Exhibit 99.1

Envestnet Reports First Quarter 2021 Financial Results

Chicago, IL — May 6, 2021 — Envestnet (NYSE: ENV), a leading provider of intelligent systems for wealth management and financial wellness, today reported financial results for the three months ended March 31, 2021.
Three months ended
Key Financial MetricsMarch 31,%
(in millions except per share data)20212020Change
GAAP:
Total revenues$275.1 $246.5 12%
Net income (loss)$14.9 $(7.2)n/m
Net income (loss) per diluted share attributable to Envestnet, Inc.$0.27 $(0.14)n/m
Non-GAAP:
Adjusted revenues(1)
$275.2 $247.0 11%
Adjusted EBITDA(1)
$68.3 $54.6 25%
Adjusted net income(1)
$41.9 $31.2 34%
Adjusted net income per diluted share(1)
$0.64 $0.57 12%
n/m - not meaningful

“During the first quarter Envestnet again delivered strong financial results, exceeding our revenue, adjusted EBITDA and adjusted EPS expectations,” said Bill Crager, Chief Executive Officer.

“We are executing on our accelerated investment plan to achieve faster growth, gain unique competitive advantage and fuse our capabilities to become the ecosystem that powers the intelligent financial life,” concluded Mr. Crager.

Financial Results for the First Quarter of 2021

Asset-based recurring revenues increased 18% from the first quarter of 2020, and represented 58% of total revenues for the first quarter of 2021 compared to 55% for the first quarter 2020. Subscription-based recurring revenues increased 5% from the first quarter of 2020, and represented 40% of total revenues for the first quarter of 2021, compared to 42% for the first quarter of 2020. Professional services and other non-recurring revenues decreased 18% from the prior year period. Total revenues increased 12% to $275.1 million for the first quarter of 2021 from $246.5 million for the first quarter of 2020.

Total operating expenses for the first quarter of 2021 increased 2% to $258.3 million from $254.2 million in the prior year period. Cost of revenues increased 24% to $92.9 million for the first quarter of 2021 from $74.9 million for the prior year period. Compensation and benefits decreased 9% to $100.7 million for the first quarter of 2021 from $110.4 million for the prior year period. Compensation and benefits were 37% of total revenues for the first quarter of 2021, compared to 45% in the prior year period. General and administration expenses decreased 12% to $36.3 million for the first quarter of 2021 from $41.1 million for the prior year period. General and administrative expenses were 13% of total revenues for the first quarter of 2021, compared to 17% in the prior year period. 

Income from operations was $16.8 million for the first quarter of 2021 compared to loss from of $7.6 million for the first quarter of 2020. Net income was $14.9 million for the first quarter of 2021 compared to net loss of $7.2 million for the first quarter of 2020. Net income per diluted share attributable to Envestnet, Inc. was $0.27 for the first quarter of 2021 compared to net loss per diluted share attributable to Envestnet, Inc. of $0.14 for the first quarter of 2020.



Adjusted revenues(1) for the first quarter of 2021 increased 11% to $275.2 million from $247.0 million for the prior year period. Adjusted EBITDA(1) for the first quarter of 2021 increased 25% to $68.3 million from $54.6 million for the prior year period. Adjusted net income(1) increased 34% for the first quarter of 2021 to $41.9 million from $31.2 million for the prior year period. Adjusted net income per diluted share(1) for the first quarter of 2021 increased 12% to $0.64 from $0.57 in the first quarter of 2020.

Balance Sheet and Liquidity

As of March 31, 2021, the Company had $372.0 million in cash and cash equivalents and $862.5 million in outstanding debt. The outstanding debt as of March 31, 2021 included $345 million in convertible notes maturing in 2023 and $517.5 million in convertible notes maturing in 2025. The Company's $500 million revolving credit facility was undrawn as of March 31, 2021.

