AMK - Earnings call transcript Q3 2021 | AssetMark Financial Holdings, Inc.

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Operator

Good afternoon, everyone, and welcome to the AssetMark's Third Quarter 2021 Earnings Conference Call. [Operator Instructions] Today's call is being recorded.

Now I would like to turn the call over to Taylor Hamilton, Head of Investor Relations. Please go ahead, Mr. Hamilton.

Taylor Hamilton

you. Thank and third everyone, conference XXXX to call. welcome afternoon, quarter AssetMark's earnings Good

AssetMark's Natalie XXXX the Executive Financial me for an Chief Joining are business AssetMark's Officer, third and Zyla. outlook they update to the remainder Officer, Today, Wolfsen; XXXX. will for discuss of results the quarter provide and Gary Chief and

our introductory questions. for remarks, Following we'll call open up the

our reference IR presentation during an at also earnings that be Natalie accessed Gary can have by prepared the will website remarks. ir.assetmark.com. It We and

Before started, statements like statements. note made results our the to during statements actual differ forward-looking and of outlook could forward-looking we are date materially. I'd get call, that of only as this certain conference These this represent call

risk non-GAAP on revenue, Additionally, all filings during to With SEC adjusted net and to our which to EBITDA related of our and call away. today's metrics. Natalie, income, the adjusted margin statements, earnings conference adjusted call, for Please my business information net disclosures non-GAAP discussing over colleagues. factors EBITDA, take more financial are release financial I'll refer associated turn press we'll it required with forward-looking that, information. and be

Natalie Wolfsen

ended record good continues our to us and has today. Platform while quarter in make I financial advisers deliver households billion. the third on our a high the expanded quarter by also which all-time strategy. advisers we AssetMark advance addressable engaged of flows and afternoon, Taylor, as their The market, you for well Slide consecutive of growth. positioned thank X, the our platform highs. discussed joining value results both on to at to the previous also top assets results our difference Starting engaged much, in Households This so everyone experienced driven a an points is Thanks to lives quarter third in our third of our continuing record of wanted third record call. that bottom at clients, as ended total the net billion, highlight organic for quarter and record-setting and to call. growth metrics. $XX.X line earnings advisers the well quarter marks everyone, hope We've doing I which and just of and third all-time $X.X

adjusted was million, EBITDA revenue Our quarter net making $XXX.X little net the net XX% - this to revenue more million. $XXX making third up than income than XX% was the million. exceeded than XX% adjusted year-over-year Through first a the are more quarter more XXXX. in for revenue adjusted EBITDA Adjusted $XX.X first net than up less that has $XX.X net year-over-year was and income up those million, year to the to quarter, full year-to-date and

Slide Turning to X.

quality of all needs and and service deliver fee-based advisers investment growth-oriented, services. empowers adviser ecosystem run with an and the platform, and Our personalized fully successful a We independent solutions. capabilities scalable highest provide a sizes everything We integrated growing to business. curated technology

for and five - solution we execute seems time. a our Similar we're components from outsourced detail detailed advisers. quarter, on strategy, discuss alone key us proposition and This on our making about are the progress simple, focused in are separates of and we five as the talked each of progress the will strategy providers participant areas key each. last of I comprehensive, advisers, in we industry. IBD-affiliated to growth last value our providing our only open-architecture to order the RIA In While hybrid other

AMI, or and to The capitalize lifestyle new continue how our looks they we first channel advisers Institutional the on to strategy and Slide quarter, where on growth meet Last catering to and migrate or varying growth-oriented the RIA secular these component X less advisers. refrained discussed around help of those to firms to color a advisers is rate affiliations how are designed RIA grow. how trend. to million growing in Institutional generally to Data AssetMark Today, than target want slower $XXX are is some or RIA our advisers with firms provide at assets firms. discuss and than shows much AssetMark demographic I larger that smaller

owners smaller parts remain As time. and of to both order to business operation priorities RIAs they practitioners, outsource on productive competing profitable. face many demands their core need Therefore, in their these and and strategically

outsource under study clients, shows management In new from from acquisition XXXX and our relationships, stronger client fact, findings asset growth. who client stronger benefit that outsourcing of impacted advisers increased higher retention

grow. RIAs and these offers them AssetMark outsourced help solutions smaller Institutional

do While innings, still update Institutional. Aftermarket early on in an I the want provide to

a are expanded in our pipeline to AssetMark our our quarter, this of RIA building we've leads. focus team leadership And on past We offering. Institutional growing strong increase qualified

officially participate AssetMark Lastly, to Institutional RIA was a leading custodians referral approved in program.

