Earnings call transcript Q3 2022

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to Enfusion’s Third Quarter 2022 Earnings Conference Call. At this time all lines have been placed on mute to prevent any background noise. [Operator Instructions] As a reminder, this conference call is being recorded.

to Investor call Relations like Njoku, to now of Head to would turn over the Ignatius I begin.

Ignatius Njoku

Thank you.

from Before statements. are to may and section and as we any forward-looking remind you the our today, filings set forward-looking Investor Relations are those that like begin, except we forth following SEC website. differ law. Actual does These only results today’s uncertainties, today’s by make in obligation in to company statements the including contain materially speak These to subject any forward-looking or statements forward-looking numerous of may risks available with and the today. call, I’d assume update required our statements not call as intent them in

non-GAAP nearest call GAAP These be measure as as today’s be considered and include company’s the the supplement for found a is today’s substitute press addition, website. to should GAAP may a Reconciliation release, measures to which not earnings available can on in measures. measures. financial In

call are Oleg Enfusion’s Executive Dorton, Steve today’s Financial Interim Enfusion’s Officer. and Chief Officer; Chief Movchan, Hosting

that, to I’d call the to to With begin. turn Oleg over like

Oleg Movchan

have XXXX Enfusion. us the be my lead Good you thank all third for received confidence the company’s delighted to here as role of Board I’m I’m to afternoon, to discuss and our joining quarter honored speaking with and in the results. to today you CEO, Interim

team been employees me more clients utmost management engaging years. of town in-person years. business, on the our we’ll company also myself. on my the more industry. meetings. I’m confidence that than and gives continue our Board worked me depth introduce investor for to for XX with talent the appreciate and CEO, the as Enfusion changing operations Interim Since multiple on in time day-to-day have the deliver First, experience halls, founding I’ve That the capacities XX in of investment virtual the of I’ve spend Enfusion’s appointment Enfusion’s with let focused in and strength for pool over innovation talent a been and I I the and more the that rapidly with

first enhancing and a transform with back cost ago, introduced Since was operational clients industry technology our the the vision the company’s a decade moment. Enfusion, determination of cloud-native product-driven generating to this over ultimate I vision to investment time of always have reduction ability would has The unwavering. Stepping our to The been outcome and effectiveness management for inefficiencies, achieve and vision this alpha. process transformation the be investment focus on and service. to for been

serves client and service our footprint customer in Currently, the focused technology segment. top-notch is our managed support clients critical as and strategy way asset expand of components experience institutional experience a on we’re our overall Enfusion services. foundational onboarding, implementation, management building the to to Excellent across our

quality and our on from continues Enfusion differentiate to focus Our support services competitors.

Board you capabilities. leadership Board’s backgrounds recruit as has next permanent is currently terrific retained and an number priority reviewing top know, currently high-caliber Enfusion’s on The I’m executive is candidates with CEO and to The CEO. Interim As strong firm the an of search serving a basis.

leadership foundation focus on skills search of with excellence with the Board for continues, businesses, in SaaS a services. CEO looking scaling client the delivering As a deep superior is strong high-growth and product experience as

holds. will records its executive company in lead of talent that the execution convinced the what will of excited stage by that towards opportunity us brand, tremendous We’re and attract evolution. our the growth of strength next front future I’m the high-caliber extremely

expanding upmarket, moving against unlocking We’re our new footprint. and of adjacencies global executing our strategy

the maintaining profitability. healthy momentum while continue growth, top-line have to We strong generating

transformation. managers continue our you seen, investment results quarter this As cloud-based demonstrate digital embrace that have the to

to continue software position and and we as the service the disjointed our with result, offering. extend superior replaces a industry legacy our leadership systems outdated As

to turn results. let’s quarter third Now,

another strong Adjusted including continued was execution maintain XX.X%. margin of products to our for grew CEO pleased and are quarter efforts which a demand We million, as EBITDA XX% report our transition $X.X of $XX.X to services. to represents momentum. costs $XXX,XXX, million, reflecting Revenue

execution is healthy of third services. Including all involuntary which dollar the adoption was churn, we and retention $XXX.X net managed product our of XXX.X%. by During NDR quarter, represents growth strong across The growth durability generated driven of year-over-year. our reflected ARR XX% million, in capabilities This business client XXX.X%. the was sales ongoing and

and and dollar resilient durable ARR structure strong underscore financial healthy the Enfusion’s Our of retention profile. growth net

strength clients signed investment In larger of deal of fund material managers manager seven-figure by quarter XXX new Despite quarter. new We penetrated we ongoing asset another conversions. signed as further clients. institutional eight were the which of total a addition, quarter. market institutional in with in made large accounted XX% we managers, progress which it, we wins new the in conversions, volatility signing the with the XX and this for ending see perhaps half quarter, We because of market client the

