Technology

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

Published

2 years ago

February 13, 2024

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 %

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,

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)

(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)

(2)

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

(3)

(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

Technology

Hexagon releases new targets at its Capital Markets Day 2026

Published

1 hour ago

April 30, 2026

Hexagon is the global leader in precision measurement, positioning and autonomous solutions with a serviceable addressable market of ~€38bn by 2030.Hexagon’s €3.7bn in revenue and ~17,000 employees are across three Business Areas – Manufacturing Intelligence, Infrastructure & Especial and Autonomous Solutions plus a Robotics Division currently in an investment phase.Recent portfolio actions, including the upcoming separation of Octave, the sale of the Design & Engineering business and the announced acquisition of Agate Technologies, have focused Hexagon on its strong core business in precision measurement & positioning technologies.Hexagon’s organic growth will be driven by strong end market potential and structural tailwinds, new product introductions and an operating model focused on accountability and closeness to customers.Hexagon launches new financial targets for the 2026 – 2030 period of average organic revenue growth of 4-6%, an EBITDA margin of 24-26%[1] and an EBITDA cash conversion of 90-100%. It also targets reducing Scope 1 & 2 emissions by 70% by 2030, from a 2022 baseline.

[1] EBITAC is defined as adjusted EBIT1 excluding capitalised and amortised R&D. See pages the appendix for further information

STOCKHOLM, April 30, 2026 /PRNewswire/ — Hexagon AB is hosting its Capital Markets Day today in London. At the event, President and CEO Anders Svensson, CFO Enrique Patrickson and the Presidents of Hexagon’s Business Areas will set out Hexagon’s ambitious growth strategy and its new 2026–2030 financial targets.

“Hexagon enters this new phase as a focused global leader in precision measurement and positioning, with a solutions portfolio essential to enabling industrial autonomy,” said Anders Svensson, President and CEO of Hexagon. “Our new targets reflect both the quality of our portfolio and the discipline of The Hexagon Way. With a strong leadership team and the financial flexibility to invest behind our growth priorities both organically and through synergistic acquisitions, we are well placed to deliver value creation for shareholders.”

“Today we are taking transparency to the next level — enhancing our disclosures, introducing EBITAC as our key profitability metric and providing clarity around our capital allocation priorities,” said Enrique Patrickson, CFO of Hexagon. “EBITAC is the right metric for Hexagon, a technology company with a significant R&D spend, funding market-leading product launches that drive our growth. With additional transparency comes additional accountability. We commit to drive capital allocation around R&D, M&A and Dividends with discipline and rigor.”

New sustainability targets

70% reduction in Scope 1 & 2 emissions by 2030 (from 2022 baseline)Net-zero by 2050

New 2026–2030 financial targets

Average annual organic revenue growth of 4-6%EBITAC margin in the range of 24-26%Annual cash conversion (of EBITAC) of 90-100%

A focused group focused on enabling industrial autonomy

Hexagon has undertaken significant portfolio changes, namely the upcoming spin-off of Octave and the sale of the Design & Engineering business. The resulting business is a focused global leader in precision measurement and positioning with proforma 2025 revenue of €3.7bn, EBITAC of €826m (22% EBITAC margin) and ~17,000 employees.

Hexagon is organised into three business areas – Manufacturing Intelligence, Infrastructure & Geospatial (formerly Geosystems) and Autonomous Solutions – alongside the Robotics Division, currently in an investment phase.

The overarching growth opportunity that underpins Hexagon’s long-term strategy is enabling customers to move towards true autonomy in their industrial operations.

President and CEO Anders Svensson will outline how Hexagon’s precision measurement and positioning technologies, digital twins and spatial intelligence capabilities are essential to enabling this true industrial autonomy. Hexagon holds market leadership positions across its serviceable addressable market, which is estimated to grow to ~€38bn by 2030.

Anders will also outline the key changes to Hexagon’s operating model. The Hexagon Way is an accountability-driven, decentralised model built around three strategic enablers: innovation and AI; portfolio management and M&A; and people & culture.

Central to this model is a clear accountability structure: the group’s three Business Areas are divided into 17 Divisions, each with full ownership of its financial performance and a defined strategic mandate covering three value creation priorities – Stability, Profitability and Growth.

The group-wide enablers allow Divisions to identify and execute on strategies targeted specifically to their markets and customers while drawing on the scale and resources of the broader Hexagon organisation. This balance of focused execution at the Division level and shared capability at the group level is designed to unlock each Division’s full potential and drive overall performance and shareholder value.

