Q4 2022 SS&C Technologies Holdings Inc Earnings Call
Speaker 1: That.
Speaker 2: I.
Speaker 3: I.
Speaker 4: SS&C Technologies, Fourth Quarter, 2022 earnings conference call.
Speaker 5: After the speaker's remarks, there will be a question and answer session if you would like to ask a question. During this time, simply press the star followed by the number 1 on your telephone keypad.
Speaker 6: It is now my pleasure to turn today's call over to Justine Stone, Head of Investor Relations. Please go ahead.
Speaker 7: Hi everyone, welcome and thank you for joining us for our fourth quarter 2020.
Speaker 8: to Erin's call. I'm just Dean Stone, Invest Relations for SSMC Technology. With me today's Bill Stone, Chairman and Chief Executive Officer, who will can work, President and Chief Operating Officer, and Patrick Codonti, our Chief Financial Officer. Before we get started, we need to review the state's harbor statement. Please note the various remarks we make today about future expectations.
Speaker 9: including those discussed in the risk factor section of our most recent annual report on Form 10K, which is on file with the SEC and can also be accessed on our website. These four of those statements represent our expectations only as of today, February 7th, 2020-2023.
Speaker 10: While the company may elect to update these forward-looking statements, it specifically displays any obligation to do so. During today's call, we will be referring to certain non-GAAP financial measures. The reconciliation of these non-GAAP financials to comparable GAAP financial measures is included in today's earnings release.
Speaker 11: which is located in the Invest Relations section of our website at www.sctex.com.
Speaker 12: located in the investor relations section of our website at www.ssctechs.com. I will now turn the call over to Bill.
Speaker 13: Thanks, Justine. And thanks everyone for joining. Our results for the fourth quarter are $1,339 in adjusted revenue up 3.3% and are adjusted to diluted earnings for share of 1.4 or $1.16 down 9.4.
Speaker 14: Adjustment consolidated EBITDA was $518.6 million, third highest in our history, and our EBITDA margin was 38.7%. Our fourth quarter adjusted organic revenue was flat in line with our expectations for the year.
Speaker 15: Total organic growth was 2%. While our financial services organic growth, which is 94% of our revenue, was 3.7%.
Speaker 16: 2022 was a challenging operating environment for SSTC, but we are pleased that.
Speaker 17: with the revenue performance from our software businesses.
Speaker 18: including advent, investment, and institutional management, and the resiliency of our alternative fund administration and Interlinks business.
Speaker 19: In 2022, SS&C generated net cash from operating activities of $1.134 billion, including $67 million in deal-related expenses.
Speaker 20: We paid down $166 million in debt in Q4, bringing our consolidated net leverage ratio to 3.4, and our net secured leverage ratio to 2.4.
Speaker 21: So it's 2.4 times consolidated EBITDA.
Speaker 22: This past January , as we were in our quarterly blackout period for stock buybacks, we paid down debt an additional $101 million.
Speaker 23: In Q4 we bought that 1.8 million shares for 90.7 million at an average price of $50.14.
Speaker 24: For the year, we had stocked bybacks of $476 million for purchases of 7.8 million shares of average price of $61 anapin.
Speaker 25: We will continue to allocate about 50% of our cash flow to stock buybacks and about 50% to debt pay down.
Speaker 26: In December , we acquired Complete Financial Ops, a specialized Colorado-based fund administrator that focuses on private equity and family offices. CFO Fund Services will augment SST capabilities in servicing venture capital.
Speaker 27: And family office funds, CFO clients will enjoy the same outstanding service backed by SMC size scale and comprehensive solutions.
Speaker 28: We remain methodically opportunistic in our acquisition strategy. buy wishes come down.
Speaker 29: more in line with our discipline strategy and we are evaluating several opportunities.
Speaker 30: We remain very bullish on our Blue Prism acquisition, and we are ramping our digital workers deployment throughout our business.
