SEI Investments Company (NASDAQ: SEIC) today announced financial results for the fourth quarter 2024. Relative to the fourth quarter 2023, EPS increased by 31%, and revenue and operating income grew by 15% and 43%, respectively, with operating margins increasing to 26%.
ConsolidatedOverview(Inthousands,except FortheThreeMonths FortheTwelveMonthsearnings per share) EndedDecember 31, Ended December 31, 2024 2023 % 2024 2023 %Revenues $557,190 $484,858 15% $2,125,151 $1,919,793 11%Operating income 145,544 101,684 43% 551,741 424,524 30%Operating margin 26% 21% 25% 26% 22% 17%Net income 155,771 120,731 29% 581,191 462,258 26%Diluted earnings per share $1.19 $0.91 31% $4.41 $3.46 27%
“Our record 2024 results reflect consistent execution against our growth strategy, particularly the progress we have driven in the last 18 months. Our net sales events in 2024 increased 58% from 2023-representing a mix across our entire organization and reinforcing the high level of market engagement for our enterprise capabilities,” said CEO Ryan Hicke.
“We are focused on maximizing our return on invested capital across our segments and solutions globally. SEI has real momentum, and our employees' commitment to delivering for our clients and embracing an enterprise-first mindset has been core to igniting that momentum. We're excited for what's ahead in 2025 and to continue delivering long-term value for our stakeholders.”
SummaryofFourth-QuarterResults byBusinessSegment(Inthousands) FortheThreeMonths FortheTwelveMonths EndedDecember31, Ended December 31,PrivateBanks: 2024 2023 % 2024 2023 %Revenues $140,142 $123,337 14% $541,414 $496,317 9%Expenses 120,414 110,656 9% 460,375 448,490 3%OperatingProfit 19,728 12,681 56% 81,039 47,827 69%OperatingMargin 14% 10% 15% 10%InvestmentAdvisors:Revenues 139,267 109,719 27% 509,408 436,298 17%Expenses 76,839 67,138 14% 282,902 259,142 9%OperatingProfit 62,428 42,581 47% 226,506 177,156 28%OperatingMargin 45% 39% 44% 41%InstitutionalInvestors:Revenues 70,812 69,794 1% 285,723 289,708 (1)%Expenses 38,315 39,118 (2)% 154,701 165,455 (6)%OperatingProfit 32,497 30,676 6% 131,022 124,253 5%OperatingMargin 46% 44% 46% 43%InvestmentManagers:Revenues 191,262 168,571 13% 728,390 645,254 13%Expenses 118,130 110,713 7% 453,085 419,196 8%OperatingProfit 73,132 57,858 26% 275,305 226,058 22%OperatingMargin 38% 34% 38% 35%InvestmentsinNewBusinesses:Revenues 15,707 13,437 17% 60,216 52,216 15%Expenses 19,296 17,826 8% 74,699 70,745 6%OperatingLoss (3,589) (4,389) (18)% (14,483) (18,529) (22)%Totals:Revenues $557,190 $484,858 15% $2,125,151 $1,919,793 11%Expenses 372,994 345,451 8% 1,425,762 1,363,028 5%CorporateOverheadExpenses 38,652 37,723 2% 147,648 132,241 12%IncomefromOperations $145,544 $101,684 43% $551,741 $424,524 30%
Fourth-QuarterBusiness Highlights:
— SEI achieved diluted EPS of $1.19, up 31% from the prior year, representing the second consecutive quarter where SEI has realized significant growth in net sales, revenue and earnings from the prior year.
— Q4 2024 diluted EPS matched Q3's near-record level despite the $0.02 impact of several items affecting comparability in the quarter, specifically:
— A $0.04 negative impact from higher incentive compensation accrued in Q4, in recognition of our employees' reigniting SEI's momentum and our strong financial performance in 2024.
