Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-34835 | |
Entity Registrant Name | Envestnet, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1409613 | |
Entity Address, Address Line One | 1000 Chesterbrook Boulevard | |
Entity Address, Address Line Two | Suite 250 | |
Entity Address, City or Town | Berwyn | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19312 | |
City Area Code | 312 | |
Local Phone Number | 827-2800 | |
Title of 12(b) Security | Common Stock, par value $0.005 per share | |
Trading Symbol | ENV | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 55,187,306 | |
Entity Central Index Key | 0001337619 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 359,614 | $ 429,279 |
Fees receivable, net | 88,377 | 95,291 |
Prepaid expenses and other current assets | 53,488 | 42,706 |
Total current assets | 501,479 | 567,276 |
Property and equipment, net | 62,848 | 50,215 |
Internally developed software, net | 147,014 | 133,659 |
Intangible assets, net | 400,876 | 400,396 |
Goodwill | 925,003 | 925,154 |
Operating lease right-of-use assets, net | 88,011 | 90,714 |
Other non-current assets | 74,539 | 73,768 |
Total assets | 2,199,770 | 2,241,182 |
Current liabilities: | ||
Accrued expenses and other liabilities | 201,087 | 225,159 |
Accounts payable | 18,854 | 19,092 |
Operating lease liabilities | 10,439 | 10,999 |
Deferred revenue | 44,427 | 33,473 |
Total current liabilities | 274,807 | 288,723 |
Long-term debt | 850,097 | 848,862 |
Non-current operating lease liabilities | 103,332 | 105,920 |
Deferred tax liabilities, net | 2,108 | 21,021 |
Other non-current liabilities | 16,271 | 17,114 |
Total liabilities | 1,246,615 | 1,281,640 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.005, 50,000,000 shares authorized; no shares issued and outstanding as of March 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock, par value $0.005, 500,000,000 shares authorized; 69,432,152 and 68,879,152 shares issued as of March 31, 2022 and December 31, 2021, respectively; 55,175,096 and 54,793,088 shares outstanding as of March 31, 2022 and December 31, 2021, respectively | 347 | 344 |
Additional paid-in capital | 1,153,892 | 1,131,628 |
Accumulated deficit | (51,847) | (37,988) |
Treasury stock at cost, 14,257,056 and 14,086,064 shares as of March 31, 2022 and December 31, 2021, respectively | (147,566) | (134,996) |
Accumulated other comprehensive loss | (3,377) | (1,899) |
Total stockholders’ equity | 951,449 | 957,089 |
Non-controlling interest | 1,706 | 2,453 |
Total equity | 953,155 | 959,542 |
Total liabilities and equity | $ 2,199,770 | $ 2,241,182 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 69,432,152 | 68,879,152 |
Common stock, shares outstanding (in shares) | 55,175,096 | 54,793,088 |
Treasury stock (in shares) | 14,257,056 | 14,086,064 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 321,363 | $ 275,105 |
Operating expenses: | ||
Cost of revenues | 125,282 | 92,869 |
Compensation and benefits | 126,849 | 100,714 |
General and administration | 44,335 | 36,315 |
Depreciation and amortization | 31,618 | 28,392 |
Total operating expenses | 328,084 | 258,290 |
Income (loss) from operations | (6,721) | 16,815 |
Other expense, net | (5,967) | (7,468) |
Income (loss) before income tax provision (benefit) | (12,688) | 9,347 |
Income tax provision (benefit) | 2,020 | (5,588) |
Net income (loss) | (14,708) | 14,935 |
Add: Net loss attributable to non-controlling interest | 849 | 11 |
Net income (loss) attributable to Envestnet, Inc. | $ (13,859) | $ 14,946 |
Net income (loss) per share attributable to Envestnet, Inc.: | ||
Basic (in dollars per share) | $ (0.25) | $ 0.28 |
Diluted (in dollars per share) | $ (0.25) | $ 0.27 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 54,903,677 | 54,208,469 |
Diluted (in shares) | 54,903,677 | 59,917,648 |
Total recurring revenues | ||
Revenues: | ||
Total revenues | $ 317,451 | $ 269,204 |
Asset-based | ||
Revenues: | ||
Total revenues | 202,717 | 159,375 |
Operating expenses: | ||
Cost of revenues | 117,428 | 86,190 |
Subscription-based | ||
Revenues: | ||
Total revenues | 114,734 | 109,829 |
Operating expenses: | ||
Cost of revenues | 7,811 | 6,604 |
Professional services and other revenues | ||
Revenues: | ||
Total revenues | 3,912 | 5,901 |
Operating expenses: | ||
Cost of revenues | $ 43 | $ 75 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) attributable to Envestnet, Inc. | $ (13,859) | $ 14,946 |
Foreign currency translation losses, net of taxes | (1,478) | (624) |
Comprehensive income (loss) attributable to Envestnet, Inc. | $ (15,337) | $ 14,322 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Treasury Stock | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Non-controlling Interest |
Beginning balance (in shares) at Dec. 31, 2020 | 67,832,706 | (13,739,171) | ||||||||
Balance, at period start at Dec. 31, 2020 | $ 975,818 | $ (79,842) | $ 339 | $ (110,466) | $ 1,166,774 | $ (108,470) | $ (398) | $ (79,912) | $ 28,628 | $ (519) |
Increase (decrease) in shareholders' equity | ||||||||||
Exercise of stock options (in shares) | 27,043 | |||||||||
Exercise of stock options | 522 | $ 0 | 522 | |||||||
Issuance of common stock - vesting of restricted stock units (in shares) | 455,349 | |||||||||
Issuance of common stock - vesting of restricted stock units | 2 | $ 2 | ||||||||
Stock-based compensation expense | 14,013 | 14,013 | ||||||||
Shares withheld to satisfy tax withholdings (in shares) | (147,041) | |||||||||
Shares withheld to satisfy tax withholdings | (9,541) | $ (9,541) | ||||||||
Share repurchase (in shares) | (24,227) | |||||||||
Share repurchase | (1,672) | $ (1,672) | ||||||||
Foreign currency translation loss, net of taxes | (624) | (624) | ||||||||
Other | 118 | 118 | ||||||||
Net income (loss) | 14,935 | 14,946 | (11) | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 68,315,098 | (13,910,439) | ||||||||
Balance, at period end at Mar. 31, 2021 | $ 913,729 | $ 341 | $ (121,679) | 1,072,839 | (1,022) | (36,338) | (412) | |||
Beginning balance (in shares) at Dec. 31, 2021 | 68,879,152 | 68,879,152 | (14,086,064) | |||||||
Balance, at period start at Dec. 31, 2021 | $ 959,542 | $ 344 | $ (134,996) | 1,131,628 | (1,899) | (37,988) | 2,453 | |||
Increase (decrease) in shareholders' equity | ||||||||||
Exercise of stock options (in shares) | 38,681 | 38,681 | ||||||||
Exercise of stock options | $ 658 | 658 | ||||||||
Issuance of common stock - vesting of restricted stock units (in shares) | 514,319 | |||||||||
Issuance of common stock - vesting of restricted stock units | 3 | $ 3 | ||||||||
Stock-based compensation expense | 21,690 | 21,690 | ||||||||
Shares withheld to satisfy tax withholdings (in shares) | (170,992) | |||||||||
Shares withheld to satisfy tax withholdings | (12,570) | $ (12,570) | ||||||||
Foreign currency translation loss, net of taxes | (1,478) | (1,478) | ||||||||
Other | 18 | (84) | 102 | |||||||
Net income (loss) | $ (14,708) | (13,859) | (849) | |||||||
Ending balance (in shares) at Mar. 31, 2022 | 69,432,152 | 69,432,152 | (14,257,056) | |||||||
Balance, at period end at Mar. 31, 2022 | $ 953,155 | $ 347 | $ (147,566) | $ 1,153,892 | $ (3,377) | $ (51,847) | $ 1,706 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Cumulative Effect, Period of Adoption, Adjustment | |
Income tax provision (benefit) | $ 7,641 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ (14,708) | $ 14,935 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 31,618 | 28,392 |
Provision for doubtful accounts | (1,747) | 298 |
Deferred income taxes | (18,955) | (3,581) |
Non-cash compensation expense | 21,814 | 14,137 |
Non-cash interest expense | 2,599 | 2,015 |
Accretion on contingent consideration and purchase liability | 0 | 388 |
Fair market value adjustment to contingent consideration liability | 0 | (140) |
Loss allocations from equity method investments | 1,545 | 3,288 |
Other | (59) | 165 |
Changes in operating assets and liabilities: | ||
Fees receivable, net | 8,661 | 473 |
Prepaid expenses and other current assets | (8,377) | 1,756 |
Other non-current assets | (1,114) | 3,093 |
Accrued expenses and other liabilities | (27,320) | (28,668) |
Accounts payable | (432) | 6,444 |
Deferred revenue | 11,097 | 7,882 |
Other non-current liabilities | (1,361) | (1,068) |
Net cash provided by operating activities | 3,261 | 49,809 |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (3,896) | (7,062) |
Capitalization of internally developed software | (21,671) | (15,058) |
Acquisition of proprietary technology | (15,000) | (25,517) |
Investments in private companies | (3,000) | (2,538) |
Other | (2,500) | 0 |
Net cash used in investing activities | (46,067) | (50,175) |
FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 658 | 522 |
Taxes paid in lieu of shares issued for stock-based compensation | (12,570) | (9,541) |
Finance lease payments | (12,454) | 0 |
Revolving credit facility issuance costs | (1,869) | 0 |
Share repurchases | 0 | (1,672) |
Payments of contingent consideration | 0 | (1,000) |
Other | 3 | (479) |
Net cash used in financing activities | (26,232) | (12,170) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (627) | (52) |
DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (69,665) | (12,588) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 429,428 | 384,714 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (See Note 2) | 359,763 | 372,126 |
Supplemental disclosure of cash flow information - net cash paid during the period for income taxes | 716 | 1,879 |
Supplemental disclosure of cash flow information - cash paid during the period for interest | 2,254 | 2,200 |
Supplemental disclosure of non-cash operating, investing and financing activities: | ||
Fixed assets acquired through finance lease | 12,454 | 0 |
Purchase of fixed assets included in accounts payable and accrued expenses and other liabilities | 1,883 | 1,129 |
Internally developed software costs included in accrued expenses and other liabilities | 178 | 0 |
Membership interest liabilities included in other non-current liabilities | 124 | 124 |
