Envestnet, Inc

good day everyone and welcome to the investnet fourth quarter 2020 earnings conference call today's call is being recorded at this time i would like to turn the conference over to mr chris curtis division cfo and head of investor relations please go ahead sir thank you and good afternoon i'm joined today by our ceo bill crager and cfop derigo our earnings press release

supplemental information, and associated form 8K can be found at investnet.com under the investor relations section. During the call, we will be discussing certain forward-looking information. Such comments are not guarantees of future performance, and therefore you should not put undue reliance on them. We also will be discussing certain non-GAAP information. Please refer to our press release and SEC filings for more information on forward-looking statements, risk factors associated with our business, and require disclosures related to non-GAAP financial information. With that, I will turn the call over to Bill.

Thank you, Christopher, and thank you for joining us today. As we look back on 2020, we recognize how hard a year it was for so many people, the pandemic impacting every single person's life and for so many in devastating and tragic ways. We honor the incredible work of healthcare workers, and the frontline workers who have shown such brave resilience and dedication over these months. While the difficult and practical implications of the pandemic have played out, a digital rumble began to shake across the economic landscape. Cloud-based companies like InvestNet engaged from the first moment, leveraging our service and support infrastructure to help our clients navigate these disrupted times. We also spent the year paving the way toward an exciting and accelerated digital future. Last year, we took swift action to ensure the safety of our employees. We met the extraordinary demands of the year, managing historic account and trade volumes as we grew the company and improved the way we served our clients. We added a net 1.5 million accounts last year. completed 15 million service tasks, and executed an incredible 76 million individual trade orders. This was executed by our team as we worked remotely and while our clients worked remotely. We completed a significant and important initiative to streamline our organizational structure and add leadership talent, which positions us to operate more as one investment, both internally and also for the marketplaces that we serve. And despite the headwinds created by March market values, we grew impressively, delivering very solid financial results. We reported just shy of $1 billion in revenue, which is 10% higher than a year ago. And adjusted EBITDA grew 26% compared to 2019. And importantly, We charted the course for advancing a tremendous opportunity for our industry to better serve its customers, further expanding our strategic purpose, developing a bold investment plan to capture the sizable opportunity before us as we make financial wellness a reality for everyone. Over our history, InvestNet has been very successful in anticipating, investing in, and driving the future. We began 20 years ago as a TAMP, a turnkey asset management platform, a category we invented, and we continue to lead by a substantial margin. Over time, our capabilities expanded. We unbundled our own investment solutions from the core technology, enabling advisors in powerful new ways, opening access to the industry's largest marketplace of investment solutions and strategies. We launched the first unified managed account, the UMA, bringing multiple investment strategies into one brokerage account, improving how advisors could optimize asset allocation and tax efficiency within client portfolios. This powerful integration of technology with investment product made it far easier for advisors to deliver portfolio strategies while to help drive down the costs for end investors. We forged an integrated future of data and planning-centric advice for advisors to deliver to their clients. Our acquisitions of Yodlee in 2015 and MoneyGuide in 2019 were critical as we evolved into an industry-leading integrated wealth platform. Impact investing, overlay solutions, direct indexing, integrated access to credit, insurance, and just announced this week, trust services, The scope of what we are doing, the progress we are making in each of these areas, and the growth potential they represent for us are very important to note. The scale, capabilities, and how we utilize data are significant competitive differentiators for us, and we plan to build on it. Investnet is proud to work with thousands of firms, including 17 of the 20 largest US banks, 47 of the 50 largest wealth management and brokerage firms, over 500 of the largest RAs, and hundreds of fintech companies. We are the industry leader in wealth tech, supporting more than 106,000 financial advisors, 13 million investor accounts, and more than $4.5 trillion in assets. We have the scale and infrastructure to grow from here. Our consumer financial data aggregation capabilities are unmatched. 17,000 data sources, 470 million connected accounts, which grew by over 62 million last year, 35 million users, and also in the past year nearly 3 million households that benefited from a financial planning experience using our award-winning software. We and our customers financial services firms and the advisors who work for them are improving the financial lives of millions of people. This has enabled us to become the financial wellness ecosystem powering the industry into the future. We are using modern technology to create linkages and building out a network that becomes an evolving system, ever adapting, ever engaging, ever improving connections that the consumer defines the boundaries of and will call upon when, where, and how they choose. This is a bigger vision, one that will provide our customers the superpower to engage in intelligent, holistic servicing of the consumer's financial