Envestnet Inc (ENV) 2023 Q3 法說會逐字稿

Greetings, and welcome to the Envestnet Third Quarter 2023 Earnings Conference Call.

您好，歡迎參加 Envestnet 2023 年第三季財報電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Mr. Josh Warren, incoming Chief Financial Officer. Thank you. Mr. Warren, you may begin.

現在我很高興向您介紹東道主喬什·沃倫先生，他是即將上任的財務長。謝謝。沃倫先生，您可以開始了。

Thank you, and good afternoon, everyone. I'm Josh Warren, incoming Chief Financial Officer of Envestnet. Thank you for joining us on today's third quarter 2023 earnings call.

謝謝大家，大家下午好。我是 Josh Warren，即將上任的 Envestnet 財務長。感謝您參加今天的 2023 年第三季財報電話會議。

Before we begin, I'd like to point out that our earnings press release, supplemental presentation and associated Form 10-Q can be found under the Investor Relations section of our website at envestnet.com. This call is being webcast live, and a replay will be available for 1 month under the Investor Relations section of our website as well.

在開始之前，我想指出，我們的收益新聞稿、補充簡報和相關的 10-Q 表格可以在我們網站 envestnet.com 的投資者關係部分找到。本次電話會議正在進行網路直播，我們網站的投資者關係部分也將提供為期 1 個月的重播。

During the call, we will be discussing certain forward-looking information. This information is based on our current expectations and is not a guarantee of future performance. I encourage you to review the cautionary statement on Slides 2 and 3 of the supplemental presentation for the potential risks, uncertainties and other factors that could cause actual results to differ from those expressed by the forward-looking statements. Further information can be found in our regular SEC filings.

在電話會議期間，我們將討論某些前瞻性資訊。這些資訊是基於我們目前的預期，並非未來業績的保證。我鼓勵您查看補充簡報投影片 2 和 3 中的警告聲明，以了解可能導致實際結果與前瞻性聲明所表達的結果不同的潛在風險、不確定性和其他因素。更多資訊可以在我們定期向 SEC 提交的文件中找到。

During this call, we will be referring to certain as adjusted financial measures. Please refer to the appendix in our supplemental presentation for a reconciliation of these as adjusted financial measures to the most directly comparable GAAP measures.

在本次電話會議中，我們將提及某些調整後的財務措施。請參閱我們補充簡報中的附錄，以了解這些調整後的財務指標與最直接可比較的公認會計準則指標的對帳情況。

Joining me on today's call are Bill Crager, Envestnet's Chief Executive Officer; and Tom Sipp, Executive Vice President for Business Lines. On our call this afternoon, we will provide a company update as well as an overview of the company's third quarter 2023 results.

參加今天電話會議的還有 Envestnet 執行長 Bill Crager；以及業務線執行副總裁 Tom Sipp。在今天下午的電話會議上，我們將提供公司最新情況以及公司 2023 年第三季業績的概述。

(Operator Instructions)

（操作員說明）

And with that, I'll turn the call over to Bill.

然後，我會將電話轉給比爾。

Thank you, Josh. Envestnet leads the wealth industry because we serve better, we scale better and we have consistently and repeatedly delivered on the future needs of our clients. We had the vision and conviction that our industry's ability to deliver greater advice required an automated connected technology platform with a broader set of solutions that is powered by data intelligence. We are delivering this industry-leading environment, making us more embedded and more essential to our clients.

謝謝你，喬許。 Envestnet 引領財富產業，因為我們提供更好的服務，我們擴大規模，我們始終如一地不斷滿足客戶的未來需求。我們的願景和信念是，我們的產業要提供更好的建議，就需要一個自動化互聯技術平台，該平台具有更廣泛的解決方案，並由數據智慧提供支援。我們正在提供這個領先業界的環境，使我們對客戶更加深入、更加重要。

Over the past 2 years, we invested very specifically to extend our market-leading position and to take share and also to increase the operating leverage and margins in our business. Our investment cycle was necessary, and it is now complete. We have integrated systems, embedded automation in our processes and upgraded our technology.

在過去的兩年裡，我們進行了非常具體的投資，以擴大我們的市場領先地位並佔據份額，並提高我們業務的營運槓桿和利潤率。我們的投資週期是必要的，現在已經完成了。我們在流程中整合了系統、嵌入式自動化，並升級了我們的技術。

As we review our results and accomplishments tonight, there are three things to focus on. First, our competitive position is unparalleled and is being validated by the marketplace we serve. We are significantly extending our competitive position by delivering a fully connected environment, with by far industry-leading scale. We are confident in the growth opportunity ahead, which is evidenced by client and market share gains in a challenging macro environment.

當我們今晚回顧我們的成果和成就時，需要專注於三件事。首先，我們的競爭地位是無與倫比的，並且正在得到我們所服務的市場的驗證。透過提供迄今為止行業領先的規模的完全互聯的環境，我們正在顯著擴大我們的競爭地位。我們對未來的成長機會充滿信心，在充滿挑戰的宏觀環境中客戶和市場份額的成長就證明了這一點。

Second, we are better servicing our clients with greater efficiency, leading them to increase their engagement with us. Over the last 18 months, enabled by our investments, our client service scores have risen dramatically, which shows up in our 95-plus percent Wealth client renewal rates. Also, our clients are contracting to do more with us, using more of our integrated services and solutions with our contract addendums up 30% year-over-year.

其次，我們以更高的效率更好地為客戶提供服務，引導他們增加與我們的互動。在過去 18 個月裡，在我們的投資的推動下，我們的客戶服務評分大幅上升，這體現在我們 95% 以上的 Wealth 客戶續約率上。此外，我們的客戶正在與我們簽訂更多合同，使用我們更多的整合服務和解決方案，合約附錄較去年同期成長 30%。

And then third, the long-term sustainable operating leverage we have created will meaningfully increase shareholder value. The automation and consolidation of our platform is delivering greater operating and expense efficiency.

第三，我們創造的長期永續經營槓桿將有意義地增加股東價值。我們平台的自動化和整合正在提高營運和費用效率。

Since the start of 2023, we have reduced our operating expenses by over $60 million on a run rate basis. We are structurally a higher-margin company than we were before. Our leading competitive position and the ability to take share, along with significantly enhanced operating leverage, are the gains we are experiencing based on the success of our investment cycle.

自 2023 年初以來，我們已按運行率減少了超過 6000 萬美元的營運費用。從結構上來說，我們是一家利潤率比以前更高的公司。我們領先的競爭地位和占有份額的能力，以及顯著增強的營運槓桿，是我們基於投資週期的成功而獲得的收益。

I now want to introduce you to Tom Sipp. Tom leads the business lines for Envestnet, and he's going to review our third quarter results.

現在我想向您介紹湯姆·西普。 Tom 領導 Envestnet 的業務線，他將審查我們第三季的業績。

Thank you, Bill. Our performance in the third quarter reflects Envestnet's focus and execution within a demanding macro environment. We are enhancing our platform, strengthening client satisfaction and winning market share. With the investment cycle now firmly in the past, we've become a more efficient, effective and profitable company, while accelerating additional cost reduction measures.

