Q2 2024 SS&C Technologies Holdings Inc Earnings Call

July 25, 2024

Speaker Change: [music].

Operator: Ladies and gentlemen, thank you for standing by, and welcome to the SS&C Technologies Q2 2024 earnings call. All lines have been placed on mute to prevent any background noise.

Ladies and gentlemen, thank you for standing by and welcome to the S. S. N. C technologies Q2, 2024 earnings call. 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'd like to ask a question during that time press star.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1. I will now hand today's call over to Justine Stone, Head of Investor Relations. Please go ahead.

Speaker Change: Hello by the number one on your telephone keypad.

Speaker Change: If you would like to withdraw your question Press Star One I will now hand todays call over to Justine Stone head of Investor Relations. Please go ahead.

Speaker Change: Okay.

Justine Stone: Welcome, everybody, and thank you for joining us for our Q2 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.

Justine Stone: Welcome everybody and thank you for joining us for our Q2 2024 earnings call understands 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 <unk>, Our Chief Financial Officer.

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 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 factor 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.

Speaker Change: 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 95 actual results may differ materially from those.

Speaker Change: 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 July 25th 2024, while the company may elect to update.

Justine Stone: These forward-looking statements represent our expectations only as of today, July 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.ssdtech.com. I will now turn the call over to Bill. Thanks, Jessica.

Speaker Change: These forward looking statements it specifically disclaims any obligation to do so.

Speaker Change: 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 Dot a few tuck dot com I will now turn the call over to Bill Thanks, Christine and welcome everyone.

William C. Stone: Thanks, Justine, and welcome, everyone. Our second quarter results are record-adjusted revenue of $1.452.4 billion, up 6.5% and $20 million ahead of our forecast. Our adjusted diluted earnings per share were $1.27, up 17.6%, adjusted consolidated EBITDA was $558,900,000 for the quarter, and our EBITDA margin was up 170 basis points to 38.5%. Our second quarter adjusted organic revenue growth was 6.4%. The revenue acceleration was driven by strength in our alternatives, GID, Wealth and Investment Technology, and Interlinked Businesses.

Bill: Our second quarter results a record adjusted revenue.

Bill: Of one.

Speaker Change: 45 to two 4 billion.

Bill: Julien.

Julien: Up six 5% and 20 million ahead of our forecast.

Julien: Our adjusted diluting diluted earnings per share.

Julien: $1 27 up 17, 6% adjusted consolidated EBITDA was 558.900 million for the quarter and our EBITDA margin was up 170 basis points to 38.

Julien: 5%.

Julien: Our second quarter adjusted organic revenue growth was six 4% revenue acceleration was driven by strength in our alternatives good.

Julien: Wealth and investment technology and interlinked businesses.

William C. Stone: Surprise Upstate came large in our goods business, the outperformance driven by seasonality and some accelerated license revenue. Our recurring revenue growth for financial services was 7.7%, which includes all software-enabled services and maintenance. Second quarter cash from operating [inaudible] We're at 385 million, up 16.8% from Q2. Our cash flow conversion percentage for the quarter was over $120,000. We paid down $25.2 million in debt in Q2-24, bringing our net leverage ratio to 2.84 times, and consolidated even. In Q2'24, we bought back 3.7 million shares for $227 million at an average price of $62.7, $62.17 per share.

Speaker Change: Surprised side came largely in our gift business.

Speaker Change: Performance is driven by seasonality.

Speaker Change: Some accelerated license revenue.

Speaker Change: Our recurring revenue growth was financial services was seven 7%, which includes our software enabled services and maintenance revenue.

Speaker Change: Second quarter cash from operating.

Speaker Change: From operations.

Speaker Change: $385 million up 16, 8% from Q2 'twenty three.

Speaker Change: Our cash flow conversion percentage for the quarter was over 120%.

Speaker Change: Paid down $25 2 million in debt in Q2, 24, bringing our net leverage ratio to 284 times.

Speaker Change: Consolidated EBITDA in Q2, 'twenty four we bought back $3 7 million shares for $227 million at an average price of $62 $762 17.

William C. Stone: This is the highest share buyback in one quarter in the SS&C system. Last week, the Board of Directors renewed a one-year, $1 billion Common Stock Repurchase Program. We continue to believe stock repurchases are a good use of our capital. On the M&A front, valuations are still elevated, but we are seeing an increase in relevant targets coming to market. We will continue to look, but our returns need to be as attractive or greater than buying back our own stock. I'll now turn it over to Rahul to discuss the quarter in more detail.

Speaker Change: For sure. This is the highest share back share buyback in one quarter in <unk> history.

Speaker Change: Last week, the board of directors renewed a one year $1 billion common stock repurchase program.

Speaker Change: We continue to believe stock repurchases are a good use of our capital.

Speaker Change: On the M&A front valuations are still elevated but we are seeing an increase in relevant targets.

Speaker Change: Coming to market.

Speaker Change: We will continue to look for.

Speaker Change: But our returns need to be as attractive or greater than buying back our own stock.

Speaker Change: I'll now turn it over to Rahul discusses the quarter in more detail.

Rahul Kanwar: Thanks Bill. Our business had a good quarter with the strongest organic revenue growth since 2021. Our alternative fund administration business had strong growth across the board in private markets, hedge funds, and retail alternatives, where we provide both fund administration and transfer agency services and support registered alternative and interval funds. SS&C is uniquely positioned to serve this growing area with the combination of our transfer agency and fund administration services. We've seen early success in the wealth and investment technology business unit, collaborating on client relationship management and sales opportunities.

Rahul: Thanks, Bill our business had a good quarter with the strongest organic revenue growth since 2021.

Rahul: Our alternative fund administration business had strong growth across the board in private markets hedge funds and retail alternatives, where we provide both fund administration and transfer agency services.

Rahul: And support registered alternative and interval funds.

Speaker Change: <unk> is uniquely positioned to serve this growing area with the combination of our transfer Agency Fund administration services.

Speaker Change: We have seen early success in the wealth and investment technology business unit collaborating on client relationship management and sales opportunities.

Rahul Kanwar: Trust Suite momentum continues. The sales pipeline is robust, and we're being invited to participate in the largest RFPs in the market. DeMonte RX's second release was put in production on July 1st, and the platform can now process claims for all lines of business. We have processed over 100 million claims since going live in January and have migrated our first new client onto the platform. The money's key strengths include enhanced functionality running on the SS&C private cloud, with self-service capabilities, and customized reporting. I will now turn the call over to Brian to discuss the financials.

Speaker Change: Sweet momentum continues the sales pipeline is robust and we're being invited to participate in the largest rfps in the market.

Speaker Change: Good morning, <unk> second release was put in production on July one and.

Speaker Change: The platform can now process claims for all lines of business, we have processed over $100 million claims since going live in January and have migrated our first new clients onto the platform. The <unk> key strengths include enhanced functionality running on the <unk> private cloud will stop with self service capabilities and customized reporting.

Speaker Change: I will now turn the call over to Brian to discuss the financials.

Brian Norman Schell: Thanks Rahul, and good day everyone. Our Q2-24 GAAP results reflect revenues of $1.452 billion, net income of $190 million, and diluted earnings per share of 75 cents. Our adjusted revenues were also $1.452 billion, an increase of 6.5% over Q2-23. The increase of $89 million over the prior year was primarily driven by incremental revenue contribution from the alternatives, kids, and interlinked businesses. Acquisitions contributed $4 million, and foreign exchange had an unfavorable impact of $2 million. As a result, adjusted organic revenue growth on a constant currency basis was 6.4%.

Brian: Thanks, Karl and good day, everyone. Our Q2 24 GAAP results reflect revenues of $1 $4 five 2 billion.

Brian: Net income of $190 million and diluted earnings per share of <unk> 75.