X. Now turning to Slide

our end-to-end, easy-to-use component growth their between to meaningful conversations to of is time. holistic, providing their while strategy clients, an clients second advisers designed platform also The a advisers' advisers and and differentiated to saving create deliver experience

discussed the program we client. solutions financial and building initial support are adviser past with As to we the Voyant and beginning meaningful our greatly integration. advanced quarter We've in closing vision quarters, financial a wellness wellness wellness by our few the this conversations between

to the core expand advantages adjacent our One our acquisition well for the and and in accelerate financial channels. of attract ability strategic to rationales decision was

powered aiding advisers clients. has realizing which to Voyant wanting their Voyant by between large with the goal advisers this planning Summit advisers flow-based advisers current perfect fantastic. We advisers, show partners. our alternative up for was trial. conversations our several to side shows and from eWealthManager, making free we reaction a broker planning Voyant based using our for the The financial advisers financial planning actively cash been between options rationale. lastly, started them of in our dealer We've is and discussing our Voyant At live And August, allowing hosting Platinum of trade-offs both all portal, sales mentioned in a and income and that tool team early an to Planner, that Income planning been is felt the by We've only the progress allows added a X. and single solution to as from sign demonstrations tool adviser side are Voyant sign-on

reaction plan We quarter. advisers' are the of initial capabilities to complete fourth Voyant excited Voyant's about and integration the to our financial planning in

third stages strategy The more wealth is serve spectrum, generation. growth across our and varying enable of component the advisers to to life investors across

to turn Let's exciting want share to additions our where X, Slide two platform. to I

doing doing of AssetMark. allows PEP focused access We've this of advisers accounts Pooled on for our Employer fewer to AssetMark billion retirement together study, allowing away been further complete retirement provide retirement PEP economies retirement for while or do fiduciary PEP, of a with Plan. annual assets offering, retirement own in to XX smaller larger gap $X.X support half coverage while in launched than First, the our have business industry By more our one or and cost to our enhancing XXXK new, the more we from band to employers The of Americans plan, location According to the smaller plans. seeing from clients. access size, diligently normally and a for already our platform to not quarter, plan enhanced about areas we scale benefit either retirement The where share workers of of are wallet the third is quarter. PEP end and According lower so, which solution of advisers. a gaining employers single reserved helps any very plan. to still Cerulli, or enhances to at are proposals while us investments employers for The also XX% from offering employers largest diversified by or small its close a work business.

platform. separately growth, new included a They equity core and XX launched of quarter. from managed we thematic whom others. SMAs strategies, last best-in-class the launch of investment include suite large cap to growth among dividend are managers, accounts value and Second, XX many This AssetMark

adviser enable transparency preferences manage ownership eligible fourth a to component The the solutions. solutions has through launched exposure amount This targeted submitted investors as with and of Since of X,XXX early growth to asset suite the investment in securities. $XXX our in programs. can our by range proposals portfolios direct help sorry, wide their other efficiency guidance SMA well tax be September, offering as with AssetMark solutions evolve, and platform as of million. managed complements clients' to in X - As of grow personalize accounts and over the advisers seen increased offering is account SMAs of turnkey combined Slide class single continue scale strategy businesses about and XXX on their advisers new separately on

business believe we that help one financial about programs, AssetMark. want business of clients advantage offering, A a team is established a to that their which and help competitive is build an talk more This so business is quarter, consulting a to I mission our achieve they sustainable of can their dream. for consulting, successful our huge bit advisers

redemption helping business representing one-fourth terms, rates. which growth drive them them goals advisers growth our business drive for firm's look advisers helps services advantage basically and XXX taking by engagement in their our business value, stage Currently, at consulting business actively goals. adviser's growth. simplest to through consulting out consultants advisers right growth growth are XXXX scalable Our helps are their These these exhibit of advisers their platform in of to turn at boost of total through our means our businesses reaching to our our opportunities every and consultants increase drive to achieve guidance which consultants health, higher support with consulting overall their now. company's are a performance. the lower team on identifying how help and plan, and Over adviser assets In and take advisers business our

