SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Q4 2022 Earnings Call Transcript

Bill Stone: Yeah. I think we will have had Blue Prism for a year in the middle of March and we are rapidly deploying digital workers. But the ramp up will be obviously higher as each quarter goes and the savings that we will incur will be heavily weighted probably to Q3 and Q4, just as the use of those digital workers will be full time in those quarters and less so as much in Q1.

Alex Kramm: Okay. Fair enough. And then flipping to the revenue side, I think, 2% to 6% organic, that’s an acceleration clearly from where we were in 2022. So, I mean, anything to point out, any puts and takes, but in particular, I mean, Healthcare obviously, was a big detractor in 2022. So is this now all in the run rate or is it actually a little bit more bleeding or should that business actually start growing again? And then since you just mentioned Blue Prism, I think, last quarter you actually gave the growth rates and now that it’s flipping organic, it would be very helpful to see how the business is doing on an external perspective. So any other comments on organic would be helpful? Thanks.

Bill Stone: Yeah. Well, again, I think, we have — go ahead, Patrick.

Patrick Pedonti: Well, just to answer a few of your questions. I think, Blue Prism turns organic in mid-March, right, of 2023. But if you calculate the revenue growth this past year organically, I think, they have averaged in the mid-teens, maybe a little bit higher and they were about 13% in Q4 and we expect them to be around mid-teens in 2023.

Alex Kramm: And then on the Healthcare side, sorry, again, since that was the biggest area of weakness, is that behind us?

Patrick Pedonti: I think the — on the Healthcare side, there will be a little bit of reduction in the revenue reduce. So I think they were down about 20% in 2022 and might be down about 10% in 2023, especially in the first half of the year with the comparables.

Alex Kramm: Okay. So is that still new client losses and should we just expect that, that business doesn’t really grow organically until DomaniRx really kicks in or is it just a holding pattern that clients are in or how are you thinking about Healthcare in general, what’s going on under the hood?

Bill Stone: Well, we send a lot of things in health

Patrick Pedonti: I think there

Bill Stone: in Healthcare and I think that we have a lot of opportunity. The question is, obviously, is you have to hit those Healthcare systems on renewal dates. So we are cautiously optimistic that Domani is progressing well and we have some talented people working on that and I think that there is not gigantic optimism for 2023, but we think there’s a pretty good ramp we can get to in 2024.

Alex Kramm: Excellent. Thank you very much guys.

Operator: Your next question comes from the line of Jeff Schmitt with William Blair.