Enfusion, Inc. (ENFN) Bundle
A Brief History of Enfusion, Inc.
Company Overview
Enfusion, Inc. is a technology company that provides a cloud-based investment management platform designed for asset managers and institutional investors. As of 2024, Enfusion has established itself as a key player in the financial technology sector, focusing on providing comprehensive solutions that streamline operations for investment firms.
Financial Performance
For the nine months ended September 30, 2024, Enfusion reported total revenues of $148.7 million, representing a 16.1% increase from $128.0 million in the same period of 2023. This growth was driven primarily by an increase in platform subscription revenues, which totaled $138.3 million, up from $118.5 million in 2023, marking a 16.7% year-over-year increase.
| Financial Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $148.7 million | $128.0 million | $20.7 million | 16.1% |
| Platform Subscriptions | $138.3 million | $118.5 million | $19.8 million | 16.7% |
| Managed Services | $9.5 million | $8.7 million | $0.8 million | 8.7% |
| Other Revenues | $0.9 million | $0.9 million | $0.1 million | 6.8% |
Operating Expenses
Enfusion's operating expenses for the nine months ended September 30, 2024, totaled $95.6 million, compared to $76.2 million in the same period of 2023. The increase in operating expenses was primarily driven by higher general and administrative costs, which rose to $57.7 million from $47.5 million, reflecting a 21.4% increase.
| Operating Expense Category | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change ($) | Change (%) |
|---|---|---|---|---|
| General and Administrative | $57.7 million | $47.5 million | $10.2 million | 21.4% |
| Sales and Marketing | $18.5 million | $14.9 million | $3.6 million | 24.2% |
| Technology and Development | $19.5 million | $13.8 million | $5.7 million | 40.9% |
Net Income
For the nine months ended September 30, 2024, Enfusion reported a net income of $3.7 million, a decrease from $8.4 million in 2023. This decline can be attributed to increased operating expenses and lower income before taxes, which amounted to $4.9 million compared to $9.3 million in the prior year.
| Net Income Metrics | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Net Income | $3.7 million | $8.4 million |
| Net Income Attributable to Enfusion, Inc. | $2.7 million | $5.4 million |
Cash Flow
Enfusion generated $25.0 million in cash flows from operating activities for the nine months ended September 30, 2024, compared to $19.0 million in 2023. The increase in cash flow was driven by effective management of working capital and a focus on operational efficiency.
| Cash Flow Category | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Net Cash Provided by Operating Activities | $25.0 million | $19.0 million |
| Net Cash Used in Investing Activities | $(11.2 million) | $(7.4 million) |
| Net Cash Used in Financing Activities | $(1.4 million) | $(42.5 million) |
| Net Increase in Cash | $12.7 million | $(30.9 million) |
Liquidity and Capital Resources
As of September 30, 2024, Enfusion had cash and cash equivalents of $48.3 million and $99.9 million available under its credit agreement, providing a robust liquidity position to support ongoing operations and growth initiatives.
Debt Obligations
On September 15, 2023, Enfusion entered into a credit agreement providing for a senior secured revolving loan facility of up to $100.0 million, which includes provisions for additional borrowing capacity. The company reported compliance with all loan covenants as of the latest reporting date.
A Who Owns Enfusion, Inc. (ENFN)
Ownership Structure
As of 2024, Enfusion, Inc. (ENFN) has a complex ownership structure that includes both institutional and individual investors. The company has Class A and Class B common stock, with Class A shares being publicly traded.
Major Shareholders
The following table summarizes the major shareholders of Enfusion, Inc. as of 2024:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | Approximately 70,000,000 | 75.0% |
| Individual Investors | Approximately 20,000,000 | 20.0% |
| Management and Insiders | Approximately 5,000,000 | 5.0% |
Institutional Ownership
Institutional ownership has been a significant factor in the company's stock performance. Major institutional holders include:
- BlackRock, Inc. - approximately 10% ownership
- The Vanguard Group - approximately 8% ownership
- Fidelity Investments - approximately 7% ownership
- State Street Corporation - approximately 6% ownership
Recent Stock Performance
As of September 30, 2024, Enfusion, Inc. reported a market capitalization of approximately $900 million. The stock has seen an increase in value, attributed to strong revenue growth and strategic acquisitions.
Financial Overview
For the nine months ended September 30, 2024, Enfusion reported total revenues of $148.7 million, an increase of 16.1% from the previous year. The breakdown of revenue sources is as follows:
| Revenue Source | Amount (in thousands) | Year-over-Year Growth |
|---|---|---|
| Platform Subscriptions | $138,269 | 16.7% |
| Managed Services | $9,478 | 8.7% |
| Other Revenues | $926 | 6.8% |
Net Income
For the nine months ended September 30, 2024, Enfusion reported a net income of $3.743 million, with net income attributable to Enfusion, Inc. amounting to $2.702 million.
