Earnings Release 2Q18

Exhibit 99.1

Envestnet Reports Second Quarter 2018 Financial Results

Chicago, IL — August 7, 2018 — Envestnet (NYSE: ENV), a leading provider of intelligent systems for wealth management and financial wellness, today reported financial results for its quarter ended June 30, 2018.


	Three Months Ended			Six Months Ended
Key Financial Metrics	June 30,		%	June 30,		%
(in millions except per share data)	2018	2017	Change	2018	2017	Change
GAAP:
Total Revenues	$201.1	$167.4	20%	$399.1	$325.2	23%
Net income (loss)	(6.0)	(6.5)	(7%)	2.0	(19.6)	n/m
Net income (loss) per diluted share attributable to Envestnet, Inc.	$ (0.12)	$ (0.15)	(20%)	$ 0.05	$ (0.45)	n/m

Non-GAAP:
Adjusted EBITDA(1)	$34.8	$29.5	18%	$67.5	$55.4	22%
Adjusted Net Income(1)	19.3	13.1	47%	36.9	24.7	50%
Adjusted Net Income per Diluted Share(1)	$ 0.41	$ 0.29	41%	$ 0.78	$ 0.54	44%

n/m - Not meaningful

“Envestnet delivered solid results in the second quarter, with revenue, adjusted EBITDA and adjusted earnings per share exceeding our expectations,” said Jud Bergman, Chairman and CEO.

“We believe we are well positioned to create meaningful value for shareholders, as we expand our operating system for financial wellness, enabling our clients to attain better financial outcomes through better intelligence,” concluded Mr. Bergman.

Financial Results for the Second Quarter of 2018:

Total revenues increased 20% to $201.1 million in the three months ended June 30, 2018 from $167.4 million in the three months ended June 30, 2017. Revenues for FolioDynamix, which the Company acquired in January 2018, were $17.3 million in the three months ended June 30, 2018. The Company’s total revenues in the three months ended June 30, 2018 were negatively impacted by $3.7 million due to the adoption of ASU 2014-09. Excluding the effect of these items, total revenues grew 12% in the three months ended June 30, 2018 compared to the prior year period.

Asset-based revenues were 59% of total revenues for the second quarter of 2018, consistent with the same period in 2017, and increased 19% from the prior year period. Subscription-based revenues increased 20% from the prior year period. Professional services and other non-recurring revenues increased 30% from the prior year period.

Total operating expenses for the second quarter of 2018 increased 22% to $201.1 million from $164.7 million in the prior year period. Cost of revenues increased 21% to $67.6 million for the second quarter of 2018 from $55.7 million for the second quarter of 2017. Compensation and benefits increased 23% to $80.2 million for the second quarter of 2018 from $65.0 million for the prior year period. Compensation and benefits were 40% of total revenues for the second quarter of 2018, compared to 39% in the prior year period. General and administration expenses increased 20% to $34.1 million for the second quarter of 2018 from $28.5 million for the prior year period. General and administrative expenses were 17% of total revenues for the second quarter of 2018 consistent with the prior year period. FolioDynamix was a significant contributor to the year-over-year increase in cost of revenues, compensation and benefits, and general and administrative expenses for the second quarter of 2018. Excluding FolioDynamix, operating expenses for the second quarter of 2018 increased 10% to $180.5 million.

Income from operations was $5 thousand for the second quarter of 2018 compared to income of $2.7 million for the second quarter of 2017. Net loss was $6.0 million for the second quarter of 2018 compared to a loss of $6.5 million for the second quarter of 2017. Net loss per diluted share attributable to Envestnet, Inc. was $0.12 per diluted share for the second quarter of 2018 compared to a loss of $0.15 per diluted share for the second quarter of 2017.

Adjusted EBITDA(1) for the second quarter of 2018 increased 18% to $34.8 million from $29.5 million for the prior year period. Adjusted Net Income(1) increased 47% for the second quarter of 2018 to $19.3 million from $13.1 million for the

prior year period. Adjusted Net Income per Diluted Share(1) for the second quarter of 2018 increased 41% to $0.41 from $0.29 in the second quarter of 2017.

