We have taken a different approach to our CEORater Technology CEOs of the Year selection process in 2021. No longer do we call out “Payments” as a separate category given that some of the largest payments flow occurs inside of Technology giants such as Apple and Amazon. We now have three categories: 1.) FinTech; 2.) Information Services; and 3.) Platform Companies. Today we announce the winner of the FinTech category:
FinTech: Bill Stone, founder, Chairman and CEO, SS&C Technologies (ticker: SSNC).
Think of SS&C Technologies as a Platform company for the Financial Services/Insurance industry.
SS&C kickstarted its revenue growth engine in 2021 through a continued focus on sales execution which has helped steady acquired businesses such as DST while enabling businesses such as Eze and Intralinks to thrive as end-markets strengthened.
SS&C has remained disciplined regarding its M&A strategy and has selectively pursued smart acquisitions at attractive valuations, the most recent examples being RPA firm Blue Prism and Hubwise.
SS&C customer retention rates remained strong through the COVID period and beyond (95.8% and 96.5% in FY 2020 and Q3 2021 respectively), while some large bank competitors suffered on the service delivery side.
SS&C – the AUA leader in the Alternatives space ($2.23 Trillion AUA, Q3 2021) – is well-positioned for 2022 and beyond both in terms of Operational Execution and Stock Price performance in our view. The combination of mid-to-high single-digit percentage Revenue growth, double-digit Operating Cash Flow growth, smart acquisitions, a regular dividend and a reasonable valuation should prove compelling in 2022 and 2023 as the Fed moves interest rates higher.
YTD Revenue Growth: 8.4%
YTD Adjusted Operating Income Growth: 13.0%
YTD Operating Cash Flow Growth: 25.1%
YTD Total Stock Return: 10.3%
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