Revenues, adjusted EBITDA and adjusted EPS exceed guidance in Q2 2021, Raising 2021 Outlook

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, 2021.

 

 

 

Three months ended

 

 

 

Six months ended

 

 

Key Financial Metrics

 

June 30,

 

%

 

June 30,

 

%

(in millions except per share data)

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

288.7

 

 

$

235.3

 

 

23

%

 

$

563.8

 

 

$

481.9

 

 

17

%

Net income (loss)

 

$

(8.4

)

 

$

(5.5

)

 

53

%

 

$

6.6

 

 

$

(12.7

)

 

n/m

 

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

 

$

(0.15

)

 

$

(0.09

)

 

67

%

 

$

0.12

 

 

$

(0.23

)

 

n/m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues(1)

 

$

288.8

 

 

$

235.4

 

 

23

%

 

$

564.0

 

 

$

482.4

 

 

17

%

Adjusted EBITDA(1)

 

$

71.1

 

 

$

55.8

 

 

27

%

 

$

139.3

 

 

$

110.4

 

 

26

%

Adjusted net income(1)

 

$

43.5

 

 

$

31.8

 

 

37

%

 

$

85.4

 

 

$

63.0

 

 

36

%

Adjusted net income per diluted share(1)

 

$

0.67

 

 

$

0.59

 

 

14

%

 

$

1.31

 

 

$

1.16

 

 

13

%

n/m - not meaningful

“During the second quarter and first half of 2021, Envestnet again delivered strong financial results,” said Bill Crager, Chief Executive Officer.

“We are executing our investment plan, which we expect to drive consistent, accelerated growth. Additionally, we will continue to utilize our operational expertise and leverage our competitive advantage to create the ecosystem that powers the intelligent financial life,” concluded Mr. Crager.

Financial Results for the Second Quarter of 2021

Asset-based recurring revenues increased 39% from the second quarter of 2020, and represented 59% of total revenues for the second quarter of 2021 compared to 52% for the second quarter of 2020. Subscription-based recurring revenues increased 7% from the second quarter of 2020, and represented 39% of total revenues for the second quarter of 2021, compared to 45% for the second quarter of 2020. Professional services and other non-recurring revenues decreased 24% from the prior year period. Total revenues increased 23% to $288.7 million for the second quarter of 2021 from $235.3 million for the second quarter of 2020.

Total operating expenses for the second quarter of 2021 increased 20% to $277.8 million from $231.3 million in the prior year period. Cost of revenues increased 46% to $100.5 million for the second quarter of 2021 from $68.8 million for the prior year period. Compensation and benefits increased 10% to $105.5 million for the second quarter of 2021 from $95.6 million for the prior year period. Compensation and benefits were 37% of total revenues for the second quarter of 2021, compared to 41% for the prior year period. General and administration expenses increased 9% to $41.8 million for the second quarter of 2021 from $38.4 million for the prior year period. General and administrative expenses were 14% of total revenues for the second quarter of 2021, compared to 16% for the prior year period.

Income from operations was $10.9 million for the second quarter of 2021 compared to $4.0 million for the second quarter of 2020. Net loss was $8.4 million for the second quarter of 2021 compared to net loss of $5.5 million for the second quarter of 2020. Net loss per diluted share attributable to Envestnet, Inc. was $0.15 for the second quarter of 2021 compared to net loss per diluted share attributable to Envestnet, Inc. of $0.09 for the second quarter of 2020.

Adjusted revenues(1) for the second quarter of 2021 increased 23% to $288.8 million from $235.4 million for the prior year period. Adjusted EBITDA(1) for the second quarter of 2021 increased 27% to $71.1 million from $55.8 million for the prior year period. Adjusted net income(1) increased 37% for the second quarter of 2021 to $43.5 million from $31.8 million for the prior year period. Adjusted net income per diluted share(1) for the second quarter of 2021 increased 14% to $0.67 from $0.59 in the second quarter of 2020.

Balance Sheet and Liquidity

As of June 30, 2021, Envestnet had $369.5 million in cash and cash equivalents and $862.5 million in outstanding debt. The outstanding debt as of June 30, 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 June 30, 2021.

