SSNC - Earnings call transcript Q1 2024 | SS&C Technologies Holdings, Inc.

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Operator

Thank you for standing by. My name is Christa, and I will be your conference operator today. At this time, I would like to welcome everyone to the SS&C Technologies First Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Justine Stone, Head of Investor Relations.

Justin, you may begin your conference.

Justine Stone

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

we and get review to safe financial constitute Litigation we prospects, note including started, statement. today about forward-looking the we provide, the the various the harbor remarks XXXX. Before the make harbor purposes statements future Please Private need Act we Reform safe that under expectations, of for plans provisions outlook Securities of

Actual those important file report XX-K which statements factors, and forward-looking the differ accessed our Risk results various discussed on as Form on SEC website. our those of may annual our in materially indicated by with can recent on including of is also Factors from a be result section these most

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

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

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

to now turn the I will call Bill. over

Bill Stone

Justine, Thanks, and thanks, everyone.

results XX.X%. for million for came in per were $XXX.X margin $X.XX, share a of Our [ Adjusted and earnings diluted EBITDA and $X.XXX quarter, are was QX, revenue quarter record adjusted EBITDA record X.X% XX.X% first adjusted million at ] our our up the consolidated high increase.

driven first by Ops the was retirement adviser was businesses. adjusted strength acceleration Intralinks first organic alternatives, quarter Our growth revenue and X.X%, revenue in our quarter

all and Financial growth which X.X%, revenue. software-enabled revenue rate Services was recurring Our services maintenance for includes

bringing was X.XXx. ratio months X XXXX, paid million. We debt net revenue X.XXx and secured $XX.X $XXX.X expenses For leverage leverage to cash net operating our in to XX, million operating QX in our ratio ended down XXXX, from from the March

back of workforce bought basis be an in initiative. deployment XXX,XXX average A price study go Prism We million SS&C in figure on year-over-year point digital X SS&C client well. XXX $XX.X across this to our internal at The Blue Blue $XX.XX. saw continues shares increase recent for of of large attributable part return a years. Prism margin average an XXX% investment EBITDA can found over Forrester The to

include growth, avoidance business The and retention. productivity and benefits cost experience key improved compliance improved employee

technology, results As one of Prism the these firsthand. users largest we experiencing Blue of are

at our Fairmont The X-day this energy [ U.K. the we posting delivery the term universal received which Earlier over in held in XXX Windsor positive we've was was evident over month, first conference clients. event feedback. a held ], and enthusiasm

quarter turn the I'll to the more detail. call now Rahul in over discuss to

Rahul Kanwar

Thanks, Bill.

technologies. software wealth software Geiger positively impacts software wealth companies investment business products ]. combined Our we geared with business retirement banks, managers. Steve notable allows us our strength We Investment align several past This . investment wealth quarter and led to change strong I&IM and purchasing quarter, and a Karen insurance had and renewal in or [ by our Management long-term in asset Levin businesses. our and of technologies saw decisions and improvement and services toward and in Institutional Intralinks, with QX, which This

process. enable to a from are objectives and sales advantage enterprise consistent Our to benefit accelerated solutions take of marketing scale innovation, deliver and

greater resources. scale feedback distribution global in seamless solutions and We a to very combined advantage clients our has customers of again, and our deliver our experience to retirement investor on business Initial once take and order also been from with these customer shared changes positive.

Prism through and of and and strengthening Blue base cost use offering our optimizing automation on progress to AI continue other We our technologies.

requests support each capabilities Services notable year million protocols. processes notices developed advanced through a over loan other automation Fund internally that X language models interaction include intelligent our business, enabling our of variety and and In large customer

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

Brian Schell

and Rahul, good everyone. Thanks, day,

in of revenues up in investments per $X.XX quarterly in up of received Bill As EPS and press X.X%, income record of noted call, diluted were million results Adjusted and was XX.X% and the EPS includes our our as $XXX share adjusted release, reflect on $X.XXX versus adjusted adjusted $X.XX. a QX earnings. And from XX excluded previously billion, earnings noted diluted net $X.XX, diluted 'XX. QX billion, income GAAP earlier $X.XX our dividend revenues

EPS guidance dividend will include forward, Going diluted reported adjusted and income.

