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SS&C Technologies Releases Q4 and Full Year 2023 Earnings Results

Published

3 years ago

on

Q4 2023 GAAP revenue $1,411.6 million, up 5.5%, Fully Diluted GAAP Earnings Per Share $0.77, down 4.9%
Record Adjusted revenue $1,412.3 million, up 5.5%, Adjusted Diluted Earnings Per Share $1.26, up 8.6%

WINDSOR, Conn., Feb. 13, 2024 /PRNewswire/ — SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a global provider of investment, financial and healthcare software-enabled services and software, today announced its financial results for the fourth quarter and full year ended December 31, 2023.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions, except per share data):

2023

2022

Change

2023

2022

Change

GAAP Results

Revenue

$1,411.6

$1,338.3

5.5 %

$5,502.8

$5,283.0

4.2 %

Operating income

334.2

301.3

10.9 %

1,208.9

1,142.9

5.8 %

Operating income margin

23.7 %

22.5 %

120 bps

22.0 %

21.6 %

40 bps

Diluted earnings per share attributable to SS&C

$0.77

$0.81

(4.9) %

$2.39

$2.48

(3.6) %

Net income attributable to SS&C

194.4

207.5

(6.3) %

607.1

650.2

(6.6) %

Adjusted Non-GAAP Results (defined in Notes 1 – 4 below)

Adjusted revenue

$1,412.3

$1,339.1

5.5 %

$5,505.8

$5,287.3

4.1 %

Adjusted operating income attributable to SS&C

545.2

502.1

8.6 %

2,041.4

1,942.3

5.1 %

Adjusted operating income margin

38.6 %

37.5 %

110 bps

37.1 %

36.7 %

40 bps

Adjusted diluted earnings per share attributable to SS&C

$1.26

$1.16

8.6 %

$4.61

$4.65

(0.9) %

Adjusted consolidated EBITDA attributable to SS&C

562.5

518.6

8.5 %

2,107.7

2,006.1

5.1 %

Adjusted consolidated EBITDA margin

39.8 %

38.7 %

110 bps

38.3 %

37.9 %

40 bps

Fourth Quarter and Full Year 2023 Highlights:

Q4 2023 GAAP Revenue growth and Adjusted Revenue growth were 5.5 percent.SS&C generated net cash from operating activities of $1,215.1 million for the twelve months ended December 31, 2023, up 7.1 percent compared to the same time period in 2022.Q4 2023 we bought back 2.4 million shares for $130.7 million, at an average price of $54.74 per share.We paid down $150.2 million in debt in Q4 2023, bringing our net leverage ratio to 3.05 times consolidated EBITDA attributable to SS&C.SS&C reported GAAP net income attributable to SS&C of $194.4 million, down 6.3 percent and record adjusted consolidated EBITDA attributable to SS&C of $562.5 million for Q4 2023, up 8.5 percent.GAAP operating income margin for Q4 2023 was 23.7 percent. Adjusted consolidated EBITDA margin for Q4 2023 was 39.8 percent.

“SS&C exited 2023 with record adjusted revenue and record adjusted consolidated EBITDA, and we believe we have momentum to start the year,” says Bill Stone, Chairman and Chief Executive Officer. “We are seeing opportunities across the financial services industry, and anticipate market conditions to strengthen. And with DomaniRX successfully launching on January 1, 2024, we are seeing opportunities in healthcare.”

Operating Cash Flow

SS&C generated net cash from operating activities of $1,215.1 million for the twelve months ended December 31, 2023, compared to $1,134.3 million for the same period in 2022, a 7.1% increase.  SS&C ended the fourth quarter with $432.2 million in cash and cash equivalents and $6,756.4 million in gross debt.  SS&C’s net debt balance as defined in our credit agreement, which excludes cash and cash equivalents of $100.2 million held at DomaniRx, LLC was $6,424.4 million as of December 31, 2023.  SS&C’s consolidated net leverage ratio as defined in our credit agreement stood at 3.05 times consolidated EBITDA attributable to SS&C as of December 31, 2023. SS&C’s net secured leverage ratio stood at 2.10 times consolidated EBITDA attributable to SS&C as of December 31, 2023.

Guidance

Q1 2024

FY 2024

Adjusted Revenue ($M)

$1,396.7 – $1,436.7

$5,667.7 – $5,867.7  

Adjusted Net Income attributable to SS&C ($M)

$300.5 – $316.5

$1,221.4 – $1,321.4

Interest Expense1 ($M)

$112.6 – $114.6

$437.9 – $447.9

Adjusted Diluted Earnings per Share attributable to SS&C

$1.19 – $1.25

$4.85 – $5.15

Cash from Operating Activities ($M)

–

$1,292.0 – $1,392.0

Capital Expenditures (% of revenue)

–

4.3% – 4.7%

Diluted Shares (M)

253.2 – 254.2

252.7 – 255.7

Effective Income Tax Rate (%)

26 %

26 %

1Interest expense is net of deferred financing cost amortization and original issue discount

SS&C does not provide reconciliations of guidance for Adjusted Revenues and Adjusted Net Income to comparable GAAP measures, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.  SS&C is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures.  These items include acquisition transactions and integration, foreign exchange rate changes, as well as other non-cash and other adjustments as defined under the Company’s Credit agreement, that are difficult to predict in advance in order to include in a GAAP estimate.  The unavailable information could have a significant impact on Q1 2024 and FY 2024 GAAP financial results.

Non-GAAP Financial Measures

Adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP measures.  See the accompanying notes for the reconciliations and definitions for each of these non-GAAP measures and the reasons our management believes these measures provide useful information to investors regarding our financial condition and results of operations.

