SEI Investments (SEIC) Q2 2024 earnings summary

Executive summary

• Diluted EPS rose 18% year-over-year to $1.05 for Q2 2024, with net income up 17% to $139.1 million and revenue up 6% to $519 million, driven by higher assets under administration and market appreciation.

• Assets managed, advised, or administered reached $1.5 trillion as of June 30, 2024, up 16% year-over-year.

• Strategic focus on organic and inorganic growth, talent infusion, innovation, and platform adoption, including AI initiatives and professional services expansion.

• Robust sales pipeline and market activity, with high client engagement and expanding addressable markets.

• RIA platform adoption and advisor business growth remain key priorities, with significant new advisor onboarding in the quarter.

Financial highlights

• Operating income rose 21% year-over-year to $136.5 million for Q2; net income was $139.1 million, up 17% year-over-year; diluted EPS was $1.05, up 18%.

• Revenue reached $519 million, up 6% year-over-year; total expenses were $382 million, up from $376 million last year.

• Repurchased 1.6 million shares for $111 million at an average price of $67.44 per share in Q2; 2.46 million shares for $167.2 million in the first half.

• Cash flow from operations was $114.7 million in Q2 and $227 million for the first half.

• Dividends declared per share were $0.46, up from $0.43 in Q2 2023.

Outlook and guidance

• Management expects available funds and cash flow from operations to be sufficient for operational needs and stock repurchases for at least the next 12 months.

• Continued focus on executing growth initiatives, expense management, and leveraging a solid balance sheet; no material impact expected from OECD global minimum tax.

• Headwinds expected in the defined benefit institutional space into 2025, but optimism for other institutional markets and continued pipeline growth.