OAKS, Pa., Jan. 29, 2025 /PRNewswire/ -- 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%.
Consolidated Overview
(In thousands, except earnings per share)
For the Three Months Ended December 31,
For the Twelve Months 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."
Summary of Fourth-Quarter Results by Business Segment
(In thousands)
For the Three Months Ended December 31,
For the Twelve Months Ended December 31,
Private Banks:
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 %
Operating Profit
19,728
12,681
56 %
81,039
47,827
69 %
Operating Margin
14 %
10 %
15 %
10 %
Investment Advisors:
Revenues
139,267
109,719
27 %
509,408
436,298
17 %
Expenses
76,839
67,138
14 %
282,902
259,142
9 %
Operating Profit
62,428
42,581
47 %
226,506
177,156
28 %
Operating Margin
45 %
39 %
44 %
41 %
Institutional Investors:
Revenues
70,812
69,794
1 %
285,723
289,708
(1) %
Expenses
38,315
39,118
(2) %
154,701
165,455
(6) %
Operating Profit
32,497
30,676
6 %
131,022
124,253
5 %
Operating Margin
46 %
44 %
46 %
43 %
Investment Managers:
Revenues
191,262
168,571
13 %
728,390
645,254
13 %
Expenses
118,130
110,713
7 %
453,085
419,196
8 %
Operating Profit
73,132
57,858
26 %
275,305
226,058
22 %
Operating Margin
38 %
34 %
38 %
35 %
Investments in New Businesses:
Revenues
15,707
13,437
17 %
60,216
52,216
15 %
Expenses
19,296
17,826
8 %
74,699
70,745
6 %
Operating Loss
(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 %
Corporate Overhead Expenses
38,652
37,723
2 %
147,648
132,241
12 %
Income from Operations
$145,544
$101,684
43 %
$551,741
$424,524
30 %
Fourth-Quarter Business 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.
About SEI® 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. In some cases you can identify forward-looking statements by terminology, such as "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 COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
For the Three Months Ended December 31,
For the Twelve Months Ended December 31,
2024
2023
2024
2023
Asset management, admin. and distribution fees
$439,520
$383,571
$1,677,143
$1,514,815
Information processing and software servicing fees
117,670
101,287
448,008
404,978
Total revenues
557,190
484,858
2,125,151
1,919,793
Subadvisory, distribution and other asset mgmt. costs
50,427
47,106
191,706
189,263
Software royalties and other information processing costs
8,726
8,505
34,229
32,289
Compensation, benefits and other personnel
200,347
184,508
770,881
714,099
Stock-based compensation
21,402
7,850
58,626
31,308
Consulting, outsourcing and professional fees
52,548
54,850
211,806
231,469
Data processing and computer related
38,863
34,735
151,653
137,036
Facilities, supplies and other costs
20,487
27,011
79,282
85,836
Amortization
10,585
9,818
41,869
38,669
Depreciation
8,261
8,791
33,358
35,300
Total expenses
411,646
383,174
1,573,410
1,495,269
Income from operations
145,544
101,684
551,741
424,524
Net (loss) gain from investments
(559)
1,704
2,790
2,757
Interest and dividend income
12,947
11,574
48,897
41,027
Interest expense
(144)
(187)
(563)
(583)
Other income
—
—
8,151
—
Equity in earnings of unconsolidated affiliate
33,366
35,413
135,741
126,930
Income before income taxes
191,154
150,188
746,757
594,655
Income taxes
35,383
29,457
165,566
132,397
Net income
$155,771
$120,731
$581,191
$462,258
Basic earnings per common share
$1.21
$0.92
$4.47
$3.49
Shares used to calculate basic earnings per share
128,642
131,269
130,073
132,593
Diluted earnings per common share
$1.19
$0.91
$4.41
$3.46
Shares used to calculate diluted earnings per share
131,421
132,160
131,727
133,728
Dividends declared per common share
$0.49
$0.46
$0.95
$0.89
SEI INVESTMENTS COMPANY CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) (Unaudited)
December 31, 2024
December 31, 2023
Assets
Current Assets:
Cash and cash equivalents
$839,891
$834,697
Restricted cash
302
301
Receivables from investment products
54,118
55,886
Receivables, net of allowance for doubtful accounts of $1,435 and $663
567,634
501,434
Securities owned
29,583
31,334
Other current assets
60,282
54,464
Total Current Assets
1,551,810
1,478,116
Property and Equipment, net of accumulated depreciation of $493,219 and $474,034
159,643
171,364
Operating Lease Right-of-Use Assets
28,905
22,477
Capitalized Software, net of accumulated amortization of $641,071 and $612,971
236,023
239,783
Investments
315,567
273,510
Goodwill and Intangible Assets, net
