STOCK TITAN

SS&C Technologies Releases Q3 2024 Earnings Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

SS&C Technologies (SSNC) reported strong Q3 2024 financial results with GAAP revenue of $1,465.8 million, up 7.3% year-over-year. The company achieved adjusted diluted earnings per share of $1.29, marking a 10.3% increase. Notable highlights include organic revenue growth of 6.4%, Financial Services Recurring Revenue growth of 7.2%, and the completion of Battea-Class Action Services acquisition for $670 million. Operating cash flow reached $902.0 million for the nine months ended September 30, 2024, up 9.1%. The company maintains a strong financial position with $694.7 million in cash and provided guidance for Q4 2024 with adjusted revenue expected between $1,460.0 – $1,500.0 million.

SS&C Technologies (SSNC) ha riportato solidi risultati finanziari per il terzo trimestre del 2024, con entrate GAAP pari a 1.465,8 milioni di dollari, in aumento del 7,3% rispetto all'anno precedente. L'azienda ha raggiunto un utile per azione diluito rettificato di 1,29 dollari, con un incremento del 10,3%. Tra i punti salienti ci sono la crescita delle entrate organiche del 6,4%, la crescita delle entrate ricorrenti nei servizi finanziari del 7,2% e il completamento dell'acquisizione dei servizi della classe d’azione Battea per 670 milioni di dollari. Il flusso di cassa operativo ha raggiunto 902,0 milioni di dollari per i nove mesi terminati il 30 settembre 2024, in aumento del 9,1%. L'azienda mantiene una solida posizione finanziaria con 694,7 milioni di dollari in cassa e ha fornito indicazioni per il quarto trimestre del 2024, prevedendo ricavi rettificati compresi tra 1.460,0 e 1.500,0 milioni di dollari.

SS&C Technologies (SSNC) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos GAAP de 1,465.8 millones de dólares, un aumento del 7.3% en comparación con el año anterior. La empresa logró un ingreso por acción diluido ajustado de 1.29 dólares, marcando un incremento del 10.3%. Entre los aspectos destacados se incluyen un crecimiento orgánico de ingresos del 6.4%, un crecimiento de ingresos recurrentes en Servicios Financieros del 7.2% y la finalización de la adquisición de los Servicios de Clase de Acción Battea por 670 millones de dólares. El flujo de caja operativo alcanzó los 902.0 millones de dólares para los nueve meses que terminaron el 30 de septiembre de 2024, un aumento del 9.1%. La empresa mantiene una posición financiera sólida con 694.7 millones de dólares en efectivo y ha proporcionado orientación para el cuarto trimestre de 2024, con ingresos ajustados esperados entre 1,460.0 y 1,500.0 millones de dólares.

SS&C 테크놀로지스 (SSNC)는 2024년 3분기 강력한 재무 실적을 보고하였으며, GAAP 수익은 14억 6,580만 달러로, 전년 대비 7.3% 증가하였습니다. 회사는 조정된 희석 주당 순이익이 1.29달러로 10.3% 증가했습니다. 주요 하이라이트로는 유기적 수익 성장 6.4%, 금융 서비스 반복 수익 성장 7.2%, 6억 7천만 달러에 Battea-클래스 액션 서비스 인수 완료가 있습니다. 운영 현금 흐름은 2024년 9월 30일로 종료된 9개월 동안 9억 2천만 달러에 도달하여 9.1% 증가했습니다. 회사는 6억 9천4백70만 달러의 현금을 보유하고 있으며 2024년 4분기에 대한 지침을 제공하여 조정된 수익이 14억 6천만 달러에서 15억 달러 사이로 예상되고 있습니다.

SS&C Technologies (SSNC) a rapporté de solides résultats financiers pour le troisième trimestre 2024, avec des revenus GAAP de 1,465.8 millions de dollars, en hausse de 7.3% par rapport à l'année précédente. La société a atteint un bénéfice par action dilué ajusté de 1,29 dollars, enregistrant une augmentation de 10,3%. Parmi les points forts figurent une croissance organique des revenus de 6,4%, une croissance des revenus récurrents des services financiers de 7,2%, et l'achèvement de l'acquisition des services de classe action Battea pour 670 millions de dollars. Le flux de trésorerie d'exploitation a atteint 902,0 millions de dollars pour les neuf mois se terminant le 30 septembre 2024, en hausse de 9,1%. L'entreprise maintient une solide position financière avec 694,7 millions de dollars en liquidités et a fourni des prévisions pour le quatrième trimestre 2024, avec des revenus ajustés attendus entre 1.460,0 et 1.500,0 millions de dollars.

