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Sep 30, 2021
SEI Q3 2021 Earnings Report
Reported positive financial results driven by market performance and strategic investments.
Key Takeaways
SEI Investments Company reported a strong third quarter with diluted earnings per share of $0.97, compared to $0.75 in the third quarter of 2020. Revenues increased by 14% to $485.322 million, and net income increased by 24% to $138.045 million. The company's performance reflects positive markets, continued sales momentum, and strategic investments in its business and workforce.
Revenues increased due to higher assets under management and administration, driven by market appreciation and positive cash flows.
Average assets under administration increased by $116.9 billion, or 16%, to $855.7 billion.
Average assets under management, excluding LSV, increased by $53.9 billion, or 22%, to $300.0 billion.
Net sales events in the Private Banks and Investment Managers segments are expected to generate approximately $15.1 million in net annualized recurring revenues.
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
The release contains forward-looking statements regarding revenue generation from sales events, strategic investments, and the ability to capitalize on market opportunities. These statements are based on current beliefs and expectations but are subject to risks and uncertainties.
Positive Outlook
- Revenue will be generated by sales events that occurred during the quarter and the timing of such realization
- Company will have sales momentum
- Company will invest in our business, solutions, or workforce
- Company will be able to capture the opportunities inherent in significant change
- Company will be able to expand our relationships and revenue opportunities with new and existing clients
Challenges Ahead
- Timing and success of client migrations, implementations and conversions
- Company may not be able to take advantage of increasing sales demand
- The timing of and our ability to integrate acquisition targets and the benefits we will receive from any of our acquisitions
- The degree to which M&A activity in the industries in which we compete will affect our sales
- The degree to which our technology is being adopted across both our existing client base and new clients
Revenue & Expenses
Visualization of income flow from segment revenue to net income