Exhibit 99.1

Envestnet Reports Third Quarter 2022 Financial Results

Berwyn, PA — November 8, 2022 — 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, 2022.

Three months endedNine months ended
Key Financial MetricsSeptember 30,%September 30,%
(in millions, except per share data)20222021Change20222021Change
GAAP:
Total revenues$306.7 $303.1 1%$946.9 $866.9 9%
Net income (loss)$(8.7)$11.4 n/m$(47.6)$18.0 n/m
Net income (loss) per diluted share attributable to Envestnet, Inc.$(0.13)$0.21 n/m$(0.81)$0.33 n/m
Non-GAAP:
Adjusted revenues(1)
$306.7 $303.1 1%$947.1 $867.1 9%
Adjusted EBITDA(1)
$53.5 $66.2 (19)%$166.3 $205.5 (19)%
Adjusted net income(1)
$29.5 $39.9 (26)%$92.6 $125.3 (26)%
Adjusted net income per diluted share(1)
$0.45 $0.61 (26)%$1.41 $1.92 (27)%
n/m - not meaningful

“Envestnet continued to successfully execute our strategy while driving positive net flows and accounts growth during the third quarter. We also built on our position as a leader in the digital engagement marketplace through strategic announcements with Tata Consultancy Services (TCS) and FNZ. Our partnership with TCS provides increased scale while simultaneously reducing our expenses, and by partnering with FNZ we will create real-time account opening and funding, as well as automating key servicing and maintenance for the life cycle of the client/account. These collaborations will ultimately create additional revenue streams as we continue to focus on driving better outcomes for enterprises, advisors, and their clients,” said Bill Crager, Chief Executive Officer.

“Our continued execution, combined with the strategic actions we’ve taken, strongly position Envestnet for future success. We are delivering newly modernized technology and solutions that strengthen the Envestnet ecosystem, laying the foundation for accelerated revenue growth into the future,” concluded Mr. Crager.



Financial Results for the Third Quarter of 2022

Asset-based recurring revenues decreased 4% from the third quarter of 2021, and represented 58% of total revenues for the third quarter of 2022 compared to 61% for the third quarter of 2021. Subscription-based recurring revenues increased 9% from the third quarter of 2021, and represented 40% of total revenues for the third quarter of 2022, compared to 37% for the third quarter of 2021. Professional services and other non-recurring revenues increased 6% from the prior year period. Total revenues increased 1% to $306.7 million for the third quarter of 2022 from $303.1 million for the third quarter of 2021.

Total operating expenses for the third quarter of 2022 increased 7% to $307.7 million from $288.9 million in the prior year period. Cost of revenues increased to $110.1 million for the third quarter of 2022 from $109.8 million for the prior year period. Compensation and benefits increased 6% to $116.8 million for the third quarter of 2022 from $109.8 million for the prior year period. Compensation and benefits were 38% of total revenues for the third quarter of 2022, compared to 36% for the prior year period. General and administration expenses increased 20% to $47.4 million for the third quarter of 2022 from $39.4 million for the prior year period. General and administration expenses were 15% of total revenues for the third quarter of 2022, compared to 13% for the prior year period. 

Loss from operations was $1.0 million for the third quarter of 2022 compared to income of $14.1 million for the third quarter of 2021. Net loss was $8.7 million for the third quarter of 2022 compared to net income of $11.4 million for the third quarter of 2021. Net loss per diluted share attributable to Envestnet, Inc. was $(0.13) for the third quarter of 2022 compared to net income per diluted share attributable to Envestnet, Inc. of $0.21 for the third quarter of 2021.

Adjusted revenues(1) for the third quarter of 2022 increased 1% to $306.7 million from $303.1 million for the prior year period. Adjusted EBITDA(1) for the third quarter of 2022 decreased 19% to $53.5 million from $66.2 million for the prior year period. Adjusted net income(1) decreased 26% for the third quarter of 2022 to $29.5 million from $39.9 million for the prior year period. Adjusted net income per diluted share(1) for the third quarter of 2022 decreased 26% to $0.45 from $0.61 in the third quarter of 2021.

