SS&C Technologies (SSNC) Q3 2024 earnings summary

Executive summary

• Q3 2024 GAAP and adjusted revenue grew 7.3% year-over-year to $1,466.8 million, driven by organic growth and the Battea acquisition.

• Adjusted diluted EPS rose 10.3% to $1.29; GAAP diluted EPS was $0.65, up 6.6% year-over-year.

• Net income attributable to common stockholders was $164.4 million, up 5.4% year-over-year.

• Completed Battea-Class Action Services acquisition for approximately $670–$671 million, expanding service offerings and cross-sell potential.

• Repurchased 1.2 million shares for $89.4 million at an average price of $72.72 per share.

Financial highlights

• Adjusted revenues reached $1,466.8 million in Q3 2024, up 7.3% year-over-year; adjusted EBITDA was $566.2 million with a 38.6% margin.

• Operating income for Q3 2024 was $325.1 million, up 6.1% year-over-year; adjusted operating income was $548.8 million.

• Operating cash flow for the nine months ended September 30, 2024, was $902.0 million, up 9.1% year-over-year.

• Gross margin for Q3 2024 was 48.0%; operating margin was 22.2%.

• Net cash used in investing activities for the nine months ended September 30, 2024, was $802.6 million, mainly for acquisitions and capitalized software.

Outlook and guidance

• Q4 2024 adjusted revenue guidance: $1,460–$1,500 million; full-year 2024: $5,815–$5,855 million.

• Q4 2024 adjusted diluted EPS: $1.29–$1.35; full-year: $5.12–$5.18.

• Q4 2024 adjusted net income: $329–$345 million; full-year: $1,299–$1,315 million.

• FY 2024 operating cash flow guidance: $1,330–$1,370 million; capital expenditures 4.1%–4.5% of revenue.

• Guidance reflects tough year-over-year comps and macroeconomic uncertainties.