from and favorable adjusted exchange by impact incremental revenue $X $X alternatives $XX contributed million Acquisitions driven The quarterly and million. increase million of was Intralinks. revenue foreign a primarily of contributions had

was a result, basis X.X%. As revenue currency constant on growth a adjusted organic

core and increased million X.X% $XX excluding Our constant acquisitions a currency on basis. expenses or

and of EBITDA improvement an management. in million for 'XX, 'XX. senior in was and consolidated of X.XX% increase points. of credit compared $XXX growth SS&C, impact the $X The for expansion Note attributable the $XXX XX.X% quarter Adjusted adjusted facility, basis positive revenue, increase margin XXX in from million average earnings the of disciplined quarter EBITDA to to a reflects interest million notes, of margin XXX X.XX% XX.X% of was the expense an X revenue defined expense first Net including million, year-over-year point 'XX. QX rate or or the X.X% both quarter QX amended release interest the the basis from was first in the of reflects The 'XX $XX

net XX%. the a for from $XXX.X income, share million average the repurchase as price 'XX. count stock to up quarterly income in million activity, $XXX QX in rate for earnings The $XXX the EPS X net adjusted higher release Adjusted the drove was diluted Note share Despite used $X.XX. tax million was was diluted defined adjusted effective

$X.X DomaniRx in net SS&C billion agreement, was in and defined debt. billion at held ended as the as first excludes and cash of quarter credit in with and XX. $XXX of gross equivalents $XX $X.X cash million SS&C's cash cash debt, our equivalents which million March

billion for XXXX. $X.XXX was used March XX-month covenant as compliance consolidated of Our last EBITDA

debt on X.XXx, leverage at billion, of $X.X Based net our X.XXx year-end. was from ratio approximately total down

$X.X XX. of currently future. loan XXXX, to our to X.XXx The looking Our go near matures of market secured evaluating are term leverage options, April billion ratio we the in debt in and financing was March our as B

the results. and look assume range be forward most focused the remain of we the and year will to note will we second the client rates remainder to quarter service As our in respect with recent of that guidance, that retention on

and We our through a leverage marketing, to controlling sales will business to investing in the future disciplined our improve approach expenses increasing of to of scale R&D aligning manage margins take us. and advantage opportunities productivity variable expenses cost with efficiency, and to operating ensure by to growth continue the effectively our ahead

will in current and not levels, refinancing exchange levels at to rate to late our be with but Specifically, market our we assumed have short-term subject current interest the will potential varying materially of XXXX remain expense of foreign declines at rates rate obviously interest a currency conditions. impact couple is

unchanged a share XX% rate prior adjusted repurchases to is guidance basis, remain reduction. and on tax which guidance. X.X% similar of from of capital an GAAP unchanged is X.X% historical which prior revenues, approximately to weighting and at from debt expenditures the

deferred $XXX $XXX to $X.XXX range 'XX, $X.XX. and million; amortization million, billion, in of shares of quarter range range original of issue to the costs diluted the discount $XXX and $XXX financing million $XXX of diluted adjusted of the to in in range million the EPS Interest billion $X.XX net to of range to income in For million. million adjusted expect the expense, we of be $X.XXX excluding the to second in revenue $XXX

to range in the to $X.XXX $XXX diluted be million, For raising range $X.XX we guidance range the full $X.XX million, range year from billion the to expect in million of range of operating to in billion, cash $X the XXXX, billion. billion, $XXX to net by in $X.XXX we adjusted $X.XX billion EPS be are $X.XXX revenue to adjusted revenue of $X.XXX of and activities the $X.XXX diluted in to and and of the shares income

quarter results expected cost reflects also Our remainder and the positive disciplined our expansion a of strong outlook year. the for our continued in reflects course guidance margin of the the That approach first with XXXX over year. updated the

over for Now I'd to back to turn like it comments. Bill final

Bill Stone

opportunity to on years dedication and our stand and this from $XXX will not been Mike Brian. XX growth billion. We He's over to Daniels his for for I'd has in future director million board SS&C for long-term support. reelection. been adviser a during his like to an Mike thank seeing time this endeavors. revenue $X.X well him Thanks, over in important wish take

we strong a open to XXXX, momentum. start to this questions. it maintain had up and are working to I'd to now like We've hard

