Q2 2025 SS&C Technologies Holdings Inc Earnings Call
Operator: Ladies and gentlemen, thank you for standing by. Today's conference call will begin momentarily. Until that time, your lines will again be placed on music hold, and we thank you for your patience. Ladies and gentlemen, thank you for standing by.
Ladies and gentlemen, thank you for standing by today's conference, call Will begin momentarily. Until that time your lines will again be placed on music hold and we thank you for your patience.
Abby: My name is Abby and I'll be your conference operator today.
Justine Stone: At this time, I would like to welcome everyone to the SS&C Technologies second quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise.
Abby: Ladies and gentlemen, thank you for standing by. My name is Abby, and I'll be your conference operator today.
Speaker Change: At this time, I would like to welcome everyone to the FSN C Technologies second quarter 2025 earnings call.
Justine Stone: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you.
Speaker Change: Alliance have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number 1 on your telephone keypad.
Speaker Change: If you would like to withdraw your question, press star 1 again.
Justine Stone: And I would now like to turn the conference over to Justine Stone, Head of Investor Relations. You may begin. Welcome and thank you for joining us for our Q2 2025 earnings call. I'm Justine Stone, Investor Relations for SS&C.
Speaker Change: The conference over to Justine Stone head of investor relations, you may begin.
Justine Stone: 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: Before we get started, we need to review the Safe Harbor Statement. Please note the 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 Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995.
Justine Stone: Welcome, and thank you for joining us for our Q2 2025 earnings call. I'm Justine Stone investor relations for ssnc with me today is Bill Stone, chairman and chief executive officer Rahul kanoa, president and Chief Operating Officer and Brian shell, our Chief Financial Officer
Justine Stone: Before we get started, we need to review the Safe Harbor statement. Please note the 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 Safe Harbor. Provisions under the private Securities. Litigation Reform, Act of 1995
Justine Stone: 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 pay, which is on file at the SEC and can also be accessed on our website. These forward looking in statements represent our expectations only as of today. July 23rd 2025
Justine Stone: During today's call, we'll be referring to certain non-GAAP financial measures or reconciliation of these non-GAAP financial measures to comparable GAAP financial measures. This is included in today's earnings release, which is located in the Investor Relations section of our website at www.ssdtex.com.
Justine Stone: While the company may elect to update these forward-looking statements, it's specifically disclaimed any obligation to do so.
Bill Stone: I will now turn the call over to Bill. Thanks Justine and welcome everyone. Our second quarter results include record adjusted revenue of $1,537,000,000 800,000 up 5.9% and adjusted earnings per share of $1.45, a 9.8% increase. We delivered record adjusted consolidated EBITDA passing $600 million.
Justine Stone: During today's call, we will be referring to certain non-gaap Financial measures or reconciliation of these non-gaap Financial measures to comparable gas. Financial measures is included in today's earnings release, which is located in the investor relations section of our website at www.sfc.edu.
Bill: I will now turn the call over to Bill.
Bill: Thanks Justine and welcome everyone. For second quarter results include records, adjusted revenue of
Bill: A billion 537 million.
800,000 up 5.9% and adjusted earnings per share of 1.45 a 9.8% increase.
Bill Stone: in the quarter for the first time. up 7.4% resulting in a quarterly adjusted consolidated EBITDA margin of 39%. Second quarter adjusted organic revenue growth was three and a half percent with performance driven by Globop, GIDS and WIT businesses. Globop organic growth of 7.3% was driven by double-digit growth in private markets and retail alternatives. gets continues to win continues to win key clients and deliver High-Level Professional Service Health finished with a quarter with flat organic growth. Q2 financial services recurring revenue growth was 3.9%, which includes software enabled services and maintenance. Internationally, we're seeing strength in Europe, Australia and the Middle East.
Bill: We delivered record adjusted Consolidated, Eva passing 600 million.
Bill: In the quarter for the first time.
Bill: Up 7.4% resulting in a quarterly adjusted Consolidated, ebita margin of 39%.
Bill: Second quarter, adjusted organic Revenue, growth was 3 and a half percent with performance driven by Globe, Opie gets and width businesses.
Bill: Blow back, organic growth of 7.3% was driven by double digit growth in private markets and Retail alternatives.
Bill: This continues to win, continues to win Key clients and deliver.
Bill: High-level Professional Services Health finish with a quarter with flat organic growth. Q2 Financial Services, recurring Revenue growth was 3.9%.
Bill: Which includes software enabled services and maintenance routines?
Bill Stone: Spanning multiple businesses. This broad success reflects a positive trend of increased international win rates attributable to the investments we have made over past several years and our ability to provide increasingly sophisticated services. Overall, we deliver our service with a client focused approach and our retention rate is stable at 97%.
Internationally. We were seeing strength in Europe, Australia and the Middle East.
Bill: Spanning multiple business units.
Bill: This broad success, reflects a positive trend of increased International win rates.
Bill: Attributable to the Investments. We have made over.
Bill: The past several years and our ability to provide increasingly sophisticated services.
Bill Stone: For the six month into June 30 2025 cash from operating activities was $645.1 million up 14% year over year. In Q2, we bought back 3.4 million shares for $269 million at an average price $77.99 We will continue to buy back shares opportunistically and recently grew our share repurchase authorization to 1.5 billion We're continuously investing in our AI strategy, we believe Some of our most significant competitive advantages lies in partnering Blue Prism with our business units to identify workflows, build new AI agents, and deploy them internally. quarter our approach successfully resulted in our first AI agent sale to an insurance conglomerate in the Midwest.
Bill: Overall, we deliver our service with a client focused approach. In our retention rate is stable at 97%.
Bill: for the 6-month end of June 30th 2025 cash from operating activities was 645.1 Million up 14% year-over-year
Bill: In Q2, we bought back, 3.4 million shares for 269 million.
Bill: At an average price.
Bill: Of 77.99.
Bill: We will continue to buy back shares opportunistically and recently, he grew our share reports as authorization to 1.5 billion.
we are continuously investing in our AI strategy, We Believe
Bill: Some of our most significant competitive advantages lies in partnering blue prism, with our business units to identify workflows build new AI agents and deploy them internally.
Bill Stone: Client processes hundreds of credit agreements monthly, and the AI agent reduces manual effort by up to 80% Speeds up processing by 3x and improves accuracy to 99% plus. We believe this win is indicative of future opportunities across our 22,000 strong client base.
