Q1 2023 SS&C Technologies Holdings Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the U S. S. N C technologies.
Q1, 'twenty two 'twenty three earnings call.
Today's call is being recorded in all lines have been placed on mute to prevent any background noise.
After the Speakers' 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 one on your telephone keypad.
If you would like to withdraw your question you must must press star one again, thank you.
It is now my pleasure to turn today's call over to Josh Stone.
Of Investor Relations. Please go ahead.
Hi, everyone. Thank you for joining us for our Q1 2023 earnings call I'm Justine Stone head of Investor Relations for F. F N C on.
On the call with me today is Bill Stone, Chairman and Chief Executive Officer, Rahul Kanwar, President and Chief operating Officer, and Patrick put onto our Chief Financial Officer before we get started in each review the Safe Harbor statement. Please note that various remarks, we make today about future expectations plans and prospects.
The financial outlook, we provide allowing sprouts.
Okay. Okay.
Constitute forward looking.
Statements for the purposes of the Safe Harbor provisions under the private Security Litigation Reform Act of 1995 actual results may differ materially from those indicated by these forward looking statements as a result of various important factors, including those discussed in the risk factors section of our most recent annual report on Form 10-K, which is on file with the SEC and can also be accessed.
On our website. These forward looking statements represent our expectations only as of today April 27th 2023, while the company may elect to update these forward looking statements. It's specifically disclaims any obligation to do so during today's call, we'll be referring to certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to comparable GAAP financial measure.
Yours is included in today's earnings release, which is located in the Investor Relations section of our website at Www Dot Etsy Dot com.
I'll now turn the call over to Bill.
Thanks, Dan and thanks to everyone for joining.
We started 2020, we were pretty strong revenues at.
136 $3 billion.
Adjusted revenue up five 2% and our adjusted diluted earnings per share.
A little soft to a $1 11.
In our range and was down 11, 2% from last year.
Rising interest rates.
Obviously impacted our earnings.
But we're in very good shape.
Financial standpoint.
We had a lot of inflation, especially in wages and that also puts some pressure on our.
And our bottom line.
Adjusted consolidated EBITDA was over $500 million again.
$509 million.
And our EBITDA margin was 37, 3%.
First quarter with all the payroll taxes.
Health care expenses is normally the highest.
First quarter, we have.
<unk>.
But we do expect to begin to see a lot of cost savings from our prism digital worker deployment.
I'll leave the digital workplace will drive margins and serve as a hedge against inflation.
Currently have over 40 processes.
And are on track to achieve our 2023.
Productivity goes.
<unk>.
Our first quarter adjusted organic revenue was up $1 nine.
We saw good performance in alternatives, and our global Investor and distribution services business retirement, and institutional and investment managers.
We generated net cash from operating activities of $254 8 million for the three months ended March 31 up $38 nine.
Over the same period last year.
We paid down $44 6 million in debt in Q1, bringing our consolidated net leverage ratio to three <unk>.
Three eight.
Our net secured leverage ratio to 239.
Consolidated two to three nine times of consolidated EBITDA.
In Q1.
Back two 3 million shares for $134 7 million at an average price of $59 19.
Program to date Treasury stock buybacks of $439 9 million.
Seven 8 million shares at an average prices.
50, 634 will continue to target, 50% of our cash flow and stock buybacks.
50%.
Hey, Dan.
We still look at lots of M&A.
Oh Wow.
<unk> discipline.
See any movement on.
A large scale.
Yes, Thats all of them, we did see.
Uh huh.
The German course.
Putting in a bid for some corp today.
We do think we will have opportunities for some tuck in in <unk>.
Acquisitions before the end of the year.
This April marks the fifth anniversary of DST acquisition was <unk>.
$2 billion in revenue.
And a long list of large sophisticated clients.
While we have doubled the profitability accelerating their revenue growth the.
The investments in the product the service and the leadership teams. We feel these investments are paying off.
Our biggest prospects currently in our kids and return businesses.
