Press Release

For Immediate Release

SS&C Technologies Releases Q3 2021 Earnings Results


Q3 2021 GAAP revenue $1,264.4 million, up 9.7%, Fully Diluted GAAP Earnings Per Share $0.69, up 15.0%

Adjusted revenue $1,266.3 million, up 9.5%, Adjusted Diluted Earnings Per Share $1.32, up 20.0%

WINDSOR, CT, October 28, 2021 (PR Newswire) SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a global provider of investment, financial and healthcare software-enabled services and software, today announced its financial results for the third quarter and full year ended September 30, 2021.

  Three Months Ended September 30,   Nine Months Ended September 30,  
(in millions, except per share data): 2021 2020 Change 2021 2020 Change
GAAP Results
Revenue $1,264.4 $1,152.8 9.7% $3,756.8 $3,464.5 8.4%
Operating income 340.1 257.0 32.3% 922.1 717.1 28.6%
Operating income margin 26.9% 22.3% 460 bp 24.5% 20.7% 380 bp
Diluted earnings per share attributable to SS&C $0.69 $0.60 15.0% $2.05 $1.61 27.3%
Adjusted Non-GAAP Results (defined in Notes 1 - 4 below)
Adjusted revenue $1,266.3 $1,156.2 9.5% $3,762.7 $3,475.0 8.3%
Adjusted operating income attributable to SS&C 524.1 448.8 16.8% 1,495.7 1,323.1 13.0%
Adjusted operating income margin 41.4% 38.8% 260 bp 39.8% 38.1% 170 bp
Adjusted diluted earnings per share attributable to SS&C $1.32 $1.10 20.0% $3.75 $3.17 18.3%

Third Quarter 2021 Highlights:

  • Adjusted organic revenue growth for Q3 2021 was 8.2%.
  • SS&C reported record adjusted consolidated EBTIDA attributable to SS&C of $538.9 million for the quarter, $1,541.9 million for the first nine months 2021.
  • Adjusted consolidated EBITDA margin increased to 42.6%, up 230 basis points from Q3 2020.
  • Repurchased 2.1 million shares of common stock in Q3 2021 at an average price of $75.97 per share for $162.9 million.
  • Paid down $317.8 million in debt for the first nine months in 2021, bringing consolidated net leverage ratio to 2.96x and our secured net leverage ratio to 1.97x consolidated EBTIDA attributable to SS&C.
  • In September, the vast majority of global offices re-opened and employees are attending in increasing numbers on a voluntary basis.
  • SS&C will host a virtual analyst day on November 10th, 2021, featuring presentations from our C-suite executives, as well as several members of our senior management team.

“SS&C continues to gain momentum from the first half of year, and this quarter recorded 9.5 percent adjusted revenue growth, 8.2 percent adjusted organic revenue growth. Our business is running on all cylinders: our sales force is executing, our developers are rolling out new products, and our customer service levels are high,” says Bill Stone, Chairman and Chief Executive Officer. “Our businesses are capitalizing on the strong end markets, particularly in Alternatives and M&A, where our market leading position continues to solidify. We are optimistic to close out 2021 strong.”

Operating Cash Flow

SS&C generated net cash from operating activities of $944.9 million for the nine months ended September 30, 2021, compared to $755.1 million for the same period in 2020, a 25.1% increase.  SS&C ended the third quarter with $351.1 million in cash and cash equivalents and $6,190.3 million in gross debt.  SS&C's net debt balance as defined in our credit agreement, which excludes cash and cash equivalents of $138.3 million held at DomaniRx, LLC was $5,977.5 million as of September 30, 2021.  SS&C’s consolidated net leverage ratio as defined in our credit agreement stood at 2.96 times consolidated EBITDA attributable to SS&C as of September 30, 2021. SS&C’s net secured leverage ratio stood at 1.97 times consolidated EBITDA attributable to SS&C as of September 30, 2021.

