Envestnet (NYSE: ENV), a leading provider of intelligent systems for wealth management and financial wellness, today reported financial results for the three and six months ended June 30, 2020.

 

 

Three months ended

 

 

 

Six months ended

 

 

Key Financial Metrics

 

June 30,

 

%

 

June 30,

 

%

(in millions except per share data)

 

2020

 

2019

 

Change

 

2020

 

2019

 

Change

GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

235.3

 

 

$

224.4

 

 

5%

 

$

481.9

 

 

$

424.1

 

 

14%

Net income (loss)

 

$

(5.5)

 

 

$

0.6

 

 

n/m

 

$

(12.7)

 

 

$

(17.7)

 

 

(28)%

Net income (loss) per diluted share attributable to Envestnet, Inc.

 

$

(0.09)

 

 

$

0.02

 

 

n/m

 

$

(0.23)

 

 

$

(0.35)

 

 

(34)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues(1)

 

$

235.4

 

 

$

227.9

 

 

3%

 

$

482.4

 

 

$

427.5

 

 

13%

Adjusted net revenues(1)

 

$

173.5

 

 

$

167.6

 

 

4%

 

$

351.9

 

 

$

313.4

 

 

12%

Adjusted EBITDA(1)

 

$

55.8

 

 

$

43.2

 

 

29%

 

$

110.4

 

 

$

77.2

 

 

43%

Adjusted net income(1)

 

$

31.8

 

 

$

24.5

 

 

30%

 

$

63.0

 

 

$

43.9

 

 

44%

Adjusted net income per diluted share(1)

 

$

0.59

 

 

$

0.46

 

 

28%

 

$

1.16

 

 

$

0.85

 

 

36%

n/m - not meaningful

“Envestnet continues to execute, delivering strong second quarter results, supporting our clients during these challenging times, and focusing on our strategic roadmap,” said Bill Crager, Chief Executive Officer.

“We are on our way to establishing the ecosystem that can make financial wellness a reality for everyone. A new standard for personal financial services is emerging, and we are helping to drive it,” concluded Mr. Crager.

Financial Results for the Second Quarter of 2020

Asset-based recurring revenues increased 2% from the second quarter of 2019, and represented 52% of total revenues for the second quarter of 2020 compared to 53% for the second quarter 2019. Subscription-based recurring revenues increased 14% from the second quarter of 2019, and represented 45% of total revenues for the second quarter of 2020 compared to 41% for the second quarter 2019. Professional services and other non-recurring revenues decreased 33% from the prior year period. Total revenues increased 5% to $235.3 million for the second quarter of 2020 from $224.4 million for the second quarter of 2019.

Total operating expenses for the second quarter of 2020 decreased 5% to $231.3 million from $244.7 million in the prior year period. Cost of revenues decreased 4% to $68.8 million for the second quarter of 2020 from $72.1 million for the prior year period. Compensation and benefits decreased 7% to $95.6 million for the second quarter of 2020 from $103.3 million for the prior year period. Compensation and benefits were 41% of total revenues for the second quarter of 2020, compared to 46% in the prior year period. General and administration expenses decreased 9% to $38.4 million for the second quarter of 2020 from $42.4 million for the prior year period. General and administrative expenses were 16% of total revenues for the second quarter of 2020, compared to 19% in the prior year period.

Income from operations was $4.0 million for the second quarter of 2020 compared to loss of $20.3 million for the second quarter of 2019. Net loss was $5.5 million for the second quarter of 2020 compared to net income of $0.6 million for the second quarter of 2019. Net loss per diluted share attributable to Envestnet, Inc. was $0.09 for the second quarter of 2020 compared to net income per diluted share attributable to Envestnet, Inc. of $0.02 for the second quarter of 2019.

Adjusted revenues(1) for the second quarter of 2020 increased 3% to $235.4 million from $227.9 million for the prior year period. Adjusted net revenues(1) for the second quarter of 2020 increased 4% to $173.5 million from $167.6 million for the prior year period. Adjusted EBITDA(1) for the second quarter of 2020 increased 29% to $55.8 million from $43.2 million for the prior year period. Adjusted net income(1) increased 30% for the second quarter of 2020 to $31.8 million from $24.5 million for the prior year period. Adjusted net income per diluted share(1) for the second quarter of 2020 increased 28% to $0.59 for the second quarter of 2020 from $0.46 in the second quarter of 2019.

Balance Sheet and Liquidity

As of June 30, 2020, the Company had $92.2 million in cash and cash equivalents and $620.0 million in outstanding debt. The outstanding debt as of June 30, 2020 included $275.0 million in borrowings under the Company's $500.0 million revolving credit facility and $345.0 million in convertible notes maturing in 2023.

Outlook

The Company provided the following outlook for the third quarter ending September 30, 2020 and full year ending December 31, 2020. This outlook is based on the market value of assets on September 30, 2020. We caution that we cannot predict the market value of our assets on any future date and, in particular, in light of recent market volatility. See “Cautionary Statement Regarding Forward-Looking Statements.”

