Envestnet (NYSE: ENV), a leading provider of intelligent systems
for wealth management and financial wellness, today reported
financial results for the three months ended March 31, 2021.
Three months ended
Key Financial Metrics
March 31,
%
(in millions except per share
data)
2021
2020
Change
GAAP:
Total revenues
$
275.1
$
246.5
12%
Net income (loss)
$
14.9
$
(7.2)
n/m
Net income (loss) per diluted share
attributable to Envestnet, Inc.
$
0.27
$
(0.14)
n/m
Non-GAAP:
Adjusted revenues(1)
$
275.2
$
247.0
11%
Adjusted EBITDA(1)
$
68.3
$
54.6
25%
Adjusted net income(1)
$
41.9
$
31.2
34%
Adjusted net income per diluted
share(1)
$
0.64
$
0.57
12%
n/m - not meaningful
“During the first quarter Envestnet again delivered strong
financial results, exceeding our revenue, adjusted EBITDA and
adjusted EPS expectations,” said Bill Crager, Chief Executive
Officer.
“We are executing on our accelerated investment plan to achieve
faster growth, gain unique competitive advantage and fuse our
capabilities to become the ecosystem that powers the intelligent
financial life,” concluded Mr. Crager.
Financial Results for the First Quarter of 2021
Asset-based recurring revenues increased 18% from the first
quarter of 2020, and represented 58% of total revenues for the
first quarter of 2021 compared to 55% for the first quarter 2020.
Subscription-based recurring revenues increased 5% from the first
quarter of 2020, and represented 40% of total revenues for the
first quarter of 2021, compared to 42% for the first quarter of
2020. Professional services and other non-recurring revenues
decreased 18% from the prior year period. Total revenues increased
12% to $275.1 million for the first quarter of 2021 from $246.5
million for the first quarter of 2020.
Total operating expenses for the first quarter of 2021 increased
2% to $258.3 million from $254.2 million in the prior year period.
Cost of revenues increased 24% to $92.9 million for the first
quarter of 2021 from $74.9 million for the prior year period.
Compensation and benefits decreased 9% to $100.7 million for the
first quarter of 2021 from $110.4 million for the prior year
period. Compensation and benefits were 37% of total revenues for
the first quarter of 2021, compared to 45% in the prior year
period. General and administration expenses decreased 12% to $36.3
million for the first quarter of 2021 from $41.1 million for the
prior year period. General and administrative expenses were 13% of
total revenues for the first quarter of 2021, compared to 17% in
the prior year period.
Income from operations was $16.8 million for the first quarter
of 2021 compared to loss from of $7.6 million for the first quarter
of 2020. Net income was $14.9 million for the first quarter of 2021
compared to net loss of $7.2 million for the first quarter of 2020.
Net income per diluted share attributable to Envestnet, Inc. was
$0.27 for the first quarter of 2021 compared to net loss per
diluted share attributable to Envestnet, Inc. of $0.14 for the
first quarter of 2020.
Adjusted revenues(1) for the first quarter of 2021 increased 11%
to $275.2 million from $247.0 million for the prior year period.
Adjusted EBITDA(1) for the first quarter of 2021 increased 25% to
$68.3 million from $54.6 million for the prior year period.
Adjusted net income(1) increased 34% for the first quarter of 2021
to $41.9 million from $31.2 million for the prior year period.
Adjusted net income per diluted share(1) for the first quarter of
2021 increased 12% to $0.64 from $0.57 in the first quarter of
2020.
Balance Sheet and Liquidity
As of March 31, 2021, the Company had $372.0 million in cash and
cash equivalents and $862.5 million in outstanding debt. The
outstanding debt as of March 31, 2021 included $345 million in
convertible notes maturing in 2023 and $517.5 million in
convertible notes maturing in 2025. The Company's $500 million
revolving credit facility was undrawn as of March 31, 2021.
Outlook
The Company provided the following outlook for the second
quarter ending June 30, 2021 and full year ending December 31,
2021. This outlook is based on the market value of assets on March
31, 2021. We caution that we cannot predict the market value of our
assets on any future date. See “Cautionary Statement Regarding
Forward-Looking Statements.”