Speaker 31: I'll now turn it over to Rahul to discuss the quarter in more detail.
Speaker 32: Thanks Bill. CUPLE results demonstrate the strength of our business amidst the challenging operating environment and highlight our ability to drive margins despite inflationary pressures.
We exited 2022 with 38.7% EBIT on margin of 330 basis points from the low point in Q2.
Cost controls, facilities reduction, and productivity improvements enable this quick turnaround.
While labor markets remain volatile, we believe Blue Prism's intelligent automation technology will be an important means to harnessing the productivity of our workforce.
remain volatile, we believe Blue Prism's intelligent automation technology will be an important means to harnessing the productivity of our workforce in 2023 and beyond.
As a business unit, Lupersham continues to grow nicely and exit the 2022 with 20% of the David Trump margins.
We continue to see opportunity in the private credit market.
where we're investing in a highly scalable offering, combining the strengths of Advent software products and global services capabilities. A key component will be the build-out of a robust data platform that integrates multiple-assistancy technologies, including Geneva, TNR, PrecisionLM, and others.
Private credit represents the latest example of SSNC developing technology, expertise, and services to address the needs of a very specialized and complex set of fund managers.
This is a strategy we have employed effectively and repeatedly as we have built the world's largest alternatives administration business.
I will mention some key deals for Q4.
three existing SS&C clients upgraded to our newest platform, Aloha. We currently have over 30 clients live on Aloha.
A 13 billion asset manager partnered with SSNC for fund accounting and reporting functions on their real assets portfolio.
This partnership includes lifting out 60 employees in Texas.
One of the ST's largest clients expanded their relationship to include more transfer agency operations.
A Canadian alternative asset manager shows SSNC for suite of private equity administration services, including regulatory reporting, treasury services, and investment vision, citing their need for Canadian and international expertise, as well as scale for future growth.
A $75 billion hedge fund chose Geneva for its superior functionality around loan processing and accounting. A Hong Kong-based asset manager chose EZ EMS OMS.
As it needed greater F-A-class coverage, flexibility, third party integration, and compliance functionality.
MindSuper, managing $12 billion in assets on behalf of 55,000 members, became SSNC's first Australian superannuation client.
The partnership will deliver superior digital experiences for members, driving greater member engagement and stronger retirement outcomes.
I will now turn it over to Pat Friek to run through the financials.
Thanks. The results for the fourth quarter 2022 were gap revenues of a billion.
$338 million, GAAP net income of $207.5 million, and diluted EPS of 81 cents.
Adjusted revenues were $1,339,100,000.
Adjusted revenue was up 3.3%.
Adjusted operating income decreased 1.1% and adjusted diluted EPS was $1.16.
a 9.4% increase from Q4 2021.
Overall, adjusted revenue increased $42.9 million, or 3.3 percent, from Q4 2021.
Our acquisitions contributed 72.5 million.
Foreign exchange had an unfavorable impact of 28.7 million or 2.2 percent in the quarter.
Adjusted organic revenue was flat on a constant currency basis.
We had strength in several product lines, including alternatives.
institutional investment management and the entroling business. That strength was impacted by weakness in our GINS transfer agency business and healthcare business.
Adjusted operating income in the fourth quarter.
was $502.1 million, decrease of $5.4 million or 1.1% in 2421. Adjusted operating margins were 37.5% in the fourth quarter of 22 compared to 39.2 in the fourth quarter of 2021.
Excluding acquisitions, expenses increased 2.6% on a constant currency basis. Acquisitions added 56.7 million in expenses and foreign currency decreased costs by 27.9 million.
Our cost structure has been impacted by wage inflation and higher staffing to support our business.
Adjust and consolidate ABDAT defined in note three of our earnings release.
So 518.6 million or 38.7% of adjusted revenue.
a decrease of $4.3 million or 0.8% from 2421. That interest expense for the quarter.
was $104.9 million and includes $3.7 million of non-cash.
