Envestnet Reports First Quarter 2024 Financial Results
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Three months ended |
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Key Financial Metrics |
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% |
||||||
(in millions, except per share data) |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
GAAP: |
|
|
|
|
|
|
||||
Total revenue |
|
$ |
325.0 |
|
|
$ |
298.7 |
|
|
9% |
Net income (loss) attributable to |
|
$ |
2.5 |
|
|
$ |
(41.2 |
) |
|
106% |
Net income (loss) attributable to |
|
$ |
0.05 |
|
|
$ |
(0.76 |
) |
|
107% |
|
|
|
|
|
|
|
||||
Non-GAAP: |
|
|
|
|
|
|
||||
Adjusted EBITDA(1) |
|
$ |
70.4 |
|
|
$ |
54.0 |
|
|
30% |
Adjusted net income(1) |
|
$ |
39.4 |
|
|
$ |
30.1 |
|
|
31% |
Adjusted net income per diluted share(1) |
|
$ |
0.60 |
|
|
$ |
0.46 |
|
|
30% |
Free cash flow(1) |
|
$ |
(19.9 |
) |
|
$ |
(61.7 |
) |
|
68% |
"
Financial Results for the First Quarter 2024 Compared to the First Quarter 2023
Total revenue increased 9% to
Total operating expenses increased 2% to
Income from operations was
Adjusted EBITDA(1) increased 30% to
Balance Sheet and Liquidity
As of
Segment Reporting
On
Correction of Immaterial Error
During the fourth quarter of 2023, the Company identified that the arrangement with a third-party for the use of cloud hosted virtual servers which was previously accounted for as a finance lease transaction and included as a component of property and equipment, net in the condensed consolidated balance sheets should have been recognized as a prepayment included within prepaid expenses and other current assets and other assets in the condensed consolidated balance sheets. The Company concluded that the classification of these transactions was immaterial in prior period financial statements and that amendment of previously filed reports was not required. However, the Company corrected this immaterial error in the prior period reported within this press release.
Outlook
In Millions, Except Adjusted EPS |
|
2Q 2024 |
||||||
GAAP: |
|
|
|
|
|
|
||
Revenue: |
|
|
|
|
|
|
||
Asset-based |
|
$ |
211.5 |
|
- |
|
$ |
214.5 |
Subscription-based |
|
|
115.0 |
|
- |
|
|
118.0 |
Total recurring revenue |
|
|
326.5 |
|
- |
|
|
332.5 |
Professional services and other revenue |
|
|
10.5 |
|
- |
|
|
12.5 |
Total revenue |
|
$ |
337.0 |
|
- |
|
$ |
345.0 |
|
|
|
|
|
|
|
||
Asset-based direct expense |
|
$ |
125.0 |
|
- |
|
$ |
126.5 |
Total direct expense |
|
$ |
139.5 |
|
- |
|
$ |
141.0 |
|
|
|
|
|
|
|
||
Net income (loss) |
|
|
|
(a) |
|
|
||
|
|
|
|
|
|
|
||
Diluted shares outstanding |
|
|
|
66.5 |
|
|
||
Net income (loss) per diluted share |
|
|
|
(a) |
|
|
||
|
|
|
|
|
|
|
||
Non-GAAP: |
|
|
|
|
|
|
||
Adjusted EBITDA(1) |
|
$ |
71.0 |
|
- |
|
$ |
75.0 |
Adjusted net income per diluted share(1) |
|
$ |
0.60 |
|
- |
|
$ |
0.65 |
_______________________________________________________
(a)
Conference Call
About
For more information on
_______________________________________________________
(1) Non-GAAP Financial Measures
“Adjusted EBITDA” represents net income (loss) before deferred revenue fair value adjustment, interest income, interest expense, income tax provision, depreciation and amortization, non-cash compensation expense, restructuring charges and transaction costs, severance expense, litigation, regulatory and other governance related expenses, foreign currency, non-income tax expense adjustment, loss allocations from equity method investments and loss attributable to non-controlling interest.
