Enfusion, Inc. (ENFN) came out with quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this company would post earnings of $0.04 per share when it actually produced earnings of $0.06, delivering a surprise of 50%. Over the last four quarters, the company h ...

Financial Data and Key Metrics Changes - The company reported revenue of $48.1 million for Q1 2024, reflecting a year-over-year growth of 17.3% [45][71] - Adjusted EBITDA for the quarter was $9.2 million, representing a 61% increase compared to Q1 2023, with an adjusted EBITDA margin of 19.1% [71][45] - Annual Recurring Revenue (ARR) reached $190.5 million, up 14% year-over-year [69] - The company experienced a net dollar retention (NDR) rate of 103%, an increase of 80 basis points from the previous quarter [97] Business Line Data and Key Metrics Changes - The Average Contract Value (ACV) increased from $219,000 to $226,000, marking a 3.2% quarter-over-quarter and 7.8% year-over-year growth [15] - The Americas region saw a revenue growth of 16% year-over-year, while the EMEA region experienced a 29% year-over-year growth, up from 24% in the previous quarter [16][22] - In the Asia-Pacific region, revenue grew 13% year-over-year, which is lower than the 20% growth seen last year [51] Market Data and Key Metrics Changes - 44% of new clients in EMEA came from outside the U.K., up from 27% in Q1 2023, indicating a strategic expansion into Continental Europe [89] - The company noted capital outflows from China and Hong Kong into Singapore, India, Japan, and Dubai, reflecting shifting market dynamics [64][116] Company Strategy and Development Direction - The company aims to achieve revenue growth of over 20% in the medium term, defined as 2025 to 2027, supported by current macro trends [44] - Enfusion is focused on product innovation, customer satisfaction, and creating superior value for shareholders, with a disciplined approach to capital allocation [36][92] - The company is investing in expanding its account management and managed service teams while enhancing its product capabilities [66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to execute its strategy, with client onboarding satisfaction scores at three-year highs [13][92] - The operating environment remains volatile, with expectations for increased activity in markets like Dubai and a ramp-up in activity post-Lunar New Year in China [14][34] - Management remains cautious about the impact of recent churn and downgrades but is confident in the overall guidance for the year [104][128] Other Important Information - The company ended the quarter with approximately $33 million in cash and cash equivalents and no outstanding debt, providing adequate liquidity for growth objectives [73] - Adjusted free cash flow for the quarter was negative $1.2 million, impacted by the timing of annual incentives [72] Q&A Session Summary Question: How is the company thinking about resource allocation with the salesforce? - The company is looking to expand its salesforce, particularly in Europe, where there are significant opportunities [103] Question: What is the importance of larger customers in relation to ACV growth? - As the company moves upstream to larger asset managers, ACV will naturally increase, but some churn from smaller clients also contributes to this growth [106] Question: Can you elaborate on the partnership ecosystem and its impact on value services? - The company is leveraging partnerships to enhance its value proposition and provide integrated solutions to clients [108] Question: What are the implications of elevated churn in Q1 on future outlook? - Elevated churn was noted, but the impact was less significant than anticipated as it primarily involved smaller clients [128] Question: How does the company view the market dynamics in APAC? - The company recognizes the unique nuances in the APAC market and is adjusting its strategies accordingly, focusing on capital flows and regional opportunities [114][116]

Part I. FINANCIAL INFORMATION This section presents the unaudited interim financial statements, management's analysis of financial performance and condition, and disclosures on market risk and internal controls [Item 1. Condensed Consolidated Interim Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Interim%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated interim financial statements for the quarter ended March 31, 2024, show total revenues of **$48.1 million**, an increase from **$41.0 million** in the prior year period. The company reported a net loss of **$0.8 million**, a significant shift from a net income of **$4.7 million** in Q1 2023. Total assets increased slightly to **$111.0 million**, and total stockholders' equity grew to **$82.6 million**. Cash flow from operations was positive at **$1.5 million**, though cash and cash equivalents decreased overall by **$2.7 million** during the quarter [Condensed Consolidated Interim Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheets) As of March 