Leasehold improvements funded by lease incentive | $ 0 | $ 127 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Envestnet, Inc. (“Envestnet”) through its subsidiaries (collectively, the “Company”) is transforming the way financial advice and insight are delivered. Its mission is to empower financial advisors and service providers with innovative technology, solutions and intelligence. Envestnet has been a leader in helping transform wealth management, working towards its goal of expanding a holistic financial wellness ecosystem so that our clients can deliver an intelligent financial life to their clients. Envestnet is organized around two primary, complementary business segments. Financial information about each business segment is contained in “Note 14—Segment Information” to the condensed consolidated financial statements. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 have not been audited by an independent registered public accounting firm. These unaudited condensed consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2021 and reflect all normal recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s financial position as of March 31, 2022 and the results of operations, equity, comprehensive income (loss) and cash flows for the periods presented herein. The unaudited condensed consolidated financial statements include the accounts of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. Accounts for the Envestnet Wealth Solutions segment that are denominated in a non-U.S. currency have been re-measured using the U.S. dollar as the functional currency. Certain accounts within the Envestnet Data & Analytics segment are recorded and measured in foreign currencies. The assets and liabilities for those subsidiaries with a functional currency other than the U.S. dollar are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates. Differences arising from these foreign currency translations are recorded in the unaudited condensed consolidated balance sheets as accumulated other comprehensive income (loss) within stockholders' equity. The Company is also subject to gains and losses from foreign currency denominated transactions and the remeasurement of foreign currency denominated balance sheet accounts, both of which are included in other expense, net in the condensed consolidated statements of operations. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the operating results to be expected for other interim periods or for the full fiscal year. The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. References to GAAP in these notes are to the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ™ , sometimes referred to as the codification or “ASC.” These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 25, 2022. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates. The following table reconciles cash, cash equivalents and restricted cash from the condensed consolidated balance sheets to amounts reported within the condensed consolidated statements of cash flows: March 31, March 31, 2022 2021 (in thousands) Cash and cash equivalents $ 359,614 $ 371,977 Restricted cash included in prepaid expenses and other current assets 149 — Restricted cash included in other non-current assets — 149 Total cash, cash equivalents and restricted cash $ 359,763 $ 372,126 Russia and Ukraine Conflict In February 2022, military conflict escalated between Russia and Ukraine which continues as of the date of this quarterly report. The uncertainty over the extent and duration of the ongoing conflict continues to cause disruptions to businesses and markets worldwide. The extent of the effect on the Company’s financial performance will continue to depend on future developments, including the extent and duration of the conflict, economic sanctions imposed, further governmental and private sector responses and the timing and extent normal economic conditions resume, all of which are uncertain and difficult to predict. Although the Company is unable to estimate the overall financial effect of the conflict at this time, as the conflict continues, it could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows. As of March 31, 2022, these condensed consolidated financial statements do not reflect any adjustments as a result of the conflict. Related Party Transactions The Company has a 4.4% membership interest in a private services company that it accounts for using the equity method of accounting and is considered to be a related party. Revenues from the private services company totaled $4.7 million and $3.8 million in the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022 and December 31, 2021, the Company recorded a net receivable of $2.9 million and $3.0 million, respectively, from the private services company. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements — In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805).” This update amends Topic 805 to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require that an entity (acquirer) recognize and measure contract assets and contract liabilities in accordance with ASC 606. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2022. Early adoption of the standard is permitted. The amendment is to be applied prospectively to business combinations occurring on or after the effective date of the amendment. The Company adopted this standard as of January 1, 2022. Adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: March 31, December 31, 2022 2021 (in thousands) Prepaid technology $ 22,227 $ 15,415 Non-income tax receivables 5,986 7,013 Advisor Summit prepayments and deposits 4,856 1,057 Escrow for acquisition 2,951 2,951 Prepaid insurance 2,584 2,234 Loan to equity method investee 2,560 — Other 12,324 14,036 Total prepaid expenses and other current assets $ 53,488 $ 42,706 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following: March 31, December 31, Estimated Useful Life 2022 2021 (in thousands) Cost: Computer equipment and software 3 years $ 73,142 $ 72,289 Leasehold improvements Shorter of the lease term or useful life of the asset 43,970 43,544 Leased data servers 3 years 13,044 590 Office furniture and fixtures 3-7 years 12,286 12,214 Office equipment and other 3-5 years 8,193 7,973 Building and building improvements 7-39 years 2,729 2,729 Land Not applicable 940 940 154,304 140,279 Less: accumulated depreciation and amortization (91,456) (90,064) Total property and equipment, net $ 62,848 $ 50,215 During the three months ended March 31, 2022, the Company entered into an arrangement with a third party cloud service provider for the use of dedicated servers to migrate its infrastructure to the cloud. As the terms of the arrangement convey a finance lease under FASB Topic 842 - Leases (“ASC 842”), the Company accounts for those dedicated servers as leased assets when the lease term commences. The Company accounts for each lease and any non-lease components associated with that lease as a single lease component for all asset classes. The leased dedicated servers are presented as a component of property and equipment, net in the condensed consolidated balance sheets as of March 31, 2022. To take advantage of the favorable savings programs offered by the cloud service provider, the Company prepaid the lease payments and therefore does not have a lease liability recorded for the leased assets. Gross property and equipment under finance leases as of March 31, 2022 was $13.0 million with accumulated depreciation of $1.1 million. Finance lease activity as of and for the year ended December 31, 2021 was not material. During the three months ended March 31, 2022 and 2021, the Company retired property and equipment that was no longer in service with historical costs of $4.0 million and $3.1 million, respectively. Retirements within each segment were immaterial. Gains and losses on asset retirements during the three months ended March 31, 2022 and 2021 were not material. Depreciation and amortization expense was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Depreciation and amortization expense $ 5,604 $ 5,643 |
Internally Developed Software
Internally Developed Software | 3 Months Ended |
Mar. 31, 2022 | |
Research and Development [Abstract] | |
Internally Developed Software | Internally Developed Software Internally developed software, net consisted of the following: March 31, December 31, Estimated Useful Life 2022 2021 (in thousands) Internally developed software 5 years $ 247,229 $ 225,380 Less: accumulated amortization (100,215) (91,721) Internally developed software, net $ 147,014 $ 133,659 Amortization expense was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Amortization expense $ 8,494 $ 6,271 |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible Assets, Net Procurement of Technology Solutions On June 21, 2021, the Company entered into a purchase agreement with a privately held company to acquire the technology solutions being developed by this privately held company for a purchase price of $18.0 million, including an advance of $3.0 million. The Company closed the transaction and paid the remaining $15.0 million in February 2022. This proprietary technology asset has been integrated into the Envestnet Data & Analytics segment and is being amortized over an estimated useful life of five years. In addition, the agreement includes an earn-out payment of $10.0 million based upon the achievement of certain target metrics within five years after the date of the Company’s launch of the technology solutions. The parties have agreed to renegotiate the terms of the earn-out payment. Intangible assets, net consisted of the following: March 31, 2022 December 31, 2021 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount (in thousands) Customer lists $ 590,080 $ (252,313) $ 337,767 $ 590,080 $ (241,189) $ 348,891 Proprietary technologies 103,324 (48,168) 55,156 85,324 (43,004) 42,320 Trade names 33,700 (25,747) 7,953 33,700 (24,515) 9,185 Total intangible assets $ 727,104 $ (326,228) $ 400,876 $ 709,104 $ (308,708) $ 400,396 There were no material retirements of intangible assets during the three months ended March 31, 2022 and 2021. Amortization expense was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Amortization expense $ 17,520 $ 16,478 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following: March 31, December 31, 2022 2021 (in thousands) Accrued investment manager fees $ 100,566 $ 95,858 Accrued compensation and related taxes 51,898 97,523 Income tax payables 19,147 — Accrued professional services 5,620 7,746 Accrued technology 7,483 8,951 Non-income tax payables 4,154 4,907 Other accrued expenses 12,219 10,174 Total accrued expenses and other liabilities $ 201,087 $ 225,159 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding debt obligations as of March 31, 2022 and December 31, 2021 were as follows: March 31, December 31, 2022 2021 (in thousands) Revolving credit facility balance $ — $ — Convertible Notes due 2023 $ 345,000 $ 345,000 Unamortized issuance costs on Convertible Notes due 2023 (2,463) (2,979) Convertible Notes due 2023 carrying value $ 342,537 $ 342,021 Convertible Notes due 2025 $ 517,500 $ 517,500 Unamortized issuance costs on Convertible Notes due 2025 (9,940) (10,659) Convertible Notes due 2025 carrying value $ 507,560 $ 506,841 Third Credit Agreement On February 4, 2022, the Company entered into a Third Amended and Restated Credit Agreement (the “Third Credit Agreement”) with a group of banks (the “Banks”), for which Bank of Montreal is acting as administrative agent. The Third Credit Agreement amends and restates, in its entirety, the Company's prior credit agreement. In connection with entering into the Third Credit Agreement, the Company capitalized an additional $1.9 million of deferred financing charges to Other non-current assets on the condensed consolidated balance sheets and wrote off $0.6 million of pre-existing finance charges to Other expense, net on the condensed consolidated statements of operations. Pursuant to the Third Credit Agreement, the Banks have agreed to provide the Company with a revolving credit facility of $500.0 million (the “Revolving Credit Facility”). The Third Credit Agreement also includes a $20.0 million sub-facility for the issuances of letters of credit. As of March 31, 2022 and December 31, 2021, there were no amounts outstanding under the Revolving Credit Facility. Obligations under the Third Credit Agreement are guaranteed by substantially all of Envestnet’s U.S. subsidiaries and are secured by a first-priority lien on substantially all of the personal property (other than intellectual property) of Envestnet and the guarantors, subject to certain exclusions. Obligations under the Third Credit Agreement are secured by substantially all