Envestnet Inc (ENV) 2023 Q4 法說會逐字稿

Greetings and welcome to the Envestnet Fourth Quarter 2023 Earnings conference call. At this time, all participants are in a listen only mode. (Operator Instructions)

您好，歡迎參加 Envestnet 2023 年第四季財報電話會議。此時，所有參與者都處於只聽模式。（操作員說明）

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Josh Warren, Senior Adviser. Thank you. You may begin.

提醒一下，本次會議正在錄製中。現在我很高興向您介紹主持人，高級顧問 Josh Warren。謝謝。你可以開始了。

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

大家下午好。我是 Josh Warren，Envestnet 財務長。感謝您參加今天的 2023 年第四季財報電話會議。

Before we begin, I'd like to point out that our earnings press release, supplemental presentation, and associated Form 10-K 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 one 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-K 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，並且我們網站的投資者關係部分也將提供為期一個月的重播。

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第 2 和第 3 投影片中的警告聲明，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'll 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指標。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 fourth quarter and full year 2023 results. After our prepared remarks, we will open the call to questions.

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，以及公司第四季和 2023 年全年業績的概述。在我們準備好發言後，我們將開始提問。

During the Q&A, please limit yourself to one question plus one follow-up. You may get back into the queue if you have additional questions.

在問答過程中，請將自己限制在一個問題和一個後續問題上。如果您還有其他問題，可以返回佇列。

I'd like to start the call today with a review of our Q4 and full year 2023 results. Our results in Q4, each of which were above the high end of our range, represents our focus on disciplined execution. Q4 revenue was $317.6 million, representing 8% growth over Q4 2022.

我想在今天的電話會議開始時回顧一下我們的第四季和 2023 年全年業績。我們第四季的每一項業績都高於我們範圍的高端，這代表了我們對嚴格執行的關注。第四季營收為 3.176 億美元，較 2022 年第四季成長 8%。

Adjusted EBITDA was $75.5 million, representing a 24% adjusted EBITDA margin, and nearly 600 basis points of margin expansion when compared to Q4 2022. Our adjusted EPS for Q4 was $0.65, up 44% from the $0.45 we reported in Q4 2022.

調整後 EBITDA 為 7,550 萬美元，調整後 EBITDA 利潤率為 24%，與 2022 年第四季相比，利潤率擴大了近 600 個基點。我們在第四季度調整後的每股收益為 0.65 美元，比 2022 年第四季報告的 0.45 美元增加了 44%。

For the full year 2023, our revenue was $1.246 billion. Adjusted EBITDA was $251 million, representing a 20% overall adjusted EBITDA margin, and our adjusted EPS was $2.12. As we enter 2024, and the next chapter of Envestnet, we have a set of strong fundamentals that we will discuss on today's call that position us well. I now like to turn the call over to Chief Executive Officer, Bill Crager. Bill?

2023 年全年，我們的收入為 12.46 億美元。調整後 EBITDA 為 2.51 億美元，佔整體調整後 EBITDA 利潤率的 20%，調整後每股收益為 2.12 美元。當我們進入 2024 年以及 Envestnet 的下一個篇章時，我們擁有一系列強大的基本面，我們將在今天的電話會議上討論這些基本面，這些基本面使我們處於有利地位。我現在想將電話轉給執行長比爾·克拉格 (Bill Crager)。帳單？

Thank you, Josh. As you know, this will be my final earnings call as Chief Executive Officer of Envestnet. For 25 years, it has been a privilege to be part of the amazing journey that is our company. From an idea and a good dose of courage by applying a lot of resilience and creativity, we've built something that is extraordinary.

謝謝你，喬許。如你所知，這將是我作為 Envestnet 執行長的最後一次財報電話會議。25 年來，我很榮幸能夠參與我們公司的奇妙旅程。憑藉著一個想法和勇氣，透過運用大量的韌性和創造力，我們創造了一些非凡的東西。

I'm proud of what we've accomplished and perhaps most proud of this -- Envestnet is foundational to the financial guidance that advisers deliver to enhance the lives of millions and millions of families. Over the last couple of years, we've worked effectively to make Envestnet even better, taking the necessary steps to bring the company together to enable a highly connected, highly technology-driven, highly data-driven platform to serve the wealth management industry.

我為我們所取得的成就感到自豪，也許最自豪的是——Envestnet 是顧問提供財務指導的基礎，旨在改善數百萬家庭的生活。在過去的幾年裡，我們有效地努力讓 Envestnet 變得更好，採取必要的步驟將公司整合在一起，打造一個高度互聯、高度技術驅動、高度數據驅動的平台，為財富管理行業提供服務。

Today, Envestnet is in a very strong position because of the work that we've done. Company's the industry leader by assets, advisors, accounts; market share leader across financial planning; a turnkey asset management offering; and the data insights that we generate and offer to our clients.

今天，由於我們所做的工作，Envestnet 處於非常有利的地位。公司的資產、顧問、帳戶均處於業界領先地位；財務規劃領域的市佔率領導者；統包資產管理產品；以及我們產生並向客戶提供的數據見解。

We are embedded with a great roster of clients and partners, driving an industry ecosystem that powers growth and delivers value, and we have an exceptionally talented and aligned leadership team to deliver the next phase of Envestnet.

我們擁有大量的客戶和合作夥伴，推動著一個行業生態系統的發展，推動成長並創造價值，並且我們擁有一支才華橫溢、團結一致的領導團隊來交付 Envestnet 的下一階段。

The Envestnet strategy is aligned to our clients' needs to drive the growth and productivity of advisers by providing the most comprehensive and capable wealth management platform for our industry. We've created scale and competitive advantage with technology, data, and solutions. We've connected the pieces, and we are able to serve all client workflows and business models.

Envestnet 策略符合客戶的需求，透過為我們行業提供最全面、最有能力的財富管理平台來推動顧問的成長和生產力。我們透過技術、數據和解決方案創造了規模和競爭優勢。我們已經將各個部分連接起來，並且能夠為所有客戶工作流程和業務模型提供服務。

Doing this serves investors by delivering revenue growth, operating leverage and improving free cash flow conversion. I look forward to helping Envestnet continue its leadership, while advocating for our industry, road mapping the future of financial advice and the essential impact that it has while deepening relationships with our clients and our partners.

這樣做可以透過實現收入成長、營運槓桿和改善自由現金流轉換來為投資者服務。我期待著幫助 Envestnet 繼續保持其領導地位，同時倡導我們的行業，規劃財務諮詢的未來及其重要影響，同時加深與我們的客戶和合作夥伴的關係。

I now want to turn the call over to Tom Sipp, who leads Envestnet's business lines for an overview of the drivers of our business, and I'll be back at the end of the call for some closing comments. Tom?

我現在想把電話轉給 Tom Sipp，他負責 Envestnet 的業務線，以概述我們業務的驅動因素，我將在電話結束時回來徵求一些結束語。湯姆？

Thank you, Bill. It has been an honor and one of the great experiences in my career to work alongside you. I am excited about the place we are in, and where we are going. I'd like to spend our time today discussing four important topics -- the market context and themes driving our business; our position and how it is translating into key metrics and financial results; recent proof points of our strategy winning with clients; and finally, the key growth initiatives that drive us ahead in the medium and long term.

謝謝你，比爾。與您一起工作是我的榮幸，也是我職業生涯中最寶貴的經歷之一。我對我們現在所處的位置以及我們要去的地方感到興奮。我今天想花時間討論四個重要主題——市場背景和推動我們業務的主題；我們的立場以及它如何轉化為關鍵指標和財務表現；我們的策略贏得客戶的最新證據；最後，是推動我們中長期前進的關鍵成長舉措。

First, the market context. Envestnet is uniquely positioned to serve every type of advisory business model across the industry. From standalone REA, to large institutional broker dealer or bank. We understand better than anyone the themes driving the overall industry; the themes that shape our technology offering; and how we bring solutions to market.

首先，市場背景。Envestnet 具有獨特的優勢，可為整個行業的各種類型的諮詢業務模式提供服務。從獨立的 REA，到大型機構經紀商或銀行。我們比任何人都更了解推動整個產業發展的主題；塑造我們技術產品的主題；以及我們如何將解決方案推向市場。

First, there's a greater push to achieve platform scale for both the advisor and for the firms that support them. Integrated technology and service are keys to greater efficiency. Another key trend is personalization of portfolio management, investments, and the digital experience. This is more important than ever. Personalization is driven by the fusion of data and insights, robust investment options, and technology capabilities.