In Millions Except Adjusted EPS
2Q 2021
FY 2021
GAAP:
Revenues:
Asset-based
$
166.5
-
$
168.0
Subscription-based
110.0
-
111.0
Total recurring revenues
$
276.5
-
$
279.0
Professional services and other
revenues
4.5
-
5.0
Total revenues
$
281.0
-
$
284.0
$
1,137.7
-
$
1,147.7
Asset-based cost of revenues
$
91.5
-
$
92.0
-
Total cost of revenues
$
99.0
-
$
99.5
Net income
(a)
-
(a)
(a)
-
(a)
Diluted shares outstanding
65.7
65.6
Net income per diluted share
(a)
-
(a)
(a)
-
(a)
Non-GAAP:
Adjusted revenues (1):
Asset-based
$
166.5
-
$
168.0
Subscription-based
110.0
-
111.0
Total recurring revenues
$
276.5
-
$
279.0
Professional services and other
revenues
4.5
-
5.0
Total revenues
$
281.0
-
$
284.0
$
1,138.0
-
$
1,148.0
Adjusted EBITDA(1)
$
60.0
-
$
62.0
$
230.0
-
$
236.0
Adjusted net income per diluted
share(1)
$
0.53
-
$
0.55
$
2.03
-
$
2.10
(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 first quarter
2021 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 106,000 advisors and more than 5,200
companies including: 17 of the 20 largest U.S. banks, 47 of the 50
largest wealth management and brokerage firms, over 500 of the
largest RIAs and hundreds of FinTech companies, leverage Envestnet
technology and services that help drive better outcomes for
enterprises, advisors and their clients.
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 revenues has limitations as a financial measure,
should be considered as supplemental in nature and is not meant as
a substitute for revenue prepared in accordance with GAAP.
“Adjusted EBITDA” represents net income (loss) 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,
cash interest on our convertible notes (subsequent to the adoption
of ASU 2020-06 on January 1, 2021), 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. Beginning January 1,
2021, the dilutive effect of our Convertible Notes are calculated
using the if-converted method in accordance with the adoption of
ASU 2020-06. As a result, 9.9 million potential shares to be issued
in connection with our Convertible Notes are considered to be
dilutive for purposes of the adjusted net income per share
calculation beginning January 1, 2021.
See reconciliations of Non-GAAP Financial Measures on pages 9-12
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 second quarter
and full year of 2021, 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 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 May 6, 2021 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)
March 31,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
371,977
$
384,565
Fees receivable, net
79,293
80,064
Prepaid expenses and other current
assets
37,751
40,570
Total current assets
489,021
505,199
Property and equipment, net
51,077
47,969
Internally developed software, net
105,288
96,501
Intangible assets, net
443,023
435,041
Goodwill
906,756
906,773
Operating lease right-of-use-assets,
net
99,231
105,249
Other non-current assets
48,592
47,558
Total assets
$
2,142,988
$
2,144,290
Liabilities and Equity
Current liabilities:
Accrued expenses and other liabilities
$
136,417
$
158,548
Accounts payable
24,567
18,003
Operating lease liabilities
13,270
13,649
Contingent consideration
11,746
11,251
Deferred revenue
42,921
34,918
Total current liabilities
228,921
236,369
Long-term debt
845,195
756,503
Non-current operating lease
liabilities
109,458
112,182
Deferred tax liabilities, net
23,042
34,740
Other non-current liabilities
22,643
28,678
Total liabilities
1,229,259
1,168,472
Equity:
Total stockholders’ equity
914,141
976,337
Non-controlling interest
(412)
(519)
Total liabilities and equity
$
2,142,988
$
2,144,290
Envestnet, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except share
and per share information)
(unaudited)
Three Months Ended
March 31,
2021
2020
Revenues:
Asset-based
$
159,375
$
134,811
Subscription-based
109,829
104,551
Total recurring revenues
269,204
239,362
Professional services and other
revenues
5,901
7,177
Total revenues
275,105
246,539
Operating expenses:
Cost of revenues
92,869
74,933
Compensation and benefits
100,714
110,430
General and administration
36,315
41,110
Depreciation and amortization
28,392
27,683
Total operating expenses
258,290
254,156
Income (loss) from operations
16,815
(7,617)
Other expense, net
(7,468)
(1,537)
Income (loss) before income tax
benefit
9,347
(9,154)
Income tax benefit
(5,588)
(1,964)
Net income (loss)
14,935
(7,190)
Add: Net (income) loss attributable to
non-controlling interest
11
(146)
Net income (loss) attributable to
Envestnet, Inc.