of the Company’s domestic assets and the Company’s pledge of 66% of the voting equity and 100% of the non-voting equity of certain of its first-tier foreign subsidiaries. Proceeds under the Third Credit Agreement may be used to finance capital expenditures and permitted acquisitions and for working capital and general corporate purposes. In the event the Company has borrowings under the Third Credit Agreement, at the Company's option, it will pay interest on these borrowings at a rate equal to either (i) a base rate plus an applicable margin ranging from 0.25% to 1.75% per annum or (ii) an adjusted Term Secured Overnight Financing Rate (“SOFR”) plus an applicable margin ranging from 1.25% to 2.75% per annum, in each case based upon the total net leverage ratio, as calculated pursuant to the Credit Agreement. Any borrowings under the Third Credit Agreement will mature on February 4, 2027. There is also a commitment fee at a rate ranging from 0.25% to 0.30% per annum based upon the total net leverage ratio. As of March 31, 2022, debt issuance costs related to the Third Credit Agreement are presented in prepaid expenses and other non-current assets in the condensed consolidated balance sheets which have outstanding amounts of $0.7 million and $2.7 million, respectively. The Third Credit Agreement contains customary conditions, representations and warranties, affirmative and negative covenants, mandatory prepayment provisions and events of default. The covenants include certain financial covenants requiring the Company to maintain compliance with a maximum total leverage ratio, a minimum interest coverage ratio and a minimum liquidity covenant. The Company was in compliance with these financial covenants as of March 31, 2022. As of March 31, 2022, the Company had all $500.0 million available to borrow under the revolving Credit Facility, subject to covenant compliance. Convertible Notes due 2023 In May 2018, the Company issued $345.0 million of Convertible Notes due 2023 that mature on June 1, 2023. The Convertible Notes due 2023 bear interest at a rate of 1.75% per annum payable semiannually in arrears on June 1 and December 1 of each year. The Convertible Notes due 2023 are general unsecured obligations, subordinated in right of payment to the Company's obligations under its Credit Agreement. The effective interest rate of the Convertible Notes due 2023 was approximately 2.4% for the three months ended March 31, 2022 and 2021. The effective interest rate of the Convertible Notes due 2023 is equal to the stated interest rate plus the amortization of the debt issuance costs. Convertible Notes due 2025 In August 2020, the Company issued $517.5 million of Convertible Notes due 2025 that mature on August 15, 2025. The Convertible Notes due 2025 bear interest at a rate of 0.75% per annum payable semiannually in arrears on February 15 and August 15 of each year. The Convertible Notes due 2025 are general unsecured obligations, subordinated in right of payment to the Company's obligations under its Credit Agreement. The effective interest rate of the Convertible Notes due 2025 was approximately 1.3% for the three months ended March 31, 2022 and 2021. The effective interest rate of the Convertible Notes due 2025 was equal to the stated interest rate plus the amortization of the debt issuance costs. Interest Expense Interest expense was comprised of the following and is included in other expense, net in the condensed consolidated statements of operations: Three Months Ended March 31, 2022 2021 (in thousands) Coupon interest $ 2,480 $ 2,479 Amortization of issuance costs 2,060 1,423 Undrawn and other fees 313 313 Total interest expense $ 4,853 $ 4,215 For each of the three months ended March 31, 2022 and 2021, total interest expense related to the Convertible Notes due 2023 and the Convertible Notes due 2025 (collectively, the "Convertible Notes") was $3.7 million with coupon interest expense of $2.5 million and amortization of debt discount and issuance costs of $1.2 million. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021, based on the three-tier fair value hierarchy, as defined in ASC 820, “Fair Value Measurements and Disclosures”: March 31, 2022 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 2,946 $ 2,946 $ — $ — Assets to fund deferred compensation liability 11,201 — — 11,201 Total assets $ 14,147 $ 2,946 $ — $ 11,201 Liabilities: Contingent consideration $ 750 $ — $ — $ 750 Deferred compensation liability 9,515 9,515 — — Total liabilities $ 10,265 $ 9,515 $ — $ 750 December 31, 2021 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 2,684 $ 2,684 $ — $ — Assets to fund deferred compensation liability 11,140 — — 11,140 Total assets $ 13,824 $ 2,684 $ — $ 11,140 Liabilities: Contingent consideration $ 743 $ — $ — $ 743 Deferred compensation liability 10,418 10,418 — — Total liabilities $ 11,161 $ 10,418 $ — $ 743 The Company assesses the categorization of assets and liabilities by level at each measurement date, and transfers between levels are recognized on the actual date of the event or when changes in circumstances caused the transfer, in accordance with the Company’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. There were no transfers between Levels I, II and III during the three months ended March 31, 2022. Fair Value of Contingent Consideration Liabilities The fair value of the contingent consideration liabilities related to certain of the Company's acquisitions were estimated using a discounted cash flow method with significant inputs that are not observable in the market and thus represents a Level III fair value measurement. The significant inputs in the Company's Level III fair value measurement not supported by market activity included its assessments of expected future cash flows related to these acquisitions and their ability to meet the target performance objectives during the subsequent periods from the date of acquisition, which management believes are appropriately discounted considering the uncertainties associated with these obligations, and are calculated in accordance with the terms of their respective agreements. The Company will continue to reassess the fair values of the contingent consideration liabilities at each reporting date until settlement. Changes to these estimated fair values will be recognized in the Company's earnings and included in general and administration expenses in the condensed consolidated statements of operations. The Company had contingent consideration liabilities of $0.8 million and $0.7 million as of March 31, 2022 and December 31, 2021, respectively, which are recorded as a component of Accrued expenses and other liabilities on the condensed consolidated balance sheets. Fair Value of Deferred Compensation Liability The table below presents a reconciliation of the assets used to fund the Company's deferred compensation liability, which is measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2021 to March 31, 2022: Fair Value of Assets to Fund Deferred Compensation Liability (in thousands) Balance at December 31, 2021 $ 11,140 Contributions 649 Fair value adjustments (588) Balance at March 31, 2022 $ 11,201 The fair market value of the assets used to fund the Company 's deferred compensation liability is based upon the cash surrender value of the Company 's life insurance premiums. The value of the assets used to fund the Company's deferred compensation liability, which are included in other non-current assets in the condensed consolidated balance sheets, increased due to funding of the plan despite net losses on the underlying investment vehicles. These losses are recognized in the Company's earnings and included in general and administration expenses in the condensed consolidated statements of operations. Fair Value of Debt Agreements The Company considered its Convertible Notes to be Level II liabilities at March 31, 2022 and used a market approach to calculate their respective fair values. The estimated fair value for each convertible note was determined based on estimated or actual bids and offers in an over-the-counter market on March 31, 2022 (See “Note 8—Debt”). As of March 31, 2022, the carrying value of the Convertible Notes due 2023 equaled $342.5 million and represented the aggregate principal amount outstanding less the unamortized debt issuance costs. As of December 31, 2021, the carrying value of the Convertible Notes due 2023 equaled $342.0 million and represented the aggregate principal amount outstanding less the unamortized discount and debt issuance costs. As of March 31, 2022 and December 31, 2021, the estimated fair value of the Convertible Notes due 2023 was $418.3 million and $439.9 million, respectively. As of March 31, 2022, the carrying value of the Convertible Notes due 2025 equaled $507.6 million and represented the aggregate principal amount outstanding less the unamortized debt issuance costs. As of December 31, 2021, the carrying value of the Convertible Notes due 2025 equaled $506.8 million and represented the aggregate principal amount outstanding less the unamortized discount and debt issuance costs. As of March 31, 2022 and December 31, 2021, the estimated fair value of the Convertible Notes due 2025 was $505.9 million and $526.1 million, respectively. Fair Value of Other Financial Assets and Liabilities The Company considered the recorded value of its other financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable and accounts payable, to approximate the fair value of the respective assets and liabilities at March 31, 2022 and December 31, 2021 based upon the short-term nature of these assets and liabilities. |
Revenues and Cost of Revenues
Revenues and Cost of Revenues | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues and Cost of Revenues | Revenues and Cost of Revenues Disaggregation of Revenue The following table presents the Company’s revenues disaggregated by major source: Three Months Ended March 31, 2022 2021 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenues: Asset-based $ 202,717 $ — $ 202,717 $ 159,375 $ — $ 159,375 Subscription-based 68,537 46,197 114,734 64,012 45,817 109,829 Total recurring revenues 271,254 46,197 317,451 223,387 45,817 269,204 Professional services and other revenues 2,314 1,598 3,912 3,023 2,878 5,901 Total revenues $ 273,568 $ 47,795 $ 321,363 $ 226,410 $ 48,695 $ 275,105 The following table presents the Company’s revenues disaggregated by geography, based on the billing address of the customer: Three Months Ended March 31, 2022 2021 (in thousands) United States $ 316,729 $ 270,072 International 4,634 5,033 Total revenues $ 321,363 $ 275,105 Remaining Performance Obligations The following table includes estimated revenue expected to be recognized in the future as of March 31, 2022: Years ending December 31, (in thousands) Remainder of 2022 $ 201,257 2023 178,329 2024 102,504 2025 57,142 2026 29,564 Thereafter 6,878 Total $ 575,674 The remaining performance obligations disclosed above are not indicative of revenue for future periods. Remaining performance obligations represent the transaction price allocated to unsatisfied or partially satisfied performance obligations. The disclosure includes estimates of variable consideration. The Company applies the practical expedients and exemption not to disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less; (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed; and (iii) contracts for which the variable consideration is allocated entirely to a wholly unsatisfied performance obligations or to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation. Contract Balances Total deferred revenue as of March 31, 2022 increased by $11.1 million from December 31, 2021, primarily the result of revenue growth, timing of cash receipts and revenue recognition. The majority of the Company's deferred revenue will be recognized over the course of the next twelve months. The amount of revenue recognized that was included in the opening deferred revenue balance was $15.9 million and $16.9 million for the three months ended March 31, 2022 and 2021, respectively. The majority of this revenue consists of subscription-based services and professional services arrangements. The amount of revenue recognized from performance obligations satisfied in prior periods was not material. Deferred Sales Incentive Compensation Deferred sales incentive compensation was $11.6 million and $11.8 million as of March 31, 2022 and December 31, 2021, respectively. Amortization expense for the deferred sales incentive compensation was $1.1 million for the three months ended March 31, 2022 and 2021. Deferred sales incentive compensation is included in other non-current assets on the condensed consolidated balance sheets and amortization expense is included in compensation and benefits expenses on the condensed consolidated statements of operations. No significant impairment loss for capitalized costs was recorded during the periods. The Company has applied the practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period would have been one year or less. These costs are included in compensation and benefits expenses in the condensed consolidated statements of operations. Cost of Revenues The following table summarizes cost of revenues by revenue category: Three Months Ended March 31, 2022 2021 (in thousands) Asset-based $ 117,428 $ 86,190 Subscription-based 7,811 6,604 Professional services and other 43 75 Total cost of revenues $ 125,282 $ 92,869 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has stock options, restricted stock units (“RSUs”) and performance stock units (“PSUs”) outstanding under the 2010 Long-Term Incentive Plan (the “2010 Plan”) and the Envestnet, Inc. 2019 Acquisition Equity Incentive Plan (the “2019 Equity Plan”). As of March 31, 2022, the maximum number of common shares available for future issuance under the Company’s plans is 2,423,500. Stock-based compensation expense under the Company’s plans was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Stock-based compensation expense $ 21,690 $ 14,013 Tax effect on stock-based compensation expense (5,531) (3,573) Net effect on income $ 16,159 $ 10,440 The tax effect on stock-based compensation expense above was calculated using a blended statutory rate of 25.5% for each of the three months ended March 31, 2022 and 2021. Stock Options The Company did not grant any stock options in the three months ended March 31, 2021 or 2022. The following table summarizes option activity under the Company’s plans: Weighted-Average Weighted- Remaining Average Contractual Life Aggregate Options Exercise Price (Years) Intrinsic Value (in thousands) Outstanding as of December 31, 2021 365,241 $ 38.61 3.3 $ 14,878 Exercised (38,681) 17.02 Forfeited (260) 74.83 Outstanding as of March 31, 2022 326,300 41.14 3.4 10,869 Options exercisable 321,779 $ 40.66 3.3 $ 10,869 Exercise prices of stock options outstanding as of March 31, 2022 range from $15.34 to $74.83. At March 31, 2022, there was an immaterial amount of unrecognized stock-based compensation expense related to unvested stock options, which the Company expects to recognize over a weighted-average period of 1.3 years. Restricted Stock Units The Company has granted restricted stock units and performance-based stock units to employees that are unvested. Performance-based stock units vest upon the achievement of certain pre-established business and financial metrics as well as a subsequent service condition. The business and financial metrics governing the vesting of these performance-based stock units provide thresholds that dictate the number of shares to vest upon each evaluation date, which range from 0% to 150%. If these metrics are achieved, as defined in the individual grant terms, these shares would cliff vest three years from the grant date. The following is a summary of the activity for unvested restricted stock units and performance stock units granted under the Company’s plans: RSUs PSUs Number of Weighted- Number of Weighted- Outstanding as of December 31, 2021 1,507,424 $ 71.50 359,184 $ 73.64 Granted 1,266,891 74.76 75,025 82.96 Vested (458,869) 69.91 (55,450) 67.46 Forfeited (51,484) 72.04 (1,359) 75.67 Outstanding as of March 31, 2022 2,263,962 73.63 377,400 76.39 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table includes the Company’s income (loss) before income tax provision (benefit), income tax provision (benefit) and effective tax rate: Three Months Ended March 31, 2022 2021 (in thousands, except for effective tax rate) Income (loss) before income tax provision (benefit) $ (12,688) $ 9,347 Income tax provision (benefit) 2,020 (5,588) Effective tax rate (15.9) % (59.8) % For the three months ended March 31, 2022, the Company's quarterly provision for income taxes is calculated by applying a projected annual effective tax rate ("ETR"), calculated separately for the US and each foreign entity, to ordinary pre-tax book income. For the three months ended March 31, 2022, the Company’s effective tax rate differed from the statutory rate primarily due to the increase in the valuation allowance the Company has placed on a portion of its U.S. deferred tax assets which includes the impact of IRC Section 174, permanent book-tax differences, the impact of state and local taxes offset by federal and state research and development ("R&D") credits and the windfall from stock-based compensation. For the three months ended March 31, 2021, the Company's effective tax rate differed from the statutory rate primarily due to the increase in the valuation allowance the Company has placed on a portion of its U.S. deferred tax assets, permanent book-tax differences and the impact of state and local taxes offset by federal and state R&D credits. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per common share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted net income (loss) per share, the basic weighted average number of shares is increased by the dilutive effect of stock options, common warrants, restricted stock awards and restricted stock units and convertible notes, if dilutive, using either the treasury method or if-converted method as appropriate. The following table provides the numerators and denominators used in computing basic and diluted net income (loss) per share attributable to Envestnet, Inc.: Three Months Ended March 31, 2022 2021 (in thousands, except share and per share data) Net income (loss) attributable to Envestnet, Inc. ( a ) $ (13,859) $ 14,946 Interest on dilutive Convertible Notes due 2025, net of tax — 1,252 Net income (loss) attributable to Envestnet, Inc - Diluted ( b ) $ (13,859) $ 16,198 Weighted-average common shares outstanding: Basic ( c ) 54,903,677 54,208,469 Effect of dilutive shares: Options to purchase common stock — 222,387 Unvested restricted stock units — 562,606 Convertible Notes — 4,848,044 Warrants — 76,142 Diluted ( d ) 54,903,677 59,917,648 Net income (loss) per share attributable to Envestnet, Inc common stock: Basic ( a/c ) $ (0.25) $ 0.28 Diluted ( b/d ) $ (0.25) $ 0.27 Securities that were anti-dilutive and therefore excluded from the computation of diluted net income (loss) per share were as follows: Three Months Ended March 31, 2022 2021 (in thousands) Options to purchase common stock 326,300 — Unvested RSUs and PSUs 2,641,362 — Warrants 470,000 — Convertible Notes 9,898,549 5,050,505 Total anti-dilutive securities 13,336,211 5,050,505 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Business segments are generally organized around the Company's business services. The Company's business segments are: • Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions to enable them to deliver an intelligent financial life to their clients. • Envestnet Data & Analytics – a leading data aggregation and data intelligence platform powering dynamic, cloud-based innovation for digital financial services. The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes. Nonsegment operating expenses may include salary and benefits for certain corporate officers, certain types of professional service expenses and insurance, acquisition related transaction costs, certain restructuring charges and other non-recurring and/or non-operationally related expenses. Intersegment revenues were not material for the three months ended March 31, 2022 and 2021. See “Note 10—Revenues and Cost of Revenues” for detail of revenues by segment. The following table presents a reconciliation from income (loss) from operations by segment to consolidated net income (loss) attributable to Envestnet, Inc.: Three Months Ended March 31, 2022 2021 (in thousands) Envestnet Wealth Solutions $ 25,269 $ 34,197 Envestnet Data & Analytics (5,587) 1,289 Nonsegment operating expenses (26,403) (18,671) Income (loss) from operations (6,721) 16,815 Other expense, net (5,967) (7,468) Consolidated income (loss) before income tax benefit (12,688) 9,347 Income tax provision (benefit) 2,020 (5,588) Consolidated net income (loss) (14,708) 14,935 Add: Net loss attributable to non-controlling interest 849 11 Consolidated net income (loss) attributable to Envestnet, Inc. $ (13,859) $ 14,946 A summary of consolidated total assets follows: March 31, December 31, 2022 2021 (in thousands) Envestnet Wealth Solutions $ 1,658,134 $ 1,720,779 Envestnet Data & Analytics 541,636 520,403 Consolidated total assets $ 2,199,770 $ 2,241,182 |
Geographical Information
Geographical Information | 3 Months Ended |
Mar. 31, 2022 | |
Segments, Geographical Areas [Abstract] | |
Geographical Information | Geographical Information The following table sets forth certain long-lived assets including property and equipment, net and internally developed software, net by geographic area: March 31, December 31, 2022 2021 (in thousands) United States $ 206,961 $ 180,680 India 2,681 2,923 Other 220 271 Total long-lived assets, net $ 209,862 $ 183,874 See “Note 10—Revenues and Cost of Revenues” for detail of revenues by geographic area. |
Commitments
