ENV - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to Envestnet's Second Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brian Shipman, Head of Investor Relations. Please proceed.

Brian Shipman

Good evening, everyone. us second joining call. XXXX for you on quarter today's earnings Thank

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

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

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

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

question one During please the follow-up. to Q&A, yourself plus limit one

to queue have call I'll if turn additional you questions. may over that, You now back into With the the get Bill.

Bill Crager

today. and thank Good evening, for you you, everyone, joining Brian. us Thank

rated month investors A conducted environment an CNN incredibly half Americans mood there. economic first has last of current for conditions as consumers. The the out poor. of for that's and XX% poll challenging XXXX summarizes been

a with our You unfolds. insights to us about clients knows with share know we've These that them to things market the as support are quarter. like market wanted headlines, I in the start the ability economic but that we the and one time all some Envestnet giving real experienced

quarter, income ICI, growth $X client are total We During here Envestnet strengthen a were year-over-year. for challenging, an clients. assets. $X.X taking recorded to asset are quarter, year-over-year, support with our this surved. markets well. Investors This quarter to the year. quarter in annualized as cash XX% worry XX% do-it-yourself sidelines assets fixed management is the We operating we at so contraction second of of and Bank When just move huge positions versus Consumers normalize. foundation as what ended to X%. with a flows XX% surging the XX% ahead of accounts began Envestnet clients. it essential industry the costs with presented roughly scale revenue and the as consumer is this increasingly leverage the XX% aligning We the sat happened testament X% to flows our climate and go provides deeper trillion reducing down investment quarter-over-quarter is value in due even feeling this we Contributions second under to increased the more demand. we The of net for far do, According negative trillion. insight operating And absolutely accounts has down Environments what the market XX% as down spending X% balances up positions. grew advisers and contributions our were more staple shift. such category. by and like with opportunity inflation quarter-over-quarter their than their This more investors on year-over-year. That's increased advisers. conservative XQ. quarter-over-quarter Advisers are while to positions to consumer cash

Given of we flows. industry might we'd in with conclude that the line serve, size assets you be

net we $X quarter. the of positive flows during billion However, posted

very positive AUA to from continue We mix to shift see AUM.

annualized of our peer X% in Our organic industry asset above was of well growth group. half the rate first XXXX

at than slower driving are share Envestnet this. but as albeit we pace and than market flows, market, are growing is the we our anticipated, a We expanding do we faster

We lower XX% rates also compared first last more client executed error higher and year. so scores. did the service 'XX to in trades half of We with

on an us essential as Our clients partner. depend

providing stress financial advisers extraordinary We that with the most capabilities, of thousands year. times set of far supporting especially so experienced are industry, market we've the comprehensive this powerful, in partner leading operating scale, the the of in

we are needed. Going scaling deeper, when

are share. We expanding

simply, our strengthening once year, are than we task. again, We we this the to And more Envestnet financial are proving, very executing. position. up is Put are

briefly earnings year. per this results. our $X.XX, million, the the second was the in quarter. is share on despite about first below EBITDA of which number increase more for new of an grown platform market significance up accounts grew XXX,XXX for quarter. Adjusted year-over-year and have anticipated quarter guidance million Adjusted guidance. the the is for to net accounts, quarter higher of XX% $XX million. than the talk Adjusted impressively was of half was Let's conditions accounts $XXX of than The the to forecast the versus the the actual the revenue flows flows slightly ahead given This contraction XX.X

recurring far has a highly XXXX, periods, to able these essential net so come and flows demonstrate these progress to a is every times in out do. revenue month proof seen asset Envestnet Lastly, service We're and we position clients. base we like what stronger to during point our in a a positive of provide have we highly which powerful because

and and growth want us outlook to powerful market offer a them. our provider leader, trajectory. These drive and to trends share are any meet challenging scale, markets. important financial in capabilities markets secular our differentiated us targets. and space. we both I allows spend leverage that to deliver at that's And the from this in that essential other our minute are market to on trends grow secular long-term We The our clients good we

we is and research more the According LendingTree more, their in more First, stress people is people. a source to growing. perhaps than a us that a is financial clear XX% significantly it top their in worried situation of a making it. as it's essential, adviser those huge financial address is tells concern lives. and promising advice in their financial and and best anything more But people positioned our perspective, feel to wellness social advice don't. we Financial fact, else that that from for are This for Xx about own confidence many. money recent secure more that challenge of And in are money site their accessible a more study, are than lives Americans trend, have