Brian Norman Schell: Our core expenses increased 3.3%, or $29.2 million, excluding acquisitions and on a constant currency basis. Adjusted consolidated EBITDA attributable to SS&C was $559 million, or 38.5% of adjusted revenue, an increase of $57 million, or 11.2% from Q2'23. The 38.5% EBITDA margin reflects a year-over-year improvement of 170 basis points, driven by the positive impact of both revenue growth and disciplined expense management. Net interest expense this quarter was $113 million, a decrease of $5 million from Q2-23. Adjusted net income was $320 million, up 15.7%, and adjusted diluted EPS was $1.27, an increase of 17.6%. The effective tax rate used for adjusted net income was 26%.

Brian: Our adjusted revenues were also $1 $45 2 billion, an increase of six 5% over Q2 'twenty three.

Brian: The increase of $89 million over prior year was primarily driven by incremental revenue contribution from the alternatives.

Kids and interlinked businesses.

Brian: Acquisitions contributed $4 million and foreign exchange had an unfavorable impact of $2 million.

Brian: As a result, adjusted organic revenue growth on a constant currency basis was six 4%.

Brian: Our core expenses increased three 3% or $29 $2 million, excluding acquisitions and on a constant currency basis.

Brian: Adjusted consolidated EBITDA attributable to <unk>.

Brian: With $559 million or 38, 5% of adjusted revenue an increase of $57 million or 11, 2% from Q2 'twenty three.

Brian: The 35% EBITDA margin reflects a year over year improvement of 170 basis points driven by the positive impact of both revenue growth and disciplined expense management.

Brian: Net interest expense this quarter was $113 million a decrease of $5 million from Q2 'twenty three.

Brian: Adjusted net income was $320 million up 15, 7% and adjusted diluted EPS was $1 27, an increase of 17, 6%.

Brian: The effective tax rate used for adjusted net income was 26%.

Brian Norman Schell: Increased share repurchases drove the diluted share count down to $252.3 million from $253.3 million in Q1'24. SS&C ended the second quarter with $462.7 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 the $88.5 million held at Damani RX, was $6.3 billion. Our last 12-month consolidated EBITDA used for covenant complaints was $2.2 billion. Based on a net debt of approximately $6.3 billion, our total leverage ratio was 2.84 times, and our security leverage ratio was 1.6.

Brian: Increased share repurchases drove the diluted share count down to $252 3 million from $253 3 million in Q1 24.

Brian: <unk> ended the second quarter with $462 7 million in cash and cash equivalents and $6 7 billion in gross debt.

Brian: <unk> net debt as defined in our credit agreement.

Brian: Which excludes cash and cash equivalents of $88 5 million held at <unk> Rx was $6 3 billion.

Brian: Our last 12 months consolidated EBITDA used for covenant compliance was $2 2 billion.

Based on net debt of approximately $6 3 billion. Our total leverage ratio was 284 times and our secured leverage ratio was one six times.

Brian Norman Schell: In May, we refinanced our Term B loans, consisting of five tranches, with a new single $3.9 billion Term B loan tranche, as well as a $750 million senior note. The refinancing resulted in a $28 million non-cash loss on extinguishment of debt and the capitalization of $35 million of new deferred financing fees.

Brian: In May we refinanced our term b loans, consisting of five tranches.

Brian: With a new single $3 9 billion dollar term b loan charge as well as a $750 million senior note.

Brian: The refinancing resulted in a $28 million noncash loss on extinguishment of debt.

Brian: And the capitalization of 30 $35 million of new deferred financing fees.

Brian Norman Schell: The refinancing activity resulted in extending our debt maturity by approximately 3.7 years and diversifying our funding sources, but we are still positioned to benefit from any reduction in short-term rates. As we look forward to the third quarter and the remainder of the year, with respect to guidance, Note that we will maintain our focus on client service and assume that retention rates will continue to be in the range of our most recent results. We will manage our expenses with a cost-disciplined approach by controlling and aligning variable expenses to ensure efficiency, increasing productivity, improving our operating margins to leverage our scale, and effectively investing in the business through marketing, sales, and R&D to take advantage of future growth opportunities. Specifically, we have assumed foreign currency exchange rates will be at current levels, and short-term interest rates will remain at current levels, meaning a tax rate of approximately 26% on an adjusted basis.

Brian: The refinancing activity resulted in extending our debt maturity by approximately $3 seven years in diversifying our funding sources, but still positioned to benefit from any reduction in short term rates.

Brian: As we look forward to the third quarter and the remainder of the year with respect to guidance.

Brian: Note that we will maintain our focus on client service and assume that retention rates will continue to be in the range of our most recent results.

Brian: We will manage our expenses with our cost disciplined approach by controlling and aligning variable expenses to ensure efficiency increasing productivity improve our operating margins to leverage our scale.

Brian: And effectively investing in the business through marketing sales and R&D to take advantage of future growth opportunities.

Brian: Specifically, we have assumed foreign currency exchange rates will be at current levels short term interest rates to remain at current levels.

Brian: A tax rate of approximately 26% on an adjusted basis.

Brian: Capital expenditures to be four 1% to four 5% of revenues, which is a slight reduction from prior guidance.

Brian: We are waiting to share repurchase versus debt reduction subject to changes in market conditions.

William C. Stone: Capital expenditures to be 4.1 to 4.5% of revenues, which is a slight reduction from prior guidance and a stronger weighting to share repurchase versus debt reduction, subject to changes to market conditions. For the third quarter of 2024, we expect revenue to be in the range of $1.42 to $1.46 billion and 5.3% organic revenue growth at the midpoint, adjusted net income in the range of $304.6 to $320.6 million. Interest expense, excluding amortization of deferred financing costs and original issue discount, in the range of $107 to $109 million.

Brian: For the third quarter 2024, we expect revenue to be in the range of one <unk> to $1 46 billion and five 3% organic revenue growth at the midpoint.

Brian: Adjusted net income in the range of $304 $6 million to $326 million.

Brian: Interest expense, excluding amortization of deferred financing costs and original issue discount and the range of $107 million to $109 million.

Brian: Diluted shares in the range of 251, six to $252 6 million shares.

Brian: And adjusted diluted EPS in the range of $1 21 to $1 27.

William C. Stone: Diluted shares in the range of 251.6 to 252.6 million shares and adjusted diluted EPS in the range of $1.21 to $1.26. For the full year of 2024, we are raising revenue guidance by $12 million and expecting revenue to be in the range of $5.706 to $5.866 billion, and 4.9% organic revenue growth at the midpoint, adjusted net income in the range of $1.246 to $1.326 billion, diluted shares in the range of 250.9 to 253.9 million shares, adjusted diluted EPS in the range of $4.98 to $5.22, and cash from operating activities to be Our updated 2024 guidance reflects our strong results in the first half of the year, with a continued positive outlook for the remainder of the year. And now, back to Bill.

Brian: For the full year of 2024, we are raising revenue guidance by $12 million and expect revenue to be in the range of $5 706 to $5 86 6 billion.

Brian: And four 9% organic revenue growth at the midpoint.

Brian: Adjusted net income in the range of one to four 6% to 132 6 billion.

Brian: Diluted shares in the range of 259 to 253 9 million shares.

Brian: Adjusted diluted EPS in the range of $4 98 to $5 22, and cash from operating activities to be in the range of $1 305 to $1 38 5 billion.

Our updated 2024 guidance reflects our strong results in the first half of the year with a continued positive outlook for the remainder of the year and now back to Bill.

William C. Stone: Thanks, Brian. We obviously had a strong quarter on both the top and bottom lines. We continue to be bullish about our business and our updated guidance, as I said, 4.9% organic growth at the midpoint and $5.10 in Adjusted Diluted Earnings.

Bill: Thanks, Brian We obviously had a strong quarter on both the top and bottom line.

Bill: We continue to be bullish about our business and our update updated guidance has us at four 9% organic growth at the midpoint and $5 10, and adjusted diluted earnings per share.

