01—Abstract
Summary
Summary of the 8-K filed July 25, 2024. Cited figures are marked; the original filing is the authoritative source.
SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) reported second-quarter 2024 results on July 25, 2024.
GAAP revenue was $1,451.5 milliona, up 6.5%, and diluted GAAP EPS was $0.75, up 47.1%. Adjusted revenue was $1,452.4 million, up 6.5%, and adjusted diluted EPS was $1.27, up 17.6%. Adjusted organic revenue growth was 6.4%, and Financial Services recurring revenue growth was 7.7%.
GAAP operating income was $327.6 millionb, with a 22.6% operating margin, and adjusted consolidated EBITDA attributable to SS&C was $558.9 million, up 11.2%. The company generated net cash from operating activities of $565.4 million for the six months ended June 30, 2024, compared with $584.2 million a year earlier. At quarter end it held $462.7 million in cash and cash equivalents and $6,653.1 million in gross debt.
Its consolidated net leverage ratio under the credit agreement was 2.84 times consolidated EBITDA attributable to SS&C. In Q2 2024 it repurchased 3.7 million shares for $227.0 millionc, at an average price of $62.17 per share.
The Board authorized a renewed stock repurchase program of up to $1 billiond of outstanding common stock, which may run until the one-year anniversary of the authorization unless terminated earlier. The company also issued guidance for Q3 2024 and full-year 2024, including FY 2024 adjusted revenue of $5,706.2 to $5,866.2 million and adjusted diluted EPS of $4.98 to $5.22.
02—Key points
Key Highlights
- Q2 2024 GAAP revenue of $1,451.5 million rose 6.5% year over year; GAAP diluted EPS of $0.75 rose 47.1%.
- Adjusted diluted EPS of $1.27 rose 17.6%; adjusted revenue of $1,452.4 million rose 6.5%.
- Adjusted organic revenue growth was 6.4%, and Financial Services recurring revenue growth was 7.7%.
- Board authorized a renewed stock repurchase program of up to $1 billion of common stock.
- In Q2 2024 the company repurchased 3.7 million shares for $227.0 million, described as its highest buyback in any quarter in its history.
- FY 2024 guidance calls for adjusted revenue of $5,706.2 to $5,866.2 million and adjusted diluted EPS of $4.98 to $5.22.
- Consolidated net leverage ratio was 2.84 times consolidated EBITDA attributable to SS&C as of June 30, 2024.
03—Questions
Frequently Asked Questions
How did SS&C perform financially in the second quarter of 2024?
GAAP revenue was $1,451.5 million, up 6.5%, and GAAP operating income was $327.6 million, up 13.7%. Diluted GAAP EPS was $0.75, up 47.1%. Adjusted diluted EPS was $1.27, up 17.6%.
What is the new stock repurchase program?
The Board authorized the renewal of a stock repurchase program allowing the company to buy back up to $1 billion of outstanding common stock. Purchases may be made on the open market, in privately negotiated transactions, or through other legally permissible means, including under a Rule 10b5-1 plan. The program may be suspended or discontinued at any time and runs until the one-year anniversary of the Board's authorization unless terminated earlier.
What guidance did SS&C provide for 2024?
For Q3 2024, adjusted revenue is expected at $1,420.0 to $1,460.0 million and adjusted diluted EPS at $1.21 to $1.27. For full-year 2024, adjusted revenue is expected at $5,706.2 to $5,866.2 million, adjusted diluted EPS at $4.98 to $5.22, and cash from operating activities at $1,305.0 to $1,385.0 million.
What is SS&C's balance sheet and cash flow position?
As of June 30, 2024, SS&C had $462.7 million in cash and cash equivalents and $6,653.1 million in gross debt. Net cash from operating activities was $565.4 million for the six months ended June 30, 2024. The consolidated net leverage ratio was 2.84 times, and the net secured leverage ratio was 1.60 times.
04—Continue