31, 2024, the company's balance sheet shows total assets of **$111.0 million**, a slight increase from **$109.0 million** at year-end 2023. Total liabilities decreased to **$28.3 million** from **$31.5 million**, while total stockholders' equity increased to **$82.6 million** from **$77.5 million** over the same period | Balance Sheet Highlights | March 31, 2024 (Unaudited) | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $32,894 | $35,604 | | Total current assets | $70,923 | $69,852 | | Total assets | $110,963 | $108,972 | | Total current liabilities | $17,406 | $20,309 | | Total liabilities | $28,337 | $31,490 | | Total stockholders' equity | $82,626 | $77,482 | [Condensed Consolidated Interim Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Operations) For the three months ended March 31, 2024, total revenues grew **17.3%** year-over-year to **$48.1 million**. However, a significant **43.5%** increase in operating expenses led to a loss from operations of **$1.1 million**, compared to an income of **$4.7 million** in the prior-year period. Consequently, the company reported a net loss of **$0.8 million**, with a basic and diluted EPS of (**$0.01**) | Income Statement Highlights (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenues | $48,052 | $40,971 | | Gross profit | $31,878 | $27,669 | | Total operating expenses | $32,991 | $22,990 | | (Loss) income from operations | $(1,113) | $4,679 | | Net (loss) income | $(761) | $4,694 | | Net (loss) income per Class A share (Basic & Diluted) | $(0.01) | $0.04 | [Condensed Consolidated Interim Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) For the first quarter of 2024, net cash provided by operating activities was **$1.5 million**. Net cash used in investing activities was **$2.7 million**, primarily for software development and equipment purchases. Financing activities used **$1.4 million**, mainly for withholding tax payments on stock-based compensation. Overall, cash and cash equivalents decreased by **$2.7 million** to end the period at **$32.9 million** | Cash Flow Summary (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,533 | $924 | | Net cash used in investing activities | $(2,748) | $(2,550) | | Net cash used in financing activities | $(1,373) | $(6,353) | | Net decrease in cash and cash equivalents | $(2,710) | $(7,947) | | Cash and cash equivalents, end of period | $32,894 | $54,598 | [Notes to Condensed Consolidated Interim Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Statements) The notes detail the company's accounting policies and financial components. Key points include the company's SaaS business model, revenue recognition standards where implementation services are not considered distinct, and revenue disaggregation by geography. The notes also cover the establishment of a new **$100 million** credit facility, a significant year-over-year increase in stock-based compensation expense, and subsequent events involving share exchanges - Enfusion is a provider of SaaS solutions for the investment management industry, headquartered in Chicago with a global presence. As of March 31, 2024, Enfusion, Inc. owned **70.2%** of Enfusion Ltd. LLC[26](index=26&type=chunk)[28](index=28&type=chunk) - The company's revenue is primarily from platform subscriptions and managed services, recognized ratably over the contract term. Implementation services are not considered distinct performance obligations and their fees are also recognized ratably[42](index=42&type=chunk)[48](index=48&type=chunk) | Revenue by Geography (Q1 2024) | Amount (in thousands) | Percent | | :--- | :--- | :--- | | Americas | $29,728 | 61.9% | | Europe, Middle East, and Africa (EMEA) | $7,597 | 15.8% | | Asia Pacific (APAC) | $10,727 | 22.3% | | **Total revenues** | **$48,052** | **100.0%** | - In September 2023, the company entered a new **$100 million** senior secured revolving loan facility. As of March 31, 2024, there were no outstanding borrowings under this agreement[58](index=58&type=chunk)[64](index=64&type=chunk) - Stock-based compensation expense increased significantly to **$7.0 million** in Q1 2024 from a benefit of (**$1.1) million** in Q1 2023. The increase was largely due to **$3.6 million** in fully vested shares granted under the Annual Bonus Incentive Plan[73](index=73&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **17.3%** revenue growth in Q1 2024 to strong performance in platform subscriptions from both new clients and upsells. The increase in cost of revenues and operating expenses, which led to a net loss, was primarily driven by higher payroll, market data costs, and a substantial rise in stock-based compensation. The company maintains a solid liquidity position with **$32.9 million** in cash and **$100 million** available under its credit facility, which is deemed sufficient for at least the next 12 months [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Total revenue increased by **$7.1 million (17.3%)** YoY, driven by a **17.6%** growth in Platform