Envestnet data and analytics revenue fell during its fiscal fourth quarter amid rumblings in December of a Yodlee sale. 

The wealthtech giant’s data and analytics revenue fell 7% year over year to $38.6 million during the quarter, according to its earnings presentation.  

WHY IT MATTERS: In December, there were talks of a potential sale of Envestnet’s data aggregation subsidiary Yodlee, according to a JPMorgan report published Dec. 14. 

A sale of Yodlee would not be disruptive because of the company’s revenue from its wealth solutions and data analytics businesses, the report noted.  

BIGGER PICTURE: While Envestnet’s data and analytics revenue fell, financial institutions have been upping their investment in data and analytics, according to a January survey by consultancy firm Wavestone. In fact, 82% of organizations are increasing their investment in data and analytics, according to the report, which surveyed data executives from more than 100 diverse Fortune 1,000 organizations. 

Chip manufacturing giant Nvidia reported Feb. 21 that its data center revenue grew 409% year over year to $18.4 billion as demand for “training and inference of generative AI and large language models” drove growth, Nvidia Chief Financial Officer Colette Kress said during the earnings call. 

BY THE NUMBERS: In Q4, Envestnet reported: 

• Adjusted revenue increased 8% YoY to $317.6 million; 
• Adjusted net income grew 44% YoY to $43 million; and 
• Total operating expenses increased 55% YoY to $496 million. 

NOTEWORTHY: Envestnet co-founder and Chief Executive Bill Crager will step down from his role March 31. He has served as CEO since 2020 and will stay on as senior adviser, according to a Jan. 8 Envestnet release.

Board Chairman James Fox will serve as interim CEO. 

FORWARD LOOK: Envestnet expects its fiscal Q1 revenue to be between $320 million and $326 million, according to the earnings presentation.  

To grow the business, Tom Sipp, executive vice president of business lines at Envestnet, said the company is focused on: 

• Utilizing integrated technology and services toward greater efficiency; 
• Personalizing portfolio management; 
• Providing an end-to-end platform allowing clients to consolidate providers; and 
• Providing a holistic view of advice powered by data. 

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