SS&C Technologies Holdings, Inc. Price & Performance (SSNC)

Forward looking statements represent our expectations only as of today, 04/24/2025. The company may elect to update these forward looking statements, it's specifically disclaims any obligation to do so. During today's call, we will be referring to certain non GAAP financial measures, A reconciliation of these non GAAP financial measures to comparable GAAP financial measures is included in today's earnings release which is located in the Investor Relations section of our site at www.ssctech.com. I will now turn over the call to Bill.

John, and welcome, everyone. Our first quarter results are adjusted revenue of $1,514,800,000 up 5.5% and adjusted diluted earnings per share of 1.44 an 8.3% increase. Adjusted consolidated EBITDA was 591,900,000.0 up 6.3%, resulting in quarterly adjusted consolidated EBITDA margin of 39.1%. Our first quarter adjusted organic revenue growth was 5.1% Performance was driven by our GlobeOp wealth and investment technologies and Global Investor and Distribution Service business.

Globant posted strong results with strong results with organic growth of 10.3% and positive trends in private market and retail alternatives. Wealth and Investment Technologies saw continued strength in the wealth segment and Guides met its client wins and volumes targets. Continue to feel good about our health business, which finished the quarter approximately flat Our recurring revenue growth rate for financial service was 5.9% in Q1 which includes all software enabled services. And maintenance revenue. For the three months ended 03/31/2025, cash from operating activities was 272,200,000.0 up 50.8% from Q1 'twenty four. Bought back 2,400,000.0 shares $206,900,000 at an average price of 87.21 Consistent with our historical capital allocation practices, we will continue to buy shares CS continues to see success internationally across several of our businesses During the quarter, we signed our strategic lift out agreement with Insignia Financial and have since won additional Australian mandates. In March, we hosted one SS and C event in Sydney, which has led to an increased profile we met with a number of our largest clients. And we remain bullish. On Australia. Geneva had one of its best quarters in EMEA history winning three major deals in the region. Are outpacing our competitors in discriminating functional depth and breadth.

Globally. Private markets has also enjoyed the fruits of international expansion expansion, growing 14% in Q1. We are currently focusing efforts on The Middle East, which flagship clients driving regional growth. We've strengthened our presence in The Middle East by opening a new office in Riyadh, Saudi Arabia, addition to our offices in Abu Dhabi and Dubai. I'll now turn the call over to Rahul to discuss the quarter in more detail. Thanks, Bill. We had a strong first quarter with organic revenue growth of 5.1%.

GlobeOp started 2025 on a high note posting 10.3% organic growth. The integration of BATEA is also progressing well and we've already won 10 cross sell customers. In addition to these results, we're seeing healthy activity in key areas particularly in retail alternatives and private markets. Our Wealth and Investment Technologies business delivered strong results driven by Alps Advisors and the Black Diamond Wealth Platform, Our strategic alliance with Morningstar is expanding the opportunity set. We're also advancing customer transitions to the Genesis platform with solid engagement across our prospects. Global Investor and Distribution Solutions business saw steady growth supported by key customer renewals and new retirement mandates. We continue to see a healthy flow of opportunities across global markets. Demand for AI driven automation remains high. Earlier this month, we launched our global governance first AI platform at Blue Prism Live in London. As part of the launch, we introduced a unified trust layer designed to help regulated customers adopt advanced technology with confidence using embedded guardrails and policy based execution. This positions Blue Prism as a trusted partner in enterprise transformation. We also continue to deploy Blue Prism and other automation technologies internally and we've achieved a cumulative benefit of more than 3,300 full time equivalents since we launched this effort in early twenty twenty three.

We recently introduced 20 new AI agents capable of handling complex unstructured content including vendor contracts and limited partner capital statements. These innovations are central to efforts to support customers on their own AI journeys, With that, I'll turn it over to Brian to talk through the financials. Thanks, Rahul, and good day, everyone. As noted in our press release, our Q1 twenty twenty five GAAP results reflect revenues of $1,514,000,000 net income of $213,000,000 and diluted earnings per share of $0.84 Our adjusted non GAAP results include revenues of $1,510,000,000 an increase of 5.5% over Q1 twenty twenty four and adjusted diluted EPS of 1.4480.3% increase over Q1 twenty twenty four. The adjusted revenue increased to $79,000,000 over Q1 twenty four was primarily driven by incremental organic revenue contributions from GlobeOp of $34,000,000 WIT of $14,000,000 and GIBs of $9,000,000 offset by an unfavorable impact from foreign exchange of $7,000,000 As a result, adjusted organic revenue growth was 5.1% and our core expenses also increased 5.1% or $45,000,000 which excludes acquisitions on a constant currency basis. Adjusted consolidated EBITDA was $592,000,000 reflecting an increase of $35,000,000 or 6.3%, from Q1 twenty twenty four a margin of 39.1% a 30 basis point expansion.

