Financial Engines Earnings Call Insights: Lighter Growth and Cancellation Rates

Financial Engines, Inc. (NASDAQ:FNGN) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Lighter Growth Rate

Mayank Tandon – Needham: I had a quick question on the AUC, I think the growth rate was a little bit lighter than we’ve seen in the last several quarters again and picking a little bit, but if you could maybe just provide some color on in terms of was the timing and was there anything else that may have impacted the quarter in terms the growth in AUC?

Jeffrey N. Maggioncalda – CEO: With respect to AUC, obviously when you’re looking at large plan sponsors it can be a bit lumpy, over the last three years we’ve said assume $50 billion, $75 billion of AUC per year that we add – we basically came up with that number in 2012 and I think looking forward, we basically expect it will be about similar.

Raymond J. Sims – EVP and CFO: Just to repeat the outlook is consistent with our internal assumptions as to the timing and amount of the – and the market was down a little bit between Q3 and Q4.

Mayank Tandon – Needham: Then just given the strength in the markets off late have you seen any change and momentum in your business, is that having any impact in terms of lowering the cancelation rates coming out of the 4Q numbers? I think in the past, you have said that the volatility of the market can have an impact one way or the other, so wanted to get a sense of it’s actually having a positive impact in the first quarter?