Q1 2024 SS&C Technologies Holdings Inc Earnings Call
Operator: Ladies and gentlemen, this is the operator. Today's conference is scheduled to begin momentarily. Until that time, your lines will again be placed on music hold. Thank you for your patience. Thank you for standing by.
Ladies and gentlemen, this is the operator today's conference is scheduled to begin momentarily until that time your lines again will be placed on music hold thank you for your patience.
[music].
Christa: Thank you for standing by my name is Christa and I will be your conference operator today at this time I would like to welcome everyone to the S. S. N C. Technologies' first quarter 'twenty 'twenty four earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks.
Krista: My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the SS&C Technologies First Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.
Krista: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw your question, again, press star one. Thank you. I would now like to turn the conference over to Justine Stone, Head of Investor Relations. Justine, you may begin your presentation.
Krista: There will be a question and answer session if you'd like to ask a question during that time simply press star followed by the number one on your telephone keypad and if you'd like to withdraw your question again press Star one. Thank you I would now like to turn the conference over to Justine Stone head of Investor Relations. Jean you May begin your call.
Krista: Prince.
Justine Stone: Welcome and thank you for joining us for our first quarter 2024 earnings call. I'm Justine Stone, Investor Relations for SS&C Technologies. With me today is Bill Stone, Chairman and Chief Executive Officer, Rahul Kanwar, President and Chief Operating Officer, and Brian Schell, our Chief Financial Officer.
Welcome and thank you for joining us for our first quarter 2024 earnings call I'm Justine Stone Investor Relations for FMC technologies with me today is Bill Stone, Chairman and Chief Executive Officer, Rahul Kanwar, President and Chief operating Officer, and Brian Shell, Our Chief Financial Officer before we get started we need to.
Justine Stone: Before we get started, we need to review the Safe Harbor statement. Please note that various remarks we make today about future expectations, plans, and prospects, including the financial outlook we provide, constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities 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 our risk factors section of our most recent annual report on Form 10-K, which is on file at the SEC and can also be accessed on our website.
Have you the safe Harbor statement. Please note that various remarks, we make today about future expectations plans and prospects, including the financial outlook. We provide constitute forward looking statements for the purposes of the Safe Harbor provisions under the private Securities 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 our risk factors section of our most recent annual report on Form 10-K, which is on file with the SEC and call can be accessed on our website.
Justine Stone: These forward-looking statements represent our expectations only as of today, April 25, 2024. While the company may elect to update these forward-looking statements, it specifically disclaims any obligation to do so. During today's call, we will be referring to certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to comparable GAAP financial measures is included in today's earnings release, which is located in the investor relations section of our website at www.ssctech.com. I will now turn the call over to Bill.
Justine Stone: These forward looking statements represent our expectations only as of today April 25th 2024, while the company may elect to update these forward looking statements. It specifically disclaims any obligation to do so during today's call, we will be referring to certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to comparable GAAP financial.
The measures is included in today's earnings release, which is located in the Investor Relations section of our website at Www Dot speed test Dot Com I will now turn the call over to Bill.
Bill Stone: Thanks Justine and thanks everyone. Our first quarter results are a record adjusted revenue of $1,435,000,000.8, dollars up 5.3%. Our adjusted or diluted earnings per share were $1.28, a 12.3% increase. Justice Consolidated EBITDA was $556.8 million for the quarter, a record high for Q1, and our EBITDA margin came in at $38.8. Our first quarter adjusted organic revenue growth was 4.7%. The first quarter revenue acceleration was driven by strength in our alternatives, retirement, interlinks, and Ops Advisor businesses.
Bill Stone: Thanks, Christine and thanks, everyone for.
Bill Stone: Our first quarter results are record adjusted revenue of a $1 billion and $435 million.
Bill Stone: Eight.
Bill Stone: Up five 3% and our adjusted diluted earnings per share were $1 28.
Bill Stone: 12, 3% increase.
Bill Stone: <unk> consolidated EBITDA was $556 8 million for the quarter a record high for Q1, and our EBITDA margin came in at 38 eight.
Bill Stone: Our first quarter adjusted organic revenue growth was four 7% the first quarter revenue acceleration was driven by strength in our alternatives retirement interlinked.
Bill Stone: Alps adviser businesses.
Bill Stone: Our recurring revenue growth rate for financial services was 6.5%, which includes all software-enabled services and maintenance revenue. For the three months ended March 31st, 2024, cash from operating expenses from operating revenue was $180.5 million; we paid down $79.9 million in debt in Q1, 2024, bringing our net leverage ratio to 2.95 times and our net secured leverage ratio to 2.02 times. We bought back 800,000 shares for $52.9 million, an average price of $63.24.
Bill Stone: Recurring revenue growth rate for financial services was $6 five <unk>.
Bill Stone: <unk>, which includes all software enabled services and maintenance revenue.
Bill Stone: For the three months ended March 31, 2020 forecast from operating expenses from operating.
Bill Stone: Revenue was $180 5 million to.
Bill Stone: We paid down $79 9 million in debt in Q1, 2024, bringing our net leverage ratio to 295 times and our net secured leverage ratio to two two times.
Bill Stone: Bought back 800000 shares for $52 9 million at an average price of $63 24.
Bill Stone: The Internal Deployment of Blue Prism Digital Workforce across SS&C continues to go well. The 150 basis point year-over-year increase in our EBITDA margin can be attributable in large part to this initiative. A recent Forrester study found that an average SS&C Blue Prism client saw a return on investment figure of 330% over three years. The key benefits include business growth, improved productivity, compliance cost avoidance, and improved employee experience and retention. As one of the largest users of Blue Prism technology, we are experiencing these results firsthand.
Bill Stone: The internal deployment of Blue Prism digital worker digital workforce.
Bill Stone: <unk> continues to go well.
Bill Stone: <unk> hundred 50 basis point year over year increase in our EBITDA margin can be attributable in large part to this initiative.
Bill Stone: A recent Forrester study found in average assets and fee Blue Prism client. So a return on investment figure of 330% over three years.
Bill Stone: The key benefits include better business growth improved productivity.
Bill Stone: Compliance cost avoidance and improved employee experience and retention.
Bill Stone: That's one of the largest users of Blue Prism technology.
Bill Stone: We're expanding.
Bill Stone: Sharing thing.
Bill Stone: <unk> firsthand.
Bill Stone: Earlier this month, we held our first Deliver Europe conference, which was held at the Fairmont in Windsor, the UK, with over 250 clients. The enthusiasm and energy over the two-day event was evident, and we've received universal positive feedback. I'll now turn the call over to Rahul to discuss the quarter in more detail.
