Earnings Release 3Q17

Exhibit 99.1

Envestnet Reports Third Quarter 2017 Financial Results

Chicago, IL — November 8, 2017 — Envestnet (NYSE: ENV), a leading provider of intelligent systems for wealth management and financial wellness, today reported financial results for its third quarter ended September 30, 2017.


	Three Months Ended			Nine Months Ended
Key Financial Metrics	September 30,		%	September 30,		%
(in millions except per share data)	2017	2016	Change	2017	2016	Change
GAAP:
Total Revenues	$175.6	$149.2	18%	$500.8	$422.7	18%
Net Loss	(1.3)	(4.1)	(67%)	(20.9)	$(23.0)	(9%)
Net Loss per Diluted Share	$ (0.03)	$ (0.09)	(67%)	$ (0.48)	$ (0.54)	(11%)

Non-GAAP:
Adjusted Revenues(1)	$175.6	$149.5	17%	$500.9	$423.5	18%
Adjusted EBITDA(1)	34.8	27.5	26%	90.2	69.1	30%
Adjusted Net Income(1)	17.3	12.5	39%	41.9	29.5	42%
Adjusted Net Income per Diluted Share(1)	$ 0.37	$ 0.28	32%	$ 0.91	$ 0.67	36%

“Envestnet’s strong execution continued through the third quarter, as we delivered solid organic growth in both revenue and earnings,” said Jud Bergman, Chairman and CEO. “Customers continue to seek innovative ways to broaden their end-client relationships and expand their reach through the adoption of intelligent systems for wealth management and financial wellness.”

“We continue to see growth opportunities in 2018 and beyond, both organic and from acquisition, including the FolioDynamix transaction, which we expect to close early next year,” concluded Mr. Bergman.

Financial Results for the Third Quarter of 2017 Compared to the Third Quarter of 2016:

Total revenues increased 18% to $175.6 million in the three months ended September 30, 2017 from $149.2 million in the three months ended September 30, 2016. Asset-based revenues, which were 60% of total revenues for the third quarter of 2017 and 2016, increased 18% from the prior year period. Subscription and licensing revenues increased 21% from the prior year period.

Total operating expenses for the third quarter of 2017 increased 14% to $171.3 million from $150.4 million in the prior year period. Cost of revenues increased 19% to $56.1 million for the third quarter of 2017 from $47.3 million for the third quarter of 2016. Compensation and benefits increased 14% to $68.6 million for the third quarter of 2017 from $60.3 million for the prior year period. Compensation and benefits were 39% of total revenues for the third quarter of 2017, compared to 40% for the prior year period. General and administration expenses increased 19% to $31.2 million for the third quarter of 2017, from $26.2 million for the prior year period. General and administrative expenses were 18% of total revenues for the third quarter of 2017, compared to 18% for the prior year period.

Income from operations was $4.3 million for the third quarter of 2017 compared to a loss of $1.3 million for the third quarter of 2016. Net loss attributable to Envestnet, Inc. was $1.3 million, or $0.03 per diluted share, for the third quarter of 2017 compared to a loss of $4.1 million, or a loss of $0.09 per diluted share, for the third quarter of 2016.

Adjusted Revenues(1) for the third quarter of 2017 increased 17% to $175.6 million from $149.5 million for the prior year period. Adjusted EBITDA(1) for the third quarter of 2017 increased 26% to $34.8 million

from $27.5 million for the prior year period. Adjusted Net Income(1) increased 39% for the third quarter of 2017 to $17.3 million from $12.5 million for the prior year period. Adjusted Net Income Per Share(1) for the third quarter of 2017 increased 32% to $0.37 from $0.28 in the third quarter of 2016.

FolioDynamix Acquisition

On September 25, 2017, the Company announced that it will acquire FolioDynamix, a provider of integrated wealth management technology solutions, for $195 million. The transaction is expected to close in the first quarter of 2018.

Outlook

The Company provided the following outlook for the fourth quarter and full year ended December 31, 2017. This outlook is based on the market value of assets on September 30, 2017 and is risk-adjusted with respect to contributions from client conversions and synergy revenue related to prior acquisitions.


