Envestnet Inc

ENV: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$97.00	Snbwpqn	Fcwtcglnz

Envestnet Earnings: Wealth Solutions Is Okay but Continued Weakness at Yodlee Data and Analytics

Rajiv Bhatia

Aug 4, 2023

Envestnet reported an okay second quarter. Revenue of $312 million were 1% below the FactSet consensus while adjusted EBITDA of $58 million and adjusted EPS of $0.46 was roughly in line. The firm’s wealth solutions business is being affected by industrywide trends such as the shift toward cash while the Yodlee business is experiencing continued softness. While management only modestly tweaked its guidance, we note that the firm’s profit guidance is weighted heavily toward the fourth quarter. Overall, we are maintaining our fair value estimate of $54 as market appreciation is offset by lower data and analytics revenue.

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