Bill: Quarter, our approach successfully resulted in our first AI agent sale to an insurance conglomerate in the Midwest.
Bill: Client processes. Hundreds of credit agreements, monthly and the AI agent reduces manual effort by up to 80%
Bill: speeds up processing by 3x and improves actuate accuracy to 99% Plus
Rahul Kanwar: I'll now turn it over to Rahul to discuss the quarterly award. Thanks, Bill. We had a solid second quarter with 3.5% organic revenue growth and 50 basis points of margin expansion year over year. Our fund administration business, Globop, continues to show strength, with private markets growing over 10%, driven by the complexity of credit and hybrid funds, as well as family offices. Retail alternatives, while still a smaller part of this business, is growing 20%, with substantial runway. But Tatea, our class action services business, won 30 new clients in Q2, with two-thirds of them being SS&C client cross-sections.
Bill: We believe this win is indicative of future opportunities across our 22,000, strong client base.
Bill: I'll now turn it over to Rahul to discuss the quarter in more detail.
Rahul: Thanks Bill.
Rahul: We had a solid second quarter with 3 and a half percent organic Revenue, growth and 50 basis points of margin expansion year-over-year.
Rahul: 20% with substantial Runway.
Rahul: But today, our class action services business won 30 new clients, in Q2 with 2/3, of them being ssnc client, cross status.
Rahul Kanwar: Our newer software solutions continue to gain traction. Genesys is well positioned to support both new and existing customers with multiple implementations underway. Our most recent client go live was a 75 billion plus bank trust in the Midwest, where we replaced a competitor. Similarly, Singularity has had recent success winning large insurance companies. We are focused on continuing to enhance asset coverage and functionality, and are launching new features in bank loans, commercial mortgage loans, and enhanced income monitoring tools. We have noticed previously that the strength in our business and the diversification of our revenue across product lines and types of customers often allows us to overcome macroeconomic challenges that may arise and still perform in a predictable way.
Rahul: Our newer software Solutions, continue to gain traction, Genesis is well, positioned to support, both new and existing customers with multiple implementations underway.
Rahul: Our most recent client go live was a 75 billion plus Bank, Trust in the midwest, where we replaced the competitor.
Similarly, Singularity has had recent success, winning large insurance. Companies, we are focused on continuing to enhance asset coverage, and functionality, and are launching new features. In bank loans, commercial mortgage loans and enhanced income monitoring tools.
Rahul: We have noticed, previously that the strength in our business, and the diversification of our Revenue, across product lines, and types of customers, often allows us to overcome macroeconomic challenges, that may arise.
Rahul Kanwar: We proved that this quarter with success despite interlinks having some macroeconomic challenges including declines in global deal volume and active deal flow in Q2.
Rahul: And still perform in a predictable, predictable way.
Rahul Kanwar: Early indicators do show activity is picking up in the second half of the year and our brand new platform Deal Center combines the power of AI with an enhanced user experience and increases our win rate.
Brian Schell: With that, I'll turn it over to Brian to walk through the financials. Thanks Rahul and good day everyone. Unless noted otherwise, the quarterly comparisons are Q2 2024. As disclosed in our press release, our Q2 2025 GAAP results reflect revenues of $1.537 billion, net income of $181 million, and diluted earnings per share of $0.72. Our adjusted non-GAAP results include revenues of $1.538 million, an increase of 5.9%, and adjusted diluted EPS of $1.45, a 9.8% increase. The adjusted revenue increase of $85 million was primarily driven by incremental revenue contributions from globop of $28 million, WIT of $15 million, acquisitions of $21 million, and a favorable impact from foreign exchange of $14 million.
Rahul: we proved that this quarter with success, despite interlinks having some macroeconomic challenges, including declines and Global deal volume and active deal flow in Q2 early indicators, do show activity is picking up in the second half of the year and our brand new platform deals Center, combines the power of AI with an enhanced user experience and increases our win rates
With that, I'll turn it over to Brian to walk through the financials.
Thanks, for holding good day, everyone. Unless noted otherwise, the quarterly comparisons are Q2 2024.
Rahul: As disclosing our press release our Q2 2025 Gap results, reflect revenues of 1.537 billion. Net, income of 181 million, and diluted earnings per share of 72 cents.
Rahul: Our adjusted non-gaap results. Include revenues of 1.538 billion and increase of 5.9% and adjusted diluted EPS of a $1.45 a 9.8% increase.
Brian Schell: As a result, adjusted organic revenue growth on a constant currency basis was 3.5%, and core expenses increased 3.1%, or $28 million. Adjusted Consolidated EBITDA was $600.4 million, reflecting an increase of $42 million, or 7.4%. at a margin of 39%, a 50 basis point expansion. Note EBITDA of $600.4 million is a quarterly record high for SS&C. Net interest expense for 2Q25 was $106 million, a decrease of $8 million, primarily reflecting lower short-term pay. Adjusted net income was $366 million up 10.2% and adjusted diluted EPS was $1.45, an increase of 9.8%. Our effective non-GAAP tax rate was 24%.
Rahul: The adjusted Revenue increase of 85 million was primarily driven by incremental Revenue contributions from Globe off of 28 million width of 15 million Acquisitions of 21 million and a favorable impact from foreign exchange of 14 million, as a result, adjusted organic Revenue growth on a constant currency basis was 3 and a half percent and core expenses increased 3.1% or 28 million.
Rahul: Adjusted Consolidated ibaa with 600.4 million reflecting, an increase of 42 million or 7.4%.
And a margin of 39%. A 50 basis point expansion. Note, ibida of 600.4 million is a quarterly record high for ssnc.
Rahul: Negative expense for 2q, 25 was 106 million. A decrease of 8 million primarily reflecting lower short-term interest rates.
Rahul: Adjusted. Net income was 366 million up 10.2% and adjusted diluted. EPS was 1.45 an increase of 9.8%.
Brian Schell: Note for comparison purposes, we have recast the 2024 quarterly adjusted net income to reflect the full year effective tax rate of 23.1%. Cash flow from operating activities grew 14%, which was driven by growth in earnings. Our year-to-date cash flow conversion was 88%, compared to 85% last year. SS&C ended the second quarter with $480 million in cash and cash equivalents and $6.9 billion in gross debt. SS&C's net debt was $6.4 billion, and our last 12-month consolidated EBITDA was $2.4 billion. Resulting in that leverage ratio is 2.72 times.