謝謝你，比爾。我們第三季的業績反映了 Envestnet 在苛刻的宏觀環境中的專注和執行力。我們正在增強我們的平台，提高客戶滿意度並贏得市場份額。隨著投資週期的結束，我們已經成為一家更有效率、有效和有利可圖的公司，同時加快了額外的成本削減措施。

Here are the key highlights for Envestnet for the third quarter. Revenue in the third quarter grew 3% year-over-year to $316.8 million, within our guidance range, despite softness in the subscription revenue. Adjusted EBITDA grew 26% year-over-year to $67.2 million, above the high end of the guidance range. The adjusted EBITDA margin was 21%, an improvement of 380 basis points year-over-year. And adjusted earnings per share was $0.56, also above the range.

以下是 Envestnet 第三季的主要亮點。儘管訂閱收入疲軟，但第三季營收年增 3% 至 3.168 億美元，在我們的指導範圍內。調整後 EBITDA 年成長 26%，達到 6,720 萬美元，高於指導範圍的上限。調整後 EBITDA 利潤率為 21%，年增 380 個基點。調整後每股收益為 0.56 美元，也高於該範圍。

Now moving on to expenses. Q3 personnel costs as adjusted for severance and noncash compensation expenses were down 15% year-over-year. These reductions primarily reflect our planned exit from the investment cycle as well as expense management actions that had been fully implemented.

現在轉向開支。經遣散費和非現金補償費用調整後的第三季人員成本年減 15%。這些減少主要反映了我們計劃退出投資週期以及已全面實施的費用管理行動。

It's important to note that even with reduced personnel costs, we are more efficient, delivering new products, technology and solutions to our clients with greater service levels. Increasing automation of service and operations is a key benefit of our investment plan.

值得注意的是，即使人員成本降低，我們的效率也更高，能夠以更高的服務水準為客戶提供新產品、技術和解決方案。提高服務和營運的自動化程度是我們投資計畫的一個主要優勢。

Overall, the macro environment in Q3 continued to present challenges for clients and prospects as well as our business. In the Wealth segment, our Q3 revenues grew to $275 million, up 7% when compared to Q3 2022. We are pleased with our performance in light of a difficult market environment, where industry-wide flows remain challenged. Envestnet continues to generate positive net flows into both AUM and AUA, but the mix in the quarter was unfavorable for our fee rate.

總體而言，第三季的宏觀環境繼續為客戶和潛在客戶以及我們的業務帶來挑戰。在財富領域，我們第三季的營收成長至 2.75 億美元，比 2022 年第三季成長 7%。鑑於市場環境艱難，全產業的資金流動仍然面臨挑戰，我們對我們的業績感到滿意。 Envestnet 繼續為 AUM 和 AUA 帶來正淨流量，但本季的組合對我們的費率不利。

Our asset-based revenues increased to $193.9 million, up 9.5% when compared to Q3 2022. Our Wealth business continues to increase market share. Our Q4 results are impacted by markets during Q3, where the blended 60-40 portfolio was down approximately 3%. For Q4, we anticipate asset-based revenue to be between $183.5 million and $186.5 million. Assuming the midpoint, this leads to our projected asset-based revenue growth to be approximately 0.5% for the full year 2023. As a reminder, all of Envestnet's asset-based pricing models are in our Wealth segment.

我們的資產收入增至 1.939 億美元，與 2022 年第三季相比成長 9.5%。我們的財富業務持續增加市場佔有率。我們第四季的業績受到第三季市場的影響，混合 60-40 投資組合下跌了約 3%。對於第四季度，我們預計基於資產的收入將在 1.835 億美元至 1.865 億美元之間。假設中點，這導致我們預計 2023 年全年基於資產的收入成長約為 0.5%。提醒一下，Envestnet 的所有基於資產的定價模型都在我們的財富領域。

Our subscription-based revenues in Wealth increased to $76.8 million, up 1.1% when compared to Q3 2022. Our Q4 performance in Wealth will be negatively impacted by timing delays in connection with new client conversions and new programs coming online that we now expect to begin recognizing in 2024.

我們在財富領域的訂閱收入增至7,680 萬美元，與2022 年第三季相比增長1.1%。我們在財富領域第四季度的表現將受到新客戶轉化和我們現在預計將開始上線的新計劃的時間延遲的負面影響2024 年認識。

We do not believe that the Q4 Wealth subscription performance reflect the underlying opportunity for this business. Recent pricing actions and new customer wins gives us confidence in an accelerated subscription revenue growth rate in the next few years. All in all, our expectations remain to grow our Wealth subscription revenue at approximately 6% in 2023.

我們不認為第四季財富訂閱表現反映了該業務的潛在機會。最近的定價行動和新客戶的贏得讓我們對未來幾年訂閱收入的加速成長充滿信心。總而言之，我們的預期仍然是 2023 年 Wealth 訂閱營收成長約 6%。

In our Data & Analytics business, our revenues declined 15% compared to Q3 2022 to $41.8 million, but grew sequentially by 2.4% compared to Q2 2023. As discussed in previous quarters, the banking crisis led to client cost-cutting initiatives and implementation delays, continuing lower-than-forecasted subscription revenues in bank and tech channels. That being said, our revenue has stabilized, and business metrics, including pipeline and bookings, are strengthening, giving us optimism as we go into 2024.

在我們的數據和分析業務中，我們的收入與2022 年第三季度相比下降了15%，至4180 萬美元，但與2023 年第二季度相比連續增長了2.4%。正如前幾季度所討論的，銀行危機導致客戶削減成本計劃和實施延遲，銀行和科技管道的訂閱收入持續低於預期。話雖如此，我們的收入已經穩定，包括管道和預訂在內的業務指標正在加強，這讓我們對進入 2024 年感到樂觀。

As we look out to Q4 and the full year, and consistent with how we provided information previously, for the fourth quarter, we expect revenues to be between $309 million and $314 million, adjusted EBITDA to be between $64.5 million and $68.5 million and adjusted earnings per share to be between $0.51 and $0.54. Therefore, for the full year 2023, we expect revenues to be between $1.237 billion and $1.242 billion, adjusted EBITDA to be between $245 million and $249 million and adjusted earnings per share to be between $1.98 and $2.01.

展望第四季和全年，與我們先前提供資訊的方式一致，我們預計第四季的營收將在3.09 億美元至3.14 億美元之間，調整後EBITDA 將在6,450 萬美元至6,850 萬美元之間，調整後收益將在6,450 萬美元至6,850 萬美元之間每股價格在 0.51 美元至 0.54 美元之間。因此，我們預計2023 年全年營收將在12.37 億美元至12.42 億美元之間，調整後EBITDA 將在2.45 億美元至2.49 億美元之間，調整後每股收益將在1.98 美元至2.01 美元之間。

With that, let me turn it over to Bill to highlight the conviction we have for the opportunity before us.

接下來，讓我將其轉交給比爾，以強調我們對擺在我們面前的機會的信念。

Thank you, Tom. Let me share our marketplace perspective with you.

謝謝你，湯姆。讓我與您分享我們的市場觀點。

For the first time in a generation, there is the option to place assets in money market funds and secure higher yields. In Q3, the industry, once again, saw negative long-term fund flows, and public commentary from asset and wealth managers has noted that account cash balances are rapidly growing. Retail money market fund assets are up 50% in the last year.

這是一代人以來第一次可以選擇將資產放入貨幣市場基金並獲得更高的收益率。第三季度，該行業再次出現長期資金流動負值，資產和財富管理機構的公開評論指出，帳戶現金餘額正在快速增長。零售貨幣市場基金資產去年成長了50%。

Financial advisers are asset allocators and fiduciaries. And given the environment, we are seeing them shift to securing and protecting capital, while they are creating and revisiting financial plans with their clients. We've seen a significant influx of reporting-only accounts as investors allocate more to cash.

