AssetMark Financial Holdings, Inc. recently released its 10-K report, providing a comprehensive overview of its financial and operational performance. The company, founded in 1996 and headquartered in Concord, California, offers wealth management and technology solutions to financial advisers in the United States. Its open-architecture product platform, client advice, asset allocation options, practice management, support services, and technology aim to empower financial advisers to deliver better investor outcomes and enhance their productivity, profitability, and client satisfaction.
In the year ended December 31, 2023, AssetMark Financial reported total revenue of $708.5 million, marking a significant increase of 15.8% from the previous year. The company's net income for the same period stood at $123.1 million, or $1.66 per share, compared to $103.3 million, or $1.40 per share, in 2022. Adjusted net income for 2023 was $170.9 million, showcasing a substantial rise from $130.5 million in 2022. Furthermore, the company's adjusted EBITDA for 2023 was $249.5 million, reflecting a 24.9% increase from the previous year.
Platform assets, a key indicator of the company's business momentum, reached $108.9 billion as of December 31, 2023, marking a notable increase of 19.1% from the previous year. Additionally, the number of engaged advisers on the platform grew to 3,123, up 8.4% from the prior year. These figures demonstrate the company's success in attracting new advisers and expanding its customer footprint.
AssetMark Financial's strategic initiatives have also contributed to its growth. The company launched tax management services (TMS) in the third quarter of 2023, responding to strong demand from advisers. The introduction of the Kensington Managed Income strategy in October 2023 attracted over 650 advisers and gathered close to a quarter billion in assets. Moreover, significant progress was made in enhancing technology, particularly with the launch of the innovative Advisor Dashboard through the eWealthManager upgrade.
The company's focus on technology development is evident from its substantial investment of $228.2 million between January 1, 2021, and December 31, 2023. AssetMark Financial intends to continue investing in its technology platform to address the evolving needs of financial advisers and their investors. Additionally, the company has made and expects to continue making substantial investments across its business to support its continued growth.
AssetMark Financial faces competition from a broad range of wealth management firms, which may lead to increased competition and fee pressure. However, the company believes that its technology platform, personalized service, and curated investment solutions will continue to drive revenue expansion.
The market has reacted to these announcements by moving the company's shares 1.0% to a price of $35.98. For more information, read the company's full 10-K submission here.