Hexagon’s new mid-term financial targets for 2026 to 2030 will be outlined by CFO Enrique Patrickson alongside a new financial framework including revised metric definitions designed to improve transparency, capital allocation and shareholder value creation.

The new 2026-30 through the cycle targets are:

Average annual organic revenue growth of 4–6% (CAGR 2026–2030)EBITAC margin in the range of 24–26%Annual cash conversion (of EBITAC) of 90–100%

In 2025, Hexagon achieved organic growth of 2.6%, an EBITAC margin of 22% and cash conversion (of EBITAC) of 109%.

Capital allocation

Hexagon’s capital allocation priorities are, in order: reinvestment in organic growth, value-accretive bolt-on M&A, a progressive dividend, and selective larger strategic moves where they enhance long-term shareholder value. The Group’s strong cash conversion and balance sheet provide the flexibility to pursue these priorities through the cycle.

Business Area presentations

Senior leadership from Hexagon’s Business Areas will provide additional context on strategy, markets and Business Area targets. The presenters will be:

Andreas Renulf, President, Manufacturing Intelligence Business AreaHenning Sandfort, President, Infrastructure & Geospatial Business AreaGordon Dale, President, Autonomous Solutions Business AreaArnaud Robert, President, Robotics Division

EBITAC – EBIT1 excluding capitalisation & amortisation of R&D

Hexagon is introducing EBITAC as its primary profitability measure. By immediately reflecting the full cost of R&D investments on the P&L, it will provide a tool to focus management firmly on the return on investment of R&D, go-to-market and capital investments and support performance management and capital allocation. The top end of the target EBITAC margin range (26%) was last achieved in 2021 and corresponds to the highest EBIT1 margin achieved by Hexagon in the last 5-years.

It is defined as adjusted EBIT1 excluding capitalised and amortised R&D.

Hexagon will continue to report EBIT1 (adjusted operating profit) for full transparency. A bridge between reported EBIT, EBIT1 and EBITAC and the EBITAC performance between 2024 and 2025 can be found in the appendix to this announcement.

Profitability metric bridge, 2025

Item

€M

Reported EBIT

575

Add: in year adjustments (impairments, restructuring, LTIP, PPA)

+372

EBIT1

947

Subtract: R&D capitalisation

-340

Add: R&D amortisation

+195

EBITAC

802

Subtract: in year robotics costs

+24

EBITAC (target definition)

826

Robotics – AEON, a potential global market leader in humanoid Robotics

Investment in Robotics to double from €24m in 2025 to €50m in 2026.Pilots with BMW, Schaeffler, Pilatus & Fill underway.Robotics is an exciting opportunity for significant value creation.

Due to its rapidly evolving structure Hexagon has decided to exclude Robotics from the 2026-30 financial targets and the calculation of EBITAC. This gives better visibility on the core group performance.

The financial performance of Robotics will be disclosed on a quarterly basis.

New sustainability targets

Hexagon is committed to operating responsibly for the good of the environment. It has set challenging new targets for emission reductions. Hexagon targets a 70% reduction in Scope 1 & 2 emissions by 2030 (from a 2022 baseline) and net-zero in Scope 1, 2 & 3 by 2050.

In 2025 Hexagon saw a 33% reduction in Scope 1 & 2 emissions from its 2022 baseline.

Joining instructions

The webcast will be streamed here: https://edge.media-server.com/mmc/p/d2han2qw/

FOR MORE INFORMATION, CONTACT:
Tom Hull, Head of Investor Relations, Hexagon AB, +44 7442 678 437, ir@hexagon.com
Anton Heikenström, Investor Relations Manager, Hexagon AB, +46 8 601 26 26, ir@hexagon.com

This is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 30 April 2026.

Appendix – Reconciling EBIT1 & EBITAC performance, 2025 quarterly

Metric

Q1 2025

Q2 2025

Q3 2025

Q4 2025

FY 2025

Revenue €m

961.5

1,010.5

976.0

1,053.1

4,001.2

EBIT1 €m

248.7

260.0

264.7

299.1

1,072.4

Subtract: capitalisation of R&D €m

-94.6

-94.7

-91.1

-84.1

-364.5

Add: amortisation of R&D €m

54.6

54.3

59.2

50.4

218.5

EBITAC €m

208.7

219.6

232.8

265.3

926.4

In year robotics cost €mEBIT

-4.7

-5.9

-5.6

-7.6

-23.7

EBITAC (excluding robotics costs)

