SSNC - Earnings call transcript Q4 2024 | SS&C Technologies Holdings, Inc.

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Operator

Good afternoon. My name is John, and I will be your conference operator today. At this time, I would like to welcome everyone to the SS&C Technologies Fourth Quarter and Full year 2024 Earnings Call. [Operator Instructions] I would now like to turn the call over to [indiscernible], Investor Relations.

You may now begin your conference.

Unknown Executive

for Earnings at Call. you full QX thank XXXX year and joining our us and Welcome, I'm Investor [indiscernible], Relations at SS&C Technologies. is President Officer; today Officer; Chief me Bill and Chairman With Chief Financial Rahul Officer. Kanwar, Brian and and Operating Chief Schell, our Stone, Executive

started, we statement. get the harbor need we Before review to safe

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

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

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

Bill Stone

in daughter is who she's my Shauna [ now maybe she to listening Investor grandson leave, team welcome Shauna my I'm days ], ] I Justine, steps the [ in, and old. Relations want maternity XX sure with Thanks, to as who's on everyone. welcome, while

record quarter fourth of adjusted revenue up a $X.XXX for quarterly Anyway, we including X.X%. strong million several ], results [ as records, set our were

X.X%. with consolidated adjusted per of $XXX.X quarterly set share up adjusted and diluted million, EBITDA $X.XX up Our XX.X% earnings earnings also records of

consolidated adjusted margin quarterly Our EBITDA XX.X%. was

wealth quarter technology continued fourth and growth businesses. systems Global revenue Performance our driven and services investment adjusted X%. was -- by was our business businesses, Distribution organic Our GlobeOp, in strength Investor

with GlobeOp the focused Diamond growth and agency ] to strength experienced outperform large business in saw software new volumes, client services. due like GIDS [ its continued growth wealth and non-transfer Black in

Additionally, quarter the finished Health deals QX the QX. that expectations above pushed business X with into were from

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

activities cash $XXX.X quarter million, up QX was from 'XX. Fourth operating XX.X% from

percentage an X.X was $XXX we million of million back share. $XX.XX for Our and cash XXX%, bought conversion shares at flow average price per

continue absent We high-quality the are repurchases share capital, our use best of acquisition. accretive to believe

the with December, expect Australia. announced agreement and to in contract in we occur Australia early an to lift a services Financial initial final out Insignia strategic We're Insignia the administrative in of year. member this superannuation In second of half within stages out deliver lift members in team

over market more to XX discuss about bullish quarter of fund accounts. it will now million a where are I superannuation Australia, Rahul share X% in have our We in the detail. turn we opportunity to the

Rahul Kanwar

another had revenue reflecting organic our of strong We Bill. Thanks, underlying the quarter growth strength of X%, business. with

a Wealth accounting, Diamond business some We reconciliation investment to and capabilities Technologies X.X% year development quarter. management trading mid-teens. growing Black milestones. highlights. the efforts and Aloha development in into the for industry, modernized the In team. of and Investment merge Turning Platform grew The the Genesis Wealth had for is Genesis

and opportunity the we technological new deal in $XX markets many business industry saw to see for solid XXXX, Intralinks year. count in bookings growth deal our X%. GlobeOp record wins business, XXXX, and Administration of continued in due contributing revenue million organic a QX additional retail Battea by advancements growth. and for length [indiscernible] also offering. Fund to driven Our an alternatives revenue quarter private trends, In was greater

had Distribution another and wins. and to the it addition over through Solutions in I'll brought Investor in Global new strong now Our to our greater quarter turn to Brian business business largest financials. run revenue clients at

Brian Schell

everyone. Thanks, Rahul, and good day,

As noted reflect GAAP $XXX Net $X.XX. release, billion. our per and income of revenues in $X.XX press 'XX of our QX earnings of million diluted results share

billion, The increase of 'XX revenues results was $XXX Our adjusted X.X% primarily $X.XX, include million of over diluted over revenue EPS by Intralinks record from a and GIDS non-GAAP 'XX. QX the over GlobeOp, of XX.X% record businesses. adjusted contributions adjusted $X.XXX of revenue an and 'XX increase QX driven incremental increase QX

contributed approximately of had The foreign $XX Battea acquisition and exchange $X million. impact million of a favorable