subscriptions. Gross profit grew by **15.2%**, but gross margin slightly declined to **66.3%** from **67.5%** due to increased costs. Operating expenses surged by **43.5%**, primarily due to a **$10.0 million** increase, with stock-based compensation being a major contributor across all expense categories, leading to an operating loss | Revenue Breakdown (in thousands) | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Platform subscriptions | $44,689 | $37,998 | $6,691 | 17.6% | | Managed services | $3,177 | $2,744 | $433 | 15.8% | | **Total revenues** | **$48,052** | **$40,971** | **$7,081** | **17.3%** | - The increase in platform subscription revenue was driven by **$5.0 million** from upsells and increased users, **$3.9 million** from new clients, and **$1.6 million** from the full-period impact of prior contracts, offset by **$3.0 million** in churn and **$1.3 million** in downgrades[120](index=120&type=chunk) - Cost of revenues increased by **21.6%** to **$16.2 million**, driven by higher payroll (**$0.9M**), market data (**$0.6M**), hosting costs (**$0.5M**), amortization (**$0.5M**), and stock-based compensation (**$0.4M**). This led to a gross margin decrease from **67.5%** to **66.3%**[124](index=124&type=chunk)[125](index=125&type=chunk) - Total operating expenses increased by **$10.0 million (43.5%)**, largely due to higher stock-based compensation. G&A expenses rose by **$5.7 million**, Sales & Marketing by **$2.1 million**, and Technology & Development by **$2.2 million**[128](index=128&type=chunk)[129](index=129&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily funded through client collections and financing. As of March 31, 2024, Enfusion had **$32.9 million** in cash and cash equivalents and full access to its **$100.0 million** revolving credit facility. Net cash from operations was **$1.5 million** for the quarter. Management believes current liquidity is sufficient for at least the next 12 months - As of March 31, 2024, the company had cash and cash equivalents of **$32.9 million** and **$100.0 million** in available borrowing capacity under its Credit Agreement[136](index=136&type=chunk) | Cash Flow Summary (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,533 | $924 | | Net cash used in investing activities | $(2,748) | $(2,550) | | Net cash used in financing activities | $(1,373) | $(6,353) | - Cash used in financing activities decreased significantly YoY, from **$6.4 million** in Q1 2023 to **$1.4 million** in Q1 2024, primarily because payments for withholding taxes on stock-based compensation were much lower (**$1.3M** vs **$7.6M**)[144](index=144&type=chunk)[145](index=145&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its market risk during the quarter ended March 31, 2024. It refers to the disclosures in its Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material changes to the company's market risk during the first quarter of 2024[165](index=165&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of March 31, 2024. No material changes to internal control over financial reporting were identified during the quarter - Based on an evaluation as of the end of the reporting period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[167](index=167&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[168](index=168&type=chunk) Part II. OTHER INFORMATION This section addresses legal proceedings, updates on risk factors, details on equity security sales, and other relevant corporate information [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently a party to any legal proceedings that would be expected to have a material adverse effect on its business, financial condition, or operations - The company is not presently a party to any legal proceedings that would have a material adverse effect on its business[170](index=170&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - No material changes have been made to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[171](index=171&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities and no issuer purchases of its equity securities during the reporting period - There were no recent sales of unregistered securities or issuer purchases of equity securities during the quarter[172](index=172&type=chunk)[173](index=173&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) The company disclosed that none of its directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended March 31, 2024 - During the first quarter of 2024, no directors or officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements[176](index=176&type=chunk)

Enfusion, Inc. (ENFN) reported $48.05 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 17.3%. EPS of $0.06 for the same period compares to $0.03 a year ago.The reported revenue represents a surprise of +0.80% over the Zacks Consensus Estimate of $47.67 million. With the consensus EPS estimate being $0.04, the EPS surprise was +50.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to deter ...