Outlook

Envestnet provided the following outlook for the third quarter ending September 30, 2021 and full year ending December 31, 2021. This outlook is based on the market value of assets as of June 30, 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

 

3Q 2021

 

FY 2021

GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Asset-based

 

$

181.0

 

 

-

 

$

182.0

 

 

 

 

 

 

 

Subscription-based

 

113.0

 

 

-

 

114.0

 

 

 

 

 

 

 

Total recurring revenues

 

$

294.0

 

 

-

 

$

296.0

 

 

 

 

 

 

 

Professional services and other revenues

 

4.0

 

 

-

 

4.5

 

 

 

 

 

 

 

Total revenues

 

$

298.0

 

 

-

 

$

300.5

 

 

$

1,168.0

 

 

-

 

$

1,174.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-based cost of revenues

 

$

101.2

 

 

-

 

$

101.7

 

 

 

 

 

 

Total cost of revenues

 

$

109.5

 

 

-

 

$

110.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

(a)

 

-

 

(a)

 

(a)

 

-

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted shares outstanding

 

 

 

65.6

 

 

 

 

 

65.6

 

 

Net income per diluted share

 

(a)

 

-

 

(a)

 

(a)

 

-

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues (1):

 

 

 

 

 

 

 

 

 

 

 

 

Asset-based

 

$

181.0

 

 

-

 

$

182.0

 

 

 

 

 

 

 

Subscription-based

 

113.0

 

 

-

 

114.0

 

 

 

 

 

 

 

Total recurring revenues

 

$

294.0

 

 

-

 

$

296.0

 

 

 

 

 

 

 

Professional services and other revenues

 

4.0

 

 

-

 

4.5

 

 

 

 

 

 

 

Total revenues

 

$

298.0

 

 

-

 

$

300.5

 

 

$

1,169.0

 

 

-

 

$

1,174.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA(1)

 

$

61.0

 

 

-

 

$

63.0

 

 

$

253.0

 

 

-

 

$

257.0

 

Adjusted net income per diluted share(1)

 

 

 

$

0.58

 

 

 

 

$

2.30

 

 

-

 

$

2.35

 

(a) Envestnet 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 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://investor.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. Nearly 108,000 advisors and more than 6,000 companies including: 17 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 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, non-recurring litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, non-recurring gain, fair market value adjustment to investment in private company, loss allocation from equity method investments and income 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, non-recurring litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, non-recurring gain, fair market value adjustment to investment in private company, loss allocation from equity method investments and income 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 9-15 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 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://investor.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 5, 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)

 

 

 

June 30,

 

December 31,

 

 

2021

 

2020

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

369,524

 

 

$

384,565

 

Fees receivable, net

 

81,037

 

 

80,064

 

Prepaid expenses and other current assets

 

40,619

 

 

40,570

 

Total current assets

 

491,180

 

 

505,199

 

 

 

 

 

 

Property and equipment, net

 

50,008

 

 

47,969

 

Internally developed software, net

 

114,770

 

 

96,501

 

Intangible assets, net

 

435,023

 

 

435,041

 

Goodwill

 

928,493

 

 

906,773

 

Operating lease right-of-use-assets, net

 

93,298

 

 

105,249

 

Other non-current assets

 

57,924

 

 

47,558

 

Total assets

 

$

2,170,696

 

 

$

2,144,290

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accrued expenses and other liabilities

 

$

174,957

 

 

$

158,548

 

Accounts payable

 

20,423

 

 

18,003

 

Operating lease liabilities

 

12,477

 

 

13,649

 

Contingent consideration

 

1,312

 

 

11,251

 

Deferred revenue

 

38,645

 

 

34,918

 

Total current liabilities

 

247,814

 

 

236,369

 

 

 

 

 

 

Long-term debt

 

846,411

 

 

756,503

 

Non-current operating lease liabilities

 

107,045

 

 

112,182

 

Deferred tax liabilities, net

 

33,576

 

 

34,740

 

Other non-current liabilities

 

18,384

 

 

28,678

 

Total liabilities

 

1,253,230

 

 

1,168,472

 

 

 

 

 

 

Equity:

 

 

 

 

Total stockholders’ equity

 

917,117

 

 

976,337

 

Non-controlling interest

 

349

 

 

(519

)

Total liabilities and equity

 

