Envestnet Reports Third Quarter 2024 Financial Results
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Three months ended |
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Nine months ended |
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Key Financial Metrics |
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September 30, |
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% |
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September 30, |
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% |
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(in millions, except per share data) |
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2024 |
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2023 |
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Change |
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2024 |
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2023 |
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Change |
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GAAP: |
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Total revenue |
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$ |
345.9 |
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$ |
316.8 |
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|
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$ |
1,019.2 |
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$ |
928.0 |
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Net income (loss) attributable to Envestnet, Inc. |
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$ |
(1.7 |
) |
|
$ |
7.1 |
|
(123)% |
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$ |
(78.3 |
) |
|
$ |
(55.6 |
) |
|
(41)% |
Net income (loss) attributable to Envestnet, Inc. per diluted share |
|
$ |
(0.03 |
) |
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$ |
0.13 |
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(123)% |
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$ |
(1.42 |
) |
|
$ |
(1.02 |
) |
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(39)% |
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Non-GAAP: |
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Adjusted EBITDA(1) |
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$ |
80.5 |
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$ |
65.3 |
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$ |
228.7 |
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$ |
175.4 |
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Adjusted net income(1) |
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$ |
46.5 |
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$ |
36.6 |
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|
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$ |
122.3 |
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$ |
97.2 |
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Adjusted net income per diluted share(1) |
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$ |
0.70 |
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|
$ |
0.56 |
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|
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$ |
1.84 |
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$ |
1.47 |
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Free cash flow(1) |
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$ |
76.2 |
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$ |
9.4 |
|
* |
|
$ |
123.3 |
|
|
$ |
(15.6 |
) |
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* |
__________________________________________________
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Financial Results for the Third Quarter 2024 Compared to the Third Quarter 2023
Total revenue increased
Total operating expenses increased
Income from operations was
Adjusted EBITDA(1) increased
Balance Sheet and Liquidity
As of September 30, 2024, Envestnet had
Segment Reporting
On October 1, 2023, the Company changed the composition of its reportable segments to reflect the way that the Company's chief operating decision maker reviews the operating results, assesses performance and allocates resources. All segment information presented within this Exhibit 99.1 for the three and nine months ended September 30, 2024 is presented in conjunction with the current organizational structure, with prior periods adjusted accordingly.
Correction of Immaterial Errors
In July 2024, the Company identified that as a result of a clerical error an event of default had occurred pursuant to the indenture under which the Convertible Notes due 2025 had been issued, and therefore the Convertible Notes due 2025 should have been classified as current debt instead of as non-current debt as previously recorded in the condensed consolidated balance sheets. Upon identification, the Company promptly cured the technical default. Upon analysis, the Company concluded that the classification error was immaterial in prior period financial statements as the event of default was caused by a clerical error and was not reflective of noncompliance with any factors impacting the Company’s liquidity or financial covenants. If the Company had identified the technical default in the prior period and classified the debt as current, the matter would have been disclosed and promptly resolved. Therefore, amendment of previously filed reports was not required. However, the Company corrected this immaterial error in the prior year reported within this press release.
During the fourth quarter of 2023, the Company identified that the arrangement with a third-party for the use of cloud hosted virtual servers which was previously accounted for as a finance lease transaction and included as a component of property and equipment, net in the condensed consolidated balance sheets should have been recognized as a prepayment included within prepaid expenses and other current assets and other assets in the condensed consolidated balance sheets. The Company concluded that the classification of these transactions was immaterial in prior period financial statements and that amendment of previously filed reports was not required. However, the Company corrected this immaterial error in the prior periods reported within this press release.
About Envestnet
Envestnet, Inc. (NYSE: ENV) is transforming the way financial advice and insight are delivered. Our mission is to empower financial advisors and service providers with innovative technology, solutions and intelligence. Envestnet's clients include more than 111,000 advisors, 17 of the 20 largest
For more information on Envestnet, please visit http://www.envestnet.com and follow us on Twitter @ENVintel.
(1) Non-GAAP Financial Measures
“Adjusted EBITDA” represents net income (loss) before deferred revenue fair value adjustment, interest income, interest expense, income tax provision (benefit), depreciation and amortization, goodwill impairment, gain on deconsolidation, non-cash compensation expense, restructuring charges and transaction costs, merger related costs, Convertible Promissory Note impairment, severance expense, litigation, regulatory and other governance related expenses, foreign currency, non-income tax expense adjustment, fair market value adjustments to investments in private companies, (gain) loss from equity method investments and loss attributable to non-controlling interest.
“Adjusted net income” represents net income (loss) before income tax provision (benefit), gain (loss) from equity method investments, deferred revenue fair value adjustment, non-cash interest expense, cash interest on our Convertible Notes, amortization of acquired intangibles, goodwill impairment, gain on deconsolidation, non-cash compensation expense, restructuring charges and transaction costs, merger related costs, Convertible Promissory Note impairment, severance expense, litigation, regulatory and other governance related expenses, foreign currency, non-income tax expense adjustment, fair market value adjustments to investments in private companies and 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. For purposes of the adjusted net income per share calculation, we assume all potential shares to be issued in connection with our convertible notes are dilutive.
"Free cash flow" represents net cash provided by (used in) operating activities less purchases of property and equipment and capitalization of internally developed software.
For further information see reconciliations of Non-GAAP Financial Measures on pages 8-14 of this press release, and the section entitled "Non-GAAP Financial Measures" in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) which are available on the SEC’s website at http://www.sec.gov or our Investor Relations website at http://investor.envestnet.com/. 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 revenue, net income (loss), net income (loss) per share or net cash provided by (used in) operating activities determined in accordance with GAAP.
