Exhibit 99.1

Envestnet Reports Second Quarter 2022 Financial Results

Berwyn, PA — August 4, 2022 — Envestnet (NYSE: ENV), a leading provider of intelligent systems for wealth management and financial wellness, today reported financial results for the three and six months ended June 30, 2022.

Three months endedSix months ended
Key Financial MetricsJune 30,%June 30,%
(in millions, except per share data)20222021Change20222021Change
GAAP:
Total revenues$318.9 $288.7 10%$640.2 $563.8 14%
Net income (loss)$(24.3)$(8.4)n/m$(39.0)$6.6 n/m
Net income (loss) per diluted share attributable to Envestnet, Inc.$(0.42)$(0.15)n/m$(0.67)$0.12 n/m
Non-GAAP:
Adjusted revenues(1)
$318.9 $288.8 10%$640.3 $564.0 14%
Adjusted EBITDA(1)
$57.1 $71.1 (20)%$112.8 $139.3 (19)%
Adjusted net income(1)
$32.0 $43.5 (26)%$63.0 $85.4 (26)%
Adjusted net income per diluted share(1)
$0.49 $0.67 (27)%$0.96 $1.31 (27)%
n/m - not meaningful

“We continue to execute on our strategy – aligning our organization to deliver industry leading solutions, technology and intelligence that can do more for more people – and positioning Envestnet for accelerated revenue growth in the coming years,” said Bill Crager, Co-Founder and Chief Executive Officer.

“During the second quarter, we grew revenues, we went deeper with our client base and we drove positive net flows despite the challenging market conditions,” concluded Mr. Crager.

Financial Results for the Second Quarter of 2022

Asset-based recurring revenues increased 13% from the second quarter of 2021, and represented 60% of total revenues for the second quarter of 2022 compared to 59% for the second quarter of 2021. Subscription-based recurring revenues increased 5% from the second quarter of 2021, and represented 37% of total revenues for the second quarter of 2022, compared to 39% for the second quarter of 2021. Professional services and other non-recurring revenues increased 42% from the prior year period. Total revenues increased 10% to $318.9 million for the second quarter of 2022 from $288.7 million for the second quarter of 2021.

Total operating expenses for the second quarter of 2022 increased 26% to $350.6 million from $277.8 million in the prior year period. Cost of revenues increased 26% to $126.5 million for the second quarter of 2022 from $100.5 million for the prior year period. Compensation and benefits increased 19% to $125.8 million for the second quarter of 2022 from $105.5 million for the prior year period. Compensation and benefits were 39% of total revenues for the second quarter of 2022, compared to 37% for the prior year period. General and administration expenses increased 58% to $66.1 million for the second quarter of 2022 from $41.8 million for the prior year period. General and administration expenses were 21% of total revenues for the second quarter of 2022, compared to 14% for the prior year period. 

Loss from operations was $31.7 million for the second quarter of 2022 compared to income of $10.9 million for the second quarter of 2021. Net loss was $24.3 million for the second quarter of 2022 compared to net loss of $8.4 million for the second quarter of 2021. Net loss per diluted share attributable to Envestnet, Inc. was $0.42 for the


second quarter of 2022 compared to net loss per diluted share attributable to Envestnet, Inc. of $0.15 for the second quarter of 2021.

Adjusted revenues(1) for the second quarter of 2022 increased 10% to $318.9 million from $288.8 million for the prior year period. Adjusted EBITDA(1) for the second quarter of 2022 decreased 20% to $57.1 million from $71.1 million for the prior year period. Adjusted net income(1) decreased 26% for the second quarter of 2022 to $32.0 million from $43.5 million for the prior year period. Adjusted net income per diluted share(1) for the second quarter of 2022 decreased 27% to $0.49 from $0.67 in the second quarter of 2021.

Balance Sheet and Liquidity

As of June 30, 2022, Envestnet had $338.1 million in cash and cash equivalents and $862.5 million in outstanding debt. The outstanding debt as of June 30, 2022 included $345 million in convertible notes maturing in 2023 and $517.5 million in convertible notes maturing in 2025. Envestnet's $500 million revolving credit facility was undrawn as of June 30, 2022.