[Introduction & Business Overview](index=3&type=section&id=Introduction%20%26%20Business%20Overview) This section outlines Enfusion's Q1 2024 performance, strategic mission, market opportunities, and competitive advantages [Letter to Shareholders (Q1 2024 Highlights)](index=3&type=section&id=Letter%20to%20Shareholders) The CEO reported strong Q1 2024 performance with accelerated revenue growth, expanded adjusted EBITDA margins, increased client acquisition, and higher Average Contract Value - Revenue grew **17.3%** year-over-year in Q1, an acceleration of **255 basis points** sequentially[7](index=7&type=chunk) - Secured **33 new client wins** in Q1, up from 27 in Q1 2023, with increased geographic penetration, especially in Europe (**44%** of new accounts outside the UK vs. 27% in Q1 2023)[7](index=7&type=chunk) - Average Contract Value (ACV) increased sequentially from **$219,000 to $226,000**, representing **7.9%** year-over-year growth[7](index=7&type=chunk) - Product and service investments are driving performance, with accelerated client onboarding times and the highest client onboarding satisfaction scores in three years[7](index=7&type=chunk) [Company Mission and Strategy](index=4&type=section&id=Company%20Mission%20and%20Strategy) Enfusion's mission is to power all investment workflows through its technology, innovation, and client focus, creating a "single source of truth" via its unique SaaS architecture - The company's mission is to power investment workflows with unparalleled technology, relentless innovation, and a dedicated client focus[8](index=8&type=chunk) - Core strategic pillars include: front-to-back capabilities, multi-tenant SaaS architecture, continuous innovation, exceptional client experience, a seasoned team, and a durable financial profile[9](index=9&type=chunk) - The SaaS platform enables collaboration across various client personas, including Portfolio Managers, Risk, Compliance, and Operations, by providing a single, unified data framework[10](index=10&type=chunk) [Market Opportunity and Product](index=6&type=section&id=Market%20Opportunity%20and%20Product) Enfusion identifies a total addressable market (TAM) of $25 billion, with a focus on disrupting traditional asset managers and asset owners through its evolving front-to-back office solutions Total Addressable Market (TAM) Breakdown | Segment | Estimated TAM | | :--- | :--- | | Equity Hedge Funds | $1.2B | | Non-Equity Hedge Funds | $1.3B | | Private Equity & Credit | $7.2B | | Traditional Asset Managers & Asset Owners | $15.3B | | **Total** | **$25B** | - The company's product roadmap for 2024 includes enhancing its OEMS & Compliance, Managed Services, Portfolio Management Solutions, and Back-office capabilities to achieve global institutional scale[12](index=12&type=chunk) [Competitive Advantage](index=8&type=section&id=Competitive%20Advantage) Enfusion's competitive advantage arises from macro market trends like fee compression and SaaS adoption, combined with its foundational multi-tenant SaaS architecture - Key macro trends benefiting Enfusion include active management fee compression, the electronification of markets, and the enterprise adoption of SaaS models[13](index=13&type=chunk) - Enfusion's historical strength lies in its multi-tenant SaaS architecture, built from day one, which provides a trailblazing technology foundation for future growth[13](index=13&type=chunk) [Financial & Operational Performance](index=9&type=section&id=Financial%20%26%20Operational%20Performance) This section details Enfusion's Q1 2024 financial results, including revenue, profitability trends, and key operating metrics [Q1 2024 Key Financial Highlights](index=9&type=section&id=1Q24%20Key%20Financial%20Highlights) In Q1 2024, Enfusion reported