EBITDA of used of compliance million, leverage million as of for covenant was our secured XXXX. average June

On quarter of outlook XXXX. for the third

range range the X.X% million rate a And net range income revenue X,XXX million of XXX.X is adjusted and of to revenue X,XXX we million the of in X,XXX third XXX.X adjusted of tax shares million. operating The XX% million the the million to of to XXX.X to capital the expenditures to for diluted income [ph] the of to for full continue expectation million for range expectation diluted Adjusted to to million. be million million the in expect full and to range and current Our XXX.X year. XXX.X of from the revenues. shares adjusted million. net of Cash X,XXX range that XXX.X activities quarter of in X,XXX in be million current million; in adjusted XXX.X million will will X,XXX X.X% year XXX.X adjusted the is in

final And I'll to Bill for over comments. turn back it

Bill Stone

Thanks, Patrick.

place to it slowed, continue work hard again. putting though has accelerate we our to in are we our We things even start to growth And the that for believe shareholders.

Eze’s network some year. for acquisitions three $XX by Wall XXXX down Our the fees of about will headwinds. million across this the impact rest Trading Street have and values encountered are

growth seen about XX also that slowing, by slow, have M&A slow with Intralinks and We revenue million. will

our expected trading Finally, from businesses revenue and we're expecting And is Obviously, financial down year be trade some core going has about so for million and slowed XX attrition at QX. the down which are core services, DST guidance the of end to in also our to million. slowed we're headwinds wins there. the has to in be some have have overall and $XX -- business

financial his President in we With as considerably with again at for President advisory excited on team and all will be Sean than Health our believe exclusive revenue, management, position maximizing new we're is clinical X.X of that, responsible Johns and billion Pharmacy a We're our team has forward. Palmer, our and tremendous about providing is expanding has solutions with the our who be will position Marc medical to the management this is claims extending XX% enabled in we SS&C stronger SS&C Health which Rob clients. that. businesses. year and at Health relationship for our focused enablement. since be our and President solutions been planned Hogan, for is XXXX opportunity our Kulis, going group And And Solutions SS&C’s Hopkins growing from market of outcomes improve to SS&C growth about grow. midpoint, last of and pharmacy going earnings with at new technology team Solutions last responsible announced that week, and up both health and charged

will open up it for questions. now I

Operator

Instructions] Brad question comes Credit first The of [Operator Zelnick from Suisse.

Brad Zelnick

down QX. you of outlook are specifically, guidance into talk and I relationships the current costs from the just for But million with remarks, that of a were prior you numbers full stickier DST out of to they maybe Where I changed guiding switching now Can us to wanted XX revision Bill, for from gave us your are through I this where downward heading was the appreciate specifically commentary in the you you kind bridging the expected to? what's to some business drill year. very your final customer? that leaving? more that thought the high Because endure your

Bill Stone

Well, a question, that’s good Brad.

off just an realize enormous million, think, a really the $X.X to talking were customers. I I but some tied to a accretion. acquiring able And like get So, you're talk right? in they have that to think had prior billion amount that some when money, them, going about up few business, expected. than it's sounds of about that attrition you you're we $XX And, of quicker DST in us

business the culture operating more and the stronger, three on money. advanced releases out in we're distribution upsell client. the made a and model sell and the earning the think And, technology releases business way on the impact changes workflow I made is cross sales the way to we’ve their our that's and on system, AWD, time, and huge and

whole us fixed in network things So And, financial it's Wall we I and digits, there's going putting right more in we've we of left now of have XXXX. group a sales lot think And things made in a it's the really just of Street and exactly in X, none changes from right. we're that to are we're across a of we Sleightholme that our talented than a of following on have growth or Bernie doing DST Palmer, there's still fees with to group or a whatsoever. senior there. it's things business Marc end we lots have that, great and probably put large I not couple the the with think wind we'll X think we people services, of Mike a guy. kind and like people have up have take those And like bringing we any really first think rebuilding managers, really O'Connor we're whether so our Sean's DST, happened optimistic great XX And And, rearming. expected. And in quarters of data that's mid-single a growing things. and Rob and that's new months adding own really a we business what's on