Outlook

Envestnet provided the following outlook for the third quarter ending September 30, 2022 and full year ending December 31, 2022. This outlook is based on the market value of assets under management or administration as of June 30, 2022. We caution that we cannot predict the market value of these assets on any future date. See “Cautionary Statement Regarding Forward-Looking Statements.”

In Millions, Except Adjusted EPS3Q 2022FY 2022
GAAP:
Revenues:
Asset-based$176.0 -$177.0 
Subscription-based120.5 -121.0 
Total recurring revenues$296.5 -$298.0 
Professional services and other revenues5.0 -5.5 
Total revenues$301.5 -$303.5 $1,255.0 -$1,260.0 
Asset-based cost of revenues$103.0 -$103.5 
Total cost of revenues$110.5 -$111.0 
Net income(a)-(a)(a)-(a)
Diluted shares outstanding65.5 65.5 
Net income per diluted share(a)-(a)(a)-(a)
Non-GAAP:
Adjusted revenues (1):
  Asset-based$176.0 -$177.0 
  Subscription-based120.5 -121.0 
Total recurring revenues$296.5 -$298.0 
  Professional services and other revenues5.0 -5.5 
Total revenues$301.5 -$303.5 $1,255.0 -$1,260.0 
Adjusted EBITDA(1)
$51.0 -$53.0 $223.0 -$227.0 
Adjusted net income per diluted share(1)
$0.40 -$0.42 $1.84 -$1.89 

(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.

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Conference Call

Envestnet will host a conference call to discuss second quarter 2022 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. More than 105,000 advisors and over 6,500 companies including: 16 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. On January 1, 2022, the Company adopted ASU 2021-08 whereby it now accounts for contract assets and contract liabilities obtained upon a business combination in accordance with ASC 606. Prior to the adoption of ASU 2021-08, we recorded 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 did 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, income tax provision (benefit), depreciation and amortization, non-cash compensation expense, restructuring charges and transaction costs, severance, accretion on contingent consideration and purchase liability, fair market value adjustment on contingent consideration liability, fair market value adjustment to investment in private company, litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, dilution gain on equity method investee share issuance, income or loss allocations from equity method investments and (income) loss attributable to non-controlling interest.

“Adjusted net income” represents net income before deferred revenue fair value adjustment, non-cash interest expense, cash interest on our convertible notes, non-cash compensation expense, restructuring charges and transaction costs, severance, accretion on contingent consideration and purchase liability, fair market value adjustment on contingent consideration liability, fair market value adjustment to investment in private company, amortization of acquired intangibles, litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, dilution gain on equity method investee share issuance, income or loss allocations 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.

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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 (loss) or net income (loss) 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 2022, 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; changes and volatility in financial and capital markets, including as a result of the current conflict between Russia and Ukraine, 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, political and regulatory conditions; the impact of fluctuations in market conditions; 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 and 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 August 4, 2022 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
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Envestnet, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
June 30,December 31,
20222021
Assets
Current assets:
Cash and cash equivalents$338,115 $429,279 
Fees receivable, net82,878 95,291 
Prepaid expenses and other current assets46,627 42,706 
Total current assets467,620 567,276 
Property and equipment, net61,392 50,215 
Internally developed software, net159,751 133,659 
Intangible assets, net386,231 400,396 
Goodwill936,054 925,154 
Operating lease right-of-use-assets, net83,494 90,714 
Other non-current assets92,858 73,768 
Total assets$2,187,400 $2,241,182 
Liabilities and Equity
Current liabilities:
Accrued expenses and other liabilities$198,230 $225,159 
Accounts payable20,444 19,092 
Operating lease liabilities10,852 10,999 
Deferred revenue37,453 33,473 
Current portion of long-term debt343,057 — 
Total current liabilities610,036 288,723 
Long-term debt, net of current portion508,282 848,862 
Non-current operating lease liabilities110,623 105,920 
Deferred tax liabilities, net12,912 21,021 
Other non-current liabilities11,555 17,114 
Total liabilities1,253,408 1,281,640 
Equity:
Total stockholders’ equity933,165 957,089 
Non-controlling interest827 2,453 
Total liabilities and equity$2,187,400 $2,241,182 
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Envestnet, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share information)
(unaudited)
 
Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
Revenues:
Asset-based$191,972 $170,075 $394,689 $329,450 
Subscription-based118,120 112,504 232,854 222,333 
Total recurring revenues310,092 282,579 627,543 551,783 
Professional services and other revenues8,760 6,159 12,672 12,060 
Total revenues318,852 288,738 640,215 563,843 
Operating expenses:
Cost of revenues126,482 100,494 251,764 193,363 
Compensation and benefits125,767 105,548 252,616 206,262 
General and administration66,144 41,755 110,479 78,070 
Depreciation and amortization32,182 30,010 63,800 58,402 
Total operating expenses350,575 277,807 678,659 536,097 
Income (loss) from operations(31,723)10,931 (38,444)27,746 
Other income (expense), net1,622 (3,784)(4,345)(11,252)
Income (loss) before income tax provision (benefit)(30,101)7,147 (42,789)16,494 
Income tax provision (benefit)(5,833)15,516 (3,813)9,928 
Net income (loss)(24,268)(8,369)(38,976)6,566 
Add: Net loss attributable to non-controlling interest983 88 1,832 99 
Net income (loss) attributable to Envestnet, Inc.$(23,285)$(8,281)$(37,144)$6,665 
Net income (loss) per share attributable to Envestnet, Inc.:
Basic$(0.42)$(0.15)$(0.67)$0.12 
Diluted$(0.42)$(0.15)$(0.67)$0.12 
Weighted average common shares outstanding:
Basic55,203,120 54,440,388 55,054,272 54,325,353 
Diluted55,203,120 54,440,388 55,054,272 55,136,946 
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Envestnet, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Six Months Ended
June 30,
20222021
OPERATING ACTIVITIES:
Net income (loss) $(38,976)$6,566 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization63,800 58,402 
Provision for doubtful accounts(1,230)455 
Deferred income taxes(8,222)8,137 
Release of uncertain tax positions(3,095)— 
Non-cash compensation expense45,318 31,422 
Non-cash interest expense3,474 2,906 
Accretion on contingent consideration and purchase liability— 575 
Payments of contingent consideration— (2,360)
Fair market value adjustment to contingent consideration liability— (140)
Fair market value adjustment to investment in private company— (758)
Loss allocations from equity method investments2,945 4,045 
Dilution gain on equity method investee share issuance(6,934)— 
Impairment of right of use assets12,961 1,110 
Loss on property and equipment disposals - office closures3,710 — 
Other167 282 
Changes in operating assets and liabilities:
Fees receivable, net13,694 (1,334)
Prepaid expenses and other current assets(2,721)(155)
Other non-current assets(3,638)3,665 
Accrued expenses and other liabilities(31,962)527 
Accounts payable1,368 2,333 
Deferred revenue4,277 2,789 
Other non-current liabilities(2,294)692 
Net cash provided by operating activities52,642 119,159 
INVESTING ACTIVITIES:
Purchases of property and equipment(9,141)(11,357)
Capitalization of internally developed software(43,045)(31,802)
Acquisition of proprietary technology(15,000)(25,517)
Acquisitions of businesses, net of cash acquired(14,472)(33,143)
Investments in private companies(8,000)(4,549)
Advance for technology solutions(4,000)(3,000)
Issuance of notes receivable to equity method investees(4,350)— 
Net cash used in investing activities(98,008)(109,368)

-continued-







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

Six Months Ended
June 30,
20222021
FINANCING ACTIVITIES:
Proceeds from exercise of stock options742 573 
Capital contributions - non-controlling shareholders— 23 
Taxes paid in lieu of shares issued for stock-based compensation(18,113)(13,020)
Finance lease payments(14,517)— 
Share repurchases(9,235)(2,097)
Revolving credit facility issuance costs(1,872)— 
Payments of contingent consideration(750)(9,200)
Other4 (587)
Net cash used in financing activities(43,741)(24,308)
EFFECT OF EXCHANGE RATE CHANGES ON CASH(2,057)(524)
DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(91,164)(15,041)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD429,428 384,714 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (a)$338,264 $369,673 

