2010 Q4 Earnings: Envestnet Revenue From AUM Increases 33%

Advisors' move to independence helps Q4 results

Wealth manager Envestnet reported financial results Thursday for its fourth quarter and full year ended Dec 31, 2010.

Revenues from assets under management (AUM) or assets under administration (AUA) increased 33% to $21.8 million for the fourth quarter of 2010 from $16.4 million for the fourth quarter of 2009. Total revenues, which includes licensing and professional services fees, increased 27% to $27.6 million for the fourth quarter of 2010 from $21.8 million for the fourth quarter of 2009

Adjusted EBITDAincreased 56% to $5.5 million for the fourth quarter of 2010 from $3.6 million for the fourth quarter of 2009

Adjusted net incomeincreased to $2.3 million, or $0.07 per diluted share, for the fourth quarter of 2010 from an adjusted net loss of $(0.02) million, or $(0.02) per diluted share, for the fourth quarter of 2009

Net income attributable to common stockholders was $0.9 million, or $0.03 per diluted share, for the fourth quarter of 2010 compared to a net loss attributable to common stockholders of $(3.2) million, or $(0.25) per diluted share, for the fourth quarter of 2009

Revenues from AUM or AUA increased 34% to $76.0 million for 2010 from $56.9 million for 2009; total revenues increased 26% to $98.1 million for 2010 from $77.9 million for 2009

Adjusted EBITDA increased 71% to $18.1 million for 2010 from $10.6 million for 2009

Adjusted net income increased 212% to $7.6 million, or $0.24 per diluted share, for 2010 from $2.4 million, or $0.06 per diluted share, for 2009

Net loss attributable to common stockholders was $(1.0) million, or $(0.05) per diluted share, for 2010 compared to $(1.6) million, or $(0.12) per diluted share, for 2009

“Strong industry trends are supporting our growth,” Jud Bergman, founder and chief executive officer of Envestnet, said in a statement. “More advisors are turning independent, more investors are seeking a trusted advisor, and because of regulatory and other changes, a fiduciary standard of care is emerging as the industry standard. As a result, more advisors are turning to Envestnet to help them better serve their high net worth and affluent clients. Our recent asset flows and a strong pipeline of new business opportunities position Envestnet for continued growth in revenue and profitability in 2011.”

Read AdvisorOne's 2010 Q4 earnings calendar for the financial sector for release dates and links to earnings stories.

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