(Exact name of Registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34675 SS&C TECHNOLOGIES HOLDINGS, INC. (State or other jurisdiction of incorporation or ...

SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q2 2023 Earnings Conference Call July 27, 2023 5:00 PM ET Company Participants Justine Stone - Head, IR Bill Stone - Chairman and CEO Rahul Kanwar - President and COO Patrick Pedonti - CFO Conference Call Participants Kevin McVeigh - Credit Suisse Dan Perlin - RBC Capital Markets Peter Heckmann - D.A. Davidson Andrew Schmidt - Citi Joe Meares - Truist Patrick O'Shaughnessy - Raymond James Alex Kramm - UBS Operator Thank you for standing by. My name is Bailey an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 For the transition period from to Commission File Number 001-34675 SS&C TECHNOLOGIES HOLDINGS, INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 71-0987913 (I.R.S. Employer Identification No.) 80 Lamberton Road W ...

SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q1 2023 Earnings Conference Call April 27, 2023 5:00 PM ET Company Participants Justine Stone - Head, IR Bill Stone - Chairman and CEO Rahul Kanwar - President and COO Patrick Pedonti - CFO Conference Call Participants Kevin McVeigh - Credit Suisse Dan Perlin - RBC Capital Markets Andrew Schmidt - Citi Alex Kramm - UBS Peter Heckmann - D.A. Davidson Joe Meares - Truist James Faucette - Morgan Stanley Operator Ladies and gentlemen, thank you for standing by. Wel ...

```markdown Part I [Business](index=4&type=section&id=Item%201.%20Business) SS&C Technologies provides software-enabled services and software to financial and healthcare industries, serving over 20,000 clients with high retention and a growth strategy focused on acquisitions [Overview, Industry, and Market Trends](index=4&type=section&id=1.1%20Overview%2C%20Industry%2C%20and%20Market%20Trends) SS&C provides software-enabled services to financial and healthcare clients, driven by industry trends like digital transformation, regulatory changes, and outsourcing adoption - Key market trends driving demand include the diversification of business lines, increasing regulatory changes, a focus on digital transformation with **AI** and **RPA**, and the accelerated adoption of outsourcing and cloud solutions[25](index=25&type=chunk) - The healthcare industry is transforming due to a focus on health equity, new policy initiatives for transparency (Interoperability and No Surprises Act), and cost management, creating demand for streamlined and scalable technology solutions[26](index=26&type=chunk) [Competitive Strengths and Business Strategies](index=6&type=section&id=1.2%20Competitive%20Strengths%20and%20Business%20Strategies) SS&C leverages proprietary software, global leadership in fund administration, and disciplined acquisitions to expand internationally and enhance profitability - A core strength is the use of proprietary software for its software-enabled services, enhanced by the 2022 acquisition of Blue Prism for its Intelligent Automation Platform[27](index=27&type=chunk) - The company is the **largest independent fund administrator** for alternative investments and the **largest third-party mutual fund transfer agent**[30](index=30&type=chunk)[31](index=31&type=chunk) - A key strategy is to strengthen its international presence, noting that revenue from the Asia Pacific region has increased by **33.6%** over the last three years to **$258.2 million**[40](index=40&type=chunk) [Acquisitions](index=8&type=section&id=1.3%20Acquisitions) SS&C pursues a disciplined acquisition strategy, having acquired 65 businesses since 1995, to expand product offerings and intellectual property, including Blue Prism in 2022 - The company has a long history of growth through acquisition, having acquired **65 businesses** since 1995. The strategy focuses on acquiring complementary businesses at reasonable valuations to expand product offerings and intellectual property[39](index=39&type=chunk)[43](index=43&type=chunk) Recent Major Acquisitions (2018-2022) | Acquired Business | Date | Price (USD Million) | Acquired Capabilities | | :--- | :--- | :--- | :--- | | DST Systems, Inc. | Apr 2018 | $5.4 billion | Scale across asset management and healthcare sectors | | Eze Software Group, LLC | Oct 2018 | $1.45 billion | Front-to-back office technology | | Intralinks Holdings, Inc. | Nov 2018 | $1.5 billion | Cloud-based virtual data rooms | | Blue Prism Group Plc | Mar 2022 | $1.645 billion | Intelligent automation and robotic process automation | [Products and Services](index=9&type=section&id=1.4%20Products%20and%20Services) SS&C offers a comprehensive portfolio of software-enabled services and products automating financial and healthcare functions, including fund administration, wealth management, and intelligent automation - SS&C GlobeOp serves