“Adjusted net income” represents net income (loss) before income tax provision, deferred revenue fair value adjustment, non-cash interest expense, cash interest on our Convertible Notes, amortization of acquired intangibles, non-cash compensation expense, restructuring charges and transaction costs, severance expense, litigation, regulatory and other governance related expenses, foreign currency, non-income tax expense adjustment, loss allocations from equity method investments and loss attributable to non-controlling interest. Reconciling items are presented gross of tax, and a normalized tax rate is applied to the total of all reconciling items to arrive at adjusted net income. 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. For purposes of the adjusted net income per share calculation, we assume all potential shares to be issued in connection with our convertible notes are dilutive.
"Free cash flow" represents net cash provided by (used in) operating activities less purchases of property and equipment and capitalization of internally developed software.
For further information see reconciliations of Non-GAAP Financial Measures on pages 10-14 of this press release, and the section entitled "Non-GAAP Financial Measures" in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the
Cautionary Statement Regarding Forward-Looking Statements
The forward-looking statements made in this press release and its attachments concerning, among other things,
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|
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2024 |
|
2023 |
||
Assets |
|
|
|
|
||
Current assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
61,226 |
|
$ |
91,378 |
Fees receivable, net |
|
|
135,630 |
|
|
120,958 |
Prepaid expenses and other current assets |
|
|
53,330 |
|
|
51,472 |
Assets held for deconsolidation |
|
|
55,016 |
|
|
— |
Total current assets |
|
|
305,202 |
|
|
263,808 |
Property and equipment, net |
|
|
46,856 |
|
|
48,223 |
Internally developed software, net |
|
|
214,507 |
|
|
224,713 |
Intangible assets, net |
|
|
323,326 |
|
|
338,068 |
|
|
|
779,916 |
|
|
806,563 |
Operating lease right-of-use assets, net |
|
|
67,127 |
|
|
69,154 |
Other assets |
|
|
127,111 |
|
|
126,723 |
Total assets |
|
$ |
1,864,045 |
|
$ |
1,877,252 |
|
|
|
|
|
||
Liabilities and equity |
|
|
|
|
||
Current liabilities: |
|
|
|
|
||
Accounts payable, accrued expenses and other current liabilities |
|
$ |
201,126 |
|
$ |
241,424 |
Operating lease liabilities |
|
|
12,479 |
|
|
12,909 |
Deferred revenue |
|
|
34,584 |
|
|
38,201 |
Liabilities held for deconsolidation |
|
|
8,998 |
|
|
— |
Total current liabilities |
|
|
257,187 |
|
|
292,534 |
Debt |
|
|
877,842 |
|
|
876,612 |
Operating lease liabilities, net of current portion |
|
|
98,085 |
|
|
100,830 |
Deferred tax liabilities, net |
|
|
15,716 |
|
|
16,568 |
Other liabilities |
|
|
17,897 |
|
|
16,202 |
Total liabilities |
|
|
1,266,727 |
|
|
1,302,746 |
|
|
|
|
|
||
Equity: |
|
|
|
|
||
Total stockholders’ equity, attributable to |
|
|
580,897 |
|
|
568,191 |
Non-controlling interest |
|
|
16,421 |
|
|
6,315 |
Total liabilities and equity |
|
$ |
1,864,045 |
|
$ |
1,877,252 |
|
||||||||
|
|
Three Months Ended |
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|
|
|
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
