Q4 2024 SS&C Technologies Holdings Inc Earnings Call
Ladies and gentlemen. This is your operator speaking to this conference call will begin momentarily you will be placed back on music hold until then thank you for your patience.
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John: Good afternoon, My name is John and I'll be your conference operator today at this time I would like to welcome everyone to the S. N C Technologies' fourth quarter and full year 2024 earnings call. All lines have been placed on mute to prevent background noise. After the speakers' remarks, there will be a Q&A session. If you would like to ask a question during that time.
Speaker Change: I am simply fleet simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question simply press Star. One again. Thank you I would now like to turn the call over at the child and the Doctor of Investor Relations. You May now begin your conference.
Chance Butacuna: Welcome and thank you for joining us on our Q4 and full year 2024 earnings call I'm chance, but acuna Investor Relations I S. S. C 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 before we get started we need to review the Safe Harbor statement.
Chance Butacuna: 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 purposes of the safe Harbor provisions under the private Securities Litigation Reform Act of 1095.
Chance Butacuna: Actual results may differ materially from those indicated by these forward looking statements as a result of various important factors, including those discussed in the risk factors section of our most recent annual report.
Chance Butacuna: On Form 10-K, which is on file with the SEC and can also be accessed on our website.
Chance Butacuna: These forward looking statements represent our expectations only as of today February six 2025, while the company may elect to update these forward looking statements. It specifically disclaims any obligation to do so.
Chance Butacuna: 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 website Investor Relations section of our website at <unk> Dot Com I.
Bill: I'll now turn over the call to Bill.
Bill: Thanks, Shawn and welcome everyone I want to welcome Sean to the Investor Relations team as she steps in well my daughter Justine is on maternity leave.
Bill: Who I'm sure she's listening again, probably maybe with my grandson Who's now 10 days old anyway, our fourth quarter results were strong as we said several quarterly records, including a record for adjusted revenue up 1.53.
Bill: $1 million.
Bill: Dollars up eight 4% our earnings also second.
Bill: Quarterly records with adjusted Diluting.
Bill: Diluted earnings per share of $1 58.
Bill: 25, 4% and adjusted consolidated EBITDA of $599 1 million up $6 five.
Bill: Quarterly adjusted consolidated EBITDA margin was 39.1, our fourth quarter adjusted organic revenue growth was 7% performance was driven by continued strength in global.
Our wealth and investment technology business.
Bill: Global Investor distributions for those.
Bill: Systems businesses services businesses.
Bill: So new business growth would explain strengthen the web focused software like black Diamond and it's outperformed due to large client volumes.
Bill: And continued growth in its non transfer agency services.
Bill: Additionally, the health business finished the quarter above expectations with two deals that were pushed from Q3 into Q4, our recurring revenue growth rate for financial services was seven 4% for Q4.
Bill: Seven 2% for full year 2024, which includes all software enabled services and maintenance revenue.
Bill: Fourth quarter cash from operating activities was $486 6 million up 25, 3% from Q4 'twenty three our cash flow conversion percentage was 101% and we bought back $4 9 million shares for $365 million at an average price of 70 440.
Speaker Change: Six <unk>.
Bill: For sure we continue to believe share repurchases are the best use of our capital.
Bill: Some high quality accretive acquisitions.
Bill: In December we announced an initial strategic lift out agreement within Sydney and financial to deliver superannuation member administrative services in Australia.
Bill: We are in the final contract stages within Cigna and express.
Bill: A lift out of team members in Australia to a cool occur early in the second half of this year, we are bullish about our opportunity in Australia, where we have a 5% market share of the $22 million.
Bill: Superannuation fund accounts.
Bill: I'll now turn it over to Rahul to discuss the quarter in more detail.
Thanks, Bill we had another strong quarter with organic revenue growth of 7%, reflecting the underlying strength of our business.
Bill: Turning to some business highlights wealth and investment technologies grew six 8% for the quarter.