Net interest expense for the quarter was $105,000,000 a decrease of $11,000,000 from Q1 twenty twenty four primarily reflecting lower short term interest rates. Adjusted net income was $366,000,000 up 9%, resulting in adjusted diluted EPS of 1.44 the increase of 8.3%. Our effective non GAAP tax rate was 24%, Note for comparison purposes, we have recast the 2024 adjusted net income quarterly results to reflect the full year effective tax rate of 23.1%. An increase in the average share price drove the diluted share count up from 254,900,000.0 from 253,300,000.0 year over year. Cash flow from operating activities grew 51%, which is driven by growth in earnings, as well as improved working capital utilization. Our quarterly cash flow conversion was 74% up from 54% last year. SSCC ended the first quarter with $515,000,000 in cash and cash equivalents and $6,900,000 in gross debt. SSCs net debt was $6,400,000,000 and our LTM consolidated EBITDA was $2,300,000,000 The resulting net leverage ratio is 2.74 times. We look forward to the second quarter and the remainder of the year with respect to guidance. We will continue to focus on client service and assume retention rates will continue to be in the range of our most recent results.

We will continue to manage our expense by controlling and aligning variable expenses, increasing productivity to improve our operating margins, and effectively investing in the business, through marketing, sales and R and D. Specifically, we have assumed foreign currency exchange will be at current levels, interest rates to remain at current levels, and effective tax rate of approximately 24% on an adjusted basis capital expenditures to be 4% to 4.4% of revenues which is a slight reduction from prior guidance a stronger weighting to share repurchases versus debt reduction. For the second quarter of twenty twenty five, we expect revenue to be in the range of 1.489 to $1,529,000,000 and 2.5% organic revenue growth at the midpoint. Adjusted net income in the range of $3.43 to $359,000,000 interest expense excluding amortization and deferred financing costs original issue discount in the range of 102,000,000 to $104,000,000 diluted shares in the range of $254,000,000 to $255,000,000 and adjusted diluted EPS in the range of $1.35 to $1.41 For the full year 2025, we are modestly raising our top line guidance by $13,000,000 at the midpoint and now expect revenue to be in the range of $6,110,000,000 to $6,238,000,000 Bearing in mind recent macro uncertainty, geo geopolitical conditions and market volatility, We note FX translation has influenced our organic growth rate guide for the next for the year.

Current FX rates provide a potential top line benefit though we remain appropriately conservative in the current environment. We now expect 4.4% organic revenue growth at the midpoint. We continue to expect organic growth to ramp up in the second half of the year based on our current view of the pipeline expected contribution from already sold deals BATEA turning organic. For the full year 2025, we are slightly raising our earnings guidance Specifically, we expect adjusted net income in the range of 1.441 to $1,541,000,000 diluted shares in the range of $253.7 to 256,700,000.0 adjusted diluted EPS in the range of $5.68 to $6 up $04 at the midpoint and cash from operating activities to be in the range of 1.458 to $1,558,000,000 Our 2025 guidance reflects our solid results in Q1 with a continued positive outlook for the remainder of the year We are also positioning ourselves to better support our growth acquisitions and integration plans with the conversion of our multiple general ledger systems into a single platform by the end of the third quarter this year. And now back to Bill.

Thanks, Brian. We also added Francesco Voni, Diartetti to our Board in March, and we welcome him. He had a very impressive career at Citibank. And he currently serves as chairman of the board of directors of Euroclear Holdings. As a member of the Board of Mad Fuch. MAPFREE. We are excited about the extensive experience he brings in operational and corporate transactions. We are operating in an environment of geopolitical and economic uncertainty, leading to volatility in the global markets. SS and C has a long history of resilient performance during challenging operating environments. We are confident in our business model. We closed out a solid first quarter and continue to execute against our plan. And I will now open it up to Preston.

Your first question is from the line of Jeff Schmitt with William Blair.