Bill Stone: Earlier this month, we held our first deliveries.
Rahul: Which was held at the Fairmont.
Bill Stone: Yes.
Bill Stone: Windsor and the UK hosting over 250 clients enthused.
Rahul: The enthusiasm and energy over the two day event was evident and we have Richard we've received universally positive feedback.
Rahul: I'll now turn the call over to a hold to discuss the quarter in more detail.
Rahul: Thanks, Bill our business had a strong quarter with notable strength in interlinked retirement and wealth and investment technologies, we saw improvement in software purchasing and long term renewal decisions in Q1, which positively impacts our software businesses.
Rahul Kanwar: Our business had a strong quarter with notable strength in interlinks, retirement, and wealth and investment technology. We saw improvement in software purchasing and long-term renewal decisions in Q1, which positively impacts our software business. This past quarter, we combined our Institutional Investment Management, or INIM, business with Wealth and Investment Technologies, led by Karen Geiger and Steve Liebig.
Hold: This past quarter, we combined our institutional investment management or Ini am business with wealth and investment technologies led by Karen Geiger and Steve, leaving this change allows us to align several of our software products and services geared toward banks insurance companies and wealth and asset managers.
Rahul Kanwar: This change allows us to align several of our software products and services geared toward banks, insurance companies, and wealth and asset managers. Our objectives are to enable accelerated innovation, take advantage of scale to deliver enterprise solutions, and benefit from a consistent sales and marketing process. We have also combined our retirement business with global investor and distribution solutions in order to deliver a seamless customer experience to our shared clients and, once again, take advantage of greater scale and resources.
Rahul Kanwar: Our objectives are to enable accelerated innovation take advantage of scale to deliver enterprise solutions and benefit from our consistent sales and marketing process.
Rahul Kanwar: We also combined our retirement business with global Investor in distribution solutions in order to deliver a seamless customer experience through our shared clients and once again take advantage of greater scale and resources initial.
Rahul Kanwar: Initial feedback from our customers on these changes has been very positive. We continue to progress on optimizing our cost base and strengthening our offering through the use of Blue Prism and other AI and automation technologies. In our fund services business, notable capabilities include intelligent automation that processes over 2 million loan notices each year, enabling customer interaction and support requests through our internally developed large language models and a variety of other advanced protocols. I will now turn it over to Brian to run through the financials.
Rahul Kanwar: Initial feedback from our customers on these changes has been very positive.
Brian: We continue to progress on optimizing our cost base and strengthening our offering through use of blue prism and other AI and automation technologies and our fund services business. Notable capabilities include intelligent automation that processes over $2 million low notices each year, enabling customer interaction and support for <unk>.
Rahul Kanwar: First through our internally developed large language models and a variety of other advanced protocols I will now turn it over to Brian to run through the financials.
Brian Norman Schell: Thanks, Rahul, and good day everyone. As noted in our press release, our Q1-24 GAAP results reflect revenues of $1.35 billion, net income of $158 million, and diluted earnings per share of $0.62. And as Bill noted earlier in the call, our adjusted revenues were a quarterly record $1.436 billion, up 5.3%, and adjusted diluted EPS was $1.28, up 12.3%, versus Q1-23. Adjusted diluted EPS includes $0.03 in dividend income received on investments previously excluded from adjusted earnings.
Brian Norman Schell: Thanks, Rahul and good day, everyone as noted in our press release, our Q1 'twenty four GAAP results reflect revenues of one to three 5 billion.
Brian Norman Schell: Net income of $158 million and diluted earnings per share of <unk> 62.
Brian Norman Schell: And as Bill noted earlier in the call. Our adjusted revenues were a quarterly record $143 $6 billion.
Brian Norman Schell: Up five 3% and adjusted diluted EPS was $1 28 up 12, 3% versus Q1 'twenty three.
Brian Norman Schell: Adjusted diluted EPS includes <unk> <unk> and dividend income received on investments previously excluded from adjusted earnings going forward reported adjusted diluted EPS and guidance will include dividend income.
Brian Norman Schell: Going forward, reported adjusted diluted EPS and guidance will include dividend income. The Adjusted Revenue, Quarterly increase of $72 million was primarily driven by incremental revenue contributions from alternatives and interlinks. Acquisitions contributed $3 million, and foreign exchange had a favorable impact of $6 million. As a result, adjusted organic revenue growth on a constant currency basis was 4.7%. Our core expenses increased 1.9%, or $16 million, excluding acquisitions and on a constant currency basis.
Brian Norman Schell: Adjusted revenue quarter.
Brian Norman Schell: Quarterly increase of $72 million was.
Brian Norman Schell: Rarely driven by incremental revenue contributions from alternatives and interlinked.
Brian Norman Schell: Acquisitions contributed $3 million.
Brian Norman Schell: Foreign exchange had a favorable impact of $6 million.
Brian Norman Schell: As a result, adjusted organic revenue growth on a constant currency basis was four 7%.
Brian Norman Schell: Our core expenses increased one, 9% or $16 million, excluding acquisitions and on a constant currency basis.
Brian Norman Schell: Adjusted Consolidated EBITDA attributable to SS&C, defined in Note 3 in the earnings release, was $557 million, or 38.8% of adjusted revenue, an increase of $48 million, or 9.4% from Q1-23. The 38.8% EBITDA margin reflects a year-over-year improvement of 150 basis points. The 150 basis point margin expansion reflects the positive impact of both revenue growth and disciplined expense management.
Brian Norman Schell: Adjusted consolidate EBITDA attributable to <unk> SMC defined in note three in the earnings release was $557 million or 38, 8% of adjusted revenue an increase of $48 million or nine 4% from Q1 'twenty three.
Brian Norman Schell: The 38, 8% EBITDA margin reflects a year over year improvement of 150 basis points.
Brian Norman Schell: The 150 basis point margin expansion reflects the positive impact of both revenue growth and disciplined expense management.
Brian Norman Schell: Net interest expense for the first quarter of 'twenty four was $116 million, an increase of $4 million from Q1 'twenty three the average interest rate in the quarter for the amended credit facility, including the senior notes was 686% compared to $6 two 1% in the first quarter of 2003 <unk>.
Brian Norman Schell: Net interest expense for the first quarter of 24 was $116 million, an increase of $4 million from Q1-23. The average interest rate in the quarter for the amended credit facility, including the senior notes, was 6.86%, compared to 6.21% in the first quarter of 23. Adjusted net income, as defined in Note 4 in the earnings release, was $324 million, and the adjusted diluted EPS was $1.28. The effective tax rate used for adjusted income was 26%.
