ENVESTNET Reports Positive Earnings for Q2 of FY2023
August 29, 2023
☀️Earnings Overview
For the second quarter of fiscal year 2023, ENVESTNET ($NYSE:ENV) reported total revenue of USD 312.4 million, a decrease of 2.0% from the same quarter in the previous year. Net income for the quarter stood at USD -21.4 million, down from the -23.3 million posted in the same quarter of the previous year.
Market Price
On Thursday, ENVESTNET reported positive earnings for Q2 of FY2023, with the stock opening at $60.1 and closing at $59.8, down by 1.0% from its prior closing price of 60.4. This marks a notable and positive turn of events for the company, following a largely disappointing performance in the previous quarter. The positive earnings were driven by a strong performance in the company’s core business areas, including wealth management, asset management, and advisory services. ENVESTNET also saw growth in its client base, and in particular, an increase in the number of new accounts opened during the quarter. This led to an overall improvement in the company’s net income.
In addition, ENVESTNET continued to benefit from a favorable regulatory environment in the United States, which has helped to create a more conducive business landscape for the company. The company has also seen a significant influx of venture capital investment over the past few quarters, which has enabled it to invest more heavily in its various business units. Overall, it appears that ENVESTNET is well positioned to capitalize on the opportunities presented by the current market conditions, and it looks set to continue its positive performance into the next quarter. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Envestnet. ENVESTNET_Reports_Positive_Earnings_for_Q2_of_FY2023″>More…
| Total Revenues | Net Income | Net Margin |
| 1.21k | -106.44 | -8.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Envestnet. ENVESTNET_Reports_Positive_Earnings_for_Q2_of_FY2023″>More…
| Operations | Investing | Financing |
| 103.66 | -249.78 | -132.65 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Envestnet. ENVESTNET_Reports_Positive_Earnings_for_Q2_of_FY2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.05k | 1.32k | 13.28 |
Key Ratios Snapshot
Some of the financial key ratios for Envestnet are shown below. ENVESTNET_Reports_Positive_Earnings_for_Q2_of_FY2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.1% | 42.0% | -4.5% |
| FCF Margin | ROE | ROA |
| -2.1% | -4.7% | -1.6% |
Analysis
At GoodWhale, we have analyzed the fundamentals of ENVESTNET to create an in-depth analysis of their financial and business aspects. Our Risk Rating has determined that ENVESTNET is a medium risk investment. We have also detected two risk warnings in their income sheet and balance sheet. If you are interested in finding out more, register with us and we will be happy to provide more information. More…
Peers
The competition between Envestnet Inc and its competitors is fierce. Each company is vying for market share and customer loyalty. Envestnet Inc has a strong product offering and a loyal customer base.
However, its competitors are not to be underestimated. Liquid Holdings Group Inc, Clearwater Analytics Holdings Inc, and Centergistic Solutions Inc are all viable competitors in the market.
– Liquid Holdings Group Inc ($OTCPK:LIQDQ)
Liquid Holdings Group Inc is a financial technology company that provides an integrated suite of cloud-based solutions for the global hedge fund and active trading markets. The company’s solutions include order and execution management, portfolio and risk management, and compliance and reporting. Liquid Holdings Group Inc is headquartered in New York, New York.
– Clearwater Analytics Holdings Inc ($NYSE:CWAN)
Clearwater Analytics Holdings Inc is a provider of cloud-based software solutions for the global insurance industry. The company’s software solutions are used by insurance companies and other financial institutions to manage their investment portfolios, including risk management and compliance. Clearwater’s software solutions are delivered through a software-as-a-service (SaaS) model and are available on a subscription basis.
Summary
ENVESTNET‘s Q2 earnings results for FY2023 showed a decline in revenues of 2.0% year-over-year. Net income for the quarter was at USD -21.4 million, a slight improvement from last year’s figure of -23.3 million. For investors, ENVESTNET continues to face several challenges, including uncertainty in the market and a lack of clarity about their future strategies.
Despite these challenges, the company offers some attractive opportunities for investors, such as their strong financials and their commitment to innovation. For those looking to invest in ENVESTNET, it is important to be aware of the company’s risks and potential rewards when making decisions.
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