Earnings call transcript Q4 2022

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Operator

Greetings, and welcome to the Envestnet Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question-and-answer session will follow the formal presentation [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mr. Investor of Head Shipman, Relations. Brian Thank you, Mr. may you begin. Shipman,

Brian Shipman

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

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

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

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

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

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

question. into have back the you get additional You if may queue

to With that, over Bill. will I the turn call

Bill Crager

our term announced would a stance of everyone, you, In shareholders. unparalleled a ecosystem dividends this We client evening. you, our connected of in unlocking and economic invest services. XXXX, tremendous revenue knew and Envestnet to our And pay very breadth took the Thank strategy inherent long the that potential in joining footprint opportunity Brian. for deliberate for our thank

term We that of experience so, enable value business. to by short us in every we but results goal also the is real investment in sound that would resilient would every the that the knew doing creation a setback deliver

the will through marked doing in era around our account revenue enhanced We stunning and of the expansion our off. capitalize year advice, are painful cost, inflation, of fixed our that affirming capital realization and double growth, you so, vision turning by to our to to our in margin of clients both and margin is industry corner exceedingly digit long deeper are paying term in them we powered on low of an away income truly and connected shift a demonstrating both Envestnet's vision industry higher the and tell our services an and from losses share. the market on delivering here penetration leading rapid data the soundness equity dramatic are In path we growth we adviser value by And goals. markets

processes our margin expansion and engagement commitment of the creating operating investment our XXXX driving of revenue usage clear our platform we greater leverage; in margins clients; XXXX. of been in our reestablishing greater Those and XXXX, plan reaffirming EBITDA on of have advantage our have expense adjusted the to to maximize greater We and taking intentions: for our to XX% and modernizing outlined by new discipline; technologies in stated enable platform acceleration delivered February and are; and organic

the strategic evolution the over have and planned again the is them that increased to and clients over account maps how for we were year, clients of heard challenges more a growth, volumes, we foundational We solve road our over of choices answering through as Also, last they and our futures. offering market. period of there a volatility. for investments navigated the historically managing deep uncertainty have Over market delivered difficult their enabling offering

of in market high daily invested of and delivering new create our data with client and well enhanced becoming compliance and broader increase set platform fiduciary a more making as value digital managed market with and clients processes to tax like technology knew in intentionally offerings and businesses are to into platform our position overlay, integrating in solutions, service XXXX modernize integrations. the of from to business cloud we reconciliations generation and enhancing we We our requests leadership operating leverage, to our RIA all the platform, as We tool portal, better our delivering the that data more strength, Also, proposal greater want efficient foresight reporting by accounts, services. indexing, With our clients. leveraging marketplace streamline our connected margin into us. accelerate integrate demanded would with insurance automate a to direct leadership cycles. our retirement client and we a the from We're from client and resilient in conversions

produces believe long with for opportunity shareholders. term Investing an creating extraordinary is an unparalleled reach, offering out-sized into coupled moment industry this what we

are our We into essential more of the and embedded clients. more workflows

We for have them. delivered

the in right is their We more earned and revenue, part connected an is holistic, management, how what in and super next expand are that the to of and investments transformation and going work of the aligned win are with next addressing our We've accomplishing. in cycle and advice. they are value important our margin deeper how grow, they even businesses. they This enterprise wealth be how

XXXX, the more but Macro were XX/XX portfolio business, XXXX. in. worst A in a our year numerous of headwinds down was its despite strength XX%. XX% down and since performance operating the the prove of recognition we're results NASDAQ was environment that Our the not than

of $XXX mutual a growth of retail in growth combination from total the XXXX, term and experienced flows, and of $XXX of Importantly, $XX saw we long X.X% year XXXX, that the negative results the including our in the is signal X.X% to market compared AUM/A. posted US swing. net management rate ETFs operating outflows making. is billion business an progress rate more billion platform net our In asset than over of a industry funds across the billion face organic X% Envestnet last of

