SSNC - Earnings call transcript Q4 2019 | SS&C Technologies Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to SS&C Technologies’ Fourth Quarter and Full Year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

I would now to like hand the conference over to your speaker today, Justine Stone. ahead. go please you, thank

Justine Stone

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

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

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

question yourself one get to the measures section like website comparable follow-up. www.ssctech.com. is also non-GAAP financial to which During we request to section measures. and A call, to to included financial earnings today’s GAAP that of our of Relations referring reconciliation non-GAAP call, certain when question-and-answer of one will in at measures we these financial Investor in located please be release, is limit the the today’s I’d

Bill. Thank I now to over will turn you call the and

Bill Stone

joining today. everyone Thanks us for

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

basis up points margin in revenue growth revenue organic growth from consolidated beat $XXX.X growth and our Our our the QX. was by XXX strong was XX.X%, businesses adjusted consolidated driven was administration adjusted X.X%. QX fund software EBITDA million EBITDA largely business. was our in and

cash for and net from year. for activities in million quarter $X,XXX.X the million very strong fourth the XXXX at operating came $XXX

net the million year giving us acquisition. down April adjusted $X.XXX DST was rate. cash in over last income We XXXX XXXX conversion Our $X XXX% $X,XXX.X billion since billion a debt and paid

In LIBOR expect Our secured ratio net X.X facilities January annually year, to leverage we and leverage re-priced secured costs. from we plus over total X.XX. XXX; ratio save $XX interest to our XXX plus is net credit million our was this LIBOR in

base covering data significantly which customer balance and Algorithmics We’ve has risk developed and well calculating closed SS&C host risk, cater of software large sheet on to insurance amounts the into solutions ways risk extend risk, the Algorithmics sophisticated managing and of existing risk, services reach SS&C’s asset market a These scale. acquisition, management of brings risk. as at financial credit as management.

services, Additionally, into engines – our we furthering enabling embed offers of reporting SS&C’s variety further micro clients. a Algorithmics which can

over it Rahul. turn will Now, to I

Rahul Kanwar

increased and and on strong flow our exited SS&C and Bill. management, differentiate customers good all a constantly margins. with and focused growth, to nicely the GlobeOp, Thanks, remain revenue to product We contributed had innovation investment Intralinks institutional functionality Advent business. cash in to quarter and our year across XX% EBITDA over overall our We deliver generation results services.

expands and waste our used our expect and to and claims. solutions payment we enhances diversifies identify bank further abuse client to developed management majority piloted and which prevent target capability this XXXX. In This healthcare base security of a market. management tool of asset asset the throughout account advanced business health, offering Our the suspicious adopt verification, we broad our

marketing, virtual and drive deal deal rooms to our to as new investor spin prep released delivering our significant as without We vision up frictionless deal revenue diligence help customers due well easily XXXX prep. suite across data allows product licensed enhancements Our in growth. platforms Intralinks to forward The time-consuming frictionless WiFi business or look commitments. contracts us

Now, and $X European in assets billion a I’ll to satisfy a fund of clients their commitment for of billion as expanded deals functionality our $XX manager SS&C impressed vision additional UK-based office Mexico out SS&C mention asset with manager greatly accounting product, $X.X four a asset asset their chose asset They existing Advent tax QX their portfolio services. big expanded from key chose switched Boston to XXXX. seats to our The chose plus their administrator products and some management health an management and trading suite since a needs. global an of services. of with private were SS&C’s chose and hedge investor Advent out SS&C existing UK-based equity A for client client billion in build services, existing particularly products client, firm New health expanded family based partner XXXX full An suite and and Eclipse, BPO for use workflow to AWD. with plan in fund manager Advent to license Geneva, monthly e-investor and

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

Patrick Pedonti

million income adoption GAAP of standard Thanks, for Rahul. $X,XXX.X revenue million. XXX, fourth Results Algorithmics of were adjustment impact revenue and $X.XX. and acquired was of of XXXX revenue GAAP net revenues the $XXX.X million $X,XXX.X Intralink’s excluding EPS of the DST of the Adjusted quarter for diluted acquisitions.

