CHICAGO--(BUSINESS WIRE)-- Envestnet (NYSE: ENV), a leading provider of intelligent systems for wealth management and financial wellness, today reported financial results for its second quarter ended June 30, 2017.

			Three Months Ended														Six Months Ended
Key Financial Metrics			June 30,										%				June 30,										%
(in millions except per share data)				2017					2016				Change					2017					2016				Change
GAAP:
Total Revenues			$	167.4				$	141.7				18	%			$	325.2				$	273.5				19	%
Net Loss				(6.5	)				(7.9	)			(19	%)				(19.6	)				(18.9	)			4	%
Net Loss per Diluted Share			$	(0.15	)			$	(0.19	)			(22	%)			$	(0.45	)			$	(0.44	)			2	%
Non-GAAP:
Adjusted Revenues(1)			$	167.5				$	141.9				18	%			$	325.3				$	274.0				19	%
Adjusted EBITDA(1)				29.5					22.3				32	%				55.4					41.5				33	%
Adjusted Net Income(1)				13.1					9.2				43	%				24.7					17.0				45	%
Adjusted Net Income per Diluted Share(1)			$	0.29				$	0.21				38	%			$	0.54				$	0.39				38	%

“Envestnet continues to execute on its growth strategy,” said Jud Bergman, Chairman and CEO. “In the second quarter, we experienced significant growth in recurring subscription revenue, and we further expanded our industry footprint, increasing advisors, accounts and assets served by our integrated wealth management offerings.”

“We see significant opportunities ahead, as enterprises and advisors adopt our intelligent systems for wealth management and financial wellness, delivering better financial outcomes for their clients,” concluded Mr. Bergman.

Financial Results for the Second Quarter of 2017 Compared to the Second Quarter of 2016:

Total revenues increased 18% to $167.4 million in the three months ended June 30, 2017 from $141.7 million in the three months ended June 30, 2016. Asset-based revenues, which were 59% and 61% of total revenues for the second quarter of 2017 and 2016, respectively, increased 15% from the prior year period. Subscription and licensing revenues increased 27% from the prior year period.

Total operating expenses for the second quarter of 2017 increased 11% to $164.7 million from $148.0 million in the prior year period. Cost of revenues increased 24% to $55.7 million for the second quarter of 2017 from $44.9 million for the second quarter of 2016. Compensation and benefits increased 13% to $65.0 million for the second quarter of 2017 from $57.7 million for the prior year period. Compensation and benefits were 39% of total revenues for the second quarter of 2017, compared to 41% for the prior year period. General and administration expenses were $28.5 million for the second quarter of 2017, consistent with $28.4 million for the prior year period. General and administrative expenses were 17% of total revenues for the second quarter of 2017, compared to 20% for the prior year period.

Income from operations was $2.7 million for the second quarter of 2017 compared to a loss of $6.3 million for the second quarter of 2016. Net loss attributable to Envestnet, Inc. was $6.5 million, or a loss of $0.15 per diluted share, for the second quarter of 2017 compared to a loss of $7.9 million, or a loss of $0.19 per diluted share, for the second quarter of 2016.

Adjusted Revenues(1) for the second quarter of 2017 increased 18% to $167.5 million from $141.9 million for the prior year period. Adjusted EBITDA(1) for the second quarter of 2017 increased 32% to $29.5 million from $22.3 million for the prior year period. Adjusted Net Income(1) increased 43% for the second quarter of 2017 to $13.1 million from $9.2 million for the prior year period. Adjusted Net Income Per Share(1) for the second quarter of 2017 increased 38% to $0.29 from $0.21 in the second quarter of 2016.

Outlook

The Company provided the following outlook for the third quarter ended September 30, 2017 and full year ended December 31, 2017. This outlook is based on the market value of assets on June 30, 2017 and is risk-adjusted with respect to contributions from client conversions and synergy revenue related to prior acquisitions.

