SSNC - Earnings call transcript Q3 2020 | SS&C Technologies Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the SS&C Technologies’ Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] I would now like to hand the conference over to your speaker today, Justine Stone. Please go ahead.

Justine Stone

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

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

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

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

Bill Stone

the to our we the the I’ll discuss as yours continue of joining quarter, Thanks, for Justine healthy. world. home I are year to thanks safe us hope today. results through remainder and navigate assumptions walk then and COVID-XX for everyone for and our you

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

$XXX.X $XXX.X our million consolidated million to XX.X%. adjusted Our margin EBITDA – increased was and adjusted EBITDA consolidated

basis up points. was that XXX think I

in and X.X%, face can some back specific revenue within headwinds when COVID Obviously, was been our to business. businesses, prior improvement, September did as to as Organic Our particularly not X.X% Alternative reasonable adjusted million rebound while perpetual a we M&A down XX, with prescriptions for nine the administration in market many people sales X.X%. weaknesses growth seen have had helped growth we we XXXX. QX quarter people healthcare and some fulfill Intralinks able and strong organic our continued rectified have of have front in get they drive in months cash fund COVID. organic the ended to was flow the $XXX the we

business venture swings have economy The SS&C core Despite unit has evaluate over help lot preserved the acquisition investment will of our DNA. work years source our in of and capital. in caused stock major us new and And and managers experience net prospects. banking leverage Frank secured million We price brought Director of on is Frank X.XX of acquisitions Managing still assets. evaluating high-quality net Our stock X.X of & shares Mergers $XX.XX for In to September, total and common back $XXX.X Egan Acquisitions. times. at is an of our XX this, in global market. both X.XX are a prioritize uncertainty pandemic with a deals We and share he bought be number million. average leverage to per times different we has

teams and innovative. are Our is sales our technology force hungry,

The signed area a and Eze industry clients adapt in we that two couple We signed September. new space. to the months, to nationwide a hope of to retirement for continues solid retirement will XX and in be ever largest high continue we’ve of we Eclipse build and us Over deals references past believe the record the ICMA.

term basis. we know, Eze you on a sell Eclipse As

years. few So, the the revenue will be over next radically earned

an Black integrated with and we traction. in warehouses we this have and RIAs, Thanks are being begun companies and trend and Diamond anticipate competing get to and have ongoing InnoTrust trust some XXXX. We

trillion, alternatives quarter under Our for $X.XX demise surpassing so previous record our positioned business are high for industry. well these assets of volatile much believe last in set asset set a record alternative at the We administration the new alternatives managers markets. alternative

XXXX analysis our X on be Our results scenario found and can Pages slide. earnings of X

I’ll which our to million from incremental use an of dependent to share anticipate $XX a $X.XX baseline turn per upon to continue in the We our also more XXXX over quarter’s the little the the come estimate. upon now call to about We in of detail. the dependent or discuss global scenario about economy, last decrease Rahul at with baseline, obviously up earnings $X.XX increase is state as quarter pandemic. as

Rahul Kanwar

Thanks, Bill.

of a four workforce we phase remote, While majority the offices still are our have is and open or international planning more. several in

return normalcy, but being our anxious priority. and all to to of are is We first the our employees health well

health to zoom innovate Intralinks, home. working our algorithmics expanded and portal product. web in brings and governments world investor conferences. here general employees continue Within safe embedded have will vision with from SS&C steel singularity including in and offering launched partner it’s our enhanced our to risk United and and roadshow collaborate guidelines from unless CDC and the the office States, open to singularity Integration marketing Intralinks do so. analytics capabilities, we an integrated continues not around between the monitoring authorities to We’re despite

the best expanded also business and Agency building We rebranded have client and Global our functionality one momentum. Nick single has of and Head using Distribution Transfer Solutions, delivers are GIDS GIDS. Global of a role created SS&C’s of platform. this Investor agency We’ve the to around international, already newly financial signed together GIDS by to transfer transfer agency world. bring capabilities leading servicing powered assumed servicing Wright, services global previously

to preparation, successful DST hedge large to including and expertise in administration hedge middle on services commitment fund large insurance billion licensed Boutique license it Institutional a at membership Link a implement for and Investment reputation deals manager expanded strategic their their fund Fund Patrick capabilities, based health a consolidate investor internal services services, as cross-sell hedge for requirements. APX SS&C existing due assets Genesis client fund from Geneva SS&C’s Superannuation fund current client requirements, between to a vendors their agency alternative in a to and Advent A run existing tax tight our QX. solution delivery that reporting regulatory financials. now vision. the and The meet a Now, long-term and licenses DST BD to European portal loan to It additional services client upgraded to required complex a large offer meet I assets Boston solution and operations. looking will growth. Group. operations. an licensed clients reporting fund and A European acquisitions its and billion the was resulting to competitor our license for some rebalancing through A show office $XX over number the in to mention $X administration to servicing infrastructure and chose fund a our key administration cloud increased to in support based turn their timeframe. A Australia converted The fund absorbing solution investment ability citing for client and Bluedoor Management ability and transfer required will of extended their to and a our I SS&C