213.4

225.5

238.3

272.9

950.1

EBIT1 margin %

25.9 %

25.7 %

27.1 %

28.4 %

26.8 %

EBITAC margin %

21.7 %

23.8 %

25.2 %

23.2 %

EBITAC margin % (excluding robotics costs)

22.2 %

22.3 %

24.4 %

25.9 %

23.7 %

Appendix – Reconciling EBIT1 & EBITAC performance, 2025 quarterly, excluding Design & Engineering

Metric

Q1 2025

Q2 2025

Q3 2025

Q4 2025

FY 2025

Revenue €m

888.2

939.4

907.1

980.3

3,715.0

EBIT1 €m

225.0

231.1

235.5

255.4

947.0

Subtract: capitalisation of R&D €m

-88.6

-88.0

-84.8

-78.3

-339.6

Add: amortisation of R&D €m

48.2

48.0

53.3

45.8

195.3

EBITAC €m

184.6

191.1

204.0

223.0

802.7

In year robotics cost €m

-4.7

-5.9

-5.6

-7.6

-23.7

EBITAC (excluding robotics costs)

189.3

196.9

209.6

230.5

826.4

EBIT1 margin %

25.3 %

24.6 %

26.0 %

26.1 %

25.5 %

EBITAC margin %

20.8 %

20.3 %

22.5 %

22.7 %

21.6 %

EBITAC margin % (excluding robotics costs)

21.3 %

21.0 %

23.1 %

23.5 %

22.2 %

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/hexagon/r/hexagon-releases-new-targets-at-its-capital-markets-day-2026,c4342580

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Hexagon releases new targets at its Capital Markets Day 2026

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SOURCE Hexagon

Technology

Accountants Streamline Cash Flow with ezACH Direct Deposit Software

Published

1 hour ago

April 30, 2026

Eliminate payment delays, reduce manual errors, and gain full control with a low-cost and high-quality ACH solution built for modern accounting workflows.

REDMOND, Wash., April 30, 2026 /PRNewswire/ — Halfpricesoft.com developers understand that businesses demand faster payments and greater financial control, and now accountants are rethinking how they manage transactions. ezACH direct deposit software will simplify payment processing, accelerate cash flow, and reduce costly errors.

Clients are encouraged to download and test ezACH today to purchase to confirm compatibility.

ezACH empowers accountants to securely process electronic payments for clients, vendors, payroll, and tax obligations, all from one streamlined platform. By generating ACH files that can be uploaded directly to a bank, the software removes the need for manual payment handling and outdated processes.

“Speed and accuracy are critical in today’s financial environment,” said Dr. Ge, Founder of Halfpricesoft.com. “ezACH gives accountants the ability to process multiple payments quickly and securely, without added complexity or cost.”

Designed with flexibility in mind, ezACH allows users to manage unlimited transactions for unlimited companies at a one-time flat rate of $199.00, making it a cost-effective alternative to subscription-based payment platforms. Try it today!

Why Accountants Are Making the Switch:

Process ACH payments for vendors, clients, payroll, and tax agenciesEliminate manual entry and reduce costly errorsImport data easily from CSV files or other Halfpricesoft applicationsHandle unlimited companies and transactions with no recurring feesMaintain full control over payment timing and processingClients can upload transactions for up to $4.99 to test compatibility

Halfpricesoft.com offers a variety of applications that will seamlessly integrate with ezACH software:

ezPaycheck: A new version of ezACH has just been released to support import CSV with ezPaycheck importing. ezCheckprinting: Business check writer for vendors, miscellaneous and draft checks. https://www.halfpricesoft.com/product_ezCheck.aspezAccounting: DIY in-house bookkeeping and payroll solution for one flat rate. https://www.halfpricesoft.com/accounting/accounting-software.asp

With a one-time cost of $199 per installation, ezACH offers long-term savings compared to subscription-based services. There are no hidden fees, and users can process unlimited ACH transactions. (Note: Banks may apply their own ACH processing fees. We recommend contacting your bank for compatibility prior to purchase).

Simplify the business operations and boost efficiency with the powerful, all-in-one solutions fromHalfpricesoft.com. To save both time and money, get started today at HalfPriceSoft.com for no cost or obligation

About Halfpricesoft.com

Halfpricesoft.com has been delivering affordable, reliable business software solutions for over 20 years. Its suite of products, including payroll, accounting, check printing, tax filing, and ACH deposit software, helps small businesses, accountants, and nonprofits streamline operations and reduce costs. Trusted by thousands nationwide, Halfpricesoft.com remains committed to simplifying financial management with powerful, budget-friendly tools.

