Envestnet ( (ENV) ) has released its Q3 earnings. Here is a breakdown of the information Envestnet presented to its investors.
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Envestnet, Inc. is a prominent company in the financial technology sector, providing intelligent systems for wealth management and financial wellness solutions to a broad range of financial institutions and advisors.
In its latest earnings report, Envestnet announced a 9% increase in total revenue for the third quarter of 2024 compared to the same period in 2023, reaching $345.9 million. However, the company reported a net loss attributable to Envestnet, Inc. of $1.7 million, or $(0.03) per diluted share, contrasting with a net income of $7.1 million in the previous year.
Key financial metrics showed robust growth in non-GAAP measures, with Adjusted EBITDA rising by 23% to $80.5 million and Adjusted net income increasing by 27% to $46.5 million. The company also reported a significant improvement in free cash flow, which reached $76.2 million, up from $9.4 million in the previous year. Asset-based recurring revenue increased by 16% and made up 65% of total revenue, while subscription-based recurring revenue remained stable.
Despite the reported net loss, Envestnet’s management remains focused on strategic growth and operational efficiency. The company is positioned to leverage its extensive client base and industry-leading technology to enhance financial outcomes for its customers.
Looking ahead, Envestnet continues to focus on its strategic initiatives and technology advancements, which are expected to drive further growth and efficiency improvements in the coming quarters. The management remains committed to delivering value to its clients and stakeholders through innovation and operational excellence.