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

an increased on or X.X% incentive, from currency million increase expenses expenses acquisitions million, or adjusted million QX wages. Our the was driver basis. in revenue, X.X% XX.X% EBITDA $XXX or which Adjusted $XX and primary consolidated The excludes constant increase a and compensation, of 'XX. of $XX of increased core was commissions an

margin up compared On adjusted a QX the XXX.X 'XX. consolidated Net increase expense diluted for diluted share interest at the share of QX of resulted increase of in was decrease an $X.XXX million year. X.X%, adjusted up 'XX was to an from of $XXX million, was average income 'XX. last $X million the in full billion, XX.X%, this and $XXX improvement drove price increase net of EPS million, quarter XXX.X million XX.X% a or XX Adjusted of $X.XX, EBITDA million basis, year the count An XX.X%. a was from basis $XXX fourth points to

make continued appropriate has tax tax adjusted the consistent looked closely we with it and to to more our several years. As performance Bill to at We ago, strategically mentioned rate. is way for have our with financial changes what continue quarters our which peers. several rate we XX% revised believe rate our and evaluate represents evaluate been at rate, the effective The is how aligns more we

jurisdictions. deductions non-GAAP XXXX by tax full our related tax planning effective equity XXXX. This year prudent of and our business and domestically strategy in to mix the our rate of change revised awards, implementation increased we've to adjusted increases attributable approximately EPS reported result, new and earnings internationally $X.XX effective to XX.X%, a As in rate

pursuing We additional benefits will continue to going forward. tax appropriate realize strategies

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

Our $X.X last XX debt Based total of used $X.X on for ratio months was leverage billion, covenant EBITDA compliance approximately billion. was X.XXx. net our consolidated

expenses by in focus and rates growth assume marketing, and will first a XXXX our create R&D with take to opportunities. recent the will to ensure most improve in through year quarter effectively the As variable controlling, that efficiency, client to full we leverage productivity range approach expenses respect note results. continue of business to on remain the service retention manage to to capacity, forward increasing our investing with guidance, and and look continue that to operating of We'll cost-disciplined sales aligning scale our and our advantage margins, and earnings revenue future we

evaluate strategy we we year tax anticipate be current assumed to remain And to to previously at rates as we indicated, tax full adjusted going continue to Specifically, and interest forward. our XX% will foreign rate our levels. XX%. We have currency

changes results X.X% and our of sake rate using is be XXXX market actual with for versus the of adjusted reduction, subject weighting financing stronger and to debt release needs. XXXX, adjusted in results share we X.X% the expenditures we to guidance lower revenues, As results, will or consistent in quarterly to to tax comparability. Capital display EPS which repurchases XXXX a conditions

shares amortization of in and in cost in be excluding to range For to $X.XX range deferred of billion $XXX $XXX $X.XXX $XXX $XXX quarter issue revenue in diluted million income to million range in to revenue Interest range XXX.X million, [ XXX.X first the the original of EPS the million Adjusted ] we adjusted of to to range of midpoint. million. billion X% million the $X.XX. of growth [indiscernible] net and and expect $X.XXX 'XX, discount the at the expense organic the of diluted

the be we billion. $X.XXX XXXX, the in the shares For in range X% $X.XXX of the $X.XXX in of at to to Diluted billion Adjusted income billion revenue range growth expect midpoint. $X.XXX year and organic of to revenue in to full the million be the million million, diluted in range $X.XXX adjusted the to to EPS of XXX.X Bill. XX $X. $X.XX activities to rate to to now of range $X.XXX XXX.X back operating from And billion cash and billion. net

Bill Stone

now I'll record and our revenues, lot it and out fourth Thanks, record with amount flows to a repurchases. plans carrying up of cash a shareholder and long-term had execute growth a we're investment Brian. share excited to earnings, questions. quarter, We XXXX, deliver strong into to on of record closed a momentum value. We XXXX on for record record open

Operator

Jeff from Schmitt the [Operator William with question first Instructions] of Your comes Blair. line

Jeffrey Schmitt

us you on the Healthcare business, look the In provide does 'XX? the in with could tailwind more gone. clearly, details pipeline client And has the how quarter? for wins But

Bill Stone

headwinds meant are you gone? Hopefully,

Jeffrey Schmitt

That's right, That's headwind. right.