Amortized financing costs and OID. The average interest rate in the quarter for our amended credit facility, including the figure notes.
was 5.64 percent compared to 3.09 percent in the fourth quarter of 2021. Adjusted net income was 296.6 million and adjusted EPS to the dollar 16 and the affected tax rate used for adjusted net income was 26 percent.
The Looted Chair decreased the 256.4 million from 260.9.
shares decreased to 256.4 million from 260.9 million in Q3.
share repurchases and the lower average stock price during the quarter led to the decrease.
In the fourth quarter of 2022, we reported two GAAP, fair value, unrealized GAAPs.
totaling $68.8 million for investments we made in 2020 and 2021.
These gains are excluded from our justice and natural results.
On the balance sheet, we ended the quarter with 440 million cash and cash equivalents and 7.1 billion of gross debt.
SS&C net debt, which excludes the cash of $134 million at Domani RX, was $6.8 billion as of December 31st.
Adjusted for the transaction cost, cash flow was $1,201 million or a decrease of $227 million, or 15.9% compared to 2021. Cash flow was impacted by higher interest rates, lower Aveda, and an increase in receivable DSO. During the three months ended December 31st, we paid down $166 million of debt and purchased $90.7 million as talk by back. Highlights for 12 months on the cash flow, we paid $1,201 million.
$1,636,000,000 for acquisitions including Blue Prism, Hubwise Mineral Ware, O'Shares, Tier 1, and Complete Financial Ops, Net of Cash Required.
Treasury stock buybacks totaled $476 million, but purchased the $7.8 million shares as the average price of $61.01 compared to $487.9 million of Treasury stock buyback in 2021.
In July , the board authorized the new stock purchase program up to a billion dollars.
Program to date, stock buybacks totaled $305.2 million for purchases of 5.5 million shares at an average price of $55.17.
For the year we declared and paid dividends of $203 million.
compared to $174 million last year, an increase of 16.7%.
In 2021 2022 we paid interest of 298 million
compared to 192.5 million in 2021.
Income taxes paid this year total 281 million compared to 310 million in 2021.
Our Council receivable DSO was 52.3 days as of December 22 and that compares to 51.8 as of September 22 and 49.5 as of December 2021. Capital expenditures and capitalized software total 208 million or 3.9%
was $2 billion, $10 million.
as of December 22. And based on the net debt of 6.8 billion, our total leverage was 3.4 times, and our secured leverage was 2.4 times as of December 31.
On Outlook for 2023, I cover a few assumptions first. We'll continue to focus.
on client services and we expect our retention rates to continue a range of most recent results. We have assumed foreign currency exchange at the year-end 2022 levels.
As a result, adjusted organic growth for the year will be between 2% and 6%. And adjusted organic growth for Q1 will be in the range of negative 0.5% to positive 2.5%.
We've assumed interest rates will average approximately 6.35%.
for the year for our credit facility and see your notes.
We expect staff productivity to improve by approximately 5%.
and will manage expenses during this period by controlling variable costs.
to improve our operating margins in the rate of 50 to 150 basis points compared to 2022.
We'll continue investing in our business long term in the areas of capital expenditures, product development and sales and marketing.
And we'll continue allocating free cash hold of both the paid down debt and buyback stock.
And we've assumed that the tax rate will be approximately 26%.
So for the first quarter of 2023, we expect revenue in the range of $1,332,000,000 to $1,372,000,000.
Adjusted net income in the range of $282 million to $299 million, and diluted shares in the range of $156 million to $157 million.
For the full year of 23, we expect revenue in the range of $5,455,000,000 to $5,655,000,000. That's a net income in the range of $1,190,000,000 to $1,285,000,000.
and dilute shares in the range of 255 million to 258.5 million. And for the full year, we expect cash from operating activities to be in the range of 1 billion, 275 million.
to $1,375,000,000. And I'll turn it over to Bill for final comments. Thanks, Patrick. 2023's improved operating environment will present more of our growth opportunities for SSMC. We look forward to capitalizing on these opportunities and delivering superior results to our shareholders. I'll now open it up to questions.