Bill: Black Diamond wealth platform is growing in the mid teens and the investment management industry Genesis had a year of milestones, we modernized accounting reconciliation and trading capabilities and merge development efforts fall aloha into the <unk>.
Bill: Into the Genesis development team.
Bill: Our fund administration business Globe Salt.
Bill: Many new business wins in 2024 contributing to organic growth of 8%, but to air contributed an additional $21 million in revenue for the year in 2025, we see continued opportunity driven by retail alternatives and private markets industry growth.
Bill: Q4 was also a record bookings and revenue quarter for intra links you just solid deal count trends greater deal length and technological advancements in our offering.
Bill: Global Investor in distribution solutions business had another strong quarter and brought in greater revenue at our largest clients. In addition to new business wins I'll now turn it over to Brian to run through the financials.
Brian: Thanks, Rahul and good day, everyone as noted in our press release, our Q4 'twenty four GAAP results reflect revenues of $1 $5 3 billion net income of $248 million and diluted earnings per share of <unk> 98.
Brian: Alright, adjusted non-GAAP results include record revenues of $1 $5 $31 billion, an increase of eight 4% over Q4 23.
And record adjusted diluted EPS of $1 58, a 25, 4% increase over Q4 'twenty three the.
Brian: The adjusted revenue increase of $118 million over Q4, 23 was primarily driven by incremental revenue contributions from the robot gets interlake's businesses.
Brian: The acquisition of <unk> contributed $17 million and foreign exchange had a favorable impact of approximately $2 million.
Brian: As a result, adjusted organic revenue growth on a constant currency basis was 7% our core expenses increased eight 3% or $72 million, which excludes acquisitions and on a constant currency basis. The primary driver of the increased expenses was increased incentive compensation commissions and wages.
Brian: Adjusted consolidated EBITDA was $599 million or <unk> 39, 1% of adjusted revenue an increase of $37 million or six 5% from Q4 dollars 23 on a full year basis. Adjusted consolidate EBITDA was $2 281 billion, an increase of $173 million or eight two.
Brian: Percent.
Brian: This resulted in a margin of 38, 8% an improvement of 50 basis points compared to last year.
Brian: Net interest expense for the fourth quarter of <unk> 24 was $113 million a decrease of $6 million from Q4 'twenty three.
Brian: <unk> net income was $402 million up 26, 2% and adjusted diluted EPS was $1 58, the increase of 25, 4%.
Brian: An increase in the average share price drove the diluted share count up to $254 5 million from $254 1 million at Q3 'twenty four.
Speaker Change: As Bill mentioned several quarters ago, we continue to strategically evaluate our tax rate, which has been at 26% for several years, we looked at what our adjusted tax rate represents and believe it is appropriate to make changes to the way we have computed the rate the revised effective rate more closely aligns with how we evaluate our financial performance and is more consistent with our peers.
Speaker Change: As a result, we've revised our full year 2024, non-GAAP effective rate to 23, 1% from.
Speaker Change: New effective tax rate attributable to increased deductions related to equity award implementation of prudent tax planning strategy domestically and internationally.
Speaker Change: And the mix of earnings in our business jurisdictions.
Speaker Change: This change increases our reported adjusted EPS by approximately <unk> 21 in 2024, we will continue pursuing appropriate tax strategies to realize additional benefits going forward.
Speaker Change: Okay.
Speaker Change: <unk> ended the fourth quarter with $567 $1 million in cash and cash equivalents and $7 billion and gross debt.
Speaker Change: Ssds net debt as defined in our credit agreement, which excludes cash and cash equivalents of $155 million held that <unk> Rx was $6 $6 billion.
Speaker Change: Our last 12 months consolidated EBITDA used for covenant compliance was $2 $3 billion based on net debt of approximately $6 6 billion. Our total leverage ratio was 289 times.
Speaker Change: As we look forward to the first quarter and full year 2025 with respect to guidance note that we will continue to focus on client service and assume that retention rates will remain in the range of our most recent results. We will continue to manage our expenses with our cost discipline approach by controlling aligning variable expenses to ensure efficiency increasing productivity to improve our opera.
