When it comes to understanding Envestnet net worth, there’s much to explore beyond just numbers. In 2024, Envestnet has shown a unique balance between asset-based and subscription-based revenue.
Let’s dive deep into how this financial giant’s revenue streams have evolved over time and what this means for its financial health.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Envestnet |
| Full Name | Envestnet, Inc. |
| Website | https://www.envestnet.com |
| Industry | Wealth Management, Financial Technology |
| Traded as | NYSE: ENV |
| ISIN | N/A |
| Founded | 1999 |
| Founders | Jud Bergman |
| Country/Territory | United States |
| Headquarters | Berwyn, Pennsylvania |
| Chief Executive Officer | Jim Fox (Interim CEO) |
| Number of Employees | Over 110,000 advisors |
| Market Cap | $3.45 billion |
| Total Assets | $1.79 billion |
| Total Equity | $516.3 million |
| Revenue | $348.3 million (Q2 2024) |
| Net Income | Net Loss of $79.2 million (Q2 2024) |
What is the Net Worth/Market Cap of Envestnet in 2024?
Envestnet’s market cap stands at $3.45 billion as of October 2024, placing it as one of the prominent players in the wealth management industry.
This valuation places the company in the spotlight among other industry leaders. While its valuation is significant, it’s always beneficial to compare Envestnet to some of its competitors and partners in the financial sector:
- Morningstar
- Charles Schwab
- Fidelity Investments
- BlackRock
- Bain Capital
- Vanguard Group
- TD Ameritrade
- JPMorgan Chase
- UBS Group
- State Street Corporation
When you look at the scale and reach of these companies, it gives context to how Envestnet’s market cap stacks up.
If you’re interested in a comprehensive list of financial giants, check out the world’s wealthiest corporations.
Envestnet Financial Performance Overview
How Envestnet’s Financial Performance Has Evolved in Recent Years
Envestnet has shown a significant financial evolution in the past few years. With 11% revenue growth in Q2 2024 compared to Q2 2023, the company has maintained its upward trajectory.
The growth is a result of strategic initiatives and an increased focus on core financial offerings.
This evolution demonstrates Envestnet’s ability to stay relevant and strong in the competitive wealth management and financial tech industry.
Breakdown of Revenue Streams: Asset-Based vs. Subscription-Based
Envestnet derives its income from two primary sources: asset-based revenue and subscription-based revenue.
Asset-based revenue constituted 63% of the total revenue in Q2 2024, which shows a strong increase from 59% in Q2 2023.
On the other hand, subscription-based recurring revenue represented 34% of total revenue, compared to 37% in the previous year. This shift highlights a growing preference for asset-based income within Envestnet’s financial model.
Growth in Asset-Based Recurring Revenue
The asset-based segment is a key driver in Envestnet’s revenue growth. Growing by 18% in Q2 2024, asset-based recurring revenue has outperformed other segments.
This growth reflects both the positive market trends and Envestnet’s ability to manage assets effectively, contributing to sustainable income streams.
Subscription-Based Recurring Revenue Trends
Subscription-based revenue remains a steady income stream for Envestnet, growing by 3% in Q2 2024.
Despite being smaller in proportion to asset-based revenue, this segment plays a crucial role in providing consistent revenue.
The company’s focus on technology services and analytics has helped in securing this stream.
The Impact of Professional Services on Total Revenue
Though professional services contribute to a smaller proportion of Envestnet’s revenue, they are essential.
In Q2 2024, professional services and non-recurring revenue decreased by 8% compared to Q2 2023.
However, they remain a strategic part of the company’s financial structure, adding diversity to revenue streams.
Key Financial Metrics: Revenue Growth and Profitability
Envestnet’s 11% revenue growth in Q2 2024 is a notable improvement, showing a commitment to profitability.
Meanwhile, Adjusted EBITDA saw a rise of 39% in the same period, reflecting Envestnet’s growing efficiency in generating profits before deducting expenses like interest, taxes, and depreciation.
Asset Management and Administration Growth
One of the core aspects of Envestnet’s financial growth is its focus on assets under management (AUM) and assets under administration (AUA).
In Q2 2024, total AUM/A reached $943.5 billion, reflecting substantial asset conversions and new client onboarding. These growth factors have positively contributed to the company’s overall financial standing.
Operating Expenses and Their Influence on Profitability
Operating expenses for Envestnet increased by 29% to $423.8 million in Q2 2024, partly due to direct expenses and employee compensation.
While this rise might seem significant, the company has managed to balance it with its increased revenue and strategic cost management.
Cash Flow and Debt Structure Overview
Envestnet’s free cash flow improved dramatically by 83% to $67.0 million in Q2 2024, showcasing a healthy financial flow for operational activities.
The company also maintains a debt structure consisting of convertible notes due in 2025 and 2027, totaling around $892.5 million. Its undrawn credit facility of $500.0 million adds to its liquidity position.
Financial Strategy in Wealth Solutions and Data & Analytics Segments
Envestnet’s focus on its Wealth Solutions and Data & Analytics segments has played a central role in its financial performance.
The Wealth Solutions segment drives a significant portion of asset-based revenue, while the Data & Analytics segment enhances the subscription-based side, balancing the company’s financial growth and ensuring sustainability.
The Effect of Key Financial Transactions and Adjustments
In Q2 2024, Envestnet undertook a non-cash goodwill impairment charge of $96.3 million and a gain of $19.5 million from deconsolidation of non-controlling interest.
These adjustments highlight the company’s strategic financial decisions, aiming to maintain balance and ensure clear financial reporting.
FAQs About Envestnet
What Are the Revenue Streams of Envestnet?
Envestnet’s revenue primarily comes from asset-based recurring revenue (63% of total revenue) and subscription-based recurring revenue (34%). The company also has a smaller contribution from professional services.
How Did Envestnet’s Revenue Grow in Q2 2024?
Its revenue grew by 11% in Q2 2024 compared to Q2 2023, attributed mainly to the increase in asset-based recurring revenue and consistent subscription income.
What Is Envestnet’s Cash Position as of 2024?
As of June 30, 2024, the company had around $122.0 million in cash and cash equivalents, with a free cash flow of $67.0 million in Q2 2024.
What Is the Debt Structure of Envestnet?
It has $892.5 million in outstanding debt, split into convertible notes maturing in 2025 and 2027. The company also has a $500.0 million revolving credit facility that remains undrawn.
How Has Envestnet’s Adjusted EBITDA Performed?
Its Adjusted EBITDA saw a 39% increase in Q2 2024 compared to the same period in 2023, signifying an improvement in operating efficiency and profitability.
Conclusion
I hope this analysis provides a clear picture of Envestnet’s financial standing and growth in 2024.
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