$

2,170,696

 

 

$

2,144,290

 

 

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,

 

 

2021

 

2020

 

2021

 

2020

Revenues:

 

 

 

 

 

 

 

 

Asset-based

 

$

170,075

 

 

$

122,246

 

 

$

329,450

 

 

$

257,057

 

Subscription-based

 

112,504

 

 

104,979

 

 

222,333

 

 

209,530

 

Total recurring revenues

 

282,579

 

 

227,225

 

 

551,783

 

 

466,587

 

Professional services and other revenues

 

6,159

 

 

8,088

 

 

12,060

 

 

15,265

 

Total revenues

 

288,738

 

 

235,313

 

 

563,843

 

 

481,852

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenues

 

100,494

 

 

68,849

 

 

193,363

 

 

143,782

 

Compensation and benefits

 

105,548

 

 

95,565

 

 

206,262

 

 

205,995

 

General and administration

 

41,755

 

 

38,448

 

 

78,070

 

 

79,558

 

Depreciation and amortization

 

30,010

 

 

28,443

 

 

58,402

 

 

56,126

 

Total operating expenses

 

277,807

 

 

231,305

 

 

536,097

 

 

485,461

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

10,931

 

 

4,008

 

 

27,746

 

 

(3,609

)

Other expense, net

 

(3,784

)

 

(8,173

)

 

(11,252

)

 

(9,710

)

Income (loss) before income tax provision (benefit)

 

7,147

 

 

(4,165

)

 

16,494

 

 

(13,319

)

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

15,516

 

 

1,306

 

 

9,928

 

 

(658

)

 

 

 

 

 

 

 

 

 

Net income (loss)

 

(8,369

)

 

(5,471

)

 

6,566

 

 

(12,661

)

Add: Net loss attributable to non-controlling interest

 

88

 

 

547

 

 

99

 

 

401

 

Net income (loss) attributable to Envestnet, Inc.

 

$

(8,281

)

 

$

(4,924

)

 

$

6,665

 

 

$

(12,260

)

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Basic

 

$

(0.15

)

 

$

(0.09

)

 

$

0.12

 

 

$

(0.23

)

 

 

 

 

 

 

 

 

 

Diluted

 

$

(0.15

)

 

$

(0.09

)

 

$

0.12

 

 

$

(0.23

)

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

54,440,388

 

 

53,562,850

 

 

54,325,353

 

 

53,288,741

 

 

 

 

 

 

 

 

 

 

Diluted

 

54,440,388

 

 

53,562,850

 

 

55,136,946

 

 

53,288,741

 

 

Envestnet, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Six Months Ended

 

 

June 30,

 

 

2021

 

2020

OPERATING ACTIVITIES:

 

 

 

 

Net income (loss)

 

$

6,566

 

 

$

(12,661

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

58,402

 

 

56,126

 

Provision for doubtful accounts

 

455

 

 

1,515

 

Deferred income taxes

 

8,137

 

 

(1,598

)

Non-cash compensation expense

 

31,422

 

 

29,869

 

Non-cash interest expense

 

2,906

 

 

5,907

 

Accretion on contingent consideration and purchase liability

 

575

 

 

910

 

Payments of contingent consideration

 

(2,360

)

 

 

Fair market value adjustment to contingent consideration liability

 

(140

)

 

(1,982

)

Fair market value adjustment to investment in private company

 

(758

)

 

 

Gain on acquisition of equity method investment

 

 

 

(4,230

)

Loss allocation from equity method investments

 

4,045

 

 

3,286

 

Impairment of right of use assets

 

1,110

 

 

1,426

 

Other

 

282

 

 

556

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

Fees receivables, net

 

(1,334

)

 

(8,560

)

Prepaid expenses and other current assets

 

(155

)

 

(7,756

)

Other non-current assets

 

3,665

 

 

(353

)

Accrued expenses and other liabilities

 

527

 

 

(4,484

)

Accounts payable

 

2,333

 

 

(2,130

)

Deferred revenue

 

2,789

 

 

7,236

 

Other non-current liabilities

 

692

 

 

1,946

 

Net cash provided by operating activities

 

119,159

 

 

65,023

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

Purchases of property and equipment

 

(11,357

)

 

(4,329

)

Capitalization of internally developed software

 

(31,802

)

 

(25,703

)

Investments in private companies

 

(4,549

)

 

(12,625

)

Acquisition of proprietary technology

 

(25,517

)

 

 

Acquisitions of businesses, net of cash acquired

 

(33,143

)

 

(20,257

)

Advance for technology solutions

 

(3,000

)

 

 

Net cash used in investing activities

 

(109,368

)

 

(62,914

)

 

-continued-

 

Envestnet, Inc.