Balance Sheet and Liquidity

As of September 30, 2022, Envestnet had $241.3 million in cash and cash equivalents and $862.5 million in outstanding debt. The outstanding debt as of September 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 September 30, 2022.

2

Outlook

Envestnet provided the following outlook for the fourth quarter and full year ending December 31, 2022. This outlook is based on the market value of assets under management or administration as of September 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 EPS4Q 2022FY 2022
GAAP:
Revenues:
Asset-based$166.5 -$167.5 
Subscription-based122.5 -123.0 
Total recurring revenues$289.0 -$290.5 
Professional services and other revenues5.0 -5.5 
Total revenues$294.0 -$296.0 $1,241.0 -$1,243.0 
Asset-based cost of revenues$96.0 -$96.5 
Total cost of revenues$104.6 -$105.1 
Net income(a)-(a)(a)-(a)
Diluted shares outstanding65.6 65.5 
Net income per diluted share(a)-(a)(a)-(a)
Non-GAAP:
Adjusted revenues (1):
  Asset-based$166.5 -$167.5 
  Subscription-based122.5 -123.0 
Total recurring revenues$289.0 -$290.5 
  Professional services and other revenues5.0 -5.5 
Total revenues$294.0 -$296.0 $1,241.0 -$1,243.0 
Adjusted EBITDA(1)
$52.0 -$54.0 $218.0 -$220.0 
Adjusted net income per diluted share(1)
$0.42 -$0.43 $1.82 -$1.84 

(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.

Conference Call

Envestnet will host a conference call to discuss third 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.

3

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. Nearly 106,000 advisors and approximately 6,900 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, gain on settlement of liability, gain on insurance reimbursement, 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, gain on settlement of liability, gain on insurance reimbursement, 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.

See reconciliations of Non-GAAP Financial Measures on pages 10-16 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.

4

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 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 November 8, 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
5

Envestnet, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
September 30,December 31,
20222021
Assets
Current assets:
Cash and cash equivalents$241,330 $429,279 
Fees receivable, net96,098 95,291 
Prepaid expenses and other current assets55,078 42,706 
Total current assets392,506 567,276 
Property and equipment, net60,061 50,215 
Internally developed software, net173,285 133,659 
Intangible assets, net398,082 400,396 
Goodwill996,267 925,154 
Operating lease right-of-use-assets, net83,472 90,714 
Other non-current assets99,548 73,768 
Total assets$2,203,221 $2,241,182 
Liabilities and Equity
Current liabilities:
Accrued expenses and other liabilities$207,025 $225,159 
Accounts payable19,447 19,092 
Operating lease liabilities12,133 10,999 
Deferred revenue34,082 33,473 
Current portion of long-term debt343,581 — 
Total current liabilities616,268 288,723 
Long-term debt, net of current portion509,006 848,862 
Non-current operating lease liabilities109,749 105,920 
Deferred tax liabilities, net14,976 21,021 
Other non-current liabilities12,938 17,114 
Total liabilities1,262,937 1,281,640 
Equity:
Total stockholders’ equity940,758 957,089 
Non-controlling interest(474)2,453 
Total liabilities and equity$2,203,221 $2,241,182 
6

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,
2022202120222021
Revenues:
Asset-based$177,131 $184,008 $571,820 $513,458 
Subscription-based123,747 113,572 356,601 335,905 
Total recurring revenues300,878 297,580 928,421 849,363 
Professional services and other revenues5,817 5,473 18,489 17,533 
Total revenues306,695 303,053 946,910 866,896 
Operating expenses:
Cost of revenues110,108 109,836 361,872 303,199 
Compensation and benefits116,837 109,839 369,453 316,101 
General and administration47,388 39,393 157,867 117,463 
Depreciation and amortization33,408 29,850 97,208 88,252 
Total operating expenses307,741 288,918 986,400 825,015 
Income (loss) from operations(1,046)14,135 (39,490)41,881 
Other expense, net(5,346)(3,551)(9,691)(14,803)
Income (loss) before income tax provision (benefit)(6,392)10,584 (49,181)27,078 
Income tax provision (benefit)2,271 (854)(1,542)9,074 
Net income (loss)(8,663)11,438 (47,639)18,004 
Add: Net loss attributable to non-controlling interest1,373 302 3,205 401 
Net income (loss) attributable to Envestnet, Inc.$(7,290)$11,740 $(44,434)$18,405 
Net income (loss) per share attributable to Envestnet, Inc.:
Basic$(0.13)$0.22 $(0.81)$0.34 
Diluted$(0.13)$0.21 $(0.81)$0.33 
Weighted average common shares outstanding:
Basic55,226,777 54,547,858 55,109,387 54,400,247 
Diluted55,226,777 55,388,627 55,109,387 55,287,972 
7