Brad Zelnick

to within up, And if in maybe a a you spots as how and maybe good just light and about just question But a happening follow the of structure, services, year, plans in look, making, financial hiring Any going the helpful? about bright context what there's that slowdown remainder expense light in do for done, on deliver these it's you're synergies think deals in able the you've thinking various you of clearly of things the you're think as mean, I investments be the there the or whether a in lot the updated portfolio. the into the broader pressures, of Patrick, business? of would characterize we that even core

Patrick Pedonti

we they know, not And revenue targets, Well, are they you as their to people when expense expenses either. our pretty hit understand, as their going targets, hit tightly. manage don't

paying still and $X So, flow. close to billion again, we've plans we're implemented free we're quickly. And, to going cash in debt off generate

to paid think edge. and We're I going continue. are still we've deals that going X,XXX the we're things, winning think in DST us give think, I products off since that those large will acquisition, going and and do continue million we're so to invest to still we to competitive

the I provided we've If talked and putting our guidance guides. showing quarter, think we costs got controls see that, the cost from reducing is previous at reduction, about we you the in plan obviously, we're the also that for but you'll place revenue look

Operator

of Your next Dan Perlin line question the from Capital comes RBC Markets. of

Dan Perlin

Thanks.

there -- the embedding for what and use on start quarter just in full trying me So understand definition growth the based that this you then let to are I'm make I first. for year? what's Patrick, third sure So you just organic

Patrick Pedonti

Sure.

of FX DST what we're million in to clients prior $XX QX lost approximately guidance notified now, is of and the and six about we what's the in and embedded million months the were that $XX acquisition. So seeing QX right for

Dan Perlin

half -- so the percent X in is us? are is going so the of it's be Okay, you okay, are back your the what range that suggesting to calculations year, plus below telling running the

Patrick Pedonti

X% in range the I midpoint, it'll it'll to run the the think at -- I midpoint. X.X% of mean, at probably

Dan Perlin

we a those but in guys I the as EPS surprised quarters, able down. is you've kind seems maybe to growth a when of so back of mid-single growth apart numbers, if fell acquisitions going think even things, back mid-single these to quarter, taken I this company, think ended of they In quick. the you're this So kind maybe hit on all this understand of it's get rates couple surprise lot of mean, actually talking thing always things and to Bill, when unravel organic about surprising, well. you can pretty calculus yourself why us, as prided about, these and up to getting of just digits, to certainly And a being talk you trying a digit to kind lot up I'm you be

Bill Stone

parts quarter thought good second Well, the earnings, second of kinds in But, But think that again, so, would, performed over different record And, somewhat the ratchet problem, maybe of don't systems, of that be high more not expected it's with would. that -- wouldn't or build very it or and you have to we It's have I level or quarters. actually execute we Dan, businesses. several problem. the But, good, they getting are ratchet things up frankly. change. right, two work and something don’t a was them. and think to revenues, probably have they have of had you a was we recognize don't quarter that we it's that's next had record I exactly team the of it's like, the of And people like and chances. we say at lots quarter two together still will say, to make a that the it's level, I of a really not to, these big think very, have I need they will got -- they're some work with lots you chances, headwinds, they in And organization to now fourth intensity things third that business

Operator

comes of Alex question from Kramm next Your UBS.

Alex Kramm

to Just again. clarify,

periods just the those I midpoint, full growth, X.X% just XQ think said at you or year, Patrick please. the comment X% to two a maybe give for organic that was separately,

Patrick Pedonti

at was half. is full right for year now, that about the midpoint, But second the Yeah, range the the X.X%.

third The is about X.X%. quarter

Alex Kramm

take so, I comparing second I the in growth correctly percent. numbers I'm organic said If to the Okay, you correctly, I actually maybe the great. presentation? mean, a and think again, second a changed growth And looking than little And about make think, organic the that adjustment I if I still was presentation. terms did I'm sure, then, here you to about I If come you why? you these just a quarter? thought of in or half this I get be Or just comparing then with quarter less better I want think growth going of to what for correctly, bit so. organic that last out, X.X% just numbers just just quarter not thought new than am

Patrick Pedonti

So the, as million we said, quarter. at in clients, lost was we're X.X%. if we XX.X include the off revenue pre-acquisition, DST That the