Operator

Dan [Operator Instructions] Perlin from first RBC line the question from Markets. Capital of Your comes

Daniel Perlin

we're points, if kind and wondering versus motion go-to-market some execution of look some is segments. much go-to-market improvement They of to maybe out question of current for parse product I'm kind given organic and strategy continue sales these kind on just end just up, or going of Bill, business help kind the so you this incremental maybe And other how the trends. Just fine-tune improve forward maybe and in a of improvement demand expected in can some quick overall of the that's environment changes picking or realignment like this of here. maybe of they changing maybe growth these

Bill Stone

think, nice Dan, and hear you. to Well, from I

clients, number Black we've in We getting that's our and development have a that traction. Particularly work trust had different done an awful of our solutions and lot product, Diamond. new to our married of we've our OmniTrust for businesses, created

money wealth I our opportunity things can number as has has And their and we've move also to a other which improved. and done us. And advisers of to So improved our that's execution clients the been to been as our implementations also important start delivery where their children a trust, now big others. on clients is for think also handle

the winning brighter our deals. So winning. go some the pricing, things, they still of live, think We're we're I discipline financial the picture as still look as combination we will I year. And and our think on more through those go big

Daniel Perlin

That's Yes. great.

quarter The income. quick that's $X.XX the the a follow-up. Just to dividend related in

things. was guidance you obviously in be the gave the a adjusted. and $X.XX I for of guess Just of going couple forward originally to contemplated One, is going that original XXXX you're kind

in if of that through what's are? mechanics might So just Sorry. me what missed it just now? can included it And the what's walk you maybe have I wasn't

Brian Schell

of part this not $X.XX the -- Brian. The original was there No, was Yes. guidance. Thanks. is

As see investments look year, of through included you purposes, the it you'll appropriate these at included the EPS components were adjusted earnings, felt last as presentation it we year's be appropriate actually well. for we numbers to we look if last like in

you on an it see can basis. So apples-to-apples

visibility numbers. So the it's think bring basis, on and any it's or can to clear a try to we we there, appropriate go-forward that

Daniel Perlin

want just $X.XX using quarter I be skis not Into the is to my comparison of sure adjusting . adjusting. kind we I'm rate make over over adjusted, should was or run or So a getting under the . year-over-year but

Brian Schell

it The for year I the say, the quarter. say contribution of next actually rounds overall to year, the to probably remainder the is another for quarters. the big probably $X.XX X I'd just first would

how we given not our rest a items just it's it interest we huge results. be So and relevant our reflected was various adjusted income the thought overall to included adjustment but investments in of

Daniel Perlin

Got it. And X $X.XX remaining per the to just quarters, for be quarter. . $X.XX clear, not it's

Brian Schell

Correct.

Operator

question from Citi. the Schmidt line of next Your from comes Andrew

Andrew Schmidt

Brian. Bill,

revenue So outlook. upper a looks came It the the down. on quick end like question

that growth the of and year. into organic for drove might the how the what curious tie that remainder Just expectations

Rahul Kanwar

we remainder that I of at the thing only at happened actually the were we're Andrew, -- start. as about the as least the year think optimistic

ranges thing tighter, get right? I only think precise, closer a all that's more is really the as get the happens that's we get little we that happening. So

gave is guidance. it higher midpoint than the time actually we was the think I last

Andrew Schmidt

we Perfect. the the talk Got questions. maybe where a on we Obviously, of could growth. about it. organic then get And visibility lot [indiscernible] just

have characterize could versus versus the you the how build growth that in for will, moderate you and opportunities organic you up of whether is kind sort queue, you If there? if low you of what high how of rank sort would

Bill Stone

as as probably kind be of us. cautiously right stronger people, of for that to say most cautiously We XX, optimistic for were tend optimistic wildly than accountants now, optimistic. would I April Yes.

quarter gets already natural we some think gets have of first the But already that a have sometimes lots and conservatism we in, opportunities. sold we But the that's yet. we of that cash business -- best it's think the we've we recognized coming us. sold have lot got of not I of So the in

Andrew Schmidt

very Perfect, constructive.