財務顧問是資產配置者和受託人。在這種環境下，我們看到他們在與客戶一起制定和重新審視財務計畫的同時，轉向確保和保護資本。隨著投資者將更多資金分配給現金，我們發現純報告帳戶大量湧入。

There will always be market cycles. In the current cycle of higher interest rates and depressed equity flows are challenged. However, and this is important, our operating metrics are strong. We are taking share. Our annualized AUM/A organic growth of 11% in the quarter compares to low to mid-single digits for other companies. On a trailing 12-month basis, our organic asset growth rates have been 8% for AUM/A. That is well ahead of the industry.

市場總會有週期。在當前的周期中，利率上升和股市流動低迷面臨挑戰。然而，這一點很重要，我們的營運指標很強勁。我們正在分享。與其他公司的低至中個位數相比，我們本季的年化 AUM/A 有機成長為 11%。在過去 12 個月的基礎上，我們的 AUM/A 有機資產成長率為 8%。這遠遠領先於產業。

Also, advisers are using more of what we offer, with increasing adoption and activity on our platform, something I track very closely is our AUM/A accounts per adviser, and those are up 9% year-over-year. That is impressive given the environment. We are focused on ensuring that as assets begin to rebalance into investment portfolios, we are extremely well positioned for the demand and growth that will come. This is the advantage we have in the scale and depth of our installed base as we serve 107,000 -- more than 107,000 financial advisers and $5.4 trillion in assets.

此外，隨著我們平台上的採用率和活動不斷增加，顧問們正在更多地使用我們提供的服務，我非常密切地追蹤的是我們每個顧問的AUM/A 帳戶，這些帳戶同比增長了9%。考慮到環境，這是令人印象深刻的。我們致力於確保隨著資產開始重新平衡為投資組合，我們能夠為即將到來的需求和成長做好充分準備。這是我們在客戶群規模和深度上所擁有的優勢，因為我們為 107,000 名客戶（超過 107,000 名財務顧問）和 5.4 兆美元的資產提供服務。

Envestnet is more deeply engaged and connected with our clients and partners than ever before. Our clients are adapting to the environment and using this cycle to look at their cost structure and operating environment. They are focused on making their technology and solution stack simpler, more connected and more efficient by doing more with fewer partners. Our focused engagement model and the work we did to integrate our capabilities has put us at the center of many vendor consolidation discussions.

Envestnet 與我們的客戶和合作夥伴的互動和聯繫比以往任何時候都更加深入。我們的客戶正在適應環境，並利用這個週期來審視他們的成本結構和營運環境。他們致力於透過更少的合作夥伴做更多的事情，使他們的技術和解決方案堆疊更簡單、更互聯、更有效率。我們專注的參與模式以及我們為整合我們的能力所做的工作使我們成為許多供應商整合討論的中心。

At a recent meeting with a large client of ours, they told me that their analysis discovered that Envestnet could help them consolidate over 68 different applications they use to operate their business today. As proof of our progress, that's evidencing itself in many ways, including new logo wins and deepening contracts with our installed base of clients.

在最近與我們的一個大客戶的一次會議上，他們告訴我，他們的分析發現 Envestnet 可以幫助他們整合目前用於經營業務的超過 68 個不同的應用程式。作為我們進步的證明，這在許多方面都得到了證明，包括贏得新徽標以及深化與我們現有客戶群的合約。

Our recent announcement of our partnership with First Command is a bellwether of what we're accomplishing. As First Command stated, Envestnet has all the capabilities, solutions and tools that we need to serve our military families. Envestnet is the leading platform in the space. First Command is signing up for our full platform and our full suite of solutions. Long-time significant customer of ours is another example of a client doing more with us, have expanded beyond our managed account platform to include a broad set of our services, including a mandate to carriers and advisers that 100% of annual annuity contracts will be processed through the Envestnet Insurance Exchange. This is a long-term client who is consolidating vendors, leading to the expansion of Envestnet's reach.

我們最近宣布與 First Command 建立合作夥伴關係，這就是我們所取得的成就的風向標。正如 First Command 所說，Envestnet 擁有我們為軍人家庭服務所需的所有功能、解決方案和工具。 Envestnet 是該領域的領先平台。 First Command 正在註冊我們的完整平台和全套解決方案。我們的長期重要客戶是與我們一起做更多事情的客戶的另一個例子，他們已經擴展到我們的管理帳戶平台之外，包括我們廣泛的服務，包括對運營商和顧問的授權，即100%的年度年金合約將由我們提供。透過 Envestnet 保險交易所進行處理。這是一個長期客戶，正在整合供應商，從而擴大 Envestnet 的影響範圍。

Adding more solutions to our contracts is a leading indicator of future results. Our enhanced operating environment has led to deeper engagements, and this is evidenced by addendums to our contracts, which are up 30% year-over-year.

在我們的合約中添加更多解決方案是未來結果的領先指標。我們改善的營運環境帶來了更深入的合作，我們的合約附錄就證明了這一點，合約附錄較去年同期成長 30%。

We're seeing a convergence point for our partners as well, as they position themselves to benefit from our distribution footprint. This is because we have connected the components of Envestnet and engage more advisers that now we have more levers to drive incremental revenue streams through partnerships.

我們也看到了我們的合作夥伴的一個融合點，因為他們將自己定位為從我們的分銷足跡中受益。這是因為我們已經連接了 Envestnet 的各個組件並聘請了更多顧問，現在我們擁有更多槓桿來透過合作關係推動增量收入流。

Among these are asset managers. We're expanding our relationship model, adding new distribution and collaboration opportunities as the leading asset managers focus on capabilities that will drive their growth. Another area is custody partners. We sit at a key convergence point for a truly integrated wealth, plus custody platform, that the market needs for greater scale and operating flexibility. We're incredibly bullish on the long-term revenue opportunity for -- that this creates for our shareholders. We're leaned into this partnership with FNZ, and are building out a differentiated option for the marketplace with growing customer interest.

其中包括資產管理公司。我們正在擴展我們的關係模式，增加新的分銷和合作機會，因為領先的資產管理公司專注於推動其成長的能力。另一個領域是託管合作夥伴。我們處於真正綜合財富和託管平台的關鍵融合點，市場需要更大的規模和營運彈性。我們非常看好這為我們的股東創造的長期收入機會。我們傾向於與 FNZ 建立合作夥伴關係，並正在為客戶興趣不斷增長的市場打造差異化的選擇。

Additionally, we've seen increased interests from existing custodial relationships to integrate more closely with us, and this is a recognition of our scale and our distribution strength.

此外，我們看到現有的託管關係越來越有興趣與我們更緊密地結合，這是對我們的規模和分銷實力的認可。

A brief update on our Data & Analytics business. Last quarter, we outlined the critical factors for stabilization of this business. While there continues to be softness in banking and aggregation sectors, the research business reached a significant milestone as the new data sets have been onboarded. After only 1 month, we are seeing a meaningful rebound in our business indicators and results.

我們的數據與分析業務的簡要更新。上季度，我們概述了穩定該業務的關鍵因素。儘管銀行和聚合行業持續疲軟，但隨著新數據集的加入，研究業務達到了一個重要的里程碑。僅僅1個月後，我們的業務指標和業績就出現了顯著的反彈。

In Q3, new bookings are up 2 million year-over-year. There are also 21 opportunities that are in the research trial queue, representing 8.3 million of potential Q4 bookings. This is progress. We're on an improving path for this business, and we'll report on the progression we achieve in next quarter's meeting.

