Earnings call transcript Q4 2021

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Operator

Greetings and welcome to the Envestnet, Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instruction] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Investor of Head Shipman, Relations. Brian sir. Please go ahead,

Brian Shipman

us Good quarter fourth joining call. afternoon, Thank you everyone. on and today's for full-year Earnings XXXX

Before on at presentation, a available like earnings would the live Investor can we and out of under our call begin, our our for is section that webcast website be to found be press This associated one replay and point supplemental website. will Relations month Form envestnet.com. XX-K release, I being

and forward-looking certain found could forward-looking not SEC discussing This be future by will X other we call, current review the for is results the based in is and and filings. performance. Further to those uncertainties, our factors cause can on information our expressed Slides a information. on statements. that regular cautionary be you During information potential of statement the I to X risks, expectations encourage guarantee actual differ from

we be of financial this website. these During reconciliation presentation Relations most certain measures appendix refer non-GAAP a to to directly non-GAAP Please financial measures. posted measures. Envestnet to the will our for is The GAAP our Investor the call, in presentation comparable referring also to

After Chief today's the Company's and Chief fourth quarter Joining Bill me prepared as to full-year the of we overview our a results. questions. well remarks, the an will call Executive call Officer, company D'Arrigo, Crager, provide Financial on Pete Envestnet's Pete will and Bill are company's Officer. update, open XXXX as and

With call Bill. if you may to that, During questions. the queue back plus get please into one one question additional the the over turn I'll We yourself limit to Q&A, have follow-up.

Bill Crager

to introduced uniquely today. fourth thank joining strategy us is report and we to full-year time, on year at positioned I everybody want XXXX that a to to vision Envestnet I'm Thank Last you, results. our deliver a Brian. this quarter for excited achieve.

introduced to the competitive advantage significant capabilities, and plan call our executing for results a XXXX. like the leverage are that year over [Indiscernible] for sustained distinct to we we is out are Envestnet profitability the tightly We're achievements on growth which last few formidable progress we a a have ahead. I'd connecting tangible and will making. that and posted, industry-leading We years the speak

First, our we in to current we net our doubled opportunities AUM/A on billion, asset in $XX base. conversions, to flow account excluding focus began as

We on steps our digital enable advanced actionable delivering million to take advisers unique a also connectivity their clients, day based our XX to clients’ insights needs. that

on of capabilities. insights We're at connected track lastly track by full modernized, a data RIAs, also revenue of accelerated day range environment scale XXXX. embedded firms, fintech our that billion by network XXXX. to as a on environments, ecosystem. We year. ahead, the And track revenue hit on look $X and impressive and growth to We progress generate deliver them also digital to uses a new the to with forecasted companies, enterprises billion last financial X in signed we connecting are for banks, we to power XXX And wellness we're the we Envestnet made deliver

relevance are pieces look applied. we've in Our place. the execution on ahead, we guidance, of focus that and as and strategy rigor The reflects the our

for been I thoughts on with quarters, want We a as speaking and the you will we've share we're have several delivering. doing. strong to Pete But a and you last about momentum we're provide know, moment. how XXXX strategy in growth

trillion that the manage on market $X.X First, over in thousand we've we're on focused with deeper. XXX capturing financial more of been our advisers platform, addressable assets going a

Our powerful. process is

with having their clients introduce to they and to pinpoint engaging success able value-added We're advisers them. to are opportunities for services

coming intentional, And within provide at was prior. from effort from I XX% management. a have are Within accelerated continue doubled assets these assets revenue an flows benefit. reaching last our the flows what management services mix across year AUM much up typically net positive is under generate for this. capabilities we higher-value that fee higher board services. net personalized earlier the an This billion by is year-over-year. mentioned total the investing growth concerted was XX% that Here to I and us. rates flows year for had flows, $XX in happening we grow clip, with This higher mean at under these the AUM

investing overlay For sustainable services last indexing of using instance, flows more advisers doubled in XX%, grew expanded and by our year. direct year-over-year. The than XX% assets solutions strategies utilizing our number by

and encouraging, we'll is leverageable, believe drive lie more are results in accelerated that put have early quarters but approach important place what's the in and success we structure These we highly that the ahead. is

focused a providing set Next, we've of the digital on full market-leading engagement XXXX is year clients our been for technology. a modernizing marketplace, of us. with execution

key several started. You already see, moving gotten build we to initiatives. delivery mode are mode We've on from

while to to rolling tool today them than set XXXX This Our to solutions. broader have productivity greater next-generation out the investment clients is the for our proposal adviser connecting firms creates and it. access more tool of

our client best-in-class have from Also and Envestnet extraordinary. portal, driving the this feedback We scaled new of short client early beginning rollouts We're been nothing clients. connectivity phased portal of is coming a users for developed has this April.

