Executive Summary

Q3 delivered solid execution: revenue $51.2M (+15.4% YoY), adjusted EBITDA $11.1M (21.8% margin), adjusted EPS $0.05; client count reached a record 894 and ARR crossed $200M to $202.7M .
Full-year 2024 guidance narrowed: revenue to $202–$205M (from $200–$210M) and adjusted EBITDA to $41–$45M (from $40–$45M); medium‑term 2025–2027 targets unchanged (20–22% annual revenue growth; 200–400 bps annual adjusted EBITDA margin expansion) .
Growth mix skewed to new logos: front book contributed 14% growth while back book contributed 1%, with back book softness tied to APAC geopolitical headwinds and domestic hedge fund OpEx scrutiny ahead of the election; management expects back book to normalize to 3–5% contribution over time .
Potential stock catalysts: record EMEA bookings, rising ACV, broader up‑market wins (e.g., TT International) driven by Portfolio Workbench, and FY guidance tightening; watch for Q4 implied revenue needed to meet guidance and back book recovery signals .

What Went Well and What Went Wrong

What Went Well
- “We delivered $51.2 million in revenue in Q3 2024, representing 15% year-over-year growth” as adjusted EBITDA margin expanded to 21.8%; 38 new clients brought total clients to a record 894 .
- Up‑market momentum: marquee wins such as TT International replacing multiple systems with Enfusion’s front‑to‑back solution; Portfolio Workbench central to landing larger, more profitable relationships .
- EMEA had its highest quarterly new client bookings ever with average deal size in EMEA ~2x vs early 2023; Americas launches on track to be best since 2021; 32% of new clients now from outside US/UK/HK .
What Went Wrong
- Back book growth slowed to 1% YoY in Q3 (vs historical 3–5%), pressured by APAC geopolitical headwinds and domestic hedge fund OpEx scrutiny ahead of the election .
- APAC revenue growth moderated to 6% YoY (from 10% in Q2) amid capital outflows and geopolitics affecting hedge funds, despite share gains with traditional/hybrid asset managers .
- Net dollar retention dipped to ~102% (down ~1pt QoQ), partly due to consolidation of two large broker-dealer customers (~60 bps headwind; rolls off in Q4) .

Financial Results

Metric	Q3 2023	Q2 2024	Q3 2024
Revenue ($M)	$44.357	$49.455	$51.166
GAAP Diluted EPS	$0.02	$0.02	$0.02
Adjusted Diluted EPS	$0.04	$0.05	$0.05
Gross Margin (%)	67.3%	67.7%	68.0%
Adjusted Gross Margin (%)	68.0%	68.5%	68.8%
Net Income Margin (%)	6.0%	5.2%	3.8%
Adjusted EBITDA Margin (%)	18.5%	20.5%	21.8%
Adjusted EBITDA ($M)	$9.787	$10.131	$11.148

Segment/mix (revenue)

YoY revenue mix shift continues to favor Platform subscriptions; Managed services steady; Other small.

Revenue Mix ($M)	Q3 2023	Q3 2024
Platform subscriptions	$40.857	$47.786
Managed services	$3.028	$3.078
Other	$0.302	$0.472
Total	$44.357	$51.166

KPIs

KPI	Q3 2023	Q2 2024	Q3 2024
ARR ($M)	$177.9	$195.7	$202.7
Net Dollar Retention (%)	102.4%	103.0%	102.1%
Clients (Count)	842	879	894
Average Contract Value ($K)	$217	$228	$229

Cash Flow and Balance Sheet highlights

Adjusted free cash flow $13.7M (123% conversion) in Q3; trailing 4Q FCF conversion ~53% .
Cash and cash equivalents ≈$48M at quarter‑end; no debt; $100M revolver capacity .

Estimates vs Actuals (S&P Global)

S&P Global consensus estimates were unavailable via our SPGI data connection; therefore, we cannot present beat/miss vs consensus for Q3 2024 at this time.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GAAP Revenues	FY 2024	$200–$210M	$202–$205M	Narrowed; raised low end
Adjusted EBITDA	FY 2024	$40–$45M	$41–$45M	Narrowed; raised low end
FCF Conversion	FY 2024	50–55%	50–55%	Maintained
Medium‑Term Revenue Growth	2025–2027	20–22% CAGR	20–22% CAGR	Maintained
Medium‑Term Adj. EBITDA Margin Expansion	2025–2027	+200–400 bps annually	+200–400 bps annually	Maintained
Medium‑Term FCF Conversion Expansion	2025–2027	+300–500 bps annually	+300–500 bps annually	Maintained

Note: Based on FY guidance and reported 9M revenue (Q1: $48.052M, Q2: $49.455M, Q3: $51.166M), implied Q4 revenue needed is ≈$53.3–$56.3M (calculated from $202–$205M less $148.673M) .