(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets:
June 30,June 30,
20222021
Cash and cash equivalents$338,115 $369,524 
Restricted cash included in prepaid expenses and other current assets149 149 
Total cash, cash equivalents and restricted cash$338,264 $369,673 


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

Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
Total revenues$318,852 $288,738 $640,215 $563,843 
Deferred revenue fair value adjustment (a)
54 80 108 160 
Adjusted revenues$318,906 $288,818 $640,323 $564,003 
Net income (loss)$(24,268)$(8,369)$(38,976)$6,566 
Add (deduct): 
Deferred revenue fair value adjustment (a)
54 80 108 160 
Interest income (b)
(713)(197)(1,034)(367)
Interest expense (b)
4,212 4,225 9,065 8,440 
Income tax provision (benefit)(5,833)15,516 (3,813)9,928 
Depreciation and amortization32,182 30,010 63,800 58,402 
Non-cash compensation expense (d)
23,504 17,285 45,318 31,422 
Restructuring charges and transaction costs (e)
21,026 5,028 23,372 7,812 
Severance (d)
7,148 5,377 10,254 10,291 
Accretion on contingent consideration and purchase
liability (c)
— 187 — 575 
Fair market value adjustment on contingent consideration liability (c)
— — — (140)
Fair market value adjustment to investment in private company (b)
— (758)— (758)
Non-recurring litigation and regulatory related expenses (c)
4,306 1,938 7,383 3,647 
Foreign currency (b)
413 (138)305 13 
Non-income tax expense adjustment (c)
189 295 213 (271)
Dilution gain on equity method investee share issuance (b)
(6,934)— (6,934)— 
Loss allocations from equity method investments (b)
1,400 757 2,945 4,045 
(Income) loss attributable to non-controlling interest440 (175)817 (440)
Adjusted EBITDA$57,126 $71,061 $112,823 $139,325 

(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)Included within compensation and benefits in the condensed consolidated statements of operations.
(e)For the three months ended June 30, 2022 and 2021, $20.9 million and $2.7 million were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the three months ended June 30, 2022 and 2021, $0.1 million and $2.3 million were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the six months ended June 30, 2022 and 2021, $23.5 million and $4.5 million were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the six months ended June 30, 2022 and 2021, $(0.1) million and $3.3 million were included within compensation and benefits, respectively, in the condensed consolidated statements of operations.
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Envestnet, Inc.
Reconciliation of Non-GAAP Financial Measures
(in thousands, except share and per share information)
(unaudited) 

Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
Net income (loss)$(24,268)$(8,369)$(38,976)$6,566 
Income tax provision (benefit) (a)
(5,833)15,516 (3,813)9,928 
Income (loss) before income tax provision (benefit)(30,101)7,147 (42,789)16,494 
Add (deduct):
Deferred revenue fair value adjustment (b)
54 80 108 160 
Non-cash interest expense (d)
1,415 1,429 3,474 2,852 
Cash interest - Convertible Notes (d)
2,480 2,480 4,960 4,960 
Non-cash compensation expense (e)
23,504 17,285 45,318 31,422 
Restructuring charges and transaction costs (g)
21,026 5,028 23,372 7,812 
Severance (e)
7,148 5,377 10,254 10,291 
Accretion on contingent consideration and purchase
liability (c)
— 187 — 575 
Fair market value adjustment on contingent consideration liability (c)
— — — (140)
Fair market value adjustment to investment in private company (d)
— (758)— (758)
Amortization of acquired intangibles (f)
17,645 17,502 35,165 33,980 
Non-recurring litigation and regulatory related expenses (c)
4,306 1,938 7,383 3,647 
Foreign currency (d)
413 (138)305 13 
Non-income tax expense adjustment (c)
189 295 213 (271)
Dilution gain on equity method investee share issuance (d)
(6,934)— (6,934)— 
Loss allocations from equity method investments (d)
1,400 757 2,945 4,045 
Loss (income) attributable to non-controlling interest440 (175)817 (440)
Adjusted net income before income tax effect42,985 58,434 84,591 114,642 
Income tax effect (h)
(10,961)(14,901)(21,571)(29,234)
Adjusted net income$32,024 $43,533 $63,020 $85,408 
Basic number of weighted-average shares outstanding55,203,120 54,440,388 55,054,272 54,325,353 
Effect of dilutive shares:
Options to purchase common stock129,217 198,277 142,510 210,381 
Unvested restricted stock units199,853 435,023 381,397 536,186 
Convertible Notes9,898,549 9,898,549 9,898,549 9,898,549 
Warrants22,170 53,648 37,473 65,026 
Diluted number of weighted-average shares outstanding65,452,909 65,025,885 65,514,201 65,035,495 
Adjusted net income per share - diluted$0.49 $0.67 $0.96 $1.31 