首先，為顧問和支持他們的公司實現平台規模提供了更大的推動力。整合技術和服務是提高效率的關鍵。另一個主要趨勢是投資組合管理、投資和數位體驗的個人化。這比以往任何時候都更重要。個人化是由數據和見解、強大的投資選擇和技術能力的整合所驅動的。

Next, our research shows that 60% of advisors and firms prefer to buy wealth tech from a single provider. Streamlining technology and maximizing the benefits of an end to end platform is imperative to a successful strategy, and ultimately drives customers to consolidate providers.

接下來，我們的研究表明，60% 的顧問和公司更喜歡從單一提供者購買財富科技。簡化技術並最大限度地提高端到端平台的優勢對於成功的策略至關重要，並最終推動客戶整合提供者。

And finally, there is a continued evolution toward a more holistic view of advice -- powered by data and planning capabilities that serves all client types, which is then delivered to seamless connections to solutions.

最後，不斷向更全面的建議觀點發展——由服務於所有客戶類型的數據和規劃能力提供支持，然後將其提供給解決方案的無縫連接。

We've been at the forefront of these trends with the scale and scope of our technology and solutions in the market for years. Our competitors often talk about their vision or product roadmaps as demonstrated through static screenshots. Meanwhile, our platform is live, battle-tested, and handling billions of dollars across millions of accounts every day with the most robust features.

多年來，我們的技術和解決方案在市場上的規模和範圍一直處於這些趨勢的前沿。我們的競爭對手經常談論他們的願景或產品路線圖，如透過靜態螢幕截圖所示。同時，我們的平台已經上線，經過實戰考驗，每天透過最強大的功能處理數百萬個帳戶的數十億美元。

And we are not standing still. We've rolled out a continuous series of enhancements to our platform with true open architecture, both within the connectivity and integration of our native modern experience, and as part of our rich API and data library. We are enhancing, connecting and delivering into the market. This has been our work over the last few years, and we will continue to drive competitive advantages.

我們並沒有停滯不前。我們透過真正的開放架構對我們的平台進行了一系列持續的增強，無論是在我們本地現代體驗的連接和整合中，還是作為我們豐富的 API 和資料庫的一部分。我們正在增強、連結並向市場交付產品。這是我們過去幾年的工作，我們將繼續推動競爭優勢。

Here's how that translates into key metrics and financial results. First and most importantly, our wealth business delivered Q4 revenue growth of 11% versus Q4 2022. Second, over the last two years, investment delivered $116 billion of AUMA net inflows, representing an average growth rate of 8%.

以下是如何將其轉化為關鍵指標和財務表現。首先也是最重要的是，我們的財富業務第四季營收較 2022 年第四季成長了 11%。其次，在過去兩年，投資帶來了AUMA淨流入1,160億美元，平均成長率為8%。

We have delivered more than four times the net inflows of the second and third largest TAMPs combined. Accounts grew 4% year over year, while AUMA accounts grew 8%. Our gross fee rate in Q4 was approximately 9.8. It's been stable between 9.5 to 10.5 with lots of short-term variables across millions of accounts. Finally, our client service scores have gone from the low 40s to mid 60s over the last two years.

我們交付的淨流入量是第二大和第三大 TAMP 淨流入量總和的四倍以上。帳戶年增 4%，AUMA 帳戶成長 8%。我們第四季的毛費用約為 9.8。它一直穩定在 9.5 到 10.5 之間，數百萬個帳戶存在大量短期變數。最後，我們的客戶服務得分在過去兩年中從 40 分左右上升到 60 分左右。

Our leadership, with a strong and stable client base, is another competitive advantage. We have over 4,500 clients in the broker-dealer and REA channels, including 48 of the 50 largest wealth management and brokerage firms. Our top 25 clients have been with us for an average of 15 years.

我們的領導地位以及強大而穩定的客戶群是我們的另一個競爭優勢。我們在經紀自營商和 REA 管道擁有超過 4,500 家客戶，其中包括 50 家最大的財富管理和經紀公司中的 48 家。我們的前 25 位客戶平均與我們合作 15 年。

We have made fundamental improvements in both the technology and the service and delivery our clients' experience with us. That puts us in a position to capitalize on the trend of vendor consolidation. I will provide you a couple of specific proof points.

我們在技術和服務方面都取得了根本性的改進，並提供了客戶的體驗。這使我們能夠利用供應商整合的趨勢。我將為您提供幾個具體的證據。

A large regional broker-dealer with over $50 billion of assets started to transition away from our platform, but it's now coming back. Because the promise of a custom platform with a fully integrated advisor ecosystem could not be delivered. Only Envestnet has the solution live and in market with the scale and maturity that can be relied upon.

一家資產超過 500 億美元的大型區域經紀自營商開始從我們的平台轉型，但現在又回來了。因為具有完全整合的顧問生態系統的客製化平台的承諾無法兌現。只有 Envestnet 擁有現成且投入市場的解決方案，其規模和成熟度值得信賴。

A $15 billion REA, and long-time client, recently adopted our managed account capabilities in Q4, moved $400 million of assets onto the platform, including a majority in overlay services and direct indexing. As a result, the recurring revenues from this client has more than tripled, with potential for significant growth.

一家價值 150 億美元的 REA 長期客戶最近在第四季度採用了我們的管理帳戶功能，將 4 億美元的資產轉移到該平台上，其中大部分資產位於覆蓋服務和直接索引中。結果，該客戶的經常性收入增加了兩倍多，並且具有顯著成長的潛力。

So we're very focused on our clients, delivering the platform that helps them grow. This is a better position than where we were a few years ago, and one that we're leveraging to further our leading position.

因此，我們非常關注客戶，提供幫助他們成長的平台。這比我們幾年前的處境更好，我們正在利用這一優勢進一步鞏固我們的領先地位。

Before we move on, I'd like to address the impact of M&A across the industry. Typically, Envestnet has been a net beneficiary as our extensive client footprint with both REA aggregators and enterprise clients has supported additional growth. However, consolidation over the last year or so has resulted in a negative impact to our wealth growth rate.

在我們繼續之前，我想談談併購對整個產業的影響。通常，Envestnet 一直是淨受益者，因為我們在 REA 聚合商和企業客戶中的廣泛客戶足跡支持了額外的成長。然而，過去一年左右的整合對我們的財富成長率造成了負面影響。

Finally, I'd like to spotlight some of the important initiatives that will contribute to revenue growth over the medium term. Some of these are further along and included in our outlook. Others are underway and will start to contribute to our growth in 2025 and beyond.

最後，我想重點介紹一些有助於中期收入成長的重要措施。其中一些正在進一步發展並包含在我們的展望中。其他項目正在進行中，並將開始為我們 2025 年及以後的成長做出貢獻。

First, we have achieved robust year-over-year growth across several of our solutions business lines where personalization and technology drive differentiation. Including high-net-worth, direct indexing, tax overlay, and managed accounts to RIAs. We believe these accelerated growth rates will continue for an extended period.

首先，我們的多個解決方案業務線實現了強勁的同比增長，其中個性化和技術推動了差異化。包括高淨值人士、直接索引、稅收疊加以及 RIA 的管理帳戶。我們相信這些加速的成長率將持續很長一段時間。

Second, pricing initiatives are accelerating. With specific progress in the RIA channel where we package our technology with a broad set of fiduciary solutions, analytics and planning, deepening our client relationships. Enterprise pricing initiatives will take longer due to the long-term nature of our contracts.

其次，定價舉措正在加速。隨著 RIA 管道的具體進展，我們將我們的技術與廣泛的信託解決方案、分析和規劃結合起來，加深了我們的客戶關係。由於我們合約的長期性，企業定價計劃將需要更長的時間。

Third, our strategy to deliver deeply integrated custody capabilities completes a missing piece in the fully digital and connected adviser and client experience. We are delivering the account opening, funding and servicing workflows between our wealth management platform and custody back office functions in one single experience. We will launch this solution as previously announced with FNZ.

第三，我們提供深度整合的託管功能的策略彌補了全數位化、互聯的顧問和客戶體驗中缺少的部分。我們透過單一體驗在財富管理平台和託管後台功能之間提供開戶、融資和服務工作流程。正如之前與 FNZ 宣布的那樣，我們將推出此解決方案。

Finally, our retirement business continues to gain momentum. The team is focused on efficiently delivering retirement solutions to wealth advisors, utilizing the best products, technology, and user experience in the marketplace, essentially providing the easy button for wealth advisors. This business will then scale by leveraging distribution partnerships with retirement and asset management industry leaders.

