SS&C Technologies Holdings, Inc. (SSNC) Bundle
A Brief History of SS&C Technologies Holdings, Inc.
Company Overview
SS&C Technologies Holdings, Inc. (SSNC) provides software-enabled services and software solutions for the financial services industry. As of September 30, 2024, the company reported total assets of $18.4 billion and total stockholders' equity of $6.9 billion.
Financial Performance
In the third quarter of 2024, SS&C reported revenues of $1.465 billion, a 7.3% increase from $1.366 billion in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $4.352 billion, up from $4.091 billion in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $1.465 billion | $1.366 billion | 7.3% |
| Gross Profit | $704.2 million | $654.4 million | 7.6% |
| Operating Income | $325.1 million | $306.4 million | 6.1% |
| Net Income | $156.6 million | $156.0 million | 0.4% |
Debt Obligations
As of September 30, 2024, SS&C had a total outstanding debt of approximately $4.46 billion. The breakdown of debt is as follows:
| Debt Type | Amount Outstanding (in millions) | Maturity Date |
|---|---|---|
| Term B-8 Loans | $3,690.0 | May 9, 2031 |
| Term A-9 Loans | $800.0 | September 27, 2029 |
| 5.5% Senior Notes | $2,000.0 | September 30, 2027 |
| 6.5% Senior Notes | $750.0 | June 1, 2032 |
Cash Flow Analysis
For the nine months ended September 30, 2024, SS&C reported cash provided by operating activities of $902 million, compared to $827 million for the same period in 2023. Investing activities used net cash of $803 million, while financing activities resulted in a cash outflow of $790 million.
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Operating Activities | $902.0 | $826.7 | $75.3 |
| Investing Activities | ($802.6) | ($167.1) | ($635.5) |
| Financing Activities | ($790.1) | ($812.6) | $22.5 |
Dividends and Stock Repurchase
In 2024, SS&C declared quarterly cash dividends of $0.24 per share in March and June, and $0.25 per share in September, totaling approximately $182.6 million. The company repurchased 1.2 million shares for $88.3 million during the third quarter.
| Quarter | Dividend per Share | Total Dividend Amount (in millions) |
|---|---|---|
| Q1 2024 | $0.24 | $59.7 |
| Q2 2024 | $0.24 | $59.7 |
| Q3 2024 | $0.25 | $63.2 |
Recent Acquisitions
In 2023, SS&C acquired the Iress Managed Funds Administration Business, and in September 2024, the company acquired Battea-Class Action Services, LLC, further expanding its service offerings.
A Who Owns SS&C Technologies Holdings, Inc. (SSNC)
Major Shareholders
As of 2024, SS&C Technologies Holdings, Inc. (SSNC) has a diverse group of major shareholders, including institutional investors and company insiders. Below is a summary of the major shareholders as of the latest data available:
| Shareholder Type | Shareholder Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.2% | 23.5 million |
| Institutional Investor | BlackRock, Inc. | 7.5% | 21.4 million |
| Institutional Investor | State Street Corporation | 4.5% | 12.9 million |
| Insider | William C. Stone (CEO) | 1.5% | 4.3 million |
| Insider | Other Insiders | 2.1% | 6.0 million |
Stock Performance and Market Capitalization
As of the end of September 2024, SS&C Technologies Holdings, Inc. reported a market capitalization of approximately $287.2 billion. The stock has shown a positive trajectory, with an increase of 7.3% in revenues year-over-year, amounting to $1.47 billion for the third quarter of 2024.
Share Repurchase Program
In July 2024, SS&C Technologies' Board of Directors authorized a stock repurchase program allowing for the purchase of up to $1 billion of its common stock. As of September 30, 2024, the company repurchased approximately 5.7 million shares, totaling approximately $369.3 million.
Dividends Paid
SS&C Technologies has maintained a consistent dividend policy, paying quarterly cash dividends of $0.24 per share in March and June 2024, and $0.25 per share in September 2024, amounting to a total of $182.6 million in dividends for the year.
Financial Overview
For the nine months ending September 30, 2024, SS&C Technologies reported a net income of $513.3 million, a significant increase from $413.7 million in the same period in 2023. The earnings per share (EPS) for the nine months was $2.08, up from $1.66 in the prior year.
Debt Structure
As of September 30, 2024, SS&C Technologies had a total debt of approximately $7.2 billion, which includes $4.49 billion in senior secured credit facilities and $2.75 billion in senior notes.
Conclusion
The ownership structure of SS&C Technologies Holdings, Inc. reflects a mix of institutional and insider investors, with a solid financial performance and strategic initiatives such as share repurchases and dividend payments contributing to shareholder value.