||||
Asset-based |
|
$ |
202,616 |
|
|
$ |
176,932 |
|
Subscription-based |
|
|
117,462 |
|
|
|
117,079 |
|
Total recurring revenue |
|
|
320,078 |
|
|
|
294,011 |
|
Professional services and other revenue |
|
|
4,872 |
|
|
|
4,696 |
|
Total revenue |
|
|
324,950 |
|
|
|
298,707 |
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
||||
Direct expense |
|
|
126,633 |
|
|
|
109,679 |
|
Employee compensation |
|
|
103,652 |
|
|
|
114,215 |
|
General and administrative |
|
|
52,065 |
|
|
|
54,350 |
|
Depreciation and amortization |
|
|
33,892 |
|
|
|
31,520 |
|
Total operating expenses |
|
|
316,242 |
|
|
|
309,764 |
|
|
|
|
|
|
||||
Income (loss) from operations |
|
|
8,708 |
|
|
|
(11,057 |
) |
Other expense, net |
|
|
(6,664 |
) |
|
|
(7,935 |
) |
Income (loss) before income tax provision |
|
|
2,044 |
|
|
|
(18,992 |
) |
|
|
|
|
|
||||
Income tax provision |
|
|
1,505 |
|
|
|
23,769 |
|
|
|
|
|
|
||||
Net income (loss) |
|
|
539 |
|
|
|
(42,761 |
) |
Add: Net loss attributable to non-controlling interest |
|
|
1,974 |
|
|
|
1,533 |
|
Net income (loss) attributable to |
|
$ |
2,513 |
|
|
$ |
(41,228 |
) |
|
|
|
|
|
||||
Net income (loss) attributable to |
|
|
|
|
||||
Basic |
|
$ |
0.05 |
|
|
$ |
(0.76 |
) |
Diluted |
|
$ |
0.05 |
|
|
$ |
(0.76 |
) |
Weighted average common shares outstanding: |
|
|
|
|
||||
Basic |
|
|
54,884,074 |
|
|
|
54,143,259 |
|
Diluted |
|
|
55,385,066 |
|
|
|
54,143,259 |
|
|
||||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
539 |
|
|
$ |
(42,761 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
33,892 |
|
|
|
31,520 |
|
Deferred income taxes |
|
|
(855 |
) |
|
|
5,221 |
|
Non-cash compensation expense |
|
|
18,898 |
|
|
|
19,453 |
|
Non-cash interest expense |
|
|
4,580 |
|
|
|
4,498 |
|
Loss allocations from equity method investments |
|
|
2,283 |
|
|
|
2,940 |
|
Other |
|
|
2,078 |
|
|
|
468 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Fees receivable, net |
|
|
(18,841 |
) |
|
|
(21,579 |
) |
Prepaid expenses and other assets |
|
|
(2,371 |
) |
|
|
(9,858 |
) |
Accounts payable, accrued expenses and other liabilities |
|
|
(40,659 |
) |
|
|
(31,648 |
) |
Deferred revenue |
|
|
2,400 |
|
|
|
8,073 |
|
Net cash provided by (used in) operating activities |
|
|
1,944 |
|
|
|
(33,673 |
) |
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(1,900 |
) |
|
|
(4,402 |
) |
Capitalization of internally developed software |
|
|
(19,953 |
) |
|
|
(23,664 |
) |
Investments in private companies |
|
|
(2,805 |
) |
|
|
(950 |
) |
Acquisition of proprietary technology |
|
|
— |
|
|
|
(10,000 |
) |
Issuance of loan receivable to private company |
|
|
— |
|
|
|
(20,000 |
) |
Other |
|
|
— |
|
|
|
260 |
|
Net cash used in investing activities |
|
|
(24,658 |
) |
|
|
(58,756 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from exercise of stock options |
|
|
71 |
|
|
|
367 |
|
Payments related to tax withholdings for stock-based compensation |
|
|
(8,449 |
) |
|
|
(10,732 |
) |
Payments related to share repurchases |
|
|
— |
|
|
|
(9,289 |
) |
Proceeds from capital contributions received by non-controlling interest |
|
|
12,012 |
|
|
|
— |
|
Purchase of non-controlling units from third-party shareholders |
|
|
— |
|
|
|
(1,008 |
) |
Other |
|
|
3 |
|
|
|
2 |
|
Net cash provided by (used in) financing activities |
|
|
3,637 |
|
|
|
