Financial Engines reports 4Q results
Financial Engines, America’s largest independent registered investment advisor, today reported financial results for its fourth quarter and full year ended December 31, 2012.
Financial results for the fourth quarter of 2012 compared to the fourth quarter of 2011: Revenue increased 26% to $51.4 million for the fourth quarter of 2012 from $40.9 million for the fourth quarter of 2011. Professional management revenue increased 37% to $43.2 million for the fourth quarter of 2012 from $31.5 million for the fourth quarter of 2011. Net income was $6.5 million, or $0.13 per diluted share, for the fourth quarter of 2012 compared to $5.8 million, or $0.12 per diluted share, for the fourth quarter of 2011.
Non-GAAP Adjusted EBITDAi increased 25% to $17.5 million for the fourth quarter of 2012 from $14.0 million for the fourth quarter of 2011.
Non-GAAP Adjusted Net Incomei increased 21% to $8.2 million for the fourth quarter of 2012 from $6.8 million for the fourth quarter of 2011.
Non-GAAP Adjusted Earnings Per Sharei increased 14% to $0.16 for the fourth quarter of 2012 from $0.14 for the fourth quarter of 2011.
Financial results for the full year 2012 compared to the full year 2011: Revenue increased 29% to $185.8 million in 2012 from $144.1 million in 2011.
Professional management revenue increased 39% to $150.9 million in 2012 from $108.2 million in 2011.
Net income was $18.6 million, or $0.37 per diluted share, in 2012 compared to $15.1 million, or $0.31 per diluted share, in 2011. Non-GAAP Adjusted EBITDAi increased 37% to $55.8 million in 2012 from $40.8 million in 2011.
“With more than six million employees and half a trillion dollars of assets in the 401(k) plans that have hired us, our job is to reach more people and make a bigger impact in their lives,” said Jeff Maggioncalda, chief executive officer of Financial Engines. “The dramatic increase in our integrated enrollment coverage, the rapidly growing deployment of Income+, and our expansion into IRA management puts us in a great position to continue to drive this reach and impact.”
Revenue increased 26% to $51.4 million for the fourth quarter of 2012 from $40.9 million for the fourth quarter of 2011. The increase in revenue was driven primarily by the growth in professional management revenue, which increased 37% to $43.2 million for the fourth quarter of 2012 from $31.5 million for the fourth quarter of 2011.
Costs and expenses increased 28% to $41.2 million for the fourth quarter of 2012 from $32.2 million for the fourth quarter of 2011.
This was due primarily to an increase in fees paid to plan providers for connectivity to plan and plan participant data, printed material costs associated with enrollment campaigns and member materials, wages due to increased headcount and higher compensation, and non-cash stock-based compensation expense.
As a percentage of revenue, cost of revenue (exclusive of amortization of internal use software) increased to 36% for the fourth quarter of 2012 from 32% for the fourth quarter of 2011, due primarily to an increase in fees paid to plan providers for connectivity to plan and plan participant data resulting from the achievement of certain contractual AUM-based milestones in 2012 and, to a lesser extent, due to an increase in print costs as a result of a revised agreement with one of our subadvisory plan providers.