Brian Norman Schell: Net income as defined in note four in the earnings release was $324 million and the adjusted diluted EPS was $1 28.
Brian Norman Schell: The effective tax rate used for adjusted net income was 26%. Despite the quarterly share repurchase activity a higher average stock price drove the diluted share count up to $253 3 million from $252 1 million for Q4 23.
Brian Norman Schell: Despite the quarterly share repurchase activity, a higher average stock price drove the diluted share count up to $253.3 million from $252.1 million for Q4'23. SS&C ended the first quarter with $413 million in cash and cash equivalents and $6.7 billion in gross debt. SS&C's net debt, as defined in our credit agreement, which excludes cash and cash equivalents of $95 million held at Domani, RX, was $6.4 billion as of March 31st.
Brian Norman Schell: S. SMC ended the first quarter with 100 with $413 million in cash and cash equivalents and $6 7 billion in gross debt.
Brian Norman Schell: <unk> net debt as defined in our credit agreement, which excludes cash and cash equivalents of 95 million held at <unk> was $6 4 billion as of March 31.
Brian Norman Schell: Our last 12-month consolidated EBITDA used for covenant compliance was $2.156 billion as of March 2024. Based on net debt of approximately $6.4 billion, our total leverage ratio was 2.95 times, down from 3.05 times at year end. Our secured leverage ratio was 2.02 times as of March 31st.
Brian Norman Schell: Our last 12 months consolidated EBITDA used for Covenant Covenant compliance was $2 $105 6 billion as of March 2024 based.
Brian Norman Schell: Based on net debt of approximately $6 4 billion.
Brian Norman Schell: Our total leverage ratio was 295 times down from 3.05 times at year end, our secured leverage ratio was 2.02 times as of March 31.
Brian Norman Schell: $3.5 billion of our Term Loan B matures in April 2025, and we are currently evaluating our debt financing options, looking to go to market in the near future. As we look forward to the second quarter and the remainder of the year with respect to guidance, note that we will remain focused on client service and assume that retention rates will be in the range of our most recent results. We will continue to manage our expenses with a cost-disciplined approach by controlling and aligning variable expenses to ensure efficiency, increasing productivity to improve our operating margins, to leverage our scale, and effectively investing in the business through marketing, sales, and R&D to take advantage of the future growth opportunities ahead of us.
Brian Norman Schell: $3 $5 billion of our term loan B matures in April 2025, and we are currently evaluating our debt financing options looking to go to market in the near future.
Brian Norman Schell: As we look forward to the second quarter and the remainder of the year with respect to guidance note that we will remain focused on client service and assume that retention rates will be in the range of our most recent results. We will continue to manage our expenses with our cost disciplined approach by controlling and aligning variable expenses to ensure efficiency increasing productivity to improve our operating.
Brian Norman Schell: <unk> to leverage our scale and effectively investing in the business through marketing sales and R&D to take advantage of the future growth opportunities ahead of us.
Brian Norman Schell: Specifically, we have assumed foreign currency exchange will be at current levels, and interest rates will remain at current levels with the potential for a couple of short-term rate declines in late 2024. Our refinancing will not materially impact our interest rate expense, but is obviously subject to varying market conditions.
Brian Norman Schell: Specifically, we have assumed foreign currency exchange will be at current levels.
Brian Norman Schell: Interest rates to remain at current levels with the potential of a couple of short term rate declines in late 2024, our refinancing will not materially impact our interest rate expense, but is obviously subject to varying market conditions.
Brian Norman Schell: Gap tax rate of approximately 26% on an adjusted basis, which is unchanged from prior guidance. Capital expenditures to remain at 4.3 to 4.7% of revenues, which is unchanged from prior guidance, and a similar historical weighting to share repurchases and net reduction. For the second quarter of 24, we expect revenue to be in the range of $1.412 to $1.452 billion, and adjusted net income in the range of $295 to $311 million. Interest expense, excluding amortization of deferred financing costs and original issue discounts, in the range of $112 to $114 million.
Brian Norman Schell: GAAP tax rate of approximately 26% on an adjusted basis, which is unchanged from prior guidance.
Brian Norman Schell: Capital expenditures to remain at the $4 three to four 7% of revenues, which is unchanged from prior guidance.
Brian Norman Schell: And a similar historical waiting share repurchases and debt reduction.
Brian Norman Schell: For the second quarter of 'twenty four we expect revenue to be in the range of one for one two to 145 $2 billion.
Brian Norman Schell: Adjusted net income in the range of $295 million to $311 million.
Brian Norman Schell: Interest expense, excluding amortization of deferred financing costs and original issue discount and the range of $112 million to $114 million.
Bill Stone: The looted shares in the range of $253 to $254 million, and Adjusted Delivered EPS in the range of $1.16 to $1.22. For the full year 2024, we are raising revenue guidance by $7 million, and we expect revenue to be in the range of $5.695 to $5.855 billion, and adjusted net income in the range of $1.242 to $1.322 billion. Diluted shares in the range of $252 to $255 million; adjusted diluted EPS in the range of $4.93 to $5.17; and cash from operating activities to be in the range of $1.302 to $1.382 billion.
Brian Norman Schell: Diluted shares in the range of $253 million to $254 million.
Bill Stone: And adjusted diluted EPS in the range of $1 16 to $1 22.
Bill Stone: For the full year 2024, we are raising revenue guidance by $7 million and we expect revenue to be in the range of $5 $6 95 to five 855 billion.
Bill Stone: Adjusted net income in the range of one to four two to 1.322 billion.
Bill Stone: Diluted shares in the range of $252 million to $255 million adjusted.
Bill Stone: Diluted EPS in the range of $4 93 to $5 17.
Bill Stone: <unk> cash from operating activities to be in the range of $1 three zero to $213 2 billion.
Bill Stone: Our updated 2024 guidance reflects our strong results in the first quarter and a continued positive outlook for the remainder of the year. It also reflects our cost-discipline approach and expected margin expansion over the course of the year. Now, I'd like to turn it back over to Bill for final comments.
Bill Stone: Our updated 2024 guidance reflects our strong results in the first quarter with our continued positive outlook for the remainder of the year that also reflects our cost discipline approach and expected margin expansion over the course of the year now I'd like to turn it back over to Bill for final comments.