SS&C Technologies Holdings, Inc. (SSNC) Mission Statement
Company Overview
SS&C Technologies Holdings, Inc. (SSNC) is a global provider of investment management software and services. As of 2024, the company focuses on delivering innovative solutions that enhance operational efficiency and drive better decision-making for its clients.
Mission Statement
SS&C’s mission is to provide superior financial services and technology solutions that empower clients to maximize their performance and achieve their goals. The company aims to drive efficiency through automation, delivering high-quality service and innovative solutions in the financial services industry.
Core Values
- Commitment to Innovation: SS&C invests in cutting-edge technologies to stay ahead in the financial services sector.
- Client-Centric Approach: The company prioritizes understanding and meeting the specific needs of its clients.
- Integrity: SS&C maintains a high standard of ethical practices in all its dealings.
- Collaboration: The company fosters teamwork and partnerships both internally and with clients.
Financial Performance Indicators
As of September 30, 2024, SS&C Technologies reported significant financial metrics that underline its operational success:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $1,465.8 million | $1,365.9 million | 7.3% |
| Net Income | $164.4 million | $156.0 million | 2.2% |
| Earnings Per Share (Basic) | $0.67 | $0.63 | 6.3% |
| Cash and Cash Equivalents | $251.9 million | N/A | N/A |
Strategic Goals
SS&C Technologies has outlined its strategic goals for the upcoming years, which include:
- Enhancing product offerings through continuous innovation.
- Expanding market presence globally, particularly in emerging markets.
- Improving client engagement and satisfaction through personalized service.
Recent Developments
In 2024, SS&C Technologies has made several strategic moves to bolster its market position:
- Acquisition of Battea-Class Action Services, LLC in September 2024 to enhance its service offerings.
- Issuance of $750 million in 6.5% Senior Notes due 2032 to refinance existing debt and fund acquisitions.
- Continued investment in technology and service enhancements to support client needs.
Conclusion
SS&C Technologies Holdings, Inc. remains committed to its mission of delivering innovative solutions and exceptional client service in the financial services industry. The company's focus on growth, integrity, and innovation positions it well for future success.
How SS&C Technologies Holdings, Inc. (SSNC) Works
Company Overview
SS&C Technologies Holdings, Inc. (SSNC) is a global provider of investment management software and services. The company focuses on delivering software-enabled services to financial institutions, including asset managers, hedge funds, and insurance companies. As of September 30, 2024, SS&C operates through multiple segments, primarily focusing on software-enabled services and licensing.
Financial Performance
For the three months ended September 30, 2024, SS&C reported total revenues of $1,465.8 million, representing a 7.3% increase from $1,365.9 million in the same period of 2023. The revenue breakdown is as follows:
| Revenue Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Percent Change |
|---|---|---|---|
| Software-enabled services | 1,206.2 | 1,122.1 | 7.5% |
| License, maintenance and related | 259.6 | 243.8 | 6.5% |
| Total Revenues | 1,465.8 | 1,365.9 | 7.3% |
For the nine months ended September 30, 2024, total revenues reached $4,352.3 million, up 6.4% from $4,091.2 million in the prior year. This growth was driven by increased demand across various service lines, particularly in SS&C GlobeOp fund administration and virtual data room services.
Operating Expenses
Operating expenses for the three months ending September 30, 2024, totaled $379.1 million, an increase of 8.9% compared to $348.0 million for the same period in 2023. Key components of operating expenses include:
| Expense Type | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Percent Change |
|---|---|---|---|
| Selling and marketing | 144.1 | 134.7 | 7.0% |
| Research and development | 131.3 | 117.7 | 11.6% |
| General and administrative | 103.7 | 95.6 | 8.5% |
| Total Operating Expenses | 379.1 | 348.0 | 8.9% |
Net Income and Earnings Per Share
Net income attributable to SS&C common stockholders for the three months ended September 30, 2024, was $164.4 million, compared to $156.0 million in Q3 2023. Basic earnings per share (EPS) for the period was $0.67, an increase from $0.63 in the prior year. For the nine months ended September 30, 2024, net income was $512.3 million, up from $412.7 million in 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income ($ millions) | 164.4 | 156.0 |
| Basic EPS | 0.67 | 0.63 |
| Net Income YTD ($ millions) | 512.3 | 412.7 |
Cash Flow and Capital Expenditures
SS&C generated net cash from operating activities of $902.0 million for the nine months ended September 30, 2024, compared to $826.7 million in the same period of 2023. The company reported cash flows used in investing activities of $802.6 million, primarily for business acquisitions and capital expenditures.