Patrick Pedonti

the adjusted operating XXXX and XXXX. the Results XXX for – Adjusted including over million, acquired third of were share GAAP adjusted acquisitions. adoption deferred for was you. QX EPS and Adjusted impact increased up the income $X.XX. for over of revenues income X.X% diluted and adjustments million revenues was net per Thank GAAP and for increase were of the $X.XX revenue QX the million, XXXX. quarter $X,XXX.X $X.X earnings $XXX.X revenue of $X,XXX.X Adjusted XX.X% increased X.X% million X.X%, revenue revenue standard

quarter. million $XX.X contributed the acquisitions in Our

$X.X an of businesses. or Foreign and declined in Organic X.X% Exchange offset had the increase currency fund management third driven weakness were a the Intralinks in quarter operating in Adjusted asset some quarter. million million, $XX.X X.X% on and revenue a DST of income strength million, quarter. healthcare was for X.X% third administration or favorable by was basis the and the These constant by $XXX.X impact businesses.

the impact the for The from XXXX diluted in in pocket The net OID. or lower the personnel third income. million quarter amended income by release interest expenses Adjusted $XX.X as $XXX.X in XX.X% X.X% million X price earnings in which share from of average defined the shares Foreign tax XX% quarter for million an was increase million our costs effective earnings and impact $XXX.X an and in compared of We XXXX. notes and a in of $X.XX amortized operating exercises was the improved costs of was used out million of XXXX. credit quarter. negative facility net for lower $XX.X increase release financing Diluted of was lower of million repurchases. EPS GAAP tax adjusted senior expenses to the the was the $X.X was XX%. for expense million and pretax of or on XX.X% of of travel of in independent exchange to by EBITDA, Driven quarter was adjusted $X.X third adjusted decrease non-cash, expense rate and X.XX% of in partially lower in XX.X% adjusted Net was the of quarter X.X%, note interest million share $XX.X provision over resulted million. revenue, income a X million costs, the $XXX.X to rate interest third and margins in had option QX of Adjusted quarter Note $XX.X expenses. XXXX qX. related consolidated includes quarter or increased recorded third contractors, the offset in defined average $XXX.X and

for flow operating months cash we flow balance of million. September, cash of billion of as approximately a and for $X.X nine $XXX.X and equivalents, approximately the the of and billion. September ended debt On position debt sheet million approximately gross cash cash XXXX $XXX $X.X net had was

the million, we per XXXX. nine common payments XXXX. $XXX.X treasury of For dividends million stock of compared $XXX.X compared for In treasury had levels XXXX. share, year, of in to million stock In XX.X%. we about $XXX.X $XX period of in to debt nine an same paid of period increase year $XXX.X paid taxes lower the the rates. of million nine million million in we X.X lower to at and million due purchases stock and million months, Year-to-date, to of totaled compared average interest of average of last months, $XXX.X million, million X.X declared months, paid $XX.X we’ve the the buybacks income debt to in compared price $XX.X million interest to buybacks $XXX.X as $XX.XX for an compared the last million shares $XXX.X shares net same

software, to accounts Our predominantly expenditures XX.X quarter $XX.X EBITDA, or $XX.X increased days million Option million receivable June of X.X leasehold IT year. DSO proceeds to of in facility and and was shares million consolidated for software facilities totaled compared in of million year days shares and $XXX.X revenue proceeds for Spending capitalized infrastructure this capitalized year. prior improvements. LTM basis, million to compared capital the $XX – to to X.X adjusted On exercise an X.X% of million improved to last revenue, somewhat leasehold X.X% and compared or our EBITDA adjusted markets got as channels that the On XXXX. September, XX.X in debt AUA and levels which We acquired and impacted. that’s leverage and was X.XX used year, million volatile, approximately times. these as assumed total billion, acquisition. outsourcing the million cost was continue $X,XXX assume basically Based remain our outlook. our of $X on launches was for net large $X.X of and fund are secured compliance licensed our included ratio ratio scale for flat and times X.XX is assumptions to outlook deals be of related are covenant and savings delayed. includes

plus range be in will adjusted to continue which X% on LIBOR be be XXX month to the our will spread, year retention will for range current as the on the be will focusing organic we’re the results. our term of bps. client foreign recent currency of rates loan currently negative most at in growth X%. exchange Interest levels. negative revenue growth, is facility As rates approximately one service,

in expenses our our manage variable We’ll the revenue, will We long-term of by approximately approximately expenses invest continue hiring. GAAP controlling this X.X% and staff and for of period R&D expenditures capital $XXX to expenses million during a basis. business on are with

to be rate adjusted an the on approximately expect tax XX% We basis.