life. That's why we're accelerating our investments in the ecosystem. These investments, which I've been referencing for the past few earnings calls, are in three areas. We are making major enhancements to our already strong capabilities on behalf of our existing customers. We're making it easier for them to work with us, easier for them to leverage all that we offer, eliminating friction from the process. For instance, we're providing an integrated trading environment that will bring together the feature sets of InvestNet, Folio Dynamics, and Tamarack into a singular tool Advisors will have the entire universe of investment strategies and solutions just a click away. We're also digitizing and hyper-personalizing more of the end consumer experience with more use of data, intelligence, and insight. The second area is data. Data is embedded in all that we do. We've been redefining the way data is used to create better intelligence, insight, and guidance for advisors to help their clients. Nobody else has a data engine quite like this. InvestNet can connect the data from a person's daily financial transactions with our market-leading financial planning capability, which we've broken down into powerful, focused financial apps that tie into a financial strategy, and with a click, advisors can then execute on it. We are using more and more of the intelligence in our data to drive recommended actions. For example, our recently launched recommendations engine addresses the individual's needs against the backdrop of an extraordinary data set. We are seeing promising evidence as firms use the data to grow faster and discover new opportunities within their existing customer base. Digital experience is the third area of investment for us. We are on the cusp of making this intelligent, connected financial life a reality with our innovative digital environment for end consumers, powerfully taking the parts of a financial life and bringing them together in an extraordinary and accessible experience. We will empower advisors to offer this as the financial center for their clients in a powerful way that they have not experienced before. This is just the start of the progress that we are making. With InvestNet at the center of the financial wellness ecosystem, we can engage with future partners in incredibly value-creating ways. Our strategy opens a network of potential partnerships that expands far beyond our current marketplace. Beyond our walls, an existing network of investment managers, insurance companies, lenders, banks, custodians, broker-dealers, and RIA firms. An example could be in healthcare or even in personal wellness. We'll also open our platform and inspire third-party developers who can create new apps addressing emerging marketplace needs and or utilizing our infrastructure to engage underserved parts of the financial services market. In doing so, we gain access to millions of consumers. We can improve their financial lives by deploying InvestNet solutions through a broader network of FinTech companies and non-traditional outlets that are utilizing embedded finance as part of their strategy, while providing the essential bridge back to full-service advice within our advisor community. As the orchestrator of this large and growing ecosystem, the revenue potential for us is significant. While life changed over the course of the last year, in many ways, it also sped up. We sped up as well. Trends that have been emerging for years are accelerating at a faster pace, more digital, more intelligent, more consumer-driven. Consumer expectations have grown so quickly, whether it's a grocery delivery, mortgage approval, or the ability to open and fund a new investment account. And we are leading our industry in helping our customers meet the expectations of consumers now and into the future. I wrote about this in a white paper that we published earlier this week called The Intelligent Financial Life. Our supplemental deck includes a link. I encourage you to read it and watch the related video. In a nutshell, here's what it says. Today, most people have two distinct financial lives, how they interact with their money each day and then how they plan for their money into the future. Neither of these connects with each other, resulting in a complex challenge for the individual, oftentimes leading to extraordinary stress in their lives. The white paper was a call to action for our industry, a playbook for more deeply engaging and impacting the financial lives of consumers while unlocking tremendous opportunities for companies that enable this. What's required to empower this intelligent financial life is an interconnected ecosystem that brings it all together for the consumer. We, InvestNet, are uniquely positioned to deliver on the intelligent financial life by leaning into our ecosystem, expanding the ability for InvestNet and other participants in our vast and growing network to deliver what the consumer is demanding and to capitalize on this large and quickly growing opportunity. The outcome of this strategy is connecting people with their money and empowering more impactful decisions in ways financial consumers have not experienced before. For InvestNet, it means a broader reach into the market, faster revenue growth as the model is utilized, and more operating leverage from our increasingly scaled infrastructure, yielding a higher profitability in the long run. The opportunity to create value for all participants in our ecosystem is massive and growing. With InvestNet at the center of it, we can curate, connect, and orchestrate everything that can impact a consumer's financial life, empowering advisors and firms to reach deeper into relationships, doing more, adding value, creating growth. With our industry-leading footprint and capabilities, there is no better firm positioned to capitalize on this opportunity than InvestNet. And the time to do this is now. I'll be back with some closing comments. But first, let me turn it over to Pete.