X% a organic far, wealth based fee a on year-over-year cohort of is Our result. have that organic thus strong Consider growth firms large substantially fourth fell growth average. results for that management to X% very reported quarter asset

growth, track. that billion more are the than uptake These posted significantly AUM/A the typically of continued results attractive flows X% than reflecting $XX our In or fiduciary AUA. of organic solutions, Envestnet higher carry which net rates AUM fee we marketplace data bucket,

using and creating us. more, and sell more bundled valuing are pricing opportunities in our cross clients for platform Our

over over Over advisers AUM/A platform serve very providing using better the to last grew serve, for program, available accounts X% of than XX and the portfolio edge advisers Envestnet with new were access Last proprietary adviser through grew thousands cutting a to last over options million clients. per first managed year, across the number the XXX client to Over time. expanding enterprises Envestnet ultimately adopted of the AUM we increase year, their XXX on platform amendments of new that X,XXX an year. their thousands signed accounts solution firms Envestnet, X%. more features

wealth several from the new and platform. financial data contracts business signed planning core business our analytics, to across have Envestnet We the

going clients. expanding We footprint services we are of existing our expanding to deeper importantly distribution and by the are successfully

beginning the These to results bottom are to drop line.

We corner profitability. on have turned improving the

approximately organizational expenses interconnectivity, a XX laser important guidance broadening tangible and secular this for create anticipated with the their usage the sharp priorities. technologies portfolio interconnectivity to to streamlined investments the which strengthen of tool well data data platform, seamless to our focus then operating offerings working connects Our next collective margin XXXX and the data more to profitable which to benefit of capability The of our bring XXXX, margin December have our drive XXXX, We around is would on at this personalized clients our see the Envestnet provide personalization, have all example unique connected XXX and greater efficiency. countered our and in and financial planning XX% greater see connect reduce the incorporated based a of connectivity, as and clients that as we points, markets our business together steps is to to expansion margin the with One In are revenue in is experiences, in and most for on industry. our driving critical, we responsiveness drives of of investments array proposal clients. client what Factors to better serve the generation which Add made calls utilizes of businesses insights we as that taking the this year. delivery given wealth trend and we'll on solutions. underlying growth, pressure platform our to for efficiency, by extraordinary those basis environment on accelerated hyper for for Envestnet. critical here we growth which the is software expansion

a personalized day XX year. now million last serving actionable over a million XX are insights day We versus insights

We without made. Envestnet's competitively made holistic in progress two we to industry we model. to is years possible us more The revenue advice puts for have have have ago. would that accelerated created differentiated have investments This beginning just a the place been foundation not transition growth the as articulated a we the

interconnectivity this meaningful. data resulting to our client flows our personalization quarter-over-quarter. move drive insights, increase they're has and assets and XX% brokerage managed using are their growth and accounts tools by engagement One from clients driven platform and using rate our account We're scaling particular seen The to in an client firm's our workflows. streamlining numerous to help opportunities organic managed

connected client our program. more enabling converted XXX% is of how grew working. strategy year-over-year after by just than are their this assets Another These two examples powerfully

growth use focus can for revenue our approximately points year-over-year of out number of XX% pool over and extrapolating managed Envestnet asset that utilizing year. the we've solutions in year that the in in an offering to with for our since an anticipate are XXX% the grown up you size, to into year-over-year The the example, overlay offerings XX% of grow while translate RIA conversion million overlay the year. account index substantially actual and of offering, to over advisers advisers has is number XX%, accounts If growth be demonstrates opportunity platform organic growth of is asset this of we is do in strategy. ahead. have market ability selling impressive this last incremental XX% to We incredibly we're will This the you up in attached the direct highlighted year-over-year. the and past, the $X In number advisers year we rates seeing number XX% next our but the BD these year, our XX% nearly grown the experienced last face execute years. number model the up of up last is up accounts the on on Other accounts

key through success similar initiatives that having in deliver We're automation efficiencies internally.