Guidance

    Q4 2021   FY 2021
Adjusted Revenue ($M)   $1,225.0 – $1,275.0   $4,988.0 – $5,038.0 
Adjusted Net Income attributable to SS&C ($M)   $312.0 – $334.0   $1,313.0 – $1,334.0
Adjusted Diluted Earnings per Share attributable to SS&C   $1.17 – $1.25   $4.92 – $4.99
Cash from Operating Activities ($M)     $1,367.0 – $1,386.0
Capital Expenditures (% of revenue)     2.6% – 3.0%
Diluted Shares (M)   266.2 – 266.7   266.9 – 267.4
Effective Income Tax Rate (%)   26%   26%

SS&C does not provide reconciliations of guidance for Adjusted Revenues and Adjusted Net Income to comparable GAAP measures, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.  SS&C is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures.  These items include acquisition transactions and integration, foreign exchange rate changes, as well as other non-cash and other adjustments as defined under the Company’s Credit agreement, that are difficult to predict in advance in order to include in a GAAP estimate.  The unavailable information could have a significant impact on Q4 2021 and FY 2021 GAAP financial results.

Non-GAAP Financial Measures

Adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP measures.  See the accompanying notes for the reconciliations and definitions for each of these non-GAAP measures and the reasons our management believes these measures provide useful information to investors regarding our financial condition and results of operations.

Earnings Call and Press Release

SS&C’s Q3 2021 earnings call will take place at 5:00 p.m. eastern time today, October 28, 2021.  The call will discuss Q3 2021 results and business outlook.  Interested parties may dial +1 888-210-4650 (US and Canada) or +1 646-960-0327 (International), and request the “SS&C Technologies Third Quarter 2021 Earnings Conference Call”; conference ID #4673675.  In connection with the earnings call, a presentation will be available on SS&C’s website at http://investor.ssctech.com/results.cfm. A replay will be available after 8:00 p.m. eastern time on October 28, 2021, until midnight on November 4, 2021.  The replay dial-in number is +1 800-770-2030 (US and Canada) or +1 647-362-9199 (International); access code #4673675.  The call will also be available for replay on SS&C’s website after October 28, 2021; access: http://investor.ssctech.com/results.cfm.

Certain information contained in this press release relating to, among other things, the Company’s financial guidance for the fourth quarter and full year of 2021 constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance, underlying assumptions, and other statements that are other than statements of historical facts.  Without limiting the foregoing, the words “believes”, “anticipates”, “plans”, “expects”, “estimates”, “projects”, “forecasts”, “may”, “assume”, “intend”, “will”, “continue”, “opportunity”, “predict”, “potential”, “future”, “guarantee”, “likely”, “target”, “indicate”, “would”, “could” and “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.  Such statements reflect management’s best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated.  Such risks and uncertainties include, but are not limited to, the state of the economy and the financial services industry and other industries in which the Company’s clients operate, the Company’s ability to realize anticipated benefits from its acquisitions, including DST Systems, Inc.,  the effect of customer consolidation on demand for the Company’s products and services, the increasing focus of the Company’s business on the hedge fund industry, the variability of revenue as a result of activity in the securities markets, the ability to retain and attract clients, fluctuations in customer demand for the Company’s products and services, the intensity of competition with respect to the Company’s products and services, the exposure to litigation and other claims, terrorist activities and other catastrophic events, disruptions, attacks or failures affecting the Company’s software-enabled services, risks associated with the Company’s foreign operations, privacy concerns relating to the collection and storage of personal information, evolving regulations and increased scrutiny from regulators,  the Company’s ability to protect intellectual property assets and litigation regarding intellectual property rights, delays in product development, investment decisions concerning cash balances, regulatory and tax risks, risks associated with the Company’s joint ventures, changes in accounting standards, risks related to the Company’s substantial indebtedness, the market price of the Company’s stock prevailing from time to time, and the risks discussed in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission and can also be accessed on our website.  Forward-looking statements speak only as of the date on which they are made and, except to the extent required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 18,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology.

Click here to view the financial earnings statement in PDF format.


Contact(s):

  Patrick Pedonti
  Chief Financial Officer
  Tel: +1 860-298-4738

  Justine Stone
  Investor Relations
  Tel: +1 212-367-4705
  E-mail: InvestorRelations@sscinc.com