$
14,946
$
(7,336)
Net income (loss) per share attributable
to Envestnet, Inc.:
Basic
$
0.28
$
(0.14)
Diluted
$
0.27
$
(0.14)
Weighted average common shares
outstanding:
Basic
54,208,469
53,016,511
Diluted
59,917,648
53,016,511
Envestnet, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended
March 31,
2021
2020
OPERATING ACTIVITIES:
Net income (loss)
$
14,935
$
(7,190)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
28,392
27,683
Provision for doubtful accounts
298
1,026
Deferred income taxes
(3,581)
(1,587)
Non-cash compensation expense
14,137
15,985
Non-cash interest expense
2,015
4,463
Accretion on contingent consideration and
purchase liability
388
599
Fair market value adjustment to contingent
consideration liability
(140)
—
Gain on acquisition of equity method
investment
—
(4,230)
Loss allocation from equity method
investments
3,288
2,030
Other
165
—
Changes in operating assets and
liabilities, net of acquisitions:
Fees receivables, net
473
(14,333)
Prepaid expenses and other current
assets
1,756
(6,793)
Other non-current assets
3,093
641
Accrued expenses and other liabilities
(28,668)
(11,554)
Accounts payable
6,444
(3,205)
Deferred revenue
7,882
5,598
Other non-current liabilities
(1,068)
(145)
Net cash provided by operating
activities
49,809
8,988
INVESTING ACTIVITIES:
Purchases of property and equipment
(7,062)
(2,160)
Capitalization of internally developed
software
(15,058)
(11,572)
Investments in private companies
(2,538)
(11,700)
Acquisition of proprietary technology
(25,517)
—
Acquisitions of businesses, net of cash
acquired
—
(20,257)
Net cash used in investing activities
(50,175)
(45,689)
Envestnet, Inc.
Condensed Consolidated
Statements of Cash Flows (continued)
(in thousands)
(unaudited)
Nine Months Ended
September 30,
2021
2020
FINANCING ACTIVITIES:
Proceeds from borrowings on revolving
credit facility
—
45,000
Payments on revolving credit facility
—
(15,000)
Payments of contingent consideration
(1,000)
—
Proceeds from exercise of stock
options
522
3,408
Taxes paid in lieu of shares issued for
stock-based compensation
(9,541)
(9,199)
Share repurchase
(1,672)
—
Other
(479)
2
Net cash (used in) provided by financing
activities
(12,170)
24,211
EFFECT OF EXCHANGE RATE CHANGES ON
CASH
(52)
(1,496)
DECREASE IN CASH, CASH EQUIVALENTS AND
RESTRICTED CASH
(12,588)
(13,986)
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, BEGINNING OF PERIOD
384,714
82,755
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, END OF PERIOD (a)
$
372,126
$
68,769
(a) The following table provides a reconciliation of cash, cash
equivalents and restricted cash to amounts reported within the
Condensed Consolidated Balance Sheets:
March 31,
March 31,
2021
2020
Cash and cash equivalents
$
371,977
$
68,601
Restricted cash included in other
non-current assets
149
168
Total cash, cash equivalents and
restricted cash
$
372,126
$
68,769
Reconciliation of Non-GAAP
Financial Measures
(in thousands)
(unaudited)
Three Months Ended
March 31,
2021
2020
Total revenues
$
275,105
$
246,539
Deferred revenue fair value adjustment
(a)
80
439
Adjusted revenues
$
275,185
$
246,978
Net income (loss)
$
14,935
$
(7,190)
Add (deduct):
Deferred revenue fair value adjustment
(a)
80
439
Interest income (b)
(170)
(391)
Interest expense (b)
4,215
7,134
Accretion on contingent consideration and
purchase liability (c)
388
599
Income tax benefit
(5,588)
(1,964)
Depreciation and amortization
28,392
27,683
Non-cash compensation expense (d)
14,137
13,470
Restructuring charges and transaction
costs (c)
2,784
2,820
Severance (e)
4,914
13,982
Fair market value adjustment on contingent
consideration liability (c)
(140)
—
Non-recurring litigation and regulatory
related expenses (c)
1,709
703
Foreign currency (b)
151
(494)
Non-income tax expense adjustment (c)
(566)
188
Non-recurring gain (b)
—
(4,230)
Loss allocation from equity method
investments (b)
3,288
2,030
Income attributable to non-controlling
interest
(265)
(201)
Adjusted EBITDA
$
68,264
$
54,578
(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 three months ended March 31, 2021,
