Envestnet focused on expense management and leaning on core investments in the fourth quarter to keep up with economic uncertainty and decreased revenue.

THE BIG PICTURE: In Q4, the wealth-tech giant invested in its platform to enhance efficiency, Chief Executive Bill Crager said during the company’s Q4 earnings call Thursday.

“We streamlined the business to drive greater connectivity, client responsiveness and organizational efficiency,” he said. “We see the collective benefit of all of our businesses working together, the investments made to strengthen the platform and create seamless personalized connected experiences.”

BY THE NUMBERS: In Q4, Envestnet posted:

• Revenue down 8% year over year to $292.9 million; and
• In 2022, the company delivered 20 million insights per day, up from 11 million per day in 2021.

MARKET REACTION: Envestnet’s stock was down 1.9% to $61.75 at market close today, compared to $62.98 at market close Thursday.

FLASHBACK: In the third quarter, Envestnet partnered with platform-as-a-service provider FNZ to launch a digital, integrated solution for real-time account opening.

“The technology integration is underway, and we are on track to be in the marketplace by the second half of this year,” Crager said.

NOTEWORTHY: To further counter economic disruptions, Envestnet looked to its investment in core capabilities and scale for growth, Crager said.

For example, the company is modernizing its platform into the cloud to increase “operating leverage by becoming more efficient, going deeper with clients and growing high margin business,” he said.

FUTURE LOOK: Moves in 2022, including Envestnet’s decision to repurchase the bulk of its 2023 convertible notes and issuing 2027 convertible notes puts it in “a strong financial position to continue executing our growth strategy and to prudently pursue attractive acquisitions and partnerships that may arise in the marketplace,” Crager said.

Past Envestnet acquisitions include billing technology company Redi2 Technologies, business intelligence firm Truelytics and retirement platform 401kplans.com, according to the company’s earnings presentation.

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