1 2 Forward-looking statements are only predictions that relate to future events or our future performance and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results, outcomes, levels of activity, performance, developments, or achievements to be materially different from any future results, outcomes, levels of activity, performance, developments, or achievements expressed, anticipated, or implied by these forward-looking statements. Other factors ...

Financial Data and Key Metrics Changes - The company reported record adjusted revenue of $1.412 billion, an increase of 5.5% year-over-year, with adjusted diluted earnings per share rising by 8.6% to $1.26 [7][12][37] - Adjusted consolidated EBITDA reached $563 million, marking the highest in the company's history, with an EBITDA margin of 39.8%, a 300 basis point increase from Q2 2023 [7][14][35] - Net cash from operating activities for 2023 was $1.215 billion, with a net leverage ratio of 3.05 times and a net secured leverage ratio of 2.1 times [8][15] Business Line Data and Key Metrics Changes - The alternatives business grew by 7.8%, Intralinks by 18.6%, and Retirement by 12.8% in Q4 [35] - The adjusted organic revenue growth for Q4 was 4.5%, driven by strength in alternatives, retirement, and Intralinks businesses [31][35] - Recurring revenue growth rate for financial services was 6.9%, up from 5.9% in Q3 [31] Market Data and Key Metrics Changes - The company processed 15 million claims in January, exceeding expectations by over 10%, and anticipates processing 45 million claims by the end of Q1 [33] - The financial services revenue retention rate remains above 97% over the last 12 months [31] Company Strategy and Development Direction - The company is focused on product innovation and enhancements, as well as client service, with a continued emphasis on managing expenses and improving operating margins [40] - The digital worker initiative is expected to yield $100 million in annual savings, with plans to increase productivity through automation strategies [35][40] - The company aims to capitalize on regulatory changes driving activity in retirement income solutions and rollovers [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about opportunities in the financial services industry as firms seek to reduce costs and improve technology [11] - The company anticipates a similar focus on share repurchases in 2024, with guidance for adjusted organic revenue growth in the range of 2.7% to 6.3% [8][16][41] - Management noted that the rise in short-term interest rates has impacted earnings per share, contributing to a slight decline compared to the previous year [39] Other Important Information - The company plans to roll out the second release of DomaniRx, which will include full commercial Medicare and Medicaid functionality, in June 2024 [9] - The company has appointed Debra Walton-Ruskin as a new Director on the Board, bringing extensive experience in fintech and financial data [43] Q&A Session Summary Question: What is embedded in guidance for organic growth? - Management highlighted accomplishments in Q4 2023, including large insurance company implementations, which provide confidence for 2024 [45] Question: Can you contextualize the growth in Alternatives? - Management indicated that private markets are a significant contributor, with approximately 35% to 40% of revenue coming from private equity and private credit [66] Question: What is the target for digital workers? - Management expects opportunities to increase margins by 100 to 200 basis points through digital worker processes [72] Question: What does the deal pipeline look like for M&A? - Management is focused on expanding fund administration and targeting existing businesses that can enhance current client services [86] Question: How much of the incremental revenue in 2024 is expected from price increases? - Management anticipates a similar amount of price lift in 2024 as seen in 2023, with a more predictable view on revenue [87]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%201.%20FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) SS&C Technologies Holdings, Inc.'s unaudited condensed consolidated financial statements detail financial position, performance, and cash flows for the periods ended September 30, 2023 Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Assets | $16,180.0 | $16,653.3 | | Total Liabilities | $9,975.7 | $10,550.4 | | Total Equity | $6,201.5 | $6,100.8 | Condensed Consolidated Statements of Comprehensive Income Highlights (in millions, except per share data) | Metric | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,365.9 | $1,321.0 | $4,091.2 | $3,944.7 | | Operating Income | $306.4 | $304.2 | $874.7 | $841.6 | | Net Income | $156.6 | $159.8 | $413.7 | $441.4 | | Diluted EPS | $0.61 | $0.61 | $1.62 | $1.68 | Condensed Consolidated Statements of Cash Flows Highlights (in millions) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $826.7 | $764.6 | | Net cash used in investing activities | ($167.1) | ($1,707.8) | | Net cash used in financing activities | ($812.6) | ($751.7) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes support the financial statements, covering revenue disaggregation, debt structure, compensation, and legal contingencies Revenue by Source - Q3 2023 vs Q3 2022 (in millions) | Revenue Source | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Software-enabled services | $1,122.1 | $1,049.8 | | Maintenance and term licenses | $211.6 | $237.4 | | Professional services | $26.8 | $27.7 | | Perpetual licenses | $5.4 | $6.1 | - As of September 30, 2023, total debt consisted of **$4.83 billion** in senior secured credit facilities and **$2.0 billion** in 5.5% senior notes due 2027[34](index=34&type=chunk) - In connection with the DST ERISA legal proceedings, the company recorded an accrued liability of **$55.1 million**; the settlement was granted final approval on October 25, 2023[51](index=51&type=chunk)[61](index=61&type=chunk) - Subsequent to the quarter end, on October 1, 2023, the company acquired OneVue Fund Services Pty Ltd. for approximately **$32.5 million** in