The assets and improve X. adding to our pursue of ability by final serve investors capabilities transactions their strategy their to businesses. and advisers' Slide to our strategic expand Turning is growth component that

M&A We we are than deliberately on focused have before. ever more been

are fit companies be our that dialogue We at look in opportunity with for platform. strong our will continue and we feel comes that active every across to desk a

results remainder for new to provide of advisers grow the to going results XXXX our and I'm of in very continue a the our sheet while remaining positioned serendipitous, our be cash evidenced buyer. best as color on $XX.X advanced quarterly Gary our platform. disciplined well in to a of and to In call was XXXX. the on to history. million over on is on empowering posted third our outlook company's us million $XXX dive now In to through the continue turn AssetMark credit M&A balance And while to deeper We the have record some our and execute to strategy by facility. we our and addition, summary, remain to advisers quarter M&A we attracting our take

Gary Zyla

now Thank good which and you, on And an sitting let EPS. we're EBITDA, for in the all discuss, quite by sigh. time were first you net high call. outstanding, highlighted is numbers and all those office adjusted afternoon net in third and I'll quarter years know results income record we platform adjusted for Natalie, our in a revenue, adjusted assets to flows, today, the since all-time together X.X

As then expenses and assets, usual, will outlook I start discussion the our about on will then of platform our revenue, our XXXX. and introduce conclude a earnings. XXXX talk in outlook I update with for our

on Turning Slide XX.

record $X.X record a $XX.X billion, billion, impact assets fees. This year-over-year. flow negative $X.X up growth platform in quarter billion net by the reflects market were offset a XX% partially Third net

growth in in as November, of will always, flows and rebounded in XX.X%. $XXX outlook, tomorrow. has and released Year-to-date, remain, of macro continued net clinical October $XX beginning percentage and year given platform October has our flows we will assets, market as of economic with far net billion Report, market which organic in assets announce cautious north annualized million so AMK the of we our be Strong uncertainties. While as a

Let's our our third or for adviser to the we advisers metrics. new attention quarter, now turn second NPAs added producing quarter. XXX In consecutive

encouraged new quality on our by of advisers platform. the are and growing quantity We

XXXX. the since advisers increase of end the at quarter an engaged of quarter total of X,XXX, XXX Our third third advisers the was

financials. Our XX% Growing to its platform of number the engaged assets. advisers now on our engaged platform is further and advisers make of driving growth our our of crucial up business

let's revenue approximately to billion, discuss to quarter's Now Entering to record $XX.X million. the Slide our quarter, were this revenue. turn assets of leading XX $XXX third

income $XXX.X driven revenue of is you expenses. the year-over-year. of know, our revenue by net falls revenue, statement. Voyant's we of In the on our revenue net was won XX% focus quarter up million related asset-based As into which from XX% up million. third $X.X XXXX, Voyant, was variable revenue introduction $XX.X in total, and categories to net two our which million of This

subscription-based quarter. Voyant's the and falls Voyant's on software million training revenue - contributed solution; planning income $X.X line management third revenue second, statement represents other million the Voyant from - wealth This line revenue, sorry income $X.X was our and financial revenue for which other, the First, I'm of consulting statement. the other income into

sight, the AssetMark are welcome excited team awesome to we in As Voyant to the family. the so

combine want of opportunity us. Turning some perspective the to in Slide I front revenue to XX. along

detail in earlier revenue results average each asset rate Voyant's in AssetMark the call discussed total assume $XXX revenue $XX this revenue from trillion. total the of our category. we net in year, As to during quarter a billion is non-asset-based earnings This earns million. And TAM TAM. an to about To asset market TAM, first our is addressable convert perspective the this $X.X about

long this our revenue XX for net walk. has approximately of X% with revenue growth. future TAM year-over-year Slide AssetMark a runway overall details

the asset generated impact was additional revenue. million million up revenue in a the revenue expenses. is adding in reduction in of which year-over-year, Also net our by $X.X growth, increase net shows, asset-based net driven As waterfall $XX.X our to

primarily ongoing agreements this an last realized that restructured with reminder, providers As savings, quarter. driven first we is a by

We million one the fee plan of compression also each mix point $X.X below basis for to due we ordinary This points. approximately basis X.XX realized shift year. is or