SS&C Technologies (SSNC) hat starke Finanzzahlen für das dritte Quartal 2024 berichtet, mit GAAP-Umsätzen von 1.465,8 Millionen US-Dollar, was einem Anstieg von 7,3 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte ein bereinigtes verwässertes Ergebnis pro Aktie von 1,29 US-Dollar, was einem Anstieg von 10,3 % entspricht. Zu den bemerkenswerten Highlights gehören ein organisches Umsatzwachstum von 6,4 %, ein Anstieg der wiederkehrenden Umsätze im Finanzdienstleistungsbereich um 7,2 % sowie der Abschluss der Akquisition der Battea-Klagenservice für 670 Millionen US-Dollar. Der operative Cashflow erreichte 902,0 Millionen US-Dollar in den neun Monaten bis zum 30. September 2024, was einem Anstieg von 9,1 % entspricht. Das Unternehmen hat eine starke finanzielle Position mit 694,7 Millionen US-Dollar in bar und gab eine Prognose für das vierte Quartal 2024 ab, wobei die bereinigten Einnahmen zwischen 1.460,0 und 1.500,0 Millionen US-Dollar erwartet werden.

Positive
  • GAAP revenue increased 7.3% to $1,465.8 million
  • Adjusted diluted EPS grew 10.3% to $1.29
  • Operating cash flow improved 9.1% to $902.0 million
  • Financial Services Recurring Revenue grew 7.2%
  • Organic revenue growth of 6.4%
Negative
  • Operating income margin decreased 20 bps to 22.2%
  • Adjusted operating income margin declined 50 bps to 37.4%
  • Adjusted consolidated EBITDA margin dropped 50 bps to 38.6%
  • High gross debt level of $7,243.1 million

Insights

SS&C Technologies delivered a strong Q3 2024 with notable financial metrics. $1.47B in adjusted revenue represents a solid 7.3% growth, while adjusted EPS of $1.29 showed impressive 10.3% growth. The company's organic revenue growth of 6.4% demonstrates healthy core business expansion.

The acquisition of Battea-Class Action Services for $670M appears strategically sound. With $902M in operating cash flow YTD and a manageable net leverage ratio of 2.94x, the company maintains financial flexibility despite carrying $7.24B in gross debt.

The Q4 guidance suggests continued momentum, projecting adjusted revenue of $1.46-1.50B and adjusted EPS of $1.29-1.35. The stable 38.6% EBITDA margin and strong recurring revenue growth of 7.2% in Financial Services indicate sustainable business performance.

Q3 2024 GAAP revenue $1,465.8 million, up 7.3%, Fully Diluted GAAP Earnings Per Share $0.65, up 6.6%

Record Adjusted revenue $1,466.8 million, up 7.3%, Adjusted Diluted Earnings Per Share $1.29, up 10.3%

WINDSOR, Conn., Oct. 24, 2024 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a global provider of investment, financial and healthcare software and software-enabled services, today announced its financial results for the third quarter ended September 30, 2024.


Three Months Ended
September 30,


Nine Months Ended
September 30,


(in millions, except per share data):

2024

2023

Change

2024

2023

Change

GAAP Results







Revenue

$1,465.8

$1,365.9

7.3 %

$4,352.3

$4,091.2

6.4 %

Operating income

325.1

306.4

6.1 %

985.6

874.7

12.7 %

Operating income margin

22.2 %

22.4 %

-20 bps

22.6 %

21.4 %

120 bps

Diluted earnings per share attributable to
SS&C

$0.65

$0.61

6.6 %

$2.02

$1.62

24.7 %

Net income attributable to SS&C

164.4

156.0

5.4 %

512.3

412.7

24.1 %

Adjusted Non-GAAP Results (defined in Notes 1 - 4 below)




Adjusted revenue

$1,466.8

$1,366.7

7.3 %

$4,355.0

$4,093.5

6.4 %

Adjusted operating income attributable to
SS&C

548.8

517.4

6.1 %

1,630.5

1,496.2

9.0 %

Adjusted operating income margin

37.4 %

37.9 %

-50 bps

37.4 %

36.6 %

80 bps

Adjusted diluted earnings per share
attributable to SS&C

$1.29

$1.17

10.3 %

$3.83

$3.39

13.0 %

Adjusted consolidated EBITDA attributable
to SS&C

566.2

533.9

6.0 %

1,681.9

1,545.2

8.8 %

Adjusted consolidated EBITDA margin

38.6 %

39.1 %

-50 bps

38.6 %

37.7 %

90 bps

Third Quarter 2024 Highlights:

  • Q3 2024 GAAP Revenue growth and Adjusted Revenue growth were 7.3 percent
  • Adjusted Organic Revenue Growth was 6.4 percent, Financial Services Recurring Revenue Growth was 7.2 percent.
  • Q3 2024 we bought back 1.2 million shares for $89.4 million, at an average price of $72.72 per share.
  • SS&C reported GAAP net income attributable to SS&C of $164.4 million, up 5.4 percent and adjusted consolidated EBITDA attributable to SS&C of $566.2 million for Q3 2024, up 6.0 percent.
  • GAAP operating income margin for Q3 2024 was 22.2 percent. Adjusted consolidated EBITDA margin for Q3 2024 was 38.6 percent.
  • SS&C completed its acquisition of Battea-Class Action Services on September 27, 2024 for a purchase price of approximately $670 million.

"SS&C reported strong results for Q3 2024, with organic revenue up 6.4 percent, accompanied by $1.29 in adjusted earnings per share, up 10.1 percent," says Bill Stone, Chairman and Chief Executive Officer. "A few weeks ago we hosted over 1,000 clients, prospects, and partners in New Orleans for our annual SS&C Deliver Conference. We showcased SS&C's strengths in emerging technology, best practice operational solutions, and deep industry expertise. Feedback has been overwhelmingly positive and we look forward to another great event in Scottsdale, AZ in 2025."

Operating Cash Flow

SS&C generated net cash from operating activities of $902.0 million for the nine months ended September 30, 2024, compared to $826.7 million for the same period in 2023, a 9.1% increase.  SS&C ended the third quarter with $694.7 million in cash and cash equivalents and $7,243.1 million in gross debt.  SS&C's net debt balance as defined in our credit agreement, which excludes cash and cash equivalents of $159.0 million held at DomaniRx, LLC was $6,707.3 million as of September 30, 2024.  SS&C's consolidated net leverage ratio as defined in our credit agreement stood at 2.94 times consolidated EBITDA attributable to SS&C as of September 30, 2024. SS&C's net secured leverage ratio stood at 1.74 times consolidated EBITDA attributable to SS&C as of September 30, 2024.

Guidance



Q4 2024


FY 2024

Adjusted Revenue ($M)


$1,460.0$1,500.0


$5,815.0$5,855.0

Adjusted Net Income attributable to SS&C
($M)


$329.0$345.0


$1,299.0$1,315.0

Interest Expense1 ($M)


$110.0$112.0


$442.0$444.0

Adjusted Diluted Earnings per Share
attributable to SS&C


$1.29$1.35


$5.12$5.18

Cash from Operating Activities ($M)



$1,330.0$1,370.0

Capital Expenditures (% of revenue)



4.1%4.5%

Diluted Shares (M)


254.6 – 255.6


253.6 – 253.8

Effective Income Tax Rate (%)


26 %


26 %


1Interest expense is net of deferred financing cost amortization and original issue discount

SS&C does not provide reconciliations of guidance for Adjusted Revenues and Adjusted Net Income to comparable GAAP measures, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.  SS&C is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures.  These items include acquisition transactions and integration, foreign exchange rate changes, as well as other non-cash and other adjustments as defined under the Company's Credit agreement, that are difficult to predict in advance in order to include in a GAAP estimate.  The unavailable information could have a significant impact on Q4 2024 and FY 2024 GAAP financial results.

Non-GAAP Financial Measures

Adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP measures.  See the accompanying notes for the reconciliations and definitions for each of these non-GAAP measures and the reasons our management believes these measures provide useful information to investors regarding our financial condition and results of operations.