disparate public commodities. wide office manual and systems capabilities cumbersome replace middle wins a I’m York-based private discuss of vendor In variety and in was resulted asset equity, sales to processes. that front, consistent solutions, income, office a continued manager office. strategies we Americas, New let our all of that well-known in year-over-year, momentum. seeking and XX% and deal to The family credit, demonstrate Now, combination me of family multi-billion-dollar across fund another invest the by several back health its new excited and fixed in adoption that currencies which latest with revenue legacy classes, signed a The products. seven-figure again and broad driven client our grew complex announce including

significantly and A proposition selecting operational streamlined testing efficiencies. yet again client to workflows, our core reduced by risks, Enfusion, increased the value

family as resources. able internal meaningfully well to better result, as overhead on a the burden As the office their reduce lessen is costs,

validates it our of our product does demonstrate clients, more only Not ability the to partnership. but strength and larger offering. this with pleased extremely win We’re also complex

our announce double-digit to year-over-year won workflows. obsolete middle grew cloud-based takeaway, pieced revenue I’m selected disparate integrated growth. private EMEA, strategies, had and in in on multiple the portfolio from order which end-to-end solution, In In including this are Enfusion public including was system, fully back-office with management management because and system. family the analytics system, a front, of equity, credit data technology, solutions streamline competitive technology its ability the They together record and vendor quarter. pleased an level homegrown employs and execution client’s We our and replacing bookings multi-billion-dollar office. London-based and Enfusion XX% has that strong equities. client region This the to quarter for this

investment the cost drastically reallocate while creating of a an reduced As result, manager investment to towards the the opportunity resources process. total ownership,

APAC. the replace into that to to Alternative by Manager. an grew turning a old see technology with we productivity technology XX-year mobile lower compliance with supports XX% features Now Investment provider as the continue year-over-year the agreement investment to cost. announce its we healthy demand seeking that more improves entered a We new manager Hong materially and like requirements cloud-based platform revenue considerably I’m excited reduces delivery. with functionality, region. The adds footprint in robust significantly in Kong-based partnering Enfusion, to at was the By manager

global calculations that processing, example NAV our global win client Apex of and actions represents Apex utilize shadow Enfusion I’m revenue fund our position beyond Group base. diversification administration strategy. selected core expansion trade corporate another middle and to segments to cash affirmation, for Finally, thrilled continued Enfusion’s its and Group This services exemplifies deliver will market reporting. office Enfusion reconciliation,

our We’re of align their share Apex to global growth. serve forward excited to and with look to clients

Turning XXX portfolio system enhancements We product features technology. and and out more management rolled OEMS. to than for and our

own analytics allows scale. expanding open-end This clients us to capabilities. data our leverage stack customization proprietary integration Enfusion and gives the and platform Our flexibility focus framework architecture and drive technology ongoing develop on and to our and API-driven efficiencies their

this the transactions. quarter actions of and securities improvements support our for include API support to enhancement listed to compliance OTC corporate technology enhancements to and OEMS reporting, Notable

bagging new for which We have a into also launched helps tickets. feature column order OEMS,

of in and our and matter to on our us situations will maintain success prospects. from key our forward. as remain allows of us a expand depth Enfusion fast to platform, our upgrades, competitive pace apart where our capabilities to development system focused competitive remains competition. sets of well product as breadth technology The Innovation pillar moats. and going our differentiated win continue We’ll edge sustaining edge competitive such and

inflation on macroeconomic its and briefly precipitous Now equity investment rising geopolitical let comment fixed again industry and models. causing uncertainty both reexamine processes simultaneous yet in and the and the market are markets, business income me to and dynamics. The decline

standards. remains launches, in we the number of a by decrease Although hedge moderate fund historical see fund closures hedge

continue to we result integrated focus strength transformation away to this resilient we and expect believe conversions persist, we is digital uncertain cloud-native, as While of business as our outdated to from in environment industry legacy systems and shift solutions. a see

have we this fact, several during times play Enfusion’s In seen out history. environment

AMs tend and delivery quo a for stacks. the set technology infrastructure. technology Such and becomes the cost more question broad challenging, come historically managers Enfusion As setups status to investment go-to-partner, opportunity unstable performance down effectiveness expensive of the as displace presented an

certain alternative within squarely adjacent asset addressable core to tend over our segments. investment allocators passive in emphasize market environments, falls Additionally, exposures, market in which such and strategies

opportunities in healthy similar we pipeline Our to supports growth what saw past. conversion the

shift we proposition value revenue more expect we clients, to mix and to our and conversions. towards improve As larger win continue our complex