a and also expenses and and in in both expenses, India. inflationary non-people expect this the transition macro and recurring Xst, On head December reduced to to increasing serve. operations volumes continue pressures given of of US in We addition our to we're We adjusted lowering Consulting the the lower analytics we our is Services. count our completed Tata environment data we operating meaningful that

the continues As a between increase base real realize to years coming a to over of year the grow. $XX to end million savings by reduced million, continue efficiency believe will our more will number of as no one The that estate Since as created, this XXXX, we By XX%. account we our our first have result, expect beginning we of will quarter can clients platform. XX%. to scale a down be match, deliver the we do on more by we our 'XX, footprint scale $XX

there milestone. extraordinary needs critical high more In efforts this to the and administered in than modernized a is created much is trade clients function. company's while But the modernization more volumes leverage We achieved hard that platform to so yet some we serve come. examples. beginning just States. any This million we trade client XXX us, reducing are orders, our XXXX, is increase XX% this XXXX, any scale our the clients. of We it objective to of achieve. historically as expense for critical from representing We've new is United all meets a Here portfolios our processed helped

unique where instances way is Every of in another XXX essential up the of is our of these service, example. Here's accounts identify regulated policy our industry, account truly volumes Once clients firm's have evaluates serve investment, inherent this their system our rules. is while our million value. are day, In function to year-over-year This types essential investment to this the alignment out helping again, power of services are essence the essence details ways. down. with a of scale, cost

As and our while meaningful created clients more, serve them. efficiency rely cost on we our are and scale also have we platform in we driving more how

complete industry been clients, that long model. we the of to underway the deeper our create the which enable announced forward which and is clients with the a half to and our and of and the are FNZ, automate efficiency company. generate pursue will our year. services. Last engagement track business model before. This A operating for ability environment marketplace clients' with part technology be never to associated by of term business strategy, a opportunities achieving As to opportunities in step Envestnet we cycle digital we're on to has look we've the integration end-to-end incremental our fully go us service our for second allows opportunity that new scale do for will ways we our us quarter, our and our this revenue partnership is custody, the higher for monetize our are significant to for with constantly The and strengthen element to new had missing business,

XX% that to earn we has for revenue these $XX our with three the consider that averaged we incremental very flows In an of of platform. $XXX we believe over billion flows Begin gross size years, to $XX capture, opportunity, Envestnet margins. million attractive could the every onto future, over million last of

partnerships financial also quarter, issuing strengthened extends we placing to completed and maturities, repurchasing and strategy go prudently our deeper in the strong sheet company acquisitions the in Envestnet, our we our our ceiling XXXX, accelerated Envestnet short, may bulk to XXXX attractive for revenue notes, executed and and to which During marketplace. to set growth executing continue the our that past In We by margin it. arise notes of to November. balance we drive a modernize for lift on XXXX, in In XXXX we the investments growth. the several convertible our platform, pursue this convertible position growth with This sustained the course. clients,

headwinds turned global will committed are we the towards are adjusted have winning marketplace strategy we the who EBITDA continue to mandates. We towards expansion Pete, ahead. from the strengthened executing margins set the next and the out performance the outlook our and quarter's turn We're like to material capital we accelerated will investors new drive position margin and in and I'd for corner we We've results of are markets, now to. XXXX. achieving call for XX% XXXX. Despite growth value over committed our on quarters the next in to this the we believe provide and create years to over details will