Operator

comes Your from from next question Alexei JPMorgan. Gogolev

Alexei Gogolev

margin divisions upside is to And . terms of perhaps, each What combination for in the room on of elaborate you could those Bill, better opportunity was does discussed? from of that any there cross-sell make that investments R&D other? divisions? they into mean the sure speak that to products combination

Bill Stone

We people. Yes. That's a great XX,XXX up we're question. that feel

we deliver XX XXX offices services. products and XXX in have over XXX We countries

And teams go-to-market all also stuff, we those [ and large those Steve take segments. have most for effective operating create be ways whether think, put the large products implementation ], and type is is asset Geiger then business. products which much all we large-scale for create for then can those the we a services of concentrate it marketing the Levent really in you different apt and sales, also X service, are units and of Karen create So to to products, and able deliver more it's new that and leverage and that to each of in when asset corporate that under all management business have, products managers like products under strategies services more new instance,

And put it and return distribution when with global same global the or true thing we and the the think I business. is in distribution took we investor

I again, about We pretty get in optimistic as we're chances cross-sell, of some results think Rahul we better the said we're, scale, and to remarks. some some get we that. We his we get get leverage, leverage. get

Alexei Gogolev

the a And the question division. in Alternatives also the was about within markets components quick ask Brian, of could you quarter? private What I growth

Brian Schell

XX%-ish market number private. side, private was The of the

Operator

the Davidson. question line of Heckmann from comes D.A. next from Peter Your

Peter Heckmann

don't but have you I of don't kind we on numbers was segment. conversions I explanation, Healthcare have update your of the health to on related at down quarter? or us Change see is occurred up business on the progress year-to-date. one that would affected curious, and think several hubs based ahead I an for really any segment of initial questions One the Could that then DomaniRx the Healthcare, the that you health all care curious And processing I'm year? And which of if the prescription expect malware revenue-wise lastly, care attack. in be the give

Bill Stone

Yes, in the insightful, been to quarter, Change revenue talk you'll could I supplier you a in chunks. to pretty Yes, start in Pete, large we'll of that that's nice seeing Healthcare has us second start somewhat

we've So delivering clients, big number pretty We're large already including we're -- manufacturers. the some have already -- a scale of of sold we drug it.

great that's can no So we're we're get the DomaniRx client go been of and defects. the go We optimistic throughout DomaniRx we next have over next with X about held feedback, months. to this. X the about at in optimistic where It's lots we almost has we -- upgrade our production, X going get on pipeline. or business and new months,

Peter Heckmann

Great. Great.

terms the XXXX? in revenue just the like can growth positive so you we year? revenue And be growth maybe this back Or get to do of more thinking year, for we think

Bill Stone

do be that that be we I one positive lots to the in of And think $XXX somewhere probably care $XXX we'll revenue had. million about is million great whether this And vicinity. health thing or year. there's

good shape. So in pretty to you you're that, you if . execute. you're just in And need do go

Operator

of next line Blair. Schmitt William from Your question the comes Jeff from

Jeffrey Schmitt

in above this organic how And the of kind your pricing impact quarter much growth still did you last? of getting in price any in normal Are increases businesses?

Rahul Kanwar

Yes.

out think what Bill the able increases disciplined, I as do is more basis. about as to automatic this and more we've an also process, getting in we're been put methodical on contracts the in price pointed

much as not it's expects of everybody them. and an effort So

$XXX about we million think in So we got in XXXX, price.

but bit constitutes a of would XXXX science things, what versus year. the Our expect There's kinds and expectation and is art about for upsell as those renewals for similar with a we that's probably number. price much little as of the what

Jeffrey Schmitt

or think And it X% the quarter. was growth, in on organic I just X% back Okay. then alternatives

slowed. mentioned private You the markets

there It drove getting sort over dropped XX%. thought what -- of growing but or that been you that What I I slowdown? you've XX%. were slowdown? to down drove increases mean were think of year, X% X% getting think I I you last sort price

Bill Stone

private you of markets, would using. I private. talk Yes. When number different that to flavors we're that [indiscernible] we all make sure of that's a understand

credit it estate probably real when quite our grow So has been in quarter than out you credit private private to and then significantly first maybe XX%. business, more with it maybe strong. equity -- the XX%. But put averages all grew But private

