Envestnet, Inc

Greetings and welcome to the InvestNet third quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Josh Warren, Incoming Chief Financial Officer. Thank you, Mr. Warren. You may begin.

Thank you, and good afternoon, everyone. I'm Josh Warren, Incoming Chief Financial Officer of InvestNet. Thank you for joining us on today's third quarter 2023 earnings call. Before we begin, I'd like to point out that our earnings press release, supplemental presentation, and associated Form 10-Q can be found under the Investor Relations section of our website at investnet.com. This call is being webcast live, and a replay will be available for one month under the investor relations section of our website as well. During the call, we will be discussing certain forward-looking information. This information is based on our current expectations and is not a guarantee of future performance. I encourage you to review the cautionary statement on slides two and three of the supplemental presentation for the potential risks, uncertainties, and other factors that could cause actual results to differ from those expressed by the forward-looking statements. Further information can be found in our regular SEC filings. During this call, we'll be referring to certain as-adjusted financial measures. Please refer to the appendix in our supplemental presentation for a reconciliation of these as-adjusted financial measures to the most directly comparable GAAP measures. Joining me on today's call are Bill Krager, InvestNet's Chief Executive Officer, and Tom Sipp, Executive Vice President for Business Lines. On our call this afternoon, we will provide a company update as well as an overview of the company's third quarter 2023 results. After our prepared remarks, we will open the call to questions. During the Q&A, please limit yourself to one question plus one follow-up. You may get back into the queue if you have additional questions. And with that, I'll turn the call over to Bill.

Thank you, Josh. InvestNet leads the wealth industry because we serve better, we scale better, and we have consistently and repeatedly delivered on the future needs of our clients. We had the vision and conviction that our industry's ability to deliver greater advice required an automated, connected technology platform with a broader set of solutions that is powered by data intelligence. We are delivering this industry-leading environment, making us more embedded and more essential to our clients. Over the past two years, we invested very specifically to extend our market-leading position and to take share, and also to increase the operating and leverage and margins in our business. Our investment cycle was necessary, and it is now complete. We've integrated systems, embedded automation in our processes, and upgraded our technology. As we review our results and accomplishments tonight, there are three things to focus on. First, our competitive position is unparalleled and is being validated by the marketplace we serve. We are significantly extending our competitive position by delivering a fully connected environment with by far industry leading scale. We're confident in the growth opportunity ahead which is evidenced by client and market share gains in a challenging macro environment. Second, we are better servicing our clients with greater efficiency, leading them to increase their engagement with us. Over the last 18 months, enabled by our investments, our client service scores have risen dramatically, which shows up in our 95-plus percent wealth client renewal rates. Also, our clients are contracting to do more with us. using more of our integrated services and solutions with our contract addendums up 30% year over year. And then third, the long-term sustainable operating leverage we have created will meaningfully increase shareholder value. The automation and consolidation of our platforms is delivering greater operating and expense efficiency. Since the start of 2023, we have reduced our operating expenses by over $60 million on a run rate basis. We are structurally a higher margin company than we were before. Our leading competitive position and the ability to take share, along with significantly enhanced operating leverage, are the gains we are experiencing based on the success of our investment cycle. I now want to introduce you to Tom Sipp. Tom leads the business lines for InvestNet, and he's going to review our third quarter results.