Speaker Change: Getting margins leverage our scale and create capacity.
Speaker Change: And effectively investing in the business through marketing sales and R&D to take advantage of future revenue and earnings growth opportunities, specifically, we have assumed foreign currency and interest rates to remain at current levels.
Speaker Change: We anticipate our full year adjusted tax rate to be 23% to 25%.
Speaker Change: And as we previously indicated we will continue to evaluate our tax strategy going forward as it released our quarterly results in 2025, we will display 2024, adjusted EPS results using the lower adjusted tax rate for the sake of comparability.
Speaker Change: Capital expenditures to be four 1% to four 5% of revenues, which is consistent with 2020 for guidance and actual results.
And a stronger weighting to share repurchases versus debt reduction and subject to changes in market conditions or financing needs.
Speaker Change: So the first quarter of 'twenty five we expect revenue to be in the range of $1 47 for <unk>.
Speaker Change: 2151, 4 billion and 4% organic revenue growth at the midpoint.
Speaker Change: Adjusted net income in the range of $348 million to $364 million interest expense, excluding amortization of deferred financing costs and original issue discount and the range of 104 to 106 million diluted.
Speaker Change: Diluted shares in the range of $254 six to $255 6 million and adjusted diluted EPS in the range of $1 37 to $1 43.
Speaker Change: For the full year 2025, we expect revenue to be in the range of six point.
Speaker Change: 085 to six to $4 5 billion and 5% organic revenue growth at the midpoint adjusted net income in the range of one for three 1% to 153 1 billion.
Speaker Change: Diluted shares in the range of 253, 7% to $256 7 million.
Speaker Change: Adjusted diluted EPS in the range of $5 64 to $5 96.
Speaker Change: Cash from operating activities to be in the range of one 404 eight to $1 $548 billion.
Speaker Change: And now back to Bill.
Bill: Thanks, Brian we closed out a strong 2024 with a record fourth quarter record revenues record earnings record cash flows and a record amount of share repurchases.
Bill: We have a lot of momentum carrying on into 2025, and we're excited to execute on our plans for investment and growth to deliver long term shareholder value.
Bill: I will now open it up for questions.
Speaker Change: Ladies and gentlemen, we will now begin our question and answer session. If you have dialed in and we'll talk to US a question again as a reminder, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question simply press Star. One again, we kindly ask everyone to limit themselves to one question and one follow up.
We will pause for a moment to compile the Q&A roster. Thank you.
Speaker Change: Your first question comes from the line of Jeff Schmitt with William Blair. Please go ahead.
Speaker Change: Hi, good afternoon.
Speaker Change: In the health care business clearly the tailwind is gone, but could you provide us with more details on client wins in the quarter and how does the pipeline look for 'twenty for.
Speaker Change: 25.
Speaker Change: Hopefully you meant headwinds are gone.
Speaker Change: That's right headwind that's right.
Speaker Change: Sorry.
Speaker Change: I hate to get confused this early.
Speaker Change: [laughter].
Speaker Change: But we want a couple of big license deal soon in Q4.
Speaker Change: Really improved Q4 revenues and we have a lot of momentum there is still a big health care companies.
Speaker Change: They can tend to be very.
Speaker Change: Very deliberate in their in their purchases, but we have some great technology and we have some great great pipelines and.
Speaker Change: And we have some huge health care companies that were making progress with so I think that we have a lot of opportunity.
Speaker Change: It is difficult in health care to be able to.
Speaker Change: <unk>.
Speaker Change: Really project on a 90 day basis on these enormous.
Speaker Change: Insurance and health care companies so.
Speaker Change: We tried to be as prudent and not too conservative and we try not to stick our neck out too far so.
Speaker Change: We're optimistic and we're very optimistic on a longer term basis.
Speaker Change: Great and then could you provide us with an update on the cross selling efforts with <unk>.