Condensed Consolidated Statements of Cash Flows (continued)

(in thousands)

(unaudited)

 

 

 

Six Months Ended

 

 

June 30,

 

 

2021

 

2020

FINANCING ACTIVITIES:

 

 

 

 

Proceeds from borrowings on revolving credit facility

 

 

 

45,000

 

Payments on revolving credit facility

 

 

 

(30,000

)

Capital contributions - non-controlling shareholders

 

23

 

 

 

Payments of contingent consideration

 

(9,200

)

 

 

Proceeds from exercise of stock options

 

573

 

 

6,683

 

Taxes paid in lieu of shares issued for stock-based compensation

 

(13,020

)

 

(12,816

)

Share repurchases

 

(2,097

)

 

 

Other

 

(587

)

 

3

 

Net cash (used in) provided by financing activities

 

(24,308

)

 

8,870

 

 

 

 

 

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

(524

)

 

(1,342

)

 

 

 

 

 

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

 

(15,041

)

 

9,637

 

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD

 

384,714

 

 

82,755

 

 

 

 

 

 

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

 

$

369,673

 

 

$

92,392

 

 

(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,

 

 

2021

 

2020

Cash and cash equivalents

 

$

369,524

 

 

$

92,244

 

Restricted cash included in prepaid expenses and other current assets

 

149

 

 

 

Restricted cash included in other non-current assets

 

 

 

148

 

Total cash, cash equivalents and restricted cash

 

$

369,673

 

 

$

92,392

 

 

Reconciliation of Non-GAAP Financial Measures

(in thousands)

(unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2021

 

2020

 

2021

 

2020

Total revenues

 

$

288,738

 

 

$

235,313

 

 

$

563,843

 

 

$

481,852

 

Deferred revenue fair value adjustment (a)

 

80

 

 

77

 

 

160

 

 

516

 

Adjusted revenues

 

$

288,818

 

 

$

235,390

 

 

$

564,003

 

 

$

482,368

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(8,369

)

 

$

(5,471

)

 

$

6,566

 

 

$

(12,661

)

Add (deduct):

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment (a)

 

80

 

 

77

 

 

160

 

 

516

 

Interest income (b)

 

(197

)

 

(197

)

 

(367

)

 

(588

)

Interest expense (b)

 

4,225

 

 

6,634

 

 

8,440

 

 

13,768

 

Accretion on contingent consideration and purchase

liability (c)

 

187

 

 

311

 

 

575

 

 

910

 

Income tax provision (benefit)

 

15,516

 

 

1,306

 

 

9,928

 

 

(658

)

Depreciation and amortization

 

30,010

 

 

28,443

 

 

58,402

 

 

56,126

 

Non-cash compensation expense (d)

 

17,285

 

 

13,875

 

 

31,422

 

 

27,345

 

Restructuring charges and transaction costs (f)

 

5,028

 

 

6,648

 

 

7,812

 

 

9,468

 

Severance (e)

 

5,377

 

 

1,869

 

 

10,291

 

 

15,851

 

Fair market value adjustment on contingent consideration liability (c)

 

 

 

(1,982

)

 

(140

)

 

(1,982

)

Non-recurring litigation and regulatory related expenses (c)

 

1,938

 

 

3,517

 

 

3,647

 

 

4,220

 

Foreign currency (b)

 

(138

)

 

463

 

 

13

 

 

(31

)

Non-income tax expense adjustment (c)

 

295

 

 

(642

)

 

(271

)

 

(454

)

Non-recurring gain (b)

 

 

 

 

 

 

 

(4,230

)

Fair market value adjustment to investment in private company (b)

 

(758

)

 

 

 

(758

)

 

 

Loss allocation from equity method investments (b)

 

757

 

 

1,256

 

 

4,045

 

 

3,286

 

Income attributable to non-controlling interest

 

(175

)

 

(299

)

 

(440

)

 

(500

)

Adjusted EBITDA

 

$

71,061

 

 

$

55,808

 

 

$

139,325

 

 

$

110,386

 

(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)

All of 2021 included in compensation and benefits in the condensed consolidated statements of operations. For the three months ended June 30, 2020, $13,875 was included in compensation and benefits in the condensed consolidated statements of operations. For the six months ended June 30, 2020, $29,869 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.