improve results. to of million, start assumptions, $X,XXX million, revenue million. conditions we operating of economic the of following adjusted $XXX net XXXX. diluted Under the that in adjusted assumes fourth $X,XXX scenario first and The income $X,XXX approximately of cash these expect quarter million, flow the shares

the net million. income diluted the scenario shares conditions. expect assumption, second that flow current operating the assumes million revenue of The we this adjusted economic million, adjusted results Under following same conditions $X,XXX of $XXX.X continue of $X,XXX of million, and $X,XXX as cash

assumes turn this now possibly XXXX. later $X,XXX the for final Under operating comments. of I’ll $XXX.X income assumption economic flow and improving of million, And we of back $X,XXX cash Bill until in third million. that to net The Adjusted expect don’t over conditions million following shares of assumption, results. revenue adjusted million, diluted it start $X,XXX

Justine Stone

Mr. remarks? you have closing Stone, do any

Bill Stone

and a subscriptions, transaction. this SS&C XXXX accounting SS&C and regulatory engine, transaction have for Medicaid, The pandemic, group by compliance redemptions we checks, a professionals. up is so year, year people global up generally for year ticking adjusted more each services, products be civil of a value the will SS&C than up a employees fund to and Thanks, Patrick. our to And fine clients, XX% pharmacy perhaps will processing tax company diverse things. talented for of and and world claims, just successful a questions. be lack that, partner Medicare, and tax payments, put election XX% quarter it challenges, doing an and of year, more haven to no keeps investors. open our a XX dividends, EPS rates, together unrest. but more we In commercial mutual years, for and with other of continue for suspect has hundreds interest trusted portfolio our has we’ll year. strong returns, away. diverse supported remarkably a the the past presented timepiece

Operator

comes [Operator go ahead. Instructions] Your first question Evercore. line Please of Ranya the from Kumar with

Ranya Kumar

modeling It revenue thanks a the evening. of bit that my in what organic is quarter came looks much for if growth assumption the and enrollings your underlying fourth from helpful? the know you business can question. you from business and in Good better be for administration also that the what organic the talk came organic that case. DSP little lot fund really of revenue about these taking and the separately, And revenue. if than How would drivers the maybe, you street baseline like growth is, about can for – quarter a talk the drivers

Bill Stone

that? take would you do Rahul,

Rahul Kanwar

guidance pretty Bill, underlying again. to – the a from or think good I bounce comment a quarter had the good in really and also maybe, the businesses, performance Patrick, pretty within if certainly qX, had we well quarter. the Intralinks, businesses rather. on you’d starting start momentum can And or good M&A as had back build can that in the business a saw comment so some highlights and I the intralinks and the board the scenarios But but that on the are across assumptions. we Patrick a pretty administration

Patrick Pedonti

Sure.

I’ll growth midpoint difficult we and for But of when influence I very expect adjusted the funding seeing we business. was quarter. be – DST in expect to had fourth some to to XXXX the very X.X%. in that And and in improvement the and cost qX strong is million the full sales negative think – we the business revenue $X,XXX ministration there’s license about talk and business, the year growth continue scenario X% our of the in also that difficulty around be about the scenarios, quarter that compared a organic

Ranya Kumar

for in you quarter. growth fourth saw XXXX? back the least in actual talk growth very That’s helpful about to call growth top-line the possible the bit little single-digit the can in low it’s if it. – you separately, and we rate get if and third business And fund administration to DST in out Got the a that can at

Patrick Pedonti

administration attended for alternatives the on business X.X% of the up some down in adjusted in basis X.X% was an you, give I’ll DST businesses quarter, qX.

