Exhibit 99.1

Envestnet Reports Third Quarter 2021 Financial Results

Revenues, adjusted EBITDA and adjusted EPS exceed guidance in Q3 2021, Raising 2021 Outlook

Chicago, IL — November 8, 2021 — Envestnet (NYSE: ENV), a leading provider of intelligent systems for wealth management and financial wellness, today reported financial results for the three and nine months ended September 30, 2021.

Three months endedNine months ended
Key Financial MetricsSeptember 30,%September 30,%
(in millions except per share data)20212020Change20212020Change
GAAP:
Total revenues$303.1 $252.6 20%$866.9 $734.4 18%
Net income (loss)$11.4 $2.3 n/m$18.0 $(10.3)n/m
Net income (loss) per diluted share attributable to Envestnet, Inc.$0.21 $0.03 n/m$0.33 $(0.19)n/m
Non-GAAP:
Adjusted revenues(1)
$303.1 $252.7 20%$867.1 $735.0 18%
Adjusted EBITDA(1)
$66.2 $67.6 (2)%$205.5 $178.0 15%
Adjusted net income(1)
$39.9 $40.2 (1)%$125.3 $103.2 21%
Adjusted net income per diluted share(1)
$0.61 $0.72 (15)%$1.92 $1.88 2%
n/m - not meaningful

“During the third quarter and first nine months of 2021, Envestnet delivered strong financial results,” said Bill Crager, Chief Executive Officer.

“Our commitment to our vision and strategy continues and we are executing in all areas of our business. Our team is leaned into our mission and the work we are doing to establish Envestnet as the ecosystem that connects data, technology, and solutions to enable The Intelligent Financial Life,” concluded Mr. Crager.

Financial Results for the Third Quarter of 2021

Asset-based recurring revenues increased 34% from the third quarter of 2020, and represented 61% of total revenues for the third quarter of 2021 compared to 55% for the third quarter of 2020. Subscription-based recurring revenues increased 5% from the third quarter of 2020, and represented 37% of total revenues for the third quarter of 2021, compared to 43% for the third quarter of 2020. Professional services and other non-recurring revenues decreased 21% from the prior year period. Total revenues increased 20% to $303.1 million for the third quarter of 2021 from $252.6 million for the third quarter of 2020.

Total operating expenses for the third quarter of 2021 increased 20% to $288.9 million from $240.9 million in the prior year period. Cost of revenues increased 40% to $109.8 million for the third quarter of 2021 from $78.5 million for the prior year period. Compensation and benefits increased 16% to $109.8 million for the third quarter of 2021 from $94.4 million for the prior year period. Compensation and benefits were 36% of total revenues for the third quarter of 2021, compared to 37% for the prior year period. General and administration expenses increased 1% to $39.4 million for the third quarter of 2021 from $39.0 million for the prior year period. General and administration expenses were 13% of total revenues for the third quarter of 2021, compared to 15% for the prior year period. 

Income from operations was $14.1 million for the third quarter of 2021 compared to $11.7 million for the third quarter of 2020. Net income was $11.4 million for the third quarter of 2021 compared to net income of $2.3 million


for the third quarter of 2020. Net income per diluted share attributable to Envestnet, Inc. was $0.21 for the third quarter of 2021 compared to net income per diluted share attributable to Envestnet, Inc. of $0.03 for the third quarter of 2020.

Adjusted revenues(1) for the third quarter of 2021 increased 20% to $303.1 million from $252.7 million for the prior year period. Adjusted EBITDA(1) for the third quarter of 2021 decreased 2% to $66.2 million from $67.6 million for the prior year period. Adjusted net income(1) decreased 1% for the third quarter of 2021 to $39.9 million from $40.2 million for the prior year period. Adjusted net income per diluted share(1) for the third quarter of 2021 decreased 15% to $0.61 from $0.72 in the third quarter of 2020.

Balance Sheet and Liquidity

As of September 30, 2021, Envestnet had $393.8 million in cash and cash equivalents and $862.5 million in outstanding debt. The outstanding debt as of September 30, 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 September 30, 2021.