cash[72](index=72&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting revenue growth, increased interest expense, strong liquidity, and debt covenant compliance [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Operating results are detailed, showing revenue growth from software-enabled services, improved gross margin, and increased net interest expense Revenue Change - Q3 2023 vs Q3 2022 (in millions) | Revenue Source | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Software-enabled services | $1,122.1 | $1,049.8 | 6.9% | | License, maintenance and related | $243.8 | $271.2 | (10.1)% | | **Total revenues** | **$1,365.9** | **$1,321.0** | **3.4%** | - The increase in Q3 2023 revenues was primarily driven by **$29.4 million** in organic growth, strength in SS&C GlobeOp fund administration, virtual data room services, Global Investor and Distribution Solutions, and the Blue Prism business[78](index=78&type=chunk) - Net interest expense for Q3 2023 was **$120.6 million**, a significant increase from **$86.0 million** in Q3 2022, driven by a higher average interest rate on debt (**6.87%** vs. **4.55%**)[86](index=86&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash requirements and sources are outlined, detailing operating cash flow, uses of cash, and available liquidity Summary of Cash Flows - Nine Months Ended Sep 30, 2023 (in millions) | Activity | Amount | | :--- | :--- | | Net cash provided by operating activities | $826.7 | | Purchases of common stock for treasury | ($341.0) | | Net repayments of debt | ($224.5) | | Dividends paid on common stock | ($160.9) | | Capitalized software development costs | ($140.9) | - As of September 30, 2023, the company had **$523.7 million** available for borrowing under its **$600.0 million** Revolving Credit Facility[101](index=101&type=chunk) [Covenant Compliance](index=27&type=section&id=Covenant%20Compliance) The company's compliance with its maximum consolidated net secured leverage ratio is detailed, including Consolidated EBITDA calculations Consolidated Net Secured Leverage Ratio as of Sep 30, 2023 | Metric | Requirement | Actual | | :--- | :--- | :--- | | Maximum consolidated net secured leverage to Consolidated EBITDA ratio | 6.25x | 2.21x | - Consolidated EBITDA attributable to SS&C common stockholders for the twelve months ended September 30, 2023, was **$2,063.8 million**[117](index=117&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to market risks, including interest rate, equity price, and foreign currency fluctuations, is discussed - At September 30, 2023, the company had approximately **$4,905.1 million** in variable interest rate debt; a **100 basis point** increase in rates would increase annual interest expense by about **$49.1 million**[127](index=127&type=chunk) - The company has **$49.0 million** in investments exposed to equity price risk; a **10%** change in fair value would impact net income by approximately **$3.6 million**[128](index=128&type=chunk) - For the nine months ended September 30, 2023, about **31%** of revenues were from clients outside the United States, with the majority of foreign currency exposure denominated in the British pound[129](index=129&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that as of September 30, 2023, the company's disclosure controls and procedures were effective at the reasonable assurance level[132](index=132&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[133](index=133&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings are detailed, including the final approval of the DST ERISA settlement and assessment of other ongoing matters - The company incorporates by reference the details of legal proceedings from Note 14, which describes the DST ERISA matters[135](index=135&type=chunk) - A settlement for the DST ERISA matters was granted final approval on October 25, 2023; DST will pay approximately **$55.1 million** to fund its share of the global settlement[51](index=51&type=chunk)[61](index=61&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were identified since the last annual report - There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022[137](index=137&type=chunk) [Issuer Purchases of Equity Securities](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Details of common stock repurchases during Q3 2023 are provided, including the new $1 billion repurchase program Share Repurchases in Q3 2023 | Period | Total Shares Purchased (millions) | Average Price Paid per Share | | :--- | :--- | :--- | | July 2023 | — | $ — | | August 2023 | 1.5 | $56.65 | | September 2023 | 0.2 | $54.49 | | **Total** | **1.7** | | - In July 2023, the Board of Directors authorized a new stock repurchase program, allowing for the purchase of up to **$1 billion** of outstanding common stock[36](index=36&type=chunk)[139](index=139&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including executive offer letters and required SOX certifications - The exhibits filed with the report include an offer letter for Brian N. Schell and certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[142](index=142&type=chunk)

Financial Data and Key Metrics Changes - Q3 2023 adjusted organic revenue increased by 2.3%, driven by strength in alternatives, particularly private markets, Intralinks, Retirement, and Blue Prism [9] - Q3 2023 GAAP revenues were $1,365.9 million, with net income of $156 million and diluted earnings per share of $0.61 [17] - Adjusted revenues for Q3 2023 were $1,366.7 million, up 3.4% year-over-year, with adjusted diluted EPS of $1.17, a 1.7% increase from Q3 2022 [17][18] - Cash from operating activities for the nine months ended September 30 was $826.7 million, up 8.1% year-over-year [10] - The company paid down $54.7 million in debt in Q3 2023, resulting in a net leverage ratio of 3.18 times consolidated EBITDA [11][26] Business Line Data and Key Metrics Changes - The Alternatives business grew by 8.4% in Q3, supported by a significant private credit client acquisition [20] - Intralinks experienced over 10% growth despite low M&A deal volume, attributed to increased contract values and new tools [40] - Retirement services