SS&C Technologies (SSNC) The 44th Annual William Blair Growth Stock Conference summary

Business overview and market position

• Provides mission-critical, cloud-based software and outsourcing for financial services, with a smaller healthcare segment.

• Holds leading positions in alternative fund administration and mutual fund transfer agency, which together account for about 50% of revenue.

• Offers a broad suite of services including fund accounting, data analytics, compliance reporting, and intelligent automation.

• Operates independently, avoiding channel conflicts, and has a global presence with 114 offices and over 26,000 employees.

• Drives employee alignment through deep equity compensation, even at junior levels.

Technology and competitive advantage

• Owns and controls key software platforms like Geneva and Black Diamond, enabling rapid enhancements and broad client benefit.

• Operates a private cloud and data centers, providing infrastructure control and security.

• Leverages scale and technology to address complex client needs, especially for large organizations.

• Integrates robotic process automation (Blue Prism) to boost internal efficiency and client offerings.

• Maintains high revenue retention rates, consistently above 95%.

Financial performance and capital allocation

• Achieved 5.3% revenue growth in Q1, with 4.7% organic; recurring revenue growth rate remains strong at 6.5%.

• About 85% of revenue is from stable, recurring sources; licensing revenue can be lumpy.

• Recent capital allocation focused on debt reduction, with a shift toward share repurchases expected for the rest of the year.

• Quarterly dividend maintained at $0.24, with a low payout ratio.

• Leverage ratio now under 3, following a successful debt refinancing that extended maturities and reduced interest expense.