(f)

For the three months ended June 30, 2021 and 2020, $2,708 and $5,569 were included within general and administrative expenses, respectively, in the condensed consolidated statements of operations. For the three months ended June 30, 2021 and 2020, $2,320 and $968 were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the three months ended June 30, 2021 and 2020, $0 and $111 were included within other expense, net, respectively, in the condensed consolidated statements of operations. For the six months ended June 30, 2021 and 2020, $4,489 and $7,493 were included within general and administrative expenses, respectively, in the condensed consolidated statements of operations. For the six months ended June 30, 2021 and 2020, $3,323 and $1,795 were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the six months ended June 30, 2021 and 2020, $0 and $180 were included within other expense, net, respectively, 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,

 

 

2021

 

2020

 

2021

 

2020

Net income (loss)

 

$

(8,369

)

 

$

(5,471

)

 

$

6,566

 

 

$

(12,661

)

Income tax provision (benefit) (a)

 

15,516

 

 

1,306

 

 

9,928

 

 

(658

)

Income (loss) before income tax provision (benefit)

 

7,147

 

 

(4,165

)

 

16,494

 

 

(13,319

)

Add (deduct):

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment (b)

 

80

 

 

77

 

 

160

 

 

516

 

Accretion on contingent consideration and purchase

liability (c)

 

187

 

 

311

 

 

575

 

 

910

 

Non-cash interest expense (d)

 

1,429

 

 

2,983

 

 

2,852

 

 

5,945

 

Cash interest - Convertible Notes (d)

 

2,480

 

 

 

 

4,960

 

 

 

Non-cash compensation expense (e)

 

17,285

 

 

13,875

 

 

31,422

 

 

27,345

 

Restructuring charges and transaction costs (h)

 

5,028

 

 

6,648

 

 

7,812

 

 

9,468

 

Severance (f)

 

5,377

 

 

1,869

 

 

10,291

 

 

15,851

 

Fair market value adjustment on contingent consideration liability (c)

 

 

 

(1,982

)

 

(140

)

 

(1,982

)

Amortization of acquired intangibles (g)

 

17,502

 

 

18,746

 

 

33,980

 

 

37,504

 

Non-recurring litigation and regulatory related expenses (c)

 

1,938

 

 

3,517

 

 

3,647

 

 

4,220

 

Foreign currency (d)

 

(138

)

 

463

 

 

13

 

 

(31

)

Non-income tax expense adjustment (c)

 

295

 

 

(642

)

 

(271

)

 

(454

)

Non-recurring gain (d)

 

 

 

 

 

 

 

(4,230

)

Fair market value adjustment to investment in private company (d)

 

(758

)

 

 

 

(758

)

 

 

Loss allocation from equity method investments (d)

 

757

 

 

1,256

 

 

4,045

 

 

3,286

 

Income attributable to non-controlling interest

 

(175

)

 

(299

)

 

(440

)

 

(500

)

Adjusted net income before income tax effect

 

58,434

 

 

42,657

 

 

114,642

 

 

84,529

 

Income tax effect (i)

 

(14,901

)

 

(10,884

)

 

(29,234

)

 

(21,554

)

Adjusted net income

 

$

43,533

 

 

$

31,773

 

 

$

85,408

 

 

$

62,975

 

 

 

 

 

 

 

 

 

 

Basic number of weighted-average shares outstanding

 

54,440,388

 

 

53,562,850

 

 

54,325,353

 

 

53,288,741

 

Effect of dilutive shares:

 

 

 

 

 

 

 

 

Options to purchase common stock

 

198,277

 

 

374,070

 

 

210,381

 

 

519,886

 

Unvested restricted stock units

 

435,023

 

 