Hi, good afternoon. On healthcare, was it just a seasonally weak quarter for that business? And how does your pipeline look currently?

I think healthcare continues to build its pipeline. We're selling into large scale health insurance companies and and and others. So some of it is lumpy. So but but we have a lot of I think we first rolled out Del MonteRx in January 24. And I think in '25, we're expecting to process several hundred million claims And so we have a lot of interest They're very large prospects for us.

And and we remain optimistic.

Okay. And then your organic growth guide for the second quarter, I think it's 2.5%. Is that assuming a slowdown or pause in new business, given all the economic uncertainty? I may have missed that. And if so, could you kind of quantify what you're assuming there?

I would I would say, basically, we're we're just putting a a measure of conservatism in the into the second quarter given everything that's happening in the world right now. So, you know, we're a global business and while we don't believe tariffs are really gonna be a a big impact on us from a financial standpoint, It's opportunity to slow down deals. Is certainly certainly possible. So I think we have a a good pipeline. We've got a lot of deals we've sold, but the revenue has not started flowing in yet. So we're optimistic that we can hopefully surprise you positively.

Okay. Great. Thank you.

Your next question is from the line of Peter Heckmann with D. A. Davidson Company.

Hey, good afternoon. Hopefully, you can hear me. It's a little choppy on this end, but congratulations on finalizing the Insignia deal. Now that it's closed, you think you'd give us a little bit more in terms of your expectations for its to revenue, how much it might, ramp up and you know, whether or not we would be able to, know, see the impact, see see the impact of that ramp on margins in the second half or the first half of twenty twenty six?

Well, I I you know, that the we're we're gonna rebadge about 1,400 people from Insignia to us and that that that will happen, like, July 1, I believe. So most obviously, the ramp is gonna be in the third and fourth quarter. So we'll get about a half a year you know, and that can range anywhere from 35 to $70,000,000. And so we're we're we're optimistic that we can can really do a great job for them and and really take care of their members. And that's what we're focusing on, and we've got a great team that's that's really keeping this thing very well planned. Okay.

Alright. That's helpful. And then just as a follow-up on your decision or the announcement to dissolve another one of the joint ventures with State Street. [indiscernible] That is dissolved, do you expect to to pick up any additional revenue? Like, what what would you say would be the kind of the net effect to to revenue of the some additional revenue recognized at the corporate level and and what would you expect the impact to be on the on the EBITDA line?

As of right now, we're not expecting much impact as a result of that. Most of that is operational. The processing is done within SS and C and in effect what we're doing is simplifying the entity structure. May be some reduction in costs because it simplifies it, but we're not expecting that to be very significant.

Okay. And then just last thing is, where do you expect that to actually finalize and occur?

We're we're working through it now. We don't have a definitive timeline as yet.

Alright. Thank you.

Your next question is from the line of Dan Perlin with RBC Capital Markets.

Thanks. [indiscernible] know, just at a at a high level, again, Bill, on the demand environment, I know you know, we've heard from from other players in the financial services market, banks in particular, have talked about some of their clients pausing Doesn't sound like you're seeing that yet, but I just want to kind of make a a finer point that you know, what are those conversations like? Do you get the sense that they feel like there's there might be an air pocket in the business and decision making, so they they might wanna hold off? I heard comment on the organic growth being measured and conservative. So I get that. But obviously, you talked to a lot of these businesses. I'm just just curious what those conversations are like.

Well, I I think you know, Dan, that there's a there's a awful lot of change happening in in in wealth and asset management. And and there are are sea changes that are being caused by by things like AI and and quantum and and and all kinds of new technologies, probably you know, the the biggest set of new technologies since say, the Internet. Know? So I I think that there's gonna be an awful lot of change And and and I think that you know, I I I read a a note that said two thirds of all CEOs are afraid that if they don't get AI right, they're going to lose their job. So I think there's a lot of trepidation about what's gonna happen in the the technological world, and SS and C is well positioned. To to help our prospects and our clients you know, get through this in a in a really pretty good fashion. We spend lots of money on this. We we have all kinds of different tools and techniques that are very valuable to our clients. And we get lots of inquiries from them to help them.

Yep. Yep. Excellent. Can I just ask just another quick question in particular around Signiant in Australia, maybe the market in general? Think I heard you say you signed several new mandates since kind of the announcement. And I'm just wondering, obviously, the demand environment there seems seems high. I feel like almost you guys sound giddy about the opportunity. Just trying to make sure we kind of ring fence, like, what kind of cadence do you expect in terms of how that could potentially ramp? Thank you.