Another the core believe be there offering. as continues upside trend, our significant we industry to the become has planning-based is provider leading solution and software, Envestnet a of planning advice financial recent want study of to. and for the do to population plan Demand it general formally is XX% will finances, financial not continue growing, but revealed that planning grow. they their long-term

advice, Envestnet in leading managed begin well and last leader. is they comprehensive for faster the EY projected to In we most We which the for wealth are expanding market an space. the companies are in trend. the want North year, the connected secular this revenue one investors the of trend do. become Data this resilient offer XX% will quarter, served. to power been our advisory want clients, share. across wealth core their platform and to are secular for market, data is trend industry say core XX% do. this period. introduce a We're touch to surging is the on. source is economy between Demand assets another services And and with we with growing we CAGR the and connected than to now advisers wealth we will study exceptionally consolidate and This Invest of we'll growing American for wealth assets comprehensive advice positioned our holistic XX% place. to integrated our to provider data People for offers the more clients, what XXXX. advice their data platform to a is Fee-based has

and like Our periods opportunity important this solutions the confident our It yield we is resilient are will And investment leaning so why are why results. so our on industry-leading in why are ahead. services we is why these and and clients during very us. more program more are this essential trends and accelerated

teams this. engineering and more investors. of will results activities. Envestnet billion revenue together scaled, confident of drive bringing solution our XXXX, margin Our powerful investments evidence to these adjusted By demonstrate are and increasing margins. are Those our set to client announced on we base, the product sustained intelligent our doing accelerated our now we our $X well more investment bolstering and We XX% In we revenue expense clients. a our and of targets for organization growth within EBITDA and for XXXX fully create February hit capabilities engagement things, as remain valuable is that track in more plan. our as

Let business me spotlight the making. the progress is

our and the and over even our banking fortify business, headwind being the analytics the with up open our had flow and business on example research asset foundation. verification usage and Despite business. impact the our to quarter-over-quarter. increased data facing negative the analytics First, climate stiffer consumer its data has An market XX% activity manager continues panels, through connections

This it to solve own challenges. platforms we manage This easier our value solutions year and data XXXX open from experience. make for connectivity, create aggregation, our to as data AI is brings set. expansive advisers digital modern data enrichment platform, clients' it, are these wealth market, and makes banking, more We their and connected platform creating with beginning to their and into our WDP. data analytics-rich the together way possible a call to firms

client revenue We are XXXX. million across is annual the Insights in of WDP, Envestnet The offering engine around growth the engine. for $XX supports this the activity Inside adviser progress. from all projecting a by At XX million to some data offerings, of the insights share our up at million XX That's were of publishing on year-end. we XQ, than day. end more our insight

deck tech and for to note X increased depicts wealth points. one market support MoneyGuide has share Since it the years. it's And workflow. percentage think strategy. financial Envestnet's that leader investors subscription acquired, XQ. XX% adoption over in adopted XX on to XQ was briefly We MoneyGuide that been that our engagement touch included as now for offerings. in growth drives insights, the offers our of in I planning we've important in I'll revenue solution the a increase have the leading insights. seen those fundamental is because usage clients. we've customer slide see of Envestnet important a supplemental a our There's those to insight we adviser have increase deeper for so industry. in And the XX% This it's for in increasing driver sale asset management this by of a

