Envestnet (ENV) investor relations material

Executive summary

• Revenue for Q3 2024 increased 9% year-over-year to $345.9 million, driven by a 16% rise in asset-based recurring revenue, now 65% of total revenue.

• Net loss attributable to Envestnet, Inc. was $1.7 million for Q3 2024, compared to net income of $7.1 million in Q3 2023, due to higher operating expenses and merger-related costs.

• Adjusted EBITDA rose 23% year-over-year to $80.5 million, and adjusted net income per diluted share increased 25% to $0.70.

• Free cash flow for Q3 2024 surged to $76.2 million from $9.4 million year-over-year.

• Shareholders approved a merger with Bain Capital affiliates, with closing expected in Q4 2024.

Financial highlights

• Nine-month revenue reached $1.02 billion, up 10% year-over-year; adjusted net income for the period was $122.3 million, up 26%.

• Asset-based recurring revenue grew 16% year-over-year to $224.98 million in Q3 2024.

• Subscription-based recurring revenue was $115.4 million, up slightly from $114.9 million in Q3 2023.

• Total operating expenses increased 7% year-over-year, with direct expense up 13% and general and administrative expense up 27%.

• Cash and cash equivalents stood at $193.4 million as of September 30, 2024, with $892.5 million in outstanding debt.

Outlook and guidance

• The merger with Bain Capital is expected to close in Q4 2024, after which the company will become private.

• Management expects continued positive cash flow and sufficient liquidity to fund operations and debt service over the next twelve months.