Revenues from assets under management or assets under administration increased 41 per cent year-over-year to $34.7 million at Envestnet for the fourth quarter of 2012, while total revenues (including licensing and professional services fees) shot up 45 per cent to $44.4 million.

However, net income was $0.8 million for Q4 2012, down from $1.8 million a year earlier.

Total operating expenses in the final quarter rose 52 per cent to $42.7 million from $28.1 million in the prior year, as cost of revenues also grew 54 per cent to $16 million from $10.4 million in the last quarter of 2011. This was due to the increase in revenue from AuM or AuA and additional expenses from acquired businesses, the New York-listed firm said.

Compensation and benefits swelled 59 per cent to $15.2 million in the fourth quarter from $9.6 million a year earlier, due to higher personnel cost from completed acquisitions and higher stock-based compensation expense, it added. 

Meanwhile, the firm reported a 34 per cent year-on-year hike for the final quarter in general and administration expenses to $8.1 million, up from $6 million in the prior year, primarily due to transaction costs related to completed acquisitions and ongoing expenses, it said.

Envestnet completed its acquisition of Tamarac, a provider of portfolio management technology for RIAs, in May last year, with the aim of combining the firms’ technology, products and back office. It also acquired Denver, CO-based Prima Capital in 2012 to boost its research services for advisors.  

For the year 2012, net income was $1.4 million, compared to $7.6 million for 2011, while revenues from AuM/A increased 28 per cent to $127.2 million - up from $99.2 million in 2011. Total revenues (again including licensing and professional services fees) climbed 28 per cent to $157.3 million from $123.2 million in the prior year.