Ss&c Technologies Holdings, Inc. · NASDAQ:SSNC
Ss&c Technologies — Q3 2024 Earnings Presentation
21 slides from Ss&c Technologies's earnings presentation, 2024
Slide 1: SS&C Technologies Q3 2024 Earnings Results
SS&C Technologies (NASDAQ:SSNC) Q3 2024 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: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS • 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 p
Slide 4: Q3 2024 Financial Highlights
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 EBIT
Slide 5: Debt Review and Capital Allocation
DEBT REVIEW AND CAPITAL ALLOCATION Mix of Capital Allocation SS&C generated net cash from operating activities of Q3 2024 - $1.0 billion $336.6 million for the three months ended September 30, 2024, compared to $242.2 million for the same period in 2023, up 39.0%; Q3 2024 cash flow 9% 6% conversion
Slide 6: Organic Growth Calculations 2024
ORGANIC GROWTH CALCULATIONS 2024 Q1 2024 Q2 2024 Q3 2024 Total Adjusted Revenues ($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) 1,424.4 1,450.1 1,454.8
Slide 7: Adjusted Organic Growth by Business
ADJUSTED ORGANIC GROWTH BY BUSINESS • Financial Services recurring revenue growth was 7.2% for Q3 2024 2023 Q1 Q2 Q3 Business Revenue 2024 2024 2024 Base 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 $1.37 B 4.4% 6.0% 10.9% Technologies2 Intralink
Slide 8: Adjusted Revenue and Adjusted Consolidated EBITDA
ADJUSTED REVENUE AND ADJUSTED CONSOLIDATED EBTIDA Adjusted revenue ($M) $5,835.0 1 7.3% 6.5% $5,505.8 5.5% 5.3% $1,466.8 $1,452.4 $5,287.3 $1,435.8 3.4% $1,412.3 $1,366.7 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 FY 2022 FY 2023 FY 2024 E Revenue YoY Growth 38.9%1 Adjusted consolidated EBITDA ($M) and
Slide 9: Revenue Retention Rates
REVENUE RETENTION RATES • Quarterly retention rate is based on a rolling prior twelve months. • Acquisitions are not 97.3% 97.1% 96.9% 97.1% included in retention rate 96.8% 96.5% 96.3% calculation until one year post-acquisition. Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 FY 2022 FY 2023 © SS&C Techno
Slide 10: Adjusted Net Income & Adjusted Diluted EPS
ADJUSTED NET INCOME & ADJUSTED DILUTED EPS Adjusted net income attributable to SS&C ($M) $1,307.0 1 $318.9 $323.6 $319.6 $327.1 $1,228.8 $1,184.6 $297.6 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 FY 2022 FY 2023 FY 2024 E Adjusted diluted EPS attributable to SS&C $5.15 1 $1.28 $1.29 $1.26 $1.27 $4.69 $
Slide 11: Alternative Assets Under Administration ($B)
ALTERNATIVE ASSETS UNDER ADMINISTRATION ($B) $2,488 $2,467 $2,400 $2,329 $2,296 $2,256 $2,242 $2,209 $2,204 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 © SS&C Technologies, Inc. 11
Slide 12: Guidance
GUIDANCE Q4 2024 FY 2024 Adjusted Revenues ($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 Diluted Earnings Per Share a
Slide 13: Appendix
APPENDIX
Slide 14: 2023 Adjusted Organic Growth by Business
2023 ADJUSTED ORGANIC GROWTH BY BUSINESS 2022 Q1 Q2 Q3 Q4 FY Business Revenue Base 2023 2023 2023 2023 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 $1.40 B (0.8%) (3.8%) (7.7%) (0.0%) (3.1%) Technologies2 Intralinks $445
Slide 15: 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 16: 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 17: 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 18: Reconciliation of net income to EBITDA and adjusted consolidated EBITDA
Reconciliation of net income to EBITDA, consolidated EBITDA and adjusted consolidated EBITDA 1) 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
Slide 19: Reconciliation of net income to adjusted net income and 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 20: 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 1) 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 valu
Slide 21: Thank You
THANK YOU. © SS&C Technologies, Inc.
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