— A $0.05 negative impact from the timing of stock-based compensation. Accelerating EPS growth caused an increasing number of equity awards to vest in Q4, driving the higher than normal non-cash expenditure.
— A $0.02 positive impact from FX transaction gains.
— A $0.05 positive tax impact from options exercised during the quarter as well as our year-end provision estimate.
— Net sales events during the fourth quarter 2024 were $38.2 million, bringing full-year 2024 net sales events to $127.9 million, a 58% increase vs. full-year 2023. Similar to last quarter, the drivers of net sales activity were broad-based, coming from multiple existing and new clients, both in the US and globally.
— Consolidated revenues and operating income increased by 15% and 43%, respectively, from Q4 2023, with revenue, operating profit and margins increasing for each business segment.
— Private Banks revenue growth of 14% was supported by recent sales events, increased client retention and the conversion of the existing client backlog into revenue, with operating profit growing 56% due to continued cost discipline.
— Investment Managers operating profit growth of 26% was driven by sales event growth and client cross-selling. Our Investment Managers offering continues to gain traction, most notably with private credit and global clients.
— Investment Advisors operating profit growth of 47% was largely driven by a $21.1 million contribution from the integrated cash program in the quarter.
— Modest Institutional Investors revenue and operating profit growth reflects improvement vs. the first half of 2024, with the business working to offset the negative impact of corporate defined benefit plan terminations.
— Absent the negative impact of incentive and stock compensation expenses noted above, SEI's consolidated operating margins improved relative to the prior year and the prior quarter.
— Average assets under administration increased by 3%, and average assets under management increased by 1%, relative to Q3 2024. However, ending assets under management declined by 3% vs. Q3 2024 due to a combination of market valuation and net outflows, most notably for LSV and Institutional Investors, which saw an unusually large impact of plan terminations.
— Relative to Q4 2023, both average assets under administration and assets under management realized healthy growth of 15% and 18%, respectively.
— Earnings from LSV decreased to $33.4 million in the fourth quarter 2024 as compared to $35.4 million in the fourth quarter 2023, due to slightly lower incentive fees.
— SEI repurchased 3.1 million shares of common stock for $259.5 million during the fourth quarter 2024 at an average price of $83.43 per share.
Earnings Conference Call A conference call and presentation to review earnings is scheduled for 5 p.m. Eastern time on Jan. 29, 2025. Investors and the public may review the presentation and listen to the call and replay at seic.com/ir-events.
AboutSEI® SEI (NASDAQ:SEIC) delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to help drive growth, make confident decisions, and protect futures. As of Dec. 31, 2024, SEI manages, advises, or administers approximately $1.6 trillion in assets. For more information, visit seic.com.
This release contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission.Insomecasesyoucanidentify forward-lookingstatementsbyterminology,suchas”may,””will,””expect,””believe”and “continue” or “appear.” Our forward-looking statements include our current expectations as to:
— our focus on maximizing our return on invested capital across our segments and solutions globally;
— our ability to deliver long-term value for our stakeholders; and
— 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.
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.
