And we had 25% fewer traders. So we’re doing what we’re doing. The scale is growing. And we’re doing it on normalized lower head count across the business. And we’re doing it more effectively. And that, you can see it in our trading. You can see it in our, across the administrative part of our business. We’ll be able to do more because of the AI and the cloud work that we’ve done with fewer personnel costs to serve the business, which will drive higher margin. And then the last thing I’d say is that I said it just before, is a focus, focus, focus on prioritization and focus on where we’re spending money. And again, the modernization of the platform has connected our operating environments. We don’t need three trading teams. We don’t need three performance reporting teams.
You can start to consolidate those groups into best, best in the industry talent and get the real scale and quality that, that investment is known for. So there is, as we normalize markets, where we’re going to grow the EBITDA and profitability of the company, that’ll be delivered. And I will reiterate that the 25% adjusted EBITDA will come no matter what the top line does. We will deliver on that commitment to investors. And so there is the flexibility and room to do it. We don’t want to disrupt the work that we’re doing. So we’re very focused on executing on it. But we’re also very committed to the 25% adjusted EBITDA.
Pete Heckmann: Okay. Okay, Bill. Well, thank you. Good. It’s great to hear the confidence and we’ll look forward to seeing that progress.
Operator: Thank you. [Operator Instructions] The next question comes from the line of Surinder Thind with Jefferies. Please proceed with your question.
Bill Crager: Hi, Surrender.
Surinder Thind: Hi, Bill. Hi. I guess for the first question, I’m just trying to get a sense of you talked about having exited the investment cycle and you’re now focused on the managing expenses. So as you move forward in trying to, sell more of your high value at the fiduciary solutions, is it just that there’s a bit more hand-holding that’s kind of required at this stage with clients? Is it a bit of a macro issue? How should we think about the dynamic of where growth is currently versus where you want it to be?
Bill Crager: Yes, it’s very market-related, Surrender. So exiting ’22, you’ve got, as I said, a healthier market from a headline standpoint. The returns are positive. It’s green, right? But it’s very narrow. And so when advisors look at it at portfolios in a holistic way and they’re thinking about diversification and not concentration. And so when you’re thinking about the financial advice and how it ties to a financial plan, you automatically have a reasonably conservative posture. On the other hand, you’ve got alternatives now. You’ve got cash yielding, you’ve got other fixed income kind of yields that are pretty steady, that are, much higher than they’ve been for more than a decade. And they’re also safer. And so advisors are waiting for that catalyst.
They’re waiting for that moment where the market broadens out and they put the money to work. Now, all that said, I’m going to give you a couple of statistics. In our direct index business, which we’re one of the leaders in the industry, we’re significantly growing assets, year-over-year growth, 41%. Account numbers are up 26% year-over-year. And advisor usage, new advisors using that platform, advisors are up 47%. So in the market environment, we continue to chip away. We’ve broadened our footprint and opportunity set by contracting with more firms of access to the product. Advisors are using it, 47% more advisors year-over-year. But the account flow isn’t all there. And I think that when the catalyst occurs, you’re going to see the benefit, an accelerated benefit across our platform, particularly in these high-value personalized solutions, which is exactly where the market is headed.
And that’s how we’ve positioned ourselves.
Surinder Thind: That’s helpful. And then you also made a comment. I only caught part of it. So apologies if it’s just a clarification question here. But I heard you mention something about reviewing non-core areas of the business. Can you elaborate on that, please?
Bill Crager: Sure. Thank you, Surinder. I’d use the word focus. And we’re focused on the wealth market. We’re focused on bringing the parts of our business together to really exert the competitive advantage that we’ve invested in. And that is, what we’ve got the company tuned into and tuned on to. That is what we’re delivering and focused on. So as we go through that, and you get to this stage of an investment cycle, you start to really, again, the word focus, what are those areas that contribute to that mission and what are the areas that might not really participate and not be closely aligned enough from an adjacency to be focused on, to be investing in, to build markets outside of that core focus. And that’s exactly where we’re at the moment, is really doing those evaluations and thinking through, okay, what adds to the competitive long-term advantage of what we’ve built from a wealth standpoint and what is not core. And that’s exactly what it is.
Surinder Thind: Thank you. That’s it for me.
Bill Crager: Great. Thank you, Surinder.
Operator: Thank you. There are no further questions at this time. I would like to turn the floor back over to Mr. Bill Crager, CEO for closing comments.
Bill Crager: Thank you, Camilla. As we wrap up, I just want to, again, thank all of my colleagues at Envestnet . You do an extraordinary job and the work that we’re doing is making a difference. Thank our partners, thank our customers and clients for your partnership together. We’re changing the way advice is offered to millions and millions of households. I also wanted to thank our shareholders for your commitment to Envestnet and I’m looking forward to seeing you and talking to you all next quarter. Thank you.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