We've all watched volatility in the financial services sector, particularly U S banking over the past few months.
Since it is a strong and diversified company, we have seen limited impact to date.
Always who will support our customers monitor the situation closely closely.
React as necessary.
I'll now turn it over to Rahul to discuss the quarter in more detail.
Thanks Bill.
Our business remains strong despite a volatile macroeconomic backdrop, but several of our business units improving their competitive positioning.
Our alternative fund administration business posted six 6% growth in Q1.
And now has assets under administration of $2 two four trillion.
<unk>, which serves the world's largest asset managers grew 3.6% this quarter, we've invested heavily in the leadership technology and service organization at this business over the last five years and continue to do so.
One large customers over the past few years and entered into long term contract renewals with others. These marquee names, including St. James place Capital Group Brooks Mcdonald JP Morgan Stanley and most recently mined Super provide a solid foundation from which to continue to grow.
We have prioritized innovation and are working on dozens of new products and services across the company.
It would be since the bright line for tax purposes since the everywhere for data connectivity and insights our essence and see private cloud for a purpose built compute solution. These products solve important issues for our customers give our employees, creating ways in which to add value and strengthen our business.
I will mention some key deals for Q1.
A large U K wealth client embarked on a strategic project can move their international accounts <unk> blue door platform.
And alternative asset manager chose <unk> in fixed services after a comprehensive RFP process.
A 30 billion in AUM in private equity and real estate firm chose <unk> <unk> Fund services.
Current brokerage client chose SSN seats, all search solution to help scale and expand client software and then the alternatives market.
And 80 billion real estate manager with a non traded REIT Joseph suite of vessels on <unk> Fund services and retail all transfer agency services.
I'll now turn it over to Patrick to run through the financials.
Results for the first quarter were GAAP revenues of 1 billion $302 7 million.
GAAP net income of $126 million.
And GAAP diluted earnings per share of 49.
Adjusted revenues were $1 billion $363 4 million.
Adjusted revenues were up five 2% adjusted operating income decreased one 1% and adjusted diluted EPS was $2 11.
At 11, 2% decrease over Q1 2022.
The impact of higher interest rates on our debt.
Adjusted revenue increased $67 2 million or five 2% our acquisitions contributed $64 million.
Foreign exchange had an unfavorable impact of $19 9 million or one 5%.
Adjusted organic revenue increase on a constant currency basis was one 9%.
We had strength in several product lines, including alternatives.
Transfer agency services business.
And institutional investment management business.
Adjusted operating income for the quarter was $493 million, a decrease of $5 7 million or one 1% from the first quarter of 'twenty two.
Adjusted operating margins were 36, 2%.
In the first quarter compared to 38, 5% in the first quarter of 2002.
Excluding acquisitions expenses increased 5% on a constant currency basis.
Acquisitions added $52 million in expenses and foreign currency decreased cost by $19 6 million.
Our cost structure has been impacted by general inflation.
Inflation and an increase in business travel compared to 2022.
Adjusted EBITDA.
Was $509 million at 37, 3% of adjusted revenue a decrease of $5 9 million from Q2 'twenty two.
Net interest expense for the quarter was $111 9 million.
An increase of $62 6 million or 127% from Q1 2022.
Q1, 2023 net interest expense includes $3 5 million of noncash amortized financing costs and OID.
The average interest rate in the quarter.
The amended credit facility, including our senior notes was 6.21%.
Compared to $3, one 1% in the first quarter of 2022.
We recorded a GAAP tax provision of $52 5 million or 29% of pre tax income.
Adjusted net income.
It was $284 $4 million and adjusted EPS of $1 11 in the effective tax rate used for adjusted net income was 26%.
Diluted shares increased to $257 million from $256 4 million in Q4.
The higher average stock price, partially was partially offset by share repurchases during the quarter.
On cash flow and balance sheet, we ended the first quarter with $433 3 million of cash and cash equivalents.
And $7 1 billion of gross debt.