In Millions Except Adjusted EPS

 

3Q 2020

 

FY 2020

GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Asset-based

 

$

134.0

 

 

-

 

$

134.5

 

 

 

 

 

 

 

Subscription-based

 

104.5

 

 

-

 

105.0

 

 

 

 

 

 

 

Total recurring revenues

 

$

238.5

 

 

-

 

$

239.5

 

 

 

 

 

 

 

Professional services and other revenues

 

6.0

 

 

-

 

6.5

 

 

 

 

 

 

 

Total revenues

 

$

244.5

 

 

-

 

$

246.0

 

 

$

976.3

 

 

-

 

$

979.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-based cost of revenues

 

$

69.5

 

 

-

 

$

70.0

 

 

$

271.5

 

 

-

 

$

272.5

 

Total cost of revenues

 

$

77.0

 

 

-

 

$

77.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

(a)

 

-

 

(a)

 

(a)

 

-

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted shares outstanding

 

 

 

55.0

 

 

 

 

 

55.0

 

 

Net income per diluted share

 

(a)

 

-

 

(a)

 

(a)

 

-

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues (1):

 

 

 

 

 

 

 

 

 

 

 

 

Asset-based

 

$

134.0

 

 

-

 

$

134.5

 

 

 

 

 

 

 

Subscription-based

 

104.5

 

 

-

 

105.0

 

 

 

 

 

 

 

Total recurring revenues

 

$

238.5

 

 

-

 

$

239.5

 

 

 

 

 

 

 

Professional services and other revenues

 

6.0

 

 

-

 

6.5

 

 

 

 

 

 

 

Total revenues

 

$

244.5

 

 

-

 

$

246.0

 

 

$

977.0

 

 

-

 

$

980.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net revenues (1)

 

$

174.5

 

 

-

 

$

176.5

 

 

$

704.5

 

 

-

 

$

708.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA(1)

 

$

56.0

 

 

-

 

$

57.0

 

 

$

221.0

 

 

-

 

$

223.0

 

Adjusted net income per diluted share(1)

 

 

 

$

0.59

 

 

 

 

$

2.28

 

 

-

 

$

2.31

 

 

(a) The Company does not forecast net income and net income per diluted share due to the unpredictable nature of various items adjusted for non-GAAP disclosure purposes, including the periodic GAAP income tax provision.

Conference Call

Envestnet will host a conference call to discuss second quarter 2020 financial results today at 5:00 p.m. ET. The live webcast and accompanying presentation can be accessed from Envestnet’s investor relations website at http://ir.envestnet.com/. A replay of the webcast will be available on the investor relations website following the call.

About Envestnet

Envestnet, Inc. (NYSE: ENV) is transforming the way financial advice and wellness are delivered. Our mission is to empower advisors and financial service providers with innovative technology, solutions, and intelligence to make financial wellness a reality for everyone. Over 103,000 advisors and more than 4,900 companies including: 16 of the 20 largest U.S. banks, 46 of the 50 largest wealth management and brokerage firms, over 500 of the largest RIAs and hundreds of FinTech companies, leverage the Envestnet platform to grow their business and client relationships.

For more information on Envestnet, please visit www.envestnet.com and follow us on Twitter (@ENVintel).

(1) Non-GAAP Financial Measures

“Adjusted revenues” excludes the effect of purchase accounting on the fair value of acquired deferred revenue. Under GAAP, we record at fair value the acquired deferred revenue for contracts in effect at the time the entities were acquired. Consequently, revenue related to acquired entities for periods subsequent to the acquisition does not reflect the full amount of revenue that would have been recorded by these entities had they remained stand‑alone entities.

“Adjusted net revenues” represents adjusted revenues less asset-based cost of revenues. Under GAAP, we are required to recognize as revenue certain fees paid to investment managers and other third parties needed for implementation of investment solutions included in our assets under management. Those fees also are required to be recorded as cost of revenues. This non-GAAP metric presents adjusted revenues without such fees included, as they have no impact on our profitability.

Adjusted revenues and Adjusted net revenues have limitations as financial measures, should be considered as supplemental in nature and are not meant as a substitute for revenue prepared in accordance with GAAP.

“Adjusted EBITDA” represents net income before deferred revenue fair value adjustment, interest income, interest expense, accretion on contingent consideration and purchase liability, income tax provision (benefit), depreciation and amortization, non-cash compensation expense, restructuring charges and transaction costs, severance, fair market value adjustment on contingent consideration liability, litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, gain on acquisition of equity method investment, loss allocation from equity method investments and (income) loss attributable to non-controlling interest.

“Adjusted net income” represents net income before deferred revenue fair value adjustment, accretion on contingent consideration and purchase liability, non-cash interest expense, non-cash compensation expense, restructuring charges and transaction costs, severance, fair market value adjustment on contingent consideration liability, amortization of acquired intangibles, litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, gain on acquisition of equity method investment, loss allocation from equity method investments and (income) loss attributable to non-controlling interest. Reconciling items are presented gross of tax, and a normalized tax rate is applied to the total of all reconciling items to arrive at adjusted net income. The normalized tax rate is based solely on the estimated blended statutory income tax rates in the jurisdictions in which we operate. We monitor the normalized tax rate based on events or trends that could materially impact the rate, including tax legislation changes and changes in the geographic mix of our operations.

“Adjusted net income per diluted share” represents adjusted net income attributable to common stockholders divided by the diluted number of weighted-average shares outstanding.

See reconciliation of Non-GAAP Financial Measures on pages 9-14 of this press release. Reconciliations are not provided for guidance on such measures as the Company is unable to predict the amounts to be adjusted, such as the GAAP tax provision. The Company’s Non-GAAP Financial Measures should not be viewed as a substitute for revenues, net income or net income per share determined in accordance with GAAP.