Ranya Kumar

ahead. Go

Bill Stone

the large deals quarter deals, in are kick kicks in, really releases I XXXX. the really XXXX, had in throughout on starts and out and press these that very then revenue think, fourth have we to

optimism So, pipeline. we more and that the we in we have have some reason a believe prospects for lot

Operator

line is Zelnick ahead. Your from Credit question with Suisse. the next Brad go of Please

Marco Vissers

on this Brad. Egan. I the for for a Marco hiring line bit you. is Hi, Bill. my for thanks about question. to is talk the Frank This taking wanted of

M&A perhaps shift you Thanks. or excites there Is about in is what something So, it a this changing hiring? the in strategy environment?

Bill Stone

founded at And investment Ridge capital ran very a capital UBS. both venture think, I of including in pretty something then healthcare. called been in of that a connected different number funds a he for and FinTech has number He’s well senior person Lake and banks, Well, Frank years.

network brings how a think of we how is our comfortable that towards the people make a didn’t where he frame, to business have an move organization that really so and how on offer, before. with And what capabilities I individual the way, to in we’re close in to then target to units and do. he’s going helping confident And

So, here months. He’s a we’re couple about excited it. of been

I think, in general.

performance. are with us pretty of his All pleased

Marco Vissers

Great, thank you.

quarter? ask to of, For that you say contractors Patrick, how you much we for to to think transition savings about going the I Thanks. spoke potential would in-house And my contributes that follow-up, the how employees margins about this forward? should of wanted

Patrick Pedonti

about the most transitioned in to and I take employees neighborhood. all – savings somewhere of quarter the were that the contractors $X in was quarter think in-house the in the million

Operator

from with go line is ahead. JPMorgan. please Jackson Ader question next of Your the

Jackson Ader

for guys. thanks Hey, taking question. my

deals aware you businesses accounting to account, are about? priced? the particular based recognition, bill services some businesses retirement oddities sense, how there? that follow-up they Can quick be dollars mutual fund has that of Are us a any that a we contracts similar DST retirement on and in then those per give the revenue you of those those Just on talked should

Bill Stone

think I and number matrix of number the in tournaments, general, the transactions. of again, it’s assets, the participants, the it’s size,

large are deals for are with again, and we’re those I these have Everyday So, they XXX(k), market is power. that mean, deals. these that JPMorgan of the a going guys. out scale And you administer JPMorgan also guys, all something came also to lot startup along large or and a lines

has nationwide great So, and business. big there’s been a anticipation a

of millions acceleration tens expecting we’re and So, revenue XXXX. then XXXX to of in

Jackson Ader

on I think you. AUM fund organic a is row revenue Got And the has the in this then administration it, business, okay. quarter the a Thank that actually second growth. outpaced

And just of not it basis types is you customers? administration? you’re curious, a Maybe into the signal get signal same pressure? assets so able comments I’m assets this flowing type of the there? on points of more the of a plain are that to maybe, vanilla, pricing Is have Any your where under

Patrick Pedonti

shot that. a Bill, at I take could

I what’s quickly. equity grow is and So, to happening think private continue businesses real our assets,

the Some that, private have in terms and of and of the for partners of don’t capital for are yield there like very, mandates what kinds that things same that’s probably and seeing. profitable, but things very getting like are in limited you’re basis points,

Jackson Ader

makes you. that Thank total sense. Okay,

Operator

is of from Kramm question go UBS. next Please Alex Your with ahead. the line

Alex Kramm

everyone. good Hey, evening,

particularities? down first, tough that I very still come I on Just high out retention, a quick curious, but why anything off any mean, a little again, you that’s XX.X but call bit. curious environment, couple would mean, if is a ticked just just number, ones, notice

Bill Stone

couple bulk been up that that a we the that drawn from were and it. accounts say just of I of there’s makes

Alex Kramm

updated two time, know – guide, just at guess guess the Okay. and the of maybe, left the months on same at But I these October in year. then scenarios. and the are the end with we’re I then guides. I

with is what right, range? go swing million year? What $XX range. have wide the wrong left a this could such biggest the curious, just still what Like are So, to two months factors go could in

Bill Stone

I we the chunk large quarter. and not quarter think revenue we in sign about revenue take where just chunk And could that’s and it. where a science large take we very start of could fourth scale into We the scale fourth licenses, of some licenses, very large large

Alex Kramm

That’s Okay. fair. Thanks.

Operator

of line Peter the from D.A. Davidson. Please go ahead. with is question Heckmann next Your

Peter Heckmann

afternoon. of control comment of in the did Okay, Patrick, good it the timing the type that that the questions. taking Thanks I closing contributed? think, required – was that for of revenue capita, what my unit revenue you quarter and on of,

Patrick Pedonti

Our not capita has closed.

Peter Heckmann

It’s okay. not closed,

Patrick Pedonti

hung we’re and sure up going this with some point Capita at has some not closed. to it’s other approvals, close. approvals regulatory It’s not when still

Peter Heckmann

Okay.

