Ss&c Technologies Holdings, Inc. · NASDAQ:SSNC
Ss&c Technologies — Q3 2024 Earnings Presentation
21 slides from Ss&c Technologies's earnings presentation, Oct 24, 2024
Slide 1: SS&C Technologies Q3 2024 Earnings Results
SS&C Technologies (NASDAQ:SSNC) Q3 2024 Earnings Results
Slide 2: Forward-looking statements
© SS&C Technologies, Inc. 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 pl
Slide 3: Q3 2024 Highlights
© SS&C Technologies, Inc. Q3 2024 GAAP Revenue growth and Adjusted Revenue growth were 7.3 percent Adjusted Organic Revenue Growth was 6.4 percent, Financial Services Recurring Revenue Growth was 7.2 percent. Q3 2024 we bought back 1.2 million shares for $89.4 million, at an average price of $72.72
Slide 4: Q3 2024 Financial Highlights
Metric Q3 2024 Q3 2023 $ +/- % +/- Adjusted Revenues ($M) $1,466.8 $1,366.7 $100.1 7.3% Adjusted Operating Income attributable to SS&C ($M) $548.8 $517.4 $31.4 6.1% Adjusted Consolidated EBITDA attributable to SS&C ($M) $566.2 $533.9 $32.3 6.0% Adjusted Consolidated EBITDA margin attributable to SS&
Slide 5: Debt Review and Capital Allocation
DEBT REVIEW AND CAPITAL ALLOCATION © SS&C Technologies, Inc. SS&C generated net cash from operating activities of $336.6 million for the three months ended September 30, 2024, compared to $242.2 million for the same period in 2023, up 39.0%; Q3 2024 cash flow conversion was 103.0% Debt Net leverage
Slide 6: Organic Growth Calculations
© SS&C Technologies, Inc. ORGANIC GROWTH CALCULATIONS 2024 Q1 2024 Q2 2024 Q3 2024 Total Adjusted Revenues ($M) 1,435.8 1,452.4 1,466.9 Fx ($M) (5.7) 1.6 (4.7) Acquisitions ($M) (2.9) (4.1) (7.8) Organic Revenues ($M) 1,427.2 1,449.9 1,454.4 Adjustments ($M) 0.2 0.2 0.4 Adjusted Organic Revenues ($M
Slide 7: Adjusted Organic Growth by Business
© SS&C Technologies, Inc. ADJUSTED ORGANIC GROWTH BY BUSINESS Business 2023 Revenue Base Q1 2024 Q2 2024 Q3 2024 Alternatives $1.34 B 5.5% 7.0% 6.1% GIDS and related1 $1.33 B 0.7% 5.1% 4.7% Wealth and Investment Technologies2 $1.37 B 4.4% 6.0% 10.9% Intralinks $495 M 23.0% 16.1% 11.5% Blue Prism $28
Slide 8: Adjusted Revenue and Adjusted Consolidated EBITDA
Adjusted consolidated EBITDA ($M) and EBITDA margin (%) 38.0% 38.4% 38.9%1 © SS&C Technologies, Inc. ADJUSTED REVENUE AND ADJUSTED CONSOLIDATED EBTIDA Adjusted revenue ($M) Note: See appendix for reconciliation of non-GAAP financial measures 1Midpoint of 2024 guidance
Slide 9: Revenue Retention Rates
© SS&C Technologies, Inc. Quarterly retention rate is based on a rolling prior twelve months. Acquisitions are not included in retention rate calculation until one year post-acquisition. REVENUE RETENTION RATES Note: Retention rates calculated for financial services businesses
Slide 10: Adjusted Net Income & Adjusted Diluted EPS
© SS&C Technologies, Inc. ADJUSTED NET INCOME & ADJUSTED DILUTED EPS Adjusted net income attributable to SS&C ($M) Adjusted diluted EPS attributable to SS&C Note: See appendix for reconciliation of non-GAAP financial measures 1Midpoint of 2024 guidance
Slide 11: Alternative Assets Under Administration ($B)
© SS&C Technologies, Inc. ALTERNATIVE ASSETS UNDER ADMINISTRATION ($B)
Slide 12: Guidance
GUIDANCE © SS&C Technologies, Inc. Q4 2024 FY 2024 Adjusted Revenues ($M) $1,460.0 – $1,500.0 $5,815.0 – $5,855.0 Organic growth Midpoint (%) 2.4% 4.9% Interest Expense ($M)1 $110.0 – $112.0 $442.0 - $444.0 Adjusted Net Income attributable to SS&C ($M) $329.0 – $345.0 $1,299.0 – $1,315.0 Adjusted Di
Slide 13: Appendix
APPENDIX
Slide 14: 2023 Adjusted Organic Growth by Business
2023 ADJUSTED ORGANIC GROWTH BY BUSINESS © SS&C Technologies, Inc. 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% GIDS and related1 $1.27 B 4.2% 4.1% 4.7% 5.9% 4.7% Wealth and Investment Technologies2 $1.40 B (0.8%) (3.8%) (7.7%) (0.0
Slide 15: Adjusted revenues definition and reconciliation
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 deferred revenue and retained earnings related
Slide 16: Adjusted operating income reconciliation
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 expenses. Adjusted operating income is presented because we use th
Slide 17: EBITDA and Adjusted Consolidated EBITDA reconciliation
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 calculating covenant compliance, and is EBITDA adjusted for certain items. Consolidated EBITDA
Slide 18: Acquired EBITDA and purchase accounting adjustments
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 connection with acquisitions. Purchase accounting adjustments include (a) an adjustment to incre
Slide 19: Adjusted net income and diluted EPS reconciliation
Adjusted net income and adjusted diluted earnings per share attributable to SS&C represent net income and earnings per share attributable to SS&C before amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments and other items. We consi
Slide 20: Purchase accounting adjustments
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 at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have b
Slide 21: Thank You
THANK YOU. © SS&C Technologies, Inc.
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