最後，我們的退休業務持續保持強勁勢頭。該團隊專注於利用市場上最好的產品、技術和用戶體驗，為財富顧問有效地提供退休解決方案，從本質上為財富顧問提供簡單的按鈕。然後，該業務將透過利用與退休和資產管理行業領導者的分銷合作夥伴關係來擴大規模。

What we have in the marketplace is meaningful for our clients in driving results. The continuous delivery of enhancements of our technology, tools, solutions, and service drive discrete revenue opportunities and furthers our competitively-advantaged platform. We've connected the components to meet client needs, and drive deeper relationships. That underpins our 2024 well for revenue growth guidance of mid to high single digits.

我們在市場上擁有的產品對於我們的客戶推動成果具有重要意義。我們的技術、工具、解決方案和服務的不斷增強帶來了離散的收入機會，並進一步增強了我們的競爭優勢平台。我們將各個組件連接起來以滿足客戶需求並推動更深層次的關係。這為我們 2024 年中高個位數的收入成長指引提供了良好的基礎。

Thank you, and I'd like to turn the call back over to Josh.

謝謝，我想把電話轉給喬希。

Thank you, Tom. I'll spend a few minutes discussing three things. First, our results; second, our balance sheet; and third, our outlook and focus.

謝謝你，湯姆。我將花幾分鐘討論三件事。首先，我們的結果；第二，我們的資產負債表；第三，我們的展望與重點。

As we enter 2024 and a new chapter of Envestnet, we look forward to continuing to deliver our connected ecosystem and our unique capabilities. Our model supports our attractive growth algorithm and enables operating leverage and free cash flow generation.

隨著我們進入 2024 年和 Envestnet 的新篇章，我們期待繼續提供我們的互聯生態系統和我們獨特的功能。我們的模型支援我們有吸引力的成長演算法，並實現營運槓桿和自由現金流生成。

As of the end of 2023, Envestnet served over 108,000 advisers, and those advisers are doing more business with Envestnet during 2023. While our total number of advisers grew by nearly 3%, our number of accounts grew by over 4% to over 19 million, evidencing higher adoption. Taking a longer view, demonstrating the scalability of our platform, the number of accounts per adviser on investment has grown approximately 50% between the start of 2020 and the end of 2023.

截至 2023 年底，Envestnet 為超過 108,000 名顧問提供服務，這些顧問在 2023 年期間將與 Envestnet 開展更多業務。雖然我們的顧問總數增加了近 3%，但我們的帳戶數量增加了 4% 以上，達到超過 1,900 萬，這證明了我們的採用率更高。從更長遠的角度來看，從 2020 年初到 2023 年底，每位顧問的投資帳戶數量增加了約 50%，證明了我們平台的可擴展性。

While historically, Envestnet expected to grow costs in line with accounts, the completion of our platform infrastructure investments means that account growth becomes increasingly beneficial to our ability to expand profitability and to generate consistent operating leverage to deliver growing and robust free cash flow.

雖然從歷史上看，Envestnet 預計成本會隨著帳戶的增長而增長，但我們平台基礎設施投資的完成意味著帳戶增長越來越有利於我們擴大盈利能力和產生一致的運營槓桿以提供不斷增長和強勁的自由現金流的能力。

To achieve this framework, we'll focus on both revenue growth across both of our segments and disciplined expense management. First, let me focus on our recurring revenue dynamics. As a reminder, our wealth solutions segment generates both asset-based and subscription-based revenues, while our data and analytics segment generates subscription-based revenues only.

為了實現這一框架，我們將重點放在兩個部門的收入成長和嚴格的費用管理。首先，讓我注意一下我們的經常性收入動態。提醒一下，我們的財富解決方案部門同時產生基於資產和基於訂閱的收入，而我們的數據和分析部門僅產生基於訂閱的收入。

In wealth solutions, asset-based and subscription-based pricing constructs provide the breadth of solutions to fit the industry and enable Envestnet growth. I'll start by reviewing the asset base revenues of our wealth solutions segment. During Q4, investment recorded net inflows of $7.9 billion into AUMA accounts. For the full year, Envestnet generated $58.5 billion in net flows into a AUMA accounts representing 8% organic asset growth.

在財富解決方案中，基於資產和基於訂閱的定價結構提供了廣泛的解決方案來適應行業並促進 Envestnet 的成長。我將首先回顧我們財富解決方案部門的資產基礎收入。第四季度，AUMA 帳戶投資淨流入 79 億美元。全年，Envestnet 流入 AUMA 帳戶的淨流量為 585 億美元，相當於有機資產成長的 8%。

We believe consistent net flows are one of the most enduring attributes of our business. Envestnet has not had an outflow quarter since going public in July 2010, meaning that Q4 2023 was the 54th quarter of inflows consecutively. This is because flows on the Envestnet platform are among products within a portfolio and are underpinned by multiyear contracts.

我們相信持續的淨流量是我們業務最持久的屬性之一。自 2010 年 7 月上市以來，Envestnet 尚未出現過資金流出季度，這意味著 2023 年第四季是連續第 54 個季度資金流入。這是因為 Envestnet 平台上的流量屬於投資組合中的產品，並以多年合約為基礎。

Amidst this backdrop of strong and consistent asset growth, Envestnet has faced some headwinds from clients allocating more of their portfolios to cash due to the inverted yield curve environment. Investors have responded to higher short-term rates by holding more of their money in deposit accounts outside Envestnet or in retail money market funds. Naturally, this has affected our results. We expect money invested into debt or equity markets to produce a higher fee mix.

在資產持續強勁成長的背景下，由於殖利率曲線倒掛環境，客戶將更多投資組合配置為現金，Envestnet 面臨一些阻力。投資者透過在 Envestnet 以外的存款帳戶或零售貨幣市場基金中持有更多資金來應對短期利率上升。自然，這影響了我們的結果。我們預計投資於債務或股票市場的資金將產生更高的費用組合。

During 2023, total asset base revenue generated by wealth solutions was $745 million, representing a 1% increase over 2022. Our growth accelerated in the second half of the year. This was particularly pronounced during Q4 2023, when asset base revenue grew 13% compared to Q4 2022 to nearly $189 million.

2023年，財富解決方案產生的總資產基礎收入為7.45億美元，比2022年成長1%。下半年我們的成長加速。這在 2023 年第四季尤為明顯，資產基礎收入較 2022 年第四季成長 13%，達到近 1.89 億美元。

The subscription-based revenues of our wealth solutions segments are generated by our software as a service offerings, which primarily serve RIAs and financial planning tools.

我們的財富解決方案部門的訂閱收入是由我們的軟體即服務產品產生的，該產品主要服務於 RIA 和財務規劃工具。

First, I'd like to cover one reporting item as announced on our last earnings call to align our reporting with how we manage our business. We transferred our wealth analytics business, which generated about $4 million of revenue each quarter of 2023 to our wealth solutions segment. This contribution to wealth solutions, the wealth solutions subscription business, is reflected in the Q4 numbers provided. To facilitate comparability, I'll be describing our segment results on a recast basis and historical financial information is available in our earnings supplements

首先，我想介紹我們上次財報電話會議上宣布的一個報告項目，以使我們的報告與我們的業務管理方式保持一致。我們將財富分析業務（該業務在 2023 年每季產生約 400 萬美元的收入）轉移到我們的財富解決方案部門。這種對財富解決方案（財富解決方案訂閱業務）的貢獻反映在提供的第四季數據中。為了方便比較，我將在重述的基礎上描述我們的部門業績，歷史財務資訊可在我們的收益補充中找到

In 2023, subscription-based revenue in our wealth and wealth solutions outgrew asset based revenue increasing 5% on a pro forma basis to $325 million. And during Q4, our wealth solutions subscription base revenue of over $84 million grew 4% on a pro forma basis over Q4 2022.

到 2023 年，我們的財富和財富解決方案中基於訂閱的收入增長超過基於資產的收入，預計將增長 5%，達到 3.25 億美元。在第四季度，我們的財富解決方案訂閱基礎收入超過 8,400 萬美元，預計比 2022 年第四季成長 4%。

On an overall basis, wealth solutions revenue grew by 3% during 2023. During Q4 2023, our wealth solutions revenue of $279 million represented 11% growth over Q4 2022. As we look ahead, while double digit growth remains our goal, we expect to deliver a well solutions growth rate in the mid to high single digits for the full year 2024.

整體而言，2023 年財富解決方案收入成長了 3%。2023 年第四季度，我們的財富解決方案營收為 2.79 億美元，比 2022 年第四季成長 11%。展望未來，雖然兩位數成長仍然是我們的目標，但我們預計 2024 年全年油井解決方案成長率將達到中高個位數。

This growth outlook is premised on a flat market for the full year, as demonstrated by the margin expansion delivered during 2023. We believe we can continue to drive margins in 2024, as we leverage the investments we've made in our platform.

