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Data & Business Process Services Stocks Q3 Recap: Benchmarking SS&C (NASDAQ:SSNC)

SSNC Cover Image

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how data & business process services stocks fared in Q3, starting with SS&C (NASDAQ: SSNC).

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 11 data & business process services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3.4% on average since the latest earnings results.

SS&C (NASDAQ: SSNC)

Founded in 1986 as a bridge between technology and financial services, SS&C Technologies (NASDAQ: SSNC) provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.

SS&C reported revenues of $1.57 billion, up 7% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ billings estimates.

“SS&C reported record adjusted revenues of $1,569 million and adjusted consolidated EBITDA of $619 million. These numbers attest to the company’s long-term financial and operating strength. The 22% increase to $1,101 million in operating cash flow through three quarters gives us flexibility to pursue growth opportunities as we continue to pay down debt and repurchase shares,” says Bill Stone, Chairman and Chief Executive Officer.

SS&C Total Revenue

Interestingly, the stock is up 7.6% since reporting and currently trades at $87.

Is now the time to buy SS&C? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Planet Labs (NYSE: PL)

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Planet Labs reported revenues of $81.25 million, up 32.6% year on year, outperforming analysts’ expectations by 12.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Planet Labs Total Revenue

Planet Labs scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 50.5% since reporting. It currently trades at $19.70.

Is now the time to buy Planet Labs? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Verisk (NASDAQ: VRSK)

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $768.3 million, up 5.9% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

Verisk delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 3.4% since the results and currently trades at $224.25.

Read our full analysis of Verisk’s results here.

Fair Isaac Corporation (NYSE: FICO)

Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE: FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.

Fair Isaac Corporation reported revenues of $515.8 million, up 13.6% year on year. This print met analysts’ expectations. Taking a step back, it was a slower quarter as it logged full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ ARR estimates.

Fair Isaac Corporation had the weakest full-year guidance update among its peers. The stock is up 3.4% since reporting and currently trades at $1,685.

Read our full, actionable report on Fair Isaac Corporation here, it’s free for active Edge members.

Broadridge (NYSE: BR)

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE: BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Broadridge reported revenues of $1.59 billion, up 11.7% year on year. This result topped analysts’ expectations by 3.4%. It was a stunning quarter as it also recorded a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The stock is up 1.3% since reporting and currently trades at $224.15.

Read our full, actionable report on Broadridge here, it’s free for active Edge members.


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