Rahul Kanwar

to if at Yes. the at you'll is look change And trillion. you see we're $X.X maybe another look it AUA way at

areas X growing the nothing So fund underlying it's our last it as was did better is those not least before. growth we there's than fact, really in of where think of of And a hedge growing year. any as at as it well matter business

Operator

Your next from the Stanley. question comes James line Faucette from Morgan of

James Faucette

from out capital capacity like look targeting? to to deal a leverage. we pipeline should clearly called with wanted about what And quarter. here kind check M&A some Just assist senior assets There's allocation for of pipeline. does And perspective hire last what and M&A on you quickly think right a now? the you

Bill Stone

Well, differently today. are I don't than think anywhere we're looking where we

think I have say you of as at could for would us so targets. others, mark would well. been number target mark those Stanley advised And UBS companies a [indiscernible] a asset and And Morgan of guys and be types I

I fund things those. again, that pretty we continue X buy I think opportunities think that And I do and we've done administration, think in or lift-outs to still and there's we X are probably would quickly. buy

James Faucette

And I the it. of to technology-related commentary. transfer kind wanted ask to Appreciate question, that a then agency especially Got business. tied

agency public should look anecdotal to costs. to Some think business thinking agency their asset speaking of algo down medium long-term about more managers talked the are and transcripts transfer and transfer at impacts Or the to how other their more be ability we in of broadly? nature? you we tokenization Do to commentary or of your drive that's growth

Rahul Kanwar

collaborating a little couple a of piloting certain that things have on clients now, significant but of even it with it format, and we're seeing -- it's want we view in impact clients we're a as not what of we're a -- Most that. probably that it's early to too a they do is our significant tokenized business. does So seeing trend. not to bit right of honestly, And kind have any

Bill Stone

James, thing is think, and done I transfer the that And we and alternatives other capabilities agency what our administration. our have take is

and those you selling them not bundle. retail the you or at, other. selling We're one combine we're as a things now X selling we're we So not

taking somebody of your So want if you transfer to want our not you agency, just business. administration we're else give that

So to sure superior are making we that we product a that then have and beneficiaries the discipline that it. when superior is sell and ability that that technology

been So well. that's us . market as for a pretty good team

Operator

[Operator Instructions] from Your of question from comes next the Kevin line McVay UBS.

Kevin McVeigh

on increase. congratulations and Intralinks to the that Anything big results. the mean terrific was growth I Anything a obviously really it out call was big, really, drove that? hit call out? to XX%, Great

Bill Stone

able think to have data and They it's I be data help to search they innovate really on a continue they they really their business. that. so mean redacting agent in do it smart AI rooms, the get that primary and quickly. data add virtual into brought to out searches, be I you to ways important it those to collate much able so paper to much in room

been been it's and So very effective, that's pretty resilient.

down So that. and for all we're even we don't I of optimistic see things XXXX, think slowing after

Kevin McVeigh

obviously, growth math percentage the quarters. Anything been been it And seems increase Bill. almost double then increased couple incremental looks nice there? market the hasn't and to That's AUA, it super X% last sequentially great sequentially versus right, over there's a some year flat call Because it and there. out helpful, real of last like it sequentially just like my

Rahul Kanwar

winning really we of markets, broad-based said, new private there. but in our benefit we funds, pretty and hedge for across did we've deals alternatives, some a been clients continues of as all There's saw be right? the number just a us, to growth strong also the added Bill of number of see benefit, market So

are But is So positive. the the funds we overall, different always correlate trend revenue yields and guidance pretty AUA on win. the doesn't exactly because with of assets depending

Operator

to for concludes Bill That the question-and-answer remarks. turn back our session. over I closing call

Bill Stone

the year. Again, you feel quarter we the and all recognize first XX% of being that's today. on of good the we about appreciate call Again,

still we've it. at got hard and do, we're work So to

appreciate XX So in we you and the support see days.

Operator

conference today's participation, your for concludes This Thank you call. you now and disconnect. may

SS&C Technologies (SSNC) 25 Apr 242024 Q1 Earnings call transcript