Voyant As and category in $X.X previously from volume other well. in as the drove increase discussed, our revenue additional subscription revenue revenue added million

to the points. net total basis from XX because Slide five dependent, million asset-based we and Blaine's year-over-year last Lastly, yield focus trends points yield asset-based shows forward. basis yield to XX net decline discussing not spread-based quarters. yield revenue average XX decreased the over is only moving our Please in $X.X on note, due will asset stop revenue

into points XX.X X.X basis is offset previously X.XX measures taken quarter by we by up basis the year-over-year, asset-based our driven yield was compression, fee late X.X have third basis which we basis 'XX Our expenses, to points reduce have asset-based points points discussed. in

Now on XX. Slide let's discuss as expenses shown

largely factors. it compensation We were million. not increase so year-over-year million, year-over-year does expenses to revenue a XX% driven outpace continue increased increase in to a Operating million is driven manage $XXX.X $X our our expenses based, up by in by $XX.X Total million SG&A. in adjusted The expense and expense XX% to growth. $X.X two increase compensation

quarter. upcoming our First, a we strong increased our incentive our costs sales results note It's that our quarter, strong the to variable important benefit as increased sales it while sales compensation of result this in revenue in quarters. the expense will realize from

members. a over are we events impact Second, this any modest incremental XXX higher Approximately but increase count. and factors, inflationary and is of in reflect in-person including Voyant associated one-third an travel, with not year increase last costs in addition XXXX. expecting team environment, from driven is of does we of fees macro that the added Hence, or largely material perpetual the SG&A of increased a growth about impact XX% volume. by employee employees increase The variety in our current the our from

I run P&L will point out, Before through adjustments, further hopefully clarity our of in do the quarter an I our addition on earnings want which expense adjusted release, this numbers. adjusted our to provide

First, $XX.X We is million here have noncash we of compensation. added serve. total this and be are pretax, the items: to In And back feedback $X.X a of four in course, comprised helpful. gotten third share-based of quarter, will we which million

$X set approximately noncash $X million. quarterly rate fourth million to a million $X and compensation run have the share-based We quarter and in XXXX between be

million be acquisitions. is to of $X.X to second expense, while which recent adjustment The additional sale, million our related can the to $X.X attributed XXXX $X.X amortization expenses million is of

for XXXX amortized the As most modeling purposes, a reminder expense sales year-end. will in be fully of by

Third, million our $X.X OBS. of $X.X reorganization million acquisition and with acquisition-related Voyant expenses, to primarily and primarily lastly, integration. associated related And

let's discuss quarter. Slide earnings to for to Now XX turn our the

margin was EBITDA XX% quarter quarter basis XXXX record year-over-year. million, Third XX%, the up points a year-over-year. up $XX.X EBITDA adjusted was XXX Adjusted for

conditions, business to this ability growth. in our in result the two-third additional is on of as investing management result our margin of while scale future approximately one-third the expense a improvement with favorable still Now focusing year and the macroeconomic

$X.X third income positive second the Our quarter $XX.X was in income. consecutive This to quarter net million marks of reported the of million GAAP XXXX. compared

or net for share. share was adjusted million, per was XX.X the Our quarter income $XX.X on based diluted quarter $X.XX the third This count of third million.

last than tax XX% used year. of Our rate created adjusted effective lower third the efficiencies decrease XXXX. XX.X%, driven This quarter was by quarter third we in the tax was in for

adjusted income For net further the XX. color, walk on Slide please see

quarter balance recorded Turning sheet. third our briefly to

ended our of with line over on and $XX million $XXX million me and you update revolving Let We our little cash in quarter a on cash position. debt the credit. available

generate as Now and the future well balance we our our low ability cash to debt suit us on sheet, the discuss positions cash opportunities. to M&A

XX to Now expectations Slide for turn discuss let's XXXX. and our

raising our than months just to $XXX $XXX representing million are net guidance for our we million, a In a strong quarter. the revenue based third less We full between year, organic growth and few year-over-year in and XX% be on year expect growth. the

expect rate million, $XXX year We fall XX%. EBITDA million for $XXX adjusted between a to growth of the and

will about for year. margin Our basis full adjusted XXX the points EBITDA expand

extremely with in XXXX. growth the great year-over-year We are

let's on discuss our XXXX. turn take early Slide to Now Please XX.