a global clientele with **over $2.2 trillion** in assets under administration, providing services like NAV calculations, valuation, and regulatory reporting[51](index=51&type=chunk) - The acquisition of Blue Prism added an Intelligent Automation Platform (IAP) that provides **AI-equipped digital workers** to automate mundane tasks for clients[61](index=61&type=chunk) - Key software products include Geneva (global portfolio management), Advent Portfolio Exchange (APX) for asset/wealth managers, and Eze Eclipse (cloud-native front-to-back investment management)[57](index=57&type=chunk)[59](index=59&type=chunk) [Competition and Human Capital](index=16&type=section&id=1.5%20Competition%20and%20Human%20Capital) SS&C competes in a fragmented market based on software features and support, employing 27,600 staff with a focus on client services and talent retention - Competitors vary by market segment and include large custodians (State Street, BNY Mellon), specialized vendors (SimCorp, Envestnet), and in-house IT solutions[76](index=76&type=chunk)[79](index=79&type=chunk)[82](index=82&type=chunk) Employee Distribution as of Dec 31, 2022 | Department | Number of Employees | | :--- | :--- | | Client support, consulting and services | ~20,300 | | Research and development | ~4,100 | | Sales and marketing | ~1,600 | | Finance, administration and IT | ~1,600 | | **Total** | **~27,600** | - SS&C is the **world's largest hedge fund and private equity administrator** and the **largest mutual fund transfer agent**, serving **over 20,000 clients** in the financial services and healthcare industries[18](index=18&type=chunk)[20](index=20&type=chunk) FY2022 Financial Highlights | Metric | Value (USD Million) | | :--- | :--- | | Total Revenue | $5.28 billion | | Revenue from North America | 75% of Total | | Revenue from outside North America | 25% of Total | - The company maintains high client loyalty, with average revenue retention rates exceeding **95%** over the last five years for its core software-enabled services and maintenance contracts[22](index=22&type=chunk) [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from economic downturns, acquisition integration, cybersecurity threats, evolving regulations, and substantial indebtedness of $7.1 billion - Business is highly affected by the general economy and financial markets; unfavorable conditions could cause clients to reduce or delay spending[98](index=98&type=chunk)[100](index=100&type=chunk) - Cybersecurity threats are a major risk, as a disruption or attack on software-enabled services could lead to data loss, financial loss, and reputational harm[112](index=112&type=chunk)[113](index=113&type=chunk) - Substantial indebtedness of **$7.1 billion** as of Dec 31, 2022, could require a significant portion of cash flow for debt service, increasing vulnerability to interest rate changes and limiting flexibility[156](index=156&type=chunk) - The business is subject to evolving regulations (e.g., GDPR, AIFMD, Dodd-Frank Act) and scrutiny from numerous global regulators, and non-compliance could result in significant fines or sanctions[142](index=142&type=chunk)[144](index=144&type=chunk)[147](index=147&type=chunk) [Properties](index=36&type=section&id=Item%202.%20Properties) SS&C operates from approximately 120 global locations, owning 35% of its office space and leasing the remainder, with plans for future expansion - The company utilizes facilities in approximately **120 locations** globally, owning **35%** of its office space and leasing the other **65%**[173](index=173&type=chunk) [Legal Proceedings](index=36&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to various legal proceedings, none of which are currently expected to have a material adverse effect on the business - Management states that the company is not involved in any litigation expected to have a material adverse effect. Further details are provided in Note 18 of the financial statements[174](index=174&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=36&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) SS&C common stock trades on Nasdaq, with the company repurchasing 1.8 million shares in Q4 2022, and its stock underperforming benchmark indices since 2017 Q4 2022 Common Stock Repurchases | Period | Shares Purchased (millions) | Average Price Paid per Share | | :--- | :--- | :--- | | Nov 2022 | 1.2 | $49.78 | | Dec 2022 | 0.6 | $50.86 | | **Total Q4** | **1.8** | N/A | - The Board of Directors authorized a new **$1 billion** stock repurchase program in July 2022. As of December 31, 2022, approximately **$694.8 million** remained available under this program[179](index=179&type=chunk)[180](index=180&type=chunk) Cumulative Total Return Comparison (2017-2022) | Investment | 12/31/2017 | 12/31/2022 | | :--- | :--- | :--- | | SS&C Technologies Holdings, Inc. | $100 | $134 | | Nasdaq Composite - Total Returns | $100 | $159 | | Nasdaq Technology Dividend TR Index | $100 | $158 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) SS&C's 2022 revenues grew to $5.28 billion, driven by acquisitions, though operating income declined to $1.14 billion, with total debt reaching $7.13 billion [Results of Operations](index=40&type=section&id=7.1%20Results%20of%20Operations) In 2022, total revenues increased to $5.28 billion, driven by acquisitions, but operating income declined to $1.14 billion due to higher operating and interest expenses Revenues by Source (in millions) | Revenue Source | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Software-enabled services | $4.27 billion | $4.26 billion | 0.4% | | License, maintenance and related | $1.01 billion | $794.9 million | 26.9% | | **Total revenues** | **$5.28 billion** | **$5.05 billion** | **4.6%** | Operating Expenses (in millions) | Expense Category | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Selling and marketing | $500.1 million | $394.1 million | 26.9% | | Research and development | $447.3 million | $414.9 million | 7.8% | | General and administrative | $425.0 million | $358.0 million | 18.7% | | **Total operating expenses** | **$1.37 billion** | **$1.17 billion** | **17.6%** | - Interest expense increased to **$312.2 million** in 2022 from **$205.7 million** in 2021, primarily due to higher average interest rates (**4.22%** vs. **3.05%**) and higher average debt balances following the Blue Prism acquisition[203](index=203&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=7.2%20Liquidity%20and%20Capital%20Resources) SS&C's 2022 cash from operations decreased to $1.13 billion, with total debt at $7.13 billion, primarily used for acquisitions, stock repurchases, and dividends Summary of Cash Flows (in millions) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1.13 billion | $1.43 billion | | Net cash used in investing activities | $(1.76 billion) | $(148.2 million) | | Net cash (used in) provided by financing activities | $(1.18 billion) | $556.7 million | - Total debt stood at **$7.13 billion** as of December 31, 2022. This includes **$5.13 billion** under senior secured credit facilities and **$2.00 billion** in senior notes[223](index=223&type=chunk)[406](index=406&type=chunk) Reconciliation of Net Income to Consolidated EBITDA (in millions) | Line Item | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net income | $649.0 million | $800.6 million | $625.2 million | | EBITDA | $1.86 billion | $1.91 billion | $1.75 billion | | **Consolidated EBITDA** | **$2.01 billion** | **$2.07 billion** | **$1.86 billion** | [Critical Accounting Estimates](index=49&type=section&id=7.3%20Critical%20Accounting%20Estimates) Critical accounting estimates involve valuing investments, goodwill impairment testing ($8.86 billion), capitalizing software development costs, and accounting for complex acquisitions and stock-based compensation - Goodwill impairment testing is a critical estimate. As of Dec 31, 2022, the company had two reporting units, and the impairment analysis indicated that the fair values of both significantly exceeded their carrying values[254](index=254&type=chunk) - Acquisition accounting requires significant judgment in allocating purchase price to acquired assets, such as determining the fair value of customer relationships and completed technology using discounted cash flow and relief-from-royalty methods[257](index=257&type=chunk) - Estimating the fair value of stock-based compensation requires judgment, including the expected term of options and stock price volatility. For performance-based awards, management must estimate the likelihood of achieving performance goals[265](index=265&type=chunk)[266](index=266&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks including interest rate risk from $5.13 billion in variable-rate debt, equity price risk from investments, and foreign currency exchange rate risk from international revenues - As of December 31, 2022, the company had **$5.13 billion** of variable interest rate debt. A **100 basis point** increase in interest rates would result in an approximate **$51.3 million** increase in annual interest expense[271](index=271&type=chunk) - The company has exposure to equity price risk from **$56.3 million** in equity investments. A **10%** change in the fair value of these investments would impact net income by approximately **$4.2 million**[272](index=272&type=chunk) - Approximately **29%** of 2022 revenues were generated from clients outside the U.S., creating exposure to foreign currency exchange rate fluctuations, particularly with the British pound[273](index=273&type=chunk) [Financial Statements and Supplementary Data](index=53&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2022, including the unqualified auditor's