<unk> net debt, which excludes cash and cash equivalents of $132 million that are held at the money Rx.
Was $6 8 billion as of March 31.
Operating cash flow for the three months was $254 8 million.
One three.
The increase from the same period of 2000 2022.
Some highlights on cash flow for the three months, we bought back treasury stock or.
$134 7 million purchased two 3 million shares at an average price of $59.19.
In July 22, the board authorized the new stock repurchase program of up to $1 billion.
Stock buybacks program today Treasury stock buybacks are $439 9 million.
Purchases of seven 8 million shares at an average price of $56 30 courses.
Net debt payments in the quarter were $44 6 million.
And we paid.
Total of interest interest of $138 million in the quarter compared to $74 2 million in 2022.
On income taxes in the quarter, we paid $20 9 million compared to $42 million in the first quarter 'twenty two.
Our accounts receivable DSO was 53 five days.
As of March 31, compared to 52 three days as of March as of December 2022, and.
<unk> $52 seven days as of March 2022.
Capital expenditures and capitalized software was $63 1 million or three 9% of adjusted revenue.
For the quarter spending was predominantly for capitalized software to investment in research and development.
It infrastructure.
Yeah.
Based on our net debt of approximately $6 8 billion. Our total leverage was 3.38 times and our secured leverage was 239 times as of March 31.
On outlook for the year first I'll cover a few assumptions we will continue.
To focus on client service.
And we expect retention rates to continue in the range of most recent results.
We have assumed foreign currency exchange will be at current levels for the remainder of the year.
As a result organic growth for the year will be in the range of 2% to 6%.
Adjusted organic growth for Q2 will be in the range of 5% to three 5%.
We have assumed interest rates will increase an additional.
And the range of 35 to 50 bps.
For the remainder of the year compared to the average rate in the first quarter.
We will continue to manage our expenses during the period, but controlling variable expenses and increase productivity.
Improve our operating margins.
We will continue to allocate free cash flow to both debt pay down and stock buybacks.
And we continue to expect the adjusted.
Our tax rate to be about 26%.
So for the second quarter of 2023, we expect revenue in the range of 1 billion $334 5 million.
$1 $374 5 million adjusted net income in the range of $276 5 million to.
$293 million.
And diluted shares in the range of 256 5 million to $257 5 million.
And for the full year, we expect revenue in the range of $5 billion $455 million.
5 billion of $655 million adjusted.
Adjusted net income.
Range of 1 billion in $190 billion to $1 billion $2 85.
And diluted shares in the range of 255 million to $258 5 million.
And on cash from operating activities, we expect that to be in the range of $1.275 billion.
The $1 375 player.
And I'll turn it back over to Bill for final comments.
Thanks, Patrick we expect.
With an accelerated exploration in Q3, Q4, and we expect the growth to be.
Broad based across a lot of our different businesses.
And we will be able to convert a bunch of backlog revenue. We have price increases that have already gone into effect until the revenue will begin to pick up and.
And we also have a very full pipeline.
We have invested heavily in our product and service suite.
<unk> remained excited about it.
Yes.
It's been a.
<unk> way to get to here.
I think we're in really good shape going forward.
And I'll now open it up for questions.
At this time I would like to remind everyone. If you would like to ask a question. Please press star one on your telephone keypad.
We ask that you please limit yourself to one question and one follow up.
Your first question comes from the line of Kevin Mcveigh with Credit Suisse. Your line is open.
Great. Thanks, so much and congratulations on the results.
I look at the organic growth it seems like it implies about 2% on average for the first half of the year and then the midpoint is 4% for the full year.
So.
Maybe just is it the same buckets pricing new business backlog and new products that drive that or is it maybe just to ring.
Ring fence that a little bit what the incremental drivers or should we think about the back half of the year.
Kevin I think Thats, primarily what it is.
We have a number of large scale deals that we have sold over the last.
Two or three years.
No.
It seem like they're never going to come to fruition, but they are coming.
To fruition and Theyre going live in and with that.
That release at a lot of revenue in tomorrow.