SEI INVESTMENTS COMPANYCONSOLIDATEDSTATEMENTSOFOPERATIONS(Inthousands,exceptpershare data)(Unaudited) FortheThreeMonths FortheTwelveMonths EndedDecember31, Ended December 31, 2024 2023 2024 2023Assetmanagement,admin. anddistributionfees $439,520 $383,571 $1,677,143 $1,514,815Informationprocessingandsoftwareservicingfees 117,670 101,287 448,008 404,978Totalrevenues 557,190 484,858 2,125,151 1,919,793Subadvisory,distributionandotherasset mgmt.costs 50,427 47,106 191,706 189,263Softwareroyaltiesand otherinformationprocessingcosts 8,726 8,505 34,229 32,289Compensation,benefitsand otherpersonnel 200,347 184,508 770,881 714,099Stock-basedcompensation 21,402 7,850 58,626 31,308Consulting,outsourcingandprofessionalfees 52,548 54,850 211,806 231,469Dataprocessingandcomputerrelated 38,863 34,735 151,653 137,036Facilities,suppliesand othercosts 20,487 27,011 79,282 85,836Amortization 10,585 9,818 41,869 38,669Depreciation 8,261 8,791 33,358 35,300Totalexpenses 411,646 383,174 1,573,410 1,495,269Incomefrom operations 145,544 101,684 551,741 424,524Net(loss)gain frominvestments (559) 1,704 2,790 2,757Interestanddividendincome 12,947 11,574 48,897 41,027Interestexpense (144) (187) (563) (583)Otherincome – – 8,151 -Equityinearningsofunconsolidatedaffiliate 33,366 35,413 135,741 126,930Incomebeforeincome taxes 191,154 150,188 746,757 594,655Incometaxes 35,383 29,457 165,566 132,397Netincome $155,771 $120,731 $581,191 $462,258Basicearningspercommonshare $1.21 $0.92 $4.47 $3.49Sharesusedtocalculatebasic earningspershare 128,642 131,269 130,073 132,593Dilutedearningsper commonshare $1.19 $0.91 $4.41 $3.46Sharesusedtocalculatediluted earningspershare 131,421 132,160 131,727 133,728Dividendsdeclaredpercommonshare $0.49 $0.46 $0.95 $0.89
SEI INVESTMENTS COMPANYCONSOLIDATED CONDENSED BALANCE SHEETS(In thousands) (Unaudited) December 31, December 31, 2024 2023AssetsCurrent Assets:Cash and cash equivalents $839,891 $834,697Restricted cash 302 301Receivables from investment products 54,118 55,886Receivables, net of allowance for doubtful accounts of $1,435 and $663 567,634 501,434Securities owned 29,583 31,334Other current assets 60,282 54,464Total Current Assets 1,551,810 1,478,116Property and Equipment, net of accumulated depreciation of $493,219 and $474,034 159,643 171,364Operating Lease Right-of-Use Assets 28,905 22,477Capitalized Software, net of accumulated amortization of $641,071 and $612,971 236,023 239,783Investments 315,567 273,510Goodwill and Intangible Assets, net 247,657 219,776Deferred Contract Costs 45,855 40,221Deferred Income Taxes 51,984 37,709Other Assets, net 47,162 37,047Total Assets $2,684,606 $2,520,003Liabilities and EquityCurrent Liabilities:Accounts payable $13,081 $10,618Accrued liabilities 347,513 318,945Current portion of long-term operating lease liabilities 7,900 8,118Deferred revenue 12,019 15,366Total Current Liabilities 380,513 353,047Long-term Income Taxes Payable 803 803Long-term Operating Lease Liabilities 24,235 17,235Other Long-term Liabilities 26,943 17,090Total Liabilities 432,494 388,175Shareholders' Equity:Common stock, $0.01 par value, 750,000 shares authorized; 126,840 and 131,178 1,268 1,312shares issued and outstandingCapital in excess of par value 1,539,816 1,404,962Retained earnings 758,003 762,586Accumulated other comprehensive loss, net (46,975) (37,032)Total Shareholders' Equity 2,252,112 2,131,828Total Liabilities and Shareholders' Equity $2,684,606 $2,520,003
