SS&C Technologies Holdings, Inc.

Please stand by. We're about to begin. Good afternoon, ladies and gentlemen, and welcome to the SS&C Technologies Q3 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode, and please be advised that this call is being recorded. After the speaker's prepared remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star 1 on your telephone keypad, and if you do find that your question has been addressed, You can withdraw your question by pressing star one again. And we do ask that you please limit yourself to one question and one follow-up question. Now, at this time, I would like to turn the call over to Ms. Justine Stone, head of investor relations. Please go ahead, ma'am.

Welcome, and thank you for joining us for our Q3 2023 earnings call. I'm Justine Stone, investor relations for SSMC Technologies. With me today is Bill Stone, Chairman and Chief Executive Officer, Rahul Kanwar, President and Chief Operating Officer, and Brian Schell, 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 provision under the Private Security Litigation 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, October 26, 2023. While a 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. I will now turn the call over to Bill.

Thanks Justine and thanks everyone for joining. Let's all welcome Brian to his first SS&C earnings call. He's been with us for two months and has found his bearings. We're excited about his ideas and intellect he brings to the organization and I encourage all of you to get to know him. Results for the third quarter are record adjusted revenue of $1,366.7 million, up 3.4% and adjusted diluted earnings per share of $1.17. We also achieved our second highest adjusted consolidated EBITDA in our history at $533.9 million. Our EBITDA margin was 39.1%, a 230 basis point increase from Q2-23. Our third quarter adjusted organic revenue was up 2.3%, driven by strength in our alternatives, particularly private markets, interlinks, retirement, and Blue Prism. Our recurring revenue growth, which omits the licensed and professional service revenue streams, was up over 5%, which we think is an indicator of our underlying business's strength. Financial services retention rate for Q3 2023 was 97.3%, the highest level in SS&C history. SS&C generated cash from operating activities of $826.7 million for the nine months ended September 30, up 8.1% over the same period last year. In Q3 2023, we bought back 1.7 million shares for 96.9 million at an average price of $55.82. We also raised our common stock quarterly dividend 20% to 24 cents per share, delivering 156.6 million in total cash return to shareholders in the quarter and 501.9 million year to date. SS&C paid down 54.7 million in debt in Q3 2023, bringing our net leverage ratio to 3.18 times consolidated EBITDA, attributable to SS&C. In the near term, we believe SS&C's common stock is undervalued, and we expect to maintain a higher level of stock repurchases versus debt paydown. We've made a lot of progress within the firm-wide Blue Prism digital worker deployment. We have a 2,000 full-time equivalent headcount savings year-to-date, which is 7% of our January 1, 2023 employee base. Conservatively, at $50,000 per FTE, this is $100 million in run rate savings. So far, the biggest successes have been within our large outsourcing businesses, GIDS, and alternative fund services. One example is a GIDS client asked us to run a campaign to contact over 20,000 customers to clear their small cash balances. We programmed 25 Blue Prism digital workers to perform the follow-on processing. saving about $140,000 on contractors that would have been required to process the responses manually. Within alternatives, operational functions such as manual statement downloads, reconciliation and break investigation and resolution, investor statement and contract notes, and loan closing and compliance have benefited from digital workers. We believe we have just begun to reap the benefits from this initiative. I'll now turn the call over to Rahul to discuss the quarter in more detail.