(a)For the three months ended June 30, 2022 and 2021, the effective tax rate computed in accordance with GAAP equaled 19.4% and 217.1%, respectively. For the six months ended June 30, 2022 and 2021, the effective tax rate computed in accordance with GAAP equaled 8.9% and 60.2%, 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)Included within compensation and benefits in the condensed consolidated statements of operations.
(f)Included within depreciation and amortization in the condensed consolidated statements of operations.
(g)For the three months ended June 30, 2022 and 2021, $20.9 million and $2.7 million were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the three months ended June 30, 2022 and 2021, $0.1 million and $2.3 million were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the six months ended June 30, 2022 and 2021, $23.5 million and $4.5 million were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the
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six months ended June 30, 2022 and 2021, $(0.1) million and $3.3 million were included within compensation and benefits, respectively, in the condensed consolidated statements of operations.
(h)An estimated normalized effective tax rate of 25.5% has been used to compute adjusted net income for the three and six months ended June 30, 2022 and 2021.
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Reconciliation of Non-GAAP Financial Measures
Segment Information
(in thousands)
(unaudited)
Three Months Ended June 30, 2022
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Revenues$272,000 $46,852 $— $318,852 
Deferred revenue fair value adjustment (a)
54 — — 54 
Adjusted revenues$272,054 $46,852 $— $318,906 
Revenues:
Asset-based$191,972 $— $— $191,972 
Subscription-based73,568 44,552 — 118,120 
Total recurring revenues265,540 44,552 — 310,092 
Professional services and other revenues6,460 2,300 — 8,760 
Total revenues272,000 46,852 — 318,852 
Operating expenses:
Cost of revenues:
Asset-based112,301 — — 112,301 
Subscription-based1,504 5,737 — 7,241 
Professional services and other6,917 23 — 6,940 
Total cost of revenues120,722 5,760 — 126,482 
Compensation and benefits78,759 23,994 23,014 125,767 
General and administration45,001 12,171 8,972 66,144 
Depreciation and amortization23,550 8,632 — 32,182 
Total operating expenses$268,032 $50,557 $31,986 $350,575 
Income (loss) from operations$3,968 $(3,705)$(31,986)$(31,723)
Add (deduct):
Deferred revenue fair value adjustment (a)
54 — — 54 
Depreciation and amortization23,550 8,632 — 32,182 
Non-cash compensation expense (c)
13,364 1,852 8,288 23,504 
Restructuring charges and transaction costs (d)
16,897 753 3,376 21,026 
Severance (c)
2,813 (431)4,766 7,148 
Non-recurring litigation and regulatory related expenses (b)
— 4,306 — 4,306 
Non-income tax expense adjustment (b)
184 5 — 189 
Loss attributable to non-controlling interest440 — — 440 
Adjusted EBITDA$61,270 $11,412 $(15,556)$57,126 
(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 June 30, 2022, $20.9 million was included within general and administration expenses and $0.1 million 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) 

