SS&C Technologies (SSNC) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted revenue reached $1.452 billion, up 6.5% year-over-year, with organic growth of 6.4%.

• Adjusted diluted EPS rose 17.6% to $1.27; GAAP net income was $190.3 million, up 45.6% year-over-year.

• Adjusted consolidated EBITDA reached $558.9 million, with margin up 170 bps to 38.5%.

• Record share buyback: 3.7 million shares repurchased for $227 million; new $1 billion repurchase program authorized.

• Strong organic revenue growth in alternatives, GIDS, wealth and investment technology, and Intralinks businesses.

Financial highlights

• Adjusted revenues were $1,452.4 million, up 6.5% from Q2 2023; adjusted operating income was $541.7 million, up 11.5%.

• Operating cash flow for Q2 2024 was $384.9 million, up 16.8% year-over-year; cash flow conversion exceeded 120%.

• Net income for the first half of 2024 was $347.9 million, up from $256.7 million in the prior year period.

• Net leverage ratio reduced to 2.84x consolidated EBITDA; net secured leverage ratio at 1.60x.

• Gross margin improved to 48.1% in Q2 2024 from 47.0% in Q2 2023.

Outlook and guidance

• Q3 2024 adjusted revenue expected between $1.42B–$1.46B; adjusted EPS $1.21–$1.27.

• FY 2024 adjusted revenue guidance: $5.706B–$5.866B; adjusted EPS: $4.98–$5.22; cash from operating activities: $1.305B–$1.385B.

• Effective income tax rate projected at 26% for FY 2024.

• Management expects sufficient liquidity for at least the next twelve months.

• Ongoing macroeconomic factors such as interest rates, inflation, and FX rates may impact future results.