Outlook

The Company provided the following outlook for the second quarter ending June 30, 2021 and full year ending December 31, 2021. This outlook is based on the market value of assets on March 31, 2021. We caution that we cannot predict the market value of our assets on any future date. See “Cautionary Statement Regarding Forward-Looking Statements.”
In Millions Except Adjusted EPS2Q 2021FY 2021
GAAP:
Revenues:
Asset-based$166.5 -$168.0 
Subscription-based110.0 -111.0 
Total recurring revenues$276.5 -$279.0 
Professional services and other revenues4.5 -5.0 
Total revenues$281.0 -$284.0 $1,137.7 -$1,147.7 
Asset-based cost of revenues$91.5 -$92.0 -
Total cost of revenues$99.0 -$99.5 
Net income(a)-(a)(a)-(a)
Diluted shares outstanding65.765.6
Net income per diluted share(a)-(a)(a)-(a)
Non-GAAP:
Adjusted revenues (1):
  Asset-based$166.5 -$168.0 
  Subscription-based110.0 -111.0 
Total recurring revenues$276.5 -$279.0 
  Professional services and other revenues4.5 -5.0 
Total revenues$281.0 -$284.0 $1,138.0 -$1,148.0 
Adjusted EBITDA(1)
$60.0 -$62.0 $230.0 -$236.0 
Adjusted net income per diluted share(1)
$0.53 -$0.55 $2.03 -$2.10 

(a) 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.

2

Conference Call

Envestnet will host a conference call to discuss first quarter 2021 financial results today at 5:00 p.m. ET. The live webcast and accompanying presentation can be accessed from Envestnet’s investor relations website at http://ir.envestnet.com/. A replay of the webcast will be available on the investor relations website following the call.

About Envestnet

Envestnet, Inc. (NYSE: ENV) is transforming the way financial advice and wellness are delivered. Our mission is to empower advisors and financial service providers with innovative technology, solutions and intelligence to make financial wellness a reality for everyone. Over 106,000 advisors and more than 5,200 companies including: 17 of the 20 largest U.S. banks, 47 of the 50 largest wealth management and brokerage firms, over 500 of the largest RIAs and hundreds of FinTech companies, leverage Envestnet technology and services that help drive better outcomes for enterprises, advisors and their clients.

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

(1) Non-GAAP Financial Measures

“Adjusted revenues” excludes the effect of purchase accounting on the fair value of acquired deferred revenue. Under GAAP, we record at fair value the acquired deferred revenue for contracts in effect at the time the entities were acquired. Consequently, revenue related to acquired entities for periods subsequent to the acquisition does not reflect the full amount of revenue that would have been recorded by these entities had they remained stand‑alone entities. Adjusted revenues has limitations as a financial measure, should be considered as supplemental in nature and is not meant as a substitute for revenue prepared in accordance with GAAP.

“Adjusted EBITDA” represents net income (loss) before deferred revenue fair value adjustment, interest income, interest expense, accretion on contingent consideration and purchase liability, income tax provision (benefit), depreciation and amortization, non-cash compensation expense, restructuring charges and transaction costs, severance, fair market value adjustment on contingent consideration liability, litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, gain on acquisition of equity method investment, loss allocation from equity method investments and (income) 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, cash interest on our convertible notes (subsequent to the adoption of ASU 2020-06 on January 1, 2021), non-cash compensation expense, restructuring charges and transaction costs, severance, fair market value adjustment on contingent consideration liability, amortization of acquired intangibles, litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, gain on acquisition of equity method investment, loss allocation from equity method investments and (income) 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. Beginning January 1, 2021, the dilutive effect of our Convertible Notes are calculated using the if-converted method in accordance with the adoption of ASU 2020-06. As a result, 9.9 million potential shares to be issued in connection with our Convertible Notes are considered to be dilutive for purposes of the adjusted net income per share calculation beginning January 1, 2021.

