Ss&c Technologies Holdings, Inc. · NASDAQ:SSNC
Ss&c Technologies — Q4 2023 Earnings Presentation
20 slides from Ss&c Technologies's earnings presentation, Feb 13, 2024
Slide 1: SS&C Technologies Q4 2023 Earnings Results
SS&C Technologies (NASDAQ:SSNC) Q4 2023 Earnings Results
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements, as defined by federal and state securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans,
Slide 3: Q4 2023 Highlights
Q4 2023 GAAP Revenue growth and Adjusted Revenue growth were 5.5 percent. Record adjusted revenues of $1,412.3, record adjusted consolidated EBITDA attributable to SS&C of $562.5 million. SS&C generated net cash from operating activities of $1,215.1 million for the twelve months ended December 31, 2
Slide 4: Q4 2023 financial highlights
Q4 2023 financial highlights Metric Q4 2023 Q4 2022 $ +/- % +/- Adjusted Revenues ($M) $1,412.3 $1,339.1 $73.2 5.5% Adjusted Operating Income attributable to SS&C ($M) $545.2 $502.1 $43.1 8.6% Adjusted Consolidated EBITDA attributable to SS&C ($M) $562.5 $518.6 $43.9 8.5% Adjusted Consolidated EBITD
Slide 5: Debt review and capital allocation
SS&C generated net cash from operating activities of $1,215.1 million for the twelve months ended December 31, 2023, compared to $1,134.3 million for the same period in 2022, a 7.1% increase. Debt Net leverage ratio is 3.05x, secured net leverage ratio is 2.10x LTM consolidated EBITDA attributable t
Slide 6: Organic Growth Calculations
Organic Growth Calculations 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Total Adjusted Revenues ($M) 1,363.4 1,363.4 1,366.7 1,412.3 5,505.8 Fx ($M) 19.9 3.4 (13.2) (10.9) (0.8) Acquisitions ($M) (64.0) (5.8) (2.4) (4.1) (76.3) Organic Revenues ($M) 1,319.3 1,361.0 1,351.1 1,397.3 5,428.7 Adjustmen
Slide 7: Adjusted Organic Growth by Business
Adjusted Organic Growth by Business Business 2022 Revenue Base Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Alternatives $1.25 B 6.6% 6.1% 8.4% 7.8% 7.2% Private Markets continues to grow over 20% Advent $575 M (5.2%) 4.2% (1.4%) 4.7% 0.5% Tough comp on a big license renewal in Q1, Q3 2022 GIDS $1.1 B 3.
Slide 8: Adjusted revenue and Adjusted Consolidated EBITDA
Adjusted revenue and Adjusted Consolidated EBITDA Adjusted revenue ($M) Adjusted consolidated EBITDA ($M) and EBITDA margin (%) Note: See appendix for reconciliation of non-GAAP financial measures
Slide 9: Revenue retention rates
Quarterly retention rate is based on a rolling prior twelve months. Acquisitions are not included in retention rate calculation until one year post-acquisition. Revenue retention rates Note: Retention rates calculated for financial services businesses
Slide 10: Adjusted net income and adjusted diluted EPS attributable to SS&C
Adjusted net income and adjusted diluted EPS attributable to SS&C Adjusted net income attributable to SS&C ($M) Adjusted diluted EPS attributable to SS&C Note: See appendix for reconciliation of non-GAAP financial measures
Slide 11: Alternative Assets under Administration ($B)
Alternative Assets under Administration ($B) Q4 2023 AUA growth was driven by new client wins
Slide 12: Guidance
Guidance SS&C does not provide reconciliations of guidance for Adjusted Revenues and Adjusted Net Income to comparable GAAP measures, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. SS&C is unable, without unreasonable efforts, to forecast cert
Slide 13: Appendix: Disclosures relating to non-GAAP financial measures
Appendix Disclosures relating to non-GAAP financial measures
Slide 14: Reconciliation of revenues to adjusted revenues
Reconciliation of revenues to adjusted revenues Adjusted revenues represents revenues adjusted to include a) amounts that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition and b) amounts that would have been recognized if not for adjustments to
Slide 15: Reconciliation of operating income to adjusted operating income
Reconciliation of operating income to adjusted operating income Adjusted operating income represents operating income adjusted for amortization of intangible assets, stock-based compensation, purchase accounting adjustments for deferred revenue and related costs, ASC 606 adoption impact and other ex
Slide 16: Reconciliation of net income to EBITDA and adjusted consolidated EBITDA
Reconciliation of net income to EBITDA, consolidated EBITDA and adjusted consolidated EBITDA EBITDA represents net income before interest expense, income taxes, depreciation and amortization. Consolidated EBITDA, defined under our Credit Agreement entered into in April 2018, as amended, is used in c
Slide 17: Reconciliation of net income to EBITDA and adjusted consolidated EBITDA (continued)
Reconciliation of net income to EBITDA, consolidated EBITDA and adjusted consolidated EBITDA Acquired EBITDA reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period, as well as cost savings enacted in con
Slide 18: Reconciliation of net income to adjusted net income and adjusted diluted EPS
Reconciliation of net income to adjusted net income attributable to SS&C and diluted earnings per share to adjusted diluted earnings per share attributable to SS&C Adjusted net income and adjusted diluted earnings per share attributable to SS&C represent net income and earnings per share attributabl
Slide 19: Reconciliation of net income to adjusted net income and diluted EPS
Reconciliation of net income to adjusted net income and diluted earnings per share to adjusted diluted earnings per share Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value a
Slide 20: Smart People, Superb Technology
SMART PEOPLE SUPERB TECHNOLOGY
SS&C Technologies Holdings — Q4 2023 Earnings Presentation on 6ix