Envestnet, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
September 30,
20222021
OPERATING ACTIVITIES:
Net income (loss) $(47,639)$18,004 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization97,208 88,252 
Provision for doubtful accounts(468)2,051 
Deferred income taxes(4,380)7,078 
Release of uncertain tax positions(3,095)— 
Non-cash compensation expense62,583 50,307 
Non-cash interest expense5,436 4,889 
Accretion on contingent consideration and purchase liability— 656 
Payments of contingent consideration— (2,360)
Fair market value adjustment to contingent consideration liability— (1,067)
Fair market value adjustment to investment in private company— (758)
Gain on settlement of liability— (1,206)
Loss allocations from equity method investments5,332 5,553 
Dilution gain on equity method investee share issuance(6,934)— 
Lease related impairments, including right of use assets14,050 1,537 
Loss on property and equipment disposals - office closures3,710 — 
Other319 249 
Changes in operating assets and liabilities, net of acquisitions:
Fees receivable, net1,546 (38,030)
Prepaid expenses and other current assets(8,610)569 
Other non-current assets(3,914)4,854 
Accrued expenses and other liabilities(23,168)26,637 
Accounts payable(867)4,122 
Deferred revenue(2,329)(1,065)
Other non-current liabilities(2,545)(298)
Net cash provided by operating activities86,235 169,974 
INVESTING ACTIVITIES:
Purchases of property and equipment(13,114)(15,779)
Capitalization of internally developed software(67,755)(49,024)
Acquisition of proprietary technology(15,000)(25,517)
Acquisitions of businesses, net of cash acquired(104,185)(32,794)
Investments in private companies(16,351)(8,926)
Advance for technology solutions(4,000)(3,000)
Issuance of notes receivable to equity method investees(6,350)— 
Net cash used in investing activities(226,755)(135,040)

-continued-






8

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

Nine Months Ended
September 30,
20222021
FINANCING ACTIVITIES:
Proceeds from exercise of stock options2,559 920 
Capital contributions - non-controlling shareholders— 3,201 
Taxes paid in lieu of shares issued for stock-based compensation(20,613)(17,314)
Finance lease payments(14,544)— 
Share repurchases(9,235)(2,097)
Revolving credit facility issuance costs(1,872)— 
Payments of contingent consideration(750)(9,200)
Other5 (666)
Net cash used in financing activities(44,450)(25,156)
EFFECT OF EXCHANGE RATE CHANGES ON CASH(3,128)(544)
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(188,098)9,234 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD429,428 384,714 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (a)$241,330 $393,948 

(a) The following table reconciles amounts from the condensed consolidated balance sheets to cash, cash equivalents and restricted cash reported within the condensed consolidated statements of cash flows:

September 30,September 30,
20222021
Cash and cash equivalents$241,330 $393,799 
Restricted cash included in prepaid expenses and other current assets— 149 
Total cash, cash equivalents and restricted cash$241,330 $393,948 


