ENFN - Earnings call 3 2023

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Operator

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to Enfusion's Third Quarter 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded. I'd now like to turn the call over to Ignatius Njoku, Head of Investor Relations, to begin.

Ignatius Njoku

Good morning, and thank you, operator. Enfusion's XXXX to Conference you welcome Third Earnings Quarter Call. We letter, Chief call Officer. Please and shareholder our quarterly IR are posted today's all Executive results note, includes have financial Oleg quarterly website. Financial Hosting through Chief Movchan, Officer; been our Enfusion's Brad our which Herring, may I would call like statements. you remind forward-looking to today's that contain on the forward-looking our Investor forth in set statements including uncertainties, those under are These available filings website. subject SEC with and Relations are to section numerous risks and our results forward-looking Actual materially we statements any may from differ make today. as statements speak to today, forward-looking call. does These company following not them any only intent of or and obligation the today's assume update except required law. as by

non-GAAP the today's quarterly In can turn for a on the should call These in substitute measures begin. as nearest be to website. With financial found which to and to Letter, addition, the may I'd be Reconciliation measures. GAAP company's not today's that, Oleg GAAP include measure to measures. available is a call Shareholder considered supplement over to like

Oleg Movchan

for Value Good for gained Enfusion in year. revenue momentum. joining results to our of discuss quarter solid third profitability. has the pleased you and another quarter delivered to and announce I'm thank business creation us the engine today morning, both a this

disciplined Our uncertainty. expansion face go-to-market across capture ongoing persistent market of validated by target macroeconomic strategy and is the segments in

market take profitability. share, market opportunity, large expand footprint our against our execute and global to improve continue We our

our to with and WorkBench, details share our client is expanded Portfolio of increase and at underscores the I'm intact, workflows. Innovation to about validated a which in the average very on proposition not This clients support to in I remains client moment. our Portfolio and largest journey our only embedded culture will Construction integrate technological more improving Portfolio represents Managers experience. launch is dollar in but a Our healthy margins. of empowers formal release most also Processes and best-in-class seamlessly a commitment institutional in value operational additions, development net contract value pivotal by retention, moment complex core product this the strategy. excited

not business rates campus, Although optimistic future. market management to resilience tailwinds, remains market recapturing to and any model business results adaptable. of more operate iterate are to than to global, from a and its profitability above Enfusion position We'll choice macro deserves will our ever and our of unit complexity. positioned is scalable our continue Enfusion's Ultimately, taking uncertainty. while well increasing Regardless to prove investment continue I'm expensive macro solutions. Enfusion of grow for to the from resourcing we're a about industry he to towards fragment that be profile. strength organizations secular and scale from and continues evidence platform and we of immune headwinds, that truly growth benefit environment,

and walk quarter. and of Adjusted our some as through the margin. million financial Now represented XX% continue on our key let product me you go-to-market million $XX.X an EBITDA was Revenue in grew we execute XX.X% strategy map. to road $X.X to metrics third

expense to a results Brad moments. count will benefiting about total the ACV in XXX representing to We improve in and few more this our quarter, and strong profile, quarter-over-quarter $XXX,XXX, continue detail our growth. year-over-year control clients bringing X% leverage. margin to XX financial added discuss client operating We increased from X.X% and our

Americas, segments. to In framework validating geographies the notable would share a revenue and market approximately challenges. bottom-state we year-over-year of execution $X.X share opted AM. manager legacy resource upgrading given Enfusion with that headwinds. client alternative as with a like reflecting larger despite OMS ongoing out Now its XX% The share grew expand macro I market the fund across additions, gains to few managers in I'm billion our thrilled signed firm

also result, complexity disparate in more compared And provider, legacy conversion New workflows alternative to competitive cost-effective understand York and services, emerging as the is our between a focused a was systems. team software for both Enfusion and became clients' absolete requires much able investment asset takeaway, in-house user Enfusion which manual the the providing managed to this the solutions. managers the manager resources. loan-only As frontier of signed resulted patchwork Notably, Enfusion a on and years. Unlike markets. several communication processes based this design consolidating after system of a solutions, well-suited