Earnings Call Themes & Trends

Topic	Q1 2024 (prior)	Q2 2024 (prior)	Q3 2024 (current)	Trend
Up‑market push & Portfolio Workbench	Workbench drove wins (e.g., Trium Capital); onboarding accelerating revenue recognition	New features incl. fixed‑income rebalancing and cash ladder; continued up‑market wins	Workbench central to landing larger logos; AP enhancements; mobile adoption; native fixed income rebalancing	Strengthening
Regional performance	Broadening in Europe; 44% of new accounts outside UK	EMEA penetration deepened; APAC mixed macro	EMEA best bookings ever; Americas launches strong; APAC growth moderated amid headwinds	Mixed: AMER/EMEA up, APAC pressured
Back book vs front book	Framework articulated; faster onboarding	Front 15.8%/Back 1.0% total growth mix	Front 14%/Back 1% growth; pricing and product to re‑accelerate back book to 3–5%	Back book stabilizing; recovery targeted
Managed services	Higher onboarding satisfaction	Upgrades planned; Q2 features released	Dashboard beta; focus on UX and margins; further features upcoming	Improving
Data/Analytics & AI	—	—	Violet documentation reboot with AI Q&A; data warehouse analytics (GCP) upsell path	Emerging growth vector
Channel (SIs/consultants)	—	—	Early traction with system integrators; webinars/pipeline building	Building
Private credit	Credit strategies wins	—	Product roadmap to capture private credit TAM; integrated data strategy	Early but strategic

Management Commentary

“We delivered $51.2 million in revenue in Q3 2024, representing 15% year-over-year growth… adjusted EBITDA margin of 21.8%… signed 38 new clients… total client count to 894” — CEO Oleg Movchan .
“EMEA sales team recorded its highest ever new client quarterly bookings… Americas… on track to have our highest U.S. launch win count since 2021… 32% of new clients… outside US/UK/HK” — CEO .
“Adjusted gross margin… 68.8%… third quarter of sequential expansion… adjusted EBITDA margin… 21.8% up 320 bps YoY” — CFO Brad Herring .
“We are tightening our full year revenue guidance to $202 million to $205 million… EBITDA guidance to $41 million to $45 million… reiterating FCF conversion of 50% to 55%” — CFO .
“TT International… selected Enfusion as their strategic partner for PMS, OEMS, accounting and portfolio construction and rebalancing” — CEO .
“Violet… leverage AI so clients and employees can ask questions… get answers with links to source documents” — COO Neal Pawar .

Q&A Highlights

Back book recovery and profitability: Management cited multiple 2025 “levers” (pricing actions, product deployments, more up‑market whitespace) and expects margin expansion into 2025 via pass‑through discipline .
NDR trajectory: NDR around 102–103% appears to have bottomed; ~60 bps headwind from UBS‑CS rolls off in Q4; aim to improve into 2025 as upsells stabilize and downgrades ease .
Managed services upgrades: Enhancements address client demand for more visual/interactive workflows and internal productivity to improve MS margins (offense and defense rationale) .
Up‑market pipeline and conversions: 30–40% conversion on qualified up‑market opportunities; Workbench features are unlocking wins; steady cadence of weekly feature releases supports ongoing momentum .
Strategic alternatives: Management declined to comment on market rumors; reiterated focus on long‑term shareholder value .

Estimates Context

S&P Global consensus data for ENFN was unavailable through our data connection during this analysis; therefore beat/miss vs consensus cannot be determined at this time. We will update when access is restored.
Guidance implications: FY24 revenue narrowed to $202–$205M; with 9M revenue of $148.673M, implied Q4 revenue to achieve guidance is ≈$53.3–$56.3M (our calculation) .
Given raised low‑end revenue and EBITDA ranges, Street models may need to shift FY24 higher on the low end, with particular focus on Q4 execution and back book indicators .

Key Takeaways for Investors

Execution remains strong: ARR topped $200M, adjusted margins expanded, and ACV set a record as up‑market strategy and Portfolio Workbench drive mix improvement .
Growth mix is skewed to new logos (front book 14%) while back book (1%) is expected to recover as pricing actions and cross‑sell/upsell features roll out into 2025; monitor NDR and back book commentary .
Regional dynamics create a balanced growth setup: EMEA bookings records and Americas launches offset APAC macro pressure; watch early‑stage Dubai build‑out and institutional wins .
FY24 guidance narrowed with higher low ends; focus shifts to Q4 delivery (implied $53–$56M revenue) and the 2025 re‑acceleration narrative underpinning 20–22% medium‑term growth .
Product catalysts: Workbench premium features, managed services platform upgrades, AI‑enabled documentation (Violet), data warehouse analytics (GCP), and marketplace partnerships provide 2025 monetization vectors .
Liquidity supports organic and inorganic options (≈$48M cash; $100M revolver); no debt reduces risk into macro uncertainty .
Watch list: back book recovery, pricing traction, APAC stabilization, system integrator channel productivity, and large up‑market conversions translating from bookings to ARR/Revenue in 2025 .

Sources: Q3 2024 8‑K and shareholder letter, Q3 2024 earnings call transcript; prior quarters’ 8‑Ks for trend data .

Enfusion, Inc. (ENFN)·Q3 2024 Earnings Summary