Envestnet, Inc. (ENV) Bundle
An Overview of Envestnet, Inc. (ENV)
General Summary of Envestnet, Inc. (ENV)
Envestnet, Inc. was founded in 1999 and has established itself as a leading provider of intelligent systems for wealth management and financial services. The company offers a diverse range of products and services that include investment management, financial planning, and data analytics. As of 2024, Envestnet reports total assets under management (AUM) of approximately $510.5 billion and assets under administration (AUA) of about $496.0 billion. The company serves over 39,000 financial advisors and has approximately 3.2 million client accounts.
Company's Financial Performance in the Latest Financial Reports
In the third quarter of 2024, Envestnet achieved total revenue of $345.9 million, representing a 9% increase compared to the same period in 2023. Key revenue components include:
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Asset-based Revenue | $224,980 | $193,901 | $31,079 | 16% |
| Subscription-based Revenue | $115,402 | $114,939 | $463 | — |
| Total Recurring Revenue | $340,382 | $308,840 | $31,542 | 10% |
| Net Income (Loss) | ($1,661) | $7,091 | ($8,752) | (123%) |
| Adjusted EBITDA | $80,541 | $65,331 | $15,210 | 23% |
Envestnet's asset-based recurring revenue increased by $31.1 million or 16% year-over-year, attributed to higher asset values on its platforms. However, the company reported a net loss of $1.7 million for the quarter, primarily due to increased operational expenses.
Introduction to Envestnet as a Leader in the Industry
Envestnet is recognized as a leading player in the wealth management technology sector, providing comprehensive solutions that empower financial advisors and institutions. The company's innovative technology platforms and services have positioned it favorably in a highly competitive market. With a focus on enhancing the client experience and driving efficiency, Envestnet continues to expand its market presence, onboarding $304.9 billion in new client conversions over the last nine months. The company remains committed to delivering value through its cutting-edge solutions and strategic partnerships, solidifying its status as a key player in the financial services industry.
Mission Statement of Envestnet, Inc. (ENV)
Mission Statement of Envestnet, Inc. (ENV)
Envestnet, Inc. aims to provide innovative wealth management solutions that empower financial advisors and institutions to deliver holistic financial advice to their clients. The mission statement emphasizes the company's commitment to integrating technology, data, and analytics to enhance the client experience while driving operational efficiency.
Core Component 1: Empowering Financial Advisors
The first core component focuses on empowering financial advisors by providing them with advanced technology and tools. Envestnet aims to enhance the capabilities of over 39,000 financial advisors who utilize their platforms as of September 30, 2024. This represents an increase from approximately 38,000 advisors in the previous year, illustrating a growth rate of approximately 2.6% year-over-year.
Core Component 2: Delivering High-Quality Products
The second core component is the commitment to delivering high-quality products and services. Envestnet's total assets under management (AUM) reached $510.5 billion as of September 30, 2024, up from $416.0 billion in the prior year, reflecting an increase of 22.6%. The company's wealth solutions segment reported revenue of $311.5 million for the third quarter of 2024, a 12% increase compared to the same period in 2023.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total AUM | $510.5 billion | $416.0 billion | 22.6% |
| Number of Financial Advisors | 39,000 | 38,000 | 2.6% |
| Wealth Solutions Revenue | $311.5 million | $279.2 million | 12% |
Core Component 3: Integrating Technology and Analytics
The third core component centers on the integration of technology and analytics. Envestnet provides comprehensive data aggregation and analytics solutions that facilitate informed decision-making for clients. The company reported 45.2 million paid end-users utilizing their data and analytics platforms as of September 30, 2024, reflecting a steady increase from 42.3 million users in the previous year. This growth underscores Envestnet's commitment to enhancing the technological infrastructure that supports financial advisory services.
Conclusion
Envestnet's mission statement and its core components illustrate a robust framework aimed at empowering financial advisors, delivering high-quality products, and integrating advanced technology and analytics. The company's ongoing growth in AUM, advisor engagement, and user adoption of technology platforms positions it well within the competitive landscape of wealth management solutions.
Vision Statement of Envestnet, Inc. (ENV)
Vision Statement of Envestnet, Inc. (ENV)
As of 2024, Envestnet, Inc. focuses on empowering financial advisors and institutions through innovative technology and data-driven solutions. The company aims to enhance client outcomes and drive growth in the wealth management sector.
