The following is a summary of the SS&C Technologies Holdings, Inc. (SSNC) Q1 2024 Earnings Call Transcript:
Financial Performance:
SS&C Technologies reported Q1 2024 adjusted revenue of $1,435.8 million, up 5.3% from the previous year.
Adjusted diluted earnings per share were $1.28, a 12.3% increase.
The company generated a record Q1 adjusted EBITDA of $556.8 million, and the EBITDA margin was at 38.8%.
4.7% adjusted organic revenue growth was reported for the quarter.
A total of $180.5 million was generated from operating revenue for the three months ending March 31, 2024.
SS&C significantly reduced its debt, paying down $79.9 million in Q1 2024, which resulted in a net leverage ratio of 2.95 times and the net secured leverage ratio of 2.02 times.
Business Progress:
The Q1 revenue acceleration was driven by company's alternatives, retirement intralinks, and ALPS Advisor businesses.
The company bought back 800,000 shares for $52.9 million at an average price of $63.24.
SS&C continues to realize efficiency through the deployment of Blue Prism digital workforce, which significantly contributed to EBITDA margin increase.
Notable business restructuring includes combining Institutional & Investment Management with wealth and investment technologies for enterprise solution, as well as merging retirement business with global investor and distribution solutions.
Investment in AI and automation technology, notably through Blue Prism, help optimize costs and improve offerings.
SS&C forecasts a strong cash flow between $1.302 and $1.382 billion for 2024, supported by Q1 results and a positive outlook for the year.
The company's disciplined approach to cost control is expected to contribute to continued margin expansion throughout the year.
ST&C Technologies sees potential in the healthcare sector, particularly with Change Health Care, for further business growth and revenue.
More details: SS&C Technologies IR
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