X% to of operating was a fourth quarter was over EPS increased the the increase revenue strong a XX.XX% We $X.XX, acquisitions of revenue up had Investrack $XX.X Adjusted XXXX. over million quarter. million $XX.X diluted or adjusted contributed a increased quarter, and adjusted X%, XXXX. The Algorithmics in XX.X% and income QX adjusted Intralinks,

strength million in investment of a the had in businesses. by the constant exchange management, of was quarter. $X.X impact X.X% on unfavorable Organic a X.X% institutional alternatives Foreign driven an or the Advent basis currency growth

was quarter over fourth the XX.X% to $XX.X for million increased or and fourth million income $XXX the of XXXX. quarter operating Adjusted

in had $XXX.X margins the operating improved consolidate Adjusted exchange XXXX. expenses quarter a from in of And to XX.X% quarter fourth $X.X of an in of million quarter. over EBITDA our adjusted increase million in XXXX release earnings XX.X% the adjusted Note XX.X% XXXX. the was XX.X% Foreign QX of defined negative fourth to impact X on in of revenue,

of for amortized $XX.X expense million interest non-cash, OID. Net includes $XXX.X the was costs and quarter a financing and million

to deferred financing of including associated credit rate the quarter In The in XXXX. fourth the the payoff facilities BX of for term compared addition, was notes interest with expensed the we the senior quarter average loan. our costs in X.XX% X.XX%,

a $XX.X pretax or recorded of GAAP provision XX% tax We of million income.

related For of and and million or million impact, mostly reductions. stock tax provision adjustment $X.XX. compensation, assets the acquisitions. income the $X.X EPS $XX.X was staff net $XXX.X million income of full OID, million including of assets, financing related million million legal adjustments adjustment, revaluation settlements of $X.X $XX.X $X.X million adoption based of XXX to $XX.X revenue costs accounting year, net non-cash million depreciation Adjusted for of and $XX.X costs standard million foreign excludes a to and costs purchased deferred exchange revenue was in $X non-operating intangible severance million of related amortized of was million adjusted amortization in for to Adjusted of $XXX.X of the GAAP $XX.X amortization XX.X%. and

Intralinks adjustments shares by in the the due $X.X effective for shares The This for offset income used Diluted the issued fourth was XXXX option share million and was rate gain adjusted was quarter mostly offset investments. X.X% in we by and mark-to-market to acquisition repurchases. issuance, the on this XXXX net tax third XX%. increased quarter, in

the approximately of $X.X or and December we had net million balance equivalence, position $X.X and cash as flow, On XX, of and gross sheet $XXX cash debt of approximately million billion. cash of debt

increase million, to cash Operating paid XX for a we of was compared that Highlights $X,XXX.X months million million for $XXX.X total $X,XXX.X to XX same did $X,XXX.X XXXX. DST of the of acquisition. the are we a period a brings paid net since million and XXX% the flow debt months debt or

million cash compared XXXX. million cash the we same to $XXX million paid $XXX.X in period year, $XXX.X for year. to million For taxes of paid compared last the And XXXX, we interest in $XXX.X

Our of accounts compared XXXX. of X.X% to December, for capitalized mostly We as software, or million XX.X leasehold adjusted was of XX.X cash September used as and $XXX.X IT, of days days improvements. receivable of revenue DSO revenue –

$XXX.X of dividends, million fourth buybacks was XXXX. million in we stock compared $XX.X at the the treasury buybacks, For X.X received on The X.X of average $XX.X impact in third year, an option million we’ve declared and we’ve quarter $XXX.X compared XXXX. shares of shares of the to to paid Treasury in quarter million year. proceeds the made price exercise for And stock XXXX. of in million and the diluted last million stock common $XX million $XX.X quarter

used million is savings the to as compliance our times approximately for covenant Our and was and leverage $X.X of December the LTM cost consolidated of the which EBIDTA, X.XX Based debt $X,XXX.X EBITDA million, of as times acquisition. $XX.X the secured related December. includes acquired million net on total of ratio is was and X.X

to our Adjusted adjusted the revenue million $XXX.X – of to year $X,XXX in diluted the $XXX.X the $XXX.X for and net of expect at quarter in to of shares $X,XXX first for continue quarter outlook of income current million XX%. for rate Our million adjusted $XXX.X million. the XXXX, the to million the is first range range million expectation we tax and