322,140

 

 

536,186

 

 

475,990

 

Convertible notes

 

9,898,549

 

 

 

 

9,898,549

 

 

11,719

 

Warrants

 

53,648

 

 

 

 

65,026

 

 

22,714

 

Diluted number of weighted-average shares outstanding

 

65,025,885

 

 

54,259,060

 

 

65,035,495

 

 

54,319,050

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share - diluted

 

$

0.67

 

 

$

0.59

 

 

$

1.31

 

 

$

1.16

 

(a)

For the three months ended June 30, 2021 and 2020, the effective tax rate computed in accordance with GAAP equaled 217.1% and (31.4)%, respectively. For the six months ended June 30, 2021 and 2020, the effective tax rate computed in accordance with GAAP equaled 60.2% and 4.9%, 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)

All of 2021 included in compensation and benefits in the condensed consolidated statements of operations. For the three months ended June 30, 2020, $13,875 was included in compensation and benefits in the condensed consolidated statements of operations. For the six months ended June 30, 2020, $29,869 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)

For the three months ended June 30, 2021 and 2020, $2,708 and $5,569 were included within general and administrative expenses, respectively, in the condensed consolidated statements of operations. For the three months ended June 30, 2021 and 2020, $2,320 and $968 were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the three months ended June 30, 2021 and 2020, $0 and $111 were included within other expense, net, respectively, in the condensed consolidated statements of operations. For the six months ended June 30, 2021 and 2020, $4,489 and $7,493 were included within general and administrative expenses, respectively, in the condensed consolidated statements of operations. For the six months ended June 30, 2021 and 2020, $3,323 and $1,795 were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the six months ended June 30, 2021 and 2020, $0 and $180 were included within other expense, net, respectively, in the condensed consolidated statements of operations.

(i)

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, 2021 and 2020.

 

Reconciliation of Non-GAAP Financial Measures

Segment Information

(in thousands)

(unaudited)

 

 

 

Three months ended June 30, 2021

 

 

Envestnet Wealth Solutions

 

Envestnet Data & Analytics

 

Nonsegment

 

Total

Total Revenues

 

$

240,297

 

 

$

48,441

 

 

$

 

 

$

288,738

 

Deferred revenue fair value adjustment (a)

 

80

 

 

 

 

 

 

80

 

Adjusted revenues

 

$

240,377

 

 

$

48,441

 

 

$

 

 

$

288,818

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Asset-based

 

$

170,075

 

 

$

 

 

$

 

 

$

170,075

 

Subscription-based

 

66,663

 

 

45,841

 

 

 

 

112,504

 

Total recurring revenues

 

236,738

 

 

45,841

 

 

 

 

282,579

 

Professional services and other revenues

 

3,559

 

 

2,600

 

 

 

 

6,159

 

Total revenues

 

240,297

 

 

48,441

 

 

 

 

288,738

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

Asset-based

 

93,341

 

 

 

 

 

 

93,341

 

Subscription-based

 

1,294

 

 

5,733

 

 

 

 

7,027

 

Professional services and other

 

78

 

 

48

 

 

 

 

126

 

Total cost of revenues

 

94,713

 

 

5,781

 

 

 

 

100,494

 

Compensation and benefits

 

65,114

 

 

25,008

 

 

15,426

 

 

105,548

 

General and administration

 

24,884

 

 

9,427

 

 

7,444

 

 

41,755

 

Depreciation and amortization

 

23,127

 

 

6,883

 

 

 

 

30,010

 

Total operating expenses

 

$

207,838

 

 

$

47,099

 

 

$

22,870

 

 

$

277,807

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

32,459

 

 

$

1,342

 

 

$

(22,870

)

 

$

10,931

 

Add:

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment (a)

 

80

 

 

 

 

 

 

80

 

Accretion on contingent consideration and purchase liability (b)

 

168

 

 

19

 

 

 

 

187

 

Depreciation and amortization

 

23,127

 

 

6,883

 

 

 

 

30,010

 

Non-cash compensation expense (c)

 

9,590

 

 

3,183

 

 

4,512

 

 

17,285

 

Restructuring charges and transaction costs (d)

 

3,821

 

 

27

 

 

1,180

 

 

5,028

 

Non-income tax expense adjustment (b)

 

105

 

 

190

 

 

 

 

295

 

Severance (c)

 

1,096

 

 

1,687

 

 

2,594

 

 

5,377

 

Non-recurring litigation and regulatory related expenses (b)

 

 

 

1,938

 

 

 

 

1,938

 

Income attributable to non-controlling interest

 

(175

)

 

 

 

 

 

(175

)

Other

 

88

 

 

9

 

 

8

 

 

105

 

Adjusted EBITDA

 

$

70,359

 

 

$

15,278

 

 

$

(14,576

)

 

$

71,061

 

(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.