Bill Stone: Thanks, Brian. I'd like to take this opportunity to thank our long-term director, Mike Daniels, for his dedication and support. Mike has been on our board for over 10 years and will not stand for re-election. He has been an important advisor during this time, seeing SS&C grow from $700 million in revenue to over $5.5 billion. We wish him well in his future endeavors. We've had a strong start to 2024, and we're working hard to maintain this momentum. I'd like to, I'd like now, to open it up to questions.
Bill Stone: Thanks, Brian I'd like to take this opportunity to thank.
Bill Stone: Our long term director, Mike Daniels for his dedication and support Mike has been on our board for over 10 years and will not stand for reelection.
Bill Stone: He has been an important advisor during this time seeing assistance fee growth from $700 million in revenue to over $5 5 billion.
Bill Stone: We wish him well in his future endeavors.
Bill Stone: We've had a strong start to 2024 and we are working hard to maintain this momentum.
Speaker Change: Allow me to.
Bill Stone: Like now to open it up to questions.
Operator: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Please ask one question in one follow-up, and for any additional questions, please re-queue. Your first question comes from the line of Dan Perlin from RBC Capital Markets. Please go ahead.
Speaker Change: Thank you we will now begin the question and answer session. If you would like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue.
Operator: I would like to withdraw your question simply press Star. One again, if you are called upon to ask your question and our listening via loud speaker on your device. Please pickup your handset and ensure that your phone is not on mute when asking your question.
Operator: Please ask one question and one follow up and for any additional questions. Please re queue your.
Operator: Your first question comes from the line of Dan Perlin from RBC capital markets. Please go ahead.
Daniel Rock Perlin: Thanks. Good evening, guys.
Daniel Rock Perlin: Thanks, Good evening.
Daniel Rock Perlin: Guys. Just a quick question on the organic growth trends it looked like they continue to improve here and I'm just wondering if you can.
Daniel Rock Perlin: Just a quick question on the organic growth trends. They look like they will continue to improve here. And I'm just wondering if you can maybe help parse this out given the current environment we're in and maybe some of these incremental kind of go-to-market strategy changes or maybe fine-tuning points. So how much of the kind of improvement and maybe expected improvement going forward is in kind of just overall demand picking up, Bill, versus kind of sales execution or product realignment and maybe some of this go-to-market motion that's Thanks.
Daniel Rock Perlin: Maybe help parse this out given the current environment, we're in and maybe some of these incremental go to market strategy changes or maybe fine tuning points. So how much how much of the kind of improvement and maybe expected improvement going forward is in kind of just overall demand picking up bill versus kind of sales execution or product realignment and maybe some of these go to market motion that.
Daniel Rock Perlin: Changing for some of these other business segments. Thanks.
Bill Stone: Well, I think, Dan, and I hear from you, we've had an awful lot of development work done in our businesses, and we've created a number of new solutions for different clients, and that's getting tracks, particularly our trust product, OmniTrust, that we married to our black diamond. So now, wealth advisors can also handle trust. Trust, which is important as, as their client, you know, start to move money to their to their children and, and others.
Speaker Change: Well I think Dan.
Daniel Rock Perlin: Dan.
Speaker Change: Nice to hear from you we have had.
Bill Stone: An awful lot of development work done in our in our businesses and we've created a number of.
Bill Stone: Solutions for our different clients and Thats getting traction.
Bill Stone: Particularly R R.
Bill Stone: Product Omni trust that we have.
Bill Stone: Married to our Black Diamond now wealth advisors can also handle trust.
Bill Stone: Trust, which is important as well.
Bill Stone: As their clients.
Bill Stone: To move money to their era.
Bill Stone: To their children and others and I think Thats fair.
Bill Stone: And I think that's been a big opportunity for us. And we've also done a number of other things where our delivery to our clients has been improved in our. Our execution on the implementations has also improved, and so I think a combination of those things, some more discipline on the pricing, and we're still winning. You know, we're still winning big deals, and as they go live, I think our financial picture will look, you know, brighter as we go through the year.
Bill Stone: Big opportunity for Us and we've also done a number of other things square, where our delivery to our clients has been improved and our our execution on the implementations is also improved and so I think the combination of those things so more disciplined on the pricing and.
Bill Stone: And we're still women.
Bill Stone: When a big deal.
Bill Stone: If they go live I think are.
Bill Stone: Our financial picture will look.
Bill Stone: Brighter as we go through the year.
Daniel Rock Perlin: Yep, that's great. Just a quick follow-up. The three cents in the quarter that's related to this dividend income, just, I guess, a couple of things. One is, was that originally contemplated in kind of the original guidance you gave for 2024? And the three cents, obviously, going forward, these are going to be adjusted. So what's in, if it wasn't, what's included now? And maybe you can just walk me through what the mechanics of that are.
Bill Stone: Yes.
Speaker Change: That's great just a quick follow up.
Daniel Rock Perlin: The <unk> in the quarter Thats related to the dividend income.
Daniel Rock Perlin: I guess a couple of things one was that originally contemplated in and kind of the original guidance you gave for 2024 and the <unk>, obviously going forward that you're going to be adjusted.
Daniel Rock Perlin: So what's in it wasn't what's included now and maybe you can just walk me through what the mechanics of that or I might have just missed it alright. Thank you. Yes. There was this is Brian thanks.
Daniel Rock Perlin: I might have just missed it. Sorry. Thank you.
Brian Norman Schell: Thank you. Yeah. No. There was a... This is Brian.
Daniel Rock Perlin: The <unk> was not part of the original guidance as.
Brian Norman Schell: Thanks. The three cents was not part of the original guidance. As we look through the appropriate components of adjusted earnings, we felt like these investments were appropriate to be included. The last year, if you look at it for presentation purposes, you'll see we actually included it in last year's EPS numbers as well, so you can see it on an apples-to-apples basis. So on a go-forward basis, it's there. We think it's appropriate and try to bring any visibility or clarity we can to the numbers.
Brian: As we look through.
Brian Norman Schell: The appropriate components of adjusted earnings we felt like these investments where appropriate to be included.
Brian Norman Schell: <unk>.
Brian Norman Schell: Last year, if you look at it for presentation purposes, Youll see we actually included in last year's EPS numbers as well. So you can see it on a.
Brian Norman Schell: On apples to apples basis.
Brian Norman Schell: So on a go forward basis. It's there we think it's appropriate and tried to bring any visibility or clarity we can to the numbers.
Daniel Rock Perlin: So, should we be using three cents a quarter as kind of the run rate? I did see the year-over-year comparison was adjusted, but I just want to make sure I'm not getting ahead of myself or over-adjusting or under-adjusting. Thanks.
Brian Norman Schell: So should we be using <unk> <unk> a quarter is kind of the run rate.