Cautionary Statement Regarding Forward-Looking Statements

The forward-looking statements made in this press release and its attachments concerning, among other things, Envestnet, Inc.’s expected financial performance and outlook for the third quarter and full year of 2020, its strategic operational plans and growth strategy are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and the Company’s actual results could differ materially from the results expressed or implied by such forward-looking statements. Furthermore, reported results should not be considered as an indication of future performance. The potential risks, uncertainties and other factors that could cause actual results to differ from those expressed by the forward-looking statements in this press release include, but are not limited to, a pandemic or health crisis, including the COVID-19 pandemic, and its impact on financial institutions, the global economy or capital markets, as well as our products, clients, vendors and employees, and our results of operations, the full extent of which is currently unknown; changes and volatility in financial and capital markets, which could result in changes in demand for our products or services or in the value of assets on which we earn revenue; the possibility that the anticipated benefits of any of our acquisitions will not be realized to the extent or when expected, difficulty in sustaining rapid revenue growth, which may place significant demands on our administrative, operational and financial resources, the concentration of nearly all of our revenues from the delivery of our solutions and services to clients in the financial services industry, our reliance on a limited number of clients for a material portion of our revenues, the renegotiation of fee percentages or termination of our services by our clients, our ability to identify potential acquisition candidates, complete acquisitions and successfully integrate acquired companies, the impact of market and economic conditions on revenues, our inability to successfully execute the conversion of clients’ assets from their technology platform to our technology platforms in a timely and accurate manner, our ability to expand our relationships with existing customers, grow the number of customers and derive revenue from new offerings such as our data analytics solutions and market research services and premium financial applications, compliance failures, adverse judicial or regulatory proceedings against us, liabilities associated with potential, perceived or actual breaches of fiduciary duties and/or conflicts of interest, changes in laws and regulations, including tax laws and regulations, general economic conditions, political and regulatory conditions, the impact of fluctuations in market condition and interest rates on the demand for our products and services and the value of assets under management or administration, the impact of market conditions on our ability to issue debt and equity, the impact of fluctuations in interest rates on our cost of borrowing, our financial performance, the results of our investments in research and development, our data center and other infrastructure, our ability to maintain the security and integrity of our systems and facilities and to maintain the privacy of personal information, failure of our systems to work properly, our ability to realize operating efficiencies, the advantages of our solutions as compared to those of others, the failure to protect our intellectual property rights, our ability to establish and maintain intellectual property rights, our ability to retain and hire necessary employees and appropriately staff our operations and management’s response to these factors. More information regarding these and other risks, uncertainties and factors is contained in our filings with the Securities and Exchange Commission (“SEC”) which are available on the SEC’s website at www.sec.gov or the our Investor Relations website at http://ir.envestnet.com/. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. All information in this press release and its attachments is as of August 6, 2020 and, unless required by law, we undertake no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to report the occurrence of unanticipated events.

 

Envestnet, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited)

 

 

 

June 30,

 

December 31,

 

 

2020

 

2019

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

92,244

 

 

$

82,505

 

Fees receivable, net

 

74,871

 

 

67,815

 

Prepaid expenses and other current assets

 

38,665

 

 

32,183

 

Total current assets

 

205,780

 

 

182,503

 

 

 

 

 

 

Property and equipment, net

 

49,752

 

 

53,756

 

Internally developed software, net

 

78,024

 

 

60,263

 

Intangible assets, net

 

471,091

 

 

505,589

 

Goodwill

 

906,499

 

 

879,850

 

Operating lease right-of-use-assets, net

 

73,537

 

 

82,796

 

Other non-current assets

 

46,722

 

 

37,127

 

Total assets

 

$

1,831,405

 

 

$

1,801,884

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accrued expenses and other liabilities

 

$

134,763

 

 

$

137,944

 

Accounts payable

 

16,132

 

 

17,277

 

Operating lease liabilities

 

13,926

 

 

13,816

 

Contingent consideration

 

1,603

 

 

 

Deferred revenue

 

42,861

 

 

34,753

 

Total current liabilities

 

209,285

 

 

203,790

 

 

 

 

 

 

Convertible Notes due 2023

 

311,031

 

 

305,513

 

Revolving credit facility

 

275,000

 

 

260,000

 

Contingent consideration

 

11,422

 

 

9,045

 

Deferred revenue

 

5,231

 

 

5,754

 

Non-current operating lease liabilities

 

81,600

 

 

88,365

 

Deferred tax liabilities, net

 

27,106

 

 

29,481

 

Other non-current liabilities

 

36,993

 

 

32,360

 

Total liabilities

 

957,668

 

 

934,308

 

 

 

 

 

 

Equity:

 

 

 

 

Total stockholders’ equity

 

875,795

 

 

869,094

 

Non-controlling interest

 

(2,058)

 

 

(1,518)

 

Total liabilities and equity

 

$

1,831,405

 

 

$

1,801,884

 

 

Envestnet, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share information) (unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2020

 

2019

 

2020

 

2019

Revenues:

 

 

 

 

 

 

 

 

Asset-based

 

$

122,246

 

 

$

120,070

 

 

$

257,057

 

 

$

229,004

 

Subscription-based

 

104,979

 

 

92,258

 

 

209,530

 

 

175,345

 

Total recurring revenues

 

227,225

 

 

212,328

 

 

466,587

 

 

404,349

 

Professional services and other revenues

 

8,088

 

 

12,117

 

 

15,265

 

 

19,762

 

Total revenues

 

235,313

 

 

224,445

 

 

481,852

 

 

424,111

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenues

 

68,849

 

 

72,080

 

 

143,782

 

 

133,725

 

Compensation and benefits

 

95,565

 

 

103,286

 

 

205,995

 

 

190,003

 

General and administration

 

38,448

 

 

42,421

 

 

79,558

 

 

82,945

 

Depreciation and amortization

 

28,443

 

 

26,915

 

 

56,126

 

 

46,432

 

Total operating expenses

 

231,305

 

 

244,702

 

 

485,461

 

 

453,105

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

4,008

 

 

(20,257)

 

 

(3,609)

 

 

(28,994)

 

Other expense, net

 

(8,173)

 

 

(7,512)

 

 

(9,710)

 

 

(13,275)

 

Loss before income tax provision (benefit)

 

(4,165)

 

 

(27,769)

 

 

(13,319)

 

 

(42,269)

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

1,306

 

 

(28,382)

 

 

(658)

 

 

(24,614)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

(5,471)

 

 

613

 

 

(12,661)

 

 

(17,655)

 

Add: Net loss attributable to non-controlling interest

 

547

 

 

280

 

 

401

 

 

363

 

Net income (loss) attributable to Envestnet, Inc.