3

See reconciliations of Non-GAAP Financial Measures on pages 9-12 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 second quarter and full year of 2021, its strategic operational plans and growth strategy are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and the Company’s actual results could differ materially from the results expressed or implied by such forward-looking statements. Furthermore, reported results should not be considered as an indication of future performance. The potential risks, uncertainties and other factors that could cause actual results to differ from those expressed by the forward-looking statements in this press release include, but are not limited to, a pandemic or health crisis, including the COVID-19 pandemic, and its impact on financial institutions, the global economy or capital markets, as well as our products, clients, vendors and employees, and our results of operations, the full extent of which is currently unknown; changes and volatility in financial and capital markets, which could result in changes in demand for our products or services or in the value of assets on which we earn revenue; the possibility that the anticipated benefits of any of our acquisitions will not be realized to the extent or when expected, difficulty in sustaining rapid revenue growth, which may place significant demands on our administrative, operational and financial resources, the concentration of nearly all of our revenues from the delivery of our solutions and services to clients in the financial services industry, our reliance on a limited number of clients for a material portion of our revenues, the renegotiation of fee percentages or termination of our services by our clients, our ability to identify potential acquisition candidates, complete acquisitions and successfully integrate acquired companies, the impact of market and economic conditions on revenues, our inability to successfully execute the conversion of clients’ assets from their technology platform to our technology platforms in a timely and accurate manner, our ability to expand our relationships with existing customers, grow the number of customers and derive revenue from new offerings such as our data analytics solutions and market research services and premium financial applications, compliance failures, adverse judicial or regulatory proceedings against us, liabilities associated with potential, perceived or actual breaches of fiduciary duties and/or conflicts of interest, changes in laws and regulations, including tax laws and regulations, general economic conditions, political and regulatory conditions, the impact of fluctuations in market condition and interest rates on the demand for our products and services and the value of assets under management or administration, the impact of market conditions on our ability to issue debt and equity, the impact of fluctuations in interest rates on our cost of borrowing, our financial performance, the results of our investments in research and development, our data center and other infrastructure, our ability to maintain the security and integrity of our systems and facilities and to maintain the privacy of personal information, failure of our systems to work properly, our ability to realize operating efficiencies, the advantages of our solutions as compared to those of others, the failure to protect our intellectual property rights, our ability to establish and maintain intellectual property rights, our ability to retain and hire necessary employees and appropriately staff our operations and management’s response to these factors. More information regarding these and other risks, uncertainties and factors is contained in our filings with the Securities and Exchange Commission (“SEC”) which are available on the SEC’s website at www.sec.gov or our Investor Relations website at http://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 May 6, 2021 and, unless required by law, we undertake no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to report the occurrence of unanticipated events.
Contacts
Investor RelationsMedia Relations
investor.relations@envestnet.commediarelations@envestnet.com
(312) 827-3940
4

Envestnet, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
March 31,December 31,
20212020
Assets
Current assets:
Cash and cash equivalents$371,977 $384,565 
Fees receivable, net79,293 80,064 
Prepaid expenses and other current assets37,751 40,570 
Total current assets489,021 505,199 
Property and equipment, net51,077 47,969 
Internally developed software, net105,288 96,501 
Intangible assets, net443,023 435,041 
Goodwill906,756 906,773 
Operating lease right-of-use-assets, net99,231 105,249 
Other non-current assets48,592 47,558 
Total assets$2,142,988 $2,144,290 
Liabilities and Equity
Current liabilities:
Accrued expenses and other liabilities$136,417 $158,548 
Accounts payable24,567 18,003 
Operating lease liabilities13,270 13,649 
Contingent consideration11,746 11,251 
Deferred revenue42,921 34,918 
Total current liabilities228,921 236,369 
Long-term debt845,195 756,503 
Non-current operating lease liabilities109,458 112,182 
Deferred tax liabilities, net23,042 34,740 
Other non-current liabilities22,643 28,678 
Total liabilities1,229,259 1,168,472 
Equity:
Total stockholders’ equity914,141 976,337 
Non-controlling interest(412)(519)
Total liabilities and equity$2,142,988 $2,144,290 
5

Envestnet, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share information)
(unaudited)
 
Three Months Ended
March 31,
20212020
Revenues:
Asset-based$159,375 $134,811 
Subscription-based109,829 104,551 
Total recurring revenues269,204 239,362 
Professional services and other revenues5,901 7,177 
Total revenues275,105 246,539 
Operating expenses:
Cost of revenues92,869 74,933 
Compensation and benefits100,714 110,430 
General and administration36,315 41,110 
Depreciation and amortization28,392 27,683 
Total operating expenses258,290 254,156 
Income (loss) from operations16,815 (7,617)
Other expense, net(7,468)(1,537)
Income (loss) before income tax benefit9,347 (9,154)
Income tax benefit(5,588)(1,964)
Net income (loss)14,935 (7,190)
Add: Net (income) loss attributable to non-controlling interest11 (146)
Net income (loss) attributable to Envestnet, Inc.$14,946 $(7,336)
Net income (loss) per share attributable to Envestnet, Inc.:
Basic$0.28 $(0.14)
Diluted$0.27 $(0.14)
Weighted average common shares outstanding:
Basic54,208,469 53,016,511 
Diluted59,917,648 53,016,511 
6

