Ss And C Technologies Holdings Inc's Business Segments
Ss And C Technologies Holdings Inc's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Revenue Share by Reportable Segment - FY
- Software-enabled Services85.5%
- Maintenance and Term Licenses12.9%
- Professional Services1.5%
- Perpetual Licenses0.2%
Revenue by Reportable Segment - FY
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Software-enabled Services | $ 1,407 | 85.5% |
| Maintenance and Term Licenses | $ 212 | 12.9% |
| Professional Services | $ 24 | 1.5% |
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Revenue Share by Region - FY
- EMEA Excluding United Kingdom21.9%
- Asia Pacific and Japan6.5%
Revenue by Geographic Region - FY
| Region | Revenue (Millions) | % of Total |
|---|---|---|
| EMEA Excluding United Kingdom | $ 361 | 21.9% |
| Asia Pacific and Japan | $ 106 | 6.5% |
Revenue by Product & Service Category - FY
- Software Enabled Services85.5%
- License and Maintenance14.6%
- Maintenance and Term Licenses12.9%
- Professional Services1.5%
- Perpetual Licenses0.2%
Revenue by Product & Service Category - FY
| Category | Revenue (Millions) | % of Total |
|---|---|---|
| Software Enabled Services | $ 1,407 | 85.5% |
| License and Maintenance | $ 240 | 14.6% |
| Maintenance and Term Licenses | $ 212 | 12.9% |
Product and service categories are a supplemental disclosure and are not required to sum to consolidated revenue or to the reportable segments above.
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Annual Results
Revenue Share by Reportable Segment - FY
- Software-enabled Services85.5%
- Maintenance and Term Licenses12.9%
- Professional Services1.5%
- Perpetual Licenses0.2%
Revenue by Reportable Segment - FY
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Software-enabled Services | $ 1,407 | 85.5% |
| Maintenance and Term Licenses | $ 212 | 12.9% |
| Professional Services | $ 24 | 1.5% |
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Description of Ss And C Technologies Holdings Inc
We are a leading provider of mission-critical, sophisticated software products and software-enabled services that allow financial services providers to automate complex business processes and effectively manage their information processing requirements. Our portfolio of software products and rapidly deployable software-enabled services allows our clients to automate and integrate front-office functions such as trading and modeling, middle-office functions such as portfolio management and reporting, and back-office functions such as accounting, performance measurement, reconciliation, reporting, processing and clearing. Our solutions enable our clients to focus on core operations, better monitor and manage investment performance and risk, improve operating efficiency and reduce operating costs. We provide our solutions globally to approximately 11,000 clients, principally within the institutional asset and wealth management, alternative investment management, financial advisory and financial institutions vertical markets. In addition, our clients include commercial lenders, real estate investment trusts (“REITs”), corporate treasury groups, insurance and pension funds, municipal finance groups and real estate property managers.
We provide the global financial services industry with a broad range of software-enabled services, which consist of software-enabled outsourcing services and subscription-based on-demand software that are managed and hosted at our facilities, and specialized software products, which are deployed at our clients’ facilities. Our software-enabled services, which combine the strengths of our proprietary software with our domain expertise, enable our clients to contract with us to provide many of their mission-critical and complex business processes. For example, we utilize our software to offer comprehensive fund administration services for alternative investment managers, including fund manager services, transfer agency services, funds-of-funds services, tax processing and accounting. We offer clients the flexibility to choose from multiple software delivery options, including on-premise applications and hosted, multi-tenant or dedicated applications. Additionally, we provide certain clients with targeted, blended solutions based on a combination of our various software and software-enabled services. We believe that our software-enabled services provide superior client support and an attractive alternative to clients that do not wish to install, manage and maintain complicated financial software.
Our business model is characterized by substantial contractually recurring revenues, high operating margins and significant cash flow. We generate revenues primarily through our high-value software-enabled services, which are typically sold on a long-term subscription basis and integrated into our clients’ business processes. Our software-enabled services are generally provided under contracts with initial terms of one to five years that require monthly or quarterly payments and are subject to automatic annual renewal at the end of the initial term unless terminated by either party. We also generate revenues by licensing our software to clients through either perpetual or term licenses and by selling maintenance services. Maintenance services are generally provided under annually renewable contracts. As a consequence, a significant portion of our revenues consists of subscription payments and maintenance fees and is contractually recurring in nature. Our pricing typically scales as a function of our clients’ assets under management, the complexity of asset classes managed, the volume of transactions, and the level of service the client requires.
Our contractually recurring revenue model helps us minimize the fluctuations in revenues and cash flows typically associated with up-front, perpetual software license revenues and enhances our ability to manage costs. Our contractually recurring revenues, which include our software-enabled services and maintenance and term licenses revenues, represented 94% of total revenues in the year ended December 31, 2017. We have experienced average revenue retention rates in each of the last five years of greater than 90% on our software-enabled services and maintenance and term licenses contracts for our core enterprise products. We believe that the high value-added nature of our products and services has enabled us to maintain our high revenue retention rates and significant operating margins.