In Millions Except Adjusted EPS	4Q 2017			FY 2017
GAAP:
AUM/A revenue	$108.0	-	$109.0		-
Subscription and licensing revenue	64.0	-	64.5		-
Professional services and other revenue	6.0	-	6.5		-
Revenues	$178.0	-	$180.0	$679	-	$681

Cost of revenues	$56.5	-	$57.0		-
Net Income		-			-

Diluted shares outstanding		47.0			-
Net Income per Diluted Share		-			-

Non-GAAP:
Adjusted Revenues(1)	$178	-	$180	$679	-	$681
Adjusted EBITDA(1)	$ 37.5	-	$ 38.5	$127.5	-	$128.5
Adjusted Net Income per Diluted Share(1)		$0.39			-

Included in the fourth quarter and full year 2017 adjusted revenue is an expected deferred revenue fair value adjustment of approximately $0.0 million and $0.1 million, respectively. The Company does not forecast net income and net income per 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 third quarter 2017 financial results today at 5:00 p.m. ET. The live webcast can be accessed from Envestnet’s investor relations website at http://ir.envestnet.com/. The call can also be accessed live over the phone by dialing (800) 500-0920, or for international callers (719) 457-2642. A replay will be available two hours after the call and can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers; the conference ID is 1528646. The dial-in replay will be available for one week and the webcast replay will be available for one month following the date of the conference call.

About Envestnet

Envestnet, Inc. (NYSE: ENV) is a leading provider of intelligent systems for wealth management and financial wellness. Envestnet's unified technology enhances advisor productivity and strengthens the wealth management process. Envestnet empowers enterprises and advisors to more fully understand their clients and deliver better outcomes.

Envestnet enables financial advisors to better manage client outcomes and strengthen their practices. Institutional-quality research and advanced portfolio solutions are provided through Envestnet | PMC, our Portfolio Management Consultants group. Envestnet | Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. Envestnet | Tamarac provides leading rebalancing, reporting, and practice management software for advisors. Envestnet | Retirement Solutions provides retirement advisors with an integrated platform that combines leading practice management technology, research and due diligence, data aggregation, compliance tools, fiduciary solutions and intelligent managed account solutions.

More than 59,000 advisors and 2,900 companies including: 16 of the 20 largest U.S. banks, 39 of the 50 largest wealth management and brokerage firms, over 500 of the largest Registered Investment Advisers, and hundreds of Internet services companies, leverage Envestnet technology and services. Envestnet solutions enhance knowledge of the client, accelerate client on-boarding, improve client digital experiences, and help drive better outcomes for enterprises, advisors, and their clients.

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

(1) Non-GAAP Financial Measures

“Adjusted revenues” exclude the effect of purchase accounting on the fair value of acquired deferred revenue. Under United States generally accepted accounting principles (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 EBITDA” represents net income before deferred revenue fair value adjustment, interest income, interest expense, accretion on contingent consideration and purchase liability, income tax provision (benefit), depreciation and amortization, non-cash compensation expense, restructuring charges and transaction costs, severance, fair market value adjustment on contingent consideration, litigation related expense, foreign currency and related hedging activity, non-income tax expense adjustment, loss allocation from equity method investment and loss attributable to non-controlling interest.

“Adjusted net income” represents net income before deferred revenue fair value adjustment, accretion on contingent consideration and purchase liability, non-cash interest expense, non-cash compensation expense, restructuring charges and transaction costs, severance, amortization of acquired intangibles, fair market value adjustment on contingent consideration, litigation related expense, foreign currency and related hedging activity, non-income tax expense adjustment, loss allocation from equity method investment 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.