Earnings Call and Press Release

SS&C's third quarter 2024 earnings call will take place at 5:00 p.m. eastern time today, October 24, 2024.  The call will discuss third quarter 2024 results.  Interested parties may dial 888-210-4650 (US and Canada) or 646-960-0327 (International), and request the "SS&C Technologies Third Quarter 2024 Earnings Conference Call"; conference ID #4673675.  In connection with the earnings call, a presentation will be available on SS&C's website at www.ssctech.com.  The call will be available for replay via the webcast on SS&C's website; access: https://investor.ssctech.com/financials/quarterly-results/default.aspx

Certain information contained in this press release relating to, among other things, the Company's financial guidance for the fourth quarter and full year of 2024 constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance, underlying assumptions, and other statements that are other than statements of historical facts. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects", "estimates", "projects", "forecasts", "may", "assume", "intend", "will", "continue", "opportunity", "predict", "potential", "future", "guarantee", "likely", "target", "indicate", "would", "could" and "should" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.  Such statements reflect management's best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated.  Such risks and uncertainties include, but are not limited to, the state of the economy and the financial services industry and other industries in which the Company's clients operate, the Company's ability to realize anticipated benefits from its acquisitions, including DST Systems, Inc., the effect of customer consolidation on demand for the Company's products and services, the increasing focus of the Company's business on the hedge fund industry, the variability of revenue as a result of activity in the securities markets, the ability to retain and attract clients, fluctuations in customer demand for the Company's products and services, the intensity of competition with respect to the Company's products and services, the exposure to litigation and other claims, terrorist activities and other catastrophic events, disruptions, attacks or failures affecting the Company's software-enabled services, risks associated with the Company's foreign operations, privacy concerns relating to the collection and storage of personal information, evolving regulations and increased scrutiny from regulators, the Company's ability to protect intellectual property assets and litigation regarding intellectual property rights, delays in product development, investment decisions concerning cash balances, regulatory and tax risks, risks associated with the Company's joint ventures, changes in accounting standards, risks related to the Company's substantial indebtedness, the market price of the Company's stock prevailing from time to time, and the risks discussed in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission and can also be accessed on our website.  Forward-looking statements speak only as of the date on which they are made and, except to the extent required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology.

Follow SS&C on Twitter, LinkedIn and Facebook.

 

SS&C Technologies Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(in millions, except per share data)
(unaudited)






Three Months Ended September 30,



Nine Months Ended September 30,




2024



2023



2024



2023


Revenues:













Software-enabled services


$

1,206.2



$

1,122.1



$

3,586.3



$

3,342.8


License, maintenance and related



259.6




243.8




766.0




748.4


Total revenues



1,465.8




1,365.9




4,352.3




4,091.2


Cost of revenues:













Software-enabled services



661.9




617.8




1,949.7




1,877.4


License, maintenance and related



99.7




93.7




292.9




281.3


Total cost of revenues



761.6




711.5




2,242.6




2,158.7


Gross profit



704.2




654.4




2,109.7




1,932.5


Operating expenses:













Selling and marketing



144.1




134.7




427.6




411.6


Research and development



131.3




117.7




380.9




355.5


General and administrative



103.7




95.6




315.6




290.7


Total operating expenses



379.1




348.0




1,124.1




1,057.8


Operating income



325.1




306.4




985.6




874.7


Interest expense, net



(109.6)




(120.6)




(338.9)




(350.5)


Other income (expense), net



9.3




(5.0)




16.5




15.3


Equity in earnings of unconsolidated affiliates, net



1.1




27.5




20.7




42.6


Loss on extinguishment of debt



(1.3)




(0.5)




(30.1)




(1.1)


Income before income taxes



224.6




207.8




653.8




581.0


Provision for income taxes



60.0




51.2




140.5




167.3


Net income



164.6




156.6




513.3




413.7


Net income attributable to noncontrolling interest



(0.2)




(0.6)




(1.0)




(1.0)


Net income attributable to SS&C common stockholders


$

164.4



$

156.0



$

512.3



$

412.7















Basic earnings per share attributable to SS&C common stockholders


$

0.67



$

0.63



$

2.08



$

1.66


Diluted earnings per share attributable to SS&C common stockholders


$

0.65



$

0.61



$

2.02



$

1.62















Basic weighted-average number of common shares outstanding



246.1




247.5




246.4




248.8


Diluted weighted-average number of common and common equivalent
shares outstanding



254.1




253.9




253.3




255.3















Net income


$

164.6



$

156.6



$

513.3



$

413.7


Other comprehensive income (loss), net of tax:













Foreign currency exchange translation adjustment



159.0




(113.0)




114.1




(4.8)


Change in defined benefit pension obligation









0.1





Total other comprehensive income (loss), net of tax



159.0




(113.0)




114.2




(4.8)


Comprehensive income



323.6




43.6




627.5




408.9


Comprehensive income attributable to noncontrolling interest



(0.2)