asset with purchase. Our financial model always starts

We growth XXXX. XX-plus expect our organic be percent to in

which grow X.X%, to to expect Assuming XXXX, the growth is about a expect the modest point net by one was now assumes offset Driven between we and growth market asset compression, XX.X% revenue slightly in the momentums This our by teens expectation. we assets of in low XX. XX.X%. be list to regular of strong fee our high basis

the consist SG&A to operating compensation in our high expect teens. expenses, in which of increase We

four we driven year-over-year clarity, increase to by anticipate this the be items. For

volume. due of one-third increase to is about the First,

the full due volume. from XX% increase of Second, to is year about the impact

travel is investments, XX% by the into about is and one-third acquisition. return increased in-person Third, And be to expected driven talent a by specifically products driven finally, and to last events. new

As our a reminder, our outpace not expense revenue growth. disciplined will growth

earnings. we on focused realizing always, revenue growing improved on are and margin As our

I'll adjusted EBITDA With of to basis be the over expansion percent to We concluding our and set points XX-plus for it expect margin remarks. year-over-year, around that, XXX year. for up have Natalie we hand

Natalie Wolfsen

thanks and the today. Gary, call being on everyone you, again Thank for to

to subsequent momentum. of like call a our We operator enter are well upcoming our now today. concludes question conferences This calls. the earnings XXXX and to on at envy prepared forward remarks and the to and strong positioned future lot look I updates with turn answers. to sharing begin back I'd to

Operator

[Operator Instructions] The question James. Patrick Raymond O'Shaughnessy first for is from

You may proceed.

Patrick O'Shaughnessy

marks the So you prepared right never deal characterize on How that now? more you deliberately focused would in your today you are as mentioned M&A before. pipeline

Natalie Wolfsen

much, so Thanks Patrick.

and right pipeline there's across. come that know a are of I'm right high you the but that So pretty deal is this than good opportunities lot for acquisition any now, competition better now, valuations anyone. sure incredibly

As short those to not in also remarks, to to advisers. cases, I very want over market our of the we And to the add sure parts same we my proposition accretive bid We that but the are at are are but have needed disciplined time, acquisitions we value attempting aggressively mentioned buyer. make that our would and term. as attractive medium as a over to we're think to And aggressive in step. win,

Patrick O'Shaughnessy

in this guys of are has hikes starting terms maybe asset Appreciate seems interest interest expect rate at Got like is at the one tunnel - How the to XXXX. now here thinking marks then environment, point? worsened the sensitivity to and two you rate about the it in it. end the or And light increases of market that.

Natalie Wolfsen

Patrick. through one thoughts our can Yes, I'm we've we for to to in what of He and into Thanks details going Gary. much modeled so that off you the XXXX, hand what take question, of terms haven't absolutely. the are our sensitivity. what

Gary Zyla

numbers rate of terms shared we in are with XXXX, assuming the you. no just So we the in outlook for increases interest

will is happen, the spot it view in of later of happen dark Our year. something that if sort the does

cash we nondiscretionary When And offering to most we there that about cash. partake because in. very upside detects be rate excited think it is increase, so as of will our

of so terms And the crediting client increases realize AssetMark the to rates. in an cash a cash. other XX% of generally XX% up, going a more the overall account, of subset split, is like our of In about high-yield end a that XX-XX offer a the rate smaller a XX% client subset will which We overall do accounts, the but cash. lot with maybe those earns or is more,

And partaking rates we X/X, so X/X up. overall, about say when of about go I'd were the

Operator

The with next question is Goldman Bailey Sachs. Ryan from

You proceed. may

Ryan Bailey

what over amount medium-term come And to Slide I how I being the RIA offers sort growth revenue landscape through that you probably revenue would XX fit of us that, if into interplay relative to the opportunities sort RIA think and the end? Is do could opportunities wondering what the IBD and are to walk sort in aspirations relative was both your of - are the think time? and Like between Natalie, potential the of could you're then back you we bill AMI? market you functionality the seeing. competitive to in

Natalie Wolfsen

Yes, absolutely.

