Envestnet (ENV) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 11% year-over-year to $348.3 million, driven by strong asset-based recurring revenue growth and platform assets surpassing $6.27 trillion.

• Adjusted EBITDA increased 39% to $77.8 million, and adjusted net income per diluted share was $0.55, up 20% from Q2 2023.

• Free cash flow surged 83% year-over-year to $67.0 million, reflecting operational efficiency.

• Net loss attributable to the company was $79.2 million, primarily due to a $96.3 million non-cash goodwill impairment in the Data & Analytics segment.

• Entered into a definitive agreement to be acquired by Bain Capital for $63.15 per share in cash, with closing expected in Q4 2024, pending shareholder and regulatory approvals.

Financial highlights

• Q2 2024 revenue was $348.3 million, up from $312.4 million in Q2 2023 (11% YoY growth).

• Adjusted EBITDA reached $77.8 million, a 39% increase from $56.0 million a year ago, with a margin of 22.3%.

• Adjusted net income per diluted share was $0.55, up 20% from Q2 2023.

• Free cash flow was $67.0 million in Q2 2024, up from $36.7 million in Q2 2023.

• Cash and cash equivalents totaled $122.0 million as of June 30, 2024.

Segment performance

• Wealth Solutions Q2 2024 revenue grew 13% year-over-year to $312.1 million, with asset-based recurring revenue up 18% to $219.5 million.

• Wealth Solutions subscription-based revenue exceeded $84 million, up 6% year-over-year.

• Data & Analytics Q2 2024 revenue was $36.2 million, down 1% year-over-year, with recurring subscription revenue stable at $33 million.

• Data & Analytics segment recorded a $96.3 million goodwill impairment and had 44.3 million paid end-users as of June 30, 2024.

• Total platform assets reached $6.27 trillion, with 110,052 advisors and 19.4 million accounts supported.