Debt and Financing Activities
As of September 30, 2024, SS&C had total outstanding debt of approximately $7,202.7 million. The breakdown of the debt is as follows:
| Debt Type | Amount Outstanding ($ millions) | Maturity Date |
|---|---|---|
| Senior Secured Credit Facilities | 4,490.0 | May 9, 2031 |
| 5.5% Senior Notes | 2,000.0 | September 30, 2027 |
| 6.5% Senior Notes | 750.0 | June 1, 2032 |
Dividend Payments
SS&C paid quarterly cash dividends totaling $182.6 million in 2024, with dividends of $0.24 per share in March and June and $0.25 per share in September.
Client Funds Obligations
As of September 30, 2024, SS&C held $2,081.5 million in client funds obligations, reflecting the company's responsibilities in managing and remitting client funds.
Market Position and Growth Strategy
SS&C continues to expand its market presence through strategic acquisitions and organic growth initiatives. The company has recently completed acquisitions, including the Iress Managed Funds Administration Business in October 2023 and Battea-Class Action Services, LLC in September 2024, which are expected to enhance service offerings and client base.
How SS&C Technologies Holdings, Inc. (SSNC) Makes Money
Revenue Sources
SS&C Technologies generates revenue primarily through the following categories:
- Software-enabled services
- License, maintenance, and related services
- Professional services
- Perpetual licenses
For the nine months ended September 30, 2024, the breakdown of revenues (in millions) was as follows:
| Source | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Software-enabled services | $1,206.2 | $1,122.1 | $3,586.3 | $3,342.8 |
| License, maintenance, and related | $259.6 | $243.8 | $766.0 | $748.4 |
| Professional services | $24.1 | $26.8 | $73.0 | $83.1 |
| Perpetual licenses | $5.5 | $5.4 | $19.8 | $21.8 |
| Total Revenues | $1,465.8 | $1,365.9 | $4,352.3 | $4,091.2 |
Geographic Revenue Distribution
Revenue is also generated from various geographic locations. The following table summarizes revenue by region (in millions):
| Region | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| United States | $1,007.4 | $941.2 | $3,015.1 | $2,838.9 |
| United Kingdom | $173.2 | $160.1 | $494.5 | $473.4 |
| Europe (excl. UK), Middle East, Africa | $126.7 | $116.2 | $361.4 | $337.1 |
| Asia-Pacific and Japan | $72.0 | $67.6 | $224.2 | $204.2 |
| Canada | $54.4 | $55.3 | $168.7 | $164.5 |
| Americas (excl. U.S. and Canada) | $32.1 | $25.5 | $88.4 | $73.1 |
| Total Revenue | $1,465.8 | $1,365.9 | $4,352.3 | $4,091.2 |
Cost Structure
The cost of revenues is primarily driven by the following components:
- Cost of software-enabled services
- Cost of license, maintenance, and related services
For the nine months ended September 30, 2024, the cost of revenues (in millions) was as follows:
| Cost Component | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Cost of software-enabled services | $661.9 | $617.8 | $1,949.7 | $1,877.4 |
| Cost of license, maintenance, and related | $99.7 | $93.7 | $292.9 | $281.3 |
| Total Cost of Revenues | $761.6 | $711.5 | $2,242.6 | $2,158.7 |
Profitability Metrics
For the nine months ended September 30, 2024, SS&C Technologies reported the following profitability metrics (in millions):
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Gross Profit | $2,109.7 | $1,932.5 |
| Operating Income | $985.6 | $874.7 |
| Net Income | $513.3 | $413.7 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were as follows (in millions):
| Expense Type | 9M 2024 | 9M 2023 |
|---|---|---|
| Selling and Marketing | $427.6 | $411.6 |
| Research and Development | $380.9 | $355.5 |
| General and Administrative | $315.6 | $290.7 |
| Total Operating Expenses | $1,124.1 | $1,057.8 |
Cash Flow from Operations
For the nine months ended September 30, 2024, cash flow from operating activities was reported as follows (in millions):
| Cash Flow Component | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $902.0 | $826.7 |
| Net Cash Used in Investing Activities | ($802.6) | ($167.1) |
| Net Cash Used in Financing Activities | ($790.1) | ($812.6) |
| Net Decrease in Cash | ($688.5) | ($157.2) |
Dividends and Share Repurchase
SS&C Technologies announced the following dividend payments in 2024 (in millions):
| Quarter | Dividend per Share | Total Dividend Paid |
|---|---|---|
| March 2024 | $0.24 | $182.6 |
| June 2024 | $0.24 | $182.6 |
| September 2024 | $0.25 | $182.6 |
Additionally, during the three months ended September 30, 2024, SS&C repurchased approximately 1.2 million shares at a cost of $88.3 million.
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Article updated on 8 Nov 2024
Resources:
- SS&C Technologies Holdings, Inc. (SSNC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SS&C Technologies Holdings, Inc. (SSNC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SS&C Technologies Holdings, Inc. (SSNC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.