Rahul: All right, effective. Non-gaap tax rate was 24% note for comparison purposes. We have recast the 2024 quarterly adjusted income to reflect the full year effective tax rate of 23.1%.
Rahul: Cash flow from operating activities grew 14%, which was driven by growth in earnings, our year-to date cash. Flow conversion was 88% compared to 85% last year ssnc ended. The second quarter with 480 million in cash and cash, equivalents and 6.9 billion in Gross debt.
Rahul: SS and C's. Net debt was 6.4 billion and our last 12-month Consolidated ibida was 2.4 billion dollars.
Rahul: Resulting that leverage ratio is 2.72 times.
Brian Schell: As we look forward to the third quarter and the remainder of the year with respect to guidance, we will continue to focus on client service and assume that retention rates will be in the range of our most recent results. We continue to manage our business to support our long-term growth and manage our expenses by controlling and aligning variable expenses, increasing productivity to improve our operating margins, and effectively investing in the business through marketing, sales, and R&D. Specifically, we have assumed in our guidance interest rates to remain at current levels, an effective tax rate of approximately 24% on an adjusted basis, capital expenditures to be in the 4.1 to 4.5% of revenues, and no impact related to the Callistone acquisition.
Rahul: As we look forward to the third quarter and the remainder of the year, with respect to guidance, we will continue to focus on client service and assume that retention rates will be in the range of our most recent results.
Rahul: Continue to manage our business to support our long-term growth and manage our expenses by controlling and aligning variable expenses. Increasing productivity improve our operating margins and effectively investing in the business, through Marketing sales. And R&D specifically, we have assumed in our guidance, interest rates to remain at current levels and effective tax rate of approximately 24% on adjusted basis.
Brian Schell: For the third quarter of 2025, we expect revenue to be in the range of $1.525 billion to $1.565 billion, and 4.5% organic revenue growth at the midpoint. Adjusted Net Income in the range of $364 to $380 million. Interest expense, excluding amortization of deferred financing costs and original listed discount in the range of $101 to $103 million. Diluted shares in the range of $252.5 to $253.5 million, and adjusted diluted EPS in the range of $1.44 to $1.50. For the full year 25, we are raising our top line guidance by $15 million at the midpoint and now expect revenue to be in the range of $6.143 to $6.243 billion and 4.5% organic revenue growth at the midpoint.
Capital expenditures to be in the 4.1 to 4.5% of revenues and no impact related to the calstone acquisition.
Rahul: For the third quarter of 25, we expect Revenue to be in the range of 1.525 billion to 1.565 billion and 4.5% organic Revenue growth at the midpoint,
Rahul: Adjust the net income and the range of 364 to 380 million.
Rahul: 100 1 to 103 million.
Rahul: Diluted shares in the range of 252.5 to 253.5 million.
Rahul: And adjusted, the looted Epps and the range of 1.44 to 1.50.
Brian Schell: For the full year 25, we're also raising our earnings guidance. Specifically, we expect adjusted net income to be in the range of $1.462 to $1.542 billion, diluted shares in the range of $251.5 to $254.5 million, adjusted diluted EPS in the range of $5.82 to $6.06, up $0.10 at the midpoint, and cash from operating activities to be in the range of $1.479 to $1.559 billion. Our 2025 guidance reflects our solid results in the first half of 2025, with a continued positive outlook for the remainder of the year.
Rahul: For the full year. 25, we are raising our Topline guidance by 15 million at the midpoint. And now expect Revenue to be in the range of 6.143 to 6.243 billion and 4.5 organic Revenue growth at the midpoint
Rahul: For the full year. 25, we're also raising our earnings guidance. Specifically, we expect that Justin net income to be in the range of 1.462 to 1.542 billion diluted shares in the range of 251.5 to 254.5 million.
Rahul: Adjusted diluted EPS in the range of 5.82 to 6.6 cents, up, 10 cents and the midpoint and cash from operating activities to be in the range of 1.479 to 1.559 billion.
Bill Stone: And now, back to Bill. Thanks, Brian.
Bill: Our our 2025 guidance, reflects our solid results, in the first half of 2025, with a continued positive outlook for the remainder of the year. And now back to Bill,
Bill: Thanks Brian.
Bill Stone: On Monday, we announced a definitive agreement to acquire Callistone, expected to close in Q4 of this year. We're excited about the attractive geographies, additional capabilities that we can provide in the ETFs, digital assets, and money market products.
Bill Stone: and Crossella. The acquisition is accretive to revenue growth EBITDA margin and will be EPS accretive within 12 months. This is in line with our capital allocation strategy of finding high quality businesses, which are a strategic fit.
On Monday, we announced that a definitive agreement to acquire, callosum, expected to close in Q4 of this year, we're excited about the attractive geographies additional capabilities that we can provide in the ETFs digital assets and money market products.
Bill: And cross-sell opportunities.
The acquisition is a creative Revenue, growth ibida, margin, and will be EPS secretive within 12 months.
This is in line with our Capital allocation strategy of finding high quality businesses.
Bill Stone: I will now open it up for questions. Thank you. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 a second time.
Bill: Which are a strategic fit.
Bill: I will now open it up for questions.
Bill: Thank you.
Bill: If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue.
Operator: If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. To be able to take as many questions as possible, we ask that you please limit yourself to one question and one follow-up. Again, it is star 1 if you would like to join the queue.
Bill: If you would like to withdraw, your questions simply press star 1 a second time.
Speaker Change: If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute. When asking your question to be able to take as many questions as possible. We ask that you, please limit yourself to 1 question and 1 follow-up.
Jeff Schmidt: And our first question comes from the line. of Jeff Schmidt with William Blair. Your line is open. Hi, thank you. On the Callistone deal, could you discuss the revenue synergy potential here? You've called out some cross-selling opportunities. Where do you see the biggest cross-selling opportunities and, you know, could you quantify it at all?
Speaker Change: Again it is star 1. If you would like to join the queue,
Speaker Change: And our first question comes from the line.
Speaker Change: Of Jeff Schmitt with William Blair. Your line is open.
Hi. Thank you on the call. Stone deal, could you discuss the revenue Synergy potential here? Um, you, you called out some cross-selling opportunities. Where do you see the biggest cross-selling opportunities in, you know, could you quantify it at all?