Daniel Rock Perlin: The year over year comparison was adjusted but I want to make sure I'm not getting over my skis or over adjusting around the testing.
Brian Norman Schell: The big, I'd say, contribution to the year is actually just the first quarter. I would say for the remainder of the year, it probably rounds to another penny overall for the next three quarters. So it's not a huge adjustment, but we just thought it was relevant given how we reflected the rest of our investments and various interest income items to be included in our overall adjusted results.
Daniel Rock Perlin: The big the Big I would say contribution to the year is actually just the first quarter I would say for the remainder of year and probably rounds to probably another penny overall for the next three quarters. So it's not a huge adjustment, but we just thought it was relevant given.
Brian Norman Schell: How we reflected the rest of our investments in various interest income items to be included in our overall adjusted results.
Daniel Rock Perlin: And just to be clear, it's one penny for the remaining three quarters, not a penny per quarter? Correct. Okay, that's great. Thank you so much. No problem.
Speaker Change: Got it and just to be clear, it's one penny for the remaining three quarters not a penny per quarter.
Daniel Rock Perlin: Correct.
Speaker Change: That's great. Thank you so much.
Daniel Rock Perlin: Yeah.
Andrew Schmidt: Your next question comes from the line of Andrew Schmidt from Citi. Please go ahead.
Daniel Rock Perlin: Your next question comes from the line of Andrew Schmidt from Citi. Please go ahead.
Andrew Schmidt: Hey, Bill, Rahul, and Brian, thanks for taking my questions here. Um, so quick question on the revenue outlook. It looks like the upper end came down. I'm just curious, you know, what drove that and how that might tie into the organic growth expectations for the remainder of the year.
Andrew Schmidt: Hey, Bill role, Brian Thanks for taking my questions here.
Andrew Schmidt: So quick question on the revenue outlook.
Andrew Schmidt: Looks like the upper end came down just curious.
Andrew Schmidt: What drove that and how that may tie into the organic growth expectations for the remainder of the year.
Rahul Kanwar: Andrew, I think the only thing that happened is that we're actually, you know, at least as optimistic about the remainder of the year as we were at the start. I think the only thing that happened was that as we got closer, the ranges got tighter, and we got a little more precise. Right, so that's really all that's happening. I think the midpoint is actually higher than it was the last time we gave
Bill Stone: Yes, Andrew I think the only thing that happened, we're actually at least as optimistic about the remainder of the year as we were at the start I think the only thing that happens is as we get closer the ranges gets tighter we get a little more precise right. So that's really all that's happening I think the midpoint is actually.
Rahul Kanwar: Higher than it was the last time, we gave guidance.
Rahul Kanwar: Got it. Perfect. Thank you for that role.
Rahul Kanwar: Got it perfect. Thank you for that role and then.
Andrew Schmidt: And then maybe we could talk about just the visibility of organic growth. Obviously, you know, we narrow where we get a lot of questions. If you could, you know, characterize kind of how you build that up and whether what you have sort of in the queue, if you will, for organic growth is sort of high versus moderate versus low, how you would rank the opportunities there. Thanks a lot, guys.
Speaker Change: Maybe we could talk about just the visibility on the organic growth obviously.
Andrew Schmidt: Narrow, where we get a lot of questions if you could.
Andrew Schmidt: <unk> characterize kind of how you build that up.
Andrew Schmidt: Whether what you have sort of in the queue. If you will for organic growth is sort of.
Andrew Schmidt: Hi versus moderate versus low how you would rank the opportunities there. Thanks, a lot guys.
Bill Stone: Yeah, I would say right now, as of April 25, that we're probably stronger than cautiously optimistic. You know, we tend to be accountants; cautiously optimistic is, you know, kind of for most people. You know, wildly optimistic for us. So I think, you know, the natural conservatism sometimes gets the best of us, but we have a lot of business that we sold in the first quarter that we have not recognized yet. But it's already sold, so we've already got some of the cash. It's coming in, and we think we have lots of opportunities.
Speaker Change: Yes, I would say right now.
Bill Stone: As of April 25.
Bill Stone: Probably stronger than cautiously optimistic.
Bill Stone: We're we tend to be accounts cautiously optimistic is.
Bill Stone: For most people.
Bill Stone: Wildly optimistic for us so I think the.
Bill Stone: The Nash Nash natural conservatism.
Bill Stone: Sometimes gets the best of us, but we have a lot of business that we sold in the first quarter that we have not recognized yet, but it's already sold we've already got some of the cash that's coming in and we think we have lots of opportunities.
Andrew Schmidt: Perfect. Very constructive. Thank you very much, Bill.
Speaker Change: Perfect very constructive thank you very much bill.
Alexei Gogolev: Your next question comes from Alexei Gogolev from J.P. Morgan. Please go ahead.
Andrew Schmidt: Your next question comes from Alexia <unk> from Jpmorgan. Please go ahead.
Alexei Gogolev: Hello, everyone. Bill, could you elaborate on the combination of divisions that was discussed? What does that mean in terms of cross-sell opportunity, and R&D investments into products to make sure that they speak better to each other? And perhaps, is there any room for margin upside from the combination of those divisions?
Alexei Gogolev: Hello, everyone.
Alexei Gogolev: Bill could you elaborate on the combination of divisions.
Bill Stone: It was discussed.
Alexei Gogolev: What does that mean in terms of cross sell opportunity.
Alexei Gogolev: R&D investments into product to make sure that they.
Alexei Gogolev: Speak better to each other and perhaps is there any room for margin upside from from the combination of those dividends.
Bill Stone: Yeah, I that's a great question. Well, we feel that, you know, we're 27,000 people, we have 140 offices in 40 countries, we deliver over 100 products and 100 services. So, it is operating a large business, and the more we can concentrate on product, in, you know, the business units that are our most important to create new products, create new services, create ways in which to deliver those products and services, and then also be able to leverage, you know, all the corporate services that we have, whether it's marketing and sales.
Bill Stone: Yes, that's great question, when we we feel that were up.
Bill Stone: 27000 people, we have 140 offices in 40 countries.
Bill Stone: Deliver over 100 products in 100 services.
Bill Stone: It is it is.
Bill Stone: Operating a large business and the more we can concentrate like products.
Bill Stone: In.
Bill Stone: Doug.
Bill Stone: The business units that are.
Bill Stone: Most apt to.
Bill Stone: To create new products create new service create ways in which to deliver.
Bill Stone: Both products and services and then also be able to leverage.
Bill Stone: All of the corporate services that we have whether it's marketing and sales.