And to our financial statements.
And as I said, we still have full pipelines.
With.
Good switches are primarily our transfer agency business growing three 6%.
In the first quarter.
It's quite a turnaround and so I think were.
We're making progress across all of those things in and I think that thats.
Plus the price increases.
We're also starting to take effect.
I think we're in.
In reasonably good shape for the second half of 'twenty three.
That's terrific and then just one quick follow up it seems like the UAE was actually up sequentially. The first time about four quarters and that's despite a <unk>.
Some disruption intra quarter across the markets and any thoughts around that what's driving that.
Rahul you want to take that.
Sure.
We had.
Pretty good pretty good inflows into both our hedge fund and our private equity.
Businesses during the course of the quarter. So it's a combination of new fund launches.
Some organic and performance related growth in these clients as well as new client wins.
As you know.
It's kind of the first time, we've seen that uptick in a few quarters and but we're pretty happy about it but we do expect to see.
Based on the comments Bill just made about the strength of our pipeline.
We're certainly seeing some momentum in the market.
They also.
I'd say also that we.
We believe we remain.
No.
<unk> competitor by somewhat.
And I think that.
So a lot of volatility in that market.
And a lot of the larger scale.
Investment manager prefer to have our steady hand.
Think that's played out pretty well for us.
Terrific. Thank you.
Your next question comes from the line of Dan Perlin with RBC capital markets. Your line is open.
Thanks, Good evening.
Bill I wanted to just.
Take your temperature in terms of discussions that you've had with with your clients. This is obviously true for Rahul as well kind of pre SBB and post SBB you made it sound like theres not been any kind of fallout from that and thats good to hear.
I'm, just wondering kind of the posturing of what they are saying.
I understand you have a backlog and its going to get converted into these large clients, which I think is encouraging for organic growth I'm, just wondering where they sit today and kind of their readiness to release capital in order to drive new contracts with you guys.
Yes.
You noted right.
Lot of what we're expecting in the second half we have already signed and are in the midst of bringing them live so it's.
Okay.
It's really a continuation of the <unk>.
Last.
12, 18 24 months.
But there's a lot of skittishness in the financial markets, particularly the banking markets.
And while we don't have a huge.
Client basin mid level banks, we do have some.
Yeah.
So we're monitoring that as close.
As closely as we can.
You do kind of see that whether it's silicon valley or first Republic.
Our signature events that you really kind of on that.
On the.
Mid spot between.
Traditional banking.
No.
Financing.
Venture capital and other.
And other investments.
Im not sure that contagion is quite.
I don't think its anything like <unk> nine.
And I think Thats why it hasnt had much impact on us.
To date.
Of course, we will.
As closely as we can.
Yes.
Just a quick follow up on that.
I guess the commentary around digital workers you had in your release it seems like you're reiterating the 2500 to 2700 <unk> you just remind us where that sits in terms of.
Cost savings I think we had allocated something like $65 million at the low end of that range for annualized cost savings, but I just wanted to take your temperature on where we sit on that as well. Thank you.
Got it.
Now on the head and that $65 million now we're estimating about 1000.
<unk> savings as we deployed digital workers per worker.
And.
That's pretty much what we see in <unk>.
And in some.
Some cases.
The improvement in productivity as drastic.
We're very optimistic.
If we keep our nose, the grindstone and built great digital workers, we will have a great outcome thats what people are focused on.
Excellent. Thank you Bill.
Your next question comes from the line of Andrew Smith with Citi. Your line is open.
Hey, Bill role Patrick Thank you for taking my questions.
I wanted to ask about the kids business, maybe just talk about just the nature of the investments and what Youre doing there that'd be helpful and then.
The three 6% growth.
Positive flip that much better than we were anticipating.
Could you just sort of disaggregate that and maybe talk about the drivers there whether it's existing client growth.
<unk> you.
New client launches things like that just curious to understand the drivers a little bit more there. Thanks a lot.
Well.
