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SEI Investments (SEIC) Q2 Earnings call transcript Jul 24, 2024

AInvestThursday, Jul 25, 2024 1:25 pm ET
2min read

SEI, a leading provider of investment management, wealth management, and investment processing services, held its second quarter 2024 earnings call, which provided valuable insights into the company's performance and future prospects. The call was led by CEO Ryan Hicke, CFO Sean Denham, and other executives, who discussed key trends, growth opportunities, and strategic initiatives.

Financial Performance and Key Themes

SEI reported a strong financial performance in the second quarter, with $1.05 EPS, $22 million in sales, and $519 million in revenue. The company's focus on expanding its addressable markets, driving earnings growth, and enhancing its technology and operational platforms are key themes that emerged from the call. The executives emphasized the company's strategic positioning to capitalize on industry trends, such as consolidation in the intermediary space and the increasing demand for private market access.

Sales and Market Activity

SEI's sales pipeline is robust, with client engagement high and the reception to its enterprise positioning resonating well. The company's focus on expanding its total addressable markets, particularly in the RIA space, is a significant growth opportunity. The trend of consolidation in the intermediary space, especially with RIAs and broker-dealers, presents an opportunity for SEI to engage with advisers to provide more optionality and accelerate their success.

Strategic Positioning

SEI is actively addressing industry headwinds and capitalizing on tailwinds to position itself for long-term success. The company is well-positioned to expand its footprint in technology, operations, and asset management across the private and public markets. The increasing trend of public markets seeking access to private markets and vice versa positions SEI as a key player in this evolving landscape. The company's investment in the SEI Access Platform across multiple markets is a driver of future growth, as it addresses investor needs and demand for portfolio customization and tax optimization.

Innovation and Talent

SEI's focus on innovation is critical to its growth strategy. The company is actively exploring the application of AI in all three of its pillars of expertise, targeting internal efficiencies, client service improvements, and operational automation. The strategic partnership with Titan further underscores SEI's commitment to harnessing new technologies to maximize return on invested capital to shareholders. The recent addition of Michael Lane from BlackRock to lead SEI's adviser and institutional businesses is a testament to the company's commitment to attracting top talent to drive its growth initiatives.

Conclusion

SEI's second quarter 2024 earnings call provided a comprehensive overview of the company's financial performance and strategic initiatives. The company's focus on expanding its addressable markets, driving earnings growth, and enhancing its technology and operational platforms are key themes that underscore SEI's commitment to sustainable growth. With a solid foundation and a clear vision for the future, SEI is well-positioned to capitalize on industry trends and deliver value to its shareholders. The upcoming Investor Day on November 7 will provide further insights into the company's future growth prospects.

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