Bill Crager: Yes. You are right. So Devin, so a couple of things that will happen between now and the end of the year, as you know, we’ve kind of, we’re factoring in the overall flow rates. And it’s just not the flow rate. It’s kind of the fee dynamic to that flow rate, where the assets are coming from and kind of what solutions they’re coming into. And that really modified our guidance for the rest of the year. But there are real kind of interesting and notable revenue opportunities that will begin to come to fruition as we get to the fourth quarter of the year. Included in that are how we’re partnering with asset managers and pulling them in a little bit more closely to the engagement strategy that we have across the span of our business that will generate, begin to generate additional revenue, a high margin revenue as we get to 4Q.
The other dynamic as we get to 4Q on the revenue side will be our partnership with empower for the retirement business begins towards the end of the year. So those are dynamics that are kind of the pluses where some of the headwinds that we’re factoring in on our guide are very much industry flow assumption that we’ve experienced in the first half of the year. And we don’t want to be ahead of whenever that begins a transition. We’re going to be observers and say, hey, this is the overall health of the marketplace. And then we’ll modify to make sure that we’re in line with when the restoration of flows begins to happen. But I do want to highlight or call out some of these other revenue opportunities that we see coming before the end of the year.
And then we’ll be ongoing as we roll into ’24. On the expense side, look, this is a very focused organization. We’re focused on a couple of things. One is that the wealth market, we believe that we are deeply establishing a competitive advantage given the integration work we’ve done and how we’ve injected the data into that environment to help power the growth and efficiency of our clients. So that’s a big deal. And so the focus on the wealth market, we think, creates material and long-term competitive advantage for Envestnet to continue to win share and continue to grow. We’ll power our growth. Connected to that is the focus on the execution of strategy. A couple of years ago, we said this is where the industry is headed and it is exactly where the industry is headed.
It’s a more integrated, holistic wealth environment and utilizing data technology and a connection to a broader set of solutions. And that’s exactly what we’re delivering to our clients. Clients are reflecting that back to us and they’re utilizing us more in a holistic way. But really very important, important, important is our focus on margin and expenses. And so we’re focused. Our priority list is pretty sharp. It’s pretty tight. We’re delivering on it. And then when we look around the firm, we’re managing expenses in every corner to make sure that we are going to deliver on that 25% adjusted EBITDA by 2025. That’s a high-water mark that we believe that we can sustain from a profitability standpoint. And we’re making progress. We’re going to make progress this year despite some of the headwinds.
But we’re going to make important progress as well in 2024. We’ll roll into ’24 in a strong position to make that progress.
Devin Ryan: Okay, terrific, thank you. And then just a follow-up on some of the cross-sell opportunities. Obviously, you guys have been talking a lot about insights engine and it does seem like a differentiated offering and a win-win for both of you and advisors and ultimately clients as well. And so I’m just trying to think about the ability to really, I don’t know, get more traction there to kind of accelerate the cross-sell opportunity. Is it just more an education aspect of just getting in front of folks and making sure they understand the capability? Because again, it seems like it would sell itself. But at the same time, how do you accelerate that growth and how do you get it to another step function higher, if you will?
Bill Crager: Yes, that’s awesome, Devin. I said it there when I was talking about the data business. High degree of interest in it. The pipeline is strong. The bookings are strong. And usage is beginning to, usage is picking up. And as the usage picks up, you get some really great return data, meaning firms that are utilizing the insight engine are just growing faster than other firms. There’s a great marketing story there and it’s an important one. It’s fact-based and data-based. And so we’re excited about that. One of the things that we are also, and this is connected to another important, focus of ours, which is pricing. And as we move forward on renewals for our clients and contracts, you will see the data insight engine bundled in with an increased fee from a licensing standpoint on the licensing contracts in those renewals.