total revenue of $48.1 million, a 17.3% year-over-year increase, achieving an adjusted EBITDA of $9.2 million with a 19.1% margin Q1 2024 Financial Summary | Metric | Value ($ in millions) | Margin / Growth | | :--- | :--- | :--- | | Total Revenue | $48.1 | 17.3% YoY Growth | | Gross Profit | $31.9 | 66.3% Gross Margin | | Adjusted Gross Profit | $32.6 | 67.8% Adjusted Gross Margin | | Net Income | ($0.8) | (1.6%) Net Margin | | Adjusted EBITDA | $9.2 | 19.1% Adjusted EBITDA Margin | | Operating Cash Flow | $1.5 | 3.2% OCF Margin | [Revenue and Profitability Trends](index=10&type=section&id=Revenue%20and%20Profitability%20Trends) Enfusion demonstrated consistent sequential revenue growth, reaching $48.1 million in Q1 2024, while Adjusted EBITDA significantly increased from $5.7 million in Q1 2023 to $9.2 million in Q1 2024 Revenue Trend (Q1 2023 - Q1 2024) | Quarter | Revenue ($M) | | :--- | :--- | | 1Q23 | $41.0 | | 2Q23 | $42.7 | | 3Q23 | $44.4 | | 4Q23 | $46.5 | | 1Q24 | $48.1 | Adjusted EBITDA Trend (Q1 2023 - Q1 2024) | Quarter | Adjusted EBITDA ($M) | | :--- | :--- | | 1Q23 | $5.7 | | 2Q23 | $8.0 | | 3Q23 | $8.2 | | 4Q23 | $9.8 | | 1Q24 | $9.2 | - Operating cash flow was **$1.5 million** in Q1 2024, a decrease from **$12.1 million** in Q3 2023 and **$6.6 million** in Q4 2023[25](index=25&type=chunk) [Key Operating Metrics](index=12&type=section&id=Key%20Operating%20Metrics) As of Q1 2024, Annual Recurring Revenue (ARR) grew 14.1% year-over-year to $190.5 million, with the client base expanding to 868 and Average Contract Value (ACV) rising to $226,000 Key Operating Metrics (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | YoY Growth | | :--- | :--- | :--- | :--- | | ARR | $190.5 M | $167.0 M | 14.1% | | Clients | 868 | 813 | 6.8% | | Avg Contract Value | $226 K | $210 K | 7.8% | | Net Dollar Retention Rate | 101.7% | 106.0% | -4.3% | [Financial Statements](index=14&type=section&id=Financial%20Statements) This section presents Enfusion's consolidated balance sheets, statements of operations, and cash flows for the relevant periods [Consolidated Balance Sheets](index=14&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, Enfusion reported total assets of $111.0 million and total liabilities of $28.3 million, with cash and cash equivalents at $32.9 million and total stockholders' equity at $82.6 million Balance Sheet Summary (As of March 31, 2024) | Account | Amount ($ thousands) | | :--- | :--- | | **Assets** | | | Cash and cash equivalents | $32,894 | | Total current assets | $70,923 | | **Total assets** | **$110,963** | | **Liabilities & Equity** | | | Total current liabilities | $17,406 | | **Total liabilities** | **$28,337** | | **Total stockholders' equity** | **$82,626** | [Consolidated Statements of Operations](index=15&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2024, Enfusion's total revenues increased to $48.1 million, but a significant rise in operating expenses led to a net loss of $0.8 million, or ($0.01) per share Statement of Operations (Three Months Ended March 31) | Metric ($ thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Total revenues | $48,052 | $40,971 | | Gross profit | $31,878 | $27,669 | | Total operating expenses | $32,991 | $22,990 | | (Loss) income from operations | ($1,113) | $4,679 | | Net (loss) income | ($761) | $4,694 | | Diluted EPS | ($0.01) | $0.04 | [Consolidated Statements of Cash Flows](index=16&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2024, net cash provided by operating activities was $1.5 million, while net cash used in investing activities was $2.7 million, resulting in a net decrease in cash of $2.7 million and an ending balance of $32.9 million Cash Flow Summary (Three Months Ended March 31) | Cash Flow Activity ($ thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,533 | $924 | | Net cash used in investing activities | ($2,748) | ($2,550) | | Net cash used in financing activities | ($1,373) | ($6,353) | | **Net decrease in cash** | **($2,710)** | **($7,947)** | | **Cash at end of period** | **$32,894** | **$54,595** | [Appendix: Non-GAAP Reconciliations & Definitions](index=17&type=section&id=Appendix) This appendix provides detailed reconciliations of GAAP to non-GAAP financial measures and defines key business metrics [Non-GAAP Reconciliations](index=17&type=section&id=Non-GAAP%20Reconciliations) The appendix provides detailed reconciliations of GAAP to non-GAAP financial measures, showing adjustments from GAAP Gross Profit, Net Loss, and Operating Cash Flow to their respective adjusted non-GAAP counterparts Q1 2024 GAAP to Non-GAAP Reconciliation Summary ($ thousands) | Measure | GAAP Value | Non-GAAP Value | | :--- | :--- | :--- | | Gross Profit | $31,878 | $32,595 (Adjusted) | | Net (Loss) Income | ($761) | $9,179 (Adjusted EBITDA) | | Net Cash from Operations | $1,533 | ($1,215) (Adjusted FCF) | | Net (Loss) Income | ($761) | $5,915 (Adjusted Net Income) | - The primary adjustments to reconcile net income to adjusted EBITDA in Q1 2024 were **stock-based compensation expense ($7.0 million)** and **depreciation & amortization ($2.7 million)**[36](index=36&type=chunk) [Definitions of Non-GAAP Measures and Key Metrics](index=20&type=section&id=Definitions) This section defines the non-GAAP financial measures and key business metrics used in the presentation, including Annual Recurring Revenue (ARR), Net Dollar Retention Rate, and Average Contract Value (ACV) - **Adjusted EBITDA:** Defined as earnings before interest, taxes, depreciation, and amortization, adjusted for stock-based compensation, foreign currency effects, and certain non-recurring items[43](index=43&type=chunk) - **Annual Recurring Revenue (ARR):** Calculated by annualizing platform subscriptions and managed services revenues recognized in the last month of the measurement period[47](index=47&type=chunk) - **Net Dollar Retention Rate:** Calculated by dividing the Current Period ARR from a cohort of clients by the Prior Period ARR from the same cohort twelve months earlier. It includes expansion, contraction, and voluntary attrition[48](index=48&type=chunk)[49](index=49&type=chunk)

The best photo for all Investment overview I wrote about Enfusion (NYSE:ENFN) previously with a buy rating as I thought the business would continue to grow, with potential for acceleration given the visible catalysts available. Notably, valuation multiples should start to reflect their true worth when the business starts to generate profits. My recommendation remains buy-rated for ENFN as the growth outlook is still very bright, supported by ENFN's strong track record of execution. 4Q23 earnings ENFN report ...

Enfusion, Inc. (ENFN) reported $46.49 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 14.7%. EPS of $0.04 for the same period compares to $0.03 a year ago.The reported revenue represents a surprise of +2.04% over the Zacks Consensus Estimate of $45.56 million. With the consensus EPS estimate being $0.06, the EPS surprise was -33.33%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

Enfusion, Inc. (ENFN) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -33.33%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.04, delivering a surprise of -20%.Over the last four quarters, the company ha ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Address of principal executive offices) (Zip code) 125 South Clark Street, Suite 750, Chicago, IL 60603 60603 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period From To Commission file number: 001-40949 ENFUSION ...

