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PresentationKevin McVeighUBS Investment Bank, Research Division Great. Why don't we get started? Next up, we're thrilled to have Bill Stone, the CEO of SS&C. Part of our goal here today is to try to keep this as iterative as possible. So we'll start with a couple of questions. It's always great to get your perspective on a lot of things. But part of this year, well, I just need to read the kind of standard disclaimer, and then we'll get right into it. But as a research analyst, I'm required to provide cert ...

Summary of SS&C Technologies Conference Call Company Overview - **Company**: SS&C Technologies (NasdaqGS:SSNC) - **Conference Date**: December 03, 2025 - **CEO**: Bill Stone Key Industry Insights - **Technological Evolution**: SS&C has navigated various technological changes since its inception in 1986, including the rise of AI, which is seen as the latest inflection point in the industry [4][6][8] - **Generative AI**: The company is positioned to leverage generative AI, with a focus on maintaining service quality alongside software offerings, differentiating itself from newer entrants lacking service support [10][11] Financial Performance - **Revenue Growth**: SS&C is projected to achieve revenues of approximately $6.2-$6.3 billion in 2025, a significant increase from $1 billion in 2015, indicating a strong compound annual growth rate [26][39] - **Organic Growth**: The company has experienced a structural shift in organic growth, with a range of 4-8%, consistently achieving 5-6% over recent quarters, up from a previous range of 1-2% [16][18] - **Cash Flow**: SS&C expects to generate around $1.5 billion in free cash flow for the year, with a cash flow yield of approximately 7% [32][34] Client Base and Market Position - **Client Sophistication**: The company serves large, sophisticated clients in the fund administration sector, including major firms like Point72 and Citadel, which require advanced services due to regulatory complexities [18][19] - **Retention Rates**: SS&C boasts a high retention rate of 97%, indicating strong client loyalty and satisfaction [26] Strategic Initiatives - **Acquisitions**: The company has made strategic acquisitions, such as Blue Prism and Calastone, to enhance its technological capabilities and geographic reach [36][41] - **Investment in AI**: SS&C has deployed over 3,000 digital workers since acquiring Blue Prism, leading to significant operational efficiencies and cost savings estimated at $200 million [24][28] Risk Management - **Cybersecurity**: The company emphasizes the importance of internal security measures to protect intellectual property, acknowledging that threats can often come from within [12][13] - **Regulatory Compliance**: SS&C navigates a complex regulatory landscape across multiple jurisdictions, which adds to the demand for its services [12] Market Trends - **Consolidation in the Industry**: The market has seen consolidation among competitors, which supports SS&C's growth strategy and validates its business model [43][44] Conclusion - SS&C Technologies is well-positioned for continued growth, leveraging technological advancements, maintaining high client retention, and executing strategic acquisitions to enhance its market presence and operational efficiency [26][39][41]

Jeff, they've become more available as time goes on. 2024 has actually been a really big year. We've had announcements from really two of the largest record keepers, both Fidelity and Empower, introducing their suite of solutions.I suppose yours and Ryan's do as well. Are these products available across the record keeping platforms?Matt, always great to see you. Thanks for joining us as well. I can tell you that I have my phone here and my phone gets blown up with alerts of new products, retirement income p ...

Core Insights - SS&C Technologies has received approval from the Central Bank of Ireland for its new entity, SS&C Wealth Services Europe, allowing it to provide wealth management technology and services across the EU from Dublin [1][2] - The approval is under the EU Markets in Financial Instruments Directive (MiFID), which supports SS&C's strategy to enhance its wealth management operations in Europe [1][2][3] Company Developments - The new entity aims to assist financial institutions in modernizing and expanding their wealth management activities, delivering integrated wealth platforms, custody, and back-office services [3] - SS&C currently employs over 550 staff in Ireland and manages over €95 billion in assets across various fund structures, along with €25 billion in Life & Pension products [4] Market Position - SS&C supports private wealth assets exceeding $6.1 trillion for over 3,000 firms globally, indicating a strong market presence [4] - The establishment of SS&C Wealth Services Europe is seen as a significant milestone in the company's European growth strategy, enhancing its ability to meet evolving client and regulatory expectations [2][3] Industry Context - IDA Ireland highlights the importance of SS&C's announcement in reinforcing Ireland's status as a key location for global financial services firms, emphasizing the combination of a skilled workforce and a stable business environment [5]

Group 1 - The recent Deliver Conference held in Phoenix was the largest ever for the company, with over 1,000 attendees and 200 sessions, indicating strong customer engagement [2] - Half of the conference sessions were moderated or presented by customers, highlighting the importance of customer feedback in technology development [2] - The conference served as a platform to showcase the company's innovations, particularly in relation to their software and technology offerings [2] Group 2 - Key announcements made during the conference included the AI Agent catalog, Gateway, and SS&C Agent Services, which are significant developments for the company [1] - The event was utilized as a feedback loop for understanding customer requirements and enhancing product offerings [2] - The high level of engagement at the conference reflects the company's commitment to building strong relationships with its customers [2]