這一成長前景的前提是全年市場持平，2023 年利潤率擴張證明了這一點。我們相信，隨著我們利用在平台上進行的投資，我們可以在 2024 年繼續提高利潤率。

Turning to our data and analytics business, which generates subscription-based revenues. In Q4, our revenue was $38.6 million. On a like-for-like basis, Q4 D&A revenue declined by 7% compared to Q4 2022, but was 3% higher sequentially versus Q3 2023. For the full year, our D&A segment generated over $150 million of revenue, declining by 14% on a pro forma basis.

轉向我們的數據和分析業務，該業務產生基於訂閱的收入。第四季度，我們的營收為 3,860 萬美元。與 2022 年第四季相比，第四季 D&A 營收年減 7%，但比 2023 年第三季季增 3%。全年，我們的 D&A 部門創造了超過 1.5 億美元的收入，預計將下降 14%。

In connection with this performance, we are taking a non-cash impairment charge of approximately $192 million during Q4 based on a reevaluation of investments goodwill related to the DNA segment. 2023 had several commercialization challenges for this segment, including banking turmoil and client delinquencies.

與此績效相關，我們根據與 DNA 部門相關的投資商譽的重新評估，在第四季度收取了約 1.92 億美元的非現金減損費用。 2023 年，該領域面臨多項商業化挑戰，包括銀行業動盪和客戶拖欠。

While performance was less than Envestnet had anticipated, there are a variety of strategic and operational initiatives in process that we believe will position the business well going forward. We believe the sequential results in Q4 provide early evidence of the returns on these initiatives.

雖然業績低於 Envestnet 的預期，但我們相信正在進行的各種策略和營運舉措將使業務保持良好的發展勢頭。我們相信第四季度的連續結果提供了這些舉措回報的早期證據。

Now moving to expenses. The platform infrastructure investments we've made over the last few years enable us to achieve operating leverage by growing revenues ahead of costs, to expand our profitability and grow our free cash flow.

現在轉向支出。我們過去幾年進行的平台基礎設施投資使我們能夠透過收入成長超過成本來實現營運槓桿，從而擴大我們的獲利能力並增加我們的自由現金流。

As announced on our November call, we have successfully reduced our annual expense run rate by $60 million across compensation-related non-compensation expenses and CapEx since the start of 2023. We consider our costs to be manageable as those three general categories constitute the majority of our total cost base.

正如我們在 11 月電話會議上宣布的那樣，自 2023 年初以來，我們已成功地將與薪酬相關的非薪酬支出和資本支出的年度費用運行率降低了 6000 萬美元。我們認為我們的成本是可控的，因為這三個一般類別構成了我們總成本基礎的大部分。

Envestnet also had certain non-controllable expenses, which are common in the industry -- consisting of payments to third parties for investment management; clearing; custody; and brokerage services. As of Q4 2023, we expanded adjusted EBITDA margins -- nearly 600 basis points from Q4 2022, and nearly 700 basis points from our Q1 2022 margin.

Envestnet 也存在某些業界常見的不可控費用，包括向第三方支付投資管理費用；清算；保管;和經紀服務。截至 2023 年第四季度，我們擴大了調整後 EBITDA 利潤率，較 2022 年第四季度提高了近 600 個基點，較 2022 年第一季提高了近 700 個基點。

We expect to continue to expand margins and improve free cash flow generation in 2024. I'll note that we revised our accounting treatment of certain cloud hosting arrangements with third party infrastructure providers to be operating expenses and not capitalizable. There is of course, no cash impact from this adjustment, and our historical reporting has been revised to reflect this change.

我們預計到 2024 年將繼續擴大利潤率並改善自由現金流的產生。我要指出的是，我們修改了與第三方基礎設施提供者的某些雲端託管安排的會計處理，將其作為營運費用而不是資本化。當然，這項調整不會產生現金影響，我們的歷史報告也已進行修訂以反映此變更。

In addition to adjusted EBITDA, as defined by our credit agreements, we're committed to providing greater transparency regarding our free cash flow. Three items that are not included in our 2023 adjusted EBITDA, but did impact free cash flow were first, severance expenses of $35 million. Although we will continue to look for ways to optimize our organization, we do not anticipate these 2023 severance figures to be appropriate run rates going forward.

除了我們的信貸協議所定義的調整後 EBITDA 之外，我們還致力於提高自由現金流的透明度。三項未包含在 2023 年調整後 EBITDA 中，但確實影響自由現金流的項目首先是 3,500 萬美元的遣散費。儘管我們將繼續尋找優化組織的方法，但我們預計 2023 年的遣散費數字不會是未來適當的運作率。

Second, capitalized software development of $94 million. In aggregate, we expensed or capitalized $234 million of total technology development in 2023, including stock-based compensation. We expect this overall total technology development spending to reduce in the mid to high single digits year-over-year because of the investments already made, but will remain significant as part of our continued commitment to drive scale and ensure client success.

其次，軟體開發資本化為 9,400 萬美元。2023 年，我們總共支出或資本化了 2.34 億美元的技術開發總額，其中包括基於股票的薪酬。由於已經進行的投資，我們預計技術開發總支出將同比減少中高個位數，但作為我們持續致力於擴大規模和確保客戶成功的一部分，該支出仍將保持重要地位。

Third, our 2023 CapEx was $19 million. CapEx for 2024 is expected to be approximately $10 million. When taken together, our free cash flow for Q4 2023 was $57 million, reflecting our strong performance, and some working capital benefits.

第三，我們 2023 年的資本支出為 1,900 萬美元。2024 年的資本支出預計約 1,000 萬美元。總的來說，我們 2023 年第四季的自由現金流為 5,700 萬美元，反映了我們強勁的業績和一些營運資本利得。

Envestnet's free cash flow during the first three quarters was negative. Following Q4, I'm pleased to report that for 2023, free cash flow was positive at $42 million. Our focus will be on improving this number in 2024.

Envestnet前三季的自由現金流為負。第四季之後，我很高興地報告，2023 年自由現金流為正，達到 4,200 萬美元。我們的重點是在 2024 年改善這一數字。

Turning to our balance sheet, cash on hand increased nearly $50 million during Q4 to $91 million, similar to the seasonality observed in previous years, we expect cash to decrease in the first quarter of 2024.

轉向我們的資產負債表，第四季度手頭現金增加近 5000 萬美元，達到 9100 萬美元，與前幾年觀察到的季節性相似，我們預計 2024 年第一季現金將減少。

Our first tranche of convertible debt, which we pay 75 basis points of interest on, is due in Q3 of 2025. As of December 31, our leverage ratio -- defined as our total debt less cash over trailing adjusted EBITDA -- has been reduced to below 3.2 times. In total, we believe our liquidity position gives us flexibility. We expect to continue to be disciplined and prudent with our capital allocation as we look to further reduce our leverage ratio during 2024.

我們支付 75 個基點的利息的第一批可轉換債務將於 2025 年第三季到期。截至 12 月 31 日，我們的槓桿率（定義為總債務減去現金與追蹤調整後 EBITDA 比率）已降至 3.2 倍以下。總的來說，我們相信我們的流動狀況給了我們靈活性。我們希望在 2024 年進一步降低槓桿率，因此我們將繼續保持嚴格和審慎的資本配置。

Looking ahead to the first quarter of 2024, consistent with how we've provided information previously, we expect revenues to be between $320 million and $326 million, representing 8% growth over Q1 2023. Assuming the midpoint of the range, adjusted EBITDA to be between $64 million and $69 million. Using the midpoint of the range, this represents approximately 250 basis points of margin improvement over Q1 2023, and adjusted EPS to be between $0.52 and $0.57.

展望 2024 年第一季度，與我們先前提供的資訊一致，我們預計營收將在 3.2 億美元至 3.26 億美元之間，比 2023 年第一季成長 8%。假設該範圍的中點，調整後的 EBITDA 為 6,400 萬美元至 6,900 萬美元之間。使用該範圍的中點，這意味著利潤率比 2023 年第一季提高了約 250 個基點，調整後的每股收益在 0.52 美元至 0.57 美元之間。

As we enter a new chapter at Envestnet, we have three areas of focus. First, our clients. Our clients is our compass, and our commitment is unwavering. Second, we are committed to a growth algorithm for delivering more value to those clients and Envestnet.

當我們進入 Envestnet 的新篇章時，我們將專注於三個領域。首先，我們的客戶。客戶是我們的指南針，我們的承諾堅定不移。其次，我們致力於開發一種成長演算法，為這些客戶和 Envestnet 提供更多價值。

And finally, operating leverage where we can optimally balanced revenue and profitability, supporting execution excellence with scale. so when we grow, we will generate compounding free cash flow per share, which can be utilized to drive even greater shareholder value.