Outlook

Envestnet provided the following outlook for the fourth quarter and full year ending December 31, 2021. This outlook is based on the market value of assets as of September 30, 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 EPS4Q 2021FY 2021
GAAP:
Revenues:
Asset-based$188.5 -$189.5 
Subscription-based116.5 -117.0 
Total recurring revenues$305.0 -$306.5 
Professional services and other revenues5.0 -5.5 
Total revenues$310.0 -$312.0 $1,177.0 -$1,179.0 
Asset-based cost of revenues$105.5 -$106.0 
Total cost of revenues$113.6 -$114.1 
Net income(a)-(a)(a)-(a)
Diluted shares outstanding65.365.2
Net income per diluted share(a)-(a)(a)-(a)
Non-GAAP:
Adjusted revenues (1):
  Asset-based$188.5 -$189.5 
  Subscription-based116.5 -117.0 
Total recurring revenues$305.0 -$306.5 
  Professional services and other revenues5.0 -5.5 
Total revenues$310.0 -$312.0 $1,177.0 -$1,179.0 
Adjusted EBITDA(1)
$54.0 -$55.0 $259.5 -$260.5 
Adjusted net income per diluted share(1)
$0.49$2.41

(a) Envestnet 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 third 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://investor.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. Approximately 108,000 advisors and more than 6,000 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, non-recurring litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, non-recurring gain, gain on settlement of liability, gain on insurance reimbursement, fair market value adjustment to investment in private company, loss allocation from equity method investments and income 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, non-recurring litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, non-recurring gain, gain on settlement of liability, gain on insurance reimbursement, fair market value adjustment to investment in private company, loss allocation from equity method investments and income 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 9-15 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 fourth 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://investor.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, 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)
 
September 30,December 31,
20212020
Assets
Current assets:
Cash and cash equivalents$393,799 $384,565 
Fees receivable, net116,137 80,064 
Prepaid expenses and other current assets39,585 40,570 
Total current assets549,521 505,199 
Property and equipment, net48,158 47,969 
Internally developed software, net125,590 96,501 
Intangible assets, net417,644 435,041 
Goodwill924,504 906,773 
Operating lease right-of-use-assets, net93,204 105,249 
Other non-current assets58,724 47,558 
Total assets$2,217,345 $2,144,290 
Liabilities and Equity
Current liabilities:
Accrued expenses and other liabilities$200,206 $158,548 
Accounts payable21,763 18,003 
Operating lease liabilities12,021 13,649 
Contingent consideration806 11,251 
Deferred revenue34,609 34,918 
Total current liabilities269,405 236,369 
Long-term debt847,633 756,503 
Non-current operating lease liabilities107,852 112,182 
Deferred tax liabilities, net27,754 34,740 
Other non-current liabilities17,626 28,678 
Total liabilities1,270,270 1,168,472 
Equity:
Total stockholders’ equity944,435 976,337 
Non-controlling interest2,640 (519)
Total liabilities and equity$2,217,345 $2,144,290 
5

Envestnet, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share information)
(unaudited)
 
Three Months EndedNine Months Ended
September 30,September 30,
2021202020212020
Revenues:
Asset-based$184,008 $137,744 $513,458 $394,801 
Subscription-based113,572 107,897 335,905 317,427 
Total recurring revenues297,580 245,641 849,363 712,228 
Professional services and other revenues5,473 6,918 17,533 22,183 
Total revenues303,053 252,559 866,896 734,411 
Operating expenses:
Cost of revenues109,836 78,545 303,199 222,327 
Compensation and benefits109,839 94,428 316,101 300,423 
General and administration39,393 38,979 117,463 118,537 
Depreciation and amortization29,850 28,951 88,252 85,077 
Total operating expenses288,918 240,903 825,015 726,364 
Income from operations14,135 11,656 41,881 8,047 
Other expense, net(3,551)(8,836)(14,803)(18,546)
Income (loss) before income tax provision (benefit)10,584 2,820 27,078 (10,499)
Income tax provision (benefit)(854)497 9,074 (161)
Net income (loss)11,438 2,323 18,004 (10,338)
Add: Net (income) loss attributable to non-controlling interest302 (413)401 (12)
Net income (loss) attributable to Envestnet, Inc.$11,740 $1,910 $18,405 $(10,350)
Net income (loss) per share attributable to Envestnet, Inc.:
Basic$0.22 $0.04 $0.34 $(0.19)
Diluted$0.21 $0.03 $0.33 $(0.19)
Weighted average common shares outstanding:
Basic54,547,858 53,800,048 54,400,247 53,464,101 
Diluted55,388,627 55,558,983 55,287,972 53,464,101 
6