SEI INVESTMENTS COMPANYCONSOLIDATEDCONDENSEDSTATEMENTSOFCASHFLOWS(Inthousands)(Unaudited) For the Twelve Months Ended December 31, 2024 2023Cashflowsfrom operatingactivities:Netincome $581,191 $462,258Adjustmentstoreconcilenetincometonetcash providedbyoperatingactivities $41,152 ($15,228)Netcashprovidedbyoperatingactivities $622,343 $447,030Netcashusedininvestingactivities ($117,302) ($141,543)Netcashusedinfinancingactivities ($494,401) ($331,324)Effectofexchangeratechangesoncash,cash equivalentsandrestrictedcash (5,445) 7,476Netincrease(decrease)incash,cash equivalentsandrestrictedcash 5,195 (18,361)Cash,cashequivalentsandrestrictedcash, beginningofperiod 834,998 853,359Cash,cashequivalentsandrestrictedcash, endofperiod $840,193 $834,998
ENDING ASSET BALANCES(In millions) (Unaudited) Dec.31, Mar. 31, Jun.30, Sept. 30, Dec.31, 2023 2024 2024 2024 2024PrivateBanks: $24,496 $25,282 $25,031 $26,565 $25,523Equityandfixed-incomeprogramsCollectivetrustfund programs 4 5 5 5 4Liquidityfunds 3,916 2,733 2,699 2,948 2,688Totalassetsunder management $28,416 $28,020 $27,735 $29,518 $28,215Clientassetsunder administration 7,267 8,024 7,813 8,349 8,340Totalassets $35,683 $36,044 $35,548 $37,867 $36,555InvestmentAdvisors: $71,634 $74,715 $74,556 $78,361 $76,283Equityandfixed-incomeprogramsLiquidityfunds 4,812 4,722 4,301 2,790 3,105TotalPlatformassets undermanagement $76,446 $79,437 $78,857 $81,151 $79,388Platform-onlyassets 18,324 20,516 21,908 24,501 25,244Platform-onlyassets-depositprogram 843 897 894 2,447 2,398TotalPlatformassets $95,613 $100,850 $101,659 $108,099 $107,030InstitutionalInvestors: $77,208 $75,969 $75,542 $79,252 $75,481Equityandfixed-incomeprogramsCollectivetrustfund programs 1 1 1 1 1Liquidityfunds 1,734 2,179 2,309 1,829 1,511Totalassetsunder management $78,943 $78,149 $77,852 $81,082 $76,993Clientassetsunder advisement 6,120 6,862 7,886 8,038 5,955Totalassets $85,063 $85,011 $85,738 $89,120 $82,948InvestmentManagers: $156,376 $161,660 $192,747 $204,429 $202,384Collectivetrustfundprograms(A)Liquidityfunds 114 202 221 233 188Totalassetsunder management $156,490 $161,862 $192,968 $204,662 $202,572Clientassetsunder administration 920,757 959,904 998,315 1,022,515 1,032,812Totalassets $1,077,247 $1,121,766 $1,191,283 $1,227,177 $1,235,384Investments in New Businesses: $2,174 $2,269 $2,285 $2,825 $2,747Equityandfixed-incomeprogramsLiquidityfunds 209 223 631 246 297Totalassetsunder management $2,383 $2,492 $2,916 $3,071 $3,044Clientassetsunder advisement 1,150 1,248 1,886 2,021 2,185Clientassetsunder administration 14,807 15,411 14,848 15,110 14,791Totalassets $18,340 $19,151 $19,650 $20,202 $20,020LSVAsset Management: $89,312 $93,616 $90,197 $93,855 $86,501Equityandfixed-incomeprograms(B)Total: $264,824 $271,851 $267,611 $280,858 $266,535Equityandfixed-incomeprograms(C)Collectivetrustfund programs 156,381 161,666 192,753 204,435 202,389Liquidityfunds 10,785 10,059 10,161 8,046 7,789Totalassetsunder management $431,990 $443,576 $470,525 $493,339 $476,713Clientassetsunder advisement 7,270 8,110 9,772 10,059 8,140Clientassetsunder administration(D) 942,831 983,339 1,020,976 1,045,974 1,055,943Platform-onlyassets 19,167 21,413 22,802 26,948 27,642Totalassets $1,401,258 $1,456,438 $1,524,075 $1,576,320 $1,568,438
(A) Collective trust fund program assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs.(B) Equity and fixed-income programs include $1.4 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of December 31, 2024).(C) Equity and fixed-income programs include $6.4 billion of assets invested in various asset allocation funds (as of December 31, 2024).(D) In addition to the assets presented, SEI also administers an additional $10.3 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of December 31, 2024).