Bill Stone: You know, different implementation teams, you know, all that type of stuff we think is really much more effective when you take asset management and products for large-scale asset managers and put all those products under Karen Geiger and Steve Levent, for instance, and then also have go-to-market strategies for each one of those large segments. And I think the same thing is true when we took retirement and put it in with a global distribution business, the global investor and distribution business.
Bill Stone: Different implementation teams and all.
Bill Stone: All of that type of stuff, we think is really much more effective when you take.
Bill Stone: Asset management.
Bill Stone: Products for large scale asset managers.
Bill Stone: And put all of those products under <unk>.
Bill Stone: Under Karen <unk> Levin for instance.
Bill Stone: And then also have go to market strategies for each one of those large segments.
Bill Stone: And I think the same thing is true when we we took retirement and put it in with the global distribution.
Bill Stone: The global Investor and.
Bill Stone: And distribution business.
Bill Stone: You know, I think we get leveraged, as Rahul said in his remark. You know, we get some leverage, we get some scale, we get some, some, better chances to cross sell, and we're, again, pretty optimistic about the results.
Bill Stone: And we'd get leverage we gave as Rahul said in his remarks.
Bill Stone: We get some leverage we get some scale, we get some some <unk>.
Bill Stone: Better chances to cross sell.
Bill Stone: And we're.
Bill Stone: We're again pretty optimistic about the results of that.
Bill Stone: Thank you, Bill. And, Brian, could I also ask you a quick question about the components within the Alternatives Division? What was the growth of private markets in the quarter?
Speaker Change: Thank you Bill.
Speaker Change: Brian could I also ask you a quick question about.
Speaker Change: The components within alternatives Division.
Speaker Change: The growth of private markets.
Speaker Change: In the quarter.
Brian Norman Schell: On the private market side, 10%-ish was the number of private deals.
Speaker Change: The private market side.
Speaker Change: 10% ish.
Speaker Change: Was the private.
Speaker Change: Thank you.
Brian Norman Schell: Okay.
Peter James Heckmann: Your next question comes from the line of Peter Heckmann from D.A. Davidson. Please go ahead. Hey, good afternoon.
Brian Norman Schell: Your next question comes from the line of Peter Heckmann from D. A Davidson. Please go ahead.
Peter James Heckmann: Hey, good afternoon. Thanks for taking my question. I have several related questions on the healthcare segment. Could you give us an update on the progress of Domani Rx and any additional conversions that have occurred year to date? One question, I don't really, I don't think we've seen the numbers based on your explanation, but you know, Change Healthcare, which is one of the prescription processing hubs, had a malware attack, and I'm curious if that affected the healthcare business at all in the quarter. And then lastly, you know, would you expect that healthcare segment to be up or down revenue-wise for the year?
Peter James Heckmann: Hey, good afternoon. Thanks for taking my question I have several kind of related questions on the healthcare segment.
Peter James Heckmann: Could you give us an update.
Peter James Heckmann: On the progress of <unk> and any initial conversions that have occurred year to date.
Peter James Heckmann: One was curious I don't really think we see the numbers based on your explanation but change.
Peter James Heckmann: Change healthcare, which is one of the.
Peter James Heckmann: Prescription processing hubs.
Peter James Heckmann: Millwork attack and curious if that affected the health care business at all in the quarter.
Peter James Heckmann: And then lastly.
Peter James Heckmann: Do you expect that healthcare segment to be up or down revenue wise for the year.
Bill Stone: Pretty insightful, Pete. Good to talk to you.
Peter James Heckmann: Yes.
Bill Stone: Pretty insightful could talk to you.
Bill Stone: Change healthcare was.
Bill Stone: Yeah, Chase Healthcare has been a supplier of revenue to us that you'll start seeing in the second quarter, you know, somewhat, in large chunks. So we're, we've already sold it, we're already delivering it, we have a number of pretty big-scale clients, including some of the large-scale drug manufacturers. So, you know, we're optimistic about where we can go with this. The Monte RX has held up great throughout the four months it's been out.
Bill Stone: Ben.
Bill Stone: Mike supplier of revenue to offset will started you'll start seeing them in the second quarter.
Bill Stone: Yes.
Bill Stone: Somewhat.
Bill Stone: In large chunks.
Bill Stone: So we're we've already sold that were already delivering and we have a number of pretty big scale clients, including some of the large scope drug manufacturers. So we're optimistic about where we can go with this.
Bill Stone: <unk> has held up great throughout the four months it's been.
Bill Stone: In production, we get almost no defects, we get great client feedback, and we have lots of new business that's going to go on Domani RX over the next eight or nine months, and we're optimistic about our pipeline.
Bill Stone: In production, we get almost.
Bill Stone: No defects.
Bill Stone: Great client feedback and we have lots of new business, that's going to go on.
Bill Stone: <unk> Rx over the next term.
Bill Stone: David in nine months.
Bill Stone: And we are optimistic about our pipeline.
Peter James Heckmann: Great, great. And so just in terms of like revenue growth for the year, do you think we can get back to positive revenue growth this year? Or will we be thinking maybe more about 2025?
Speaker Change: Great Great and so just in terms of like the revenue growth for the year do you think we can get back to positive revenue growth. This year are we thinking maybe more 2025.
Bill Stone: I think we'll be positive this year and whether we do 295 or 300, you know, probably somewhere in that vicinity. And, you know, the one great thing about healthcare is that there's lots of revenue to be had. So you just need to go execute. And if you do that, you're in pretty good shape.
Peter James Heckmann: I think will be positive.
Bill Stone: This year and whether we do.
Bill Stone: 295% or 300.
Bill Stone: Probably somewhere in that in that vicinity.
Bill Stone: The one great thing about healthcare is is that there's.
Bill Stone: There's lots of revenue to be had so you just need to go execute if you do that you're in now.
Bill Stone: Good shape.
Peter James Heckmann: Sure enough. All right. Thank you.
Speaker Change: Fair enough alright, thank you.
Jeffrey Paul Schmitt: Your next question comes from the line of Jeff Schmidt from William Blair. Please go ahead.
Peter James Heckmann: Your next question comes from the line of Jeff Schmidt from William Blair. Please go ahead.
Jeffrey Paul Schmitt: Hi, good afternoon. Are you still getting price increases kind of above normal in any of your businesses? And how much did pricing impact organic growth in this quarter than the last?
Jeffrey Paul Schmitt: Hi, good afternoon.
Jeffrey Paul Schmitt: Are you still getting price increases kind of above normal in any of your businesses and how much did pricing impact organic growth in this quarter than the last.
