SS&C Technologies Holdings, Inc.

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the SSNC Technologies Third Quarter 2021 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, simply press star 1 again. Thank you. I would now like to turn the call over to Justine Stone, Investor Relations, for opening remarks. You may proceed.

Hi, everyone. Welcome and thank you for joining us for our Q3 2021 earnings call. I'm Justine Stone, Head of Investor Relations for SS&C. With me today is Bill Stone, Chairman and Chief Executive Officer, Rahul Kanwar, President and Chief Operating Officer, and Patrick Pedanti, our Chief Financial Officer. Before we get started, we need to review the Safe Harbor Statement. Please note the various remarks we make today about future expectations, plans, and prospects, including the financial outlook we provide constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Security Litigations Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the risk factor section of our most recent annual report on Form 10-K, which is on file at the SEC and can also be accessed on our website. These forward-looking statements represent our expectations only as of today, October 28, 2021. While the company may elect To update these forward-looking statements, it specifically disclaims any obligation to do so. During today's call, we will be referring to certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to comparable GAAP financial measures is included in today's earnings release, which is located in the investor relations section of our website at www.ssctech.com. In the third quarter, we entered into a joint venture named Domani Rx LLC, in which we are the majority interest holder and primary beneficiary. All earnings figures discussed today, including operating income, EBITDA, net income, and EPS, are attributable to SSMC based on the ownership interest retained by SSMC. I will now turn the call over to Bill.

Thanks, Justine, and thank everyone for joining. Our results for the third quarter are $1.266 billion in adjusted revenue, up 9.5%, and $1.32 in adjusted diluted earnings per share, up 20%. Adjusted consolidated EBITDA was $530 million, and we are on track to end the year with over $2 billion in EBITDA. Our adjusted consolidated EBITDA margin grew to 42%. 0.6% in the quarter, up 230 basis points from Q3 2020. Our third quarter adjusted organic revenue was 8.2% as we continue to gain momentum and beat Q2 7.2% organic revenue. All of our businesses outperformed our expectations and our alternatives, interlinks and software businesses drove the top line growth. We have accelerated our new business wins and competitive takeaways while capitalizing on strong markets. The past few quarters highlights S&C's financial power. Without digesting large acquisitions, we were able to drive strong top line growth organically while improving margins over 200 basis points and growing earnings at 20%. We have maintained our lower cost structure through the pandemic and continue to drive efficiencies through automation. Machine learning, robotics, process automation, and artificial intelligence capabilities are being implemented across our businesses and products. We are currently rolling out our strategic development enhancement within the hedge fund services portal, whereby we are leveraging various AI principles and concepts to enhance controls, provide greater transparency around NAV anomalies, exceptions, and key operational processes. This new product is called Go Central. These types of development efforts not only generate revenue, but are margin enhancing. SS&T generated net cash from operating activities of $944.8 million for the nine months ended September 30, 2021, up 25% from the same period last year. We repurchased 2.1 million shares of common stock in Q3 2021 at an average price of $75.97 per share for $162.9 At our current valuation, we will continue to aggressively buy back stock. We've paid down $317.8 million in debt for the first nine months of 2021, and our leverage ratio stands at 1.97 times secured and 2.96 times total leverage. We remain committed to a shareholder-friendly capital allocation strategy, and now that we are under 3.0, Times levered, we have increased flexibility to allocate more cash towards buybacks. Our business is running on all cylinders. Our pipelines are strong with increasingly complex global large deals as organizations review their complete operating model and technology stack. Several of our products have met milestones, the most recent being Precision LM, exceeding 100 clients. The growth comes as banks and non-bank lenders have increased their investment portfolios, private credit lending activities, and exposure to commercial and residential loans. Precision LM added 20 new clients in the last 12 months. We are capitalizing on market trends and recently launched our ESG reporting solutions platform for asset managers to better monitor and report on ESG exposure. Our solution provides accurate and detailed ESG ratings data, which is a game changer to help investors understand sustainable investing and ESG exposures. I'll now turn the call over to Rahul to discuss the quarter in more detail. Thanks, Bill.