the entire amount was included in compensation and benefits in the
condensed consolidated statements of operations. For the three
months ended March 31, 2020, $15,994 was included in compensation
and benefits and a fair value adjustment of $(2,524) was included
in other expense, net, 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
March 31,
2021
2020
Net income (loss)
$
14,935
$
(7,190)
Income tax provision benefit (a)
(5,588)
(1,964)
Income (loss) before income tax
benefit
9,347
(9,154)
Add (deduct):
Deferred revenue fair value adjustment
(b)
80
439
Accretion on contingent consideration and
purchase
liability (c)
388
599
Non-cash interest expense (d)
1,423
2,962
Cash interest - Convertible Notes (d)
2,480
—
Non-cash compensation expense (e)
14,137
13,470
Restructuring charges and transaction
costs (c)
2,784
2,820
Severance (f)
4,914
13,982
Fair market value adjustment on contingent
consideration liability (c)
(140)
—
Amortization of acquired intangibles
(g)
16,478
18,758
Non-recurring litigation and regulatory
related expenses (c)
1,709
703
Foreign currency (d)
151
(494)
Non-income tax expense adjustment (c)
(566)
188
Non-recurring gain (d)
—
(4,230)
Loss allocation from equity method
investments (d)
3,288
2,030
Income attributable to non-controlling
interest
(265)
(201)
Adjusted net income before income tax
effect
56,208
41,872
Income tax effect (h)
(14,333)
(10,670)
Adjusted net income
$
41,875
$
31,202
Basic number of weighted-average shares
outstanding
54,208,469
53,016,511
Effect of dilutive shares:
Options to purchase common stock
222,387
664,796
Unvested restricted stock units
562,612
600,567
Convertible notes
9,898,549
235,182
Warrants
76,142
42,551
Diluted number of weighted-average shares
outstanding
64,968,159
54,559,607
Adjusted net income per share -
diluted
$
0.64
$
0.57
(a) For the three months ended March 31, 2021 and 2020, the
effective tax rate computed in accordance with GAAP equaled (59.8)%
and 21.5%, respectively. (b) Included within
subscription-based revenues in the condensed consolidated
statements of operations. (c) Included within general and
administrative expenses in the condensed consolidated statements of
operations. (d) Included within other expense, net in the
condensed consolidated statements of operations. (e) For the
three months ended March 31, 2021, the entire amount was included
in compensation and benefits in the condensed consolidated
statements of operations. For the three months ended March 31,
2020, $15,994 was included in compensation and benefits and a fair
value adjustment of $(2,524) was included in other expense, net, 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 months ended March 31, 2021 and 2020.
Reconciliation of Non-GAAP
Financial Measures
Segment Information
(in thousands)
(unaudited)
Three months ended March 31,
2021
Envestnet Wealth
Solutions
Envestnet Data &
Analytics
Nonsegment
Total
Total Revenues
$
226,410
$
48,695
$
—
$
275,105
Deferred revenue fair value adjustment
(a)
80
—
—
80
Adjusted revenues
$
226,490
$
48,695
$
—
$
275,185
Revenues:
Asset-based
$
159,375
$
—
$
—
$
159,375
Subscription-based
64,012
45,817
—
109,829
Total recurring revenues
223,387
45,817
—
269,204
Professional services and other
revenues
3,023
2,878
—
5,901
Total revenues
226,410
48,695
—
275,105
Operating expenses:
Cost of revenues:
Asset-based
86,190
—
—
86,190
Subscription-based
1,213
5,391
—
6,604
Professional services and other
29
46
—
75
Total cost of revenues
87,432
5,437
—
92,869
Compensation and benefits
62,854
26,289
11,571
100,714
General and administration
20,699
8,516
7,100
36,315
Depreciation and amortization
21,228
7,164
—
28,392
Total operating expenses
$
192,213
$
47,406
$
18,671
$
258,290
Income (loss) from operations
$
34,197
$
1,289
$
(18,671)
$
16,815
Add:
Deferred revenue fair value adjustment
(a)
80
—
—
80
Accretion on contingent consideration and
purchase liability (b)
342
46
—
388
Depreciation and amortization
21,228
7,164
—
28,392
Non-cash compensation expense (c)
7,829
2,841
3,467
14,137
Restructuring charges and transaction
costs (b)
