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Mar 31, 2024
SEI Q1 2024 Earnings Report
SEI reported strong topline growth and margin expansion in Q1 2024, driven by strategic focus on increasing sales and profitability.
Key Takeaways
SEI Investments Company announced financial results for the first quarter of 2024, with diluted earnings per share of $0.99 compared to $0.79 in the first quarter of 2023. The company experienced strong topline growth and margin expansion, driven by sales and implementation activity in technology and investment processing businesses.
Revenues from assets under management, administration, and distribution fees increased due to higher assets under administration from new and existing alternative investment clients in the Investment Managers segment.
First-quarter revenues included $9.6 million in fees from the SEI Integrated Cash Program of the Investment Advisors segment, launched in December 2023.
Average assets under management in equity and fixed income programs, excluding LSV, increased by $8.1 billion to $175.9 billion during the first quarter of 2024.
Net sales events in the Private Banks and Investment Managers segments during the first quarter of 2024 were $24.5 million and are expected to generate net annualized recurring revenues of approximately $20.7 million when contract values are completely realized.
SEI
SEI
SEI Revenue by Segment
Revenue by Segment
Investment Managers Revenue
CapyFin.comPrivate Banks Revenue
CapyFin.comInvestment Advisors Revenue
CapyFin.comInstitutional Investors Revenue
CapyFin.comInvestments in New Businesses Revenue
CapyFin.com Forward Guidance
This release contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission. Our forward-looking statements include our current expectations as to: •the momentum generated by our focus on increasing sales and profitability and the benefits we may realize from such momentum; •the degree to which we are positioned to capitalize on opportunities in the markets we serve; •when and if we will generate net annualized recurring revenues from sales events that occurred during the quarter, as well as the amount of any such revenue; and •the degree to which our financial position, set of capabilities, and ability to connect the financial services ecosystem enable us to deliver comprehensive solutions to drive growth and deliver long-term value for our clients and shareholders.
Positive Outlook
- momentum generated by our focus on increasing sales and profitability and the benefits we may realize from such momentum
- the degree to which we are positioned to capitalize on opportunities in the markets we serve
- when and if we will generate net annualized recurring revenues from sales events that occurred during the quarter, as well as the amount of any such revenue
- the degree to which our financial position, set of capabilities, and ability to connect the financial services ecosystem enable us to deliver comprehensive solutions to drive growth
- deliver long-term value for our clients and shareholders
Challenges Ahead
- You should not place undue reliance on our forward-looking statements, as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change.
- Although we believe the assumptions upon which we base our forward-looking statements are reasonable, they could be inaccurate.
- Some of the risks and important factors that could cause actual results to differ from those described in our forward-looking statements can be found in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended Dec. 31, 2023, filed with the Securities and Exchange Commission.
- Our ability to execute against our strategic priorities.
- The headwinds our businesses face and our ability to respond to these headwinds
Revenue & Expenses
Visualization of income flow from segment revenue to net income