Earnings Call and Press Release

SS&C’s fourth quarter and full year 2023 earnings call will take place at 5:00 p.m. eastern time today, February 13, 2024.  The call will discuss fourth quarter and full year 2023 results and 2024 guidance.  Interested parties may dial 888-210-4650 (US and Canada) or 646-960-0327 (International), and request the “SS&C Technologies Fourth Quarter and Full Year 2023 Earnings Conference Call”; conference ID #4673675.  In connection with the earnings call, a presentation will be available on SS&C’s website at www.ssctech.com.  The call will be available for replay via the webcast on SS&C’s website; access: http://investor.ssctech.com/financials/quarterly-results/default.aspx

Certain information contained in this press release relating to, among other things, the Company’s financial guidance for the first quarter and full year of 2024 constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance, underlying assumptions, and other statements that are other than statements of historical facts. Without limiting the foregoing, the words “believes”, “anticipates”, “plans”, “expects”, “estimates”, “projects”, “forecasts”, “may”, “assume”, “intend”, “will”, “continue”, “opportunity”, “predict”, “potential”, “future”, “guarantee”, “likely”, “target”, “indicate”, “would”, “could” and “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.  Such statements reflect management’s best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated.  Such risks and uncertainties include, but are not limited to, the state of the economy and the financial services industry and other industries in which the Company’s clients operate, the Company’s ability to realize anticipated benefits from its acquisitions, including DST Systems, Inc., the effect of customer consolidation on demand for the Company’s products and services, the increasing focus of the Company’s business on the hedge fund industry, the variability of revenue as a result of activity in the securities markets, the ability to retain and attract clients, fluctuations in customer demand for the Company’s products and services, the intensity of competition with respect to the Company’s products and services, the exposure to litigation and other claims, terrorist activities and other catastrophic events, disruptions, attacks or failures affecting the Company’s software-enabled services, risks associated with the Company’s foreign operations, privacy concerns relating to the collection and storage of personal information, evolving regulations and increased scrutiny from regulators, the Company’s ability to protect intellectual property assets and litigation regarding intellectual property rights, delays in product development, investment decisions concerning cash balances, regulatory and tax risks, risks associated with the Company’s joint ventures, changes in accounting standards, risks related to the Company’s substantial indebtedness, the market price of the Company’s stock prevailing from time to time, and the risks discussed in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission and can also be accessed on our website.  Forward-looking statements speak only as of the date on which they are made and, except to the extent required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world’s largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology.

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SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(in millions, except per share data)

(unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2023

2022

2023

2022

Revenues:

Software-enabled services

$

1,145.5

$

1,068.2

$

4,488.3

$

4,273.9

License, maintenance and related

266.1

270.1

1,014.5

1,009.1

Total revenues

1,411.6

1,338.3

5,502.8

5,283.0

Cost of revenues:

Software-enabled services

594.6

603.2

2,472.0

2,414.8

License, maintenance and related

97.7

87.7

379.0

352.9

Total cost of revenues

692.3

690.9

2,851.0

2,767.7

Gross profit

719.3

647.4

2,651.8

2,515.3

Operating expenses:

Selling and marketing

139.3

129.0

550.9

500.1

Research and development

118.3

115.5

473.8

447.3

General and administrative

127.5

101.6

418.2

425.0

Total operating expenses

385.1

346.1

1,442.9

1,372.4

Operating income

334.2

301.3

1,208.9

1,142.9

Interest expense, net

(119.3)

(104.9)

(469.8)

(307.9)

Other income, net

5.4

49.1

20.7

20.8

Equity in earnings of unconsolidated affiliates, net

57.4

28.5

100.0

25.8

Loss on extinguishment of debt

(1.0)

(1.4)

(2.1)

(5.5)

Income before income taxes

276.7

272.6

857.7

876.1

Provision for income taxes

81.8

65.0

249.1

227.1

Net income

194.9

207.6

608.6

649.0

Net (income) loss attributable to noncontrolling interest

(0.5)

(0.1)

(1.5)

1.2

Net income attributable to SS&C common stockholders

$

194.4

$

207.5

$

607.1

$

650.2

Basic earnings per share attributable to SS&C common stockholders

$

0.79

$

0.83

$

2.45

$

2.56

Diluted earnings per share attributable to SS&C common stockholders

$

0.77

$

0.81

$

2.39

$

2.48

Basic weighted-average number of common shares outstanding

246.7

251.4

248.3

254.0

Diluted weighted-average number of common and common equivalent shares outstanding

252.1

256.4

254.5

262.0

Net income

$

194.9

$

207.6

$

608.6

$

649.0

Other comprehensive income (loss), net of tax:

Change in unrealized gain on interest rate swaps

—

—

—

4.8

Foreign currency exchange translation adjustment

129.3

200.4

124.5

(311.6)

Change in defined benefit pension obligation

(0.7)

(0.2)

(0.7)

(1.3)

Total other comprehensive income (loss), net of tax

128.6

200.2

123.8

(308.1)

Comprehensive income

323.5

407.8

732.4

340.9

Comprehensive (income) loss attributable to noncontrolling interest

(0.5)

(0.1)

(1.5)

1.2

Comprehensive income attributable to SS&C common stockholders

$

323.0

$

407.7

$

730.9

$

342.1

 

SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in millions)

(unaudited)

December 31,

December 31,

2023

2022

Assets

Current assets:

Cash and cash equivalents

$

432.2

$

440.1

Funds receivable and funds held on behalf of clients

2,615.6

966.3

Accounts receivable, net

799.4

778.6

Contract asset

36.1

42.3

Prepaid expenses and other current assets

165.8

193.8

Restricted cash

2.4

3.3

Total current assets

4,051.5

2,424.4

Property, plant and equipment, net

315.3

343.9

Operating lease right-of-use assets

221.4

260.6

Investments

184.7

193.9

Unconsolidated affiliates

345.2

266.9

Contract asset

99.7

115.9

Goodwill

8,969.5

8,863.0

Intangible and other assets, net

3,915.2

4,184.7

Total assets

$

18,102.5

$

16,653.3

Liabilities, Redeemable Noncontrolling Interest and Equity

Current liabilities:

Current portion of long-term debt

$

51.5

$

55.7

Client funds obligations

2,615.6

966.3

Accounts payable

80.3

49.5

Income taxes payable

22.3

34.3

Accrued employee compensation and benefits

270.2

235.8

Interest payable

29.4

28.4

Other accrued expenses

232.3

356.1

Deferred revenue

470.3

464.7

Total current liabilities

3,771.9

2,190.8

Long-term debt, net of current portion

6,668.5

7,023.9

Operating lease liabilities

199.1

237.0

Other long-term liabilities

248.7

225.8

Deferred income taxes

816.6

872.9

Total liabilities

11,704.8

10,550.4

Redeemable noncontrolling interest

—

2.1

SS&C stockholders’ equity

6,339.6

6,044.2

Noncontrolling interest

58.1

56.6

Total equity

6,397.7

6,100.8

Total liabilities, redeemable noncontrolling interest and equity

$

18,102.5

$

16,653.3

 

SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Twelve Months Ended December 31,

2023

2022

Cash flow from operating activities:

Net income

$

608.6

$

649.0

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

670.4

671.6

Equity in earnings of unconsolidated affiliates, net

(100.0)

(25.8)

Distributions received from unconsolidated affiliates

21.2

2.3

Stock-based compensation expense

159.5

124.8

Net gains on investments

(2.2)

(26.1)

Amortization and write-offs of loan origination costs and original issue discounts

13.5

13.9

Loss on extinguishment of debt

2.1

5.5

Loss on sale or disposition of property and equipment

11.7

0.6

Deferred income taxes

(82.9)

(77.0)

Provision for credit losses

11.4

10.6

Changes in operating assets and liabilities, excluding effects from acquisitions:

Accounts receivable

(23.1)

(38.1)

Prepaid expenses and other assets

(2.3)

17.7

Contract assets

22.5

(52.1)

Accounts payable

33.0

7.6

Accrued expenses and other liabilities

(106.0)

(135.5)

Income taxes prepaid and payable

(38.2)

27.0

Deferred revenue

15.9

(41.7)

Net cash provided by operating activities

1,215.1

1,134.3

Cash flow from investing activities:

Cash paid for business acquisitions, net of cash acquired and asset acquisitions

(34.1)

(1,636.2)

Additions to property and equipment

(56.6)

(63.4)

Proceeds from sale of property and equipment

0.1

11.4

Additions to capitalized software

(194.9)

(144.9)

Investments in securities

(0.6)

(10.0)

Proceeds from sales / maturities of investments

8.0

9.5

(Contributions to) distributions received from unconsolidated affiliates

(0.3)

66.2

Collection of other non-current receivables

10.0

9.8

Net cash used in investing activities

(268.4)

(1,757.6)

Cash flow from financing activities:

Cash received from debt borrowings, net of original issue discount

375.0

1,727.1

Repayments of debt

(749.7)

(599.8)

Payment of deferred financing fees

—

(14.7)

Net increase (decrease) in client funds obligations

1,669.7

(1,709.0)

Proceeds from exercise of stock options

115.4

91.8

Withholding taxes paid related to equity award net share settlement

(5.1)

(0.7)

Purchases of common stock for treasury

(471.6)

(476.1)

Dividends paid on common stock

(220.9)

(203.1)

Net cash provided by (used in) financing activities

712.8

(1,184.5)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

1.5

(26.0)

Net increase (decrease) in cash, cash equivalents and restricted cash

1,661.0

(1,833.8)

Cash, cash equivalents and restricted cash, beginning of period

1,337.6

3,171.4

Cash, cash equivalents and restricted cash and cash equivalents, end of period

$

2,998.6

$

1,337.6

Reconciliation of cash, cash equivalents and restricted cash and cash equivalents:

Cash and cash equivalents

$

432.2

$

440.1

Restricted cash and cash equivalents

2.4

3.3

Restricted cash and cash equivalents included in funds receivable and funds held on behalf of clients

2,564.0

894.2

$

2,998.6

$

1,337.6

SS&C Technologies Holdings, Inc. and Subsidiaries
Disclosures Relating to Non-GAAP Financial Measures

Note 1. Reconciliation of Revenues to Adjusted Revenues

Adjusted revenues represents revenues adjusted to include a) amounts that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition and b) amounts that would have been recognized if not for adjustments to deferred revenue and retained earnings related to the adoption of ASC 606.  Adjusted revenues is presented because we use this measure to evaluate performance of our business against prior periods and believe it is a useful indicator of the underlying performance of our business.  Adjusted revenues is not a recognized term under generally accepted accounting principles (“GAAP”).  Adjusted revenues does not represent revenues, as that term is defined under GAAP, and should not be considered as an alternative to revenues as an indicator of our operating performance.  Adjusted revenues as presented herein is not necessarily comparable to similarly titled measures presented by other companies.  Below is a reconciliation of adjusted revenues to revenues, the GAAP measure we believe to be most directly comparable to adjusted revenues.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2023

2022

2023

2022

Revenues

$

1,411.6

$

1,338.3

$

5,502.8

$

5,283.0

ASC 606 adoption impact

(0.9)

(0.7)

(3.4)

(2.3)

Purchase accounting adjustments impact on revenue

1.6

1.5

6.4

6.6

Adjusted revenues

$

1,412.3

$

1,339.1

$

5,505.8

$

5,287.3

The following is a breakdown of software-enabled services and license, maintenance and related revenues and adjusted software-enabled services and license, maintenance and related revenues.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2023

