1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Envestnet reported a solid third quarter, with revenue and earnings topping its guidance and consensus. Driven in part by a rising market, revenue of $253 million beat the FactSet consensus of $247 million and company outlook of $244.5 million-$246.0 million. Lower-than-expected expenses (partly from COVID-19), meant that adjusted EBITDA increased 24% to $67.6 million and beat the consensus of $57.5 million and outlook of $56 million-$57 million.
Envestnet provides wealth-management technology and solutions to registered investment advisors, banks, broker/dealers, and other firms. Its Tamarac platform provides trading, rebalancing, portfolio accounting, performance reporting, and client relationship management software to high-end RIAs. Envestnet’s portfolio management consultants provides research services and consulting services to assist advisors, including vetted third-party managed account products. In November 2015, Envestnet acquired Yodlee, a provider of data aggregation.