-- takes growth helps by the about organic that X.X%. that So

were -- calculation, definitely which at under So, an the at we organic over guidance. were X.X% growth, is we the improvement about old

Alex Kramm

Any expected? was why, better than sorry, then had particular anything reasons you or that

Rahul Kanwar

strong had pretty but quarter we in business. in a quarter a alternatives, had Advent our We particularly license good

the reasons. of so are those And some

Operator

Kumar from comes Evercore question of Rayna ISI. next Your

Rayna Kumar

from it's much The reduction And business? each related business if the that services business? healthcare the financial to in million revenue, or comes DST the how both, $XX is

Patrick Pedonti

the each exact two-thirds It is But probably healthcare. and out financial of suspect have the is I out I business. of don't rest it services business the would across the across of group.

Rahul Kanwar

of think Europe. services I the financial the is And majority from

Rayna Kumar

also of can for as you're specifically -- If that organic for idea third whole. us give you the us help a growth alternatives an then the revenue and quarter expecting XXXX

Rahul Kanwar

at X.X% the quarter in of midpoint about full year for about the the expecting We're X.X% third the and guidance.

Operator

next comes of from Your Citi. Schmidt question Andrew

Andrew Schmidt

core the on business. question quick A

other reduction You $XX what versus to a little market I That'd if related just mentioned to factors is, great. was down the talk factors, you extent, there. reduction, wondering drill bit the million could be and attrition about,

Patrick Pedonti

activity business. in I reduced different the few So, the as there's environment being, the trading slowdown a demand environment Bill going said think things across One pace in volumes on has a some with and general, impact that our on.

probably part of that's a it. So

particularly bit recognized XXX. is kind hedge in comp in we our an little as still then way on we a with of a a renewals bit one the issue of think, that's example. think the And a little of fund I issue. seeing our in I of are And businesses, overhang and have revenue part Advent, business software

Andrew Schmidt

if then back in you switching point you think the experienced? at FYXX? some then place initiatives what to in about, extent offset what tradition so that recently to continues you're wondering set And of can the DST, talk can you've attrition the do you And experiencing incremental to

Patrick Pedonti

Yeah, I think that, I think Sean started three weeks ago.

quarter going in sign load think yet. are having not sometimes flowing But, up them. we're towards this after end days we you months start then them, large cases, with after until revenue and just six So, too quarter. the sign of contracts, XX, impact these doesn't and But, quite to he'll fourth some XX you an much the him start

getting but get takes a it have installed of we're recording, that revenues them ready still and time still bunch start we them to So, processing. get to

an doesn't for we revenue, that get the on the have and and to get all automation. the And stuff think process of integrations we LM the installed. of the kinds second but have in get and that enthusiasm. I that of agency robotic revenue, to count we much people what, get time and Singularity the business quarter Precision opportunities need need learning to to all with have But, done we of with of contract next the takes to the machine and we've people kinds would kick some need AWD by new AI should new transfer throughout adopted year, we ink So and stuff intensity But, sales, up.

Bill Stone

that, you DST now what's are revenue averaging major revenue acquired are I pre-acquisition XX%. the that XX part platform. last XX, when But look at think at if since the note terminated retention, them, revenue clients it's about coming the look DST that over at impacting it's the retention you months, to last of off we've important

getting pretty retention by So good terminations since the acquired we've some at impacted we're pre-acquisition. we But of DST had them.

Andrew Schmidt

be Okay, clear, is XX acquisition, just the incremental to post completed? million attrition the was correct

Bill Stone

The terminations attrition not is ‘XX -- the million year A around lot and the pre-acquisition for replaced. of the slowdown post-acquisition for somewhere some is of somewhere around of $XX ‘XX. professional that's being services work

Rahul Kanwar

Yeah.

the think I comparing guidance, point we're is to guidance other kind of right.

included last the of for our projection So end it. had DST in guidance at the sales call in a

marketplace So is paper ink taking we're attrition we're a on and also, and anticipated. we're then that it's these clients. like started big more that It said, not and out we the is finding than getting as deals, process for all time in getting had going Bill competing lost revenue and that's

Bill Stone

million already that amount had acquisition terminated And prior absorbed. XXX I million, has which to our XX total was revenue of been been of the think

So there's still XX million to go.