最後，我們可以透過營運槓桿來實現收入和獲利能力的最佳平衡，從而支持規模化的卓越執行。因此，當我們成長時，我們將產生複合的每股自由現金流，這可以用來推動更大的股東價值。

I'd now like to turn the call back to Bill for closing remarks.

現在我想將電話轉回給比爾，讓其結束語。

Thank you, Josh. The decisions that we've made, the work we have done over the last year, to expand and connect the ecosystem to align the organization, has put Envestnet in a very strong position.

謝謝你，喬許。我們所做的決定，我們去年所做的工作，為了擴展和連接生態系統以協調組織，使 Envestnet 處於非常有利的地位。

We sit at the center of the wealth industry, creating unique opportunities for our clients, our partners, and for our company to drive value and to grow. The bedrock of that position is the client relationships that we have. These are tenured. These are aligned, and they have very deep relationships.

我們位於財富產業的中心，為我們的客戶、合作夥伴以及我們的公司創造獨特的機會來推動價值和發展。該職位的基石是我們擁有的客戶關係。這些都是終身製的。它們是一致的，並且有著非常深厚的關係。

This is because Envestnet is built around our clients' needs, to drive the growth and productivity of advisers by providing the leading wealth platform in the industry. It creates competitive advantage through connected technology, data, and solutions.

這是因為 Envestnet 是圍繞客戶的需求而建構的，透過提供業界領先的財富平台來推動顧問的成長和生產力。它透過互聯技術、數據和解決方案創造競爭優勢。

As we deliver, like we have for the industry, it enhances the strategic and net economic profile of the company by increasing revenue growth, operating leverage, and improving the free cash flow conversion.

當我們交付時，就像我們為產業所做的那樣，它透過增加收入成長、營運槓桿和改善自由現金流轉換來增強公司的策略和淨經濟狀況。

I'm incredibly thankful to all those who have been partners and my friends over this incredible journey that has been the history of Envestnet. Thank you to our clients who have supported us and have grown with us.

我非常感謝所有在 Envestnet 歷史上這段令人難以置信的旅程中成為我的合作夥伴和朋友的人。感謝支持我們並與我們共同成長的客戶。

To our partners who strengthen the ecosystem, to investors who have had long-term conviction in us, and particularly to my colleagues at Envestnet. The thousands who have done such extraordinary work made such a profound impact on our industry. And I will say this -- such a profound impact on me. It has meant so much, and I have nothing but gratitude and immense pride.

感謝我們加強生態系統的合作夥伴，感謝長期對我們有信心的投資者，特別是我在 Envestnet 的同事。成千上萬的人做出瞭如此非凡的工作，對我們的行業產生瞭如此深遠的影響。我要說的是——這對我產生瞭如此深遠的影響。這意義重大，我只有感激和巨大的自豪。

A 25 year journey -- how can an idea and effort become something so substantial? It has been the blessing of my professional life. IT has been an extraordinary ride, and I am incredibly grateful. I'll now turn it over to Josh and Tom and our operator, Camilla, for the Q&A session. Thank you very much.

25年的歷程－一個想法和努力如何能變得如此重要？這是我職業生涯的祝福。IT 是一次非凡的旅程，我非常感激。現在我將把它交給喬什和湯姆以及我們的接線員卡米拉進行問答環節。非常感謝。

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員說明）

Michael Cho, JPMorgan.

邁克爾曹，摩根大通。

Hi, good afternoon, guys. Thanks for taking my question. Bill, first, it's been a pleasure interacting with you. I've always appreciated your insights. It's just a big picture question for you.

嗨，大家下午好。感謝您提出我的問題。比爾，首先，很高興與您互動。我一直很欣賞你的見解。這對你來說只是一個大問題。

Just a big picture question for you on your final earnings call here. As you look at your own transition, as you mentioned, after 25 years with Envestnet, and the role that's been implemented for investment ahead, I mean, what do you think the next leadership -- the next CEO at Envestnet -- could be of most value and most impactful for the company in the years ahead?

只是在最後一次財報電話會議上向您提出一個重要問題。正如您所提到的，在與Envestnet 合作25 年後，您審視自己的轉型，以及為未來投資所扮演的角色，我的意思是，您認為下一任領導層（Envestnet 的下一任首席執行官）可能會是什麼？

Thank you, Michael. And just appreciate your coverage and your support over the years very much. You know, I think, Michael, my perspective is that we've built such an extraordinary position in the market, and as the most flexible scaled operating environment tied to now a broad network of solutions, the company has invested to become in this position to deliver on the holistic advice model.

謝謝你，麥可。非常感謝您多年來的報道和支持。你知道，邁克爾，我的觀點是，我們已經在市場上建立瞭如此非凡的地位，並且作為與現在廣泛的解決方案網絡聯繫在一起的最靈活的規模化運營環境，公司已經進行了投資，以達到這一地位提供整體建議模型。

And so when I thought about my transition, I really thought about a transition point in time. And as on the heels of the investment cycle, this became a pretty clear moment as we flip the page into into the next year.

因此，當我考慮我的轉變時，我真的想到了一個轉變時間點。就像投資週期之後一樣，當我們翻到明年時，這成為一個非常清晰的時刻。

And so I think what we have ahead of us is an incredibly well-positioned company that has a very strong and deep and tenured client base, with the solutions and the capabilities that we need to be successful. It's all about execution from here.

因此，我認為我們面前的是一家定位非常有利的公司，擁有非常強大、深厚和長期的客戶群，擁有我們成功所需的解決方案和能力。一切都與執行有關。

Great. Thank you. And just a follow-up for Josh and Tom, I think on the '24 guide, I think I heard mid-singles to high-singles on the wealth solutions in terms of revenue growth.

偉大的。謝謝。只是喬許和湯姆的後續行動，我想在'24指南中，我想我聽到了中單到高單打關於收入增長方面的財富解決方案。

Can you just talk through some underlying assumptions that you're embedding in there in terms of maybe [slopes and C rate trends], I think it popped through some puts and takes. I was hoping you could flesh some of that out in the context of full year expectations? Thank you.

您能否談談您在其中嵌入的一些基本假設（斜率和 C 率趨勢），我認為它是透過一些看跌期權和看跌期權而出現的。我希望你能在全年預期的背景下充實其中的一些內容？謝謝。

Yes, thank you, Michael. This is Tom. I think the fee rate, as I said in my comments, the gross fee rate has been between 9.5 and 10.5, and it's been relatively stable in that range, and we think that will persist through 2024.

是的，謝謝你，麥可。這是湯姆。我認為費用率，正如我在評論中所說，總費用率一直在 9.5 到 10.5 之間，並且在這個範圍內相對穩定，我們認為這種情況將持續到 2024 年。

And then, you know from here, it's really our flows -- expect particularly our AUM flows, we did about $30 billion in AUM flows in 2023 -- we think AUM is gaining traction and those growth rates will persist and they'll build delivered on a much higher average fee rate.

然後，你從這裡知道，這實際上是我們的流量- 特別是我們的AUM 流量，我們在2023 年的AUM 流量約為300 億美元- 我們認為AUM 正在獲得牽引力，這些增長率將持續存在，並且將實現交付平均費率要高得多。

And then our AUA flows, we did about $28 billion of AUA flows last year. We think that we've got some good momentum there as well. That will be impacted by one-off conversions, or M&A activity as the year progresses.

然後是我們的 AUA 流量，去年我們的 AUA 流量約為 280 億美元。我們認為我們在那裡也有一些良好的勢頭。隨著時間的推移，這將受到一次性轉換或併購活動的影響。

But the overall kind of underlying health at the individual firm level, or at the per account level, our gross flows are very, very persistent. So that will help drive that growth. And then you look at all the other, you know, cross-selling -- our solutions -- that continues. We've got a lot of good progress with REAs taking up managed account solutions.

但從個體公司層級或每個帳戶層面的整體基本健康狀況來看，我們的總流量非常非常持久。因此，這將有助於推動這種成長。然後你看看所有其他的，你知道的，交叉銷售——我們的解決方案——還在繼續。我們在 REA 採納管理帳戶解決方案方面取得了很大進展。

We've got continued growth with our MoneyGuide planning capabilities. We're cross-selling analytics and insights to REAs, so that will start to come through the wealth -- the growth rate next year. The retirement progress that I mentioned, and the partnership with MPOWER, that's going to start to kick in as we scale up those efforts.

我們的 MoneyGuide 規劃能力持續成長。我們正在交叉銷售 REA 的分析和見解，因此這將開始透過財富——明年的成長率來實現。我提到的退休進展以及與 MPOWER 的合作夥伴關係將隨著我們加強這些努力而開始發揮作用。

And so it's really, you know, continued progress across the client base, strong AUM flows up later in the year. You're going to see us get to market with our custody solution that we've been working on, and it's continued to drive the overall ecosystem that will drive that growth rate throughout the year.