Cautionary Statement Regarding Forward-Looking Statements
The forward-looking statements made in this press release and its attachments concerning our strategic and operational plans and growth strategy are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition, any statements that refer to our pending merger with affiliates of vehicles managed or advised by Bain Capital Private Equity, LP. (the "Merger"), projections of our future financial performance, our anticipated growth and trends in our business and other characteristics of future events or circumstances are forward-looking statements. These statements involve risks and uncertainties and our 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, the risk that the Merger may not be completed on the anticipated terms in a timely manner or at all, which may adversely affect our business and the price of our common stock; the failure to satisfy any of the conditions to the consummation of the Merger; the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the merger agreement, including in circumstances requiring us to pay a termination fee; the effect of the announcement or pendency of the Merger on our business relationships, operating results and business relationships, operating results and business generally; risks that the Merger disrupts our current plans and operations (including the ability of certain customers to terminate or amend contracts upon a change of control); our ability to retain, hire and integrate skilled personnel, including our senior management team and maintain relationships with key business partners and customers, and others with whom we do business, in light of the Merger; risks related to diverting management's attention from our ongoing business operations; unexpected costs, charges or expenses resulting from the Merger; the ability to obtain the necessary financing arrangements set forth in the commitment letters received in connection with the Merger; potential litigation relating to the Merger that could be instituted against the parties to the merger agreement or their respective directors, managers or officers; the effects of any outcomes related thereto; certain restrictions during the pendency of the Merger that may impact our ability to pursue certain business opportunities or strategic transactions; uncertainty as to timing of completion of the Merger; risks that the benefits of the Merger are not realized when and as expected; adverse economic or global market conditions, including periods of rising inflation and market interest rates, and governmental responses to such conditions; the conflicts in the
Envestnet, Inc.
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September 30, |
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December 31, |
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2024 |
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2023 |
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Assets |
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|
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Current assets: |
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|
|
|
||
Cash and cash equivalents |
|
$ |
193,356 |
|
$ |
91,378 |
Fees receivable, net |
|
|
110,098 |
|
|
120,958 |
Prepaid expenses and other current assets |
|
|
59,570 |
|
|
51,472 |
Total current assets |
|
|
363,024 |
|
|
263,808 |
Property and equipment, net |
|
|
41,632 |
|
|
48,223 |
Internally developed software, net |
|
|
207,311 |
|
|
224,713 |
Intangible assets, net |
|
|
301,426 |
|
|
338,068 |
Goodwill |
|
|
690,885 |
|
|
806,563 |
Operating lease right-of-use assets, net |
|
|
63,600 |
|
|
69,154 |
Investments in unconsolidated entities |
|
|
93,378 |
|
|
56,292 |
Other assets |
|
|
67,448 |
|
|
70,431 |
Total assets |
|
$ |
1,828,704 |
|
$ |
1,877,252 |
|
|
|
|
|
||
Liabilities and equity |
|
|
|
|
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Current liabilities: |
|
|
|
|
||
Accounts payable, accrued expenses and other current liabilities |
|
$ |
261,464 |
|
$ |
241,424 |
Operating lease liabilities |
|
|
11,768 |
|
|
12,909 |
Deferred revenue |
|
|
28,732 |
|
|
38,201 |
Current portion of debt |
|
|
315,896 |
|
|
314,532 |
Total current liabilities |
|
|
617,860 |
|
|
607,066 |
Debt, net of current portion |
|
|
564,429 |
|
|
562,080 |
Operating lease liabilities, net of current portion |
|
|
93,115 |
|
|
100,830 |
Deferred tax liabilities, net |
|
|
15,169 |
|
|
16,568 |
Other liabilities |
|
|
11,518 |
|
|
16,202 |
Total liabilities |
|
|
1,302,091 |
|
|
1,302,746 |
|
|
|
|
|
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Equity: |
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|
|
|
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Total stockholders’ equity attributable to Envestnet, Inc. |
|
|
526,613 |
|
|
568,191 |
Non-controlling interest |
|
|
— |
|
|
6,315 |
Total liabilities and equity |
|
$ |
1,828,704 |
|
$ |
1,877,252 |
Envestnet, Inc.
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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|
2024 |
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2023 |
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|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
$ |
224,980 |
|
|
$ |
193,901 |
|
|
$ |
647,081 |
|
|
$ |
556,595 |
|
Subscription-based |
|
|
115,402 |
|
|
|
114,939 |
|
|
|
350,852 |
|
|
|
346,977 |
|
Total recurring revenue |
|
|
340,382 |
|
|
|
308,840 |
|
|
|
997,933 |
|
|
|
903,572 |
|
Professional services and other revenue |
|
|
5,567 |
|
|
|
8,007 |
|
|
|
21,239 |
|
|
|
24,416 |
|
Total revenue |
|
|
345,949 |
|
|
|
316,847 |
|
|
|
1,019,172 |
|
|
|
927,988 |
|
|
|
|
|
|
|
|
|
|
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Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Direct expense |
|
|
136,488 |
|
|
|
120,421 |
|
|
|
407,472 |
|
|
|
354,309 |
|
Employee compensation |
|
|
103,487 |
|
|
|
113,334 |
|
|
|
311,205 |
|
|
|
344,646 |
|
General and administrative |
|
|
63,438 |
|
|
|
50,091 |
|
|
|
168,427 |
|
|
|
158,816 |
|
Depreciation and amortization |
|
|
35,530 |
|
|
|
32,400 |
|
|
|
115,155 |
|
|
|
95,985 |
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
96,269 |
|
|
|
— |
|
Gain on deconsolidation |
|
|
— |
|
|
|
— |
|
|
|
(19,523 |
) |
|
|
— |
|
Total operating expenses |
|
|
338,943 |
|
|
|
316,246 |
|
|
|
1,079,005 |
|
|
|
953,756 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
|
7,006 |
|
|
|
601 |
|
|
|
(59,833 |
) |
|
|
(25,768 |
) |
Other expense, net |
|
|
(4,277 |
) |
|
|
(2,001 |
) |
|
|
(13,446 |
) |
|
|
(12,012 |
) |
Income (loss) before income tax provision (benefit) and equity method investments |
|
|
2,729 |
|
|
|
(1,400 |
) |
|
|
(73,279 |
) |
|
|
(37,780 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Income tax provision (benefit) |
|
|
2,864 |
|
|
|
(8,824 |
) |
|
|
3,717 |
|
|
|
15,363 |
|
Loss from equity method investments |
|
|
(1,526 |
) |
|
|
(2,368 |
) |
|
|
(3,327 |
) |
|
|
(7,694 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
|
(1,661 |
) |
|
|
5,056 |
|
|
|
(80,323 |
) |
|
|
(60,837 |
) |
Add: Net loss attributable to non-controlling interest |
|
|
— |
|
|
|
2,035 |
|
|
|
1,974 |
|
|
|
5,284 |
|
Net income (loss) attributable to Envestnet, Inc. |
|
$ |
(1,661 |
) |
|
$ |
7,091 |
|
|
$ |
(78,349 |
) |
|
$ |
(55,553 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Envestnet, Inc. per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.03 |
) |
|
$ |
0.13 |
|
|
$ |
(1.42 |
) |
|
$ |
(1.02 |
) |
Diluted |
|
$ |
(0.03 |
) |
|
$ |
0.13 |
|
|
$ |
(1.42 |
) |
|
$ |
(1.02 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
55,273,324 |
|
|
|
54,562,270 |
|
|
|
55,100,239 |
|
|
|
54,380,231 |
|
Diluted |
|
|
55,273,324 |
|
|
|
54,970,616 |
|
|
|
55,100,239 |
|
|
|
54,380,231 |
|
Envestnet, Inc.
