Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q2 2024 was 0.89 in the prior year and up 6% from 519 million, up 6% from Q2 2023 and slightly higher than Q1 2024 [7] - Total expenses for the quarter were 376 million in the previous year and 139 million, and was up 5.9% compared to Q1 2024 [7] Business Line Data and Key Metrics Changes - In the Investment Managers business, net sales for the quarter were 17.2 million being recurring revenue. Revenue for the quarter was 132.4 million, up from 8.8 million [16] - The backlog of sold but expected to install recurring revenue in Private Banking was 18.5 million in Q1 [16] - In the adviser business, revenue decreased to 122.7 million in Q1, primarily due to fee reductions in the separately managed account program [41] Market Data and Key Metrics Changes - Net cash flows onto the platform increased by 1.8 million, but margins increased to 46% due to onetime expense benefits [42] - The FDIC insured deposit program generated 900 million in assets at quarter-end [17] Company Strategy and Development Direction - The company is focusing on organic and inorganic growth priorities, with an emphasis on RIA expansion and professional services offerings [4][5] - There is a strategic shift towards providing more services and capabilities to advisers, particularly in the context of market consolidation [37] - The company is investing in AI to enhance internal efficiencies, client service improvements, and operational automation [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance for 2024, citing a strong foundation and solid results from core businesses [39] - The company is addressing industry headwinds while capitalizing on tailwinds to position itself for long-term success [37] - There is a focus on maximizing capital allocation and managing expenses without compromising medium to long-term growth [72] Other Important Information - The company plans to host an Investor Day on November 7, with additional details to be shared [70] - A new executive, Michael Lane, will join the team in September to lead adviser and institutional businesses [6] Q&A Session Summary Question: Can you share leading indicators and progress in private banking activity pipelines? - Management highlighted a solid pipeline and disciplined delivery of signed clients, resulting in revenue growth and margin expansion [20][21] Question: What was the onetime impact in the quarter related to Private Banking? - A onetime benefit was received from a healthcare provider, impacting margins across business units [24] Question: How is the SEI Integrated Cash Program performing amid recent changes in the market? - The program is competitive, with good feedback from advisers, and the company is monitoring rates to maintain its attractiveness [28][51] Question: What is the company's strategy regarding the competitive landscape in the RIA market? - The company is focusing on increasing its share in the RIA market, which represents a significant growth opportunity [80] Question: How does the company view the fiduciary obligations related to the insured deposit program? - The company believes it is compliant with fiduciary obligations and will adjust based on regulatory guidance [82]
SEI(SEIC) - 2024 Q2 - Earnings Call Transcript