ARS' Lifetime Income Builder Products to Join SS&C Retirement Income Clearing & Calculation (RICC) PlatformWINDSOR, Conn., March 18, 2025 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that ARS, an innovative guaranteed lifetime income solutions and technology provider for the defined contribution market, has partnered with SS&C Retirement Solutions to distribute and service its suite of Lifetime Income Builder retirement products.ARS' Lifetime Income Builder offers group fi ...

Core Viewpoint - The company SS&C Technologies Holdings, Inc. is reaffirmed as a strong investment opportunity, being the largest global provider of software and technology-enabled services for the financial services and healthcare industries [1]. Company Summary - SS&C Technologies has shown stronger performance since the last analysis, indicating positive growth and potential for investors [1]. - The company operates primarily in the technology, infrastructure, and internet services sectors, focusing on firms with solid fundamentals and growth potential [1]. Analyst Background - The analyst has a robust background in financial modeling, valuation, and data analysis, holding certifications in Financial Modeling & Valuation Analyst and Business Intelligence & Data Analyst [1]. - The analyst expresses a keen interest in the stock market as a means to grow wealth and aims to provide valuable insights to readers and investors interested in long-term investing [1].

WINDSOR, Conn., March 5, 2025 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that Dimensional Fund Advisors (DFA), a global leader in systematic investing, has extended its transfer agency agreement with SS&C Global Investor and Distribution Solutions (GIDS) for its U.K. fund range. SS&C will provide transfer agency (TA) services for Dimensional's open-ended investment company (OEIC) funds, which manage GBP 8.7 billion in assets.*"We are pleased to continue our relationship ...

Financial Performance and Risks - The company's operating results, including profit margins and profitability, are expected to fluctuate over time due to various factors such as the timing and nature of license and service transactions [109]. - An increase in subaccounting services performed by brokerage firms has adversely impacted revenues, with lower fees charged on a per unit basis compared to traditional shareowner accounting [113]. - The company has substantial investments in private equity funds, which are illiquid and may decline in value, potentially impacting financial condition [141]. - The company’s financial health may be adversely affected by increases in interest rates and economic volatility [164]. - Average daily cash balances maintained in bank accounts for 2024 were approximately $2.3 billion, with a 100 basis point change in interest rates equating to approximately $11.6 million in net income annually [302]. - Total debt as of December 31, 2024, was $7,045 million, including $4,295 million of variable interest rate debt, with a 100 basis point increase in interest rates resulting in an approximate $43 million change in interest expense per year [303]. - Fair value of investments subject to equity price risk as of December 31, 2024, was approximately $43.9 million, with a 10% change in fair value impacting net income by approximately $3.3 million [304]. Regulatory and Compliance Challenges - The regulatory landscape surrounding AI is evolving and uncertain, with emerging regulations that may vary across jurisdictions and are subject to change [133]. - The company is subject to examinations by various authorities, including tax authorities, which may affect its financial condition and results of operations [112]. - The evolving regulatory environment, including the Dodd-Frank Act and the E.U.'s AIFMD, poses compliance challenges that could lead to sanctions or operational limitations [152]. - The company is subject to extensive regulations that could impact demand for its products and services, particularly in the healthcare industry [154]. - The company is subject to various data privacy laws, including the U.S. Health Insurance Portability and Accountability Act (HIPAA) and the California Consumer Privacy Act (CCPA), which pose compliance challenges and potential costs [158]. - The company faces risks related to compliance with international data protection regulations, such as the EU's General Data Protection Regulation (GDPR), which imposes strict privacy and data security requirements [159]. - The company may incur significant costs and liabilities due to privacy concerns, which could inhibit the use of its platform and affect sales [161]. Operational and Market Risks - The company faces challenges in adapting to rapidly changing technology and evolving industry standards, which may affect its ability to enhance existing products and develop new ones [123]. - The development and use of machine learning and artificial intelligence (AI) present risks, including potential inaccuracies and biases in AI outputs, which could impact the company's business [125][126]. - Catastrophic events, such as pandemics or natural disasters, could adversely affect the company's operations and client relationships [114]. - A significant portion of the company's business is conducted outside the U.S., exposing it to risks from foreign currency exchange rate fluctuations [139]. - The company does not currently engage in material hedging activities, increasing its exposure to currency risks [140]. - Approximately 31% of revenues in 2024 were from clients located outside the U.S., with exposure to foreign currency exchange rates primarily from transactions in British pounds [306]. Legal and Litigation Risks - Legal and regulatory risks could significantly affect the company's operations and financial results, especially in the financial and healthcare sectors [147]. - The company faces potential claims and litigation from clients and third parties, which could divert management resources and harm its reputation [156]. - The company is exposed to litigation regarding intellectual property rights, which could result in significant liability and adversely affect its business [162]. - The company may face legal uncertainties regarding the protectability of AI-generated works, which could limit its ability to secure exclusive intellectual property rights [128]. Shareholder and Governance - The company’s Chairman and CEO, William C. Stone, beneficially owns approximately 14.0% of the outstanding shares, giving him significant influence over company affairs [179]. - The company’s ability to pay dividends is limited by its status as a holding company and the terms of its indebtedness agreements [180]. - The company’s stock price has fluctuated significantly, trading as high as $84.85 and as low as $6.64 since its initial public offering [175].