We planning strong expansion given financial planning to as as continue in demand our grow capabilities solutions. expect for this to the of continued the well

managed with have a robust made effort Despite project million support will a drive experience also technology starts fully significant considerable followed managed has growth. This a by progress fourfold be markets, expanding grown assets for year-over-year market revenue our solutions, by account RIAs, via have us. additional approximately to delivering will We $XX our with annual It we opportunity platform. It in Tamarac fiduciary integrated very pipeline. XXXX. opened account fully which

conditions. doing launched and advisers billing an opportunity a portal delivery are clients. innovator of deeper rendering impressively comes peers. at and number likely we and continues technologies. advisory This the you operating revenue our in market. market can across into of revenue our Today, note we growing accounts, manager transaction is are RediX As have quarters, impact RediX share of a managed is powerful of it new our faster greater our and They well RediX will The our business to of we share been clients in industry cloud-based solutions growing and of opportunity to acquisition previous numerous software. a recently grow infrastructure. as also as with as integrate opens made partners. revenue opens create And asset management our our mentioned the lastly, despite When than X.X% market-changing work the with client our And has clients. we for leverage I Envestnet their

depressed incremental We increase ending in in matters, some Envestnet based this for X% XQ why share to for of continue. this results on net expect And context in million revenue values. an $XXX growth market on

in Envestnet's the tax and direct few overlay this are perspective, a demonstrating We up grown XX% believe indexing impact over To XX% using year-over-year. next Our outpacing industry strong assets to Cerulli some in has years. market. The by number more and expects XX% put solutions growth. a even year accounts assets we over XX%, indexing accounts demand have importantly, CAGR challenging grew of direct are the

of our contribution position with last to important for account these offering, engine, net revenue our coupled market Given use an managed and the contribute update. expansion solutions share us. gross is on-platform our ability the And to represent insight strong

fourth Our A generate highest and efforts year. to model. be demonstrated it worth brief valuable trading automating we When as portfolio also this of for solutions margin by to beginning outpacing have in company. our have worked as is and establish progress XXXX giving solutions contribute services in towards XXX note as a across business over in incremental adoption clients, accelerating well offering asset modernize goal high XXXX, growth see range this our fully even we're to in quarter net us our data believe this the impressive operating basis with without to we organization. points accounting, costs. we on our our the per our ability service at revenue work the significantly from delivered, is We in operating the offerings our EBITDA operations, the billing us. this distribution. will This These they're increasing market, services, hard experienced flows. scale We've these

to the environments continues Looking no creating for ourselves. believe time opportunity Envestnet. we the are in We're XXXX we and we are forward and the grow, have we the is making for encouraged always feedback better Envestnet by progress to and differentiate by positioned it beyond, than hearing, been have Challenging firm opportunity us. there to is

Pete his results. to Let our me second over of quarter turn call for review the

Pete D’Arrigo

Thank you, Bill.

as With for we quarter the growth and our revenue the economic XX% our backdrop of component clients' over and million, year. last Adjusted a continue capital the to positioning critical of QX demonstrate is was markets, $XXX activities. resilience which second environment

and lower quarter, As modestly Flows forecast. than we mainly continue be than average and first volatility expected the originally in to balance values was asset capital positive drop impacting saw monthly due had what softer wealth segment the in but daily the markets the we in our accounts. to we

As Bill positive industry for quarter. net had quarter data flows mentioned, second flows, showed the while negative net the we in

business challenges and supporting macro the share data research The serves million see business, to rate QX. our which mainly asset $XX.X were from trends management in guidance firms quarter. fee shift economy going also was to expectations mix EBITDA the Adjusted earnings per experienced our ahead of the We was Both challenging and for pressures the AUA ongoing also in effective AUM, forward. continue EPS and slightly adjusted of analytics based $X.XX. EBITDA and marketplace,

related largest to the terms While compared QX initiatives. this showed year investment in and QX operating prior of expenses impact year, our to

the in challenges rigorously market-driven revenue. aggregate, goals managing demonstrated expenses these are exceeding despite We near-term to profit by

our for like XXXX, context. some I'd about add to the through the outlook go detail I of Before remainder

and a on execution. are have laid focused out We strategy

wavering have to revenue targets. we our commitment We with this shareholders and of established serves employees. We and not in expect history, consistently our to invested EBITDA. revenue growth believe and Throughout profitability attain customers, have always the a and driving business methodically goals our the fully we are best long-term and from