(d)

For the three months ended June 30, 2021, $2,708 was included within general and administrative expenses and $2,320 was 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, 2021

 

 

Envestnet Wealth Solutions

 

Envestnet Data & Analytics

 

Nonsegment

 

Total

Total Revenues

 

$

466,707

 

 

$

97,136

 

 

$

 

 

$

563,843

 

Deferred revenue fair value adjustment (a)

 

160

 

 

 

 

 

 

160

 

Adjusted revenues

 

$

466,867

 

 

$

97,136

 

 

$

 

 

$

564,003

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Asset-based

 

$

329,450

 

 

$

 

 

$

 

 

$

329,450

 

Subscription-based

 

130,675

 

 

91,658

 

 

 

 

222,333

 

Total recurring revenues

 

460,125

 

 

91,658

 

 

 

 

551,783

 

Professional services and other revenues

 

6,582

 

 

5,478

 

 

 

 

12,060

 

Total revenues

 

466,707

 

 

97,136

 

 

 

 

563,843

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

Asset-based

 

179,531

 

 

 

 

 

 

179,531

 

Subscription-based

 

2,507

 

 

11,124

 

 

 

 

13,631

 

Professional services and other

 

107

 

 

94

 

 

 

 

201

 

Total cost of revenues

 

182,145

 

 

11,218

 

 

 

 

193,363

 

Compensation and benefits

 

127,968

 

 

51,297

 

 

26,997

 

 

206,262

 

General and administration

 

45,583

 

 

17,943

 

 

14,544

 

 

78,070

 

Depreciation and amortization

 

44,355

 

 

14,047

 

 

 

 

58,402

 

Total operating expenses

 

$

400,051

 

 

$

94,505

 

 

$

41,541

 

 

$

536,097

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

66,656

 

 

$

2,631

 

 

$

(41,541

)

 

$

27,746

 

Add:

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment (a)

 

160

 

 

 

 

 

 

160

 

Accretion on contingent consideration and purchase liability (b)

 

510

 

 

65

 

 

 

 

575

 

Depreciation and amortization

 

44,355

 

 

14,047

 

 

 

 

58,402

 

Non-cash compensation expense (c)

 

17,419

 

 

6,024

 

 

7,979

 

 

31,422

 

Restructuring charges and transaction costs (d)

 

5,186

 

 

174

 

 

2,452

 

 

7,812

 

Non-income tax expense adjustment (b)

 

(430

)

 

159

 

 

 

 

(271

)

Severance (c)

 

4,183

 

 

3,407

 

 

2,701

 

 

10,291

 

Fair market value adjustment on contingent consideration liability (b)

 

 

 

(140

)

 

 

 

(140

)

Non-recurring litigation and regulatory related expenses (b)

 

 

 

3,647

 

 

 

 

3,647

 

Income attributable to non-controlling interest

 

(440

)

 

 

 

 

 

(440

)

Other

 

104

 

 

9

 

 

8

 

 

121

 

Adjusted EBITDA

 

$

137,703

 

 

$

30,023

 

 

$

(28,401

)

 

$

139,325

(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.

(d)

For the six months ended June 30, 2021, $4,489 was included within general and administrative expenses and $3,323 was 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, 2020

 

 

Envestnet Wealth Solutions

 

Envestnet Data & Analytics

 

Nonsegment

 

Total

Revenues

 

$

187,685

 

 

$

47,628

 

 

$

 

 

$

235,313

 

Deferred revenue fair value adjustment (a)

 

77

 

 

 

 

 

 

77

 

Adjusted revenues

 

$

187,762

 

 

$

47,628

 

 

$

 

 

$

235,390

 

 

 

 

 

 

 

 

 

 

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 (d)

 

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

 

Loss attributable to non-controlling interest

 

(17

)

 

 

 

 

 

(17

)

Other

 

(299

)

 

 

 

 

 

(299

)

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.