9

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

Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Total revenues$306,695 $303,053 $946,910 $866,896 
Deferred revenue fair value adjustment (a)
54 67 162 227 
Adjusted revenues$306,749 $303,120 $947,072 $867,123 
Net income (loss)$(8,663)$11,438 $(47,639)$18,004 
Add (deduct): 
Deferred revenue fair value adjustment (a)
54 67 162 227 
Interest income (b)
(1,239)(202)(2,273)(569)
Interest expense (b)
4,242 4,242 13,307 12,682 
Income tax provision (benefit)2,271 (854)(1,542)9,074 
Depreciation and amortization33,408 29,850 97,208 88,252 
Non-cash compensation expense (d)
17,265 18,885 62,583 50,307 
Restructuring charges and transaction costs (e)
3,895 3,403 27,267 11,215 
Severance (d)
1,125 207 11,379 10,498 
Accretion on contingent consideration and purchase
liability (c)
— 81 — 656 
Fair market value adjustment on contingent consideration liability (c)
— (927)— (1,067)
Fair market value adjustment to investment in private company (b)
— — — (758)
Non-recurring litigation and regulatory related expenses (c)
(2,050)1,512 5,333 5,159 
Foreign currency (b)
308 97 613 110 
Gain on settlement of liability (b)
— (1,206)— (1,206)
Gain on insurance reimbursement (b)
— (968)— (968)
Non-income tax expense adjustment (c)
(325)(831)(112)(1,102)
Dilution gain on equity method investee share issuance (b)
— — (6,934)— 
Loss allocations from equity method investments (b)
2,387 1,508 5,332 5,553 
(Income) loss attributable to non-controlling interest820 (114)1,637 (554)
Adjusted EBITDA$53,498 $66,188 $166,321 $205,513 

(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 September 30, 2022 and 2021, $4.1 million and $1.5 million were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the three months ended September 30, 2022 and 2021, $0.2 million and $1.9 million were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the three months ended September 30, 2022 and 2021, $(0.4) million and zero were included within other expense, net, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, $27.5 million and $6.0 million were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, $0.2 million and $5.2 million were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, $(0.4) million and zero were included within other expense, net, respectively, in the condensed consolidated statements of operations.
10

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,
2022202120222021
Net income (loss)$(8,663)$11,438 $(47,639)$18,004 
Income tax provision (benefit) (a)
2,271 (854)(1,542)9,074 
Income (loss) before income tax provision (benefit)(6,392)10,584 (49,181)27,078 
Add (deduct):
Deferred revenue fair value adjustment (b)
54 67 162 227 
Non-cash interest expense (d)
1,443 1,443 4,917 4,295 
Cash interest - Convertible Notes (d)
2,479 2,479 7,439 7,439 
Non-cash compensation expense (e)
17,265 18,885 62,583 50,307 
Restructuring charges and transaction costs (g)
3,895 3,403 27,267 11,215 
Severance (e)
1,125 207 11,379 10,498 
Accretion on contingent consideration and purchase
liability (c)
— 81 — 656 
Fair market value adjustment on contingent consideration liability (c)
— (927)— (1,067)
Fair market value adjustment to investment in private company (d)
— — — (758)
Amortization of acquired intangibles (f)
18,649 17,390 53,814 51,370 
Non-recurring litigation and regulatory related expenses (c)
(2,050)1,512 5,333 5,159 
Foreign currency (d)
308 97 613 110 
Gain on settlement of liability (d)
— (1,206)— (1,206)
Gain on insurance reimbursement (d)
— (968)— (968)
Non-income tax expense adjustment (c)
(325)(831)(112)(1,102)
Dilution gain on equity method investee share issuance (d)
— — (6,934)— 
Loss allocations from equity method investments (d)
2,387 1,508 5,332 5,553 
(Income) loss attributable to non-controlling interest820 (114)1,637 (554)
Adjusted net income before income tax effect39,658 53,610 124,249 168,252 
Income tax effect (h)
(10,112)(13,670)(31,683)(42,904)
Adjusted net income$29,546 $39,940 $92,566 $125,348 
Basic number of weighted-average shares outstanding55,226,777 54,547,858 55,109,387 54,400,247 
Effect of dilutive shares:
Options to purchase common stock74,559 201,103 123,267 207,281 
Unvested restricted stock units208,367 570,515 378,061 614,005 
Convertible notes9,898,549 9,898,549 9,898,549 9,898,549 
Warrants— 69,151 — 66,439 
Diluted number of weighted-average shares outstanding65,408,252 65,287,176 65,509,264 65,186,521 
Adjusted net income per share - diluted$0.45 $0.61 $1.41 $1.92 