Future Projections
Looking ahead, analysts project continued growth for Enfusion, Inc. due to increasing demand for its services and expansion into new markets. The company has plans for further investment in technology and product development.
Conclusion of Ownership Insights
The ownership structure of Enfusion, Inc. is characterized by a strong presence of institutional investors, which provides stability and confidence in the company's future growth. The company's financial performance and strategic initiatives are expected to enhance shareholder value moving forward.
Enfusion, Inc. (ENFN) Mission Statement
Company Overview
Enfusion, Inc. is a global SaaS provider focused on transforming the investment management industry. The firm aims to eliminate technology and information barriers, empowering investment managers to make and execute better-informed investment decisions in real time.
Mission Statement
Enfusion's mission is to simplify investment and operational workflows by unifying mission-critical systems and coalescing data into a single dataset, resulting in a single source of truth. This unified approach allows stakeholders throughout the client organization to interact more effectively across the investment management lifecycle.
Financial Performance
As of September 30, 2024, Enfusion reported total revenues of $51.2 million for the three months ended September 30, 2024, compared to $44.4 million for the same period in 2023, marking an increase of 15.4% year-over-year. For the nine months ended September 30, 2024, total revenues were $148.7 million, up from $128.0 million in 2023, which is a 16.1% increase.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $51.2 million | $44.4 million | $148.7 million | $128.0 million |
| Platform Subscriptions | $47.8 million | $40.9 million | $138.3 million | $118.5 million |
| Net Income | $1.96 million | $2.66 million | $3.74 million | $8.35 million |
| Gross Profit | $34.83 million | $29.85 million | $100.20 million | $86.03 million |
| Operating Expenses | $31.85 million | $27.16 million | $95.63 million | $76.22 million |
Recurring Revenue Model
Approximately 99.4% of Enfusion's total revenues are recurring subscription-based as of September 30, 2024. This marks an increase from 98.9% during the same quarter in 2023.
Client Engagement and Growth
Enfusion's revenue growth is largely driven by upsells and increased users within existing contracts, along with new client revenue. For Q3 2024, platform subscriptions saw a 17.0% increase year-over-year, attributed to $5.6 million related to upsell and increased users within existing contracts and $4.2 million from new clients.
Cash Flow and Investments
Enfusion generated $25.01 million in cash flows from operating activities during the nine months ended September 30, 2024. Cash flows from investing activities were $(11.23) million, primarily due to capitalized software development costs and property and equipment purchases.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Flows from Operating Activities | $25.01 million | $19.05 million |
| Cash Flows from Investing Activities | $(11.23) million | $(7.38) million |
| Cash Flows from Financing Activities | $(1.40) million | $(42.50) million |
Debt and Financing
As of September 30, 2024, Enfusion had a credit agreement providing for a senior secured revolving loan facility of up to $100 million. The available borrowing capacity under this agreement was $99.9 million, with a remaining $100 thousand issued as a letter of credit.
Stock Performance
Enfusion's stock performance reflects investor confidence, with the weighted-average shares of Class A common stock outstanding increasing from 87,739 in Q3 2023 to 92,904 in Q3 2024. The diluted earnings per share for Q3 2024 was $0.02, consistent with Q3 2023.
| Stock Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Weighted-Average Shares Outstanding (Basic) | 92,904 | 87,739 |
| Weighted-Average Shares Outstanding (Diluted) | 128,984 | 127,841 |
| Earnings per Share (Diluted) | $0.02 | $0.02 |
How Enfusion, Inc. (ENFN) Works
Business Model
Enfusion, Inc. operates as a leading SaaS provider focused on the investment management industry. The company delivers a unified platform designed to streamline operations for investment managers, enhancing their ability to make informed decisions in real time. As of September 30, 2024, approximately 99.4% of Enfusion's total revenues were derived from recurring subscription-based services.
Financial Performance
For the three months ended September 30, 2024, Enfusion reported total revenues of $51.2 million, an increase of 15.4% compared to $44.4 million for the same period in 2023. The breakdown of revenues is summarized below:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Platform subscriptions | $47,786 | $40,857 | $6,929 | 17.0% |
| Managed services | $3,078 | $3,028 | $50 | 1.7% |
| Other | $302 | $472 | ($170) | (36.0%) |
| Total Revenues | $51,166 | $44,357 | $6,809 | 15.4% |
Cost Structure
Enfusion's cost of revenues for Q3 2024 totaled $16.3 million, up from $14.5 million in Q3 2023. The detailed cost breakdown is as follows:
| Cost Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Platform subscriptions | $14,584 | $12,745 |
| Managed services | $1,631 | $1,604 |
| Other | $125 | $158 |
| Total Cost of Revenues | $16,340 | $14,507 |
Operating Expenses
Operating expenses for Q3 2024 were $31.8 million, compared to $27.2 million in Q3 2023. The operating expenses are detailed below:
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| General and administrative | $18,782 | $16,721 |
| Sales and marketing | $6,221 | $5,503 |
| Technology and development | $6,842 | $4,937 |
| Total Operating Expenses | $31,845 | $27,161 |
Net Income
Net income for the three months ended September 30, 2024, was $1.96 million, a decrease from $2.66 million in the same period of 2023. The net income attributable to Enfusion, Inc. was $1.42 million for Q3 2024 compared to $1.83 million for Q3 2023.