AVERAGE ASSET BALANCES(In millions) (Unaudited) 4thQtr. 1st Qtr. 2ndQtr. 3rd Qtr. 4thQtr. 2023 2024 2024 2024 2024PrivateBanks: $23,309 $24,593 $24,859 $25,823 $26,067Equityandfixed-incomeprogramsCollectivetrustfund programs 5 4 5 5 4Liquidityfunds 3,808 3,902 2,734 2,858 2,814Totalassetsunder management $27,122 $28,499 $27,598 $28,686 $28,885Clientassetsunder administration 7,083 7,753 7,884 8,074 8,395Totalassets $34,205 $36,252 $35,482 $36,760 $37,280InvestmentAdvisors: $68,369 $72,689 $73,793 $76,111 $77,866Equityandfixed-incomeprogramsLiquidityfunds 5,046 4,649 4,348 4,264 3,031TotalPlatformassets undermanagement $73,415 $77,338 $78,141 $80,375 $80,897Platform-onlyassets 17,201 19,198 20,897 23,194 25,109Platform-onlyassets-depositprogram 281 849 886 1,176 2,186TotalPlatformassets $90,897 $97,385 $99,924 $104,745 $108,192InstitutionalInvestors: $73,644 $76,414 $75,203 $77,473 $77,399Equityandfixed-incomeprogramsCollectivetrustfund programs 3 1 1 1 1Liquidityfunds 1,682 1,812 1,893 2,046 2,154Totalassetsunder management $75,329 $78,227 $77,097 $79,520 $79,554Clientassetsunder advisement 4,607 6,498 7,508 7,925 6,991Totalassets $79,936 $84,725 $84,605 $87,445 $86,545InvestmentManagers: $149,551 $156,737 $189,884 $198,839 $204,954Collectivetrustfundprograms(A)Liquidityfunds 205 207 227 245 223Totalassetsunder management $149,756 $156,944 $190,111 $199,084 $205,177Clientassetsunder administration 901,487 938,804 982,806 1,005,111 1,034,500Totalassets $1,051,243 $1,095,748 $1,172,917 $1,204,195 $1,239,677Investments in New Businesses: $2,069 $2,200 $2,234 $2,432 $2,819Equityandfixed-incomeprogramsLiquidityfunds 197 214 471 546 269Totalassetsunder management $2,266 $2,414 $2,705 $2,978 $3,088Clientassetsunder advisement 1,080 1,194 2,014 1,885 2,110Clientassetsunder administration 14,781 15,147 14,713 14,973 14,961Totalassets $18,127 $18,755 $19,432 $19,836 $20,159LSVAsset Management: $84,492 $90,708 $90,849 $93,195 $88,880Equityandfixed-incomeprograms(B)Total: $251,883 $266,604 $266,938 $275,034 $273,031Equityandfixed-incomeprograms(C)Collectivetrustfund programs 149,559 156,742 189,890 198,845 204,959Liquidityfunds 10,938 10,784 9,673 9,959 8,491Totalassetsunder management $412,380 $434,130 $466,501 $483,838 $486,481Clientassetsunder advisement 5,687 7,692 9,522 9,810 9,101Clientassetsunder administration(D) 923,351 961,704 1,005,403 1,028,158 1,057,856Platform-onlyassets 17,482 20,047 21,783 24,370 27,295Totalassets $1,358,900 $1,423,573 $1,503,209 $1,546,176 $1,580,733
(A) Collective trust fund program average assets in the Investment Managers segment are included in assets under management sinceSEIisthetrustee.Feesearnedonthisproduct arelessthanfeesearned oncustomizedasset management programs.(B) Equity and fixed-income programs during fourth-quarter 2024 include $1.5 billion of average assets managed byLSVin which fees are based solely on performance and are not calculated as an asset-based fee.(C) Equity and fixed-income programs include $6.4 billion of average assets invested in various asset allocation funds during fourth-quarter 2024.(D) In addition to the assets presented,SEIalsoadministersanadditional$9.4billionofaverageassets inFundsofFunds assets during fourth-quarter 2024 on which SEI does not earn an administration fee.