We serve a number of vertical markets within the financial services industry, including alternative investment funds, investment management firms, insurance companies, registered investment advisors (“RIAs”), wealth managers, banks and brokerage firms. We believe that financial services providers will increasingly turn to information technology (“IT”) solutions, provided by an independent vendor, as a result of economic challenges and heightened regulatory requirements. Financial service firms are in a search for more risk-averse business strategies, simplified regulatory compliance, and full service solutions provided by a single vendor. As a result, we believe the financial services industry will continue to invest in IT and outsourcing solutions in 2018.
Segments and Product Offerings:
1. Software Solutions:
SS&C provides various software platforms that integrate seamlessly with existing systems within financial institutions. These include:
- Geneva: A robust global portfolio management platform ideal for asset managers and hedge funds, offering extensive capabilities for real-time portfolio management, reconciliation, risk assessment, and high-volume processing of diverse securities.
- Advent Portfolio Exchange (APX): A comprehensive solution that integrates both front-office operations such as marketing and prospecting with back-office functions like performance measurement and accounting. Its suitable for wealth managers and asset managers serving high-net-worth and institutional clients.
- PORTIA: A middle-to-back-office solution targeted at global investment managers that handles multi-currency transaction processing, corporate actions, and reporting.
- HiPortfolio: Investment accounting software that supports the complete lifecycle of investment transactions, offering full fund accounting capabilities.
- CAMRA: A multi-user investment management software designed for institutional investors that encompasses transaction execution, accounting, and reporting.
- Total Return: Specifically designed for hedge funds and family offices, offering comprehensive financial and tax accounting functionalities.
2. Outsourcing Services:
SS&C’s software-enabled outsourcing services are pivotal in reducing the operational burden on financial institutions, which include:
- SS&C GlobeOp: Specializing in fund administration, this service provides hedge funds and alternative investment managers with comprehensive administrative support using proprietary technology.
- Black Diamond: A cloud-based portfolio management platform designed for independent advisors and wealth managers. It provides features like aggregation, reporting, and reconciliation, allowing advisors to focus more on client service and minimize IT infrastructure costs.
- SS&C Direct: These services extend to full business process outsourcing (BPO) for institutional asset managers, insurance companies, and hedge funds, focusing on automated investment accounting and operations.
3. Financial Data Services:
SS&C maintains robust capabilities in data management and reporting:
- Evare: A leader in financial data acquisition, transformation, and delivery, Evare facilitates seamless communication and data integration for financial institutions.
- SVC (Securities Data Consolidation): SVC provides an integrated source of securities data, streamlining the acquisition of pricing, corporate actions, and market-related data necessary for effective investment management.
4. Performance Measurement and Risk Management:
Recognizing the importance of analytics in investment management, SS&C provides solutions such as:
- Sylvan: This performance measurement and attribution platform streamlines the calculation and reporting processes necessary for evaluating investment performance.
- Anova: This solution acts as a central data hub, providing clients with detailed performance attribution analytics to decipher portfolio sources of risk and return.
5. Banking and Lending Solutions:
SS&C offers comprehensive banking and lending management systems, including:
- Precision LM: A unified application for commercial loan management that supports origination and servicing, increasing operational efficiency.
- Global Debt Manager (GDM): A suite of solutions for global registrar and transfer agency operations, catering to a broad range of debt instruments and helping streamline corporate trust operations.
6. Trading and Treasury Operations:
SS&C’s trading solutions support both buy-side and sell-side operations:
- Moxy: This platform serves investment managers by automating trade order processes and streamlining portfolio construction.
- Antares: A real-time trading and P&L reporting system designed to handle various asset classes—integrating trading with in-depth analytics.
Client Communication and Reporting:
Understanding the importance of effective client engagement, SS&C provides:
- SS&C VisionFI: An end-to-end solution for designing, producing, and distributing customized client communications.
- Pages: A solution for generating personalized client reports and statements with automated workflows, enhancing client presentations.
8. Property Management Solutions:
For property management firms, SS&C offers:
- SKYLINE: This software integrates various aspects of real estate property management, optimizing leasing, accounting, and reporting functions.
9. Professional Services:
SS&C’s professional services encompass consulting, implementation, training, and ongoing support to ensure the successful deployment and adoption of their software solutions. This robust support infrastructure is crucial for facilitating smooth transitions and operational efficiencies.
10. Support and Training:
Maintaining a strong client relationship, SS&C provides dedicated support teams, product training sessions, and regular updates to keep clients informed of industry developments and software capabilities.
Through these diverse segments and offerings, SS&C Technologies serves a wide array of clients in the financial industry, ranging from hedge funds to wealth managers, banks, and other financial institutions, ensuring they can effectively navigate the complexities of financial operations and data management. The continuous evolution of their technology ensures clients can adapt to changing market demands while enhancing operational efficiency and client engagement.