Envestnet Inc (ENV)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -225,947 | -68,092 | -71,378 | -79,498 | -73,878 | -52,492 | -36,587 | -234 | 20,963 | 29,479 | 21,000 | 10,147 | -8,511 | -6,223 | -18,687 | -42,558 | -47,675 | -46,250 | -38,473 | -15,944 |
| 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 |
| Pretax margin | -18.51% | -5.66% | -5.97% | -6.60% | -6.01% | -4.20% | -2.94% | -0.02% | 1.79% | 2.64% | 1.98% | 1.01% | -0.88% | -0.66% | -2.01% | -4.59% | -5.40% | -5.35% | -4.56% | -1.95% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-225,947K ÷ $1,220,482K
= -18.51%
Envestnet Inc.'s pretax margin has displayed variability over the past eight quarters, as evidenced by the figures provided. The margin experienced a downward trend throughout the quarters, with a significant decrease from Q1 2022 to Q4 2023, dropping from -0.14% to -18.71%. This indicates a declining profitability before accounting for taxes, revealing challenges in generating earnings relative to total revenue.
Furthermore, the pretax margin consistently remained negative in each quarter, signaling ongoing operational inefficiencies, higher costs, or potentially ineffective revenue generation strategies. The company's performance in managing expenses and optimizing revenue streams appears to be a key area needing improvement to enhance profitability.
The downward trajectory of Envestnet Inc.'s pretax margin suggests the importance of implementing strategies to address the underlying factors contributing to this unfavorable trend. Monitoring cost control measures, enhancing operational efficiency, and exploring revenue-generating opportunities would be critical in improving the company's overall financial performance in the future.
Peer comparison
Dec 31, 2023