Commitments | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Purchase Obligations and Indemnifications The Company includes various types of indemnification and guarantee clauses in certain arrangements. These indemnifications and guarantees may include, but are not limited to, infringement claims related to intellectual property, direct or consequential damages and guarantees to certain service providers and service level requirements with certain customers. The type and amount of any potential indemnification or guarantee varies substantially based on the nature of each arrangement. The Company has experienced no previous claims and cannot determine the maximum amount of potential future payments, if any, related to such indemnification and guarantee provisions. The Company believes that it is unlikely it will have to make material payments under these arrangements and therefore has not recorded a contingent liability associated with these arrangements in the condensed consolidated balance sheets. The Company enters into unconditional purchase obligations arrangements for certain of its services that it receives in the normal course of business. Legal Proceedings The Company and its subsidiary, Yodlee, Inc. (“Yodlee”), have been named as defendants in a lawsuit filed on July 17, 2019, by FinancialApps, LLC (“FinancialApps”) in the United States District Court for the District of Delaware. The case caption is FinancialApps, LLC v. Envestnet Inc., et al., No. 19-cv-1337 (D. Del.). FinancialApps alleges that, after entering into a 2017 services agreement with Yodlee, Envestnet and Yodlee breached the agreement and misappropriated proprietary information to develop competing credit risk assessment software. The complaint includes claims for, among other things, misappropriation of trade secrets, fraud, tortious interference with prospective business opportunities, unfair competition, copyright infringement and breach of contract. FinancialApps is seeking significant monetary damages and various equitable and injunctive relief. On September 17, 2019, the Company and Yodlee filed a motion to dismiss certain of the claims in the complaint filed by FinancialApps, including the copyright infringement, unfair competition and fraud claims. On August 25, 2020, the District Court granted in part and denied in part the Company and Yodlee’s motion. Specifically, the Company and Yodlee prevailed on FinancialApps’ counts alleging copyright infringement and violations of the Illinois Deceptive Trade Practices Act. And while the Court was receptive to Envestnet and Yodlee’s argument that several of FinancialApps’ other counts are based on allegations that amount to copyright infringement—and therefore should fail due to copyright preemption—the Court found that FinancialApps had alleged enough conduct distinct from copyright infringement to survive dismissal at this early stage. On October 30, 2019, the Company and Yodlee filed counterclaims against FinancialApps. Yodlee alleges that FinancialApps fraudulently induced it to enter into contracts with FinancialApps, then breached those contracts. FinancialApps has filed a motion to dismiss Yodlee’s counterclaims. On September 15, 2020, the District Court denied FinancialApps’ motion on all counts except for the breach-of-contract claim which was dismissed on a pleading technicality without prejudice. On that count, the Court granted Yodlee leave to amend its counterclaim, cure the technical deficiency, and reassert its claim. Yodlee and Envestnet filed amended counterclaims on September 30, 2020. The amended counterclaims (1) cure that technical deficiency and reassert Yodlee’s contract counterclaim; and (2) broaden the defamation counterclaims arising out of various defamatory statements FinancialApps disseminated in the trade press after filing the lawsuit. On January 14, 2021, the Court ordered that (i) FinancialApps’s claims against Yodlee—as well as Yodlee’s counterclaims against FinancialApps—must be tried before the judge instead of a jury pursuant to a jury waiver provision in the parties’ agreement; and (ii) FinancialApps’s claims against Envestnet (and Envestnet’s counterclaim) must be heard by a jury. The Court has scheduled the Envestnet jury trial to take place before the Yodlee bench trial. Fact discovery closed on April 23, 2021, other than a few outstanding matters, and expert discovery is underway. The Company believes FinancialApps’s allegations are without merit and will continue to defend the claims against it and litigate the counterclaims vigorously. The Company and Yodlee were also named as defendants in a putative class action lawsuit filed on August 25, 2020, by Plaintiff Deborah Wesch in the United States District Court for the Northern District of California. On October 21, 2020, an amended class action complaint was filed by Plaintiff Wesch and nine additional named plaintiffs. The case caption is Deborah Wesch, et al., v. Yodlee, Inc., et al., Case No. 3:20-cv-05991-SK. Plaintiffs allege that Yodlee unlawfully collected their financial transaction data when plaintiffs linked their bank accounts to a mobile application that uses Yodlee’s API, and plaintiffs further allege that Yodlee unlawfully sold the transaction data to third parties. The complaint alleges violations of certain California statutes and common law, including the Unfair Competition Law, and federal statutes, including the Stored Communications Act. Plaintiffs are seeking monetary damages and equitable and injunctive relief on behalf of themselves and a putative nationwide class and California subclass of persons who provided their log-in credentials to a Yodlee-powered app in an allegedly similar manner from 2014 to the present. The Company believes that it is not properly named as a defendant in the lawsuit and it further believes, along with Yodlee, that plaintiffs’ claims are without merit. On November 4, 2020, the Company and Yodlee filed separate motions to dismiss all of the claims in the complaint. On February 16, 2021, the district court granted in part and denied in part Yodlee’s motion to dismiss the amended complaint and granted the plaintiffs leave to further amend. The Court reserved ruling on the Company’s motion to dismiss and granted limited jurisdictional discovery to the plaintiffs. On March 15, 2021, Plaintiffs filed a second amended class action complaint re-alleging, among others, the claims the district court had dismissed. The second amended complaint did not allege any claims against the Company or Yodlee that were not previously alleged in first amended complaint. On May 5, 2021, the Company filed a motion to dismiss all claims asserted against it in the second amended complaint, and Yodlee filed a motion to dismiss most claims asserted against it in the second amended complaint. On July 19, 2021, the Court granted in part Yodlee’s motion, resulting in the dismissal of all federal law claims and two of the state-law claims. On August 5, 2021, the Court granted the Company's motion to dismiss, and dismissed the Company from the lawsuit. Discovery continues on the remaining state law claims against Yodlee. On October 8, 2021, Yodlee filed a motion for summary judgment, and is awaiting a schedule for the completion of briefing on this motion. Yodlee will continue to vigorously defend the claims against it. In addition, the Company is involved in legal proceedings arising in the ordinary course of its business. Legal fees and other costs associated with such actions are expensed as incurred. The Company will record a provision for these claims when it is both probable that a liability has been incurred and the amount of the loss, or a range of the potential loss, can be reasonably estimated. These provisions are reviewed regularly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information or events pertaining to a particular case. For litigation matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but if the matter is material, it is subject to disclosures. The Company believes that liabilities associated with any claims, while possible, are not probable, and therefore has not recorded any accrual for any claims as of March 31, 2022. Further, while any possible range of loss cannot be reasonably estimated at this time, the Company does not believe that the outcome of any of these proceedings, individually or in the aggregate, would, if determined adversely to it, have a material adverse effect on its financial condition or business, although an adverse resolution of legal proceedings could have a material adverse effect on the Company's results of operations or cash flow in a particular quarter or year. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Procurement of Technology Solutions On April 1, 2022, the Company entered into a purchase agreement with a privately held company to acquire the technology solutions being developed by this privately held company for a purchase price of $9.0 million, including an advance of $4.0 million. Office Closures In April 2022, in response to changing needs and an increase in employees working remotely, the Company decided to close three offices in the United States. The Company is currently exploring alternative uses for these properties, including sublease options. As a result, the Company is currently unable to provide a reasonable estimate of the amount of costs it may write off in connection with these closures. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements — In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805).” This update amends Topic 805 to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require that an entity (acquirer) recognize and measure contract assets and contract liabilities in accordance with ASC 606. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2022. Early adoption of the standard is permitted. The amendment is to be applied prospectively to business combinations occurring on or after the effective date of the amendment. The Company adopted this standard as of January 1, 2022. Adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table reconciles cash, cash equivalents and restricted cash from the condensed consolidated balance sheets to amounts reported within the condensed consolidated statements of cash flows: March 31, March 31, 2022 2021 (in thousands) Cash and cash equivalents $ 359,614 $ 371,977 Restricted cash included in prepaid expenses and other current assets 149 — Restricted cash included in other non-current assets — 149 Total cash, cash equivalents and restricted cash $ 359,763 $ 372,126 |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table reconciles cash, cash equivalents and restricted cash from the condensed consolidated balance sheets to amounts reported within the condensed consolidated statements of cash flows: March 31, March 31, 2022 2021 (in thousands) Cash and cash equivalents $ 359,614 $ 371,977 Restricted cash included in prepaid expenses and other current assets 149 — Restricted cash included in other non-current assets — 149 Total cash, cash equivalents and restricted cash $ 359,763 $ 372,126 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: March 31, December 31, 2022 2021 (in thousands) Prepaid technology $ 22,227 $ 15,415 Non-income tax receivables 5,986 7,013 Advisor Summit prepayments and deposits 4,856 1,057 Escrow for acquisition 2,951 2,951 Prepaid insurance 2,584 2,234 Loan to equity method investee 2,560 — Other 12,324 14,036 Total prepaid expenses and other current assets $ 53,488 $ 42,706 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of property and equipment, net | Property and equipment, net consisted of the following: March 31, December 31, Estimated Useful Life 2022 2021 (in thousands) Cost: Computer equipment and software 3 years $ 73,142 $ 72,289 Leasehold improvements Shorter of the lease term or useful life of the asset 43,970 43,544 Leased data servers 3 years 13,044 590 Office furniture and fixtures 3-7 years 12,286 12,214 Office equipment and other 3-5 years 8,193 7,973 Building and building improvements 7-39 years 2,729 2,729 Land Not applicable 940 940 154,304 140,279 Less: accumulated depreciation and amortization (91,456) (90,064) Total property and equipment, net $ 62,848 $ 50,215 Depreciation and amortization expense was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Depreciation and amortization expense $ 5,604 $ 5,643 |