finally, pillar these will modernizes strategy. offering, these growth the manage clients. last XXXX, clients went in data us the enabled value our [Indiscernible] banking by enables data we've year-end we through request very the year, Yield better live ways We're projecting midyear connect time, to clients. add U.S. of to their XX% API's. a in of with last short our and And API's of This many new open to largest

extremely more for we providers, and digital opening to drive ecosystem. marketplace more concentrate estate. by valuable and the experience, solution clients. our platform benefits are Envestnet is industry We more connecting we centralized our real And and

their The it integrate for examples. easier some portal onboard solutions. Here's developer to clients fintech and Yodlee makes our

year for both and seen we this Envestnet XX We of have years, two API last launched over environments usage up for MoneyGuide. portal the developer in all Over last fold.

Our on the clients. more to ecosystem, to customize all the kind will we're experience, their connect clients our What's we for combine unified portals single in point the even coming of their our breaks these is a are platform. entry using a number offerings marketplace. a for is our entirety Envestnet growing and more creating ahead importantly, of experience, developer our into and resulting ground a industry of third-parties year, to directly then ecosystem. environments Envestnet This And one This exciting. of can new the options solutions our finally, for

partnerships suite offers products, of alternative that iCapital We've for partnered that of full the expand greater of clients. to We've Simon with partnered notes. continue our as Envestnet a and We solutions. choices clients UBS well solutions YieldX structured these for income for annuity upon as platform investments. Each we with builds the with commission-based And announced have. market-leading fixed

on of clients. executing pulling the We and enabling are are strategy, future we for Envestnet our by our together, and pieces the lining

One Envestnet. not excited the just recently for center about us. hitting bulls-eye, the ahead the me, we're to for and foot the gas. great progress, our exact and you of but This I'm off news tremendous taking aren't very you noting is year the bulls-eye

the and me more over some more that Let highlight will the of ahead. hear quarters about capabilities you

small analytics powerful, the SMB by in opportunity aggregated their building Our data our business is business This excited connect for the a owners huge helping disconnected to a deeply XX of clients we're that data and for environment million very is U.S. to business. more our parts engaged business about.

clients. data enriches, publishes solution our data for and aggregates, Our reconciles, management Cloud-based

advisor’s the capabilities, from it insights rest of data networks, May, more technology, will intelligence provides parts be It see come exciting and how financial all engine Advisor this person deeply recommendation, fueled our adviser, next-gen to into talking our to the the and our marketplace, of powers multi-dimensional coming of ultimately the and our connecting that Summit, experience our the intelligent hear which faster networking, and this At together all network of partners that these for this you to ecosystem in is And more powers our into providers and and end-consumer growth future. the over a about we you'll from enterprises. it us of solution range the for year. home our footprint, business, an capabilities to full leverageable more drive our profitability will hosting fluid, serve offering our and business business. We're the offers, we using of to more the market all Envestnet life. as future drive clients position office grow

to our for outlook Now Pete, results financial hand you over and it let our who through take me XXXX. will

Pete D'Arrigo

Bill. you, afternoon, And everyone. Thank good

business Our fourth-quarter model. the continue in strength to our results demonstrate

XX% investments of grew XXXX. was fourth into of Adjusted of $XX We guidance to to $X.XX. announced for this the our to momentum range. the compared progression fourth the for few million through expect ahead of XXXX. And the quarter months Adjusted quarter XXXX XXXX of share last from Adjusted revenues reflects earnings $XXX we was the per last the quarter EBITDA February. slightly million carry expected

to million. and out couple XX% presentation, highlight XXXX, be billion is Adjusted guidance to revenues a compared $X.XXX $X.XXX $XXX want complete the in expected we release earnings million but to adjusted is between XXXX. EBITDA between laid be I the Our up XX% in and supplemental and approximately $XXX expect billion earnings In of to to items.

current levels year-end Consistent include estimates published XXXX. contribution of revenue based with as sell-side a asset EBITDA our and past is practice, as Most our appreciation. market analysts, guidance result on of to

our line with our revenue XXXX. some clarity detail like-for-like outlook is guidance basis, on for a about in Adding For consensus.

performed well wealth our business XXXX. First, in

are As from benefit the Bill the will of year organic these assets flows net XXXX. driver full-year And a contribute mentioned, as substantial in record during growth. revenue

in grow in analytics recurring Second, and the digits into around our X% business the XXXX high continues revenue growth subscription segments, with both single in accelerating data steadily in segment from XXXX. to

