Envestnet, an advisor-technology company, reported a fourth-quarter loss of $183.2 million, or $3.35 per share. The company also disclosed that they had an adjusted net income of $43 million, or 65 cents per share, which represents a 44% increase year over year.
Financial Performance
Total revenue for the fourth quarter saw an 8% increase, totaling $317.6 million. However, Envestnet experienced a significant hit to its bottom line due to a $191.8 million goodwill impairment charge. This charge resulted in total operating expenses jumping 55% to $496.3 million.
Market Reaction
Share prices of Envestnet remained flat in after-hours trading following the announcement of the financial results. The company is facing challenges that have impacted its stock price, causing a decrease of 1.3% in 2024 and a drop of 22% over the past 12 months.
Company Developments
Throughout the past year, Envestnet has undergone changes, including staff layoffs and considerations for selling data aggregator Yodlee. Additionally, in January, it was announced that Bill Crager, the CEO and co-founder, would be stepping down at the end of March.
Envestnet continues to provide advisors with technology and asset management services, navigating through a challenging period while striving to adapt to market conditions.
Envestnet Celebrates 25 Years of Industry Leadership
Envestnet has been a cornerstone in the financial industry for the past 25 years, with a strong foundation and a commitment to delivering excellence for their clients and the industry as a whole. The company's CEO, Crager, expressed gratitude for the privilege of being part of this amazing journey.
Growth and Financial Overview
Envestnet saw an increase in the number of advisors served, reaching 108,670 in the fourth quarter. The company reported having $91.4 million in cash and cash equivalents with $892.5 million in outstanding debt as of December 31st. This debt comprises of convertible notes maturing in 2025 and 2027.
Financial Performance
Despite reporting a full-year net loss of $238.7 million for 2023, Envestnet remains resilient with a total revenue of $1.2 billion—flat from the previous year. The company's commitment to its clients and industry partners remains unwavering.
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