第三季新預訂量年增 200 萬份。研究試驗隊列中還有 21 個機會，代表第四季的 830 萬潛在預訂量。這是進步。我們正在改善這項業務，我們將在下個季度的會議上報告我們的進展。

To summarize, we're operating with deeper client engagement, quality of service and efficiency. Let me be clear, client feedback is strong. Our service scores have risen by 40% over the last 18 months. And in the second half of this year, we have lifted our adjusted EBITDA by 19% versus the first half of this year. We are confident that this will continue.

總而言之，我們正在以更深入的客戶參與、服務品質和效率開展營運。讓我明確一點，客戶的回饋很強烈。在過去 18 個月裡，我們的服務評分上升了 40%。今年下半年，我們調整後的 EBITDA 比今年上半年提高了 19%。我們有信心這種情況將會持續下去。

Now I'll hand it over to Josh Warren, who we are very excited to welcome to Envestnet and be fully installed as our Chief Financial Officer next week. His comments set the stage as he steps into his new role. Josh?

現在我將把它交給 Josh Warren，我們非常高興地歡迎他加入 Envestnet，並在下週正式任命為我們的財務長。他的評論為他步入新角色奠定了基礎。喬許？

Thank you, Bill. I'd also like to thank the entire team at Envestnet for a warm welcome, and Pete D'Arrigo, Envestnet's CFO for the last 15 years, in particular, for helping me with a smooth transition.

謝謝你，比爾。我還要感謝 Envestnet 整個團隊的熱烈歡迎，特別是過去 15 年擔任 Envestnet 財務長 Pete D'Arrigo，感謝他幫助我順利過渡。

I'm excited about the journey ahead because Envestnet holds a distinct position within the ecosystem that others have tried and failed to replicate. This position is important and impactful, powering financial advisers and the millions of clients they serve.

我對未來的旅程感到興奮，因為 Envestnet 在生態系統中佔據著獨特的地位，其他人已經嘗試過但未能複製。這一職位非常重要且具有影響力，為財務顧問及其服務的數百萬客戶提供動力。

I'd also like to emphasize that the long-term, sustainable operating leverage created will meaningfully increase shareholder value. You're seeing the benefits of the investment cycle being completed, more automation, scale and an ability to reduce costs, while delivering an industry-leading platform and operating environment for clients that are looking to have fewer and deeper partner relationships.

我還想強調，所創造的長期、可持續的營運槓桿將有意義地增加股東價值。您將看到投資週期的完成、自動化程度更高、規模更大以及降低成本的能力所帶來的好處，同時為希望建立更少、更深入的合作夥伴關係的客戶提供行業領先的平台和操作環境。

We ended September with $43.2 million of cash and $892.5 million of total debt from our two tranches of convertible notes. Based on the operating results that Tom outlined, we reduced our net leverage ratio, our net debt over trailing adjusted EBITDA to just shy of 3.7x as of September 30. Based on the rest of the year outlook outlined previously, we expect to reduce our net leverage ratio to approximately 3.5x by the end of this year.

截至 9 月底，我們的兩批可轉換票據擁有 4,320 萬美元的現金和 8.925 億美元的總債務。根據 Tom 概述的經營業績，截至 9 月 30 日，我們將淨槓桿率、淨債務與調整後 EBITDA 之比降低至略低於 3.7 倍。根據先前概述的今年剩餘時間的展望，我們預計將降低到今年底，淨槓桿率將達到約3.5倍。

We're in the process of our annual planning cycle, and we'll give an appropriate outlook for 2024 on our next call, but let me share how we're thinking about the outlook to provide some added visibility and transparency. Envestnet is now a structurally, more efficient company following the conclusion of our investment cycle. Bill and Tom mentioned the investments made in automation and scale. During 2023, these initiatives are expected to yield approximately $27 million in expense savings, with the additional expense savings to be recognized in 2024 and beyond in a combination of compensation and non-compensation-related expenses.

我們正在進行年度規劃週期，我們將在下次電話會議上給出 2024 年的適當展望，但讓我分享我們如何考慮展望，以提供更多的可見性和透明度。在我們的投資週期結束後，Envestnet 現在是一家結構更有效率的公司。比爾和湯姆提到了在自動化和規模化方面的投資。 2023 年期間，這些措施預計將節省約 2,700 萬美元的費用，額外的費用節省將在 2024 年及以後以薪酬和非薪酬相關費用的形式得到確認。

Further, given our scale and our operating leverage, we expect future revenue growth initiatives, such as those that Bill and Tom outlined, will all be margin accretive as they scale.

此外，考慮到我們的規模和營運槓桿，我們預計未來的收入成長計劃（例如比爾和湯姆概述的那些計劃）都將隨著規模的擴大而增加利潤。

Those who have followed Envestnet are familiar with our as adjusted metrics. On our income statement, we're naturally progressing to our 2025 target of 25% adjusted EBITDA margins, the metric we've used in our debt covenants and provided guidance on.

關注 Envestnet 的人都熟悉我們調整後的指標。在我們的損益表上，我們自然會朝著 2025 年調整後 EBITDA 利潤率 25% 的目標邁進，這是我們在債務契約中使用的指標並提供了指導。

I would also like to add some additional commentary here as it relates to free cash flow, compensation expense and software development as we look forward. This year, Envestnet will pay approximately $34 million of cash for severance expenses, which we expect will impact our free cash flow during 2023. We expect severance expenses to be significantly lower going forward.

我還想在這裡添加一些額外的評論，因為它與我們預期的自由現金流、補償費用和軟體開發有關。今年，Envestnet 將支付約 3,400 萬美元現金作為遣散費，我們預計這將影響我們 2023 年的自由現金流。我們預計未來遣散費將大幅降低。

Given our lower employee base, we expect our noncash stock-based compensation will be down by approximately 15%. We anticipate providing visibility on our free cash flow generation going forward for transparency and comparability. Our free cash flow will deduct both our capital expenditures and our internally developed software, or IDS, capitalized under GAAP, based on the stage of development and deployment.

鑑於我們的員工基礎較低，我們預計非現金股票薪酬將下降約 15%。我們期望提供我們未來自由現金流產生的可見性，以實現透明度和可比性。我們的自由現金流將根據開發和部署階段扣除我們的資本支出和按照 GAAP 資本化的內部開發軟體（IDS）。

While our 2023 CapEx, as previously stated, will be approximately the same as it was in 2022, our internally developed software costs for 2023 are expected to be approximately $93 million, representing a 4% increase from 2022 IDS. Now that the investment cycle is complete, we anticipate both our CapEx and our IDS to be lower in 2024.

雖然我們 2023 年的資本支出（如前所述）將與 2022 年大致相同，但我們 2023 年內部開發的軟體成本預計約為 9,300 萬美元，比 2022 年 IDS 增加 4%。現在投資週期已經完成，我們預計 2024 年我們的資本支出和 IDS 都會降低。

To summarize, because of the investment cycle in 2022 and for the full year 2023, Envestnet's free cash flow was and will be negative. This will not be the case in 2024, and we'll give greater detail on our February call.

總而言之，由於 2022 年和 2023 年全年的投資週期，Envestnet 的自由現金流過去和將來都是負數。 2024 年情況將不再如此，我們將在 2 月的電話會議上提供更多詳細資訊。

One final note before I move on. As of October 1, the adviser-focused Wealth Analytics business transferred over to the Wealth segment to better align reporting with the way we manage the business, focused on the clients that we serve. We anticipate this transfer to be approximately $4 million of revenue in Q4, and it is reflected in the outlook that Tom provided earlier. As stated, in February on our next earnings call, we'll provide an update and outlook at that time.