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Nine Months Ended |
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|
September 30, |
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|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
||||
Net loss |
|
$ |
(80,323 |
) |
|
$ |
(60,837 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
115,155 |
|
|
|
95,985 |
|
Non-cash compensation expense |
|
|
53,204 |
|
|
|
58,141 |
|
Non-cash interest expense |
|
|
4,237 |
|
|
|
4,258 |
|
Non-cash goodwill impairment |
|
|
96,269 |
|
|
|
— |
|
Non-cash gain on deconsolidation |
|
|
(19,523 |
) |
|
|
— |
|
Non-cash Convertible Promissory Note impairment |
|
|
3,700 |
|
|
|
— |
|
Loss from equity method investments |
|
|
3,327 |
|
|
|
7,694 |
|
Fair market value adjustments to investments in private companies |
|
|
1,508 |
|
|
|
(2,804 |
) |
Lease related impairments |
|
|
689 |
|
|
|
2,483 |
|
Other |
|
|
(1,173 |
) |
|
|
(303 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Fees receivable, net |
|
|
6,578 |
|
|
|
(9,621 |
) |
Prepaid expenses and other assets |
|
|
(7,944 |
) |
|
|
(17,534 |
) |
Accounts payable, accrued expenses and other liabilities |
|
|
14,218 |
|
|
|
278 |
|
Deferred revenue |
|
|
(3,513 |
) |
|
|
(3,974 |
) |
Net cash provided by operating activities |
|
|
186,409 |
|
|
|
73,766 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(5,939 |
) |
|
|
(18,275 |
) |
Capitalization of internally developed software |
|
|
(57,127 |
) |
|
|
(71,117 |
) |
Deconsolidation of non-controlling interest |
|
|
(11,073 |
) |
|
|
— |
|
Investments in private companies |
|
|
(3,055 |
) |
|
|
(4,175 |
) |
Acquisition of proprietary technology |
|
|
(4,481 |
) |
|
|
(12,000 |
) |
Issuance of loan receivable to private company |
|
|
— |
|
|
|
(20,000 |
) |
Other |
|
|
— |
|
|
|
400 |
|
Net cash used in investing activities |
|
|
(81,675 |
) |
|
|
(125,167 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from borrowings on Revolving Credit Facility |
|
|
— |
|
|
|
55,000 |
|
Payments related to Revolving Credit Facility |
|
|
— |
|
|
|
(55,000 |
) |
Payments related to Convertible Notes |
|
|
— |
|
|
|
(45,000 |
) |
Proceeds from exercise of stock options |
|
|
1,081 |
|
|
|
839 |
|
Payments related to tax withholdings for stock-based compensation |
|
|
(15,847 |
) |
|
|
(17,004 |
) |
Payments related to share repurchases |
|
|
— |
|
|
|
(9,289 |
) |
Proceeds from capital contributions received by non-controlling interest |
|
|
12,012 |
|
|
|
— |
|
Purchase of non-controlling units from third-party shareholders |
|
|
— |
|
|
|
(1,008 |
) |
Other |
|
|
4 |
|
|
|
4 |
|
Net cash used in financing activities |
|
|
(2,750 |
) |
|
|
(71,458 |
) |
Effect of exchange rate on changes on cash and cash equivalents |
|
|
(6 |
) |
|
|
3,897 |
|
Net change in cash and cash equivalents |
|
|
101,978 |
|
|
|
(118,962 |
) |
Cash and cash equivalents, beginning of period |
|
|
91,378 |
|
|
|
162,173 |
|
Cash and cash equivalents, end of period |
|
$ |
193,356 |
|
|
$ |
43,211 |
|
Envestnet, Inc.