Speaker Change: And how big do you think that revenue opportunity could be.
Speaker Change: I think we currently have 75.
Speaker Change: Sure.
Speaker Change: Opportunities active opportunities that we have with our current clients.
Speaker Change: I believe we have already closed somewhere 15 20 of them.
Speaker Change: Our scripting of 20 others.
Speaker Change: I think it can be a pretty large opportunity.
Speaker Change: I have read some stuff in the industry that says <unk>.
Speaker Change: Class action lawsuits doubled.
Speaker Change: In 2024, so that would tend to be opportunity for us.
Speaker Change: And we're looking at the business to.
Speaker Change: To grow.
Speaker Change: High single to low double digits and so it should.
Speaker Change: In 2025.
Speaker Change: Pre upwards of 100 $110 million in revenue.
Great. Thank you.
Speaker Change: Your next question comes from the line of Alexia <unk> with Jpmorgan. Please go ahead.
Speaker Change: Hello, everyone Hi, Bill.
Speaker Change: Three months ago, when you provided us with the fourth quarter guidance.
Speaker Change: Expectations for organic growth at the midpoint was below 3% in Q.
Speaker Change: Delivered around 7% organic.
Speaker Change: Sounds like based on what you said in the prepared remarks, there was some deals that slipped from <unk> into <unk>.
Speaker Change: Wondering if there were any other surprises in the quarter it may be better demand environment or perhaps some deals that closed earlier than expected.
Speaker Change: Hi, Alexia I think Pete.
Speaker Change: The <unk> business.
Speaker Change: A number of the businesses performed very well and I think that that the close rates.
Speaker Change: On the opportunities we had was maybe a little bit better than we expected.
Speaker Change: And as we said the health care business also brought in a couple of pretty large license deals.
Speaker Change: I think overall the whole business was.
Speaker Change: Was a little stronger than we expected in <unk>.
Speaker Change: When things start hitting on on a number of cylinders the business looks pretty strong.
Speaker Change: Perfect. Thank you Bill.
Speaker Change: <unk>.
Speaker Change: Also.
Speaker Change: Kind of Directionally have you had the chance to maybe consider within the team with <unk> and with the rest of the team.
Around the recent decision by the European Commission took up the corporate reporting requirements by almost a quarter.
Speaker Change: Do you view regulation or deregulation as a risk to your.
Speaker Change: In our regulatory business our filing business.
Speaker Change: And what sort of long term you do have four.
Speaker Change: Where the industry is heading.
Speaker Change: Alexia I think Theres puts and takes on all of this kind of stuff.
Speaker Change: Less regulation, there all of our clients the faster they grow the faster they grow the better for us and although we make some money by helping them with regulation of course, we do but we would much prefer them to grow them to be overregulated.
Speaker Change: Makes a lot of sense. Thank you bill.
Speaker Change: Your next question comes from the line of Dan Perlin with RBC capital markets. Please go ahead.
Dan Perlin: Thanks, Good evening, Greg Congrats on a good quarter and another grandchild Bill.
I wanted to spend a moment if I could just.
Speaker Change: In terms of thinking through the investment cycle, you've invested a lot in products and solutions over the past 12 to 18 months.
Speaker Change: And Thats, obviously, you're starting to play out in the organic growth I'm trying to understand kind of the building blocks that you have for the 5% organic growth at the midpoint for 25, I know health care turned positive and like you said, there's some lumpiness to the license deals but.
Speaker Change: It seems like it's going to be just a lot more sustainable at those levels and I just want to.
Speaker Change: Can I get your thoughts on what your.
Speaker Change: Your view is there and maybe the key key components to that.
Dan Perlin: Yes, I mean, Dan you've been around for a while and you understand that.
Speaker Change: When we are.
Speaker Change: Heavily weighted towards licenses.
Speaker Change: And it's pretty lumpy.
Speaker Change: We are bringing in.
Speaker Change: Large scale services business continues to grow as more and more of their accounts more and more of their portfolios.