(20,660 |
) |
Effect of exchange rate on changes on cash and cash equivalents |
|
|
(2 |
) |
|
|
3,580 |
|
Net change in cash and cash equivalents due to cash reclassified to assets held for deconsolidation |
|
|
(11,073 |
) |
|
|
— |
|
Net change in cash and cash equivalents |
|
|
(30,152 |
) |
|
|
(109,509 |
) |
Cash and cash equivalents, beginning of period |
|
|
91,378 |
|
|
|
162,173 |
|
Cash and cash equivalents, end of period |
|
$ |
61,226 |
|
|
$ |
52,664 |
|
|
||||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
|
$ |
539 |
|
|
$ |
(42,761 |
) |
Add (deduct): |
|
|
|
|
||||
Deferred revenue fair value adjustment (a) |
|
|
— |
|
|
|
52 |
|
Interest income (b) |
|
|
(1,983 |
) |
|
|
(1,358 |
) |
Interest expense (b) |
|
|
6,089 |
|
|
|
6,320 |
|
Income tax provision |
|
|
1,505 |
|
|
|
23,769 |
|
Depreciation and amortization |
|
|
33,892 |
|
|
|
31,520 |
|
Non-cash compensation expense (d) |
|
|
18,898 |
|
|
|
19,453 |
|
Restructuring charges and transaction costs (e) |
|
|
2,056 |
|
|
|
4,163 |
|
Severance expense (d) |
|
|
3,425 |
|
|
|
6,188 |
|
Litigation, regulatory and other governance related expenses (c) |
|
|
2,288 |
|
|
|
3,074 |
|
Foreign currency (b) |
|
|
275 |
|
|
|
33 |
|
Non-income tax expense adjustment (c) |
|
|
(49 |
) |
|
|
(168 |
) |
Loss allocations from equity method investments (b) |
|
|
2,283 |
|
|
|
2,940 |
|
Loss attributable to non-controlling interest |
|
|
1,160 |
|
|
|
778 |
|
Adjusted EBITDA |
|
$ |
70,378 |
|
|
$ |
54,003 |
|
(a) |
Included within subscription-based revenue in the condensed consolidated statements of operations. |
|
(b) |
Included within other expense, net in the condensed consolidated statements of operations. |
|
(c) |
Included within general and administrative expense in the condensed consolidated statements of operations. |
|
(d) |
Included within employee compensation expense in the condensed consolidated statements of operations. |
|
(e) |
For the three months ended |
|
|
||||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
|
$ |
539 |
|
|
$ |
(42,761 |
) |
Income tax provision (a) |
|
|
1,505 |
|
|
|
23,769 |
|
Income (loss) before income tax provision |
|
|
2,044 |
|
|
|
(18,992 |
) |
Add (deduct): |
|
|
|
|
||||
Deferred revenue fair value adjustment (b) |
|
|
— |
|
|
|
52 |
|
Non-cash interest expense (d) |
|
|
1,405 |
|
|
|
1,442 |
|
Cash interest - Convertible Notes (d) |
|
|
4,369 |
|
|
|
4,565 |
|
Amortization of acquired intangibles (e) |
|
|
14,742 |
|
|
|
16,940 |
|
Non-cash compensation expense (f) |
|
|
18,898 |
|
|
|
19,453 |
|
Restructuring charges and transaction costs (g) |
|
|
2,056 |
|
|
|
4,163 |
|
Severance expense (e) |
|
|
3,425 |
|
|
|
6,188 |
|
Litigation, regulatory and other governance related expenses (c) |
|
|
2,288 |
|
|
|
3,074 |
|
Foreign currency (d) |
|
|
275 |
|
|
|
33 |
|
Non-income tax expense adjustment (c) |
|
|
(49 |
) |
|
|
(168 |
) |
Loss allocations from equity method investments (d) |
|
|
2,283 |
|
|
|
2,940 |
|
Loss attributable to non-controlling interest |
|
|
1,160 |
|
|
|
778 |
|
Adjusted net income before income tax effect |
|
|
52,896 |
|
|
|
40,468 |
|
Income tax effect (h) |
|
|
(13,489 |
) |
|
|
(10,319 |
) |
Adjusted net income |
|
$ |
39,407 |
|
|
$ |
30,149 |
|
|
|
|
|
|
||||
Basic number of weighted-average shares outstanding |
|
|
54,884,074 |
|
|