在我繼續之前最後一點。自 10 月 1 日起，以顧問為中心的財富分析業務已轉移至財富部門，以便更好地將報告與我們管理業務的方式結合起來，重點關注我們所服務的客戶。我們預計這筆轉移將在第四季度帶來約 400 萬美元的收入，這也反映在 Tom 早些時候提供的前景中。如前所述，我們將在二月的下一次財報電話會議上提供最新情況和展望。

Thank you, and I'll now turn it back to Bill for closing remarks.

謝謝，現在我將把它轉回給比爾做結束語。

Thank you, Josh, and once again, welcome to Envestnet. I want to spend just a moment to recognize and thank our departing Chief Financial Officer, Pete D'Arrigo. Since joining Envestnet in 2008, Pete has made invaluable contributions to our organization and to our success. He helped to lead our successful IPO, and he helped guide our company through multiple market cycles. Pete has been an exceptional colleague and leader, and his tenure as Envestnet's CFO has been vital. Pete, thank you.

謝謝你，喬什，再次歡迎來到 Envestnet。我想花一點時間來表彰並感謝我們即將離任的財務長 Pete D'Arrigo。自 2008 年加入 Envestnet 以來，Pete 為我們的組織和我們的成功做出了寶貴的貢獻。他幫助領導了我們成功的首次公開募股，並幫助指導我們的公司度過了多個市場週期。 Pete 是一位出色的同事和領導者，他擔任 Envestnet 財務長的任期至關重要。皮特，謝謝你。

Now let me wrap up our prepared remarks, and I'll conclude with this. Our investment cycle is complete and has been successfully implemented. Our competitive position is unparalleled, and our long-term growth thesis is being validated by the marketplace that we serve. We're better servicing our clients with greater efficiency, leading them to increase their engagement with us. And the long-term sustainable operating leverage we have created will meaningfully increase shareholder value.

現在讓我結束我們準備好的發言，我將以此結束。我們的投資週期已經完成並成功實施。我們的競爭地位是無與倫比的，我們的長期成長論點正在得到我們所服務的市場的驗證。我們以更高的效率更好地為客戶提供服務，引導他們增加與我們的互動。我們創造的長期永續經營槓桿將顯著增加股東價值。

We're doing what we said we would do, and it is working. Despite negative industry flows, we are gaining share and have solidified the right to win in the marketplace. We're using our leading technology solutions and data intelligence as powerful competitive advantages to go deeper and become even more essential to our customers.

我們正在做我們說過要做的事情，而且正在發揮作用。儘管行業流動性不佳，但我們的份額仍在增加，並鞏固了在市場上獲勝的權利。我們正在利用領先的技術解決方案和數據智慧作為強大的競爭優勢，進一步深入並變得對我們的客戶更加重要。

And importantly, we will build on the progress we've already made on delivering increasing economic and operating leverage. We're incredibly grateful for our clients, partners and the employees of Envestnet for making such a difference in the advice that thousands of advisers offered to millions and millions of American households.

重要的是，我們將在提高經濟和營運槓桿方面已經取得的進展的基礎上再接再厲。我們非常感謝 Envestnet 的客戶、合作夥伴和員工，他們為數以千計的顧問向數以百萬計的美國家庭提供的建議做出瞭如此大的改變。

I'll now turn it over to the operator for questions. Thank you very much.

我現在將其轉交給接線員詢問。非常感謝。

(Operator Instructions) Our first question comes from the line of Michael Cho with JPMorgan.

（操作員指示）我們的第一個問題來自摩根大通的 Michael Cho。

I guess my first question -- I appreciate all the color around the expenses and the '24 kind of initial thoughts. I guess -- I'm just kind of just curious if you could elaborate a little bit more in terms of kind of how we should think about margin progression over the course of '24, as you think about the 25% targets for 2025?

我想我的第一個問題是——我欣賞圍繞費用的所有色彩和 24 世紀的最初想法。我想—我只是好奇，當您考慮 2025 年 25% 的目標時，您是否可以詳細說明一下我們應該如何考慮 24 年期間的利潤成長？

And I think, Bill, you mentioned the $60 million kind of run rate savings. And Josh, I think you said $27 million of expense savings in '23 today. Maybe if you want to talk to maybe a run rate -- exit run rate in '23? And how we should kind of think about that for '24 as well?

我想，比爾，你提到了 6000 萬美元的運行率節省。喬希，我想你今天說過 23 年節省了 2700 萬美元的費用。也許如果你想談談23年的運行率——退出運行率？我們該如何考慮 24 世紀的這個問題？

Great. I'm going to ask -- Tom Sipp is going to begin, and then Josh will finish.

偉大的。我要問——湯姆·西普將開始，然後喬許將結束。

Yes, Michael, I would think about it a couple of ways. First, we've seen some pretty good margin expansion over the past 12 to 18 months. We are well on our way to the 25% target. The -- we think it will not be back-end weighted. We will evidence some pretty material progress in '24. So think about it as more of a linear progression from '22, '23, all the way out to '25.

是的，邁克爾，我會從幾個方面考慮這個問題。首先，我們在過去 12 至 18 個月中看到了一些相當不錯的利潤率擴張。我們正在努力實現 25% 的目標。我們認為它不會是後端加權的。我們將在 24 年證明一些相當實質的進展。因此，可以將其視為從「22」、「23」一直到「25」的線性進展。

There's expense initiatives that we've already implemented that will flow through next year. And then the other thing that you should think about is our free cash flow conversion rate will improve as well. So we're on our way to the 25%. It will be a linear progression and more will drop to the bottom line going forward. And with that, Josh?

我們已經實施了一些費用計劃，這些計劃將在明年實施。然後您應該考慮的另一件事是我們的自由現金流轉換率也會提高。所以我們正在朝著 25% 邁進。這將是一個線性的進展，未來將會有更多的事情下降到底線。那麼，喬許？

Yes. Thanks, Tom. And Michael, let me just say, first, as a reminder, just with regard to our 2023 OpEx that Tom mentioned, given our outlook to the full year, a headline to take away is on roughly a flat top line during 2023, which is, of course, a composite of Wealth and D&A, our 2023 expenses have been reduced by approximately $27 million.

是的。謝謝，湯姆。邁克爾，我只想說，首先，作為提醒，就湯姆提到的 2023 年營運支出而言，考慮到我們對全年的展望，一個值得關注的標題是 2023 年的收入大致持平，即當然，綜合Wealth和D&A，我們2023年的開銷減少了約2,700萬美元。

And in connection with that, you asked about the $60 million of run rate savings. That's based on actions already taken. About half was recognized this year, and the remainder of the $60 million will be recognized next year in a combination of operating and capital expenses by the end of 2024.

與此相關，您詢問了 6000 萬美元的運行率節省。這是基於已經採取的行動。今年約已確認一半，其餘 6,000 萬美元將於明年 2024 年底前以營運和資本支出的形式確認。

But to be clear, our priority going forward is free cash flow generation. And we're, of course, very focused on delivering a robust and sustainable free cash flow-generating franchise going forward as we continue to deliver the highest quality platform in the industry.