2022

2023

2022

Software-enabled services

$

1,145.5

$

1,068.2

$

4,488.3

$

4,273.9

License, maintenance and related

266.1

270.1

1,014.5

1,009.1

Total revenues

$

1,411.6

$

1,338.3

$

5,502.8

$

5,283.0

Software-enabled services

$

1,146.2

$

1,069.1

$

4,491.6

$

4,278.4

License, maintenance and related

266.1

270.0

1,014.2

1,008.9

Total adjusted revenues

$

1,412.3

$

1,339.1

$

5,505.8

$

5,287.3

Note 2. Reconciliation of Operating Income to Adjusted Operating Income

Adjusted operating income represents operating income adjusted for amortization of intangible assets, stock-based compensation, purchase accounting adjustments for deferred revenue and related costs, ASC 606 adoption impact and other expenses.  Adjusted operating income is presented because we use this measure to evaluate performance of our business and believe it is a useful indicator of our underlying performance.  Adjusted operating income is not a recognized term under GAAP.  Adjusted operating income does not represent operating income, as that term is defined under GAAP, and should not be considered as an alternative to operating income as an indicator of our operating performance.  Adjusted operating income as presented herein is not necessarily comparable to similarly titled measures by other companies.  The following is a reconciliation between adjusted operating income and operating income, the GAAP measure we believe to be most directly comparable to adjusted operating income.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2023

2022

2023

2022

Operating income

$

334.2

$

301.3

$

1,208.9

$

1,142.9

Amortization of intangible assets

151.3

158.1

596.6

595.4

Stock-based compensation

41.9

31.6

159.4

124.8

Purchase accounting adjustments (1)

3.8

5.1

15.8

20.7

ASC 606 adoption impact

(0.8)

(0.6)

(3.1)

(1.9)

Acquisition related (2)

1.2

5.7

9.0

34.1

Facilities and workforce restructuring

14.3

6.8

56.8

32.3

Other (3)

0.1

(5.4)

0.9

(4.9)

Adjusted operating income

$

546.0

$

502.6

$

2,044.3

$

1,943.4

Adjusted operating income attributable to noncontrolling interest (4)

(0.8)

(0.5)

(2.9)

(1.1)

Adjusted operating income attributable to SS&C common stockholders

$

545.2

$

502.1

$

2,041.4

$

1,942.3

(1)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.

(2)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(3)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance.

(4)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and  primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted operating income attributable to noncontrolling interest represents adjusted operating income based on the ownership interest retained by the respective noncontrolling parties.

Note 3. Reconciliation of Net Income to EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA

EBITDA represents net income before interest expense, income taxes, depreciation and amortization.  Consolidated EBITDA, defined under our Credit Agreement entered into in April 2018, as amended, is used in calculating covenant compliance, and is EBITDA adjusted for certain items.  Consolidated EBITDA is calculated by subtracting from or adding to EBITDA items of income or expense described below.  Adjusted Consolidated EBITDA is calculated by subtracting acquired EBITDA (as defined below) from Consolidated EBITDA. EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are presented because we use these measures to evaluate performance of our business and believe them to be useful indicators of an entity’s debt capacity and its ability to service debt.  EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are not recognized terms under GAAP and should not be considered in isolation or as alternatives to operating income, net income or cash flows from operating activities as indicators of our operating performance.  These measures are not necessarily comparable to similarly titled measures by other companies.  The following is a reconciliation of EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA to net income.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2023

2022

2023

2022

Net income

$

194.9

$

207.6

$

608.6

$

649.0

Interest expense, net

119.3

104.9

469.8

307.9

Provision for income taxes

81.8

65.0

249.1

227.1

Depreciation and amortization

170.0

177.4

670.4

671.6

EBITDA

566.0

554.9

1,997.9

1,855.6

Stock-based compensation

41.9

31.6

159.4

124.8

Acquired EBITDA and cost savings (1)

—

—

—

4.2

Loss on extinguishment of debt

1.0

1.4

2.1

5.5

Equity in earnings of unconsolidated affiliates, net

(57.4)

(28.5)

(100.0)

(25.8)

Purchase accounting adjustments (2)

2.6

2.2

9.3

9.4

ASC 606 adoption impact

(0.8)

(0.6)

(3.1)

(1.9)

Foreign currency translation (gains) losses

(3.9)

(10.8)

(0.2)

11.2

Investment gains

(5.3)

(43.1)

(19.0)

(38.7)

Facilities and workforce restructuring

14.3

6.8

56.8

32.3

Acquisition related (3)

1.2

11.8

(0.1)

41.5

Other (4)

3.7

(6.6)

7.5

(6.7)

Consolidated EBITDA

$

563.3

$

519.1

$

2,110.6

$

2,011.4

Acquired EBITDA and cost savings (1)

—

—

—

(4.2)

Adjusted Consolidated EBITDA

$

563.3

$

519.1

$

2,110.6

$

2,007.2

Adjusted Consolidated EBITDA attributable to noncontrolling interest (5)

(0.8)

(0.5)

(2.9)

(1.1)

Adjusted Consolidated EBITDA attributable to SS&C common stockholders

$

562.5

$

518.6

$

2,107.7

$

2,006.1

(1)

Acquired EBITDA reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period, as well as cost savings enacted in connection with acquisitions.

(2)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisitions (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to increase or decrease rent expense by the amount that would have been recognized if lease obligations were not adjusted to fair value at the date of acquisitions.

(3)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(4)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. 

(5)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and  primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted Consolidated EBITDA attributable to noncontrolling interest represents adjusted Consolidated EBITDA based on the ownership interest retained by the respective noncontrolling parties.

Note 4. Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings Per Share Attributable to SS&C to Adjusted Diluted Earnings Per Share Attributable to SS&C

Adjusted net income and adjusted diluted earnings per share attributable to SS&C represent net income and earnings per share attributable to SS&C before amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments and other items.  We consider adjusted net income and adjusted diluted earnings per share attributable to SS&C to be important to management and investors because they represent our operational performance exclusive of the effects of amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments, loss on extinguishment of debt and other items, that are not operational in nature or comparable to those of our competitors.  Adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP.  Adjusted net income and adjusted diluted earnings per share do not represent net income or diluted earnings per share, as those terms are defined under GAAP, and should not be considered as alternatives to net income or diluted earnings per share as indicators of our operating performance.  Adjusted net income and adjusted diluted earnings per share attributable to SS&C as presented herein are not necessarily comparable to similarly titled measures presented by other companies.  Below is a reconciliation of adjusted net income and adjusted diluted earnings per share attributable to SS&C to net income and diluted earnings per share attributable to SS&C, the GAAP measures we believe to be most directly comparable to adjusted net income and adjusted diluted earnings per share.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions, except per share data)