So XX someone can get that is probably sticky. says might very off platform. it XXXX. that of XX off XX that how on That in because XX quickly million large run million, a all million But is not some depends the in completely organizations very million,

Operator

Jefferies. Your Thind next of question Surinder from comes

Surinder Thind

of questions couple here. quick A

acquisitions the level numbers there? of out beginning just a breakdown like there of that all that Is be if growth. organic we lots XXXX, at look give CORE? But in of DST? what forma different Eze and the then growth XXXX the what terms revisiting Intralinks of adjustments growth perhaps DST having are that and you closed -- obviously maybe the can you the number pro numbers, terms in and it simplify or does for of organic might way to of it like, the maybe Are at think individual provide there and the number in excluding able Just

Bill Stone

the XXXX acquisitions? You pro mean forma in for

Surinder Thind

If on Yes. looks didn't what XXXX basis. I apologize. like that. hear versus Correct? forma pro I a XXXX

Bill Stone

forma. prepared pro We those numbers haven't

Surinder Thind

that following -- the big At point are an how different think flattish up the structure. might maybe you growth question question rates what how or on ask earlier running slightly flexibility current around better have. currently a to this were here, to lean way about If Maybe to do of question much kind you is it about picture you positive. of the the cost maybe remain of terms in guys we

Bill Stone

EBITDA the margins. We were XX.X% in at second quarter

opportunities wherever growth it really impact how want much we much that or a impacts have generate on rate bit, us have cash doesn't little to even The opportunities. us we We much earnings. but how

it. $X is profitable, Our $X.XX. I And $X.XX. midpoint, we portfolios, the companies these guys earnings I last I'd but are think could and that all We'll company earnings were we'll had, don't that's we've it rolling didn't, time know so always we adjusted and But, We before, the general, have we very and I figured started And XX%. we'll will I with far know, eating just start pretty run. going We it this doesn't be we adjusted better in wish in figure this our I Perhaps your to think know. out year of you at time now. out. instead got but and rather $X.XX. forecast great well out mean, though. think, it I as as we figure the before dumb

Surinder Thind

with record track of Hard argue to execution. your

Operator

comes Securities. question next Hill Rosenblatt of from Your Ken

Ken Hill

agency given market largest one of have away of of outline the clients transfer set guys some out outsourcing still can that mentioned question I and is deals to there on was type shying now. The in for, I Waddell of right from through your kind size of else specific opportunity there, services, some numbers XX think that the kind outsourcing deal prepared And core just of & you what kind think, I of think I you you had the functionality, maybe the Reed if deal. remarks. one you So your

of left trying kind a what's there? still to just grasp on So get

Rahul Kanwar

Yeah.

I think, to outsourcing think one us. not that of to they're everything the things about is

the of still expensive. So, financial fund large of that workforces have executives the other increasingly the at become getting places huge internal a attention these institutions. and And senior companies lot

think So enormous got is Reed with we there's & company, them. we great nice great, opportunity, a Waddell still deal a an

very I to us. some but are be but digit name It's revenue, think year. be a million much it's number And, deal. can it people millions profitable for will our also be And less as a as forecasting, it's we good that a double a really products. that, not not great in $XX going will million, of $XX it than it's it's showcase still

probably million probably, hundred there's So if we're But the opportunity in about excited dollars XX, that. just worth top top of several you there's XX. outsourcing take the

Ken Hill

organic just that know now. of question which piece, rate right specifically, but organic for I the But maybe quarter, are talk don't growth included some just think you One revenue there, away some client the giving kind since you noted wondering about on good your noticed newer I believe growth headwinds also I trajectory signups Eze acquisitions, that some for of you the growth from last business. shied on in smaller if could

Rahul Kanwar

paid, great business that payments a volumes so really. get. done is big have drop off, a managing job business, up, they their expenses, do they've trading fixed the has But that The they Yeah. their on basically when get margin and they Eze flat EBITDA big, been a

have but, their we we as So, team XXth optimistic and Eclipse, just back and we come like signed client. the things generally, we're and Eze noted

so, we're cautiously And optimistic.