William C. Stone: I'd also like to announce that on September 18th, 2024, we'll hold an analyst day at NASDAQ MarketSight in New York City. Formal invites will go out in the coming weeks, and please reach out to Justine if you have any questions. We'll also be hosting our SS&C Deliver client conference in New Orleans, Louisiana, on October 6th to 8th. This premier event is designed for executives and decision makers across SS&C's solutions set and features hands-on learning, industry insights, and many networking opportunities.

Bill: I'd also like to announce that on September 18th of 'twenty 'twenty four will hold an analyst day at NASDAQ market site in New York City.

Bill: Formerly invites will go out in the coming weeks and please reach out to Justine if you have any questions.

Bill: We will also be hosting our SEC deliver client conference in New Orleans, Louisiana.

Bill: On October six to eight.

This premier event is designed for executives and decision makers across the solution set and features hands on learning industry insights and many networking opportunities.

William C. Stone: Please sit down. This year's keynote speaker is my friend David Rubenstein, co-founder and co-chairman of the Carlyle Group, which SS&C was a portfolio company from 2005 until 2014. We look forward to hosting hundreds of our clients and prospects in October. I'd now like to turn it over to questions.

Bill: I'm pleased to announce this.

Speaker Change: This year's keynote speaker is my friend, David Rubenstein co founder and co chairman of the Carlyle Group, which SFC was a portfolio of company from 2005 until 2014.

Speaker Change: Look forward to hosting hundreds of our clients and prospects.

Speaker Change: Sure.

Speaker Change: Now I'd like to turn it over to questions.

Operator: At this time, if you would like to ask a question, press star 1 on your telephone keypad. Please limit yourself to one question and a follow-up. If you have further questions, you may come back into the queue. Please pause for your first question. Your first question is from the line of Dan Perlin with RBC Capital Markets.

Speaker Change: At this time, if you'd like to ask a question press star one on your telephone keypad.

Speaker Change: Limit yourself to one question and a follow up if you have further questions you may come back into the queue.

Speaker Change: Please pause for your first question.

Speaker Change: Your first question is from the line of Dan Perlin with RBC capital markets.

Daniel Rock Perlin: Thanks. Good evening.

Thanks, Good evening.

Daniel Rock Perlin: Great to see the organic trends continuing to improve here.

William C. Stone: It's great to see the organic trend is just continuing to improve here. I just had a quick question about the guidance. It looks like at the midpoint, it seems to suggest, if we use the midpoint for the third quarter and then take the full year number, that the fourth quarter's organic growth kind of steps down a little bit, maybe more meaningfully. I'm just trying to understand, like, is this just tougher comps as we kind of look at the numbers?

Speaker Change: I just had a quick question on the guidance it looks like at the midpoint.

Speaker Change: It seems to suggest if we use kind of the mid point for third quarter, and then take the full year number that the fourth quarter's organic growth kind of steps down a little bit.

Speaker Change: Maybe more meaningfully I'm just I'm just trying to understand like is this just tougher comps as we kind of look at the numbers there something structural that we need to be mindful of or is this just kind of overall conservatism since we're not.

William C. Stone: Is there something structural that we need to be mindful of? Or is this just kind of overall conservatism since we're not, you know, we're a little bit away from maybe putting up the numbers for the fourth quarter? Yeah, man.

Speaker Change: We're a little bit away from maybe putting up the numbers on the fourth quarter.

William C. Stone: Yeah, Dan, I would just say that the Q4 is really a comp issue. Q4 of 23 was particularly strong, and And again, you know, we're in the process of meeting and beating our numbers. So we're still focused hard on making sure we have a strong number, but a number that we

Daniel Rock Perlin: Yes, Dan I would just say that Q4 is really a comp issue Q4 of 'twenty.

Daniel Rock Perlin: <unk> was particularly strong in.

Speaker Change: And again as you were.

Speaker Change: Well no.

Speaker Change: We are in the process of meeting and beating our numbers. So we're still focused hard on making sure we have a strong number but a number that we.

Speaker Change: We expect to hit.

Daniel Rock Perlin: Okay, no, that's great. And then just a quick follow-up. You know, your leverage is at 2.8 turns now. Obviously, you just did a billion dollar buyback, and you just did the biggest buyback in the company's history for the quarter. And you kind of mentioned a little bit, Bill, about the M&A kind of environment and the pipeline. I'm just wondering, you know, what do you see out there?

Speaker Change: Okay now that's great and then just quick follow ups.

Speaker Change: Your leverage is at two eight turns now obviously you just re up to $1 billion buyback can you just did the biggest buyback in the company's history for the quarter.

Speaker Change: And you kind of mentioned a little bit bill about the M&A kind of environment and the pipeline I'm just wondering.

Speaker Change: What do you see out there how is it stacking up in terms of overall capital allocation I understand you got a hurdle rate for your buyback versus M&A, but it does sound like M&A is picking back up and even in kind of your I guess as you're integrating reported you recently put out it sounded like within North America. The deal flow was was looking pretty good. So I'd just love to get your thoughts on where you sit today.

William C. Stone: How's it stacking up in terms of overall capital allocation? I understand you got a hurdle rate for your buyback versus M&A, but it does sound like M&A's picking back up, and even in your, I guess it was your Interlinks report that you recently put out, it sounded like within North America, the deal flow was looking pretty good. So I would just love to get your thoughts on where you sit today, given your balance sheet's pretty healthy. Yeah.

Speaker Change: Given your balance sheet is pretty healthy.

William C. Stone: Yeah, as you well know, we've really built a company around organic revenue growth and acquisition. We see a lot of stuff out there.

Speaker Change: Yes, as you well know we've really built the company around.

Speaker Change: Organic revenue growth and acquisitions.

Speaker Change: We see a lot of stuff out there, we see things that.

William C. Stone: We see things that... You know, we're on the low end of ridiculously priced, but we are willing to look hard. We would like to deploy capital in acquisitions. We would like to, you know, further build out our portfolio of Products and Services, and each of our business units is, you know, kind of beating the bushes for opportunities. So I wouldn't be surprised if we were able to. You know, close a couple of tuck-ins and maybe something a little more substantial. I don't see any $5 or $10 billion acquisitions on the near-term horizon, although SS&C will be in the running if any of those happen.

Speaker Change: On the low end of ridiculously priced so we.

Speaker Change: We are willing to look hard.

Speaker Change: Wed like to deploy capital in acquisitions, we would like to.

Speaker Change: For further build out our portfolio of.

Speaker Change: Products and services in each of our business units are.

Speaker Change: Kind of beating the bushes.

Speaker Change: For opportunities so I wouldn't be surprised if we are able to.

Speaker Change: And our close a couple of tuck ins and maybe something a little more substantial I don't see any five or 10 billion acquisitions on the near term horizon, Although sse's fee will be.

Speaker Change: And the running if any of those things.

Speaker Change: Come on the market.

Daniel Rock Perlin: Excellent. Thank you, Bill.

Speaker Change: Excellent. Thank you Bill.

Operator: Your next question is from the line of Andrew Schmidt with Citi.

Speaker Change: Your next question is from the line of Andrew Schmidt with Citi.

Speaker Change: Okay.

Andrew Schmidt: Hey, Bill, Rahul, and Brian. Thanks for taking my questions. Maybe it's a higher-level question for me. Obviously, you know, in the last three quarters, we've seen you maintain at least mid-single-digit organic growth. Maybe you could talk about that? Thanks a lot, guys.

Andrew Schmidt: Hey, Bill role, Brian Thanks for taking my questions.

Andrew Schmidt: Maybe just a higher level question for me obviously, the last three quarters, we've seen.

Speaker Change: We maintain at least mid single digit organic growth.

Speaker Change: Maybe talk about the sustainability and visibility of.

Speaker Change: Consistently delivering that.

Speaker Change: And.

If anything whats change I realize it.

Speaker Change: More stable level in terms of the kids performance healthcare stable versus wanted to your scale, but if there is anything else deeper in the business that drives that stabilization that'd be helpful and I realize I might be jumping on the analyst day, but anything there would be helpful. Thanks, a lot guys.

