NASDAQ$SEIC

SEI Investments Company · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported financial results for the first quarter of 2022.

SEI Investments Company reported first-quarter 2022 financial results, with diluted earnings per share of $1.36 compared to $0.89 in first-quarter 2021, which includes a one-time revenue event of $88.0 million, or $0.47 per share net of associated costs. Revenues increased by 28% to $581.44 million, and net income increased by 47% to $190.31 million.

  • Revenues from asset management, administration, and distribution fees increased due to higher assets under management and administration from market appreciation during 2021 and positive cash flows, though this was partially offset by the decline in market conditions during the first quarter 2022.
  • A significant, uninstalled investment processing client terminated an agreement for convenience, resulting in one-time fees of $88.0 million during first-quarter 2022, impacting diluted earnings per share by $0.47 net of associated costs.
  • Average assets under administration increased $71.8 billion, or 9%, to $893.4 billion in the first-quarter 2022.
  • Net sales events, excluding the cancelled contract item, in the Private Banks and Investment Managers segments during first-quarter 2022 were $26.6 million and are expected to generate net annualized recurring revenues of approximately $24.7 million when contract values are completely realized.

Headline financials

Total Revenue

$581M

Previous: $456M+27.6%
EPS (adj)

$1.36

Previous: $0.89+52.8%
Shares Repurchased

1.7M

No prior period
Average Assets Under Administration

$893B

Previous: $822B+8.7%
Capital Expenditures

-$9.28M

Previous: -$4.22M-120.1%
Free Cash Flow

$181M

Previous: $125M+44.5%
Net Income

$190M

Previous: $129M+47.0%
Operating Income

$215M

Previous: $133M+61.7%
Gross Profit

$239M

Previous: $154M+54.7%
Cash & Equivalents

$908M

Previous: $783M+16.0%
Total Assets

$2.37B

Previous: $2.15B+10.3%

Revenue & EPS history

SEI · Revenue · Quarterly

$581M

Q1 2022+27.6%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

SEI · $581M total across 5 segments · Q1 2022

  • Private Banks
    $214M+81.6%
  • Investment Managers
    $157M+15.0%
  • Investment Advisors
    $119M+5.2%
  • Institutional Investors
    $86.8M+2.8%
  • Investments in New Businesses
    $4.93M+27.4%

Forward guidance

SEI's forward-looking statements include current expectations as to revenue that will be generated by sales events, whether investments will create growth opportunities, whether SEI is positioned for sustainable growth, and the degree to which SEI will make good decisions or capitalize on market opportunities.

Tailwinds

  • Timing and success of client migrations, implementations and conversions
  • Ability to expand relationships and revenue opportunities with new and existing clients
  • Strategic initiatives and business segments that SEI will pursue and those in which SEI will invest
  • Success, if any, of the sales and strategic initiatives SEI pursue
  • Organic and inorganic opportunities that will drive SEI's growth

Headwinds

  • Timing and success of client migrations, implementations and conversions
  • Ability to expand relationships and revenue opportunities with new and existing clients
  • Strategic initiatives and business segments that SEI will pursue and those in which SEI will invest
  • Success, if any, of the sales and strategic initiatives SEI pursue
  • Organic and inorganic opportunities that will drive SEI's growth

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.3%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+0.3%

Avg return

30 days after

54%

37 / 69 earnings

Positive

+10.9%

Q2 2014

Best reaction

-17.1%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.0%+7.9%+6.8%
Q4 2025+2.3%-2.3%-5.6%
Q3 2025-0.0%+0.5%-1.7%
Q2 2025-0.7%-0.5%-2.6%
Q1 2025+7.8%+6.9%+15.0%
Q4 2024+3.7%+3.8%-3.5%
Q3 2024+4.6%+6.6%+13.6%
Q2 2024-2.4%-0.9%-0.5%
Q1 2024-0.8%-0.7%+1.8%
Q4 2023+3.2%+2.5%+5.6%
Q3 2023-3.0%-1.8%+6.3%
Q2 2023-2.3%-1.5%-4.1%
Q1 2023-1.7%-2.5%-2.5%
Q4 2022-1.1%-1.4%-4.5%
Q3 2022+7.5%+10.8%+27.7%
Q2 2022+1.6%+0.4%+6.8%
Q1 2022-3.5%-3.8%-6.9%
Q4 2021-3.6%+1.3%+1.6%
Q3 2021+1.7%+2.4%+1.5%
Q2 2021-2.5%-2.2%-1.3%
Q1 2021-10.5%-5.5%+0.5%
Q4 2020-7.5%-6.1%-3.9%
Q3 2020-8.5%-11.6%-4.2%
Q2 2020-8.4%-9.1%-11.3%
Q1 2020-0.5%+3.9%+4.6%
Q4 2019+5.8%+6.3%-13.8%
Q3 2019+3.9%+4.5%+9.7%
Q2 2019+3.3%+4.6%-4.1%
Q1 2019-7.3%-5.3%-9.5%
Q4 2018-2.4%+1.9%+8.6%
Q3 2018-5.0%+0.5%-1.2%
Q2 2018-5.9%-6.1%-6.7%
Q1 2018-8.8%-9.0%-6.3%
Q4 2017+0.2%-5.2%-2.5%
Q3 2017+2.2%+1.0%+7.8%
Q2 2017-3.0%-1.2%-0.1%
Q1 2017-2.1%-2.2%-4.0%
Q4 2016-3.2%-4.1%+0.0%
Q3 2016+1.6%+0.8%+6.5%
Q2 2016-11.4%-11.2%-10.0%
Q1 2016+4.5%
Q4 2015-17.1%
Q3 2015-1.6%
Q2 2015+5.9%
Q1 2015+2.1%
Q4 2014+1.2%
Q3 2014+3.0%
Q2 2014+10.9%
Q1 2014+2.3%
Q4 2013+2.1%
Q3 2013+3.1%
Q2 2013+3.2%
Q1 2013-3.0%
Q4 2012-0.3%
Q3 2012-1.0%
Q2 2012+1.6%
Q1 2012+1.8%
Q4 2011+0.3%
Q4 2008+0.3%
Q3 2011+3.6%
Q2 2011-7.4%
Q1 2010-0.4%
Q1 2011+1.6%
Q4 2010+2.3%
Q3 2010+2.4%
Q3 2009+2.4%
Q2 2010+1.0%
Q2 2009+1.0%
Q4 2009+1.0%

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