247,657
219,776
Deferred Contract Costs
45,855
40,221
Deferred Income Taxes
51,984
37,709
Other Assets, net
47,162
37,047
Total Assets
$2,684,606
$2,520,003
Liabilities and Equity
Current Liabilities:
Accounts payable
$13,081
$10,618
Accrued liabilities
347,513
318,945
Current portion of long-term operating lease liabilities
7,900
8,118
Deferred revenue
12,019
15,366
Total Current Liabilities
380,513
353,047
Long-term Income Taxes Payable
803
803
Long-term Operating Lease Liabilities
24,235
17,235
Other Long-term Liabilities
26,943
17,090
Total Liabilities
432,494
388,175
Shareholders' Equity:
Common stock, $0.01 par value, 750,000 shares authorized; 126,840 and 131,178 shares issued and outstanding
1,268
1,312
Capital in excess of par value
1,539,816
1,404,962
Retained earnings
758,003
762,586
Accumulated other comprehensive loss, net
(46,975)
(37,032)
Total Shareholders' Equity
2,252,112
2,131,828
Total Liabilities and Shareholders' Equity
$2,684,606
$2,520,003
SEI INVESTMENTS COMPANY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
For the Twelve Months Ended December 31,
2024
2023
Cash flows from operating activities:
Net income
$581,191
$462,258
Adjustments to reconcile net income to net cash provided by operating activities
$41,152
($15,228)
Net cash provided by operating activities
$622,343
$447,030
Net cash used in investing activities
($117,302)
($141,543)
Net cash used in financing activities
($494,401)
($331,324)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(5,445)
7,476
Net increase (decrease) in cash, cash equivalents and restricted cash
5,195
(18,361)
Cash, cash equivalents and restricted cash, beginning of period
834,998
853,359
Cash, cash equivalents and restricted cash, end of period
$840,193
$834,998
ENDING ASSET BALANCES (In millions) (Unaudited)
Dec. 31,
2023
Mar. 31,
2024
Jun. 30,
2024
Sept. 30,
2024
Dec. 31,
2024
Private Banks:
Equity and fixed-income programs
$24,496
$25,282
$25,031
$26,565
$25,523
Collective trust fund programs
4
5
5
5
4
Liquidity funds
3,916
2,733
2,699
2,948
2,688
Total assets under management
$28,416
$28,020
$27,735
$29,518
$28,215
Client assets under administration
7,267
8,024
7,813
8,349
8,340
Total assets
$35,683
$36,044
$35,548
$37,867
$36,555
Investment Advisors:
Equity and fixed-income programs
$71,634
$74,715
$74,556
$78,361
$76,283
Liquidity funds
4,812
4,722
4,301
2,790
3,105
Total Platform assets under management
$76,446
$79,437
$78,857
$81,151
$79,388
Platform-only assets
18,324
20,516
21,908
24,501
25,244
Platform-only assets-deposit program
843
897
894
2,447
2,398
Total Platform assets
$95,613
$100,850
$101,659
$108,099
$107,030
Institutional Investors:
Equity and fixed-income programs
$77,208
$75,969
$75,542
$79,252
$75,481
Collective trust fund programs
1
1
1
1
1
Liquidity funds
1,734
2,179
2,309
1,829
1,511
Total assets under management
$78,943
$78,149
$77,852
$81,082
$76,993
Client assets under advisement
6,120
6,862
7,886
8,038
5,955
Total assets
$85,063
$85,011
$85,738
$89,120
$82,948
Investment Managers:
Collective trust fund programs (A)
$156,376
$161,660
$192,747
$204,429
$202,384
Liquidity funds
114
202
221
233
188
Total assets under management
$156,490
$161,862
$192,968
$204,662
$202,572
Client assets under administration
920,757
959,904
998,315
1,022,515
1,032,812
Total assets
$1,077,247
$1,121,766
$1,191,283
$1,227,177
$1,235,384
Investments in New Businesses: Equity and fixed-income programs
$2,174
$2,269
$2,285
$2,825
$2,747
Liquidity funds
209
223
631
246
297
Total assets under management
$2,383
$2,492
$2,916
$3,071
$3,044
Client assets under advisement
1,150
1,248
1,886
2,021
2,185
Client assets under administration
14,807
15,411
14,848
15,110
14,791
Total assets
$18,340
$19,151
$19,650
$20,202
$20,020
LSV Asset Management:
Equity and fixed-income programs (B)
$89,312
$93,616
$90,197
$93,855
$86,501
Total:
Equity and fixed-income programs (C)
$264,824
$271,851
$267,611
$280,858
$266,535
Collective trust fund programs
156,381
161,666
192,753
204,435
202,389
Liquidity funds
10,785
10,059
10,161
8,046
7,789
Total assets under management
$431,990
$443,576
$470,525
$493,339
$476,713
Client assets under advisement
7,270
8,110
9,772
10,059
8,140
Client assets under administration (D)
942,831
983,339
1,020,976
1,045,974
1,055,943
Platform-only assets
19,167
21,413
22,802
26,948
27,642
Total assets
$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)
4th Qtr.