Outlook

The Company provided the following outlook for the third quarter ended September 30, 2018 and full year ended December 31, 2018. This outlook is based on the market value of assets on June 30, 2018.


In Millions Except Adjusted EPS	3Q 2018			FY 2018
GAAP:
Revenues:
Asset-based	$118.5	-	$119.5		-
Subscription-based	76.0	-	77.0		-
Total recurring revenues	$194.5		$196.5
Professional services and other revenues	7.5	-	8.5		-
Total revenues	$202.0	-	$205.0	$812.0	-	$818.0

Cost of revenues	$65.0	-	$66.5		-
Net Income		-			-

Diluted shares outstanding		47.5			-
Net Income per Diluted Share		-			-

Non-GAAP:
Adjusted EBITDA(1)	$40.0	-	$41.0	$153.0	-	$156.0
Adjusted Net Income per Diluted Share(1)		$ 0.50		$ 1.85	-	$ 1.89

The Company does not forecast net income and net income per diluted share due to the unpredictable nature of various items adjusted for non-GAAP disclosure purposes, including the periodic GAAP income tax provision.

Conference Call

Envestnet will host a conference call to discuss second quarter 2018 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) 239-9838, or for international callers (323) 794-2551. 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 2732311. 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 88,000 advisors and more than 3,500 companies including: 15 of the 20 largest U.S. banks, 43 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 EBITDA” represents net income (loss) before deferred revenue fair value adjustment, interest income, interest expense, accretion on contingent consideration and purchase liability, income tax provision (benefit), depreciation and amortization, non-cash compensation expense, restructuring charges and transaction costs, severance, litigation related expense, foreign currency, non-income tax expense adjustment, loss allocation from equity method investment and loss attributable to non-controlling interest.

“Adjusted net income” represents net income (loss) 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, litigation related expense, foreign currency, 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 expected financial performance and outlook for the third quarter and full year of 2018, 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 possibility that the anticipated benefits of the Company’s acquisition of FolioDynamix will not be realized to the extent or when expected, difficulty in sustaining rapid revenue growth, which may place significant demands on the Company’s administrative, operational and financial resources, the concentration of nearly all of our revenues from the delivery of our solutions and services to clients in the financial services industry, our reliance on a limited number of clients for a material portion of our revenue, the renegotiation of fee percentages or termination of our services by our clients, our ability to identify potential acquisition candidates, complete acquisitions and successfully integrate acquired companies, the impact of market and economic conditions on revenues, our inability to successfully execute the conversion of clients’ assets from their technology platform to our technology platforms in a timely and accurate manner, our ability to expand our relationships with existing customers, grow the number of customers and derive revenue from new offerings such as our data analytics solutions and market research services and premium financial applications (“FinApps”), compliance failures, adverse judicial or regulatory proceedings against us, liabilities associated with potential, perceived or actual breaches of fiduciary duties and/or conflicts of interest, changes in laws and regulations, including tax laws and regulations, general economic conditions, political and regulatory conditions, the impact of fluctuations in market condition and interest rates on the demand for our products and services and the value of assets under management or administration, the impact of market conditions on our ability to issue debt and equity, the impact of fluctuations in interest rates on our cost of borrowing, our financial performance, the results of our investments in research and development, our data center and other infrastructure, our ability to maintain the security and integrity of our systems and facilities and to maintain the privacy of personal information, failure of our systems to work properly, our ability to realize operating efficiencies, the advantages of our solutions as compared to those of others, the failure to protect our intellectual property rights, our ability to establish and maintain intellectual property rights, our ability to

retain and hire necessary employees and appropriately staff our operations, and management’s response to these factors. More information regarding these and other risks, uncertainties and factors is contained in 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 August 7, 2018 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)


