NASDAQ$SSNC

SS&C Technologies Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

SS&C Technologies' Q2 2023 performance was marked by revenue growth and strategic capital allocation, including a new stock repurchase program.

SS&C Technologies reported a 2.6% increase in GAAP revenue, reaching $1,362.6 million, and a 21.4% increase in GAAP earnings per share to $0.51. The company also announced a $1 billion common stock repurchase program and paid down $125.2 million in debt.

  • GAAP Revenue grew by 2.6%, while adjusted revenue increased by 2.5%.
  • Net income attributable to SS&C was $130.7 million, representing an 18.2% increase.
  • The company repurchased 2.0 million shares for $111.9 million during the quarter.
  • SS&C paid down $125.2 million in debt, bringing the net leverage ratio to 3.27 times consolidated EBITDA.

Headline financials

Total Revenue

$1.36B

Previous: $1.33B+2.6%
EPS (adj)

$1.08

Previous: $1.10-1.8%
Operating income margin

21.2%

Previous: 18.5%+14.6%
Capital Expenditures

-$24.2M

Previous: -$22.6M-7.1%
Free Cash Flow

$107M

Previous: $88M+21.0%
Net Income

$131M

Previous: $111M+18.2%
Operating Income

$288M

Previous: $246M+17.3%
Gross Profit

$641M

Previous: $624M+2.7%
Cash & Equivalents

$440M

Previous: $438M+0.3%
Total Assets

$15.9B

Previous: $17.5B-9.4%
Stock-Based Comp

$33.5M

Previous: $46M-27.2%

Revenue & EPS history

SS&C · Revenue · Quarterly

$1.36B

Q2 2023+2.6%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

SS&C · $1.36B total across 2 segments · Q2 2023

  • Software-enabled services
    $1.11B+3.3%
  • License, maintenance and related
    $256M-0.7%

Forward guidance

SS&C Technologies provided guidance for Q3 2023 and FY 2023, including adjusted revenue, adjusted net income, adjusted diluted earnings per share, cash from operating activities, capital expenditures, diluted shares, and effective income tax rate.

Tailwinds

  • Q3 2023 Adjusted Revenue: $1,355.0 - $1,395.0 million
  • Q3 2023 Adjusted Net Income: $287.0 - $309.0 million
  • Q3 2023 Adjusted Diluted EPS: $1.13 - $1.21
  • FY 2023 Adjusted Revenue: $5,469.0 - $5,575.0 million
  • FY 2023 Adjusted Net Income: $1,160.0 - $1,225.0 million

Headwinds

  • FY 2023 Capital Expenditures: 3.9% - 4.1% of revenue
  • Q3 2023 Diluted Shares: 254.0 - 256.0 million
  • FY 2023 Diluted Shares: 254.0 - 257.0 million
  • Effective Income Tax Rate: 26%
  • SS&C does not provide reconciliations of guidance for Adjusted Revenues and Adjusted Net Income to comparable GAAP measures

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 2023

Historical avgQ2 2023

+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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