Bill Stone: Well, it's still early, I wouldn't say that we have anything that that I can pinpoint. But they have 4,500 clients. And, you know, we have probably 10,000 that that could be addressable with those 4,500 in things like crypto and, and, and digital other digital assets, as well as ETFs. So they're very strong ETFs. And so we have a pretty nice ETF business ourselves. I think the cross-selling and up-selling in that space will be pretty attractive. And we would expect, you know, Callistone, which has been growing... You know, in excess of 10, closer to 15% for the last several years, that we'll have an opportunity to perhaps accelerate that.
Speaker Change: Well it's still early I wouldn't say that we have anything that that I can pinpoint but they have 4500 clients and you know, we have probably 10,000 that that could be addressable with those 4500 and and things like crypto and and um and and digital other digital assets.
Speaker Change: As as well as uh ETFs. So they're very strong in ETFs and so what we have a pretty nice ETF business ourselves
Speaker Change: the uh,
Speaker Change: The cross selling and upselling in in that space will be pretty attractive.
Justine Stone: And callous Stone, which has been growing.
Justine Stone: You know, in excess of 10 closer to 15% for the last several years.
Justine Stone: uh, that we'll have an opportunity to perhaps, um,
Justine Stone: accelerate that
Bill Stone: Okay, and then capital expenditures have been over 4% of revenues the last two years. You're expecting it again, this year, previously, they're more like two to 3%. And I was just curious how much of that increase is going to kind of higher maintenance cap ex versus investments in growth and. Well, I would say that, you know, we, we have a large suite of products. Technology Products, and so those take some of those R&D dollars. And also, we're moving into different products and services. You know, we've had considerable success in Australia, and we have built software specifically for that market.
Speaker Change: Okay. And then Capital expenditures have been over 4% of revenues the last 2 years. Um, you're expecting it again this year previously, they're more like 2 to 3% and I was just curious how much of that increase is going to kind of higher maintenance, capex versus investments in growth.
Justine Stone: and,
Justine Stone: well, I would say that, you know, we we have a
Justine Stone: A, a large suite of products, technology products. And so those take
Justine Stone: Those take some of those um R&D dollars and and also we're we're moving into different products and services. You know, we've had
Justine Stone: Considerable success in Australia.
Bill Stone: And we do that across any number of our geographies and any number of our product suites. As Rahul said, we have significant development in private assets and retail alts in our Globe Op division. And we also have brought out Genesis in our Wealth and Investment Technology division. And we also are still Investing in Dilwani RX and we have what we think are lots of opportunities.
Uh, and and we have built software specifically for that market.
Justine Stone: And we do that.
across any number of our geographies and any number of our of our product Suite says,
Speaker Change: As as Rahul said you know we're we have significant development in private assets and Retail alts.
Speaker Change: Uh and our wealth and investment technology division. So and we also are still um,
Speaker Change: Uh, investing in dhwani RX. And and we have what we think are lots of opportunities.
Bill Stone: Okay, so it sounds like more, I guess, investments in growth and should we expect it to kind of stay up at these higher levels going forward? Well, Anthony Caiafa, who's our CTO, thinks it will. As we try to slow him down, you know. You know, technology is our seed corn. So we got to be careful that we don't, we don't, you know, cut off our nose to spite our face. So, you know, we're going to continue to invest in our business. And, and, you know, we're generating lots of cash, we're paying down debt, we're buying back stock, we're looking at acquisitions.
Speaker Change: Okay, so it sounds like more, I guess, investments in in growth, and should we expect it to kind of stay up at these higher levels going forward?
well, Anthony kioa who's our CTO thinks it will
Speaker Change: so, as much as we try to slowing down, you know,
Unknown Attendee: But we're not, we're not going to starve our development teams or our service Okay, great. Thank you.
Speaker Change: technology is our Seed corn. So we got to be careful that we don't, um, we don't, you know, cut off our nose to spider face. So, you know, we're going to continue to invest in our business and, and, you know, we're, we're generating lots of cash. We're paying down debt. We're buying back stock. We're looking at acquisitions.
Speaker Change: But we're not, we're not going to starve our development teams. Our services teams
Speaker Change: Okay, great. Thank you.
Alexei Gogolev: And our next question comes from the line of Alexei Gogolev with J.P. Morgan. Thank you very much for letting me ask the question.
Speaker Change: Our next question comes from the line of Alexey gov with JP Morgan. Your line is open.
Brian Schell: First of all, Brian, organic growth guidance for 2Q was ahead of your initial forecast, and yet you almost did not change your organic revenue outlook for a full year. and it still sort of remains around 4.5%. Mechanically, this implies that you're now assuming slightly weaker organic growth in the second half.
Alexey Gov: Uh, thank you very much for letting me ask a question. Uh, first of all Brian, uh, organic growth guidance for 2q was ahead of your initial forecasts. And yet you almost did not change your organic Revenue outlook for a full year um and uh it's still sort of remains around.
Speaker Change: 4.5%.
Brian Schell: Were there any deals that were pulled forward that resulted in better performance in the quarter? No, I think just thanks for the question. I think if you look at kind of in the aggregate, if you look at the first half and versus the second half, they're roughly equivalent as far as organic growth grows, obviously, and we, you know, we continue to go against higher and higher quarterly numbers, which, you know, it's obviously in 2024. So I think the our expectations around the second half continue to be strong, you know, all in into the the overall aggregate for the four and a half percent for the full year.
Mechanically this implies that you're now assuming slightly weaker organic growth in the second half.
Speaker Change: Uh, were there any deals that were pulled forward that resulted in better performance in the quarter?
Speaker Change: No, I think, just thanks for the question. I think, if you look at kind of in the aggregate, if you look at the first half and versus the second half, they're roughly equivalent as far as organic growth grows. Uh, obviously and we, you know, we continue to go against higher and higher uh, quarterly numbers, um, which you know, is obviously in in 2024. So um, I think the
Speaker Change: Our expectations around the second half, we continue to be strong. Um you know all in into the uh the overall aggregate for the 4 and a half percent for the full year.
Brian Schell: Okay, thank you, Brian.
Bill Stone: And then another question related to acquisitions, I don't know, maybe Bill. Perhaps for you, what would you see as a comfortable level of leverage? Should you see any potential attractive deals beyond the one that you announced earlier this week? Yeah, I mean, I would be comfortable for us to be in the mid fours, you know, so that, you know, we're 272. Now, if you go into 450, you know, that's almost two turns, which would be, you know, 4.8 billion. You know, plus we would have some cash to be able to probably do $5 billion acquisition.