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

See reconciliation of Non-GAAP Financial Measures on pages 8-10 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 (the “Company”) expected financial performance and outlook for the fourth quarter and full year of 2017, 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, the inability to complete the Company’s acquisition of FolioDynamix in a timely manner or at all, the possibility that the anticipated benefits of the Company’s acquisition of FolioDynamix will not be realized to the extent or when expected, potential exposure to state and local non-income tax obligations, the Company’s ability to remediate material weaknesses in internal controls over financial reporting and associated costs, difficulty in sustaining rapid revenue growth, which may place significant demands on the Company’s administrative, operational and financial resources, fluctuations in the Company’s revenue, the concentration of nearly all of the Company’s revenues from the delivery of investment solutions and services to clients in the financial services industry, the impact of market and economic conditions on revenues, the Company’s reliance on a limited number of clients for a material portion of its revenue, the renegotiation of fee percentages or termination of the Company’s services by its clients, the Company’s ability to identify potential acquisition candidates, complete acquisitions and successfully integrate acquired companies, potential dilution from issuing equity securities or a weaker balance sheet from using cash or incurring debt to finance acquisitions, the impact of market conditions on the Company’s ability to issue additional debt and equity to fund acquisitions, compliance failures, regulatory or third-party actions against the Company, the failure to protect the Company’s intellectual property rights, the Company’s inability to successfully execute the conversion of its clients’ assets from their technology platform to the Company’s technology platform in a timely and accurate manner, general economic conditions, political and regulatory conditions, the impact of fluctuations in interest rates on the Company’s business, ability to expand our relationships with existing customers, grow the number of customers and derive revenue from new offerings such as our data analytic solutions and market research services and premium FinApps, the results of our investments in research and development, our data center and other infrastructure, our ability to realize operating efficiencies, the advantages of our solutions as compared to those of others, our ability to retain and hire necessary employees and appropriately staff our operations, in particular our India operations, and management’s response to these factors. More information regarding these and other risks, uncertainties and factors is contained in the Company’s filings with the Securities and Exchange Commission (“SEC”) which are available on the SEC’s website at www.sec.gov or the Company’s Investor Relations website at http://ir.envestnet.com/. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. All information in this press release and its attachments is as of November 8, 2017 and, unless required by law, the Company undertakes 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.


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

Envestnet, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)


	September 30,		December 31,
	2017		2016
Assets
Current assets:
Cash and cash equivalents	$	48,704	$	52,592
Fees and other receivables, net		49,726		44,268
Prepaid expenses and other current assets		23,999		16,224
Total current assets		122,429		113,084

Property and equipment, net		35,274		33,000
Internally developed software, net		20,279		14,860
Intangible assets, net		233,525		265,558
Goodwill		432,746		431,936
Other non-current assets		17,969		13,963
Total assets	$	862,222	$	872,401

Liabilities and Equity
Current liabilities:
Accrued expenses and other liabilities	$	102,877	$	87,763
Accounts payable		13,215		11,480
Current portion of debt		—		37,926
Contingent consideration		2,055		2,286
Deferred revenue		18,388		16,499
Total current liabilities		136,535		155,954

Convertible Notes		157,353		152,575
Revolving credit facility		101,168		—
Term Notes		—		100,409
Contingent consideration		641		2,582
Deferred revenue		14,454		15,643
Deferred rent and lease incentive		14,867		12,060
Deferred tax liabilities, net		12,216		5,555
Other non-current liabilities		14,527		13,436
Total liabilities		451,761		458,214

Redeemable units in ERS		900		900

Equity:
Stockholders’ equity		409,163		412,889
Non-controlling interest		398		398
Total liabilities and equity	$	862,222	$	872,401

Envestnet, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share information)

(unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Revenues:
Assets under management or administration	$	106,147	$	90,042	$	299,268	$	258,969
Subscription and licensing		62,963		51,959		180,675		142,303
Professional services and other		6,504		7,154		20,874		21,412
Total revenues		175,614		149,155		500,817		422,684

Operating expenses:
Cost of revenues		56,070		47,259		161,031		132,319
Compensation and benefits		68,551		60,345		199,079		180,625
General and administration		31,153		26,150		90,178		80,249
Depreciation and amortization		15,492		16,692		46,792		49,872
Total operating expenses		171,266		150,446		497,080		443,065

Income (loss) from operations		4,348		(1,291)		3,737		(20,381)
Other expense, net		(3,986)		(4,434)		(13,838)		(13,214)
Income (loss) before income tax provision (benefit)		362		(5,725)		(10,101)		(33,595)

Income tax provision (benefit)		1,682		(1,668)		10,824		(10,602)

Net loss		(1,320)		(4,057)		(20,925)		(22,993)
Add: Net loss attributable to non-controlling interest		—		—		—		—
Net loss attributable to Envestnet, Inc.	$	(1,320)	$	(4,057)	$	(20,925)	$	(22,993)

Net loss per share attributable to Envestnet, Inc.:
Basic	$	(0.03)	$	(0.09)	$	(0.48)	$	(0.54)

Diluted	$	(0.03)	$	(0.09)	$	(0.48)	$	(0.54)

