SS&C Technologies Holdings, Inc. Q4 FY2024 earnings call

• Bill Stone welcomed everyone and highlighted strong fourth quarter results with record revenues, earnings, and cash flows. - Rahul Kanwar discussed business highlights such as Wealth and Investment Technologies growth, Genesis milestones, GlobeOp's new business wins, and Intralinks' record quarter. - Brian Schell ran through financials including adjusted results, expense details, tax rate revision, and balance sheet details. - The company announced an initial strategic lift-out agreement with Insignia Financial to deliver superannuation member administrative services in Australia, with a lift-out expected early in the second half of 2024.

Fourth quarter adjusted revenue was $1.531 billion, up 8.4%. Adjusted diluted earnings per share were $1.58, up 25.4%. Adjusted consolidated EBITDA was $599.1 million, up 6.5%. Wealth and Investment Technologies grew 6.8% in the quarter. GlobeOp had organic growth of 8% in 2024 with many new business wins. Intralinks had a record bookings and revenue quarter in Q4. Recurring revenue growth rate for financial services was 7.4% in Q4 and 7.2% for the full year 2024.

• First quarter 2025: Revenue expected in the range of $1.474 to $1.514 billion, 4% organic revenue growth at midpoint; adjusted net income in the range of $348 to $364 million; interest expense (excluding certain items) in the range of $104 million to $106 million; diluted shares in the range of 254.6 to 255.6 million; adjusted diluted EPS in the range of $1.37 to $1.43. - Full year 2025: Revenue expected in the range of $6.085 to $6.245 billion, 5% organic revenue growth at midpoint; adjusted net income in the range of $1.431 to $1.531 billion; diluted shares in the range of 253.7 million; adjusted diluted EPS in the range of $5.64 to $5.96; cash from operating activities in the range of $1.448 to $1.548 billion.

Actual results may differ materially from forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of the most recent annual report on Form 10-K.

Q: In the healthcare business, could you provide more details on client wins in the quarter and pipeline for 2025?

A: Bill Stone said they won a couple of big license deals in Q4, have momentum with big healthcare companies, and are optimistic long-term but cautious on short-term projection.

Q: Three months ago, guidance for organic growth was below 3% and actual was around 7%, any other surprises?

A: Bill Stone said business performed very well, close rates on opportunities were better than expected, and healthcare business brought in large license deals.

Q: Directionally, view on European Commission's cut in corporate reporting requirements?

A: Bill Stone said less regulation of clients is better as it helps them grow, which is better for the company.

Q: Building blocks for 5% organic growth in 2025?

A: Bill Stone said it's a mix of license deals and services business ramping up, with increased sales and marketing spend.

Q: Superannuation opportunity in Australia, size and competitive dynamic?

A: Bill Stone said they've been in the market for a while, superannuation is a large opportunity with 5% market share, and they have good technologies and team.

Q: Insignia Financial deal, included in 2025 guidance? Size?

A: Bill Stone said it's a large deal, focus on client satisfaction, revenue from them in second half of 2025.

Q: Midpoint of 2025 organic growth 5%, low and high end?

A: Rahul Kanwar said roughly $80 million on either side, factors include new sales, timing of implementations.

Q: Healthcare business, leading indicators?

A: Bill Stone said mostly independent, but healthcare is under pressure and their technologies help manage expenses.

Q: GlobeOp growth drivers?

A: Rahul Kanwar said private markets, hedge funds, real assets growth, and existing large funds and new funds.

Q: Automation update?

A: Bill Stone said driven by Blue Prism, with about 1550 digital workers and savings above $150 million towards $200 million.