|
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
|
$ |
(1,661 |
) |
|
$ |
5,056 |
|
|
$ |
(80,323 |
) |
|
$ |
(60,837 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||
Deferred revenue fair value adjustment (a) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
69 |
|
Interest income (b) |
|
|
(3,243 |
) |
|
|
(1,553 |
) |
|
|
(7,814 |
) |
|
|
(4,567 |
) |
Interest expense (b) |
|
|
7,404 |
|
|
|
6,202 |
|
|
|
19,590 |
|
|
|
19,053 |
|
Income tax provision (benefit) |
|
|
2,864 |
|
|
|
(8,824 |
) |
|
|
3,717 |
|
|
|
15,363 |
|
Depreciation and amortization |
|
|
35,530 |
|
|
|
32,400 |
|
|
|
115,155 |
|
|
|
95,985 |
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
96,269 |
|
|
|
— |
|
Gain on deconsolidation |
|
|
— |
|
|
|
— |
|
|
|
(19,523 |
) |
|
|
— |
|
Non-cash compensation expense (d) |
|
|
16,484 |
|
|
|
17,298 |
|
|
|
53,204 |
|
|
|
58,141 |
|
Restructuring charges and transaction costs (e) |
|
|
4,002 |
|
|
|
1,695 |
|
|
|
9,368 |
|
|
|
12,366 |
|
Merger related costs (c) |
|
|
9,021 |
|
|
|
— |
|
|
|
14,116 |
|
|
|
— |
|
Convertible Promissory Note impairment (c) |
|
|
3,700 |
|
|
|
— |
|
|
|
3,700 |
|
|
|
— |
|
Severance expense (d) |
|
|
3,508 |
|
|
|
11,482 |
|
|
|
7,602 |
|
|
|
25,904 |
|
Litigation, regulatory and other governance related expenses (c) |
|
|
1,253 |
|
|
|
604 |
|
|
|
7,561 |
|
|
|
5,823 |
|
Foreign currency (b) |
|
|
116 |
|
|
|
223 |
|
|
|
162 |
|
|
|
330 |
|
Non-income tax expense adjustment (c) |
|
|
37 |
|
|
|
(26 |
) |
|
|
(51 |
) |
|
|
(224 |
) |
Fair market value adjustments to investments in private companies (b) |
|
|
— |
|
|
|
(2,871 |
) |
|
|
1,508 |
|
|
|
(2,804 |
) |
Loss from equity method investments |
|
|
1,526 |
|
|
|
2,368 |
|
|
|
3,327 |
|
|
|
7,694 |
|
Loss attributable to non-controlling interest |
|
|
— |
|
|
|
1,277 |
|
|
|
1,160 |
|
|
|
3,082 |
|
Adjusted EBITDA |
|
$ |
80,541 |
|
|
$ |
65,331 |
|
|
$ |
228,728 |
|
|
$ |
175,378 |
|
__________________________________________________________ |
||
| (a) | Included within subscription-based revenue 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 expense in the condensed consolidated statements of operations. |
|
| (d) | Included within employee compensation expense in the condensed consolidated statements of operations. |
|
| (e) |
For the three months ended September 30, 2024 and 2023, |
|
Envestnet, Inc.
|
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
|
$ |
(1,661 |
) |
|
$ |
5,056 |
|
|
$ |
(80,323 |
) |
|
$ |
(60,837 |
) |
Income tax provision (benefit) (a) |
|
|
2,864 |
|
|
|
(8,824 |
) |
|
|
3,717 |
|
|
|
15,363 |
|
Loss from equity method investments |
|
|
(1,526 |
) |
|
|
(2,368 |
) |
|
|
(3,327 |
) |
|
|
(7,694 |
) |
Income (loss) before income tax provision (benefit) and equity method investments |
|
|
2,729 |
|
|
|
(1,400 |
) |
|
|
(73,279 |
) |
|
|
(37,780 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||
Deferred revenue fair value adjustment (b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
69 |
|
Non-cash interest expense (d) |
|
|
1,420 |
|
|
|
1,389 |
|
|
|
4,237 |
|
|
|
4,258 |
|
Cash interest - Convertible Notes (d) |
|
|
5,664 |
|
|
|
4,368 |
|
|
|
14,402 |
|
|
|
13,476 |
|
Amortization of acquired intangibles (e) |
|
|
14,542 |
|
|
|
15,124 |
|
|
|
43,741 |
|
|
|
47,784 |
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
96,269 |
|
|
|
— |
|
Gain on deconsolidation |
|
|
— |
|
|
|
— |
|
|
|
(19,523 |
) |
|
|
— |
|
Non-cash compensation expense (f) |
|
|
16,484 |
|
|
|
17,298 |
|
|
|
53,204 |
|
|
|
58,141 |
|
Restructuring charges and transaction costs (g) |
|
|
4,002 |
|
|
|
1,695 |
|
|
|
9,368 |
|
|
|
12,366 |
|
Merger related costs (c) |
|
|
9,021 |
|
|
|
— |
|
|
|
14,116 |
|
|
|
— |
|
Convertible Promissory Note impairment (c) |
|
|
3,700 |
|
|
|
— |
|
|
|
3,700 |
|
|
|
— |
|
Severance expense (f) |
|
|
3,508 |
|
|
|
11,482 |
|
|
|
7,602 |
|
|
|
25,904 |
|
Litigation, regulatory and other governance related expenses (c) |
|
|
1,253 |
|
|
|
604 |
|
|
|
7,561 |
|
|
|
5,823 |
|
Foreign currency (d) |
|
|
116 |
|
|
|
223 |
|
|
|
162 |
|
|
|
330 |
|
Non-income tax expense adjustment (c) |
|
|
37 |
|
|
|
(26 |
) |
|
|
(51 |
) |
|
|
(224 |
) |
Fair market value adjustments to investments in private companies (d) |
|
|
— |
|
|
|
(2,871 |
) |
|
|
1,508 |
|
|
|
(2,804 |
) |
Loss attributable to non-controlling interest |
|
|
— |
|
|
|
1,277 |
|
|
|
1,160 |
|
|
|
3,082 |
|
Adjusted net income before income tax effect |
|
|
62,476 |
|
|
|
49,163 |
|
|
|
164,177 |
|
|
|
130,425 |
|
Income tax effect (h) |
|
|
(15,931 |
) |
|
|
(12,536 |
) |
|
|
(41,865 |
) |
|
|
(33,258 |
) |
Adjusted net income |
|
$ |
46,545 |
|
|
$ |
36,627 |
|
|
$ |
122,312 |
|
|
$ |
97,167 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic number of weighted average shares outstanding |
|
|
55,273,324 |
|
|
|
54,562,270 |
|
|
|
55,100,239 |
|
|
|
54,380,231 |
|
Effect of dilutive shares: |
|
|
|
|
|
|
|
|
||||||||
Convertible Notes |
|
|
10,811,884 |
|
|
|
10,811,884 |
|
|
|
10,811,884 |
|
|
|
11,176,254 |
|
Non-vested RSUs and PSUs |
|
|
660,528 |
|
|
|
361,982 |
|
|
|
607,653 |
|
|
|
438,520 |
|
Options to purchase common stock |
|
|
41,701 |
|
|
|
46,364 |
|
|
|
40,127 |
|
|
|
64,507 |
|
Diluted number of weighted average shares outstanding |
|
|
66,787,437 |
|
|
|
65,782,500 |
|
|
|
66,559,903 |
|
|
|
66,059,512 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net income per diluted share |
|
$ |
0.70 |
|
|
$ |
0.56 |
|
|
$ |
1.84 |
|
|
$ |
1.47 |
|
__________________________________________________________ |
||
(a) |
For the three months ended September 30, 2024 and 2023, the effective tax rate computed in accordance with GAAP equaled |
|
(b) |
Included within subscription-based revenue in the condensed consolidated statements of operations. |
|
(c) |
Included within general and administrative expense in the condensed consolidated statements of operations. |
|
(d) |
Included within other expense, net in the condensed consolidated statements of operations. |
|
(e) |
Included within depreciation and amortization expense in the condensed consolidated statements of operations. |
|
(f) |
Included within employee compensation expense in the condensed consolidated statements of operations. |
|
(g) |
For the three months ended September 30, 2024 and 2023, |
|
(h) |
An estimated normalized tax rate of |
|
Envestnet, Inc.