 

$

(4,924)

 

 

$

893

 

 

$

(12,260)

 

 

$

(17,292)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to Envestnet, Inc.:

 

 

 

 

 

 

 

 

Basic

 

$

(0.09)

 

 

$

0.02

 

 

$

(0.23)

 

 

$

(0.35)

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

(0.09)

 

 

$

0.02

 

 

$

(0.23)

 

 

$

(0.35)

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

53,562,850

 

 

50,870,296

 

 

53,288,741

 

 

49,526,774

 

 

 

 

 

 

 

 

 

 

Diluted

 

53,562,850

 

 

52,982,688

 

 

53,288,741

 

 

49,526,774

 

 

Envestnet, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)

 

 

 

Six Months Ended

 

 

June 30,

 

 

2020

 

2019

OPERATING ACTIVITIES:

 

 

 

 

Net loss

 

$

(12,661)

 

 

$

(17,655)

 

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

56,126

 

 

46,432

 

Provision for doubtful accounts

 

1,515

 

 

713

 

Deferred income taxes

 

(1,598)

 

 

(28,991)

 

Non-cash compensation expense

 

29,869

 

 

27,852

 

Non-cash interest expense

 

5,907

 

 

9,896

 

Accretion on contingent consideration and purchase liability

 

910

 

 

742

 

Payments of contingent consideration

 

 

 

(578)

 

Fair market value adjustment to contingent consideration liability

 

(1,982)

 

 

 

Gain on acquisition of equity method investment

 

(4,230)

 

 

 

Loss allocation from equity method investment

 

3,286

 

 

550

 

Impairment of right of use assets

 

1,426

 

 

 

Other

 

556

 

 

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

Fees receivables, net

 

(8,560)

 

 

(536)

 

Prepaid expenses and other current assets

 

(7,756)

 

 

(15,507)

 

Other non-current assets

 

(353)

 

 

(3,241)

 

Accrued expenses and other liabilities

 

(4,484)

 

 

(19,060)

 

Accounts payable

 

(2,130)

 

 

(4,768)

 

Deferred revenue

 

7,236

 

 

3,940

 

Other non-current liabilities

 

1,946

 

 

2,602

 

Net cash provided by operating activities

 

65,023

 

 

2,391

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

Purchases of property and equipment

 

(4,329)

 

 

(8,815)

 

Capitalization of internally developed software

 

(25,703)

 

 

(15,583)

 

Investments in private companies

 

(12,625)

 

 

(2,000)

 

Acquisitions of businesses, net of cash acquired

 

(20,257)

 

 

(321,571)

 

Net cash used in investing activities

 

(62,914)

 

 

(347,969)

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

Proceeds from borrowings on revolving credit facility

 

45,000

 

 

175,000

 

Payments on revolving credit facility

 

(30,000)

 

 

(30,000)

 

Payments of contingent consideration

 

 

 

(171)

 

Proceeds from exercise of stock options

 

6,683

 

 

4,914

 

Purchase of treasury stock for stock-based tax withholdings

 

(12,816)

 

 

(15,962)

 

Issuance of restricted stock units

 

3

 

 

3

 

Net cash provided by financing activities

 

8,870

 

 

133,784

 

 

 

 

 

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

(1,342)

 

 

166

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

9,637

 

 

(211,628)

 

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD

 

82,755

 

 

289,671

 

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (a)

 

$

92,392

 

 

$

78,043

 

(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets:

 

 

 

June 30,

 

June 30,

 

 

2020

 

2019

Cash and cash equivalents

 

$

92,244

 

 

$

77,717

 

Restricted cash included in prepaid expenses and other current assets

 

 

 

158

 

Restricted cash included in other non-current assets

 

148

 

 

168

 

Total cash, cash equivalents and restricted cash

 

$

92,392

 

 

$

78,043

 

 

Reconciliation of Non-GAAP Financial Measures (in thousands) (unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2020

 

2019

 

2020

 

2019

Total revenues

 

$

235,313

 

 

$

224,445

 

 

$

481,852

 

 

$

424,111

 

Deferred revenue fair value adjustment (a)

 

77

 

 

3,414

 

 

516

 

 

3,420

 

Adjusted revenues

 

235,390

 

 

227,859

 

 

482,368

 

 

427,531

 

Asset-based cost of revenues

 

(61,875)

 

 

(60,293)

 

 

(130,467)

 

 

(114,135)

 

Adjusted net revenues

 

$

173,515

 

 

$

167,566

 

 

$

351,901

 

 

$

313,396

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(5,471)

 

 

$

613

 

 

$

(12,661)

 

 

$

(17,655)

 

Add (deduct):

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment (a)

 

77

 

 

3,414

 

 

516

 

 

3,420

 

Interest income (b)

 

(197)

 

 

(901)

 

 

(588)

 

 

(2,411)

 

Interest expense (b)

 

6,634

 

 

8,263

 

 

13,768

 

 

15,359

 

Accretion on contingent consideration and purchase

liability (c)

 

311

 

 

502

 

 

910

 

 

742

 

Income tax provision (benefit)

 

1,306

 

 

(28,382)

 

 

(658)

 

 

(24,614)

 

Depreciation and amortization

 

28,443

 

 

26,915

 

 

56,126

 

 

46,432

 

Non-cash compensation expense (d)

 

13,875

 

 

14,988

 

 

27,345

 

 

27,852

 

Restructuring charges and transaction costs (c)

 

6,648

 

 

13,208

 

 

9,468

 

 

20,574

 

Severance (e)

 

1,869

 

 

3,280

 

 

15,851

 

 

5,760

 

Fair market value adjustment on contingent consideration liability (c)