Operator

of from comes Heckmann Davidson. Your next Peter question

Peter Heckmann

moves the that to believe, it next a with, trading further, grow share I you out organically GlobeOp you and the side, bit system? an Geneva can opportunity there about around, a how take when Is is over some there leader Bloomberg sunset and think and then an when out going look think On little lower management break years? their that and order to is combine volumes really it opportunity business to really double there you business and is digits that of you more with be three the Eze

Rahul Kanwar

Yeah, going don't that system. we would kind of their the to have retire Bloomberg We is think opposite.

we would mid-single think, on But get is pretty pretty fact, million them I In have optimistic. three the a I $XXX compete do say growth can But, to think against next to over we salesforce think leader. good a we Shoreman good often. years, business a be I Jeff But digits. digit and double

what a have out to the of we we think Eze I opportunity can get great So maximize acquisition.

Patrick Pedonti

going add what are that, is op doing to just market. they successfully to Also

been And chunks in will we larger to think to the traditional we managers buy in asset past. that get So, have continue. than able more

Peter Heckmann

then $XX Patrick, the say hear in you asset I did gain there's a And sale? million quarter from one-time an

Patrick Pedonti

market No, gain. adjusted adjusted it We of non-cash earnings. to it's mark a out

Operator

of Your comes Schuttler Blair. next from question William Chris

Chris Schuttler

number include QX, You to organic QX, could QX, the the the under client prior the give comparable if acquisition, and full us X.X% year the in definition? DST you just that you for lost called out

Patrick Pedonti

so that, growth I think midpoint, about at the under we're organic is saying X.X%.

adjusting those, growth those those X.X%. the are to compared of about the impact terminated terminated clients Excluding organic clients accountable and with previously of

flat. excluded if it'd method old that, the either So you be or about

Chris Schuttler

And DST, the then Patrick, could you acquisitions, the et revenue the out contribution of cetera? from in Intralinks, break quarter each

Patrick Pedonti

remember is a DST Yes. a only month. half the only half It's right? month,

sorry, X.X XXX.X, -- are million. combined XXX.X Intralinks and Eze XXX.X XX.X, and million. XX.X is or is then XXX.X CACEIS and X.X. DST So,

Chris Schuttler

XX And the a you about you each were through Can were the bunch trading through different -- run the be of And volumes that headwinds? in guidance? relative items timeframe, businesses on then you the Eze different pretty you items mentioned sorry, so you talked could against was mentioned prior clear of it to the quickly. said run what for Can just all you that of said million? -- the just you

Patrick Pedonti

guidance. the Yes, and guidance year relative its all full they're to prior on impact

Chris Schuttler

X.X% mentioned the the Alts And quarter. earlier was you the in Okay. that business

Patrick Pedonti

The and quarter organic. X.X% business X.X% over the in think, it I alts X%, was, was

Rahul Kanwar

QX for alternatives. in guidance that's the X.X organic, The is

Chris Schuttler

For half? the back

Rahul Kanwar

Just QX.

Patrick Pedonti

X.X, full X.X year, QX,

Operator

comes O'Neill. next of Sandler Donat Your question Chris from

Chris Donat

the up And much added of taken tied times you end Bill, but we on last a XX% businesses, something sometimes can on incremental away remarks what's to follow or on margins how activity are the like going a to Intralinks, on data can when or these know that XX% be times get in prepared or M&A good. of just Eze and as expect question XX% sometimes then trying and good, back have or tail environment, aren't like sense to of I better I'm earnings and your variability wanted volumes in then sort trading Just that forward? volatility

Rahul Kanwar

don't given would of they’ve -- volatile. as think don't that that people often little we say at expense kind that that bit similar documents some It we access that I reasonable we how that access it should softness where soft. room be the think is have I they had many that But generating particularly both put more Well, look controls, put in has they how many we're data in revenue than track we But revenue. something and a getting are. it in it, or a little been to or with has they how do statistics

make the something they where, well think so, the we And and and market bring win need more accepted. I to deals to innovations are added sure that it's you that --

Chris Donat

Okay. will revenue just Is existing really Eze, future Eze And about from something new thinking is additive, or -- existing contribution something think that should to going revenue like, the potentially an that it's cannibalize product that product that then be from that? we is revenue? addition Eclipse that that to how Eze the about a is

Patrick Pedonti

lifespan Well, I GlobeOp. the want that really, what you to and because products might Eze when that’s once functions earlier, these outsource ought But then obviously, we Eclipse decide a additional to as transfers there does to longer it Geneva. Geneva, Eze going they have from is gives happen. an platform, sell you client with that's and said some cloud might you're various gives into to OMS it going get opportunities they to want Rahul you mean, they And into the client,

into sale of million take XXX,XXX for can Eze revenue. it and you Eclipse $X turn an So,

so know the places, is our be in that in more need those making people knitting of So, drive that to challenge order different able sure to we what things lots to do we're revenue.