|
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
|
$ |
95,355 |
|
|
$ |
35,290 |
|
|
$ |
186,409 |
|
|
$ |
73,766 |
|
Less: Purchases of property and equipment |
|
|
(767 |
) |
|
|
(1,540 |
) |
|
|
(5,939 |
) |
|
|
(18,275 |
) |
Less: Capitalization of internally developed software |
|
|
(18,376 |
) |
|
|
(24,316 |
) |
|
|
(57,127 |
) |
|
|
(71,117 |
) |
Free cash flow |
|
$ |
76,212 |
|
|
$ |
9,434 |
|
|
$ |
123,343 |
|
|
$ |
(15,626 |
) |
Envestnet, Inc.
|
||||||||||||||||
|
|
Three Months Ended September 30, 2024 |
||||||||||||||
|
|
Envestnet
|
|
Envestnet Data
|
|
Nonsegment |
|
Total |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
$ |
224,980 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
224,980 |
|
Subscription-based |
|
|
82,717 |
|
|
|
32,685 |
|
|
|
— |
|
|
|
115,402 |
|
Total recurring revenue |
|
|
307,697 |
|
|
|
32,685 |
|
|
|
— |
|
|
|
340,382 |
|
Professional services and other revenue |
|
|
3,826 |
|
|
|
1,741 |
|
|
|
— |
|
|
|
5,567 |
|
Total revenue |
|
|
311,523 |
|
|
|
34,426 |
|
|
|
— |
|
|
|
345,949 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Direct expense |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
|
127,979 |
|
|
|
— |
|
|
|
— |
|
|
|
127,979 |
|
Subscription-based |
|
|
1,513 |
|
|
|
7,084 |
|
|
|
— |
|
|
|
8,597 |
|
Professional services and other |
|
|
(88 |
) |
|
|
— |
|
|
|
— |
|
|
|
(88 |
) |
Total direct expense |
|
|
129,404 |
|
|
|
7,084 |
|
|
|
— |
|
|
|
136,488 |
|
Employee compensation |
|
|
76,350 |
|
|
|
11,468 |
|
|
|
15,669 |
|
|
|
103,487 |
|
General and administrative |
|
|
28,034 |
|
|
|
15,275 |
|
|
|
20,129 |
|
|
|
63,438 |
|
Depreciation and amortization |
|
|
27,425 |
|
|
|
8,105 |
|
|
|
— |
|
|
|
35,530 |
|
Total operating expenses |
|
|
261,213 |
|
|
|
41,932 |
|
|
|
35,798 |
|
|
|
338,943 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
|
50,310 |
|
|
|
(7,506 |
) |
|
|
(35,798 |
) |
|
|
7,006 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
27,425 |
|
|
|
8,105 |
|
|
|
— |
|
|
|
35,530 |
|
Non-cash compensation expense (b) |
|
|
11,048 |
|
|
|
1,823 |
|
|
|
3,613 |
|
|
|
16,484 |
|
Restructuring charges and transaction costs (c) |
|
|
2,738 |
|
|
|
17 |
|
|
|
1,247 |
|
|
|
4,002 |
|
Merger related costs (a) |
|
|
— |
|
|
|
— |
|
|
|
9,021 |
|
|
|
9,021 |
|
Convertible Promissory Note impairment (a) |
|
|
— |
|
|
|
3,700 |
|
|
|
— |
|
|
|
3,700 |
|
Severance expense (b) |
|
|
725 |
|
|
|
— |
|
|
|
2,783 |
|
|
|
3,508 |
|
Litigation, regulatory and other governance related expenses (a) |
|
|
— |
|
|
|
1,253 |
|
|
|
— |
|
|
|
1,253 |
|
Non-income tax expense adjustment (a) |
|
|
37 |
|
|
|
— |
|
|
|
— |
|
|
|
37 |
|
Adjusted EBITDA |
|
$ |
92,283 |
|
|
$ |
7,392 |
|
|
$ |
(19,134 |
) |
|
$ |
80,541 |
|
__________________________________________________________ |
||
| (a) | Included within general and administrative expense in the condensed consolidated statements of operations. |
|
| (b) | Included within employee compensation expense in the condensed consolidated statements of operations. |
|
| (c) |
|
|
Envestnet, Inc.