William C. Stone: You know, Andrew, I would just say in general that we have a strong focus on organic revenue growth. We have looked at a bunch of acquisitions. The ones that we really like are priced at 10 times revenue, so we don't like them that much at that price. So when you start focusing on organic revenue, you start looking at how you're pricing.

Speaker Change: Andrew I would just say in general that we have.

Andrew Schmidt: A strong focus on organic revenue growth.

Speaker Change: We have looked at a bunch of acquisitions, but.

Speaker Change: The ones that we really like her pricing at 10 times revenue. So we don't like them that much at that price.

Speaker Change: So when you start focusing on an organic revenue you start looking at how you're pricing we've done a pretty good job of getting a little more discipline. There and you also make sure that the pitches that we go out and order to cross sell and upsell as well as new names are Chris.

Rahul Kanwar: We've done a pretty good job at getting a little more discipline there. And you also make sure that the pitches that we go out in order to cross-sell and up-sell, as well as new names, are crisp and impactful. So I think we've done a good job there. You know, I think Rahul probably has a couple of... or additions that would also give you some clarity. Yeah, I think the thing

Speaker Change: And an impact.

Speaker Change: I think we've done a good job there.

Speaker Change: I think we are whole probably has a couple of.

Speaker Change: Yeah.

Speaker Change: And adults or additions that would also give you some clarity.

Rahul Kanwar: Yeah, I think the thing that I would add to that is product development. We've spent a lot of energy over the last really several quarters making sure that what we're selling into a particular type of customer will bring all of SS&C to bear. And so that's starting to show up in larger deals and, you know, better win rates, and we expect that

Speaker Change: I think the thing.

Speaker Change: That I would add to that as product development. We've spent a lot of energy over the last.

Speaker Change: Really several quarters, making sure that what we're selling into a particular type of customer will bring in all of SMC to bear and so that's starting to show up in larger deals and better win rates and we expect that to continue.

William C. Stone: Got it. Thank you, Bill and Roel. Yeah, it's certainly shining through in the product updates that you're putting out to the market. So we see that. I appreciate those comments. And then maybe just a question on the outlook, you know, just... The raise in the EPS outlook relative to the second quarter result, and that in conjunction with higher levels of sure repurchase, I'm wondering if there was some reinvestment that was baked in, or if there's some that you're kind of saving for some potential outperformance in the backup. It just looks like the raise was a little bit lighter than the outperformed, so anything there would be helpful. Thank you.

Bill: Got it. Thank you Bill enrol, yes, certainly shining through in the product updates that youre, putting to the market. So we see that I appreciate those comments.

Speaker Change: And then maybe just a question on the outlook.

Speaker Change: Just.

The raise in the EPS outlook.

Speaker Change: Relative to the second quarter result.

Speaker Change: That in conjunction with higher level of share repurchase I'm wondering if there was some reinvestment that was baked in or if there's something that you're kind of savings.

Speaker Change: Saving for some potential outperformance in the back half because it looks like the raised a little bit lighter than the outperformed so.

Speaker Change: Anything there would be helpful. Thank you.

William C. Stone: Well, again, as we said, our business was particularly strong, and we don't expect a repeat of the strength of that business in Q3 or Q4. We have some opportunities, but they're often multi-quarter sales cycles. We have a good pipeline, but that certainly could be, you know, a little bit of a headwind for us. And then we also are very excited about our trust suite that we're bringing out into the marketplace. It's getting a lot of, a lot of positive reactions. And I think we are executing it, and, you know, hopefully, it will surprise you.

Speaker Change: Well again, as we said our gift business was particularly strong and we don't expect a repeat of the strength.

Speaker Change: That business in Q3 or Q4.

Speaker Change: We have some opportunity on.

Speaker Change: But often there.

Speaker Change: Our multi quarter sales cycles.

Speaker Change: We have a good pipeline.

Speaker Change: But that certainly could be up.

In a little bit of a headwind to us.

And then we also or.

Speaker Change: Very excited about our truck fleet, and we're bringing out into the marketplace.

Speaker Change: Getting a lot of.

Speaker Change: A lot of positive reaction.

Speaker Change: I think we are we are executing and.

Speaker Change: Hopefully we will surprise you positively.

William C. Stone: The GIDS Business, was the accelerated license revenue that you shed some light on that, was that timing, any details on that, and then I'll jump back in queue, but thanks a lot for your responses here. It is mostly timing, you know; there were some deals that we had forecasters coming in in queue 3 and queue 4, and we were able to...

Speaker Change: Got it. Thank you Bill I'm, sorry, just one more housekeeping since you mentioned it the kids business was due the accelerated license revenue, but could you shed some light on that was that timing.

Speaker Change: Any details on that and then I'll jump back in the queue, but thanks. Thanks Lee responses. It is mostly timing there were some deals that we had forecast is coming in in Q3, and Q4, and we were able to pull them into Q2.

Perfect. Thank you Raul.

Operator: Your next question is from the line of Peter Heckmann with D.A. Davidson.

Speaker Change: Your next question is from the line of Peter Heckmann with D. A Davidson.

Peter James Heckmann: Hey, good afternoon. Thanks for taking my question. I guess, how would you characterize the overall spending environment? And, you know, we hear you in terms of where certain areas are producing a little bit better organic growth, but I guess, what do you view in terms of the next couple of years' catalysts that could potentially cause people to look at switching vendors, upgrading, and what do you think are the demand drivers there? Is it regulatory? Is it technology? Or is it the price?

Peter James Heckmann: Hey, good afternoon. Thanks for taking my question I guess, how would you characterize the overall spending environment.

Speaker Change: We hear you I hear you in terms of where certain areas are producing a little bit better organic growth but.

Speaker Change: I guess, what do you view in terms of like the next couple of years catalysts that could potentially.

Speaker Change: Cause people to look at switching vendors upgrading and what do you think are the demand drivers. There is it regulatory is it technology or is it price.

William C. Stone: Well, I think it's all of those things. I think price is probably the least important of the three.

William C. Stone: I also think as you see these, you know, these cyber attacks and the outages for large-scale businesses, they start looking hard at who their vendors are. And how much money are their vendors putting into their security walls and their expertise and the number of layers they have in order to... You know, kind of stop the bad guys? You know, and similar to things like Matt Madoff and others that caused real problems, and how people did their books, whether they did them in-house or they did them with an outside administrator.

Speaker Change: Well I think it's all of those.

Speaker Change: I think prices, probably the least important up three.

Speaker Change: I also think as you see of these cyber attacks.

Speaker Change: The outages for large scale businesses.

Speaker Change: They start looking hard at who their vendors are in.

Speaker Change: And how much money are their vendors putting into due to their security walls in there.

Speaker Change: Their expertise.

Speaker Change: And the number of layers they have in order to.

Speaker Change: Kind of stop the bad guys.

Speaker Change: And similar to things like Matt made off and others that caused a real.

Speaker Change: The change in.

Speaker Change: And how people did their books whether related them in house as they did outside administrator I think technology is going to be one of those things that.

William C. Stone: I think technology is gonna be one of those things that, yeah, you saved a few hundred thousand and maybe even a few million over a three or four-year deal, and then you got burned for about 15 or 20. And they're gonna start deciding that, you know, playing with technology on the cheap is a risky business. So I think that's going to be a real driver. I also think how you deploy the newest technologies, whether that's deep learning, machine learning, RPA, AI, ML, all those things, right?

Speaker Change: You saved a few hundred thousand maybe even a few million dollars over a three or four year deal and then you got burned for about 15, or 20, and theyre going to start deciding that.

Speaker Change: Putting technology on achieved is a risky business.

Speaker Change: That's going to be a real driver.

Speaker Change: I also think how you deploy.

Speaker Change: The newest technologies, whether that's deep learning machine learning RPI AI ml all of those things right.

