LPL Financial Holdings Inc. (NASDAQ:LPLA) Q4 2023 Earnings Call Transcript

And as you rightfully said, to the success that you’re able to do that, not only are you going to create more interesting economic outcomes by lowering the amount of investment upfront in these opportunities, you also can bring them on at a faster pace. And so I think we’re working our way into being able to be very thoughtful about how we bring these on in an orderly fashion assuring that first and foremost we get the experience right, that you continue to operate your existing platform at the level that you want to. And then if you’re, as you, again, get better and better at that, I think you can line those up and bring those in a faster and faster pace. And that’s what we’re challenging ourselves to do without being overly precise in exactly how that would look or what that looks like.

I think we get, again, to challenge ourselves with pragmatic opportunities to think, how do you shorten that onboarding and change management effort? So that’s the problem you can solve. Matt, do you want to get?

Matt Audette: Yes. I think the answer is a resounding yes on other benefits to scale. I think when you look at just starting high level with the overall value proposition of this channel and the things that we’re building. You’re bringing on clients where they’re once they’re on their platform, a big part of the attraction is getting access to our capabilities and allowing them to grow that channel faster on our platforms, you get a place where you’re increasing your levels of organic growth. I think maybe to the core of your question on the cost side, in each of these instances, you’re typically building out capabilities or technology that’s really important to that particular enterprise, but they’re usually applicable to others as well, right.

So you’re not only making sure that you have the ability to serve and support that particular client that you’re bringing on, but you’re usually enhancing, those capabilities for things that the rest of LPL or the rest of this channel would like. And I think Pru is a very good example of that. We’re not only bringing on capabilities specific to Prudential, we’re building out a platform that can actually open up a much larger channel for us, and to recruit more on. So a headline point is there’s certainly scale benefits and hopefully those examples are helpful.

Operator: And this concludes today’s question-and-answer session. I would now like to turn the conference back to Mr. Dan Arnold for closing remarks.

Dan Arnold: Yes. And I just want to thank everyone for taking the time to join us this afternoon, and we look forward to speaking with you again next quarter. Thank you.

Operator: And this concludes today’s conference call. Thank you for participating. You may now disconnect.