Speaker Change: Okay. Thank you, Brian. And then uh, another question uh related to Acquisitions. I don't know, maybe bill. This is perhaps for you. Uh What uh uh would you see as a comfortable?
Level of, uh, Leverage.
Speaker Change: Should you see any potential attractive deals Beyond? Uh, the 1 that you announced earlier this week?
Speaker Change: Yeah. I mean, I I I would be comfortable for us to be in the mid fours, you know? So that, you know, 272. Now if you go into 450, you know, that's almost 2 turns, which would be, you know, 4.8 billion.
Bill Stone: You know, so it depends how good the acquisition is. We're not afraid to run the business with With the debt load, because we're a very sticky business, we have great relationships with our clients, our clients are growing. And we're in the sweet spots of financial services, we think.
Speaker Change: You know, plus we would have some cash and uh to be able to probably do 5 billion dollar acquisition.
Speaker Change: You know, so it depends how good the acquisition is.
Speaker Change: you know, we're not afraid to run the business with um,
Speaker Change: With the debt load because we're very sticky business. We have great relationships with our clients.
Speaker Change: Our clients are growing and um, and and we're in the sweet spot. So, uh, Financial Services we think.
Unknown Attendee: Thank you, Bill.
Thank you, Bill.
Kevin Mcveigh: And our next question comes from the line of Kevin McVeigh with UBS. Your line is open. Great, thank you. And congratulations on the results in the deal. Bill, I think you mentioned, you know, within GIDS, a high level of professional services. Is there any way to think about, number one, what percentage of the revenue is professional services? And then is that a leading indicator? You know, is it professional services? Can you do the work and then ultimately, it pivots to revenue? Is that a way to think about it? And typically, what's the lead time? I mean, I know some of the, the, the winds are getting bigger, but just, are we thinking about that right?
McVay with UBS, your line is open.
McVay: Great, thank you. And congratulations on the results in the deal. Um, bill I think you mentioned, you know, within gids a high level of Professional Services, is there any way to think about number 1? What percentage of the revenues Professional Services and then is, is that a leading indicator, you know? Is it Professional Services? Can you do the work? And then ultimately it pivots to to revenue is is that a fair way to think about it and typically, what's the lead time? I mean I know some of the, the the the winds are getting bigger. But just are we thinking about that, right?
Bill Stone: Well, I think, you know, that the professional services is really to, to build out the service or build out the technology to meet the demands of any of these specific clients. Generally, that's a three to six month process. And generally, we get paid for that three to six, which is revenue. But then it usually turns into a services contract where, you know, we do the work. Like with Insignia, we rebadge 1300 people from Insignia to us. So, you know, our charge is to help them grow and also to manage our expenses in a way that it becomes increasingly profitable.
well I I think you know the the Professional Services is is really to to build out the service or build out the technology to
McVay: To meet the demands of of any of these specific clients?
McVay: Generally that's a 3 to 6 month process and generally we get paid for that 3 to 6, which is revenue.
Uh, but then it usually turns into a Services contract where, you know, we do the look, we do the work like we Insignia. We we rebadge 1300 people from Insignia to us.
McVay: I think it becomes increasingly profitable.
Unknown Attendee: that's helpful. And I think the other thing you mentioned was the EBITDA, obviously at a record high.
Brian Schell: Any way to think about this, maybe more, Brian, just the pacing of the seasonality on that, you know, obviously, it's a Q2, which is a terrific outcome, but any shift in kind of the seasonality of the business and how we're thinking about the EBITDA over the course of the year? As you look at, you know, the course of the revenue growth over time, right, so, and some of that will depend upon, you know, the revenue growth and the various kind of business units and where it comes from. Obviously, with REVREC and 606, if you get a little bit more revenue coming in from some of those businesses, obviously has a higher margin within that particular quarter in, you know, the time that it's booked.
McVay: It's helpful. And I, I think the other thing you mentioned was that you bit that obviously at a record high. Um, any way to think about this maybe more Brian, just the, the pacing of the seasonality on that, you know, obviously it's a Q2, um, which is a terrific outcome, but any shift in kind of the seasonality of the business and, and how we're thinking about the eaeu over the course of the year.
Brian Schell: So, you tend to get a little bit more of that revenue in Q4, so you get that little bit of lift, all else being equal for the, I'll call it kind of that core infrastructure expense doesn't really adjust the same way up. So, you'll get a little bit of that pickup, so you just kind of, we look at it over the different lines of businesses and roll that up over time. And obviously, as you, you know, continue to grow the revenues over different periods of time, you're just continuing to leverage your scale, right? It's just, you know, our goal is to, you know, optimally is to grow the revenues faster than expenses, and you just have a little bit of that revenue seasonality in Q4.
McVay: As you look at, you know, the course of the revenue growth over time, right? So and and some of that will depend upon, you know, the revenue growth from the various kind of business units and where it comes from, obviously with rev wreck and 606, if you get a little bit more, uh, Revenue coming in from some of those businesses obviously, has a higher margin within that particular quarter in, you know, at the time that it's booked. So you tend to get a little bit more of that Revenue in Q4, so you get a little bit of lift. Um, all else being equal, uh, for the I'll call it kind of that core infrastructure expense doesn't really adjust the same way up, so you'll get you'll get a little bit of that pickup. Um, so you just kind of, we look at it over the different lines of businesses and roll that up over time. And obviously as you you know, continue to grow the revenues over different periods of time. You're just continuing to leverage your scale, right? It's just, you know, our goal is to, you know, optimally is to grow the revenues faster than expenses and you just have a little bit of that Revenue.
Brian Schell: So, you tend to get a little bit of pickup in the UADOM margin. Thank you.
Under seasonality in Q4 so you can tend to get a little bit of pickup in the UA margin.
Speaker Change: Helpful. Thank you.
Dan Perlin: And our next question comes from the line of Dan Perlin with RBC Capital Markets. Your line is open. Thanks. Good evening. I was wondering if you could comment on what Batia is actually growing at like revenue growth rates in the quarter kind of on a year over year basis as we're kind of contemplating that rolling into organic growth in the fourth quarter. Yeah, it's basically growing at a historical growth rate, because I know that was obviously we didn't own it during the second quarter. So it's growing at, you know, kind of that low double digit growth rate.