Pete D'Arrigo

good and everyone. Bill, you, Thank afternoon,

to continue business model. the year and strength quarter full results Our demonstrate our fourth in

for was fourth while the $XX.X and XXXX. EBITDA throughout the was Adjusted in quarter, with XXXX. billion although fourth we and by client, for guidance were time this, modestly correction for full EBITDA environment customer a especially past million guidance, $X.XX $XXX.X adjusted and adjusted QX essentially full at million Adjusted solid, long-standing X we our EPS unforeseen was million the the year. the the the $XXX.X both faced our $X.XXX with quarter Despite this were headwinds and line November. year $X.XX was revenue for a quarter year, market time the gave given which results in and economic revenue impacted for For

earnings revenue. the outlook. and some for the in markets will want segment the provide out guidance laid least asset based for context comparable I half quarters on in XXXX had presentation, the of year for be but due difficult to to our the Prior earnings Our supplemental impact release primarily XXXX, is in first wealth at the

would roughly last quarters, the to relative year, down were growth this levels through carrying to revenue through headwind of XXXX. market XXst, X our values flows as market December a to of asset rate Using the impact XXXX to percentage point impact As present X coming XXXX year. namely annualization the subsequent

Envestnet While share net continues market to industry flows gains remain under and experience flows. pressure, positive

in a that with discussed average primarily continue we the previously, in expect uptick see along and rate Analytics We this flows solutions. research. revenue weighted course to our headwinds modest toward over to Data to its base year AUM our continues segment fee of more within have face The

points. near segment the and we firms. top new EBITDA robust to we XXXX, this its billion Bill adjusted in challenges between XXXX $X.XXX as XXXX increase context margin previously. [both] EBITDA However, million completes to basis client to With anticipate in XXXX. by that results adjusted XXXX, margin our be compared a of we Despite compared to line the in I term expect and financial to $XXX to reflecting be existing growth, XXX and to and transformation, improved pipeline revenues $X.XXX mind, around XXXX Adjusted alluded billion million $XXX in with expansion expect in later expected is between

Our not market December is capital XXst. guidance, as changes in their market Many as contributions models. the always, end prior does and from sell on in quarter of include based analysts side markets levels any assume

not any do the we from However, assume market benefit our in guidance.

is primarily lower the estimate that the reported which this assumed revenue we difference the of Given than within always rate year. the our early in that, pronounced most in growth consensus revenue, guidance because is assumption,

overhead. reduce we discussed number of to actions took Bill the during XXXX our

taken uncertainty steps we year expenses prudently possible. manage economy, have the Given where in this the to ongoing additional

expansion beyond. point compared margin to XXXX we're XXXX. the deliver our for profitability supports increased confident year-over-year we in and making of result, basis a and our As of head we evidence QX EBITDA positioned margin view progress into XX that to QX is are well adjusted we as increasing extremely are in in ability The XXXX

Turning it in in convertible ended we And Q&A, our of XXXX, sheet. to million convertible to cash I'll December XXXX In $XXX completed you XXXX. $XXX and with issuance We year Thank in our $XXX At million, million a closing we due times for of note we November, making the million same net $XXX leverage notes his amount extending Bill notes repurchased ratio the time, million. the open EBITDA. balance of X.X approximately Envestnet. $XXX five support new for your the in effectively of debt and remarks. maturity it turn out for to up back due before of

Bill Crager

you, Pete. Thank

We are market succeeding what a to. challenging in by we've delivering committed

Our the strategy It ago. two evening. years business on operating is investors is presented we're the clear in results we this executing to reporting

the value scale capabilities platform doing business into to becoming by our core the margin furthered leveraging investments by more going high growth in have leverage cloud, operating growing with our propel the increasing alongside of resilience businesses. organic clients margin We the expenses managing expansion. and and and and We're modernizing efficient, this by deeper

close want they margins what for XX% put They with quarter and fourth of our the thank end it, provide us. to delivered is I our build, advice have clients the it clients we Envestnet we the very would innovate, for of and XXXX, EBITDA what in expansion, foundation the to proud and drives you. day our corner for want and a millions you of margin term, the I to we thank growth you're on long I'm value trust It extraordinary the said and turned Every we margin We And success team. doing XXXX amazing expansion in deliver, millions building in finally, work of for by and want that reaffirming revenue the of consumers. that adjusted do. in reestablishing you recognize goal us. them and our you enhancing I We're thanking XXXX. drives

the Now Thank I'll you back very operator much. hand to questions. call the for

Operator

line first Securities. of Devin [Operator with Ryan Instructions] JMP from And is the our question