Envestnet, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
September 30,
20212020
OPERATING ACTIVITIES:
Net income (loss) $18,004 $(10,338)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization88,252 85,077 
Provision for doubtful accounts2,051 2,323 
Deferred income taxes7,078 79 
Non-cash compensation expense50,307 45,721 
Non-cash interest expense4,889 12,255 
Accretion on contingent consideration and purchase liability656 1,308 
Payments of contingent consideration(2,360)— 
Fair market value adjustment to contingent consideration liability(1,067)(2,056)
Fair market value adjustment to investment in private company(758)— 
Gain on settlement of liability(1,206)— 
Gain on acquisition of equity method investment— (4,230)
Loss allocation from equity method investments5,553 4,280 
Impairment of right of use assets1,537 1,426 
Other249 556 
Changes in operating assets and liabilities, net of acquisitions:
Fees receivables, net(38,030)(10,825)
Prepaid expenses and other current assets569 (11,139)
Other non-current assets4,854 (1,807)
Accrued expenses and other liabilities26,637 3,393 
Accounts payable4,122 12,084 
Deferred revenue(1,065)1,488 
Other non-current liabilities(298)2,084 
Net cash provided by operating activities169,974 131,679 
INVESTING ACTIVITIES:
Purchases of property and equipment(15,779)(8,824)
Capitalization of internally developed software(49,024)(40,257)
Investments in private companies(8,926)(13,875)
Acquisition of proprietary technology(25,517)— 
Acquisitions of businesses, net of cash acquired(32,794)(20,257)
Advance for technology solutions(3,000)— 
Net cash used in investing activities(135,040)(83,213)

-continued-











7

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

Nine Months Ended
September 30,
20212020
FINANCING ACTIVITIES:
Proceeds from issuance of Convertible Notes due 2025— 517,500 
Convertible Notes due 2025 issuance costs— (14,540)
Proceeds from borrowings on revolving credit facility— 45,000 
Payments on revolving credit facility— (305,000)
Capital contributions - non-controlling shareholders3,201 — 
Payments of deferred consideration on prior acquisitions— (1,879)
Payments of contingent consideration(9,200)— 
Proceeds from exercise of stock options920 8,053 
Taxes paid in lieu of shares issued for stock-based compensation(17,314)(16,283)
Share repurchases(2,097)— 
Other(666)3 
Net cash provided by (used in) financing activities(25,156)232,854 
EFFECT OF EXCHANGE RATE CHANGES ON CASH(544)(1,009)
INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH9,234 280,311 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD384,714 82,755 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (a)$393,948 $363,066 

(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets:
September 30,September 30,
20212020
Cash and cash equivalents$393,799 $362,918 
Restricted cash included in prepaid expenses and other current assets149 — 
Restricted cash included in other non-current assets— 148 
Total cash, cash equivalents and restricted cash$393,948 $363,066 


8

Reconciliation of Non-GAAP Financial Measures
(in thousands)
(unaudited) 

Three Months EndedNine Months Ended
September 30,September 30,
2021202020212020
Total revenues$303,053 $252,559 $866,896 $734,411 
Deferred revenue fair value adjustment (a)
67 91 227 607 
Adjusted revenues$303,120 $252,650 $867,123 $735,018 
Net income (loss)$11,438 $2,323 $18,004 $(10,338)
Add (deduct): 
Deferred revenue fair value adjustment (a)
67 91 227 607 
Interest income (b)
(202)(262)(569)(850)
Interest expense (b)
4,242 8,139 12,682 21,907 
Income tax provision (benefit)(854)497 9,074 (161)
Depreciation and amortization29,850 28,951 88,252 85,077 
Non-cash compensation expense (d)
18,885 15,852 50,307 43,197 
Restructuring charges and transaction costs (f)
3,403 4,993 11,215 14,461 
Severance (e)
207 2,715 10,498 18,566 
Accretion on contingent consideration and purchase
liability (c)
81 398 656 1,308 
Fair market value adjustment on contingent consideration liability (c)
(927)(74)(1,067)(2,056)
Fair market value adjustment to investment in private company (b)
— — (758)— 
Non-recurring litigation and regulatory related expenses (c)
1,512 1,809 5,159 6,029 
Foreign currency (b)
97 (37)110 (68)
Non-recurring gain (b)
— — — (4,230)
Gain on settlement of liability (b)
(1,206)— (1,206)— 
Gain on insurance reimbursement (b)
(968)— (968)— 
Non-income tax expense adjustment (c)
(831)1,795 (1,102)1,341 
Loss allocation from equity method investments (b)
1,508 994 5,553 4,280 
Income attributable to non-controlling interest(114)(603)(554)(1,103)
Adjusted EBITDA$66,188 $67,581 $205,513 $177,967 