And our next question comes from the line of Dan planned with RBC Capital markets. Your line is open.
Speaker Change: Thanks, good evening. Um, I was wondering if you could comment on on what beta is actually growing at like Revenue, growth rates, um, in the quarter kind of on a year-over-year basis, as we're kind of contemplating that rolling into organic growth, in the fourth quarter,
Speaker Change: Yeah, if if you go ahead now, go ahead. Yeah. It it it's basically growing um, at a historical growth rate, um, because I know that was obviously we didn't own it during the second quarter. Um, so it's growing at, you know, kind of that. Um,
Dan Perlin: You know, and we're going to see a seasonally like, and we said this, you know, on a prior call as well, is that when we look at Battea, and it can be very seasonal as well, right, as far as it can be very lumpy in any one quarter based on what's going on and clearing class action suits. And when we look at historically, over the last call it five or six years, the frequency of the fourth quarter, the second half being the lumpiest of the full year, over 50% of the time, you'll see a higher percentage of the revenues weighted toward the back half of the year as courts tend to clear their dockets towards the end of the year versus early part of the year.
Speaker Change: Low double digit growth rate um you know, and and we're going to see a seasonally. Like, and we've said this, um,
Speaker Change: Um you know, on a prior call as well is that when we look at Paya and and it can be very seasonal as well. Right as far as it can be very lumpy in any 1 quarter based on uh what's going on and and and clearing um class action suits. And when we look at historically over the last call 5 or 6 years,
Dan Perlin: And this year is shaping up to be similar to one of those years. So we'd expect to see accelerated growth rate in the second half, similar to what they've done historically. It wasn't necessarily the case last year, but more the case looking this year. Got it. That's great.
Speaker Change: The frequency of the fourth quarter or the second half being the lump of the full year. Over 50% of the time, you'll see a higher percentage of the revenues weighted toward the back, half of the year as quartz tend to clear their dockets, um, towards the end of the year versus early part of the year, and this year is shaping up to be similar to 1 of those years. So, we'd expect to see accelerated growth rate, um, in the second half similar to what they've done historically. It wasn't necessarily the case last year but more the case looking this year.
Dan Perlin: And then just, I guess more philosophically, Bill, like the Callistone deal here, again, you've got an asset that's growing. I think organically, you said 10 plus percent. We just talked about Batia growing low double digits, and maybe there's some lumpiness to it. But in aggregate, like these are assets that have organic growth that's better than kind of your current run rate and margins that are not like big fixer uppers, which are somewhat counterintuitive relative to what you've historically done over the years.
Speaker Change: Yeah, got it. That's great. And then just um I guess more philosophically bills um like the callous Stone deal. Here again you've got an asset, that's growing. Um
Speaker Change: I think organically, you said 10 plus percent, um, we just talked about beta growing low double digits, um, and maybe there's some lumpiness to it, but in aggregate, like, these are assets that have
Bill Stone: So I'm just wondering, like, is the tone from the top that, you know, you're gonna point a lot more assets and capital into kind of expanding that organic growth trajectory as these assets kind of keep rolling in? Because it would seem as though that's a strategic move on your part, but I'm not sure if it's entirely the focus point. I'm just trying to get a sense there.
Speaker Change: Uh, organic growth. That's better than kind of your current run rate and margins that are not like big fixer uppers, which are somewhat counterintuitive, relative to what you've historically. Done over the years. So I'm just wondering if like, is the tone.
Bill Stone: Thank you. Yeah, you know, Dan, I think I think, of course, you know, I mean, you only need to get hit in the head in about 1000 times before you decide that you guys really love organic revenue growth. You know, I like growth, and I like earnings, you know, but we have a lot of opportunities where, you know, we find, you know, good teams like they have at Callistone. And, you know, we've known Julian Hammerson for several years and very impressive guy. And, and I think that, you know, when we find that same thing that we had with with Mike, Michael McCree and Pete Hanson at, at Epithea.
Speaker Change: From the top that, you know, you're going to point a lot more assets and capital into kind of expanding that organic growth trajectory as these as these assets kind of keep rolling in because it would seem as though that's a strategic move on your part but I'm I'm not sure if it's entirely the focus point. I'm just trying to get a sense there. Thank you.
Speaker Change: Yeah, you know, Dan I I think I think of course, you know, I mean you only need to get hit in the head and you know, about a thousand times before you decide that you guys really love organic Revenue growth.
Speaker Change: uh, you know, I, I like growth and I like earnings, you know, but we have a lot of opportunities, where, you know, we find, you know, good teams like they have at calstone and, you know, we've known, uh,
Speaker Change: Dealing and hammering for several years and and very impressive guys. And and I think that you know, when we find that same thing that we had with, um,
Bill Stone: So, you know, it's finding the right the right mix and, you know, trying not to You know, get to investment banker influence as to what we should do. You know, we, we, we made over $600 million in consolidated EBITDA this this quarter. And, and, you know, we're well on our way to make more money in the second half than we made in the first half. You know, and as Brian said, there's some seasonality and you know, we still sell some software too. So that generally is in the fourth quarter. And generally in the last two weeks of the fourth quarter.
Speaker Change: They'll get 2 investment banker influenced as to what we should do.
Speaker Change: You know, we we we and I get some made over 600 million dollars.
Speaker Change: in Consolidated, even though this this quarter and
Speaker Change: And you know, we're well on our way to make more money in the second half than we made in the first half.
Speaker Change: You know and as as Brian said there's some seasonality and you know, we we still sell some software too, so that generally is in the fourth quarter.
Bill Stone: So it's always the last two weeks of the quarter, but it's a larger chunk in Q4. So I don't think that's going to Got it.
Speaker Change: And generally in the last 2 weeks of the fourth quarter. So it's always the last 2 weeks of the quarter, but it's a larger Chunk in Q4. So I don't think that's going to change.
Unknown Attendee: That's great.
Unknown Attendee: Thank you so much, Bill.
Speaker Change: Got it. That's great. Thank you so much though.
Peter Heckmann: And our next question comes from the line of Peter Heckmann with D.A. Davidson. Your line is open.
Speaker Change: Our next question.
Speaker Change: Peter Heckman with da Davidson your line is open.