但要明確說明的是，我們未來的首要任務是產生自由現金流。當然，隨著我們繼續提供業界最高品質的平台，我們非常專注於提供強大且可持續的自由現金流產生特許經營權。

Perfect. And so for my follow-up, I just want to switch gears a little bit, just kind of zooming out here. I mean we've kind of talked about the opportunity set for the custodian for some time now. I'm just kind of -- one, kind of curious on an update on timing there?

完美的。因此，對於我的後續行動，我只想稍微切換一下，只是稍微縮小一下。我的意思是，我們已經討論了一段時間為託管人設定的機會。我只是有點——一、有點好奇那裡的時間更新？

And then two, Bill, you talked about kind of a large set of long-term revenue opportunity there for Envestnet looking ahead. I mean how do you think about sizing this kind of opportunity for this custodian offering over the medium term for Envestnet? Is it really just merely offering custody to clients? Or are there other synergistic areas that might create further value for investment?

第二，比爾，您談到了 Envestnet 未來的大量長期收入機會。我的意思是，您如何看待在中期為 Envestnet 提供託管服務的機會？它真的只是僅為客戶提供託管服務嗎？或者有其他協同領域可以創造進一步的投資價值？

Yes. Awesome, Michael. Yes. No, making very good progress with our partners at FNZ. They have recently transitioned to their operating platform that is mostly trust-focused, and we'll be in market with them either in Q2 or Q3 of this year.

是的。太棒了，麥可。是的。不，我們與 FNZ 的合作夥伴取得了非常好的進展。他們最近已經過渡到主要以信任為中心的營運平台，我們將在今年第二季或第三季與他們一起進入市場。

When market analysts as well as clients take a look at the operating environment that we're going to be able to offer them, it is differentiated and there's a great deal of interest. So again, we're making a lot of engagement progress -- integration progress and now to get to market by Q2 or Q3. That does not include their broker-dealer registration, which they filed with the regulators. And we're hopeful that they receive that and we're in operation with the broker-dealer side of the offering at some point in 2024. But we're encouraged.

當市場分析師和客戶審視我們將能夠為他們提供的營運環境時，他們會發現它是與眾不同的，並且有很大的興趣。再說一次，我們在參與方面取得了許多進展——整合進展，現在將在第二季或第三季進入市場。這不包括他們向監管機構備案的經紀交易商註冊。我們希望他們能夠接受這一點，並且我們將在 2024 年的某個時候與經紀自營商方面進行合作。但我們感到鼓舞。

The other dynamic, Michael, that I would just spotlight is that, overall, I think that the custody environment sees that the integration of what we do and what they do as a very meaningful step forward in operating efficiency, helping our clients take out costs, helping them open accounts and manage accounts with less friction. So we're deeply engaged with legacy custodians on how we offer that.

邁克爾，我要強調的另一個動態是，總體而言，我認為託管環境認為我們所做的事情和他們所做的事情的整合是營運效率方面向前邁出的非常有意義的一步，幫助我們的客戶降低成本，幫助他們以更少的摩擦開設帳戶和管理帳戶。因此，我們與遺產保管人就如何提供這項服務進行了深入接觸。

And in each of those environments, both the FNZ and with our current custody partners, we believe there's a financial benefit for Envestnet. So we're working hard, and that's a focus point of ours. The other area of opportunity I spotlighted when it comes to strategic partners is asset managers, and we own and have a very critical distribution footprint.

在每一種環境中，無論是 FNZ 還是我們目前的託管合作夥伴，我們相信 Envestnet 都能獲得經濟利益。所以我們正在努力工作，這是我們的重點。當談到策略合作夥伴時，我強調的另一個機會領域是資產管理公司，我們擁有並擁有非常重要的分銷足跡。

And as we brought the platforms together, and all of our advisers have access to all of what we do, it becomes an incredibly valuable conduit to reach more and more advisers with capabilities that asset managers are focused on and investing more in, which includes personalization, which includes overlay and adding value effort to performance through things like tax overlay, risk overlay and individualized portfolios that are defined by the industry as direct indexing.

當我們將這些平台整合在一起，並且我們所有的顧問都可以存取我們所做的所有內容時，它就成為一個非常有價值的管道，可以接觸到越來越多的顧問，這些顧問具有資產管理公司關注並加大投資的能力，其中包括個人化，其中包括透過稅收疊加、風險疊加和行業定義為直接指數的個人化投資組合等方式對績效進行疊加和增值工作。

Tom, would you add anything to this?

湯姆，你能補充點什麼嗎？

I would just add on the custody, Michael, we're going to retain revenue on custody economics. Think of that as 2 to 5 basis points. And we'll provide an integrated custody -- wealth custody ecosystem, real-time account opening, real-time trading, so a better solution. And we're going to have several options. FNZ will be one option, and then we'll have at least one, if not more options, from the established players in the U.S. market.

我只想補充一下託管，邁克爾，我們將保留託管經濟學的收入。可以將其視為 2 到 5 個基點。並且我們將提供一體化的託管——財富託管生態系統，即時開戶，即時交易，這樣一個更好的解決方案。我們將有幾種選擇。 FNZ 將是一種選擇，然後我們將從美國市場的老牌參與者那裡獲得至少一種（如果不是更多）選擇。

And initially, we'll be in market with bank and trust departments and RIAs, call it, middle of next year. And then we will then cross-sell to our broker-dealer clients end of next year into '25.

最初，我們將在明年年中與銀行和信託部門以及 RIA 一起進入市場。然後我們將在明年年底到 25 年底向我們的經紀自營商客戶進行交叉銷售。

But for the first time, Envestnet then participating in those custody economics, which include the money they make on cash. And then when Bill was talking about the asset managers, we're seeing a big trend in personalization. We have -- we work with 800, 900 asset managers as part of our marketplace today.

但這是 Envestnet 第一次參與這些託管經濟學，其中包括他們透過現金賺取的錢。然後，當比爾談論資產管理者時，我們看到了個人化的大趨勢。作為當今市場的一部分，我們與 800、900 家資產管理公司合作。

There is an opportunity. We've invested a lot in personalized capabilities. So think of direct indexing, think of high-net-worth solutions, trust solutions. We're going to work with a smaller group. It's going to be, call it, a handful of major asset management partners. And the economic relationship with those partners will be very different than what Envestnet's experience with the asset management community before. And then they'll also lean in from a marketing distribution sales footprint perspective.

有一個機會。我們在個人化功能方面投入了大量資金。因此，考慮直接索引、考慮高淨值解決方案、信任解決方案。我們將與一個較小的團隊合作。可以說，這將是少數主要的資產管理夥伴。與這些合作夥伴的經濟關係將與 Envestnet 先前與資產管理社群的經驗大不相同。然後他們也將從行銷分銷銷售足跡的角度進行傾斜。

So you're seeing a theme here where we're participating in more economics from the custodians and from the asset managers, which, over the next couple of years, are going to start to be a meaningful impact to our P&L.

因此，您在這裡看到的主題是，我們正在參與託管人和資產管理人的更多經濟活動，在接下來的幾年中，這將開始對我們的損益產生有意義的影響。

Which really is all made possible because we brought the platform together into an integrated conduit to reach so many advisers. Michael, thank you for your questions.

這一切確實成為可能，因為我們將平台整合為一個綜合管道，以聯繫如此多的顧問。邁克爾，謝謝你的提問。

Our next question comes from the line of Alex Kramm with UBS.

我們的下一個問題來自瑞銀集團的 Alex Kramm。

First off, maybe on the topic of pricing, and this may be a 2-parter, but maybe it's a 1-parter. But I think, Tom, you made some comments, and I think it's related to the subscription side, that you've taken some pricing action and looking for things to turn around.