(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 administration expenses in the condensed consolidated statements of operations.
(d)All of 2021 included in compensation and benefits in the condensed consolidated statements of operations. For the three months ended September 30, 2020, $15,852 was included in compensation and benefits in the condensed consolidated statements of operations. For the nine months ended September 30, 2020, $45,721 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.
(f)For the three months ended September 30, 2021 and 2020, $1,548 and $3,992 were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the three months ended September 30, 2021 and 2020, $1,855 and $969 were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the three months ended September 30, 2021 and 2020, $0 and $32 were included within other expense, net, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2021 and 2020, $6,037 and $11,485 were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2021 and 2020, $5,178 and $2,764 were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2021 and 2020, $0 and $212 were included within other expense, net, respectively, 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 EndedNine Months Ended
September 30,September 30,
2021202020212020
Net income (loss)$11,438 $2,323 $18,004 $(10,338)
Income tax provision (benefit) (a)
(854)497 9,074 (161)
Income (loss) before income tax provision (benefit)10,584 2,820 27,078 (10,499)
Add (deduct):
Deferred revenue fair value adjustment (b)
67 91 227 607 
Non-cash interest expense (d)
1,443 4,738 4,295 10,682 
Cash interest - Convertible Notes (d)
2,479 — 7,439 — 
Non-cash compensation expense (e)
18,885 15,852 50,307 43,197 
Restructuring charges and transaction costs (h)
3,403 4,993 11,215 14,461 
Severance (f)
207 2,715 10,498 18,566 
Accretion on contingent consideration and purchase
liability (c)
81 398 656 1,308 
Fair market value adjustment on contingent consideration liability (c)
(927)(74)(1,067)(2,056)
Fair market value adjustment to investment in private company (d)
— — (758)— 
Amortization of acquired intangibles (g)
17,390 18,510 51,370 56,014 
Non-recurring litigation and regulatory related expenses (c)
1,512 1,809 5,159 6,029 
Foreign currency (d)
97 (37)110 (68)
Non-recurring gain (d)
— — — (4,230)
Gain on settlement of liability (d)
(1,206)— (1,206)— 
Gain on insurance reimbursement (d)
(968)— (968)— 
Non-income tax expense adjustment (c)
(831)1,795 (1,102)1,341 
Loss allocation from equity method investments (d)
1,508 994 5,553 4,280 
Income attributable to non-controlling interest(114)(603)(554)(1,103)
Adjusted net income before income tax effect53,610 54,001 168,252 138,529 
Income tax effect (i)
(13,670)(13,772)(42,904)(35,325)
Adjusted net income$39,940 $40,229 $125,348 $103,204 
Basic number of weighted-average shares outstanding54,547,858 53,800,048 54,400,247 53,464,101 
Effect of dilutive shares:
Options to purchase common stock201,103 331,728 207,281 458,232 
Unvested restricted stock units570,515 610,442 614,005 548,858 
Convertible notes9,898,549 730,267 9,898,549 280,375 
Warrants69,151 86,498 66,439 46,562 
Diluted number of weighted-average shares outstanding65,287,176 55,558,983 65,186,521 54,798,128 
Adjusted net income per share - diluted$0.61 $0.72 $1.92 $1.88 

(a)For the three months ended September 30, 2021 and 2020, the effective tax rate computed in accordance with GAAP equaled (8.1)% and 17.6%, respectively. For the nine months ended September 30, 2021 and 2020, the effective tax rate computed in accordance with GAAP equaled 33.5% and 1.5%, respectively.
(b)Included within subscription-based revenues in the condensed consolidated statements of operations.
(c)Included within general and administration expenses in the condensed consolidated statements of operations.
(d)Included within other expense, net in the condensed consolidated statements of operations.
(e)All of 2021 included in compensation and benefits in the condensed consolidated statements of operations. For the three months ended September 30, 2020, $15,852 was included in compensation and benefits in the condensed consolidated statements of operations. For the nine months ended September 30, 2020, $45,721 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.
10

