Core Viewpoint - Envestnet reported quarterly earnings of $0.70 per share, exceeding the Zacks Consensus Estimate of $0.68, and showing an increase from $0.56 per share a year ago, indicating a positive earnings surprise of 2.94% [1] Financial Performance - The company achieved revenues of $345.95 million for the quarter ended September 2024, which was 1.23% below the Zacks Consensus Estimate, but up from $316.85 million in the same quarter last year [2] - Over the last four quarters, Envestnet has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Envestnet shares have increased approximately 27% since the beginning of the year, outperforming the S&P 500's gain of 24.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.73, with expected revenues of $359.43 million, and for the current fiscal year, the EPS estimate is $2.55 on revenues of $1.38 billion [7] - The outlook for the Financial Transaction Services industry, where Envestnet operates, is favorable, ranking in the top 31% of over 250 Zacks industries, suggesting potential for outperformance [8]

Revenue Performance - Total revenue for Q3 2024 increased by 9% to $345.9 million compared to $316.8 million in Q3 2023[3] - Total revenue for Q3 2024 was $345.9 million, an increase of 9.2% compared to $316.8 million in Q3 2023[19] - Total recurring revenue reached $340.4 million, up 10.2% from $308.8 million in the same quarter last year[19] - Total revenue for the three months ended September 30, 2024, was $345,949,000, compared to $311,523,000 in 2023, reflecting a year-over-year growth[26] - Total revenue for Envestnet, Inc. reached $1,019,172,000, with recurring revenue contributing $997,933,000, representing a significant portion of total revenue[27] Revenue Composition - Asset-based recurring revenue rose by 16%, accounting for 65% of total revenue in Q3 2024, up from 61% in Q3 2023[3] - Asset-based revenue increased to $225.0 million, a rise of 16.1% from $193.9 million in Q3 2023[19] - Subscription-based revenue slightly increased to $115.4 million, compared to $114.9 million in Q3 2023[19] - Envestnet's asset-based revenue for the nine months was $556,595,000, while subscription-based revenue was $346,977,000, indicating a balanced revenue model[30] Profitability Metrics - Adjusted EBITDA for Q3 2024 was $80.5 million, reflecting a 23% increase from $65.3 million in Q3 2023[6] - Adjusted net income increased by 27% to $46.5 million, or $0.70 per diluted share, compared to $36.6 million, or $0.56 per diluted share in Q3 2023[6] - Adjusted EBITDA for the nine months ended September 30, 2024, was $228,728,000, up from $175,378,000 in the same period of 2023, indicating a growth of around 30%[22] - The company reported an adjusted EBITDA of $228,728,000, indicating strong operational performance despite a loss from operations of $59,833,000[27] Cash Flow and Expenses - Free cash flow surged to $76.2 million in Q3 2024, up from $9.4 million in Q3 2023[6] - Total operating expenses increased by 7% to $338.9 million in Q3 2024, compared to $316.2 million in Q3 2023[4] - Operating expenses for Q3 2024 totaled $338.9 million, up from $316.2 million in Q3 2023, reflecting a 7.2% increase[19] - Total operating expenses amounted to $1,079,005,000, with employee compensation being the largest expense at $311,205,000[27] Net Income and Loss - Net loss for Q3 2024 was $1.7 million, compared to a net income of $5.1 million in Q3 2023[19] - The company reported a basic net loss per share of $0.03 for Q3 2024, down from earnings of $0.13 per share in Q3 2023[19] - Envestnet reported a net loss of $80,323,000 for the nine months ended September 30, 2024, compared to a net loss of $60,837,000 for the same period in 2023, reflecting an increase in losses of approximately 32%[21] - For the three months ended September 30, 2024, Envestnet reported a net loss of $1,661,000 compared to a net income of $5,056,000 for the same period in 2023[23] Assets and Liabilities - As of September 30, 2024, Envestnet had $193.4 million in cash and cash equivalents and $892.5 million in outstanding debt[6] - Total assets decreased to $1.83 billion from $1.88 billion in 2023[18] - Total liabilities remained relatively stable at $1.30 billion, compared to $1.30 billion in 2023[18] - Cash and cash equivalents at the end of the period increased to $193,356,000 from $43,211,000, reflecting a substantial increase of approximately 348%[21] Market and Client Metrics - As of September 30, 2024, Envestnet's Assets under Management (AUM) reached $510.453 billion, reflecting a significant increase from $416.001 billion as of December 31, 2023[31] - The company reported total AUM/A of $1,006.448 billion as of September 30, 2024, up from $846.847 billion at the end of 2023, indicating a growth of approximately 18.8%[33] - Envestnet onboarded $76.2 billion in total conversions during the three months ended September 30, 2024, including $13.6 billion in new client conversions[32] - The number of paid end-users on the Envestnet Data & Analytics platform increased to 45.2 thousand as of September 30, 2024, up from 42.3 thousand a year earlier[35] Strategic Developments - The company is pursuing a merger with affiliates of vehicles managed or advised by Bain Capital Private Equity, LP, which may impact future performance[16] - The company incurred merger-related costs of $9,021,000 during the three months ended September 30, 2024[26]