Six Months Ended June 30, 2022
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Revenues$545,568 $94,647 $— $640,215 
Deferred revenue fair value adjustment (a)
108 — — 108 
Adjusted revenues$545,676 $94,647 $— $640,323 
Revenues:
Asset-based$394,689 $— $— $394,689 
Subscription-based142,105 90,749 — 232,854 
Total recurring revenues536,794 90,749 — 627,543 
Professional services and other revenues8,774 3,898 — 12,672 
Total revenues545,568 94,647 — 640,215 
Operating expenses:
Cost of revenues:
Asset-based229,729 — — 229,729 
Subscription-based2,869 12,183 — 15,052 
Professional services and other6,932 51 — 6,983 
Total cost of revenues239,530 12,234 — 251,764 
Compensation and benefits157,403 54,160 41,053 252,616 
General and administration72,361 20,782 17,336 110,479 
Depreciation and amortization47,037 16,763 — 63,800 
Total operating expenses$516,331 $103,939 $58,389 $678,659 
Income (loss) from operations$29,237 $(9,292)$(58,389)$(38,444)
Add (deduct):
Deferred revenue fair value adjustment (a)
108 — — 108 
Depreciation and amortization47,037 16,763 — 63,800 
Non-cash compensation expense (c)
24,654 5,387 15,277 45,318 
Restructuring charges and transaction costs (d)
17,181 750 5,441 23,372 
Severance (c)
4,223 1,211 4,820 10,254 
Non-recurring litigation and regulatory related expenses (b)
— 7,383 — 7,383 
Non-income tax expense adjustment (b)
291 (78)— 213 
Loss attributable to non-controlling interest817 — — 817 
Other— 2 — 2 
Adjusted EBITDA$123,548 $22,126 $(32,851)$112,823 

(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 six months ended June 30, 2022, $23.5 million was included within general and administration expenses and $(0.1) million 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 June 30, 2021
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Revenues$240,297 $48,441 $— $288,738 
Deferred revenue fair value adjustment (a)
80 — — 80 
Adjusted revenues$240,377 $48,441 $— $288,818 
Revenues:
Asset-based$170,075 $— $— $170,075 
Subscription-based66,663 45,841 — 112,504 
Total recurring revenues236,738 45,841 — 282,579 
Professional services and other revenues3,559 2,600 — 6,159 
Total revenues240,297 48,441 — 288,738 
Operating expenses:
Cost of revenues:
Asset-based93,341 — — 93,341 
Subscription-based1,294 5,733 — 7,027 
Professional services and other78 48 — 126 
Total cost of revenues94,713 5,781 — 100,494 
Compensation and benefits65,114 25,008 15,426 105,548 
General and administration24,884 9,427 7,444 41,755 
Depreciation and amortization23,127 6,883 — 30,010 
Total operating expenses$207,838 $47,099 $22,870 $277,807 
Income (loss) from operations$32,459 $1,342 $(22,870)$10,931 
Add (deduct):
Deferred revenue fair value adjustment (a)
80 — — 80 
Depreciation and amortization23,127 6,883 — 30,010 
Non-cash compensation expense (c)
9,590 3,183 4,512 17,285 
Restructuring charges and transaction costs (d)
3,821 27 1,180 5,028 
Severance (c)
1,096 1,687 2,594 5,377 
Accretion on contingent consideration and purchase liability (b)
168 19 — 187 
Non-recurring litigation and regulatory related expenses (b)
— 1,938 — 1,938 
Non-income tax expense adjustment (b)
105 190 — 295 
Income attributable to non-controlling interest(175)— — (175)
Other88 9 8 105 
Adjusted EBITDA$70,359 $15,278 $(14,576)$71,061 

(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 June 30, 2021, $2.7 million was included within general and administration expenses and $2.3 million was included within compensation and benefits in the condensed consolidated statements of operations.