near fighting cost market That EBITDA disciplined investment to side. accelerate in are standing our and essentially the volatility. pressure part inflationary plan be cost term, we now Those company this further protect our In XX accelerated overall said, cost as are months to order period will of containment on are we of are managed now investments our during expense in not objectives. We and into these structure the structure. still with

of to control further XXXX. this term, referenced continue any operational will Longer we achieve and to all effort cost the decline XX% goal hitting opportunities in provides items margins technology We effort additional adjusted in by have manageable EBITDA adjusted closely expense an to previously the containment margin. avoid EBITDA modernization

outlook quarter the turning our to of the rest third Now XXXX. and for

$XXX.X to and guidance $XX be adjusted adjusted adjusted million and and quarter, We EPS be $XX are the EBITDA to expect $XXX.X million between we $X.XX share. per between third updating as revenues be and $X.XX million our between for follows: to million,

revenues million billion For between adjusted adjusted be expect $XXX the $X.XX be and between year, $XXX EBITDA $X.XXX full EPS $X.XX billion, and to and $X.XX. we between adjusted and to million to be

quarter as on Our June always, end and market does guidance, in as changes not based from markets any prior levels the of XX. capital is assume

debt making leverage for call support million, Turning EBITDA. today balance you Envestnet. approximately X.Xx your joining We in to and the net of June with million sheet. and Thank our ended $XXX $XXX ratio of the cash

I for to his will Bill turn Now closing it back remarks.

Bill Crager

evidence Thank The execute strategy, climate. the growth making was We to is continues numbers activity, of despite what essential during delivered for underlying the deeply. and our how essential. you, and them Pete. and platform the do new we quarter its nature operating more progress Envestnet that are accounts more difficult important and of serving advice we are difficult. historically Financial clients we

has loud research and this clear. amplified Our

earlier, enable those Envestnet tell affluents. story to have times. navigate the Xx spectrum have likely to this and financially believe people said a do believe study, an across our adviser. were respond, about also engage clients results recent of I nearly our not in these true clients. We an financial Americans more I holds As statement react, that adviser through important help We our than that secure feel a

time going a is also goals. changed their solutions an lives. as that engagement, When grows. advisers all solutions and created is insights, and meaningful value been increasingly by times said forward. contraction ante money is how changes of experience so people's historic more our Envestnet in financial services of these. in fundamentally people's extraordinary network of done, like intelligent, expectations in and essential the has how digital It and our connected, have reacts This Our families ups our the for more partner their competitive more integrated financial achieve personalized and industry

expanding deeper and and secular trends into that are the areas delivering years will position We ahead. to going as us do, leading and for our are leaning we tomorrow, the benefit we competitive our today share way strengthening market

We are creating scale.

operating very profitability I'm creating with encouraged greater that Thank leverage business, to are extremely and making. much. drive for the progress We we're our you

answer to happy be now will your questions. We

Operator

comes first [Operator from Ryan Instructions] question The JMP from Securities. Devin

Devin Ryan

and I new think, on want in where Brian, that ramp XX you provided, managed Slide I show RIA the ramp slide was Pete with in to So Obviously, I interesting. the meaningful you revenues start accounts. Bill, thought you the clients had

maybe of a You And penetration But talked What context robust about looks for platform? the visibility over the that. you platform, -- talked a kind meaningful about You that that a can little the you what bit us you just have implies years. next like? type little just talked assumes couple give differentiation more or if the about that on of on ramp of of pipeline. that

Bill Crager

the really clients' And a last we've account of worked desktops. in And that Envestnet Devin. with MoneyGuide Thanks, we've pieces offering the a we've a our in with very RIA with one our and full capacity done market hard got the do of strong and different one to weight investment. quarters full today. what in our those bring Tamarac lot to We managed platform, been bring Yes. one position ways, to -- has together over couple of really

so usage work with the open exceptional Tamarac seeing clients. we're we done. of in being our around managed that in the first pretty our -- And door a accounts. the platform And and managed And really of was uptick lots -- opportunities. as cracked we of flow it is And does, account up

last and is focus began the have -- that year So really we here to just begun. about within