grew by 15% in Q3, reflecting the go-live of large clients from previous deals [54] Market Data and Key Metrics Changes - Financial Services retention rate for Q3 2023 was 97.3%, the highest in the company's history [9] - The company reported a significant deal pipeline in fund administration exceeding $400 million, indicating strong future revenue potential [38] Company Strategy and Development Direction - The company emphasizes client service and aims to maintain high retention rates while managing expenses with a disciplined approach [27] - Focus on enhancing productivity through digital workers and automation technologies, with a notable deployment of Blue Prism digital workers [19][21] - The company is optimistic about growth opportunities in the healthcare sector, particularly with the DomaniRx initiative [111] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to cross-sell and upsell within the existing client base, contributing to improved retention rates [36] - The company anticipates adjusted organic growth for Q4 in the range of 1.8% to 4.8%, with full-year growth expected between 2.1% and 2.9% [27][30] - Management acknowledged challenges in software license revenue but expects a rebound in Q4 and 2024 [38][86] Other Important Information - The company raised its quarterly dividend by 20% to $0.24 per share, returning $156.6 million to shareholders in Q3 [10] - The company showcased over 40 solutions at the SS&C Deliver Conference, emphasizing AI and robotic process automation [32] Q&A Session Summary Question: What is driving the revenue retention rates? - Management attributed high retention rates to a focus on customer service and improved customer relationship management programs [36] Question: Can you discuss the deal pipeline and conversion cycles? - Management noted a strong pipeline in fund administration and expected a rebound in software license revenue [38][45] Question: What is driving the growth in the retirement segment? - Growth was driven by the go-live of large clients, with more expected in 2024 [54][92] Question: Are there any M&A opportunities in the market? - Management indicated interest in tuck-in acquisitions but emphasized the need for discipline in pricing [90] Question: How is the healthcare business performing? - The healthcare segment is stabilizing, with significant opportunities anticipated from the DomaniRx initiative [111]

(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) ```

Financial Data and Key Metrics Changes - Adjusted revenue for Q4 2022 was $1.339 billion, an increase of 3.3% year-over-year, while adjusted diluted earnings per share were $1.16, down 9.4% [4][48] - Adjusted consolidated EBITDA was $518.6 million, representing an EBITDA margin of 38.7%, which is an increase of 330 basis points from the low point in Q2 2022 [8][25] - For the full year 2022, net cash from operating activities was $1.134 billion, with a consolidated net leverage ratio of 3.4 times [17][32] Business Line Data and Key Metrics Changes - Adjusted organic revenue was flat, with total organic growth for the year at 2%, and Financial Services organic growth at 3.7% [16][49] - The strength in software businesses, particularly in Alternatives, Institutional, and Investment Management, was noted, while the GIDS transfer agency and Healthcare businesses faced challenges [5][49] - Acquisitions contributed $72.5 million to revenue, but foreign exchange had an unfavorable impact of $28.7 million [23] Market Data and Key Metrics Changes - The private credit market is seen as a significant opportunity, with the company investing in scalable offerings that integrate multiple technologies [20] - The hedge fund business is expected to see slight growth, while private markets are projected to grow in the high teens [90][92] Company Strategy and Development Direction - The company remains methodically opportunistic in its acquisition strategy, evaluating several opportunities as valuations have come down [7] - There is a focus on enhancing productivity through digital workers, with plans to deploy between 1,350 to 2,700 digital workers in 2023 [37][64] - The company aims to improve operating margins by managing expenses and controlling variable costs [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improved operating environment in 2023, anticipating growth opportunities [35][100] - The company expects adjusted organic growth for 2023 to be between 2% and 6%, with Q1 guidance indicating a range of negative 0.5% to positive 2.5% [58][60] - Management acknowledged challenges such as inflation and geopolitical issues but remains cautiously optimistic about future performance [100] Other Important Information - The company paid down $166 million in debt during Q4 2022 and has a stock buyback program authorized for up to $1 billion [6][30] - Capital expenditures totaled $208 million, primarily for capitalized software and IT infrastructure [57] Q&A Session Summary Question: Can you discuss the efficiencies from digital workers? - Management indicated that digital workers take over repetitive tasks, allowing employees to focus on more interesting work, with an expected average savings of $50,000 per digital worker deployed [37][64] Question: What is the outlook for organic growth? - Management expects organic growth to accelerate in 2023, with contributions from price increases, new business, and clearing backlogs [122] Question: How is the Healthcare business performing? - The Healthcare business is expected to see a reduction in revenue, with a projected decline of about 10% in 2023, but management is cautiously optimistic about future growth [86][94] Question: What are the expectations for the hedge fund and private markets? - The hedge fund business is anticipated to grow slightly, while private markets are expected to grow in the high teens, contributing positively to overall growth [90][92] Question: Can you elaborate on the acquisition strategy? - Management stated that they are looking for opportunities in the fintech space, focusing on companies that can enhance productivity and align with their operational capabilities [81][141]