We named it as a global Investor and distribution systems, and it's the largest investment managers.
In the world use use that service then.
No.
We always felt as if you could.
Deliver a better.
Yes.
Better interface that better client.
Interaction with the system.
And really had good processes and procedures.
That there was opportunity all over the place because we didn't think.
Our competitors will do the same thing.
While it might have taken us a little longer than we had hoped.
We do think that we have built.
Some.
Purpose built software that that is easier to use.
And it's getting.
Much more client satisfaction.
And then we've had any number of large scale wins in large scale renewables.
Okay, that's really helpful.
The revenue side.
I don't know if you have anything else to add to that.
Just on the on the investments the investments have been kind of in really all aspects of that business. So we have invested heavily in technology to the point Bill just made.
Digital interface web interface mobile apps, just workflow and systems we.
<unk>.
<unk> brought in a lot of sales talent, a lot of management talent and.
I think that the.
The key to all of this is that the the large clients that we have won over the last six to nine months.
I'll kind of walk through that implementation process on their come alive, and that's helping on numbers.
Got it thank you for that and then.
Question on doing just that I think Patrick you mentioned, just wage inflation and just wanted to drill down on that a little bit.
Is that more of a flow through effect from actions you took last year or you're seeing something more recently.
<unk>.
Exacerbating the wage issue just wanted to be clear in terms of what youre seeing about the cost of labor environment. Thanks, a lot.
Yes. It is.
Mostly actions we took.
Post the April 2022.
That are impacting us in Q1, when you compare to prior years.
But we're seeing we're seeing in the current year inflation inflation slowed down a little bit.
Perfect. Thanks, so much guys I appreciate the help.
Your next question comes from the line of Alex Kramm with UBS. Your line is open.
Yeah, Hey, thanks, everyone just a.
Maybe this is a follow up for the question is just let's just asked but.
Margins in the quarter, certainly Miss I think street expectations and our own. So maybe we'll just my modeling it right, but I know you just talked about wage inflation, but was there something else that that you hadn't expected in the quarter that are that that surprised you or again is it just you know.
The street not thinking about it correctly since you said the wage inflation should trade off in April and again, and then related to that as we think about the remainder of the year I guess, what gives you confidence that you can can get that margin expansion that you that you had talked about on prior calls is it just the oh that blue prism.
The thing that's really going to help the margins here or is there something else that youre working on to make sure the margins are.
Meeting our targets.
Well.
I think what.
Tom.
Yeah.
Expense.
Process.
Primarily as Patrick said.
The wage was from from actions we took.
At the end of it.
Throughout 2022 really.
I don't know that we were surprised.
As much as is it all kind of came into that.
The first quarter.
We're pretty confident on our ability to drive margins and.
I think.
373 on <unk>.
Adjusted EBITDA Bard pieces down maybe 100 200 basis points, but I don't think thats.
I think we're very confident.
And our margin.
Driving capabilities and what we want to make sure we do it.
As we invest in that and.
And the people and the processes and the capabilities.
Go get the 65 to.
$130 million in savings through Blue Prism, and then also.
We invest back in our products and services.
As Rahul said.
We're really bringing out new things whether it's.
Alright line or go central are.
S SMC everywhere all of those kinds of things.
We think differentiate us.
And as the reason that we.
When most of the platform business.
Okay that is out to bid.
Alright fair enough and then and then maybe a little bit bigger picture.
It's been in the last quarter last six months, whatever you want to use much more talk about AI chat JBT et cetera.
Just wondering how you view those.
Those capabilities in your own business I think some people are arguing that K U.
You can you can you may be able to do a lot with that and and you know maybe maybe blue prism isn't that same kind of sphere, but at the same time I think there's others, who say that hey, this could actually be super disruptive to your business. So I know it's a.
Big picture question for a call like this but just wondering how much time, you're spending on that and what you're evaluating.
Well.
Alex I don't think that.
Ed.
I don't think Thats Fintech in general has a very big moat.
Almost anybody that's on this call can start a fintech company.