2023

2022

2023

2022

GAAP – Net income

$

194.9

$

207.6

$

608.6

$

649.0

Amortization of intangible assets

151.3

158.1

596.6

595.4

Amortization of deferred financing costs and original issue discount

3.3

3.7

13.5

13.9

Stock-based compensation

41.9

31.6

159.4

124.8

Loss on extinguishment of debt

1.0

1.4

2.1

5.5

Purchase accounting adjustments (1)

3.8

5.1

15.8

20.7

ASC 606 adoption impact

(0.8)

(0.6)

(3.1)

(1.9)

Equity in earnings of unconsolidated affiliates, net

(57.4)

(28.5)

(100.0)

(25.8)

Foreign currency translation (gains) losses

(3.9)

(10.8)

(0.2)

11.2

Investment gains

(5.3)

(43.1)

(19.0)

(38.7)

Facilities and workforce restructuring

14.3

6.8

56.8

32.4

Acquisition related (2)

1.2

11.8

(0.1)

41.5

Other (3)

3.9

(6.6)

8.6

(5.6)

Income tax effect (4)

(30.1)

(39.4)

(163.9)

(201.8)

Adjusted net income

$

318.1

$

297.1

$

1,175.1

$

1,220.6

Adjusted net income attributable to noncontrolling interest (5)

(0.8)

(0.5)

(2.9)

(1.1)

Adjusted net income attributable to SS&C common stockholders

$

317.3

$

296.6

$

1,172.2

$

1,219.5

Adjusted diluted earnings per share attributable to SS&C common stockholders

$

1.26

$

1.16

$

4.61

$

4.65

GAAP diluted earnings per share attributable to SS&C common stockholders

$

0.77

$

0.81

$

2.39

$

2.48

Diluted weighted-average shares outstanding

252.1

256.4

254.5

262.0

(1)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.

(2)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(3)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. 

(4)

An estimated normalized effective tax rate of approximately 26% for the three and twelve months ended December 31, 2023 and 2022 has been used to adjust the provision for income taxes for the purpose of computing adjusted net income.

(5)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and  primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted net income attributable to noncontrolling interest represents adjusted net income based on the ownership interest retained by the respective noncontrolling parties.

 

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SOURCE SS&C

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Healthcare Data Center Market to Reach USD 37.11 Billion by 2035 as AI Genomics, EHR Resilience and Hosted Capacity Reshape Healthcare Infrastructure – DC Market Insights

Published

41 minutes ago

on

October 23, 2026

By

Market grows at a 9.15% CAGR from USD 15.46 billion in 2025; AI genomics and research computing expands 16.71% a year, while North America holds 46.0% of spending

LONDON, Oct. 23, 2026 /PRNewswire/ — The “Healthcare Data Center Market – Growth, Share, Opportunities & Competitive Analysis, 2026-2035” report has been added to the DC Market Insights offering. The global Healthcare Data Center Market was valued at USD 15.46 billion in 2025, is estimated at USD 17.34 billion in 2026, and is projected to reach USD 37.11 billion by 2035, growing at a CAGR of 9.15% from 2025 to 2035. DC Market Insights finds that healthcare infrastructure is splitting between general-purpose EHR workloads that increasingly move to hosted environments and higher-value AI, imaging, research and resilience workloads that require dedicated or colocated capacity.

Healthcare Data Center Market at a Glance

Metric

Value (DC Market Insights estimate)

Market size, 2020

USD 9.77 billion

Market size, 2025 (base year)

USD 15.46 billion

Market size, 2026

USD 17.34 billion (+12.16% year on year)

Market size, 2030

USD 25.10 billion

Market size, 2035

USD 37.11 billion

CAGR 2025-2035

9.15% (low case 7.13%, high case 10.69%)

Largest component

IT hardware, 70.7% of 2025 value

Fastest-growing workload

AI genomics and research computing, 16.71% CAGR

Leading region

North America, 46.0% (USD 7.11 billion)

Fastest-growing region

Asia Pacific, 11.72% CAGR

Largest end user

Hospitals and health systems, 47.0% of 2025 value

Key Takeaways

IT hardware accounts for USD 10.93 billion, or 70.7% of 2025 market value, reflecting the high server, storage and accelerator content of clinical and research workloads.AI genomics and research computing is the fastest workload, rising 16.71% a year from USD 2.30 billion in 2025 to USD 10.78 billion by 2035.Hospitals and health systems remain the largest end user at USD 7.27 billion in 2025, while pharmaceutical and life sciences grows fastest among end users at 11.61% a year.On-premises owned sites hold 60.0% of 2025 value, but wholesale and build-to-suit grows 14.01% a year as research and AI clusters move into purpose-built capacity.North America leads with 46.0% of 2025 spending, while Asia Pacific grows fastest at 11.72%; India is the fastest-growing large country at 18.37% a year.

Scope & Segmentation – Healthcare Data Center Market

The report analyzes the market across the following segments:

Component: IT Hardware; Colocation and Hosting Services; Electrical and Mechanical Infrastructure; Construction and Fit-OutEnd User: Hospitals and Health Systems; Pharmaceutical and Life Sciences; Payers and Health Insurers; Health IT and Medtech Vendors; Public Health and Research InstitutesWorkload: EHR and Clinical Applications; Medical Imaging and PACS; AI Genomics and Research Computing; Claims and Revenue Cycle; Backup and Disaster Recovery; Collaboration and Other WorkloadsDeployment Model: On-Premises Owned Sites; Retail Colocation; Wholesale and Build-to-Suit; Vendor-Hosted Private CloudGeography: North America; Europe; Asia Pacific; Latin America; Middle East and Africa, with 12 country forecasts

Report Updated: Oct. 22, 2026

Get Free Sample Report – Healthcare Data Center Market

“Healthcare data center demand is moving in two directions at once: hospitals are reducing general-purpose owned halls while AI, imaging, research and cyber-resilience requirements add denser, higher-value infrastructure. Our model shows AI genomics and research computing growing 16.71% a year and wholesale or build-to-suit capacity growing 14.01%, while the owned-site share falls from 60.0% in 2025 toward 45.0% by 2035. That makes compliant hosted capacity, AI-ready infrastructure and recoverability the strongest growth pools through the forecast period.”

