Yahoo Finance SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q3 2023 Earnings Call Transcript
SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q3 2023 Earnings Call Transcript October 26, 2023
SS&C Technologies Holdings, Inc. beats earnings expectations. Reported EPS is $1.17, expectations were $1.16.
Operator: Good afternoon, ladies and gentlemen, and welcome to the SS&C Technologies Q3 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode, and please be advised that this call is being recorded. After the speakers' prepared remarks, there will be a question-and-answer session. [Operator Instructions] Now at this time, I would like to turn the call over to Ms. Justine Stone, Head of Investor Relations. Please go ahead, ma'am.
Justine Stone: Welcome and thank you for joining us for our Q3 2023 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 Brian Schell, 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 provision 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 26, 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 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.
William Stone: Thanks, Justine, and thanks everyone for joining. Let's all welcome Brian to his first SS&C earnings call. He has been with us for two months and has found his bearings. We're excited about his ideas and intellect he brings to the organization, and I encourage all of you to get to know him. Results for the third quarter are record adjusted revenue of $1,366.7 million, up 3.4% and adjusted diluted earnings per share of $1.17. We also achieved our second-highest adjusted consolidated EBITDA in our history at $533.9 million. Our EBITDA margin was 39.1%, a 230 basis point increase from Q2 2023. Our third quarter adjusted organic revenue was up 2.3%, driven by strength in our alternatives, particularly private markets, Intralinks, Retirement and Blue Prism.
Our recurring revenue growth was [amidst] (ph) the license and professional service revenue streams was up over 5%, which we think is an indicator of our underlying business' strength. The Financial Services retention rate for Q3 2023 was 97.3%, the highest level in the SS&C history. SS&C generated cash from operating activities of $826.7 million for the nine months ended September 30th, up 8.1% over the same period last year. In Q3 2023, we bought back 1.7 million shares for $96.9 million at an average price of $55.82. We also raised our common stock quarterly dividend of 20% to $0.24 per share, delivering $156.6 million in total cash return to shareholders in the quarter and $501.9 million year-to-date. SS&C paid down $54.7 million in debt in Q3 2023, bringing our net leverage ratio to 3.18 times consolidated EBITDA, attributable to SS&C.
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