SS&C Technologies Holdings, Inc. (SSNC) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 27, 2022 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the SS&C Technologies Third Quarter 2022 Earnings Conference Call. [Operator Instructions]

Thank you. Justine Stone, Head of Investor Relations, you may begin your conference.

Justine Stone

Hi, everyone. Welcome, and thank you for joining us for our Q3 2022 earnings call. I’m Justine Stone, Investor Relations for SS&C Technologies. With me today is Bill Stone, Chairman and Chief Executive Officer; Rahul Kanwar, President and Chief Operating Officer; and Patrick Pedonti, our Chief Financial Officer.

Before we get started, we need to review the safe harbor statement. Please note that various remarks we make today about future expectations, plans and prospects, including the financial outlook we provide, constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent annual report on Form 10-K, which is on file with the SEC and can also be accessed on our website. These forward-looking statements represent our expectations only as of today, October 27, 2022. While the company may elect to update these forward-looking statements, it specifically disclaims any obligation to do so.

During today’s call, we will be referring to certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to comparable GAAP financial measures is included in today’s earnings release, which is located in the Investor Relations section of our website at www.ssctech.com.

I will now turn the call over to Bill.

Bill Stone

Thanks, Justine, and thanks, everyone, for joining. Our results for the third quarter are $1.322 billion in adjusted revenue, up 4.4% and up 7.5% on a constant currency basis. Our adjusted diluted earnings per share were $1.15, down 12.9%. Adjusted consolidated EBITDA was $502 million for the quarter. Our EBITDA margin was 38%.

Our third quarter adjusted organic revenue was up 1.6%, and we saw strong growth in our software businesses, including Advent, and Institutional and Investment Management as well as Private Markets, fund administration, and Retirement Solutions. Ex the impact of our health care business, our Q3 2022 organic growth in financial services, which is 94% of our revenue, was 3.3%.