Summary of SS&C Technologies FY Conference Call Company Overview - **Company**: SS&C Technologies (NasdaqGS:SSNC) - **Date of Conference**: November 18, 2025 Key Points Industry and Business Performance - SS&C Technologies reported strong Q3 results with over 9% revenue growth in both its Global Business and Global Investor and Distribution Solutions (GIG) segments, which together account for over 50% of total revenue [2][3] - The company experienced margin expansion due to cost efficiency and a significant push towards AI and automation, allowing revenue growth without a proportional increase in expenses [2] Growth Opportunities - **GlobalOps**: The largest alternative fund administrator globally, showing a growth rate of 9.6% in Q3, driven by strong performance from hedge fund clients and consistent double-digit growth in private markets [3][4] - **Retail Alternatives**: This segment is the fastest-growing, with growth exceeding 20%, indicating a strong demand for alternative investments among high-net-worth individuals [4] - **Wealth and Investment Technologies (WIT)**: The WIT business, housing financial services software, is expected to grow mid-single digits, with significant contributions from the Black Diamond Wealth platform, which has successfully migrated over 400 clients from Morningstar [11][12][13] AI and Automation Initiatives - SS&C is focusing on intelligent automation and analytics, with successful implementations in healthcare, such as an AI agent that saves 15,000 radiologist hours annually [29] - The company is leveraging its own AI capabilities to enhance client services and improve operational efficiencies, which is expected to drive further growth [36][32] International Expansion - SS&C has seen significant international growth, particularly in Australia, Europe, and the Middle East, with acquisitions like Kiro Fund Services enhancing its local presence [26][27] - The Calastone acquisition is expected to strengthen SS&C's global network and facilitate electronic processes in investment management, enhancing cross-sell opportunities [20][21] Capital Allocation and Acquisitions - The company maintains strong cash flow and is actively looking for acquisitions that align with its growth strategy, focusing on revenue growth and margin improvement [42][43] - SS&C has a share buyback program in place, indicating confidence in its stock valuation [42] Market Position and Competitive Advantage - SS&C's unique offering of both fund accounting and transfer agency services positions it favorably in the market, particularly as demand for alternative investments grows [4][5] - The company emphasizes the importance of integrating complex systems and ensuring data security, which are critical in maintaining client trust and competitive advantage [32][33] Conclusion - SS&C Technologies is well-positioned for continued growth through its diverse service offerings, strong performance in key segments, and strategic focus on AI and automation. The company is also expanding its international footprint and actively pursuing acquisition opportunities to enhance its market position.

Nov 12, 2025 8:45 AM Eastern Standard Time SS&C Technologies Completes Acquisition of Curo Fund Services Share The acquisition will grow SS&C's business in South Africa WINDSOR, Conn.--(BUSINESS WIRE)--SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) has completed the acquisition of Curo Fund Services, a leading South African provider of fund administration solutions, from a joint venture between Sanlam and Old Mutual. Terms of the deal were not disclosed. Curo Fund Services administers more than R 3 trillio ...

Core Insights - SS&C Technologies Holdings, Inc. is enhancing operational efficiency in the financial and healthcare sectors through the introduction of AI agents, reflecting its commitment to integrating advanced technology into traditional industries [1][6] - Jefferies has a "Buy" rating for SS&C, with an increased price target from $98 to $105, indicating strong confidence in the company's future performance due to the positive impact of AI technology [2][6] Financial Metrics - The company has a price-to-earnings (P/E) ratio of approximately 24.13, suggesting that investors are willing to pay a premium for its earnings [3][6] - SS&C's price-to-sales ratio is about 3.34, indicating the market's valuation of its sales [3][6] - The enterprise value to sales ratio stands at around 4.38, reflecting a strong valuation relative to sales [3] - An enterprise value to operating cash flow ratio of approximately 17.22 shows how SS&C's valuation compares to its operational cash flow [4] - The earnings yield is about 4.14%, representing the return on investment for shareholders [4] - The debt-to-equity ratio is approximately 0.97, indicating a balanced approach to financing [4][6] - The current ratio of about 1.12 demonstrates SS&C's ability to cover short-term liabilities with short-term assets, highlighting its financial stability [5][6]