|
54,143,259 |
|
Effect of dilutive shares: |
|
|
|
|
||||
Convertible Notes |
|
|
10,811,884 |
|
|
|
11,470,645 |
|
Non-vested RSUs and PSUs |
|
|
473,738 |
|
|
|
463,719 |
|
Options to purchase common stock |
|
|
27,254 |
|
|
|
88,323 |
|
Diluted number of weighted-average shares outstanding |
|
|
66,196,950 |
|
|
|
66,165,946 |
|
|
|
|
|
|
||||
Adjusted net income per diluted share |
|
$ |
0.60 |
|
|
$ |
0.46 |
|
(a) |
For the three months ended |
|
(b) |
Included within subscription-based revenue in the condensed consolidated statements of operations. |
|
(c) |
Included within general and administrative expense in the condensed consolidated statements of operations. |
|
(d) |
Included within other expense, net in the condensed consolidated statements of operations. |
|
(e) |
Included within depreciation and amortization expense in the condensed consolidated statements of operations. |
|
(f) |
Included within employee compensation expense in the condensed consolidated statements of operations. |
|
(g) |
For the three months ended |
|
(h) |
An estimated normalized tax rate of 25.5% has been used to compute adjusted net income for the three months ended |
|
|
||||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by (used in) operating activities |
|
$ |
1,944 |
|
|
$ |
(33,673 |
) |
Less: Purchases of property and equipment |
|
|
(1,900 |
) |
|
|
(4,402 |
) |
Less: Capitalization of internally developed software |
|
|
(19,953 |
) |
|
|
(23,664 |
) |
Free cash flow |
|
$ |
(19,909 |
) |
|
$ |
(61,739 |
) |
|
||||||||||||||||
|
|
Three Months Ended |
||||||||||||||
|
|
|
|
Envestnet Data
|
|
Nonsegment |
|
Total |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
$ |
202,616 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
202,616 |
|
Subscription-based |
|
|
84,168 |
|
|
|
33,294 |
|
|
|
— |
|
|
|
117,462 |
|
Total recurring revenue |
|
|
286,784 |
|
|
|
33,294 |
|
|
|
— |
|
|
|
320,078 |
|
Professional services and other revenue |
|
|
3,026 |
|
|
|
1,846 |
|
|
|
— |
|
|
|
4,872 |
|
Total revenue |
|
$ |
289,810 |
|
|
$ |
35,140 |
|
|
$ |
— |
|
|
$ |
324,950 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Direct expense: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
$ |
118,403 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
118,403 |
|
Subscription-based |
|
|
1,431 |
|
|
|
6,799 |
|
|
|
— |
|
|
|
8,230 |
|
Total direct expense |
|
|
119,834 |
|
|
|
6,799 |
|
|
|
— |
|
|
|
126,633 |
|
Employee compensation |
|
|
75,196 |
|
|
|
11,692 |
|
|
|
16,764 |
|
|
|
103,652 |
|
General and administrative |
|
|
29,032 |
|
|
|
15,314 |
|
|
|
7,719 |
|
|
|
52,065 |
|
Depreciation and amortization |
|
|
26,818 |
|
|
|
7,074 |
|
|
|
— |
|
|
|
33,892 |
|
Total operating expenses |
|
$ |
250,880 |
|
|
$ |
40,879 |
|
|
$ |
24,483 |
|
|
$ |
316,242 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
$ |
38,930 |
|
|
$ |
(5,739 |
) |
|
$ |
(24,483 |
) |
|
$ |
8,708 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
26,818 |
|
|
|
7,074 |
|
|
|
— |
|
|
|
33,892 |
|
Non-cash compensation expense (b) |
|
|
11,387 |
|
|
|
1,864 |
|
|
|
5,647 |
|
|
|
18,898 |
|
Restructuring charges and transaction costs (c) |
|
|
43 |
|
|
|
679 |
|
|
|
1,334 |
|
|
|
2,056 |
|
Severance expense (b) |
|
|
1,804 |
|
|
|
13 |
|
|
|
1,608 |
|
|
|
3,425 |
|
Litigation, regulatory and other governance related expenses (a) |
