SEIC
SEI Investments Company (NASDAQ: SEIC)
Q4 2024 Earnings Presentation
Q4 2024 SEI Earnings Presentation
Q4 2024 highlights.
Q4 2024 Financial Snapshot
% Change
Q4 2024
vs. Q4 '23
vs. Q3 '24
Revenues
557.2
14.9%
3.7%
Operating Income
145.5
43.1%
1.2%
Net Income
155.8
29.0%
0.6%
EPS
$1.19
30.8%
0.0%
Net Sales Events
38.2
178.6%
-17.7%
Operating Margin
26.1%
5.1%
-0.6%
Assets Under Management ($B)
476.7
10.4%
-3.4%
Administration, Platform
& Advisement ($B)
1,091.7
12.6%
0.8%
$ in millions except EPS; AUM; and Assets under administration, platform-only, and under advisement Operating margin % change represents improvement or decline in margin rate vs. prior period
Q4 2024 reflects strong continued momentum
Second consecutive quarter in which SEI has realized significant growth in net sales, revenue, and earnings
Net sales events reflect second highest quarter in SEI history, matched only by Q3 2024
Combined client assets are nearly flat with prior quarter despite modest market valuation pressure in Q4
SEI has made meaningful and consistent progress over the last 18 months and remains focused on maintaining and growing this momentum
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Q4 2024 SEI Earnings Presentation
Earnings per share.
+31%
$0.01
$1.19
$0.09
$0.02
-Year
$0.12
$0.01
-$0.01
-$0.01
$0.04
Over-Year
$0.91
Q4 2023
Private Banks
Investment
Institutional
Investment
LSV Income
Corporate
Tax Rate
Share Count
Q4 2024
Advisors
Investors
Managers
Overhead
& Other
Quarter-Over-
$0.03
$0.02
Flat
$0.01
$1.19
$1.19
-$0.01
-$0.02
-$0.01
$0.00
-$0.02
Quarter
$0.06 negative impact from
higher incentive comp. and
stock-based comp. timing
Q3 2024
Private Banks
Investment
Institutional
Investment
LSV Income
Corporate
Tax Rate
Share Count
Q4 2024
Advisors
Investors
Managers
Overhead
& Other
Q4 EPS grew 31% vs. prior year
All business units realized revenue, operating profit, and margin growth vs. Q4 2023
Q4 EPS matches prior quarter's record level despite $0.02 headwind from items affecting comparability:
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Q4 2024 SEI Earnings Presentation
Business unit performance.
Revenue ($M)
+13%
+14%
$185$191
+27%
$169
$140
$139
$139
Operating profit ($M)
+26%
+47%
$73
$70
$62
$58
$57
Business unit highlights
Private Banking growth supported by recent sales events, client retention and conversion of client backlog
Investment Managers growth driven by continued sales event growth and client cross-selling
$123
$127
$110
+1%
$43
+6%
Advisor growth driven by Integrated
$70
$72
$71
Private
Investment
Investment
Institutional
Banking
Managers
Advisors
Investors
Q4 2023
Q3 2024
Q4 2024
+56%
$34
$32
$31
$24
$20
$13
Private
Investment
Investment
Institutional
Banking
Managers
Advisors
Investors
Q4 2023
Q3 2024
Q4 2024
Cash Program ($21M revenue), a $10.5M increase over Q3
Modest Institutional revenue growth in Q4 (+1%) represents improvement vs. H1 2024 (-4%) due to focus on offsetting Corporate DB plan termination headwinds
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Q4 2024 SEI Earnings Presentation
Operating margins.
Business unit margin changes
Consolidated operating margin
8.0%
30.0%
6.0%
Quarter-Over-Quarter
Year-Over-Year
4.0%
2.0%
20.0%
0.0%
-2.0%
-4.0%
10.0%
Private
Investment
Investment
Institutional
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Banking
Managers
Advisors
Investors
Highlights
Management is pleased with Q4 margin performance, vs. both prior year and Q3 2024
SEI's consolidated operating margin declined by 70bps from Q3 2024, driven by items affecting comparability, which had a 210bps impact on Q4 2024
Absent these items, SEI's consolidated margin would have increased on both a year-over-year AND sequential basis
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Q4 2024 SEI Earnings Presentation
Net sales events.
Total net sales events ($M)
Recurring
Non-Recurring
$11.5
$10.0
$4.8
$6.1
$34.9
$3.3
$28.2
$5.3
$11.1
$16.5
$15.9
$8.5
Q3 '23
Q4 '23
Q1 '24
Q2 '24
Q3 '24
Q4 '24
Net sales events reached record $128M in 2024
Net sales events of $38M in Q4 bring full-year net sales events to record $128M; 58% above prior year 2023
Prior quarter (Q3) net sales events benefited by approximately $7M due to delays in H1 2024
Q4 sales events growth more notable in Private Banking and Investment Managers segments:
Institutional segment net events offset growth elsewhere driven by corporate DB plan terminations
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Q4 2024 SEI Earnings Presentation
Client asset summary.
AUA and assets on platform ($B)*
AUM ($B)
+13%
+1%
+10%
-3%
$1,092
$493
$477
$1,083
$432
$969
Q4 2023
Q3 2024
Q4 2024
Q4 2023
Q3 2024
Q4 2024
Highlights
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*Assets under administration, advisement and platform-only
Q4 2024 SEI Earnings Presentation
Capital allocation, liquidity, and capitalization.
Capital returned to shareholders ($M) Liquidity and capitalization ($M)
Buybacks Dividends
$10,600
$120
$0
$500
$259
$840
$0
Q4 '24
TTM Q4 '24
Cash
Long-Term Debt
Market
Capitalization
Highlights
SEI returned $259M and $620M of capital to shareholders through dividends and share repurchases in Q4 2024 and full-year 2024, respectively
Q4 share repurchases represent highest level in SEI history
SEI continues to maintain significant liquidity and a conservative balance sheet, with more than $800M of cash and no net debt as of Q4 2024
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Thank You
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Disclaimer
SEI Investments Company published this content on January 29, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on January 29, 2025 at 21:06:24.987.