Revenues from assets under management/administration at Envestnet rose 29 per cent year-over-year to $36.3 million for the first quarter of 2013, while total revenues (including licensing and professional services fees) soared 43 per cent to $46.6 million.

Net income fell however, from $0.7 million in the first quarter of 2012 to $0.5 million (or $0.02 per diluted share) at the end of March 2013.  

Total operating expenses in the first quarter of 2013 increased 47 per cent to $46 million, from $31.4 million a year earlier, as cost of revenues also grew 46 per cent to $16.8 million during the year. This was due to the increase in revenue from AuM or AuA, and additional cost from acquired businesses, the New York-listed wealth management firm said.

Meanwhile, compensation and benefits shot up 61 per cent year-on-year to $17.2 million in the first quarter of 2013, due to higher personnel cost from completed acquisitions, as well as higher non-cash compensation expense, according to the firm’s latest earnings release.   

The firm reported that general and administration expenses rose 31 per cent during the year to $8.9 million in the first quarter of 2013. This was primarily due to $1.3 million in re-audit related professional fees and ongoing expense from the acquired companies, it said.

Last month, Envestnet entered into a definitive agreement to acquire all of the assets of Prudential Investments’ Wealth Management Solutions division, for a cash sum of $10 million, plus contingent consideration of up to $23 million to be paid over three years.

Envestnet also 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. Additionally, it acquired Denver, CO-based Prima Capital in 2012 to boost its research services for advisors.