you're they're segment, advice I So points growing specifically the segments thing the and I'm is RIA going, most segment, fastest-growing three growing RIA segment. the independent and first the aware are are think the that than quickly. And RIA four of RIA, next faster it's the hybrid Those are of the that hybrid segments. the sure

rule Investors that's changes than Reg been media never demand so before. the and This regulatory advice. driven driven a that's by have and clearly, independent of ever aware And things, a mean, Department I the regulatory by for Labor's of by that's an generated changes need BI. investor adviser fee-based fiduciary of being fiduciary more for with is wide variety

practices are of in higher recurring businesses a addition, independent advisers, and fee-based valued if they much, much and orientation. commission they're more are advisers' In than

use effective a them least, lot run businesses. potential business or channel. then last but for choosing to advisers help that reasons are not in resources channel, the advisers of they many partners to So have And RIA

here for geared our services RIAs portfolios towards We with the AssetMark, the relationships in have they're of it's as them have are we part need need we part for launched a RIAs, And of us making more that to advisers model, our other advisers at so advisers best March. meet own with at. that we AssetMark much trade and important the in to much, for practices, - first the strategy, sure - frequent independent complete to community ability that RIA RIAs. have AssetMark managed more May that solution a manage growth much launched then to And and this we have we the among where of really interactions first much, offering community. of between share so year which build And can Institutional Summit and frequently their

so smaller talked from other a RIAs have and journey to a And scale other at them support that then need level is earlier RIA products an our call. about they looking high that we began relatively products with in you're can And that us of for into small differentiates at RIAs. to can always We're What need investments. the make providers of that we And Institutional. earnings service we we high-priority incredibly help a are to outsourcing that the that AssetMark services size for launch relates We that provide have on. But a sure that's and grow and sizes. solutions journey that the compete.

typically the relative provide look and custodians, have level level at ask When you broker-dealers any custodians service much office We're same the the at us to completely our those solutions AssetMark. home at to of way. to same their some offering RIAs We use in for support look them minimums you affiliated our of the open And we platforms. higher with the proprietary way would architecture. are so RIA, or don't in when using much, advisers

we but advisers benefit our clients. are also are Last independent completely from being least, from not very us. They open architecture. So our

clearly market, so And us fight them in the compare they And ownership serve position RIAs. every day. aggregators those level to the at the highest have single in an we you to

so join have to those capital to decision about And own they make their already firms. a structure

the how the largest that's three differentiate So ourselves market. we competitors from in

Ryan Bailey

to for That providing via Follow-up going that incredibly Does going income on about this quarter. non-crossing helpful for year net XQ? I'm how for 'XX the coming for guidance imply was Gary. the be relative from of that Voyant? once for EBITDA growth the much with year-over-year again full context. can down to are help revenues maybe XQ be 'XX, and is of us think you EBITDA then to and And

Gary Zyla

Sure.

it the prior guess the in from revenue I fourth we So fourth quarter. In be yes, is it absolutely, first revenues will do you're up of question, reading in investing as quarter, believe should. are correctly. we more quarters falling But

we fourth But as anticipate key time into heading initiatives of significant have make XXXX. investments we want As make some compensation spend. quarter come costs through we to off we the our we those as well in year, product right on want because the held our in some we investments. make to investments measuring sure It's to that are again

we're see all you year expect have that should - with while you satisfied that showed we total targeted what we're that. year why So number - is next we are quarter long, the

we focused We are on quarter-to-quarter, long. this generating or are, XXX confident the I in - right way, say are is But we we're the margin it basis in providing expansion points year-over-year. that year-over-year

Natalie Wolfsen

something to said I add is may what is, Gary I to think, want in as Ryan, just AssetMark advance. builds you which this recall, Natalie. there,

what progresses, year-end. be And the at about will get certain more revenue as total year the so and more we

can year discipline, reason of is And that as our we our certainty after so rises. margins part year the expand we our invest more

the up. later go always for year investments our should expect And so in growth in you to future

Gary Zyla

forgot I may My Ryan. what you apologies. if XXXX, - asked Ryan, you about

Ryan Bailey

revenue Yes. I just Voyant. EBITDA contributions and talking, was from

what from of is Sort increase like that? we're percentage getting roughly

Gary Zyla

Right, right.

to the percent them numbers So head, the increases. have my Voyant translate trying to I in I'm

the do So head, real math say in of top you the know but don't let come how I have off affects I quick the the my XXX% on and it Ryan, me I'll percent - and numbers to head. that, do would increase I my back because

Operator

The next with Gerry from is question Jefferies. O'Hara

proceed. may You

Gerry O'Hara

think I be bit investment kind the out increased provide, perhaps hoping a be able additional either you made any to that'd be references you to and thematically talk and flush product context that helpful. a I of little if new initiatives. there's around couple able might to was of you've about it or might