In Millions Except Adjusted EPS						3Q 2017										FY 2017
GAAP:
AUM/A revenue						$	103.5			-		$	104.0						-
Subscription and licensing revenue							61.5			-			62.5						-
Professional services and other revenue							5.0			-			5.5						-
Revenues						$	170.0			-		$	172.0			$	667		-		$	673
Cost of revenues						$	54.0			-		$	55.0						-
Net Income										-									-
Diluted shares outstanding										46.5									-
Net Income per Diluted Share										-									-
Non-GAAP:
Adjusted Revenues(1)						$	170.0			-		$	172.0			$	667		-		$	673
Adjusted EBITDA(1)						$	33.0			-		$	34.0			$	125		-		$	128
Adjusted Net Income per Diluted Share(1)									$	0.35									-

Included in the full year 2017 adjusted revenue is an expected deferred revenue fair value adjustment of approximately $0.1 million. The Company does not forecast net income and net income per 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 second quarter 2017 financial results today at 5:00 p.m. ET. The live webcast can be accessed from Envestnet’s investor relations website at http://ir.envestnet.com/. The call can also be accessed live over the phone by dialing (800) 449-5865, or for international callers (719) 325-2356. A replay will be available one hour after the call and can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers; the conference ID is 8728459. The dial-in replay will be available for one week and the webcast replay will be available for one month following the date of the conference call.

About Envestnet

Envestnet, Inc. (NYSE: ENV) is a leading provider of intelligent systems for wealth management and financial wellness. Envestnet's unified technology enhances advisor productivity and strengthens the wealth management process. Envestnet empowers enterprises and advisors to more fully understand their clients and deliver better outcomes.

Envestnet enables financial advisors to better manage client outcomes and strengthen their practices. Institutional-quality research and advanced portfolio solutions are provided through Envestnet | PMC, our Portfolio Management Consultants group. Envestnet | Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. Envestnet | Tamarac provides leading rebalancing, reporting, and practice management software for advisors. Envestnet | Retirement Solutions provides retirement advisors with an integrated platform that combines leading practice management technology, research and due diligence, data aggregation, compliance tools, fiduciary solutions and intelligent managed account solutions.

More than 57,000 advisors and 2,500 companies including: 16 of the 20 largest U.S. banks, 38 of the 50 largest wealth management and brokerage firms, over 500 of the largest Registered Investment Advisers, and hundreds of Internet services companies, leverage Envestnet technology and services. Envestnet solutions enhance knowledge of the client, accelerate client on-boarding, improve client digital experiences, and help drive better outcomes for enterprises, advisors, and their clients.

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

(1) Non-GAAP Financial Measures

“Adjusted revenues” exclude the effect of purchase accounting on the fair value of acquired deferred revenue. Under United States generally accepted accounting principles (GAAP), we record at fair value the acquired deferred revenue for contracts in effect at the time the entities were acquired. Consequently, revenue related to acquired entities for periods subsequent to the acquisition does not reflect the full amount of revenue that would have been recorded by these entities had they remained stand-alone entities.

“Adjusted EBITDA” represents net income before deferred revenue fair value adjustment, interest income, interest expense, accretion on contingent consideration and purchase liability, income tax provision (benefit), depreciation and amortization, non-cash compensation expense, restructuring charges and transaction costs, severance, fair market value adjustment on contingent consideration, litigation related expense, foreign currency and related hedging activity, non-income tax expense adjustment, loss allocation from equity method investment and loss attributable to non-controlling interest.

“Adjusted net income” represents net income before deferred revenue fair value adjustment, accretion on contingent consideration and purchase liability, non-cash interest expense, non-cash compensation expense, restructuring charges and transaction costs, severance, amortization of acquired intangibles, fair market value adjustment on contingent consideration, litigation related expense, foreign currency and related hedging activity, non-income tax expense adjustment, loss allocation from equity method investment 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.

“Adjusted net income per diluted share” represents adjusted net income divided by the diluted number of weighted-average shares outstanding.

See reconciliation of Non-GAAP Financial Measures on pages 8-10 of this press release. Reconciliations are not provided for guidance on such measures as the Company is unable to predict the amounts to be adjusted, such as the GAAP tax provision. The Company’s Non-GAAP Financial Measures should not be viewed as a substitute for revenues, net income or net income per share determined in accordance with GAAP.

