Envestnet(US:ENV)2024-11-07 21:15Revenue 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]