Enfusion's in from more of in-house result, workflows, the demanded and the XX% We're more portfolio excited complex about WorkBench exceedingly offering. minimized fluid markets the and moving a launch as both and benefits resources. We new material asset operational true data revenue new cost solution larger maintenance implemented platform, manager with a we result to source and of Portfolio in reduction. In front-to-back costs risk tightly IT revenue embrace our to As region expand solution the regions. golden diversify year-over-year EMEA, our and sets became higher as integrated into complex, continues market the drove inclusive our differentiated grew momentum our

Enfusion, and stand For They because fund their Enfusion view swift of to prone London-based manager. from adequate execute automate multibillion-dollar benefits scale another institutional global manager asset outgrew the to faced class they trade instructions cash provider challenges, its reconciliations. manual trade client workflow funds the incumbent The NAV including products as a all and across grow. robust, with With example, can multiple our multi-asset an platform, has and and streamline capability. selected allowing that now generation and allocation legacy them we unified and

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is long-only be with leveraging and newly a an with record. that formed Investment client we into the Importantly, to a well-known in will that expand part with team Europe. I'm manager Manager offering. a presence Enfusion of agreement continue auto-based entity software our significant track run announce This we The strategy. large, services geographic to managed entered particular thrilled equity

also won getting a software of motion. This we realize a loan-only services streamline revenue APAC, in Enfusion the XX% upmarket and workflow year-over-year. market improvement led fund. cost We to savings. In by our African-based from seeing and signs grew South leverage to and their mandate early We're with launch traction plan

fund signed Kong of and data single manager quickly truth a global manager. with For source platform Hong looking and robust example, them was macro to a we enable architecture for alternative our for end-to-end The based operations. launch

other infusions capabilities. risk the and and fund reporting value at risk leverages measurement Additionally, by partnering with Enfusion, manager

because one. were into alternative another that entered looking day company for platform asset we agreement from up a facilitate flexible based The manager timely launch, for they Finally, the in scale fund an recent a launch set future with an fund manager would chose infusion and Australian Sydney.

Let's move some to front. the product updates on

and said our strategies and and risk allows is one differentiated multiple portfolio OMS manage permeates in basis. As that everything Portfolio capability launch on works interface, times, the announce always competition. embedded concert portfolios to of the formal WorkBench, managers daily performance our an editing Portfolio recent Enfusion in WorkBench a and our to a to culture investment PMs do easily is I've intuitive across many I'm values and enables It functionality innovation highly against and leveraging from our of thrilled core has vehicles. By throughout user investment with benchmark. their rebalance intuitive ingrid our we

within is investment subscriptions Portfolio a vehicles data product model redemptions WorkBench launch compliance and rules, PM upcoming can strategic As and across a result, track without interface for monitor one The reasons. multiple concerns several about compliance, post-trade user integrity.

decision Portfolio expand and our the complex stated to move decision-making traditional WorkBench managers, of workload implementation. is integrated that tightly a critical in component First, strategy way operational a capabilities is to asset segment the upmarket larger that in more our into with

This outperforming and drive investment it's taking with implications and proprietary to managers managers systematic touristic will an to support both benchmarks facilitating their managers tracking adjustments. the and addition construction for passive deploy and quantitative intermediate both on more has risk Second, It portfolio rebalancing frameworks. portfolio risk models important are focused by active in periodic to portfolio third-party benchmarks manual positions. management active optimization that and step

continues functionality, that of build insist infusions of on on front product fluid segments all-in-one another where a across just to we lines philosophy, natural Portfolio set all existing With is eliminating extension platform. WorkBench investment the Third, and management workflows. of

our expanding infusion expands competitive client responding by further proposition. it legacy value Lastly, to and from our demand mold market competitors, retention advantage including widening

of our helped credit into that one just allows segment. to us element is examples It manager key a large expand emerging the us loan with Portfolio markets WorkBench of initially went convert one a focused Here and our was of owners that equities competitors. many

to and out enhancements an and our competitive like of value important quarter. features released management The creation OMS. important addition advantage is highlight the enhancements would in our this additional across to updates team Enfusion I WorkBench, In of X and rolled scope Portfolio frequency that, dimension portfolio mechanism. With the other software XXX

mobile pricing Bloomberg leveraging can apps. is which their real-time first team connects The third-party Enfusion's the so terminals applications connected, mobile support, stay in real-time Bloomberg's with that investment

features simplicity for product, corporate are native vendors an remains value-added loan way our simply front-to-back result complex highly cost to of platform a The bonds by for support product by with data long-term requested leverage Law, These instruments to that capabilities, our exposure Total and OTC the and is provides teams effective to suited iBox and investors support obtain cannot. Return's new solve optimal efforts legacy to deliver engineering other and markets. Enfusion's which clients. well

dynamics. shoots to new to green market see Now managers on launch moving hedge-on. lean We some and

our Be protect our may, remain increasingly hedge-on term, overall the businesses to launches. the dynamics and expand it is launch of less historically. while dependent as we on continue that home book low successfully However,

industry to as costs secular related workloads software Importantly, its is benefit and Enfusion the investment and reevaluating risk. management continues from entire stack, tailwinds

our we momentum gaining road our product technology clients. scale on and keeps motion upmarket to continue our listen map execute to as Our

market our All hedge reflected from in investment share and of managers revenue robust and managers. for shift fund mix institutional of in the pure gains away storage launch conversions continued this is away recent from

I killer, As multiple a vitamin. not said pain is have a Enfusion times,

pain clients increasing amount As a on our side we benefit competition. of flip killing our fee, of an

key me Now long-term of strategy. some elements our review let

institutional shorten process. Naturally, TAM go-to-market model is continues asset onboarding client retention. owners. speed improve Our and towards as we of our growth, expansion the in durability optimize opportunities strategic increase and our business managers our to asset as to we velocity margin of and and drives Enfusion continue diversify we market sales strategy, in business our all that a base improvement of position transition, new cycle our unlock and evolve and client expansion,

from protect designed framework to is headwinds. business Importantly, our this economics excessive macro

globally, shifting away wins the book and by in. our over regions center competition cities targeting last to of minor continue evidenced business spread our where growth performance we As year, our is from

We continue relentless its historical conclusion, on our excellence my work, surgical entire colleagues sales value quarter discipline. In global financials. moving we market exercise to is services, Brad revenue Enfusion's the profile. delivered on to optimization of now cycle will third as our generation, remain grateful maintain focus over machine to We and normal innovation, footprint. to I'm strategies for focused virtuous expanding call discuss our hard execution, financial and to returning on all results. and we our passion very operational product client our in focus pipeline solid clients. I precision our our creation turn of up to back Enfusion fiscal

Bradley Herring

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

Enfusion entire the of profitability yet top I'm combined quarter generation. to another with behalf strong cash on growth, team, flow and report management line glad Speaking

quarter, quarter the same year. XX% an third of last generated revenue increase million, $XX.X the we For over of

growth represent historical as a slowdown results in reported Just our we rates. quarter, last these

However, we're our growth indicators seeing some positive algorithm. underlying in

be the both back-office First, effective and new manage bookings efficient continue to to and in solutions strong look conversions sector continues fund to launches for as tasks.

our pipeline such and our opportunities as continues deploying additional expand new we of improve portfolio by quality as features capabilities product to the credit. benchmarking Second, market around

favorable our the we back revenue drivers trends in underlying within book. starting are some to Finally, see

in are seeing as both as lower well we organic improvement growth Specifically, churn. net

X% and reported year-over-year quarter. XX% up than just what million, we $XXX.X higher was ARR quarter Third last

retention, improvements I As churn, dollar book in XXX%. including excluding back result involuntary the in trend over net involuntary the churn, dollar retention XXX% just the quarter, was and was net of a mentioned, while

stabilizing we by X, For that increased sector increases, see headwinds the first NDR reversing. Adjusted quarter this the gross just either million. X% challenges in or the NDR the previous XX%. macro facing to an to over leads related where represents measures, both margin adjusted confidence modestly the are $XX.X gross to year-over-year which of This is profit

and last remain to support previous quarters represents quarter $X.X million, was onboarding ago, our invest for XX.X% up XX% up of reported of strategy. Adjusted in QX an and XXX the our between in XX% calls, capabilities we growth in gross Against and next this in adjusted as QX. about with of expect current continue from EBITDA consistent talked a over points largely year we've client adjusted As we earnings EBITDA period and is margins we servicing quarter compared basis year. XX% to margin revenues, several the this what to the for same

end Our a XX% revenues. represent incremental quarter rate on pass-through results

the somewhat free For of in the year quarter, timing the higher outflows was cash a generated period quarter the due ago. third to for of the $X.X quarter. is various million flow XXX%, to Cash million inflows cash that we typical conversion than adjusted of flow and same $X.X compared in normal

we approximately on in compared items fluctuate, year. to shares, our quarter EPS last free per EBITDA cash the quarter basis. GAAP our XX-month of are respect million and sheet of rolling considerations, to a With balance our current share confident a the will of $X.X the our a adjusted million discuss. rates quarter for count million was few XXX.X income remain to conversion in capital quarterly XX% ability the $X.XX fully in net net income flow convert results to GAAP period $X.X there of our into While Against share. diluted from same

ended the cash no equivalents in approximately First, outstanding debt. cash with we and and million $XX quarter

targets of help of a $XXX credit place our with was contingent provide accelerate Bank line with on certain $XX to secured trajectory. Second, revolving liquid at growth identify we capital should additional an line exclusively strategic to our available recently that million conditions. This million put have partners in could access America, we

Finally, related of most all shares incentive to tax fully withholding the we that The management we notable now are to are these holders of impact our shares IPO. distribution satisfied. these our that pleased of obligations distributions were connected to completed XXXX completing that units is say to

Moving on to guidance.

in are and provided EBITDA adjusted discussion. We the our revised reaffirming QX we earnings revenue that figures

year we'd Just to $XX for million a million up revenue year confirm, to to call $XXX in million to questions. XXXX go open that full was XXXX $XX Operator, million of $XXX the full a adjusted range that, to like range of please for ahead. EBITDA. With

Operator

Stanley. question first from We'll at [Operator James Instructions]. Faucette take our Morgan

Unknown Analyst

to would a Obviously, by on year. for you GA win term? the a quarter. thus curious in the on I the currently how wanted feedback characterize it's end early far uplift Michael to NDR I in and or you It's perspective James. potential clients the of and an think Oleg, the ask out portfolio called the Workbench. expected beta from go X from over as medium priced how But I'm that driver of perhaps

Oleg Movchan

Great question. Michael. Thanks,

result it's hand. on decision managers offering, investment institutional it's to part asking hand, a our many one something of products. and deliberate as part. customers. other the emphasize mix, investment you with design is to -- what and went office to portfolio of is just It's opposed that between and our offering that create again. strategy and traditional one lab us this simply responding And a our a purposeful our market the a do, created to to Actually, for move product to the consulting implementation decision-making on as We without toward more So I want not asset know, middle back it and we conversations. of

fluid ecosystem. product basis those part into the a And of another then stand-alone infusion that there of is overall it so the integration outside of exist of strength that's core -- It's doesn't core. orders where actually the brings the layer system, on

And Portfolio OEMS. been so decision is is it's WorkBench about, which the is what seamlessly executed all within made, our once

we result So has on make will that it's basically, and will of technology believe operational retention allocate our platform. I impact -- asking it the response position it risk, also capital, Naturally, the been with a multiple market to clients. team teams management again, us interact -- it's client on performed is portfolio interact continue forth. continue order a think to opposed team the to it what capabilities, to infusion just me, and support so so and the that capability. It's is where iterations our how with very to analysts, allocate about a do look, becoming reality with managers, product collaboration platform, serious mean, becoming of to people the excuse portfolio, portfolio as front-office the traders has and

and quintessential the high the And translates part the and thereby retention facilitating facilitating so interaction that of collaboration, that is is into nature that part reinforces platform therefore, rates. that

Unknown Analyst

some in? of having. And to you credit be about good M&A? sheet obviously, interested see curious health capacity the are the on you and/or just you generation I'm assets types free commentary the about are that and that geographies cash the guys Maybe thinking balance would made, for how you facility, But of your strategic flow the incremental more of the near-term

Oleg Movchan

question. Great

So ago, a looking first what far we mentioned are our very of as we -- at of as in targets M&A have are I couple quarters deliberate all, concerned.

market. But other for of thesis one fluid fluid completely we system, where perspective we technology the that accelerate accelerate compatibility. scale, place, of within the creation remains -- have from culture coherent in a or proposition where facilitate either global. feed And geographical of within we so not We're because intact. is Europe equity framework, perspective U.S. blinding one growth in our things, both value simply onboard would the product such markets the that of something Our of the areas challenging, from core system set in hand, will so our something simply looking or approach, perspective, scope business code, all-in-one private as we a obvious are course, stack workflows it's finding at where Therefore, bar bring pretty in private -- interest credit travel does flexible, it so from we're and both is not can strategy and our right? On terms open much position

into vertical U.S., to plenty along course, more scale it's at. we what a in our there allow onboard. to this allows capabilities have modern not perspective, that is the whether a deal Of would platform from from see a what's doesn't technology represented choice, to we're us at look get sell. scale currently Where our to where seeing we where perspective look or look it's to bring Enfusion But where related us available is technology more areas and

Operator

We'll take from next at Faith Brunner question Blair. William our

Faith Brunner

wanted was start about I sustain strength, to thinking this I opportunity, thinking in your and you competitive on international areas. allocating seeing just guys you're to positioning these in momentum especially you the side. wondering guys how resources And EMEA. are are about how

Oleg Movchan

market. in so country Every but. so last Well, technology, opportunity in big mean as a as who it's in you people focus of and gatekeepers unique question. couple growth Europe People there. for us. We a terms of see buying forth. the I think of think one strategy, you've quarters, about of the seen typically the how anything about about our industry how relatively is growth, and XX% the Thank monolithic in quarter. for on it's been strong people our are driver year-on-year think From EMEA perspective, decisions, lot terms go-to-market for this of

lot I team where of obsolete like sitting sense, competitive and product strategy both be relying of strategy relying They crowded, either to clunky, legacy companies through is slower legacy or therefore, and attack and relatively infrastructure, dollars capabilities stale, our also, on ripe ROI. our less designing millions to proprietary Enfusion. providers, tens on in have are those without homegrown and perspective, baby thinking legacy and a more and people some systems, of still nuances still credit by disruption markets for spending significant from revenue those that less so go-to-market team give to And to tend markets. Those nuance, our

X, very It's we're We And large Norway, and very like interesting. U.K. mix still So cities the like countries, where over why is Hong in we're from Europe both not less away our traction business as rebalanced this Kong in again, track gaining X and obviously you've of is course, pretty seeing rebalance our so if about New is But and our course, competition turf. markets EMEA, Middle those controlling France, excited around deliberate, to share opportunities seen, a book London, portfolio is, our outside of stable. we're very East, revenue still performance the as high. we're opportunity, strategy market home towards centers well. as money multiple also years, are last and York. But of much center represented you the

we're going picks continue Europe, up do forward. when doesn't is slowing rebalancing down, When slack. U.S. will and Sometimes U.S. Asia work, towards that we to

Faith Brunner

if And one in sneak could I more here.

strength you of lot it, of beneficiary multi-strategy flows. a a capital to are in guys Just

you're So and and thinking wondering about fund overall running quickly? clients up to willingness their these how of types get infrastructure

Oleg Movchan

so I'm first Could your part of the that? not did I you question. sorry, repeat get

Faith Brunner

so, Just willingness you're adopt so managers, and are kind thinking lines solutions. of about multi-strategy, how see their asset and strength to continuing to in you broader as

Oleg Movchan

I got it.

in the competing it's And So for nearly because people different them interesting us workflows are in people one businesses, their extent, that to to extent history kind actually of with the a impossible talent, some how they they for coming an represent multi-strategy, to a custom challenge and another like be preconceived that actually, that they're some Oftentimes, team multi-manager a blends system system, of for has very with things. some impose notion coming organized. specific to requirements have that's because with of kind

has the enough and be to absorb flexible necessarily imposing so to team constraints. the dynamic technical platform without those workflow And

much to economies lot such proprietary of captured to a budget, satisfy things to ability satisfy, things a run is run to they and firm-wide have of they and hand, proprietary virtually enormous On higher. technology their the their other therefore, also develop unlimited scale of precisely requirements because lot

it's there. the driven sense by for in the From much And are, my more perspective, what so sense, business. some cost a makes secondary pressures

pressing and become loan or just and to multi-manager go on they get those like for of one and they hand, are and just on talent capital they launch actually a platforms, allocated launch, a and go big down they whether begin a into who launches platform of magnets seat naturally. fund have are other they looking those choice, trading. number a the therefore, SPMs they get the firms On make

internally. and in. And in like scale, so is they competing back, about from pretty office of sense, and our and capabilities, matters announcements sense because we care care those of is And integrated This we blend perspective, that and actually come some we not strong palatable they this What capital have though, nucleus when investors. market typically multiple makes guys middle, clients actually in -- that about much cost traditional is coming into actually growth. markets see with where is start that. But asset a fully for unlimited interesting, a more start recent those with on this structure the front more we costs managers where you those see some allocate subject, more

Operator

We'll move Gogolev Alexei next JPMorgan. at to

Unknown Analyst

for Alexi Cander is This Elyse Gogolev. on

question onboarding about other the how reduce this space. average my better kind your talking plan with you was players of in compete to to So period

Oleg Movchan

have much that but big about our competitive revenue We advantage. specifically cycle that -- and legacy framework of or part than work all Yes, part of for providers that as is shorter space, that on-prem-in just part, stores. forward focus is onboarding cost in area a pulling competitors us. structure think Typically also not onboarding

typically And it. only precisely our than if that, leveraging of to much there's win so way and more competition. And reliable terms mentioned even onboarding you of because that is shorter we one our much do capabilities, business in

you You that and so organization and your build effective the right around designed team the is more capabilities efficient. that much technology way

drives This what enhance that's of So the the would cost velocity process. down. the

Unknown Analyst

And margin. quick on then EBITDA real

remained the some same. if I XX% So was X next margins EBITDA for to are back perhaps plus trajectory where of XX% see the margins I and the years wondering sustainable you debt? going guidance your know

Bradley Herring

talk talked revenue question. that We've much the when take mentioned expanding I'll EBITDA. also Brad. and margins. -- It's is through is that about incremental how pass-through we I we This of flowing rates why mentioned about

XX%, a we've So targeted XX% rate. pass-through

So margin what expansion. certainly translates is into that

we'll around exiting We're ability but targeted margins, not sustainable this we've and term year margins the to from setting the the where XX%, in we'll targets long not further year show expand So see expand to XX% those ability say those in certainly perspective, also an we exit into but have certainly only to and necessarily term. both when outlook to the XXXX. XX%, get near take numbers we this and those

Operator

question comes Stifel. Lane at from next Our Parker

J. Lane

pipeline the you about to in of we there. some curious quality into of the the improvement NDR are we reiterated your improving stabilization quarter XXXX, year, Brad, guide trend get out we Nice think and talked expectations and maybe and you into NDR? as see back last quarter-over-quarter. what to head fourth the here the Do around line levels the at were

should Just go. curious that expect to where we

Bradley Herring

the question. the XXX direction. the NDR you posted involve. back spend of pleased least great lot just it. when that a in to trajectory like a targeted XXX. see a exclude number We It's kind to flipping very We quarter at you, start of that I looking other to was at We number time getting turn

probably number going over in certainly gets I think it rate I I'm stabilizes reality the trend the XXX to its is, the direction. question. going When to there interesting time. to appreciative be an is right a see that in XXX

think I XXX, XXX quarter number target maybe I X, probably to levels but get once for is think these a we around do next the hover going sustainable or that a it's past that.

Oleg Movchan

want Brad's comments. pile Parker, to question. I Thank on for Oleg the here. just you

possibly you're thing another absolutely quality hard is as cycle as previous important -- the that can this is can Alexei, not And We our we question by driver we here what involved to is we not right. clients, in reignite think Big try we So early of involved continue to is early to retention higher. we about control gets control. about and again, And stages, organization and client maniacal higher, revenue the to of just the during onboarding credit the the stages services give problems. we to therefore, organization and sure team but have making services creating execution I team is sales, involved just disciplined velocity engineering on -- the solution therefore, the -- understand higher. and this our to of client our clients' happy virtuous velocity focus is therefore, back

Operator

Crispin Love We'll Sandler. go to next Piper at

Crispin Love

if Just just bottomed to a decelerated XXXX, first optimism XX% here. growth, which on surpass on views in trends, here. your just given inflect begin quarter and to near Curious and revenue may third could about perhaps the and and have challenging the you in intermediate your for in for future recently higher comments is growth think approach landscape that

Oleg Movchan

Thank you for the question.

at as to is constructive. the you our probably macro we look going is the ball. all going know, seen to industry And maybe be Again, single asset is like to I don't the you we this What depending to have gives right, at crystal X% what we pretty that in that environment we're anywhere in ability X% the multiple it, can between -- management digits. And grow rates large, sources. segment. know don't 'XX. So I is this. we've to a comfort me think bottom is personally mean, growth through going or on know grow best sustain peel

-- do so at how XX% plus, So X ways. can it do you grow you

took Enfusion's which is also downside sort macro today, when good which capture where when either the been share actually of what again. can strong, precisely focus where market competition, away from and rebalanced and create is convexity, I precisely share market thereby call the always very sustaining really are we headwinds has business growth would our aggressive market capture, is You

high. Funds are the and launched. returns flowing are are Assets

We stage back hyper growth our again. are to

connected. know, about line. are your solution is M&A an X be top said our both profitability this trying of and solution about #X. Tactical understand the could surgical of question But as is At so tactical are as before, growth. as those potentially I about And is line to line perspective sort bottom balance from it growth. the is But I do what number are #X oftentimes, as top our end are day, of much about we is strategy. you careful aspect also we it again, very that and

Bradley Herring

Brad. is This

Let ways at our little algorithm. me A look of just add. of way the we growth bit

I think than if share chime macro and level mid-teens, the kind rate, still because from market which If out grabs. of share we -- here kind growth of will is bottomed even and our in, substantially competition caught better of of you a our

up additional start product bit for opportunities we're another credit, XXX mentioned pick to things we're portfolio additional have and out NDR basis to little new on on with capabilities with things And to XXX another historically. a going that points would lower So of like with NDR XXX we're things market than go XXX like into. expanding we've workbench geographies points mid-teens, off like with because running then tack we you basis

you this numbers, can rate. compile XX% back easily You those into get sustainable growth

So that's we we dissect and kind it. the at of look way way it the

Crispin Love

appreciate the just and definitely line. color there I top bottom the balancing and

license here? seat incremental they what current an give slowing drivers in me there. are Second on can curious net is update the and question just environment you're current the trends seeing clients, at Just but positive for you

Bradley Herring

one, is this that Brad. take I'll too. Yes,

this is net little kind So supporting of seen organic of about growth. a we've bit commentary shift in that my trend a

starting are a seats pace we we actually existing upsells, seats. are term see, they declining our called are clients So where to use a faster at adding than

we quarters, our reductions little couple bit those saw Over NDR, we cost a the base. saw resetting last trajectory as their most flip were in that of customers when of

organic basis, a net see has is We positive last turning of are quarters. number couple on the it than more to growth substantially in starting that

not pace at much they capabilities, picking up increases seat are than a they certainly are declining are but seats. fund as counts, seats they're massive in clients own necessarily are expanding we faster seeing, their So

So that's a trend nice representative NDR and that number we that it's picking points. basis up XXX saw in

Operator

Borges to Gabriela next Sachs. move We'll Goldman at

Carolyn Valenti

increase of investments Or like take increases, levels a your would Valenti where potentially? of Gabriela. what Callie that to signals wanted how on to current about of investment macro feel is world are macro just you opportunity? lead in with level you on you I advantage investment and start This feel for comfortable you and your kind you current kind can

Bradley Herring

Callie. question, That's a great

only feel some is, through CapEx software. about good the we minute you'll in profitability. put out make, have flowing like thing is our about to as both should well The environments our the investments So always we we growth and flows note because to it OpEx to opportunities. balancing Oleg's top us that that make investment of of could it comment make the back not the to kind investments allows does allow investments present of sustaining growth us list as we're as but it We P&L incremental line ago a prioritize growth changes CAP through incremental and rates able a economic --

make XXXX. do plan, still XXXX We meaningful we're investments for that on growth we are as fact, to have we we're seeing So the the in in macro our trajectories environment. based plan building targeting in out

very the And So And make accelerate, the even candidly, to those to environments investments. very attention X opportunity allows we close are point, if things, economic intertwined. them. us pay to your that more

tandem. they close pretty So in work

Oleg Movchan

hype also actually echo And news out and that problems, a people to of lot there of make what Callie, investments that here present, kind lot not in have another follow us of us of and good of a having which AI machine make and solutions clear with learning this search to like is and a to speak. of I white Brad is so said still are front point, just the space -- in for we lot want

thinking our that the those in very will team and therefore, market, targeted road to again, it where listen through very a we're have careful high we, map, We very again, way, team disciplined to product ROI. investments making, and credit engineering product and have specific

our investments mind. potential on investments So you on in at it's look just And return It's our with looking equity. not highest can for making return about equity.

both not would As time this that lot again, and the capital. you we we capture opportunities good We back. to share. what every with get know, of point deploy in said, time what I it's going is to of help thinking about think at is we're do what us and like for us It's dollar. market And news And north a present -- growth this about XX%. product clear are is there

Carolyn Valenti

second quick portfolio modules. how wanted just is, about kind me, that That your work compares bench from then how the and of And makes one other to of hear sense. you're pricing to anything thinking

Oleg Movchan

I think still we -- -- here's an conundrum. interest in

sell is system a Portfolio we and NGL accounting from platform going of As that PMS, Portfolio WorkBench So management don't have order that now something right of we clients. capability working know, to will, not relationship entire maximize on just commercial the sort part separately, an think sort WorkBench package that of bundles, is we will where from in is pricing this something Portfolio will is to we you different WorkBench separately overall and shoot we optimize with it's are sell right? you overall product strategy, Right forward, if of our now, through green allow us package. our how --

thinking in package -- works point WorkBench about our one, clients definitely how But number the that So pricing that context a pricing. product parameterized an time, It work what pricing will in driven just it's of drive the the be to benchmark a stand-alone that It's be function is also risk and conjunction structure and of it to the as Portfolio it's product turn, thinking we're data, still environment. as not -- as definitely, in remember, those just how they if has we're to data. And partnerships, data overall overall about a tool, buy going you are model Portfolio a we Because of by this in with. the just product. is will, the market WorkBench point by right? enriched at framework,

heard to that Brad team, and to dimensions about there's revenue assured, how talking and And way. rest thinking capture a possible And our the so lot best work to here. of his team and

Operator

We'll Koji of America. take Bank Ikeda question our from next at

Unknown Analyst

there? This Hall ACV, it drive has bit. grew quarters, for growth more stabilizing absolute see which is is see, upcoming Do Koji. been overall, on so past rate could in the quarter or help the on that Natalie than the but to a basis, you And what potentially growth it quarters? holding On decelerating an few quarter, good did this last

Oleg Movchan

our tickets, space. keep and segment, it's competition. compete natural, But very seeing we of just Well, conform a for and very we market again, lot of opportunities in strategy. lower a continue. this bigger just We expect low to still clarity, interesting capabilities, to extension price-driven in ACV don't play in not we market we higher price. on segments landing longer Again, contracts, We're trend well bigger this clients,

much so territory. before, stronger an land our to $XXX,XXX, in $XXX,XXX, been opportunities range, type have $XXX,XXX, is it's we pipeline type already And ability in $XXX,XXX clients than and overall X-digit interesting is that

so And a said, precisely is as is I in where as slowly, Enfusion move that business this as transition we happening. transition

that towards see and move we you as will more of So segment, more that.

Bradley Herring

you add, might Natallie, fluctuations growth in rate, that are just some clients onboarded. I when will see quarterly on depending

year-over-year basis, push around. to more on So you'll little of kind probably some a a on steer you can quarterly see bit basis, bouncing get it at I better towards a looking you number. would a

Operator

conference session you today's thank That for today's conclude participation. and call. We your question-and-answer does

disconnect. now may You

Enfusion (ENFN) 7 Nov 232023 Q3 Earnings call transcript