ENFN - Earnings call transcript Q1 2024

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Enfusion's First Quarter 2024 Earnings Conference Call. [Operator Instructions]As a reminder, this conference call is being recorded.I'd now like to turn the call over to Bill Wright, Head of Investor Relations, to begin.

William Wright

Good morning, and thank you, Operator. Enfusion's XXXX to Conference you welcome First Earnings Quarter Call. We Chief Enfusion's call that Officer; contain Officer; Enfusion's financial our results, are our our today's you posted Relations which Chief shareholder and Officer.Please statements. letter, quarterly forward-looking Oleg Pawar, has Financial Hosting remind quarterly Chief website.I may Movchan, Executive would today's includes to note, call Enfusion's Brad Neal to been Operating Investor Herring, like including subject available to forth numerous Relations These those forward-looking uncertainties, the are set our and which section statements in with filings are website. in risks Investor of SEC, our the differ may results today. forward-looking materially Actual statements we make from any statements addition, not call, include following the forward-looking today's These obligation today's of non-GAAP as measures. update only company assume by required call them today, except does may law.In and or speak as any intent to a considered and should as a measures measures. supplement These financial for substitute to GAAP be not nearest which the today's to can the to turn to be call to on measures that, like in website.With begin. available company's is Oleg found GAAP I'd Reconciliation letter, over shareholder quarterly the

Oleg Movchan

you direction and and team's to start quarter strategy. ability sharing Good execute to discuss about XXXX.I'd thank for business the morning, us first joining our of excitement my our on by of like for our the results today to our

who Day in Brad Lauderdale. XX you to will thank hear hard of Fort the proud attended day shortly, you is Herring, like value market CFO, investment COO, and at our work with and every dedication.I'd of Enfusion proposition bring and all to everyone of Investor you in As have Pawar, from me also on first-ever our as community their as Neal we shared incredibly and well I'm the March resonating, those for

and more shareholders to We engagement are research our spent who time about for terrific and learn the analysts from story. turnout a grateful

overall our section term, to for the can website, all found key growth medium trends of place you revenue achieve a will our and quarter to prior macro our out believe Enfusion's which XX current presentation be our great earnings we last call we laid our can and percent XX-plus XXXX and with outlined Relations it, those our will define wins. enhance of Investor for first as XXXX, that be we Enfusion the see value For ever how platform financial Day. year achieve make of start, proposition on we're support at We're upgrade the guidance full where will in XXXX.We need.As goal to off of new Investor track you clients the the in who couldn't factors to on client for you the

our with through that from me of an story know investment, clients familiar will let today, our that some existing our while also been that are X-year results.Now Those walk has share to the first I'm delighted focus On highs. with area you highlights seeing and key we onboarding and quarter. share client move that pleased Enfusion's relationship several confirm continued deepening upmarket proof scores the call points satisfaction clients.I'm at this are

on remained as million 'XX, year-over-year XX.X% plan trajectory economic Our revenue, in in we delivering reported $XX.X growth. QX

launches wins representing We first $X.X last in total will EBITDA adjusted launches seasonal December, this no the quarter million, we the from mix into adjusted year witnessed new quarter. of was industry included later.More discussion in Brad a typical totaled This new speaking, bringing fund which represented surprisingly, The and the during January. year-end XX XX% on consolidations, in margin our EBITDA XXX. backdrop count volatility followed QX, higher we broadly in Not fund signed year the quarter, combination of the to translating XX the new client of First a first up quarter client different. an XX.X%. signed financials by provide clients is volatile. closures deeper remains

ACV, the to throughout X.X% a recent We sequentially will to conversions expect and from increased higher quarter-over-quarter out mix our it $XXX,XXX, year-over-year balance percentage record more in with $XXX,XXX history, growth. on XXXX.Moving a representing X.X% of

expansion over up time, deliver NDR notable level product slightly we core will the first continue from few grow the broaden the the XX% great client our opportunity managers provide functionality support too overall profile protect will to as from ACV differently, to higher services, to revenue quarter. stable market and asset client me expansion larger base, additional grew offer add a economics.Shifting of client our As resulting managed upmarket let as our our successfully our and fund a gears, mix.These share revenue geographies new and portfolio our we in larger segments, so Enfusion's the across in year-over-year, over time. hedge with wins will a you Stated offering In Americas, improves expand quarter. which with accounts more base fourth business ACVs

notable Credit ability solution view tasked is that designed launches, Foundation credit with signing entire the to a York-based business, another enjoy customized Foundation debt their conditions.Historically, In a earn providers infrastructure legacy IBOR integrate multiple a chose and of credit-focused due books, management to Enfusion that centralized specializing validation an alternative Enfusion and across team the systems and trade and New they the agreement third-party, of credit, combination new our several flexibility. order in customized Foundation will a to efficiency is this managers.Another new as credit across to mortgage-backed capital and our [indiscernible] of recognized credit implementation, complex portfolio Credit with Credit asset prominent to from normal an $XXX to and preexisting structure. $X.X framework basis. end-to-end productivity This technology's is over an and pretrade municipal AUM terms consolidate open shadow we back-office prime front-, and that with a on coordinating Enfusion the quarter, exciting operational AUM credit alternative share securities. trades an compliance, we and investment tracking capture, drive middle- workflows billion be was our billion specializing across management, and with to deliver and Credit multinational leads New gains adaptability welcomed daily a of York-based front-to-back manager, completion which wins markets. a were for to trade across its business thrilled replace signed bank in Foundation with risk risk win solutions to of company support seasonality.I'm request, best-of-breed after providers.This investment in client. asset- efficiencies.Shortly an similar just QX recently drive New which opportunity and its capture, workflow in At structured several broad their business.This market acquired is fund implement equity real-time multiple now business, all to example will across from able designed announce the client one business and drive

Hong reflection quarter, in think geopolitical below year-over-year, the solutions and Importantly, continue and capital surprisingly, Kong the of customized Singapore, given team creative see which backdrop XX% macroeconomic year. Pacific, investment the but Australia. China East grew and Asia large box growth region, X% is deliver XX% outside into and outflows a it's last to the to we last and up Middle Not ability of revenue managers.In to from Enfusion's

of of strong and client asset our opportunities growth add our launch Hong large market Given in fund partner with addition APAC, Management. high-pedigree and to China remain with we brand and outside managers new Chikara positioning launches the are for choice to Kong.We the of delighted Investment base, see strong a

but coming up making quarter, traditional our Europe beyond as also we asset and investment type XX% of region. growth segment.In market, product quarter, Our we U.K. managers. managers geographically the asset XX% and wins U.K. ability revenue clients to as continuing from European strategy in of outside continue help money centers, Chikara deliver Not year-over-year high-quality fastest-growing to in confirm us surprisingly, such that This consistently we're Europe, first Middle East in win from grew accounts traditional to to the the inroads continues management client XX% value management Africa, are the with new win our the bread-and-butter win to validates proposition last our the be

basis, family office pleased new Europe, the to Switzerland On in we wins fund were see several expansions. X client-level in a account few and credit

asset only competitors.I excited would expand but to the Swedish is Given with an Enfusion's that is former the and delivers. existing land industrial proof our geographic was momentum, global share further unique led asset CEO Yngve single and recently our combined Nordic asset PMS East.A I'm you The and investment European we offerings as to the client to in by ambition also to Aker, its manager can strong its that dedicate plan largest Middle transition.The resources company, again classes. your provide manager, across point our firm Management a Management.ICP by evaluated reach. exposure we of Norron, benefits who that Asset Slyngstad, products, unique client geographies like market commitment to is with additional newly Enfusion is an Management, to the current firm diversification Europe story market draw acquired backed once share a that energy solutions to form Norges expansion products established Norwegian Bank Enfusion and Investment expand, an incumbent a Asset ICP not Continental ICP take to clear from attention business elected to whole presence and create both broaden its and to

slows, more APAC in While overall acceleration in for and that region dynamic, than compensating expansion. EMEA resulting the margin growth our in engine growth revenue is

opportunities our We products to tactics on I'd Neal a partnerships. reflect Operating like a strategy our to few basis.At Chief market and to execution comments time, have will Pawar, this go-to-market global and adjust Officer, continue make on

Neal Pawar

our our and Trium formats, needs. the quarter is of could of a it Portfolio trading our offered cross-section and Capital returned UCITS, Investor solution able with of Thank win, a not our globe multi-manager to Trium. as who explain call, We they business discussed features thus understand want these to Irish across range Trium's a previous you illustrates in can't Enfusion of in clients' greeting mission-critical team's on trip the offices. being of strategies, ability with a Asia me including past the you, instruments Enfusion in existing and the relationships this After Day.Just to investors to billion today's an example of the you opportunity handle several from Trium of event-driven, financial a latest managed firsthand managers is managers at our X XX% order Enfusion's or by base emerging in Oleg, to account and our across have implement new which businesses.Our their of their coincidence. upgrades wins $X.X is with to us the were we by version. to call, Day, to helped have market so client Cayman partnership Systems. do Hong nuances with upgrades or to aided quarter, ESG product been the as QX manage a assets This entrusted to hedge region, don't product.We're running fantastic either single such family the fund this were addition our in particularly software, Kong, share some And amazing I'm our market of portfolio Investor our Sydney. dedication out rolled rapidly wait with hedge software this prior and and and single few a In and colleagues Oleg accounts, perfectly everyone Enfusion system around related offering competitive enhancements saw macro to specialize only accounts encompassing It's equally existing onboarding equity, clients out APAC textbook chose We decided fourth value how quarter of market in at conversion new the stand-alone institutional this nor versions and simultaneously, fund you in existing quarter, funds are the a of under 'XX, want edge group in further of TCN of orchestrate [ grow a their to our that heard pleased for and warm to include was ability front-to-back and our multi-boutique SaaS funds, I has is to and allowed provide COO in its wins to relationship clients ] Enfusion's past overemphasize to have chance to clients management. Trium's over constantly of to XX our new our variety respond that ever-evolving expand our from earnings expansion. meet with region the to long/short how this represent Enfusion's to our drive.On that months experience our which accounts.One see full systems. on product grateful the they story London-based entity, timing all them We're to and us platform, of release a platform. total latest closes to to in XXXX, In everyone of expand our management My Singapore as version Wealth, the investment years the benefited but land-and-expand portfolio excited asset strategy. model.If win offshore multi-tenanted Retirement gave not the client management ensuring about and Utah platform.Moving a the entire with Enfusion thank XXX our not connectivity our Workbench having as capabilities years operate and clients offices to Trium.The with portfolio, clients time with for required. visiting a launched spend of software to XXXX, growing Trium you QX as QX XXXX.

which And moderated where our As we're with leadership, our market expand outside of Middle European had Tonsberg Europe.Many she QX Continental XX% Africa is with expect up our Europe, penetration, of continue. to Day, seeing deeper 'XX, is came we in at in meet our mentioned the plan the Oleg business under from fireside Lotte XX% a sales to 'XX. earlier, of opportunity our East line chat and you X Investor team. in runs This from Lotte clients. U.K. into trend a her to QX

ICP new to which business our For like quarter won consecutive Scandinavia.Lastly, expansion fifth was example, in on we in overall the touch the services. I'd

As last mentioned the quarter, onboarding have we we accelerated cycle.

clients. switches that switch are costs buy many I my than someone who As our to Enfusion has and in important We the had competitors. understand effort believe career the to time over both manage how to upgrades side, switching on is cost to lower our and already materially

putting outbound We efficiently emphasis running and or our more and benefit, faster, obvious onboard by continue that we're on products satisfaction quickly.As able than well ever to clients additional solution.Getting revenue seen us. high services from as with clients we've benefits. is clients recognize additional can an onboarding scores be and focus as more to to we has faster reporting wide-reaching on our interfaces purchasing this One up one as inbound more flexible receptive

to continue I'll scores a clients' we Oleg ways dynamics. discuss to service at find our to turn X-year satisfaction respond feedback onboarding to continue client here.And and to back our high, market now While improve are to

Oleg Movchan

market dynamics, inflection we're new As December seeing closures year-end for fund fund in January. an in from launches to

as due funds destination this for Lunar from New during hub recently, first are was for We core Kong U.K. launched although Year opportunities little observed seeing fund market.China in as of to as flows Hong the newly India, in has investment Hong the Japan and remains China have this investment Kong funding believe more capital, delays and operating we both been intellectual evaluating a been out Dubai, activity well into we some capital and the Singapore, and managers.We Dubai shift a and it quieter quarter in

after our We see discuss expect strategic these activity to focus. now ramp up events.And let me

healthy continue capital are creating throughout satisfaction customer to shareholders.We an people, our has investment new pleased in for remains on been our motion value Enfusion the return in at continue best onboarding highs. growth which and and superior innovation, with We and our XXXX. start on product with The view X-year will customer XXXX, of as and investment team laser-focused client satisfaction product

our engineers Our and capabilities to development focus product will efficiencies desk delighted platform times, to and to and self-customize completion best-in-class cost- minimize a our synchrony provide and even believe relentlessly focus result We a managers.Our in in this with deliver our systems enable our our customer deliver manner. first execute. more satisfaction.In throughout time-efficient clients closing, on team operational with is client I'm to help clients, team quarter with pleased services working times interaction software wait are and for on with traditional new team's workflows product results, designed more greater to capabilities shorter but asset in their ability and

to We our business and and offering expand to have product new accounts. current win with the land

We afford believe our service in road and Our us value expands the discuss strategic map clients and trajectory to this efficiency. to capital Enfusion's be on When Brad creates Rule we invest together, of platform and capabilities. teams our the company term.I disciplined relentless product added drives puts XX simultaneously a Enfusion scale, and we medium revenue approach call will our to our technology focus allocation expand to for on as account margins accelerates the management managed path the financials. over believe and turn now capabilities and ability over our to

Bradley Herring

an the Enfusion's growth Thanks, solid increase to everyone, year. employees, of quarter our quarter, privilege of reflects expansion last morning. we the over continued joining have another and $XX.X generated report market-leading combined global with for revenue profitability same first the thanks, this X,XXX-plus million, us profile.For behalf of Oleg, of On I XX% that quarter

points front growth of the and rate trend XXXX.Referring had our the for QX X% back growth over basis This book, from earnings of the contribution back coming the call quarter's growth rate to from Day quarter in Investor of we by and we XX% consisted between the our designation our the at on back approximately front rate book expanding XX% continues adding the discussions book. reported growth approximately XXX in last revenue and the performance of

within book pattern at downgrades normal these Day in than we seasonal we expected our and higher see. would churn back watching patterns to have ranges slightly the of the QX Investor both in are discussed figures While drivers, came we as are meeting, the the expected

and our I reported the Investor Day to earnings on and listeners out single lay materials fourth front forward, year.As our our reporting call, in As that to figure from review discussion are churn what revenue materials ARR higher a simplify are book in we was year-over-year would the on reminder, XX% last our reminder X% a voluntary and million, messaging $XXX.X posted quarter NDR order website.First from of back call those encourage the our to on up captures projections, quick only involuntary that last than we quarter a going and both investors. IR

impact quarter basis of consolidation last was quarter. the talked last headwind basis XX to which quarter, impact up consolidation from XXX%, and last points, it the we XX UBS-CS of on was our about year. for a QX UBS points until XX is to of this NDR what NDR The points reported basis of we QX in quarter.As will annualizes Our continue CS the compared

was approximately conversion decrease year.Adjusted for nonrecurring there $XXX,XXX, the in repeat the onetime we to with remainder of was first which ended by QX approximately cash not XXX free EPS a paid with onboarding to cash margin to not spend reported asset negative represents of to annual the of operating points trailing our the the lower of traditional where provided I we XX%, support SG&A million the in XXX This in gross report quarter, XXXX.Our for margin with structure. income will quarter.For adjusted we is flow and out QX or call flow XXXX, costs an close of upmarket client to to throughout of in sheet $X.X The FTV scale quarter, points personnel.Adjusted increased $X.X payment $XX GAAP on improved XXX% EBITDA negative period our free adjusted in of an there represents of and over segment, third-party significant of basis The no to cash down last from up of in to free last and XX% by call, was made net Capital like to same XX%. basis The margin infrastructure the is as margin cash $X.X have the QX to This for XX% savings the from of million, equivalents, the XXX% with was to quarter guidance a results $XX.X quarter combination roughly the push quarter $XXX,XXX, our points XX targeting that combined we negative quarter the was NDR XX% that reduced compared the million. due increased target distribution QX out timing XX% that of $X.XX manager to higher outstanding is respect provisions cash which adjusted the million. year-over-year XXXX from an year still service to year-over-year XX%, for slightly from capital from quarter were gross our incentives last a or leverage EBITDA conversion are in was due was up QX share.Similar adjusted basis which quarter cash improvement We expand from free that flow X%.GAAP service represents balance reduced per impact We year. discussed our XXXX in million Note a QX our discussed in X receivables on providers.Referencing I our anything the year ago. do to debt. functions, quarters, XXXX. that which over margin would adjusted out of a profit benefit,

Day previous gives us full provided both I adequate objectives support our guidance March.Moving growth million we $XXX our organic call. with on combined in guidance, and reiterate balance, our our at in liquidity of year will revolver, to discussed capacity cash Investor the that to inorganic on Our we

a rate guidance and million million between and between included adjusted XX%. million million, EBITDA As XX% reminder, a that cash free $XX $XXX and between $XX revenues and $XXX conversion

between stock-based For questions. expect and like $XX to full that, the please million million land for compensation modeling call purposes, to the go we Operator, $XX continue to up year.With we'd to ahead. open

Operator

[Operator question the Instructions] first Your Morgan Stanley. with from Michael is Infante, of line

Michael Infante

curious I'm resource how Neal, with and thinking allocation you're about Oleg the sales force generally.

You revenue some you're in different ability of obviously I'm toggle curious, of about on talked depending the sort helpful. geographic to various exposure. be like, seeing would But that what regions

Neal Pawar

This is Neal.

see In a at that recent our lot of terms expand, few wins ago other looking force that we're are talked the on expense sales there now, core call in continued result we're and the we doing regions. in that We obviously a in the to our minutes opportunity of emphasis Europe. about not region.Fortunately, particularly segment, of right the a of

have the invest. our not of segment.So client America very higher-ACV, in a grow in bit so more for and, And I continue say Oleg North about, Pacific we're pushing sort down macroeconomic continuing the we're that focus in our a still we complex, would and to things into Obviously, larger to reasons yes, much talked Asia on growing And little investments there. Europe U.S., significantly. slowed force as sales

Michael Infante

frame really I given more on quarter, early KPI towards the year acceleration in profitability, somewhat the the in the the full the outlook how and potentially on outlook. not ARR, higher it? Appreciate I particularly the performance or to the for was know it's NDR you leaves to 'XX the ACV. helpful. tracking provided the convicted quarter see outperformance in previously That's or wanted year, us either would curious and of you I ask across outlook but And whether end nice it. in

Bradley Herring

Brad. Michael, is that. I'll this take

things to the did of I we a profitability specifically.Outside quarter in did that call first I the that of in of kind few victory. One call, is mentioned the quarter. little in things the a help have us I that, early nonrecurring-type on think on declare mention

So of bit in playing we're the little the other some saw couple churn look things things we are quarter. little mentioned we first way the a we I on come like trends but where out, and around a good, just But for we for see the to -- we out. want to early want ourselves the year, get to and full about feel this really good we that we're guidance our ahead don't how going year. be plays But in of just cautious

Operator

Your question William of Blair. Becker, next the from Dylan is line with

Faith Brunner

It's Faith on for that metric. at ACV Dylan. I'm looking just

Or Given asset balanced managers, we should balance versus opportunity? the importance what's how customers? long it you ACV going forward? with push And way guys' new to upstream thinking these the going of of larger Is adds, the growth fairly tail the expect maybe what's logo right given be of about this?

Oleg Movchan

Oleg here. Faith,

funds, you go and as institutional would sell more granular into ACV will up. more asset encourage very -- naturally, else think way. to and about we look, everyone a managers, course, upstream in of complex, a larger in So move ACV I

above us large or chunk of pay clients our We of have a less. a us a $XXX,XXX, pay customers lot $XXX,XXX year that but

of portion but shrink, that time our it will shrink so over disproportionately. will And portfolio

the in of the well. course, is of reasons lower clients of mathematically because across are focused idea and is ACV But entire with portfolio difficult some And higher the so churned, we the went as with the averages on to are clients. sort ACV portion client base.So of this very of yields it growing particular much interpret one larger the the up case, ACV

Faith Brunner

could about more, if And ecosystem in angle. I Awesome. Okay. the squeeze one just partnership thinking then

value how workflows, As think you expand integration? can to your or value different proposition and address more offer guys support incremental of capacity you I'm leveraging through components asset that manager you this wondering of these traditional customers channel services

Oleg Movchan

Great question.

And and us relationships, us enhance content, referral-type those So proposition go and us where there refer of about with given help that proposition and us client. outdated, Different bring the certain One versa. and models, about clients we pure capabilities, solution to risk actually seen or the the both data. here. [indiscernible] can vice the we still sell in we're help have is provide help we which to world the performance hand, things, optimizers, where accentuate relationships see live can some a where of entities We're think say, We've clients to like and sell examples abundance And [indiscernible] there. vice is maybe models, value joint ways. attribution, an when opportunities Neal help other one we table. this technology talking us together they sell to partners clients, where have chime doing another value compartmentalized a couple versa.The those in provider it market to they I'll risk we is entities way

Neal Pawar

Maybe of to add couple here. that, to I'll a this give Neal, examples just you is

don't provide that So prefer of company but trade like to capabilities we to clients. a use connections we this, Clients platform.So They FundApps sensible others a in deep fund solution and to way with themselves.Another with. investing connections quickly this It's provide to of a used called add to number myriad vendor great have that example into partnership we that sort within have It's because them of to really our much data with have to and there's hedge and our more community a we've would partnership numerous to manage we're great pipelines quickly provide value can reporting ourselves the of that leveraging integrated integration. of the a a example regulators. a data is CRM and we Backstop. sort industry-tested not is we need building build clients, think a the

Operator

Stifel. line Your of next question the is from with Lane, Jeffrey

J. Lane

Parker. It's

impediment there asset with managers play? at in is primary referenced for these looking to Or and time you're been lower being Has other that You the switching dynamics convert the costs past? that Enfusion.

Oleg Movchan

in let fashion, So our me start will answer. Neal complement and, usual my

impediments, pain this So the in many clients, their a and incur, cost of decide a translation. that larger run, of risk lot they both things, they cannot also of they fashion. switch.We and to then do process, into should a when onboarding everybody choice acknowledges and almost about it's we that just incur with talk visibility everything modular approach and but currently right, to they And sort pain help our risk exceed make concern the

a down do product, organization, our class, when So with by where onboard sort same way, land-and-expand by a either start system, products, we just sort by kind of, super important. horizontally. investing in then to accounting.But of in both products ability we platforms [ we division, comprehensive default traditional us costs and down onboard broken and our plans we of to then asset in addition continue enable SMA We're sort are and approach, we a of to the the up go approach, that to it's and portfolio way the ] management portion switching a and onboarding of Or do the self-service it data to the flip to work enable more on themselves. much and to tools same clients do use exactly migration efficiently and, the side, integrate offer

Neal Pawar

Obviously, between obviously ranged converting clients non-SaaS Just companies, switching just Enfusion is to X good. to are time eat to worth onto not for software us, that are who clients up average down.But and you we that's to time There's hardware of would and the our XX% the the it's to frame majority over the alone. say to platform chips, add the saw by work And platform, chain to think the run then we just that, to benefits with trying pandemic this pretty which a over or to this that when and sooner. now reap computing that SaaS-native to getting able demand, procuring past hardware months, bring supply we our as in time frame. want clients potential AI switching has a the mentioning be with can can do get X that quarters implementation often are that factor for Oleg, the more XX% X challenge for to of who shortages I

J. Lane

there you maybe more that in APAC on the can interesting. opportunity I like region. layer nuances how deeper nuances those Neal, impact you you out called and, cycles wondering market here, stay deal if look on view go just to that and your importantly, some what Very they in market. a the you're with was seeing

Neal Pawar

are is at one clear, that, when EU was as are just recognized across more each as you the they're we we we of to, the regions month-end me way the saw sort and do the loud need differences and or region, swap those prime let comment lot region different. to not our make is brokers clients in not admins. in of just trade their we at and products their using to and that a to one some well, from the make country I were as not compliance when for that to in hear and trades that their perhaps this we country.And European align can clients look some adjustments look we way try handle us so picture talk APAC we clients that who about there message even very you custodians Oleg just first so talked have the relative and sure maybe nuances that that there, the went they're we've financed do a the especially macro there, heard way in books is referring noticed of week.What was rules to If then we accounting, APAC the talk one at it's to financed there are on Well, together system and can their or of those last

to also think that witnessed, question the market is nuances a trend to.But referring share hand those one, in a that. was it of over I nuances on thoughts his to your are Oleg of I'll we sort which the and macroeconomic I there's So is right particularly APAC, lot

Oleg Movchan

Neal. Thanks,

economic capital theme being the opportunity like Australia concerns a Singapore investment also China seeing of an East Japan, pretty countries said as see still leaving managers. operating people capital strong it's Kong in the presented extract [indiscernible]. We're slowdown on having region. as exposure and and and focus differentiate APAC that APAC-centric and kind of managers and perspective, going just Parker, geopolitics, from of base places Hong the being And and consistent typically Middle to like that giving try So of and back to to sort block and the highly able Kong investment on about just protect Hong fundamental China we to remains to versus for that, Hong Kong.However, India themselves many within levered that one China and they holistic region,

in to Kong As brand shifting and, of cover portfolio. of specifically, Middle APAC our reiterated expand Hong we've you know, presence multiple have our course, a equity as our part strong we around East Hong broadly as to the attention but, times, Kong, we very EMEA

Operator

next Your Kevin UBS. line of from question is the McVeigh, with

Kevin McVeigh

of you've that know X fees of you the much Any savings? just about months that changed cost Has time. to talked bringing efficiencies associated some I to bear? and X sense with the the of implementation been given

Oleg Movchan

repeat Kevin, you question? hear really couldn't the can We you well.

Kevin McVeigh

cost been cost of about know what the you talked you And your the more implementation type of folks What's channel? implementations. Just the clients months. X savings efficiencies in and to more I drive the are average as X cost? seeing

Oleg Movchan

to the number client. from Well, X as client kind look, implementation costs to X it's Again, an vary average of I mean, well. months,

plans be it We'll amounts. up You clients different drives at basis. actually don't the and bit [indiscernible] think just little can to I it a of on with peel dollar see look to summed back what have of complexity holistic the cost. relationship a sort

part about And of -- just will is you take to longer, it and they when if migrate. sometimes to software, months factor go means people into instead want it's to X things make they to It's everything systems everything becomes that about smooth it. how from XX they it's they clients, much data So his lifetime would want of months, probably take spent just When sets, data emphasize this about is lot think that take sure legacy to the it modules live, it.I in to I what need So assessment. the can production different right? us, a of actually Neal and actual longer, little risk. risk to migrate mean, think hardware, thinking you portion, a want they

multidimensional the relationship a it's holistic of perspective, on from sort a clients of price our with question.But stand-alone basis. elements we So that not a

Neal Pawar

of Oleg or see portfolio management said side components. often to were. tools, which I'd to only because, see are into structures you what the have can a they're and a that bigger having hard thing exactly going reconciled transparency And is independent the on with been their the our order synchronized systems I to most we our keep they're obviously, can more what -- where to cost much add and X don't of table, and we consistent, they accounting the typically But like, other savings obviously X it's what preexisting adopts get they for mutually savings maybe then clients client tell management single fuels IBOR tools tell that, replacing all those replace because our savings tools, a that much key when the and

to obviously wide those a depending savings on they how of scaling our product is there So a range adopt. set factor

Kevin McVeigh

us, that? was exactly remind helpful. then, you very of Brad, the can in That's just And what $XXX,XXX quarter, nonrecurring the savings

Bradley Herring

really with do last biggest job did X with our receivables. for the quarters We had a to the The good provision XXXX of one in collections.

into So the translates you use reserves. calculations that for then your

and the very position of I good We actually that took receivables, that's given a just up going QX QX. in credit us recurring. small a collection for it on kind to it from number. we see credit was it. fact our provisioning the We're is open But go in quarter position perspective, how normal ended don't a in provision debit from don't QX a actually a of see which back that against continuing. So to actually our to reduced

call So that out. to we wanted

Operator

with from of the is JPMorgan. question next Your Alexei Gogolev, line

Alexei Gogolev

further you were investment classes, saying you processes. a the Investor product of capability for of build-out Day, need those managers asset At already possess to but mentioned quite traditional you you cover that lot and sort decision-making that asset

you So customer could those here? when And you can maybe think build-out talk do needs? meet product about you the

Oleg Movchan

compliance logic apply more much more rata for, with like, front, XXX,XXX more complex in just scale XX we and do just level rules, hedge say version, more for there compliance a times, that each that quantitative-driven has pro Sure. has of ad relative you like, which the level, is, asset Workbench on discussed first have this been released work the to Actually, that allocation this SMAs high-level and into post and limits can decision-making [ at where its of for to elements scale basis. more XX,XXX, will complex basically is information is ] construction [ just hoc that. what And class Right as with actually which do both expected a and very and constraints, X in fund, set into incorporating sophisticated the then architecturally let returns, then thing next about. investment regulatory more is into to and the so forth.So will Portfolio piece. we news systematic one portfolio hand, I piece with allow but heuristic dealing are all that so have into but And portfolio of then and accounts, the so the to system stuff with, now, much be be portfolio benchmark do, for implementation pre well. us will lot many process and on up our security good system to it's broadly. can do rebalance investment deep-dive portfolio can at the so ], on Neal definitely translating portfolio optimizations you dimension can a sort compliance accordingly.The we're we rules construction rebalance that you and stage account own part and little then with, that constraints.So about One allocation mentioned where here, capability I construction much is right, and portfolios the taken portfolio just a absorbing and is evolve apply the will we then instrument complex portfolio that would is on you implementation the guidelines,

So us product better. and money the making it's time, of just investing a matter

Neal Pawar

the we to for of over covered have would on compliance the and I suite, time. years sure would clients for single to our clients, get fact add a more there are institutions future example, of it. that they our tends client for more good that platform as pushing that Today, just I a aspect, I type. onboard be as single the a we institutional you on it us to segment, we lot for The be especially out.And the for change platform. to And starting make nuance I to news a all that timeline self-service incrementally every every we we every is, the we our most to maybe those us is we're to handle That's and add, to But a things, out more make live. things to that then of the do for able the these want weekly control single in make onboarded lot support makes couple desk, need change it to with think, features attractive you. the where things a drive as mentioned, number more you we we releases, complex it's the want take say, to of of be only something market Oleg, mean, in functionality other to. we're do of going say to queue have clients more then go benefit ticket question because to we've roll platform, able the prioritization to the log Larger, themselves. address clients have that quickly your demand

Alexei Gogolev

X%. the if the about for that the does churn quarter, you X% first comment year? that the ask you regarding I could normalized you churn earlier about maybe Great. think it And your in I Brad, level was outlook elevated mentioned the in made to impact

Bradley Herring

the churned small have as out little number doesn't. I'd doesn't. clients. year churn survives the out, with as higher, There's than in of would QX. go pattern who but it That because higher wasn't a the we be who impact and little what you really call No, but highest and anticipated, tends customers normally was what associated of was kind those previous through to a count as the quarter churn It a was seasonal counts, much

So churned it's that and a then of who what's of combination the churn. impact

something So at. wanted We say it call we're there's looking out we're watching that's just to what to closely.

Operator

of Sachs. Your is the Gabriela question next Borges, with from Goldman line

Gabriela Borges

charging terms you to sizes monetization Perhaps when NRR? or on Portfolio remind bit Neal does to does about in for that. think you much help Just around Oleg of how start, you land? us How think How you for strategy how it little it about contribute much deal the a Workbench.

Oleg Movchan

Enfusion. This you du jour actually thank us topic Well, for much. very at is

for. all and broker right? connections.So sort strike SaaS as actually a we a that we're developing our premium been the pricing the and balance with has the So of per actually more would multilayered, as not it know, license, sort would we clients instead traditionally, right, pay clients SaaS model very seat, price generic, make make platform to that between model have, per basically you like, say, money and actually better features a all be clients to on or not value price technology now simple or and all that we of, use fact SaaS and and the not It's just making willing enrich able differentiated system we I architecture-driven then of need fact features

discussion better how big, us. of or It actually for will larger doing particular reflecting us, revision mean, it will just clients, And a in is better result, definitely so topic big other, granular alignments market, go continue in system we without for right? we are for clients.So wholesale the better kind one way to to economics I a for this of the in a of more simply the but Because result in pricing, it also [indiscernible]. can't we our make

Neal Pawar

add new we this wouldn't in helping business have that, to to we a new sense, functionality. more are win just us immediate the normally Workbench that the didn't in Portfolio maybe And if features win

So that's also the expand giving relationship already opportunity contributing existing to our revenue clients. us story.It's our to with

also fit that want for that it purpose more it us adds then, client direction thus and look and larger suite. market for making thus, while to tremendous drives that their that to in clients moving doesn't on add the us, that fit itself product, we're also right had within growing functionality contribute obviously, directly conviction validation we've that we're the for And then which additional revenue, gives this at revenue.And seats So and in getting the tremendous that product we're that for, segment obviously, product to into.

Oleg Movchan

differentiated I is the Just, outlined obviously. all Gabriel, this have is clarity, offerings are hope logic that generic. Across the Portfolio discussed product that not -- and for Neal just board, that's we in I pipeline other the Workbench-specific, understood. not

same will and functionality when on apply we layers should so basis. price a those And go-forward framework of this

Gabriela Borges

companies Right. the or have to that something of last follow-up half-weighted about that year. in the the Is up move think upmarket. think you're about The see for to us seasonality tend deals the more I observing help you specifically, how the we over large seasonality with your appreciate the more And Brad get on as about seasonality half you sometimes years the couple is observed color. pipeline? of tends because how business. that done as back to back of move think changing market, shift of Enfusion And

Bradley Herring

question. great a It's

see reassess structure, along is which weighted I think talk to but their more In That book, don't I in you you other much to be what even front of first where definitely delineation QX -- some go the we've seasonality mentioned. way. downgrading the in of used the If about than cost kind bit there. book seasonality, the the half book, the book/back customers before. they first whether the year.When there's the also it you comment little typically a it let's some front made, it's quarter the churn not, about tends quarter, back or in heavily do whether they is survive

what a Neal you to and front half.But see when that coming us in asset the little it earlier, that times get longer to the in implementation to booking pick some up back of out book begins into less get of mentioned QX year, managers, customers smoother. monetize then with for begins the more the tend as are prior You

and months. longer-term tends So to is from what of revenue half half a mentioned, year you take the the for, don't accelerated in necessarily what the in that out year, clients because then bookings revenue second longer to board the those gets to of X bunch booking see second of we drag the X

So revenue the it while near not in some pattern there's seasonal how as significant. itself, affects is booking

Oleg Movchan

because that past. emphasize actually is this the analysis to like would I seen we've an in

past, how we space. asked on it been think about hedge to the the and has flows funds, related closures the go-forward to a out In to seasonality launches of more You basis. to in capital

As we prevalent would for traditional just go into more what Brad perspective. segments, be us framework expect I described from a seasonality to

of perfect As kind machine, converting if onboardings patterns, and And right? well, dial those kind onboardings we part so revenue as themselves and seasonality bookings bookings will, will up of to stagger, smoother way sort of will our recognition. much you will start the smooths flowing and revenue, the into once as that is revenue start the in a hopefully, we stagger in that of

Operator

with Bank the line of Ikeda, Your question next Koji of America. from is

Koji Ikeda

circle the growth guide, this guidance, guidance The end the tells end ask for growth is of more X of of I wanted XXXX; to while a million why deceleration the reiteration of much the low year. story a attractive $XXX really back And is range here. the for to million the on $XXX I story the acceleration. stories reason guidance high

metrics forward clients you the as up X help us key help of So end could average or metrics contract take us value, those to metrics the in going triangulate guidance. ARR, here, X key the and maybe at I look NRR, where XXXX as

Bradley Herring

There's Brad. put Koji, It's still left still quarter it. we're X take exactly this range play to -- got is I'll a in. we out. quarters why X that. We've on

wanted and patterns. to production. -- combination our of in our revenue lot book. those of is bit year.ARR confidence this certainly to watching into things. group point front watching watching a feel to provided, the give the with number We're of make place we noncommittal to Any do range. but We starts long we're of we we're insight good some reaffirmed our full range for guide still that watching sure little we the in good it So We're a got this on a provide we to X comfortable mean, is numbers ARR. back booking book a NDR. kind That's probably to I how at in at if best the of want to I itself. would I I patterns that's We're at was way the would would indication I look one look a your look seat. book But look in go.So at we've at. performing

Koji Ikeda

just deeper let's That very algorithm months, makes X from a and months. say markets growth been change project seeing out sense. to digging next that way we'll about over And that just the over the maybe past the Does what business? for on holistic potentially the in XX follow-up the you the level, think similar of are the just a we've kind environment, demand and

Oleg Movchan

same it's the approach, at the all. Not machine. doesn't. it I mean, same No,

You with plus to relatively have, market. And of simple and net Rule algorithm. at growth. retention we combined asset client that just discussed basically better get it more the us get to clients, growth retaining new will and occasions, in on capturing XX, we multiple economics have clients new management institutional sales It's a with

Neal Pawar

And maybe still are They're add, still constraints. fee under to just pressure. budget we're under clients seeing

cost in look that obviously, an ownership looking to their And them systems, still their a platform of very Enfusion do for they're ways they more way. they when can total operate gives their so And option at different of efficiently.

that in our future, business think given we foreseeable And the model. see works don't changing so that well and we

Oleg Movchan

pretty quarter, defend mix launches. conversions. Like ] book quarter this There in balance space. a the versus our and at nothing we launches grow look how how time terms And there. be share We is control over We of [ to we we market share evolves good market had that ashamed and of. market

down; slowed Although, to that. is extend as reaccelerated. you our APAC around strategic EMEA direction know,

downside and Can COVID diversification there through 'XX, We've opportunity go would to everything and especially environment. apart oftentimes our fall discussed, benefit And situations, that Of it's business. in capture world shine lived course. as for So bad? the the all strategy and convexity great XXXX Enfusion this delivers. our is potentially those we a profile of

Operator

the any time, this turn further there questions. will over to at back no And Oleg remarks. call are for closing I

Oleg Movchan

be, for it's what Well, work framework, but competition. we're thank vis-a-vis absolutely course, differentiated you the our is, shareholder deliver your so Enfusion this to very matters. capture what for on are what we that potential can about much we of feel on insightful focused for shareholders. our of remain the to our toes on do sure questions, what to a focused We, us sort excited value making we and and of strongly There's lot of for creating to promises keeping company us be, and going full on

Operator

This concludes today's Call. for Conference Enfusion Quarter Earnings you First joining. Thank XXXX

You may now disconnect.

Enfusion (ENFN) 9 May 242024 Q1 Earnings call transcript