SS&C Technologies Holdings, Inc. (SSNC) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 7, 2023 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the SS&C Technologies Fourth Quarter 2022 Earnings Conference Call. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions]

It is now my pleasure to turn today’s call over to Justine Stone, Head of Investor Relations. Please go ahead.

Justine Stone

Hi, everyone. Welcome and thank you for joining us for our fourth quarter 2020 earnings call. I am 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 the various remarks we make today about future expectations, plans and prospects including the financial outlook we provide, constitute forward-looking statements 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 most 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, February 7, 2023. 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 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 fourth quarter of $1.339 million in adjusted revenue, up 3.3% and our adjusted diluted earnings per share were $1.16, down 4 -- 9.4%. Adjusted consolidated EBITDA was $518.6 million, third highest in our history, and our EBITDA margin was 38.7%.

Our fourth quarter adjusted organic revenue was flat in line with our expectations. For the year, total organic growth was 2%, while our Financial Services organic growth, which is 94% of our revenue was 3.7%.

2022 was a challenging operating environment for SS&C, but we are pleased that with the revenue performance from our software businesses, including Advent, Investment and Institutional Management and as -- and the resiliency of our Alternative Fund Administration and Intralinks business.