At this time I would like to remind everyone if you would like to ask a question please press star 1 on your telephone keypad. Your first question comes from the line of Surrender Thigned with Jeffries.
Your lawn is open. Thank you. I'd like to start with a question or two around productivity. Can you maybe talk a little bit about just the digital workers and kind of the efficiencies that you're seeing there? So when you give metrics such as...
there's 180 digital workers. Does that replace a certain amount of employee hours or how should we think about that and maybe just the kind of the targets that you have for the full year that you laid out relative to last quarter.
Yeah, we expect on average, conservatively, that a digital worker will probably save us $50,000 per digital worker deployed.
We're not replacing personnel.
on a one-for-one basis with digital workers. What we're doing is allowing ourselves to hire less.
and get more productivity through the deployment of digital workers, and then also perhaps not to have.
to hire for some of the attrition. So we look at this as a
Win-win for our employees. The digital worker tends to take over repetitive tasks.
which gives our employees a more interesting job.
And then it also is obviously.
across savings and efficiency process for us.
And we would hope to deploy, I believe, somewhere around 1,500.
to say $1350 to $2,700. Did their workers in 2023? And then in terms of just what that means for the expense line item, the comment around
a 5% improvement in productivity. So, in terms of when we think about the revenue guide, does that mean expenses should be relatively flat year over year, just in absolute terms?
I think that is what it implies. I think obviously we have to manage.
And we're subject to every other, just as every other company, depending on what inflation is and what's happening in the labor market. But other than that, the productivity we expect out of the deployment of digital workers should offset.
you know, some of the expenses that we would pay for higher salaries.
and and and those are expensive. Got it, and then just one quick follow-up in terms of the the commentary around the M&A Any additional color that you can provide there in terms of the types of opportunities you're looking at or the scale of opportunities?
Any color there would be helpful. Yeah, we see a number of dislocations in the FinTech space. So there's going to be opportunities for large end swall.
And as always, that's what I can see is a discipline to acquire.
We're also somewhat of a reasonably voracious acquirer when prices are in our discipline generally.
And that's not 10 times revenue. So, you know, we think that the market is moving to where we are. We think that we have lots of productivity opportunities.
And we think we'll be a good home for different types of...
companies we could acquire.
Thank you, Bill.
Your next question comes from the line of Alex Cram with UBS.
Please go ahead. Yeah, hey. Good evening anyone. Just to follow up on the, I guess, cost and margin question. I think Patrick specifically said 50 to 150 basis point margin expansion. Maybe I didn't hear that right, but if that's the case, I guess. Yeah, so I think it gets you in EBITDA terms to around 39 at the midpoint.
if you think about the four quarters. Yeah, I think, you know, we will have had Blue Prism for a year in the middle of March.
four quarters. Yeah, I think you know we we will have had Blue Prism for a year in the middle of March and we're rapidly...
deploying digital workers but you know the ramp up will will be obviously
And the savings that we will incur, you know, will be, you know, heavily weighted probably to Q3 and Q4, just as the use of those digital workers will be full-time in those quarters and less so as much in Q1 and Q2.
Okay, fair enough. And then flipping to the revenue side.
I think 2 to 6 percent organic. That's an acceleration clearly from where we were in 2022. So, anything to point out, any puts and takes, but in particular, healthcare obviously was a big detractor.
in 22. So is this now all in the run rate or is it actually a little bit more bleeding or should that business actually start growing again? And then since you just mentioned Blue Prism, I think last quarter you actually gave the growth rate and now that it's flipping organic would be very helpful to see how that business is doing on an external perspective. So any other comments on organic would be helpful. Thanks.
