Financial Engines reported assets under management slipped to $29.4 billion for the three months ended June 30 from $29.9 billion as of March 31, according to a news release issued after markets had closed Tuesday.
But the second-quarter AUM is still 51% higher than the year-earlier $19.5 billion, thanks primarily to new enrollments in the firm's professional management service “as well as by market appreciation and (participant) contributions.”
“While markets dropped 12% during the (March-June 2010) period, Financial Engines' assets under management declined only 2% as we continue to make our services available to large plan sponsors and new members,” Jeffrey Maggioncalda, the president and CEO, said in the news release that also announced second-quarter financial results.
The company earned $1.28 million, or 3 cents a share, for the quarter ended June 30 compared with $343,000, or 1 cent per share, for the year-earlier period. Revenue was $25.6 million, or 32% higher than the $19.4 million for the same period in 2009.
Financial Engines, which went public on March 16, has been relying more on providing managed accounts — its professional management services — compared with its online financial advice business. During the second quarter of 2010, revenue for the professional management service component was $17.8 million, or 69.5% of total corporate sales.
The professional management service sales are growing faster than online advice sales. The $17.8 million represented a 60% gain from the second quarter of 2009. Online advice revenue, meanwhile, was $7.7 million for the second quarter of 2010, up only 7% from the second quarter of 2009.