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Envestnet, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a total revenue of $345.9 million for the quarter, an increase from $316.8 million in the same quarter of the previous year. This growth is attributed to an increase in asset-based recurring revenue, which rose to $224.98 million from $193.9 million.
Subscription-based recurring revenue slightly increased to $115.4 million from $114.9 million, while professional services and other revenue decreased to $5.6 million from $8.0 million.
Operating expenses for the quarter totaled $338.9 million, up from $316.2 million in the previous year. The increase in expenses is primarily due to higher direct expenses and general and administrative costs.
The company reported a net loss of $1.7 million for the quarter, compared to a net income of $7.1 million in the previous year. The loss is mainly due to increased operating expenses and other expenses.
Envestnet's cash and cash equivalents increased to $193.4 million as of September 30, 2024, from $91.4 million at the end of 2023. The increase is attributed to cash provided by operating activities.
The company announced a planned merger with BCPE Pequod Buyer, Inc., which was approved by shareholders on September 24, 2024. The merger is expected to close in the fourth quarter of 2024.
Envestnet identified a goodwill impairment of $96.3 million in its Data & Analytics segment during the second quarter of 2024, reflecting a strategic shift in business priorities.
The filing also notes a deconsolidation of a non-controlling interest, resulting in a $19.5 million non-cash gain.
The company continues to focus on expanding its financial wellness ecosystem by leveraging technology and solutions to empower financial advisors and service providers.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Envestnet Inc quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.