Envestnet's Shares Barely Move After Q3 Earnings Beat, Revenues Lag

Core Viewpoint - Envestnet, Inc. (ENV) reported mixed third-quarter 2024 results, with earnings exceeding estimates while revenues fell short [1][2]. Financial Performance - Earnings per share were 70 cents, beating the Zacks Consensus Estimate by 2.9% and reflecting a 25% year-over-year increase [2]. - Total revenues amounted to $345.9 million, missing the consensus estimate by 1.2% but showing a 9.2% year-over-year growth [2]. - Asset-based recurring revenues reached $225 million, accounting for 65% of total revenues, and increased by 16% year-over-year [4]. - Subscription-based recurring revenues were $115.4 million, remaining flat compared to the same quarter in 2023, contributing 36% to total revenues [4]. - Professional services and other non-recurring revenues declined by 30% year-over-year to $5.6 million [4]. - Adjusted EBITDA rose by 23% year-over-year to $80.5 million, with an adjusted EBITDA margin of 23.3%, up 270 basis points [5]. Cash Flow and Debt - Cash and cash equivalents stood at $193.4 million, up from $122 million in the previous quarter [6]. - Total debt at the end of Q3 2024 was $892.5 million, unchanged from the previous quarter [6]. - Operating activities generated $95.4 million in cash, with capital expenditures of $767 thousand and adjusted free cash flow of $76.2 million [6]. Stock Performance - ENV's shares have increased by 67.2% over the past year, outperforming the industry and the Zacks S&P 500 composite, which grew by 35.1% and 33%, respectively [3].