SS&C Technologies’ first quarter results were met with a negative market reaction, despite the company surpassing Wall Street’s revenue and profit expectations. Management pointed to strong performances in its GlobeOp wealth and investment technology segments, as well as growth in international markets like Australia and the Middle East. CEO Bill Stone highlighted robust demand for the company’s global investor and distribution services, while President Rahul Kanwar cited continued momentum in private markets and healthy recurring revenue growth. Management acknowledged that macroeconomic and geopolitical uncertainty influenced customer decision-making and contributed to a cautious outlook for the near term.
Is now the time to buy SSNC? Find out in our full research report (it’s free).
SS&C (SSNC) Q1 CY2025 Highlights:
- Revenue: $1.51 billion vs analyst estimates of $1.5 billion (5.4% year-on-year growth, 0.8% beat)
- Adjusted EPS: $1.44 vs analyst estimates of $1.41 (2.4% beat)
- Adjusted EBITDA: $592.9 million vs analyst estimates of $597.6 million (39.2% margin, 0.8% miss)
- The company slightly lifted its revenue guidance for the full year to $6.18 billion at the midpoint from $6.17 billion
- Management slightly raised its full-year Adjusted EPS guidance to $5.84 at the midpoint
- Operating Margin: 23.6%, in line with the same quarter last year
- Market Capitalization: $19.59 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions SS&C’s Q1 Earnings Call
- Jeff Schmitt (William Blair) asked about healthcare pipeline strength and seasonality; CEO Bill Stone described the pipeline as healthy but acknowledged lumpiness, especially with large insurance clients.
- Peter Heckmann (D.A. Davidson) inquired about revenue ramp and margin impact from the Insignia Financial deal; Stone explained most ramp will occur in Q3 and Q4, with 1,400 employees rebadged, while President Kanwar said margin impact will be modest and mainly operational.
- Dan Perlin (RBC Capital Markets) questioned the overall demand environment and potential deal delays; Stone noted industry-wide uncertainty, with clients cautious amid new technologies but said SS&C is well-positioned to help them adapt.
- Surinder Thind (Jefferies) probed Blue Prism’s AI adoption and digital worker use cases; Kanwar emphasized enhanced complexity and scale of internal AI deployments, acting as proof points for clients, contributing to productivity and margin stability.
- Andrew Schmidt (Citi) sought clarity on the “back-half ramp” and pipeline visibility; Kanwar replied that while some go-to-market execution is needed, there’s good visibility into major revenue streams for the latter part of the year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace at which new international mandates, especially Insignia Financial and Middle East clients, contribute to revenue; (2) the uptake and monetization of Blue Prism’s AI automation platform in regulated industries; and (3) improved margin trends through expense management and productivity initiatives. Execution on healthcare growth and integration of recent acquisitions will also be key markers of progress.
SS&C currently trades at $79.43, up from $77.41 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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