首先，也許是關於定價的話題，這可能是 2 方，但也可能是 1 方。但我認為，湯姆，你發表了一些評論，我認為這與訂閱方面有關，你已經採取了一些定價行動並尋找扭轉局面的機會。

So maybe you can just flesh out what exactly you did and what that meant? And then connected to that, just quickly, I think the revenue guide for the fourth quarter assume some sort of pricing deterioration on the AUM, AUA side, like -- maybe like 3%, 4% or so at the midpoint. So maybe -- I don't know if those two things are related or different. So maybe just flesh out those things two things.

所以也許你可以充實一下你到底做了什麼以及這代表什麼？然後，很快，我認為第四季的收入指南假設 AUM、AUA 方面的定價出現某種惡化，例如——中間可能會下降 3%、4% 左右。所以也許——我不知道這兩件事是否相關或不同。所以也許只是充實這兩件事。

I'll take both of those, and I think they're not related. So one, the fee rate, what's going on there when you're kind of backing into the fee rate for the fourth quarter, that's being driven by really two primary things. There was a big client conversion, about $17 billion of assets, that starts off as low fee reporting-only assets. And then next year, we're going to see the managed accounts convert onto our platform. So that will lead to higher fee incremental assets next year. So that's one of the drivers in the Q4 fee rate.

我會接受這兩個，我認為它們沒有關係。因此，第一，費率，當你支援第四季度的費率時，會發生什麼，這實際上是由兩個主要因素驅動的。有一個大客戶轉換，大約 170 億美元的資產，一開始只是低費用報告資產。明年，我們將看到管理帳戶轉換到我們的平台。因此，這將導致明年增量資產的費用更高。這是第四季費率的驅動因素之一。

The other is just the mix between AUM and AUA. And clients when they move more to cash, it affects our fee rate because that's mostly a reporting-only relationship. So again, nothing to do with pricing. It's that conversion, and then as clients move, and that's happening across the industry. More AUA, more cash, and that affects your blended fee rate.

另一種是 AUM 和 AUA 的混合。當客戶更多地轉向現金時，這會影響我們的費率，因為這主要是一種僅報告的關係。再說一遍，與定價無關。整個產業都在發生這種轉變，然後隨著客戶的變化。更多的 AUA，更多的現金，這會影響你的混合費率。

And then if you move to the pricing, I'd say that we're making a lot of progress with RIAs, where our unit pricing is going up. But then also what we're doing is we're bundling more with our RIA relationships. So we are -- with our Tamarac RIAs, it's an operating platform relationship, trading, reporting, rebalancing, we've now bundled insights and analytics.

然後，如果你轉向定價，我會說我們在 RIA 方面取得了很大進展，我們的單位定價正在上漲。但我們正在做的是將更多的內容與 RIA 關係捆綁在一起。因此，我們的 Tamarac RIA 是一個營運平台關係、交易、報告、再平衡，我們現在捆綁了見解和分析。

So the fee goes up, but they're also getting more for -- more enhanced platform. And then from our perspective, strategically, when they use those insights and analytics, over time, that will lead to further adoption of our solutions. So we not only get the higher fee with that bundle, but you're going to get better penetration rate for our fiduciary solutions over time.

因此，費用上漲了，但他們也獲得了更多——更增強的平台。然後從我們的角度來看，從戰略上來說，當他們使用這些見解和分析時，隨著時間的推移，這將導致我們的解決方案的進一步採用。因此，我們不僅透過該捆綁獲得更高的費用，而且隨著時間的推移，我們的信託解決方案將獲得更好的滲透率。

Great. That's helpful. And then maybe for my second topic, and this is for Josh. I mean I know you're not taking over as CFO until next week, but obviously, you made some comments here. So just, I guess, bigger picture, you're stepping into the role with the stock being down year-to-date, I think, 39%, and the market is up 15%, or 14%, 15%. So from the outside looking in, this is looking like something is broken.

偉大的。這很有幫助。然後也許是我的第二個主題，這是給喬希的。我的意思是，我知道您要到下週才會接任財務官，但顯然，您在這裡發表了一些評論。所以，我想，從更大的角度來看，你將在股票今年迄今下跌 39% 的情況下接手這個角色，而市場上漲 15%、或 14%、15%。所以從外面看，這看起來像是有東西壞了。

So I heard your comments. Obviously, it sounds like you're very supportive of what's been going on and the -- I guess, what's in place in terms of the operating leverage. But just wondering if you look from the outside in and now having a chance to look from the inside a little bit more, what else do you think you can enact here to obviously improve the picture? Because the market is obviously not buying in what's been laid out so far.

所以我聽到了你的評論。顯然，聽起來您非常支持正在發生的事情以及—我想，在營運槓桿方面的情況。但只是想知道，如果您從外部看，現在有機會從內部看更多一點，您認為您還可以在這裡制定什麼來明顯改善圖片？因為市場顯然並不認同迄今所製定的計畫。

Sure. Well, thank you for that question, Alex. I mean, look, I'd say this, I've gotten to know Envestnet over many years as a partner, as a counterparty. All of this is public information and well known in the marketplace, but Envestnet is a core partner of BlackRock, where I worked for the last 8-plus years. It's a core partner of iCapital, an alternative investment marketplace where I've been on the Board and Audit and Risk Committee for the last 4. As the leading vertical provider that serves the needs of financial adviser, Envestnet delivers the operating environment. And as Bill talked about, that operating environment is the gateway for many in the ecosystem. I think that creates a unique opportunity to grow from.

當然。好吧，謝謝你提出這個問題，亞歷克斯。我的意思是，聽著，我想說的是，多年來我作為合作夥伴、交易對手了解了 Envestnet。所有這些都是公開訊息，並且在市場上眾所周知，但 Envestnet 是 BlackRock 的核心合作夥伴，我在過去 8 年多的時間裡都在 BlackRock 工作。它是 iCapital 的核心合作夥伴，iCapital 是一個另類投資市場，過去 4 年我一直擔任該市場的董事會成員以及審計和風險委員會成員。作為滿足財務顧問需求的領先垂直提供商，Envestnet 提供營運環境。正如比爾所說，該操作環境是生態系統中許多人的門戶。我認為這創造了一個獨特的成長機會。

Our next question comes from the line of Pete Heckmann with D.A. Davidson.

我們的下一個問題來自 Pete Heckmann 和 D.A.戴維森。

I just want to go back to that pricing issue that we -- on the last question. It does appear that the fee rate declines really quite a bit in the fourth quarter, and I heard the one thing about the one big client conversion was $17 billion. But on that base of assets, I wouldn't think that would move the needle quite so much. So you said once they move the managed accounts over, the fee rate should go up. And then as you continue to collect assets in first party managed, should we start to see the fee rates start to move higher in 2024?

我只想回到我們最後一個問題的定價問題。看來第四季的費用率確實下降了很多，我聽說一個大客戶轉換的一件事是 170 億美元。但基於這樣的資產基礎，我認為這不會產生太大的影響。所以你說一旦他們將管理帳戶轉移過來，費率就應該要上漲。然後，當您繼續收集第一方管理的資產時，我們是否應該開始看到費率在 2024 年開始走高？

Well, Pete, thank you for the question. So that $17 billion comes over at a very low fee rate. The managed accounts don't come over until next year. So that's when we'll make 6, 7 basis points on that asset base versus 1 or less than 1.

