Envestnet Earnings: Decent Operating Results but Outlook Underwhelms

Envestnet reported decent operating results in the fourth quarter but a tepid and lower visibility outlook. Revenue of $318 million in the fourth quarter beat our estimate of $311 million and the FactSet estimate of $312 million, with wealth solutions subscriptions ahead of our estimate. On this $318 million, Envestnet generated $76 million in adjusted EBITDA, which beat our consensus estimates as the firm’s restructuring efforts are reducing adjusted expense growth, and the company benefited from some expense timing. We maintain our narrow moat rating and $48 fair value estimate per share on Envestnet.