Michael Falco

going the standing target, to the drive to aggregation start of Michael that data This an including on in In a your mid and on are Falco on wanted outlook. partnerships the RIA, side. insurance growth I actually and side areas highlighted and subscription you presentation, teens for growth is acceleration in AUM revenue Devin. the then to retirement number wealth

that compelling So to as I'm that bulk opportunities growth? curious do within of you that, going you maybe couple most the drive view are expect what the of

Bill Crager

some at in we I a that with these uptick what areas, some seen the growth look we've is pretty in areas. key XXXX exited and momentum significant of

offering. Let points that basis an point in And area, that to me spotlight work between clients. where is advisers range to net help outsourced serve consulting basis that first, our them worth our high we points. service basis higher And XX with worth simply is somewhere XX net

of access during have XXXX. advisers than the that number doubled more to We who have program

program enter as in Our year we flows the significantly probably that our are add middle XX% up Anecdotally, XXXX. the flows February early here, through in I'd in that up of just are solution. year-over-year this

greatly And last a spotlighted EBITDA and accounts got in that we very and prepared we've and also I growth in the XX% accounts significant adviser category by enhanced very so revenue that serve of how that XXXX the serve XXX% we contribution. it's contribution RIA assets year. and on high remarks a managed

utilizing of base. we off driving solution, is more So our have which sub users that from

managed 'XX 'XX, introducing lot based as we we of using asset a they're now accounts. we're and seeing in turn RIA year uptake from with exited at So technology, utilizing that product continued the rate. momentum, them an the to corner our but Again, they're increasing to we're

year. there. our managed last which into business, times in momentum with off insurance assets as we year, the got were working the On but in base year of insurance and up a were we the we we spotlight platform, We exited small highest the XXX

where extraordinary the annuity based, the and platform, the that XXXX kind That's into What's XX% of based becoming business wanted We've based there. aligned the clearly industry fee get corner we fee is products. of there to tool the more annuity interesting for especially they're inverse the market, so based fee assets in it's on reached type annuity and that today to that product on entire of really So foundational industry. annuity with momentum we're rolled pretty annuities. that the serving

last So and that they're adviser, our they year for good are we're fee a relationship, good very good valuable. for they're got They've contributor good grew recurring assets the more -- to are -- Envestnet. those and they're their we also revenue, manufacturer based a XX% for strong are the of

the To we give you a the in onboard insurance pool have sense insurance platform. platform. and for opportunity And to to of that of use our We as XXXX, part of believe of that, our bring engine what evaluate we use clients onto back the do, have Envestnet. access data we business to Michael, advisers. is book kind largest In we insurance the we'll opportunities

built by the had end up to billion. about that book And we last of business back $XX so year,

Our X year. is this that will times anticipation grow by

of availability across of to growing seeing the a then lot So advisers. these solutions, and advisers, growing and use number these we're of by use solutions growing use

cited time of numbers I about, -- lot and remarks. adviser a one spend I in market, X% year I the in that year's of up per year-over-year. were the headline thinking this Last last accounts think prepared

in was introduce the and with clearly rolls that we tape usage momentum capabilities usage We to get ecosystem So significantly growth adviser working. And with and to the advisers to XXXX. of what XXXX. to set do a more that lot we pretty as is centralize out within in Envestnet defined account their adviser to

Michael Falco

the about for custody and early you're in there on broader the very how custody. perspective thinking in And market relative give Envestnet the economics the appreciate the But for we're a then then you addressable can any journey market whole? follow-up, as I my

Bill Crager

Envestnet first integrated, for digital an environment this service What is off, stage let's the think from I everyone. a just fully standpoint, of the is, from kind set ecosystem.

opening, account Michael. to real from also servicing It's of differentiated. assets. a the all the front and of really to That extracting manage of lot and storage that account the the execution streamlined. is back becomes way the So connecting time, administration, through advisers the the we're the open Administratively, and accounts process account cost the have

to but that that the day, back platform the data end forth happen is between So and the batch throughout a back happen it that flows the capability we've clients a our also and and out, this that continuously we'll will roll FNZ around process, differentiated will a in not feedback Envestnet introduced response really been from we're And our and as certain client there's about. programs strong excited set.

