Envestnet, Inc

Greetings and welcome to the InvestNet fourth 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, Josh Warren, Senior Advisor. Thank you. You may begin.

Good afternoon, everyone. I'm Josh Warren, Chief Financial Officer of InvestNet. Thank you for joining us on today's fourth quarter 2023 earnings call. Before we begin, I'd like to point out that our earnings press release, supplemental presentation, and associated Form 10-K 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'll provide a company update as well as an overview of the company's fourth quarter and full year 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. I'd like to start the call today with a review of our Q4 and full year 2023 results. Our results in Q4, each of which were above the high end of our range, represent our focus on disciplined execution. Q4 revenue was $317.6 million. representing 8% growth over Q4 2022. Adjusted EBITDA was 75.5 million, representing a 24% adjusted EBITDA margin and nearly 600 basis points of margin expansion when compared to Q4 2022. Our adjusted EPS for Q4 was 65 cents, up 44% from the 45 cents we reported in Q4 2022. For the full year 2023, our revenue was $1,246,000,000. Adjusted EBITDA was $251,000,000, representing a 20% overall adjusted EBITDA margin. And our adjusted EPS was $2.12. As we enter 2024 and the next chapter at InvestNet, we have a set of strong fundamentals that we will discuss on today's call that position us well. I'd now like to turn the call over to Chief Executive Officer Bill Krager. Bill. Thank you, Josh.

As you know, this will be my final earnings call as Chief Executive Officer of InvestNet. For 25 years, it has been a privilege to be part of the amazing journey that is our company. From an idea and a good dose of courage, by applying a lot of resilience and creativity, we've built something that is extraordinary. I am proud of what we've accomplished, and perhaps most proud of this. InvestNet is foundational to the financial guidance that advisors deliver to enhance the lives of millions and millions of families. Over the last couple of years, we've worked effectively to make InvestNet even better, taking the necessary steps to bring the company together to enable a highly connected, highly technology-driven, highly data-driven platform to serve the wealth management industry. Today, InvestNet is in a very strong position because of the work that we've done The company is the industry leader by assets, advisors, accounts, market share leader across financial planning, our turnkey asset management offering, and the data insights that we generate and offer to our clients. We are embedded with a great roster of clients and partners, driving an industry ecosystem that powers growth and delivers value. And we have an exceptionally talented and aligned leadership team to deliver the next phase of InvestNet. The InvestNet strategy is aligned to our clients' needs to drive the growth and productivity of advisors by providing the most comprehensive and capable wealth management platform for our industry. We've created scale and competitive advantage with technology, data, and solutions. We've connected the pieces, and we are able to serve all client workflows and business models. Doing this serves investors by delivering revenue growth, operating leverage, and improving free cash flow conversion. I look forward to helping Investnet continue its leadership while advocating for our industry, roadmapping the future of financial advice and the essential impact that it has while deepening relationships with our clients and our partners. I now want to turn the call over to Tom Sipp, who leads Investnet's business lines, for an overview of the drivers of our business, and I'll be back at the end of the call for some closing comments.