BERWYN, PA — Envestnet (NYSE: ENV) recently reported financial results for its quarter and year that ended December 31, 2022.
|
|
Three Months Ended |
|
|
|
Year Ended |
|
|
||||||||||||||
|
Key Financial Metrics |
|
December 31, |
|
% |
|
December 31, |
|
% |
|||||||||||||
|
(in millions, except per share data) |
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
|
2022 |
|
|
|
2021 |
|
Change |
||
|
GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Total revenues |
|
$ |
292.9 |
|
|
$ |
319.6 |
|
|
(8 |
)% |
|
$ |
1,239.8 |
|
|
$ |
1,186.5 |
|
4 |
% |
|
Net income (loss) |
|
$ |
(37.8 |
) |
|
$ |
(5.3 |
) |
|
n/m |
|
|
$ |
(85.5 |
) |
|
$ |
12.7 |
|
n/m |
|
|
Net income (loss) per diluted share attributable to Envestnet, Inc. |
|
$ |
(0.85 |
) |
|
$ |
(0.09 |
) |
|
n/m |
|
|
$ |
(1.59 |
) |
|
$ |
0.24 |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Non-GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Adjusted revenues(1) |
|
$ |
292.9 |
|
|
$ |
319.7 |
|
|
(8 |
)% |
|
$ |
1,240.0 |
|
|
$ |
1,186.8 |
|
4 |
% |
|
Adjusted EBITDA(1) |
|
$ |
53.8 |
|
|
$ |
56.2 |
|
|
(4 |
)% |
|
$ |
220.1 |
|
|
$ |
261.7 |
|
(16 |
)% |
|
Adjusted net income(1) |
|
$ |
29.9 |
|
|
$ |
32.7 |
|
|
(9 |
)% |
|
$ |
122.5 |
|
|
$ |
158.0 |
|
(22 |
)% |
|
Adjusted net income per diluted share(1) |
|
$ |
0.45 |
|
|
$ |
0.50 |
|
|
(10 |
)% |
|
$ |
1.86 |
|
|
$ |
2.42 |
|
(23 |
)% |
- Envestnet does not forecast net income and net income per diluted share due to the unpredictable nature of various items adjusted for non-GAAP disclosure purposes, including the periodic GAAP income tax provision.
n/m – not meaningful
“Envestnet finished the year on a strong note and has turned the corner. The company delivered solid financial results, including margin expansion beginning in the fourth quarter despite the challenging environment,” said Bill Crager, Chief Executive Officer.
“We’ve invested in the business delivering new connected capabilities powered by our data, and have created operating leverage positioning Envestnet to drive both sustainable long term revenue growth and increased profitability,” remarked Mr. Crager.
Financial Results for the Fourth Quarter of 2022 Compared to the Fourth Quarter of 2021:
Total revenues decreased 8% to $292.9 million for the fourth quarter of 2022 from $319.6 million for the fourth quarter of 2021. Asset-based recurring revenues decreased 15% from the prior year period, and represented 57% of total revenues for the fourth quarter of 2022, compared to 61% of total revenues for the same period in 2021. Subscription-based recurring revenues increased 3% from the prior year period, and represented 41% of total revenues for the fourth quarter of 2022, compared to 37% of total revenues for the same period in 2021. Professional services and other non-recurring revenues decreased 7% from the prior year period.
Total operating expenses for the fourth quarter of 2022 decreased to $319.4 million compared to $321.0 million in the prior year period. Cost of revenues decreased 12% to $106.6 million for the fourth quarter of 2022 from $120.5 million for the fourth quarter of 2021. Compensation and benefits increased 4% to $121.3 million for the fourth quarter of 2022 from $116.7 million for the prior year period. Compensation and benefits were 41% of total revenues for the fourth quarter of 2022, compared to 37% for the prior year period. General and administration expenses increased 7% to $58.2 million for the fourth quarter of 2022 from $54.2 million for the prior year period. General and administration expenses were 20% of total revenues for the fourth quarter of 2022, compared to 17% in the prior year period.
Loss from operations was $26.5 million for the fourth quarter of 2022 compared to loss from operations of $1.3 million for the fourth quarter of 2021. Net loss attributable to Envestnet, Inc. was $36.5 million, or $0.85 per diluted share, for the fourth quarter of 2022 compared to net loss of $5.1 million, or $0.09 per diluted share, for the fourth quarter of 2021.
Adjusted revenues(1) for the fourth quarter of 2022 decreased 8% to $292.9 million from $319.6 million for the prior year period. Adjusted EBITDA(1) for the fourth quarter of 2022 decreased 4% to $53.8 million from $56.2 million for the prior year period. Adjusted Net Income(1) for the fourth quarter of 2022 decreased 8% to $29.9 million from $32.7 million for the prior year period. Adjusted Net Income per Diluted Share(1) for the fourth quarter of 2022 was $0.45, compared to $0.50 in the fourth quarter of 2021.