Bill Stone: Good morning, or good afternoon, everyone. On Calistone, could you explain a little bit more what their funds network does? I did a little bit of work on the website, and I'm not sure I'm 100% grasping it. Is it really a BPO function for things like Trade Reconciliation, or am I reading that That's a couple of the services that they provide and And they have a, you know, obviously a big network. that really allows them to have straight through processing, but with very little manual intervention. and on a multi country basis. I think there are 57 countries, that's the number.
Hey, good morning. All right, good afternoon everyone. Um, on Callis Stone, could you explain a little bit more? What their funds network does? I did a little bit of work on the website and I'm not sure. I'm I'm 100% grasping it. Is it really a BPO function for things like post-trade processing and and trade reconciliation or or, or am I reading that incorrectly
Speaker Change: oh, that's a couple of the services that they provide and
Speaker Change: And and they have a, you know, an obviously a big Network.
Speaker Change: that, um,
really allows them to have straight from processing, but with very little manual intervention,
Speaker Change: Yeah. And and and on a multi-country basis.
Bill Stone: Okay, okay, and then I didn't hear an update on the health. segment, anything new there. We're in the process of I've got a really marketing and selling.
Speaker Change: I I think they're in 57 countries. I think it's the number.
Bill Stone: year out from now. Is that how Well, I think, I think, Pete, that, you know, almost all of these health plans, Medicaid, Medicare, all, you know, they begin in January, January one. So, you know, really, you find out whether or not you won these deals and in like, October one, you know, so that that's the selling season is right now through the end of the year. And, and, you know, primarily, you're not closing any deals in December, because you have to get these, these people up and running on January one. So it's just recognizing those dynamics in, in, in that, in that business, and then also recognizing that there is, they're lumpy.
Speaker Change: Okay. Okay. And then, I didn't hear an update on on, um, the Health Solutions, uh, segment, uh, anything new there or, uh, and and are we still thinking that, you know, we're in the process of, of kind of really marketing and selling the solution and, and, and thinking about, uh, you know, incremental revenue or in any real material Revenue acceleration, uh, you know, maybe a year out from now, uh, is that how we should be thinking about it?
Speaker Change: Well, I think I, I think Pete that you, you know, almost all of these Health Plans. Medicaid and Medicare are all, you know, they they begin in 1 0 1.
Speaker Change: So you know, really you find out whether or not you won these deals and and like October 1.
You know, so that that's the selling season is right now through the end of the year and and you know, primarily you're not closing any deals in December because you have to get these these people up and running on January 1. So it's just recognizing those Dynamics and
Speaker Change: In in that, in that business. And then also recognizing that there is uh
Bill Stone: You know, this is their whole business and, you know, a small deal in healthcare is, you know, on Devani or Amethyst would be like $5 million, you know, and a big one could be $100 million. So you've got to recognize that, you know, some of it is going to be the maturation of that selling and marketing process and then being able to really get some traction where people start singing the praises of having a brand new system and data and analysis at their fingertips versus, you know, we've had some of the CEOs at major healthcare companies talk about two or three weeks to get the data in a usable form.
Speaker Change: They're Lumpy.
Speaker Change: you know, this is their whole business and, you know, a small deal in healthcare is, you know, uh, on demanding or amethyst would use like 5 million dollars
Speaker Change: You know, and the big 1 could be 100 million.
Speaker Change: So you got to, you got to recognize that, you know, some some of it it's going to be the the maturation of that selling and marketing process and then and then being able to really get some some traction where people start seeing the Praises of having a brand new system and data and Analysis at their fingertips.
Bill Stone: So we think there's a lot of advantages and it's, you know, we make money in our healthcare business, we generate cash, and we think it's a huge opportunity. We have a new board member who lives in London and he acts like it's not just the United States that needs healthcare solutions. So there's opportunity.
Versus, you know, we've had some of the CEOs that have major Healthcare companies, talk about 2 or 3 weeks to get the data in a usable form. So we we think there's a lot of advantages and it's, you know, uh, we make money in our Healthcare business, we generate cash and, and we think it's a, it's a huge opportunity. We have a new board member
Speaker Change: In London and he acts like it's not just the United States that needs Healthcare Solutions. So there's, there's an opportunity.
Unknown Attendee: Okay, good to be here.
Okay, good to hear. I appreciate it.
James Faucette: And our next question comes from the line of James Faucette with Morgan Stanley. Hi guys, thanks for taking our questions.
Speaker Change: And our next question comes from the line of James faucet with Morgan Stanley. Your line is open
Michael Infante: Michael Infante, I'm Kurt James. I just wanted to ask a technical question on Callistone, and specifically their EMI platform. I know that's blockchain native, and it's obviously still quite early, but any sense of... Technical or commercial hurdles that would prevent you from routing a big chunk of SS&C administered flows.
Bill Stone: Transcripts provided by Transcription Outsourcing, LLC. Well, you know, that's something that we're looking at and you know, that, you know, getting all of the Getting all the technical aspects and all the specifications is one of the reasons you see it as 4.1 to 4.5 and what we spend on R&D. And, you know, we have people working in and Julian at Calistone is is quite technical, and his team is quite technical. So we'll have our technical teams together, and we'll do what is optimal for our clients. And I'm sure that the scale that we bring is going to allow us to have...
Speaker Change: Hi guys, thanks for taking our questions, Michael and fante on for James. I just wanted to ask a technical question on Palestine, um, and specifically their immie platform. I know that's blockchain native and it's obviously still quite early but any sense of the technical or commercial hurdles that would prevent you from routing, a big chunk of of ssnc administered flows through DMI over the next several years. And maybe what that would mean from a cost savings perspective relative to Swift messaging
Speaker Change: well, you know that's something that we're looking at then, you know, the the, you know, getting all of the um,
Speaker Change: is is 1 of the reasons you see it at 4.1 to 4.5 and and what we spend on R&D and, you know, we have people working in and, and, and Julian at at at kstone is
Unknown Attendee: No better person. Got it. Helpful.
Speaker Change: Is, is, is quite Technical and his team is quite technical. So, we'll, we'll have our technical teams together and, and, and we'll do what is optimal for our clients. And and I'm sure that the, um, scale that we bring is going to allow us to have, uh,
Speaker Change: you know, better prices.
Unknown Attendee: Just a quick housekeeping follow-up on Battea.
