SEI Investments Company (NASDAQ:SEIC) Q3 2023 Earnings Call Transcript

SEI Investments Company (NASDAQ:SEIC) Q3 2023 Earnings Call Transcript October 25, 2023

SEI Investments Company reports earnings inline with expectations. Reported EPS is $0.87 EPS, expectations were $0.87.

Operator: Ladies and gentlemen, thank you for standing by, and welcome to the SEI Third Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, instructions will be given at that time. As a reminder, today’s call is being recorded. I will now turn the call over to your host, Director, Investor Relations, Alex Whitelam. Please go ahead, sir.

Alex Whitelam: Thank you, and welcome, everyone. We appreciate you for joining us today for our third quarter 2023 earnings call. On the call, we have Ryan Hicke, SEI’s Chief Executive Officer; Dennis McGonigle, Chief Financial Officer; and leaders of our business segments: Wayne Withrow, Paul Klauder, Jay Cipriano, Phil McCabe, Sanjay Sharma and Sneha Shah. Before we begin, I’d like to point out that our earnings press release can be found under the Investor Relations section of our website at seic.com. This call is being webcast live, and a replay will be available on the Events and Webcast page of our website. We would like to remind you that during today’s presentation and in our responses to your questions, we have and will make certain forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially.

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Please refer to our notices regarding forward-looking statements that appear in today’s earnings press release and in our filings with the Securities and Exchange Commission. We do not undertake to update any of our forward-looking statements. With that, I’ll turn the call over to CEO, Ryan Hicke. Ryan?

Ryan Hicke: Thanks, Alex. Hello, everyone, and thank you for joining us. Despite a challenging market environment, we delivered solid results for the third quarter with quality top line and earnings growth. As I laid out at last year’s Investor Day, we are surgically focused on the following areas: growing our sales results in segments and markets where we believe we can repeatably win. We are seeing that play out with investment managers, regional and community banks, UK private client investment managers and larger RIAs, adding talent and capital to enhance internal insight with outside perspective and launching more organic and acquired new businesses for future revenue generation and growth. We’re focused on investing in automation, AI and alternatives to drive scale and service excellence and continuing to deliver long-term earnings growth, driven by revenue and enhanced with smart expense management.

We are proud of our momentum as we’re executing our long-term growth strategy while managing our company for profitability. I’m excited about what we see ahead, knowing we are not satisfied or complacent, we will keep executing and innovating. Turning to Q3 results. Revenues in the third quarter were $477 million, up 1% from a year ago. Net income for the quarter was $116 million, EPS was $0.87. Keep in mind that our third quarter results for 2022 were impacted by a onetime expense related to our voluntary separation program. Absent this expense, this year’s third quarter EPS increased by $0.10 or 13% year-over-year on a comparable basis. Dennis will provide more details on our results. In the quarter, we repurchased 1.4 million shares of SEI stock at an average price of $61.43 per share.

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