-pandemic limited million and environment operating operating believe pandemic-related we expenses, operating adjusted compared favorability solely pre million expenses, to travel, our advisor activities. attributed be unsustainable in-person XXXX again, which support, circumstances, client $XX to $XX For around levels of expense can that and an to longer-term. suppressed is other

including are consider our business supporting for we're we would XXXX, important context moving expense investment what today, our into expenses first, is Among to the customer we This areas initiatives. as needs accelerated additional growth call I second are which of the activity business the our as the outlook we as managing normal support focused, on actively grows. of year the our

normal in-person of below levels certain Advisor experienced pandemic a over assumed including, Summit. the restoration category, they prior where were but to at Second, of still activity business this resumption items. levels return the we've broad XXXX, partial In an that XXXX, example, we for the in for of of spending course

to Finally, year to full accelerated investments $XX last we impact year have continue announced the million to $XX a of million. anticipate

will which adjusted by $XX year-over-year. calls, As we operating earnings affect discussed the have $XX on million past several million to expenses

amount primarily expect first be and expenses have Bill driving is foundation revenue growth progress what into expense this quarter, These for margin. In to are and the and point we full the EBITDA incorporated extended will our mentioned, laying the low for profitability. our the structure the

growth accelerating turn margin quarterly and as XXXX. We EBITDA sequential we in into quarter expect XXXX, the

we of will these our move through expense base. separable, core XXXX, components the becoming less As become

has our are in making to Envestnet. of EBITDA. debt sheet, growth $XXX X.X approximately your at focused December about ratio relative We leverage Bill our million end with the you of the cash on Thank $XXX again remarks. support balance on forward. ended million, And closing for growth going we times Briefly maintaining net expense December some reasonable and of revenue

Bill Crager

you, Pete. Thank

of about world. made by risks some for may reminder see it our glare struck our and a today business. you how leading. is unimaginable the our clearly shifts important all Today lot have what flash day I We're is think I today. Stasis our another think meaningful means state. the about quarters would are feeling The exceptional, But us you done ahead. reasons, impact enthusiastic for and and is progress, where of work We and some On clients where Conditions change. we live this ways. that are are in of will a enthusiastic have is a brighter, have and the the we uncertainty opportunity. work of many disruptive sense assumed cannot be compromise for of days, in

meaningful happen of And millions we that have control. drives millions felt and do Insecurity purpose this of sense people's who suddenly the work way, In others deeper and to so connects a things now is when us. the a insecurity. we're outside

the One those money of be not things that have. people should

the is drives they will solve greater Our that put and team, more that have. yielding financial essential. this we a and This weather money far cause. that work We're do is better helps It control, and things on control. the delivering more a value But it breaking a is increasing is and us. the clarity, person's it down end, focused the enables for much to and It our greater value stronger more life, sense purpose of of for inevitably personal clients that of valuable and clients security world in value people's people our person's the the outside walls it for uncertainty grasp clients, people. important doesn't creates drives value within security from important that greater to shareholders. the drives our this The their the work Envestnet is creating

who will people Ukraine. the your I thoughts turn prayers call Hector? Hector, back the questions. now will are Our to moderate today of and with

Operator

be please session. conducting for pull question-and-answer time, we questions. Thank a One you. we'll while Instructions]. this moment, [Operator At

Devin Please question. proceed question JMP your with with first Our Securities. comes from Ryan

Devin Ryan

Bill Good are afternoon. how you? Great. Pete, and

Bill Crager

doing? forward Devin. How to seeing Good, are you Looking you.

Devin Ryan

guys potential, just how get situation can't that I interest -- I'm shed since I'm year great. around of private if up, any and not the will recent I perspective press firm? or for well. come you in as into guess, you articles affect equity or light sure any can I'm I'm next the details, even And process doing doing this in some underway. a firm strategy on that's the I'm queue if the And or two might You here, sure guess, the first like

Bill Crager

just any at end I've speculation. been but or articles, And I consistent out the to and are know our any been I'm very of day, in a there. or commenting what's speculations policy the rumors on not Devin. comment media on that the spate not there's about of Thanks going And

our how prepared We in we stated are. about focused it's clear are -- hopefully remarks

progress. that key align Envestnet. of now our our all clients organization to to on have of are we're behind that. We And down on they head benefit are hard that the And really receiving advantage. The our man, the making the a strategy making really that working competitive company so strategy progress. gives connect is sustained focused our to Very we

of for partners And the I'm has sustained, focused all drive lead going advice Networking making dead on how value those profitability the that at a more and a on, and more more That making to for that the to going as work leverage period. investments to -- want that. progress, doing are we the the and growth the of to with that But that faster last sure can faster we February is was is more of and industry something drive -- and call it have, of yielding meaningfully that whole off the and end we're business. what day, we understands lot lead industry revenue focused important the investments shifts stage the they We're making sure of are. that am forward. I