Financial Results for the Full Year of 2022 Compared to the Full Year of 2021:
Total revenues increased 4% to $1.2 billion for the year ended December 31, 2022 from $1.2 billion for the year ended December 31, 2021. Asset-based recurring revenues increased 4% from the prior year period, and represented 60% of total revenues for the years ended December 31, 2022 and 2021. Subscription-based revenues increased 5% from the prior year period, and represented 39% of total revenues for the year ended December 31, 2022 compared to 38% of total revenues for the same period in 2021. Professional services and other non-recurring revenues increased 2% from the prior year period.
Total operating expenses for the year ended December 31, 2022 increased 14% to $1.3 billion from $1.1 billion in the prior year period. Cost of revenues increased 11% to $468.5 million for the year ended December 31, 2022 from $423.7 million for the year ended December 31, 2021. Compensation and benefits increased 13% to $490.7 million for the year ended December 31, 2022 from $432.8 million for the prior year period. Compensation and benefits were 40% of total revenues for the year ended December 31, 2022, compared to 36% in the prior year period. General and administration expenses increased 26% to $216.1 million for the year ended December 31, 2022 from $171.7 million for the prior year period. General and administration expenses were 17% of total revenues for the year ended December 31, 2022, compared to 14% in the prior year period.
Loss from operations was $66.0 million for the year ended December 31, 2022 compared to income from operations of $40.5 million for the year ended December 31, 2021. Net loss attributable to Envestnet, Inc. was $80.9 million, or $1.59 per diluted share, for the year ended December 31, 2022 compared to net income of $13.3 million, or $0.24 per diluted share, for the year ended December 31, 2021.
Adjusted revenues(1) for the year ended December 31, 2022 increased 4% to $1.24 billion from $1.19 billion for the prior year period. Adjusted EBITDA(1) for the year ended December 31, 2022 decreased 16% to $220.1 million from $261.7 million for the prior year period. Adjusted Net Income(1) decreased 22% for the year ended December 31, 2022 to $122.5 million from $158.0 million for the prior year period. Adjusted Net Income per Diluted Share(1) for the year ended December 31, 2022 decreased 23% to $1.86 from $2.42 in the year ended December 31, 2021.
Outlook
Envestnet provided the following outlook for the first quarter ending March 31, 2023 and full year ending December 31, 2023. This outlook is based on the market value of assets under management or administration on December 31, 2022. The Company caution that it cannot predict the market value of these assets on any future date.
Highlights:
- Envestnet reported full-year adjusted revenues of $1.2 billion, a 4% year-over-year increase from 2021.
- Adjusted EBITDA decreased by 16% in 2022 to $220.1 million and Adjusted Net Income per Diluted Share was $1.86.
|
In Millions Except Adjusted EPS |
|
1Q 2023 |
|
FY 2023 |
||||||||
|
GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-based |
|
$176.5 |
|
– |
|
$178.4 |
|
|
|
|
|
|
|
Subscription-based |
|
$117.5 |
|
– |
|
$118.0 |
|
|
|
|
|
|
|
Total recurring revenues |
|
$294.0 |
|
– |
|
$296.4 |
|
|
|
|
|
|
|
Professional services and other revenues |
|
$5.0 |
|
– |
|
$5.6 |
|
|
|
|
|
|
|
Total revenues |
|
$299.0 |
|
– |
|
$302.0 |
|
$1,239.8 |
|
– |
|
$1,259.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-based cost of revenues |
|
$103.0 |
|
|
|
$103.5 |
|
|
|
|
|
|
|
Total cost of revenues |
|
$110.2 |
|
– |
|
$110.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
(a) |
|
– |
|
(a) |
|
(a) |
|
– |
|
(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding |
|
|
|
66.5 |
|
|
|
|
|
66.3 |
|
|
|
Net income per diluted share |
|
(a) |
|
– |
|
(a) |
|
(a) |
|
– |
|
(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenues(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-based |
|
$176.5 |
|
– |
|
$178.4 |
|
|
|
|
|
|
|
Subscription-based |
|
$117.5 |
|
– |
|
$118.0 |
|
|
|
|
|
|
|
Total recurring revenues |
|
$294.0 |
|
– |
|
$296.4 |
|
|
|
|
|
|
|
Professional services and other revenues |
|
$5.0 |
|
– |
|
$5.6 |
|
|
|
|
|
|
|
Total revenues |
|
$299.0 |
|
– |
|
$302.0 |
|
$1,240.0 |
|
– |
|
$1,260.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1) |
|
$53.0 |
|
– |
|
$55.0 |
|
$242.0 |
|
– |
|
$252.0 |
|
Adjusted net income per diluted share(1) |
|
|
|
$0.45 |
|
|
|
$1.95 |
|
– |
|
$2.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and Microsoft Start.