XXXX to that if I is area have vehicle in is the would cash. It's monetize a We and one that our we there. businesses in you XXXX cash the in And the the real comps on at growth spotlight don't right lift really to of experienced look outperformed platform. those But Envestnet, were kind surrounding cash.

contribute enhanced kind line. significantly And rate the embeddedness it, XXX% that digitization the percentage capture administration the you line believe those. the flow from basis of on will cited it, service to revenue will So we at assets won't the the case will use to contribute an capture of and annual We where we but given importantly, here the as flows well if of of our those will of to standpoint, then we growth XXXX overall a those. top real but significantly the that of model, we bottom cost of to $XXX majority look and those, they this billion, nature we the I capture a a of And bottom our line. time accounts, gross of beginning company effectiveness believe of in and that won't

Operator

And our Thind next Jefferies. Surinder from question with is

Surinder Thind

contribution level the in terms even on the inorganic outlook talk terms next a versus to you that in subscription and AUM/A of start. a for than next the growth deeper licensing, year of the about of Can maybe also housekeeping bit question subscription A segment and year? breakdown and licensing

Pete D'Arrigo

organic said, AUA X we going in percentage But because of base. points, X has That a higher asset X% the on When based. a impact I to of to is that's basis, we as it's that is on be a AUA headwind contribution, right, a market of, the carryover think the to course, X% bit about all total percentage, script. effect. the mentioned the the

entering we've based talked rate kind and asset the that few D&A some X% at AUA XXXX. revenue single of for growth. X% of the much subs we'll faster XXXX, mid side. in side leave which business. maybe XXXX which quarters sub about be And year flat, as wealth is than the do through on around we range bit about little than of growth into the the be headwinds, translates the to and over and in then are a again, we're expect, So to of to side, X% a challenges it's past higher We talked bit the little digits, working a for range think we growing persisting We all the

Surinder Thind

You then a here, taking changes as of we bit a longer from non-GAAP rate work spread should goal continues that perspective growth some investment organic on cycle. differences a earnings out the the to term between kind the you think the I and And operating years? of next beginning Is where at at basis? of should get your look by see here that to stability guys the of kind think laid plan over do that you And for a structure. target you about the few an how had organic grow. to And at on XXXX your basis GAAP the and through we that of sustainable kind can run growth a view the point, here?

Bill Crager

we bring comps a to I'm competitive to think AUM/A outperformed and because of details just I I growth, And I but the of to a that down take year generate net just from just to that and of has in has important significantly organic we flows with significantly a before. X.X% a spending We mean the in is we it, the platform. data We that this that, will on get view going been outflows it's to industry a the may fought industry flow the minute growth let the a Why? in XXXX. do. the of was XX% growth, higher at into environment the market from It on -- a the in the results And me negative setting it your usage worth from So tier flow Envestnet, also kind tape. 'XX question. context Well, probably is impacted in The billion $XX the in account kind growth, track, net company future. cited in to net do that said XXXX. the company, lot standpoint. any an to that outperformed able foundational and were then top

points drop data saw management XX%, traded I -- saw they their think companies Six XX%. decline other by of in companies, publicly management declined wealth that net flows net XXXX. by wealth flows publicly traded average XX% are important. their Six we Some

market expands, market it's and stabilizes is growth, And And and accounts, our closely, at track, managers, that growth year last traded publicly important they traded range does track values asset those will degradation flow XX% but managers it at year. by we Asset company. their accounts. we are that TAMs the for There look saw what using advisers two XX%. outperformed. accelerated publicly really and between that the that decline organic as XX% of more net the more because flows services, is last drive their adds reduced We inside

our So we've users growing our pool been pretty of last or gaining users share. year, number of really growing difficult a market. been account the solutions We've in substantially

