Envestnet Inc (ENV)

Operating profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	-204,481	-52,302	-53,949	-70,360	-66,024	-40,830	-25,649	17,005	40,541	53,275	50,796	43,873	19,441	21,096	9,312	-14,953	-16,073	-17,619	-14,096	6,166
Revenue (ttm)	US$ in thousands	1,220,482	1,203,270	1,195,211	1,204,198	1,228,321	1,249,802	1,246,160	1,216,033	1,170,413	1,115,334	1,059,684	1,001,841	967,838	946,654	929,058	926,833	882,732	865,270	842,861	819,532
Operating profit margin		-16.75%	-4.35%	-4.51%	-5.84%	-5.38%	-3.27%	-2.06%	1.40%	3.46%	4.78%	4.79%	4.38%	2.01%	2.23%	1.00%	-1.61%	-1.82%	-2.04%	-1.67%	0.75%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-204,481K ÷ $1,220,482K
= -16.75%

The operating profit margin of Envestnet Inc. has been fluctuating over the past eight quarters. In Q1 2022, the company recorded a positive operating profit margin of 1.38%, indicating that it generated profit from its core operations. However, the margin turned negative in the subsequent quarters, reaching its lowest point in Q1 2023 at -5.78%.

The company experienced a slight improvement in Q4 2022 with an operating profit margin of -5.33%, which was better than the preceding quarters but still in the negative territory. In the most recent quarter, Q4 2023, the operating profit margin further improved to -1.02%, suggesting a narrowing of losses.

Overall, the trend in Envestnet's operating profit margin shows volatility and inconsistency, with the company struggling to achieve positive profitability from its primary business activities in recent quarters. It would be essential for the company to focus on cost control and revenue generation strategies to improve its operating profit margin in the future.