所以，你知道，整個客戶群確實在持續進步，今年稍後資產管理規模將強勁成長。您將看到我們將我們一直致力於的託管解決方案推向市場，並且它繼續推動整個生態系統的發展，從而推動全年的成長率。

Great. Thanks, Tom.

偉大的。謝謝，湯姆。

Thank you, Michael.

謝謝你，麥可。

Devin Ryan, JMP.

德文·瑞安，JMP。

Thanks so much. Good afternoon, Bill, Josh, and Tom. And I would echo the remarks, Bill, really been a pleasure working with you, and just want to wish you the best here going forward.

非常感謝。下午好，比爾、喬許和湯姆。我也同意比爾的說法，與你合作真的很愉快，並祝你未來一切順利。

Thank you, Devin. Really appreciate you.

謝謝你，德文。真的很感謝你。

Yes, thank you. So I guess first question, just -- I appreciate the guidance and a little bit of it different structure here than we've seen. And so I guess just wanted to understand, is this, Josh, more just how you're going to be framing things moving forward? And so we're not going to have kind of a full year guide, or is that something you have maybe for the incoming CFO? Just kind of tactically how to think about that?

是的，謝謝。所以我想第一個問題是——我很欣賞這裡的指導和一些與我們所看到的不同的結構。所以我想我只是想了解，喬什，這是否只是你將如何框架未來的事情？因此，我們不會有全年指南，或者這是您為即將上任的財務長準備的東西？只是從戰術上如何思考這個問題？

And then if it's possible, just given some of the puts and takes you guys just outlined, and kind of growth commentary for 2024, is there a way to bridge to 2025? I know that's quite a ways out, but just you guys had put out obviously some growth targets and adjusted EBITDA margin targets. And so people are still curious about how you're thinking about those.

然後，如果可能的話，只要給出你們剛剛概述的一些看跌期權和看法，以及 2024 年的成長評論，有沒有辦法過渡到 2025 年？我知道這是一條很長的出路，但你們顯然已經提出了一些成長目標並調整了 EBITDA 利潤率目標。所以人們仍然好奇你是如何看待這些的。

So is it possible to kind of hit on any of that yet? And at least how you're thinking about kind of going from where we are today, to something in 2025? Thanks.

那麼有可能實現其中的任何一個嗎？至少你是如何考慮從現在的狀況到 2025 年的目標的？謝謝。

Sure, Devin, this is Josh. Happy to take that one.

當然，德文，這是喬許。很高興接受那個。

I mean, look, we believe this is more appropriate with regard to full year guidance based on the nature of our business.

我的意思是，我們認為，根據我們業務的性質，這對於全年指導更為合適。

As you know, you know Envestnet well, most of Envestnet's revenue is market driven. To go a step further, one thing we wanted to make sure that we did was for Q1 to provide guidance the same way Envestnet had historically done it. You know, same format, same pricing model-based format. But for the full year, we're providing our expected growth rate for wealth solutions premised on a flat market, and that is the mid-to high single digits growth rate.

如您所知，您很了解 Envestnet，Envestnet 的大部分收入都是市場驅動的。更進一步，我們想要確保我們所做的一件事是為第一季提供與 Envestnet 歷史上所做的相同的指導。您知道，相同的格式、相同的基於定價模型的格式。但就全年而言，我們提供的是在市場平穩的前提下財富解決方案的預期成長率，即中高個位數成長率。

With regard to the questions about 2025, a long way to go. And you know, as you know, it's difficult to speculate about the macro, particularly in an election year -- with an election in the second half of the year. But we believe our client foundation is strong.

關於2025年的問題，還有很長的路要走。如你所知，很難對宏觀經濟進行推測，特別是在選舉年——下半年將舉行選舉。但我們相信我們的客戶基礎很強大。

The flows, as Tom outlined, may be seasonal maybe episodic may have a little bit of volatility, but we believe investment is a structural grower, and we think we're incredibly well-positioned to capitalize on that.

正如湯姆所概述的那樣，資金流動可能是季節性的，也可能是偶發性的，可能會有一點波動，但我們相信投資是結構性增長的動力，而且我們認為我們處於非常有利的位置來利用這一點。

Yes, I would just add Devin, you look at the progress we've made over the past couple of years from a margin progression perspective. We've gone from, you know, 17%, to 20%, to 23% in Q4, that did have some one-time benefits, but it's definitely a lot higher than the 20%.

是的，我想補充一下德文，你從利潤成長的角度來看我們過去幾年的進展。你知道，我們在第四季從 17% 上升到 20%，再到 23%，這確實帶來了一些一次性的好處，但肯定比 20% 高很多。

And we're delivering more and more operating leverage as we grow, and we think the margins will continue to expand, you know, and it will lead into more free cash flow as Josh outlined.

隨著我們的發展，我們正在提供越來越多的營運槓桿，我們認為利潤率將繼續擴大，你知道，這將帶來更多的自由現金流，正如喬許所概述的那樣。

So I think we've got -- we made a ton of progress. We brought the company together. We've integrated the firm, and the client feedback is really positive from all that work. And I would expect our margins to continue to expand from here.

所以我認為我們已經取得了很大的進展。我們將公司整合在一起。我們已經整合了公司，客戶對所有這些工作的回饋非常積極。我預計我們的利潤率將繼續擴大。

And maybe one just to just to be super, super clear on the point, Devin, to answer your question. But as Tom mentioned, we're continuing to make progress on our margin expansion, including our EBITDA margins. Q4 was a strong free cash flow result.

也許只是為了非常非常清楚地回答你的問題，德文。但正如湯姆所提到的，我們在利潤率擴張方面繼續取得進展，包括我們的 EBITDA 利潤率。第四季的自由現金流結果強勁。

And I don't know if we would -- I would not expect quite that level to continue in Q1 given some of the seasonality, but the adjusted EBITDA targets, that's a milestone on a journey to durable and robust free cash flow generation. Not a destination, not an ultimate goal. We intend to continue to grow our margins. And we believe what we've done in 2023 has demonstrated our ability to do that Got it.

我不知道我們是否會——考慮到一些季節性因素，我預計第一季不會繼續保持這樣的水平，但調整後的EBITDA 目標，這是實現持久和強勁的自由現金流生成過程中的一個里程碑。不是目的地，也不是最終目標。我們打算繼續提高利潤率。我們相信，我們在 2023 年所做的一切已經證明了我們有能力做到這一點，並且明白了。

Got it. Understood. Appreciate all that color. Just as a follow-up on flows, clearly, you guys are outperforming kind of broader industry, as you mentioned, I think four times kind of -- peer TAMPs. But at the same time, there's some environmental headwinds.

知道了。明白了。欣賞所有這些顏色。正如您所提到的，作為流量的後續行動，顯然，你們的表現優於更廣泛的行業，我認為是同行 TAMP 的四倍。但同時，也存在一些環境阻力。

And so I'd love to just maybe think about, if possible, if there's a way to quantify the effect of whether it's M&A in the dynamic you mentioned, Tom, or just interest rates, and to the extent interest rates start to move lower, how much of a tailwind that could create?

因此，如果可能的話，我想考慮是否有一種方法可以量化併購對你提到的動態的影響，湯姆，或者只是利率，以及利率開始下降的程度，可以創造多大的順風？

Just trying to think about it, because there's the core piece of investment. There's a lot of positive momentum and irons in the fire on new growth, at the same time, environmental headwinds. So I'm just trying to think about the effect of those environmental headwinds that hopefully do reverse here at some point?

只是想一下，因為這是投資的核心部分。新的成長充滿了積極的動力和動力，同時也面臨環境阻力。所以我只是想思考那些希望在某個時候逆轉的環境逆風的影響？

Yes. I think to start with the cash point, you know that has been a headwind over the past couple of years for us with higher rates. As rates come down and as more money moves back into the market equity fixed income products, we realize a much higher fee rate on those assets. And a lot of those assets don't even sit on the Envestnet platform. They may be off platform today and will come on, you know, as rates come down.

是的。我認為首先從現金點開始，你知道在過去幾年裡，這對我們利率較高的我們來說是一個阻力。隨著利率下降以及更多資金回流到市場股票固定收益產品，我們意識到這些資產的費率要高得多。其中許多資產甚至都不位於 Envestnet 平台上。他們今天可能會離開平台，你知道，隨著費率下降，它們將會出現。

So I think it from here, it can only help would be our perspective on that as they move into more active products. So I think that will be a tailwind at some point as we go forward.

