01—Abstract
Summary
Summary of the 10-K filed March 3, 2025. Cited figures are marked; the original filing is the authoritative source.
SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) reported revenues of $5,882.0 milliona for fiscal 2024, up from $5,502.8 million in 2023, with 73% of revenues from North America and 27% from outside North America.
Software-enabled services revenues were $4,840.3 millionb, up 7.8%, and license, maintenance and related revenues were $1,041.7 million, up 2.7%. Net income was $761.7 million, compared with $608.6 million in 2023, and diluted EPS was $3.00 versus $2.39. Operating cash flow rose to $1,388.6 million from $1,215.1 million.
Income tax expense fell to $132.0 millionc, with an effective tax rate of 14.8% versus 29.0% in 2023, which management attributed mainly to releases of uncertain tax positions and other discrete items. The company's largest 2024 acquisition was Battea-Class Action Services, LLC, acquired in September 2024 for approximately $671 million in cash. Total indebtedness was $7,045.0 million at December 31, 2024, and the company refinanced in May 2024 with $3,935.0 million of Term B-8 loans and $750.0 million of 6.5% senior notes due 2032.
The company returned capital through $737.5 milliond of treasury stock purchases and $244.9 million in dividends during 2024, and it had $596.3 million available under its revolving credit facility at year end. The auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion on the financial statements and on internal control over financial reporting as of December 31, 2024, with Battea excluded from the internal control assessment. The company reported approximately 26,800 full-time employees and 110 offices in 35 countries, and it disclosed average revenue retention rates above 95% over the last five years for its core enterprise products.
02—Key points
Key Highlights
- Revenues rose to $5,882.0 million in 2024 from $5,502.8 million in 2023, with software-enabled services at $4,840.3 million (up 7.8%) and license, maintenance and related at $1,041.7 million (up 2.7%).
- Net income increased to $761.7 million from $608.6 million, and diluted EPS rose to $3.00 from $2.39.
- Effective tax rate was 14.8% in 2024 versus 29.0% in 2023, driven by releases of uncertain tax positions and a state tax benefit.
- Operating cash flow was $1,388.6 million, up from $1,215.1 million in 2023.
- Total indebtedness was $7,045.0 million at year end, including the May 2024 $3,935.0 million Term B-8 loans and $750.0 million 6.5% senior notes due 2032.
- Battea-Class Action Services, LLC was acquired in September 2024 for approximately $671 million in cash, and the company repurchased $737.5 million of common stock and paid $244.9 million in dividends during 2024.
- Management reported average revenue retention rates above 95% over each of the last five years on core enterprise software-enabled services, maintenance and term license contracts.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, SS&C Technologies Holdings kept $0.13.
- Revenue$5.88B100.0%
- Cost of revenue−$3.02B51.3%
- Gross profit$2.86B48.7%
- Operating costs−$1.52B25.8%
- Operating income$1.34B22.8%
- Interest, other & tax−$581.8M9.9%
- Net income$761.7M12.9%
Where FY2024 revenue went
$5.88B- Cost of revenue: $3.02B, 51% of revenue
- Other operating costs: $1.00B, 17% of revenue
- Net income: $761.7M, 13% of revenue
- R&D: $517.7M, 8.8% of revenue
- Interest, other & tax: $581.8M, 9.9% of revenue
Kept 13% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed March 3, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $5.88B$5.50B | +6.9% |
| Cost of Revenue | $3.02B$2.85B | +5.9% |
| Gross Profit | $2.86B$2.65B | +8.0% |
| R&D Expenses | $517.70M$473.80M | +9.3% |
| Operating Expenses | $1.52B$1.44B | +5.4% |
| Operating Income | $1.34B$1.21B | +11.1% |
| Interest Expense | $463.00M$476.30M | −2.8% |
| Net Income | $761.70M$608.60M | +25.2% |
| EPS (Basic) | $3.09$2.45 | +26.1% |
| EPS (Diluted) | $3.00$2.39 | +25.5% |
| Shares Outstanding (Basic) | 246.40M248.30M | −0.8% |
| Shares Outstanding (Diluted) | 253.80M254.50M | −0.3% |
05—Questions
Frequently Asked Questions
How did SS&C's revenue and profitability change in 2024?
Total revenues increased to $5,882.0 million from $5,502.8 million, and net income attributable to SS&C common stockholders rose to $760.5 million from $607.1 million. Diluted EPS increased to $3.00 from $2.39. The filing attributes the revenue increase mainly to organic growth of $336.8 million, with acquisitions contributing $31.7 million and favorable foreign currency translation contributing $10.7 million.
Why was the effective tax rate lower in 2024?
The effective tax rate was 14.8% in 2024 compared with 29.0% in 2023. The filing attributes the decrease primarily to releases of uncertain tax positions in the current year, recognition of a state tax benefit tied to income apportionment rules, a larger relative benefit from stock-based compensation, and a change in the composition of income between foreign and domestic jurisdictions.
What is SS&C's debt position and how was it refinanced?
Total debt was $7,045.0 million at December 31, 2024, and the company had $596.3 million available under its revolving credit facility. In May 2024 it borrowed $3,935.0 million of Term B-8 loans and issued $750.0 million of 6.5% senior notes due 2032, using the proceeds to repay its existing term loans. In September 2024 it added $800.0 million of Term A-9 loans to help finance the Battea acquisition. The filing estimates annual interest payments of approximately $431.1 million.
How much capital did SS&C return to shareholders in 2024?
SS&C purchased $737.5 million of common stock for treasury in 2024 under its $1 billion repurchase program authorized in July 2024, which had $545.0 million remaining at December 31, 2024 per the filing's repurchase table. It also paid $244.9 million in quarterly dividends, and its Board declared a $0.25 per share quarterly dividend on February 14, 2025.
What are the main risks highlighted in the filing?
Key risks include dependence on the health of the financial services and healthcare industries and on asset management activity, competition, cyber-attacks and IT disruptions, exposure to international operations (international revenues were 31% of total revenues in 2024), currency fluctuations, significant indebtedness with variable-rate SOFR-based borrowings, regulatory and data privacy compliance, and the risk of not realizing anticipated benefits from acquisitions.
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