(a)For the three months ended September 30, 2022 and 2021, the effective tax rate computed in accordance with GAAP equaled (35.5)% and (8.1)%, respectively. For the nine months ended September 30, 2022 and 2021, the effective tax rate computed in accordance with GAAP equaled 3.1% and 33.5%, 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)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 September 30, 2022 and 2021, $4.1 million and $1.5 million were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the three months ended September 30, 2022 and 2021, $0.2 million and $1.9 million were included within compensation and benefits, respectively, in the
11

condensed consolidated statements of operations. For the three months ended September 30, 2022 and 2021, $(0.4) million and zero were included within other expense, net, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, $27.5 million and $6.0 million were included within general and administration expenses, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, $0.2 million and $5.2 million were included within compensation and benefits, respectively, in the condensed consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, $(0.4) million and zero were included within other expense, net, 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 nine months ended September 30, 2022 and 2021.
12

Reconciliation of Non-GAAP Financial Measures
Segment Information
(in thousands)
(unaudited)
Three Months Ended September 30, 2022
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Revenues$257,335 $49,360 $— $306,695 
Deferred revenue fair value adjustment (a)
54 — — 54 
Adjusted revenues$257,389 $49,360 $— $306,749 
Revenues:
Asset-based$177,131 $— $— $177,131 
Subscription-based75,975 47,772 — 123,747 
Total recurring revenues253,106 47,772 — 300,878 
Professional services and other revenues4,229 1,588 — 5,817 
Total revenues257,335 49,360 — 306,695 
Operating expenses:
Cost of revenues:
Asset-based102,409 — — 102,409 
Subscription-based1,308 6,460 — 7,768 
Professional services and other(99)30 — (69)
Total cost of revenues103,618 6,490 — 110,108 
Compensation and benefits77,010 26,174 13,653 116,837 
General and administration31,463 7,851 8,074 47,388 
Depreciation and amortization24,637 8,771 — 33,408 
Total operating expenses$236,728 $49,286 $21,727 $307,741 
Income (loss) from operations$20,607 $74 $(21,727)$(1,046)
Add (deduct):
Deferred revenue fair value adjustment (a)
54 — — 54 
Depreciation and amortization24,637 8,771 — 33,408 
Non-cash compensation expense (c)
11,235 2,991 3,039 17,265 
Restructuring charges and transaction costs (d)
928 1,264 1,703 3,895 
Severance (c)
686 281 158 1,125 
Non-recurring litigation and regulatory related expenses (b)
— (2,050)— (2,050)
Non-income tax expense adjustment (b)
(343)18 — (325)
Loss attributable to non-controlling interest820 — — 820 
Other (e)
352 — — 352 
Adjusted EBITDA$58,976 $11,349 $(16,827)$53,498 
(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, 2022, $4.1 million was included within general and administration expenses, $0.2 million was included within compensation and benefits expenses, and $(0.4) million was included in other expense, net, in the condensed consolidated statements of operations.
(e)For the three months ended September 30, 2022, $0.4 million was included within other expense, net, in the condensed consolidated statements of operations.
13