SALES EVENTS(In thousands) (UnauditedNetRecurringSalesEvents 4th Qtr. 1st Qtr. 2nd Qtr. 3rdQtr. 4th Qtr. 2023 2024 2024 2024 2024InvestmentProcessing-relatedBusinesses:PrivateBanks $ 2,210 $ 247 $ 4,331 $ 9,417 $ 9,245InvestmentManagers 15,314 20,407 17,180 23,319 18,027TotalInvestmentProcessing-relatedBusinesses $ 17,524 $ 20,654 $ 21,511 $ 32,736 $ 27,272AssetManagement-relatedBusinesses:PrivateBanks-AMD $ (1,068) $ (85) $ (494) $ (854) $ 495InvestmentAdvisors (5,277) (942) (3,299) 2,686 1,339InstitutionalInvestors (4,151) (4,649) (1,787) (576) (2,673)TotalAssetManagement-relatedBusinesses $ (10,496) $ (5,676) $ (5,580) $ 1,256 $ (839)NewerInitiatives:InvestmentsinNewBusinesses $ 1,432 $ 1,494 $ (43) $ 936 $ 1,778TotalNetRecurringSalesEvents $ 8,460 $ 16,472 $ 15,888 $ 34,928 $ 28,211
Non-RecurringSalesEvents 4th Qtr. 1st Qtr. 2nd Qtr. 3rdQtr. 4th Qtr. 2023 2024 2024 2024 2024InvestmentProcessing-relatedBusinesses:PrivateBanks $ 3,489 $ 2,613 $ 4,431 $ 8,796 $ 6,622InvestmentManagers 1,000 1,213 930 712 2,465TotalInvestmentProcessing-relatedBusinesses $ 4,489 $ 3,826 $ 5,361 $ 9,508 $ 9,087NewerInitiatives:InvestmentsinNewBusinesses $ 770 $ 987 $ 717 $ 1,976 $ 921TotalNon-RecurringSales Events $ 5,259 $ 4,813 $ 6,078 $ 11,484 $ 10,008
TotalSalesEvents 4th Qtr. 1st Qtr. 2nd Qtr. 3rdQtr. 4th Qtr. 2023 2024 2024 2024 2024InvestmentProcessing-relatedBusinesses:PrivateBanks $ 5,699 $ 2,860 $ 8,762 $ 18,213 $ 15,867InvestmentManagers 16,314 21,620 18,110 24,031 20,492TotalInvestmentProcessing-relatedBusinesses $ 22,013 $ 24,480 $ 26,872 $ 42,244 $ 36,359AssetManagement-relatedBusinesses:PrivateBanks-AMD $ (1,068) $ (85) $ (494) $ (854) $ 495InvestmentAdvisors (5,277) (942) (3,299) 2,686 1,339InstitutionalInvestors (4,151) (4,649) (1,787) (576) (2,673)TotalAssetManagement-relatedBusinesses $ (10,496) $ (5,676) $ (5,580) $ 1,256 $ (839)NewerInitiatives:InvestmentsinNewBusinesses $ 2,202 $ 2,481 $ 674 $ 2,912 $ 2,699TotalSalesEvents $ 13,719 $ 21,285 $ 21,966 $ 46,412 $ 38,219
Investorcontact: Mediacontact:BradBurke LeslieWojcikSEI SEI+1610-676-5350 +1610-676-4191bburke2@seic.com lwojcik@seic.com
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SOURCE SEI Investments Company
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