|
|
— |
|
|
|
2,288 |
|
|
|
— |
|
|
|
2,288 |
|
Non-income tax expense adjustment (a) |
|
|
(49 |
) |
|
|
— |
|
|
|
— |
|
|
|
(49 |
) |
Loss attributable to non-controlling interest |
|
|
1,160 |
|
|
|
— |
|
|
|
— |
|
|
|
1,160 |
|
Adjusted EBITDA |
|
$ |
80,093 |
|
|
$ |
6,179 |
|
|
$ |
(15,894 |
) |
|
$ |
70,378 |
|
(a) |
Included within general and administrative expense in the condensed consolidated statements of operations. |
|
(b) |
Included within employee compensation expense in the condensed consolidated statements of operations. |
|
(c) |
|
|
|
||||||||||||||||
|
|
Three months ended |
||||||||||||||
|
|
|
|
Envestnet Data
|
|
Nonsegment |
|
Total |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
$ |
176,932 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
176,932 |
|
Subscription-based |
|
|
80,470 |
|
|
|
36,609 |
|
|
|
— |
|
|
|
117,079 |
|
Total recurring revenue |
|
|
257,402 |
|
|
|
36,609 |
|
|
|
— |
|
|
|
294,011 |
|
Professional services and other revenue |
|
|
3,247 |
|
|
|
1,449 |
|
|
|
— |
|
|
|
4,696 |
|
Total revenue |
|
$ |
260,649 |
|
|
$ |
38,058 |
|
|
$ |
— |
|
|
$ |
298,707 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Direct expense: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
$ |
102,623 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
102,623 |
|
Subscription-based |
|
|
1,778 |
|
|
|
5,274 |
|
|
|
— |
|
|
|
7,052 |
|
Professional services and other |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
Total direct expense |
|
|
104,405 |
|
|
|
5,274 |
|
|
|
— |
|
|
|
109,679 |
|
Employee compensation |
|
|
79,047 |
|
|
|
19,242 |
|
|
|
15,926 |
|
|
|
114,215 |
|
General and administrative |
|
|
29,107 |
|
|
|
14,429 |
|
|
|
10,814 |
|
|
|
54,350 |
|
Depreciation and amortization |
|
|
25,492 |
|
|
|
6,028 |
|
|
|
— |
|
|
|
31,520 |
|
Total operating expenses |
|
$ |
238,051 |
|
|
$ |
44,973 |
|
|
$ |
26,740 |
|
|
$ |
309,764 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
$ |
22,598 |
|
|
$ |
(6,915 |
) |
|
$ |
(26,740 |
) |
|
$ |
(11,057 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||
Deferred revenue fair value adjustment (a) |
|
|
52 |
|
|
|
— |
|
|
|
— |
|
|
|
52 |
|
Depreciation and amortization |
|
|
25,492 |
|
|
|
6,028 |
|
|
|
— |
|
|
|
31,520 |
|
Non-cash compensation expense (c) |
|
|
11,467 |
|
|
|
2,437 |
|
|
|
5,549 |
|
|
|
19,453 |
|
Restructuring charges and transaction costs (d) |
|
|
1,139 |
|
|
|
243 |
|
|
|
2,781 |
|
|
|
4,163 |
|
Severance expense (c) |
|
|
3,799 |
|
|
|
2,205 |
|
|
|
184 |
|
|
|
6,188 |
|
Litigation, regulatory and other governance related expenses (b) |
|
|
— |
|
|
|
1,324 |
|
|
|
1,750 |
|
|
|
3,074 |
|
Non-income tax expense adjustment (b) |
|
|
(102 |
) |
|
|
(66 |
) |
|
|
— |
|
|
|
(168 |
) |
Loss attributable to non-controlling interest |
|
|
778 |
|
|
|
— |
|
|
|
— |
|
|
|
778 |
|
Adjusted EBITDA |
|
$ |
65,223 |
|
|
$ |
5,256 |
|
|
$ |
(16,476 |
) |
|
$ |
54,003 |
|
(a) |
Included within subscription-based revenue in the condensed consolidated statements of operations. |
|
(b) |
Included within general and administrative expense in the condensed consolidated statements of operations. |
|
(c) |
Included within employee compensation expense in the condensed consolidated statements of operations. |
|
(d) |
|
|
E
nvestnet, Inc.