(0.6)




(1.0)




(1.0)


Comprehensive income attributable to SS&C common stockholders


$

323.4



$

43.0



$

626.5



$

407.9


 

SS&C Technologies Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)






September 30,



December 31,




2024



2023


Assets







Current assets:







Cash and cash equivalents


$

694.7



$

432.2


Funds receivable and funds held on behalf of clients



2,081.5




2,615.6


Accounts receivable, net



934.0




799.4


Contract asset



47.2




36.1


Prepaid expenses and other current assets



129.8




165.8


Restricted cash



3.5




2.4


Total current assets



3,890.7




4,051.5


Property, plant and equipment, net



309.4




315.3


Operating lease right-of-use assets



193.8




221.4


Investments



184.6




184.7


Unconsolidated affiliates



327.7




345.2


Contract asset



115.2




99.7


Goodwill



9,374.4




8,969.5


Intangible and other assets, net



4,042.6




3,915.2


Total assets


$

18,438.4



$

18,102.5


Liabilities and Equity







Current liabilities:







Current portion of long-term debt


$

47.1



$

51.5


Client funds obligations



2,081.6




2,615.6


Accounts payable



43.6




80.3


Income taxes payable



7.7




22.3


Accrued employee compensation and benefits



280.1




270.2


Interest payable



19.7




29.4


Other accrued expenses



275.9




232.3


Deferred revenue



464.0




470.3


Total current liabilities



3,219.7




3,771.9


Long-term debt, net of current portion



7,155.6




6,668.5


Operating lease liabilities



175.4




199.1


Other long-term liabilities



203.4




248.7


Deferred income taxes



796.2




816.6


Total liabilities



11,550.3




11,704.8


SS&C stockholders' equity



6,814.1




6,339.6


Noncontrolling interest



74.0




58.1


Total equity



6,888.1




6,397.7


Total liabilities and equity


$

18,438.4



$

18,102.5


 

SS&C Technologies Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)




Nine Months Ended September 30,




2024



2023


Cash flow from operating activities:







Net income


$

513.3



$

413.7


Adjustments to reconcile net income to net cash provided by operating activities:







Depreciation and amortization



504.3




500.4


Equity in earnings of unconsolidated affiliates, net



(20.7)




(42.6)


Distributions received from unconsolidated affiliates



13.1




21.2


Stock-based compensation expense



147.9




117.5


Net (gains) losses on investments



(2.5)




0.9


Amortization and write-offs of loan origination costs and original issue discounts



6.7




10.2


Loss on extinguishment of debt



30.1




1.1


Loss on sale or disposition of property and equipment






7.6


Deferred income taxes



(52.6)




(89.1)


Provision for credit losses



13.7




9.8


Changes in operating assets and liabilities, excluding effects from acquisitions:







Accounts receivable



(100.4)




(69.0)


Prepaid expenses and other assets



5.5




27.6


Contract assets



(25.3)




0.5


Accounts payable



(40.8)




(5.3)


Accrued expenses and other liabilities



(75.7)




(73.8)


Income taxes prepaid and payable



(8.9)




(16.3)


Deferred revenue



(5.7)




12.3


Net cash provided by operating activities



902.0




826.7


Cash flow from investing activities:







Cash paid for business acquisitions, net of cash acquired and asset acquisitions



(646.9)




(0.1)


Additions to property and equipment



(41.7)




(40.7)


Proceeds from sale of property and equipment



3.3





Additions to capitalized software



(149.7)




(140.9)


Investments in securities






(0.6)


Proceeds from sales / maturities of investments



0.3




7.7


Distributions received from unconsolidated affiliates



24.4





Collection of other non-current receivables



7.7




7.5


Net cash used in investing activities



(802.6)




(167.1)


Cash flow from financing activities:







Cash received from debt borrowings, net of original issue discount



5,545.0




275.0


Repayments of debt



(5,060.1)




(499.5)


Payment of deferred financing fees



(36.6)





Net decrease in client funds obligations



(952.2)




(163.7)


Proceeds from exercise of stock options



271.1




79.2


Withholding taxes paid related to equity award net share settlement



(20.3)




(1.7)


Purchases of common stock for treasury



(369.3)




(341.0)


Dividends paid on common stock



(182.6)




(160.9)


Proceeds from noncontrolling interests



14.9





Net cash used in financing activities



(790.1)




(812.6)


Effect of exchange rate changes on cash, cash equivalents and restricted cash



2.2




(4.2)