 

(1,982)

 

 

 

 

(1,982)

 

 

 

Non-recurring litigation and regulatory related expenses (c)

 

3,517

 

 

 

 

4,220

 

 

 

Foreign currency (b)

 

463

 

 

(154)

 

 

(31)

 

 

(155)

 

Non-income tax expense adjustment (c)

 

(642)

 

 

908

 

 

(454)

 

 

1,118

 

Non-recurring gain (b)

 

 

 

 

 

(4,230)

 

 

 

Loss allocation from equity method investments (b)

 

1,256

 

 

347

 

 

3,286

 

 

550

 

(Income) loss attributable to non-controlling interest

 

(299)

 

 

210

 

 

(500)

 

 

241

 

Adjusted EBITDA

 

$

55,808

 

 

$

43,211

 

 

$

110,386

 

 

$

77,213

 

(a)

Included within subscription-based revenues in the condensed consolidated statements of operations.

(b)

Included within other expense, net in the condensed consolidated statements of operations.

(c)

Included within general and administrative expenses in the condensed consolidated statements of operations.

(d)

For the 2020 period, $29,869 included in compensation and benefits, and a fair value adjustment of $(2,524) included in other expense, net in the condensed consolidated statements of operations. All of 2019 included in compensation and benefits in the condensed consolidated statements of operations.

(e)

Included within compensation and benefits in the condensed consolidated statements of operations.

 

Envestnet, Inc. Reconciliation of Non-GAAP Financial Measures (in thousands, except share and per share information) (unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2020

 

2019

 

2020

 

2019

Net income (loss)

 

$

(5,471)

 

 

$

613

 

 

$

(12,661)

 

 

$

(17,655)

 

Income tax provision (benefit) (a)

 

1,306

 

 

(28,382)

 

 

(658)

 

 

(24,614)

 

Loss before income tax provision (benefit)

 

(4,165)

 

 

(27,769)

 

 

(13,319)

 

 

(42,269)

 

Add (deduct):

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment (b)

 

77

 

 

3,414

 

 

516

 

 

3,420

 

Accretion on contingent consideration and purchase

liability (d)

 

311

 

 

502

 

 

910

 

 

742

 

Non-cash interest expense (c)

 

2,983

 

 

4,646

 

 

5,945

 

 

9,262

 

Non-cash compensation expense (e)

 

13,875

 

 

14,988

 

 

27,345

 

 

27,852

 

Restructuring charges and transaction costs (d)

 

6,648

 

 

13,208

 

 

9,468

 

 

20,574

 

Severance (f)

 

1,869

 

 

3,280

 

 

15,851

 

 

5,760

 

Fair market value adjustment on contingent consideration liability (d)

 

(1,982)

 

 

 

 

(1,982)

 

 

 

Amortization of acquired intangibles (g)

 

18,746

 

 

19,278

 

 

37,504

 

 

31,806

 

Non-recurring litigation and regulatory related expenses (d)

 

3,517

 

 

 

 

4,220

 

 

 

Foreign currency (c)

 

463

 

 

(154)

 

 

(31)

 

 

(155)

 

Non-income tax expense adjustment (d)

 

(642)

 

 

908

 

 

(454)

 

 

1,118

 

Non-recurring gain (c)

 

 

 

 

 

(4,230)

 

 

 

Loss allocation from equity method investments (c)

 

1,256

 

 

347

 

 

3,286

 

 

550

 

(Income) loss attributable to non-controlling interest

 

(299)

 

 

210

 

 

(500)

 

 

241

 

Adjusted net income before income tax effect

 

42,657

 

 

32,858

 

 

84,529

 

 

58,901

 

Income tax effect (h)

 

(10,884)

 

 

(8,388)

 

 

(21,554)

 

 

(15,020)

 

Adjusted net income

 

$

31,773

 

 

$

24,470

 

 

$

62,975

 

 

$

43,881

 

 

 

 

 

 

 

 

 

 

Basic number of weighted-average shares outstanding

 

53,562,850

 

 

50,870,296

 

 

53,288,741

 

 

49,526,774

 

Effect of dilutive shares:

 

 

 

 

 

 

 

 

Options to purchase common stock

 

374,070

 

 

1,164,246

 

 

519,886

 

 

1,185,480

Unvested restricted stock units

 

322,140

 

 

662,853

 

 

475,990

 

 

666,116

Convertible notes

 

 

 

261,075

 

 

11,719

 

 

12,532

Warrants

 

 

 

24,218

 

 

22,714

 

 

 

Diluted number of weighted-average shares outstanding

 

54,259,060

 

 

52,982,688

 

 

54,319,050

 

 

51,390,902

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share - diluted

 

$

0.59

 

 

$

0.46

 

 

$

1.16

 

 

$

0.85

 

(a)

For the three months ended June 30, 2020 and 2019, the effective tax rate computed in accordance with GAAP equaled (31.4)% and 102.2%, respectively. For the six months ended June 30, 2020 and 2019, the effective tax rate computed in accordance with GAAP equaled 4.9% and 58.2%, respectively.

(b)

Included within subscription-based revenues in the condensed consolidated statements of operations.

(c)

Included within other expense, net in the condensed consolidated statements of operations.

(d)

Included within general and administrative expenses in the condensed consolidated statements of operations.

(e)

For the 2020 period, $29,869 included in compensation and benefits, and a fair value adjustment of $(2,524) included in other expense, net in the condensed consolidated statements of operations. All of 2019 included in compensation and benefits in the condensed consolidated statements of operations.

(f)

Included within compensation and benefits in the condensed consolidated statements of operations.

(g)

Included within depreciation and amortization in the condensed consolidated statements of operations.

(h)

An estimated normalized effective tax rate of 25.5% have been used to compute adjusted net income for the three and six months ended June 30, 2020 and 2019.