Finally, XXX our one Enfusion Insight, in as Top to leading technology is I’m testament software IDC’s standard. It’s once happy Enfusion increasingly within industry the financial provider again recognized included industry. list. Financial FinTech the was

ongoing services. line broad quarter results, conclusion, all third driven adoption across sales we by managed bottom and products solid In momentum, delivered strong and

business Our the growth durability strength profitability to ability an and with execution. and speaks to consistency revenue profile of of high attractive our deliver strategy

hard thank I’d employees our brand. and end, that for their all like passion dedication to work, our of for To

thank mission-critical sensitive Enfusion is and once trust executing at on that I’d token, outcomes our By same operational laser-focused Our level. the capabilities. team clients to most the for their demonstrated our again with like highest and for their clients delivering

the to our to will I call turn Steve over discuss now financials.

Steve Dorton

us you Thanks everyone, for Oleg, and joining thank today.

the with in performance quarter. third We our are happy

We product lines growth broad see the customer revenue reinforces continue to we and segments. opportunity across across see adoption our continue to business. in This

performance. lines total revenue year-over-year third Recurring up financial of increase the generated of progress delivered to made XX% million, revenue a good XX% quarter, We In $XX.X an was product $XX.X year-over-year. solid across all and million. we

or was year-over-year million. to ago Third from annual the revenue $XXX.X recurring up XX% period year quarter ARR

total the Net clients. in We retention, dollar signed to XXX XXX.X% sequential churn year was churn XX by compared XXX% in comparables. net the retention, was in Net quarter dollar year ending The to compared quarter, the challenging was new period. period. ago the third XXX.X% driven logos retention ago decline involuntary involuntary dollar year XXX.X% excluding prior including in with

profit gross by quarter $XX.X $XX $XXX,XXX compared to the stock-based ago year in which year-over-year to profit Third includes compensation in increased gross period. XX% of million, million

Third operations period. $X.X compared year ago quarter year quarter the gross Income in $X.X compared in million ago compensation to for margin was including was XX.X%, period. to the XX.X% from third the stock-based million

quarter and $XXX,XXX CEO quarter. from includes $XXX,XXX of in income costs compensation the stock-based in Third operations transition

EBITDA XX.X%. $X.X This year to quarter third period. in in EBITDA the Adjusted represents compared million the of ago million adjusted was $X.X margin

was business. expense expectations, grow efficiencies. continue EBITDA above cost remain our structure management of and adjusted We quarter Third management prudent cost as committed by driven we our to our to

cash with income includes for in quarter million, stock-based quarter. ago compared $XX.X the cash which year million compensation was of $X.X as ended million to net We $X.X in third equivalents. the GAAP quarter and the $XXX,XXX

to As in XXXX, a award will XX.X additional non-executive in or approximately units million issued former discussed more shares and tranches. be shares Including one we of to of employee. holders October previous a shares, million total filings, prior approximately these X.X XX, distributed in October,

turn let’s Finally, fourth quarter. for to the outlook

on comment our briefly guidance. QX me Let updated

and Given of approach client are reductions behavior. an launches greater we hedge in in macroeconomic volatility fund operating market we driven and are a seeing in some purchasing that uncertainty, by measured environment more geopolitical

adjusted we on expectations. of As the EBITDA year such, and outlook. business are XXXX full are trends, range we Based taking fourth quarter our approach current a our narrowing to prudent more revenue

we to of million, represents of representing $XX.X at revenue anticipate We of in adjusted expect $X growth margin the million to to midpoint. XX% range the For range midpoint. million EBITDA adjusted $XX.X $X.X the EBITDA million, to be fourth an XX.X% quarter, the be at which in the

range year the full expect to growth to of million, XXXX, XX% the midpoint. For million $XXX.X represents the in $XXX.X we which be revenue at

be representing to EBITDA of $XX.X adjusted an million, range million at the expect EBITDA We in $XX.X adjusted of margin midpoint. the XX.X% to

quarter. For modeling for CEO transition of purposes, we expense $XXX,XXX the expect fourth

the for We million $X.X quarter. also expect of stock-based fourth compensation

investment for encourages what to infrastructure. the past. conversions, Despite This similar market increased in opportunity we have their legacy reexamine managers challenging Enfusion environment, cost the volatility the seen to a of technology creates effectiveness broad

carefully possible model to and We projections. business economic long-term future of continue current understand and monitor our conditions to impact the

To market volatility. performance our fundamentals business summarize, we third The remains are business model of in very our pleased durable despite and with strong, our the business is quarter.