Net decrease in cash, cash equivalents and restricted cash



(688.5)




(157.2)


Cash, cash equivalents and restricted cash, beginning of period



2,998.6




1,337.6


Cash, cash equivalents and restricted cash and cash equivalents, end of period


$

2,310.1



$

1,180.4
















Reconciliation of cash, cash equivalents and restricted cash and cash equivalents:


Cash and cash equivalents


$

694.7



$

447.6


Restricted cash and cash equivalents



3.5




2.3


Restricted cash and cash equivalents included in funds receivable and funds held on behalf of
clients



1,611.9




730.5




$

2,310.1



$

1,180.4


SS&C Technologies Holdings, Inc. and Subsidiaries
Disclosures Relating to Non-GAAP Financial Measures

Note 1. Reconciliation of Revenues to Adjusted Revenues

Adjusted revenues represents revenues adjusted to include a) amounts that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition and b) amounts that would have been recognized if not for adjustments to deferred revenue and retained earnings related to the adoption of ASC 606.  Adjusted revenues is presented because we use this measure to evaluate performance of our business against prior periods and believe it is a useful indicator of the underlying performance of our business.  Adjusted revenues is not a recognized term under generally accepted accounting principles ("GAAP").  Adjusted revenues does not represent revenues, as that term is defined under GAAP, and should not be considered as an alternative to revenues as an indicator of our operating performance.  Adjusted revenues as presented herein is not necessarily comparable to similarly titled measures presented by other companies.  Below is a reconciliation of adjusted revenues to revenues, the GAAP measure we believe to be most directly comparable to adjusted revenues.



Three Months Ended
September 30,



Nine Months Ended
September 30,


(in millions)


2024



2023



2024



2023


Revenues


$

1,465.8



$

1,365.9



$

4,352.3



$

4,091.2


ASC 606 adoption impact



(0.7)




(0.8)




(2.2)




(2.5)


Purchase accounting adjustments impact on revenue



1.7




1.6




4.9




4.8


Adjusted revenues


$

1,466.8



$

1,366.7



$

4,355.0



$

4,093.5


The following is a breakdown of software-enabled services and license, maintenance and related revenues and adjusted software-enabled services and license, maintenance and related revenues.



Three Months Ended
September 30,



Nine Months Ended
September 30,


(in millions)


2024



2023



2024



2023


Software-enabled services


$

1,206.2



$

1,122.1



$

3,586.3



$

3,342.8


License, maintenance and related



259.6




243.8




766.0




748.4


Total revenues


$

1,465.8



$

1,365.9



$

4,352.3



$

4,091.2















Software-enabled services


$

1,207.3



$

1,123.1



$

3,589.1



$

3,345.4


License, maintenance and related



259.5




243.6




765.9




748.1


Total adjusted revenues


$

1,466.8



$

1,366.7



$

4,355.0



$

4,093.5


Note 2. Reconciliation of Operating Income to Adjusted Operating Income 

Adjusted operating income represents operating income adjusted for amortization of intangible assets, stock-based compensation, purchase accounting adjustments for deferred revenue and related costs, ASC 606 adoption impact and other expenses.  Adjusted operating income is presented because we use this measure to evaluate performance of our business and believe it is a useful indicator of our underlying performance.  Adjusted operating income is not a recognized term under GAAP.  Adjusted operating income does not represent operating income, as that term is defined under GAAP, and should not be considered as an alternative to operating income as an indicator of our operating performance.  Adjusted operating income as presented herein is not necessarily comparable to similarly titled measures by other companies.  The following is a reconciliation between adjusted operating income and operating income, the GAAP measure we believe to be most directly comparable to adjusted operating income.



Three Months Ended
September 30,



Nine Months Ended
September 30,


(in millions)


2024



2023



2024



2023


Operating income


$

325.1



$

306.4



$

985.6



$

874.7


Amortization of intangible assets



152.4




150.6




449.1




445.3


Stock-based compensation



52.2




42.1




147.9




117.5


Purchase accounting adjustments (1)



3.4




3.6




9.5




12.0


ASC 606 adoption impact



(0.7)




(0.8)




(2.0)




(2.3)


Acquisition related (2)



1.6




2.4




2.7




7.8


Facilities and workforce restructuring



14.0




13.8




33.6




42.5


Other (3)



1.7




0.2




7.2




0.8


Adjusted operating income


$

549.7



$

518.3



$

1,633.6



$

1,498.3


Adjusted operating income attributable to noncontrolling interest (4)



(0.9)




(0.9)




(3.1)




(2.1)


Adjusted operating income attributable to SS&C common
stockholders


$

548.8



$

517.4



$

1,630.5



$

1,496.2




(1)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.