— Amit Jain, Senior Consultant, ICT & Emerging Technologies, DC Market Insights, report author

Why This Report Matters
Healthcare data centers sit at the intersection of patient-data availability, clinical application performance, medical imaging, pharmaceutical research and cyber resilience. The report helps health systems, life sciences companies, colocation operators, cloud and hosting providers, equipment vendors and investors size infrastructure demand while separating public-cloud migrations that leave the market from leased and owned capacity that remains in scope.

Key Attributes

Report attribute

Details

Historical Period

2020-2024

Base Year

2025

Forecast Period

2026-2035

Market Size 2025

USD 15.46 billion

Market Size 2026

USD 17.34 billion

Market Size 2035

USD 37.11 billion

CAGR 2025-2035

9.15% (low 7.13%, high 10.69%)

Leading Region

North America, 46.0%

Report Format

PDF + Excel

How Big Is the Healthcare Data Center Market in 2026?
DC Market Insights values the Healthcare Data Center Market at USD 17.34 billion in 2026, 12.16% above 2025, as backup sites, AI clusters for drug discovery and leased halls for electronic health records are added faster than hospital server rooms close. The model places healthcare IT load at 3,300 MW in 2025 and projects it to double to 6,600 MW by 2035, with accelerator racks taking a larger share of the mix.

Year

Market size

2020

USD 9.77 billion

2025

USD 15.46 billion

2026

USD 17.34 billion (+12.16% year on year)

2030

USD 25.10 billion

2035

USD 37.11 billion

Source: DC Market Insights, Healthcare Data Center Market report, Oct. 22, 2026.

Why Do AI and Research Workloads Raise Healthcare Data Center Spend?
AI infrastructure changes the value of each megawatt. DC Market Insights estimates a conventional healthcare MW carries about USD 3.05 million a year of hardware, while an AI MW carries about USD 8.30 million. That premium comes from GPU systems, high-speed networking, large research datasets and the supporting power and cooling required for accelerated computing. The result is that market value grows faster than healthcare IT load as the accelerator share rises from about 5% in 2025 toward 22% by 2035.

Which Component Leads Healthcare Data Center Spending?
IT hardware remains the largest component, but colocation and hosting services grow faster as providers absorb EHR, imaging, backup and research workloads that institutions no longer want to operate in ageing hospital server rooms.

Component

2025 value

Share 2025

2035 value

CAGR

IT Hardware

USD 10,931.24M

70.7 %

USD 24,479.40M

8.40 %

Colocation and Hosting Services

USD 3,136.32M

20.3 %

USD 9,496.08M

11.72 %

Electrical and Mechanical Infrastructure

USD 967.87M

6.3 %

USD 2,058.14M

7.84 %

Construction and Fit-Out

USD 427.77M

2.8 %

USD 1,078.98M

9.69 %

DC Exclusive: Hospital Data Center Exit Tracker
DC Market Insights tracks 14 named healthcare infrastructure moves from 2014 through 2026. Ten moved workloads to public cloud, two went to colocation and two built new owned sites. The pattern explains why owned data centers can lose share even while the overall market expands: general-purpose EHR estates leave older halls, while AI and research clusters arrive as new owned, wholesale or colocated capacity. The model therefore takes the owned-site share from 60.0% in 2025 toward 45.0% by 2035.

Workload

2025 value

Share 2025

2035 value

CAGR

EHR and Clinical Applications

USD 4,638.95M

30.0 %

USD 8,907.02M

6.74 %

Medical Imaging and PACS

USD 2,783.38M

18.0 %

USD 6,309.14M

8.53 %

AI Genomics and Research Computing

USD 2,297.83M

14.9 %

USD 10,777.50M

16.71 %

Claims and Revenue Cycle

USD 2,010.22M

13.0 %

USD 4,082.39M

7.34 %

Backup and Disaster Recovery

USD 2,164.85M

14.0 %

USD 4,453.51M

7.48 %

Collaboration and Other Workloads

USD 1,567.97M

10.1 %

USD 2,583.04M

5.12 %

Which Region Leads the Healthcare Data Center Market?

North America leads because the United States combines a large installed hospital base, near-universal certified EHR adoption and significant pharmaceutical research infrastructure. Asia Pacific grows fastest as India, China and other markets add local capacity under health-data localization and digital-health programs.

Indicator

2025 / Base

Outlook

Leading region

North America, 46.0% (USD 7.11B)

USD 15.77B by 2035; remains the largest regional spending pool

Fastest-growing region

Asia Pacific, 11.72% CAGR

Reaches USD 9.83B by 2035 as India and China add domestic health-data capacity

Fastest large country

India, 18.37% CAGR

USD 247.41M in 2025 to USD 1.34B by 2035

Largest country

United States, USD 6.49B in 2025

Remains the largest national market through the forecast

How Could the 2035 Forecast Change?

The 2035 outcome depends on how quickly hospital EHR estates move to public cloud, how much pharmaceutical AI is purchased as cloud capacity rather than dedicated infrastructure, and how strongly resilience rules push institutions to maintain recoverable private or colocated capacity.

Scenario

Assumption

2035 value

CAGR 2025-2035

Low

Faster EHR migration to public cloud; more pharma AI bought as cloud capacity

USD 30.80B

7.13 %

Base

Healthcare IT load reaches 6,600 MW; 22% on AI racks; 55% leased

USD 37.11B

9.15 %

High

Stricter 72-hour restore requirements and more drug makers build owned AI factories

USD 42.68B

10.69 %

Competitive Landscape and Recent Developments
The five largest colocation providers account for about 31% of the USD 3.14 billion healthcare colocation and hosting market in 2025, leaving the sector fragmented. Competition spans colocation, EHR hosting, cloud services, AI hardware and the power and cooling systems required for hospital and life-sciences infrastructure.