We platform, the manager have built and a cloud-based we investment growth continue leading generating momentum end-to-end to and profitability. high have

up like please the With call questions. go open to Operator, ahead. that, we’d to

Operator

first question Suisse. Kevin Our is from McVeigh now comes Instructions] Kevin open. with Credit your [Operator line

Kevin McVeigh

Great. Thank you different I the past? time wanted like could. there want just is of congratulations way would a to environment context – get that, and what wanted good if most around think to in start so gave I of try to you really parallel seeing kind to be the about much any cycles, start, some the sense you the kind results. really, on period that. we on the things do to of I what in, we’re

Oleg Movchan

would screeching essentially and realize say, it then or crisis, month for periods it halt, the I’d basically a of through XXXX, process by then around which, so situation I couple a quarter quickly way that Sure. XXXX, the of when XXXX, our a restarted kind to hiring global XXXX XXXX, Enfusion we COVID came entire GFC, existed, out, – compare again. which a mistake, to broke was So we COVID, sort all and that like financial a post to right? probably of froze

happens is typically probably in start either you well. hung as committed their people follow XXXX, had don’t LP commitment capital, commitments it course, world, the launches, because XXXX, of they was in through private the course, what happens kind And tapping equity investors withdraw of hedge is, where brakes, of remember especially similar and so simply acute, stuff stall on as

slower different $X billion the more alive, stay I costs. forward type optimize both larger, happened hedge with to just typically complex but of clients, no is, They clients not us, launches, to anything run what going typically enterprise their in in past despite reason and And that have expect sort funds plus look general, the AUM.

in. where thing do is of – see And cut look So the and they is come they immediately their first to we streamline kind around can operations. they costs this and where

able the things and relatively the proposition, occurred, the reposition way, burden. convex value even their that downside well, the – demonstrate in systems, the a to as our allow expenses we has the people company our of workforce sort pass to right? for business that been To a the replace management investor all total not So this workflows to investment disjointed when like recently we extent the was were big to could until fund streamline and really through

gaps. complex larger, land, revenue they functional is clients, thing to to same what’s conversions, is align our to overall guess, the to except, us that for seeing once much you startups, to we’re a will downside bit way, more we’re that of done, kind to for is – if partnering to which think launches this are more go. hedge in shift so organizations, fund And away But good this be business, a what from, will. protection to additional provide finding right, assess, with, heavily proportion a longer of towards identify take tilted So, again, with I now mature we different more the typically all

Kevin McVeigh

one to drove quick QX. the total guess if were versus That’s follow-up, that XX% super, quarter the helpful. It I of And looks delta? super then understand just bookings XX% OEM what like in trying could. I in

Steve Dorton

it’s are clients signing types actually line of quarter-to-quarter with the in quarter. as So and have that the that in from we clients that more the bookings, is typically

clients, of thirds clients platform so all overall, approximately are utilizing And our two OEMS our of our attribute.

those that look so on basis. as And new at we It quarter-over-quarter joining. clients don’t a really just are occurs

Oleg Movchan

in kind such. is a and and we it focus. must would as utilization do a is OEMS implement investors. see of I it’s and sign the echo institutional Yes, EMS the of to of our capabilities OEMS our that. sort – we That’s manner And in – proof by both ultimate ability way consider prevalent the time-efficient Kevin, a in pudding,

And but terms as fashion. in down, be definitely the will you so piecemeal We don’t a the platform is know, of maybe – we trend do typically in position up OEMS it up, subscriptions. overall

integrate them. just once portfolio don’t land of management OEMS we need time, we of OEMS inevitable management we we sell chain, our in okay. with then or third-party and value do of almost is why it’s our just sell like solutions, So, or And sell we side that back we don’t portfolio and have revert at of of functionality the other the that kind system, palter market when to which sometimes almost system for although clients on one themselves of partner and sort they and which they ask some the OEMS. time, to question, use Over all all kind

and look my of So operates makes if than the mind, important of how that sort conversions, for more us business just in yes, at the dynamics OEMS that’s to nowadays, importantly sense. bookings bookings it’s but

Kevin McVeigh

Certainly. helpful. so Thank you much. Very

Operator

Thank you.