Bill Stone

health big lot I it's and hate -- QX that revenues It's couple deals confused of early. improved big license won We a really deliberate huge a -- get QX care have be with. that great making and technology, in pipelines, progress to there. -- to health tend still great But this of we we companies have their have companies, care very have can we some in some they and purchases. some and we're we momentum

lot of it a enormous companies. opportunity to health basis is be a -- these difficult on -- and I care XX-day really that So we think on project health able care have in to insurance

too our far. too prudent out conservative, stick we to not So neck we not try as try and to be and

optimistic So longer-term very we're basis. optimistic and we're a on

Jeffrey Schmitt

with be? provide then the And think on And revenue efforts update an how that with opportunity you you big Battea? could Great. do us could cross-selling

Bill Stone

I with XX think clients. them. our already XX of we current that XX XX, others. have believe -- we closed opportunities have we have active I or somewhere currently XX opportunities

I be a read some lawsuits action stuff industry large pretty And in it class have the in says doubled XXXX. so I opportunity. that think could

tend So be opportunity would us. for that to

grow double at high-single the to digits. low And to we're looking business

it to revenue. million, be in XXXX should, upwards And million $XXX in so $XXX

Operator

JPMorgan. Alexei the with Your next line question Gogolev comes from of

Alexei Gogolev

It with Hi, if the the what earlier from there was I surprises Bill. you expected? some provided us you any guidance, wondering prepared the than But remarks, deals maybe X% said on were midpoint when based perhaps below in organic. other closed fourth expectations there XQ and environment demand in the quarter growth like sounds Three organic or XQ. at slipped ago, quarter, delivered better you that for around some X% was the were into that deals months

Bill Stone

of Alexei, the than business pretty expected. we large very number And was businesses well. couple close the I think maybe Healthcare the we a rates bit we opportunities that deals. as on of performed better brought the license had I the business, little think And in a also a said,

I So strong. was think start cylinders, of the looks expected. the overall, a number than little when a we stronger on business And pretty things whole hitting business

Alexei Gogolev

have within the Do reporting corporate Perfect. had where requirements the long European as And to you business term chance cut team by with or Commission your team business? of also, sort by almost of the Rahul to the heading? a risk have for a maybe is regulation decision kind what to rest consider and -- directionally, regulatory X/X. recent or you with the around the view industry And deregulation filing we of do

Bill Stone

the for the takes be make they we on our do. all we than regulation? them overregulated. by grow, we think better helping of grow course, kind with regulation grow, to us. of money of stuff. much prefer Of Alexei, there and would faster to the faster some are But And they puts the I Do this clients, there's them less

Operator

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

Daniel Perlin

the the organic you that's at X% 'XX. and XX a months. products on growth to in the to out to just grandchild, I'm kind that the if for past a you've trying good Congrats over and invested have starting organic to the could midpoint cycle, the -- XX obviously quarter in of a wanted investment taking solutions I on I building terms for understand blocks in spend growth. Bill. obviously your And play moment through lot of

just positive. care some is of there that? levels. deals. you a like health But at maybe -- view the want turned And your components sustainable there's to know your on seems get to thoughts to more be I it like lot just and what those the I And kind key lumpiness to it's license said, going

Bill Stone

of provide SS&C their grow lumpy. tends we portfolios around are to business, been and more Yes. I and while, heavily we services Dan, understand of mean, going large-scale towards you you've live. when of the accounts and more for more as weighted When are start then licenses, it their bringing it's a more more we in that more services pretty and

going X, can quarters. $XX $X to client million have that's year a million us start and $XX $X it a $XX million we and and X, then $X for ramp million, So X quarter might million and pay at up million $XX to million. to million it's doesn't a $X It

a so it's of And that kind business.