(g)Included within depreciation and amortization in the condensed consolidated statements of operations.
(h)For the three months ended September 30, 2021 and 2020, $1,548 and $3,992 were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the three months ended September 30, 2021 and 2020, $1,855 and $969 were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the three months ended September 30, 2021 and 2020, $0 and $32 were included within other expense, net, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2021 and 2020, $6,037 and $11,485 were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2021 and 2020, $5,178 and $2,764 were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2021 and 2020, $0 and $212 were included within other expense, net, respectively, in the condensed consolidated statements of operations.
(i)An estimated normalized effective tax rate of 25.5% have been used to compute adjusted net income for the three and nine months ended September 30, 2021 and 2020.

11

Reconciliation of Non-GAAP Financial Measures
Segment Information
(in thousands)
(unaudited)
Three months ended September 30, 2021
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Total Revenues$254,734 $48,319 $— $303,053 
Deferred revenue fair value adjustment (a)
67 — — 67 
Adjusted revenues$254,801 $48,319 $— $303,120 
Revenues:
Asset-based$184,008 $— $— $184,008 
Subscription-based66,988 46,584 — 113,572 
Total recurring revenues250,996 46,584 — 297,580 
Professional services and other revenues3,738 1,735 — 5,473 
Total revenues254,734 48,319 — 303,053 
Operating expenses:
Cost of revenues:
Asset-based102,298 — — 102,298 
Subscription-based1,271 6,084 — 7,355 
Professional services and other173 10 — 183 
Total cost of revenues103,742 6,094 — 109,836 
Compensation and benefits67,592 26,468 15,779 109,839 
General and administration26,086 7,570 5,737 39,393 
Depreciation and amortization22,928 6,922 — 29,850 
Total operating expenses$220,348 $47,054 $21,516 $288,918 
Income (loss) from operations$34,386 $1,265 $(21,516)$14,135 
Add:
Deferred revenue fair value adjustment (a)
67 — — 67 
Depreciation and amortization22,928 6,922 — 29,850 
Non-cash compensation expense (c)
9,661 3,667 5,557 18,885 
Restructuring charges and transaction costs (d)
2,863 (55)595 3,403 
Severance (c)
(49)227 29 207 
Accretion on contingent consideration and purchase liability (b)
62 19 — 81 
Fair market value adjustment on contingent consideration liability (b)
— (927)— (927)
Non-recurring litigation and regulatory related expenses (b)
— 1,512 — 1,512 
Non-income tax expense adjustment (b)
(905)74 — (831)
Income attributable to non-controlling interest(114)— — (114)
Other(63)(9)(8)(80)
Adjusted EBITDA$68,836 $12,695 $(15,343)$66,188 
(a)Included within subscription-based revenues in the condensed consolidated statements of operations.
(b)Included within general and administration expenses in the condensed consolidated statements of operations.
(c)Included within compensation and benefits in the condensed consolidated statements of operations.
(d)For the three months ended September 30, 2021, $1,548 was included within general and administration expenses and $1,855 was included within compensation and benefits in the condensed consolidated statements of operations.

12

Reconciliation of Non-GAAP Financial Measures
Segment Information (continued)
(in thousands)
(unaudited) 