Adjusted the $X,XXX.X revenue the of million. to $X,XXX million. $XXX $X,XXX million $XXX expectation current to $X,XXX.X of year net XXXX, and million diluted range the our to of shares income For in in million full range million adjusted is

expected to growth the X.X% to X.X% Organic is year for of the for in full be range year. the

million, to be tax expenditures $X,XXX XX% range adjusted X.X% cash revenues. million continue the we the the activities from of be adjusted in X.X% to year, be capital and to operating of and to full the $X,XXX in to For range to expect rate of

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

Bill Stone

Thanks, Patrick. XXXX to a is start. good off

and and SS&C delivering the Just Ares fund client for innovation we expertise Ares’ equity across on private help and objectives. to focused [ph] services of now its Alternatives’ Originally to the and assets Ares credit, management estate. with for remain fulfill middle and supports we an a portion is million administration Ares as office business. relationship announced SS&C, in provide clients extended strategic with real outsourcing important SS&C. $X,XXX other day, selected Ares’ its

also processing. into flagship have SS&C with SS&C relationship Health with extends agreement partner one pharmacy renewal provider beyond engage to agreement healthcare clients. claims our the technology a This entered Humana, of Health a We multi-year as

a experience to marketing is and a Humana’s strategy recognition. integrated healthcare Humana’s will digital of we the an deliver simplifying [indiscernible] SS&C reducing different range approach, to appreciate Health providing expenses. of We technologies healthcare support healthcare and

Now, it I’ll up questions. open for

Operator

with Zelnick Suisse. Brad [Operator Instructions] Credit from Your first question comes

is line now Your open.

Brad Zelnick

much Fantastic. an update seem Which methodical so businesses increases take actually Thank first and finish you initiatives on ready being price give the you year your what pricing. timeline us just and on be to price and the are when quarter, guys. across the you’ve My question portfolio? talked increases? Last the is strong more a congrats on across about might these opportunities And taking effect. changes businesses for the to would more about

Rahul Kanwar

Raul, expect to this and update. to so We’ve is for reasonably you the we quarter a the two I’d say good process. just investment into So, price software price pretty already been through increases. and an In working for months methodically through et April. contractual give we cetera, working maybe of or institutional probably continue that our end process Brad, it management, Advent had businesses, on now and

receptive the process we’re for those as our outsourcing of diligent, others. I in businesses, while services we’re through working so us is includes we been think customers. businesses, opportunity in that biggest past And well. been far, funds, and pretty going they’ve look where haven’t that some it’s with at taking So, thus and And a that the to

Brad Zelnick

that Thanks just maybe, color, And services maintenance and for line. in software-enabled versus the follow Rahul. on other up appears to revenue a license

just the and and we of remind the and us, business lines should model what little as modeling the showing in Patrick, going about, were think just we perhaps maybe, Can came ends of we value the than a you differently rhythm expected. these up? mix forward, think revenue up how bit where others – I the

Rahul Kanwar

it’s and software-enabled that almost Well, primarily is Brad, business. And services that it business rather And would higher aside types when in the revenue. maintenance I then think licenses, from that you I term the and accelerations. in businesses, pay our quarter at business that business more business, largest is a our far and still software more the of think, becoming has than say licenses obviously, places perpetual is into monthly recurring recurring a has so much by then that look all some I of

Brad Zelnick

much. Nice so Thanks job, Okay. guys.

Operator

Kumar Your Ranya Evercore next comes question from with ISI.

Your line open. is

Ranya Kumar

for question. Thanks my Good evening. taking

the a for the You to And high-end to XXXX, pretty for the you to then in that be call X.X%, large what X.X% if out the factors organic first versus just growth. secondly, get range expectations place you low-end? can organic the your for have quarter growth call to

Bill Stone

Yes.

