Summary
SS&C Technologies reported GAAP revenue of $1,435.0 million for the first quarter ended March 31, 2024, up 5.3%. Operating income rose 18.9% to $332.9 million. Net income attributable to SS&C climbed 25.1% to $157.6 million, and diluted EPS was $0.62, up 26.5%. Gross margin improved to 49.3%, up 2.5 percentage points, while operating margin reached 23.2%, up 2.6 percentage points. On a non-GAAP basis, adjusted revenue set a record at $1,435.8 million, up 5.3%, and adjusted diluted EPS was $1.28, up 12.3%. Adjusted operating income attributable to SS&C increased 9.5% to $540.0 million. Adjusted consolidated EBITDA attributable to SS&C was $556.8 million, up 9.4%, and its margin was 38.8%, up 150 basis points.
Management credited stronger market conditions and momentum in Intralinks and Alternatives. Intralinks organic growth reached 23.0%, and Alternatives grew 5.5%. Wealth and Investment Technologies expanded 4.4%, Blue Prism grew 8.2%, and GIDS and related grew 0.7%. Healthcare declined 8.5% because of attrition carried over from 2023. Financial services recurring revenue growth was 6.5%, and total organic growth was 4.7%. The company said growth was driven by both M&A and Investor Portal businesses within Intralinks. The CEO said SS&C continues to deploy intelligent automation and generative AI across the business, with real benefits in client service and productivity. The company hosted its inaugural Deliver Europe event in April, with more than 250 clients attending.
Cash generation was the weak spot. Operating cash flow was $180.5 million, down 29.2%. Capital expenditures were $5.8 million, down 44.8%. Deferred revenue, current portion, was $493.2 million, flat compared with the prior-year quarter. The working capital accounts were a drag, driven by decreases in accrued expenses, an increase in accounts receivable, and a decrease in accounts payable. SS&C returned capital through $52.9 million of share repurchases, or 0.8 million shares at an average price of $63.24, and $59.7 million of dividends. It also paid down $79.9 million of debt, leaving net leverage at 2.95 times and secured net leverage at 2.02 times. Net debt was $6,361.6 million, which excludes $95.1 million of cash held at DomaniRx.
Guidance for the second quarter points to adjusted revenue of $1,412.1 million to $1,452.1 million and adjusted net income attributable to SS&C of $295.7 million to $311.7 million. Adjusted diluted EPS is projected at $1.16 to $1.22. Interest expense is expected at $112.1 million to $114.1 million, and diluted shares at 253.7 million to 254.7 million. For the full fiscal year 2024, adjusted revenue is guided to $5,694.6 million to $5,854.6 million, adjusted net income to $1,242.3 million to $1,322.3 million, and adjusted diluted EPS to $4.93 to $5.17. Full-year cash from operating activities is expected at $1,302.0 million to $1,382.0 million. Capital expenditures are forecast at 4.3% to 4.7% of revenue, diluted shares at 252.2 million to 255.3 million, and the effective income tax rate at 26%. The organic growth midpoint is 4.8% for the second quarter and 4.6% for the full year. The company did not provide reconciliations of adjusted guidance to comparable GAAP measures.
Risks remain familiar. Macroeconomic conditions, including higher interest rates, inflation, and foreign currency exchange rate changes, could affect results. Customer consolidation, competition, litigation, cybersecurity and privacy concerns, evolving regulations, and substantial indebtedness all carry weight. SS&C intends to refinance $3,515.3 million of Term Loans B-3, B-4, and B-5 due April 16, 2025, but there is no assurance it can do so on acceptable terms. The healthcare segment's 8.5% organic decline and continued attrition are worth watching. The company ended the quarter with a net secured leverage ratio of 2.02 times against a covenant maximum of 6.25 times. Operating cash flow fell 29.2% even as GAAP earnings grew, a divergence that merits attention.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.44B | $1.41B | +1.7% | $1.36B | +5.3% |
| Gross profit | $707.2M | $719.3M | -1.7% | $637.0M | +11.0% |
| Gross margin | 49.3% | 51.0% | -1.7 pp | 46.8% | +2.5 pp |
| Research & development | $120.9M | $118.3M | +2.2% | $118.2M | +2.3% |
| Sales & marketing | $140.9M | $139.3M | +1.1% | $139.8M | +0.8% |
| General & administrative | $112.5M | $127.5M | -11.8% | $98.9M | +13.8% |
| Total operating expenses | $374.3M | $385.1M | -2.8% | $356.9M | +4.9% |
| Operating income (loss) | $332.9M | $334.2M | -0.4% | $280.1M | +18.9% |
| Operating margin | 23.2% | 23.7% | -0.5 pp | 20.6% | +2.6 pp |
| Net income (loss) | $158.0M | $194.9M | -18.9% | $126.2M | +25.2% |
| Net margin | 11.0% | 13.8% | -2.8 pp | 9.3% | +1.8 pp |
| Diluted EPS | $0.62 | $0.77 | -$0.15 | $0.49 | +$0.13 |
Risks
The company intends to refinance $3,515.3 million of Term Loans B-3, B-4 and B-5 due April 16, 2025 in the near term, but states there can be no assurance it will obtain such financing on acceptable terms or at all. Net interest expense rose to $116.0 million in FY2024 Q1 from $111.9 million in FY2023 Q1, and the average interest rate increased to 6.86% from 6.21%.
MD&A says ongoing macroeconomic conditions such as increases in interest rates, inflation and changes in foreign currency exchange rates could have impacts on results that are uncertain and largely outside the company's control, and could result in material negative effects. Foreign currency translation had a favorable impact on FY2024 Q1 revenue but also increased costs.
Net cash provided by operating activities was $180.5 million in FY2024 Q1, down $74.3 million or 29.2% from $254.8 million in FY2023 Q1, driven by changes in working capital accounts including decreases in accrued expenses and an increase in accounts receivable. Financing activities used $835.9 million in FY2024 Q1, primarily from a net decrease in client fund obligations of $690.0 million and net debt repayments of $79.9 million.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Adjusted Consolidated EBITDA Margin
Adjusted Revenue
Financial Services Recurring Revenue Growth
Adjusted Consolidated EBITDA attributable to SS&C
Adjusted Operating Income attributable to SS&C
Organic Revenue Growth Rate
Organic Growth excluding Healthcare
Summary, forecast, risks and KPIs are extracted from SS&C Technologies Holdings Inc's SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.