'XX, to a is it's at But X% 'XX that much growth went step outperformance. look organic growth, competitively, significant our certainly -- I AUM/A when rate back organic 'XX. a from So year-over-year, to in it we is XX%

adviser that important and last over growth. our comps the of it of to margin solutions that ‘XX to the the in grew we the contribute -- then double things at XXXX, with to Michael's digit burn the can also of growth. Surinder, it's organic -- going exit talked note is substantially year in or is overcome And higher tremendous momentum So our an Michael with I if footprint last growing these look And forward. ‘XX that We substantially. our you to the to answer the about left see sequence some And year will year. standpoint, we'll question usage ‘XX the you higher off of adoption very plan impact then year account the floor of the the be rate, revenue, from we tend as distribution markets begin and value, to higher and growth

bit the of in market. we revenue stabilized achieve believe we a the it's question a a help we'll organic believe not we committed by market. to a it's And a we're from XX% So there, stabilization given see XXXX, or if as stable the get market of we need question that that of stabilizes, rate and going growth to, we

to context. but long think So provide that it's important I it's a answer,

positioned advisers our We in growth getting usage we're will that We're strategy to what are higher do. growth long set term and drive term we and the from value exactly company. deeply solutions, for that's more with out value that more customers long progress in making

Pete D'Arrigo

ask on And did the year. the about 'XX Surinder, in of acquired you of and had revenue The timing middle the we 'XX. following was up just acquisitions that, basically

a all So them of about million. run came on if you they $XX add at together, rate

XXXX. $X was growth then for revenue acquired really wealth And D&A good in the XXXX, see side. in both in opportunities million those So starting sprouts about million to $X in and already in acquired and we're businesses,

Bill Crager

had then set company. other of expense question, you that and regarding one cash Surinder, view we how the free kind And for flow

UX, costs data -- everybody recruited things coders, -- As we're forward CapEx use what et on incent basis. use We cetera, we science, the made of be EBITDA. future the of our look you managed of or based to or the comes cycle. 'XX X,XXX as substantial API down a objectives. And individuals we've come gone will the And -- as brought capitalizing company. at off we then integration comp driving we're company the But value our back you we used tightly restructure That that more cost the the brought we've And also costs the that transitions begin the that that. and through company, end we've there back together. come we with are more reach align who for to environment level at come we've that into stock gone to we and as down will separated to the with from cloud, very half that investment into value go we as with pulling number, over along more are we've investments, That driven, the into data that. through organization capitalized individuals individuals the team of look more consolidation driving as a other software our more kind is

as are go an those through investment so the all process part And of program. of kind you

of year our as cycle, we're very the 'XX see improvement those investment aware a way It's priority as of 'XX. as very through it. manage end So costs into the and back we well and get you'll important yes, through this and we in

Operator

Instructions] next is Cho JPMorgan. Michael with Our [Operator from question

Unidentified Analyst

you're trends, Can per you in is the sales discuss some This yield analytics that seeing utilization in you're trends renewal And Madeline data terms today business lines for and as maybe Mike. user of the user? share and and on time seeing also in new cycle well. growth business