More and more of the services, we provide start going live.
Speaker Change: So we can have a client that's going to pay us $20 million a year.
Speaker Change: And it doesn't wrap up for 234 quarters.
Speaker Change: It might start at $2 3 million.
Speaker Change: A quarter and a six 8 million and then $10 million to $15 million and then get to 'twenty and so.
Speaker Change: Is that kind of a business. It's just we have increasingly larger.
Speaker Change: Footprint around the world.
Speaker Change: Five six years ago, we were spending $200 million to $250 million on sales and marketing.
Speaker Change: We're spending 550 to 600 million on sales market.
Speaker Change: We think some of it works.
Speaker Change: Sometimes we wonder, but we think some of it works.
Speaker Change: Yes totally to leasing results. So one other just quick thing if I could I've heard your conferences also speak about the superannuation opportunity in Australia, you've got this lift out would you mind, just maybe spend a minute kind of level setting what you think of that market how big it could be I know you said you had 5% market share so there's a huge opportunity but.
Speaker Change: I'm, just not as familiar with who the major players are there and what the competitive dynamic is and therefore, what youre out real opportunities. Thank you.
Speaker Change: Yes, again, we've been in in Australia, Australia in market for quite a while and I think that the superannuation is has been built based on some acquisitions that we've done like Iris and then also about the capabilities that we've built out in our own development cycles.
Speaker Change: They call superannuation the wall of money.
Speaker Change: So I think it really is.
Speaker Change: A pretty brilliant national.
Speaker Change: Program that Australia has put in then and it is something where.
Speaker Change: We think we have the best technology, we think we have a really good team we have some really great customers.
Speaker Change: And those are the kinds of things that really are the ingredients of increased growth increased.
Client access to our technology and increased profitability for us.
Speaker Change: Yes.
Speaker Change: Excellent. Thank you.
Speaker Change: Your next question comes from the line of Peter Heckmann with D. A Davidson. Please go ahead.
Peter Heckmann: Hey, good afternoon, everyone, sorry, someone poke their head ends.
Speaker Change: By someone Hasnt already asked my question, but.
Speaker Change: Cigna financial can you talk about that deal a little bit.
Speaker Change: Other you've included anything in your in your 2025 guidance.
Speaker Change: And then if you could maybe size that a little bit in terms of what should we be thinking about it in terms of like an annual revenue contribution.
Speaker Change: I don't know if we want to get quite as granular as an individual client contribution but it is a very large deal it would be probably in the top 20 in our in our client base and top 20 in essence, these are pretty big pretty big fish in our book.
Speaker Change: And.
Speaker Change: But theres a lot of work to be dominant and we need to focus on.
Speaker Change: That client satisfaction, and giving them increased capabilities capabilities as they becoming.
Speaker Change: Increasingly large.
Speaker Change: Money manager in retirement.
Speaker Change: Sure.
Speaker Change: Manager for a bunch of Australians and Thats what were focused on in.
Speaker Change: They've been a really great prospect moved very well.
Speaker Change: And like I said it should be.
Speaker Change: Very significant client for us.
Speaker Change: We're going to get most of the revenue from them in the second half of 'twenty five as we hope to get contracts finalized by the end of this quarter and begin the entire.
Speaker Change: The implementation process in Q2.
Speaker Change: Okay. Okay, and then just in terms of this most recent acquisition Fps trusts.
Brian: Brian Yes.
Brian: Any ideas in terms of like sizing your price that would you characterize that as a relatively small tuck in deal or something a bit bigger.
Brian: It is a small tuck in deal, but it also gives us a real capability that allows us to really leverage what we've done with trust suite and other things.
Brian: The merging of some of the stuff with.
Brian: Trust acquisition in Black Diamond amendments and other things, where we have really had a focused and are getting quite quite good.
Brian: Got it thank you.
Brian: Okay.
Speaker Change: Your next question comes from the line of Kevin Mcveigh with UBS. Please go ahead.