Devin Ryan

a I I just momentum Yeah. for some and and seeing nice the expectations Well, thanks point time that flow indulging mean, then, the quarter, the made, And to I on Got follow-up, based last over the know Bill. in use accelerate that's I so to guess going guess there. me investments. fourth it. even

that a little unpack Just bit.

the And volatility. throughout of year of anything necessarily more in market of we just a deeper, remarks the much last in just bit bit else than benefits of Clearly, note any on this a little gave there in not prepared a that drivers little strong there some of around dig has remind us to year. all or then, maybe But may seasonal detail the saw You flows. recur? is volatile started impact

as indications any So just from early that well?

Bill Crager

if sure -- And you've today Yes. indication. market if Ryan, followed I'm the -- an today's

opportunity a do so -- our the in to there a value serve this tool to we that there's concerted, millions that business $X.X What of could that for significant we their trillion February, of no apply is advisers, effort we exact data that. base And well analytic opportunities to seasonality ours. account add was what focus, and talked understood pinpoint no our we was in about that our And needed for serve. So, that we accounts that get as focused we clients. to last reflects the very

resources of recommendations And in early effort use that focused the results that of our so well more super impact overlay penetration those cases. we few our put those organized as use to connecting to drive as We'll to around rates that. business, results, are And assets. some sustainable make the we business, a that around who Their are the growth clients. cases expand in the that more you're sure we're seeing connecting to advisers I market. direct spotlighted apparatus place that index in our And our current and of insights addressable and utilizing their

That's about our market. Slide who X,XXX firms advisers. thousands modernized X, that I'm some What now of into tool Devin. is of technology that, as got desktops introducing the X,XXX those proposal of the reached We've have excited -- the firms, we're getting

So the X. see able the driving group portal, our trading rate got be that rate, to And the subs. an X. tools, we're the Is the results what then the -- old And touching be call our in industry to driving subscription into market. of of their Is and the way punch. into are you anecdotal we'll early begin have end making I revenue to with a market it of will subs subs But have from our to see, generate. of big 'XX, one, you've piece -- technology have client now technology. will growth evidence growth the going that to see the year. What is we'll two really capabilities other AUM&A, we the at essential you the of begin FY

And pretty able in for which to we're so setting I environment drive sustained up think ourselves we're growth. a accelerated

Devin Ryan

Thank you.

Pete D'Arrigo

the the impact broader today. Devin, on given because When I'll this, assets market XX%. especially about illustratively, to we I the markets be about hit know on question, going sensitivity relative equity is a the to that's think our

lower. on might a you than equity higher, that assume X% the a just on for markets little proxy to the exposure lower it But little and markets, XX, be they that might so, were as use a And are be March December XXst. if

So over the year. market asset levels December of again, impact the XXst assumes with course our no guidance

you ratio to the million. the X%, If on And million be they was impact the about on our around drop about -- translate $X revenue using be assume assets right asset-based would XX%, -- impact dropped EBITDA our the impact. would of or markets the $XX X% asset-based cost our impact EBITDA that and impact, to of million revenue. would revenue QX of again, about $X XXXX

is variable the revenue So between along the with that revenue. two. the would cost of be difference the And

Devin Ryan

Well, Okay, see momentum. terrific. the the Good the Pete for Thanks color, appreciate to update and as Bill. well.

Bill Crager

we'll of Yeah. in And you see couple Thanks, weeks. Devin. a

Operator

next Please Jefferies. with proceed with Thind question. your question from Our Surinder comes

Pete D'Arrigo

Surinder. Hi,

Surinder Thind

be of on for and Hey, fee-based about break the on looks number the what terms My wealth for you subscription color its down growth into business down meaningfully what any guys. quarter-over-quarter. is analytics? Congratulations maybe then then licensing? components XQ solutions to in itself. on thinking wealth like licensing, question It what the Can the you're XQ seems solutions pretty data pretty organic thinking and you're subscription on side, good the guidance for And the guidance the numbers.

Pete D'Arrigo

first the first. answer Let's one

break to the going you a would down, I XX Data the maybe that's but than the Analytics business. growing -- segments XX XX we a lot. our the faster then not the on if little segment. for high growth single-digits whole business two overall, is to wealth for XX be So business, revenue overall to if wealth And the maybe said in say and

second I'm that question. your about was subs? second And in X question Around then the it X didn't [Indiscernible] Surinder, call range. I sorry. So to follow

Surinder Thind

misreading I guidance, and I'm Unless the apologize.

XQ, XQ so, subscription and quickly. through Just color million, that? to down guidance $X $X million really licensing going or be The numbers $X million on for to seems quarter-over-quarter by the any versus

Pete D'Arrigo

this take We'll one off-line.

Surinder Thind

Okay.

Pete D'Arrigo

follow in with you. follow We'll but doesn't [Indiscernible] with mind, follow-up up my off-line. we'll you. That up We'll

Surinder Thind

years, color has terms noticed My from on last is subscription from from been the the between ago? been of apologies. obviously, the just Any activity guys emphasis is -- licensing the strategically, if the large given making re-class I've market strategic a made that? And in to for then, businesses two have prior that in lower switch, levels of subscription it's the over that compare have how Is moves especially business. fee-based fee-based the than dissuading terms the in going we business years two you been clients to were market years. shift

Bill Crager

of some have No taking -- we're over time of Surinder, went product what converting more pretty And -based transitioned those those utilized more -- -- I a base that had into like an sub of through we for a clients a based mean, process when of and [Indiscernible] assets we're sum solutions. hey reporting we our to marketplace or transitioning offering. what of from, clients asset large subs the or those performance capabilities

those valuated mix a there's things that contract's for in platform. product, -- I help clients UMA when category. a asset-based basis. building up to But technology those a make we're then majority fiduciary like the of there, fee index clients the charging more assets on and well from as where I that's direct sustainable a subs our as our function, think the driving pushing tool when we're using our for decisions, offerings. we to types are to of we'll on episodic fits to think be infrastructure maybe -- discussion, it's Preserving really, a move pricing the overlays where we in And sometimes client it's But up added a sub-base services, wanted there's opportunity more them place renegotiation. our for the value

Surinder Thind

it. Got

apologize. then And I Okay.

checked in basis. it press reported here then $XXX your subscription-based this be the million are numbers I quarter, when revenues. going to million says your to $XXX range double $X look to in on it's XQ, going revenues release, guide subscription-based for $XXX number -- the a And of on million so quarter-over-quarter I million, it's to be down just non-GAAP $X at the for So

Pete D'Arrigo

with that take we'll Surinder, you. offline

Surinder Thind

Okay.

Operator

with question comes Michael from next your Young Truist Please with Securities. Our proceed question.

Bill Crager

Michael. Hey,

Michael Young

how's Hey, going? it

Bill Crager

Good. How are you?

Michael Young

I'm back to significantly trajectory doing margin to just what or taking EBITDA the the in kind And up fine. are of from growth accretive with to to question. can incremental the of the data kind Can that drivers of for and we about guess Wanted just Thanks the lead that analytics start then, follow-up, business. of at growth, decent as you're shift growth -- I of overall moving about those are the the Is you sort profile think more that X% accretive revenues. the high kind single-digits? that margin? of if talk a

Bill Crager

to the got be AgSpace, fintech that's on financial in side I'm business. the of dynamics very institution by to encouraged data note to the growth Yodlee very in we've the business. do as couple business of, on side been And been something so or believe that momentum our hard that that to we've vitalize it's to whether quarters take to building been business. restore know, several it. Kudos we've that that been we and hard working working you Michael in has really as continued a Yeah. competitive Yodlee team, the It's of

have down deploy that professional through and create revenue; Yodlee more services and PS big much revenue kit very so to been pretty usage charging developer worked much our it's clients. that bringing decline to of we're more small doing agility, product and the to have easier our out purposefully We that in not

revenue purposeful a been decline. that's So

We're There created was restored in growing that some bit on in hedge bringing tremendous growth seeing the today. and are international and business, who the of side, the marketplace. a data open in And Australia are and restored finally, the that side, revenue, then mostly that in kind have in data supplying interest UK. the that pretty firms on analytics foreign asset banking using They of fund to we're or a manager well hiatus the by rules market.

and partners as that in winning our as as reseller there space. well So that contracts we're

Michael, kind the get about of direction. working corner, in enthusiastic we've So business been that of and work I'm lies for cost turned From all kind effectively. the is, at I investing what offering and opportunity of of the leverage pretty very certain points offering. more the tremendous right ahead it hard of long short areas, We've for that conserve -- conserve to those underserved we platform the areas data a business. Yodlee small here standpoint, we're there's like and pure in are believe much that business SMB and noted of business

market It's product the will to make that a of way second its very exciting in half XXXX.

for as That who small of lot lives is And our business Some asset a serve and business to that investments helping make ad-tech enhance, a to existing banks, large get side, continue well dataset investments their really analytics to advisors we're as them dataset, by distributed. going together. well invest as to the the tool areas, lenders, properly competitive useful pull be more in in commercial that making to in into the market adding make sure the data data to the also we're manager from seeing policy and owners that marketplace. some expansion to as even Yodlee space

it'll be -- EBITDA that a we're be large investments still they're While making there. contributor, very