|
||||||||||||||||
|
|
Nine Months Ended September 30, 2024 |
||||||||||||||
|
|
Envestnet
|
|
Envestnet Data
|
|
Nonsegment |
|
Total |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
$ |
647,081 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
647,081 |
|
Subscription-based |
|
|
251,619 |
|
|
|
99,233 |
|
|
|
— |
|
|
|
350,852 |
|
Total recurring revenue |
|
|
898,700 |
|
|
|
99,233 |
|
|
|
— |
|
|
|
997,933 |
|
Professional services and other revenue |
|
|
14,741 |
|
|
|
6,498 |
|
|
|
— |
|
|
|
21,239 |
|
Total revenue |
|
|
913,441 |
|
|
|
105,731 |
|
|
|
— |
|
|
|
1,019,172 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Direct expense: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
|
376,498 |
|
|
|
— |
|
|
|
— |
|
|
|
376,498 |
|
Subscription-based |
|
|
4,418 |
|
|
|
21,057 |
|
|
|
— |
|
|
|
25,475 |
|
Professional services and other |
|
|
5,499 |
|
|
|
— |
|
|
|
— |
|
|
|
5,499 |
|
Total direct expense |
|
|
386,415 |
|
|
|
21,057 |
|
|
|
— |
|
|
|
407,472 |
|
Employee compensation |
|
|
228,756 |
|
|
|
35,032 |
|
|
|
47,417 |
|
|
|
311,205 |
|
General and administrative |
|
|
82,764 |
|
|
|
45,859 |
|
|
|
39,804 |
|
|
|
168,427 |
|
Depreciation and amortization |
|
|
92,618 |
|
|
|
22,537 |
|
|
|
— |
|
|
|
115,155 |
|
Goodwill impairment |
|
|
— |
|
|
|
96,269 |
|
|
|
— |
|
|
|
96,269 |
|
Gain on deconsolidation |
|
|
(19,523 |
) |
|
|
— |
|
|
|
— |
|
|
|
(19,523 |
) |
Total operating expenses |
|
|
771,030 |
|
|
|
220,754 |
|
|
|
87,221 |
|
|
|
1,079,005 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
|
142,411 |
|
|
|
(115,023 |
) |
|
|
(87,221 |
) |
|
|
(59,833 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
92,618 |
|
|
|
22,537 |
|
|
|
— |
|
|
|
115,155 |
|
Goodwill impairment |
|
|
— |
|
|
|
96,269 |
|
|
|
— |
|
|
|
96,269 |
|
Gain on deconsolidation |
|
|
(19,523 |
) |
|
|
— |
|
|
|
— |
|
|
|
(19,523 |
) |
Non-cash compensation expense (b) |
|
|
33,795 |
|
|
|
5,591 |
|
|
|
13,818 |
|
|
|
53,204 |
|
Restructuring charges and transaction costs (c) |
|
|
4,844 |
|
|
|
756 |
|
|
|
3,768 |
|
|
|
9,368 |
|
Merger related costs (a) |
|
|
— |
|
|
|
— |
|
|
|
14,116 |
|
|
|
14,116 |
|
Convertible Promissory Note impairment (a) |
|
|
— |
|
|
|
3,700 |
|
|
|
— |
|
|
|
3,700 |
|
Severance expense (b) |
|
|
3,161 |
|
|
|
13 |
|
|
|
4,428 |
|
|
|
7,602 |
|
Litigation, regulatory and other governance related expenses (a) |
|
|
— |
|
|
|
7,561 |
|
|
|
— |
|
|
|
7,561 |
|
Non-income tax expense adjustment (a) |
|
|
(51 |
) |
|
|
— |
|
|
|
— |
|
|
|
(51 |
) |
Loss attributable to non-controlling interest |
|
|
1,160 |
|
|
|
— |
|
|
|
— |
|
|
|
1,160 |
|
Adjusted EBITDA |
|
$ |
258,415 |
|
|
$ |
21,404 |
|
|
$ |
(51,091 |
) |
|
$ |
228,728 |
|
__________________________________________________________ |
||
| (a) | Included within general and administrative expense in the condensed consolidated statements of operations. |
|
| (b) | Included within employee compensation expense in the condensed consolidated statements of operations. |
|
| (c) |
|
|
Envestnet, Inc.