Kevin Mcveigh: Great. Thanks, so much and let me add my congratulations to you as well Bill.
Speaker Change: On your grandson.
Speaker Change: I guess.
Speaker Change: The midpoint of 2025 was 5%.
Speaker Change: What would be the low end of that organically and what would be the high end of that and any any kind of factors as to will get to the low end as opposed to the high end.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: I think in general the way we book Mark. These things is roughly $80 million in revenue on either side of that number. So I think thats a that $160 million is probably a reasonable range.
I think as Bill said earlier, what we feel good about is we have.
Speaker Change: All of our businesses are performing reasonably well.
Speaker Change: And so theres a lot of strength in that combined business and as well, bringing solutions together across the company. We think that we have more sales opportunities both for new new clients as well as <unk>.
Speaker Change: Getting deeper.
Speaker Change: With current client base. So there's a lot of positive but really to answer your question.
Speaker Change: The things that make us go a little bit towards the lower end of the range versus all but towards the higher end of the range really does come down to.
Speaker Change: New sales timing of implementations and making sure we get those converted and live fast enough for them to make a meaningful difference during the course of the year and a little bit organic things are macroeconomic things like deal volume and <unk> funds.
Speaker Change: Fund flows in and fund administration, but those are generally speaking not as important as the first two.
Speaker Change: Super Helpful. And then just real quick obviously, the health care business looks terrific. It sounds like there was some software sales.
Speaker Change: Is that a pretty good proxy like is there any type of leading indicators that lead to maybe larger contracts here.
Speaker Change: About 2020.
Speaker Change: Our loan into 'twenty sector or is that kind of independent.
Speaker Change: That's probably mostly independent.
Speaker Change: Kevin, but I do think that.
Speaker Change: What is going on in healthcare is as that.
Speaker Change: They are under pressure because the loss ratios in medical.
Speaker Change: <unk> have gotten.
Speaker Change: It's more expensive for them and Theyre looking for ways in which to have.
Speaker Change: Lower operating expenses.
Speaker Change: And <unk> Rx and a few other of our technologies or our are quite good at being able to manage our expenses and thats, something where they're going to have to do it because.
Speaker Change: The entire health care ecosystem.
Speaker Change: Is going to be probably turned a little bit upside down.
Speaker Change: This new administration starts to make changes to the Medicare and Medicaid systems.
Speaker Change: I don't think theyre going to a lower ROE lower the expenses, but I do think they're going to focus on efficiency and effectiveness.
Speaker Change: Thanks, a lot of sense congratulations on the really terrific results.
Speaker Change: As a reminder, if you are dialed in and would like to ask a question. Please press star one.
Speaker Change: Your next question comes from the line of Andrew Schmidt with Citi.
Speaker Change: Please go ahead.
Andrew Schmidt: Hey, guys. Thanks for taking my questions and congrats on the organic growth here, it's great to see.
Speaker Change: Maybe just dig into global App for a second nice to see the acceleration there maybe we could just unpack the drivers.
Andrew Schmidt: This quarter over the past few quarters across private.
Andrew Schmidt: Private market hedge funds real assets any callouts in terms of the growth drivers obviously kneeland.
Andrew Schmidt: Neil and back office.
Andrew Schmidt: The opportunities are thanks, guys.
Andrew Schmidt: I think.
Andrew Schmidt: Lot of it is just a continuation of what we've seen in the last couple of years, so private markets private credit and real estate.
Andrew Schmidt: <unk> continues to be very strong for us.
Andrew Schmidt: And in that space in particular, it's both opportunities with existing very large funds that are letting us in now and given us more and more as well as new funds that for the most part outsource on day, one and we still think there's a lot of.
Andrew Schmidt: New opportunity in that market, our hedge fund business is also performing and performed really well in 2024, and that's a combination of new client wins as well as we're now fortunate in the sense that we have some of the biggest names in the industry and they have tended to attract almost a disproportionate share of the fund allocation. So our clients are.