Internally Developed Software (
Internally Developed Software (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Research and Development [Abstract] | |
Schedule of Internally Developed Software, Net | Internally developed software, net consisted of the following: March 31, December 31, Estimated Useful Life 2022 2021 (in thousands) Internally developed software 5 years $ 247,229 $ 225,380 Less: accumulated amortization (100,215) (91,721) Internally developed software, net $ 147,014 $ 133,659 |
Schedule of Amortization Expense | Amortization expense was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Amortization expense $ 8,494 $ 6,271 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following: March 31, 2022 December 31, 2021 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount (in thousands) Customer lists $ 590,080 $ (252,313) $ 337,767 $ 590,080 $ (241,189) $ 348,891 Proprietary technologies 103,324 (48,168) 55,156 85,324 (43,004) 42,320 Trade names 33,700 (25,747) 7,953 33,700 (24,515) 9,185 Total intangible assets $ 727,104 $ (326,228) $ 400,876 $ 709,104 $ (308,708) $ 400,396 |
Schedule of Amortization Expense | Amortization expense was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Amortization expense $ 17,520 $ 16,478 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following: March 31, December 31, 2022 2021 (in thousands) Accrued investment manager fees $ 100,566 $ 95,858 Accrued compensation and related taxes 51,898 97,523 Income tax payables 19,147 — Accrued professional services 5,620 7,746 Accrued technology 7,483 8,951 Non-income tax payables 4,154 4,907 Other accrued expenses 12,219 10,174 Total accrued expenses and other liabilities $ 201,087 $ 225,159 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt Obligations | The Company’s outstanding debt obligations as of March 31, 2022 and December 31, 2021 were as follows: March 31, December 31, 2022 2021 (in thousands) Revolving credit facility balance $ — $ — Convertible Notes due 2023 $ 345,000 $ 345,000 Unamortized issuance costs on Convertible Notes due 2023 (2,463) (2,979) Convertible Notes due 2023 carrying value $ 342,537 $ 342,021 Convertible Notes due 2025 $ 517,500 $ 517,500 Unamortized issuance costs on Convertible Notes due 2025 (9,940) (10,659) Convertible Notes due 2025 carrying value $ 507,560 $ 506,841 |
Schedule of Interest Expense | Interest expense was comprised of the following and is included in other expense, net in the condensed consolidated statements of operations: Three Months Ended March 31, 2022 2021 (in thousands) Coupon interest $ 2,480 $ 2,479 Amortization of issuance costs 2,060 1,423 Undrawn and other fees 313 313 Total interest expense $ 4,853 $ 4,215 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021, based on the three-tier fair value hierarchy, as defined in ASC 820, “Fair Value Measurements and Disclosures”: March 31, 2022 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 2,946 $ 2,946 $ — $ — Assets to fund deferred compensation liability 11,201 — — 11,201 Total assets $ 14,147 $ 2,946 $ — $ 11,201 Liabilities: Contingent consideration $ 750 $ — $ — $ 750 Deferred compensation liability 9,515 9,515 — — Total liabilities $ 10,265 $ 9,515 $ — $ 750 December 31, 2021 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 2,684 $ 2,684 $ — $ — Assets to fund deferred compensation liability 11,140 — — 11,140 Total assets $ 13,824 $ 2,684 $ — $ 11,140 Liabilities: Contingent consideration $ 743 $ — $ — $ 743 Deferred compensation liability 10,418 10,418 — — Total liabilities $ 11,161 $ 10,418 $ — $ 743 |
Schedule of Reconciliation of Assets | The table below presents a reconciliation of the assets used to fund the Company's deferred compensation liability, which is measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2021 to March 31, 2022: Fair Value of Assets to Fund Deferred Compensation Liability (in thousands) Balance at December 31, 2021 $ 11,140 Contributions 649 Fair value adjustments (588) Balance at March 31, 2022 $ 11,201 |
Revenue and Cost of Revenues (T
Revenue and Cost of Revenues (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Major Source | The following table presents the Company’s revenues disaggregated by major source: Three Months Ended March 31, 2022 2021 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenues: Asset-based $ 202,717 $ — $ 202,717 $ 159,375 $ — $ 159,375 Subscription-based 68,537 46,197 114,734 64,012 45,817 109,829 Total recurring revenues 271,254 46,197 317,451 223,387 45,817 269,204 Professional services and other revenues 2,314 1,598 3,912 3,023 2,878 5,901 Total revenues $ 273,568 $ 47,795 $ 321,363 $ 226,410 $ 48,695 $ 275,105 |
Schedule of Disaggregation of Revenue by Geography | The following table presents the Company’s revenues disaggregated by geography, based on the billing address of the customer: Three Months Ended March 31, 2022 2021 (in thousands) United States $ 316,729 $ 270,072 International 4,634 5,033 Total revenues $ 321,363 $ 275,105 |
Schedule of Estimated Revenue Expected to be Recognized in the Future | The following table includes estimated revenue expected to be recognized in the future as of March 31, 2022: Years ending December 31, (in thousands) Remainder of 2022 $ 201,257 2023 178,329 2024 102,504 2025 57,142 2026 29,564 Thereafter 6,878 Total $ 575,674 |
Schedule of Costs of Revenues by Revenue Category | The following table summarizes cost of revenues by revenue category: Three Months Ended March 31, 2022 2021 (in thousands) Asset-based $ 117,428 $ 86,190 Subscription-based 7,811 6,604 Professional services and other 43 75 Total cost of revenues $ 125,282 $ 92,869 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense under the Company’s plans was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Stock-based compensation expense $ 21,690 $ 14,013 Tax effect on stock-based compensation expense (5,531) (3,573) Net effect on income $ 16,159 $ 10,440 |
Schedule of Option Activity under the Company's Plans | The following table summarizes option activity under the Company’s plans: Weighted-Average Weighted- Remaining Average Contractual Life Aggregate Options Exercise Price (Years) Intrinsic Value (in thousands) Outstanding as of December 31, 2021 365,241 $ 38.61 3.3 $ 14,878 Exercised (38,681) 17.02 Forfeited (260) 74.83 Outstanding as of March 31, 2022 326,300 41.14 3.4 10,869 Options exercisable 321,779 $ 40.66 3.3 $ 10,869 |
Schedule of the Activity for Unvested Restricted Stock Units and Awards Granted under the Company's Plans | The following is a summary of the activity for unvested restricted stock units and performance stock units granted under the Company’s plans: RSUs PSUs Number of Weighted- Number of Weighted- Outstanding as of December 31, 2021 1,507,424 $ 71.50 359,184 $ 73.64 Granted 1,266,891 74.76 75,025 82.96 Vested (458,869) 69.91 (55,450) 67.46 Forfeited (51,484) 72.04 (1,359) 75.67 Outstanding as of March 31, 2022 2,263,962 73.63 377,400 76.39 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax Provision (Benefit) | The following table includes the Company’s income (loss) before income tax provision (benefit), income tax provision (benefit) and effective tax rate: Three Months Ended March 31, 2022 2021 (in thousands, except for effective tax rate) Income (loss) before income tax provision (benefit) $ (12,688) $ 9,347 Income tax provision (benefit) 2,020 (5,588) Effective tax rate (15.9) % (59.8) % |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Numerators and Denominators used in Computing Basic and Diluted Net Income (Loss) per Share Attributable to Common Stockholders | The following table provides the numerators and denominators used in computing basic and diluted net income (loss) per share attributable to Envestnet, Inc.: Three Months Ended March 31, 2022 2021 (in thousands, except share and per share data) Net income (loss) attributable to Envestnet, Inc. ( a ) $ (13,859) $ 14,946 Interest on dilutive Convertible Notes due 2025, net of tax — 1,252 Net income (loss) attributable to Envestnet, Inc - Diluted ( b ) $ (13,859) $ 16,198 Weighted-average common shares outstanding: Basic ( c ) 54,903,677 54,208,469 Effect of dilutive shares: Options to purchase common stock — 222,387 Unvested restricted stock units — 562,606 Convertible Notes — 4,848,044 Warrants — 76,142 Diluted ( d ) 54,903,677 59,917,648 Net income (loss) per share attributable to Envestnet, Inc common stock: Basic ( a/c ) $ (0.25) $ 0.28 Diluted ( b/d ) $ (0.25) $ 0.27 |
Schedule of Anti-Dilutive Securities Excluded from Computation of Diluted Earnings per Share | Securities that were anti-dilutive and therefore excluded from the computation of diluted net income (loss) per share were as follows: Three Months Ended March 31, 2022 2021 (in thousands) Options to purchase common stock 326,300 — Unvested RSUs and PSUs 2,641,362 — Warrants 470,000 — Convertible Notes 9,898,549 5,050,505 Total anti-dilutive securities 13,336,211 5,050,505 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Income (Loss) from Operations by Segment | The following table presents a reconciliation from income (loss) from operations by segment to consolidated net income (loss) attributable to Envestnet, Inc.: Three Months Ended March 31, 2022 2021 (in thousands) Envestnet Wealth Solutions $ 25,269 $ 34,197 Envestnet Data & Analytics (5,587) 1,289 Nonsegment operating expenses (26,403) (18,671) Income (loss) from operations (6,721) 16,815 Other expense, net (5,967) (7,468) Consolidated income (loss) before income tax benefit (12,688) 9,347 Income tax provision (benefit) 2,020 (5,588) Consolidated net income (loss) (14,708) 14,935 Add: Net loss attributable to non-controlling interest 849 11 Consolidated net income (loss) attributable to Envestnet, Inc. $ (13,859) $ 14,946 |
Schedule of Consolidated Total Assets | A summary of consolidated total assets follows: March 31, December 31, 2022 2021 (in thousands) Envestnet Wealth Solutions $ 1,658,134 $ 1,720,779 Envestnet Data & Analytics 541,636 520,403 Consolidated total assets $ 2,199,770 $ 2,241,182 |
Geographical Information (Table
Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Property, Plant, and Equipment, Net by Geographic Area | The following table sets forth certain long-lived assets including property and equipment, net and internally developed software, net by geographic area: March 31, December 31, 2022 2021 (in thousands) United States $ 206,961 $ 180,680 India 2,681 2,923 Other 220 271 Total long-lived assets, net $ 209,862 $ 183,874 |
Organization and Description _2
Organization and Description of Business (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 2 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 359,614 | $ 429,279 | $ 371,977 | |
Restricted cash included in prepaid expenses and other current assets | 149 | 0 | ||
Restricted cash included in other non-current assets | 0 | 149 | ||
Total cash, cash equivalents and restricted cash | $ 359,763 | $ 429,428 | $ 372,126 | $ 384,714 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - Private Services Company - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Ownership percentage | 4.40% | ||
Revenues | $ 4.7 | $ 3.8 | |
Due from related parties | $ 2.9 | $ 3 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid technology | $ 22,227 | $ 15,415 |