we've that announced direct penetration, the pipeline a array alternatives are strategy fiduciary our to think, part and past, assets and Devin things to from our Tamarac value-added we'll I and growth what in services index But including market, deep overlays a So engage stage. like can them to account do in. what further investment are of attractive, of early our things of and our number RIA managed platforms those; introduce on like What's that standpoint. the the services focused most tax and introduce of solutions, RIAs platform our very or in UBS is as year-over-year is tax very impact our begin we conjunction in we iCapital that as we interested this solution, is with also things campaign something firms

platform fee-based fee-based insurance Our integrated a offering. from

services. And so and a in net revenue, pretty revenue opened door. good to our will driver, both say, I'd get be AUM pipeline, it We'll we as uptick and but substantial. cases, they quick gross an The drive our gross revenue, many and accelerant is the more utilize net value-added

Devin Ryan

that's I'm just timing? Bill, comprehensive the the back for expenses, to little now, answer of Meaning, how pull expenses new ranges just right revenues What think that on back in on is to the Thanks moving those And now. -- alluded expenses. in of are Pete, then the appreciate right that's you effectively much all backdrop, markets revenues leverage? for can a Can so What what trying kind of follow-up in bit clearly a specifically then, if also guide? is expense talk expenses a for areas about like recover, on doing but in. parts, macro cost bit containing you you're the moving there. of lot affecting much, are constraints big what implied you you the just maybe just kind and A helping and about just come

out pull just belt much tone little real in about trying you're a think able bit temporary actually how to might of savings here. versus is I'm a what taking just expense that be to So

Pete D’Arrigo

Yes.

we're we component doing evaluation that temporary, front-loaded allocate don't need I can say want an is invest or the assessment to of of necessarily resources to need it's of making shouldn't we say manageable of say of hiring. most areas. a So the is know business you certain invest couple and the We've ongoing of I where there -- ensure know, -- of don't with I kind how or of it's would to that the performing to or but in to well as I or progress what years so part -- to invest, we're investments -- what

kind able kind availability, throughout of us -- were organization the we or So a a the gives of tap brakes kind in which ongoing manage we're our bit to country. travel some increases little of dispersed headcount, as

relying As back past we're the little that one of assessed come think was be places, in together of that coming start continue areas half coming basis. XXXX talked that would that in a back in quickly back, we're can more that will ongoing heavily to the on we're the on the and we've away how Zoom went an for Again, I about year. managing

So it's things those but that. are examples, a like couple of

Bill Crager

that those to manage areas now. the loaded new And and -- daily Pete's into are much this add talent And what cost those at integrate are this continue books. are of insights the from I that and will reach unify kind we the that point generating on intelligence the house, in that a fully we're answer just the have expenses we're announced creates on as technology create transitioning exactly we're the data of the to and and and base this from And Devin, our as in to the And seeing a would we a ability early basis we're drive is standpoint, depend now leverage investment infrastructure an higher quarter. we'll standpoint. where we all don't that transition can from forward. we XXXX going that's is those to to kind all And dollars automation of degree on

Devin Ryan

it. Got

Okay. Well, helpful context. I'll it there. really leave

Operator

[Operator comes question next Kramm Alex from Instructions] The UBS. from

Alex Kramm

think about if solutions. asked take quarter but similar remember in correctly, already, a pickup really the I it's up I your or I last question personalized

last very But the at gave think and data, solutions. look and helpful. of kind more us data, bit also then you percentage saw nice personalized thanks I year, And that falling accounts beginning us at a XX also as If I the That's off I speaks you it's the solution pickup this if AUM. year. percentage far really the a for look the so, So at giving question little I or have. personalized to so months of in of been this a of

of And think, solutions seems your like it's down. AUM accounts deck you're overall XX%. if coming book. Slide So really at good grown but part accounts, total you it personalized XX, disclosed those in look you on some And have I making the grown, your which as the XX%, meaning slide progress have today

as it's seems not offerings. maybe So like it while you're growing growing fast as other AUM

is So, I'm solutions other just Or just selling share? issue a losing are wondering situation. it -- -- others Is maybe it pricing better? a that are you market are AUM

on your So better but I know it's than products platform are your competitors. doing a long-winded question, I would that hope

