SEI INVESTMENTS CO Q1 FY2025 earnings call

• Held first-ever global client symposium in March, connecting clients across business lines. • EPS of $1.17, an 18% increase year over year. • Record-breaking $47 million in net sales events in Q1, $37 million recurring. • Sold family office services business, expecting strong return for shareholders. • AUM and AUA increased sequentially and year over year despite market conditions. • Consolidated operating profit margin increased to 28.5% in Q1, driven by operating leverage, lack of one-time items, integrated cash program, and cost control. • Sales events led by investment managers and private banking, with new product offerings like Luxembourg depository services contributing.

In the first quarter of 2025, all business segments contributed to growth. The investment managers business had strong sales momentum, with alternative and global managers driving growth, accounting for nearly 70% of segment revenue in 2024. Private banking saw broad-based wins, including M&A activity and client renewals. Investment advisors had 11% revenue growth due to the integrated cash program, though there was a sequential decline due to lower asset balances. Absolute terms: EPS was $1.17, an 18% increase year over year; net sales events were a record $47 million in Q1, with $37 million recurring.

• Confident in SEI's strong foundation and ability to deliver sustained long-term growth. • Actively pursuing organic and inorganic opportunities to accelerate strategic progress. • Increased share repurchase authorization by $500 million, with $193 million spent on buybacks in the first quarter.

• Market uncertainty which could influence the broader economy and pipeline activity. • Timing of when sales signings occur could be affected by market conditions, though no slowdown in activity is seen yet.

Q: Talk about the sales environment over the last few weeks and impact of macro uncertainty.

A: Sanjay Sharma, Phil McCabe, and Michael Lane noted no slowdown in activity, with private banking seeing outsourcing opportunities, alternative managers active, and advisor business inbound activity increasing.

Q: Unpack drivers of AUM/AUA growth despite broader US market decline.

A: Sean Denham and Ryan Hicke mentioned broad-based growth from various strategies like new distribution partners, positive net flows on adviser and institutional sides, and ongoing activity from previous signings.

Q: Speak to maintaining 28% margin and repurchase authorization cadence.

A: Sean Denham said margin improvement comes from revenue growth and cost control; repurchases are based on cash needs and stock price assessment.

Q: Secret sauce behind sales uptick and what resonates with new clients.

A: Ryan Hicke cited solid foundation, different positioning as horizontal vs vertical, and higher activity levels as drivers.

Q: Detail alternative space success and private bank revenue growth from regional/community banks.

A: Phil McCabe mentioned success in private credit, private equity, etc.; Sanjay Sharma said ~60-70% revenue growth from community bank segment, with professional services and asset management services resonating.