Nine months ended September 30, 2021
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Total Revenues$721,441 $145,455 $— $866,896 
Deferred revenue fair value adjustment (a)
227 — — 227 
Adjusted revenues$721,668 $145,455 $— $867,123 
Revenues:
Asset-based$513,458 $— $— $513,458 
Subscription-based197,663 138,242 — 335,905 
Total recurring revenues711,121 138,242 — 849,363 
Professional services and other revenues10,320 7,213 — 17,533 
Total revenues721,441 145,455 — 866,896 
Operating expenses:
Cost of revenues:
Asset-based281,829 — — 281,829 
Subscription-based3,778 17,208 — 20,986 
Professional services and other280 104 — 384 
Total cost of revenues285,887 17,312 — 303,199 
Compensation and benefits195,560 77,765 42,776 316,101 
General and administration71,669 25,513 20,281 117,463 
Depreciation and amortization67,283 20,969 — 88,252 
Total operating expenses$620,399 $141,559 $63,057 $825,015 
Income (loss) from operations$101,042 $3,896 $(63,057)$41,881 
Add:
Deferred revenue fair value adjustment (a)
227 — — 227 
Depreciation and amortization67,283 20,969 — 88,252 
Non-cash compensation expense (c)
27,080 9,691 13,536 50,307 
Restructuring charges and transaction costs (d)
8,049 119 3,047 11,215 
Severance (c)
4,134 3,634 2,730 10,498 
Accretion on contingent consideration and purchase liability (b)
572 84 — 656 
Fair market value adjustment on contingent consideration liability (b)
— (1,067)— (1,067)
Non-recurring litigation and regulatory related expenses (b)
— 5,159 — 5,159 
Non-income tax expense adjustment (b)
(1,335)233 — (1,102)
Income attributable to non-controlling interest(554)— — (554)
Other41 — — 41 
Adjusted EBITDA$206,539 $42,718 $(43,744)$205,513 

(a)Included within subscription-based revenues in the condensed consolidated statements of operations.
(b)Included within general and administration expenses in the condensed consolidated statements of operations.
(c)Included within compensation and benefits in the condensed consolidated statements of operations.
(d)For the nine months ended September 30, 2021, $6,037 was included within general and administration expenses and $5,178 was included within compensation and benefits in the condensed consolidated statements of operations.
13

Reconciliation of Non-GAAP Financial Measures
Segment Information (continued)
(in thousands)
(unaudited) 
Three months ended September 30, 2020
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Revenues$204,294 $48,265 $— $252,559 
Deferred revenue fair value adjustment (a)
91 — — 91 
Adjusted revenues$204,385 $48,265 $— $252,650 
Revenues:
Asset-based$137,744 $— $— $137,744 
Subscription-based62,783 45,114 — 107,897 
Total recurring revenues200,527 45,114 — 245,641 
Professional services and other revenues3,767 3,151 — 6,918 
Total revenues204,294 48,265 — 252,559 
Operating expenses:
Cost of revenues:
Asset-based71,133 — — 71,133 
Subscription-based1,272 6,019 — 7,291 
Professional services and other30 91 — 121 
Total cost of revenues72,435 6,110 — 78,545 
Compensation and benefits59,522 26,540 8,366 94,428 
General and administration22,248 8,308 8,423 38,979 
Depreciation and amortization20,406 8,545 — 28,951 
Total operating expenses$174,611 $49,503 $16,789 $240,903 
Income (loss) from operations$29,683 $(1,238)$(16,789)$11,656 
Add:
Deferred revenue fair value adjustment (a)
91 — — 91 
Depreciation and amortization20,406 8,545 — 28,951 
Non-cash compensation expense (c)
8,685 4,458 2,709 15,852 
Restructuring charges and transaction costs (d)
944 33 4,016 4,993 
Severance (c)
2,154 495 66 2,715 
Accretion on contingent consideration and purchase liability (b)
341 57 — 398 
Fair market value adjustment on contingent consideration liability (b)
— (74)— (74)
Non-recurring litigation and regulatory related expenses (b)
— 1,809 — 1,809 
Non-income tax expense adjustment (b)
1,860 (65)— 1,795 
Income attributable to non-controlling interest(603)— — (603)
Other(2)— — (2)
Adjusted EBITDA$63,559 $14,020 $(9,998)$67,581 
(a)Included within subscription-based revenues in the condensed consolidated statements of operations.
(b)Included within general and administration expenses in the condensed consolidated statements of operations.
(c)Included within compensation and benefits in the condensed consolidated statements of operations.
(d)For the three months ended September 30, 2020, $3,992 was included within general and administration expenses, $969 was included within compensation and benefits and $32 was included within other expense, net, in the condensed consolidated statements of operations.