(2)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(3)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance.

(4)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted operating income attributable to noncontrolling interest represents adjusted operating income based on the ownership interest retained by the respective noncontrolling parties.

Note 3. Reconciliation of Net Income to EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA

EBITDA represents net income before interest expense, income taxes, depreciation and amortization.  Consolidated EBITDA, defined under our Credit Agreement entered into in April 2018, as amended, is used in calculating covenant compliance, and is EBITDA adjusted for certain items.  Consolidated EBITDA is calculated by subtracting from or adding to EBITDA items of income or expense described below.  Adjusted Consolidated EBITDA is calculated by subtracting acquired EBITDA (as defined below) from Consolidated EBITDA. EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are presented because we use these measures to evaluate performance of our business and believe them to be useful indicators of an entity's debt capacity and its ability to service debt.  EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are not recognized terms under GAAP and should not be considered in isolation or as alternatives to operating income, net income or cash flows from operating activities as indicators of our operating performance.  These measures are not necessarily comparable to similarly titled measures by other companies.  The following is a reconciliation of EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA to net income.



Three Months Ended
September 30,



Nine Months Ended
September 30,



Twelve
Months
Ended
September 30,


(in millions)


2024



2023



2024



2023



2024


Net income


$

164.6



$

156.6



$

513.3



$

413.7



$

708.3


Interest expense, net



109.6




120.6




338.9




350.5




458.3


Provision for income taxes



60.0




51.2




140.5




167.3




222.2


Depreciation and amortization



171.3




168.5




504.3




500.4




674.4


EBITDA



505.5




496.9




1,497.0




1,431.9




2,063.2


Stock-based compensation



52.2




42.1




147.9




117.5




189.8


Acquired EBITDA and cost savings (1)



0.8







19.4







34.5


Loss on extinguishment of debt



1.3




0.5




30.1




1.1




31.1


Equity in earnings of unconsolidated affiliates, net



(1.1)




(27.5)




(20.7)




(42.6)




(78.2)


Purchase accounting adjustments (2)



1.9




2.4




5.7




6.7




8.3


ASC 606 adoption impact



(0.7)




(0.8)




(2.0)




(2.3)




(2.7)


Foreign currency translation (gains) losses



(4.2)




2.5




1.6




3.7




(2.3)


Investment (gains) losses (3)



(5.3)




0.5




(17.3)




(13.7)




(22.5)


Facilities and workforce restructuring



13.9




13.8




33.6




42.5




47.9


Acquisition related (4)



1.8




3.9




2.7




(1.3)




3.9


Other (5)



1.8




0.5




6.4




3.8




10.0


Consolidated EBITDA


$

567.9



$

534.8



$

1,704.4



$

1,547.3



$

2,283.0


Acquired EBITDA and cost savings (1)



(0.8)







(19.4)







(34.5)


Adjusted Consolidated EBITDA


$

567.1



$

534.8



$

1,685.0



$

1,547.3



$

2,248.5


Adjusted Consolidated EBITDA attributable to noncontrolling
interest (6)



(0.9)




(0.9)




(3.1)




(2.1)




(4.0)


Adjusted Consolidated EBITDA attributable to SS&C common
stockholders


$

566.2



$

533.9



$

1,681.9



$

1,545.2



$

2,244.5




(1)

Acquired EBITDA reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period, as well as cost savings enacted in connection with acquisitions.

(2)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisitions (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to increase or decrease rent expense by the amount that would have been recognized if lease obligations were not adjusted to fair value at the date of acquisitions.

(3)

Investment gains includes unrealized fair value adjustments of investments and dividend income received on investments.

(4)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(5)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. 

(6)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted Consolidated EBITDA attributable to noncontrolling interest represents adjusted Consolidated EBITDA based on the ownership interest retained by the respective noncontrolling parties.

