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Envestnet's Shares Barely Move After Q3 Earnings Beat, Revenues Lag

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Envestnet, Inc. reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate and revenues missing the same.

See Zacks Earnings Calendar to stay ahead of market-making news.

The stock price has not witnessed any significant impact of the earnings beat since the company released results on Nov. 7, 2024.

ENV’s earnings per share were 70 cents, beating the Zacks Consensus Estimate by 2.9%. The bottom line increased 25% year over year. Total revenues of $345.9 million missed the consensus estimate by 1.2% but rose 9.2% on a year-over-year basis.

The company’s shares have gained 67.2% in the past year, outperforming the industry and the Zacks S&P 500 composite’s growth of 35.1% and 33%, respectively.

One-Year Price Performance

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Envestnet’s Quarterly Details

Asset-based recurring revenues of $225 million, which represented 65% of the top line, increased 16% on a year-over-year basis. Professional services and other non-recurring revenues declined 30% from a year-ago quarter to $5.6 million. Subscription-based recurring revenues of $115.4 million remained flat compared with the third quarter of 2023 and contributed 36% to the total revenues.

Adjusted EBITDA gained 23% from the year-ago figure to $80.5 million. The adjusted EBITDA margin increased 270 basis points year over year to 23.3% in the quarter under discussion.

ENV’s cash and cash equivalents were $193.4 million compared with $122 million in the preceding quarter. Debt at the end of the third quarter of 2024 was $892.5 million, which was flat with the previous quarter. ENV generated $95.4 million in cash from operating activities. CapEx was $767 thousand and the adjusted free cash flow amounted to $76.2 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 ENV’s Peers

Corpay (CPAY - Free Report) reported impressive third-quarter 2024 results.

CPAY’s earnings per share of $5 beat the consensus estimate by a slight margin and increased 11.4% on a year-over-year basis. The total revenues of $1 billion outpaced the consensus estimate marginally and grew 6% from the year-ago quarter.

Insperity, Inc. (NSP - Free Report) reported mixed third-quarter 2024 results.

NSP’s adjusted earnings (excluding 32 cents from non-recurring items) of 39 cents per share outpaced the consensus estimate by 21.9% but decreased 73.3% year over year. Revenues of $1.6 billion missed the Zacks Consensus Estimate by a slight margin but increased from the year-ago quarter’s actual.

IQVIA Holdings Analytics Inc. (IQV - Free Report) reported impressive third-quarter 2024 results.

IQV’s adjusted earnings were $2.8 per share, outpacing the Zacks Consensus Estimate by 1.1% and rising 2.3% on a year-over-year basis. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1 and grew 4.3% from the year-ago quarter.


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