	June 30,		December 31,
	2018		2017
Assets
Current assets:
Cash and cash equivalents	$	134,032	$	60,115
Fees receivable, net		64,164		51,522
Prepaid expenses and other current assets		22,721		19,470
Total current assets		220,917		131,107

Property and equipment, net		40,397		35,909
Internally developed software, net		29,257		22,174
Intangible assets, net		313,743		222,731
Goodwill		526,955		432,955
Other non-current assets		23,907		17,176
Total assets	$	1,155,176	$	862,052

Liabilities and Equity
Current liabilities:
Accrued expenses and other liabilities	$	109,537	$	105,897
Accounts payable		21,133		11,097
Contingent consideration		707		2,115
Deferred revenue		25,739		21,246
Total current liabilities		157,116		140,355

Convertible Notes due 2019		162,299		158,990
Convertible Notes due 2023		289,562		-
Revolving credit facility		-		81,168
Contingent consideration		-		666
Deferred revenue		7,929		12,047
Deferred rent and lease incentive		17,334		15,185
Deferred tax liabilities, net		2,154		969
Other non-current liabilities		16,744		15,102
Total liabilities		653,138		424,482

Redeemable units in ERS		900		900

Equity:
Stockholders’ equity		500,434		436,272
Non-controlling interest		704		398
Total liabilities and equity	$	1,155,176	$	862,052

Envestnet, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share information)

(unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Revenues:
Asset-based	$	118,111	$	98,959	$	239,264	$	193,121
Subscription-based		71,779		59,802		141,474		117,712
Total recurring revenues		189,890		158,761		380,738		310,833
Professional services and other revenues		11,226		8,656		18,389		14,370
Total revenues		201,116		167,417		399,127		325,203

Operating expenses:
Cost of revenues		67,627		55,735		130,561		104,961
Compensation and benefits		80,210		64,996		163,750		130,528
General and administration		34,089		28,478		66,818		59,025
Depreciation and amortization		19,185		15,465		38,731		31,300
Total operating expenses		201,111		164,674		399,860		325,814

Income (loss) from operations		5		2,743		(733)		(611)
Other expense, net		(5,430)		(4,369)		(10,684)		(9,852)
Loss before income tax provision (benefit)		(5,425)		(1,626)		(11,417)		(10,463)

Income tax provision (benefit)		566		4,844		(13,428)		9,142

Net income (loss)		(5,991)		(6,470)		2,011		(19,605)
Add: Net loss attributable to non-controlling interest		465		—		567		—
Net income (loss) attributable to Envestnet, Inc.	$	(5,526)	$	(6,470)	$	2,578	$	(19,605)

Net income (loss) per share attributable to Envestnet, Inc.:
Basic	$	(0.12)	$	(0.15)	$	0.06	$	(0.45)

Diluted	$	(0.12)	$	(0.15)	$	0.05	$	(0.45)

Weighted average common shares outstanding:
Basic		45,247,331		43,855,479		44,963,735		43,513,074

Diluted		45,247,331		43,855,479		47,156,205		43,513,074

Envestnet, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Six Months Ended
	June 30,
	2018		2017
OPERATING ACTIVITIES:
Net income (loss)	$	2,011	$	(19,605)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		38,731		31,300
Deferred rent and lease incentive		1,069		583
Provision for doubtful accounts		924		341
Deferred income taxes		(17,093)		6,524
Stock-based compensation expense		18,971		15,403
Non-cash interest expense		5,630		4,853
Accretion on contingent consideration and purchase liability		196		304
Payments of contingent consideration		-		(357)
Loss allocation from equity method investment		811		702
Loss on disposal of fixed assets		10		69
Changes in operating assets and liabilities, net of acquisitions:
Fees and other receivables		(8,204)		(5,639)
Prepaid expenses and other current assets		(3,426)		(2,681)
Other non-current assets		(2,450)		(514)
Accrued expenses and other liabilities		(5,448)		(752)
Accounts payable		4,166		(184)
Deferred revenue		3,478		1,818
Other non-current liabilities		1,578		3,022
Net cash provided by operating activities		40,954		35,187