Operator

The next question of from Deutsche comes Ashish Bank. Sabadra

Ashish Sabadra

just maybe mentioned that pipeline taking may So anticipated. longer you sales than originally follow be what the Rahul, a slightly quick you up,

get or with particular to are a these And there ahead you or deals out? not understand, or comfort the go or them? give Just around decline pushed decide color this that were for lot to are maybe the any And pushed just better just that the two front? out can wanted last any are these deals reasons just was to it, us any delay, one of on color

Rahul Kanwar

Sure.

had what amount comment about specific pipeline. and look we're expectations to sales started out and very leaders, some think in would these and at it and And, DST, generate now, went still we the for that they've happen some So as on assumptions is as a right, I of optimistic they new to pipeline thing we we generated. in brought

think well. they as our So away it's They would just And deals working not enough way we're I significant fast do or in haven't the as of QX. went through doing a to if And we to what is those expect in we're like. those the close closed we QX, we're discovering their that haven't, likely were future, impact processes deals lost. have as and and majority just not

Ashish Sabadra

of deals? upside could you And maybe, depending view and there that I the a you've experience, more on timing on based be conservative just the don't the conservative know, potentially view a of taken these have more now, closing taken

Bill Stone

sure We so. hope

Ashish Sabadra

a Bill, for maybe you. question And

slow we forward, should kind as the think job power about, a think to earnings expense there how we and You this always continue And to how XXXX should way one earnings managing any think I get talked investors momentum we of about that of control, beyond? going from forward? of that great think going done questions in we about is sustained and how down you’ve a that is could see

Bill Stone

as expenses have I then, don't cash the will business you'll better, changing think manage earnings, and that growth execute, that mean, see I and think that we’ll tremendous we we're tremendous see model. I our we’ll also execute. revenue And then flow. we And you and

organization. we large, think, can and people, assure a and a lot company positive, this and great So, customers, a good we you it. dial less things products could we I got turn you, business, And, have great got I pretty is one got nevertheless, we still change do. But it great I I of global the like lot we're services, that don't just quickly. you not of It's a have than

need to that multiple dials be changed. there's Now,

the going through that patch, And to back. soft place. But, I so hit growth, to the And think we're we're we a got that plow through progress process. the we get and just growth all back making and over

Operator

comes Mayank of from Tandon Your next Needham question & Company.

Mayank Tandon

mentioned? operations down today identified you that some these of that the future some does Bill, pace these this of address and M&A, to just slow challenges given some maybe the in try the of with you've acquisitions, ways, you digest challenges as

Patrick Pedonti

being but quarter, quarter will haul. a mean, good for the XX only it like gone the $X.XX earnings, public I acquisition XX, $X.XX think. don't of acquisitions all to And years last the I XX, for as I acquisitions us acquisition XX XX%, over second have done I ‘XX. Well, it's quarter company, know, and almost this that we've of we $X.XX, last right, year's I our and And long second think, in I is said, change. years from both will XX to total. close end think think Mayank, Intralinks Eze I and the up the very in DST

it's, good think don't place pretty is you Street's the Wall hit and we forecasters. your little we've forecasts, a I And if to place now little tough need maybe bigger, been forecast bit So, a better. a pretty

Mayank Tandon

Right, it pressure, you given going on to downward makes term, on were revision sense. your a in Well, come another would maybe consider buyback, short allocation focusing under capital just will, if maybe guidance, the in that to vein, thoughts broader stock stock forward? probably which

Patrick Pedonti

flow. other better think uses swings there's pendulum and certainly way, try meeting, it and it always that be swings, undervalued. right, buybacks discussion again, do swings Well, cash far, Otherwise, too stock we and way. And, when that how far will you you board think our too always you know at I the that one to our is really next for a that it goes, think your

