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Envestnet (ENV) Q1 Earnings Beat Estimates, Revenues Lag
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Envestnet, Inc. (ENV - Free Report) reported mixed first-quarter 2023 results with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings (excluding $1.22 from non-recurring items) came in at 46 cents per share, beating the Zacks Consensus Estimate by 4.6% and our estimate by 2.2%. Adjusted earnings however decreased 2.1% from the year-ago figure.
Total revenues of $298.7 million missed the consensus estimate by 0.8% and our estimate by 0.5%. Revenues decreased 7% on a year-over-year basis.
Envestnet’s shares have declined 16.9% in the past year against the 2.2% increase in the industry it belongs to.
Asset-based recurring revenues, which constituted 59% of total revenues in the quarter, decreased 13% on a year-over-year basis. Subscription-based recurring revenues increased 2% from the prior-year period and constituted 39% of total revenues. Professional services and other non-recurring revenues increased 20% from the prior-year period.
Adjusted EBITDA decreased slightly from the year-ago reported figure to $55.4 million. The current adjusted EBITDA margin increased to 18.55% from 17.3% reported a year ago.
Balance Sheet & Cash Flow
As of Mar 31, 2023, Envestnet had cash and cash equivalents of $52.7 million, down from $162.2 million reported a quarter ago. Long-term debt as of the end of the first quarter was $873 million, up from $871.8 million reported a quarter ago.
ENV used $33.5 million in cash from operating activities. CapEx was $4.4 million.
2023 Guidance
For the second quarter of 2023, the company expects revenues to be in the $312-315 million band. The Zacks Consensus Estimate of $317.1 million lies above the guided range. Adjusted earnings per share are expected to be 45-46 cents, which is below the current Zacks Consensus Estimate of 50 cents.
For 2023, revenues are expected to be in the $1.26-1.27 billion band. The Zacks Consensus Estimate of $1.28 billion lies above the guided range. Adjusted earnings per share are expected to be in the $2.11-$2.19 band for the full year, the midpoint of which lies above the current Zacks Consensus Estimate of $2.10
The adjusted EBITDA is expected to be $53-$55 million in the first quarter and $253-$260 million for the full year. The company expects an adjusted EBITDA margin of 20-20.5%.
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Fiserv reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the consensus estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimate by 4.65%.
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Envestnet (ENV) Q1 Earnings Beat Estimates, Revenues Lag
Envestnet, Inc. (ENV - Free Report) reported mixed first-quarter 2023 results with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings (excluding $1.22 from non-recurring items) came in at 46 cents per share, beating the Zacks Consensus Estimate by 4.6% and our estimate by 2.2%. Adjusted earnings however decreased 2.1% from the year-ago figure.
Total revenues of $298.7 million missed the consensus estimate by 0.8% and our estimate by 0.5%. Revenues decreased 7% on a year-over-year basis.
Envestnet’s shares have declined 16.9% in the past year against the 2.2% increase in the industry it belongs to.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote
Quarter Details
Asset-based recurring revenues, which constituted 59% of total revenues in the quarter, decreased 13% on a year-over-year basis. Subscription-based recurring revenues increased 2% from the prior-year period and constituted 39% of total revenues. Professional services and other non-recurring revenues increased 20% from the prior-year period.
Adjusted EBITDA decreased slightly from the year-ago reported figure to $55.4 million. The current adjusted EBITDA margin increased to 18.55% from 17.3% reported a year ago.
Balance Sheet & Cash Flow
As of Mar 31, 2023, Envestnet had cash and cash equivalents of $52.7 million, down from $162.2 million reported a quarter ago. Long-term debt as of the end of the first quarter was $873 million, up from $871.8 million reported a quarter ago.
ENV used $33.5 million in cash from operating activities. CapEx was $4.4 million.
2023 Guidance
For the second quarter of 2023, the company expects revenues to be in the $312-315 million band. The Zacks Consensus Estimate of $317.1 million lies above the guided range. Adjusted earnings per share are expected to be 45-46 cents, which is below the current Zacks Consensus Estimate of 50 cents.
For 2023, revenues are expected to be in the $1.26-1.27 billion band. The Zacks Consensus Estimate of $1.28 billion lies above the guided range. Adjusted earnings per share are expected to be in the $2.11-$2.19 band for the full year, the midpoint of which lies above the current Zacks Consensus Estimate of $2.10
The adjusted EBITDA is expected to be $53-$55 million in the first quarter and $253-$260 million for the full year. The company expects an adjusted EBITDA margin of 20-20.5%.
Envestnet currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Snapshot
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Fiserv reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the consensus estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimate by 4.65%.