SS&C Technologies Holdings Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jeff Schmitt - William Blair & Company - Analyst : On health care, was it just a seasonally weak quarter for that business? And how does your pipeline look currently?

Question: Jeff Schmitt - William Blair & Company - Analyst : Okay. And then your organic growth guide for the second quarter, I think it's 2.5%. Is that assuming a slowdown or pause in new business, just given all the economic uncertainty I may have missed that. And if so, could you kind of quantify what you're assuming there?

Question: Peter Heckmann - D.A. Davidson & Co - Analyst : Hopefully, you can hear me. It's a little choppy on this end. But congratulations on finalizing the Insignia deal. Now that it's closed, do you think you can give us a little bit more in terms of your expectations for its contribution to revenue and how much it might ramp up and whether or not we would be able to see the impact of that ramp on margins in the second half or the first half of 2026?

Question: Peter Heckmann - D.A. Davidson & Co - Analyst : Okay. All right. That's helpful. And then just as a follow-up on your decision or the announcement to dissolve another one of the joint ventures with State Street. As that is dissolved, do you expect to pick up any additional revenue? Like what would you say would be the kind of the net effect to revenue some additional revenue recognized at the corporate level? And what would you expect the impact to be on the EBITDA line?

Question: Peter Heckmann - D.A. Davidson & Co - Analyst : Okay. And then just last thing, where do you expect that to actually finalize and occur?

Question: Daniel Perlin - RBC Dominion Securities Inc - Analyst : So just at a high level, again, Bill, on the demand environment. I know we've heard from other players in the financial services market banks, in particular, have talked about some of their clients pausing. Doesn't sound like you're seeing that yet, but I just want to kind of make a finer point that what are those conversations like? Do you get the sense that they feel like there might be an air pocket in the business and decision-making so they might want to hold off. I heard your comment on the organic growth being measured as conservative. So I get that, but obviously, you talked a lot of these businesses. So I'm just curious what those conversations are like.

Question: Daniel Perlin - RBC Dominion Securities Inc - Analyst : Yes. Excellent. Can I just ask just another quick question in particular around Insignia in Australia, maybe the market in general. I think I heard you say you signed several new mandates since kind of the announcement. And I'm just wondering like, obviously, the demand environment there seems high. I feel like almost -- you guys sound giddy about the opportunity. So I'm just trying to make sure we kind of ring-fence like what kind of cadence you expect in terms of how that can potentially ramp?

Question: Surinder Thind - Jefferies - Analyst : Bill, just a few questions on some of the segments here. When we think about Intralinks and we look at everything that went right last year in terms of the introduction of the new platform. How are we thinking about the performance of Intralinks in kind of the current environment? How much of a headwind do you think it's going to be? Or how should we characterize what the current growth rate looks like and how it might evolve over the coming quarters? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 24, 2025 / 9:00PM, SSNC.OQ - Q1 2025 SS&C Technologies Holdings Inc Earnings Call

Question: Surinder Thind - Jefferies - Analyst : Got it. And then, Rahul, can you maybe provide a similar update on kind of Blue Prism and all the enhancements and the rollout strategy there? And how you're thinking about that over the course of the year?

Question: Surinder Thind - Jefferies - Analyst : Got it. And then I guess turning that question internally in terms of the digital workers, just any color on the complexity of the use cases you're now able to address and how you're thinking about that on a go-forward basis? It sounds like you're using it to solve bigger problems at this point.

Question: Surinder Thind - Jefferies - Analyst : And then what does that mean for margins? Do you feel like there's a structural tailwind that you have at this point that, that will continue? Or how should we think about that, not necessarily this year, but as we kind of conceptually think about this or maybe even this year.

Question: Surinder Thind - Jefferies - Analyst : I thought I was the last person in the queue. That's okay, Bill, if I've had to get back.

Question: Mike Infante - Morgan Stanley Investment Management Ltd - Analyst : It's Mike Infante on for James. I just wanted to ask on the GlobeOp business, obviously, really impressive results again. I think that business has accelerated sequentially every quarter for more than a year now. Like can you just unpack what's driving that? Is that net new momentum? Is that pricing? What are you sort of seeing just in terms of the complexion of the growth drivers within that business?