[Disclaimer and Forward-Looking Statements](index=2&type=section&id=Disclaimer) This section provides disclaimers and outlines the nature of forward-looking statements and associated risks [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements, their basis in current assumptions, potential for differing actual results, and safe harbor coverage - Forward-looking statements are identified by words such as "anticipates," "believes," "estimates," and are intended to be covered by safe harbor provisions of the Securities Act and Exchange Act[2](index=2&type=chunk) - Actual results may differ materially from forward-looking statements due to a variety of risks and factors beyond the company's control, as detailed in SEC filings[3](index=3&type=chunk) [Shareholder Letter & Q4 2023 Highlights](index=3&type=section&id=Dear%20Shareholders) This section presents the CEO's letter highlighting 2023 financial performance and Q4 2023 business achievements [CEO Letter](index=3&type=section&id=CEO%20Letter) The CEO expresses satisfaction with Enfusion's excellent financial performance in 2023, highlighting increased momentum into 2024 - Enfusion ended 2023 with excellent financial performance and increased momentum, exceeding expectations for operating margin improvement and customer wins[5](index=5&type=chunk) - The company anticipates continued double-digit revenue growth in 2024, allowing investment in best-in-class technology while simultaneously improving profitability[7](index=7&type=chunk) [Q4 2023 Business Highlights](index=3&type=section&id=4Q23%20Highlights) Enfusion's economic profile strengthened in Q4 2023, with 14.7% YoY revenue growth and adjusted EBITDA margins expanding to 21.1% Q4 2023 Economic Trajectory | Metric | Q4 2023 | YoY Change | | :--------------------- | :------ | :--------- | | Revenue Growth | 14.7% | Up | | Net Income Margin | 1.9% | Unchanged | | Adjusted EBITDA Margin | 21.1% | Up from 16.7% | - Achieved **45 new client wins** in Q4 2023, the largest number since 2022, indicating increased business predictability[8](index=8&type=chunk) Q4 2023 Regional Revenue Growth | Region | YoY Revenue Growth | | :------- | :----------------- | | EMEA | 24.4% | | Americas | 15.3% | | Asia Pacific | 7.4% | - Product strategy over the past 18 months expanded support for non-equity trading strategies and enhanced portfolio construction capabilities, leading to **2.5 times more sales to credit investment managers in 2023** compared to the prior year[8](index=8&type=chunk) [Company Overview](index=4&type=section&id=Our%20mission) This section details Enfusion's mission, its solution for investment management, client base, and competitive advantages [Mission](index=4&type=section&id=Our%20mission_sub) Enfusion's mission is to empower all investment workflows through unparalleled technology, relentless innovation, and a dedicated focus on clients - Enfusion's mission is to power all investment workflows with unparalleled technology, relentless innovation, and dedicated client focus[9](index=9&type=chunk) [Investment Management Lifecycle Simplification](index=5&type=section&id=We%20simplify%20and%20unify%20the%20investment%20management%20lifecycle) Enfusion simplifies and unifies the complex investment management lifecycle by empowering teams to operate in concert across various functions - Enfusion simplifies and unifies the investment management lifecycle, enabling teams to operate in concert across functions like orders, fills, reconciliations, and reporting[10](index=10&type=chunk)[11](index=11&type=chunk) [Client Base](index=6&type=section&id=Serving%20clients%20across%20the%20investment%20management%20industry) Enfusion serves a diverse range of clients across the investment management industry, including alternative and institutional investment managers Client Segments Served | Alternative Investment Managers | Institutional Investment Managers | | :------------------------------ | :-------------------------------- | | Hedge Funds | Traditional Asset Managers | | Private Equity | Wealth Managers | | Private Credit | Sovereign Wealth Funds | | Family Offices | Mutual Funds | [End-to-End Solution](index=7&type=section&id=Purpose-built%20end-to-end%20solution) Enfusion offers a purpose-built, end-to-end solution integrating