You need to be able to have an idea of you need to be able to have some development talent to be able to deliver a product.
Now.
Doing that and turning it into a $5 $5 billion company.
100 offices in 40 countries.
And a suite of products and services that are.
Pretty much world class that.
That's a pretty big moat.
So that when companies such as UBS or.
Are any of the other great big investment banks or any of the great Big.
Excellent platform for private equity platforms are private platforms are real estate organizations.
This is pretty sophisticated pretty regulated.
Pretty menu's ship pretty detail.
And I think that we've.
Worked very hard to have the best people, we have the best training.
We have the best the best solutions for our for our customers.
And I think that.
We moved quickly to buy Blue prism.
We believe that this.
In closing automation and it's.
Corollaries.
And machine learning and.
Natural language processing and the rest of it.
Is what's going to happen and either you get in front of it.
Are you are so far behind that.
Pretty much.
You are on the block.
Fair enough thanks, guys.
Yes.
Your next question comes from the line of Peter Heckmann with D. A Davidson your line is open.
Thank you I have a quick.
Quick one on <unk> could you give us an update on the platform development, there and whether or not you continue to think that you.
Have a good shot at moving your one large processing customer to the new platform in 2023.
Well I think our target.
It is 124.
And I think that we're in.
In reasonable shape I know that we have.
I've had some demanding board meetings I know Rahul has been too.
We do pretty.
Pretty much constant updates on that platform and I would say we are.
Cautiously optimistic.
Oh, you want to.
Comment further.
Well I think I think you got it.
Kind of on target with our development plans to partner, so far and we're keeping a close eye on.
Okay. That's helpful. And then this is a follow up I mean, how are you thinking about on the private equity real estate private asset side, how are you thinking about mark to markets there maybe.
Maybe just remind us how much of that part of the business.
It relies on fixed nine months versus basis points.
Okay.
Primarily basis points peak.
There are some things that we do that or.
That are piecemeal weather events.
K ones.
Tax return tax savings and financial statements.
But it's primarily a.
Basis point charge.
Okay, and so just in terms of how that's worked historically I guess would you expect it to be.
Month to 12 month lag in terms of when asset values change and where and when they start to start to update those values are or do they do it.
Quarterly.
Yes, I'd say quarterly.
Okay. So we should be seen in the numbers.
Yes, I think so.
Alright, thank you.
Your next question comes from the line of Terry Tillman with Truest. Your line is open.
Hey, guys. This is Joe Meares on for Terry Thanks for taking the questions.
The first one that I had was just.
I wanted to confirm that I heard correctly that organic growth in the quarter for revenue was one 9% and then just.
Curious with financial services organic growth was first quarter I think it was one 3% last quarter. So just curious if there was any inflection there.
And Youre right that the total organic growth was one nine.
And when you're referring to financial service that some of your peers.
Sure.
Ex healthcare.
And that was two 5% in the quarter.
Okay, Perfect and then just as a follow up there.
I think last quarter, you had mentioned that.
Your expectation for the health care market was before it can be down 10% in 2022 I'm just curious if there's any change in expectations there.
That's approximately what we expect.
Yes 2023.
2023.
Perfect. Thanks, so much guys appreciate it.
Your next question comes from the line of James Faucette with Morgan Stanley . Your line is open.
Great. Thank you very much.
Wanted to touch quickly on M&A in your prepared remarks, you made reference to acquisition in Europe . Some corp. Today just.
Im wondering how youre thinking about valley.
Valuations, what youre seeing in valuations, particularly as it sounds like Youre trying to get some things done between now and the end of the year and just basically.
Obviously, you've built a lot of value over the years.
Acquisitions, just how youre thinking about that as an opportunity right now.
Yes, Jamie I would say it's.
It's pretty similar I mean, everyone talks about that.
Prices are maybe pausing.
And then it looks like at least.
The headline numbers on.
On.
Tim Corpus.
About 30 times EBITDA.
Alright.
It's not not causing very quickly I would say.
