Summary
SS&C Technologies posted steady growth and wider margins in the second quarter. GAAP revenue for the second quarter of 2024 was $1,451.5 million, up 6.5%. Adjusted revenue was $1,452.4 million, also up 6.5%. Organic revenue growth was 6.4%, and financial services recurring revenue growth was 7.7%. GAAP operating income rose 13.7% to $327.6 million. GAAP operating margin was 22.6%, up 1.4 percentage points. GAAP net income attributable to SS&C climbed 45.6% to $190.3 million. Diluted GAAP earnings per share were $0.75, up 47.1%, while adjusted diluted earnings per share were $1.27, up 17.6%.
Gross profit was $698.3 million in the quarter, up 8.9%, and gross margin was 48.1%, up 1.1 percentage points. Adjusted consolidated EBITDA attributable to SS&C reached $558.9 million, up 11.2%, with a 38.5% margin. The business mix showed broad momentum. Adjusted organic growth for Alternatives was 7.0%, GIDS and related was 5.1%, Wealth and Investment Technologies was 6.0%, Intralinks was 16.1%, and Blue Prism was 7.3%. Management pointed to strength in SS&C GlobeOp fund administration, Global Investor and Distribution Solutions, Wealth and Investment Technologies, and virtual data room services. The company also plans a 2024 Analyst Day on September 18th at the Nasdaq Marketsite in New York City and its SS&C Deliver client conference on October 6-8 in New Orleans.
Cash generation was uneven. Operating cash flow was $384.9 million in the second quarter, up 16.8%. For the six months ended June 30, 2024, operating cash flow was $565.4 million, down 3.2% from the prior-year period. Capital expenditures were $10.0 million in the quarter, down 27.0%, and $15.8 million for the six months, down 34.7%. Deferred revenue, current portion, was $482.9 million, up 2.1%. Current remaining performance obligations were $0.3 million, down 100.0%. The company repurchased 3.7 million shares for $227.0 million in the quarter at an average price of $62.17. That was its highest quarterly buyback. It also announced a new $1 billion common stock repurchase program. The company paid $60.1 million in common stock dividends in the quarter. Its net leverage ratio was 2.84 times, and its secured net leverage ratio was 1.60 times.
Guidance points to continued expansion. For the third quarter of 2024, SS&C guided adjusted revenue of $1,420.0 million to $1,460.0 million, adjusted net income attributable to SS&C of $304.6 million to $320.6 million, and adjusted diluted earnings per share of $1.21 to $1.27. The third-quarter organic growth midpoint was 5.3%. For the full fiscal year 2024, the company guided adjusted revenue of $5,706.2 million to $5,866.2 million, adjusted net income of $1,246.3 million to $1,326.3 million, and adjusted diluted earnings per share of $4.98 to $5.22. Full-year organic growth midpoint was 4.9%. SS&C does not provide reconciliations of adjusted revenue and adjusted net income guidance to comparable GAAP measures. Risks include macroeconomic conditions, interest rates, inflation, foreign currency fluctuations, substantial indebtedness, client consolidation, competition, litigation, regulatory scrutiny, privacy concerns, and dependence on securities markets and the hedge fund industry. Management said it will remain aggressive with buybacks as long as it views the stock as undervalued.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.45B | $1.44B | +1.1% | $1.36B | +6.5% |
| Gross profit | $698.3M | $707.2M | -1.3% | $641.1M | +8.9% |
| Gross margin | 48.1% | 49.3% | -1.2 pp | 47.0% | +1.1 pp |
| Research & development | $128.7M | $120.9M | +6.5% | $119.6M | +7.6% |
| Sales & marketing | $142.6M | $140.9M | +1.2% | $137.1M | +4.0% |
| General & administrative | $99.4M | $112.5M | -11.6% | $96.2M | +3.3% |
| Total operating expenses | $370.7M | $374.3M | -1.0% | $352.9M | +5.0% |
| Operating income (loss) | $327.6M | $332.9M | -1.6% | $288.2M | +13.7% |
| Operating margin | 22.6% | 23.2% | -0.6 pp | 21.1% | +1.4 pp |
| Net income (loss) | $190.7M | $158.0M | +20.7% | $130.9M | +45.7% |
| Net margin | 13.1% | 11.0% | +2.1 pp | 9.6% | +3.5 pp |
| Diluted EPS | $0.75 | $0.62 | +$0.13 | $0.51 | +$0.24 |
Risks
Company has significant indebtedness, including $3,900.0 million Term Loan B-8, $2,000.0 million 5.5% Senior Notes and $750.0 million 6.5% Senior Notes at June 30, 2024. Net interest expense was $113.3 million for the quarter and $229.3 million year to date. The credit facility contains covenants, and breach could result in acceleration and a material adverse effect.
MD&A states ongoing macroeconomic conditions, such as increases in interest rates, inflation and changes in foreign currency exchange rates, could have uncertain and material negative effects on business and results. These situations remain dynamic and subject to rapid and possibly material change.
Effective tax rate was 6.7% for the quarter and 18.8% year to date, including benefits of $40.8 million from releases of uncertain tax positions and $5.7 million of tax refunds from closed audits. Future changes in income composition or OECD Pillar Two rules could impact tax expense.
MD&A reports foreign currency translation unfavorably impacted Q2 revenues by $1.6 million and favorably impacted year to date revenues by $4.0 million. Other income included foreign currency translation losses of $1.1 million for the quarter and $5.8 million year to date.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Adjusted Consolidated EBITDA Margin
Adjusted Organic Revenue Growth
Financial Services Recurring Revenue Growth
Cash Flow Conversion
Summary, forecast, risks and KPIs are extracted from SS&C Technologies Holdings Inc's SEC filings for Q2 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.