Companies profiled include:

Equinix; Digital Realty; Iron Mountain Data Centers; CyrusOne; NTT DATA; Epic Systems (Epic Hosting); Oracle (Oracle Health); Microsoft (Nuance); Amazon Web Services; Google Cloud; Dell Technologies; Hewlett Packard Enterprise; NVIDIA; Cisco Systems; Schneider Electric; Vertiv.

In July 2026, WellSpan Health completed the move of more than 300 applications and 7.5 PB of data to AWS in 17 weeks.In April 2026, the U.S. Department of Veterans Affairs requested USD 4.2 billion for its EHR in fiscal 2027, including USD 745 million for infrastructure readiness.In February 2026, Eli Lilly’s LillyPod AI factory with more than 9,000 petaflops went live in Indianapolis.In February 2026, five Ontario hospitals in Transform Shared Service Organization moved their EHR to Oracle Cloud Infrastructure, cutting page-load time by 71%.In January 2026, NVIDIA and Eli Lilly agreed to invest up to USD 1 billion over five years in an AI co-innovation lab.In November 2025, India notified the DPDP Rules with an 18-month phased timeline.

Frequently Asked Questions

What is the size of the Healthcare Data Center Market?
USD 15.46 billion in 2025 and USD 17.34 billion in 2026, projected to reach USD 37.11 billion by 2035 at a 9.15% CAGR.

Which component leads the market?
IT hardware, with USD 10.93 billion or 70.7% of 2025 spending.

Which workload grows fastest?
AI genomics and research computing, at 16.71% a year through 2035.

Which healthcare end user spends the most?
Hospitals and health systems, with USD 7.27 billion or 47.0% of 2025 market value.

Which region leads?
North America with USD 7.11 billion or 46.0% of 2025 value; Asia Pacific grows fastest at 11.72% a year.

Who are the leading suppliers?
Equinix, Digital Realty, Iron Mountain Data Centers, CyrusOne and NTT DATA are among the leading colocation providers, alongside major healthcare hosting, cloud, hardware and infrastructure vendors.

Methodology

DC Market Insights builds the healthcare data center market bottom-up from 3,300 MW of healthcare IT load in 2025 and spending per MW for hardware, colocation and hosting, electrical and mechanical infrastructure, and construction and fit-out. The model separates conventional and AI MW, applies leased-capacity economics, and reconciles end-user, workload, deployment, regional and country splits to the total market before applying forecast assumptions.

Download Sample Report – Healthcare Data Center Market

Related Reports from DC Market Insights
Data Center Colocation Market
AI Data Center Market
Data Center Outsourcing Market
Multi-Tenant Data Center Market
Data Center Virtualization Market

DC Market Insights Data & Tools

Explore live datasets and decision tools used across DC Market Insights research:

Data Center Database
Data Center Map
Data Center Operators
Global Capacity Tracker
Deal Tracker
Power & Policy Tracker
PUE Calculator
Construction Pipeline
Deal Comps
Site Risk
Electricity Rates
Data Center Footprint

About DC Market Insights

DC Market Insights is a dedicated research and consulting firm that empowers data center leaders with actionable intelligence. We combine rigorous market research, advanced analytics and practical advisory support to help organizations make confident decisions in an increasingly complex digital infrastructure landscape. Our goal is to transform data into clarity, giving clients the ability to act decisively on strategy, investment and execution.

Contact Us
DC Market Insights
Tower C-1105, S 25, Akash Tower, Vishal Nagar, Pimple Nilakh, Haveli, Pune – 411027, India
Email: sales@dcmarketinsights.com
United States: +1 628 262 7656
United Kingdom: +44 7453 598 606
Web: www.dcmarketinsights.com

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City of Hope Cancer Center Chicago Unites Industry Leaders for Health Technology Innovation Roundtable

Published

41 minutes ago

on

October 23, 2026

By

CHICAGO, Oct. 23, 2026 /PRNewswire/ — Faster access to care, more affordable treatment and policies that support innovation were central themes of a Health Technology Innovation Roundtable convened by City of Hope® Cancer Center Chicago on Thursday, October 15, at its hospital in Zion.

The discussion brought together Congressman Brad Schneider (IL-10) and leaders from City of Hope, Vantive and Zocdoc to examine how technology can help bend the health care cost curve, connect patients with care sooner and expand access to specialized treatment.

“Thank you to City of Hope in Zion for graciously hosting our recent roundtable to discuss how emerging health technologies are shaping patient care, access, and affordability,” said Schneider. “I am proud to represent a district where so many people work in the life sciences field to advance innovation. This convening was an important opportunity to hear directly from health technology innovators about the progress they are making to better connect patients with lifesaving care and how we can work together. I will continue to partner with City of Hope and the health technology experts throughout our district to ensure more people have access to the cutting-edge treatment and testing they deserve.”

The conversation spanned digital appointment scheduling, home dialysis, surgical robotics, artificial intelligence and remote monitoring. Zocdoc’s digital marketplace connects patients with available appointments, helping fill openings that might otherwise go unused. Vantive’s work in kidney care, including home dialysis, illustrated how technology can expand options for where and how patients receive treatment.  City of Hope’s experience with advanced surgery and wearable devices highlighted opportunities to bring specialized expertise closer to patients and support recovery at home.

“Technological advancements continue to evolve rapidly, and keeping up with them can feel like a job unto itself,” said Pete Govorchin, president of City of Hope Chicago. “Having an opportunity to pause and reflect on the progress we have seen thus far, as well as look ahead to what’s next alongside a distinguished panel of respected professionals, is critical.”

