NASDAQ$SSNC

SS&C Technologies Holdings Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

SS&C's financial performance declined compared to the previous year, but revenue increased.

SS&C Technologies reported Q2 2022 results with a revenue increase of 5.5% to $1,328.7 million. However, GAAP EPS decreased by 40.8% to $0.42, and adjusted EPS decreased by 11.3% to $1.10. The company paid down $234.7 million in debt and completed acquisitions of MineralWare and O'Shares.

  • Total company revenue growth was 7.7% on a constant currency basis.
  • Organic growth was 2.2%, driven by Alternatives, Intralinks, and Advent business units.
  • Financial services organic growth, excluding healthcare, was 4.4%, representing 94% of revenues.
  • Net cash from operating activities was $264.0 million.

Headline financials

Total Revenue

$1.33B

Previous: $1.26B+5.5%
EPS (adj)

$1.10

Previous: $1.24-11.3%
Operating income margin

18.5%

Previous: 24.9%-25.7%
Adjusted consolidated EBITDA margin

470800000.0%

No prior period
Capital Expenditures

-$22.6M

Previous: -$17.6M-28.4%
Free Cash Flow

$88M

Previous: $172M-48.9%
Net Income

$111M

Previous: $190M-41.7%
Operating Income

$246M

Previous: $313M-21.5%
Gross Profit

$624M

Previous: $595M+4.9%
Cash & Equivalents

$438M

Previous: $247M+77.4%
Total Assets

$17.5B

Previous: $17.4B+0.4%
Stock-Based Comp

$46M

Previous: $27.7M+66.1%

Revenue & EPS history

SS&C · Revenue · Quarterly

$1.33B

Q2 2022+5.5%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

SS&C · $1.33B total across 2 segments · Q2 2022

  • Software-enabled services
    $1.07B+1.3%
  • License, maintenance and related
    $258M+27.8%

Forward guidance

SS&C provided guidance for Q3 2022 and FY 2022, including adjusted revenue, adjusted net income, adjusted diluted EPS, cash from operating activities, capital expenditures, diluted shares, and effective income tax rate.

Tailwinds

  • Q3 2022 Adjusted Revenue ($M): $1,324.0 – $1,364.0
  • Q3 2022 Adjusted Diluted Earnings per Share attributable to SS&C: $1.15 – $1.21
  • FY 2022 Adjusted Revenue ($M): $5,320.0 – $5,406.0
  • FY 2022 Adjusted Net Income attributable to SS&C ($M): $1,256.0 – $1,297.0
  • FY 2022 Adjusted Diluted Earnings per Share attributable to SS&C: $4.76 – $4.90

Headwinds

  • SS&C does not provide reconciliations of guidance for Adjusted Revenues and Adjusted Net Income to comparable GAAP measures
  • SS&C is unable to forecast certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts.
  • 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
  • The unavailable information could have a significant impact on Q3 2022 and FY 2022 GAAP financial results.
  • Capital Expenditures (% of revenue) 3.2% – 3.6%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.3%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.3%

Avg return

30 days after

56%

37 / 66 earnings

Positive

+10.5%

Q3 2019

Best reaction

-17.4%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.8%-0.8%-4.3%
Q4 2025+3.2%-2.8%+1.1%
Q3 2025+4.6%+3.0%+3.7%
Q2 2025-1.2%+0.1%+1.5%
Q1 2025-6.1%-2.4%+3.0%
Q4 2024+6.0%+7.7%+5.0%
Q3 2024-7.6%-7.0%+0.4%
Q2 2024+7.4%+9.1%+10.0%
Q1 2024-0.5%+0.6%+0.5%
Q4 2023+3.0%+3.6%+1.9%
Q3 2023-1.3%+1.8%+13.1%
Q2 2023-8.8%-7.2%-10.9%
Q1 2023+6.5%+1.3%+0.5%
Q4 2022+5.0%+2.6%-5.8%
Q3 2022+3.9%+4.1%+6.2%
Q2 2022-5.9%-3.4%-6.6%
Q1 2022-4.8%-3.3%-4.7%
Q4 2021-7.3%-7.3%-9.1%
Q3 2021+6.5%+4.9%+5.5%
Q2 2021+5.1%+2.7%+1.6%
Q1 2021+3.4%+2.4%+1.7%
Q4 2020-3.0%-4.0%-0.5%
Q3 2020-3.8%-4.9%+10.5%
Q2 2020+1.4%+0.2%+11.0%
Q1 2020-2.2%+0.9%+3.3%
Q4 2019+1.6%+2.6%-30.3%
Q3 2019+10.5%+11.2%+15.3%
Q2 2019-17.4%-24.8%-24.6%
Q1 2019-10.7%-10.5%-15.4%
Q4 2018+8.0%+9.1%+12.2%
Q3 2018+4.5%+0.9%-1.8%
Q2 2018+5.2%+3.3%+10.0%
Q1 2018-2.7%-2.8%+2.5%
Q4 2017+0.5%+1.4%+5.7%
Q3 2017-3.5%-4.7%-2.8%
Q2 2017-1.2%-2.5%-4.6%
Q1 2017-1.5%-0.2%-0.3%
Q4 2016+8.3%+8.5%+10.7%
Q3 2016-4.2%-2.6%-3.7%
Q2 2016+3.1%-1.8%+1.6%
Q1 2016-5.6%
Q4 2015-5.4%
Q3 2015-3.5%
Q2 2015+4.3%
Q1 2015-5.7%
Q4 2014+3.4%
Q3 2014-0.6%
Q2 2014-3.0%
Q1 2014+4.0%
Q4 2013+3.8%
Q3 2013+0.3%
Q2 2013+3.4%
Q1 2013+7.0%
Q4 2012+7.4%
Q3 2012+1.8%
Q2 2012+1.0%
Q1 2011+1.1%
Q1 2012+1.3%
Q4 2011+1.7%
Q4 2009+1.7%
Q3 2010-0.7%
Q3 2011-0.7%
Q2 2011+2.2%
Q4 2010+2.2%
Q2 2010+2.2%
Q1 2010-1.4%

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