Revenue Growth - Total revenues for the three months ended September 30, 2025, increased by $102.2 million, or 7.0%, to $1,568.0 million, driven by organic revenue growth of $76.4 million and acquisitions contributing $16.6 million[74] - Software-enabled services revenues rose by $103.2 million, or 8.6%, primarily due to organic revenue growth of $79.4 million and acquisitions adding $16.6 million[75] - The company experienced an increase in organic revenue growth of $209.3 million, or 6.1%, for the nine months ended September 30, 2025, compared to the same period in 2024[76] Cost and Expenses - Total cost of revenues for the three months ended September 30, 2025, increased by $58.6 million, or 7.7%, primarily due to organic cost increases of $45.2 million and acquisitions adding $10.3 million[80] - Operating expenses for the three months ended September 30, 2025, increased by $3.0 million, or 0.8%, due to acquisitions adding $3.3 million in expenses and unfavorable foreign currency translation of $2.8 million[86] - Total operating expenses for the nine months ended September 30, 2025, increased by $39.6 million, or 3.5%, primarily due to organic operating expense growth of $28.6 million[87] Profitability - Gross margin percentage for the three months ended September 30, 2025, was 47.7%, compared to 48.0% for the same period in 2024[79] - The company reported a net income of $210.4 million for the three months ended September 30, 2025, compared to $164.6 million for the same period in 2024, representing a year-over-year increase of 27.0%[117] - Consolidated EBITDA for the nine months ended September 30, 2025, was $1,813.7 million, up from $1,704.4 million in the same period of 2024, reflecting a growth of 6.4%[117] Interest and Other Income - Net interest expense decreased to $104.2 million for Q3 2025 from $109.6 million in Q3 2024, primarily due to lower average interest rates of 6.20% compared to 6.78%[88] - Other income, net for Q3 2025 was $5.3 million, down from $9.3 million in Q3 2024, with significant contributions from foreign currency translation gains and dividend income[89] - Equity in earnings of unconsolidated affiliates showed a loss of $(11.6) million for Q3 2025, compared to a gain of $1.1 million in Q3 2024, primarily due to adjustments to decrease the carrying value of investments[90] Taxation - Provision for income taxes for Q3 2025 was $43.5 million with an effective tax rate of 17.1%, down from $60.0 million and 26.7% in Q3 2024[91] Cash Flow and Investments - Cash flows from operating activities increased to $1,101.3 million for the nine months ended September 30, 2025, compared to $902.0 million in the same period of 2024, reflecting a net income of $604.7 million[97] - Investing activities used net cash of $229.6 million in the nine months ended September 30, 2025, primarily for capitalized software development costs of $155.5 million[99] - Financing activities used net cash of $791.9 million for the nine months ended September 30, 2025, mainly due to $717.3 million in stock repurchases and $188.3 million in dividends paid[100] Financial Position - Total client funds obligations amounted to $3,664.6 million as of September 30, 2025[96] - The company held approximately $254.9 million in cash and cash equivalents at non-U.S. subsidiaries where a permanent reinvestment determination was made[101] - As of September 30, 2025, the company was in compliance with all financial and non-financial covenants under its amended senior secured credit facility[105] Leverage and Ratios - The company maintained a consolidated net secured leverage ratio of 1.45 as of September 30, 2025, significantly below the covenant requirement of 6.25x[118] - Average daily cash balances for the nine months ended September 30, 2025, were approximately $2.6 billion, with a potential annual net income increase of $12.6 million from a 100 basis point rise in interest rates[126] - Total variable interest rate debt as of September 30, 2025, was approximately $3,871.9 million, with a projected increase in interest expense of $38.7 million per year from a 100 basis point increase in interest rates[127] Compliance and Accounting - The company has the option to redeem the 6.5% Senior Notes at 103.250% of the principal amount starting June 1, 2027[108] - The company is subject to a 5.25x consolidated net secured leverage ratio requirement starting from the fiscal quarter ending December 31, 2024, which can increase to 5.75x following a material permitted acquisition[111] - Consolidated EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for unusual items, and is used to assess compliance with financial covenants[112] - The company plans to adopt new accounting standards related to income tax disclosures effective for fiscal years beginning after December 15, 2024[119] Risk Management - The company does not use derivative financial instruments for trading or speculative purposes, focusing instead on short-term, highly liquid financial instruments[125] - As of September 30, 2025, the fair value of investments subject to equity price risk was approximately $43.3 million, with a potential impact of a 10% change resulting in approximately $3.2 million effect on net income[128] - Approximately 32% of revenues for the nine months ended September 30, 2025, were generated from clients outside the United States, with 25% from currencies other than the U.S. dollar[129] - The British pound is the primary currency for revenues denominated outside the U.S. dollar[129] - Foreign currency transaction gains and losses are reported in other income, net, due to exposure from cross-currency intercompany balances and trade receivables and payables[130] - The company continuously assesses and monitors its exposure to foreign currency exchange rates, which can fluctuate due to acquisitions and other transactions[130] - The company does not engage in market risk sensitive instruments for trading or hedging purposes[130] - Actual future results may differ materially from projected results due to developments in global financial markets[131] - The analytical methods used to assess and minimize risk should not be considered projections of future events or losses[131]