Cautionary Statement Regarding Forward-Looking Statements

The forward-looking statements made in this press release and its attachments concerning, among other things, Envestnet, Inc.’s (the “Company”) expected financial performance and outlook for the third quarter and full year of 2017, 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, potential exposure to state and local non-income tax obligations, the Company’s ability to remediate material weaknesses in internal controls over financial reporting and associated costs, difficulty in sustaining rapid revenue growth, which may place significant demands on the Company’s administrative, operational and financial resources, fluctuations in the Company’s revenue, the concentration of nearly all of the Company’s revenues from the delivery of investment solutions and services to clients in the financial services industry, the impact of market and economic conditions on revenues, the Company’s reliance on a limited number of clients for a material portion of its revenue, the renegotiation of fee percentages or termination of the Company’s services by its clients, the Company’s ability to identify potential acquisition candidates, complete acquisitions and successfully integrate acquired companies, potential dilution from issuing equity securities or a weaker balance sheet from using cash or incurring debt to finance acquisitions, the impact of market conditions on the Company’s ability to issue additional debt and equity to fund acquisitions, compliance failures, regulatory or third-party actions against the Company, the failure to protect the Company’s intellectual property rights, the Company’s inability to successfully execute the conversion of its clients’ assets from their technology platform to the Company’s technology platform in a timely and accurate manner, general economic conditions, political and regulatory conditions, the impact of fluctuations in interest rates on the Company’s business, ability to expand our relationships with existing customers, grow the number of customers and derive revenue from new offerings such as our data analytic solutions and market research services and premium FinApps, the results of our investments in research and development, our data center and other infrastructure, our ability to realize operating efficiencies, the advantages of our solutions as compared to those of others, our ability to retain and hire necessary employees and appropriately staff our operations, in particular our India operations, and management’s response to these factors. More information regarding these and other risks, uncertainties and factors is contained in the Company’s filings with the Securities and Exchange Commission (“SEC”) which are available on the SEC’s website at www.sec.gov or the Company’s Investor Relations website at http://ir.envestnet.com/. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. All information in this press release and its attachments is as of August 8, 2017 and, unless required by law, the Company undertakes 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.

Envestnet, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
			June 30,				December 31,
			2017				2016
Assets
Current assets:
Cash and cash equivalents			$	27,730			$	52,592
Fees and other receivables, net				49,566				44,268
Prepaid expenses and other current assets				18,938				16,224
Total current assets				96,234				113,084
Property and equipment, net				34,787				33,000
Internally developed software, net				18,111				14,860
Intangible assets, net				243,902				265,558
Goodwill				432,850				431,936
Other non-current assets				13,782				13,963
Total assets			$	839,666			$	872,401
Liabilities and Equity
Current liabilities:
Accrued expenses and other liabilities			$	86,230			$	87,763
Accounts payable				11,542				11,480
Current portion of debt				38,696				37,926
Contingent consideration				1,995				2,286
Deferred revenue				19,055				16,499
Total current liabilities				157,518				155,954
Convertible Notes				155,729				152,575
Term Notes				65,350				100,409
Contingent consideration				617				2,582
Deferred revenue				14,865				15,643
Deferred rent and lease incentive				14,398				12,060
Deferred tax liabilities, net				12,094				5,555
Other non-current liabilities				15,027				13,436
Total liabilities				435,598				458,214
Redeemable units in ERS				900				900
Equity:
Stockholders' equity				402,770				412,889
Non-controlling interest				398				398
Total liabilities and equity			$	839,666			$	872,401

Envestnet, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share information)
(unaudited)
			Three Months Ended										Six Months Ended
			June 30,										June 30,
				2017					2016					2017					2016
Revenues:
Assets under management or administration			$	98,959				$	86,056				$	193,121				$	168,927
Subscription and licensing				59,802					47,037					117,712					90,657
Professional services and other				8,656					8,615					14,370					13,945
Total revenues				167,417					141,708					325,203					273,529
Operating expenses:
Cost of revenues				55,735					44,902					104,961					85,060
Compensation and benefits				64,996					57,664					130,528					120,280
General and administration				28,478					28,372					59,025					54,099
Depreciation and amortization				15,465					17,100					31,300					33,180
Total operating expenses				164,674					148,038					325,814					292,619
Income (loss) from operations				2,743					(6,330	)				(611	)				(19,090	)
Other expense, net				(4,369	)				(4,831	)				(9,852	)				(8,780	)
Loss before income tax provision (benefit)				(1,626	)				(11,161	)				(10,463	)				(27,870	)
Income tax provision (benefit)				4,844					(3,218	)				9,142					(8,934	)
Net loss				(6,470	)				(7,943	)				(19,605	)				(18,936	)
Add: Net loss attributable to non-controlling interest				-					-					-					-
Net loss attributable to Envestnet, Inc.			$	(6,470	)			$	(7,943	)			$	(19,605	)			$	(18,936	)
Net loss per share attributable to Envestnet, Inc.:
Basic			$	(0.15	)			$	(0.19	)			$	(0.45	)			$	(0.44	)
Diluted			$	(0.15	)			$	(0.19	)			$	(0.45	)			$	(0.44	)
Weighted average common shares outstanding:
Basic				43,855,479					42,752,465					43,513,074					42,632,964
Diluted				43,855,479					42,752,465					43,513,074					42,632,964