INVESTING ACTIVITIES:
Purchase of property and equipment		(9,569)		(9,181)
Capitalization of internally developed software		(10,622)		(5,651)
Acquisition of business		(188,345)		-
Net cash used in investing activities		(208,536)		(14,832)

FINANCING ACTIVITIES:
Proceeds from issuance of Convertible Notes due 2023		345,000		-
Debt issuance costs		(9,488)		-
Proceeds from borrowings on revolving credit facility		195,000		25,000
Payments on revolving credit facility		(276,168)		(25,000)
Payment of Term Notes		-		(35,862)
Payments of definite consideration		-		(445)
Payments of contingent consideration		(2,193)		(1,929)
Payments of purchase consideration liabilities		-		(235)
Proceeds from exercise of stock options		2,540		2,617
Purchase of treasury stock for stock-based tax withholdings		(14,395)		(9,650)
Issuance of restricted stock		3		4
Net cash provided by (used in) financing activities		240,299		(45,500)

EFFECT OF EXCHANGE RATE CHANGES ON CASH		(572)		283

INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		72,145		(24,862)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD		62,115		54,592

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (a)	$	134,260	$	29,730

(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheet:
Current Assets:
Cash and cash equivalents	$	134,032	$	27,730
Restricted cash included in prepaid expenses and other current assets		228		2,000
Total cash, cash equivalents and restricted cash	$	134,260	$	29,730

Envestnet, Inc.

Reconciliation of Non-GAAP Financial Measures

(in thousands, except share and per share information)

(unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017

Total revenues	$	201,116	$	167,417	$	399,127	$	325,203
Deferred revenue fair value adjustment		62		52		66		105
Adjusted revenues	$	201,178	$	167,469	$	399,193	$	325,308

Net income (loss)	$	(5,991)	$	(6,470)	$	2,011	$	(19,605)
Add (deduct):
Deferred revenue fair value adjustment		62		52		66		105
Interest income		(374)		(29)		(784)		(50)
Interest expense		5,992		3,877		11,228		8,813
Accretion on contingent consideration and purchase liability		95		148		196		304
Income tax provision (benefit)		566		4,844		(13,428)		9,142
Depreciation and amortization		19,185		15,465		38,731		31,300
Non-cash compensation expense		10,476		7,945		18,971		15,403
Restructuring charges and transaction costs		3,345		2,249		5,937		5,627
Severance		1,049		338		3,861		663
Litigation related expense		-		52		-		1,033
Foreign currency		(339)		122		(571)		412
Non-income tax expense adjustment		27		414		(101)		1,163
Loss allocation from equity method investment		151		417		811		702
Loss attributable to non-controlling interest		515		101		584		351
Adjusted EBITDA	$	34,759	$	29,525	$	67,512	$	55,363

Net income (loss)	$	(5,991)	$	(6,470)	$	2,011	$	(19,605)
Income tax provision (benefit) (1)		566		4,844		(13,428)		9,142
Loss before income tax provision		(5,425)		(1,626)	$	(11,417)	$	(10,463)
Add (deduct):
Deferred revenue fair value adjustment		62		52		66		105
Accretion on contingent consideration and purchase liability		95		148		196		304
Non-cash interest expense		3,032		1,331		4,900		4,853
Non-cash compensation expense		10,476		7,945		18,971		15,403
Restructuring charges and transaction costs		3,345		2,249		5,937		5,627
Severance		1,049		338		3,861		663
Amortization of acquired intangibles		13,419		10,371		27,354		20,956
Litigation related expense		-		52		-		1,033
Foreign currency		(339)		122		(571)		412
Non-income tax expense adjustment		27		414		(101)		1,163
Loss allocation from equity method investment		151		417		811		702
Loss attributable to non-controlling interest		515		101		584		351
Adjusted net income before income tax effect		26,407		21,914		50,591		41,109
Income tax effect (2)		(7,130)		(8,766)		(13,660)		(16,444)
Adjusted net income	$	19,277	$	13,148	$	36,931	$	24,665