report and detailed notes on accounting policies, acquisitions, and debt [Report of Independent Registered Public Accounting Firm](index=54&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP issued an unqualified opinion on the financial statements and internal controls, highlighting goodwill impairment and Blue Prism intangible asset valuation as critical audit matters - The auditor, PricewaterhouseCoopers LLP, issued an **unqualified opinion** on both the financial statements and the effectiveness of internal control over financial reporting[281](index=281&type=chunk) - A critical audit matter was the goodwill impairment assessment of the health business reporting unit, which involved significant management judgment regarding revenue growth rates[290](index=290&type=chunk)[291](index=291&type=chunk) - Another critical audit matter was the valuation of completed technology and customer relationship intangible assets from the Blue Prism acquisition, which required complex assumptions about future revenues, royalty rates, and discount rates[293](index=293&type=chunk)[294](index=294&type=chunk) [Consolidated Financial Statements](index=57&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets of $16.65 billion and liabilities of $10.55 billion in 2022, with net income of $649.0 million on $5.28 billion in revenues Consolidated Balance Sheet Highlights (in millions) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Assets | $16.65 billion | $17.33 billion | | Goodwill | $8.86 billion | $8.05 billion | | Total Liabilities | $10.55 billion | $11.11 billion | | Long-term Debt (net) | $7.02 billion | $5.90 billion | | Total Equity | $6.10 billion | $6.22 billion | Consolidated Income Statement Highlights (in millions, except EPS) | Account | 2022 | 2021 | | :--- | :--- | :--- | | Total Revenues | $5.28 billion | $5.05 billion | | Operating Income | $1.14 billion | $1.24 billion | | Net Income | $649.0 million | $800.6 million | | Diluted EPS | $2.48 | $2.99 | [Notes to Consolidated Financial Statements](index=61&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the $1.6 billion Blue Prism acquisition, $7.13 billion total debt, $476.1 million in stock repurchases, and a $51.5 million legal contingency - In March 2022, SS&C acquired Blue Prism Group plc for approximately **$1.6 billion** in cash, resulting in the recognition of **$951.4 million** in goodwill[386](index=386&type=chunk)[398](index=398&type=chunk) - The company has an ongoing legal contingency related to the DST ERISA litigation, for which it has recorded an accrued liability of **$51.5 million** as of year-end 2022[460](index=460&type=chunk) - In 2022, the company repurchased **7.8 million** shares of common stock for **$476.1 million** and paid cash dividends totaling **$203.1 million**[422](index=422&type=chunk)[424](index=424&type=chunk) [Controls and Procedures](index=90&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2022, excluding the recently acquired Blue Prism - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[477](index=477&type=chunk) - Management's assessment of internal control over financial reporting concluded that controls were effective. The assessment excluded Blue Prism, acquired in March 2022, as permitted[479](index=479&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, and Security Ownership](index=92&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Information for these items is incorporated by reference from the company's definitive proxy statement for the 2023 annual meeting of stockholders - Information for Items 10 through 14 is incorporated by reference from the registrant's definitive proxy statement for the 2023 annual meeting of stockholders[485](index=485&type=chunk)[486](index=486&type=chunk)[487](index=487&type=chunk)[488](index=488&type=chunk)[489](index=489&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=92&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the annual report, including corporate governance documents, debt agreements, and required certifications - This section provides a comprehensive list of all exhibits filed with the annual report, including corporate governance documents, debt indentures, material contracts, and required certifications[492](index=492&type=chunk)[493](index=493&type=chunk)[494](index=494&type=chunk) ```

SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2022 Earnings Conference Call February 7, 2023 5:00 PM ET Company Participants Justine Stone - Head, Investor Relations Bill Stone - Chairman and CEO Rahul Kanwar - President and COO Patrick Pedonti - Chief Financial Officer Conference Call Participants Surinder Thind - Jefferies Alex Kramm - UBS Jeff Schmitt - William Blair Peter Heckmann - D.A. Davidson Andrew Schmidt - Citi Kevin McVeigh - Credit Suisse Terry Tillman - Truist Securities James Faucette - M ...