And goes I we’re far as sure the into we’re it. giving that ourselves directionally then is trying And I the you think front as think the as trying how of that, now, we’re right spread also But do way. ahead getting deals, you the a look to we I that quarter magnitude up. first get not from I organic we’re close we that maybe? you our that is and deals, right at think standpoint and Patrick, you revenue in growth have right then these larger guidance to to think, of both make

Patrick Pedonti

I do.

The quarter very the full similar first year. is to

the and increase high-end, the it’s On in it’s X.X% X.X% increase. low-end,

Ranya Kumar

a are expectations of what for your the organic a Great. follow-up, so we helpful. can DST alternatives and just software, have growth? growth in And top-line breakdown for business That’s very good drivers the as for

Bill Stone

a think will DST to what is business fund software X% somewhere X% our traditionally business – then flat is, probably that X% our to single-digit. we to be range And going business fund plus to in to Well, going Ranya, is I X%. be serve is range. the thought minus have mid The administration

Ranya Kumar

Thank you.

Operator

from question with Andrew next comes Schmidt Your Citi.

Your is line open.

Andrew Schmidt

questions. thanks Hey my taking for guys.

question First on DST.

is You in business you’ve Well, guys if some the sales like year. have the pipeline pipeline, financial, as generally, across things whole, had financial the be institutions last but helpful. changes changes that that. the talk how the any have made color would across Any there just up and or DST the changes about a you or healthcare, segment, on impact shaping sales then seen just

Bill Stone

biggest DST would say had think our I was acquisition people, Yes. prior DST had again, X,XXX and about XX,XXX. GlobeOp I that GlobeOp and to

finished. not we’re So,

that Humana. So, think working to making hundreds, progress. And there’s lot I a that we’re do, on thousands worked hours and our we think they going business. a And And signed up demanding, us spent and with with helps work but still if to larger them. it’s very to rewarding We that we pretty have of see they’re of not we’re and hard larger relationship with Humana. which

high pretty in the some have we hopes So, healthcare space.

things and going fund there’s sub-accounting full and it. bringing as think fundamental fund accounting. services But to passive innovating; active mutual into I again, versus people some we’re as on in the we’re still new industry financial mutual far

money. We’re long-term. help we’re the adding we apps lot think other to short medium and are the term, a of things whole going to over And us that over making

Andrew Schmidt

priorities in cash quickly debt talk about a out be pipeline, and the cash little think there can that are just bit of for about any use then sizable the reaching and targeted year of a Got it. levels. sense. your you That around my just comments – flow quarter makes targeted just fourth deals would reaching with M&A nature this be did you delevering debt just then levels, whether job helpful? anything or can realized there’s guys of any follow-up, And good as and you

Bill Stone

active I Algorithmics. say execute range $X And a that on mean a similar well in we I we’re for wouldn’t acquisition us. several $XXX sized have going first couple the or such, anything and strong have we we of in we And on pipeline prospects. quarters. that’s have billion I process couple I of a but probably to disciplined and Yes. think we try that say will in that would pretty be to and million

million much attractive stuff stuff share the or so share we we much this make And have this And $XXX look much cash we so. is other buybacks value in our have about our another have think and flow other – cash first we price. the we money the I’m that think in already down that when using increasingly I paid quarter, sorry, maybe

something So, million $XXX financially, make disciplined I and to that quarters some we we ago. very use few of got remain we very, about it very sure more a think might that’s that we But again, that authorization want that strong. we’re

Andrew Schmidt

Understood. Thank you, guys.

Operator

Your Alex next from question comes Kramm UBS. with

Your line is open.