Key Metrics
(in millions, except accounts and advisors data)
(unaudited)
Envestnet Wealth Solutions Segment
The following table provides information regarding the amount of assets utilizing our platforms, financial advisors and investor accounts in the periods indicated:
|
|
As of |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2024 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
(in millions, except accounts and advisors data) |
|||||||||||||
Platform Assets |
|
|
|
|
|
|
|
|
|
|
|||||
Assets under Management (“AUM”) |
|
$ |
363,244 |
|
$ |
384,773 |
|
$ |
375,408 |
|
$ |
416,001 |
|
$ |
452,464 |
Assets under Administration (“AUA”) |
|
|
379,843 |
|
|
394,078 |
|
|
398,082 |
|
|
430,846 |
|
|
471,401 |
Total AUM/A |
|
|
743,087 |
|
|
778,851 |
|
|
773,490 |
|
|
846,847 |
|
|
923,865 |
Subscription |
|
|
4,566,971 |
|
|
4,643,313 |
|
|
4,579,248 |
|
|
4,959,514 |
|
|
5,158,180 |
Total Platform Assets |
|
$ |
5,310,058 |
|
$ |
5,422,164 |
|
$ |
5,352,738 |
|
$ |
5,806,361 |
|
$ |
6,082,045 |
Platform Accounts |
|
|
|
|
|
|
|
|
|
|
|||||
AUM |
|
|
1,571,862 |
|
|
1,609,677 |
|
|
1,614,873 |
|
|
1,640,879 |
|
|
1,688,044 |
AUA |
|
|
1,142,166 |
|
|
1,144,375 |
|
|
1,257,094 |
|
|
1,254,962 |
|
|
1,315,442 |
Total AUM/A |
|
|
2,714,028 |
|
|
2,754,052 |
|
|
2,871,967 |
|
|
2,895,841 |
|
|
3,003,486 |
Subscription |
|
|
15,779,980 |
|
|
15,916,955 |
|
|
16,072,848 |
|
|
16,248,598 |
|
|
16,641,631 |
Total Platform Accounts |
|
|
18,494,008 |
|
|
18,671,007 |
|
|
18,944,815 |
|
|
19,144,439 |
|
|
19,645,117 |
Advisors |
|
|
|
|
|
|
|
|
|
|
|||||
AUM/A |
|
|
38,611 |
|
|
38,809 |
|
|
38,078 |
|
|
38,697 |
|
|
38,814 |
Subscription |
|
|
67,843 |
|
|
68,439 |
|
|
69,318 |
|
|
69,973 |
|
|
70,262 |
|
|
|
106,454 |
|
|
107,248 |
|
|
107,396 |
|
|
108,670 |
|
|
109,076 |
The following table summarizes the changes in AUM and AUA for the three months ended
|
|
Asset Rollforward - Three Months Ended |
|||||||||||||||||||||
|
|
As of
|
|
Gross |
|
|
|
Net |
|
Market |
|
|
|
As of
|
|||||||||
|
|
2023 |
|
Sales |
|
Redemptions |
|
Flows |
|
Impact |
|
Reclassifications |
|
2024 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
(in millions, except account data) |
|||||||||||||||||||||
AUM |
|
$ |
416,001 |
|
$ |
32,127 |
|
$ |
(19,601 |
) |
|
$ |
12,526 |
|
$ |
22,694 |
|
$ |
1,243 |
|
|
$ |
452,464 |
AUA |
|
|
430,846 |
|
|
45,596 |
|
|
(25,402 |
) |
|
|
20,194 |
|
|
22,683 |
|
|
(2,322 |
) |
|
|
471,401 |
Total AUM/A |
|
$ |
846,847 |
|
$ |
77,723 |
|
$ |
(45,003 |
) |
|
$ |
32,720 |
|
$ |
45,377 |
|
$ |
(1,079 |
) |
|
$ |
923,865 |
Fee-Based Accounts |
|
|
2,895,841 |
|
|
|
|
|
|
112,633 |
|
|
|
|
(4,988 |
) |
|
|
3,003,486 |
The above AUM/A gross sales figures for the three months ended
Asset and account figures in the “Reclassifications” column for the three months ended
Envestnet Data & Analytics Segment
The following table provides information regarding the amount of paid-end users and firms using the Envestnet Data & Analytics platform in the periods indicated:
|
|
As of |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except number of firms data) |
||||||||
Number of paying users |
|
37.5 |
|
38.0 |
|
42.3 |
|
38.3 |
|
43.8 |
Number of firms |
|
1,310 |
|
1,339 |
|
1,322 |
|
1,324 |
|
1,323 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240506422327/en/
Investor Relations
investor.relations@envestnet.com
(312) 827-3940
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Source: