ENFN - Earnings call transcript Q3 2024

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Enfusion's Third 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.

Bill Wright

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

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

Oleg Movchan

Good joining thank you XXXX. to today our for and the quarter of us results third morning, discuss for

of execution about strategy. was long-term quarter This our

with initiatives We attract and we retain are up. are Throughout strategy that us segments. to to have expand products our allow line over to value see market the been starting larger to the our clients pleased past quarters year, and into several that aligning add delivering higher in new up-market

will wins our and today. or subsequent some proof product on these call developments We points discuss of

strong narrowed which XXXX will this published quarter third top-line full year growth As later. morning, and from XXXX our you our XX% see we discuss a reported with release earlier quarter Brad guidance, earnings can

revenue on remain on medium-term to track the XX% period. of XX% rate also over XXXX-XXXX to our growth We guidance deliver

expanding our is up-market in confidence investments as our geographic because our broadening are capabilities this it to further our can in we to opportunities, product new capture offering broad mid-term believe achieving our ability platform on accomplish Our adoption. business while in we based doing product guidance win by already footprint. I result

new previously out our reach. that capturing of global expanded are reach to suite product business and We due was today

to employees will our upgrade X,XXX ever are need. than last constantly striving more deliver the Our clients

walk XX% some million financial third year-over-year Now let me XXXX, key $XX.X QX from quarter. representing the through revenue you highlights growth. delivered in in We

QX QX EBITDA later. on will Third $XX.X Brad dive million, half XXX, healthy continued market to conversions. count represent year-to-date for XXXX. us portfolio captured that brand had launches. XX in launches new XX from Enfusion tend launches, We track since their a our QX. EBITDA deeper up XX in the This to year loyalty best provide our quarter in totaling totaled record. The previous strong brings originate highlighted translating the to on new Americas, strong count QX, total Fund versus We of clients XX a from financials of signed adjusted margin of firms. From XXXX, in customer wins a a clients in new signed to year puts launch client the which X for adjusted another into XX% first new have the managers XX.X%. firm standpoint, we XXXX, which U.S. from XX% launch

client shelf the new of in wins $XXX,XXX expanded of year-over-year typically XX% ACV much our for and standpoint, larger firm from to our growth. while rose QX, represent which another direct is record accounts. and conversions Overall booking adoption. conversions quarter of XX%, are account a However, this Several as bookings represents result a represent firm continued launches product X.X% are

and in new saying our been Portfolio more to to including Workbench with tool, our profitable me As many strategy larger relationships have stable times, central revenue rollout profiles. have up-market, year, heard product our you this more leading expanding

The second reach. allowed out accounts our and effort materialize. to additional included serviceable release to excited in that win expanded QX We're our very this Workbench TAM previously in that us of were enhancements see tool the Portfolio of third quarter

Americas, institutional strong managed to commitment The the to management on focus the cash pre-trade office, constant to identifying that was on team attractive segment. I'm sub-adviser for thrilled remained could future. a Agile flow including this almost how compliance, opportunities a scale Enfusion. momentum formations year from features Management. a risk quarter. space. across that technology Agile we will top-down $XXX needed client to notable Credit management and investment as from year-over-year, market Management able in Investment Agile our efficiencies cash fund with fixed in as our modern for operational this continue style Agile offering. management assets win management clients to and the enhance in grow Fund, to XX% that share in services administration. the a and Enfusion's generate comprehensive following me signature has Agile up drive years. When The the to institutional platform has we iA XX Investment we last chose Enfusion. and asset had front under them million with Florida-based Bond maintains roll rebalancing, we both last ensure expansion about across our was up illustrate Agile Workbench construction, that significantly with Clarington combines the the assets XX% and Importantly, geographies quarter. analysis they very exciting in firm wins is Plus broadly, they Enfusion announce continue They operating team's reporting management out year the the revenue into that income few Genesis that back asset OEMS unlocking with In utilize partner appointed and to premium Investment product risk you bottom-up This have offering expanding been expect portfolio book. Allow new process front this in provide signed to is revenue the XX% see from while Portfolio and for income The defined grew wins streams. a Core under letter

has with notable win which strategies the periodically. operations. Then that Frontier Frontier unhappy which to exciting lost back share, lined coupled dynamic to with This compliance could is robust with up-market very pleased asset international firm and security space. markets, contact is and rebalancing it with provider in a equity realizing asset needs compliance with latest in in workflows, a prestigious only and our institutional Global they enhance our stayed to not asset nearly provider, space. was they among legacy Workbench, allows was with also Another manager the X with their Enfusion engine. institutional am recently, up quarter, investment not Partners invest us existing and an and engine build markets, partner I expansion continued we Frontier Portfolio global, this international them opportunity but trading that but their of ago, business demonstrates The provides we came management coverage. Frontier a their imperative portfolio small-cap a partner years their the well-known manager support. into a which transparency data, win the in Enfusion

the a have pleased most effort the team's throughout importantly, to execution, results. institutional year, management, and and more win concerted effort, asset made we stated we've with As I'm

leading year-over-year the XX% quarter amount the modestly involuntary grew Revenue EMEA. an we These EMEA was unusually in the our in in as closures QX last but churn end several quarter, QX of beginning best for indicator Signing quarterly of impacted bookings saw asset towards XXXX, a QX growth. the at positive QX. growth of from down also trajectory large future high new for Turning is and the history. managers

asset newly continues be We has institutions and Enfusion's won Norway a equity shipping industry. growth AS of and Astrup a Fearnley trading of and the asset of formed Norwegian arm the century Asset management and will management excellence Fearnley a account this expand Scandinavia over Management. services. Astrup in As quarter Group reminder, credit. offshore another areas to us. Fearnley and within The be region to mix a history, continues is growth Europe presence This with in represents of long/short financial diverse for a

and on East have As focused call, mentioned Middle been we in our QX Dubai. specifically the

I'm of that Dubai. happy account to a efforts, share in we these closed another As result

are a success East. hundred to Capital, complex several support to the Enfusion classes million selected that growth has further in Dubai, announce Enfusion's workflow Middle a prolific presence We their win and Magellan to in is dollar pleased and continued the This multi-strategy asset launch requirements. testament

and proud with Enfusion selected has their alpha-driven OEMS, our are TT strategic for PMS, and specialist investment London portfolio an partner International, space, construction to announce we Lastly, manager, as rebalancing. accounting that

enhance platform. our existing multiple front-to-back operational evaluation, workflows to confidence efficiency, decision processing. our market in set The their their replace thorough solution a straight-through partnership Following streamline and systems boost underscore with is to

quarter. Pacific. Turning year-over-year, last to Revenue X% Asia growth grew year-over-year from moderating XX%

may the As highlighted recall, you with quarters. the we those geopolitical we're and APAC macro results. given trends in capital headwinds, these And past for few have pleased outflows

management the research, to we from is good We following with the traditional and and managers our gains asset services enhance to help front and managers is a asset allows which Guosen is from asset investment selected of to how banking financial to their diversify market. The ownership. with share systems, grow accounting latest the asset is to management see management representation and as teams Chinese win X help services healthy investment through client we primary weather cost hedge Enfusion of institutional including optimize division. are sales and of and growth continue them partner investments. Enfusion that our to Guosen total market operations. business. incumbent Enfusion their office among sustain trading, continue a technology was the system, system conditions and to and as hybrid equity macro their advantage impacting order among company all-in-one operation their sell-side, fund seamlessly The trading they them design buy-side, it connect provider will replace management their private scale their services and

quarter $XXX demonstrating due Kong few they're selected with I'd services. feature China been within business. and latest investment to grow Enfusion Another trading have make regulation. At investment the offices them Kong. position in and our checks, comments their primary COO, helping functionality managers is the this and market investment manager and has to services Hong in their product and Enfusion million chose long/short Neal AUM EMS time, our as on help a within Enfusion compliance scale the compliance It to to also to among They enhance and pre-trade operations. a our mobile like of always point partner continued proof Hong their app equity leadership and ensure provider the to key this with technology win was Pawar,

Neal Pawar

marks Thank you, month year at my Enfusion. This full Oleg. first

for client focus have for of portfolio add that income rebalancing This release added We advantage product more helpful, capacity native so grow has managers is a they're book Portfolio that engineering new extremely of that area new the Over as for features something our offer teams adoption good of mobile new pushing adding have so the A is helping the to capabilities like major strong tools us road. recently, are which is a been for to quarter, Workbench. fixed portfolios, can product our cadence past unlock looking most past routinely back Workbench, a when product and Portfolio also our can we new developing rate of key year, opportunities, report increase as a are we capabilities manage their weekly to clients. our to to increasingly velocity our the is book. This our especially well we that great while existing on reminder clients, of helping out portfolios. the ways that Workbench, clients, to we the several including enhancements front for

our a these the is proof landing the capabilities nice Oleg, front of As play asset in customers is TAM. quarter, Enfusion us were from helping and you how several a table new some the The serviceable this to part book of addition is management heard Workbench Workbench our grow clients expanding for of Workbench point whom stakes. continues

the a upgrades also in delivered first of offering. have our We to managed series services

as As accounting an mentioned operates our clients' shadow the that accounts. services of provides providing previously, managed our for client's organization, the a we've clients operational extension support and dedicated team

the It a last. visual highly a set better services product. This dashboards their our measure beta-released means managed work no managed is to went first we've subset clients to was and clients we intuitive release and launched. quarter, by the teams to track out of and first this This significant is enhancement service technical it for since of made services

adding a of our in are We the number months. new services managed platform coming to features

while hence capabilities our We to the also margins are user leverage the increasing and services who also and enhancements managed do give clients operations experience, to These very for for not today. will improving business. productivity us us product client managed both services focused new on upsell

We released we system complete a online documentation, also our have a reboot call to Violet.

in to along will ask documents, all over regarded questions to problems. we all can be documentation links with have generated beta as through and the source Having given will and a We previous clients and loop answers solve of AI huge leverage Violet to what upgrade clients closing beta this clients the opportunity the the is over has our out QX. and search and XX to rolling get Violet has the documentation, prioritize us we in of our in is helping next. feedback Violet cover it employees release so the broadly

you've the Over talent year, of into the firm. brought some also the about heard we've past

several hires including OEMS, investing We key data, to compliance, product the have analytics. in added team, experience senior and areas, user

Of Head algorithmic engineering on work the oversee appointment the we to as map. Arman announced organization the are teams where Overall, team, putting Head trading velocity with of we've continuing the continued throughput. engineering to he Director, served as product is Arman course, new works our We at And remain of platform arrival that clients it Managing comes they us of been you our can Arman we with with our we're can use. and systems. XX our need. And to time investing Instinet, our capacity. gaining a by development upgrade product product Global scaling delivering our good low-latency as of turn Engineering. the leading me to back more also Technologies, with Arman's that, of will to Liquidity grown recently road will where ever engineering they year-to-date. lockstep last let have Artuc in We people to Oleg. it over in see, as perfect provide we committed enhance we're pleased so engineering from our

Oleg Movchan

Neal. you, Thank

has highest for XXXX. on U.S. our since launch strong and track win dynamics, to we're U.S. As the market continued launch have market count

the As big you share sequential expect, Americas as sales generated contributor. I'm an EMEA as point of at largest new third with the excited to in average XXXX. which may our average ever a the deal client our highest its region recorded size size see XXX that and a quarterly improvement, EMEA bookings as deal team is Xx basis in quarter from quarter recently the we first

new historic core U.S., added quarter product QX third particular, to of we our From and our of healthy a generate our these markets, beyond previous U.K. core Looking expansion. choosing average unit continue of office Hong above In clients new from above which Kong, markets are of front 'XX of our clients new side, quality the growing and came include XX% since geographic XX% of economics in the well outside in QX of average XX% the XXXX. highest since front saw well we average and to Hence, quarterly on improves accounts and size the growth OEMS, book. our standpoint, the XX%.

as flows our strategically the our wins, Middle Enfusion continues view important corporate of an Dubai. follow our and have We As be footprint reflected the as in growth capital. to strong, of momentum been we expansion East region we in in evaluating as for the recent talent

road participants continues point instrument private we the view been to the on our road have aligning past credit Additionally, main capture TAM data is and designing as pain the to for and the related private credit quarters an our segment. workflows. In market our markets team data up. work map product several map everything around integrated build doing and product conclusion, strategy we'll adding in We new

on As and just we're Investor at you which up-market laid road this executing heard from early out we map year. product Neal, our Day our strategy,

existing and International, clients new proof The of expansion products reach been Enfusion by product of institutional marquee revenue will ACVs, quarter, sales client out clients. previously won Brad wins. TT and segment, hence, and the in by over to points we've in of this management successful were key our institutional the is bring growth discuss multi-billion-dollar call as reflected our the received up-market evidenced in financials. now have in new asset have we Our as team increased such by out footprint our clients serve as adoption, segment. And I rolled execution to now well and positioned XXXX market The growth our turn our to

Bradley Herring

for us Oleg, joining Thanks, everyone thank this morning. and you

XX% of last same book. for million, book consisted back Day quarter quarter, For our X% the we discussions of the increase our to the XX% revenue of calls, an descriptors previous quarter on the and $XX.X third XX% the used from at generated in same front growth Referring from over year. Investor we and the

front value Our strength as continues growing book proposition continues to to our resonate segments. TAM our across show

are the represent where conversions of year-to-date last of at and same to competitors. bookings good our were running and over time our XX% continue off they mix new launches Specifically, year a

book as Additionally, year-over-year allowing in X% we QX on win accounts back passed see bearing is continue X growth and in primary a as contributed Workbench, Enfusion us basis. product that previously a on fruit book Moderation to our coming provider. Portfolio such initiatives, The from the to back sources.

between are geopolitical surprise which Asia, organic we lower we upsells a downgrades, recent shouldn't the and net given to refer be our First, growth, a net which seeing in as headwinds.

continue OpEx their spend the softness We hedge that clients. growth scrutiny our put forward, growth clients are heard with is growth our seeing just Investor fund year. contribute this earlier to The at ahead communicated amongst will book have we our feedback election. our slowdowns, on uncertainty back domestic we organic as general overall Despite that to going also extra upcoming I in X% recent X% have the of of Day expect

temporary our back actions in pricing well more the accelerated upcoming book will our be believe as Going softness product across of forward, we offset as by this base. deployments Neal customer than spoke

ARR up was time XX% million, that what Third the the QX. $XXX.X $XXX year-over-year quarter higher proud this ARR mark. crossed say We're X% and our in represents first to than reported million we has

impacted quarter, XXX%, for the broker-dealer NDR the point consolidation previous on percentage the NDR by which X with which in from the as was Our NDR quarter negatively book points from as is was the basis lower discussion our XX the down quarter. well Consistent growth of for back the X reduced customers, revenues by quarter. by approximately large

As a reminder, impact this off of in that QX will roll year.

increased is XX% represents $XX.X basis adjusted in the up represents which over profit This of last year-over-year points year of in an and gross by of gross quarter margin QX Our margins. XX.X%, gross million. sequential third to the adjusted adjusted expansion quarter XX

costs. Adjusted quarter cash and is which years XXX% pattern early year. SG&A the margin performance, due in this over from in flow functions of XXX driven the from XX% last conversion free QX to an the for in to working up period same continued by with consistent is XX.X%, basis in pleased flow quarter services. Adjusted our given over cash the same few normal net is of points our of million $XX.X represents conversion This cyclicality by EBITDA line was our ago. of a in over XXXX quarter capital. with the past This was for the was year up is $XX.X last XXX%. of over quarter the which free million, lower the quarter and are investments scale The improvement corporate compared results We made adjusted a client we QX for expectations EBITDA year

EPS share $XX million no GAAP adjusted X million cash trailing for count debt. the our $X.XX of million, approximately and was Adjusted quarter per cash an XX%. net GAAP quarters, income the count net at produces share. quarter per XXX with an outstanding $X.XX conversion equivalents the flow in of of adjusted a income million $X.X was share. We the of share in same ended which shares on $X.X For free average results cash on EPS with

Our continues Day our that growth of us organic both adequate objectives and we our with at balance, discussed combined our give cash on capacity in Investor $XXX to inorganic March. million revolver, to liquidity support

to last and performance the want Moving on highlight I trends quarters a for that summarize year-to-date year to our for minute a the our guidance. few current revenue tighten take year. full I mentioned to performance. X important up estimates

drive So book back $XXX convert front that to booked take temporarily previous our strong a summarize, visibility $XXX impact. With the I've in several to our into in given customer calls trends book into while tightening growth have to new and to guidance near-term client that signings quarters back while revenue, we are moderated. is moderation new the million mentioned continue context wins year book to in revenue QX, million. range more full of growth,

due cost management Our trends in disciplined profitability and improve continue to to investment decisions.

with We cash free in variability $XX guidance year-end. XX% are million. EBITDA not guidance original we flow guide. between of range are million inflows the to consistent this which to reiterating margin see original XX%. our given to at regard and midpoint, range tightening outflows our typically therefore the cash At an we year We're is $XX With of and our full tightening this land XX.X%, EBITDA represents conversion,

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

Operator

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

Michael Infante

with high-teens to clear being start wanted of really grower just exploration first alternatives. valued It's with a margin business strategic strong the I the isn't that like expansion.

boundary the that private? to it whether on be decision your would on public state business the dictate stays great today conditions just and thoughts or not the your the about some of get you Oleg, business how think might So of or

Oleg Movchan

we comment policy, a rumors. as on matter start, the don't To of

creating focused this management focused been today, what and be shareholder saying that's value remains long-term the all I've along, to and on. on true we're are team and As Board the

Michael Infante

extent to it's next the But the to assumptions year, on the you confidence to of some should 'XX alluded the even for And in would able for in nuance hold don't can. confidence Is that to you next accelerated like of that the to, of the to medium-term just But extent be if outlook. something actions given to that? to X some for outperformance Understood. the and new I alluded mentioned mid-term Rule here about and how back I deliver trends, do to release high-teens, generally there, Brad, in maybe at know, you book next X-part seems the question the of you you deliver year on range. on Obviously, year still back of for outlook those like steady year, the XX%, even that don't X% fair next specifically? handle to able it you we and or pricing we on that year. what developments think incremental recover margins deliver you combination get this add for product terms X% if XX being

Bradley Herring

Michael, it's question. the for Brad. Thanks of parts. A couple

-- want XXXX to impact many to of we've second you everybody make gives the understand services, heads for when So going new one levers XXXX. was XXXX. pause got his product very about on field engineering, the made when team, we've one, has pull of team Neal of a that that hires I managed into mentioned on of us into XXXX, that the whether the the than team, just we it's I transformation whether it's we whether different the things go confidence, new the to more it's of team, got think in starting had can sure so a heads some

the lot opportunities us of gives There's to our also white got that mentioned. we've we've pricing much get space go up-market, the I when We've knowing got more you product explore to in customers. around that a opportunities dynamic got confidence opportunities So in of market. a

to bigger with So internally gives a us book. that much work TAM back on our more

XXXX end we to got going have into didn't number XXXX. at So of levers pull the going day, into a candidly of the that we've

I gives back for pull So performance in confidence much think levers to going us more of more terms in, book XXXX.

question a into We've profitability, XXX%. fair allowing amount pass-through your our our focused We've on Going of flow I margins. through focused rates. agree around to incremental on revenue into always always

stand still margin of all use picking of that up on continued that hundred philosophy points we couple based those into internally. basis by improvement XXXX So just we

Operator

Becker from William of next Blair. question Your Dylan of comes the line

Dylan Becker

the it sticking team that recent with but about from or posing Maybe of kind Oleg slew background kind think model scale thread maybe at shift up-market those that this and of each kind that new the the doing have incremental of Neal, of evolution the you importance do hires, on the about kind for Brad, executive on you as the economic of key in of and kind confidence here? of think your of push how to

Oleg Movchan

Yes.

positioning organization. highlighted design are One institutional into expanding through brand may as asset comment a thinking strategy. deeper think we and about the So I that is to big we market, level let me our and issue more cover the have high will go-to-market hires of Neal brand corresponding on level management executive that and

the looking priorities. elements opportunity to be for top set side of same goes revenue some the one on as product The so senior hires for the to organization, the as of aligning is able marketing firm capture And well that basically possible.

Neal Pawar

with share new the the good seeing hires to hires, come lot for now year, managed investment to capabilities a a of revenue offer continuing Enfusion. also where our and we them our out companies to sell marketplace interest build to improvements make who over services, build we're with to And workbench continuing past have a our in ability that senior of in have our that to Yes. the to through clients are us out partnerships that can we

to the that Difficulty] to [Technical our have into back that the product shelves a we on we're expect book existing And so on the we clients. a we sell the lot look have So more uplift to as product positive organization shelf of XXXX.

Dylan Becker

as momentum then too, of kind called of Okay, continues. of up-market too, pipeline trajectory and MR but give trend as RFPs being And general sense us you cycles trends nature. there in if well great. they're the you elongated the guys value could this conversion included there? you're of the conversion as call a continues proposition as kind out of bookings of How evolution Wondering, platform as included sales more did kind by naturally you again, compound? seeing the a conversations, in the out bit But well so continues the those being you too, mature trends well think and understanding to to about kind how

Neal Pawar

in functionality in been around helpful XX% I there seeing think the earlier specific highlighted opportunities of And the has features up terms the released in in conversion been qualified very unlocked has for have are last Workbench We're Oleg client particular, XX%, opportunities. mind, And months. space. bear some Workbench. as the opportunities in of what's only those individual few in the roughly Yes. that in opening been call, up-market And these

again I And advantages, of push so cadence, not step I say having this, but advantages new will a in often to and great features great areas one the being you growth out that as -- know see able one is of regular the of weekly the these that of change.

able perhaps strategy the those that incremental years we see on points able X win and wouldn't numerous we're been You're to clients X going show executing to or have ago. that to that win proof

Oleg Movchan

premium using layer foundation executing team on lays for product firm way create design one actually segments. This the about Yes. that unlock and also is mechanism eventual new simply strategy market to just the that value The products for a and it And conversions opposed this. is so as just as on up-market. price of to move increases, and Neal's top not

Operator

Parker question comes line next of Your of from Lane Stifel. the

J. Lane

I from response the upgrades you're getting was first in do piece, think that's a done that potentially more or more and since out from it opportunities extract offense managed some you've Neal, you clients services that? to about in talked there the and revenue feedback additional launched. going series is Is identifying stuff to that on of about

Neal Pawar

and team. more that talking interactive working That's an And of service want we've been of see It's more they general, of. getting with more ways both. to of to in and great want all managed a from heard own their a visual that's on question. what We've clients extension our them team they the feedback combination of

And that we much Investor Day in at more so the we and would in to little this than manual the still time, that the the built like. also lot some same managed very upgrades of talked we've acknowledge that. But we earlier way this are that bit a are out business about coming year, are the response tech elements a services frankly has

been over in past we've so improving the And year investing tooling. the

their productivity better which experience improves, that also client means we'll but the get work margins to most well. only on experience our that it, out not So able improves, importantly, improves, also much business be that their and employees of as

J. Lane

one it. follow-up Brad. And Got quick for

pipeline the And of ACV cohort $XXX,XXX you've a think we those solid have Should trend reasons moderate client the continuing by in to here, Should have? customers. for at what's you the about size any that had lead based distribution just distribution Looking that here? on you today? towards trend really there line the be

Bradley Herring

No, Parker.

focus we're fact, to to trying -- In a that's get slide people it's on.

it's new sure certainly page make want is continue. some those trend big one trend. continue. reading -- we and on is leave This for has a expect think of points we not people I time I going to trends and expect this think the that away been this we And that take to to call

Operator

of comes McVeigh UBS. of question the line from next Kevin Your

Kevin McVeigh

what in as maybe all mean what try just to And would to clients of think if that of at time terms as today, can IPO them any a that how at that dimensionalize way to to little opposed many bit? there all, use like mean the were time Is you're of maybe in market modules to the to to opposed Oleg, I IPO? bringing about guess,

Oleg Movchan

Yes, sure.

the system for back then X was you money. was managed And -- we top modular. don't express an We our OEMS of X we ways doing that modular wasn't of that delivers us that nature of basically So make our We the -- we're value years right? and kind rewind more services. on foundation and then than offering have to product for core that. And setting to third was PMS like the product basically it. modular, Today, the is one our had

then and path and other with about footprint just the It's the However, platform products then building expand the new clients things. The accounting their and platform they of know, as about articulated accounting and within They you then module not forward, sort PMS. as integrate the earlier, from OEMS expand that. capabilities. presence get Neal is capability they and

So that. management first point, attribution, risk in, factor optimization, Workbench things premium creating portfolio is more the Portfolio aggressive including foray will #X, we on like But that front. features, some at be

So both decision-making. post everything happens and functionality on pre investment AMS. Richer that

couple sort as offering and as bit marketplace. a In other offensive OEMS Neal actually of things, a is things it product. And being far mentioned fact, stand-alone as a more concerned about of

So comprehensive creating more we gearing universal framework. are a up on

network, it our enrich external and So kind have of revenue just but products agreements sharing build create this bring we also clients' own or value. our can partnership and distribute it partners and using don't experience where

Kevin McVeigh

they for an just in been of terms hesitancy election, cycle more Helpful. election And anything client was then there's couple the to -- around pointed a the that in just we've now. of there Obviously, quarters recently?

they switching? concern Just terms highlighting in anything were of that the

Oleg Movchan

We did and are several conversations I had I anything. not people well. clients see positioned think with

As pretty efficient are you in pricing. markets price of -- know, terms

funds. think which levels people lead more just elevated interest any around bearing is post will just including election, is will for are apart what more and good so ahead say, about marketplace, of world and the constituents, sort in rate the I falling conversations thinking volatility And environment all hedge happen. consensus I to

at point. So that's I can this color just one offer

Operator

from next comes question of the Your Alexei JPMorgan. line of Gogolev

Elyse Kanner

with you up-market? discuss as you're of first conversations where This is can question consultants integrators Alexei in at and was, you system Gogolev. terms on Elyse move third-party My for Kanner

Neal Pawar

our you if social of -- we've feed, number been go webinars see media We've actually a absolutely. on with integrators. you'll hosting Yes, to been public the system

So the make understand the of one We're some it's sure need Enfusion's to to an where, education that obviously, capabilities. process them. we newer integrators on hand,

that where clients, know their on where lot they RFPs them behalf of a perhaps not spending and the so to. they process with manage as we're of So time to insert into Enfusion

we're to fruits got brought us likewise, really few the been the that well. And we've that We've starting So done they've to these webinars that's to and been opportunities and see a their through that. of them we them. using we've brought opportunity to opportunities talk with to that clients going

we continue but the to So that positive early be start. important innings, a up-market channel as off a recognize in that we super And in XXXX. move this still really us for is going to

Elyse Kanner

then more second in ACV. in 'XX, you XQ? sequential on it. this growth really Got wasn't sequential of there ACV provide dynamic you Could question, for color typically X.X% my much as a around XQ given And X% growth to report

Bradley Herring

to look Yes. be not put starts doesn't on some who a a monetization ACV of going ACV question in even get bouncing they're we've because is big booking or who mode. charts around. back go earnings going to included quarterly churns, comes start in the until in, as calc at It's going bit. linear to move ARR basis. to That's to if you around out monetize, that who remember, little It's X the material, we be why a the quarters. a There's in

see quarters, will to a that be X expansion. but there the around trends, quarter So you're bouncing still going over little across

Oleg Movchan

I element the monetization. front in mean, and in just one framework us we that that. Brad managed the making piece helped services back more Neal the that out And that services, are mentioned investments dynamic, book front accelerate book managed us help Yes. set to should

to complex into back quicker. So of course, clients, them book more as quicker which efficiently, we onboard ACVs we and create larger higher should and translate get be more then, should able

Operator

question line next comes Gabriela from Borges of Your of Sachs. the Goldman

Gabriela Borges

a I bit. had Workbench much Either or how think maybe that of needle for success little and been expand you've up-market, landing a Neal mover Oleg, Portfolio about with for the that's with us for

the of are looking the with should XX be the should been you we last the products for looking minutes, that most move about couple that think up-market that talking product innovation years? at next think needle the what that we X product of about at or As your we moves or you've X enhancements cadence be over

Neal Pawar

Yes.

thanks me for the Let -- question.

a me things. couple outline of Let

bit as Workbench about has from Workbench the we're First past, that the that offer that mostly of portfolio charge incremental talked all, in use of some construction, to on for the where that features. this factor of catch-up the capabilities it, we and the like trend in in Workbench, some and been we've we've functionality see a more think believe into we to unlock, you've winning capabilities more that helped been adding some and we of of than the moving as seen complex those but little portfolio much very share color are playing some about us still the more start clients where XXXX, optimizers table and to construction offense start models around capabilities stakes. In defense for opportunities we

lens the one that's So the example Workbench. through of

at Enfusion, and they own like We're to want more from just data. system. seeing systems, outside I think of we've and about busy clients Workbench, bit data services, about. analytics their on more the I complex little would our also more managed run which feedback that talk platform. products other a from a analytics where we're aside most talked work, already is transactional-based

encourage intelligence run a analytics, you store. type clients analytics the including of complex And really against artificial don't run so to transactional we data large for

analytics with us example, on that move for innings, our in them that they data add are well. The there's say that and and tremendous its with to to Google's complementary Enfusion as around, we additional platform, process. obviously, with to warehouse calculation capabilities can clients collateral additional is so the thing hosted for while in share And which as Cloud. treasury last inside management allows early is, marketplace, potential us upsell margin it of clients And offer our much an our I'll encouraging the but a wider still products don't revenue give use to has to the range a Enfusion compete product, and component core Enfusion of

Gabriela Borges

makes is sense. for follow-up That Absolutely. The Brad. and Oleg

Brad about and any or planning years? is love focused year. you've some your last Oleg, things front I'm some versus prior you would that that's I leadership dynamics. how on the to to the some commentary So changes you're of year the planning changing planning you're evolved how the forecasting of And XXXX? now and in just on made want willing X the how process, back the for What introducing of some then, think of So process book processes forecasting I book versus that mentioned ask more over you has over provide that your the thinking maybe last

Oleg Movchan

processes. of to key of deploy how specific opened get a in Gabriela, question, visibility think these a certainly I I is -- terms And both granular front We book book process we've back book that that utilizing. opportunities, perspective. more think to timeframes then begins terms of we're what strongly opened Great book involvement there pretty We've pipeline, product it's planning of as brought because it you around kind up we're hires. not what of it, modules our which What different on much we're terms as these a folks much that's more kind back is happening. has think when in, into that measure only front force rollout, of a all ability is much lot looking why ability of in of we of mentioned is cross-corporate to our looking but byproduct of substantially byproduct translates basis. Neal done it's more a at sorry, our a product see visibility changes sales that at I also in And in much the monetize. It's our what driver, our I'm got mean, just or rollout about a capabilities. a them it from and and rates, up in lot of really of to sequencing a how closure more that

on. So spot your point is

will have we better better on we will forecasting, have visibility We we have and visibility guide rollout visibility the on how accordingly. better product on markets will

Neal Pawar

to Enfusion. competitors and record you're universe broader lives, much -- from just which bring more going a focused I we're a their mistakes important, culture, much a come we're mean, see to And past are Enfusion buy-side, at talent as of just to track that beginning. our from we of very, that very from lot going sell-side --

actually and management need at forward with to an So that we move institutional and asset infuse market actually Enfusion to executing have executing experience in people scale. past

the to million. need revenue seats business, business million to revenue $XXX million, growing add we were from $XXX we the in that million, operators their $XXX As $XXX

Operator

Bank the from of Koji line America. comes question Ikeda of next of Your

Koji Ikeda

from I I ask at listen to slightly sounds strong. wanted the deal on quarter in And look fact a to decelerate above really when it the slightly to XX% prepared remarks, quarter. I when below But question that, the new in commentary ARR. the ARR, the did last

metrics at? the that that's $XXX,XXX in So you heard I confidence outside growth be we some what revenue acceleration in key metrics are ACV the embedded or that's drivers about of maybe should giving the guide? of underlying that could ARR talk you earlier of metric, maybe the looking the one is

Bradley Herring

that. this take Brad. Koji, Yes, I'll is

remember, you time. when ARR, So in a snapshot it's at look

for of that those really a fees to to ARR some start, bookings. take right, days lot XX which So yet, seen we've be strong monetize strong We if started bookings will before haven't yet. included may the would example. you're QX, in implementation bookings But in XX really not saw

how some impact but a they of there's in of these bookings So of soon. manifest ARR, very little timing be kind a of will ARR themselves bit in

between those statistic contracted ], kind fact, see In difference which ARR, CARR of monitor a that's is we and called another internally [ you can the where X.

the When bit is a look reiterate sequential I'll current to historical of about which those net ACV returned into with really there's be I little kind think that's be attention ARR important. would of attention into year, think where you attention get go we'll -- give I'll the largely which has gap would a paying next mid-teens book in guide, over at couple forward organic based But number, to look things close back overall back quarter, our getting that you about. be I at be paying on churn, our talking to our I So noise primarily targets number. couple I paying to it a of growth because that you going any just that's points. us can -- timing. When when you conviction a of sits. levels.

number, do very So managed in more product have good rather tools within back which we to to number. But be against at that macro so XXXX the the looking think a our kind puts sitting services, position and a grow I going what feel offensive of position going I base. environment. about It talking that in penetration defensive which than a I you're made about seeing boils to XXXX in that we in cross-sell We're comment in deployment more talking toolbox be in ago, minute that than just clients had down about. many we'll of into a us

Koji Ikeda

to Brad. does bottomed And commentary, all follow-up at Q&A, that has here. potentially imply I net revenue quarter. seem the just to one Got here look it it, the listening revenue in the When retention, retention net third

a at the guidance what of things that of looking is kind in next assumption curious or Just to of? contract, the some the and we if is going it fair should factors quarters, over be the several are that aware

Bradley Herring

No, question. great

over say, I we've would XXX, couple quarters, XXX. the it think I of seen last

below that. it seen haven't We dip

reached So point. it's feel I bottom a like

forward. pay here. our because largely NDR, so certainly improve. It's throw -- little Downgrades call bit this stabilized. seeing some going about largely stabilized to don't our has given more We mentioned or of a even I've to of seen have any more seen client it the up starting see that's we kind upsells that actually to of growth least clients. Churn it today, been we component. attention We've to we're represents back book the to bet And start stabilize. that down have have improve also I'll But trends dropping to from way what why degree. rapid, XX% slowed has at hard to some

So when the rolls inclusion. And which pick-up points off. versus a XX-month XXX% on will are just back bit what XX get don't impact pools about little in skew of a of UBS-CS we the based Koji, look client is also, you NDR that get QX in in book, number back basis forget

certainly see see reasons should we figure we got those targets through. the to to a than bigger And We're number -- accelerate trying XX we'll walked all where pick-up. just pick-up start slight basis going to quarter, for out really next then XXXX the in think that points. start a I into for we've is So

Operator

the comes Piper Sandler. from Your Crispin last line question Love of of

Crispin Love

are first Just track market you for launch said since off, Americas best on XXXX. the the

Is And could if more of an Just that a can launches? increase little you in you you few generally? sustainable industry parse curious that or the best And for launch the over next discuss then believe it if are the you bit. market out be could quarters? are the that Enfusion what think factors driving some

Oleg Movchan

Chris, here. to your Oleg take questions. Happy

So nothing perspective. that my than more granular from there's

trade than or APAC. the macro vehicles; launches So more hot thing other capital are or to do of be deploying regional from industry. of in we capital Americas people in strategies in strategies either to looks a this that multi-strat, typically as but tend America of taking or put within area. some strategies like volatility well funds the fund credit for just away environments interest is volatility it's launches and friend A their Europe private most discussed. very deploying work typically capital involved. ever is People that people capital in a longer some as as one credit. lot a strategies much in well. volatility to are interesting short looking aggressively hedge strategies, is where are seen. I've But more within with just Credit to as We see deployments new looking interesting, private of launch typical are It spoken people the offerings sort we've are

So the picture. this level is high sort of

just it's us, facto market. we're But it's for know. us. We're cases, so this like system point, a speak. I for it's good as good And it. just de capturing different in current at a think a many It's default perimeter. homeland, to -- the It's overall, launches for for you

of classes private stand-alone a strategies offers equities, the and eyes marketplace, that part and on and asset fixed private asset basis, industry but products looking future that the in on income liquid with liquid institutional are of just portfolio then management overall and loan-only, we're equity alongside the the credit. at not Our

Operator

our the concludes for to now conference back session. will turn Q&A Movchan over closing Oleg That I remarks.

Oleg Movchan

look helpful. for reconnecting you very thoughtful And forward to with I we you the shortly all follow-ups. Thank was questions. thought that for

Operator

call. conference today's concludes This

may disconnect. You now

Enfusion (ENFN) 4 Nov 242024 Q3 Earnings call transcript