Go ahead, Patrick. Well, just to answer a few of your questions, I think, you know, Blue Prism is a very, very good organism.
turns organic in mid-March of 23. But if you calculate their revenue growth this past year organically, I think they've averaged in the mid teens.
They were a little bit higher and they were about 13% in Q4 and we expect them to be in around mid teens.
in 2023.
And then on the healthcare side, sorry, again since that was the biggest area of weakness. Is that behind us?
I think on the healthcare side, so there'll be a little bit of reduction in the revenue reduction. So I think they were down about 20 percent in 2022 and might be down about 10 percent in 2023, especially in the first half of the year with the comparables. So I think they were down about 20 percent in 2020.
Okay, so that's still new client losses and should we just expect that that business doesn't really grow organically until Domane RX really kicks in or is it just a holding pattern that clients are in or how you thinking about healthcare in general what's going on under the hood?
Well, we've done a lot of things in healthcare, and I think that we have a lot of opportunities. The question is obviously is, you know, you have to hit those healthcare systems on renewal dates.
So we're cautiously optimistic that Damani is...
is progressing well and we have some talented people working on that and and I think that you know there is
you know, it's not gigantic optimism for 2023, but we think there's a pretty good ramp we can get to in 2024.
Excellent. Thank you very much guys.
Your next question comes from the line of Jeff Smith with William Blair.
Hi, thank you. Alternative organic growth is holding up fairly well, 4.5% in the quarter, but it looks like private markets growing in the high teens, so I presume the hedge fund business is negative growth, and maybe if you could speak to the disparity in growth in those two businesses. The issue does not change too much in the first-generation interest rate, both overall and paid to each know across the official portfolio, between the hundreds and millions. Diamonds arises the path of the businesses, and both grants to the relic here.
Raul, you want to take that? Sure. You know, I actually think the hedge fund business is slightly positive. You're correct that it's nowhere near.
the private markets growth, but we're probably assuming, you know, in 2023 and our plan 2 to 3% growth in the hedge fund side of it and mid teens or higher in the private markets and that's what kind of makes, you know, the sum of the two. I would say in commentary and specific on the hedge fund side is our sales performance continues to be strong.
I think we've continued to see demand for middle office services and some of the additional modules and things that we have rolled out, including Go Central. We're obviously not benefiting from a ton of inflows in hedge funds now, but as that turns around, we think we'll be well positioned because we are taking market share. And in the meantime, the private markets and private credit.
businesses continue to become bigger parts of this, and so move the growth algorithm higher. Okay, and then a question on the healthcare business. It seems like it's the medical business that is sort of your downsizing, and I think that's a lower margin business relative to the pharmacy, but I guess my question is with that sort of going down.
Is it big enough? Is it having a positive impact on overall margins? Or how big is the margin disparity there, I guess? But I think healthcare runs in the high 20s, you know, and the rest of the business is running in the high 30s.
That's about right ripple
So it's about, I guess, about a $280, $99 business.
So it's still a substantial business with substantial opportunity. And I just think it's execution and attention. And I think we're putting execution and attention into that space.
Okay, thank you. Your next question comes from the line of Peter Heckman with DA Davidson. Hey, good evening. I had just a couple of follow-ups. There were a whole larger customers that we talked about through last year. Can you talk about...
when you expect them to go live this year, and then in terms of the couple lift outs, you talked about the one in Texas, not sure if you talked about the others, but when we should see some of the bigger customers in the conversion backlog hitting and starting to contribute to organic. Yeah, a number of them we think.
are in the first quarter at the end, I think primarily in March. Then we have a number of other ones that we would expect to be in the second quarter, and then hopefully we will be able to, you know, with everything that started off and had been signed and closed in.
in 2022 that we would be able to pretty much have them live by the end of the third quarter. So there's still substantial amounts of sole revenue that we have not recognized yet.
I don't know, Rahul, if you have any more comment on that. No, Bill, I think that's exactly right. It's throughout the course of the year, some in Q1 and Q2, and we get pretty close to full towards the latter half of the year.