Well, you know, Dan, when you get to be my age, being giddy is one of the pleasures in life. Other than that, you get a push up daisies, I think. So so so Giddy sounds better to me. But but it really is you know, they call the superannuation business in Australia the wall of money. You know? So, you know, everyone's required to participate, but it's their own accounts. As you know, here in The U. S, you know, saying that you have your own account in in Social Security. Well, you you you have more analysis than me. So I I I think that you know, the the services companies in Australia you know, have maybe not kept up quite as well on the the technology like we have. So we're we're coming in there as you know, an at scale company that has technology that they want and and a whole cadre of talented people that can help them. And and that's the feeling. We're we're we're getting embraced. You know? Now I hope we still get embraced because you know, the geopolitical things, but I don't think so. I mean, we're we're really doing doing well.

We you know, we're investing, and and they know it. So I I think that's gonna be a a really great market for us.

That's great. Thank you so much, Bill.

Next question is from the line of Sharinder Thind with Jefferies.

Thank you. Bill, just a few questions on on some of the segments here. When we think about interlinks and we look at everything that, you know, went right last year in terms of the introduction of the new platform, How are we thinking about performance of Interlinks in in kind of the current environment? How much of a headwind do you think it's going to be Or how should we characterize what what the current growth rate looks like and how it might evolve over the the coming quarters?

At the, in sort of you know, appropriately conservative is kind of the way I would describe us looking at it. And so we think Interlinks right now probably grows mid single digits. And that's in effect what's implied in forecast. We do have a number of things that we have rolled out in terms of new and some AI enabled technologies that allow us to grow despite the turmoil in the markets. And then if we start to see things turn around in the second half of the year, that ought to be really pretty positive for that business.

Got it. And then, Rahul, can you maybe provide a similar update on kind of Blue Prism and all of the enhancements and the rollout strategy there? And how are you thinking about that over the course of the year?

You know, think our our our primary opportunity or the thing that we're most excited about is there's a lot of as you know around the world enterprises are trying to figure out how to use AI And so they need to have some controls, particularly in regulated industries on how people go out and use the various AI tools And a big part of what we have invested in is building in, as I mentioned in my comments, the truss layers and the guardrails and things like that which we think are extremely valuable to us. But they're also really valuable to positioning Blue Prism as that trusted partner. So our opportunity set is really strong and we feel good about it. And in particular, using agents and AgenTeq AI a big part of what we expect to do over the next couple of quarters.

Got it. And then I guess turning that question internally in terms of the digital workers, Any color on the complexity of the use cases you're now able to address and how you're thinking about that on a go forward basis?

It it sounds like you're able to solve bigger problems at this point or Well, that's exactly right. I think that the we've got some momentum. We've now been at this since the start of 2023. We are as you said, getting deeper and richer into our own processing And just as important as the internal efficiencies we're getting, those applications then become really good proof points for our customers and So they look at what we've been able to achieve and we had recently had a customer tell us that they got a number of demos from our competitors but not a single work in use case. And meanwhile, within SS and C, they could see it already operating at scale. So that's pretty powerful.

And then what does that mean for margins? Do you feel like there's a structural tailwind that you have at this point that that will continue or or how should we think about that? Not necessarily this year, but as we kind of conceptually think about or maybe even this year.

So So, Serena, that's really a great question, and and we appreciate it because you get one question and then apparently four follow ups. But we I thought I was the last person in the queue. That's okay, Bill. We can we can take [indiscernible] That's okay.

I'm just kidding you. But I think that we still think that what's allowed us to do is maintain margins. Think the adjusted EBITDA margin this this quarter was 39.1%, up about 30, 40 basis points. And And we're investing heavily right? So there's a lot of expenses that we're running through and still driving margins up. And I think we would attribute a nice portion of that. To the ability of our different business units to deploy you know, Blue Prism's technologies. Into their businesses. And as you said, it's getting to be increasingly complex processes that that that allow us to to be able to even take some really experienced people and give them capabilities that that that really extend you know, their their ability to help our prospects and our customers.

Next question is from the line of James Faucette Morgan Stanley.