好吧，皮特，謝謝你的提問。因此，這 170 億美元的費用非常低。管理帳戶要到明年才會出現。因此，屆時我們將在該資產基礎上建立 6、7 個基點，而不是 1 個或小於 1 個基點。

But there's two things that are driving your Q4 calculation. One is that specific client, and then two, the mix of AUA versus AUM, more money across the industry and our platform is in AUA and then more money within AUA is moving to cash.

但有兩件事推動了第四季的計算。一是特定客戶，二是 AUA 與 AUM 的組合，整個產業和我們平台的更多資金都在 AUA 中，然後 AUA 中的更多資金轉向現金。

So as money -- more money moves to cash, it shifts from AUM higher fee assets to really a reporting-only fee for us. So those two are the drivers that are affecting that fee rate. So it's not prices decreasing with existing clients, it's really that new client and the mix issue that's affecting that fee calculation.

因此，隨著資金——更多的資金轉向現金，它從管理規模較高的收費資產轉變為真正的僅報告費用。所以這兩個是影響費率的驅動因素。因此，並不是現有客戶的價格下降，而是新客戶和混合問題影響了費用計算。

Yes, Pete, this is Bill. Yes, the -- it's the dynamic. And I would just spot like kind of the overall market net flow environment. And in the past quarters, I really have spotlighted, and I'll do it now, the success we're having in selling into our existing client base, more of these high-value solutions. But year-to-date -- or year-over-year for our high net worth solutions account growth of 63% and assets of 55% year-over-year, direct indexing assets of 48% growth year-over-year and account growth of 27%, overlay, 41% year-over-year growth with account growth of 28%. So we're being successful, but it's not enough to defy the overall AUA flow that is coming in the platform.

是的，皮特，這是比爾。是的，這就是動態。我只是想了解整體市場淨流量環境。在過去的幾個季度中，我確實重點關注了我們在向現有客戶群銷售更多高價值解決方案方面所取得的成功，現在我會這樣做。但年初至今，我們的高淨值解決方案帳戶年增 63%，資產年增 55%，直接指數化資產年增 48%，帳戶增長 27%，疊加年增 41%，帳戶增長 28%。因此，我們取得了成功，但這還不足以挑戰平台中即將到來的整體 AUA 流程。

That AUA flow is healthy. We're able to see more of the advisers business as they position their clients in more cash or defensive positions and ultimately, rebalance into these types of solutions when the market normalizes and the rate environment becomes clearer. So that's just the dynamic, and we're managing it. And again, there's a conversion, good thing, $17 billion, low fee rate ultimately becomes higher fee rate. There's a big flow of AUA, but our focus and our success -- our continued success in penetrating our current book of business is meaningful.

AUA 流量是健康的。我們能夠看到更多的顧問業務，因為他們將客戶置於更多的現金或防禦位置，並最終在市場正常化和利率環境變得更加清晰時重新平衡到這些類型的解決方案。這就是動態，我們正在管理它。再次，有一個轉換，好事，170 億美元，低費率最終變成了更高的費率。 AUA 流量很大，但我們的重點和我們的成功——我們在滲透當前業務方面的持續成功是有意義的。

I would also -- so we see our fee rate is stable both on our AUM and AUA. It's the mix that's changing the calculation. But then as you look forward and think about our subscription revenue, we've got a lot going on in the retirement space, so there will be growth in subscriptions driven by those initiatives.

我也會——所以我們看到我們的 AUM 和 AUA 費率都是穩定的。正是混合改變了計算。但當你展望並思考我們的訂閱收入時，我們在退休領域發生了很多事情，因此這些舉措將推動訂閱量的成長。

We've talked about a partnership with Empower. That will come through as subscription revenue. It will also come through as fiduciary revenue as we're the default manager on those plans. We have a lot -- we talked about the asset managers. We're going to get different economics going forward from the asset managers, and that will mostly come through incrementally as subscription revenue.

我們已經討論過與 Empower 的合作關係。這將作為訂閱收入來實現。由於我們是這些計劃的預設管理者，它也將作為信託收入獲得。我們有很多——我們談到了資產管理公司。我們將從資產管理公司獲得不同的經濟效益，而這主要將透過訂閱收入逐步實現。

And then we have organic growth. New clients coming on board. We talked about First Command. It's a pretty material client. It's about 500,000 accounts, $35 billion of assets that will come on second, third quarter of next year. And then we see solid growth in our Insights and Analytics based on the signed deals in the pipeline. And then our RIA growth, it's one, the subscription stand-alone platform, we bundle analytics and then we cross-sell from there, managed accounts, tax overlay, direct indexing and then at some point next year -- call it the middle of next year, we'll start to cross-sell custody to those existing relationships.

然後我們就有了有機成長。新客戶加入。我們討論了第一指揮部。這是一個非常物質的客戶。明年第二、第三季將有約 50 萬個帳戶、350 億美元的資產。然後，根據即將簽署的交易，我們看到我們的洞察和分析穩步增長。然後我們的 RIA 成長，它是訂閱獨立平台，我們捆綁分析，然後從那裡進行交叉銷售、管理帳戶、稅收疊加、直接索引，然後在明年的某個時候 - 稱之為中間明年，我們將開始向這些現有關係交叉銷售託管權。

And the only thing I'd add to that, Pete, not to pile on, but also stabilization in the D&A subs line because that has not been the case. That has been a heavy weight that has kind of dragged down our overall subs growth. And so we have made a lot of progress this past quarter, and we'll report on more as we get to the end of the next -- the quarter that we're in now.

皮特，我唯一要補充的是，不要堆砌，還要穩定 D&A 子線，因為情況並非如此。這是一個沉重的負擔，拖累了我們整體潛水艇的成長。因此，我們在上個季度取得了很大進展，我們將在下一個季度（即我們現在所處的季度）結束時報告更多進展。

Okay. Okay. That's helpful. And then I should probably remember why, but professional services and your guidance is up over 90% year-over-year. Remind me what's driving that dynamic?

好的。好的。這很有幫助。然後我可能應該記得為什麼，但是專業服務和您的指導同比增長了 90% 以上。請提醒我是什麼推動了這種動態？

So this is Josh. I'm happy to take that. That's effectively a single clients, which is an existing clients of our D&A business, where the new service that we're providing for them, in connection in some respects with the new data sets that Bill mentioned, is effectively a net new build and, therefore, professional services revenue. Still revenue to Envestnet, but for the quarter, we booked as professional services.

這就是喬許。我很樂意接受。這實際上是一個單一客戶，也就是我們 D&A 業務的現有客戶，我們為他們提供的新服務，在某些方面與比爾提到的新數據集有關，實際上是一個全新的構建，因此，專業服務收入。 Envestnet 仍然有收入，但在本季度，我們預訂為專業服務。

And you had some revenue shifting between subscription and professional services throughout the year as well.

全年也有一些收入在訂閱服務和專業服務之間轉移。

(Operator Instructions) There are no further questions at this time, and I'd like to turn the floor back over to CEO, Mr. Bill Crager, for closing comments.

（操作員說明） 目前沒有其他問題，我想將發言權交回給執行長 Bill Crager 先生，以徵求結束意見。

Thank you, Camilla. Thank you, everyone, for your interest in Envestnet and for joining us this evening.

謝謝你，卡米拉。感謝大家對 Envestnet 的興趣並今晚加入我們。

I, once again, want to thank all of my colleagues at Envestnet for the incredible work that you do. Thank you, and have a good evening.

我要再次感謝 Envestnet 的所有同事所做的出色工作。謝謝您，祝您晚上愉快。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。