14

Reconciliation of Non-GAAP Financial Measures
Segment Information (continued)
(in thousands)
(unaudited) 

Nine Months Ended September 30, 2020
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Revenues$590,399 $144,012 $— $734,411 
Deferred revenue fair value adjustment (a)
607 — — 607 
Adjusted revenues$591,006 $144,012 $— $735,018 
Revenues:
Asset-based$394,801 $— $— $394,801 
Subscription-based184,516 132,911 — 317,427 
Total recurring revenues579,317 132,911 — 712,228 
Professional services and other revenues11,082 11,101 — 22,183 
Total revenues590,399 144,012 — 734,411 
Operating expenses:
Cost of revenues:
Asset-based201,600 — — 201,600 
Subscription-based3,691 16,684 — 20,375 
Professional services and other47 305 — 352 
Total cost of revenues205,338 16,989 — 222,327 
Compensation and benefits194,906 82,455 23,062 300,423 
General and administration69,358 26,162 23,017 118,537 
Depreciation and amortization59,907 25,170 — 85,077 
Total operating expenses$529,509 $150,776 $46,079 $726,364 
Income (loss) from operations$60,890 $(6,764)$(46,079)$8,047 
Add:
Deferred revenue fair value adjustment (a)
607 — — 607 
Depreciation and amortization59,907 25,170 — 85,077 
Non-cash compensation expense (c)
27,437 11,665 6,619 45,721 
Restructuring charges and transaction costs (d)
5,864 489 8,108 14,461 
Severance (c)
14,593 2,587 1,386 18,566 
Accretion on contingent consideration and purchase liability (b)
1,087 221 — 1,308 
Fair market value adjustment on contingent consideration liability (b)
— (2,056)— (2,056)
Non-recurring litigation and regulatory related expenses (b)
— 6,029 — 6,029 
Non-income tax expense adjustment (b)
1,532 (191)— 1,341 
Income attributable to non-controlling interest(1,103)— — (1,103)
Other(31)— — (31)
Adjusted EBITDA$170,783 $37,150 $(29,966)$177,967 

(a)Included within subscription-based revenues in the condensed consolidated statements of operations.
(b)Included within general and administration expenses in the condensed consolidated statements of operations.
(c)Included within compensation and benefits in the condensed consolidated statements of operations.
(d)For the nine months ended September 30, 2020, $11,485 was included within general and administration expenses, $2,764 was included within compensation and benefits and $212 was included within other expense, net, in the condensed consolidated statements of operations.

15

Envestnet, Inc.
Historical Assets, Accounts and Advisors
(in millions, except accounts and advisors)
(unaudited)

As of
September 30,December 31,March 31,June 30,September 30,
20202020202120212021
(in millions, except accounts and advisors data)
Platform Assets
Assets under Management (“AUM”)
$228,905 $263,043 $286,039 $315,422 $327,279 
Assets under Administration (“AUA”)375,860 405,365 408,858 426,416 431,040 
Total AUM/A604,765 668,408 694,897 741,838 758,319 
Subscription3,498,353 3,892,814 4,132,917 4,447,733 4,670,827 
Total Platform Assets$4,103,118 $4,561,222 $4,827,814 $5,189,571 $5,429,146 
Platform Accounts
AUM1,018,817 1,073,122 1,138,183 1,209,761 1,276,066 
AUA1,318,730 1,276,975 1,192,668 1,163,991 1,193,069 
Total AUM/A2,337,547 2,350,097 2,330,851 2,373,752 2,469,135 
Subscription10,639,399 11,079,048 11,453,434 11,712,573 14,810,664 
Total Platform Accounts12,976,946 13,429,145 13,784,285 14,086,325 17,279,799 
Advisors
AUM/A41,450 41,206 41,177 41,259 41,696 
Subscription63,862 65,104 65,724 66,597 66,489 
Total Advisors105,312 106,310 106,901 107,856 108,185 

The following table summarizes the changes in AUM and AUA for the three months ended September 30, 2021:

6/30/2021Gross
Sales		RedemptionsNet
Flows		Market Impact9/30/2021
(in millions, except account data)
AUM$315,422 $27,197 $(12,703)$14,494 $(2,637)$327,279 
AUA426,416 32,375 (22,274)10,101 (5,477)431,040 
Total AUM/A$741,838 $59,572 $(34,977)$24,595 $(8,114)$758,319 
Fee-Based Accounts2,373,752 95,383 2,469,135 

The above AUM/A gross sales figures include $6.1 billion in new client conversions. The Company onboarded an additional $149.5 billion in subscription conversions during the three months ended September 30, 2021, bringing total conversions for the quarter to $155.6 billion.

16