2023
1st Qtr.
2024
2nd Qtr.
2024
3rd Qtr.
2024
4th Qtr.
2024
Private Banks:
Equity and fixed-income programs
$23,309
$24,593
$24,859
$25,823
$26,067
Collective trust fund programs
5
4
5
5
4
Liquidity funds
3,808
3,902
2,734
2,858
2,814
Total assets under management
$27,122
$28,499
$27,598
$28,686
$28,885
Client assets under administration
7,083
7,753
7,884
8,074
8,395
Total assets
$34,205
$36,252
$35,482
$36,760
$37,280
Investment Advisors:
Equity and fixed-income programs
$68,369
$72,689
$73,793
$76,111
$77,866
Liquidity funds
5,046
4,649
4,348
4,264
3,031
Total Platform assets under management
$73,415
$77,338
$78,141
$80,375
$80,897
Platform-only assets
17,201
19,198
20,897
23,194
25,109
Platform-only assets-deposit program
281
849
886
1,176
2,186
Total Platform assets
$90,897
$97,385
$99,924
$104,745
$108,192
Institutional Investors:
Equity and fixed-income programs
$73,644
$76,414
$75,203
$77,473
$77,399
Collective trust fund programs
3
1
1
1
1
Liquidity funds
1,682
1,812
1,893
2,046
2,154
Total assets under management
$75,329
$78,227
$77,097
$79,520
$79,554
Client assets under advisement
4,607
6,498
7,508
7,925
6,991
Total assets
$79,936
$84,725
$84,605
$87,445
$86,545
Investment Managers:
Collective trust fund programs (A)
$149,551
$156,737
$189,884
$198,839
$204,954
Liquidity funds
205
207
227
245
223
Total assets under management
$149,756
$156,944
$190,111
$199,084
$205,177
Client assets under administration
901,487
938,804
982,806
1,005,111
1,034,500
Total assets
$1,051,243
$1,095,748
$1,172,917
$1,204,195
$1,239,677
Investments in New Businesses: Equity and fixed-income programs
$2,069
$2,200
$2,234
$2,432
$2,819
Liquidity funds
197
214
471
546
269
Total assets under management
$2,266
$2,414
$2,705
$2,978
$3,088
Client assets under advisement
1,080
1,194
2,014
1,885
2,110
Client assets under administration
14,781
15,147
14,713
14,973
14,961
Total assets
$18,127
$18,755
$19,432
$19,836
$20,159
LSV Asset Management:
Equity and fixed-income programs (B)
$84,492
$90,708
$90,849
$93,195
$88,880
Total:
Equity and fixed-income programs (C)
$251,883
$266,604
$266,938
$275,034
$273,031
Collective trust fund programs
149,559
156,742
189,890
198,845
204,959
Liquidity funds
10,938
10,784
9,673
9,959
8,491
Total assets under management
$412,380
$434,130
$466,501
$483,838
$486,481
Client assets under advisement
5,687
7,692
9,522
9,810
9,101
Client assets under administration (D)
923,351
961,704
1,005,403
1,028,158
1,057,856
Platform-only assets
17,482
20,047
21,783
24,370
27,295
Total assets
$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 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 during fourth-quarter 2024 include $1.5 billion of average assets managed by LSV in 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, SEI also administers an additional $9.4 billion of average assets in Funds of Funds assets during fourth-quarter 2024 on which SEI does not earn an administration fee.
