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]

SS&C (SSNC) Q4 2024 Earnings Call February 06, 2025 05:00 PM ET Company Participants Chandana Madaka - Investor RelationsWilliam Stone - CEORahul Kanwar - President & COOBrian Schell - Executive VP & CFOAlexei Gogolev - Executive DirectorDan Perlin - Managing DirectorPeter Heckmann - MD - Equity ResearchKevin McVeigh - Managing Director Conference Call Participants Jeff Schmitt - Research Analyst - Financial Services and TechnologyAndrew Schmidt - Equity Research Analyst Operator Good afternoon. My name is ...

Financial Performance - Q4 2024 GAAP revenue reached $1,529.7 million, an increase of 8.4% compared to Q4 2023[2] - Adjusted revenue for Q4 2024 was $1,530.7 million, also up 8.4% year-over-year[2] - Q4 2024 diluted earnings per share attributable to SS&C was $0.98, reflecting a 27.3% increase from $0.77 in Q4 2023[2] - SS&C achieved a record adjusted consolidated EBITDA of $599.1 million in Q4 2024, up 6.5% from the previous year[4] - Total revenues for Q4 2024 reached $1,529.7 million, a 8.4% increase from $1,411.6 million in Q4 2023[14] - Adjusted operating income for Q4 2024 was $582.9 million, compared to $546.0 million in Q4 2023, marking a 6.7% increase[25] - Net income for Q4 2024 was $248.4 million, up from $194.9 million in Q4 2023, representing a growth of 27.4%[28] - GAAP net income for Q4 2024 was $248.4 million, up from $194.9 million in Q4 2023, representing a 27.4% increase[31] - Adjusted net income for the twelve months ended December 31, 2024, reached $1,377.1 million, compared to $1,187.6 million in 2023, reflecting a 15.9% growth[31] Revenue Breakdown - Software-enabled services revenue was $1,254.0 million, up 9.5% from $1,145.5 million year-over-year[14] - License, maintenance, and related revenue for Q4 2024 was $275.7 million, up from $266.1 million in Q4 2023, reflecting a growth of 3.6%[23] - Q4 2024 adjusted organic revenue growth was 7.0%, with financial services recurring revenue growth at 7.4%[4] - Adjusted revenues for the full year 2024 were $5,885.7 million, up from $5,505.8 million in 2023, reflecting a growth of 6.9%[23] Cash Flow and Assets - The company reported a net cash from operating activities of $1,388.6 million for the twelve months ended December 31, 2024, a 14.3% increase from 2023[5] - Cash flow from operating activities for the year was $1,388.6 million, up from $1,215.1 million in 2023[18] - Total assets increased to $19,044.7 million in 2024, compared to $18,102.5 million in 2023[16] - Cash and cash equivalents at the end of the period were $567.1 million, up from $432.2 million in 2023[19] Shareholder Returns - SS&C repurchased 4.9 million shares for $365.7 million in Q4 2024, at an average price of $74.46 per share[4] - Basic earnings per share attributable to SS&C common stockholders increased to $3.09, compared to $2.45 in the previous year[14] - Adjusted diluted earnings per share attributable to SS&C for Q4 2024 increased to $1.12, compared to $0.95 in Q4 2023[30] - Adjusted diluted earnings per share attributable to common stockholders increased to $1.58 in Q4 2024 from $1.26 in Q4 2023, a rise of 25.4%[31] Liabilities and Equity - Total liabilities increased to $12,435.6 million, compared to $11,704.8 million in 2023[16] - Goodwill rose to $9,218.1 million, an increase from $8,969.5 million year-over-year[16] Guidance and Expectations - For Q1 2025, SS&C expects adjusted revenue between $1,474.0 million and $1,514.0 million[6] - The guidance for FY 2025 adjusted revenue is projected to be between $6,085.0 million and $6,245.0 million[6] Other Financial Metrics - The company reported a comprehensive income of $645.6 million for the year, compared to $730.9 million in 2023[14] - EBITDA for the full year 2024 was $2,025.7 million, compared to $1,997.9 million in 2023, indicating a 1.4% increase[28] - The effective tax rate for adjusted net income was revised to 15.1% for Q4 2024, compared to approximately 26% for the same period in 2023[32] Expenses and Costs - Stock-based compensation expenses increased to $55.4 million in Q4 2024 from $41.9 million in Q4 2023, marking a 32.9% increase[31] - Facilities and workforce restructuring costs were reported at $7.8 million for Q4 2024, down from $14.3 million in Q4 2023, indicating a 45.5% decrease[31] - The company experienced a loss on extinguishment of debt amounting to $1.1 million in Q4 2024, compared to $1.0 million in Q4 2023[31] - The company reported a total amortization of intangible assets of $157.5 million for Q4 2024, slightly up from $151.3 million in Q4 2023[31] Foreign Currency Impact - The company reported foreign currency translation gains of $6.6 million in Q4 2024, compared to losses of $3.9 million in Q4 2023[31] Share Count - The diluted weighted-average shares outstanding were 254.5 million in Q4 2024, slightly up from 252.1 million in Q4 2023[31]

Core Insights - Wall Street analysts expect SS&C Technologies (SSNC) to report quarterly earnings of $1.32 per share, reflecting a year-over-year increase of 4.8% [1] - Revenue projections for SS&C Technologies stand at $1.48 billion, indicating a 5% increase from the previous year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, suggesting stability in analysts' forecasts [1] Revenue Estimates - Analysts predict 'Revenues- License, maintenance and related' to reach $261.89 million, a decrease of 1.6% from the prior-year quarter [4] - 'Revenues- Software-enabled services' are expected to be $1.22 billion, showing a year-over-year increase of 6.4% [4] - 'Adjusted Revenues- Software-enabled services' are also forecasted at $1.22 billion, reflecting a change of 6.3% from the previous year [4] - The average estimate for 'Adjusted Revenues- License, maintenance and related' is $272.04 million, indicating a 2.2% increase from the year-ago quarter [5] Stock Performance - Over the past month, SS&C Technologies shares have gained 7.7%, outperforming the Zacks S&P 500 composite, which increased by 1% [6] - SS&C Technologies holds a Zacks Rank 3 (Hold), suggesting that its performance is expected to align with the overall market in the near term [6]

Core Insights - SS&C Technologies Holdings, Inc. has acquired FPS Trust Company, enhancing its scalable benefit payment solutions for institutional clients [1][3] - FPS Trust specializes in high-volume beneficiary distributions, paying agent services, and tax processing solutions for institutional trustees and retirement plan administrators [2] - The acquisition will allow SS&C to strengthen its existing partnership with FPS Trust and expand its service offerings, particularly for wealth managers [3] 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 [5] - The company serves over 20,000 financial services and healthcare organizations, ranging from large corporations to small and mid-market firms [5] Industry Context - IPX Retirement, the seller of FPS Trust, is a leading provider of trust, custody, IRA, and recordkeeping services to the retirement plan industry, emphasizing a multi-vendor approach [4]

SS&C survey of 400+ global M&A professionals signals bullish market sentiment WINDSOR, Conn., Jan. 23, 2025 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced the publication of the SS&C Intralinks 2025 Global M&A Dealmakers Sentiment Report. In association with Reuters, SS&C Intralinks surveyed 419 global M&A dealmakers from private equity firms, corporates advisory firms and investment banks to see where the market is heading. "With Wall Street banks reporting stronger earning ...