Non-income tax receivables | 5,986 | 7,013 |
Advisor Summit prepayments and deposits | 4,856 | 1,057 |
Escrow for acquisition | 2,951 | 2,951 |
Prepaid insurance | 2,584 | 2,234 |
Loan to equity method investee | 2,560 | 0 |
Other | 12,324 | 14,036 |
Prepaid expenses and other current assets | $ 53,488 | $ 42,706 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Cost: | |||
Property and equipment, gross | $ 154,304 | $ 140,279 | |
Less: accumulated depreciation and amortization | (91,456) | (90,064) | |
Total property and equipment, net | 62,848 | 50,215 | |
Depreciation and amortization expense | $ 5,604 | $ 5,643 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 3 years | ||
Cost: | |||
Property and equipment, gross | $ 73,142 | 72,289 | |
Leasehold improvements | |||
Cost: | |||
Property and equipment, gross | $ 43,970 | 43,544 | |
Leased data servers | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 3 years | ||
Cost: | |||
Property and equipment, gross | $ 13,044 | 590 | |
Office furniture and fixtures | |||
Cost: | |||
Property and equipment, gross | $ 12,286 | 12,214 | |
Office furniture and fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 3 years | ||
Office furniture and fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 7 years | ||
Office equipment and other | |||
Cost: | |||
Property and equipment, gross | $ 8,193 | 7,973 | |
Office equipment and other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 3 years | ||
Office equipment and other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 5 years | ||
Building and building improvements | |||
Cost: | |||
Property and equipment, gross | $ 2,729 | 2,729 | |
Building and building improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 7 years | ||
Building and building improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 39 years | ||
Land | |||
Cost: | |||
Property and equipment, gross | $ 940 | $ 940 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment retired | $ 4 | $ 3.1 |
Leased data servers | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment under finance lease | 13 | |
Property and equipment under finance lease, accumulated depreciation | $ 1.1 |
Internally Developed Software -
Internally Developed Software - Components of Internally Developed Software (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated amortization | $ (100,215) | $ (91,721) |
Internally developed software, net | $ 147,014 | 133,659 |
Internally developed software | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Internally developed software | $ 247,229 | $ 225,380 |
Internally Developed Software_2
Internally Developed Software - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Research and Development [Abstract] | ||
Amortization expense | $ 8,494 | $ 6,271 |
Intangible Assets, Net - Narrat
Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands | Jun. 21, 2021 | Feb. 28, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Asset Acquisition [Line Items] | ||||
Payments to acquire intangible assets | $ 15,000 | $ 25,517 | ||
Proprietary technology | ||||
Asset Acquisition [Line Items] | ||||
Consideration transferred | $ 18,000 | |||
Payments to acquire intangible assets | $ 3,000 | $ 15,000 | ||
Amortization period | 5 years | |||
Earn-out payment | $ 10,000 | |||
Target metrics term | 5 years |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 727,104 | $ 709,104 |
Accumulated Amortization | (326,228) | (308,708) |
Net Carrying Amount | 400,876 | 400,396 |
Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 590,080 | 590,080 |
Accumulated Amortization | (252,313) | (241,189) |
Net Carrying Amount | 337,767 | 348,891 |
Proprietary technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 103,324 | 85,324 |
Accumulated Amortization | (48,168) | (43,004) |
Net Carrying Amount | 55,156 | 42,320 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33,700 | 33,700 |
Accumulated Amortization | (25,747) | (24,515) |
Net Carrying Amount | $ 7,953 | $ 9,185 |
Intangible Assets, Net - Amorti
Intangible Assets, Net - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 17,520 | $ 16,478 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued investment manager fees | $ 100,566 | $ 95,858 |
Accrued compensation and related taxes | 51,898 | 97,523 |
Income tax payables | 19,147 | 0 |
Accrued professional services | 5,620 | 7,746 |
Accrued technology | 7,483 | 8,951 |
Non-income tax payables | 4,154 | 4,907 |
Other accrued expenses | 12,219 | 10,174 |
Total accrued expenses and other liabilities | $ 201,087 | $ 225,159 |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Aug. 31, 2020 | May 31, 2018 |
Convertible Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 345,000,000 | |||
Convertible Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 517,500,000 | |||
Convertible Notes Payable | Convertible Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 345,000,000 | $ 345,000,000 | ||
Unamortized issuance costs on convertible notes | (2,463,000) | (2,979,000) | ||
Convertible notes carrying value | 342,537,000 | 342,021,000 | ||
Convertible Notes Payable | Convertible Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Face amount | 517,500,000 | 517,500,000 | ||
Unamortized issuance costs on convertible notes | (9,940,000) | (10,659,000) | ||
Convertible notes carrying value | 507,560,000 | 506,841,000 | ||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility balance | $ 0 | $ 0 |
Debt - Third Credit Agreement (
Debt - Third Credit Agreement (Details) - Third Amended Credit Agreement - USD ($) | Feb. 04, 2022 | Mar. 31, 2022 |
Debt Instrument [Line Items] | ||
Voting equity foreign subsidiary, percent | 66.00% | |
Non voting equity foreign subsidiary, percent | 100.00% | |
Other Nonoperating Expense | ||
Debt Instrument [Line Items] | ||
Write off of deferred debt issuance costs | $ 600,000 | |
Prepaid Expenses | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 700,000 | |
Other Noncurrent Assets | ||
Debt Instrument [Line Items] | ||
Issuance costs | $ 1,900,000 | |
Debt issuance costs | 2,700,000 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 0.25% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 0.30% | |
Base Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Spread on variable rate basis (as a percent) | 0.25% | |
Base Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Spread on variable rate basis (as a percent) | 1.75% | |
SOFR | Minimum | ||
Debt Instrument [Line Items] | ||
Spread on variable rate basis (as a percent) | 1.25% | |
SOFR | Maximum | ||
Debt Instrument [Line Items] | ||
Spread on variable rate basis (as a percent) | 2.75% | |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Credit facility amount | $ 500,000,000 | |
Available to borrow amount | $ 500,000,000 | |
Letter of Credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Credit facility amount | $ 20,000,000 |
Debt - Convertible Notes due 20
Debt - Convertible Notes due 2023 and 2025 (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Aug. 31, 2020 | May 31, 2018 | |
Convertible Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 345,000,000 | |||
Interest rate | 1.75% | |||
Effective interest rate | 2.40% | 2.40% | ||
Convertible Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 517,500,000 | |||
Interest rate | 0.75% | |||
Effective interest rate | 1.30% | 1.30% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Coupon interest | $ 2,480 | $ 2,479 |
Amortization of issuance costs | 2,060 | 1,423 |
Undrawn and other fees | 313 | 313 |
Total interest expense | $ 4,853 | $ 4,215 |
Debt - Interest Expense - Narra
Debt - Interest Expense - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | ||
Interest expense debt | $ 4,853 | $ 4,215 |
Interest expense debt excluding amortization | 2,480 | $ 2,479 |
Convertible Notes Payable | ||
Debt Instrument [Line Items] | ||
Interest expense debt | 3,700 | |
Interest expense debt excluding amortization | 2,500 | |
Amortization of debt discount and issuance costs | $ 1,200 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Level I | ||
Assets: | ||
Assets to fund deferred compensation liability | $ 0 | $ 0 |
Total assets | 2,946 | 2,684 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Deferred compensation liability | 9,515 | 10,418 |
Total liabilities | 9,515 | 10,418 |
Level I | Money Market Funds | ||
Assets: | ||
Money market funds | 2,946 | 2,684 |
Level II | ||
Assets: | ||
Assets to fund deferred compensation liability | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Deferred compensation liability | 0 | 0 |
Total liabilities | 0 | 0 |
Level II | Money Market Funds | ||
Assets: | ||
Money market funds | 0 | 0 |
Level III | ||
Assets: | ||
Assets to fund deferred compensation liability | 11,201 | 11,140 |
Total assets | 11,201 | 11,140 |
Liabilities: | ||
Contingent consideration | 750 | 743 |
Deferred compensation liability | 0 | 0 |
Total liabilities | 750 | 743 |
Level III | Money Market Funds | ||
Assets: | ||
Money market funds | 0 | 0 |
Fair Value | ||
Assets: | ||
Assets to fund deferred compensation liability | 11,201 | 11,140 |
Total assets | 14,147 | 13,824 |
Liabilities: | ||
Contingent consideration | 750 | 743 |
Deferred compensation liability | 9,515 | 10,418 |
Total liabilities | 10,265 | 11,161 |
Fair Value | Money Market Funds | ||
Assets: | ||
Money market funds | $ 2,946 | $ 2,684 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Fair Value Measurements | |||
Fair market value adjustment to contingent consideration liability | $ 0 | $ (140) | |
Convertible Notes due 2023 | |||
Fair Value Measurements | |||
Debt instrument, fair value disclosure | 418,300 | $ 439,900 | |
Convertible Notes due 2023 | Carrying Value | |||
Fair Value Measurements | |||
Convertible notes | 342,500 | 342,000 | |
Convertible Notes due 2025 | |||
Fair Value Measurements | |||
Debt instrument, fair value disclosure | 505,900 | 526,100 | |
Convertible Notes due 2025 | Carrying Value | |||
Fair Value Measurements | |||
Convertible notes | 507,600 | 506,800 | |
Private A I Company Acquisition | |||
Fair Value Measurements | |||
Fair market value adjustment to contingent consideration liability | $ 800 | $ 700 |
Fair Value Measurements - Level
Fair Value Measurements - Level III (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value of Assets to Fund Deferred Compensation Liability | |
Beginning balance | $ 11,140 |
Contributions | 649 |
Fair value adjustments | (588) |
Ending balance | $ 11,201 |
Revenue and Cost of Revenues -
Revenue and Cost of Revenues - Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 321,363 | $ 275,105 |
United States | ||
Revenues: | ||
Total revenues | 316,729 | 270,072 |
International | ||
Revenues: | ||
Total revenues | 4,634 | 5,033 |
Total recurring revenues | ||
Revenues: | ||
Total revenues | 317,451 | 269,204 |
Asset-based | ||
Revenues: | ||
Total revenues | 202,717 | 159,375 |
Subscription-based | ||
Revenues: | ||
Total revenues | 114,734 | 109,829 |
Professional services and other revenues | ||
Revenues: | ||
Total revenues | 3,912 | 5,901 |
Envestnet Wealth Solutions | ||
Revenues: | ||
Total revenues | 273,568 | 226,410 |
Envestnet Wealth Solutions | Total recurring revenues | ||
Revenues: | ||
Total revenues | 271,254 | 223,387 |
Envestnet Wealth Solutions | Asset-based | ||
Revenues: | ||
Total revenues | 202,717 | 159,375 |