Envestnet, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
			Six Months Ended
			June 30,
				2017					2016
OPERATING ACTIVITIES:
Net loss			$	(19,605	)			$	(18,936	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization				31,300					33,180
Deferred rent and lease incentive				583					(325	)
Provision for doubtful accounts				341					106
Deferred income taxes				6,524					3,504
Stock-based compensation expense				15,403					18,318
Non-cash interest expense				4,853					4,031
Accretion on contingent consideration and purchase liability				304					120
Fair market value adjustment on contingent consideration				-					489
Loss on disposal of fixed assets				69					220
Loss allocation from equity method investment				702					-
Changes in operating assets and liabilities, net of acquisitions:
Fees and other receivables				(5,639	)				4,242
Prepaid expenses and other current assets				(2,681	)				(17,116	)
Other non-current assets				(514	)				(2,320	)
Accrued expenses and other liabilities				(752	)				(4,967	)
Accounts payable				(184	)				2,597
Deferred revenue				1,818					1,447
Other non-current liabilities				3,022					1,535
Net cash provided by operating activities				35,544					26,125
INVESTING ACTIVITIES:
Purchase of property and equipment				(9,181	)				(4,632	)
Capitalization of internally developed software				(5,651	)				(3,245	)
Purchase of ERS units				-					(1,500	)
Acquisition of businesses, net of cash acquired				-					(18,394	)
Net cash used in investing activities				(14,832	)				(27,771	)
FINANCING ACTIVITIES:
Proceeds from borrowings on revolving credit facility				25,000					15,000
Payments on revolving credit facility				(25,000	)				(15,000	)
Payments of contingent consideration				(2,286	)				-
Payments of definite consideration				(445	)				-
Payments of purchase consideration liabilities				(235	)				-
Payment of Term Notes				(35,862	)				(4,000	)
Proceeds from exercise of stock options				2,617					2,279
Purchase of treasury stock for stock-based tax withholdings				(9,650	)				(9,834	)
Issuance of restricted stock				4					5
Net cash used in financing activities				(45,857	)				(11,550	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH				283					-
DECREASE IN CASH AND CASH EQUIVALENTS				(24,862	)				(13,196	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD				52,592					51,718
CASH AND CASH EQUIVALENTS, END OF PERIOD			$	27,730				$	38,522

Envestnet, Inc.
Reconciliation of Non-GAAP Financial Measures
(in thousands, except share and per share information)
(unaudited)
			Three Months Ended										Six Months Ended
			June 30,										June 30,
				2017					2016					2017					2016
Revenues			$	167,417				$	141,708				$	325,203				$	273,529
Deferred revenue fair value adjustment				52					240					105					450
Adjusted revenues			$	167,469				$	141,948				$	325,308				$	273,979
Net loss			$	(6,470	)			$	(7,943	)			$	(19,605	)			$	(18,936	)
Add (deduct):
Deferred revenue fair value adjustment				52					240					105					450
Interest income				(29	)				(9	)				(50	)				(22	)
Interest expense				3,877					4,131					8,813					8,223
Accretion on contingent consideration and purchase liability				148					58					304					120
Income tax provision (benefit)				4,844					(3,218	)				9,142					(8,934	)
Depreciation and amortization				15,465					17,100					31,300					33,180
Non-cash compensation expense				7,945					6,703					15,403					18,194
Restructuring charges and transaction costs				2,249					1,157					5,627					3,486
Severance				338					1,419					663					2,046
Fair market value adjustment on contingent consideration				-					439					-					489
Litigation related expense				52					1,469					1,033					1,968
Foreign currency and related hedging activity				122					(127	)				412					(289	)
Non-income tax expense adjustment				414					-					1,163					-
Loss allocation from equity method investment				417					837					702					880
Loss attributable to non-controlling interest				101					48					351					642
Adjusted EBITDA			$	29,525				$	22,304				$	55,363				$	41,497
Net loss			$	(6,470	)			$	(7,943	)			$	(19,605	)			$	(18,936	)
Income tax provision (benefit) (1)				4,844					(3,218	)				9,142					(8,934	)
Loss before income tax provision			$	(1,626	)			$	(11,161	)			$	(10,463	)			$	(27,870	)
Add (deduct):
Deferred revenue fair value adjustment				52					240					105					450
Accretion on contingent consideration and purchase liability				148					58					304					120
Non-cash interest expense				1,331					2,018					4,853					4,031
Non-cash compensation expense				7,945					6,703					15,403					18,194
Restructuring charges and transaction costs				2,249					1,157					5,627					3,486
Severance				338					1,419					663					2,046
Amortization of acquired intangibles				10,371					12,195					20,956					24,121
Fair market value adjustment on contingent consideration				-					439					-					489
Litigation related expense				52					1,469					1,033					1,968
Foreign currency and related hedging activity				122					(127	)				412					(289	)
Non-income tax expense adjustment				414					-					1,163					-
Loss allocation from equity method investment				417					837					702					880
Loss attributable to non-controlling interest				101					48					351					642
Adjusted net income before income tax effect				21,914					15,295					41,109					28,268
Income tax effect (2)				(8,766	)				(6,118	)				(16,444	)				(11,307	)
Adjusted net income			$	13,148				$	9,177				$	24,665				$	16,961
Basic number of weighted-average shares outstanding				43,855,479					42,752,465					43,513,074					42,632,964
Effect of dilutive shares:
Options to purchase common stock				1,597,746					1,307,547					1,670,493					1,269,085
Unvested restricted stock units				473,892					169,824					551,227					104,637
Diluted number of weighted-average shares outstanding				45,927,117					44,229,836					45,734,794					44,006,686
Adjusted net income per share - diluted			$	0.29				$	0.21				$	0.54				$	0.39