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SOURCE Halfpricesoft.com

Technology

Neusoft Smart Go and Tencent Cloud Forge Strategic Partnership to Build a New AI-Powered Intelligent Cockpit Ecosystem

Published

1 hour ago

April 30, 2026

BEIJING, April 30, 2026 /PRNewswire/ — At Auto China 2026, Neusoft Smart Go, a subsidiary of Neusoft Corporation (SSE:600718), officially announced its strategic upgrade. The company now aims to become a global leading provider in full-domain upper-body electronics solutions for intelligent vehicles. At the same time, Neusoft Smart Go and Tencent Cloud announced a strategic partnership. Aligning with “AI-defined vehicles” trend, the two parties will focus on key areas such as intelligent cockpits, on-device AI large model applications, ecosystem content integration, in-vehicle cybersecurity, and cloud services. By integrating their technologies and resources, they will engage in in-depth collaboration to develop AI-powered intelligent cockpit products and solutions that offer enhanced interactivity and emotional experiences, accelerating the intelligent transformation of entire vehicles.

The integration of AI large models and ecosystems into vehicles is essentially a full-chain systematic project covering hardware-software architecture adaptation, data processing, compliance assurance, and real-time response. Currently, automakers face challenges such as high in-house R&D expenses, ecosystem integration hurdles, and a lack of differentiated user experiences. They urgently require full-domain solutions that seamlessly integrate hardware and software, offer comprehensive ecosystem coverage, and enable rapid mass production to meet users’ core demands for multi-modal interaction, full-scenario services, and continuous OTA updates.

As a leading cloud service provider in China, Tencent Cloud has core strengths in on-device large models, in-vehicle ecosystems and applications, cloud services, and data compliance assurance. It also offers a full-chain app ecosystem spanning social media, music, maps, and more. In this partnership, the two parties will take Neusoft Smart Go’s next-gen intelligent cockpit system as the core platform, deeply integrating Tencent Cloud’s on-device large models to jointly develop a benchmark AI-powered intelligent cockpit featuring natural conversations, proactive interactions, and highly emotional, smooth experiences. Furthermore, they will fully integrate a wide range of ecosystem apps, enabling seamless transitions between mobile phones and in-vehicle systems across all scenarios.

At present, Neusoft Smart Go has established a product matrix covering a full range of in-vehicle electronics solutions, including central computing platforms, cockpit-driving-parking integration, intelligent cockpits, intelligent communications, intelligent audio systems, and zonal control units. Through a dual-track strategy of high-end cutting-edge solutions and mature standardized products, it can flexibly meet the mass production needs of vehicle models across different regions and price segments worldwide. Leveraging Tencent’s intelligent driving cloud, data compliance, OTA technical support, and AI platform services, the two parties will provide stable, secure, and intelligent hardware-software integrated solutions tailored to the diverse needs of global automakers, comprehensively assisting them in achieving intelligent and AI-driven upgrades for entire vehicles.

Jian Guodong, Senior Vice President of Neusoft and CEO of Neusoft Smart Go, said, “The integration of AI large models and full-scenario ecosystems represents an inevitable trend and a shared vision for both Neusoft Smart Go and Tencent Intelligent Mobility. Leveraging Neusoft Smart Go’s technical expertise in the full domain of upper-body electronics and Tencent’s leading solutions in AI large models and full-chain ecosystems, the two parties will collaborate to provide global automakers with truly mass-producible and evolvable AI-powered intelligent cockpit solutions.”

Zhong Xuedan, Vice President and Head of Tencent Intelligent Mobility, said, “We share complementary strengths and similar philosophies with Neusoft Smart Go, laying a solid foundation for cooperation. Both parties will further deepen cooperation in AI-powered intelligent cockpits, jointly exploring proactive interactions and emotional services powered by large models, transforming the cockpit into a smarter companion that better understands users.”

The deep integration of on-device AI large models and full-scenario ecosystems is reshaping the value boundaries and user experiences of intelligent cockpits. The automotive industry needs to accelerate innovation and mass production, achieving a balance between advanced technologies and cost-effectiveness. Neusoft Smart Go will focus on enhancing its systematic integration, software-hardware synergy, and global delivery capabilities. Through collaboration with more ecosystem partners, it will provide sustained momentum for the intelligent transformation of the automotive industry.

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SOURCE Neusoft Corporation