Hi, everyone. It's Michael and Sante on for James. Thanks for taking our question. I just wanted to ask on the global business. Obviously, really impressive results again. I think that I think that business has accelerated sequentially every quarter for more than a year now. Like, can you just unpack what's driving that? Is that net new momentum? Is that pricing What are you sort of seeing just in terms of the complex of the growth drivers within that business? Thanks.

Yeah. You know, the the great thing that we have with GlobeOp is is that it's a global business. You know? So as we start talking about what we're doing and in The Middle East, you know, we're we're getting large scale. Customers that are investing increasingly in alternative assets, and they want the best technology supported by the best firm.

And and that's what we believe we have proven quarter after quarter after quarter And I think that shows up in how we explain what we're gonna do, how we're gonna train them, what asset classes, you know, that they can invest in, whether it's real estate or private credit or whatever, know, and we bring real expertise that really helps them get up to speed in short order. And and and that is the big secret of of of our success on GLOBA.

Makes sense. Maybe just on the on the competitive front, Bill. Obviously, a lot of acquisition activity in the space, particularly in in the hedge fund and invest investment accounting space. I know some of these acquisitions are are quite small relative to the totality of your business, but any just high level thoughts on that deal and sort of how you're thinking about your ability to sort of continue to gain share in in the start up hedge fund environment, particularly just given some of this integration activity that's obviously coming? Thanks.

Well, I I think you know, what what's happening in that start up is is that that it's kind of being led by very seasoned investors and and they're they're starting with larger pools of money. Right? So they're already sophisticated, and they wanna they wanna hit the ground running. So as they're doing their their fundraising, they're also planning out what technologies they're gonna use. And often they turn to us.

And and we have you know, an awful lot of the global macro firms use us and an awful lot of the assets that have been going into alternatives go go into the global macro funds. And so you know, we're we're in a very nice position and and we're not resting on our laurels as we continue to bring out additional feature, additional functionality. And and really to the delight of our of our customers.

Your next question is from the line of Andrew Schmidt Citi. Hey guys, thank you for taking the question.

I wanted to go back to this conversation on the demand environment. Totally understand setup for the second quarter in terms of comments on conservatism and the mission critical nature of what you guys do. But I'm just curious if you give us a sense of whether conversations and sales cycles have changed meaningfully March and April, obviously, wouldn't be surprising, a huge amount of distraction out there. But I'm just curious, just put a finer point in terms of your conversation with clients and decision making. Thanks so much.

I mean, still see a pretty good demand environment. We were with a prospect this afternoon and and, you know, they're they're anxious to to deploy new technology to get better processes to close their books faster, to to to get information in their hands help them run their business. Know, I I think that's the key to our business. It is being aware and then moving quickly to to give our prospects and our clients information that that they've wanted for a long time, and they don't get it in a month. You know, they get it in a day. You know? And I I think it's that focus on you know, process that slice it and dice it, and deliver it. And I I think that's something that we do with a lot of accuracy and that gives our clients a lot of confidence.

Got it. Thanks so much for that, Bill. And then maybe just on the back half ramp, I knew you articulated a few things that are drivers there. Part of that seems like it's insignia and other signed deals. But maybe just give more detail on the confidence in the back half ramp. What signed versus go get? I know there's always a level of go get got to go out there and sell and close deals. But just maybe more details on the drivers and confidence in that ramp would be helpful. Thank you.

Yes.

Andrew, obviously, and you pointed this out, there's always an element of go get. I'd say we feel pretty good. Obviously, there's a fair amount of execution left to do and some deals left to close and implementations left to go live and all those things.

So no means certain, Right? But we feel pretty good. We have a lot of visibility in some of the big pockets of revenue coming online in Q3 and Q4. And that helps with that. Your next question is from the line of Alexey Goglibo. With JPMorgan.

Hi, this is Ellis Smith on for Alexei Thank you so much for taking our question. So first, we want to double down about the strength in GlobeOp. You called out the strength in the private markets of retail alternatives. How are you thinking about the forward organic growth of those markets in particular? Do you expect them to maintain their strength or taper off somewhat? And if you could remind us what is driving that strength, that'd be great. Thank you.

Well, I think when you look at why our private credit and other private markets, think it's because they can structure things in ways that allow them to get additional additional yield on those assets. And some of the brightest people in in the business are saying they can structure things in the private markets where they can a couple of hundred more basis points than they can get in the public market. A couple hundred basis points on the kinds of billions that that our clients manage is worth a ton of money. And and I think that's the biggest And then I also think in their structuring, they are able to do is is really identify where the risk points are and then structure these investments to be able to minimize those risk points.