Envestnet, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended
March 31,
20212020
OPERATING ACTIVITIES:
Net income (loss)$14,935 $(7,190)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization28,392 27,683 
Provision for doubtful accounts298 1,026 
Deferred income taxes(3,581)(1,587)
Non-cash compensation expense14,137 15,985 
Non-cash interest expense2,015 4,463 
Accretion on contingent consideration and purchase liability388 599 
Fair market value adjustment to contingent consideration liability(140)— 
Gain on acquisition of equity method investment— (4,230)
Loss allocation from equity method investments3,288 2,030 
Other165 — 
Changes in operating assets and liabilities, net of acquisitions:
Fees receivables, net473 (14,333)
Prepaid expenses and other current assets1,756 (6,793)
Other non-current assets3,093 641 
Accrued expenses and other liabilities(28,668)(11,554)
Accounts payable6,444 (3,205)
Deferred revenue7,882 5,598 
Other non-current liabilities(1,068)(145)
Net cash provided by operating activities49,809 8,988 
INVESTING ACTIVITIES:
Purchases of property and equipment(7,062)(2,160)
Capitalization of internally developed software(15,058)(11,572)
Investments in private companies(2,538)(11,700)
Acquisition of proprietary technology(25,517)— 
Acquisitions of businesses, net of cash acquired— (20,257)
Net cash used in investing activities(50,175)(45,689)

-continued-

















7

Envestnet, Inc.
Condensed Consolidated Statements of Cash Flows (continued)
(in thousands)
(unaudited)

Nine Months Ended
September 30,
20212020
FINANCING ACTIVITIES:
Proceeds from borrowings on revolving credit facility— 45,000 
Payments on revolving credit facility— (15,000)
Payments of contingent consideration(1,000)— 
Proceeds from exercise of stock options522 3,408 
Taxes paid in lieu of shares issued for stock-based compensation(9,541)(9,199)
Share repurchase(1,672)— 
Other(479)2 
Net cash (used in) provided by financing activities(12,170)24,211 
EFFECT OF EXCHANGE RATE CHANGES ON CASH(52)(1,496)
DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(12,588)(13,986)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD384,714 82,755 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (a)$372,126 $68,769 

(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets:
March 31,March 31,
20212020
Cash and cash equivalents$371,977 $68,601 
Restricted cash included in other non-current assets149 168 
Total cash, cash equivalents and restricted cash$372,126 $68,769 


8

Reconciliation of Non-GAAP Financial Measures
(in thousands)
(unaudited) 
Three Months Ended
March 31,
20212020
Total revenues$275,105 $246,539 
Deferred revenue fair value adjustment (a)
80 439 
Adjusted revenues$275,185 $246,978 
Net income (loss)$14,935 $(7,190)
Add (deduct):
Deferred revenue fair value adjustment (a)
80 439 
Interest income (b)
(170)(391)
Interest expense (b)
4,215 7,134 
Accretion on contingent consideration and purchase liability (c)
388 599 
Income tax benefit(5,588)(1,964)
Depreciation and amortization28,392 27,683 
Non-cash compensation expense (d)
14,137 13,470 
Restructuring charges and transaction costs (c)
2,784 2,820 
Severance (e)
4,914 13,982 
Fair market value adjustment on contingent consideration liability (c)
(140)— 
Non-recurring litigation and regulatory related expenses (c)
1,709 703 
Foreign currency (b)
151 (494)
Non-income tax expense adjustment (c)
(566)188 
Non-recurring gain (b)
— (4,230)
Loss allocation from equity method investments (b)
3,288 2,030 
Income attributable to non-controlling interest(265)(201)
Adjusted EBITDA$68,264 $54,578 
(a)Included within subscription-based revenues in the condensed consolidated statements of operations.
(b)Included within other expense, net in the condensed consolidated statements of operations.
(c)Included within general and administrative expenses in the condensed consolidated statements of operations.
(d)For the three months ended March 31, 2021, the entire amount was included in compensation and benefits in the condensed consolidated statements of operations. For the three months ended March 31, 2020, $15,994 was included in compensation and benefits and a fair value adjustment of $(2,524) was included in other expense, net, in the condensed consolidated statements of operations.
(e)Included within compensation and benefits in the condensed consolidated statements of operations.

