Financial Engines Inc (NASDAQ:FNGN) posted financial report for its fourth quarter and full year closed December 31, 2017. Revenue came at $125.7 million for Q4 2017 as compared to $113.2 million for Q4 2016. The jump in revenue was led mainly by increase in professional management revenue, which surged 14% to $118.8 million for Q4 2017 from $104.4 million for Q4 2016.
Larry Raffone, the CEO and President of Financial Engines, expressed that in 2017, their focus remains on what sets company apart, their commitment to offering premium-quality, independent financial suggestion to hard working people in the U.S. that have been underserved by the financial services market. Building off their successes last year, they are thrilled about the strategic prospect in 2018 and beyond to elevate and broaden their offering for their customers consistent with their long-term plan to become the financial expert of choice in both the retail and workplace channels.
Expenses and costs surged 4% to $101.2 million for Q4 2017 from $97.4 million for Q4 2016. This was due mainly to a jump in employee-related costs, counting expenses following restructuring activities and jump in wages following compensation increases and headcount growth. There was also a jump in fees paid to program providers for data connectivity following increase in professional management revenue. These jumps were partly offset by a decline in professional and consulting services expenses.
As a fraction of revenue, cost of revenue stayed constant at 44% for Q4 2016 and Q4 2017. The company closed 2017 with assets under management of $169.4 billion. Craig Foster, the CFO of Financial Engines, expressed that their accelerating asset flows, expanding margins and solid financial results in 2017 reflects their commitment and focus to effectively balance imminent profitability while investing in their long-term growth. Income from operations came at $24.5 million for Q4 2017 versus $15.8 million for Q4 2016.