 

Reconciliation of Non-GAAP Financial Measures Segment Information (in thousands) (unaudited)

 

 

 

 

 

Three months ended June 30, 2020

 

 

Envestnet Wealth Solutions

 

Envestnet Data & Analytics

 

Nonsegment

 

Total

Total Revenues

 

$

187,685

 

 

$

47,628

 

 

$

 

 

$

235,313

 

Deferred revenue fair value adjustment (a)

 

77

 

 

 

 

 

 

77

 

Adjusted revenues

 

187,762

 

 

47,628

 

 

 

 

235,390

 

Less: Asset-based cost of revenues

 

(61,875)

 

 

 

 

 

 

(61,875)

 

Adjusted net revenues

 

$

125,887

 

 

$

47,628

 

 

$

 

 

$

173,515

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Asset-based

 

$

122,246

 

 

$

 

 

$

 

 

$

122,246

 

Subscription-based

 

61,410

 

 

43,569

 

 

 

 

104,979

 

Total recurring revenues

 

183,656

 

 

43,569

 

 

 

 

227,225

 

Professional services and other revenues

 

4,029

 

 

4,059

 

 

 

 

8,088

 

Total revenues

 

187,685

 

 

47,628

 

 

 

 

235,313

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

Asset-based

 

61,875

 

 

 

 

 

 

61,875

 

Subscription-based

 

1,227

 

 

5,580

 

 

 

 

6,807

 

Professional services and other

 

9

 

 

158

 

 

 

 

167

 

Total cost of revenues

 

63,111

 

 

5,738

 

 

 

 

68,849

 

Compensation and benefits

 

62,796

 

 

25,802

 

 

6,967

 

 

95,565

 

General and administration

 

21,830

 

 

8,667

 

 

7,951

 

 

38,448

 

Depreciation and amortization

 

20,081

 

 

8,362

 

 

 

 

28,443

 

Total operating expenses

 

$

167,818

 

 

$

48,569

 

 

$

14,918

 

 

$

231,305

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

19,867

 

 

$

(941)

 

 

$

(14,918)

 

 

$

4,008

 

Add:

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment (a)

 

77

 

 

 

 

 

 

77

 

Accretion on contingent consideration and purchase liability (b)

 

373

 

 

(62)

 

 

 

 

311

 

Depreciation and amortization

 

20,081

 

 

8,362

 

 

 

 

28,443

 

Non-cash compensation expense (c)

 

9,055

 

 

2,981

 

 

1,839

 

 

13,875

 

Restructuring charges and transaction costs (b)

 

3,731

 

 

271

 

 

2,646

 

 

6,648

 

Non-income tax expense adjustment (b)

 

(578)

 

 

(64)

 

 

 

 

(642)

 

Severance (c)

 

1,437

 

 

432

 

 

 

 

1,869

 

Fair market value adjustment on contingent consideration liability (b)

 

 

 

(1,982)

 

 

 

 

(1,982)

 

Non-recurring litigation and regulatory related expenses (b)

 

 

 

3,517

 

 

 

 

3,517

 

Income attributable to non-controlling interest

 

(299)

 

 

 

 

 

 

(299)

 

Other

 

(17)

 

 

 

 

 

 

(17)

 

Adjusted EBITDA

 

$

53,727

 

 

$

12,514

 

 

$

(10,433)

 

 

$

55,808

 

(a)

Included within subscription-based revenues in the condensed consolidated statements of operations.

(b)

Included within general and administrative expenses in the condensed consolidated statements of operations.

(c)

Included within compensation and benefits in the condensed consolidated statements of operations.

 

Reconciliation of Non-GAAP Financial Measures Segment Information (continued) (in thousands) (unaudited)

 

 

 

 

 

 

Six months ended June 30, 2020

 

 

Envestnet Wealth Solutions

 

Envestnet Data & Analytics

 

Nonsegment

 

Total

Total Revenues

 

$

386,105

 

 

$

95,747

 

 

$

 

 

$

481,852

 

Deferred revenue fair value adjustment (a)

 

516

 

 

 

 

 

 

516

 

Adjusted revenues

 

386,621

 

 

95,747

 

 

 

 

482,368

 

Less: Asset-based cost of revenues

 

(130,467)

 

 

 

 

 

 

(130,467)

 

Adjusted net revenues

 

$

256,154

 

 

$

95,747

 

 

$

 

 

$

351,901

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Asset-based

 

$

257,057

 

 

$

 

 

$

 

 

$

257,057

 

Subscription-based

 

121,733

 

 

87,797

 

 

 

 

209,530

 

Total recurring revenues

 

378,790

 

 

87,797

 

 

 

 

466,587

 

Professional services and other revenues

 

7,315

 

 

7,950

 

 

 

 

15,265

 

Total revenues

 

386,105

 

 

95,747

 

 

 

 

481,852

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

Asset-based

 

130,467

 

 

 

 

 

 

130,467

 

Subscription-based

 

2,419

 

 

10,665

 

 

 

 

13,084

 

Professional services and other

 

17

 

 

214

 

 

 

 

231

 

Total cost of revenues

 

132,903

 

 

10,879

 

 

 

 

143,782

 

Compensation and benefits

 

135,384

 

 

55,915

 

 

14,696

 

 

205,995

 

General and administration

 

47,110

 

 

17,854

 

 

14,594

 

 

79,558

 

Depreciation and amortization

 

39,501

 

 

16,625

 

 

 

 

56,126

 

Total operating expenses

 

$

354,898

 

 

$

101,273

 

 

$

29,290

 

 

$

485,461

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

31,207

 

 

$

(5,526)

 

 

$

(29,290)

 

 

$

(3,609)

 

Add:

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment (a)

 

516

 

 

 

 

 

 

516

 

Accretion on contingent consideration and purchase liability (b)

 

746

 

 

164

 

 

 

 

910

 

Depreciation and amortization

 

39,501

 

 

16,625

 

 

 

 

56,126

 

Non-cash compensation expense (c)

 

18,752

 

 

7,207

 

 

3,910

 

 

29,869

 

Restructuring charges and transaction costs (b)

 

4,920

 

 

456

 

 

4,092

 

 

9,468

 

Non-income tax expense adjustment (b)

 

(328)

 

 

(126)

 

 

 

 

(454)

 

Severance (c)

 

12,439

 

 

2,092

 

 

1,320

 

 

15,851

 

Fair market value adjustment on contingent consideration liability (b)

 

 

 

(1,982)

 

 

 

 

(1,982)

 

Non-recurring litigation and regulatory related expenses (b)

 

 

 

4,220

 

 

 

 

4,220

 

Income attributable to non-controlling interest

 

(500)

 

 

 

 

 

 

(500)

 

Other

 

(29)

 

 

 

 

 

 

(29)

 

Adjusted EBITDA

 

$

107,224

 

 

$

23,130

 

 

$

(19,968)

 

 

$

110,386

 

(a)

Included within subscription-based revenues in the condensed consolidated statements of operations.

(b)

Included within general and administrative expenses in the condensed consolidated statements of operations.

(c)

Included within compensation and benefits in the condensed consolidated statements of operations.

 

Reconciliation of Non-GAAP Financial Measures Segment Information (continued) (in thousands) (unaudited)

 

 

 

Three months ended June 30, 2019

 

 

Envestnet Wealth Solutions

 

Envestnet Data & Analytics

 

Nonsegment

 

Total

Revenues

 

$

176,890

 

 

$

47,555

 

 

$

 

 

$

224,445

 

Deferred revenue fair value adjustment (a)

 

3,414

 

 

 

 

 

 

3,414

 

Adjusted revenues

 

180,304

 

 

47,555

 

 

 

 

227,859

 

Less: Asset-based cost of revenues

 

(60,293)

 

 

 

 

 

 

(60,293)

 

Adjusted net revenues

 

$

120,011

 

 

$

47,555

 

 

$

 

 

$

167,566

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Asset-based

 

$

120,070

 

 

$

 

 

$

 

 

$

120,070

 

Subscription-based

 

50,078

 

 

42,180

 

 

 

 

92,258

 

Total recurring revenues

 

170,148

 

 

42,180

 

 

 

 

212,328

 

Professional services and other revenues

 

6,742

 

 

5,375

 

 

 

 

12,117

 

Total revenues

 

176,890

 

 

47,555

 

 

 

 

224,445

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

Asset-based

 

60,293

 

 

 

 

 

 

60,293

 

Subscription-based

 

1,115

 

 

5,582

 

 

 

 

6,697

 

Professional services and other

 

4,842

 

 

248

 

 

 

 

5,090

 

Total cost of revenues

 

66,250

 

 

5,830

 

 

 

 

72,080

 

Compensation and benefits

 

56,219

 

 

31,593

 

 

15,474

 

 

103,286

 

General and administration

 

25,666

 

 

8,553

 

 

8,202

 

 

42,421

 

Depreciation and amortization

 

16,376

 

 

10,539

 

 

 

 

26,915

 

Total operating expenses

 

$

164,511

 

 

$

56,515

 

 

$

23,676

 

 

$

244,702

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

12,379

 

 

$

(8,960)

 

 

$

(23,676)

 

 

$

(20,257)

 

Add:

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment (a)

 

3,414

 

 

 

 

 

 

3,414

 

Accretion on contingent consideration and purchase liability (b)

 

502

 

 

 

 

 

 

502

 

Depreciation and amortization

 

16,376

 

 

10,539

 

 

 

 

26,915

 

Non-cash compensation expense (c)

 

8,592

 

 

3,767

 

 

2,629

 

 

14,988

 

Restructuring charges and transaction costs (b)

 

794

 

 

(196)

 

 

12,610

 

 

13,208

 

Non-income tax expense adjustment (b)

 

908

 

 

 

 

 

 

908

 

Severance (c)

 

818

 

 

2,448

 

 

14

 

 

3,280

 

Loss attributable to non-controlling interest

 

210

 

 

 

 

 

 

210

 

Other

 

43

 

 

 

 

 

 

43

 

Adjusted EBITDA

 

$

44,036

 

 

$

7,598

 

 

$

(8,423)

 

 

$

43,211

 

(a)

Included within subscription-based revenues in the condensed consolidated statements of operations.

(b)

Included within general and administrative expenses in the condensed consolidated statements of operations.

(c)

Included within compensation and benefits in the condensed consolidated statements of operations.

 

Reconciliation of Non-GAAP Financial Measures Segment Information (continued) (in thousands) (unaudited)

 

 

 

Six Months Ended June 30, 2019

 

 

Envestnet Wealth Solutions

 

Envestnet Data & Analytics

 

Nonsegment

 

Total

Revenues

 

$

329,595

 

 

$

94,516

 

 

$

 

 

$

424,111

 

Deferred revenue fair value adjustment (a)

 

3,420

 

 

 

 

 

 

3,420

 

Adjusted revenues

 

333,015

 

 

94,516

 

 

 

 

427,531

 

Less: Asset-based cost of revenues

 

(114,135)

 

 

 

 

 

 

(114,135)

 

Adjusted net revenues

 

$

218,880

 

 

$

94,516

 

 

$

 

 

$

313,396

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Asset-based

 

$

229,004

 

 

$

 

 

$

 

 

$

229,004

 

Subscription-based

 

91,104

 

 

84,241

 

 

 

 

175,345

 

Total recurring revenues

 

320,108

 

 

84,241

 

 

 