Core Insights - LPL Financial has expanded its partnership with SS&C Technologies to enhance its alternatives business through the integration of SS&C ALTSERVE™ [1][2] - The collaboration aims to streamline back and middle-office functions, standardize data feeds, and improve the custody of alternative investment products [2][8] Company Overview - LPL Financial Holdings Inc. is one of the fastest-growing wealth management firms in the U.S., supporting nearly 29,000 financial advisors and servicing approximately $1.7 trillion in brokerage and advisory assets for around 6 million Americans [3][5] - SS&C Technologies is a global provider of services and software for the financial services and healthcare industries, with over 22,000 organizations relying on its expertise and technology [6]

Core Insights - Arrowpoint Investment Partners has selected SS&C GlobeOp to administer its flagship $1 billion multi-strategy fund, which utilizes 18 portfolio managers across Hong Kong and Singapore [1][2] - Arrowpoint aims to integrate multiple strategies using technology to achieve consistent, high-quality, risk-adjusted returns, focusing on investments in Asia [2] - SS&C GlobeOp is positioned to support Arrowpoint by managing the complexities of multi-strategy vehicles, including various asset classes and reporting requirements [3] Company Overview - Arrowpoint Investment Partners is an Asia-focused investment firm founded by Jonathan Xiong, emphasizing a differentiated multi-strategy platform [4] - SS&C Technologies is a global provider of services and software for financial services and healthcare, with over 22,000 organizations relying on its expertise and technology [4]

Core Viewpoint - SS&C Technologies Holdings, Inc. has announced a quarterly dividend payout of $0.25 per share, maintaining its dividend policy, with the payment date set for March 17, 2025 [1]. Company Overview - SS&C Technologies is a global provider of services and software for the financial services and healthcare industries, founded in 1986 and headquartered in Windsor, Connecticut [1]. - The company serves over 22,000 financial services and healthcare organizations, ranging from the largest companies to small and mid-market firms, leveraging its expertise, scale, and technology [1].