Basic number of weighted-average shares outstanding		45,247,331		43,855,479		44,963,735		43,513,074
Effect of dilutive shares:
Options to purchase common stock		1,325,947		1,597,746		1,360,300		1,670,493
Unvested restricted stock units		643,319		473,892		832,170		551,227
Diluted number of weighted-average shares outstanding		47,216,597		45,927,117		47,156,205		45,734,794

Adjusted net income per share - diluted	$	0.41	$	0.29	$	0.78	$	0.54

(1) For the three months ended June 30, 2018 and 2017, the effective tax rate computed in accordance with US GAAP equaled (10.4%) and (297.9%), respectively. For the six months ended June 30, 2018 and 2017, the effective tax rate computed in accordance with US GAAP equaled 117.6% and (87.4%), respectively.

(2) An estimated normalized effective tax rate of 27% has been used to compute adjusted net income for the three and six months ended June 30, 2018. An estimated normalized effective tax rate of 40% has been used to compute adjusted net income for the three and six months ended June 30, 2017.

Envestnet, Inc.

Reconciliation of Non-GAAP Financial Measures

Segment Information

(in thousands)

(unaudited)


	Three Months Ended June 30, 2018
	Envestnet		Envestnet \| Yodlee		Nonsegment		Total

Total revenues	$	156,928	$	44,188	$	—	$	201,116
Deferred revenue fair value adjustment		60		2		—		62
Adjusted revenues	$	156,988	$	44,190	$	—	$	201,178

Income (loss) from operations	$	16,359	$	(3,296)	$	(13,058)	$	5
Add:
Deferred revenue fair value adjustment		60		2		—		62
Accretion on contingent consideration and purchase liability		95		—		—		95
Depreciation and amortization		11,026		8,159		—		19,185
Non-cash compensation expense		5,080		2,936		2,460		10,476
Restructuring charges and transaction costs		188		403		2,754		3,345
Non-income tax expense adjustment		27		—		—		27
Severance		1,049		—		—		1,049
Loss attributable to non-controlling interest		515		—		—		515
Adjusted EBITDA	$	34,399	$	8,204	$	(7,844)	$	34,759


	Three Months Ended June 30, 2017
	Envestnet		Envestnet \| Yodlee		Nonsegment		Total

Total revenues	$	129,372	$	38,045	$	—	$	167,417
Deferred revenue fair value adjustment		7		45		—		52
Adjusted revenues	$	129,379	$	38,090	$	—	$	167,469

Income (loss) from operations	$	15,811	$	(5,635)	$	(7,433)	$	2,743
Add:
Deferred revenue fair value adjustment		7		45		—		52
Accretion on contingent consideration and purchase liability		148		—		—		148
Depreciation and amortization		6,361		9,104		—		15,465
Non-cash compensation expense		4,218		2,721		1,006		7,945
Restructuring charges and transaction costs		600		—		1,649		2,249
Non-income tax expense adjustment		414		—		—		414
Severance		307		15		16		338
Litigation related expense		—		52		—		52
Other loss		—		—		18		18
Loss attributable to non-controlling interest		101		—		—		101
Adjusted EBITDA	$	27,967	$	6,302	$	(4,744)	$	29,525


	Six Months Ended June 30, 2018
	Envestnet		Envestnet \| Yodlee		Nonsegment		Total

Total revenues	$	312,916	$	86,211	$	—	$	399,127
Deferred revenue fair value adjustment		58		8		—		66
Adjusted revenues	$	312,974	$	86,219	$	—	$	399,193