Michael Young

that. Okay, thanks for

Pete D'Arrigo

there I it's not Bill without have margin cost I'm talking opposed the a sorry, of margins. about. support costs the It costs. of Yeah, levels of platform as on which more as to margins that activity asset question mean higher base, is goes good through, Michael. do is -- variable but type We it software is some closer tech carries higher revenue. as to it's

Michael Young

that you've Pete. And be I Appreciate about potential the monetization one. guess other partial been or cleanup talking just there monetization question, Thanks, more that of Bill, then, in would open on business. my

put of to or specific sort what helpful. you with Just Are would Just a to you that cash towards side extra like about, curious you any would and would that do of philosophically, the return were or would things more be projects capital? if shareholders? there that wealth on that something be thoughts that come that have,

Pete D'Arrigo

been made on with been set going we advisors that business we you bit productivity powering And some value. more That I is smarter throughout I environment. and on our creates for that year believe Thank a and is and and data run our the going ended meantime, the board amazing us. little focused tremendous get offering way Michael. because very its, really last In that beginning set Yes. more to unique more getting competitive our growth a across it's restore that a $XX and heads-down more insights day in And as we've drive it and its powerful let we've shared a to mean, that wouldn't restore we're things. threading to to billion. million we're we is our from recommendations wealth

Some share that of the business. that or ability IP comes and brain our the Yodlee of some to do from

cash a it of other our some flow is intelligence. whether apps, data to the We're kind powering We've some next-gen it's blocks MoneyGuide data power the spread And or of using then also just financial whole now FinApps, host planning, or across capability. business cross organization. or the incredible

wouldn't continue rate much that more spent we've what I to only it environment in with that. All further growth think I -- for to to it's up. I and way manage do the the sense hypothesis the I've the that we separable we're where as in and of -- to the And really don't contemplate restore wealth said, time that That's business Yodlee business, said. using been moment made we more power our a business maintained we So at really that get than such comment the a not we've what strategically capital, if to would at. dataset

Michael Young

Okay. I the appreciate all Thanks. color.

Operator

next Our with Ryan from comes with question. Goldman proceed your question Sachs. Bailey Please

Ryan Bailey

Good Hi. everyone. afternoon,

Bill Crager

Hey, Ryan.

Ryan Bailey

benefits you year the the entire industry. it announced revenues, investments wealth And think a think the about management that We're I life. you could intelligent in financial investments have impact a needed for the beyond since I vision

year you executing from that's anything strategy, or this done? over on So I do you've how guess faster, than past the back given bigger, better important feel you is, the as held

Bill Crager

we at annual vision in people driving progress last do. stated Summit. we the person That's can, money pleased technology, what what we'll get be a powerful ways. that very and of spear inefficient we're year, got encourage making, there, I've and I No. remarks, we're marketplace technologies are if it's the working to and by would more We're of to in happen. I'm making called join what encourage coming prepared kind way it been we're start I analysts intelligence creating together the Ryan, leaned of that another because more then But really, help and more the Paper, life. White is we is introducing think their people refer the and us money. had addition -- again, we'll is on really going truly with disrupted. join and to my these as with you Because is. May It our pleased disrupt investors, to you'll of year. in be tip Advisor to it to and pieces and And I us I at good I progress is think running connected make Charlotte into life in going vision the the I'm has it insight get multi-dimensional last to understanding people sense to coming and I it's really back in able more And it in really going been in May to for a and environment do. industry of the how to experienced as it a in money to managed we making Charlotte how as are the

Ryan Bailey

Got I'm it. sure you'll That's really a helpful. may And better be too. Stuart, but an have question opinion, for this

do to haven't more you there there on you For just have aggressively? competitors analytics you in what could had if to business, focus industry more and invest able tackled would of would the margins, the what invest that think more data you have to had if aggressively do or flexibility that what been giving business you much be as some tackling

Bill Crager

particularly On the data analytics Ryan? business,

Ryan Bailey

please. Yes, Yes.

Bill Crager

Yeah.

people their earning we're using is the to And tremendous way the wants is share are come data how Every our think clients in a they're with that a I of think analytics. great they drive in we've municipality, every how analytics. quality get government are macro value really clients able doing investors. how and their And view money. really money, a to economy with for that same analytics improving some its what in are and [Indiscernible] what to how policy And prominent is driving their the powering incredibly in of firms opportunity is area. around all of are and we are we're couple to One Where of state, those the we're And about and earning people other and an areas their the marketplace. headed evolving. time. agency the growing then people analytics the how every economy valuable you see

some product we're with data. There companies together will market around product. them pieces and is We a as that messaging a is that on take sharing are and to the as add on can the have is developing hitting been of -- regulation these struggling perspective have they to. the put of the they used reach. trying other their into how well consumer for a that cookies that put that has of effective ADTECH to place usage web in hurdles So Ad-tech working There kind put in partners market.

an around to. regulations to our And basis from they need that so us. is continual standpoint, on around analytics clients opportunity the a The that's understand last details and some the for adhere just one RegTech helping, of an

Ryan Bailey

you Thank the color, Got it. Bill. for

Bill Crager

Yes.

Operator

your with next question. with Chris proceed Sandler. Our comes from question Donat Piper Please

Bill Crager

Christopher. Hi,

Chris Donat

on XXXX into -- to I'm guys. going the afternoon. number making quarter go full-year or or in quarter at revenue to Pete. what back quarter just Hey, implied the Good third with second And then the look that's understanding first what's the be. basically and guidance with Wanted I revenues out if number, sure the the asset-based growth fourth quarter could

about think around XXXX, just arms it. the more implied growth revenue combination? that to or that's balances remainder asset-based I I'm the or get my As trying of fees a for in is

Pete D'Arrigo

saw that the It's XXXX. of more in same we

flows. weighted heavily fees. more flows toward So on higher those based carries higher business, AUM And asset which levels

and think flows would dramatically increase we I So not slight to different, a see and the in higher but over the expect the course year of fee rate quarter-to-quarter.

Chris Donat

just right somewhat backing That doing Am quarters. state of should to your then for the revenue looks be implied sense. and that quarters then these like I makes Okay. looks imply like then into should it also future expenses from there, similar? math steady EBITDA, the it And half be

Pete D'Arrigo

it the tried little quarter the to first when remarks, terms you about bit EBITDA margin in of prepared a talk way. should about So low that but be point that in the think

to start growth. should we outpace so ex-market revenue And expense growth the see

see so we'll more COVID. we ramp before And that like saw

and that a If XXXX we had higher. to go we're at maybe the lower I back over to more of and the course those little trend. on we a you expecting think bit QX years; always had look little progression And bit QX be

Chris Donat

embedded will. just the think gets that XXXX, there's you partial had still there's likely will recovery it. -- we world still by expenses go -- as mentioned some higher assuming more you probably you're normal, elements the And too, so Got Okay. if expense might

Pete D'Arrigo

Yeah.

Chris Donat

much. very Thanks Okay.

Pete D'Arrigo

get through but to think to see 'XX. of out XXXX, Let's accelerate 'XX yeah, we're margins and FY Yeah. FY going I

Chris Donat

Yes.

Bill Crager

Yeah. our That's intention, Chris.

Chris Donat

XXXX. rate XXXX Yes. higher And a than you at began yeah, leave in

Pete D'Arrigo

Correct.

Chris Donat

okay you. much. Got thanks very

Operator

Kramm Alex with your question. from UBS. comes with question next Please Our proceed

Alex Kramm

the questions everyone. the -- am it may I to ask going of before, have subtext question Hey, of but same anyways. answer My some

this somewhat you given I your Bill, really I you're after like few asking a basically now out I company, book years, acting company. see that you a be am you was I margins before, and something think company private that guess, year-ago, do think asked a because check I things if after could for okay, you were I opportunities -- up imagined public said company, a I open if right three -- where a I I again, I public when EBITDA go that an mean, but we like a this plan, rolled crushing can't like for told private you go on years. had call investment not haven't two, you're

So do just to public just now? can that in would right more feel want a things you company free you you excited opinion be and your as

Bill Crager

you're on that Thanks, going well. are doing the Alex. rumors And out to speculate not there, I'm Hope no. but

important for delivers Alex, to we've distinction firm made it solidifies because value. an leaned it good And interim capital in tremendous is very a other in step company really that here clients for an And I the and time competitive company. very no of to But are an us of known for Envestnet that create use We our our it what period was sustainable areas does our time. incredibly the can. long competitively you've are think

to of actionable deep data We them. access them have set creating presenting that taking more we're take we're our and it. and that for network And advantage seeing opportunities We're they're tremendously beginning advantage insights this heritage of data to these to it. intelligent more

We have the number one planning. leading market share in financial

as We management share one asset turn platform. leading a have key market the number

solutions the types put that out of We products extended we platform. built and have our in