So, there updated is acquired guidance revenue capita in from your no ranges?

Patrick Pedonti

our in from acquisition, I previous No. Innovest last There’s really no our think, May. changes guidance.

Peter Heckmann

Got it.

of All do helpful. ongoing wealth me there recent a And just the it little DST can business? the right, reminds and an the within manager across, successes saw then gain win feel share of come the Okay. James UK the that opportunity is there, I for bit UK to St. of still the – is replatforming contract that’s use you you some

Bill Stone

Ireland of other management We we are businesses have opportunities actually, money and lot wouldn’t and of together and capabilities. of and this in managers New we into the Australia all money say packaging just but – in throughout for would a McDonald’s moment Asia. also our Europe, in say Scotland in are rest large we scale the participating and and UK

So, faster, UK to more and and Europe. a the be don’t business place chance have I and them get submit the you up partnership caught also then we a for leverage with really to slowdown opportunity is some and pandemic to but get able the great stuff great some first-class a throughout think, of that that have there’s

Peter Heckmann

a you that got maybe, over Got digits grow three opportunities, single high just or think you’re it the business talked to, can just. out breaking solutions, in couple just of quarters? you there and it, a next a little and health but is guess and called bit I it. then there four some that up wins But you’ve

Bill Stone

to able higher it even at pipeline to that. than the have be rates close We for

making question can streams optimistic what in cautiously but do. some have with the the and we healthcare then sure are of, and we that momentum I we’re in, contract, locked-in momentum about we think, could have some be coming revenue the on

Peter Heckmann

quarter. it. an right. next on update look We’ll All Got that for Thanks.

Operator

is question the next your Please of ahead. go with line Mayank from Tandon Needham.

Mayank Tandon

just have, at competition, segments noticeable portfolio shifts the of then rates been win offerings in and any you. looking Thank across for the implications pricing, your how your portfolio? Bill, trending that you various

Bill Stone

Yes.

the of add-in be then a and to products think, other and we’ve few I Black where see the that continue built wealth you strongest diamond management, areas acquired black around around Diamond that. other still want products you go in have like have assets a done pipeline. to nice to a And job have continued very that full then and and very real

Now, we in also pipeline. in-house. private We prior, the have dollars that still still had the that about XX% private it’s a administered very basis, in Mayank, lot of equity think spoken and are still opportunity a Rahul And of as equity. continues full dollars on

So, we very that’s there’s and we of business us nice to believe real going InnoTrust. sweet because deals I opportunity are really, think of the is more essence that spot related for tightness for kidding, to the retirement even into kind And get us, so. relationships. a be the execute and a of contracts the That’s are large business, the Innovest, the as are long by the

to into they’re need very cross trust, opportunity our trust RIAs We a means individuals. plans. lot and as and powerful about which InnoTrust XX of they and XX into excited Diamond get those have is and There upsell them have accounting. net worth finding we’re a you product what is high

Mayank Tandon

we that XXXX growth an early the or backend you What or recovery about say, of out, trying levels when we’re color. you of frame models recovery organic in That’s scenarios XXXX, to terms then helpful a recoveries, mean mid-XXXX that talk various levels does and when about the could XXXX? a just margin our And for weighted? laid I as recovery, these if ask

Bill Stone

Yes.

margin the manages think business. SS&C again, its I Mayank are really, levels

can some we we and times, expenses manage much spend. So, we’ve have we built many and our how as flexibility money

not we’re the about concerned as margins. So,

each to in lot them pandemic, of what’s training to earnings. see We’re hired zoom, certainly interaction we’re be We’ve sales. good not and the our crippled salespeople global don’t rest in very now and hasn’t we they after in put new to us, ideas and a it the to But have force. other concerned as but the the that has sales working not able force about sales be wind of get on and bounce the able the ability a

us you biggest that’s X, for – So and been want to medium scale, people where in administration is is and the deals, scale be sure make in to Z, where the these Y to to eye reach issue businesses. able large close fund out and

We’re such out to you a colossus really that go you and the site it and whereas us you’re lots, that breath adds work, on you from if in lots license references these of have and not to the lots the we get doing of going concerned to have we’re out and right, businesses that have take do people to trepidation. implementation, the

that’s So the real challenge with side. revenue the

Mayank Tandon

it. Bill. Thanks, Got

Operator

of Deutsche Bank. from line please the from ahead. Ashish go is question next Sabadra Your

Ashish Sabadra

like the a you quarter year, guide. and revenues – If excluding – comps? that for difficult the Patrick, Thanks. my have for organic was prior one license the from good question that one-time exclude difficult fourth been in we headwinds our taking question organic would for quarter. would growth or license Thanks comps what

Patrick Pedonti

about last think about, I think right. that’s – yes, year yes, I

about impact that’s X.X% So or so.