Bill Crager

a is outperforming. is that we're strong very sense Yes. sense My

assets mentioned I on are accounts XX% like the XX%. our tax year-over-year, are our so And but call, overlay up up

index is accounts, XX%. of accounts up number were direct Our up

it's our underperformed we've while in Green -- asset where has seen I and in the from is performance outperformed. the platform sustainability not think levels surprising, attrition, standpoint. is a Energy some

disparity accounts. performance add has particular we so in category pretty been in And the continue that significant, to but

net the a look the or -- I a we've at very way, then number Year-to-date, multiple, So market gross And we're significant type there'll probably because values, They're growth a this and added be programs. accelerate Alex, market me value-added this in coiled as normalizes, it categories before. will accounts We've accelerate accounts. typically net releases at it of revenue as right? the all us levels market that asset added generating the way and are to by these of these depressed XXX,XXX is spring, which -- you've of new talk coming heard assets solutions. these in about

by normalizes, progress advisers and activated it that we've bringing encouraged I rate, solution market I solutions. the look difficult the are who platform load dynamic. nature so expands Accounts and the at spring faster the at accounts expands using platform. depressed, the a of addition very the as am these net are very as that in gross the coiled And very to continued a And of who market particular accounts given onto and that environment,

look positively. I I'd over we're at advisers. that 'XX, 'XX XQ we with just add things deeper these So look going overall, at when XQ

advisers have XX% Envestnet the year-over-year. our up categories, AUM with AUM&A they In -- mean, quarter-over-quarter average these in the on XX% -- adviser XQ platform than -- So 'XX. market is account accounts XQ has that's in in -- contraction. the year-over-year more up are XX% and I had per 'XX AUA over The despite XX% revenue

So We're their then accounts with services growth seeing you're out. And Those of we I market coming the steady the to asset from values. you're here. accelerated opening deeper. advisers kind that are an these going see That's believe as in more going activating are why normalizes, accounts. depressed market levels and

Alex Kramm

Yes. noted again, advisers on actually I Or this which, that reasons? my there. you've so focused I've -- other come that to other at of the advisers? two advisers of losing accounts actually because your per adviser down. But is versus penetration which really on last situation you're just year-to-date, the of a Is Thanks because up. is actually history, more deeper that point you're think for it is or I think this second don't big? advisers think seen it because question I new penetrating is in of the for the platform, part were last number two me going definitely the part I gets the quarters

Bill Crager

And one activity acquisitions primarily that This existing of clients those No. was Envestnet. our of an client is have acquisition undertaken.

advisers. X quarters advisers to So the get has really into we're active two the cleanup, number active some doing cleanup on that been last Alex,

the in case some or duplicated. during transaction, So of transition those that were that that

at Tamarac count. up, So even continue continue pretty markets and the that well year-to-date When a actual adviser like enterprises, continue clients to new adds, to these, pipeline clients cleaned that's in we contract new very we've from convert doing sign I look have new of to sturdy standpoint.

ours. that ours And during had XX% do decrease client another this is So advisers we're acquired client relationships of adding with cleanup to related of really that by that period. an we in to

Alex Kramm

confident the pretty being plenty to add the on advisers from have You're platform? penetrated side still that you're to room you short, growth? that of -- in continue of far to add So

Bill Crager

so. the asset we're end, the We've in very a seeing the deeper RIAs. RIAs of and you'll begin little us managed to market. lower I good go to country. think RIA what believe I think But I top penetrating market is the Yes, mean see done in asset in I higher the a job

account solution. we're through our so sell RIA or tiers to focused to that the Platform on Tamarac market and market And MoneyGuide, all packaged Data Wealth RIA managed of continuing with

Operator

comes [Operator Surinder question Thind Instructions] next from Jefferies. The from

Surinder Thind

two Can to like for a on I and you quarter-over-quarter the quarters. question Yodlee's been revenue a noticed about the Data business. consecutive talk there? I'd down bit start Analytics little subscription

we Is there? color that any color or the help should to what's aware there. understand be some us maybe of? subscription sort going Just there subsegments, just Or component some a -- volume of on just the on

