(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c)) |
Title of each class | Trading symbol(s) | Name of exchange on which registered | ||||||
Item 2.02. | Results of Operations and Financial Condition |
Item 9.01. | Financial Statements and Exhibits |
Exhibit No. | Description | |||||||
99.1 | Press Release dated August 5, 2021 | |||||||
99.2 | Second Quarter 2021 Supplemental Presentation |
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
ENVESTNET, INC. | |||||
By: | /s/ Peter H. D’Arrigo | ||||
Name: | Peter H. D’Arrigo | ||||
Title: | Chief Financial Officer |
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% |
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 |
Contacts | ||||||||
Investor Relations | Media Relations | |||||||
investor.relations@envestnet.com | mediarelations@envestnet.com | |||||||
(312) 827-3940 |
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 |
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 |
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) |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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