1,365
147
1,272
2,784
Non-income tax expense adjustment (b)
(535)
(31)
—
(566)
Severance (c)
3,087
1,720
107
4,914
Fair market value adjustment on contingent
consideration liability (b)
—
(140)
—
(140)
Non-recurring litigation and regulatory
related expenses (b)
—
1,709
—
1,709
Income attributable to non-controlling
interest
(265)
—
—
(265)
Other
16
—
—
16
Adjusted EBITDA
$
67,344
$
14,745
$
(13,825)
$
68,264
(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 March 31,
2020
Envestnet Wealth
Solutions
Envestnet Data &
Analytics
Nonsegment
Total
Revenues
$
198,420
$
48,119
$
—
$
246,539
Deferred revenue fair value adjustment
(a)
439
—
—
439
Adjusted revenues
$
198,859
$
48,119
$
—
$
246,978
Revenues:
Asset-based
$
134,811
$
—
$
—
$
134,811
Subscription-based
60,323
44,228
—
104,551
Total recurring revenues
195,134
44,228
—
239,362
Professional services and other
revenues
3,286
3,891
—
7,177
Total revenues
198,420
48,119
—
246,539
Operating expenses:
Cost of revenues:
Asset-based
68,592
—
—
68,592
Subscription-based
1,192
5,085
—
6,277
Professional services and other
8
56
—
64
Total cost of revenues
69,792
5,141
—
74,933
Compensation and benefits
72,588
30,113
7,729
110,430
General and administration
25,280
9,187
6,643
41,110
Depreciation and amortization
19,420
8,263
—
27,683
Total operating expenses
$
187,080
$
52,704
$
14,372
$
254,156
Income (loss) from operations
$
11,340
$
(4,585)
$
(14,372)
$
(7,617)
Add:
Deferred revenue fair value adjustment
(a)
439
—
—
439
Accretion on contingent consideration and
purchase liability (b)
373
226
—
599
Depreciation and amortization
19,420
8,263
—
27,683
Non-cash compensation expense (c)
9,697
4,226
2,071
15,994
Restructuring charges and transaction
costs (b)
1,189
185
1,446
2,820
Non-income tax expense adjustment (b)
250
(62)
—
188
Severance (c)
11,002
1,660
1,320
13,982
Non-recurring litigation and regulator
related expenses (b)
—
703
—
703
Loss attributable to non-controlling
interest
(201)
—
—
(201)
Other
(12)
—
—
(12)
Adjusted EBITDA
$
53,497
$
10,616
$
(9,535)
$
54,578
(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
March 31,
June 30,
September 30,
December 31,
March 31,
2020
2020
2020
2020
2021
(in millions, except accounts
and advisors data)
Platform Assets
Assets under Management (“AUM”)
$
185,065
$
215,994
$
228,905
$
263,043
$
286,039
Assets under Administration (“AUA”)
312,472
344,957
375,860
405,365
408,858
Total AUM/A
497,537
560,951
604,765
668,408
694,897
Subscription
2,875,394
3,247,400
3,498,353
3,892,814
4,132,917
Total Platform Assets
$
3,372,931
$
3,808,351
$
4,103,118
$
4,561,222
$
4,827,814
Platform Accounts
AUM
970,896
1,007,386
1,018,817
1,073,122
1,138,183
AUA
1,254,856
1,252,247
1,318,730
1,276,975
1,192,668
Total AUM/A
2,225,752
2,259,633
2,337,547
2,350,097
2,330,851
Subscription
10,090,172
10,003,156
10,639,399
11,079,048
11,453,434
Total Platform Accounts
12,315,924
12,262,789
12,976,946
13,429,145
13,784,285
Advisors
AUM/A
40,971
41,206
41,450
41,206
41,177
Subscription
62,077
62,404
63,862
65,104
65,724
Total Advisors
103,048
103,610
105,312
106,310
106,901
The following table summarizes the changes in AUM and AUA for
the three months ended March 31, 2021:
12/31/2020
Gross Sales
Redemptions
Net Flows
Market Impact
Reclass to
Subscription
3/31/2021
(in millions, except account
data)
AUM
$
263,043
$
28,324
$
(13,351)
$
14,973
$
8,023
$
—
$
286,039
AUA
405,365
30,639
(23,033)
7,606
9,216
(13,329)
408,858
Total AUM/A
$
668,408
$
58,963
$
(36,384)
$
22,579
$
17,239
$
(13,329)
$
694,897
Fee-Based Accounts
2,350,097
88,734
(107,980)
2,330,851
The above AUM/A gross sales figures include $8.3 billion in new
client conversions. The Company onboarded an additional $34.5
billion in subscription conversions during the three months ended
March 31, 2021, bringing total conversions for the quarter to $42.8
billion.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506006122/en/
Investor Relations investor.relations@envestnet.com (312)
827-3940 Media Relations mediarelations@envestnet.com
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