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Dec 31, 2022

SEI Q4 2022 Earnings Report

SEI's Q4 2022 financial results were announced, revealing a decrease in revenue and net income compared to the same period last year.

Key Takeaways

SEI Investments Company reported a decrease in revenue and net income for Q4 2022. Diluted earnings per share decreased to $0.83 compared to $1.03 in Q4 2021. The company highlighted its focus on growth and efficiency improvements despite economic challenges.

Diluted earnings per share were $0.83, down from $1.03 in Q4 2021.

Revenue decreased by 9% to $456.59 million compared to $501.65 million in the same quarter last year.

Net income decreased by 23% to $112.22 million compared to $145.30 million in Q4 2021.

Average assets under administration decreased to $789.9 billion, an 11% decrease compared to $884.3 billion in Q4 2021.

Total Revenue
$457M
Previous year: $502M
-9.0%
EPS
$0.83
Previous year: $1.03
-19.4%
Effective Tax Rate
18.1%
Gross Profit
$229M
Previous year: $283M
-19.1%
Cash and Equivalents
$853M
Previous year: $825M
+3.4%
Free Cash Flow
$131M
Previous year: $139M
-5.7%
Total Assets
$2.38B
Previous year: $2.35B
+1.2%

SEI

SEI

SEI Revenue by Segment

Forward Guidance

SEI anticipates making necessary changes to execute against its strategy to drive growth, invest wisely in its future, and deliver increased value for its employees, clients, and shareholders.

Positive Outlook

  • Company will work to grow its revenue.
  • Company will improve the overall efficiency and scale of its business.
  • Company will invest wisely in its future.
  • Company will increase revenue over time from those clients to which they have granted price concessions.
  • Company will expand any of its relationships with any of its clients.

Challenges Ahead

  • There may be negative consequences for the company with respect to those of its clients that are involved in M&A activity.
  • There may be challenges regarding expense trends in any of the market segments.
  • There may be challenges regarding generating positive sales momentum.
  • There may be potential issues in the Investment Managers market segment.
  • Client deconversions and the effect of these deconversions on revenue could pose challenges.

Revenue & Expenses

Visualization of income flow from segment revenue to net income