 

404,349

 

Professional services and other revenues

 

9,487

 

 

10,275

 

 

 

 

19,762

 

Total revenues

 

329,595

 

 

94,516

 

 

 

 

424,111

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

Asset-based

 

114,135

 

 

 

 

 

 

114,135

 

Subscription-based

 

3,123

 

 

11,251

 

 

 

 

14,374

 

Professional services and other

 

4,847

 

 

369

 

 

 

 

5,216

 

Total cost of revenues

 

122,105

 

 

11,620

 

 

 

 

133,725

 

Compensation and benefits

 

104,774

 

 

62,957

 

 

22,272

 

 

190,003

 

General and administration

 

45,850

 

 

18,038

 

 

19,057

 

 

82,945

 

Depreciation and amortization

 

27,643

 

 

18,789

 

 

 

 

46,432

 

Total operating expenses

 

$

300,372

 

 

$

111,404

 

 

$

41,329

 

 

$

453,105

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

29,223

 

 

$

(16,888)

 

 

$

(41,329)

 

 

$

(28,994)

 

Add:

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment (a)

 

3,420

 

 

 

 

 

 

3,420

 

Accretion on contingent consideration and purchase liability (b)

 

742

 

 

 

 

 

 

742

 

Depreciation and amortization

 

27,643

 

 

18,789

 

 

 

 

46,432

 

Non-cash compensation expense (c)

 

14,269

 

 

7,955

 

 

5,628

 

 

27,852

 

Restructuring charges and transaction costs (b)

 

1,056

 

 

769

 

 

18,749

 

 

20,574

 

Non-income tax expense adjustment (b)

 

1,108

 

 

10

 

 

 

 

1,118

 

Severance (c)

 

1,168

 

 

4,496

 

 

96

 

 

5,760

 

Loss attributable to non-controlling interest

 

241

 

 

 

 

 

 

241

 

Other

 

65

 

 

1

 

 

2

 

 

68

 

Adjusted EBITDA

 

$

78,935

 

 

$

15,132

 

 

$

(16,854)

 

 

$

77,213

 

(a)

Included within subscription-based revenues in the condensed consolidated statements of operations.

(b)

Included within general and administrative expenses in the condensed consolidated statements of operations.

(c)

Included within compensation and benefits in the condensed consolidated statements of operations.

 

Envestnet, Inc. Historical Assets, Accounts and Advisors (in millions, except accounts and advisors) (unaudited)

 

 

 

As of

 

 

June 30,

 

September 30,

 

December 31,

 

March 31,

 

June 30,

 

 

2019

 

2019

 

2019

 

2020

 

2020

 

 

(in millions, except accounts and advisors data)

Platform Assets

 

 

 

 

 

 

 

 

 

 

Assets under Management (“AUM”)

 

$

182,143

 

 

$

188,739

 

 

$

207,083

 

 

$

185,065

 

 

$

215,994

 

Assets under Administration (“AUA”)

 

330,226

 

 

316,742

 

 

343,505

 

 

312,472

 

 

344,957

 

Total AUM/A

 

512,369

 

 

505,481

 

 

550,588

 

 

497,537

 

 

560,951

 

Subscription

 

2,835,780

 

 

2,947,582

 

 

3,205,281

 

 

2,875,394

 

 

3,247,400

 

Total Platform Assets

 

$

3,348,149

 

 

$

3,453,063

 

 

$

3,755,869

 

 

$

3,372,931

 

 

$

3,808,351

 

Platform Accounts

 

 

 

 

 

 

 

 

 

 

AUM

 

907,034

 

 

934,811

 

 

935,039

 

 

970,896

 

 

1,007,386

 

AUA

 

1,196,114

 

 

1,136,430

 

 

1,193,882

 

 

1,254,856

 

 

1,252,247

 

Total AUM/A

 

2,103,148

 

 

2,071,241

 

 

2,128,921

 

 

2,225,752

 

 

2,259,633

 

Subscription

 

9,492,653

 

 

9,692,714

 

 

9,793,175

 

 

10,090,172

 

 

10,003,156

 

Total Platform Accounts

 

11,595,801

 

 

11,763,955

 

 

11,922,096

 

 

12,315,924

 

 

12,262,789

 

Advisors

 

 

 

 

 

 

 

 

 

 

AUM/A

 

39,727

 

 

39,735

 

 

40,563

 

 

40,971

 

 

41,206

 

Subscription

 

59,292

 

 

60,319

 

 

61,180

 

 

62,077

 

 

62,404

 

Total Advisors

 

99,019

 

 

100,054

 

 

101,743

 

 

103,048

 

 

103,610

 

 

The following table summarizes the changes in AUM and AUA for the three months ended June 30, 2020:

 

 

3/31/2020

 

Gross Sales

 

Redemptions

 

Net Flows

 

Market Impact

 

6/30/2020

 

 

(in millions except account data)

AUM

 

$

185,065

 

 

$

16,843

 

 

$

(9,860)

 

 

$

6,983

 

 

$

23,946

 

 

$

215,994

 

AUA

 

312,472

 

 

16,526

 

 

(23,025)

 

 

(6,499)

 

 

38,984

 

 

344,957

 

Total AUM/A

 

$

497,537

 

 

$

33,369

 

 

$

(32,885)

 

 

$

484

 

 

$

62,930

 

 

$

560,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fee-Based Accounts

 

2,225,752

 

 

 

 

 

 

33,881

 

 

 

 

2,259,633

 

The above AUM/A gross sales figures include $1.6 billion in new client conversions. The Company onboarded an additional $24.1 billion in subscription conversions during the three months ended June 30, 2020, bringing total conversions for the quarter to $25.7 billion.

Investor Relations investor.relations@envestnet.com (312) 827-3940 Media Relations mediarelations@envestnet.com

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