Ashish Sabadra

And Okay. That’s helpful. leaving…

Patrick Pedonti

impact. to X% Maybe, X%

Ashish Sabadra

you’ve Bill, impact, deal you X% million helpful. good to $XX pipeline, that’s the for obviously And a maybe, X% had about quarter, last million can if question really to $XX talked you, some events. DST pipeline you size prospect large

low was, do mode pipeline a or we new think the growth you Thanks. as question close these follow-up the back and growth as next next And about how pipeline as single-digit we year? mentioned, the prospect so think into deals, prospect DST you Can what’s the growth about, and it get year?

Bill Stone

it’s and get a opportunities, a at we the after wins ended the we and JPMorgan that to – have again, offering for at have and matter, it’s have out but we and think ICMA I indicate that competitive very it. at get nationwide, superior business,

financial people guys that executives Now, a number those I hard. business selling Kevin some leading Geli, And are with we’re we Rob under but getting in tracking, a a focused, John services we’re there of in three And very America getting we’re and and and getting selling also others, talented working – very executive. the group of who’s talented are and of Rafferty, we’re talented have North and in group fails that Stone, Mike put a Sleightholme that, getting sales we increased intensity. think

handwritten analytics where a portfolios in which of going to about their to addition XXXX the like things things stuff has we’re I that for this. of into And and embedded that like that, of and SS&C gives risk, look, gives, able optimistic mean, readable. things superior a and there’s Act, I ability gathered, think think trust states And lot productivity. I’m bending from like handle, or does there’s like, superior be optimism. lot superior speech. solution, the immediately feel, then machine InnoTrust, that’s our a and Trust I converted with being able think to I notes a that different that like So, algorithmic answer the a Well, and for that

Ashish Sabadra

congrats on good for Bill, and the quarter. thanks once again color the

Operator

is Andrew line go Citi. ahead. the Schmidt Please with next of from question Your

Andrew Schmidt

questions. Hey, guys, thanks for taking my

– over things still just pressure, question from that is the some like fourth what pulled the on like and guess, –close that. some you perspective you cycle then, guys And in start have wins get I the but seen to and behavior obviously Thanks. rates on improvement, perspective? through seems closing if the it quarter are there that past like buying into seems your quarter sales and sounds normalize. nice sales like to the a Just cycle. It there’s

Bill Stone

difficult, to a trying perspicacious everybody’s you’re is think, this, crystal little I I be is think, because, Andrew, about cloudy. Again, very ball

of or sort when is I through Zoom will preparation meetings XX% and, right? to our are of Microsoft whomever things now collaboration you all sales you our and But our know, as are is, software where remote say are tell are whatever coming WebEx, back people And meeting, from or collaboration places. preparation XX% Zoom You software. normal, of meetings some in

in in The traveling difficult Standard seems right? months, I that And the very years. – so, an it from get airplane, of And normal, remember a difficult was, business So, XXXX. a away back we to not what happened hasn’t Time. XX normal six have like February further maybe harder to in is for very done very,

think data of then be when just So, or supporting able customers. and see to our precipitous, lightness, I not and we need to pounds. methodically you as our get work to need spots true that And we teams

watchfully it’s to movement I and the a of more So, on we’re not they a going waiting, much until of watchful that, lift they’re see that. like a kind think hawk in tree, waiting, the ground right,

we’re that’s so trying And do. what to

And difficult wise. October be proposition. to that’s trying We’re in XXXX, a

Andrew Schmidt

have environment sales of guess, is makes Sure. client a virtual patterns? lot a you sort of a perspectives? virtual engagement selling just in of sense. gap That terms sort it much environment a seen from of a buying very I tenuous this in still Or

Bill Stone

it’s And virtually contract. It Well, there’s then just a too. Right? then longer, right? and takes that’s longer, done just

kind of maybe, So, Rahul, you the know, links of of kind in of those it, your has things number and kinds Rahul midst the all of could give out think, stretch I I of perspective. been a and,

Rahul Kanwar

Yes.

add to there I of signs getting people comfortable. to are are that more think that, just some

think a more of Right anything this Bill challenges some get buying I little to while things said, are than same else. – the those and time, to of their ago, to about some – solved. adjusting is the at do all So, the need like that of rate put, people but they challenges, behavior

months would happening seeing I four sign better facing. forward. environment. that’s and and than really So, maybe decisions we what it’s sure. make prospects, little And it the ago But move contracts close a we’re that are it’s nowhere maybe be is that’s, three, it for what normalized in – rate think of there’s And not, that to was

Andrew Schmidt

just prospects We on M&A this for buyback the question expect that? pipeline, then saw in terms And we should of things like there allocation. capital perspective. Understood. you Thank I a Understood. terms and And update guess, quarter, any buybacks? the in just that consistent then of

Rahul Kanwar

another Well, point, again, that’s that’s discussion another, wise, right.

