BERWYN, PA — Envestnet (NYSE: ENV), a leading provider of intelligent systems for wealth management and financial wellness, recently announced its financial results for the third quarter and nine months ended September 30, 2023. Despite challenges, the company demonstrated resilience and achieved remarkable financial performance.
For Q3 2023, Envestnet reported a total revenue increase of 3%, reaching $316.8 million compared to $306.7 million in Q3 2022. This surge was primarily driven by a 9% rise in asset-based recurring revenue, which constituted 61% of the total revenue for Q3 2023, up from 58% in Q3 2022. However, subscription-based recurring revenue saw a 7% decrease year-over-year and represented 36% of total revenue for Q3 2023, down from 40% in the same period last year.
Moreover, the company’s professional services and other non-recurring revenue soared by 38% from the prior year. Total operating expenses for Q3 2023 also rose by 3%, amounting to $316.2 million compared to $307.7 million in Q3 2022.
In terms of profitability, Envestnet showed a significant improvement, reporting a net income of $7.1 million in Q3 2023, compared to a net loss of $7.3 million in Q3 2022. This translates to a net income per diluted share of $0.13 in Q3 2023, as opposed to a net loss per diluted share of $(0.13) in the same period last year.
The company’s adjusted revenue for Q3 2023 also increased by 3% to $316.8 million. Additionally, adjusted EBITDA for the quarter rose to $67.2 million from $53.5 million in Q3 2022, and adjusted net income grew by 24% to $36.6 million. These positive results reflect Envestnet’s strategic focus on enhancing profitability and delivering shareholder value.
As of September 30, 2023, Envestnet reported having $43.2 million in cash and cash equivalents. The company’s outstanding debt stood at $892.5 million, consisting of $317.5 million in convertible notes due in 2025 and $575 million due in 2027. Notably, Envestnet’s $500 million revolving credit facility remained undrawn as of the end of Q3 2023.
Looking ahead, Envestnet provided an outlook for Q4 and the full year ending December 31, 2023. However, the company cautioned that it cannot predict the market value of assets under management or administration on any future date.
Envestnet’s Q3 2023 financial results affirm its position as a leading player in the wealth management and financial wellness sector. The figures demonstrate the company’s ability to effectively navigate market dynamics while maintaining its commitment to growth and profitability.
For more information and addtional details on Envestnet, visit www.envestnet.com.
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