Bill Crager

Absolutely, Surinder.

users. new couple a So new the hundred thousand We've year-to-date of has XXX logos. business added added

activity. related yield user consumer -- it's down. Our very per much That's is to really

And business. And verification so less that that headwind the is economic see in part our -- of this, to activity, our climates economically very a that for related. part has business and sort like been business, you're difficult of going of

The and our headwind, related. panels that call the And is market that -- very component it, second asset would component, managers. a seen stiff primary I'd research be probably with

a know, first it's half you difficult As the of been year. historically

in the spotlight. is And growth had the later I'd are year, two And we so the definitely that on business. drivers, Surinder, growth primary -- and to that in pushing our Those that an I projected subs are say would that effect in that in renewals revenue segment. that having out

Surinder Thind

Slide just helpful. on That's question clarification then And XX. it. a Got

maybe is about helpful meant illustrative of can from interpret get a specifically be you labelled like I slide. fact the accounts, the I it's to but RIA the... how when to of the Or managed think revenues somewhat illustration, slide there? the should it's that presented mean, that the overall and the revenue just XX% I I think client about So way RIA is

Bill Crager

to by advisers We're the dividends increases help and that run think of $XX is be very those annual XXXX insights revenue number -- achievable. solutions penetrable us. we're assets, account Yes. relationships. the better that's million. being doing we're seats I using of to increasing we're rate very our those what paying for And introducing early going managed our focused talked it's about manage objective like And an to I

I Our emphasize deep; is that. pipeline

trillion That's between Surinder. would we a management basis asset pool annual in our can I beginning. now an that we'll [ph] that be say anticipate fees of type is This so And RIA and of $X we XXXX, the that ultimately assets fully $XX market. on generating in penetrate, million

help of as accounts on big So get an as beginning few going, we're opening we convert They're to benefiting What their model, components business platform. definitely clients from going to accounts. is that. outsourced deep, a we're open to seeing just begin they're our and not clients, as are we them we onboard

percentage and So RIA focused very serve we tool we're we've it. the on bullish right a and of huge current I'm addressable market. significant early opportunity, days it. revenue here, such the got set on marketplace, people because predominant the right

Surinder Thind

the won't are you were I'll or areas -- if base being are How the with market chaotic? think the expenses point made. to at And Good additional being investments and does of Obviously, front question that to things how -- at market broadly. you talked has expense They're going. you with one of you've hear. the where expenses this really do if rate But all the about follow-on been that it's about base so run the guys think And expenses more related that to market remain difficult the we in to kind point loaded. have then see how -- expense are terms talked in of about depressed have of the terms about to at conservative the come about levels investments quickly. -- what But doesn't count? there's some in actual think or say, where in idea prudent employee time How Pete back. there this think maybe more, the rebound just levers that you there where we do about expenses? should about Or

Bill Crager

aware also investors. we've we're and we're Yes, presented of the very aware to expectations very

program, Surinder, that. investment year, say, So we're fully I this executed would announced managing we or that. of February the point an at business towards last And

into bring of fully right EBITDA. out this the historic downturn, carries right? year. we turn first quarter in are paths that more market That a those when the by with on crossed So here our in now us said, And which we EBITDA there has went to kind projects the adjusted of level future, growth zone lot and that. goes that XX% corner That is underway will past. internally infrastructure, about A of to EBITDA us restore the where of there's the high automation. that the for degree high into automated more the more significant are A in and little created stress deal. we and a we a that's the business. that spoken in create we've cost team were serve the to the degree So scale of generate There's big help a that infrastructure have a shop down expenses lot into goes and

the benefit that we them that throughout year-end. organization. EBITDA margin we'll create expectation so couple from And of in those a by to as roll see basis of points my is And begin hundred

market expenses Of course, eye climate. we given on have our

committed market are of and levels, of set manageable incremental have very we'll investors, curtailed and work The focused first continues we we that be quarter how be the we've achieve for very about to hiring to very depressed expenses. expectations as to on the end prudent we're it. We at the

