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Dec 31, 2020

SEI Q4 2020 Earnings Report

SEI reported steady recovery from the pandemic’s impact and executed its long-term strategy.

Key Takeaways

SEI Investments Company announced its Q4 2020 financial results, with diluted earnings per share of $0.86 compared to $0.84 in Q4 2019. The company's investments and success in adding new clients have positioned it well for future growth.

Sales events in Q4 2020 totaled approximately $8.8 million and are expected to generate net annualized recurring revenues of approximately $4.9 million.

Average assets under administration increased by $108.2 billion, or 16%, to $779.7 billion in Q4 2020.

Average assets under management, excluding LSV, increased by $21.2 billion, or 9%, to $260.4 billion in Q4 2020.

The company repurchased 1.8 million shares of its common stock for $99.1 million during the fourth quarter 2020 at an average price of $54.36 per share.

Total Revenue
$444M
Previous year: $423M
+4.8%
EPS
$0.86
Previous year: $0.84
+2.4%
Avg. Assets under Admin.
$780B
Previous year: $672B
+16.1%
Shares Repurchased
1.8M
Previous year: 1.3M
+38.5%
Gross Profit
$254M
Previous year: $238M
+6.4%
Cash and Equivalents
$785M
Previous year: $841M
-6.8%
Free Cash Flow
$80.8M
Previous year: $151M
-46.5%
Total Assets
$2.17B
Previous year: $2.15B
+0.7%

SEI

SEI

SEI Revenue by Segment

Forward Guidance

The company's forward-looking statements include expectations as to revenue generation from sales events, the rebound of business, strategic priorities, and the ability to capture growth opportunities and increase shareholder value.

Positive Outlook

  • Revenue will be generated by sales events that occurred during the quarter.
  • The business will rebound.
  • Strategic priorities will be executed.
  • Solutions position the company to capture growth opportunities.
  • Shareholder value will increase.

Challenges Ahead

  • The timing and success of client implementations and conversions may vary.
  • The ability to expand relationships and revenue opportunities with new and existing clients is uncertain.
  • The ability to leverage technologies and scale businesses may be limited.
  • The repetition of one-time and transaction-based revenues during the quarter is not guaranteed.
  • The success of strategic investments is subject to risks.

Revenue & Expenses

Visualization of income flow from segment revenue to net income