Alex Kramm

evening. XXXX I was in maybe, quarter. spot, that back effect done a more a but comment, the we Hey, too base you to good the Bill, a XX last picture, or to It the now that probably bit just some off-the-cuff exact better a ago? are here, Is guidance, a still already. growth of bit you’re worse have you to are Yes. versus made in much to obviously, biggest coming you you organic hoping think the back not to bigger you quarter, but for get think had maybe X% X% put it on like a outlook what than comment originally of doing thinking, difference were more what little days now businesses thought do fourth second little a

Bill Stone

Yes.

sudden predict what three becomes recognizing you little as goes five-year of deal you much a three-year more a truly you’re guess. or to money expecting a from somebody were a it to able when all when what’s we and be to two a some recognize, at in of I came the is it accounting – that, is the XXX other think of byzantine and have things, some QX in In these in stuff to QX. you this Alex, that this of going look best, might thought right? come at for to So, deal as times stuff

pipeline. we And stuff of have in so think the plenty I

looking like and stuff closing they’re little to more whipsaw. it’s start you a and and they bit wanting give it at start looks you start not year, gals and you I things there’s closing, and guys kinds last think information then of all like then

more the have on pretty think in, nature the size our of that that’s the is the deals of of unique the I then and that of impressive. financial that winning of opportunities we So, that pretty and that we’re businesses impact statements

Alex Kramm

here? much And it your as does or very are – guidance building just guess contemplate and enough. can fair you one Or Patrick, expense quick, does your debt how into that actually pay down contemplate you for from budget is Okay, then I today? off further interest

Patrick Pedonti

When flow go to free just in assume debt, No. expense, assumed down a to pay guidance, that’s And cash in is we we guidance. for the provide that it’s the year. on million range of think or minus going our our all interest we if what’s $XXX then plus

Alex Kramm

Okay. thank all to. want I That’s you.

Operator

Your question Surinder Jefferies. comes from next Thind with

open. line Your is

Surinder Thind

afternoon. forward As of we here, profile the about bit gentlemen. expectations. color continues is? or generate should on like be additional about cost to over on the to back a it off Can in your seems savings question I thinking the or strong to your the start ability how baseline Good expenses. XQ provide a Congratulations terms a margin you like surpass little I’d look quarters, trajectory current what couple of

margins And the so ahead? year think about should improvement how maybe, margin we in and

Bill Stone

underperform. Well, we prefer to to outperform them

basis. objectives. And big a So to It’s consistent in with keep lots so things ways people that do now, aware bit costs place manage can of is more and efficient we there’s right? that our a

do attention pays toss and and pay – a we expenses got We’re don’t management around covers. a But place that to team team, we margin we nickels we Patrick’s have finance attention. and a and accounting still their like solid high don’t manhole solid very

will more to that we efficient, cost that think continue continue to more and I get into will so And productive, additional translate savings. think I get

Surinder Thind

I – ended thinking you’re this of one you and of any kind then them XXXX the of at ahead, color can just Intralinks the year the And helpful. how XXXX versus provide think as on about in kind kind That’s about year ahead point? how

Bill Stone

strong. Eze job much say those also Bob in got Bisconti Ken far businesses headwinds one of new He’s new right is doing the his a about think we some the are a quite we’re great I and in now, for out and markets They general, a merrier over I and great in number that Well, more the business Petrocchi would have products doing Mike management and the of is Intralinks as having in and that’s how brought job. concerned. as volatility still Hutner equity each

We no momentum. the but will we so gaining have a I a team overall talented – think have prove those been decision. wise is Eclipse and And to got

Surinder Thind

for queue Thank you. I’ll get back follow-up. in the

Operator

Your Sandler. with Donat next question from Chris comes Piper

is open. Your line

Chris Donat

Hi, guys. my taking thanks for question.

was talk administration, bill, the about to saw XXXX strong definitely revenues provide? it other of and can XQ there? the heard comments drivers a that you you your is about Can in some businesses there fund year guidance. quarter So, you strength software earlier, relative for I any detail but

Bill Stone

business I and And signed nature just think, year think you’re question $XX strengths some going that than to is of multiple certain It’s in business things you’re reality that XXX, in signed the was again, the million June – XX couple other Well, little I strength quarters and deals recognizing on contract did and of the you're July the recommending a quarters. with going of a have we Xrd. that other get a coming or into both less have same quarters.

