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Envestnet (ENV) Rides on Strong Revenue Generation Capacity
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Envestnet, Inc. (ENV - Free Report) is currently benefiting from a strong asset-based and subscription-based recurring-revenue generation capacity.
The company reported fourth-quarter 2022 adjusted earnings per share of 45 cents, which outpaced the Zacks Consensus Estimate by 4.7% but declined 10% year over year. Revenues of $292.9 million missed the consensus mark by 1.1% and decreased 8.4% year over year.
How is Envestnet Doing?
Envestnet’s business model ensures solid asset-based and subscription-based recurring-revenue generation capacity. The company provides asset-based and subscription-based services on a business-to-business-to-consumer basis to financial services clients. These clients offer solutions based on Envestnet’s platform to their end users. On a business-to-business basis, the company delivers an open platform to customers and third-party developers through an open API framework. Envestnet’s recurring revenues increased 10.2% in 2020, 20.2% in 2021 and 4.5% year over year in 2022, respectively.
The company’s technology-enabled services are expected to register handsome growth as trends such as increasing demand for personalized wealth management services and cost-effective guided advice are creating significant market opportunities.
Envestnet continues to focus on technology development to improve operational efficiency, increase market competitiveness, address regulatory demands and cater to client-driven requests for new capabilities. The company’s technology design facilitates significant scalability.
Some Risks
Envestnet's current ratio at the end of the fourth quarter was pegged at 0.93, lower than the prior-year quarter's current ratio of 1.93. A decline in the current ratio is not desirable, as it indicates that the company may have problems meeting its short-term debt obligations.
Envestnet belongs to the Zacks Financial Transaction Services industry. Here’s how the following stocks from the same space performed this earnings season:
Equifax (EFX - Free Report) reported stellar fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.52 per share beat the Zacks Consensus Estimate by 2.7% but decreased 17.4% on a year-over-year basis. Revenues of $1.2 billion beat the Zacks Consensus Estimate by 1.5% but decreased 4.4% year over year.
Green Dot Corporation (GDOT - Free Report) also delivered strong fourth-quarter 2022 results with earnings and revenues beating the respective Zacks Consensus Estimate.
GDOT’s quarterly non-GAAP earnings of 34 cents per share beat the consensus estimate by 54.6% and increased 25.9% on a year-over-year basis. Non-GAAP operating revenues of $336.6 million beat the consensus mark by 5.1% and increased 1.8% year over year.
Fiserv’s fourth-quarter 2022 earnings met the Zacks Consensus Estimate while revenues beat the same.
FISV’s Adjusted earnings per share of $1.91 increased 21.7% year over year. Adjusted revenues of $4.36 billion beat the Zacks Consensus Estimate by 0.8% and increased 2.4% year over year.
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Envestnet (ENV) Rides on Strong Revenue Generation Capacity
Envestnet, Inc. (ENV - Free Report) is currently benefiting from a strong asset-based and subscription-based recurring-revenue generation capacity.
The company reported fourth-quarter 2022 adjusted earnings per share of 45 cents, which outpaced the Zacks Consensus Estimate by 4.7% but declined 10% year over year. Revenues of $292.9 million missed the consensus mark by 1.1% and decreased 8.4% year over year.
How is Envestnet Doing?
Envestnet’s business model ensures solid asset-based and subscription-based recurring-revenue generation capacity. The company provides asset-based and subscription-based services on a business-to-business-to-consumer basis to financial services clients. These clients offer solutions based on Envestnet’s platform to their end users. On a business-to-business basis, the company delivers an open platform to customers and third-party developers through an open API framework. Envestnet’s recurring revenues increased 10.2% in 2020, 20.2% in 2021 and 4.5% year over year in 2022, respectively.
The company’s technology-enabled services are expected to register handsome growth as trends such as increasing demand for personalized wealth management services and cost-effective guided advice are creating significant market opportunities.
Envestnet continues to focus on technology development to improve operational efficiency, increase market competitiveness, address regulatory demands and cater to client-driven requests for new capabilities. The company’s technology design facilitates significant scalability.
Some Risks
Envestnet's current ratio at the end of the fourth quarter was pegged at 0.93, lower than the prior-year quarter's current ratio of 1.93. A decline in the current ratio is not desirable, as it indicates that the company may have problems meeting its short-term debt obligations.
Envestnet belongs to the Zacks Financial Transaction Services industry. Here’s how the following stocks from the same space performed this earnings season:
Equifax (EFX - Free Report) reported stellar fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.52 per share beat the Zacks Consensus Estimate by 2.7% but decreased 17.4% on a year-over-year basis. Revenues of $1.2 billion beat the Zacks Consensus Estimate by 1.5% but decreased 4.4% year over year.
Green Dot Corporation (GDOT - Free Report) also delivered strong fourth-quarter 2022 results with earnings and revenues beating the respective Zacks Consensus Estimate.
GDOT’s quarterly non-GAAP earnings of 34 cents per share beat the consensus estimate by 54.6% and increased 25.9% on a year-over-year basis. Non-GAAP operating revenues of $336.6 million beat the consensus mark by 5.1% and increased 1.8% year over year.
Fiserv’s fourth-quarter 2022 earnings met the Zacks Consensus Estimate while revenues beat the same.
FISV’s Adjusted earnings per share of $1.91 increased 21.7% year over year. Adjusted revenues of $4.36 billion beat the Zacks Consensus Estimate by 0.8% and increased 2.4% year over year.