Hopefully them faster, with something bring early that what been sustained us like parts very still, the And the to to but to really super at ramp the has our are we've answer lot to to capital pretty that's work that been going evident by create where those together, pointing path. the is the And got we're a market us hard made, with I can everybody. if accelerate we've that did significant checkbook, that dynamic of there's I'm in But one it's What me open two, been compete So and we we've lock spend. one. work. growth. do And that this decision second Envestnet. for here is just to. try progress ability incremental competitive to down judicious we I It's Number important more made spend. the And think's is in this in there's it never the believe highlight an but we distinction days really pleased and we've about Alex. could

business. and deep very Because we're R&D create We're technology people are been for doing resources deep. that very recruiting today and mission sustained market. been purposeful this competitive have behind we've in those Envestnet, And a be data center at industry, marketplace exciting And that our investing and are a a thrilled resources our things to can We're for why? to growth here. guess those the grow for change

are so is work to ones talent kind or because capital has of created broker-dealer. put a recreating able we've centralized going hands the be that Envestnet to or for Again, judiciously us. become to and they're that at we've the future they're going -- going local a invested to force for up that concentrated their the aren't -- And No, coming to say we a be those same mid-sized it hub. and a are a RIA marketplace

again, And so, very of to again, that making and thinking a just, I making And is good we're executing head on believe come. progress. There we're lot more progress am down here.

Alex Kramm

And you this mentioned a maybe fair this was That's back T&E a asked quick Maybe just of as you and year. Pete then, enough. for would where Can be color. how terms Thanks coming in well, actually the for maybe but number one etc.? us give the still much to? you go think say, level, you XXXX normalized go to is eventually much how incremental relative on going the then or -- company spending XXXX let's could be below, to back travel,

Pete D'Arrigo

Advisor entertainment about So to spent FY little This year year specific of over Maybe I'm to years. was that and you travel and maybe spent XX% summit, that. want in in $XX to on both don't and be virtually XX% half not the Summit it. we quite travel in XXXX, I none numbers. directional high teens -- we'll between range. 'XX FY But canceled This of and the in a lumped total which we be too I going give 'XX there, probably to we're million. that in and

Alex Kramm

Thank Fantastic. know. to you. wanted I all that's Okay,

Bill Crager

evening. Have a good Alex. Thanks,

Operator

we moment more for One while poll Instruction]. questions. [Operator

proceed follow-up Our next question. with your from Truist question Securities. Please is Michael a Young with

Bill Crager

Hey, Michael.

Michael Young

Thanks for the follow-up.

equity prices, would wanted ask the in to adding buyer, I if even leverage to obviously we cutting the rumors on generally Just you're but understand think it going what about a coming stuff and like private playbook in, something and would and comment and marketplace, be costs, for raising you Balance to the then just maybe not that or just near-term, former any is of Sheet. be but on real can those there cost-saving are opportunities? in footprint going and of anything terms to the the execute opportunities assume that all estate increases, happen, two, other business see within particularly medium-term, I not price maybe you the latter with

Bill Crager

to not get our understanding again, coming pleased and X at to any employees. we're been you from Number any hard I you But is, COVID. are environment any a and of we of capital the nearly workplaces work I'm assess making. period create with way investment stuff the your to want referring way to of and want what dollars And sort have -- to where are on a Michael, Yes. in you in that's what two-year there. years, couple the that think your which of ability out going to had things here. going two it. we're up for kind put also have of We're We've where we progress

estate footprint. real our considering absolutely So

our on marketplace focused there. super changing go-to-market and and how we the been in that engaging have out we're also We the way market

things like I we think be Other those like and into. traditional may things that ways that leaning are investments be we're of areas leaned on would workplaces back those.

good we create if work is end company, we of get think start just said, a we've environment, to how a that to exceptional to as know one long-term bit, leverage profitability drive year that Pete on hit that it important as we last for leaned the our this amount is return and -- a there and intention and and been faster bottom-line is private into but and 'XX business growth a more of environment investors. growth an the of little So environment generate as done 'XX or in kind FY to can FY this to create has public for I do we've don't for in the

Michael Young

for Thanks enough. fair Okay, taking the follow-up.

Bill Crager

Yes. Absolutely.

Operator

the closing the call Bill and we the Ladies like session, Mr. to have end turn for of to I and remarks. reached Crager question-and-answer gentlemen, would back

Bill Crager

Hector. work that speak thank extraordinary for to to forward to for Envestnet. and all colleagues joining my of a you and you do. I Thank again you, A support you thank want good of everybody you, quarter. your I have Envestnet the to look next Thank for tonight evening.

Operator

This concludes today's conference.

your time. disconnect lines participation. you for may this all Thank You at your

Envestnet (ENV) 25 Feb 222021 Q4 Earnings call transcript