Envestnet Reports Fourth Quarter 2018 Financial Results

▤ Summary

Today, the Company announced an agreement to acquire PortfolioCenter® from Schwab Performance Technologies®, a provider of portfolio management and reporting technology solution for independent registered investment advisors (RIAs). Total Normalized Growth 9-11% 16-18% 12-14% (1%) 11-13% Market Impact (5%) — (3%) — (3%) Reclass to Subscription (3%) 5% — — — Third Party Managers (1%) — (1%) — (1%) PortfolioCenter — 3% 1% — 1% FolioDynamix — (1%) (1%) — (1%) Guidance Range flat 23-25% 8-10% (1%) 7-8% Conference Call Envestnets unified technology empowers enterprises and advisors to more fully understand their clients and deliver actionable intelligence that drives better outcomes and improves lives. 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, the possibility that the anticipated benefits of the Company’s acquisition of FolioDynamix will not be realized to the extent or when expected, difficulty in sustaining rapid revenue growth, which may place significant demands on the Company’s 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 revenue, 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 (“FinApps”), compliance failures, adverse judicial or regulatory proceedings against us, liabilities associated with potential, perceived or actual breaches of fiduciary duties and/or conflicts of interest, changes in laws and regulations, including tax laws and regulations, general economic conditions, political and regulatory conditions, the impact of fluctuations in market condition and interest rates on the demand for our products and services and the value of assets under management or administration, the impact of market conditions on our ability to issue debt and equity, the impact of fluctuations in interest rates on our cost of borrowing, our financial performance, the results of our investments in research and development, our data center and other infrastructure, our ability to maintain the security and integrity of our systems and facilities and to maintain the privacy of personal information, failure of our systems to work properly, our ability to realize operating efficiencies, the advantages of our solutions as compared to those of others, the failure to protect our intellectual property rights, our ability to establish and maintain intellectual property rights, our ability to retain and hire necessary employees and appropriately staff our operations, and management’s response to these factors. Basic $ 0.00 $ 0.40 $ 0.13 $ (0.08 ) Diluted $ 0.00 $ 0.38 $ 0.12 $ (0.08 ) Weighted average common shares outstanding: Basic 45,985,791 44,404,104 45,268,002 43,732,148 Diluted 47,752,500 46,957,681 47,384,085 43,732,148 Envestnet, Inc.Condensed Consolidated Statements of Cash Flows(in thousands)(unaudited)Year EndedDecember 31,20182017OPERATING ACTIVITIES: Net income (loss) $ 4,010 $ (3,280 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 77,626 62,820 Deferred rent and lease incentive amortization 671 1,027 Provision for doubtful accounts 1,618 867 Deferred income taxes (benefits) (23,629 ) (4,597 ) Stock-based compensation expense 40,245 31,331 Non-cash interest expense 14,534 8,994 Accretion on contingent consideration and purchase liability 222 512 Payments of contingent consideration — (357 ) Loss allocation from equity method investment 1,146 1,469 Loss on disposal of fixed assets 189 76 Changes in operating assets and liabilities, net of acquisitions: Fees and other receivables (12,890 ) (8,121 ) Prepaid expenses and other current assets (887 ) (787 ) Other non-current assets (3,336 ) (1,690 ) Accrued expenses and other liabilities 12,939 16,810 Accounts payable 1,743 (442 ) Deferred revenue 345 1,191 Other non-current liabilities 2,839 2,427 Net cash provided by operating activities 117,385 108,250 INVESTING ACTIVITIES: Purchase of property and equipment (20,524 ) (14,945 ) Capitalization of internally developed software (24,068 ) (12,624 ) Investment in private companies (1,200 ) (1,450 ) Acquisition of businesses

▦ Linked Companies

Envestnet

$1B+