Weighted average common shares outstanding:
Basic		44,044,527		42,843,103		43,604,869		42,704,383

Diluted		44,044,527		42,843,103		43,604,869		42,704,383


	Nine Months Ended
	September 30,
	2017		2016
OPERATING ACTIVITIES:
Net loss	$	(20,925)	$	(22,993)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		46,792		49,872
Deferred rent and lease incentive amortization		709		(324)
Provision for doubtful accounts		828		369
Deferred income taxes		6,646		(10,273)
Stock-based compensation expense		23,451		25,872
Non-cash interest expense		8,711		6,955
Accretion on contingent consideration and purchase liability		408		143
Fair market value adjustment on contingent consideration		—		838
Loss on disposal of fixed assets		69		220
Loss allocation from equity method investment		984		1,130
Changes in operating assets and liabilities, net of acquisitions:
Fees and other receivables		(6,286)		4,077
Prepaid expenses and other current assets		(5,316)		(4,960)
Other non-current assets		(1,784)		(4,271)
Accrued expenses and other liabilities		13,289		275
Accounts payable		1,435		124
Deferred revenue		740		1,959
Other non-current liabilities		1,852		4,337
Net cash provided by operating activities		71,603		53,350

INVESTING ACTIVITIES:
Purchase of property and equipment		(11,432)		(10,839)
Capitalization of internally developed software		(9,210)		(6,217)
Investment in private company		(1,450)		(738)
Purchase of ERS units		—		(1,500)
Acquisition of businesses, net of cash acquired		—		(18,394)
Net cash used in investing activities		(22,092)		(37,688)

FINANCING ACTIVITIES:
Payment of Term Notes		(35,862)		(6,000)
Proceeds from borrowings on revolving credit facility		35,000		25,000
Payments on revolving credit facility		(42,500)		(25,000)
Debt issuance costs		(94)		—
Payments of contingent consideration		(2,286)		(2,924)
Payments of definite consideration		(445)		—
Payments of purchase consideration liabilities		(235)		—
Proceeds from exercise of stock options		4,468		3,166
Purchase of treasury stock for stock-based tax withholdings		(11,619)		(9,517)
Common stock acquired under the share repurchase program		—		(1,448)
Issuance of restricted stock units		4		5
Net cash used in financing activities		(53,569)		(16,718)

EFFECT OF EXCHANGE RATE CHANGES ON CASH		170		—

DECREASE IN CASH AND CASH EQUIVALENTS		(3,888)		(1,056)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		52,592		51,718

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	48,704	$	50,662


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016

Revenues	$	175,614	$	149,155	$	500,817	$	422,684
Deferred revenue fair value adjustment		15		331		120		781
Adjusted revenues	$	175,629	$	149,486	$	500,937	$	423,465

Net loss	$	(1,320)	$	(4,057)	$	(20,925)	$	(22,993)
Add (deduct):
Deferred revenue fair value adjustment		15		331		120		781
Interest income		(58)		(6)		(108)		(28)
Interest expense		3,858		4,122		12,671		12,345
Accretion on contingent consideration and purchase liability		104		23		408		143
Income tax provision (benefit)		1,682		(1,668)		10,824		(10,602)
Depreciation and amortization		15,492		16,692		46,792		49,872
Non-cash compensation expense		8,048		7,554		23,451		25,872
Restructuring charges and transaction costs		4,608		998		10,235		4,484
Severance		1,597		1,058		2,260		3,104
Fair market value adjustment on contingent consideration		-		349		-		838
Litigation related expense		-		2,097		1,033		4,065
Foreign currency and related hedging activity		(116)		(383)		296		(672)
Non-income tax expense adjustment		571		-		1,734		-
Loss allocation from equity method investment		282		250		984		1,130
Loss attributable to non-controlling interest		26		145		377		787
Adjusted EBITDA	$	34,789	$	27,505	$	90,152	$	69,126

