In discussing the previous quarter and the difficult year that was 2022, Envestnet CEO Bill Crager framed financial results presented Thursday night as a win by looking back to how the company marched into 2021.
The leader of the Berwyn, Pennsylvania-based tech firm and turnkey program said two years ago, the company took a deliberate stance by announcing a strategy to invest in the potential of a connected ecosystem, knowing they'd take a hit in the short term but understanding that the long game was more important.
"We are here to tell you that through an exceedingly painful year in our industry marked by stunning inflation, double-digit losses in both equity and fixed income markets and a dramatic shift away from an era of low capital cost, the soundness of Envestnet's vision is paying off," Crager said in a Feb. 23 earnings call. "We are turning the corner on both margin and revenue growth and affirming the path to our long-term goals. We have been clear and have delivered on our stated intentions. Those are to maximize the investment plan we outlined in February of 2021; creating acceleration of our organic revenue and modernizing our platform for greater operating leverage; driving greater engagement and usage of the platform by our clients; taking advantage of new processes and technologies to enable greater expense discipline; and reestablishing our margin expansion in 2023 and reaffirming our commitment to 25% adjusted EBITDA margins in 2025."
Positivity and per-share earnings that once again beat Wall Street estimates aside, the firm's financials were a mixed bag of year-over-year losses and signs that the company's long game is still being played.
To see the key takeaways from the company's fourth-quarter and year-end results, scroll down our slideshow. For previous coverage of Envestnet's earnings, click here.