But a it before, now. I so of as pretty much swing. quite wasn’t think it’s that’s And dramatic

Operator

Perlin comes Dan Your from RBC Markets. with next question Capital

line is open. Your

Dan Perlin

trying ending so strong. I make on just I congrats and a and around of big maintenance is sure was The this to year I line. understand in quarter. I’m question it. license kind Thanks. had what’s it the mean,

did mean, And that $XX – falls a how there pretty much quarter but that idea I other, it’s that is into kind than the is whole cadence And trying about a significant better to a really I the is that one step-up. I’m that’s chunk Bill? of understand the you dramatic. So, of revenue, first, big acquired that what’s million embedded – in understand it’s of

Bill Stone

think to in money that And been quarter pretty that has selling fourth – quarters. big and driven something we I products in have us third some that pretty to recognize the deals we’re again, the Hopefully, but they’re people of better nature to we’re and they – always bigger going with And we’re be, the not good bigger think – more upside, how extended that all Well, pretty the we’re that’s have opportunities changes. all going won have over significant have just line this and giving that that we’re the dramatic and that’s won’t we world. dramatic numbers we increasing a to but of fourth it’s got I operates, and really XXXX. is to

Patrick Pedonti

acquisitions. I think on

Dan Perlin

Yes.

Patrick Pedonti

$X.X that of term large line, is of there’s think maintenance In rest that license I about Algorithmics and in slide multi-year signed. million all we the it of contracts

Dan Perlin

That’s awesome.

you that to for you’re winning a when theme they sizable what are talked past �� just just about this So obviously extending that those. in been on quarter you described with clearly indicates same looking the maybe more have than have extent, that opportunities, they at second, you’re

I talking So, the these winning deals? smaller. going mean, forward we were they you’re how about in think past when do about SS&C

going it on it’s how Now, clearly larger. mean Is duration now going we get you what they’re Thank or bigger think? towards to a lumpy? you. between be just more more Or be XXXX to going licenses these looks like? trying I’m to the to frame that do Does it handle they’re is skew be much, going much longer? that to much these;

Bill Stone

I that have the to you Yes. to I – mean, to you there’s stay market. – think have close

market. it and that services, products that be – which consume to it wants way present term. used to to in debate some willing and big be between to The to perpetual have your You

some some are it’s XX outsourcing, years. full years, some some debate three are big are your contracts, are what years, one Now, year, a two outsourcing, are years, some some some between hosting, four

is quarter going mix So going quarter-to-quarter? what’s really amplitude Dan, big determine. what the depending is you’re that of to in from How change particular have any on in to

the time. years I better much five a and I knocking the last we them, guess business we’re but on of we’re – of those, look not think and year that like different, right. each And will enough signing and of door our think five And I right on we’re at years. the that again, it’s bidding $XXX we’re pretty although precipice stuff, it’s getting would not don’t manage well one that the next So, million

Operator

Your next Needham. Mayank with question from comes Tandon

is Your line open.

Mayank Tandon

those can Good several on to wins. What maybe, those factors evening. Rahul may have capabilities? dealings a the your price, sense it a other product you. of determining Is that mentioned wins? the Rahul versus competition? this, tilting get Is it answer were just Thank favor role balance and in Bill, wanted but played deal factors your in

Rahul Kanwar

of them, Mayank, a there’s if There’s I equity family I fund client kind the number say down the in services that and would wins looked list, private there’s there’s right? of manager, just asset a a general. office, an

folks more – compete we in the that We have then against. capability marketplace think much we

We’re the only software company.

that have at when impressive them. lots other biggest we array operating and but requirements, core sources We’re so only of organization of looks any us, little a us do address also the fund that pretty of are a their big additional to modules administrator we over services. have number do of can built not things years leverage

that we’ve talked is improving. about, and a ourselves a combination in these I base again, that software the have and deals continuously fact number software license our is we of as many from once we’re it think we software user the large using side customers of collected, of both that systems on and had the benefiting

marketplace through go looking what’s that’s the presentation meetings best we going force when their our and I the right in the with really And at sales way and the said, right reflected and And these people out and showing in we’re So, Right. up think as we’ve bill possible. making sure deals. got constantly we’re better. getting

Mayank Tandon

Right.

the come on healthcare the then be focused Humana look the like core be helpful. the financial side. given versus where services success big what next is look lot the opportunities seemed versus should for there you’ve core bill, Okay, to profile And of and great. side, on your That’s financial had with and growth healthcare just to deal business then margin a

