SS&C Technologies Holdings, Inc.

Good day, everyone, and welcome to the SS&C Technologies First Quarter 2022 Earnings Call. Today's call is being recorded, and 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, and if you would like to ask a question during this time, simply press the star key, followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. Thank you, and I would now like to turn the call over to Justine Stone, Head of Investor Relations. Please go ahead.

Hi, everyone. Welcome and thank you for joining us for our first quarter 2022 earnings call. I'm Justine Stone, Investor Relations for SS&C Technologies. 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 that 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 Private Security Litigation and 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 factors section of our most recent annual report on Form 10-K, which is on file with the SEC and can also be accessed on our website. These forward-looking statements represent our expectations only as of today, April 28, 2022. 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 refer you 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. Also, in the third quarter 2021, we entered into a joint venture named Domani RX LLC, 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 SS&C based on the ownership interest retained by SS&C. I will now turn the call over to Bill.

Thanks, everyone, for joining. Our results for the first quarter were $1,296,000,000 in adjusted revenue, up 4.9% and $1.25 in adjusted diluted earnings per share. up 5.9%. Adjusted consolidated EBITDA was $514.9 million for the quarter, the highest first quarter in our 35-year history. Our EBITDA margin was 39.8%. Our first quarter adjusted organic revenue was up 4.3%. Our alternatives, interlinks, and advent businesses were the growth leaders for the quarter. X the impact of our healthcare business, our Q1 2022 organic growth and financial service which is over 90% of our revenue was 5.9%. SSNC generated net cash from operating activities of $183.5 million for the three months ended March 31, 2022. In the quarter, we bought back 2.3 million shares and average price of $75.22 per share for a total of $170.9 million. We also used cash on hand to help fund the acquisition of Blue Prism and HubWise. which both closed in March. Our consolidated net leverage ratio now stands at 3.48, and our net secured leverage ratio is 2.51. We expect to reduce our gross leverage to 3.0 by the end of the year, while remaining active with our share repurchase program. These are exceptional numbers given the global uncertainty and resultant hesitancy of our customers. We're excited to add Blue Prison Team and their automation capabilities into S&C's arsenal. Blue Prism will continue growing revenues at 15% to 20% with the potential to accelerate with its successful cross-sale initiatives. We estimate the enterprise-grade intelligent automation market to be in excess of $150 billion. Based off McKinsey's estimate, 30% of all roles can be automated. Companies across the world continue to struggle with the labor market, and we are in a great position to capitalize on this disruption. Currently, Blue Prism, like most fast-growing new technology companies, is operating at a loss. Through revenue growth and cost controls, we expect 15% to 20% EBITDA margins exiting 2023 and 30% to 40% EBITDA margins exiting 2024. I'll now turn the call over to Rahul to discuss the quarter in more detail.