Core Insights - Envestnet has launched an Options Strategy Quantitative Portfolio (QP) aimed at addressing market volatility, tax risk, and liquidity risk associated with concentrated stock positions, providing advisors and clients with a solution to unwind these positions [1][2][3] Group 1: Product Features - The Options Strategy QP offers three options-based hedging solutions: Covered Calls, Protective Puts, and Collar Strategies, which help generate income and mitigate risks associated with concentrated stock holdings [3][6][8] - The strategy allows for customization based on individual investor needs, including desired downside protection and time horizon for projections [7][8] Group 2: Market Context - Investors often hold concentrated stock positions due to various reasons such as inheritance or company grants, which can expose them to significant losses if the stock underperforms [2] - The prolonged holding of concentrated positions can lead to increased tax liabilities, prompting many investors to delay selling [2] Group 3: Performance Metrics - Envestnet's suite of QPs has achieved an annual growth rate of 40% in accounts and advisors over the past three years, with over $12 billion in assets under management or administration as of Q2 2024 [9]

Core Insights - Envestnet, Inc. (ENV) has demonstrated strong stock performance, with a 53.3% increase over the past year, significantly outperforming the industry and the Zacks S&P 500 composite [1] Financial Performance - The Zacks Consensus Estimate for revenues is projected at $1.4 billion and $1.5 billion for 2024 and 2025, reflecting year-over-year increases of 10.6% and 10.2% respectively [2] - The consensus estimate for earnings per share is $2.6 for 2024, indicating a 20.3% year-over-year rise, and $3 per share for 2025, also suggesting a 20.3% growth [2] Growth Drivers - Envestnet's recurring revenues have shown consistent growth, with a 2.1% increase in 2023, following gains of 4.5% in 2022 and 20.2% in 2021, supported by asset-based and subscription-based business models [3] - The company employs a business-to-business-to-consumer approach, enabling clients in the financial services sector to utilize ENV's platform-based solutions [3] Technology and Infrastructure - ENV prioritizes technology development to enhance efficiency, competitiveness, and compliance, utilizing a three-tier architecture that includes a web-based user interface, an application tier, and an SQL Server database, which is expected to scale effectively [4] - The adoption of technology is anticipated to rise, driven by the demand for cost-effective client interactions, allowing ENV to provide investment advice and personalized wealth management services [5] Liquidity and Financial Health - As of the end of the second quarter of 2024, ENV's current ratio was 1.14, an improvement from 0.73 in the previous year, indicating a stronger ability to meet short-term obligations [6]

Group 1 - FinancialApps has filed a $100 million lawsuit against Envestnet for trade secret misappropriation, tortious interference, and unfair competition, which is now proceeding to a jury trial in Delaware Federal Court [1] - Envestnet's defamation counterclaim against FinancialApps was dismissed, and the motion for summary judgment on FinancialApps's claims was denied by Judge Jennifer L. Hall [2] - The legal team representing FinancialApps is led by Marc E. Kasowitz from Kasowitz Benson Torres LLP, who expressed satisfaction with the court's decisions and readiness for trial [3] Group 2 - Envestnet is currently involved in a $4.5 billion acquisition deal with Bain Capital, which has been approved by shareholders [1]

BERWYN, Pa., Sept. 24, 2024 /PRNewswire/ -- Envestnet, Inc. (NYSE: ENV) ("Envestnet," or the "Company"), a leading provider of integrated technology, data intelligence, and wealth solutions, today announced that, at a special meeting (the "Special Meeting"), the Company's stockholders approved the pending acquisition of the Company by affiliates of vehicles managed or advised by Bain Capital (the "Merger"). Based on a preliminary tally of voting results, approximately 99.33% of the votes represented at the ...

