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SS&C Technologies Holdings 8-K Report, Financial Results (Apr 25, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 25, 2024
Period End
April 25, 2024
Security
SSNC
In the record · 2016–202610-K1210-Q328-K107

SSNC filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 107 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’17Mar ’17
  2. Leadership change8-K · Aug ’19Aug ’19
  3. Deal closed8-K · Mar ’22Mar ’22
  4. Leadership change8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed April 25, 2024. Cited figures are marked; the original filing is the authoritative source.

SS&C Technologies Holdings, Inc. reported first-quarter 2024 results on April 25, 2024, as stated in Item 2.02 of this Form 8-K, which furnishes a press release (Exhibit 99.1) and an earnings presentation (Exhibit 99.2).

GAAP revenue was $1,435.0 milliona, up 5.3% from $1,362.7 million, and GAAP diluted EPS attributable to SS&C was $0.62, up 26.5% from $0.49. Adjusted revenue was a record $1,435.8 million, up 5.3%, and adjusted diluted EPS was $1.28, up 12.3% from $1.14. Adjusted consolidated EBITDA attributable to SS&C was $556.8 million, up 9.4%, and the adjusted consolidated EBITDA margin was 38.8%.

The company reported organic revenue growth of 4.7% for the quarter. Cash flow and balance sheet metrics were mixed. Net cash from operating activities was $180.5 millionb, a 29.2% decrease from $254.8 million in the prior-year quarter.

SS&C ended the quarter with $412.5 millionc in cash and cash equivalents and $6,679.0 million in gross debt. The company paid down $79.9 million of debt, and its consolidated net leverage ratio stood at 2.95 times consolidated EBITDA attributable to SS&C. During the quarter it repurchased 0.8 million shares for $52.9 million, at an average price of $63.24 per share, and paid $59.7 million in common stock dividends.

For full-year 2024, the company guided to adjusted revenue of $5,694.6 million to $5,854.6 milliond and adjusted diluted EPS of $4.93 to $5.17, with cash from operating activities expected between $1,302.0 million and $1,382.0 million. For the second quarter, it guided to adjusted revenue of $1,412.1 million to $1,452.1 million and adjusted diluted EPS of $1.16 to $1.22. The company stated that it does not reconcile these adjusted guidance figures to GAAP measures because certain items are difficult to forecast without unreasonable effort.

02—Key points

Key Highlights

  1. GAAP revenue of $1,435.0 million, up 5.3%; adjusted revenue a record $1,435.8 million, up 5.3%
  2. GAAP operating income of $332.9 million, up 18.9%, with a 23.2% operating income margin (up 260 bps)
  3. GAAP diluted EPS of $0.62, up 26.5%; adjusted diluted EPS of $1.28, up 12.3%
  4. Organic revenue growth of 4.7%; Intralinks grew 23.0% and Alternatives grew 5.5%, while Healthcare declined 8.5%
  5. Operating cash flow fell 29.2% to $180.5 million, from $254.8 million a year earlier
  6. Net leverage ratio of 2.95 times after paying down $79.9 million of debt; $52.9 million of share repurchases and $59.7 million of dividends in the quarter
  7. FY 2024 guidance: adjusted revenue of $5,694.6 million to $5,854.6 million and adjusted diluted EPS of $4.93 to $5.17

03—Questions

Frequently Asked Questions

  1. How did SS&C perform on revenue and profitability in Q1 2024?

    GAAP revenue was $1,435.0 million, up 5.3%, and GAAP operating income was $332.9 million, up 18.9%. GAAP net income attributable to SS&C was $157.6 million, up 25.1%. Adjusted consolidated EBITDA attributable to SS&C was $556.8 million, up 9.4%, with a 38.8% margin.

  2. What drove growth in the quarter?

    Per the CEO's statement in the press release, growth was driven by Intralinks and Alternatives. The presentation shows Intralinks organic growth of 23.0% and Alternatives organic growth of 5.5%, while Healthcare declined 8.5% on attrition carried over from 2023. Organic growth excluding Healthcare was 5.4%.

  3. How is SS&C's cash generation and balance sheet position?

    Operating cash flow was $180.5 million, down from $254.8 million. The company ended the quarter with $412.5 million in cash and cash equivalents and $6,679.0 million in gross debt. Its consolidated net leverage ratio was 2.95 times, and its net secured leverage ratio was 2.02 times.

  4. How is SS&C returning capital to shareholders?

    In Q1 2024 SS&C repurchased 0.8 million shares for $52.9 million at an average price of $63.24 per share and paid $59.7 million in common stock dividends. The presentation states that 58% of capital allocation went to shareholders.

  5. What guidance did SS&C provide?

    For Q2 2024, the company expects adjusted revenue of $1,412.1 million to $1,452.1 million and adjusted diluted EPS of $1.16 to $1.22. For full-year 2024, it expects adjusted revenue of $5,694.6 million to $5,854.6 million, adjusted diluted EPS of $4.93 to $5.17, and cash from operating activities of $1,302.0 million to $1,382.0 million.

04—Continue

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