(d)

For the three months ended June 30, 2020, $5,569 was included within general and administrative expenses, $968 was included within compensation and benefits and $111 was included within other expense, net, 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

Revenues

 

$

386,105

 

 

$

95,747

 

 

$

 

 

$

481,852

 

Deferred revenue fair value adjustment (a)

 

516

 

 

 

 

 

 

516

 

Adjusted revenues

 

$

386,621

 

 

$

95,747

 

 

$

 

 

$

482,368

 

 

 

 

 

 

 

 

 

 

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 (d)

 

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

 

Loss 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.

(d)

For the six months ended June 30, 2020, $7,493 was included within general and administrative expenses, $1,795 was included within compensation and benefits and $180 was included within other expense, net, 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,

 

 

2020

 

2020

 

2020

 

2021

 

2021

 

 

(in millions, except accounts and advisors data)

Platform Assets

 

 

 

 

 

 

 

 

 

 

Assets under Management (“AUM”)

 

$

215,994

 

 

$

228,905

 

 

$

263,043

 

 

$

286,039

 

 

$

315,422

 

Assets under Administration (“AUA”)

 

344,957

 

 

375,860

 

 

405,365

 

 

408,858

 

 

426,416

 

Total AUM/A

 

560,951

 

 

604,765

 

 

668,408

 

 

694,897

 

 

741,838

 

Subscription

 

3,247,400

 

 

3,498,353

 

 

3,892,814

 

 

4,132,917

 

 

4,447,733

 

Total Platform Assets

 

$

3,808,351

 

 

$

4,103,118

 

 

$

4,561,222

 

 

$

4,827,814

 

 

$

5,189,571

 

Platform Accounts

 

 

 

 

 

 

 

 

 

 

AUM

 

1,007,386

 

 

1,018,817

 

 

1,073,122

 

 

1,138,183

 

 

1,209,761

 

AUA

 

1,252,247

 

 

1,318,730

 

 

1,276,975

 

 

1,192,668

 

 

1,163,991

 

Total AUM/A

 

2,259,633

 

 

2,337,547

 

 

2,350,097

 

 

2,330,851

 

 

2,373,752

 

Subscription

 

10,003,156

 

 

10,639,399

 

 

11,079,048

 

 

11,453,434

 

 

11,712,573

 

Total Platform Accounts

 

12,262,789

 

 

12,976,946

 

 

13,429,145

 

 

13,784,285

 

 

14,086,325

 

Advisors

 

 

 

 

 

 

 

 

 

 

AUM/A

 

41,206

 

 

41,450

 

 

41,206

 

 

41,177

 

 

41,259

 

Subscription

 

62,404

 

 

63,862

 

 

65,104

 

 

65,724

 

 

66,597

 

Total Advisors

 

103,610

 

 

105,312

 

 

106,310

 

 

106,901

 

 

107,856

 

The following table summarizes the changes in AUM and AUA for the three months ended June 30, 2021:

 

 

3/31/2021

 

Gross

Sales

 

Redemptions

 

Net

Flows

 

Market Impact

 

6/30/2021

 

 

(in millions, except account data)

AUM

 

$

286,039

 

 

$

27,431

 

 

$

(12,299

)

 

$

15,132

 

 

$

14,251

 

 

$

315,422

 

AUA

 

408,858

 

 

22,785

 

 

(23,688

)

 

(903

)

 

18,461

 

 

426,416

 

Total AUM/A

 

$

694,897

 

 

$

50,216

 

 

$

(35,987

)

 

$

14,229

 

 

$

32,712

 

 

$

741,838

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fee-Based Accounts

 

2,330,851

 

 

 

 

 

 

42,901

 

 

 

 

2,373,752

 

The above AUM/A gross sales figures include $9.3 billion in new client conversions. The Company onboarded an additional $82.8 billion in subscription conversions during the three months ended June 30, 2021, bringing total conversions for the quarter to $92.1 billion.

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

Media Relations mediarelations@envestnet.com

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