-- footprint to were ago, $XXX X, we around increasingly sales larger It's $XXX that X have world. years million just we million and marketing. And spending on the

Now we're $XXX million think We spending and on works. million to of sales $XXX it marketing. some

wonder, of works. it we we some but think Sometimes

Daniel Perlin

totally seeing Yes, results.

level big share, so major familiar X% with what you a maybe opportunity. speak there and players of your just could just So I've you've real thing, not therefore what what Bill, one it are is opportunity I'm this think Would mind know be? you that minute market quick out. huge just competitive conferences your just how opportunity a market, the heard also got dynamic if and setting kind lift who of other could, I Australia, in you I spending is. and there's about But superannuation you got said as the that

Bill Stone

-- while. Yes. put on that based has we've Australian And about also superannuation like been acquisitions Again, built capabilities we own cycles. some done call market think development then that the the our a in money. that they in we've And the quite for out and Iris, been [indiscernible] superannuation I

have national has in Australia put program really think it we we best -- something is we really So that brilliant team. good I where and think it a technology, pretty a the is have and we think

things kinds are of We the have really some us. and growth, increased technology client the of are for to ingredients really great customers. profitability increase our And those access that increased

Operator

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

Peter Heckmann

a someone I you've contribution? revenue Someone terms already annual we maybe could what whether in an in that poke your their talk anything included about And hope like question, my -- little little but terms a you so of then about hasn't you of in Insignia thinking deal size can be head in in asked bit Financial, guidance? should XXXX bit, if

Bill Stone

work quite client is SS&C Pete, big top XX -- satisfaction and deal. as and to I to be need we've an very that's focused a don't know we our and if a them would done, but lot in an there's we top and of Australians, what client's the very become bunch and manager they giving get in XX as want capabilities a and really focus they've in client large And been retirement a as large probably on granular it's moved on, increased of and But long we're way. It to fish our base money contribution. increasingly pretty individual for that on book. prospect, great manager of be a

going of the end contracts revenue to hope we QX. quarter the them begin us. second the significant we're half And in And 'XX be very implementation most get to for is process get the from like a finalized this should by it I said, and client of in entire of

Peter Heckmann

deal Okay. or And you acquisition, terms as bit didn't a something in Trust, small this like then would just of ping in that FPS bigger? yet. price most relatively terms ideas I characterize sizing recent haven't tuck-in of your got Brian that any a I

Bill Stone

some and Trust also a that good. merging It allows to other is are gives and Black with have the and quite deal, with leverage but what we've things capability of focus had stuff us tuck-in we the really us other acquisition Diamond getting where suite things a Trust it of small and really a the [indiscernible] done of real

Operator

the question McVeigh comes next UBS. Your Kevin of from with line

Kevin McVeigh

you I of end what XXXX the you as add And of me to grandson. what as of organically? you guess, gets my Let high if be -- Bill, congratulations factors that? of would end What low low the kind the to high to end? X%. to opposed be the well, on And end midpoint any as your that would was the

Rahul Kanwar

things book number. roughly these we in $XX either of in is million revenue general, mark on the think the side I way

So range. $XXX reasonable is that's million probably -- that I think a

current is as strength think business. we're sales think bringing well, combined client we more company. both have is getting And well all lot across We for that as solutions performing about new feel I good as with together deeper And earlier, a of as what right? the that we in business we so opportunities, there's Bill reasonably said clients our have of base.

a there's So of positive. lot

to make bit your lower of end timing that new answer are during range sales, converted the a things the the fast little little come fund -- to volume like not does we things make end as little of live enough the the generally and fund speaking, and the of those But deal a towards bit for in those flows really, of or administration. get two. But difference bit meaningful down making us Intralinks higher and important as really them sure a the range go course question, implementations first towards organic and year macroeconomic things to the and a

Kevin McVeigh

leading just It Super Like health then helpful. or is quick, maybe a contracts? Is indicator proxy? going Or independent? looks any is that terrific. or as sounds you the of there about XXXX like was some pretty And kind business leads good to that obviously, 'XX, sales. software care that that, larger type think real into that of

Bill Stone

going and to do in this administration that's operating something is have ecosystem lower at few being new manage where going gotten starts have because the and it, I to bit health down technology little upside the expenses be they're probably are care which to to in entire in as do have make to ways changes for looking expenses a going because focus them turned they're able care And of I our they're systems. ratios and lower good your But think effectiveness. they're to other medical And them. a and Medicare quite think -- and is for probably going DomaniRx expensive I to have mostly think the independent, expenses. Kevin. under to we're on That's that loss lower -- pressure the is But Medicaid -- more don't going health what efficiency do to that on