Surinder Thind

of terms just in Got of impact offshore? on question. the resources expense of one The your it. And of modeling base more number a then FX

Pete D’Arrigo

It's -- fairly expense not base the entirely I'm on sure. minimal

I perspective, it think flow $X about from a was million quarter. last cash

exposure obviously have the rupee, where overall of that the FX rupee, million, spending there. main of million the So Indian upwards we is $XX $XX goes on

extent of of kind that's it. so the And

Operator

question comes Raymond from O'Shaughnessy Patrick The from James. next

Patrick O'Shaughnessy

the I'm curious, do some spoke facing How more feel the to certainly of is competitively? appealing about how like made the But business. headwinds marketplace? in competing kind offering, revamped doing of the there Yodlee you you out it's Yodlee client-related So it fintechs. You

Bill Crager

-- large institution we're Yes. wealth-related anything I that I win there's winning continue marketplace, we to mean, financial those would in mandates. say the

build open network. our and banking We continue to enroll out

signed have Patrick, been And XXX We logos the year. this there. we've connectivity that most there's new

So we're competing.

also is market the in occurring what's areas specialty. of think I

very a surface that. segment, serve insights help of a MX unique reputation in to the And clients of data deeper the the about clients. it's have has the institutional strong going clients very strong of enrich And of particularly be skills, publish and services industry. industry, That of segment, Plaid on convert in all -- because to that them type a addresses strength. able to provider the rate needs, we're of to their That's kind and be our our There that's a Wealth Wealth data how am bullish aggregation we is because to today. back absolutely entirety with data the to businesses or able It goes cloud. Envestnet enthusiastic industry, has really So have very we specialty capability I win go areas and Data the I'm the that in those type cloud-based beyond Because specialty wealth of of our segment segment. the has the of wealth no the most a industry. level client we we where high at the And have market. a Platform. to in and to are we're because

Patrick O'Shaughnessy

data on Great. And Wealth then of I the guess building platform. kind commentary off your

about line really hope of exchanges, And it's to your kind -- as achieve enterprise whether think or So accounts these and enterprise-level versus revenues? your does you of sales kind individual growth key WDP the whether to advisers? for are individual your managed adviser of are kind some of of your it's time initiatives, impact sales or those does which which

Bill Crager

Yes.

well, about But you small business, if -- services think WDP is an they think have institutional I don't offering. a Patrick. either, cloud

account it's and there's to growth market, data, enormous opportunity. them their we when their of think business they not can how the of look valuation understand opportunities the business, an data business, their we at business. have RIA their of the grow help we So just It's kind

that the can understanding value market So firm initially is that -- the typical be RIA and the enterprise because of is with around maturity created an the of data. sale versus a the probably primarily at enterprise

or Yes. a very more world you a we the there's that Is enterprise standpoint. test job the to have normalize to the data, data, So place. there data, to the take deployment needs data missing modern antiquated do. There's you services from scrub the to you and to There's to a a sales sales have that's have inside that all which -- service. gap it's a institutional of have to is cycle WDP, data, then you because treat the have

there's a that's of secondarily market. couple When a quarter So be or level. exchanges, an assets $XX.X primarily But probably the to we're would in institutional will on the Insurance up that RIA comes been to there's it to the like date, Exchange that that The billion primary at have serving. Envestnet quarters, institutional go two to is quarters offering. is

$XX We pretty probably to use line have have of But as that. capability to and we're comfortable billion. other a flexibility so sight well; we with structures

Operator

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

Bill Crager

more all you next making hope where of critical investing I well. And for our for I Envestnet important, we work so I can't think clients we speaking how very are everybody tremendous period It everybody my this relevant more joining of want I customers. is progress. evening. a and to thank the want is look you their forward that to to you everybody and what much thank to Thank do and for quarter. do. is joining just doing us I colleagues is tonight. also we're Thank much. for

Operator

sir. This much, conference. very you today's Thank concludes

very at you may thank time, participation. for lines much You disconnect and your your this

Envestnet (ENV) 7 Aug 222022 Q2 Earnings call transcript