William C. Stone: I think the key there is past work that has to work better than what you had before. You can't go show them something that's really pretty and it's slow, or it isn't as accurate. So there's a lot of things that go into deploying new technology. You know, it's not just that we use large language models; we're really steeped in AI. That may be, but I think those kinds of things are real opportunities for us.

Speaker Change: I think the key there is.

Speaker Change: Past work.

Speaker Change: And it has to work better.

Speaker Change: But what you had before.

Speaker Change: You can't go show them, something that's really pretty and it's slow or it doesn't.

Speaker Change: As accurate.

Speaker Change: A lot of things that go into deploying new technologies.

Speaker Change: It's not just.

Large language models.

Speaker Change: We're really steeped in AI.

Speaker Change: It may be.

Speaker Change: I think those kinds of things are real opportunities for us and I think as long as we.

William C. Stone: And I think as long as we focus and deliver applications that show that, hey, we're here for the long term, we're gonna give you improvements every quarter, every six months, every year, and you're gonna see that your business improves because you chose the right part.

Focus.

Speaker Change: And deliver applications that show.

Speaker Change: Hey, we're here for the long term, we're going to give you a improvements every quarter every six months every year and youre going to see that your business improves because you chose the right partner.

Peter James Heckmann: Yes, that's helpful. And then any comments just on wealth specifically mentioned it as one driver of organic growth. But I guess how would you characterize that? Is that more on the advisor tech side or more on the long-only side? I think it's on both.

Speaker Change: Yes, that's helpful. And then just any comments just on well specifically.

Speaker Change: You mentioned it as one driver of.

Speaker Change: Organic growth, but I guess, how would you characterize there is that more on the advisor tech side or more on the long haul link side.

Speaker Change: I think it's both.

William C. Stone: You know, you're going to have to, obviously, though. The wealth and investment technology is a very strong area, you know, just as you've seen on Investnet, you know, getting sold or at least in the process of being sold, and all the number of mergers and private equity buying into different wealth technology companies. I don't see that stopping, you know, there are however many trillions being transferred from generation to generation. The younger people getting this money are not going to wait for a monthly statement or a quarterly statement or something along those lines.

Speaker Change: Youre going to have obviously, though.

Wealth and investment technology is a very strong area.

Speaker Change: Just as you've seen on investment.

Speaker Change: Getting sold or leased in the process of being sold.

Speaker Change: And all of the number of mergers in private equity buying into.

Speaker Change: Different wealth technology companies.

Speaker Change: I don't see that stopping.

Speaker Change: However, many trillions being transferred transferred from generation to generation and the younger people getting this money.

William C. Stone: They're going to want instantaneous access to their money, and I think things like you see on the T plus one and other things where the regulators are understanding that when you have things like Venmo and other instantaneous money movers, people don't wanna wait 24 hours for a trade to settle or the money to be available or anything else. So you're gonna have to be nimble enough to handle the people that are the recipients of the current generations really large scale wealth accumulation.

Speaker Change: Are not going to wait for a monthly statement of our quarterly statement or something along those lines, they're going to want.

Speaker Change: Instantaneous access to their money.

I think things like you see on the T plus one and other things where the regulators are understanding when you have things like venmo.

Speaker Change: Other instantaneous money movers people don't want to wait 24 hours for four.

Speaker Change: Trading to settle or the money to be available or anything else. So if you're going to have to be nimble enough to.

To handle the people better.

Speaker Change: The recipients.

Of the current generations.

Speaker Change: Really.

Speaker Change: Large scale wealth accumulation.

Peter James Heckmann: Okay, thank you. I appreciate it.

Speaker Change: Okay. Thank you I appreciate it.

Operator: Your next question is from the line of Alexei Gogolev with J.P. Morgan.

Alexei Mihaylovich Gogolev: Your next question is from the line of Aleksey <unk> with J P. Morgan.

Alexei Mihaylovich Gogolev: Hi Bill. Komarit Gogolev here.

Alexei Mihaylovich Gogolev: Hi, Hi, Bill Komori Gogo is here great to hear from you.

Speaker Change: Last time, we met you flagged the growing confidence.

Speaker Change: <unk> will be able to achieve high single digit organic revenue growth in the mid term.

William C. Stone: Great to hear from you. Last time we met, you flagged growing confidence that SS&C will be able to achieve high single-digit organic revenue growth in the midterm. So, sort of following up on some of the questions that my colleagues have asked, are you seeing any sort of signs or pockets of opportunity that could drive the growth acceleration?

Speaker Change: So sort of following up on some of the questions that as my colleagues have asked are you seeing.

Speaker Change: <unk>.

Speaker Change: Some sort of.

Speaker Change: <unk> or pockets of opportunity that could drive the growth acceleration.

William C. Stone: You know, I think we see them lucky. I think the question is, is that, you know, you have to not just see them; you have to act on them, and you have to get ink on paper.

Speaker Change: I think we see them, let's see I think the question is is that you have to you.

Speaker Change: You have to not just see them you have to act on them and you have to get ink on paper.

William C. Stone: And I think, you know, the large-scale things that we think are happening are people too outsourcing. You know, and even for us to take various, lift out, where we can give them tremendous expense savings, better technology, and a happier client base. And we can earn a lot of money processing that business. So we think there's a number of those that are in the.

Speaker Change: And I think the large scale things that we think are happening are.

Speaker Change: People to outsource.

Speaker Change: And even for us to take various.

Speaker Change: <unk>.

Speaker Change: Where we can give them tremendous expense savings better technology, and a happier client base.

Speaker Change: And we can earn a lot of money and processing that business.

Speaker Change: We think theres a number of those that are better.

William C. Stone: In the marketplace, we think we're well positioned. So I think those types of things and then, you know, things like, What we're rolling out are new products and new services. As they kick in, I think you'll see increasing organic revenue growth. You know, I think the Production and, and Year-over-year revenue in health care went from eight and a half, four and a half, or eight and a half to 4.8.

Speaker Change: In the marketplace.

Speaker Change: Think we're well positioned.

Speaker Change: So I think those types of things and then things like.

Speaker Change: What we're rolling out as new products New services.

Speaker Change: As they kick in.

Speaker Change: I think youll see.

Speaker Change: Increasing organic revenue growth.

Speaker Change: I think the.

Speaker Change: Reduction in.

William C. Stone: I think Q3 will be better than, and that may be breakeven or even a little better on a growth basis. And then I think we'll start accelerating in Q4 and throughout 25 and 26. So, you know, I think there are a number of different catalysts that can drive to mid to high single digits, but, you know, it's execution. We've got a great strategy.

Speaker Change: Year over year revenue in healthcare went from 854, and a half or even 5% to $4 eight I think Q3 will be better than.

Speaker Change: And that may be breakeven or even a little better on a growth basis, and then I think we will start accelerating in Q4 and throughout 2005 and 2006 so.

Speaker Change: I think theres, a number of different catalysts that can drive.

Speaker Change: Mid to high single digits.

Speaker Change: Execution.

Speaker Change: We got great strategies.

William C. Stone: Okay, Bill. And just to build on the answer that you just provided, you've always positioned having your own data centers and infrastructure as a strong competitive advantage. Could you discuss how your customers reacted to outages last week and if you've seen any incremental demand on the back of that?

Speaker Change: Bill and just to build up on on.

William C. Stone: The answer that you just provided.

William C. Stone: You've always position, having your own data centers.

William C. Stone: Infrastructure is a strong competitive advantage.

Speaker Change: Could you discuss how your customers reacted to.

Speaker Change: Outages last week, and if you've seen any incremental demand on the back of that.

William C. Stone: Well, I think you know, we've had many follow-up calls with customers of ours that in their [inaudible] They had they had some of the some of the companies that had some real difficulties. You know, in our own tech stack, we have very little of the companies that had problems. So, you know, knock on probably fig and marble here.

Speaker Change: Well I think we've had many follow up calls with with customers of ours that in there.

Speaker Change: Ex Tac.

Speaker Change: They had they had some of the some of the companies that have them.