Envestnet Wealth Solutions | Subscription-based | ||
Revenues: | ||
Total revenues | 68,537 | 64,012 |
Envestnet Wealth Solutions | Professional services and other revenues | ||
Revenues: | ||
Total revenues | 2,314 | 3,023 |
Envestnet Data & Analytics | ||
Revenues: | ||
Total revenues | 47,795 | 48,695 |
Envestnet Data & Analytics | Total recurring revenues | ||
Revenues: | ||
Total revenues | 46,197 | 45,817 |
Envestnet Data & Analytics | Asset-based | ||
Revenues: | ||
Total revenues | 0 | 0 |
Envestnet Data & Analytics | Subscription-based | ||
Revenues: | ||
Total revenues | 46,197 | 45,817 |
Envestnet Data & Analytics | Professional services and other revenues | ||
Revenues: | ||
Total revenues | $ 1,598 | $ 2,878 |
Revenue and Cost of Revenues _2
Revenue and Cost of Revenues - Obligation (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Remaining Performance Obligations | |
Remaining performance obligations | $ 575,674 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Remaining Performance Obligations | |
Remaining performance obligations | $ 201,257 |
Revenue recognition period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Remaining Performance Obligations | |
Remaining performance obligations | $ 178,329 |
Revenue recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Remaining Performance Obligations | |
Remaining performance obligations | $ 102,504 |
Revenue recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Remaining Performance Obligations | |
Remaining performance obligations | $ 57,142 |
Revenue recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Remaining Performance Obligations | |
Remaining performance obligations | $ 29,564 |
Revenue recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Remaining Performance Obligations | |
Remaining performance obligations | $ 6,878 |
Revenue recognition period |
Revenue and Cost of Revenues _3
Revenue and Cost of Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Increase in contract with customer, liability | $ 11.1 | ||
Recognized deferred revenue | 15.9 | $ 16.9 | |
Deferred sales incentive compensation | 11.6 | $ 11.8 | |
Amortization expense for the deferred sales incentive compensation | 1.1 | 1.1 | |
Impairment loss for capitalized costs | $ 0 | $ 0 |
Revenue and Cost of Revenues _4
Revenue and Cost of Revenues - Cost of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Product Information [Line Items] | ||
Cost of revenues | $ 125,282 | $ 92,869 |
Asset-based | ||
Product Information [Line Items] | ||
Cost of revenues | 117,428 | 86,190 |
Subscription-based | ||
Product Information [Line Items] | ||
Cost of revenues | 7,811 | 6,604 |
Professional services and other | ||
Product Information [Line Items] | ||
Cost of revenues | $ 43 | $ 75 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Maximum number of shares available for future issuance (in shares) | 2,423,500 | |
Statutory rate (as a percent) | 25.50% | 25.50% |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 21,690 | $ 14,013 |
Tax effect on stock-based compensation expense | (5,531) | (3,573) |
Net effect on income | $ 16,159 | $ 10,440 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Options | ||
Outstanding at the beginning of the period (in shares) | 365,241 | |
Exercised (in shares) | (38,681) | |
Forfeited (in shares) | (260) | |
Outstanding at the end of the period (in shares) | 326,300 | 365,241 |
Options exercisable (in shares) | 321,779 | |
Weighted-Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 38.61 | |
Exercised (in dollars per share) | 17.02 | |
Forfeited (in dollars per share) | 74.83 | |
Outstanding at the end of the period (in dollars per share) | 41.14 | $ 38.61 |
Weighted-average exercise price, options exercisable (in dollars per share) | $ 40.66 | |
Weighted-Average Remaining Contractual Life | ||
Outstanding | 3 years 4 months 24 days | 3 years 3 months 18 days |
Options exercisable | 3 years 3 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding (in dollars) | $ 10,869 | $ 14,878 |
Options exercisable (in dollars) | $ 10,869 | |
Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Unrecognized compensation expense weighted-average recognition period | 1 year 3 months 18 days | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Exercise prices of stock options outstanding (in dollars per share) | $ 15.34 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Exercise prices of stock options outstanding (in dollars per share) | $ 74.83 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
RSUs | |
Number of Shares | |
Balance at the beginning of the period (in shares) | shares | 1,507,424 |
Granted (in shares) | shares | 1,266,891 |
Vested (in shares) | shares | (458,869) |
Forfeited (in shares) | shares | (51,484) |
Balance at the end of the period (in shares) | shares | 2,263,962 |
Weighted- Average Grant Date Fair Value per Share | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 71.50 |
Granted (in dollars per share) | $ / shares | 74.76 |
Vested (in dollars per share) | $ / shares | 69.91 |
Forfeited (in dollars per share) | $ / shares | 72.04 |
Balance at the end of the period (in dollars per share) | $ / shares | $ 73.63 |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |
Unrecognized compensation expense related to shares | $ | $ 157.6 |
Unrecognized compensation expense weighted-average recognition period | 2 years 3 months 18 days |
PSUs | |
Stock-Based compensation | |
Vesting period | 3 years |
Number of Shares | |
Balance at the beginning of the period (in shares) | shares | 359,184 |
Granted (in shares) | shares | 75,025 |
Vested (in shares) | shares | (55,450) |
Forfeited (in shares) | shares | (1,359) |
Balance at the end of the period (in shares) | shares | 377,400 |
Weighted- Average Grant Date Fair Value per Share | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 73.64 |
Granted (in dollars per share) | $ / shares | 82.96 |
Vested (in dollars per share) | $ / shares | 67.46 |
Forfeited (in dollars per share) | $ / shares | 75.67 |
Balance at the end of the period (in dollars per share) | $ / shares | $ 76.39 |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |
Unrecognized compensation expense related to shares | $ | $ 16.2 |
Unrecognized compensation expense weighted-average recognition period | 1 year 10 months 24 days |
PSUs | Minimum | |
Stock-Based compensation | |
Number of shares to be vest upon each evaluation date, percentage | 0.00% |
PSUs | Maximum | |
Stock-Based compensation | |
Number of shares to be vest upon each evaluation date, percentage | 150.00% |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income tax provision (benefit) | $ (12,688) | $ 9,347 |
Income tax provision (benefit) | $ 2,020 | $ (5,588) |
Effective tax rate | (15.90%) | (59.80%) |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income (loss) attributable to Envestnet, Inc. | $ (13,859) | $ 14,946 |
Interest on dilutive Convertible Notes due 2025, net of tax | 0 | 1,252 |
Net income (loss) attributable to Envestnet, Inc. - Diluted | $ (13,859) | $ 16,198 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 54,903,677 | 54,208,469 |
Effect of dilutive shares: | ||
Convertible Notes (in shares) | 0 | 4,848,044 |
Warrants (in shares) | 0 | 76,142 |
Diluted (in shares) | 54,903,677 | 59,917,648 |
Net income (loss) per share attributable to Envestnet, Inc common stock: | ||
Basic (in dollars per share) | $ (0.25) | $ 0.28 |
Diluted (in dollars per share) | $ (0.25) | $ 0.27 |
Options to purchase common stock | ||
Effect of dilutive shares: | ||
Options and unvested restricted stock units to purchase common stock (in shares) | 0 | 222,387 |
Unvested restricted stock units | ||
Effect of dilutive shares: | ||
Options and unvested restricted stock units to purchase common stock (in shares) | 0 | 562,606 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Antidilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | ||
Anti-dilutive securities excluded from computation of diluted loss per share (in shares) | 13,336,211 | 5,050,505 |
Options to purchase common stock | ||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | ||
Anti-dilutive securities excluded from computation of diluted loss per share (in shares) | 326,300 | 0 |
Unvested RSUs and PSUs | ||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | ||
Anti-dilutive securities excluded from computation of diluted loss per share (in shares) | 2,641,362 | 0 |
Warrants | ||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | ||
Anti-dilutive securities excluded from computation of diluted loss per share (in shares) | 470,000 | 0 |
Convertible Notes | ||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | ||
Anti-dilutive securities excluded from computation of diluted loss per share (in shares) | 9,898,549 | 5,050,505 |
Segment Information - Reconcili
Segment Information - Reconciliation of Income (Loss) From Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Loss from continuing operations | $ (6,721) | $ 16,815 |
Nonsegment operating expenses | (328,084) | (258,290) |
Other expense, net | (5,967) | (7,468) |
Income (loss) before income tax provision (benefit) | (12,688) | 9,347 |
Income tax provision (benefit) | 2,020 | (5,588) |
Net income (loss) | (14,708) | 14,935 |
Add: Net loss attributable to non-controlling interest | 849 | 11 |
Net income (loss) attributable to Envestnet, Inc. | (13,859) | 14,946 |
Operating Segments | Envestnet Wealth Solutions | ||
Segment Reporting Information [Line Items] | ||
Loss from continuing operations | 25,269 | 34,197 |
Operating Segments | Envestnet Data & Analytics | ||
Segment Reporting Information [Line Items] | ||
Loss from continuing operations | (5,587) | 1,289 |
Nonsegment | ||
Segment Reporting Information [Line Items] | ||
Nonsegment operating expenses | $ (26,403) | $ (18,671) |
Segment Information - Summary o
Segment Information - Summary of Consolidated Total Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,199,770 | $ 2,241,182 |
Envestnet Wealth Solutions | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,658,134 | 1,720,779 |
Envestnet Data & Analytics | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 541,636 | $ 520,403 |
Geographical Information (Detai
Geographical Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 209,862 | $ 183,874 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | 206,961 | 180,680 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | 2,681 | 2,923 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 220 | $ 271 |
Commitments (Details)
Commitments (Details) | 3 Months Ended |
Mar. 31, 2022claim | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of previous claims experienced | 0 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Apr. 01, 2022USD ($) | Jun. 21, 2021USD ($) | Apr. 30, 2022day | Feb. 28, 2022USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) |
Subsequent Event [Line Items] | ||||||
Payments to acquire intangible assets | $ 15,000 | $ 25,517 | ||||
Proprietary technology | ||||||
Subsequent Event [Line Items] | ||||||
Consideration transferred | $ 18,000 | |||||
Payments to acquire intangible assets | $ 3,000 | $ 15,000 | ||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Number of offices set for closure | day | 3 | |||||
Subsequent Event | Proprietary technology | ||||||
Subsequent Event [Line Items] | ||||||
Consideration transferred | $ 9,000 | |||||
Payments to acquire intangible assets | $ 4,000 |