Core Insights - Kairos Pharma Ltd. has announced a collaboration with PreCheck Health Services to develop companion biomarkers for its cancer therapy ENV105, targeting prostate and lung cancers [1][10] - The partnership aims to enhance patient screening and therapy monitoring in ongoing Phase 1 and Phase 2 clinical trials [1][2] Company Overview - Kairos Pharma is a clinical-stage biopharmaceutical company focused on oncology therapeutics, utilizing structural biology to address drug resistance and immune suppression [8] - The company is based in Los Angeles, California, and is committed to improving patient outcomes through innovative treatment options [8] Collaboration Details - The collaboration will utilize advanced molecular diagnostics to validate and develop biomarkers identified in previous clinical trials, aiming for a personalized approach to cancer care [2][6] - PreCheck Health Services will analyze biopsy tissues and circulating tumor cells from patients in ongoing trials, including a Phase 2 trial for prostate cancer and a Phase 1 trial for lung cancer [2][4] Clinical Trials - Two key clinical trials are highlighted: - NCT05401110, a Phase 1 trial for EGFR-driven lung cancer patients resistant to osimertinib, focusing on gene expression profiling [4] - NCT05534646, a Phase 2 trial for castrate-resistant prostate cancer patients, concentrating on profiling circulating tumor cells and tumor biopsies [4][5] Companion Diagnostics Development - A significant outcome of the partnership is the development of a companion diagnostic for ENV105, which will include a three-gene PCR analysis to predict patient responses [6] - This diagnostic aims for FDA approval to guide patient selection for Phase 3 clinical trials [6] Technological Integration - The collaboration will leverage PreCheck's SolidTumorCheck+ platform for gene expression profiling of tumor biopsies, potentially leading to non-invasive liquid biopsy tests for future patient screening [3][7] - The integration of biomarkers and liquid biopsy technologies is expected to enhance treatment precision and improve patient outcomes [7][10]

Core Insights - Envestnet has been recognized as an industry leader at the 2024 WealthManagement.com Industry Awards, winning five awards including the Advisor Choice and Best Unified (All-in-One) System [1][3]. Awards and Recognition - Envestnet's awards include: - Advisor Choice Award for Best Technology Provider for Innovation Platforms - Best Unified (All-in-One) System for Wealth Management Platform - Best Insurance Offering for Access to Annuities via the Insurance Exchange and FIDx - Best Securities-Based Lending Offering accessed via the Advisor Credit Exchange Platform - Best Defined Contribution Investment Only Provider for the managed IRA solution with IRALogix [3]. Company Overview - Envestnet has been serving the wealth management industry for 25 years, managing over $6.2 trillion in platform assets and supporting more than 110,000 advisors [5]. - The company collaborates with 17 of the 20 largest U.S. banks and 48 of the 50 largest wealth management and brokerage firms, indicating a strong market presence [5]. - Envestnet's ecosystem is designed to enhance the delivery of financial advice through connected technology and comprehensive solutions [5].

Core Insights - Envestnet is enhancing its wealth management platform for Registered Investment Advisors (RIAs) with new features aimed at streamlining workflows and improving client engagement [3][4][5] Group 1: New Features and Capabilities - The new Order Blotter Tool simplifies fixed-income trade management, providing centralized oversight and automated reconciliation, addressing a major pain point for advisors [5] - The updated Client Portal consolidates client accounts into a user-friendly interface, available on mobile devices, allowing advisors to manage assets and track goals efficiently [9] - Envestnet RIA Trading is now available as a standalone product, integrating seamlessly with Envestnet Managed Accounts, enabling better management of UMA sleeve allocations [7] Group 2: Market Position and Usage - Envestnet's RIA platform is utilized by over 2,700 independent RIA firms managing more than $1.9 trillion in assets, and it has been ranked No. 1 for Trading/Rebalancing Tools in the 2024 T3/Inside Information Advisor Survey [6] - The RIA Marketplace, launching on October 1, will provide access to fund strategist portfolios managed by reputable asset managers without a platform fee, enhancing advisors' ability to deliver solutions at scale [10] Group 3: Strategic Focus and Industry Impact - Envestnet aims to support the growth and productivity of RIAs through its technology solutions, focusing on optimizing advisor workflows to allow more time for client relationships [4] - The company has been serving the wealth management industry for 25 years, with over $6.2 trillion in platform assets, indicating a strong market presence and commitment to innovation [14]

Envestnet, Inc.'s (ENV) shares have gained 26.7% year to date compared with a 9.1% rise of the industry and an 18.4% increase of the Zacks S&P 500 composite. What's Behind the Rally ENV put on an impressive earnings performance history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 6.2%. Envestnet is focused on increasing its share of the addressable market consisting of enterprise clients in wealth management, financi ...