PMS, OEMS, and Accounting/General Ledger with technology-powered services - Enfusion provides a purpose-built, end-to-end solution integrating PMS, OEMS, and Accounting/General Ledger, offering a single dataset and source of truth[14](index=14&type=chunk)[15](index=15&type=chunk) - The solution offers real-time Investment Book of Record (IBOR) and Accounting Book of Record (ABOR), supported by expert teams for administrative tasks[15](index=15&type=chunk) [Competitive Advantages](index=8&type=section&id=Why%20we%20win) Enfusion's competitive advantages include its single end-to-end solution, client-centric approach, open architecture, and multi-tenant SaaS model - Key competitive advantages include a single end-to-end solution with one dataset, a client-centric approach, open/flexible architecture, rapid delivery, and a multi-tenant SaaS model[17](index=17&type=chunk) - Enfusion's unique ability lies in leading with a single solution that adjusts to client complexity, scales with size, evolves with workflows, and adapts to business dynamics[18](index=18&type=chunk) [Q4 2023 Financial Performance](index=9&type=section&id=Q4%202023%20key%20financial%20highlights) This section summarizes Enfusion's strong Q4 2023 financial results, highlighting revenue growth, profitability expansion, and client metrics [Key Financial Highlights](index=9&type=section&id=Q4%202023%20key%20financial%20highlights_sub) Enfusion reported strong Q4 2023 financial results, characterized by a highly attractive SaaS model combining scale, growth, and profitability Q4 2023 Key Financial Highlights | Metric | Value ($ in millions) | YoY Growth / Margin | | :-------------------------- | :-------------------- | :------------------ | | Total Revenue | $46.5 | 14.7% YoY Growth | | Gross Profit | $30.9 | 66.4% Gross Margin | | Adjusted Gross Profit | $31.1 | 66.9% Adjusted Gross Margin | | Net Income | $0.9 | 1.9% Net Income Margin | | Adjusted EBITDA | $9.8 | 21.1% Adjusted EBITDA Margin | | Operating Cash Flow | $6.6 | 14.2% OCF Margin | | Adjusted Free Cash Flow | $4.3 | 43.8% FCF Conversion | [Revenue Growth](index=10&type=section&id=Strong%20growth) Enfusion demonstrated strong revenue growth, with Q4 2023 revenue reaching $46.5 million, a 14.7% increase year-over-year Quarterly Revenue Trend | Quarter | Revenue ($ in millions) | | :-------- | :---------------------- | | 4Q22 | $40.5 | | 1Q23 | $41.0 | | 2Q23 | $42.7 | | 3Q23 | $44.4 | | 4Q23 | $46.5 | Quarterly Gross Profit and Adjusted Gross Profit Trend | Quarter | Gross Profit ($ in millions) | Adjusted Gross Profit ($ in millions) | | :-------- | :--------------------------- | :------------------------------------ | | 4Q22 | $27.2 | $27.5 | | 1Q23 | $27.7 | $27.9 | | 2Q23 | $28.5 | $28.7 | | 3Q23 | $29.9 | $30.2 | | 4Q23 | $30.9 | $31.1 | [Profitability Expansion](index=11&type=section&id=Expanding%20profitability) Enfusion significantly expanded its profitability in Q4 2023, with Net Income reaching $0.9 million and Adjusted EBITDA growing to $9.8 million Quarterly Net Income and Adjusted EBITDA Trend | Quarter | Net Income ($ in millions) | Adjusted EBITDA ($ in millions) | | :-------- | :------------------------- | :------------------------------ | | 4Q22 | $0.8 | $4.7 | | 1Q23 | $1.0 | $5.7 | | 2Q23 | $2.7 | $6.8 | | 3Q23 | $0.9 | $8.2 | | 4Q23 | $0.9 | $9.8 | Quarterly Operating Cash Flow and Adjusted Free Cash Flow Trend | Quarter | Operating Cash Flow ($ in millions) | Adjusted FCF ($ in millions) | | :-------- | :---------------------------------- | :--------------------------- | | 4Q22 | $7.5 | $5.8 | | 1Q23 | $6.0 | -$1.6 | | 2Q23 | $9.5 | $3.8 | | 3Q23 | $12.1 | $9.5 | | 4Q23 | $6.6 | $4.3 | [Client & Contract Metrics](index=12&type=section&id=Organic%20client%20growth%20and%20expansion%20continues%20to%20scale) Enfusion continued to scale through organic client growth and expansion, with ARR reaching $185.1 million and a Net Dollar Retention Rate of 101.7% Annual Recurring Revenue (ARR) Trend | Quarter | ARR ($ in millions) | YoY Growth | | :-------- | :------------------ | :--------- | | 4Q22 | $164.7 | 29.5% | | 1Q23 | $167.0 | 21.4% | | 2Q23 | $171.2 | 15.2% | | 3Q23 | $177.9 | 12.1% | | 4Q23 | $185.1 | 12.4% | Net Dollar Retention Rate (NDR) Trend | Quarter | NDR | | :-------- | :---- |