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SS&C Technologies Holdings (NASDAQ:) Inc. reported a record Q3 2023 adjusted revenue of $1,366.7 million, marking a 3.4% increase compared to the previous year. The company also achieved its second-highest adjusted consolidated EBITDA at $533.9 million, with an EBITDA margin of 39.1%. The company’s financial services retention rate for Q3 2023 was 97.3%, the highest in its history.
Key takeaways from the earnings call include:
- SS&C Technologies generated cash from operating activities of $826.7 million for the nine months ended September 30th, up 8.1% from the previous year.
- The company bought back 1.7 million shares for $96.9 million and raised its common stock quarterly dividend by 20% to $0.24 per share.
- SS&C paid down $54.7 million in debt, bringing its net leverage ratio to 3.18 times consolidated EBITDA.
- Significant savings were achieved through the deployment of Blue Prism digital workers, resulting in a 7% reduction in headcount.
- The Alternatives, Intralinks, and Retirement businesses showed strong growth, with Alternatives growing 8.4% in the quarter and Intralinks growing over 10%.
- The company expects Q4 2023 revenue to be in the range of $1,370 million to $1,410 million and full-year 2023 revenue to be in the range of $5,463.5 million to $5,503.5 million.
During the earnings call, SS&C Technologies expressed confidence in its ability to drive high EBITDA, pay down debt, and buy back stock. The company also highlighted its focus on innovation and competition against larger financial institutions. In terms of mergers and acquisitions, SS&C expressed interest in the Australian, Canadian, and UK markets, with plans to potentially spend $100 million on acquisitions in the coming months.
The company also provided updates on its healthcare business, mentioning its stabilization and the opportunities in the segment. It plans to put tens of millions of lives under DomaniRx by the first quarter of 2024. In terms of their healthcare clientele, major clients include Aetna, CVS, Cigna (NYSE:), and Anthem.
SS&C Technologies was recognized by Waters (NYSE:) Technology and Gartner for its products and services. The company also highlighted its recent SS&C Deliver Conference, where it showcased over 40 solutions focused on AI and robotics process automation. The company concluded the call by expressing appreciation for the attendees and its plans to provide updates after the end of the year.
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