(1) For the three months ended June 30, 2017 and 2016, the effective tax rate computed in accordance with US GAAP equaled (297.9%) and 28.8%, respectively. For the six months ended June 30, 2017 and 2016, the effective tax rate computed in accordance with US GAAP equaled (87.4%) and 32.1%, respectively.
(2) An estimated normalized effective tax rate of 40% has been used to compute adjusted net income.

Envestnet, Inc.
Reconciliation of Non-GAAP Financial Measures
Segment Information
(in thousands)
(unaudited)
			Three Months Ended June 30, 2017
			Envestnet				Envestnet | Yodlee					Nonsegment					Total
Revenues			$	129,372			$	38,045				$	-				$	167,417
Deferred revenue fair value adjustment				7				45					-					52
Adjusted revenues			$	129,379			$	38,090				$	-				$	167,469
Income (loss) from operations			$	15,811			$	(5,635	)			$	(7,433	)			$	2,743
Add (deduct):
Deferred revenue fair value adjustment				7				45					-					52
Accretion on contingent consideration and purchase liability				148				-					-					148
Depreciation and amortization				6,361				9,104					-					15,465
Non-cash compensation expense				4,218				2,721					1,006					7,945
Restructuring charges and transaction costs				600				-					1,649					2,249
Non-income tax expense adjustment				414				-					-					414
Severance				307				15					16					338
Fair market value adjustment on contingent consideration				-				-					-					-
Litigation related expense				-				52					-					52
Other loss				-				-					18					18
Loss attributable to non-controlling interest				101				-					-					101
Adjusted EBITDA			$	27,967			$	6,302				$	(4,744	)			$	29,525
			Three Months Ended June 30, 2016
			Envestnet				Envestnet | Yodlee					Nonsegment					Total
Revenues			$	110,716			$	30,992				$	-				$	141,708
Deferred revenue fair value adjustment				17				223					-					240
Adjusted revenues			$	110,733			$	31,215				$	-				$	141,948
Income (loss) from operations			$	10,490			$	(11,271	)			$	(5,549	)			$	(6,330	)
Add (deduct):
Deferred revenue fair value adjustment				17				223					-					240
Accretion on contingent consideration and purchase liability				58				-					-					58
Depreciation and amortization				6,360				10,740					-					17,100
Non-cash compensation expense				2,371				3,225					1,107					6,703
Restructuring charges and transaction costs				240				27					890					1,157
Severance				1,029				370					20					1,419
Fair market value adjustment on contingent consideration				-				-					439					439
Litigation related expense				-				1,239					230					1,469
Other loss				-				-					1					1
Loss attributable to non-controlling interest				48				-					-					48
Adjusted EBITDA			$	20,613			$	4,553				$	(2,862	)			$	22,304

