Envestnet (ENV) Q3 Earnings Beat, Revenues Miss Estimates
Envestnet, Inc. ENV reported mixed third-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings (excluding 43 cents from non-recurring items) came in at 56 cents per share, surpassing the consensus estimate by 3.7%. The bottom line increased 24.4% from a year ago.
Total revenues of $316.8 million fell short of the consensus estimate by 0.5%. The top line improved 3.3% on a year-over-year basis.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote
Quarter in Details
Asset-based recurring revenues, which constituted 61% of the top line, rose 9% on a year-over-year basis to $193.9 million. The metric marginally beat our estimate of $193.7 million.
Subscription-based recurring revenues of $114.94 million decreased 7% from the prior year and contributed 36% to the top line. The figure fell short of our projection of $118 million.
Professional services and other non-recurring revenues jumped 38% from a year ago to $8 million. Also, the figure came ahead of our prediction of $6.3 million.
Adjusted EBITDA expanded 26% from the year-ago figure to $67.2 million. The current adjusted EBITDA margin rose to 21.2% from 17.44% reported a year ago.
Balance Sheet & Cash Flow
As of Sep 30, 2023, ENV had cash and cash equivalents of $43.2 million compared with $59 million a quarter ago. Debt (net of current portion), as of the end of the third quarter, was $875.4 million, up from $874.2 million in the prior quarter.
ENV generated $40 million in cash from operating activities. CapEx was $1.56 million.
Guidance
For fourth-quarter 2023, the company expects revenues to be in the $309-$314 million band. The Zacks Consensus Estimate of $318.45 million lies above the range.
Adjusted earnings per share (EPS) is anticipated to be 51-54 cents. The current consensus estimate matches the upper limit of the guidance.
For 2023, revenues are projected in the $1.237-$1.242 billion band, down from the prior anticipation of $1.25-$1.26 billion. The consensus mark ($1.25 billion) is slightly higher than the guided range.
Adjusted EPS is suggested to be between $1.98 and $2.01, down from the previous forecast of $2.09 and $2.15. The Zacks Consensus Estimate of $2.12 lies above the guided range.
Fourth-quarter adjusted EBITDA is envisioned in the $64.5-$68.5 million band. Adjusted EBITDA is expected to be $245-$249 million for full-year 2023.
Envestnet currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Earnings Snapshots
The Interpublic Group of Companies, Inc. IPG posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. EFX reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from a year ago.
EFX’s total revenues of $1.32 billion fell short of the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from a year ago on a reported basis and 6.5% on a local-currency basis.
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