SEI Investments : FY 2024 Presentation

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.