SS&C Technologies Holdings, Inc.

Management has been increasingly optimistic about its 2021 revenue growth. After originally indicating 2021 revenue growth of 0%-4% on its December 2020 earnings call, management has revised this upward after its March 2021 (1.7%-4.7%) and June 2021 (3.3%-5%) earnings calls. We believe the headwinds facing SS&C in 2020 have largely subsided, which should enable organic revenue growth of about 4%-5% in 2021 (about 6% on a reported basis). The DST health segment has seen good revenue growth in the first half of 2021 as the health care industry begins to return to somewhat more normal operations (i.e. resumption of elective procedures). Alternative assets under administration have grown consistently over the past six quarters, which should enable continued growth in its

...We expect SS&C to have mid-single-digit organic revenue growth in 2021 after experiencing organic revenue declines in 2020. SS&C Technologies Holdings Inc.'s reported revenue grew 0.8% in 2020, but on an organic basis revenue declined about 1%. Its lower float income, which was down $20 million in 2020 from the low interest rate environment, created a 40-basis-point headwind. The DST Systems Inc. segment saw weakness in both its health (reduction in pharmacy claims) and financial (lower volumes/activity) segments, but this was offset by growth in its alternative funds administration, increased trading volumes (Eze Software Group LLC segment) arising from volatile markets, and new use cases arising from its secure deal rooms (IntraLinks Inc. segment) offsetting the declines for its typical merger and acquisition (M&A) uses. Management has been increasingly optimistic about its 2021 revenue growth. After originally indicating 2021 revenue growth of 0%-4% on its December 2020 earnings call,...

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