• Quarterly retention rate is based on a rolling prior twelve months. • Acquisitions are not included in retention rate calculation until one year postacquisition. Note: Retention rates calculated for financial services businesses Adjusted net income and adjusted diluted EPS attributable to SS&C | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------|---------|---------|---------|-------------|----------|----------| | $341.3 | $334.4 | $289.6 | $298.8 | $296.6 | $1,342 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of Registrant as specified in its charter) Delaware 71-0987913 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 80 Lamberton Road Windso ...

SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q3 2022 Results Conference Call October 27, 2022 5:00 PM ET Company Participants Justine Stone - Head of Investor Relations Bill Stone - Chairman and Chief Executive Officer Patrick Pedonti - Senior Vice President and Chief Financial Officer Rahul Kanwar - President and Chief Operating Officer Conference Call Participants Andrew Schmidt - Citigroup Alexander Kramm - UBS Investment Bank Peter Heckmann - D.A. Davidson Jeffrey Schmitt - William Blair & Company Kev ...

PART 1. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited financial statements for Q2 2022 show increased assets and revenues, but decreased net income and operating cash flow due to acquisitions [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$17.50 billion** by June 30, 2022, driven by goodwill from acquisitions, while liabilities rose due to increased long-term debt Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$17,500.3** | **$17,333.0** | | Cash and cash equivalents | $438.3 | $564.0 | | Goodwill | $8,866.8 | $8,045.5 | | Intangible and other assets, net | $4,358.1 | $3,805.3 | | **Total Liabilities** | **$11,386.1** | **$11,109.8** | | Long-term debt, net of current portion | $7,234.5 | $5,901.5 | | **Total Stockholders' Equity** | **$6,112.1** | **$6,223.2** | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 2022 total revenues grew to **$1.33 billion**, but operating income and net income declined significantly year-over-year Q2 and Six Months Performance Comparison (in millions, except EPS) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,328.7 | $1,259.0 | $2,623.7 | $2,492.4 | | Gross Profit | $624.3 | $595.0 | $1,244.1 | $1,154.1 | | Operating Income | $245.6 | $312.9 | $537.4 | $582.0 | | Net Income Attributable to SS&C | $110.6 | $189.8 | $282.7 | $364.7 | | Diluted EPS | $0.42 | $0.71 | $1.06 | $1.36 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased, while investing activities saw a **$1.67 billion** outflow primarily due to business acquisitions Cash Flow Summary for Six Months Ended June 30 (in millions) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $447.5 | $562.3 | | Net cash used in investing activities | $(1,673.6) | $(17.9) | | Net cash provided by financing activities | $69.2 | $1,175.8 | | Net (decrease) increase in cash | $(1,178.6) | $1,718.6 | - Cash paid for business acquisitions, net of cash acquired, was **$1,597.1 million** for the first six months of 2022, compared to a net cash inflow of **$7.3 million** in the same period of 2021[11](index=11&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, significant acquisitions like **Blue Prism** for **$1.6 billion**, and ongoing legal proceedings related to DST ERISA matters - The company adopted ASU 2021-08 for business combinations as of January 1, 2022, which changes the accounting for contract assets and liabilities from acquired contracts[17](index=17&type=chunk) - On March 16, 2022, the company acquired **Blue Prism Group plc** for approximately **$1.6 billion** in cash, a leader in enterprise robotics process automation[32](index=32&type=chunk) - The company is involved in multiple legal proceedings related to the DST 401(k) Profit Sharing Plan, alleging breaches of fiduciary duties under ERISA. An accrued liability of **$43.4 million** was recorded in Q3 2021[69](index=69&type=chunk)[71](index=71&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2022 revenue growth driven by acquisitions, increased operating expenses, and strong liquidity despite significant acquisition-related cash outflows - Q2 2022 revenue increased by **$69.7 million (5.5%)**, with acquisitions contributing **$65.6 million** and organic growth adding **$27.9 million**, offset by a **$23.8 million** negative impact from foreign currency translation[85](index=85&type=chunk) - Operating expenses for Q2 2022 rose by **$96.6 million (34.2%)**, driven by **$55.6 million** from acquisitions and a **$49.2 million** increase in organic expenses related to personnel, travel, and IT[94](index=94&type=chunk) Consolidated EBITDA