Analyst Note| Rajiv Bhatia, CFA |
Narrow-moat Envestnet started 2021 on solid footing with results modestly beating expectations. Revenue of $275 million was 1% ahead of the Visible Alpha consensus of $273 million and above the firm’s outlook of $270 million-$273 million. Adjusted EBITDA of $68.3 million beat the consensus of $65.0 million and guidance of $63 million-$65 million. Given the strong quarter and continued rise in equity markets, Envestnet tweaked its full-year revenue and adjusted EBITDA outlook higher. We will maintain our narrow moat rating and fair value estimate of $65 per share as increases in revenue are offset by a higher assumed long-term tax rate.