Bill Stone: I think you suggested last quarter that you were still working through some of the RevRec dynamics there, which in and of itself, that asset is, again, seasonally concentrated in Fiscal 4Q. But do you have more visibility on what that RevRec looks like now? And are you still comfortable with that full year range being 100 to 110 of contribution? Thanks. I think we're definitely making progress on it as we get more history and we have really good visibility into what is already in effect been adjudicated and is waiting to be released. So yeah, we feel better about it.
Speaker Change: Got it helpful. Just a quick housekeeping. Follow up on Pattaya. I think you suggested last quarter, um, that you were still working through some of the Rev wreck Dynamics there, uh, which in and of itself that asset is again, seasonally concentrated in fiscal 4 Cube. But do you have more visibility on what that rev rack looks like now? And are you still comfortable with that full year range, being a 100 to 110 of contribution. Thanks.
Bill Stone: I wouldn't say we're 100% of the way there, but we are getting closer. Yeah, we operate with the different law firms. that have won these cases and, you know, staying on top of them too, so that they stay on top of the judges, so that the judges release the funds. That's when everybody gets paid.
Speaker Change: I I think we're getting uh you know we're definitely making progress on it as we get more history. And we have really good visibility into what is already in effect been adjudicated and is waiting to be released. So yeah, we feel better about it. I wouldn't say we're 100% of the way there but we are getting closer.
Speaker Change: Yeah, we operate with the different law. Firms that have
Speaker Change: That have won these cases and, you know, standing on top of them to so that they stay on top of the judges. So that the judges release the funds,
Speaker Change: You know, that's that's when everybody gets paid.
Unknown Attendee: All right. Thank you, guys.
Speaker Change: Got it. Thank you guys.
Operator: And as a reminder, it is star one if you would like to ask a question.
Surinder Thind: And our next question comes from the line of Surinder Thind with Jeffreys, your line. Thank you.
Speaker Change: Where is star 1, if you would like to ask a question. And our next question comes from the line of surrender thinned with Jeffrey's. Your line is open.
Bill Stone: Bill, can you just provide kind of an update on Blue Prism strategically where you think you're on the product life cycle in terms of all the new features and functionality and just kind of what you see in the pipeline? Well, you know, we're, we're really kind of rolling out, you know, kind of a case study of what we did. You know, so we got, we bought Blue Prism, I think, in like March, April of 2022, I think. And, you know, we've deployed several thousand. of Digital Workers and doing increasingly complex tasks. and we think that we have.
Speaker Change: Um, thank you Bill. Can you just provide kind of an update on blueprint prism strategically, where you think you are in the product life cycle in terms of all the, the new features and functionality and just kind of what you see in the pipeline at this point.
Well, you know, we're we're we're really kind of rolling out, you know, kind of a case study of what we did.
Speaker Change: You know, so we we got we we bought blue prism, I think in like March April of 2022, I think.
Speaker Change: and um, uh, you know, we've talked
Speaker Change: Several thousand.
Uh, digital workers and doing increasingly complex tasks.
Speaker Change: and we think that we have,
Bill Stone: saved or at least not spent a couple hundred million dollars because of that investment. And as we show what we're doing with Agentic AI and Blue Prism, you know, we're starting to get some real interest as a solution for a lot of their manual issues.
Saved or at least, not spent a couple hundred million dollars because of that that investment. And and as we show
what we're doing with the uh, agentic Ai and and blue Prizm
Bill Stone: We remain optimistic that Blue Prism has a lot of runway, but it's competitive and it's a wild west out there, so you've got to do this in a wise manner, and you've got to protect your clients. Got it.
Speaker Change: You know, we're starting to get some real interest as a as a solution for a lot of their man manual issues.
Speaker Change: We, we remain.
Optimistic, that blue prism has a lot of Runway and, and but it's competitive and and it's a wild west out there. So you, you know, you got to do this in a
Speaker Change: In a wise manner.
Speaker Change: And you got to protect your clients.
Bill Stone: Um, and then just kind of on the intro links piece and the whole idea of volumes, deal count. Um, how significant has the degradation been from the beginning of the year to now? and then maybe how you're thinking about the back. Yeah, I think the, you know, the answer to both of those is related, there's a little bit of a lag is mostly, you know, so we have some leading indicators, the number of opportunities, the number of kind of deals in the market, as well as what we have in bookings, which then translates to revenue.
Speaker Change: Got it. Um, and then just kind of on the interlinks piece and and the whole idea of volumes steel counts. Um how significant has the degradation been from the beginning of the year to now
Speaker Change: um,
Speaker Change: and then maybe how you're thinking about the back half.
Speaker Change: Yeah, I think the uh you know, the answer to both of those is related. There's there's a little bit of a lag is mostly, you know, so we have some leading indicators. Uh the number of opportunities, the number of kind of deals in the market as well as what we have in bookings, which then translates to revenue.
Bill Stone: So I think most of what we're seeing now is we're seeing the early indicators of that revenue, come back. So bookings are up, you know, deal counts are up, things like that. There usually is a couple month lag. But we do expect, you know, some growth from this point in the back half of the year. Got it. Meaning that you expect growth in the back half to be paused. That's right. I appreciate that. Thank you.
Speaker Change: So I think most of what we're seeing now is we're seeing the early indicators of that Revenue. Come back.
So so bookings are up. You know deal counts are up things like that. They're usually is a couple months lag, but we do expect, you know, some growth from this point in the back half of the year.
Speaker Change: Got it. Meaning that you expect growth in the back, have to be positive like in terms of, that's right.
Speaker Change: Numbers.
Speaker Change: Okay, I appreciate that. Thank you.
Bill Stone: And we have no further questions, so I will now turn the call back over to Mr. Bill Stone for closing remarks. Thank you. And hey, thanks, everybody for being on the call.
Speaker Change: We have no further questions.
Turn the call back.
Speaker Change: Closing remarks.
Operator: We We're working hard for our shareholders as we always do and it's nice to present good results and we look forward to seeing you in October. Thanks a lot.
Speaker Change: Thank you. And hey, thanks everybody for being on the call. We uh,
Speaker Change: We're working hard for our shareholders as we always do and it's nice to present good results. And we look forward to seeing you.
Speaker Change: In October. Thanks a lot.
Operator: And ladies and gentlemen, this concludes today's call and we thank you for your participation. You may now disconnect. Thanks for watching!
Speaker Change: And ladies and gentlemen, this concludes today's call and we thank you for your participation. You may now disconnect