|
||||||||||||||||
|
|
Three Months Ended September 30, 2023 |
||||||||||||||
|
|
Envestnet Wealth
|
|
Envestnet Data
|
|
Nonsegment |
|
Total |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
$ |
193,901 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
193,901 |
|
Subscription-based |
|
|
81,000 |
|
|
|
33,939 |
|
|
|
— |
|
|
|
114,939 |
|
Total recurring revenue |
|
|
274,901 |
|
|
|
33,939 |
|
|
|
— |
|
|
|
308,840 |
|
Professional services and other revenue |
|
|
4,342 |
|
|
|
3,665 |
|
|
|
— |
|
|
|
8,007 |
|
Total revenue |
|
|
279,243 |
|
|
|
37,604 |
|
|
|
— |
|
|
|
316,847 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Direct expense: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
|
112,938 |
|
|
|
— |
|
|
|
— |
|
|
|
112,938 |
|
Subscription-based |
|
|
1,839 |
|
|
|
6,018 |
|
|
|
— |
|
|
|
7,857 |
|
Professional services and other |
|
|
(374 |
) |
|
|
— |
|
|
|
— |
|
|
|
(374 |
) |
Total direct expense |
|
|
114,403 |
|
|
|
6,018 |
|
|
|
— |
|
|
|
120,421 |
|
Employee compensation |
|
|
78,873 |
|
|
|
20,395 |
|
|
|
14,066 |
|
|
|
113,334 |
|
General and administrative |
|
|
30,093 |
|
|
|
12,388 |
|
|
|
7,610 |
|
|
|
50,091 |
|
Depreciation and amortization |
|
|
25,603 |
|
|
|
6,797 |
|
|
|
— |
|
|
|
32,400 |
|
Total operating expenses |
|
|
248,972 |
|
|
|
45,598 |
|
|
|
21,676 |
|
|
|
316,246 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
|
30,271 |
|
|
|
(7,994 |
) |
|
|
(21,676 |
) |
|
|
601 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
25,603 |
|
|
|
6,797 |
|
|
|
— |
|
|
|
32,400 |
|
Non-cash compensation expense (b) |
|
|
10,955 |
|
|
|
2,175 |
|
|
|
4,168 |
|
|
|
17,298 |
|
Restructuring charges and transaction costs (c) |
|
|
1,432 |
|
|
|
(98 |
) |
|
|
361 |
|
|
|
1,695 |
|
Severance expense (b) |
|
|
4,901 |
|
|
|
5,902 |
|
|
|
679 |
|
|
|
11,482 |
|
Litigation, regulatory and other governance related expenses (a) |
|
|
— |
|
|
|
629 |
|
|
|
(25 |
) |
|
|
604 |
|
Non-income tax expense adjustment (a) |
|
|
(26 |
) |
|
|
— |
|
|
|
— |
|
|
|
(26 |
) |
Loss attributable to non-controlling interest |
|
|
1,277 |
|
|
|
— |
|
|
|
— |
|
|
|
1,277 |
|
Adjusted EBITDA |
|
$ |
74,413 |
|
|
$ |
7,411 |
|
|
$ |
(16,493 |
) |
|
$ |
65,331 |
|
__________________________________________________________ |
||
| (a) | Included within general and administrative expense in the condensed consolidated statements of operations. |
|
| (b) | Included within employee compensation expense in the condensed consolidated statements of operations. |
|
| (c) |
|
|
Envestnet, Inc.
|
||||||||||||||||
|
|
Nine Months Ended September 30, 2023 |
||||||||||||||
|
|
Envestnet
|
|
Envestnet Data
|
|
Nonsegment |
|
Total |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
$ |
556,595 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
556,595 |
|
Subscription-based |
|
|
241,214 |
|
|
|
105,763 |
|
|
|
— |
|
|
|
346,977 |
|
Total recurring revenue |
|
|
797,809 |
|
|
|
105,763 |
|
|
|
— |
|
|
|
903,572 |
|
Professional services and other revenue |
|
|
17,907 |
|
|
|
6,509 |
|
|
|
— |
|
|
|
24,416 |
|
Total revenue |
|
|
815,716 |
|
|
|
112,272 |
|
|
|
— |
|
|
|
927,988 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Direct expense: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
|
324,093 |
|
|
|
— |
|
|
|
— |
|
|
|
324,093 |
|
Subscription-based |
|
|
5,474 |
|
|
|
17,080 |
|
|
|
— |
|
|
|
22,554 |
|
Professional services and other |
|
|
7,662 |
|
|
|
— |
|
|
|
— |
|
|
|
7,662 |
|
Total direct expense |
|
|
337,229 |
|
|
|
17,080 |
|
|
|
— |
|
|
|
354,309 |
|
Employee compensation |
|
|
235,818 |
|
|
|
59,476 |
|
|
|
49,352 |
|
|
|
344,646 |
|
General and administrative |
|
|
90,425 |
|
|
|
41,609 |
|
|
|
26,782 |
|
|
|
158,816 |
|
Depreciation and amortization |
|
|
76,670 |
|
|
|
19,315 |
|
|
|
— |
|
|
|
95,985 |
|
Total operating expenses |
|
|
740,142 |
|
|
|
137,480 |
|
|
|
76,134 |
|
|
|
953,756 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
|
75,574 |
|
|
|
(25,208 |
) |
|
|
(76,134 |
) |
|
|
(25,768 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||
Deferred revenue fair value adjustment (a) |
|
|
69 |
|
|
|
— |
|
|
|
— |
|
|
|
69 |
|
Depreciation and amortization |
|
|
76,670 |
|
|
|
19,315 |
|
|
|
— |
|
|
|
95,985 |
|
Non-cash compensation expense (c) |
|
|
34,747 |
|
|
|
7,057 |
|
|
|
16,337 |
|
|
|
58,141 |
|
Restructuring charges and transaction costs (d) |
|
|
7,985 |
|
|
|
214 |
|
|
|
4,167 |
|
|
|
12,366 |
|
Severance expense (c) |
|
|
10,553 |
|
|
|
11,227 |
|
|
|
4,124 |
|
|
|
25,904 |
|
Litigation, regulatory and other governance related expenses (b) |
|
|
— |
|
|
|
4,163 |
|
|
|
1,660 |
|
|
|
5,823 |
|
Non-income tax expense adjustment (b) |
|
|
(153 |
) |
|
|
(71 |
) |
|
|
— |
|
|
|
(224 |
) |
Loss attributable to non-controlling interest |
|
|
3,082 |
|
|
|
— |
|
|
|
— |
|
|
|
3,082 |
|
Adjusted EBITDA |
|
$ |
208,527 |
|
|
$ |
16,697 |
|
|
$ |
(49,846 |
) |
|
$ |
175,378 |
|
__________________________________________________________ |
||
| (a) | Included within subscription-based revenue in the condensed consolidated statements of operations. |
|
| (b) | Included within general and administrative expense in the condensed consolidated statements of operations. |
|
| (c) | Included within employee compensation expense in the condensed consolidated statements of operations. |
|
| (d) |
|
|
Envestnet, Inc.