Net loss	$	(1,320)	$	(4,057)	$	(20,925)	$	(22,993)
Income tax provision (benefit) (1)		1,682		(1,668)		10,824		(10,602)
Loss before income tax provision	$	362	$	(5,725)	$	(10,101)	$	(33,595)
Add (deduct):
Deferred revenue fair value adjustment		15		331		120		781
Accretion on contingent consideration and purchase liability		104		23		408		143
Non-cash interest expense		2,931		2,039		7,784		6,070
Non-cash compensation expense		8,048		7,554		23,451		25,872
Restructuring charges and transaction costs		4,608		998		10,235		4,484
Severance		1,597		1,058		2,260		3,104
Amortization of acquired intangibles		10,377		12,035		31,333		36,156
Fair market value adjustment on contingent consideration		-		349		-		838
Litigation related expense		-		2,097		1,033		4,065
Foreign currency and related hedging activity		(116)		(383)		296		(672)
Non-income tax expense adjustment		571		-		1,734		-
Loss allocation from equity method investment		282		250		984		1,130
Loss attributable to non-controlling interest		26		145		377		787
Adjusted net income before income tax effect		28,805		20,771		69,914		49,163
Income tax effect (2)		(11,522)		(8,308)		(27,966)		(19,665)
Adjusted net income	$	17,283	$	12,463	$	41,948	$	29,498

Basic number of weighted-average shares outstanding		44,044,527		42,843,103		43,604,869		42,704,383
Effect of dilutive shares:
Options to purchase common stock		1,664,351		1,331,256		1,669,092		1,286,968
Unvested restricted stock units		736,657		350,169		637,580		272,205
Diluted number of weighted-average shares outstanding		46,445,535		44,524,528		45,911,541		44,263,556

Adjusted net income per share - diluted	$	$ 0.37	$	$ 0.28	$	$ 0.91	$	$ 0.67

(1) For the three months ended September 30, 2017 and 2016, the effective tax rate computed in accordance with US GAAP equaled 464.6% and 29.1%, respectively. For the nine months ended September 30, 2017 and 2016, the effective tax rate computed in accordance with US GAAP equaled (107.2%) and 31.6%, respectively.

(2) An estimated normalized effective tax rate of 40% has been used to compute adjusted net income.


	Three Months Ended September 30, 2017
		Envestnet		Envestnet \| Yodlee		Nonsegment		Total
	(in thousands)
Revenues	$	135,948	$	39,666	$	—	$	175,614
Deferred revenue fair value adjustment		—		15		—		15
Adjusted revenues	$	135,948	$	39,681	$	—	$	175,629

Income (loss) from operations	$	18,955	$	(3,364)	$	(11,243)	$	4,348
Add (deduct):
Deferred revenue fair value adjustment		—		15		—		15
Accretion on contingent consideration and purchase liability		104		—		—		104
Depreciation and amortization		6,414		9,078		—		15,492
Non-cash compensation expense		3,679		2,675		1,694		8,048
Restructuring charges and transaction costs		73		—		4,535		4,608
Non-income tax expense adjustment		571		—		—		571
Severance		1,519		78		—		1,597
Litigation related expense		—		—		—		—
Other gain		—		—		(20)		(20)
Loss attributable to non-controlling interest		26		—		—		26
Adjusted EBITDA	$	31,341	$	8,482	$	(5,034)	$	34,789


	Three Months Ended September 30, 2016
		Envestnet		Envestnet \| Yodlee		Nonsegment		Total
	(in thousands)
Revenues	$	114,511	$	34,644	$	—	$	149,155
Deferred revenue fair value adjustment		109		222		—		331
Adjusted revenues	$	114,620	$	34,866	$	—	$	149,486

Income (loss) from operations	$	12,361	$	(8,416)	$	(5,236)	$	(1,291)
Add (deduct):
Deferred revenue fair value adjustment		109		222		—		331
Accretion on contingent consideration and purchase liability		23		—		—		23
Depreciation and amortization		6,362		10,330		—		16,692
Non-cash compensation expense		3,565		2,937		1,052		7,554
Restructuring charges and transaction costs		34		3		961		998
Severance		990		68		—		1,058
Fair market value adjustment on contingent consideration		—		—		349		349
Litigation related expense		—		2,086		11		2,097
Foreign currency and related hedging activity		—		(462)		—		(462)
Other loss		—		—		11		11
Loss attributable to non-controlling interest		145		—		—		145
Adjusted EBITDA	$	23,589	$	6,768	$	(2,852)	$	27,505


	Nine Months Ended September 30, 2017
		Envestnet		Envestnet \| Yodlee		Nonsegment		Total
	(in thousands)
Revenues	$	386,638	$	114,179	$	—	$	500,817
Deferred revenue fair value adjustment		36		84		—		120
Adjusted revenues	$	386,674	$	114,263	$	—	$	500,937