So.
I think that there are assets that are going to be sold.
I think the owners of those assets are going to have to.
In general take.
Fixed some haircuts.
I don't know that they are ready to do that yet.
I think <unk> kind of been on the market for a while.
And I think maybe the.
Borst.
Has some other assets that they want to put together and so.
I think that maybe was serendipitous for them.
And I don't know exactly.
Where are we with Fas where are we with a few of the other assets assets that are out there but.
Some stuff out at shake loose.
And I think the more that people care about their customers to better opportunity we have.
Got it got it and then.
Going back to looking at the second half ramp it sounds like.
Between.
Some of the new contracts and and pricing and some of the other things that you actually have pretty good line of sight into that acceleration and it doesn't sound like you're really dependent too much on on macro.
Just want to make sure that.
Im understanding that correctly, and where there could be sensitivity if macro work to deteriorated a little between now and then.
Yes.
That's pretty a pretty packed.
Accurate characterization of where we are.
Yes.
Think.
I think the macro will ask too.
Deteriorate to the point where.
As such.
As someone said earlier.
Has it made it made it to where people are not going to.
Allocate capital and new systems are our new processes, but.
Yes.
As large scale financial institutions get under under pressure often there.
Fair.
Way to control cost is to outsource.
And that's really a pretty big strength of ours.
And we have any number of.
Of large scale.
Conversations going on with very large scale organizations.
We'll have our opportunities.
Like always you got to execute.
Got it thanks, a lot for those comments bill.
Yes.
Your next question comes from the line of Alex Kramm with UBS. Your line is open.
Oh that was quick Hello, again, just wanted to squeeze in a couple of follow ups, one and maybe you mentioned this but I think you said pricing has been solid can you be a little bit more specific what kind of pricing you have been realizing in.
Maybe you could actually say in what businesses, you're maybe realizing more or less than maybe what the company averages.
I just think.
We're looking at.
Between 100 $150 million.
And price increases realized in 2023.
Probably the biggest ones are in alternatives.
<unk>.
And.
The goods business.
Okay fantastic. Thanks for that and then and just a very quick one here.
Just wanted to understanding perspective, you gave those numbers that you have done 40 process automation is now and you also talked about the <unk> to 'twenty 700 people can you just give us a little bit of a flavor like when you talk about these 40 processes like how many how many people, we actually able to I guess reallocate or or eliminate.
<unk> positions.
Positions and when when and going forward like again that 13 I was just 27 under like how many processes is that I just.
Just trying to get a flavor for how many things you're automating all Blake per use case tell me, how many people that it would affect.
Yes, I mean, it's a pretty broad rate right. So.
If we can if we can build that.
A digital worker to do.
Pretty sophisticated reconciliations.
We will have.
All kinds of opportunities too.
To deploy.
Hundreds properly.
Whereas.
In some of the other things.
Even things that are.
Pretty broad scale.
There is maybe not as many things done.
Alike.
Validating.
260, fives NK one factor.
Tax returns are.
Validating investment statements.
Because one digital worker can do so much work.
Don't really need to deploy that money.
So it's more of a one to many and many of the many and then.
It's not very often that you have to deploy many to one.
But it is something that that the capabilities of the individual digital worker.
Sophistication of the process.
Is what determines how many and how fast.
Okay Fair enough, maybe I'll follow up and just very quickly just to squeeze one win on Blue prism since we're on the topic. The 10, 9% growth that's been decelerating over the last few quarters. So I think originally when you bought the company. It was I think 15, plus maybe even into 'twenty. So is that a sales cycle thing.
Or or what's going on in the external sites with Blue prism.
Now we're optimistic that accelerates in the rest of the year too.
Good enough answer thank you.
There are no further questions at this time I will now turn the call back to Bill stone for closing remarks.
Well again, we really appreciate all of you coming to our call.
We look forward to talking to you after the second quarter.
Thank you.
Ladies and gentlemen, this concludes today's call. Thank you for your participation you may now disconnect.
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