Cash Flows
For the nine months ended September 30, 2024, cash flows from operating activities were $25.0 million, compared to $19.0 million in the same period of 2023. The cash flow details are provided below:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net income | $3,743 | $8,353 |
| Non-cash lease expense | $5,554 | $5,231 |
| Depreciation and amortization | $8,507 | $6,472 |
| Net cash provided by operating activities | $25,009 | $19,048 |
Balance Sheet Overview
As of September 30, 2024, Enfusion reported total assets of $134.9 million, up from $109.0 million at the end of 2023. The balance sheet summary is as follows:
| Balance Sheet Item | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Total Assets | $134,940 | $108,972 |
| Total Liabilities | $38,763 | $31,490 |
| Total Stockholders’ Equity | $96,177 | $77,482 |
Market Position and Growth Strategy
Enfusion continues to focus on expanding its client base, enhancing system functionalities, and investing in technology to adapt to the evolving needs of investment managers. The company is well-positioned to capture growth in alternative and institutional investment management sectors.
How Enfusion, Inc. (ENFN) Makes Money
Revenue Streams
Enfusion, Inc. generates revenue primarily through two main streams: platform subscriptions and managed services.
Platform Subscriptions
The majority of Enfusion's revenue comes from platform subscriptions, which accounted for approximately 94% of total revenues in 2024. For the nine months ended September 30, 2024, platform subscription revenue was $138.3 million, up from $118.5 million in the same period of 2023, marking a 16.7% increase.
For the three months ended September 30, 2024, platform subscriptions generated $47.8 million, reflecting a 17.0% increase from $40.9 million in 2023.
| Period | Platform Subscription Revenue | Increase/Decrease | Percentage Change |
|---|---|---|---|
| Q3 2024 | $47.8 million | $6.9 million | 17.0% |
| 9M 2024 | $138.3 million | $19.8 million | 16.7% |
Managed Services
Managed services contributed $9.5 million for the nine months ended September 30, 2024, an increase of 8.7% compared to $8.7 million in the prior year. For the three months ended September 30, 2024, managed services revenue was $3.1 million, a slight increase from $3.0 million in 2023.
| Period | Managed Services Revenue | Increase/Decrease | Percentage Change |
|---|---|---|---|
| Q3 2024 | $3.1 million | $0.05 million | 1.7% |
| 9M 2024 | $9.5 million | $0.8 million | 8.7% |
Other Revenues
Other revenues, primarily from data conversion services, amounted to $926,000 for the nine months ended September 30, 2024, a slight increase from $867,000 in 2023.
Cost of Revenues
The total cost of revenues for Enfusion increased to $48.5 million for the nine months ended September 30, 2024, from $42.0 million in 2023, reflecting a 15.4% increase.
Cost breakdown for platform subscriptions and managed services is as follows:
| Cost Component | 9M 2024 | 9M 2023 | Increase/Decrease |
|---|---|---|---|
| Platform Subscriptions | $43.2 million | $36.9 million | $6.3 million |
| Managed Services | $5.0 million | $4.8 million | $0.2 million |
Gross Profit and Margin
Enfusion's gross profit for the nine months ended September 30, 2024, was $100.2 million, up from $86.0 million in 2023, with a gross profit margin of 67.4% in 2024, slightly up from 67.2% in 2023.
Operating Expenses
Total operating expenses increased to $95.6 million for the nine months ended September 30, 2024, from $76.2 million in 2023, a rise of 25.5%.
Breakdown of operating expenses is as follows:
| Expense Type | 9M 2024 | 9M 2023 | Increase/Decrease |
|---|---|---|---|
| General and Administrative | $57.7 million | $47.5 million | $10.2 million |
| Sales and Marketing | $18.5 million | $14.9 million | $3.6 million |
| Technology and Development | $19.5 million | $13.8 million | $5.7 million |
Net Income
Net income attributable to Enfusion, Inc. for the nine months ended September 30, 2024, was $2.7 million, down from $5.4 million in 2023.
Cash Flow and Liquidity
Cash flows from operating activities were $25.0 million for the nine months ended September 30, 2024, compared to $19.0 million in 2023. As of September 30, 2024, Enfusion had $48.3 million in cash and $99.9 million available borrowing capacity under a credit agreement.
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Resources:
- Enfusion, Inc. (ENFN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Enfusion, Inc. (ENFN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Enfusion, Inc. (ENFN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.