Speaker Change: I'm real difficulty field and in our own tech stack, we have very little.

Speaker Change: The companies that have had problems so.

Speaker Change: Knock on stock on probably in Fig marble here.

William C. Stone: We believe that we're well served by our technology team. It's very disciplined and also has many layers of security around our around our data processing centers. You know, we run our own private cloud. It doesn't mean we don't get attacked. Of course, we get attacked by everybody else. But, you know, we're not Amazon. We're not Azure. We're not Atari. The number of people coming after us is a mere fraction of what would go after, you know, large-scale disruptions in the U.S. So we're confident in what we're doing. We spend tons of money. And we believe that we're getting value.

Speaker Change: We believe that were well served by our technology team.

Speaker Change: We're disciplined.

Speaker Change: And also has many layers.

Speaker Change: Security around our around our.

Speaker Change: Okay.

Speaker Change: Around our data processing centers.

Speaker Change: We run our own private cloud.

Speaker Change: That doesn't mean, we don't get a tax of course, we get attacked by everybody else.

Speaker Change: We're not Amazon XOR are not a target.

Speaker Change: On a number of people coming after us.

Speaker Change: We're a fraction.

Speaker Change: What would go after.

Speaker Change: Large scale disruptions of U S economy.

Speaker Change: So we're confident in what we're doing we spend tons of money.

Speaker Change: And we believe that we're getting value.

Alexei Mihaylovich Gogolev: I understand. Thank you very much, Bill.

Speaker Change: Understood. Thank you very much Joe.

Operator: As a reminder, if you would like to ask a question, press star 1 on your telephone keypad. Your next question is from the line of Surinder Thind with Jeffrey.

Speaker Change: As a reminder, if you would like to ask a question press star one on your telephone keypad.

Speaker Change: Your next question is from the line of surrender.

Speaker Change: With Jefferies.

Surrender: Thank you.

Bill can you maybe talk about the pipeline at the Montney Rx given that you've now had a few successful.

Speaker Change: Clients on the platform, what Youre seeing maybe what the conversations are like and just timeframe for any new announcements.

Surinder Singh Thind: Thank you. Time frame for any new announcements.

William C. Stone: But we have a good pipeline, and we have a pipeline with very large... Healthcare Insurance Claims Payers, and you know, I think we have, You know, a better bread box, so we have a great opportunity if we can execute and ask in a way that those large-scale organizations say, you can handle this. Not only can you handle it, you know, Damani has very little latency, processes sub-second.

Speaker Change: But we haven't we have a good pipeline and we have pipeline with very large.

Surrender: Yes.

Speaker Change: Health care insurance claims payers.

Speaker Change: I think we have.

Speaker Change: A better breadbox, so we have a great opportunity if we can execute.

Speaker Change: In a way that those large scale organizations say you can handle this not only can you handle it.

Speaker Change: <unk> has very little latency.

William C. Stone: You know, a number of our competitors process in multi-seconds. When you're doing millions of claims, that's very unpopular. So we think we have some competitive advantage there, as Rahul said before, we have self-service capabilities, we have very strengthened reporting capabilities, and a lot of good things for finance so that they can really understand where they're spending money and on which drugs and in which markets. So, we think we have great opportunities.

Process second a number of our competitors are processing and multi sector.

Speaker Change: And when Youre doing millions of claims thats very unpopular.

Speaker Change: So we think we have some competitive advantage there is for whole said before we have self service capabilities we have.

<unk> reporting capabilities.

Speaker Change: And a lot of good things for our finance.

Speaker Change: They can really understand where they are spending money in and on which drugs.

Speaker Change: Which markets. So we think we have great opportunities.

William C. Stone: You know, there are bakeries in every market; there are bakeries here too. So we have to execute. But, you know, we put a million and a half hours into Domani. And as I tell our prospects and clients, it works, and that's a pretty big statement.

Speaker Change: Theres bakeries in every market they are phase III tier two so while we execute.

Speaker Change: But we put 1 million and a half hours into door mining.

Speaker Change: And as I tell our prospects and clients it works and.

Speaker Change: And that's a pretty big statement.

Surinder Singh Thind: That's helpful. And just as a closure, are they larger deals, with a longer sales cycle than the rest of your business? Or what should we think about?

Speaker Change: That's helpful and just as close as it is it larger deals longer sales cycle.

Speaker Change: In the rest of your business or how should we think about that.

William C. Stone: I wouldn't necessarily say longer sales cycles, but most healthcare plans start on a long run. So, you know, you're giving me opportunities on January 124. Oh, damn.

Speaker Change: I wouldn't necessarily say longer sales cycles, but but most health care plan start on Walmart.

Speaker Change: So.

Speaker Change: Given the opportunity.

Daniel Rock Perlin: January 124, Dan.

William C. Stone: It's July 24th, so now we get big opportunities on January 1st, 2025. And for the biggest ones. You know, you're really going to have to be planning, starting now, and hopefully taking them online on 1-1-26. You know, but they're enormous companies that can pay upwards to $100 million a year on some of these claims processing things that they do. And, you know, we just need to be ready. The system has to continue to get better, and we have to continue to be delighted.

Speaker Change: Yeah.

Speaker Change #100: July 24.

Speaker Change: Now, we get big opportunities on January 125.

Speaker Change: And for the biggest ones.

Speaker Change: Youre really going to have to be planning, starting now and hopefully taking them line 126.

Speaker Change: They are enormous type companies that can pay upwards to $100 million a year.

Speaker Change: On some of these claims processing.

Speaker Change: Things that they do and we just need to be ready the system has to <unk>.

Speaker Change: Continue to get better.

Speaker Change: And we have to continue to.

Speaker Change: Delight our customers.

Surinder Singh Thind: Thank you. And then on... Blue Prism, just any update there, what you're seeing externally, and then just as a follow-up on the earlier comments about obviously doing a lot of continued work in AI, ML, and it takes a lot of time to prove those technologies, but just update on the internal efficiency initiatives there, and if there's any change that you see coming, not necessarily this year, but as you look out over the next one, two, three years, that maybe you can squeeze a bit more from an efficiency perspective.

Speaker Change: Thank you and then on <unk>.

Speaker Change #101: Blue Prism, just any update there what you're seeing externally.

Speaker Change #101: And then just as a follow up on the earlier comments about obviously doing a lot of continued work in AI.

Ml and it takes a lot of time to prove those technologies.

Speaker Change #102: Update on the internal efficiency initiatives, there and if theres any change that you see coming.

Speaker Change #103: Not necessarily this year, but as you look out over the next 123 years that maybe you can squeeze a bit more from an efficiency perspective.

Rahul Kanwar: Yeah, you know, we're continuing to roll out Blue Prism within SS&C. In some ways, we're building momentum because as more people get trained up, we have more capacity to have additional processes be subject to that robotic process automation and AI-type enhancements. We've also, we just released the next generation of Blue Prism, which actually, as part of its workflow, has Gen-AI capabilities, so you can use Gen-AI, a natural language type, an interface to design your workflows, which makes it easier for us to roll out internally, but also, you know, improves our product differentiation from others in the marketplace. So we feel really good about Blue Prism and how it's helping us. And we certainly expect it to accelerate. Yeah, I would just add.

Speaker Change #102: Yeah.

Speaker Change #104: We're continuing to rollout blue prism within SSN seat.

Speaker Change #105: In some ways more building momentum because as more people get trained up we have more capacity to add.

Speaker Change #105: Additional processes B.

Speaker Change #105: Subject to that robotic process automation and AI type.

Speaker Change #105: Op enhancements.

Speaker Change #105: We're also we just released.

Speaker Change #105: The next generation of Blue Prism, which actually.

Speaker Change #105: As part of its workflow is gen AI capabilities. So you can use gen AI and natural language type.

Speaker Change #105: And interface to design, your workflows, which makes it easier for us to rollout internally, but also improves our.

Speaker Change #105: Product differentiation from others in the marketplace. So we feel really good about blue prism and how it is helping us and we certainly expect it to accelerate from here.

