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Envestnet (ENV) Surpasses Q1 Earnings Estimates, Gains 5%

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Envestnet, Inc. (ENV - Free Report) reported impressive first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate.

The stock has gained 4.8% since the earnings release on May 7, 2024, in response to the earnings beat.

ENV’s earnings per share (EPS) were 60 cents, surpassing the consensus estimate by 11.1%. The bottom line increased 30.4% from the year-ago quarter. Total revenues of $325 million beat the consensus estimate by a slight margin and improved 8.7% on a year-over-year basis.

The company’s shares have gained 74.5% in the past six months, outperforming the 13.2% rally of the industry it belongs to and the 16% rise of the Zacks S&P 500 Composite.

Envestnet, Inc Price and EPS Surprise


Envestnet, Inc Price and EPS Surprise

Envestnet, Inc price-eps-surprise | Envestnet, Inc Quote

Segmental Revenues

Asset-based recurring revenues of $202.62 million, which represented 62.4% of the top line, increased 14.5% on a year-over-year basis.

Professional services and other non-recurring revenues increased 3.7% from a year-ago quarter to $4.9 million.

Subscription-based recurring revenues of $117.5 million increased marginally from first-quarter 2023 and contributed 36.1% to the top line.

Profitability Performance

Adjusted EBITDA increased 30% from the year-ago figure to $70.4 million. The adjusted EBITDA margin increased 360 basis points year over year to 21.7% in the quarter under discussion.

Balance Sheet & Cash Flow

ENV’s cash and cash equivalents were $61.23 compared with $91.37 million in fourth-quarter 2023. Debt at the end of first-quarter 2024 was $877.84 million, up from $876.61 million in the preceding quarter. ENV generated $19.44 million in cash from operating activities. CapEx was $19 million.


For second-quarter 2024, the company anticipates revenues between $337 million and $345 million. The mid-point ($341 million) of the guided range is lower than the Zacks Consensus Estimate of $342.9 million.

Adjusted EPS is expected to be 60-65 cents. The mid-point of the guided range (62.5 cents) is higher than the consensus estimate of 62 cents. Adjusted EBITDA is anticipated to be $71-$75 million.

Envestnet currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshots of Some Business Service Firms

S&P Global Inc. (SPGI - Free Report) reported impressive first-quarter results.

SPGI’s adjusted EPS (excluding 85 cents from non-recurring items) of $4 surpassed the Zacks Consensus Estimate by 9% and increased 27.3% year over year. Revenues of $3.5 billion beat the consensus estimate by 2.9% and improved 10.5% year over year.

The Interpublic Group of Companies, Inc. (IPG - Free Report) reported mixed first-quarter 2024 results.

IPG’s adjusted earnings (excluding 7 cents from non-recurring items) of 36 cents per share met the Zacks Consensus Estimate but decreased 5.3% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.2 billion surpassed the consensus estimate marginally but decreased 13.4% year over year. Total revenues of $2.5 billion declined 1% and met our estimate.

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