Bill Stone

healthcare. in lips we to Mayank, God’s run a deals number Well, there’s big XX% that I We from about think think your ears, that business margins. of

be have runs we a and we’re good working applications opportunities that that revenue have down bring our – some it think the team that, a up and think know, and technology knocking more the that and to Hogan Sean new – have bunch I being to that to revenue improve got the who those. I out can doors a innovation, for and job and margins well out he’s coming big done go there those more bear, profile business on you We more opportunities us we are And, received. we our has are nice tend that of people the improves. are pretty really more

Mayank Tandon

enough. fair Well, bill. Okay. Thanks,

Operator

Your comes with William Chris next from Schuttler question Blair.

Your line is open.

Chris Schuttler

afternoon. pricing to how in in and contribute How do did contribute Good expect guys. revenue much Hi XXXX? XXXX growth it you to much

Bill Stone

think that, range process the yet, things out, completely the don’t I we the laid from that have know say I be of pricing. or But would maybe, I Patrick the might through discussing range come organic XX% with we’re out high-end might that XX%, that like customers, quantified of working that. growth that because that of still and revenue –

Chris Schuttler

in grow fast alternatives How quarter? fourth the business Okay. the did

Bill Stone

Right, About right. X% I think.

higher just I than that. it’s little think a

Chris Schuttler

quarter, about that how just Okay. in the QX full I I the was conservative there’s jump Why just in And fully think the $XXX it for year, is? ask further million lastly, share diluted. count? wondering can and the

Patrick Pedonti

to is price. share Well, count the diluted sensitive stock very

Chris Schuttler

Yes.

Patrick Pedonti

the $XX, think QX stock I right. in I average price And think, was

Chris Schuttler

it. Got

Patrick Pedonti

Yes.

has big impact. that So a

price. big really some exercises, there’s to on likely, most difference is based going the be typical option is but – not shares So, calculated how diluted but the stock it’s

Chris Schuttler

That makes you. thank Okay. sense, Patrick.

Operator

Peter with from comes question next Heckmann Davidson. Your

Your line is open.

Peter Heckmann

Had were the on we to any Cigna is regards looking the at. Congratulations I extension. XX piece, renew been here which That months or afternoon. think there developments scheduled one as so? good was Humana Hey, that next within

Bill Stone

we I think have XXXX. with a through contract Cigna

So, it’s mean, on, Express – come I quite XX I bought they months, not but Scripts.

and on a have we’re other have hanging their customer we our to continuing great replace We’re to have we other pharmacy Cigna’s. relationship of us that But handle Cigna claims. big and revenue not ways hat Cigna, with

big will a be So, we’ll customer. it or some replace we such of

can we and too. works So, play how that game

Peter Heckmann

close out XXXX? from DST you stemmed contracts trailing deal. That’s from any customer into Patrick, right. prior And the quantify that right. that drag that to That’s traded Can it the housekeeping standpoint, revenue just at here of the

Patrick Pedonti

I think, $XX in XXXX, think I it’s million.

Peter Heckmann

And more would loaded, assume. half I front

Patrick Pedonti

pretty think even. I just it’s

Peter Heckmann

Okay.

Patrick Pedonti

it’s current bit million like, whole mean $XX it front-loaded. little it’s and and $XX I I probably million think for – year $XX the that million, the $XX Pretty There’s is $XX million, a million. runs estimate

Peter Heckmann

Great. much. you Thank very

Operator

with Your comes Sabadra Bank. next from question Deutsche Ashish

Your open. line is

Ashish Sabadra

Thanks.

such congratulations add me a quarter. question as on Let innovation. to strong A my well

market the as the innovation up the the mentioned So, just think we you about number of receptivity Rahul, about and innovation new product. and new the in think introduced should contribution drive contribution a you’ve And should Thanks. you events, innovation that the talk How maybe, in of from think the three we can product that building more we over midterms helping about how innovations? these next from years? about product