Bill Crager

the data logos. signed have saw year number we was new Overall, what last we of business, a significant

per that area. our the account have data of our in users saw platform, other like as have higher per components lowered clients just usage things yield yield on user verification areas, larger in kind We of increased fintech lower areas versus have user that slowed in we

data also we pay growth. new well -- good we And in to to enrich stronger that, a of kind that new far business. client normalize the opportunities bit And in assembling for And sign-ups, and platform. of data the it been the a that, data think bit started wealth the look is that our for future user client -- quite and We've clients, at X we exit business, the we in quite business see really helping data attention on we of saw then capability that really out to our our I overall would So depending enterprise Most is momentum, year and business. I to a anywhere that bodes year. seeing I'm that in onboarding and say, pipeline times I ecosystem. also kind something of where or institutional pipeline how growing our most about opportunities of into we're call we than reconcile within times exited our the talking adviser's the helping far, and RIA the as the deepen all also publish queue interested accelerate with year. XX the kind from fintech we

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Operator

from Patrick our question O'Shaughnessy James. is next Raymond with And

Patrick O'Shaughnessy

you in willingness thought you process to continue behind capacity fourth and Can the the speak to share repurchases move executed into XXXX? your that and as repurchases the then quarter we

Pete D'Arrigo

Obviously, that in of kind XXXX, tracking we bought in couple to periods were the opportunistically in got return And issuance, the we as ago throughout the throughout advantage convertible that we as a do tracking wanted with share took we there of been authorization really, price dipped. have So some conjunction and -- years shareholders in and as the to we well issuance. to mitigate some as were both shares. note comes of along capital convertible much fourth with dilution the could note debt as the issuance, quarter,

fourth So more quarter to the do a in aggressive little we were that.

again, forward, we be opportunistic. to will continue going think I

some run as we’d our end, from greater see with although from -- asking have we're up we do for toward the back we and opportunities, going the And authorization still authorization have We Board. capacity the certainly consider a Board.

Patrick O'Shaughnessy

heading? there activist And Impactive do see an interactions obviously, with Can by filings public quarter, Capital, this where then characterize you you past and your some was this shareholder.

Bill Crager

two lift Impactive for in could we that more were -- automating the investing the servicing. rebalanced I I'd take and and versus of course, prepared has so and of think we're want of you're years it that create it ago, aware And operating beginning a parts we and things. published. just and we're publication I talk think Yes, about really years we'd filings to our We've back the beginning that of step kind the those bring that. of company. to extraction the leverage clients the do And sustained talked it. margin in have We Envestnet organization We've solve to to dollars took do And the that I our competitive of remarks ago, data leverage of transitioned also, said the our things. can power for deepen We those done the We ceiling we creation environment could our administration. two issues opportunities about drive and it growth. the and together. And beginning the advantage. to kind expansion to for company. deliver benefits value we're value outlook, We're see to the creating investment of

drive believe the we ahead on the us to of alignment to free and done guidance lot quarter that there's believe how very see believe And I There's we'll I going alignment, need I a to 'XX around lies be that but go a manage on and as items, execute flow bit that, it's last end high a business high a how degree say for alignment. are shareholders. investors operating go encompassing margin believe what flow. our the brought of in expectations. though end talked and last here really beginning the fourth our that created our And there's of we And corner level it we're given well over now what XXXX. And so to my greater is the turn will capabilities what is had that on into of And our I together, forward. something the a day, benefit year, cash the as of is I And hear towards how free of strong going that customers belief at XXXX, talk and lot here we've benefit in get lots we've and course, to we we profitability I continue that there, opportunity there. I with quarter and forward kind we received. and you'll at in think at and and investors delivering those cash a company the the they that's of the of And for alignment of there's about that basis, Patrick. I we've been

Operator

no to time. back There further I to Bill this at would over remarks. are Crager floor the like turn closing questions for

Bill Crager

everybody Envestnet Thank company as want of you Envestnet. you who will creation what to quarter. job for thank tremendous deliver marketplace in to our this our shareholders team much. our forward bringing I more very like next for your has very of I joining our to to once value us. benefit I'd and long the to again support customers believe well evening shareholders. much together a for here at the the thank parts done closely provide be Thank real as speaking to a look I term Again,

Operator

This concludes today's teleconference.

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

Envestnet (ENV) 23 Feb 232022 Q4 Earnings call transcript