Key Metrics
(in millions, except accounts, advisors and firms data)
(unaudited)
Envestnet Wealth Solutions Segment
The following table provides information regarding the amount of assets and number of accounts and advisors supported by the Envestnet Wealth Solutions platform:
|
|
As of |
|||||||||||||
|
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
|||||
|
|
2023 |
|
2023 |
|
2024 |
|
2024 |
|
2024 |
|||||
Platform Assets |
|
|
|
|
|
|
|
|
|
|
|||||
Assets under Management (“AUM”) |
|
$ |
375,408 |
|
$ |
416,001 |
|
$ |
452,464 |
|
$ |
471,978 |
|
$ |
510,453 |
Assets under Administration (“AUA”) |
|
|
398,082 |
|
|
430,846 |
|
|
471,401 |
|
|
471,479 |
|
|
495,995 |
Total AUM/A |
|
|
773,490 |
|
|
846,847 |
|
|
923,865 |
|
|
943,457 |
|
|
1,006,448 |
Subscription |
|
|
4,579,248 |
|
|
4,959,514 |
|
|
5,158,180 |
|
|
5,327,939 |
|
|
5,534,404 |
Total Platform Assets |
|
$ |
5,352,738 |
|
$ |
5,806,361 |
|
$ |
6,082,045 |
|
$ |
6,271,396 |
|
$ |
6,540,852 |
Platform Accounts |
|
|
|
|
|
|
|
|
|
|
|||||
AUM |
|
|
1,614,873 |
|
|
1,640,879 |
|
|
1,688,044 |
|
|
1,752,768 |
|
|
1,802,895 |
AUA |
|
|
1,257,094 |
|
|
1,254,962 |
|
|
1,315,442 |
|
|
1,325,370 |
|
|
1,347,685 |
Total AUM/A |
|
|
2,871,967 |
|
|
2,895,841 |
|
|
3,003,486 |
|
|
3,078,138 |
|
|
3,150,580 |
Subscription |
|
|
16,072,848 |
|
|
16,248,598 |
|
|
16,641,631 |
|
|
16,364,088 |
|
|
16,705,082 |
Total Platform Accounts |
|
|
18,944,815 |
|
|
19,144,439 |
|
|
19,645,117 |
|
|
19,442,226 |
|
|
19,855,662 |
Advisors |
|
|
|
|
|
|
|
|
|
|
|||||
AUM/A |
|
|
38,078 |
|
|
38,697 |
|
|
38,814 |
|
|
38,484 |
|
|
38,809 |
Subscription |
|
|
69,318 |
|
|
69,973 |
|
|
70,262 |
|
|
71,568 |
|
|
72,527 |
Total Advisors |
|
|
107,396 |
|
|
108,670 |
|
|
109,076 |
|
|
110,052 |
|
|
111,336 |
The following tables summarize the changes in the amount of AUM/A assets and number of AUM/A accounts:
|
|
Asset Rollforward - Three Months Ended September 30, 2024 |
|||||||||||||||||
|
|
As of June 30, |
|
Gross |
|
|
|
Net |
|
Market |
|
As of September 30, |
|||||||
|
|
2024 |
|
Sales |
|
Redemptions |
|
Flows |
|
Impact |
|
2024 |
|||||||
AUM |
|
$ |
471,978 |
|
$ |
32,831 |
|
$ |
(19,239 |
) |
|
$ |
13,592 |
|
$ |
24,883 |
|
$ |
510,453 |
AUA |
|
|
471,479 |
|
|
31,382 |
|
|
(29,712 |
) |
|
|
1,670 |
|
|
22,846 |
|
|
495,995 |
Total AUM/A |
|
$ |
943,457 |
|
$ |
64,213 |
|
$ |
(48,951 |
) |
|
$ |
15,262 |
|
$ |
47,729 |
|
$ |
1,006,448 |
Fee-Based Accounts |
|
|
3,078,138 |
|
|
|
|
|
|
72,442 |
|
|
|
|
3,150,580 |
||||
The above AUM/A gross sales figures for the three months ended September 30, 2024 include
|
|
Asset Rollforward - Nine Months Ended September 30, 2024 |
|||||||||||||||||||||
|
|
As of
|
|
Gross |
|
|
|
Net |
|
Market |
|
|
|
As of
|
|||||||||
|
|
2023 |
|
Sales |
|
Redemptions |
|
Flows |
|
Impact |
|
Reclassifications |
|
2024 |
|||||||||
AUM |
|
$ |
416,001 |
|
$ |
97,426 |
|
$ |
(57,740 |
) |
|
$ |
39,686 |
|
$ |
51,763 |
|
$ |
3,003 |
|
|
$ |
510,453 |
AUA |
|
|
430,846 |
|
|
109,825 |
|
|
(90,904 |
) |
|
|
18,921 |
|
|
51,561 |
|
|
(5,333 |
) |
|
|
495,995 |
Total AUM/A |
|
$ |
846,847 |
|
$ |
207,251 |
|
$ |
(148,644 |
) |
|
$ |
58,607 |
|
$ |
103,324 |
|
$ |
(2,330 |
) |
|
$ |
1,006,448 |
Fee-Based Accounts |
|
|
2,895,841 |
|
|
|
|
|
|
267,305 |
|
|
|
|
(12,566 |
) |
|
|
3,150,580 |
||||
The above AUM/A gross sales figures for the nine months ended September 30, 2024 include
Asset and account figures in the “Reclassifications” column for the three and nine months ended September 30, 2024 represent immaterial amounts that were reclassified between AUM, AUA and subscription to reflect updated customer billing arrangements. These reclassifications have no impact on total platform assets or accounts.
Envestnet Data & Analytics Segment
The following table provides information regarding the number of paid end-users and firms using the Envestnet Data & Analytics platform:
|
|
As of |
||||||||
|
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
|
|
2023 |
|
2023 |
|
2024 |
|
2024 |
|
2024 |
Number of paid end-users |
|
42.3 |
|
38.3 |
|
43.8 |
|
44.3 |
|
45.2 |
Number of firms |
|
1,322 |
|
1,324 |
|
1,323 |
|
1,182 |
|
1,166 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106329239/en/
Investor Relations
investor.relations@envestnet.com
(312) 827-3940
Media Relations
media@envestnet.com
Source: Envestnet
