The chart below shows how SSNC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SSNC sees a -1.99% change in stock price 10 days leading up to the earnings, and a +1.32% change 10 days following the report. On the earnings day itself, the stock moves by +0.18%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q4 2024 Revenue Increase: Record adjusted revenue of $1.531 billion in Q4 2024, representing an 8.4% increase year-over-year.
Earnings Per Share Increase: Adjusted diluted earnings per share reached $1.58, a 25.4% increase compared to Q4 2023.
EBITDA Growth and Margin: Adjusted consolidated EBITDA was $599.1 million, up 6.5%, with a margin of 39.1% for the quarter.
Operating Cash Flow Increase: Cash from operating activities increased by 25.3% to $486.6 million in Q4 2024, achieving a cash flow conversion percentage of 101%.
Share Repurchase Commitment: Share repurchases totaled 4.9 million shares for $365 million at an average price of $74.46 per share, reflecting a strong commitment to returning capital to shareholders.
Negative
Rising Operational Costs: Core expenses increased 8.3% or $72 million, primarily driven by increased incentive compensation, commissions, and wages, indicating rising operational costs that could impact profitability.
Interest Expense Analysis: Interest expense for Q4 2024 was $113 million, despite a decrease of $6 million from Q4 2023, highlighting ongoing debt obligations that may constrain financial flexibility.
Share Count Increase: The diluted share count increased to 254.5 million from 254.1 million at Q3 2024, reflecting potential dilution of shareholder value amid share repurchase activities.
Revenue Guidance Decline: For Q1 2025, revenue guidance is projected to be in the range of $1.474 to $1.514 billion, indicating a potential decline in growth momentum compared to Q4 2024's $1.531 billion.
High Leverage Concerns: The total leverage ratio was reported at 2.89 times, suggesting a high level of debt relative to EBITDA, which may raise concerns about financial stability and risk management.
SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2024 Earnings Call Transcript
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