Comprehensive Wealth Management SolutionsEnvestnet envisions providing a comprehensive suite of solutions that integrate financial planning, investment management, and risk management. This vision is reflected in the following financial metrics:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Total Revenue | $1,019,172,000 | $927,988,000 | 9% |
| Asset-Based Recurring Revenue | $647,081,000 | $556,595,000 | 16% |
| Subscription-Based Recurring Revenue | $350,852,000 | $346,977,000 | 1% |
Envestnet aims to lead the financial data and analytics market by enhancing its platform capabilities. The company reported the following statistics regarding its Data & Analytics segment:
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Subscription-Based Revenue | $32,685,000 | $33,939,000 | -4% |
| Professional Services Revenue | $1,741,000 | $3,665,000 | -52% |
Envestnet's vision includes a commitment to client-centric innovation, focusing on enhancing user experience and engagement. As of September 30, 2024, the number of financial advisors utilizing their technology platforms increased to approximately 39,000, up from 38,000 in 2023.
Long-Term Growth and SustainabilityThe company is committed to sustainable growth, demonstrated by its asset under management (AUM) metrics:
| Metric | September 30, 2024 | December 31, 2023 | % Change |
|---|---|---|---|
| AUM | $510,453,000,000 | $416,001,000,000 | 23% | AUA | $495,995,000,000 | $430,846,000,000 | 15% |
Envestnet, Inc. seeks to remain at the forefront of the wealth management industry by leveraging technology to improve financial outcomes for its clients and partners.
Core Values of Envestnet, Inc. (ENV)
Core Value: Integrity
Integrity is at the heart of Envestnet's ethos, ensuring that the company conducts its business honestly and transparently. This value is crucial for maintaining trust with clients and stakeholders.
Envestnet has demonstrated its commitment to integrity through its rigorous compliance programs and ethical guidelines that govern employee conduct. In 2024, the company reported a total revenue of $1.019 billion, reflecting its commitment to ethical business practices that foster long-term relationships with clients.
Core Value: Innovation
Innovation drives Envestnet to continuously improve its services and solutions, adapting to the evolving needs of the financial industry. This value is essential for maintaining a competitive edge in the market.
In 2024, Envestnet launched several new technological solutions aimed at enhancing client engagement and operational efficiency. The total assets under management (AUM) reached $510.5 billion, with $76.2 billion in new client conversions during the third quarter alone. This growth underscores the impact of its innovative offerings on market performance.
Core Value: Client-Centricity
Client-Centricity emphasizes the importance of understanding and addressing client needs. Envestnet places its clients at the core of its operations, ensuring that products and services are tailored to their requirements.
As of September 30, 2024, Envestnet supported approximately 3.2 million client accounts, a significant increase from 2.9 million the previous year. The company’s focus on client satisfaction is reflected in its 99% recurring revenue rate, which indicates a strong retention of clients and trust in its services.
Core Value: Collaboration
Collaboration fosters teamwork and partnership within Envestnet and with its clients. This value is vital for creating comprehensive solutions that meet complex client needs.
In 2024, Envestnet reported a 12% increase in total recurring revenue across its Wealth Solutions and Data & Analytics segments. This growth is attributed to collaborative efforts across departments to deliver integrated solutions, enhancing the overall client experience.
Core Value: Accountability
Accountability ensures that Envestnet takes responsibility for its actions and decisions, fostering a culture of trust and reliability. This value is pivotal in building a resilient organization.
Envestnet’s effective tax rate for the nine months ended September 30, 2024, was reported at (4.9)%, reflecting the company’s commitment to managing its financial responsibilities responsibly. Furthermore, the company actively monitors its operational performance, holding teams accountable for achieving strategic goals, which has been essential in navigating recent market challenges.
| Core Value | Description | 2024 Key Metrics |
|---|---|---|
| Integrity | Commitment to honest and transparent business practices. | Total Revenue: $1.019 billion |
| Innovation | Continuous improvement of services and solutions. | AUM: $510.5 billion; New Client Conversions: $76.2 billion |
| Client-Centricity | Focus on understanding and addressing client needs. | Client Accounts: 3.2 million; Recurring Revenue: 99% |
| Collaboration | Fostering teamwork to deliver integrated solutions. | Total Recurring Revenue Growth: 12% |
| Accountability | Taking responsibility for actions and decisions. | Effective Tax Rate: (4.9)% |
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Updated on 16 Nov 2024
Resources:
- Envestnet, Inc. (ENV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Envestnet, Inc. (ENV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Envestnet, Inc. (ENV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.