Wealth tech giant Envestnet continued its tech modernization efforts in the third quarter, boosted by new partnerships, product launches and footprint expansion plans.

As the Berwyn, Pa.-based company grew, its revenue, users and ultimately expenses in Q3 all inched up year over year:

• Envestnet’s total revenue inched up 1% to $306.7 million;

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  The tech company’s data and analytics usership increased to 37 million, up from 25 million in 2019 amid growing demand; and

• Expenses, too, increased 7% YoY to $307.7 million as cost of revenue, compensation and benefits and general administration grew.

The increase in adoption of Envestnet’s offerings was attributed to the tech company’s focus on strategic partnerships, new wins and investment in technology, Chief Executive Bill Crager said during Tuesday’s earnings call, noting, “We are continuing to digitize, streamline and foster more productive partnerships.”

For example, during the third quarter Envestnet partnered with both Tata Consultancy Services (TCS) and wealth platform FNZ to “create a fully end-to-end digital environment that will automate, scale and fully digitize,” Crager said.

In addition to the strategic partnerships, in Q3 Envestnet fully integrated business intelligence platform Truelytics, which the fintech acquired earlier this year. The company also launched its Envestnet Wealth Data Platform and started expanding its footprint through a recent national credit union relationship, Crager said, without naming the credit union.

Creating efficiencies

Looking ahead, the company is focused on creating internal efficiencies through its recent partnerships, Crager said. More specifically, the agreement with TCS is expected to provide operational cost savings of $10 million to $13 million in 2023; Envestnet also plans to reduce its personnel by 20% by the end of this year.

Envestnet is “rebalancing the organization to be more efficient in all areas of our business,” Crager added.

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