Rahul Kanwar: Yeah, I think, you know, as we're getting more discipline, as Bill pointed out, and more methodical about this process, we've also been able to put the price increases in on an automatic basis. So it's not, you know, as much of an effort, and everybody, everybody expects them. So in 2023, we think we got about 150 million in price; our expectation for 2024 is, you know, probably a similar number. There's a little bit of art as much as science with the renewals and, you know, what constitutes price versus upsell and those kinds of things. But, but that's about what we would expect.
Jeffrey Paul Schmitt: Yes.
Jeffrey Paul Schmitt: I think.
Rahul Kanwar: As long as we're getting more disciplined as bill pointed out and more methodical about this process. We've also been able to do is put the price increases in and the contracts on an automatic basis. So it's not as much of an effort in everybody.
Rahul Kanwar: Everybody expects them. So in 2023, we think we got about $150 million and price our expectation for 2024 is probably a similar number.
Rahul Kanwar: Theres, a little bit of art as much as science with the renewals and.
Rahul Kanwar: What constitutes price versus upsell and those kinds of things, but that's about what we would expect for the year.
Jeffrey Paul Schmitt: Okay, and then just back on alternatives organic growth, I think it was five or 6% in the quarter. You mentioned the private market slowed, I think it'd been growing over 20%, it dropped down to 10%. What sort of drove that slowdown? I mean, I think you were getting five or 6% price increases there last year, but what sort of drove that slowdown?
Speaker Change: Okay, and then just back on alternatives organic growth I think it was five or 6% in the quarter.
Jeffrey Paul Schmitt: You had mentioned the private market slowed I think had been growing over 20% it dropped down to 10%.
Jeffrey Paul Schmitt: What drove that slowdown I mean, I think you are getting I thought you were getting five or 6% price increases there.
Jeffrey Paul Schmitt: Last year, but what what sort of drove that slowdown.
Bill Stone: Yeah, I would, you know, make sure that we all understand the jargon we're using. You know, when you talk to private markets, there are a number of different flavors of private private credit, and in the first quarter, growth probably grew significantly more than 10. But when you put it with private equity and, and maybe our real estate business, then it all averages out maybe to 10. But private credit has been quite strong. Yeah, and maybe.
Speaker Change: Yes, I would make sure that we all understand that Jordan we're using.
Bill Stone: You talked to private markets.
Bill Stone: Number of different.
Bill Stone: Flavors of private private credit.
Bill Stone: In the first quarter grow probably grew significantly more than 10, but when you put it with private equity and.
Bill Stone: And our maybe our real estate.
Bill Stone: Business.
Bill Stone: And it all averages out maybe to Tim.
Bill Stone: For private credit has been quite strong.
Brian Norman Schell: Yeah, and maybe another way to look at it is if you look at the AUA change, you'll see we're at, you know, $2.4 trillion, so there's really nothing in the underlying growth of any one of those areas where it's not growing at least as well as it was before. And as a matter of fact, we think our hedge fund business is growing better than it did.
Bill Stone: And maybe another way to look at it is if you look at the <unk> change.
Brian Norman Schell: You'll see we're at two four trillion, so theres really nothing in the underlying growth of any one of those.
Brian Norman Schell: Areas, where its not growing at least as well as it was before and as a matter of fact, we think our hedge fund business is growing better than it did last year.
Jeffrey Paul Schmitt: Okay, that's very helpful. Thank you.
Brian Norman Schell: Yeah.
Jeffrey Paul Schmitt: Okay. That's very helpful. Thank you.
James Eugene Faucette: Your next question comes from the line of James Faucette for Morgan Stanley. Please go ahead.
Jeffrey Paul Schmitt: Your next question comes from the line of James Faucette from Morgan Stanley. Please go ahead.
James Eugene Faucette: Thank you very much. I just wanted to quickly check in on capital allocation and the M&A pipeline. Bill, there's clearly capacity here for some leverage, and you called out a senior hire to assist with M&A last quarter. What does the deal pipeline look like right now? And what kind of assets should we think about you targeting?
James Eugene Faucette: Thank you very much just wanted to.
James Eugene Faucette: Quickly check on from a capital allocation perspective, an M&A pipeline.
James Eugene Faucette: Bill there is clearly capacity here for some leverage and you called out a senior hire to assist with M&A last quarter. What does the deal pipeline look like right now and what kind of assets should we think about you're targeting.
Bill Stone: Well, I don't think we're looking any, you know, anywhere differently than where we are today. And so I thank you guys at Morgan Stanley and a number of others, UBS, you know, advised Asset Mark, and GTCR. Asset Mark would have been a target for us as well. And I would say those types, you know, those types of companies. I think that things that are in front of administration would still buy and buy pretty quickly. And I think there are opportunities again. We've probably done five or six lift outs, and I think we should continue to do those.
Bill Stone: Well I don't think were were looking at.
Bill Stone: Anywhere differently than where we are today.
Bill Stone: And so I think.
Bill Stone: At Morgan Stanley.
Bill Stone: A number of others UBS.
Bill Stone: No advised asset Mark and <unk> asset Mark would've been a target for us as well.
Bill Stone: And I would say those types.
Bill Stone: Those types of companies.
Bill Stone: It could be targets I think that that things that are in fund administration, we still buy them by pretty quickly.
Bill Stone: And I think theres opportunities again, we've probably done five or six lift outs.
Bill Stone: And I think we would continue to do those.
James Eugene Faucette: God, I appreciate that commentary. And then I wanted to ask a kind of technology-related question, especially tied to the transfer agency business. Some of the asset managers we talked to, or looked at their transcripts and other public commentary, are speaking to the impacts of tokenization and their ability to drive down transfer agency costs. Do you think that's more anecdotal in nature? Or how should we be thinking about the medium to long-term growth algorithm of your transfer agency business more broadly?
Speaker Change: Got it I appreciate that commentary and then I wanted to task kind of a technology related question, especially tied to the transfer agency business.
James Eugene Faucette: Some of the asset managers.
James Eugene Faucette: We talked to you or to look at their.
James Eugene Faucette: Transcripts and other public commentary are speaking to the impacts of token of station and their ability to drive down to that transfer agency costs.
James Eugene Faucette: Do you think that's more anecdotal in nature or how should we be thinking about medium to long term growth algo of your transfer agency business more broadly.
Rahul Kanwar: So we're seeing a little bit of that. But most of what we're seeing is clients piloting certain things that they want to do in a tokenized format. And we have a couple of clients that we're collaborating with. But right now, it doesn't, you know; it does not have a significant impact on our business. And honestly, you know, it's probably too early to even view it as, you know, any kind of a significant trend.