Operator

Citi. with Andrew [Operator the next from line Instructions] Your comes question Schmidt of

Andrew Schmidt

to to acceleration drivers And Congrats on great the hedge back Maybe obviously, second. few quarter, just here. real assets, for the see could are? the drivers. across fund, office, the growth there. we unpack Nice markets, where the of It's organic a growth price GlobeOp digging Maybe past see. and the this just the any mail opportunities in terms callouts quarters

Rahul Kanwar

I just couple the is of what in of a we've seen of years. continuation think it a lot last it's --

more in So continues for private opportunities private to us. existing it's particular, markets, say credit, real very be in and funds new think both And space, day lot that we on are the and as part, letting strong with outsource a that for very there's that us of large still well that, opportunity estate, market. given X. more in most as funds us new now And

and attract client sense business to performing we're well that some almost also a have well as in in tended the the that's fund of of disproportionate combination new in they XXXX, and hedge fortunate performed fund share wins, of the now is the names have industry, biggest a allocation. we Our really as and

us. that winning bigger, more, broad we have We're getting helps hedge and are comps both opportunity markets. across a private our pretty and So

Andrew Schmidt

areas. other then hear. just that. great upfront. ask Appreciate separate And to two I'll That's questions, them maybe

baking automation for how of opportunity just of a then the Just to continues big to about you separately, for think range be obviously, terms guys. in in? outcomes And GlobeOp, 'XX

an is terms that at you're in And Just maybe us of terms know terms reinvesting et cetera, some I at in in of of product, functions. give we're update initiative? that automating key where where but in of

Bill Stone

Yes.

the mean as well or hedge or fund administrator in assets Just assets, others. believe whether we best that honestly we're Rahul credit I it's both as the building on world, what said, private for equity

improves the the games, better to and have games we biggest who us. that clients have or expertise in the you we in When are having biggest play demanding, anymore. that you get the get you don't which So play

hedge I our will macro large-scale are believe as the to of clients. and funds continue them clients, most have our So we

that Rahul out. managers those they bigger, and -- That's lot and that as sometimes grow again. we as overregulated. or always get what they said, helps they that spin portfolio And we us say get clients prefer our they real portfolio as managers get And that some a star much

We they a and no that new the the really more clients much invest if have broadest in if are always in at there of want of are to limitations us. you're markets, range helping are what there geographic clients access our level client

think have valuable to won that So we very being And very in deliver we have we because of think those are heavily those people. to a invested business I capabilities. able lot

Andrew Schmidt

on just side? then And the it. automation Got

Bill Stone

been primarily by driven That's Blue Prism.

it, X, then on I $XXX look spend ago, years we sales another like I $XXX -- sales $XXX think on marketing. we're million we savings. savings done marketing, up call what X,XXX towards is in X to at are digital and us $XXX spent $XXX for to and And you million and $XXX workers we've we the think said, about moving if million million, about million million thing I above

to it's years in And business and then a it's we to than at similar reinvest little because organic R&D, X up than the very our look revenue you growth. margins, we spending If did and we where to way rather drive bit try wanted -- we're started drive ago. X

And other with not great as building its And in successful successful new not software. services, oftentimes, Not you own. we that of that got times, pre-sofware. new products, risk great in quite build don't we're we're to software building and without and it's do

that's and something competitive will we continue give a it us a business, and that we competitive it's So advantage us gives difficult to focus advantage. and on think

Operator

to remarks. the Bill for concludes over As now there closing Stone time, at turn like for session to are I no further Q&A would call that this the today. questions

Bill Stone

new being so so really I And Again, had i enough up too one had good to to I the and much, to grandson we on pick i have about think another didn't on have me. going think call. knew my bring we have wouldn't am that appreciate soon. I to worry that But you you we all numbers

So always when really Rahul Thanks that it's it's he amazing week. and That think -- Enjoy I Brian for anyway, numbers I only I the to on. And appreciate in mean being here. answer Bye. being have really and must had good quarter. your you doesn't.

Operator

meeting. today's you for concludes Thank This your partition.

You may now disconnect.

SS&C Technologies (SSNC) 6 Feb 252024 Q4 Earnings call transcript