Reconciliation (in millions) | Metric | Twelve Months Ended June 30, 2022 | | :--- | :--- | | Net income | $717.5 | | EBITDA | $1,802.9 | | **Consolidated EBITDA** | **$2,047.9** | | Consolidated EBITDA attributable to SS&C common stockholders | $2,045.6 | - The company was in compliance with its debt covenants as of June 30, 2022, with a maximum consolidated net secured leverage ratio of **2.48**, well below the requirement of **6.25x**[132](index=132&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q2 2022 total revenues increased **5.5%** to **$1.33 billion** due to acquisitions and organic growth, but operating income declined due to surging expenses Revenue Growth Analysis (Q2 2022 vs Q2 2021) | Revenue Stream | 2022 (in millions) | 2021 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Software-enabled services | $1,070.7 | $1,057.1 | 1.3% | | License, maintenance and related | $258.0 | $201.9 | 27.8% | | **Total revenues** | **$1,328.7** | **$1,259.0** | **5.5%** | - The increase in License, maintenance and related revenues was primarily due to acquisitions, which added **$58.5 million**[85](index=85&type=chunk) - Interest expense increased in Q2 and H1 2022 compared to 2021 due to higher average interest rates and higher average debt balances following the Blue Prism acquisition financing[96](index=96&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by operating cash flow and credit facilities, despite **$1.6 billion** in acquisition-related cash outflows and significant debt financing Cash Flow Summary - Six Months Ended June 30 (in millions) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Operating activities | $447.5 | $562.3 | | Investing activities | $(1,673.6) | $(17.9) | | Financing activities | $69.2 | $1,175.8 | - In March 2022, the company entered into an Incremental Joinder to its credit agreement, adding a **$650.0 million** Term B-6 Loan and an **$880.0 million** Term B-7 Loan to finance the Blue Prism acquisition[48](index=48&type=chunk) - In July 2022, the Board authorized a new stock repurchase program for up to **$1 billion** of common stock. During the first six months of 2022, the company repurchased **2.3 million** shares for **$170.9 million**[52](index=52&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations, equity price changes, and foreign currency exposure, particularly with the British pound - A **100 basis point** increase in interest rates would increase annual interest expense by approximately **$53.5 million** due to the company's **$5.35 billion** in variable rate debt[139](index=139&type=chunk) - The company has **$61.4 million** in investments subject to equity price risk; a **10%** change in fair value would impact net income by approximately **$4.6 million**, net of tax[140](index=140&type=chunk) - About **29%** of revenues for the first six months of 2022 came from outside the U.S., creating exposure to foreign currency exchange rate risk, particularly with the British pound[141](index=141&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of June 30, 2022, the company's disclosure controls and procedures were effective at the reasonable assurance level[143](index=143&type=chunk) - No changes occurred during the fiscal quarter ended June 30, 2022, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[144](index=144&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings, including ongoing DST ERISA matters, is incorporated by reference from Note 14 of the financial statements - Information regarding significant legal proceedings, particularly the DST ERISA matters, is detailed in Note 14 of the Condensed Consolidated Financial Statements and is incorporated by reference[147](index=147&type=chunk) - Management believes that the final outcome of other legal proceedings arising from the normal course of business will not have a material adverse effect on the company's consolidated financial condition, operations, or cash flows[148](index=148&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the 2021 Annual Report on Form 10-K - As of the filing date of this report, no material changes have been made to the risk factors disclosed in the 2021 Annual Report on Form 10-K[149](index=149&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during the second quarter of 2022 - There were no repurchases of the company's common stock in the second quarter of 2022[150](index=150&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report, including CEO and CFO certifications and Inline XBRL data files - The exhibits filed with this report include certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act[154](index=154&type=chunk) - The filing includes various Inline XBRL documents for interactive data purposes[154](index=154&type=chunk)