The discussion also addressed barriers that can keep innovation from reaching patients, including state licensing requirements, limited broadband, outdated regulations and reimbursement challenges. Access for rural communities and veterans was a recurring concern, alongside the need to measure how new technologies improve outcomes and reduce avoidable costs.

“As both a developer and adopter of advanced surgical technologies, City of Hope is well positioned to provide practical, evidence-based insights into how robotic surgery and other procedures, delivered remotely, could improve access, enhance quality, and support the future of patient-centered care,” said Dr. Yuman Fong, a City of Hope surgical oncologist.

Joining Schneider, Govorchin and Fong were Chris Toth, CEO of Vantive; Kyle Jackson, Vantive’s executive director of government affairs and market development; and Ilyssa Meyer, Zocdoc’s director of government affairs.

“I was proud to be part of an important convening of health technology experts discussing how we can continue to work together to connect more patients to care and innovative treatment. Rep. Schneider’s leadership on the bipartisan, bicameral Health ACCESS Act is an important next step in turning the innovations discussed at the recent roundtable into broader access to care,” added Meyer. “By reducing barriers to digital health services and online appointment scheduling, the bill can help connect more patients with the care they need.”

About City of Hope

City of Hope’s mission is to make hope a reality for all touched by cancer and diabetes. Founded in 1913, City of Hope has grown into one of the largest and most advanced cancer research and treatment organizations in the United States, and one of the leading research centers for diabetes and other life-threatening illnesses. City of Hope research has been the basis for numerous breakthrough cancer medicines, as well as human synthetic insulin and monoclonal antibodies. With an independent, National Cancer Institute-designated comprehensive cancer center that is ranked among the nation’s top cancer centers by U.S. News & World Report at its core, City of Hope’s uniquely integrated model spans cancer care, research and development, academics and training, and a broad philanthropy program that powers its work. City of Hope’s growing national system includes its Los Angeles campus, Orange County, California, campus, a network of clinical care locations across Southern California and cancer treatment centers and outpatient facilities in the Atlanta, Chicago and Phoenix areas. City of Hope’s affiliated group of organizations includes Translational Genomics Research Institute and AccessHope™. For more information about City of Hope, follow us on Facebook, X, YouTube, Instagram and LinkedIn.  

View original content to download multimedia:https://www.prnewswire.com/news-releases/city-of-hope-cancer-center-chicago-unites-industry-leaders-for-health-technology-innovation-roundtable-302917568.html

SOURCE City of Hope Cancer Center Chicago

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Technology

Kin Becomes First U.S. Home Insurer to Enable WebMCP for AI Shopping

Published

41 minutes ago

on

October 23, 2026

By

Consumers can now use ChatGPT to efficiently shop Kin’s digital home insurance experience

CHICAGO, Oct. 23, 2026 /PRNewswire/ — Building on its recent announcement that AI shopping agents like Meta’s Muse are welcome to shop on Kin.com, Kin is making its digital home insurance experience even easier for AI to shop. Kin, the direct-to-consumer provider of insurance and home finance solutions for homeowners, today announced that it has enabled WebMCP in its digital quoting experience. The new capability gives ChatGPT a faster and more efficient way to interact with Kin.com on a consumer’s behalf.

Homeowners can go from their AI agent prompt to a customized Kin home insurance quote ready for purchase in minutes due to the data-informed Kin.com quoting process.

“We said that Kin will win the AI shopping experience, and we meant it,” said Kin Founder and CEO Sean Harper. “People are going to increasingly ask AI to do the tedious work of shopping for them. We want someone to be able to tell ChatGPT, ‘Help me shop for home insurance,’ and make it incredibly easy for that AI agent to shop Kin.”

Unlike plug-ins that require installation, WebMCP is an open web standard which lets AI agents work directly with Kin.com, creating a more efficient way to interact with Kin’s digital experience, and making it easier for them to help consumers shop for home insurance. For consumers, that means AI can do more of the repetitive work involved in insurance shopping, while Kin makes its experience easier for those AI agents to navigate. 

Built for the Way Consumers Will Shop

The launch builds on Kin’s announcement that it would welcome Meta’s Muse and other AI shopping agents to Kin.com rather than block them. In Kin’s testing, Muse was able to retrieve home insurance quotes after asking consumers only a handful of questions. Likewise, with ChatGPT, Kin testing found consumers could easily price out home insurance in a clear side-by-side view with minimal questions. The technology improves daily, and Kin is committed to implementing open standards like WebMCP, which ChatGPT supports for paid users on its browser-based platform. While free ChatGPT accounts cannot use this protocol, consumers can still easily get a quote at kin.com.

Kin was built to sell home insurance directly to consumers through a digital experience, without relying on external agents. It also analyzes thousands of data points about individual homes, meaning much of the information needed to generate a quote can already be gathered without asking the homeowner.

“We didn’t have to reinvent Kin for AI shopping,” Harper said. “We already built a direct digital experience, we already have the data to answer most of the questions about a home, and we don’t depend on someone in the middle to sell the product. AI shopping rewards a lot of the things we’ve been building for years.”

A New Way to Shop for Insurance

Kin expects AI agents to become increasingly capable of helping consumers gather information, understand coverage and shop across insurance providers. As those capabilities improve, Kin plans to continue making its digital experience easier for both people and the AI agents working on their behalf.

“Five years from now, opening a bunch of browser tabs and filling out the same information over and over is going to seem pretty antiquated,” Harper said. “You’ll tell your AI what you need and it will go do the work. We’ve built Kin to win in that world.”

About Kin
Kin helps homeowners save money, simplify tasks, and protect their most valuable assets. By offering direct-to-consumer digital home and auto insurance alongside home finance services, the company focuses on supporting underserved homeowners in states with high catastrophic risk. Kin provides more convenient and affordable home and auto insurance coverage by eliminating the need for external agents and analyzing thousands of data points to provide transparent, accurate pricing. Kin’s AI-native technology platform delivers a seamless customer experience, customized options, and fast, high-quality service. To learn more, visit www.kin.com.

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SOURCE Kin Insurance, Inc.

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