Andrew Schmidt: Getting bigger that helps us we are winning more and we have a pretty broad opportunity across both hedge and private markets.
Speaker Change: Thats, great hero I appreciate that and then.
Andrew Schmidt: Maybe just.
Speaker Change: Two other questions that separate areas I'll ask them upfront just global up how to think about the range of outcomes for 'twenty five in terms of baking in and then just separately, obviously automation continues to be a big opportunity for you guys. Just maybe give us an update in terms of where you're at in terms of automating key key functions.
Speaker Change: I know some of that is reinvesting in product et cetera, but where we're at in terms of that initiative.
Speaker Change: Thanks, a lot guys really appreciate it.
Speaker Change: Yes, just building on what Rahul said I mean.
Speaker Change: We honestly believe that we are the best.
Speaker Change: Fund administrator in the world both for hedge assets is about <unk>.
Speaker Change: Private assets, whether it's equity or credit or others.
Speaker Change: So having the expertise that we have and the clients that we have who are demanding.
Speaker Change: Which improves us.
Speaker Change: When you when you.
Speaker Change: When you play in the biggest games.
Speaker Change: Get better or you don't get to play in the biggest games anymore. So most of the large scale.
Speaker Change: Macro hedge funds are our clients and I believe we will continue to have the MSR clients and measurable set as they.
Speaker Change: As they get bigger they give some real star portfolio managers and those star portfolio managers, sometimes spin out and that helps us a lot again.
Speaker Change: That's why we always say that we much prefer that our clients grow and that they get overregulated.
Speaker Change: We are much more and really helping our clients.
Speaker Change: Access new markets.
Speaker Change: The range of what they want to invest in always.
Speaker Change: At the broadest level, if there are clients and that there are no geographic.
Speaker Change: Limitations. If you are a client of us. So we think those are very valuable to people and I think that we have won a lot of business because we have invested very heavily in being able to deliver those capabilities.
Speaker Change: Capabilities.
Speaker Change: Got it. Thanks, so much bill and then just on the automation side.
Speaker Change: That's primarily been driven by Blue proven I think we're up to about 550.
Speaker Change: What we call digital workers.
Speaker Change: Yes.
Speaker Change: The savings for us are.
Speaker Change: Moving above a $150 million towards $200 million.
Speaker Change: And savings.
Speaker Change: Another thing we've done if you look at us to know.
Speaker Change: I think about five six years ago, we spent.
Speaker Change: Like I said $200 million to $250 million on sales marketing that we spend 550 to 600 million on sales marketing. If you look at R&D, it's fairly similar.
Speaker Change: We're spending way more than than than we did five six years ago, and it's a little bit because we decided to rather than drive up our margins. We wanted to reinvest in the business and try to drive organic revenue growth and you got to do that with new products New services.
Speaker Change: And it's not without risk of it.
Speaker Change: It's all.
Speaker Change: We don't build great software.
Speaker Change: Oftentimes we're successful in building great software and other times, we're not quite as successful in building great software. So it's a.
Speaker Change: It's a difficult business and we focus on it and we think thats something that gives us a competitive advantage and we will continue to give us competitive advantage.
Speaker Change: Yes.
Speaker Change: Got it thanks, so much bill.
Speaker Change: As there are no further questions at this time that concludes the Q&A session for today I would now like to turn the call over to Bill stone for closing remarks.
Speaker Change: Again, we really appreciate you all being on the call.
Speaker Change: I had to bring up my new grandsons, we wouldn't pick on me, but.
Speaker Change: I think we had good enough numbers that we didn't have to worry about that too much.
Speaker Change: To have another one soon so anyway I really appreciate you being on and I think that.
It's always amazing when it's only Rahul and I'd have to answer and Brian Don that must mean, he had really good numbers in the quarters.
Speaker Change: Enjoy your week, thanks for thanks for being on.
Speaker Change: This concludes today's meeting thank you for your participation you may now disconnect.
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Speaker Change: Thank you.
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