Envestnet, Inc. Reconciliation of Non-GAAP Financial Measures Segment Information (in thousands) (unaudited)
			Six Months Ended June 30, 2017
			Envestnet				Envestnet | Yodlee					Nonsegment					Total
Revenues			$	250,690			$	74,513				$	-				$	325,203
Deferred revenue fair value adjustment				36				69					-					105
Adjusted revenues			$	250,726			$	74,582				$	-				$	325,308
Income (loss) from operations			$	29,322			$	(13,343	)			$	(16,590	)			$	(611	)
Add (deduct):
Deferred revenue fair value adjustment				36				69					-					105
Accretion on contingent consideration and purchase liability				304				-					-					304
Depreciation and amortization				12,782				18,518					-					31,300
Non-cash compensation expense				7,892				5,462					2,049					15,403
Restructuring charges and transaction costs				695				-					4,932					5,627
Non-income tax expense adjustment				1,163				-					-					1,163
Severance				423				224					16					663
Fair market value adjustment on contingent consideration				-				-					-					-
Litigation related expense				-				1,033					-					1,033
Other loss				-				-					25					25
Loss attributable to non-controlling interest				351				-					-					351
Adjusted EBITDA			$	52,968			$	11,963				$	(9,568	)			$	55,363
			Six Months Ended June 30, 2016
			Envestnet				Envestnet | Yodlee					Nonsegment					Total
Revenues			$	213,906			$	59,623				$	-				$	273,529
Deferred revenue fair value adjustment				6				444					-					450
Adjusted revenues			$	213,912			$	60,067				$	-				$	273,979
Income (loss) from operations			$	20,064			$	(25,312	)			$	(13,842	)			$	(19,090	)
Add (deduct):
Deferred revenue fair value adjustment				6				444					-					450
Accretion on contingent consideration and purchase liability				120				-					-					120
Depreciation and amortization				12,424				20,756					-					33,180
Non-cash compensation expense				5,586				9,250					3,358					18,194
Restructuring charges and transaction costs				327				31					3,128					3,486
Severance				1,029				679					338					2,046
Fair market value adjustment on contingent consideration				-				-					489					489
Litigation related expense				-				1,738					230					1,968
Other loss				-				-					12					12
Loss attributable to non-controlling interest				642				-					-					642
Adjusted EBITDA			$	40,198			$	7,586				$	(6,287	)			$	41,497

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,
			2016				2016				2016				2017				2017
Platform Assets
Assets Under Management (AUM)			$	96,700			$	101,924			$	105,178			$	113,544			$	122,543
Assets Under Administration (AUA)				220,690				231,831				241,682				248,445				271,450
Subtotal AUM/A				317,390				333,755				346,860				361,989				393,993
Licensing				685,952				721,690				748,125				763,372				825,829
Total Platform Assets			$	1,003,342			$	1,055,445			$	1,094,985			$	1,125,361			$	1,219,822
Platform Accounts
AUM				503,147				519,717				545,130				574,132				614,973
AUA				935,870				961,590				994,583				986,554				1,083,417
Subtotal AUM/A				1,439,017				1,481,307				1,539,713				1,560,686				1,698,390
Licensing				4,304,645				4,394,670				4,558,883				4,263,002				4,811,390
Total Platform Accounts				5,743,662				5,875,977				6,098,596				5,823,688				6,509,780
Advisors
AUM/A				35,067				35,861				36,483				36,985				38,498
Licensing				16,081				16,191				17,852				18,159				19,007
Total Advisors				51,148				52,052				54,335				55,144				57,505

The following tables summarize the changes in AUM and AUA for the three months ended June 30, 2017:

								Gross				Redemp-					Net				Market
In Millions Except Accounts					3/31/2017			Sales				tions					Flows				Impact					6/30/2017
Assets under Management (AUM)				$	113,544			$	13,690			$	(7,222	)			$	6,468			$	2,531			$	122,543
Assets under Administration (AUA)					248,445				30,282				(12,667	)				17,615				5,390				271,450
Total AUM/A				$	361,989			$	43,972			$	(19,889	)			$	24,083			$	7,921			$	393,993
Fee-Based Accounts					1,560,686													137,704								1,698,390

The above AUM/A gross sales figures include $10.9 billion in new client conversions. The Company onboarded an additional $8.9 billion in licensing conversions during the second quarter, bringing total conversions for the quarter to $19.8 billion.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170808006174/en/

Envestnet, Inc.

Investor Relations

312-827-3940

[email protected]

or

Media Relations

[email protected]

Source: Envestnet

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