James Eugene Faucette: So we're seeing a little bit of that most of what we're seeing is.
Rahul Kanwar: Clients piloting certain things that they want to do in a <unk> format and we have a couple of clients that we're collaborating with but right now it's not.
Rahul Kanwar: Not have a significant impact on our business and honestly, it's probably too early to.
Rahul Kanwar: Even view it as any kind of a.
Rahul Kanwar: Inefficient trend.
Bill Stone: And the other thing I think, James, is that, you know, what we have done is taken our transfer agency and our capabilities and alternative administration. So now retail is all. You know, we combine those two things, and we're not selling you one; we're not selling you one or the other. We're selling them as a bundle. So if you just want our transfer agency and want to, give your administration to somebody else. We're not taking that business.
Rahul Kanwar: And the other thing I think James is that.
Bill Stone: What we have done is take our transfer agency and and our capabilities in alternatives administration. So now retail all.
Bill Stone: We combine those two things and we're not selling you.
Bill Stone: We're not selling you one way or the other we're selling them as a bundle. So a few just one our transfer agency and want to give.
Bill Stone: Give your around administration and somebody else.
Bill Stone: We're not taking that business, so that that discipline in that.
Bill Stone: So that discipline and that ability to have a product that is superior and then make sure that we're the beneficiary of that superior technology when we sell it. So that's been a pretty good, pretty good market. This is a great theme for us as well.
Bill Stone: That ability to have a product that is superior.
Bill Stone: And then making sure that that we are the beneficiaries.
Bill Stone: That superior technology.
Bill Stone: When we sell it.
Bill Stone: Pretty good.
Bill Stone: Pretty good market.
Bill Stone: Theme for us as well.
Bill Stone: Yes.
James Eugene Faucette: I appreciate all the comments.
James: Got it I appreciate all the comments.
James Eugene Faucette: Okay.
Kevin Damien McVeigh: If you would like to ask a question, please press star 1 on your telephone keypad. Your next question comes from the line of Kevin McVeigh from UBS. Please go ahead.
Speaker Change: If you would like to ask a question. Please press star one on your telephone keypad.
Kevin Damien McVeigh: Our next question comes from the line of Kevin Mcveigh from UBS. Please go ahead.
Kevin Damien McVeigh: Great, thanks so much and congratulations on the results. Hey, anything to call out? I mean, the interlinked growth was really, really terrific. I think it was 23%. You know, actually a big, big, big increase. Anything to call out that drove that?
Kevin Damien McVeigh: Great. Thanks, so much and congratulations on the results.
Kevin Damien McVeigh: Anything to call out I mean, the interlink growth was really really terrific things 23.
Kevin Damien McVeigh: Steve.
Kevin Damien McVeigh: Big increase anything to call out that drove that.
Bill Stone: I really think that they continue to innovate on their road. Their primary, the primary, virtual data room business. I mean, they integrated AI into that they do, you know, really smart searches, you know, they brought out a redacted redacting agent to be able to help. You know, you get so much, so much data and so much paper in those data rooms. It's important to have ways to be able to. coalate and search for it quickly.
Kevin Damien McVeigh: Okay.
Kevin Damien McVeigh: I really think that they continue to innovate on their own.
Bill Stone: Primarily the primary.
Bill Stone: Virtual data room business and I'm going to add.
Bill Stone: AI into that they do.
Bill Stone: Really smart searches.
Bill Stone: We brought out.
Bill Stone: <unk>.
Bill Stone: Redacting agent to be able to help.
Bill Stone: You get so much data and so much paper in and those data rooms.
Bill Stone: It's important to have ways to be able to.
Bill Stone: Collated and search it quickly so that's been pretty effective and and it's been very resilient. So I think we're optimistic for.
Bill Stone: So that's been pretty effective. And, and it's been very resilient. So I think, you know, we're optimistic about, for all of 2024. And we don't see
Bill Stone: For all of 2024.
Bill Stone: And we don't see things slowing down even after that.
Kevin Damien McVeigh: That's super helpful, Bill. And then just the AUA, you know, my master, it looks like it increased 3% sequentially versus flat sequentially last year and almost double the percentage increase sequentially over the last couple of quarters. Anything to call out there? Because it hasn't been a great market and seems like there's been some really nice incremental growth there.
Speaker Change: It's Super helpful. Bill and then just the EUA.
Kevin Damien McVeigh: Is my math right it looks like it increased 3% sequentially.
Kevin Damien McVeigh: <unk> was flat sequentially last year and almost double.
Kevin Damien McVeigh: <unk> increased sequentially over the last couple of quarters anything to call out there because it.
Kevin Damien McVeigh: It hasn't been a great market and it seems like there is a real nice incremental growth there.
Kevin Damien McVeigh: Okay.
Bill Stone: There has been there has been pretty broad based growth across all of our alternatives right. So in the in the hedge funds. We did see some market benefit, but we also saw the benefit of winning a number of new deals.
Rahul Kanwar: There's been pretty broad-based growth across all of our alternatives, right? So in the hedge funds, we did see some market benefit, but we also saw the benefit of winning a number of new deals. Private markets, as Bill just said, continue to be really strong for us, and we've added a number of clients there. So the AUA doesn't always correlate exactly with revenue because the yields are different depending on the kinds of funds and assets we win, but overall, the trend is pretty positive.
Rahul Kanwar: Private markets as Bill just said continues to be really strong for us and we've added a number of clients. There. So the EUA doesn't correlate always exactly with revenue because the yields are different depending on the guidance of funds and assets we win but overall the trend is pretty positive.
Speaker Change: Great. Thank you.
Rahul Kanwar: Yes.
Operator: That concludes our question and answer session. I'll now turn the call back over to Bill for his closing remarks.
Speaker Change: That concludes our question and answer session.
Operator: On the call back over to Bill closing remarks.
Bill Stone: Again, we appreciate all of you being on the call today. We feel good about the first quarter and recognize that it's 25% of the year. So we still have work to do, and we're hard at it, but we appreciate the support.
Bill Stone: So again, we appreciate all of you being on the call today.
Bill Stone: We.
Bill Stone: We feel good about the first quarter and recognized.
Bill Stone: 25% a year.
Bill Stone: So we still got work to do in <unk>.
Bill Stone: We're hard at it but we appreciate the support.
Bill Stone: In 90 days.
Operator: This concludes today's conference call. Thank you for your participation, and you may now disconnect.
Speaker Change: This concludes today's conference call. Thank you for your participation and you may now disconnect.
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