9

Envestnet, Inc.
Reconciliation of Non-GAAP Financial Measures
(in thousands, except share and per share information)
(unaudited) 
Three Months Ended
March 31,
20212020
Net income (loss)$14,935 $(7,190)
Income tax provision benefit (a)
(5,588)(1,964)
Income (loss) before income tax benefit9,347 (9,154)
Add (deduct):
Deferred revenue fair value adjustment (b)
80 439 
Accretion on contingent consideration and purchase
liability (c)
388 599 
Non-cash interest expense (d)
1,423 2,962 
Cash interest - Convertible Notes (d)
2,480 — 
Non-cash compensation expense (e)
14,137 13,470 
Restructuring charges and transaction costs (c)
2,784 2,820 
Severance (f)
4,914 13,982 
Fair market value adjustment on contingent consideration liability (c)
(140)— 
Amortization of acquired intangibles (g)
16,478 18,758 
Non-recurring litigation and regulatory related expenses (c)
1,709 703 
Foreign currency (d)
151 (494)
Non-income tax expense adjustment (c)
(566)188 
Non-recurring gain (d)
— (4,230)
Loss allocation from equity method investments (d)
3,288 2,030 
Income attributable to non-controlling interest(265)(201)
Adjusted net income before income tax effect56,208 41,872 
Income tax effect (h)
(14,333)(10,670)
Adjusted net income$41,875 $31,202 
Basic number of weighted-average shares outstanding54,208,469 53,016,511 
Effect of dilutive shares:
Options to purchase common stock222,387 664,796 
Unvested restricted stock units562,612 600,567 
Convertible notes9,898,549 235,182 
Warrants76,142 42,551 
Diluted number of weighted-average shares outstanding64,968,159 54,559,607 
Adjusted net income per share - diluted$0.64 $0.57 
(a)For the three months ended March 31, 2021 and 2020, the effective tax rate computed in accordance with GAAP equaled (59.8)% and 21.5%, respectively.
(b)Included within subscription-based revenues in the condensed consolidated statements of operations.
(c)Included within general and administrative expenses in the condensed consolidated statements of operations.
(d)Included within other expense, net in the condensed consolidated statements of operations.
(e)For the three months ended March 31, 2021, the entire amount was included in compensation and benefits in the condensed consolidated statements of operations. For the three months ended March 31, 2020, $15,994 was included in compensation and benefits and a fair value adjustment of $(2,524) was included in other expense, net, in the condensed consolidated statements of operations.
(f)Included within compensation and benefits in the condensed consolidated statements of operations.
(g)Included within depreciation and amortization in the condensed consolidated statements of operations.
(h)An estimated normalized effective tax rate of 25.5% have been used to compute adjusted net income for the three months ended March 31, 2021 and 2020.


10

Reconciliation of Non-GAAP Financial Measures
Segment Information
(in thousands)
(unaudited) 
Three months ended March 31, 2021
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Total Revenues$226,410 $48,695 $— $275,105 
Deferred revenue fair value adjustment (a)
80 — — 80 
Adjusted revenues$226,490 $48,695 $— $275,185 
Revenues:
Asset-based$159,375 $— $— $159,375 
Subscription-based64,012 45,817 — 109,829 
Total recurring revenues223,387 45,817 — 269,204 
Professional services and other revenues3,023 2,878 — 5,901 
Total revenues226,410 48,695 — 275,105 
Operating expenses:
Cost of revenues:
Asset-based86,190 — — 86,190 
Subscription-based1,213 5,391 — 6,604 
Professional services and other29 46 — 75 
Total cost of revenues87,432 5,437 — 92,869 
Compensation and benefits62,854 26,289 11,571 100,714 
General and administration20,699 8,516 7,100 36,315 
Depreciation and amortization21,228 7,164 — 28,392 
Total operating expenses$192,213 $47,406 $18,671 $258,290 
Income (loss) from operations$34,197 $1,289 $(18,671)$16,815 
Add:
Deferred revenue fair value adjustment (a)
80 — — 80 
Accretion on contingent consideration and purchase liability (b)
342 46 — 388 
Depreciation and amortization21,228 7,164 — 28,392 
Non-cash compensation expense (c)
7,829 2,841 3,467 14,137 
Restructuring charges and transaction costs (b)
1,365 147 1,272 2,784 
Non-income tax expense adjustment (b)
(535)(31)— (566)
Severance (c)
3,087 1,720 107 4,914 
Fair market value adjustment on contingent consideration liability (b)
— (140)— (140)
Non-recurring litigation and regulatory related expenses (b)
— 1,709 — 1,709 
Income attributable to non-controlling interest(265)— — (265)
Other16 — — 16 
Adjusted EBITDA$67,344 $14,745 $(13,825)$68,264 
(a)Included within subscription-based revenues in the condensed consolidated statements of operations.
(b)Included within general and administrative expenses in the condensed consolidated statements of operations.
(c)Included within compensation and benefits in the condensed consolidated statements of operations.