Natalie Wolfsen

Yes, question. much Thanks the absolutely. so for

investments categories clearly, mean initiatives new strategy. five I the So the of our in in our elements growth fall of

channels in. So we we're already channels we to going new that where new in And that, they it the and to as advisers investing do be relates services are, add need exploring we're offer. channels, that in deepening penetration the meeting to to to our

our RIA adviser adding our types, I'm et managed add managed cetera. add offering, we - to want to security with example, offering make portfolio AssetMark our new we capabilities, sure For that sorry,

serve and wallet to areas. we're sorry, delivering expanding it to As saving a adviser future is differentiated enabling experience, priority include our relates effectiveness then to holistic to portal, time, for share investors, make to - investors it enabling relates eWealthManager, we high the and and advisers' our in deeply investor financial advisers And we're wellness more investing a great experience delivering their as serve offering are of of sure that which increasing investors.

outsourcing, about outsourcing, investing expanding be administrative past, in investing We'll various. on So customized areas accounts. expand advisers their our the the indexing, it transition solutions in it in helping marketing relates tax we'll scale high-growth grow we've that market more we're outsourced businesses. into managed SRI, direct the outsourcing, expand the solutions, whether We're separately as talked and into services more in to

those of So key us. the investment for are areas

Gerry O'Hara

helpful. And then for Gary. perhaps Okay. That's one

in the through to are? remind see taking you've able we asset-based that expenses the And what be I next - been Can of reduce prepared could you guidance? year's think sort us sort how to what of - mentioned might you steps remarks. on flow

Gary Zyla

Sure.

So asset-based universal pay I discussed what - asset-based little we last our discussed we fee strategists, bit providers universal mean, as they're have - we well. expenses, a providers, We we that broker-dealers, whether quarter this a through.

we and which into growing, But continue and cetera. et details were So not I scale, great get points won't to as that through renegotiated. process, contracts, contracts, of find keep what we

into that basis Natalie. last you on place yes, could modeling forward. reset quarter went that And so changes points will assets. the And And use probably our

Natalie Wolfsen

you're was the Voyant want to to going give you might Ryan. I when to just say numbers finished,

Gary Zyla

okay. it's very unknown. It's I'm Sorry,

question there So answer asset-based that the terms did in of that expenses?

Gerry O'Hara

Yes, that's helpful.

Gary Zyla

both there I It's the the and I'm growth three And between next year. number revenue year that did both EBITDA EBITDA, worries. the to Ryan's - to we contribution are and Voyant's about showing revenue full are due points four of question, growth the No to math. XXXX, sorry, for

Operator

with next The is from question Michael Young Truist.

proceed. may You

Michael Young

pretty up from the to I'm down and and just into going of market tougher on off kind for a any there's as looks performance headed that further contribution comps on numbers follow XXXX strong see ways Voyant be the because other Appreciate well. it strong XXXX of to kind year-over-year of to if just growth break coming XXXX.

initiative? more So of a Or just any expect sizable about trying think from in sort more new that XXXX? we of should contributions, - XXXX is the to initiative a particular, in contribution PEP

Natalie Wolfsen

Yes.

the the to very that innings relates in it early as pooled offer. employer are of plans, So we

while who the a then as So Australia. because we're inside use who growth of then earliest. U.S. that Voyant the wouldn't XXXX use Canada be balance and And with beginnings broker-dealers Voyant early independent relationships and the of advisers and form, either U.S. with growth relates RIAs, in of market, a affiliated in then AssetMark growth been has growth, helping happy material in at in growth has U.K., the it we're it enterprise the independent really the And that expect broker-dealer market, AssetMark the outside AssetMark who their U.S. relationship. the to until growth, pleased outside to I the really we're Voyant

a team. advisers new clients growing producing those decision environment we've wholesale to workforce in Voyant while incredibly how AssetMark in Voyant. new growth been inside balance continue with outside other to to the the U.S. Obviously, We'll successful we a that be AssetMark, which excited as with make who relates been just Institutional, and for to investing for are make and then road, remote as looking are really U.S. in growth we're the related thing we've of be effective monitor mentioned and sure that growth needed We're team while in and to really, meeting advisers scale about use experience of And the we any that to possibly to be growth is we've that. other platform our in of important. also investing partner can more producing and business expanded excited as help the a a face-to-face lot it So about new that And as sources to And we platform, we're to XXXX. and XXXX. part it getting returning

excited areas we're are these that in very - so XXXX And growth about. other some that

Michael Young

look those mentioned or affect off And how upside could the cetera. additional of about interest thoughts to on there's Just then Or year? as upgrades the platform some start et manage was you like from Okay. some other think technology we year, as continued of to tailwind and quarter, good drop Great. spent Should opportunities a general that stronger improvements line? year. being We're potential kind would to bottom market XXXX, already of of kind on this next kind next performance. which just we throughout earlier, rates would

Natalie Wolfsen

Yes.