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

Nine Months Ended September 30, 2022
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
Revenues$802,903 $144,007 $— $946,910 
Deferred revenue fair value adjustment (a)
162 — — 162 
Adjusted revenues$803,065 $144,007 $— $947,072 
Revenues:
Asset-based$571,820 $— $— $571,820 
Subscription-based218,080 138,521 — 356,601 
Total recurring revenues789,900 138,521 — 928,421 
Professional services and other revenues13,003 5,486 — 18,489 
Total revenues802,903 144,007 — 946,910 
Operating expenses:
Cost of revenues:
Asset-based332,138 — — 332,138 
Subscription-based4,177 18,643 — 22,820 
Professional services and other6,833 81 — 6,914 
Total cost of revenues343,148 18,724 — 361,872 
Compensation and benefits234,413 80,334 54,706 369,453 
General and administration103,824 28,633 25,410 157,867 
Depreciation and amortization71,674 25,534 — 97,208 
Total operating expenses$753,059 $153,225 $80,116 $986,400 
Income (loss) from operations$49,844 $(9,218)$(80,116)$(39,490)
Add (deduct):
Deferred revenue fair value adjustment (a)
162 — — 162 
Depreciation and amortization71,674 25,534 — 97,208 
Non-cash compensation expense (c)
35,889 8,378 18,316 62,583 
Restructuring charges and transaction costs (d)
18,109 2,014 7,144 27,267 
Severance (c)
4,909 1,492 4,978 11,379 
Non-recurring litigation and regulatory related expenses (b)
— 5,333 — 5,333 
Non-income tax expense adjustment (b)
(52)(60)— (112)
Loss attributable to non-controlling interest1,637 — — 1,637 
Other (e)
352 2 — 354 
Adjusted EBITDA$182,524 $33,475 $(49,678)$166,321 

(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, 2022, $27.5 million was included within general and administration expenses, $0.2 million was included within compensation and benefits expenses and $(0.4) million was included in other expense, net in the condensed consolidated statements of operations.
(e)For the nine months ended September 30, 2022, $0.4 million 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) 
Three Months Ended September 30, 2021
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
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 (deduct):
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, $1.5 million was included within general and administration expenses and $1.9 million was included within compensation and benefits in the condensed consolidated statements of operations.

15

Reconciliation of Non-GAAP Financial Measures
Segment Information (continued)
(in thousands)
(unaudited) 
Nine Months Ended September 30, 2021
Envestnet Wealth SolutionsEnvestnet Data & AnalyticsNonsegmentTotal
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 (deduct):
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, $6.0 million was included within general and administration expenses and $5.2 million was included within compensation and benefits in the condensed consolidated statements of operations.
16

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,
20212021
2022(1)
20222022
(in millions, except accounts and advisors data)
Platform Assets
Assets under Management (“AUM”)
$327,279 $362,038 $361,251 $325,209 $315,883 
Assets under Administration (“AUA”)431,040 456,316 432,141 352,840 350,576 
Total AUM/A758,319 818,354 793,392 678,049 666,459 
Subscription4,670,827 4,901,662 4,736,537 4,312,114 4,134,414 
Total Platform Assets$5,429,146 $5,720,016 $5,529,929 $4,990,163 $4,800,873 
Platform Accounts
AUM1,276,066 1,345,274 1,459,093 1,491,861 1,522,968 
AUA1,193,069 1,217,076 1,186,180 1,061,484 1,135,302 
Total AUM/A2,469,135 2,562,350 2,645,273 2,553,345 2,658,270 
Subscription14,810,664 14,986,531 15,151,569 15,312,144 15,596,403 
Total Platform Accounts17,279,799 17,548,881 17,796,842 17,865,489 18,254,673 
Advisors
AUM/A41,696 39,735 39,800 38,394 38,417 
Subscription66,489 68,808 67,168 66,838 67,348 
Total Advisors108,185 108,543 106,968 105,232 105,765 
(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 September 30, 2022:

6/30/2022Gross
Sales		RedemptionsNet
Flows		Market ImpactReclass to Subscription9/30/2022
(in millions, except account data)
AUM$325,209 $24,912 $(15,971)$8,941 $(17,762)$(505)$315,883 
AUA352,840 37,880 (19,986)17,894 (17,544)(2,614)350,576 
Total AUM/A$678,049 $62,792 $(35,957)$26,835 $(35,306)$(3,119)$666,459 
Fee-Based Accounts2,553,345 114,147 (9,222)2,658,270 

The above AUM/A gross sales figures include $23.6 billion in new client conversions. The Company onboarded an additional $35.8 billion in subscription conversions during the three months ended September 30, 2022, bringing total conversions for the quarter to $59.4 billion.

Asset and account figures in the “Reclass to Subscription” columns for the three months ended September 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.
17