Okay, and then I think you covered it in part, but how would you characterize the environment for new business in the fourth quarter? Was it basically in line with your expectations, better, worse? And then how do you find customers' decision-making, their willingness to make decisions here in the first half of 2020?
middle office and I think there's a lot of pressure on our customers to get more efficient.
And I think they're finding that maintaining software systems and large staffs of operations and accounting people is not necessarily their core competencies. And that's really our opportunity and we think we're taking advantage of it and we believe we have the best sales force and that they're...
They're executing at a pretty high level. All right, thank you. Your next question comes from the line of Andrew Smith with sitting. Hey guys, good evening. Thanks for taking my questions. Yeah, does it cut it just?
drill down in organic growth. This has been asked a few different ways, but if you could just talk about your visibility in terms of the acceleration and growth as you're progressing. Part of it is obviously blue prism coming to the mix and then some of it is gold eyes which you have a pretty good sense of.
perhaps, you know, even a better sense now that implementation resources are a little more stable. But maybe talk through if there's any other drivers we should think about in terms of your confidence for achieving the organic growth outlook for this year. And then, you know, anything about just embedded macro assumptions goes back to other questions that have been asked, but any other color there will be helpful.
for the whole business. And so that gives us some confidence and some left.
And we continue to bring out new systems and new services and successful new products like Aloha and Singularity and Go Central are all positive things that drive the business forward and packages of products of ours that we sell like our trust system combined with our wealth management product. But Diamond has been pretty effective and we think it will continue to be. Got it, that's helpful. And then, you know, I last year obviously the labor pressure there was some.
increasingly higher level. But these are big complex implementations and you know you have, you know, still have some work from home issues and other things that cause collaboration to be a little bit more difficult and stretch out some timelines. But I would say that we're optimistic that we're getting increasingly better.
And then hopefully those results will start showing up in our quarterly financials.
Perfect. Thank you very much, Phil.
Your next question comes from line of Kevin McVey with Credit Suisse.
Great, thanks so much. Nice acceleration on the organic growth in 23.
Beyond Blue Prism, is there any way to disaggregate the components that get to the 2 to 6 in terms of some of that Blue Prism, some of that's pricing, some of it's retention? Is there any way to maybe just... Because all your ways toUn FOX works on you and then on to the other gray side. So it's definitely something that you can use whenever you have something that you just need to care about if you don't have forex
to bring those numbers a little bit.
Well, I think we've talked about it. I think you've got to allocate it probably to four buckets. And you can put it one to two to 3% in each one of the buckets. But I think it is price increases. It's new business sold. It's clearing the backlog.
and it's new products and services that we're bringing to the market. So, we're saying two to six and you know.
We would love to guide you to just six, but we want to be cautiously optimistic. And there are still a lot of things happening in the world, whether it's the war in Ukraine, it's inflation in the United States, it's labor issues here in the United States, there's weakness in Europe and in the UK. And so you learn a lot of things.
And we're trying to give you as much color as we can without trying to act like we have a crystal ball because we're not.
It's helpful, Bill. And then maybe just it sounds like Blue Prism exited 2022 at 20% E, but any sense of how that should scale over the course of 23? I think we've said over the last...
last year that we would expect Blue Prism to increase their margins in the 500 to 1,000 basic points in 2023. That'll go through a whole lot more.
more color than that.
No, I agree with that, but I think a goal for us at the end of 23 would be to aggregate it at about a 30% margin. So that's the, you know, obviously the upper end of what Bill just said.
Thank you. Your next question comes from the line of Terry Tillman with Truist Securities.
Yeah, thanks for taking my questions. I guess the first one, Patrick, for you in terms of I was trying to write this information on it at a fast pace, but I may have missed some of it. The 3.7% organic growth for financial services, was that 4.2% for the full year?
I think that was the full year.
Can you tell me Patrick or give me a sense how it was in 4Q?