Rahul Kanwar

some things these we it, get get that’s is, of about and on I right? some think go try part clients we we first largest embark way, projects. we anchor our how So, market Ashish, And on buy-in, to building the the right, try of to

So, we Intralinks the we That’s market been the the been already of that’s the It’s some about there development the we reception. certainly, will good case case. when case. validated for complete talked And business. have in that them, certainly be

systems that. like things we do with portfolio our and what So,

continuing it’s to or of what whether customers regulators that. just big to add of value understand to dealing one really others of institutions we to try solve We features the add of and product, expect how And the the ourselves lot in demands is from we with bring biggest help that ways, them and which marketplace the functions, in are and demands continue. continuing differentiate a and

So revenue a part of big and our process the years. several next that expect sales continue growth that’s and we over to

Ashish Sabadra

then pricing. as And some the increases that’s a these on understand on to pricing or maybe, the pricing more pricing better there more pretty just you to we in It about have a but on trend. that think seems one-time want just Should is color to provide for Thanks. power good, business. it’s increases a I just opportunity great. question And like forward? if going you can basis continue annual

Rahul Kanwar

setting we’re are a haven’t done way in consistent customers, annoy that thoughtful about We’re we’re kind right? businesses, So, just way the right? to this of we it where people with we’re this doing particularly our is trying a annual long being not why the we discussions. think it, conversation, on an consistent into in – I expectation is really get or

we We’re a a pretty of a once that year take account do and a just that think and forward. and at our trying an the are make in formal practices increases, and normal way customers review to going have cost receptive. part of living we’ll that type look

Ashish Sabadra

on Congrats Thanks. quarter. great. such again a once solid That’s

Operator

question next comes Your Faucette Morgan with James Stanley. from

open. is line Your

Unidentified Analyst

taking a on guys. Hi more congrats questions. want my for in on for action. quarter the This I to Jonathan little on pricing and James. thanks is dig

that pricing customer Have you’re two through the about mentioned process seen attrition of months. working that? for You any you because

Rahul Kanwar

not. have We

much by I pleasantly say had, cases, close we some that how get. we’ve surprised would conversations customer fact, targets better In set or by and how the the in we can

but it pretty lot value want going We haven’t result. about those value, a now, negative a it. really relationships. bringing really So, but thoughtful as that sure had make fallout any of being well, we we’re is to we’re We

Unidentified Analyst

quarter That’s of it. quarter? in came us that Got And some QX. that of benefit during the in the give you expected to mentioned impact you or be the of the it deals Can helpful.

Bill Stone

that we you’d as Yes. and much have I almost as by revenue, wouldn’t to you. deal say go And have that for done haven’t deal how a we back to number even that. that

Unidentified Analyst

you. Thank it. Got

Operator

next Your from Ader comes Jackson question JPMorgan. [Operator Instructions] with

Your line is open.

Jackson Ader

the quarter little coming on if the of business impacts fourth we around of the a Great. call, taking this Good the you but any to questions. said just was addressed of from there trading I guys. fourth on volumes bounce in comparison volumes? evening market quarter, year-over-year Eze some my relative bit, terms apologize the Thanks in for XXXX

Bill Stone

to some, material not Eze the probably certainly or to but little, either company. really not Very

Jackson Ader

enough. of tailwind most a has XXXX business, over this we been certainly And in from Okay. here be the business? that know expecting then that on fair update RIA an XXXX. What we should

Bill Stone

that’s been we in continue obviously, it for growing guess to And would XXXX, I that. I do to a year something XX% number situation – of the investment a mean XX%, at is and will so to There’s there continue is going a that think lot that’s team a to I business. and good Black It’s a of closely. good our activity monitor and strong Diamond be business. a team. years.

Jackson Ader

right. All Thank you.

Operator

call this no now the further time. I Bill at are Stone. would questions to back over There turn

Bill Stone

We we about Well, of feel good XXXX forward talking at very very to We again, listening of good in. you end you first and about our thanks to look quarter. for the all QX. feel the Thanks.

Operator

conference This call. concludes today’s

disconnect. may You now

SS&C Technologies (SSNC) 12 Feb 202019 Q4 Earnings call transcript