So thoughts, at specifics. quarter, in I'll we bill then some advance, to it to to look some with add when general Gary every do we start I'll both. and opportunities But leave

underway opportunity to our growth. our appropriate we'd opportunities that's revenue M&A. like bottom feel feel an sale, to capital we drop also or the investment So add provide margins more future at investments more future to accelerate infrastructure, future in like the opportunities there's so and like line, to expand look for invest we for to we'd to to improved to it's or we already if an our mix, invest for If

where make you revenue And any That's very expanding should term of next while disciplined I every margins we're add? we're year. quarter, over also we long about every having growing know So don't sure how dollar might conversations medium Gary, specifics there's if part that go. the we're and

Gary Zyla

Michael, Right. I let then, you know. would

which market, from Natalie our profile, see we help tailwinds right, revenue the As is right.

As XXXX. a business, we're making that decision in regularly

there's to some enormously But bottom some increased make we'll XX-XX fall but I margins Our something. take line, of we know some in that don't on the invest and take the on we the bottom way, fall in decision going going line shape let to the that a to let some did we're future. because the - of invest. or the to exactly but opportunity when we tailwinds that we're

interest the or be so And as well of the in invested upside rates effort. help improve market as our earnings will both

Michael Young

sneak could if one the last on front. in follow-up I M&A And just

lot of with out TAMs, new new a rolling markets opportunities. into lot You're a new of

there in So the terms think expansion of kind are strategic kind pursuing? terms kind as M&As guys should Or that you past? dollars of color other spent about direction the of we M&A consolidation of in of product and any bias opportunities in have been M&A towards versus just opportunities of

Natalie Wolfsen

And really serve past. are there either our a us outsource services end about to more M&A both a need have more evolving a as sure time. we that, that like feel allow more make We're partners result, result, forward building to really never also us scale we term. allow their that X-pronged invest you they you That's for and in both, and long to platform to support right allows need. little the in clients really, strategy. more these us the M&A, than new scale ever - and Capabilities delivery now, we on they capabilities. products to in and we pull because advisers us acquisitions invest a relationships that then deliver we our strongly either I from know, needed But invest In essential is scale. allows And capabilities. of adviser over And both. potentially because expanding clients to our both Yes. to give focused as have it in good we the more which our over client like question. mean, to love And and

Operator

from We Raymond James. follow-up have question a Patrick with O'Shaughnessy

may proceed. You

Patrick O'Shaughnessy

I Sorry that. about on was mute.

healthy, your So engaged versus flows do still the your of your period? make I'm figure little advisers past adding slowest net X. strong advisers quarter the the engaged quarter, we in I but think, out of we bit really XX, in in trying was which to terms over quarter slower saw reasonably growth was that in what is the it new a

Gary Zyla

Yes. edges, was certainly growth It's engaged that the was down headwind in total interesting and the as And it's talent. but that so just market quarter, right? quarter. little into a but of observation. the Honestly, has in in terms play on market the cause for does the market the edges, a adviser number, part of On come down the does

we quarter we periods term generally at think because the So that. I look longer like look can't

I and get when over XXX And a better think to going about we talk so on X, divide that way, quarters, something or say in you XXX XX average, the that four effect. the year-over-year to to a somewhere that's by quarter you're

the in that I of really so will are our we view right? And making then a by strong think how that's before, look net is supported Patrick. are engaged flows progress we lot And it, fact really at that advisers.

Operator

There additional are no at time. this waiting questions

for conference pass over the will I closing Natalie to So remarks.

Natalie Wolfsen

to or talking us we about today. more taking you appreciate look much We January so really I February, joining you to learn and AssetMark, again guess. you in for to Thank time the forward

Operator

quarter earnings AssetMark's concludes XXXX for third you your Good bye. call. That participation. Thank the conference

disconnect may lines. your You

AssetMark Financial (AMK) 14 Nov 212021 Q3 Earnings call transcript