Thank you.
I'd have to look it up. Let me look it up if you've got another question.
I do. Okay, thanks for that. Hey, Bill. Nice to talk to you again. I was curious about the private credit opportunity. You all called that out in the prepared remarks. Is there anything you can share with us in terms of important technology milestones in 23?
And what about selling and could this start to become a monetizable setting in a meaningful way in 23? And just what's that market like from just a size or scale perspective?
Well welcome back Jerry we haven't heard from you in a while.
Oh
Welcome to True Estate. And I would just say that private credit is really, you look around the world and you have companies.
You know like Apollo that has 550 billion under management, and they also own the theme with another 330 billion you know and and you know the other large-scale private equity firms and and and the deals getting done like that.
I think the recent deal out of the Emerson Electric or somebody where black stones in a completely private.
spin out of a big division and I just think the private markets are becoming, you know.
to rival the public market. So, you know, there's a lot of stuff that we've done and Rahul talked about it in his remarks about tying a bunch of our pieces of technology together and really, you know, distancing ourselves from our competitors with what our capabilities are.
And I think that's why you see that growing as nicely as it is. And I think that there's a number of funds that are pivoting towards them.
you know private private credit and other other private
fund type investments and I think that's going to continue.
Yep, got it. And maybe just one more. Well, yeah, did I? I had Patrick off on a goose chase. So I got the number for you, Terry.
We just want like what yeah today I had Patrick off on a goose chase
Q4 for the financial services excluding healthcare, organic growth of 1.3%.
Wonderful. Okay. Thank you all very much.
Your next question comes from line of James Opposite with Morgan Stanley .
Great, thank you so much.
You guys, Bill, you mentioned that you're seeing, you want to be acquisitive and you're seeing some dislocations in the FinTech space. I'm wondering if you can talk about a little...
how you're thinking about potential structure of those deals financially, especially since the cost of capital now is obviously higher than has been at least pre-pandemic, etc. Just wondering if that changes the way that you have to approach those deals, what kind of companies you can look for and what kind of
these structures and we like to have a capital structure that is
You know pretty easy to to understand and then
And we have operated under quite a bit higher interest rates than what we're seeing today, even though interest rates today are quite a bit higher than they have been for the last five to ten years. So I don't think that we would structure them very differently. We might have a partner or we might have a...
you know, a large scale.
You know, probably the fun to our large scale tension, you know.
be a big supplier of credit to us or even some equity, you know, if we can get it at the right price.
which would be where we are now.
Got it. Okay, that's really helpful. And then you mentioned that you felt like you were taking some share in the hedge fund space. Is this via ads? And I guess kind of what I'm looking at is one of your primary competitors, at least in the hedge fund launches, has been going through some management transitions.
how much of an opportunity is that presented and has that been a chance for as Eclipse to grab some share in business.
Well, we think we have very hot, very stuffed pipelines. You know, the question is, is obviously closing them. And, and as you well know, right, when, when the markets are as choppy as they have been for the last couple quarters, you don't have nearly as many fun launches.
as you have had in the past. So you know we're cautiously optimistic that we can ramp our Eclipse product and then also tie it in with our funds administration capabilities. So yeah we're optimistic about that and yeah that's just one other.
and tech company that has a few challenges. Great. Hey, appreciate that color bill. Thanks.
There are no further questions at this time. I will now turn the call back over to Bill Stone.
Yeah, we really appreciate everybody getting on the call today. You know, I would like to recommend that you recognize that the $518 million in adjusted EVA dial is the third largest in our history, which is 36 years. So we're pretty proud of that. We think we're doing the right things. We're thinking we're keeping our nose to grindstone.
and getting stuff done and I appreciate the 27,000 people that work with us and make things happen and we're optimistic that
you know when we talk to you at the end of Q1 that hopefully we have a positive story to tell.
Thanks again.
This concludes today's call. You may now disconnect.