William C. Stone: Yeah, I would just add to that what we find when people start to embrace it. Their jobs get better. You know, and some people. We have a lot of green eye shades and a lot of warm fans around us. So, you know, often you have to bring the horses to water multiple times, best if it's really sunny out so they're thirsty. So I think those opportunities are where we do things where, wow, I wish I would have done this a year ago.

Speaker Change #106: I would just add to that.

Speaker Change #109: What we find when people start to embrace it.

Speaker Change #107: Their jobs get better.

Speaker Change #108: And some people.

Speaker Change #110: We have a lot of green Eyeshade and a lot of warm bands around necessity.

Speaker Change #111: So often you have to bring the horses to water multiple times and it's best if its really firming up so theyre thirsty.

Thank those opportunities is where we have things where wow I wish I would have done this a year ago.

William C. Stone: Because it makes their job better. It makes the drudgery parts of their job sort of not drudgery anymore because they're not doing it. They have some digital worker doing it. So I think we're sticking to the knitting. We constantly monitor how many digital workers we have by business unit, and I know they're very happy about all the calls that Rahul and I make to them.

Speaker Change #111: Because it makes their job better it makes the drudgery parts of their job.

Speaker Change #112: Not drudgery anymore, because they are doing.

Speaker Change #113: They have some digital work are doing and so I think.

Speaker Change #114: We're sticking to the netting.

Speaker Change #114: Consequently monitor how many digital workers by business unit.

Speaker Change #114: And I know they are very happy about all the calls that Rocco and I make it to them.

Surinder Singh Thind: Thank you, Bill. That's very helpful.

Speaker Change #114: Thank you Bill that's helpful.

Operator: Your next question is from a line by James Faucette with Morgan Stanley.

Speaker Change #115: Your next question is from the line of.

James Eugene Faucette: James <unk> with Morgan Stanley.

James Eugene Faucette: Thanks a lot. I have a couple of product questions. I want to follow up on the blue prism question. I appreciate your comments there. Just wondering what you see as the competitive landscape right now, and, you know, I'd love to hear how you're thinking about that opportunity having evolved of late, and specifically, whether or not you think you maybe could be the beneficiary of some of the hiccups we've seen from some of the public RPA vendors.

James: Thanks, a lot I had a couple of product questions I want to follow up on the Blue Prism question on.

James: And I appreciate your comments there just wondering what you see as the competitive landscape right now.

Speaker Change #118: Love to hear how you're thinking about that opportunity, having a bolt of Wade.

Speaker Change #119: Specifically, whether or not you think you maybe can be the beneficiary of some of the hiccups we've seen from some of the public RPI vendors.

William C. Stone: Yeah, we think if we keep our hiccups at a minimum, we will be a big recipient. You know, because our business is profitable. So that means it's sustainable. It means we can invest. You know, I know that a lot of these companies that you follow and a bunch of your colleagues follow, it's how much money, private equity money, can we burn before we have to be profitable? And I think, a little bit, that fuse has kind of played its way out.

Speaker Change #120: Yes, we think if we keep our hiccups at a very minimum.

Speaker Change #120: We will be a big recipients.

Speaker Change #120: Because our business is profitable threatening to sustainable means we can invest.

Speaker Change #121: I know that a lot of these companies that you follow in a bunch of your colleagues follow.

Speaker Change #122: How much money private equity money can we burn before we have to be profitable.

William C. Stone: So now you have to build sustainable businesses. And I think that's what we've done. We also have to accelerate our revenue growth. You know, and I think, you know, we've added a new Chief Revenue Officer. We have some high expectations there. But, but, you know, it's all proof in the pudding.

Speaker Change #123: I think a little bit that fuse is kind of related.

Speaker Change #124: <unk> way out so now you have to build sustainable businesses.

Speaker Change #125: That's what we've done.

Speaker Change #125: We also have to accelerate our revenue growth.

Speaker Change #125: And I think we've we've added a new chief revenue officer.

Speaker Change #125: We have some high expectations there.

Speaker Change #125: But with all proof in the pudding.

William C. Stone: You know, you can get up to bat, but somebody has to hit the ball, you know, and I think that's the thing we're driving at. And I think we are, you know, more than cautiously optimistic. But I wouldn't tell you that we're drunkenly optimistic either. So, you know, we're going to execute it. And I think, you know, we should begin to see double digits in revenue growth and Blue Prism for the foreseeable future.

Speaker Change #125: You can get up to bat, but assuming that we hit the ball.

Speaker Change #125: I think thats the.

Speaker Change #125: That's the thing we're driving that and I think we are.

Speaker Change #125: More than cautiously optimistic.

Speaker Change #126: I wouldn't tell you that we're drunkenly optimistic either sold.

Speaker Change #126: We are going to execute and I think we should begin to see double digit.

Speaker Change #126: Revenue growth in Blue prism for the foreseeable future.

James Eugene Faucette: Sober forecasting is always appreciated. As far as the Genesys platform, I'd love to hear the early feedback from your customers on the product. Specifically, what you're trying to do with the capability set across ADVAN, EZ, and GLOBOP. I guess I'm trying to get a sense for what portion of your customer base do you think this will be most applicable for and how do you think that Genesys will impact that segment. So, so, you know, when we, when we combined

Speaker Change #126: Got it got it.

Speaker Change #127: Silver forecasting is always as always appreciate it.

Speaker Change #128: As far as the Genesis platform I'd love to share the early feedback from your customers on the product.

Speaker Change #129: Specifically what are you trying to do with the capability set across AD then.

Bob: And globe Bob.

Speaker Change #131: I guess I'm trying to get a sense for what portion of your customer base do you think this will be most applicable for and how do you think.

Speaker Change #131: That Genesis will impact that segment.

Speaker Change #131: Yes.

Rahul Kanwar: So, you know, when we combined Advent and, as and then subsequently institutional investment management, that combined business is now... and has a lot of different products that are geared towards wealth, asset managers, and financial institutions, particularly on the software side. And it's only been a few months, but we find that we are able to start to take a look at product roadmaps for products like Genesis and Aloha and Singularity and others and make sure that, you know, the things that we think are worthwhile to build, we're putting the right amount of muscle behind them, and we're making sure that we've got a good launch plan and a good customer validation process. So, you know, early days, but it feels like we're on the right track.

Speaker Change #132: So when we when we combined.

Speaker Change #132: <unk> been and as and then subsequently institutional investment management.

Speaker Change #132: That combined business is now.

Speaker Change #132: Maybe a little over 1 billion and a half in annual revenue.

Speaker Change #132: And has a lot of the different products that are geared towards wealth asset managers financial institutions, particularly on the software side and it's only been a few months, but we find that we're able to do is start to take a look at product roadmaps for products, like Genesis, and Aloha and singularity and others.

And make sure that the things that we think are worthwhile to build we're putting the right amount of muscle behind them and we're making sure that we've got a good launch plan any good.

Speaker Change #132: Customer validation process and Thats starting to show up in some of the results. So early days, but.

Speaker Change #132: It feels like we're on the right track.

Speaker Change #133: Appreciate that.

Operator: Your next question is from a line by Kevin McVeigh with UBS.

Speaker Change #133: Your next question is from the line of Kevin Mcveigh with UBS.

Kevin Damien McVeigh: Great, thanks so much, and congratulations on really just terrific results. Maybe this is for Bill. Bill, given the kind of technology efficiencies that Blue Prism is bringing to bear, is it changing the go-to-market strategy with your clients? I mean, I know you've spoken a lot about bigger kinds of lift-and-shift opportunities. Has it accelerated that process, and does the efficiencies that Blue Prism bring to bear afford you kind of a wider lens in terms of go-to-market strategy, just given some of the potential returns as a result of the efficiencies?

Speaker Change #133: Yes.

Kevin Damien McVeigh: Great. Thanks, so much and congratulations I'm really just terrific results.

William C. Stone: Maybe just for Bill.