Income (loss) from operations	$	48,277	$	(16,707)	$	(27,833)	$	3,737
Add:
Deferred revenue fair value adjustment		36		84		—		120
Accretion on contingent consideration and purchase liability		408		—		—		408
Depreciation and amortization		19,196		27,596		—		46,792
Non-cash compensation expense		11,571		8,137		3,743		23,451
Restructuring charges and transaction costs		768		—		9,467		10,235
Non-income tax expense adjustment		1,734		—		—		1,734
Severance		1,942		302		16		2,260
Litigation related expense		—		1,033		—		1,033
Other loss		—		—		5		5
Loss attributable to non-controlling interest		377		—		—		377
Adjusted EBITDA	$	84,309	$	20,445	$	(14,602)	$	90,152


	Nine Months Ended September 30, 2016
		Envestnet		Envestnet \| Yodlee		Nonsegment		Total
	(in thousands)
Revenues	$	328,417	$	94,267	$	—	$	422,684
Deferred revenue fair value adjustment		114		667		—		781
Adjusted revenues	$	328,531	$	94,934	$	—	$	423,465

Income (loss) from operations	$	32,425	$	(33,728)	$	(19,078)	$	(20,381)
Add (deduct):
Deferred revenue fair value adjustment		114		667		—		781
Accretion on contingent consideration and purchase liability		143		—		—		143
Depreciation and amortization		18,786		31,086		—		49,872
Non-cash compensation expense		9,151		12,186		4,535		25,872
Restructuring charges and transaction costs		361		34		4,089		4,484
Severance		2,019		747		338		3,104
Fair market value adjustment on contingent consideration		—		—		838		838
Litigation related expense		—		3,824		241		4,065
Foreign currency and related hedging activity		—		(462)		—		(462)
Other loss		—		—		23		23
Loss attributable to non-controlling interest		787		—		—		787
Adjusted EBITDA	$	63,786	$	14,354	$	(9,014)	$	69,126


	As of
	September 30,		December 31,		March 31,		June 30,		September 30,
	2016		2016		2017		2017		2017
	(in millions except accounts and advisors data)
Platform Assets
Assets Under Management (AUM)	$	101,924	$	105,178	$	113,544	$	122,543	$	131,809
Assets Under Administration (AUA)		231,831		241,682		248,445		271,450		293,963
Subtotal AUM/A		333,755		346,860		361,989		393,993		425,772
Licensing		721,690		748,125		763,372		825,829		867,967
Total Platform Assets	$	1,055,445	$	1,094,985	$	1,125,361	$	1,219,822	$	1,293,739
Platform Accounts
AUM		519,717		545,130		574,132		614,973		652,060
AUA		961,590		994,583		986,554		1,083,417		1,145,050
Subtotal AUM/A		1,481,307		1,539,713		1,560,686		1,698,390		1,797,110
Licensing		4,394,670		4,558,883		4,263,002		4,811,390		4,925,146
Total Platform Accounts		5,875,977		6,098,596		5,823,688		6,509,780		6,722,256
Advisors
AUM/A		35,861		36,483		36,985		38,498		40,379
Licensing		16,191		17,852		18,159		19,007		19,104
Total Advisors		52,052		54,335		55,144		57,505		59,483

The following tables summarize the changes in AUM and AUA for the three months ended September 30, 2017:


	Asset Rollforward - Three Months Ended September 30, 2017
	As of		Gross				Net		Market		As of
	6/30/2017		Sales		Redemptions		Flows		Impact		9/30/2017
	(in millions except account data)
Assets under Management (AUM)	$	122,543	$	10,585	$	(5,178)	$	5,407	$	3,859	$	131,809
Assets under Administration (AUA)		271,450		24,279		(10,873)		13,406		9,107		293,963
Total AUM/A	$	393,993	$	34,864	$	(16,051)	$	18,813	$	12,966	$	425,772
Fee-Based Accounts		1,698,390						98,720				1,797,110

The above AUM/A gross sales figures include $9.7 billion in new client conversions. The Company onboarded an additional $12.4 billion in licensing conversions during the third quarter, bringing total conversions for the quarter to $22.1 billion.