Question: Mike Infante - Morgan Stanley Investment Management Ltd - Analyst : Makes sense. Maybe just on the competitive front, Bill. Obviously, a lot of acquisition activity in the space, particularly in the hedge fund and investment accounting space. I know some of these acquisitions are quite small relative to the totality of your business. But any just high-level thoughts on that deal and sort of how you're thinking about your ability to sort of continue to gain share in the start-up hedge fund environment, particularly just given some of this integration activity that's obviously coming?

Question: Andrew Schmidt - Citigroup Inc - Analyst : I wanted to go back to this conversation on the demand environment. I totally understand the setup for the second quarter in terms of comments on conservatism and the mission-critical nature of what you guys do. But I'm just curious if you could give us a sense of whether conversations and sales cycles have changed meaningfully? March and April, obviously, wouldn't be surprising a huge amount of distraction out there. But I'm just curious, just put a finer point in terms of your conversations with the clients and decision-making.

Question: Andrew Schmidt - Citigroup Inc - Analyst : Got it. And then maybe just on the back half ramp, I know you articulated a few things that are drivers there. Part of that seems like it's Insignia and other signed deals. But maybe just give more detail on the confidence in the back half ramp, what signed versus go-get? I know there's always a level of go get. You got to get it there and sell and close deals. But just maybe more details on the drivers and confidence in that ramp would be helpful.

Question: Ella Smith - J.P. Morgan Securities LLC - Analyst : This is Ella Smith on for Alexei Gogolev. So first, we want to double down about the strength in GlobeOp. You called out the strength in the private markets with retail alternatives. How are you thinking about the forward organic growth of those markets in particular? Do you expect them to maintain their strength or taper off somewhat? And if you could remind us what is driving that strength, that would be great. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 24, 2025 / 9:00PM, SSNC.OQ - Q1 2025 SS&C Technologies Holdings Inc Earnings Call

Question: Ella Smith - J.P. Morgan Securities LLC - Analyst : Great. That makes a lot of sense. And for my follow-up, I hear enthusiasm about Agentic AI and bringing that to customers. Do you expect those offerings to begin to show up in organic growth in the near term? Or do you think that there's going to be an investment building out phase that needs to transpire and finish first?

Question: Kevin McVeigh - UBS Equities - Analyst : Congratulations on the results, and it's obviously a choppy environment. Bill, if I got this question once in your quarter, I got it 30 times about hedge funds de-grossing and what that means. And obviously, your AUA continues to increase year-on-year and increased sequentially. Can you maybe just help remind us, because again, we got the question a lot why the AUA and we even analyzed in COVID, it just continues to grow. And it's just, I think, one of the really underappreciated parts of the story, but just maybe help dimensionalize that, just given, obviously, some of the volatility in the market we've seen.

Question: Kevin McVeigh - UBS Equities - Analyst : That's helpful. And then, Bill, with Insignia, does that -- from a business segment perspective, does that all fit within GlobeOp or GIDS? Or where would that sit across kind of the segments or is it multiple?

Question: Patrick O'Shaughnessy - Raymond James - Analyst : So Battea seems to be trending well below the revenue that it had in 2023 when you guys acquired it. Is that just a function of the lumpiness of the -- just the nature of the business? Or is there something else going on?

Question: Patrick O'Shaughnessy - Raymond James - Analyst : What sort of forward-looking view do you have into that business? Like at this point into the second quarter, do you have a pretty good sense for what 2Q revenue is going to look like? Or does stuff kind of come in relatively quickly?

Question: Patrick O'Shaughnessy - Raymond James - Analyst : That's helpful. And then maybe just a quick housekeeping question. What is the FX impact on the revenue that's embedded into the full year guidance at this point? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 24, 2025 / 9:00PM, SSNC.OQ - Q1 2025 SS&C Technologies Holdings Inc Earnings Call