SS&C Accelerated Growth and Raised Full-Year Outlook
Adjusted earnings reached a record $1.76 a share, topping the prior forecast by $0.06.
SS&C Technologies Holdings (SSNC), a financial-services software provider, accelerated adjusted organic revenue growth to 7.6% in the second quarter from 5.0% in the first and 5.3% in the fourth quarter.
The improvement reflected broader growth across several businesses, helping SS&C extend its recovery in profitability and raise its full-year outlook. GAAP operating margin increased for a second consecutive quarter, reaching 24.6% from 24.2% in the first quarter and 22.3% in the fourth.
Revenue rose 10.3% from a year earlier to $1.696 billion, accelerating from 8.8% growth in the first quarter. GAAP net income increased 29.9% to $234.8 million, while diluted earnings rose 34.7% to $0.97 a share, compared with 8.3% earnings growth in the prior quarter. Adjusted earnings increased 18.1% to $1.76 a share.
Wealth and Investment Technologies led the broadening, posting 9.8% organic growth after contracting 0.4% in the first quarter. Intralinks accelerated to 7.4% growth from 3.2%, and GlobeOp improved to 9.0% from 6.7%. GIDS and related businesses remained a contributor, though growth slowed to 8.9% from 10.4%.
Technology-enabled-services revenue increased 11.1% to $1.408 billion, outpacing the 6.8% rise in license, maintenance and related revenue. Intelligent Automation & Analytics contracted 1.0% organically, while Healthcare declined 3.1%, reversing growth in both businesses during the first quarter.
Operating income rose 21.1% to $417.1 million, more than twice the pace of revenue growth, as the GAAP operating margin expanded 2.2 percentage points. Adjusted EBITDA increased 11.7% to a record $670.7 million, and its margin rose half a percentage point from a year earlier to 39.5%.
The company now expects full-year adjusted revenue of $6.672 billion to $6.832 billion, lifting each endpoint by $18 million from its initial forecast. It projects adjusted earnings of $6.93 to $7.25 a share, an increase of $0.23 at both ends since February.
SS&C repurchased a record 6.4 million shares for $435.2 million during the quarter, up from $168.0 million in the first quarter, bringing total quarterly shareholder returns to $499.2 million. Six-month operating cash flow rose 11.1% to $716.4 million, providing support for the faster pace of buybacks.