14

Reconciliation of Non-GAAP Financial Measures
Segment Information (continued)
(in thousands)
(unaudited) 
Six Months Ended June 30, 2021
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Revenues$466,707 $97,136 $— $563,843 
Deferred revenue fair value adjustment (a)
160 — — 160 
Adjusted revenues$466,867 $97,136 $— $564,003 
Revenues:
Asset-based$329,450 $— $— $329,450 
Subscription-based130,675 91,658 — 222,333 
Total recurring revenues460,125 91,658 — 551,783 
Professional services and other revenues6,582 5,478 — 12,060 
Total revenues466,707 97,136 — 563,843 
Operating expenses:
Cost of revenues:
Asset-based179,531 — — 179,531 
Subscription-based2,507 11,124 — 13,631 
Professional services and other107 94 — 201 
Total cost of revenues182,145 11,218 — 193,363 
Compensation and benefits127,968 51,297 26,997 206,262 
General and administration45,583 17,943 14,544 78,070 
Depreciation and amortization44,355 14,047 — 58,402 
Total operating expenses$400,051 $94,505 $41,541 $536,097 
Income (loss) from operations$66,656 $2,631 $(41,541)$27,746 
Add (deduct):
Deferred revenue fair value adjustment (a)
160 — — 160 
Depreciation and amortization44,355 14,047 — 58,402 
Non-cash compensation expense (c)
17,419 6,024 7,979 31,422 
Restructuring charges and transaction costs (d)
5,186 174 2,452 7,812 
Severance (c)
4,183 3,407 2,701 10,291 
Accretion on contingent consideration and purchase liability (b)
510 65 — 575 
Fair market value adjustment on contingent consideration liability (b)
— (140)— (140)
Non-recurring litigation and regulatory related expenses (b)
— 3,647 — 3,647 
Non-income tax expense adjustment (b)
(430)159 — (271)
Income attributable to non-controlling interest(440)— — (440)
Other104 9 8 121 
Adjusted EBITDA$137,703 $30,023 $(28,401)$139,325 

(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 six months ended June 30, 2021, $4.5 million was included within general and administration expenses and $3.3 million was included within compensation and benefits in the condensed consolidated statements of operations.
15

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,
202120212021
2022(1)
2022
(in millions, except accounts and advisors data)
Platform Assets
Assets under Management (“AUM”)
$315,422 $327,279 $362,038 $361,251 $325,209 
Assets under Administration (“AUA”)426,416 431,040 456,316 432,141 352,840 
Total AUM/A741,838 758,319 818,354 793,392 678,049 
Subscription4,447,733 4,670,827 4,901,662 4,736,537 4,312,114 
Total Platform Assets$5,189,571 $5,429,146 $5,720,016 $5,529,929 $4,990,163 
Platform Accounts
AUM1,209,761 1,276,066 1,345,274 1,459,093 1,491,861 
AUA1,163,991 1,193,069 1,217,076 1,186,180 1,061,484 
Total AUM/A2,373,752 2,469,135 2,562,350 2,645,273 2,553,345 
Subscription11,712,573 14,810,664 14,986,531 15,151,569 15,312,144 
Total Platform Accounts14,086,325 17,279,799 17,548,881 17,796,842 17,865,489 
Advisors
AUM/A41,259 41,696 39,735 39,800 38,394 
Subscription66,597 66,489 68,808 67,168 66,838 
Total Advisors107,856 108,185 108,543 106,968 105,232 
(1) Certain assets and accounts have been reclassified from AUA to AUM to better reflect the nature of the services provided to certain customers.

The following table summarizes the changes in AUM and AUA for the three months ended June 30, 2022:

3/31/2022Gross
Sales		RedemptionsNet
Flows		Market ImpactReclass to Subscription6/30/2022
(in millions, except account data)
AUM$361,251 $24,829 $(18,962)$5,867 $(41,909)$— $325,209 
AUA432,141 27,323 (27,662)(339)(50,499)(28,463)352,840 
Total AUM/A$793,392 $52,152 $(46,624)$5,528 $(92,408)$(28,463)$678,049 
Fee-Based Accounts2,645,273 19,494 (111,422)2,553,345 

The above AUM/A gross sales figures include $9.2 billion in new client conversions. The Company onboarded an additional $24.4 billion in subscription conversions during the three months ended June 30, 2022, bringing total conversions for the quarter to $33.6 billion.

Asset and account figures in the “Reclass to Subscription” columns for the three months ended June 30, 2022 represent enterprise customers whose billing arrangements in future periods are subscription-based, rather than asset-based. Such amounts are included in Subscription metrics at the end of the quarter in which the reclassification occurred, with no impact on total platform assets or accounts.
16