Our with is now your comes Goldman Gabriela Sachs. open. next from question Gabriela Borges line

Unidentified Analyst

on Kelly quarter [indiscernible] question. for Hi taking thanks the this Gabriela. for my and is Congrats on

we’ve pretty durability market. of fund the the impressed been hedge with So far,

any other of of size about hedge talked noticeable fund weakness or launches. either are fund You fund? lower type the or pockets But there strength by of

Oleg Movchan

yes, tend months stable, to is we’ve capital what platform. to multi-manager in investors more say, much people to seen call the allocate six would to what that I last tend three – much

what holistic investment the them are our on of in to view risk-taking they management kind units, favorite as each a portfolio which multiple, And clients, need they risk our of would call, ours, to management plays the Some platform P&L, as risk entire the clients when top I of teams entire portfolio are platform. on the and has strength P&L so well have unit. then managers, of

what business see and the model that’s so I the And [indiscernible]. of

all I find system the like LEGO will, sort we think you all players way capital, is our these then it’s and can and this where where leave capability down. if can that enterprise clients we each as stand-alone really over of because know typically scale business, most Millennium become large but opportunities feeds and well, way. the time, the expand, some successful on have we And of teams service have other a expands to with grow service and entire typically if and we the business basis, both up that you unit down then an entire teams

Radian And the I or know own, where say, a portfolio capital reason perspective, source from manager others, to platforms decides source, go launches source another another. is launches list, launch. source some on their another that that’s and larger successful would the that’s interesting for and of and Elliot He you one other like of – that a becomes of

Unidentified Analyst

Thank helpful. Great. was you. super That

is follow-up. And one of is initial Enfusion momentum the initial does expectations? this Express efficiency at the then Just sales been same to as that lower the rest more product How traction end of the product? the relative just compared business? market your to of how And the of how then the in with vein, kind

Oleg Movchan

the Great. question. Thank you for

it’s too conclusions. kind draw we’re I So still Express. feel early any of evaluating to

full it capture shouldn’t for be functionality system of benefits looking to ability think can I that be did and that sort just shouldn’t into ability for down short, one right? do and customer, little functionality. so – I systems deep selling desire is "lower is I of doing, the the we is, the market" that providing respond to the think that reaction our the really doesn’t strip product what What that of a kind when we the dive

for hand then what distribution target do one related well. the with kind both the can becomes make and as balance so partners feasible economically work market we partners So our us of and commercially commitments distribution that Enfusion becomes for support that makes to how sense on the

next is here type. make once quarter you we’ll cannot you, I we this things out. progress, it a hopefully, sit and figured all face so update in work still later a and And dial in in straight It’s tell and

Unidentified Analyst

the you Thank Great. congrats for details again. and

Oleg Movchan

Sure.

Operator

Thank you.

comes Our from your James, with question Faucette next Morgan James Stanley. open. is line now

James Faucette

Thanks very much.

Can this I pause first sequential think of the And trajectory you few Is a of to? on percentage and quarter? – you’re the forward? sales conversion of conversions the kind that you do how in kind directional think color like? a questions maybe cycle’s on in bookings as What about in deceleration percentage look alluding now. let a question way. to this right bookings guess me should give we ask Just going as any bookings that just we of going saw

Steve Dorton

and to and to new forward. continue our that bookings or majority We we has started going in conversions really XXXX XXXX of continue see and see a in that

we’ve to is a one so resilient And moved client.

still working as launches add with are the on, We and we more of But the conversions and platform seeing taking clients. on come are conversions opportunity seeing continuing new are more and they at to on we’re that attributes itself.

adding on continues so that new a we’re And clients of vast majority be quarter-over-quarter. our to

James Faucette

in Got that our ARPU about like separately, growth that what we least ARPU of particular kind a of additions. logo it. the offset of it should And and helped growth How of growth from at driving rate is forward logo ARPU kind think slower change? then new mix versus to calculations looks

Oleg Movchan

needs, functionality that and a product, bookings fit of bookings define everything fit I We being in to the bookings now sure keeping of paradigm clients the what return But is to value establish can I’m and ourselves lower of with do seeing. has generate and terms can not to to product equal, general to clients respond company each probably what it ability of in fact in to layer focus. upfront value-added much the we better else bookings terms actually understanding, increasingly from of number our think it’s in which right. to prefer terms strategic quality try trying their I I I from while say this probably would the Enfusion’s tactical services – hours it’s prefer that lower right potential at make their the way really the we’re means. both themselves how of capabilities from spend sort in needs number by on – necessarily provide would that I perspective And equity, given they of of perspective, how client like deliver perspective, and right. would if means is right high to

glove The larger institutional call increasingly clients, liquid complex and and both more wide level, just really can what want return it, pertinent they support to product call right. they’re management support not especially in typically well, in but of client traditional nuts. the know have type dedicated They that long-only want, that teams ongoing they investment and people and absolute They timely, clients, our provide capabilities passive expert continuous and a them sort software, XX/X alts or soup multi-strategy thoughtful that really flexible businesses. know

combination perfect time why And of services sure client and combination sort with are to take product is so to perfect what that’s we that the this all those targeted conversions. make about is and conversions we that of we ultimately the

large kind a which But institutional as those how is Enfusion, that service. SaaS to software being and And really what and a as is sort is trying so experiencing selling and we’re way, us that’s term clients a are of labeled software in use which are service, where company, right. we at a of

win to us actually And understanding, what’s is conversions. so those that paradigm helping that

James Faucette

Appreciate Thanks. it Oleg.

Operator

you. Thank

is Parker, question line open. comes with Lane your from next Our now Parker Stifel.

Matthew Kikkert

welcome, Parker. Thanks lot my team. Matthew Oleg, for a for Kikkert Hi, on this questions to is the taking and

over since efficiency of of First, lead as to are changes you Do the that motion what your in those of might team an joined think increase has CEO? some any the made go-to-market time? you

Oleg Movchan

biggest so. I in made, rink I I a hockey a was after and going goalie our step had a stop understand not change my which Yes, I really hope a warm-up I kind being, kind priority would had would improve to top call during top of The to priority is tactically the to chance chance that client really breathe strategically, services on. what’s experience. realized of quickly up but and tactically what

we’ve So redesigned and from key from done We APAC is to townhall a globally. that in and We with what did way from the a isolation, the entire by okay dive had right. input it just we deep really workflow, our stakeholders had all very we not from extent EMEA, U.S.

believe deficiencies a strongly input, state-of-the-art we that addresses a and traditional synthesized client and hand that really services when We it believe resulted just they we believe sale Enfusion and to that it I sales previously, and really we had process and architecture they design it revolving engineers close Enfusion what that solution, aggregated around in product. implementation solution onboard which over

once And then from understanding don’t there management. is then there, that over, new technical people have client implementation requirements deep account then and nuanced necessarily a And to from clients’ are. show up, the what of is handed over

lost. process, And of client-specific lot is so a during knowledge this

and going is the engineering them is in done to involved exactly management upfront are onboarding to onboard the and time. at going in in process structure where really client we same knows process very is The we’ve what is technical team the implement product is process. the them, there handover that involved so no where a created account solution and sales way early And team precisely that the

client live, key is forward. by onboarding a So same the team to the time account going continue in that going client role support that to is the technical played

exist time. eliminated one happen we real journey essentially like to that client when of stage client’s course things in is these in live gaps So and last the very stage from handoffs

I now account clients. the very and under manner, them team management talented their is effective a and to thoughtful timely really said that and manner responding feet have We to, technical getting timely like in back a

over mind as make accentuate we, my this us Enfusion’s next for to grow, return about we the we can inception the services externally to will a is the and that’s accentuate of on And best-in-class equity because product product, that that from the was centerpiece we the is product-centric, Enfusion make driven, the right. was shareholders. heart for so top investments platform. in then the possibly can From perspective And organization, technology viewed my as and brain priority strategic have a we priority as to possibly technology all and client perspective, going of And as highest and whatever we’ll product that the sure okay. much it’s we the XX-months, is we are since tactically. is, internally generate

I’m really that those we hundreds processing rules. managers But that capabilities. with and know position certain prepare anticipating have currently schemes, also product very robust, so resilient perspective, current not we and see about that from need scalable things more investment start need today, hundreds thousands clients. we things with And and technology of talking with compliance with flexible fill of functional sophisticated that compliance manage will that funds and and some cement It’s gaps in logic just supporting at our investor, to the kind that system we upmarket. And with institutional the accounts example, allocation. are there. execution of is our of of model are for management portfolios, allocation the And during management more that we of more day, can and so can slew become a of end the order order those examples technical like day, trade mill nuance process start There the strategic innovating to also clients and the

Matthew Kikkert

leaner managed And to macroeconomic if does they’re to you’ve going trying forward? seen the very traction that the Got services tighter in adopt uptick your strategy it. any like in managed look if conditions. does curious you. I’m clients maybe good. run Thank where What for fit into wake potentially wanting That’s of services, and then secondly,

Oleg Movchan

can much ago, now. have of But digits think Steve in cognizant quarters Steve about single being three overall is return support I concept it is can that the on will unfortunately the and numbers. But of whole is about back bringing like the It I’m What which again clients possible us they’re I capital? of the I’m we’re two, us right? XX%. revenue not in numerator, going How right? the to client, onboarding door, thoughtful to But confirm what did the number the it, obviously give but What actually we that best terms revenue. of We just our asking we client on help. And the cost for, don’t which right adequate this of the the is to on value profit the just it’s XX% of like front is in very it time? being margins return now right. is are was denominator? the me have Maybe

managed of so part services big it. is And a

like managed stand-alone sitting But Now self-sufficient way. very after squarely in to restructuring an look an overall they or have potential services. or it’s came just less player, I in explicit some who business in you we Managed more like services this can unit; And interest that anything it this described, way, at their direct us a multibillion-dollar client within fact this. in pipeline, the not came That it’s upsell us was for client, specifically, specifically ask. to client This a are services.

if and see to and not but well really very it and this a then model through I’m it’s it excited going globally. the and through it same are deploy proof-of-concept, scale just model perfect client, we with that can scale scale then We going

Steve Dorton

And could, if clarification. a I

existing happening those as we as Today at looking we’re we while while the they’re So managed and using clients clients closing actually we’re that in more pipeline seeing our are XXXX forward. conversations who are and at in clients were happen of more September more growth it’s of overall are to continuing our seeing we in adopting go those revenue and significant of our XX%, services. and but had XX%

a great really our managed services. our so today, for creates using of conversions cost of to lower ownership some their of kind opportunity by total it And

Oleg Movchan

the logical in to what – a similar my we that’s a extension Apex partnership has you way, do. as By and of way. the mind, think same Right, can it

kind general, our services should product, sort our layer. kind providing managed perform thought to them just to into be in we and no in don’t But tap way engine have this just we will. managed be intermediate services just able different. We’re our are base wouldn’t services do for clients you We of the We of the and our of Without as if their their directly, kind that that. client format, product-centric. of service

client first, else the philosophy positioning; expert. just the person services So back it. to on again everything is Every around single super and product revolving going team technical, product

sure hire of been of only talent, this effort not we has onboarded. lot right making work to putting talent we We’re make sure internally the doing but a a are trained, lot educated, in properly

in the and financial sure partners Spent to to clients to of and to have speaks fundamentals language. And and level. Dublin this Hong knowledge program covers months, a infrastructure, actually with base for educational actually the can Kong online really cracks. Singapore creating that client is lot teach falling that deep that the knowledge our the a make everybody same knowledge of capital course at is and our potentially as to London whatever do Enfusion’s well and our employees base, time markets idea of to fish markets so become make tasks capital it as to general, open do actually India how there capabilities up base, by is the possible sure and ultimate from very to effort three to instruments through we they are over whatever basic globally them base overall catch There be a last them themselves, we’ll

Matthew Kikkert

Thank very Terrific. you much.

Operator

you. Thank

line open. Koji, America. of Our Ikeda next of question now from comes with is line Koji your the Bank

Natalie Howe

on Hi, this is Natalie Koji. Howe on the for quarter. Congrats

you you is characterize How to sustained? do demand would had that be geographies that which to and in EMEA the within great EMEA mentioned different anticipate hear. You your environment record growth, strength

Oleg Movchan

incredible Taiwan the for Yes, better the monitoring still child. carefully. the very growing it may analogy, I think slow whatever at EMEA are be leading We, China, a, some of growth the which for see in us down, controlled has will and time APAC better growth quite by issues a one been but engines sort will we for pace of been geopolitical we has for that of lack and Hong Kong, way

have development make Our there. on ground sure team we to ear tasked team corporate the is actually and

team And we’re working we to on to services to that of can our we uninterrupted. have sort of team contingency second, planning first to safe make course sure clients the and are members move sure to if forbid, location something safe foremost, Singapore make and our happens and redundancies a God

it’s probably one will of that So down. reasons marginally the think area I slow

Japan that challenges we it, places system a Australia, lot like and However, which the typical good our of system, way capabilities. to that do in very, very somewhat we market, clients are for by the which way some but our that. that at have some there opportunities we see nuances frankly Australia institutional lack interest was compensate by are to in Like in of the in

We’re very we Hong zooming good requirements. figuring and region functional have are done in it regional technology Brazil, we done in specific going it of specific or at in to do what and Australia out Kong in sort the We’ve – are as it well.

going it actually to – and for becomes that point us. execute a clients to is, on So we’re nuance however engage small that typically with becomes that tipping

outside in go has little And think type region and of so Japan and what’s from APAC diversify Hong China, sort away of Singapore Australia. to I it, been a growing, Mainland need but we sort Kong, and possible see

Steve Dorton

this well continues And pace as as as well. to really a nice grow at both the really quarter EMEA year-to-date

at grow pace is EMEA move so as we continuing And forward. a very fast to

Oleg Movchan

Yes.

potential just operate hopeful U.S. full the from to but we’re of as team. set possible. as that reach my aligned we are is positive and stop will will India days, its make and London and see Dublin and to couple the We par all performance very going the much really sure APAC in EMEA we capture with that and a at opportunity I’m next

Natalie Howe

from Great. all us. Thank you. That’s

Operator

you. Thank

Becker comes William is question line Dylan, now Blair. next of Our open. Dylan the from line with your

Dylan Becker

commentary of prior the kind well things decisioning, play much Hey, How as those of kind too. of those are the the tools. by kind on pipeline and especially landscape into much that operations? handicapped I’m Steve. standardize does there’s compliance hi by their larger complexity institutional kind the Yes. that’s some of compliance seeing an those sure evolving a legacy I Oleg driven of question of Maybe side to right? guys to of double-click is of made some how on on within momentum managers But you

Oleg Movchan

by say compliance, Remember way pipeline is that to alluded are the driven that managers just the XX that sure but their handle really ago, it’s will some like institutional I I to capabilities momentum client the of not institutional I managers. minutes specific EMS important definitely I’m for guess orders.

those constraints across and portfolios and typically the specific that actually they are of allocation As portfolios relatively schemes have to portfolios. that client specific you portfolio have know, they model client out are different particular then model sophisticated this owns have that specific

slew one the not allocation after of them. sometimes placed, a so example, to seeing to is they something it’s modify oftentimes which tend is And is been there scheme But in hedge just we’ve want funds. order

sort be on absolutely maniacally compliance so client it example Enfusion speak. seems workflow And And compliance we’re of problem, with where is live have change that exists this what rules in today. right across allocation, so the we of breaks to to So trips at order list goes focused But is the important check this precise the one to just that which and compliance and it it. does subsequent a that on, address clients. we’re on working and universal this layer sort actually of engine that

Dylan Becker

systems? you goals kind unifying around relative the of then what over helpful. that of giving the mission I offer overlap. from of you’ve That’s of maybe continue this middle maybe you Thanks. think And But of how couple currently shots on should and back front, it. can perspective kind you kind some incremental Got this some a about quarters, again the expect can a what evolving to and customer think of announced we to handful last unlock in channel office customer as guys partnerships, time here

Oleg Movchan

Okay. Great question.

just from So starting the end.

something then back them potential solve sort base entire the sitting – our pretty we it in works. actually actually operating middle because rely just client operate and just And do leverage entire system we I technology just our changed. on not for their clients’ to it and day-out like top it, can exemplary in but think and on their is much day-out, of office, the benefiting potentially to front for and they us They’re extensive results using where software their buying have the not day-in robust, and benefit of it it’s run day-in partnership is cycle. indirectly – is of situation be Apex core. just This to support our problems. They our is needs

that Some new relatively other include, next partnership things in the we actually see will Enfusion. to which will is our as see you quarter, to for, institutional now what clients hopefully asking relate

OMS/EMS. New is sort either our of trader pilots that execution in as typical user

middle managers. a increasingly, back-office and between of processes, the put different this operates reconciles brokers is back-office clients seeing NAV investment to the front traders, prime typical that Our and user calculations, custodians institutional And fund. actual we’re what with decision world or runs runs want shadow in in operating the makers; PM’s, professional trades, system

you do you comprehensive mean? So risk simple slice at portfolio equity what something need this right that performance Northfield; using all it. attribution analytics. then attribution simple need do relatively long-short Axioma, it’s does like see you Barra, long-short fixed value is benchmark, a If income or managed what front. Equity typically model sudden standard, risk, the So of enhanced a that risk, just against Data and calculate is you PM’s to Science, and that on multifactor where risk typical can always your want dice framework, factors, name

front start making looking airtight as it is and focus kind that if should we from a execution persona if sell our we’re Because all try behooves our is and systems. consistent last – to. because on of will those sure and pressure far that’s at to we make is order PM management. our lot with back businesses puts they that that almost business them decisions. us all that they I a to can he target after where will, is to then career report just of as that right reputation, the then in picture them, previous executing loop is think them happened have or risk take processes And as used manager the and she at actually from product in have of on that I behind idea a missing this screen of myself actionable. you my close and the great development And partner that a some into the and great system piece, really that and tool of We then management looking

workflow becomes And closed. make sense? it the completely Does so

Dylan Becker

Makes it. perfect Appreciate lot. sense. Thanks a

Operator

Thank queue, further or no questions will additional remarks. queue. any closing you. pass the are currently so questions to conference no [Operator There currently Instructions] in in further There for I over are Ignatius back

Ignatius Njoku

join to you the We interest. the Thank a us dialog time and continuing have to today. wonderful evening. for taking appreciate forward We support continued Thank your look and you.

Steve Dorton

Thank you all.

Oleg Movchan

questions. Thank for your you all

Operator

Thank earnings This concludes XXXX Enfusion Third you Quarter your call. for today’s participation.

You line. disconnect may now your

Enfusion (ENFN) 10 Nov 222022 Q3 Earnings call transcript