Great. That makes a lot of sense. And, can my follow-up, I hear you're enthusiastic enthusiasm about AgenTik AI and bringing that to customers. You expect those offerings to begin to show up in organic growth in the near term? Or do you think that there's going to be an investment building out phase that needs to transpire and finish first.

I mean, it's it's not gonna be snap your fingers and and we get 400 basis points of organic growth. But it's going to bank what is already a very sticky business, what is already a highly profitable business. Which is already a high cash flow generation business. And, you you know, right now, someone had asked about acquisitions, and and even what you see in in the market you know, it's continuation funds and and and additional investments in in in companies that they already own. So I I think that the the robustness of the m and a market might might pick up in, like, the fourth quarter because I think increasingly, the private equity funds are are feeling like that they they need to get some stuff out into the marketplace so that they can give cash back to their LPs and then the LPs can reinvest it with them.

That makes a lot of sense. Thank you so much.

Your next question is from the line of Kevin McVeigh with UBS.

Great. Thanks so much. Congratulations on on the results in what's obviously a choppy environment. Hey, Bill. If I got this question once intra quarter, I got it 30 times. About, you know, hedge funds degrossing and what that means. And, obviously, you're AUA continues to increase. Increase year on year and increase sequentially. Can you maybe just help remind us because again, we got the question a lot you you know, why the AUA and we even analyzed in COVID. It just continues to grow, and it's just I I think one of the really underappreciated parts of the story, but just maybe help dimensionalize that just given obviously some of the volatility in the market we've seen.

Well, Kevin, as you know, when you see volatility, people are looking for, like, safe haven. You know? And what what they've seen over the last thirty, forty years that you know, the risk adjusted returns in the hedge fund industry are pretty non correlated to to these different markets, and that's why money moves to them. And I think that hasn't changed, and I don't think it's going to change in the near term. If anything, I mean, you know, we we've seen them you know, the hedge fund industry move to cash. Or more cash. And I think that their you know, they're they're just waiting to pounce again. And I I think that's the nature of the brightest investors and and I think that will continue.

That that's helpful. And then, Bill, with Insignia, does that from from a a business segment perspective, does that all sit within GlobeOp or GIDS or where would that sit across kind of the segments, or is it or is it multiple?

Gids. It's primarily in Gids.

Primarily in GIDS.

Terrific.

Okay. Thank you.

Your next question is from the line of Patrick Shaughnessy with Raymond James.

Hey, good evening. So Batea seems to be trending well below, the revenue that it had in 2023 when you guys acquired it. Is that just a function of the lumpiness of the just the nature of the business, or is there something else going on?

No. I think that's it. We're obviously taking some time to make sure we understand properly from an accounting standpoint what the flows are and in some ways I think there's some degree of being conservative reflected in that too. But as we get more we do expect that some of those accounting rules will get relaxed a little. But on the underlying strength of that business our ability to cross sell that to our customers and how the sales force feels they're being really well supported. Has us pretty optimistic.

What sort of forward looking view do you have into that business? Like at this point, into the second quarter, do you have a pretty good sense for what 2Q revenue is gonna look like, or does stuff kinda come in relatively quickly?

Well, I think we have a pretty good view right now of the cases that we're in and the settlements that have already been announced and are kind of our portion of those. So looking out a couple of years, we have a pretty good sense of what the aggregate amount is that is already baked What we don't have as good a sense of is which quarter it shows up in and that's a part of this.

Got it. That's helpful. Thank you. And then maybe just quick housekeeping question. What is the FX impact on revenue that's embedded into the full year guidance at this point?

Well, it's essentially the net difference. The kind of one of the metrics that that you would just look at the overall financials and I think we put this in I think it's either it's in the K or the Q, but about 21% of the revenues are non US dollar.

So obviously, any impact to that will have the corresponding you know, adjustment. Right? So if it's up by 1%, it has a whatever, roughly 20 bit impact change on the overall growth rate. And so we try to be conservative and kinda look at where current rates are today.

At this time, there are no further questions. I will now hand today's presentation back over to our presenters for any closing remarks. We really appreciate all of you taking taking time to to sit in our call, and and we're excited about our business. And continue to work hard for our shareholders. Thank you.

This concludes today's call. You for joining. You may now disconnect your lines.