Patrick now as talk plus we there, that, but LIBOR is, that [indiscernible]. So, we’ll out, buy one our pointed sit or down, in in can one month spreads back right month LIBOR we’ll

share rate cash. B term debt $X generated $X per So, in a in think year, our billion our $X.X on is I Last share in interest we cash, loan X.X%.

we’re the price, quality that fair if have we want buy like that, at rest and So, be to give split cognizant a we can going acquisition want it the to [indiscernible] we’re looks then can as wherewithal down to have we cash a and we to And we that. of that something which make we shares. back our debt do paying buying flow, now then sure also

Andrew Schmidt

comments. you Thank the Okay. much, guys. very appreciate

Operator

Blair. is Shutler ahead. Chris the from go Please from William of next line Your question

Chris Shutler

good Hi, afternoon.

the of at income a million. coming with fourth up implied quarter range. net million, $XXX $XXX looking range I’m Just

third quarter. million You did in $XXX the

the question So, income net down QX? to why would QX come from guess I is,

Patrick Pedonti

first reviews bit has in that at October typically little related the higher a and to sequential quarter also are scenario, X. employee midpoint there’s So raises on the effective of right. And revenue costs decline

then So, midpoint to down sequentially up of compensation going QX increase kind in and little that at we’re that bit. other revenues see expenses in the of to and go a

Chris Shutler

Okay.

Patrick Pedonti

think we’re – beginning than our they I still October range. $XX are to races the more that $XX in generally, So, while X, for million million modest XXXX,

to So, million million $X quarter. a $XX

Chris Shutler

And got come the hiring to Frank just back then I it. want more one Egan Okay, to time. Bill, of

the for years. company and led acquisitive effort very large, long for a growing been you’ve a obviously SS&C R&D at time You’ve

you you’re it. I’m guess, So, maybe a point I putting just finer would on clear why not brought on still mind on Frank?

Bill Stone

employees. we place, Well, XX,XXX we’re Chris, I think way upwards in SS&C of is billion, right? a Where have bigger $X.X

offices. We have XXX

countries, number teams XX XX, And used all management are acquisitions We’re over where opportunities a There’s we’ve to of stuff those buying world. done the too. right?

all people try still the I to still think I get Rahul think, to we developers That’s cool. talent, or incoming bunch really acquisitions, mother, And a got That’s many buy, do, how as really full have buy right? France, place. it then sales you couldn’t We sell make high the we the Asia, science be a right? things to to level of lot building are have, prospects management over that call. in the in you that to our business. enough development – a as you the to right. lead on all help right. We sure in over projects. get people have the That’s our get right try Germany we be of clients people and we’re business, able opportunities to or your of careful, thinks, time project, and mean, jobs, don’t the and States, have going to help We Patrick and the force manage So United try We what and to business. to the numbers the we and people have the we might ability have and in Mexico, really of right

go chance have the informed right? some job to finance first not Frank’s I’m cadence far opportunities think of feel power, have to you’re to many business Joe it. when I’m I out going how going it’s is unit so job XX getting might world. managers we’re his feel I thing? discipline, So and going a the you have target to whole negotiating going for a We more are well, this? not. How help legal, and like So, the through need around to in it’s veto this like to And informed, a understand, Patrick days, How so Frank make good? you’re keep about that

Chris Shutler

All so right. Thanks Understood. much.

Operator

Your Please Surinder Jeffries. Thind of next from line ahead. with question is go a

Surinder Thind

Thank you.