Operator

JPMorgan. question of from next Ader Your Jackson comes

Jackson Ader

rates like and Bill, kind do or win in driven deals if we in Intralinks, feeling look you deals, market businesses logo of new at that aside is new competitive we still those headwinds feel new as are wins maybe Eze just put or there logo of for pressures you're any the strong? terms

Patrick Pedonti

we runs organization Bob sales have good Jeff Bob Intralinks I over good And, I mean, job organization job. clipped at there. for think obviously, a Mike the does think and think a [indiscernible] a Petrocchi still sales for they're strong. good and who that I focus Hutner I does we on runs And, who XX.

an it's and it's think I also day every execution it's you a And game, all a time. close. got it's execute focus, to and the and

think It's this and And have a is did mean, got okay a I smart I sugarcoat guys good in we're QX, our right. patch we number, people, team, our so, And we our going number. that looking and we truth, we'll still earnings to medicine hit revenue just, just execute. the And, there's I and I think it. out come. there beat that, sit obviously, and has and markets. not to we we're think we're We tell take good you going

Jackson Ader

that was strength, double growth? growth digit digit Follow I up that prepared question at coming the you be Diamond of Black Where's would the organic on beginning from? said remarks. believe double your

Patrick Pedonti

what's market, services, Well, new driving real banks, the right. hedge spot. investment most complexes and they not banks, is mutual and market new power, insurance fund in It's RIA assets market funds splinter. RIA right. registered It's advisor financial consolidate dealers, of are then registered not investment companies, it's the private firms, equity market, is IRA advisors. big novo And or another right, really de RIAs big But broker some ways, bright they and is the still

it's And right those think I of so now. it's, been phases one

and outs who to of various houses. BB&T that's and of well, wire if starting a you're the the see Although we but new merge trend as lot companies SunTrust a spin some like knows went

Operator

of Patrick question Raymond next comes O'Shaughnessy Your James. from

Patrick O'Shaughnessy

at general better what going base health the before forward? point? So like Would customer things get outlook for of financial your they would get be this expect you your services worse

Patrick Pedonti

look know big a last know, And the might not to customer a they like, of but, billion was IT close we ours, than Morgan you think that, budget. better anywhere I but that. of is $XX they're it JP how Patrick, got and question we at XX% from

you're thing thing sure Deutsche Credit making of question a James, it's or opportunity, to that people The any with or same there's Suisse, of with or them. rest of want buy. Bank that building with So products the same same Raymond thing service and

I think are in general, capitalized. guys that, so, And well you

to are space. of quarter pretty you China help I are see But, a financial and and good more going then, interest kind trade earnings happens, and us. going they to more in half. think tends let's a resolve and are or that And, issues cut bullishness, what they rates think I to get confidence

Patrick O'Shaughnessy

And broadly then like question are out seen have GBST competitive assets on you What the there that the in interest competitive. looks the for M&A yourselves? a you very was environment, look in bidding at taking terms of

Patrick Pedonti

we more think And, out were chasing assets. I XXX. think money at bidding to and Australian as felt there's XXX up stretching XXX. like got I in management general, way at team. way But ended I no we few XXX. started said, like their like quality we But, at we We GBST,

XXX. would as not we really as, at bought it We're it we liked have lost in much have our crying to at it's soup So, XXX. that

Intralinks. disciplined be about exactly pans But like what Eze disciplined So, we tend it we have to disciplined doesn't mean were were we do. that And we out forecasted. about that we about it always

to have we little and it. work do So a more we'll do,

Operator

remarks. closing this at Bill further are over would for questions to like time. I There no to call the turn Stone

Bill Stone

to call quarter, well this you disappointed the appreciate and hard hopefully and I is as we all our for. we're we heard I to back work known Well, our but we appreciate know everybody next talk quarter. the of Thanks. end that for we’re hit going straight pretty as and train interest get coming of talk the far will And, guidance on concerned on at shareholders and and hopefully your the we're you

Operator

This concludes today's conference call.

disconnect. now may You

SS&C Technologies (SSNC) 29 Jul 192019 Q2 Earnings call transcript