Envestnet (ENV) Q2 2024 earnings summary

Executive summary

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

• Adjusted EBITDA rose 39% to $77.8 million, and adjusted net income per diluted share increased 20% to $0.55.

• Net loss attributable to Envestnet, Inc. was $79.2 million for Q2 2024, primarily due to a $96.3 million non-cash goodwill impairment in the Data & Analytics segment.

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

• 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.

• Adjusted net income per diluted share was $0.55, up 20% from $0.46 in Q2 2023.

• Free cash flow was $67.0 million, up from $36.7 million in Q2 2023 (83% YoY growth).

• Cash and cash equivalents stood at $122.0 million, with $892.5 million in outstanding debt as of June 30, 2024.

Outlook and guidance

• No guidance provided for Q3 2024 due to the pending Bain Capital transaction.

• The company expects the merger with Bain Capital to close in Q4 2024, subject to shareholder and regulatory approvals.

• Management anticipates continued revenue growth, with a focus on operational efficiency and expense reduction.