SEI Investments (SEIC) Q2 2024 earnings summary

Executive summary

• Diluted EPS rose 18% year-over-year to $1.05, 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.

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

• CEO highlighted operational leverage, capital allocation, and platform adoption as key growth drivers.

Financial highlights

• Operating income rose 21% year-over-year to $136.5 million; net income was $139.1 million, up 17%; 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 continued momentum from platform adoption, technology investments, and market expansion, with sufficient funds and cash flow for operational needs and stock repurchases.

• Expense management and optimization to continue, with compensation increases shifting more to year-end.

• No material impact expected from the OECD global minimum tax (Pillar Two) on effective tax rate or financials.

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