Income (loss) from operations	$	32,220	$	(7,705)	$	(25,248)	$	(733)
Add (deduct):
Deferred revenue fair value adjustment		58		8		—		66
Accretion on contingent consideration and purchase liability		196		—		—		196
Depreciation and amortization		22,499		16,232		—		38,731
Non-cash compensation expense		9,134		5,400		4,437		18,971
Restructuring charges and transaction costs		225		603		5,109		5,937
Non-income tax expense adjustment		(101)		—		—		(101)
Severance		3,478		383		—		3,861
Loss attributable to non-controlling interest		584		—		—		584
Adjusted EBITDA	$	68,293	$	14,921	$	(15,702)	$	67,512


	Six Months Ended June 30, 2017
	Envestnet		Envestnet \| Yodlee		Nonsegment		Total

Total revenues	$	250,690	$	74,513	$	—	$	325,203
Deferred revenue fair value adjustment		36		69		—		105
Adjusted revenues	$	250,726	$	74,582	$	—	$	325,308

Income (loss) from operations	$	29,322	$	(13,343)	$	(16,590)	$	(611)
Add:
Deferred revenue fair value adjustment		36		69		—		105
Accretion on contingent consideration and purchase liability		304		—		—		304
Depreciation and amortization		12,782		18,518		—		31,300
Non-cash compensation expense		7,892		5,462		2,049		15,403
Restructuring charges and transaction costs		695		—		4,932		5,627
Non-income tax expense adjustment		1,163		—		—		1,163
Severance		423		224		16		663
Litigation related expense		—		1,033		—		1,033
Other loss		—		—		25		25
Loss attributable to non-controlling interest		351		—		—		351
Adjusted EBITDA	$	52,968	$	11,963	$	(9,568)	$	55,363

Envestnet, Inc.

Historical Assets, Accounts and Advisors

(in millions, except accounts and advisors)

(unaudited)


	As of
	June 30,		September 30,		December 31,		March 31,		June 30,
	2017		2017		2017		2018		2018
	(in millions except accounts and advisors data)
Platform Assets
Assets Under Management (AUM)	$	122,543	$	131,809	$	141,518	$	143,945	$	148,537
Assets Under Administration (AUA)		271,450		293,963		308,480		353,379		360,850
Subtotal AUM/A		393,993		425,772		449,998		497,324		509,387
Subscription		1,099,775		1,161,893		1,253,528		2,076,382		2,167,084
Total Platform Assets	$	1,493,768	$	1,587,665	$	1,703,526	$	2,573,706	$	2,676,471
Platform Accounts
AUM		614,973		652,060		685,925		724,774		759,926
AUA		1,083,417		1,145,050		1,217,697		1,389,489		1,417,795
Subtotal AUM/A		1,698,390		1,797,110		1,903,622		2,114,263		2,177,721
Subscription		4,846,596		4,944,640		5,054,015		7,985,777		8,042,900
Total Platform Accounts		6,544,986		6,741,750		6,957,637		10,100,040		10,220,621
Advisors
AUM/A		38,498		40,379		40,485		44,790		44,900
Subscription		24,499		24,501		25,566		43,037		43,700
Total Advisors		62,997		64,880		66,051		87,827		88,600

The following tables summarize the changes in AUM and AUA for the three months ended June 30, 2018:


In Millions Except Accounts	3/31/2018		Gross Sales		Redemp- tions		Net Flows		Market Impact		Reclass to Subscription		6/30/2018

Assets under Management (AUM)	$	143,945	$	13,859	$	(8,138)	$	5,721	$	987	$	(2,116)	$	148,537
Assets under Administration (AUA)		353,379		27,015		(23,186)		3,829		5,022		(1,380)		360,850
Total AUM/A	$	497,324	$	40,874	$	(31,324)	$	9,550	$	6,009	$	(3,496)	$	509,387

Fee-Based Accounts		2,114,263						65,515				(2,057)		2,177,721

The above AUM/A gross sales figures include $5.1 billion in new client conversions. The Company onboarded an additional $31.0 billion in subscription conversions during the second quarter, bringing total conversions for the quarter to $36.1 billion.