因此，我認為從這裡開始，當他們轉向更活躍的產品時，這只會有助於我們對此的看法。所以我認為，在我們前進的某個時刻，這將成為我們前進的順風車。

And then I think the headwind around M&A, we historically -- this has been an advantage because our footprint is so large. We have such great relationships with our aggregators, with enterprise clients, and we've been a net beneficiary.

然後我認為圍繞併購的逆風，從歷史上看，這是一個優勢，因為我們的足跡如此之大。我們與聚合商、企業客戶有著良好的關係，我們一直是淨受益者。

It just so happens right now, we've got some deal activity that's away from us, and that will affect our growth rate. But let me be clear, that M&A activity, these clients that were affected were very, very happy clients. They were doing a lot with us because we're really well positioned.

現在就是這樣，我們有一些交易活動遠離我們，這將影響我們的成長率。但讓我明確一點，在併購活動中，這些受影響的顧客都是非常非常滿意的顧客。他們與我們一起做了很多事情，因為我們處於有利位置。

The feedback from our clients has really never been better, and it's all off the back of the work we've done over the past couple of years. So the M&A activity -- the recent activity will be dilutive to that growth rate. But the medium term prospects for the business are very, very positive from our perspective.

我們客戶的回饋確實從未如此好過，這一切都源自於我們過去幾年所做的工作。因此，併購活動－最近的活動將稀釋該成長率。但從我們的角度來看，該業務的中期前景非常非常樂觀。

Okay. Thanks so much.

好的。非常感謝。

Surinder Thind, Jefferies.

蘇林德·辛德，傑弗里斯。

Thank you. Like everyone else, Bill, I definitely echo that it's been a pleasure working with you. So wishing you all the best here.

謝謝。比爾，和其他人一樣，我也很高興與您合作。在此祝您一切順利。

Thank you. Surinder. Thank you very much.

謝謝。蘇林德。非常感謝。

From my perspective, I'd like to just take a step back -- and big picture here. One of the I think the pillars that you guys talked about was just kind of the growth algorithm. Any just kind of color on how you're thinking about the the team is thinking about the growth algorithm on a go-forward basis?

從我的角度來看，我想退後一步，展望一下大局。我認為你們談論的支柱之一就是成長演算法。您對團隊如何考慮未來的成長演算法有什麼不同的看法嗎？

Is this driving more flows into the wealth solutions business? Is it more about the first party managed assets and trying to get the fee rate up? How should we think about the various drivers just from a big picture perspective?

這是否會推動更多資金流入財富解決方案業務？更多的是關於第一方管理資產並試圖提高費率嗎？我們該如何從大局的角度來考慮各種驅動因素​​？

Sure. Hey, Surinder, it's Josh. I mean, the growth algorithm -- it's fairly simple. After all, Envestnet, as you know, is a relatively simple business.

當然。嘿，蘇林德，我是喬許。我的意思是，成長演算法——相當簡單。畢竟，如您所知，Envestnet 是一項相對簡單的業務。

At the foundation, our wealth business is going to benefit from the combination of market appreciation and secular flows into the independent space. On top of that, our growth is built on our industry leadership. As Tom talked about, clients want to go deeper, with a fewer number of trusted partners. That's a trend that should benefit us well, as the industry leader.

在此基礎上，我們的財富業務將受益於市場升值和長期流入獨立領域的結合。最重要的是，我們的成長建立在我們的行業領導地位之上。正如湯姆所說，客戶希望與更少數量的值得信賴的合作夥伴進行更深入的合作。身為產業領導者，這一趨勢應該會讓我們受益匪淺。

And the way in which we capitalize on this growth opportunity through both of our pricing constructs, our asset-based and subscription-based pricing models, helps fit the needs of the industry and provide compounded growth for Envestnet

我們透過定價結構、基於資產和基於訂閱的定價模型來利用這一成長機會，有助於滿足行業需求並為 Envestnet 提供複合成長

Let me answer, and I'll add a couple of examples. So you look at what we're doing with REAs often, our Tamarac platform, which is trading, reporting, CRM. We've invested a lot to connect that platform to our managed account infrastructure. So really cross-selling, you know, our fiduciary solutions, and that is really starting to get real traction.

讓我回答一下，然後我會添加幾個例子。所以你經常看看我們用 REA 做的事情，我們的 Tamarac 平台，它是交易、報告、CRM。我們投入了大量資金將平台連接到我們的管理帳戶基礎設施。所以，真正的交叉銷售，你知道，我們的信託解決方案，這確實開始受到真正的關注。

Then as the REA, as we establish that fiduciary relationship, they then start to buy tax overlay services, direct indexing services, and then we're going and now we're bundling and cross-selling data and analytics. And when they start to use those data and analytics, especially through our unique client portal that we're rolling out, that will lead to further adoption of those solutions.

然後，作為 REA，當我們建立信託關係時，他們開始購買稅收疊加服務、直接索引服務，然後我們現在正在捆綁和交叉銷售數據和分析。當他們開始使用這些數據和分析時，特別是透過我們正在推出的獨特的客戶門戶，這將導致這些解決方案的進一步採用。

So the weight of the evidence there would be more AUM, especially AUM that requires personalization. So think of high net worth solutions, direct indexing, tax overlay. And then what we're doing is partnering more and more with the biggest asset management partners where we're going to integrate their products in a unique way to deliver that personalization, and then their sales teams -- their distribution efforts, their marketing efforts -- will lean in to help drive overall growth of the platform.

因此，證據的權重會有更多的 AUM，尤其是需要個人化的 AUM。因此，請考慮高淨值解決方案、直接索引、稅收疊加。然後我們正在做的是越來越多地與最大的資產管理合作夥伴合作，我們將以獨特的方式集成他們的產品以提供個性化，然後是他們的銷售團隊- 他們的分銷工作，他們的營銷工作－將傾力幫助推動平台的整體成長。

So cross-sell AUM -- bundle it, expand the relationship, and then more personalization. The products where we have personalization are really growing at a very, very high growth rate. And we think that will persist for a long time period.

因此，交叉銷售 AUM——將其捆綁，擴大關係，然後實現更多個性化。我們個人化的產品確實以非常非常高的成長率成長。我們認為這種情況將持續很長一段時間。

Got it. And then I guess just as a point of clarification there. So, as you think about what you're capable of and positioning, is it that you want to grow a certain basis points above the market, or how are you guys assessing I guess that was kind of what I was trying to get at in terms of as you think about what you're trying to do and what you're trying to accomplish here?

知道了。然後我想只是作為澄清一點。所以，當你思考你的能力和定位時，你是否想要在市場之上增長一定的基點，或者你們如何評估我想這就是我想要達到的目標當你思考你想要做什麼以及你想要在這裡完成什麼時？

Sure. So Surinder, I would say double digit growth is our goal, and that comes from a combination of market growth plus simply delivering an integrated firm. Delivering an integrated firm -- that's not possible for us to show up as Envestnet and get the benefit of clients just wanting to go deeper, do more with us -- clients that we already have.

當然。因此，蘇林德，我想說兩位數的成長是我們的目標，這來自於市場成長加上簡單地建立一家綜合性公司的結合。打造一家綜合公司——我們不可能以 Envestnet 的身份出現，並讓那些只想更深入、與我們一起做更多事情的客戶——我們已經擁有的客戶——受益。

We don't have to go out and win new clients that we will continue to strive to. But we just have to go deeper with those clients that we have, monetize and serve our advisors more effectively and more capably. So for us, it's grow with the market and then add on top of that.

我們不必出去贏得我們將繼續努力的新客戶。但我們只需要更深入地與我們擁有的客戶合作，實現貨幣化，並更有效、更有能力地為我們的顧問提供服務。所以對我們來說，它會隨著市場的成長而成長，然後再添加到市場之上。

Got it. That's helpful. And then just hopefully as a quick follow up on just the outlook for the data and analytics business over the next year?

知道了。這很有幫助。然後希望作為明年數據和分析業務前景的快速跟進？

Sure. So I think look for data and analytics -- look, a couple a couple of thoughts. The first is, as you know, that business had a lot of challenges in 2023. A combination of the banking turmoil in March of 2023. It's also had some idiosyncratic issues with regard to a data loss, which we've now restored.

當然。所以我認為尋找數據和分析——看，一些想法。首先，如您所知，2023 年企業面臨許多挑戰。2023 年 3 月銀行業動盪的綜合影響。它還存在一些與資料遺失有關的特殊問題，我們現在已經恢復了。

We believe that there's a tremendous amount of -- we believe some of these initiatives that we put in place are going to bear fruit, and actually the Q4 sequential results are early evidence of that, but our plan is to keep you updated on how those initiatives are going to play out over the course of the year for sure.

我們相信，我們採取的一些舉措將會取得成果，實際上第四季度的連續結果就是這一點的早期證據，但我們的計劃是讓您隨時了解這些舉措的最新情況各項舉措肯定會在今年內發揮作用。

But Surinder, if you look at our Q3 to Q4 sequential revenue growth was up in the data business. And we think we're very focused on stabilizing that revenue base, so you're up Q3 to Q4. and we think it will be stable as we look out at Q1.

但是 Surinder，如果你看看我們第三季到第四季數據業務的連續營收成長。我們認為我們非常注重穩定收入基礎，因此第三季到第四季的業績有所上升。我們認為，從第一季來看，它會保持穩定。

And then we've recovered the dataset, you know, so that issue, we're in a much better place. And then we're launching new products, you know, to drive medium term growth. But I think that the sequential revenue growth, and the stable revenue base will be important milestones from our perspective.

然後我們恢復了資料集，你知道，所以在這個問題上，我們處於一個更好的位置。然後我們將推出新產品，以推動中期成長。但我認為，從我們的角度來看，收入的連續成長和穩定的收入基礎將是重要的里程碑。

Thank you. I appreciate all your --

謝謝。我感謝你的一切--

I think, Surinder -- sorry, Surinder -- the other thing I would add would be we've done a lot of work to transfer the wealth data capabilities into our wealth segment, and what that means is from an organization, it's fully integrated and from a client, it's fully integrated.

我想，Surinder——對不起，Surinder——我要補充的另一件事是，我們已經做了很多工作，將財富數據能力轉移到我們的財富領域，這意味著來自一個組織，它是完全集成的從客戶端來看，它是完全整合的。

So we're now delivering data and analytics where our clients want to receive them, where they want it, where they're doing business. And the response from our client base is really, really positive. I think we're delivering about 25 million insights off the back of 80 or 90 use cases, and the reception from our client base from that fully integrated data and insight capability to our clients has been really positive.

因此，我們現在在客戶希望接收資料和分析的地方、他們想要的地方、他們開展業務的地方提供資料和分析。我們客戶群的反應非常非常正面。我認為我們在 80 或 90 個用例的基礎上提供了大約 2500 萬個見解，並且我們的客戶群對完全整合的數據和見解能力的反應非常積極。

That's good to hear. Thank you, guys.

聽起來還不錯。感謝你們。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Pete Hackmann, D.A. Davidson.

皮特·哈克曼，D.A.戴維森。

Hey, thanks for taking my question. I echo all the other analyst comments to you, Bill. We're going to miss working with you, and I appreciated all your class and professionalism over the years.

嘿，謝謝你回答我的問題。比爾，我同意你所有其他分析師的評論。我們會懷念與您合作的時光，我很感謝您多年來的出色表現和專業。

Thank you. Thank you, Pete. Back at you. Really really enjoy the relationship very much. Thank you.

謝謝。謝謝你，皮特。回到你身邊。真的非常非常享受這段關係。謝謝。

Great, great. Well, I think, you know, moving to the results and the outlook. I think all of the analysts are struggling a bit. The call format changed a little bit. Clearly, we're not giving as much guidance. I think that that the knee-jerk reaction can sometimes be that there is no visibility in data and analytics.

很棒很棒。嗯，我想，你知道，轉向結果和前景。我認為所有分析師都有點掙扎。通話格式略有變化。顯然，我們沒有提供那麼多指導。我認為，有時下意識的反應可能是數據和分析不可見。

And I don't want to walk away thinking that if that's not the case, I appreciate the adjusted numbers -- down 7% year-over-year, up 3% sequentially -- but can you flesh that out a bit more in terms of how long do you think it's going to take before the turn, and at that turn, can that business resume growing and resume margin expansion? Or is there something fundamentally broken there?

我不想離開時想，如果情況並非如此，我很欣賞調整後的數字——同比下降 7%，環比增長 3%——但是你能用更具體的方式來充實這一點嗎？多久？或者那裡有什麼根本性的問題嗎？

No, Pete, I would just kind of go back to the sequential revenue growth is up Q3 to Q4. We think we have stabilized the revenue base. Recovering the dataset, which is a big deal, that we worked hard on throughout last year. That was a big driver of the decrease, especially in our research business.

不，皮特，我想回顧一下第三季到第四季的連續營收成長。我們認為我們已經穩定了收入基礎。恢復資料集是一件大事，我們去年一直在努力工作。這是下降的一個重要推動因素，尤其是在我們的研究業務中。

We had issues in the banking channel. We had issues with fintech clients. So last year was a tough year with revenue down, you know, 14%, 15%. We believe it's now in a stable situation. There's been a lot of work to develop and create new products, and now that you have a more robust fulsome dataset, we're better positioned to do it, but it's not going to happen overnight either.

我們在銀行通路遇到了問題。我們與金融科技客戶之間存在問題。所以去年是艱難的一年，收入下降了 14%、15%。我們相信現在局勢穩定。開發和創建新產品已經做了很多工作，現在有了更強大、更豐富的數據集，我們更有能力做到這一點，但這也不會在一夜之間發生。

So we are investing, and, you know, over the coming quarters -- then 12, 18 plus months -- we think the segment will be much better positioned from there. But it is off the back of restored dataset, stabilized revenue base, and you're adding more efficient -- we've really reduced the cost base as well.

所以我們正在投資，而且，你知道，在接下來的幾個季度——然後是 12、18 個多月——我們認為從那時起，該細分市場的定位將會好得多。但這是在恢復資料集、穩定收入基礎的基礎上實現的，而且您正在增加效率 - 我們也確實降低了成本基礎。

So a more efficient yield, better margin from there. But it's stabilized and then investing in new products, and then medium term, you know, back to growth.

因此，產量更高效，利潤率更高。但它已經穩定下來，然後投資新產品，然後中期，你知道，恢復成長。

Okay. I appreciate that. And then just back to Custody. I think I've been paying attention very closely, and I know that that's been delayed a bit, but you made a comment early on it and I just wanted to see that-- make sure that that's still on the table, and see if there's been any further changes in the dates to rollout or the sizing of the opportunity?

好的。我很感激。然後回到託管。我想我一直在密切關注，我知道這已經被推遲了一點，但你很早就對此發表了評論，我只是想看看——確保它仍然在桌面上，看看是否可以推出日期或機會規模有任何進一步的變化嗎？

Yes. So it's extremely strategic. It's very important. It's a big priority to deliver. As we've as we've announced, we have partnered with FNZ. There's been a ton of work over a year plus. They are doing the work to localize an international platform, and to localize the platform in the U.S. market is it takes time. It's complicated.

是的。所以這是非常具有戰略意義的。這很重要。交付是重中之重。正如我們所宣布的，我們已與 FNZ 合作。一年多來，工作量很大。他們正在做國際化平台在地化的工作，在美國市場在地化平台是需要時間的。情況很複雜。

They've hit some pretty important milestones to date. They've converted a legacy platform onto their technology. They're standing up their operations; their trading efforts; and then they're getting the required regulatory framework in place, and all that just takes time to put in place as a new entrant into this market.

迄今為止，他們已經達到了一些非常重要的里程碑。他們已將遺留平台轉換為他們的技術。他們正在堅持自己的行動；他們的交易努力；然後他們就會制定所需的監管框架，而作為這個市場的新進者，所有這些都需要時間才能落實到位。

The technology is fantastic, and we've been working with them to integrate that technology throughout our ecosystem. And that is really lining up to be in place in the next couple of quarters and then we'll be in market at some point this year. But it's very, very important -- very strategic -- that Custody solution.

這項技術非常棒，我們一直在與他們合作，將該技術整合到我們的整個生態系統中。這確實會在接下來的幾個季度內落實到位，然後我們將在今年的某個時候進入市場。但託管解決方案非常非常重要，非常具有策略意義。

And then just to add to that, just if I could, just depending on the speed of adoption, the speed of the rollout, you should think about FNZ as representing upside, both on the top -- to the top line guidance that we gave. Our expectations is this is a long term bet.

然後補充一點，如果我可以的話，根據採用的速度、推出的速度，你應該認為 FNZ 代表著上行空間，無論是在頂部還是在我們給出的頂線指導上。我們的期望是這是一個長期的賭注。

Okay. Great.

好的。偉大的。

You did hear [is] really standing up the capability and getting to market, and then you'll start to realize the benefits beyond this year.

您確實聽說過[正在]真正支持該功能並進入市場，然後您將開始意識到今年之後的好處。

Thanks.

謝謝。

Thank you.

謝謝。

Thank you. There are no further questions at this time. And with that, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。目前沒有其他問題。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。