SS&C Technologies Holdings, Inc.

SS&C delivered a decent result in the last quarter of 2022 despite a challenging operating environment for SS&C Technologies. The company’s adjusted diluted earnings per share were down. Adjusted organic revenue was flat in line. Nevertheless, the revenue performance of the software business of the company, including Institutional Management, Investment, and Advent, and the resilience of its Intralinks business and Alternative Fund Administration was pleasing. Foreign exchange had an unfavorable impact on the quarter. The cost structure was impacted by higher staffing and waged inflation to support the businesses. Cash flow was impacted by an increase in receivables, lower EBITDA, and higher interest rates. Three existing clients of the company upgraded to Aloha, its newest platform. Mine Super became the first Australian superannuation client of SS&C. One of the largest clients of DST expanded its relationship to take in more transfer agency operations. In the quarter, SS&C Technologies acquired a specialized Colorado-based fund administrator, Complete Financial Ops, that focuses on private equity as well as family offices. The management is bullish regarding the company’s Blue Prism acquisition. We give SS&C Technologies Holdings a ‘Hold’ rating with a revised target price.