Ss&C Technologies Holdings ((SSNC)) has held its Q1 earnings call. Read on for the main highlights of the call.
SS&C Technologies Holdings recently reported robust financial results, showcasing significant revenue and earnings growth, successful international expansion, and advancements in AI technology. Despite these positive outcomes, the company provided a conservative outlook for the second quarter due to prevailing economic uncertainties and faced challenges within its healthcare segment.
Strong Financial Performance
SS&C Technologies demonstrated impressive financial performance with adjusted revenue reaching $1.5148 billion, marking a 5.5% increase. The adjusted diluted earnings per share rose by 8.3% to $1.44. Additionally, the adjusted consolidated EBITDA was $591.9 million, up 6.3%, with a quarterly adjusted consolidated EBITDA margin of 39.1%.
Cash Flow Growth
The company experienced significant growth in cash flow, with cash from operating activities increasing by 50.8% from the previous quarter, amounting to $272.2 million. This substantial increase highlights SS&C’s strong cash generation capabilities.
International Expansion Success
SS&C Technologies made notable strides in international markets, signing a strategic lift-out agreement with Insignia Financial and securing additional mandates in Australia. The company also expanded its footprint in the Middle East by opening a new office in Riyadh, enhancing its global presence.
AI and Technology Advancements
The company launched a global governance-first AI platform at Blue Prism Live in London, introducing 20 new AI agents capable of handling complex content. This advancement underscores SS&C’s commitment to leveraging cutting-edge technology to drive growth and efficiency.
Positive Outlook for Private Markets
SS&C reported a 14% growth in private markets during the first quarter, with a strategic focus on the Middle East and strong performance from flagship clients, indicating a promising future for this segment.
Conservative Q2 Organic Growth Guidance
Due to global economic uncertainty and potential deal slowdowns, SS&C provided a conservative organic revenue growth guidance of 2.5% for the second quarter of 2025, reflecting a cautious approach to future growth.
Foreign Exchange Impact
The company faced an unfavorable impact from foreign exchange, resulting in a $7 million offset to revenue, highlighting the challenges posed by currency fluctuations.
Healthcare Business Performance
The healthcare segment concluded the quarter approximately flat, indicating challenges in growth compared to other segments, which may require strategic adjustments moving forward.
Forward-Looking Guidance
SS&C Technologies modestly raised its full-year 2025 revenue guidance to a range of $6.11 billion to $6.24 billion, expecting a 4.4% organic growth at the midpoint. For the second quarter of 2025, the company forecasts revenue between $1.489 billion and $1.529 billion, with adjusted diluted EPS expected to range from $1.35 to $1.41.
In summary, SS&C Technologies Holdings delivered strong financial results, marked by revenue and earnings growth, and successful international expansion. While the company faces challenges in the healthcare segment and has adopted a conservative outlook for the upcoming quarter, its advancements in AI technology and positive performance in private markets provide a solid foundation for future growth.