SS&C Technologies Holdings Inc Q3 2024 Earnings Call Transcript

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

Question: Jeff Schmitt - William Blair & Company - Analyst : Could you discuss the market opportunity for DomaniRx just because I think the top-three players in that space handle now maybe 70% or 80% of prescription claims I think and you've just mentioned before you don't plan on focusing on that group that much. So how big is the remaining market opportunity from a revenue perspective and then how are those early conversations going?

Question: Jeff Schmitt - William Blair & Company - Analyst : Okay, great. And then just on the Trust Suite business, I think [you had] mentioned it last quarter, but it's the [inter Trust] combination. Could you discuss the size of that business and the type of growth you're seeing there is how does that stack up versus competitors like [an FBI's product].

Question: Jeff Schmitt - William Blair & Company - Analyst : Any sense just on the size of that business today from revenue perspective in the growth or--

Question: Surinder Thind - Jefferies - Analyst : Bill, can you provide maybe any color on the outlook for 4Q in terms of the slowdown in the organic growth rate that's implied? And then is there some -- maybe some licensing noise or licensing deals and things like that? Or how should we think about 4Q number?

Question: Surinder Thind - Jefferies - Analyst : Got it. And then -- follow-up just on obviously, a lot of news in the healthcare space with potentially Cigna and Humana back in merger talks some weak results of Elevance and some other things. What's the potential impact or is there any read-through there? Are things -- something that we should be aware related to the DomaniRx?

Question: Surinder Thind - Jefferies - Analyst : So Bill, I guess just to clarify, is the commentary there that there shouldn't be any strategic impact on the relationship there that you have or I guess that's what I was trying to get rather than the actual near-term business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 24, 2024 / 9:00PM, SSNC.OQ - Q3 2024 SS&C Technologies Holdings Inc Earnings Call

Question: Surinder Thind - Jefferies - Analyst : That is correct, yes.

Question: Andrew Schmidt - Citi - Analyst : I wanted to just maybe ask a question on '25. I know it's a little bit early, but you do have 48 -- 4% to 8% medium-term organic growth outlook out there. I'm wondering if '25 if you think about it within the context of that, it is shaping up similar to the medium term. And then if you could just talk about maybe the pipeline or the sales cycles accordingly. Because I know obviously, there is a lot of that work gets done in advance to hit those targets. If you could comment on just your visibility there in terms of what you're seeing in the pipe, that'd be great. Thanks a lot.

Question: Andrew Schmidt - Citi - Analyst : Got it. That's great to hear, Bill. Very constructive. And then if I could just ask about R&D. I think one of the highlights at the Analyst Day was just the breadth of the product pipeline. It's bigger than I've seen in some time. Has there been a shift towards more spend and organic R&D? Obviously, with the step-down in M&A and more focused on organic growth, it would make sense. So I'm just curious about just the philosophy in terms of new product R&D spend. Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 24, 2024 / 9:00PM, SSNC.OQ - Q3 2024 SS&C Technologies Holdings Inc Earnings Call

Question: Daniel Perlin - RBC Capital Markets - Analyst : I just wanted to revisit the fourth quarter organic number again, sorry to beat a dead horse here, but like the [2.4 versus the 6.3] did this quarter and I went back and just looking at your comps, so it's certainly easier across some of them, but by no means all of them. So that 400-basis-point deceleration, is there any way you can just help contextualize the areas where we should be focused on that as we think about modeling across those segments? And then in that same question, I thought I heard you say there was maybe some bigger license fees that you pulled in into this quarter around wealth and investment. And did that influence maybe this fourth quarter, I guess, guidance around the organic number as well. Thanks.

Question: Daniel Perlin - RBC Capital Markets - Analyst : Got it. Okay. That's really helpful. Thank you. Just on Blue Prism for the moment in terms of cost opportunities. And I think you said, you're like a little over [1,050] maybe, automated employees. How much further can we go with that? Are you expecting that to continue to be a meaningful contributor to the ability to have a more efficient cost structure, you could go into next year? We top taking that a little bit for the organization. Thank you.

Question: Daniel Perlin - RBC Capital Markets - Analyst : That's great. Thank you very much.

Question: Daniel Perlin - RBC Capital Markets - Analyst : All right. I'm going to say thank you for the last time, but I never really want to touch (laughter) that was my mistake, so apologies (laughter) my apologies.

Question: Kevin McVeigh - UBS Equities - Analyst : Brian, you mentioned that you're carrying a higher-than-expected cash balance that you expect to deploy in Q4. Would that be the capital return M&A? Just any thoughts around that?

Question: Kevin McVeigh - UBS Equities - Analyst : Got it. And then just obviously, the organic growth was really strong, but it sounds like there were -- was it 8 million in total health care licenses that were pushed, so is there a way to think about it would have been that much stronger if that was in there and that I could shifted to Q4. Is that right?

Question: Peter Heckmann - D.A. Davidson & Company - Analyst : As regards Battea, I understand or at least I inferred from (inaudible) the Investor Day is that revenue can be somewhat project-oriented. I guess how should we think about modeling that? Is there something you think about in terms of seasonality? Or is it just it can look to you guys in terms of one quarter out in terms of how you expect that business to contribute?

Question: Peter Heckmann - D.A. Davidson & Company - Analyst : Okay. That's fair. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 24, 2024 / 9:00PM, SSNC.OQ - Q3 2024 SS&C Technologies Holdings Inc Earnings Call And then just in terms of thinking about the fund shareholder record keeping business into the acceleration, I guess I had speculated just looking at money market flows that the industry may have gotten a number of several million accounts just from flows back into money market accounts. If you think that affected the goods organic revenue or and if so, is there a way to quantify it?

Question: Michael Infante - Morgan Stanley - Analyst : Mike Infante, on for James. Thanks for taking our question. Just wanted to follow up on some of the comp commentary again. There's obviously a wealth of variance factors as we think about '25 organic growth. But given the comps will get progressively tougher at least relative to the 4Q '23 comp as we progress throughout the year, how should we be thinking about some of the drivers that can push you to the midpoint or beyond next year? Thanks.

Question: Michael Infante - Morgan Stanley - Analyst : That's clear. Maybe just on Blue Prism, obviously, a lot of internal expense savings in the form of lower head count. But I'd be curious to hear just how you're thinking about how the net new opportunity for Blue Prism has evolved of late and some of the initiatives that you have in place to return that business to double-digit growth next year?

Question: Ella Smith - J.P. Morgan Securities LLC - Analyst : Hi. This is Ella Smith from Alexei's team. Thanks so much for taking our question. So first, I was hoping you could speak to the strong growth in alternatives AUM. Can you remind us what's driving that strong growth year to date? And how do you think about the forward growth [if alternatives]?

Question: Ella Smith - J.P. Morgan Securities LLC - Analyst : That makes a lot of sense, Bill. Thank you. And for my follow-up, I'm sorry if I missed this, but I noticed the strong step-up in organic growth for wealth and investment technologies. Could you please remind us what your -- was there a big dealer too, if I may.