SEI Investments (SEIC) Q4 2023 earnings summary

Executive summary

• Q4 2023 revenue rose 6% YoY to $484.9M and diluted EPS increased 10% to $0.91; FY revenue declined 4% to $1.92B while diluted EPS remained $3.46.

• CEO cited strong sales activity in technology, investment processing, and operations, alongside a robust pipeline and strategic focus on long-term growth.

Financial highlights

• Q4 net income was $120.7M, up 8% YoY; income from operations was $101.7M versus $94.0M.

• FY net income was $462.3M, down 3% YoY; income from operations was $424.5M versus $475.8M.

• Q4 information processing and software servicing fees rose to $101.3M from $91.4M; asset management, administration, and distribution fees were $383.6M versus $365.2M.

Outlook and guidance

• 2024 priorities include sales and revenue growth, solution innovation, client delivery, market engagement, and investment in talent and capabilities.

• Management highlighted potential growth from alternatives, intermediary-market opportunities, acquisitions, new client adoption, and operational leverage.

• Q4 Private Banks and Investment Managers sales events of $22.9M are expected to generate $17.6M in net annualized recurring revenue when contract values are fully realized.