• Adjusted Revenue: $1.531 billion, up 8.4% from Q4 2023.
• Adjusted Diluted EPS: $1.58, up 25.4% from Q4 2023.
• Adjusted Consolidated EBITDA: $599.1 million, up 6.5% from Q4 2023.
• Adjusted Consolidated EBITDA Margin: 39.1%.
• Adjusted Organic Revenue Growth: 7% for Q4 2024.
• Recurring Revenue Growth Rate for Financial Services: 7.4% for Q4 2024.
• Cash from Operating Activities: $486.6 million, up 25.3% from Q4 2023.
• Share Repurchases: 4.9 million shares for $365 million at an average price of $74.46 per share.
• Net Income: $248 million for Q4 2024.
• GAAP Revenue: $1.53 billion for Q4 2024.
• Net Debt: $6.6 billion.
• Total Leverage Ratio: 2.89 times.

• Warning! GuruFocus has detected 5 Warning Signs with AMRK.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SS&C Technologies Holdings Inc (NASDAQ:SSNC) reported record adjusted revenue of $1.531 billion for Q4 2024, marking an 8.4% increase.
• The company achieved a record adjusted diluted earnings per share of $1.58, up 25.4% from the previous year.
• Adjusted consolidated EBITDA reached $599.1 million, with a margin of 39.1%, indicating strong profitability.
• The company experienced significant growth in its GlobeOp, Wealth and Investment Technologies, and Global Investor Distribution Services businesses.
• SS&C Technologies Holdings Inc (NASDAQ:SSNC) completed a strategic agreement with Insignia Financial, expanding its presence in the Australian superannuation market.

Negative Points

• Core expenses increased by 8.3%, driven by higher incentive compensation, commissions, and wages.
• The company faces challenges in projecting short-term revenue in the Healthcare sector due to the deliberate purchasing behavior of large healthcare clients.
• SS&C Technologies Holdings Inc (NASDAQ:SSNC) has a high net debt of $6.6 billion, which could impact financial flexibility.
• The company anticipates a lower organic revenue growth rate of 4% for Q1 2025, compared to the 7% achieved in Q4 2024.
• There is uncertainty regarding the impact of potential regulatory changes in Europe on SS&C Technologies Holdings Inc (NASDAQ:SSNC)'s regulatory and filing business.

Q & A Highlights

Q: In the Healthcare business, could you provide more details on client wins in the quarter and the pipeline for 2025? A: We won a couple of big license deals in Q4, which improved revenues. We have strong technology and a promising pipeline with large healthcare companies. While it's challenging to project on a 90-day basis, we remain optimistic about long-term opportunities.

Q: Could you update us on the cross-selling efforts with Battea and the potential revenue opportunity? A: We have 75 active opportunities with current clients and have closed 15 to 20 deals. The class action lawsuits doubled in 2024, presenting a significant opportunity. We expect Battea to generate $100 million to $110 million in revenue in 2025.

Q: What contributed to the higher-than-expected organic growth in Q4? A: Several businesses performed better than expected, with improved closed rates on opportunities. The Healthcare business also secured large license deals, contributing to the overall stronger performance.

Q: How do you view the European Commission's decision to cut corporate reporting requirements by 25%? A: Less regulation allows our clients to grow faster, which benefits us. While we do earn from helping with regulation, we prefer client growth over overregulation.

Q: Can you discuss the Insignia Financial deal and its impact on 2025 guidance? A: It's a significant deal, likely in the Top 20 of our client base. We expect most revenue in the second half of 2025, with contracts finalized by the end of Q1 and implementation starting in Q2.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.