Financial Data and Key Metrics Changes - The company reported record adjusted revenue of $1.531 billion, an increase of 8.4% year-over-year [10] - Adjusted diluted earnings per share reached $1.58, up 25.4% from the previous year [10] - Adjusted consolidated EBITDA was $599.1 million, reflecting a 6.5% increase, with a margin of 39.1% [10][21] - Cash from operating activities for Q4 was $486.6 million, up 25.3% from Q4 2023 [12] Business Line Data and Key Metrics Changes - Wealth and Investment Technologies grew by 6.8% in Q4, with the Black Diamond wealth platform growing in the mid-teens [15] - The fund administration business, GlobeOp, contributed an additional $21 million in revenue for the year, with organic growth of 8% [17] - Intralinks had a record bookings and revenue quarter, driven by solid deal count trends and technological advancements [18] Market Data and Key Metrics Changes - The recurring revenue growth rate for financial services was 7.4% for Q4 and 7.2% for the full year 2024 [12] - The company holds a 5% market share of the 22 million superannuation fund accounts in Australia, indicating significant growth potential [13] Company Strategy and Development Direction - The company is focusing on share repurchases as the best use of capital in the absence of high-quality acquisitions [12] - A strategic lift-out agreement with Insignia Financial aims to enhance superannuation member administrative services in Australia [13] - The company plans to manage expenses with a cost-disciplined approach while investing in marketing, sales, and R&D for future growth [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the healthcare business, citing new license deals and a strong pipeline for 2025 [39] - The company anticipates revenue for Q1 2025 to be in the range of $1.474 to $1.514 billion, with 4% organic growth at the midpoint [29] - For the full year 2025, revenue is expected to be between $6.085 to $6.245 billion, with 5% organic growth at the midpoint [29] Other Important Information - The company revised its full-year 2024 non-GAAP effective tax rate to 23.1%, which is expected to increase adjusted EPS by approximately $0.21 [24] - SS&C ended Q4 with $567.1 million in cash and cash equivalents and $7 billion in gross debt [25] Q&A Session Summary Question: Update on healthcare business and pipeline for 2025 - Management noted several large license deals won in Q4, indicating strong momentum and optimism for long-term opportunities in healthcare [38][39] Question: Insights on cross-selling efforts and revenue opportunities - There are currently 75 active cross-selling opportunities, with potential revenue growth upwards of $100 to $110 million in 2025 [41][42] Question: Surprises in Q4 performance and demand environment - Overall business performance exceeded expectations, with better close rates and significant license deals contributing to stronger results [47] Question: Investment cycle and components for 5% organic growth in 2025 - Management highlighted the importance of large-scale services business growth and the gradual ramp-up of client contracts as key components for achieving growth targets [55][56] Question: Superannuation opportunity in Australia - The company has a strong position in the Australian market with significant growth potential, supported by existing technology and client relationships [60] Question: Details on Insignia Financial deal and revenue contribution - The Insignia deal is expected to be significant, likely ranking among the top twenty clients, with revenue contributions anticipated in the second half of 2025 [64][65] Question: Automation initiatives and savings - The company has implemented around 1,550 digital workers, resulting in savings projected to reach between $150 million to $200 million [92]

Core Insights - SS&C Technologies reported revenue of $1.53 billion for the quarter ended December 2024, reflecting an 8.4% increase year-over-year [1] - The company's EPS was $1.58, up from $1.26 in the same quarter last year, exceeding the consensus estimate of $1.32 by 19.70% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $1.48 billion, resulting in a surprise of 3.18% [1] Revenue Breakdown - License, maintenance, and related revenues were $275.70 million, exceeding the average estimate of $261.46 million by analysts, representing a year-over-year increase of 3.6% [4] - Software-enabled services revenues reached $1.25 billion, surpassing the average estimate of $1.22 billion, marking a 9.5% increase compared to the previous year [4] - Adjusted revenues for software-enabled services also stood at $1.25 billion, consistent with the previous figure and reflecting a 9.5% year-over-year change [4] - Adjusted revenues for license, maintenance, and related services were $275.80 million, exceeding the two-analyst average estimate of $272.04 million, indicating a 3.7% increase year-over-year [4] Stock Performance - SS&C Technologies' shares have returned 7.6% over the past month, outperforming the Zacks S&P 500 composite's 2.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Company Performance - SS&C Technologies reported quarterly earnings of $1.58 per share, exceeding the Zacks Consensus Estimate of $1.32 per share, and up from $1.26 per share a year ago, representing an earnings surprise of 19.70% [1] - The company achieved revenues of $1.53 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.18%, and an increase from $1.41 billion year-over-year [2] - Over the last four quarters, SS&C Technologies has consistently surpassed consensus EPS and revenue estimates [2] Stock Movement and Outlook - SS&C Technologies shares have increased approximately 8% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $1.40 on revenues of $1.51 billion, and for the current fiscal year, it is $5.77 on revenues of $6.17 billion [7] Industry Context - The Computer - Software industry, to which SS&C Technologies belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of SS&C Technologies may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]