Or, clarification on for me set on forward bit the little But think on basis, purchases opportunity we Can help tradeoff capital I understand that’s about a larger the the understand an the up were anticipating. than one from between my X.X% point, you you. that allocation. perspective paying down maybe some the that Just doing a share commentary been just of From a allowing to repurchases a debt? effectively as obviously versus but perspective, go has was in obviously leverage even free with outsider’s challenges stuff. maybe of yourself and just increase I this debt at maybe is flexibility ratios terms deal? bigger

Bill Stone

Well, really And question. be try that’s wise. a good I think, hey to that’s Surinder you where

paying $XXX intention any and That shares. that’s don’t You $XXX million authorizations buying don’t no buy upon. to on worth it fact back mean back we out that by $XXX just why million at million send on have know, I acting $XXX going that – But spent you’re million We’ve the on faster, debt to buy to we don’t we that economically that and been time we’re of generating when we’re same we right releases we on And that well but compelling, we down aren’t offered taken less we’re $X will. we’re more still press doesn’t [indiscernible] valuable debt is that’s that think have to share that shares have in we spent the haven’t down and that But a your market not leverage prefers if a way pretty cash, prices a you. assistance disciplined, pay philosophy if less we see the down we pay we that. did. now tenant many changed our and – debt general focused, point debt

First, acquisition. our good is target

leverage. we is lower Second want

But of cash, stock. And lots charges we’re Third public it we it stock markets million. a back you in of we our not value our think workforce, is disciplined. which technology our lot go when is. of ambitious, appears $X to we of setting got deals, with we $XXX we But setting revenue believe big is, we’re when, and private we I undervalued, in XXXX, be generating billion got great a value stock when million, charge the of did with with to in coming of a in out, we’re $XX great went XXXX, can went Carlyle, XXXX, new

in DNA, it’s keep history It’s a will did. that’s who believe what we have we So, because our and are. growing, we of I growing,

Innovest, people all to join that We bought we have Wallace other Mina [indiscernible] us, like their that us kinds different company. entrepreneurs with are still of that have

about of sector. we I and group defense where a products that’s So how and services we’re first and people. diverse we in competitors think a our the perform excited group great, sit, of just vis-à-vis And

Surinder Thind

trying now, or maybe color this this point, more the what on as be door with Bill. with clients – one seeing there’s a to just to of how point? appreciated? terms kind to just with but And back follow living might about environment the, in regardless business things question looking gets existing of deals new of is be hesitant your not much changed quarter new really helpful, the it there’s maybe versus of earlier comfortable opportunity where there you’re win at just quick clients very sign to bring where the about clients That’s maybe time? those a kind with in ultimately are this get maybe any sales the that that has place, process of that bigger is we in normalized of you’re would of new And the or think at the mix. coronavirus sales And How the It’s terms like. it’s

Bill Stone

obviously, our right, more and and in I more As think obviously, sell, current clients, opportunity to to the our so, we get grow. our XX,XXX have continues base bigger, we people cross in upsell, now, are client X,XXX

guess, States. United same would transaction States transaction don’t healthcare, $XXX And it Now, know be outside we’re in processing, might what revenue my outside. million time, estimation of and really $X.X billion United in $XXX States, I United the processing in in in the [indiscernible] I and million is

$X.X $XXX take X.X%. by we you you million, billion, represent and divided So, if

to or that in we at that, we it. think And have we McDonald had So a ones, right, it question we ICMA and the a other to well. Brooks have or And best nationwide right. opportunity, right Morgan had to to do able right have neat have or, price a time with the have being right have products meet or the a it’s at had then the right there’s Really have a have need, JP need, a place, and need, you then of at I plenty meet the need, of do very need general, solution. and a to

Surinder Thind

Bill. you, Thank

Operator

question final Sandler. comes with And Piper of from Love line Crispin the ahead. go your Please

Crispin Love

Thanks for taking questions. my

last underneath that those by was I assets redemption that over are of monthly pandemic outflows? the the are seems some funds mostly there’s several months. the unaffected raising the interesting surface wondering seeing of anything So versus if on be the just terms going types data in to

Bill Stone

flows. to earlier, continuing as see see mentioned that based to broad we’re I We’re continuing

assets, private the strategies and we’re seeing hedge fund funds, really into, raise funds. different different some of So, to have equity equity, funds, parts flows all assets tended of real it’s private within larger hedge business, the whether and our real

direction. focused is hedge but so maybe bit market, it’s fund little to that pretty it within the credit that funds And do well, And the skewed in continue widespread. pretty a

Crispin Love

you. That’s Thank helpful.

Operator

there closing you And at Mr. Stone, have any are do remarks? time. this no further questions

Bill Stone

appreciate I appreciate your there. hard do for our would again, we just our everybody we on very being you. interest Bye. always, work shareholders as Stay and And, company. in safe. Thank

Operator

today’s call. Thank this conference conclude you. does And

You may disconnect. now

SS&C Technologies (SSNC) 28 Oct 202020 Q3 Earnings call transcript