Kevin Damien McVeigh: So given the kind of technology efficiencies at Blue Prism are bringing to bear is it changing the go to market strategy with your clients and has spoken a lot about bigger kind of lift and shift opportunity has it accelerated that process.

Speaker Change #135: The efficiencies of Blue Prism bring to bear afford you kind of a wider lens in terms of go to market strategy just given some of the potential returns as a result of the efficiencies that I wanted to start there because it feels like there's a step function change in the business.

Kevin Damien McVeigh: I wanted to start there because it feels like there's a step function change in the business from a revenue growth perspective that just is beyond kind of some of the segmentation, and I just wanted to maybe try to frame that a little bit.

Speaker Change #135: From a revenue growth perspective that just is beyond Todd at some of the segmentation.

Speaker Change #137: Wanted to maybe try to frame that a little bit.

William C. Stone: Well, I think, Kevin, that was, that was the intent. When we bought Blue Prism, our intention was to buy something that was horizontal, that would act as, you know, almost like the floor for all of our different applications and services, you know, to kind of hang off of or to improve with and be able to present a technological differentiator that we can train everybody on across the enterprise. Now, the enterprise is pretty broad, and we've done 75 acquisitions, so there's a lot of teaching and Implementation of Blue Prism both internally at SS&C and then as we take people out to pitch externally, you know, they get a lot of confidence because we're using it, right? We're eating our own dog food.

Speaker Change #135: Well I think Kevin that was that was.

Kevin Damien McVeigh: The intent.

Speaker Change #136: When we bought Blue prism was to buy something that was horizontal.

Kevin Damien McVeigh: That would act as almost like a floor for all of our different applications and services.

Speaker Change #138: Hang off on our two improved with <unk>.

Kevin Damien McVeigh: And be able to.

Kevin Damien McVeigh: Present.

Kevin Damien McVeigh: A technological differentiator that we can train everybody on across the enterprise.

Kevin Damien McVeigh: Now the enterprise pretty broad and we've done 75 acquisitions.

Kevin Damien McVeigh: So theres a lot of teaching and training and implementing.

Kevin Damien McVeigh: Implementing a blue prism both internally.

Kevin Damien McVeigh: And then as we take people out with <unk>.

Kevin Damien McVeigh: Externally.

Kevin Damien McVeigh: They get a lot of confidence because we are using right we're eating our own dog food we're processing.

William C. Stone: We're processing on Blue Prism across almost every one of our disciplines inside us. So that's the whole Holy Grail of this thing, and I think that it is. You know, we think the train has left the station. I think there was a hill to get the train up first, right?

Kevin Damien McVeigh: Blue prism across almost every one of our disciplines inside efficacy and so thats the whole the whole loan.

Kevin Damien McVeigh: Holy Grail of this thing and I think that it is.

We think the train has left the station.

Speaker Change #139: But I think there was a hill.

Speaker Change #139: Get the train up first right you've got to get into those places and you got to really start to educate.

William C. Stone: You've got to get into those places, and you've got to really start to educate the IT departments of our clients. You know, traditionally, we've been functional experts, you know, talk to us about retrospective or prospective accounting rules or how to value a multi-step bond or whatever it is, right? But now you gotta go in and talk about large language models and how you're gonna deploy Machine Learning or RPA, and that's an education. And I think we're doing it, and we're doing it pretty well, and we have a very talented tech.

Speaker Change #139: The it departments of our clients.

Speaker Change #139: When traditionally we've been functional experts.

Speaker Change #140: Talk to us about retrospective or prospective accounting roles are.

Speaker Change #140: How about how to value.

A multi step bond or whatever it is Craig.

Speaker Change #141: But now you got to go in and talk about <unk>.

Speaker Change #142: Language models.

Speaker Change #142: How youre going to deploy.

Speaker Change #143: Machine learning our RPI.

Speaker Change #144: And that's an education and I think we're doing it and we're doing pretty well and we have a very talented tech team.

Kevin Damien McVeigh: That makes a lot of sense. And then just, does that afford bigger opportunities, Bill? Because obviously, you're talking to a wider audience, so it almost sounds like it's more transformational opportunities. So should those clients scale in size, I guess, given the complexity of what you're taking?

Speaker Change #145: That makes a lot of sense and then just does that afford bigger opportunities bill because obviously youre talking to wider audience. So it almost sounds like it's more transformational opportunity. So those should those clients scale and size I guess, just given the complexity of what you are taking.

William C. Stone: It does, but it also brings in every tech-focused consulting firm. Horizontal Consulting Firm, Tech Farm. Right now, you run into all the What we used to call, you know, manpower shops out of India, whether that's Cognizant or Tata or Instasys or any of the other ones, plus you start bumping into Accenture and the ones here in the States.

Speaker Change #146: It does but it also brings in every case.

Speaker Change #146: Tech focused consulting firm.

Speaker Change #147: In horizontal consulting firm and tech firm right now you're running into all of them.

Speaker Change #148: What we used to call.

Speaker Change #149: Manpower shops out of India, where that cognizant there Todd.

Our emphasis or any of the other one and plus you start bumping into accenture.

Speaker Change #149: And the ones here in the states.

William C. Stone: So, you know, it's a different kind of competitive landscape. We really like that we bring expertise and what our clients are trying to do, so we can kind of help their IT people and try to explain to them that's not how this really works, this is how it works. This is what really... This is what momentum trading means. This is what?

Speaker Change #149: It's a different timing of a competitive landscape.

Speaker Change #149: We really liked that we bring.

Speaker Change #149: Expertise and what our clients are trying to do so we can kind of help the right people and try to explain to them. That's not how this really works. This is how it works. This is what really.

Speaker Change #149: Momentum trading means versus what.

Speaker Change #149: Sure.

William C. Stone: How traders and portfolio managers are looking at risk in their portfolios and, you know, what is the value of real time versus near real time and being able to go across what they're doing in technology and show them that you're going to spend $5 million doing it that way. If you spent $500,000, you'd get the same result, but you'd be a hero because you saved the organization $4.5 million. And you know what?

How traders and portfolio managers are looking at risk.

Speaker Change #149: And their portfolios.

Speaker Change #149: What is the value of real time versus near real time.

And being able to go across.

Speaker Change #149: What theyre doing in technology in Schaumburg, Illinois have spent $5 million.

Speaker Change #150: Doing it that way if you spent 500000 you'd get the same result.

Speaker Change #151: It would be a hero because you save the organization for ethane.

William C. Stone: Some of these places have enormous budgets. You know, a couple hundred million dollars for firms that are a couple hundred people. 300 people, 400 people. So there's a lot of opportunity there. There was a lot of competition. I hope you found this tutorial helpful. Thank you.

Speaker Change #151: And some of these places have enormous budgets.

Kevin Damien McVeigh: Super helpful. Thank you.

Speaker Change #151: A couple of hundred million dollars.

Speaker Change #151: <unk> Center couple of hundred people or.

300 people 400 people. So there is there is a lot of opportunity in there.

Speaker Change #151: But there is a lot of competition.

Speaker Change #152: Super helpful. Thank you.

Operator: At this time, there are no further questions. I will now hand today's call over to Bill Stone for any closing remarks.

Speaker Change #152: At this time there are no further questions I will now hand todays call over to Bill stone for any closing remarks.

William C. Stone: Thank you, Tamika. And thanks, everybody, for being on the call. We really appreciate it. You know, we're working hard for you, as we always have. We like to work hard for you and give you great results. So until next time, we'll be out there working on great results.

William C. Stone: Thank you, Tim and thanks, everybody for being on the call. We really appreciate it we are working hard for you as we always have.

William C. Stone: I'd like to work hard for you and give you a great result.

William C. Stone: So until next time, we'll be out there working on great results. Thanks again.

Operator: This concludes today's call. Thank you for joining us. You may now disconnect your lines.

Speaker Change #153: This concludes today's call. Thank you for joining you may now disconnect your lines.