11

Reconciliation of Non-GAAP Financial Measures
Segment Information (continued)
(in thousands)
(unaudited) 
Three Months Ended March 31, 2020
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Revenues$198,420 $48,119 $— $246,539 
Deferred revenue fair value adjustment (a)
439 — — 439 
Adjusted revenues$198,859 $48,119 $— $246,978 
Revenues:
Asset-based$134,811 $— $— $134,811 
Subscription-based60,323 44,228 — 104,551 
Total recurring revenues195,134 44,228 — 239,362 
Professional services and other revenues3,286 3,891 — 7,177 
Total revenues198,420 48,119 — 246,539 
Operating expenses:
Cost of revenues:
Asset-based68,592 — — 68,592 
Subscription-based1,192 5,085 — 6,277 
Professional services and other8 56 — 64 
Total cost of revenues69,792 5,141 — 74,933 
Compensation and benefits72,588 30,113 7,729 110,430 
General and administration25,280 9,187 6,643 41,110 
Depreciation and amortization19,420 8,263 — 27,683 
Total operating expenses$187,080 $52,704 $14,372 $254,156 
Income (loss) from operations$11,340 $(4,585)$(14,372)$(7,617)
Add:
Deferred revenue fair value adjustment (a)
439 — — 439 
Accretion on contingent consideration and purchase liability (b)
373 226 — 599 
Depreciation and amortization19,420 8,263 — 27,683 
Non-cash compensation expense (c)
9,697 4,226 2,071 15,994 
Restructuring charges and transaction costs (b)
1,189 185 1,446 2,820 
Non-income tax expense adjustment (b)
250 (62)— 188 
Severance (c)
11,002 1,660 1,320 13,982 
Non-recurring litigation and regulator related expenses (b)
— 703 — 703 
Loss attributable to non-controlling interest(201)— — (201)
Other(12)— — (12)
Adjusted EBITDA$53,497 $10,616 $(9,535)$54,578 
(a)Included within subscription-based revenues in the condensed consolidated statements of operations.
(b)Included within general and administrative expenses in the condensed consolidated statements of operations.
(c)Included within compensation and benefits in the condensed consolidated statements of operations.

12

Envestnet, Inc.
Historical Assets, Accounts and Advisors
(in millions, except accounts and advisors)
(unaudited)
 
As of
March 31,June 30,September 30,December 31,March 31,
20202020202020202021
(in millions, except accounts and advisors data)
Platform Assets
Assets under Management (“AUM”)
$185,065 $215,994 $228,905 $263,043 $286,039 
Assets under Administration (“AUA”)312,472 344,957 375,860 405,365 408,858 
Total AUM/A497,537 560,951 604,765 668,408 694,897 
Subscription2,875,394 3,247,400 3,498,353 3,892,814 4,132,917 
Total Platform Assets$3,372,931 $3,808,351 $4,103,118 $4,561,222 $4,827,814 
Platform Accounts
AUM970,896 1,007,386 1,018,817 1,073,122 1,138,183 
AUA1,254,856 1,252,247 1,318,730 1,276,975 1,192,668 
Total AUM/A2,225,752 2,259,633 2,337,547 2,350,097 2,330,851 
Subscription10,090,172 10,003,156 10,639,399 11,079,048 11,453,434 
Total Platform Accounts12,315,924 12,262,789 12,976,946 13,429,145 13,784,285 
Advisors
AUM/A40,971 41,206 41,450 41,206 41,177 
Subscription62,077 62,404 63,862 65,104 65,724 
Total Advisors103,048 103,610 105,312 106,310 106,901 

The following table summarizes the changes in AUM and AUA for the three months ended March 31, 2021:
12/31/2020Gross
Sales		RedemptionsNet
Flows		Market ImpactReclass to Subscription3/31/2021
(in millions, except account data)
AUM$263,043 $28,324 $(13,351)$14,973 $8,023 $— $286,039 
AUA405,365 30,639 (23,033)7,606 9,216 (13,329)408,858 
Total AUM/A$668,408 $58,963 $(36,384)$22,579 $17,239 $(13,329)$694,897 
Fee-Based Accounts2,350,097 88,734 (107,980)2,330,851 

The above AUM/A gross sales figures include $8.3 billion in new client conversions. The Company onboarded an additional $34.5 billion in subscription conversions during the three months ended March 31, 2021, bringing total conversions for the quarter to $42.8 billion.
13