Note 4. Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings Per Share Attributable to SS&C to Adjusted Diluted Earnings Per Share Attributable to SS&C

Adjusted net income and adjusted diluted earnings per share attributable to SS&C represent net income and earnings per share attributable to SS&C before amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments and other items.  We consider adjusted net income and adjusted diluted earnings per share attributable to SS&C to be important to management and investors because they represent our operational performance exclusive of the effects of amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments, loss on extinguishment of debt and other items, that are not operational in nature or comparable to those of our competitors.  Adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP.  Adjusted net income and adjusted diluted earnings per share do not represent net income or diluted earnings per share, as those terms are defined under GAAP, and should not be considered as alternatives to net income or diluted earnings per share as indicators of our operating performance.  Adjusted net income and adjusted diluted earnings per share attributable to SS&C as presented herein are not necessarily comparable to similarly titled measures presented by other companies.  Below is a reconciliation of adjusted net income and adjusted diluted earnings per share attributable to SS&C to net income and diluted earnings per share attributable to SS&C, the GAAP measures we believe to be most directly comparable to adjusted net income and adjusted diluted earnings per share.



Three Months Ended
September 30,



Nine Months Ended September 30,


(in millions, except per share data)


2024



2023



2024



2023


GAAP – Net income


$

164.6



$

156.6



$

513.3



$

413.7


Amortization of intangible assets



152.4




150.6




449.1




445.3


Amortization of deferred financing costs and original issue discount



1.4




3.3




6.7




10.2


Stock-based compensation



52.2




42.1




147.9




117.5


Loss on extinguishment of debt



1.3




0.5




30.1




1.1


Purchase accounting adjustments (1)



3.4




3.6




9.5




12.0


ASC 606 adoption impact



(0.7)




(0.8)




(2.0)




(2.3)


Equity in earnings of unconsolidated affiliates, net



(1.1)




(27.5)




(20.7)




(42.6)


Foreign currency translation (gains) losses



(4.2)




2.5




1.6




3.7


Investment (gains) losses (2)



(3.1)




2.7




(2.5)




0.9


Facilities and workforce restructuring



13.9




13.8




33.6




42.5


Acquisition related (3)



1.8




3.9




2.7




(1.3)


Other (4)



1.8




0.8




6.3




4.7


Income tax effect (5)



(55.4)




(53.6)




(201.7)




(137.6)


Adjusted net income


$

328.3



$

298.5



$

973.9



$

867.8


Adjusted net income attributable to noncontrolling interest (6)



(1.2)




(1.2)




(3.6)




(2.3)


Adjusted net income attributable to SS&C common stockholders


$

327.1



$

297.3



$

970.3



$

865.5


Adjusted diluted earnings per share attributable to SS&C common
stockholders


$

1.29



$

1.17



$

3.83



$

3.39


GAAP diluted earnings per share attributable to SS&C common
stockholders


$

0.65



$

0.61



$

2.02



$

1.62


Diluted weighted-average shares outstanding



254.1




253.9




253.3




255.3




(1)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.

(2)

Investment gains includes unrealized fair value adjustments of investments.  In prior periods, investment gains also included dividend income received on investments.  Prior period amounts have been revised for consistent presentation.

(3)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(4)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. 

(5)

An estimated normalized effective tax rate of approximately 26% for the three and nine months ended September 30, 2024 and 2023 has been used to adjust the provision for income taxes for the purpose of computing adjusted net income.

(6)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted net income attributable to noncontrolling interest represents adjusted net income based on the ownership interest retained by the respective noncontrolling parties.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/ssc-technologies-releases-q3-2024-earnings-results-302286556.html

SOURCE SS&C

FAQ

What was SS&C Technologies (SSNC) revenue growth in Q3 2024?

SS&C Technologies reported GAAP revenue growth of 7.3% in Q3 2024, reaching $1,465.8 million.

How much did SS&C Technologies (SSNC) pay for Battea-Class Action Services acquisition?

SS&C Technologies completed the acquisition of Battea-Class Action Services on September 27, 2024, for approximately $670 million.

What is SS&C Technologies (SSNC) Q4 2024 revenue guidance?

SS&C Technologies provided Q4 2024 adjusted revenue guidance of $1,460.0 – $1,500.0 million.

What was SS&C Technologies (SSNC) adjusted EPS in Q3 2024?

SS&C Technologies reported adjusted diluted earnings per share of $1.29 in Q3 2024, up 10.3% year-over-year.

SS&C Technologies Inc

NASDAQ:SSNC

SSNC Rankings

SSNC Latest News

SSNC Stock Data

18.37B
245.42M
13.36%
84.39%
0.73%
Software - Application
Services-prepackaged Software
Link
United States of America
WINDSOR