(State or other jurisdiction of incorporation or organization) | (I.R.S Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of exchange on which registered | ||||||
ý | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Page | |||||
March 31, | December 31, | |||||||||||||
2024 | 2023 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Fees receivable, net | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Assets held for deconsolidation | ||||||||||||||
Total current assets | ||||||||||||||
Property and equipment, net | ||||||||||||||
Internally developed software, net | ||||||||||||||
Intangible assets, net | ||||||||||||||
Goodwill | ||||||||||||||
Operating lease right-of-use assets, net | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable, accrued expenses and other current liabilities | $ | $ | ||||||||||||
Operating lease liabilities | ||||||||||||||
Deferred revenue | ||||||||||||||
Liabilities held for deconsolidation | ||||||||||||||
Total current liabilities | ||||||||||||||
Debt | ||||||||||||||
Operating lease liabilities, net of current portion | ||||||||||||||
Deferred tax liabilities, net | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Stockholders' equity | ||||||||||||||
Preferred stock, par value $ | ||||||||||||||
Common stock, par value $ | ||||||||||||||
Treasury stock at cost, | ( | ( | ||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated deficit | ( | ( | ||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Total stockholders’ equity, attributable to Envestnet, Inc. | ||||||||||||||
Non-controlling interest | ||||||||||||||
Total equity | ||||||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Revenue: | ||||||||||||||
Asset-based | $ | $ | ||||||||||||
Subscription-based | ||||||||||||||
Total recurring revenue | ||||||||||||||
Professional services and other revenue | ||||||||||||||
Total revenue | ||||||||||||||
Operating expenses: | ||||||||||||||
Direct expense | ||||||||||||||
Employee compensation | ||||||||||||||
General and administrative | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Total operating expenses | ||||||||||||||
Income (loss) from operations | ( | |||||||||||||
Other expense, net | ( | ( | ||||||||||||
Income (loss) before income tax provision | ( | |||||||||||||
Income tax provision | ||||||||||||||
Net income (loss) | ( | |||||||||||||
Add: Net loss attributable to non-controlling interest | ||||||||||||||
Net income (loss) attributable to Envestnet, Inc. | $ | $ | ( | |||||||||||
Net income (loss) attributable to Envestnet, Inc. per share: | ||||||||||||||
Basic | $ | $ | ( | |||||||||||
Diluted | $ | $ | ( | |||||||||||
Weighted average common shares outstanding: | ||||||||||||||
Basic | ||||||||||||||
Diluted |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Net income (loss) attributable to Envestnet, Inc. | $ | $ | ( | |||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Foreign currency translation adjustments | ( | |||||||||||||
Total other comprehensive income (loss), net of tax | ( | |||||||||||||
Comprehensive income (loss) attributable to Envestnet, Inc. | $ | $ | ( |
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | Other | Non- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Paid-in | Comprehensive | Accumulated | Controlling | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Loss | Deficit | Interest | Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, vesting of RSUs and PSUs | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash paid related to tax withholding for stock-based compensation | — | — | ( | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from the exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from capital contributions received by non-controlling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2024 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | Other | Non- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Paid-in | Comprehensive | Accumulated | Controlling | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Loss | Deficit | Interest | Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, vesting of RSUs and PSUs | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash paid related to tax withholding for stock-based compensation | — | — | ( | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from the exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of non-controlling units from third-party shareholders | — | — | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income (loss) | $ | $ | ( | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Deferred income taxes | ( | |||||||||||||
Non-cash compensation expense | ||||||||||||||
Non-cash interest expense | ||||||||||||||
Loss allocations from equity method investments | ||||||||||||||
Other | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Fees receivable, net | ( | ( | ||||||||||||
Prepaid expenses and other assets | ( | ( | ||||||||||||
Accounts payable, accrued expenses and other liabilities | ( | ( | ||||||||||||
Deferred revenue | ||||||||||||||
Net cash provided by (used in) operating activities | ( | |||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of property and equipment | ( | ( | ||||||||||||
Capitalization of internally developed software | ( | ( | ||||||||||||
Investments in private companies | ( | ( | ||||||||||||
Acquisition of proprietary technology | ( | |||||||||||||
Issuance of loan receivable to private company | ( | |||||||||||||
Other | ||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from exercise of stock options | ||||||||||||||
Payments related to tax withholdings for stock-based compensation | ( | ( | ||||||||||||
Payments related to share repurchases | ( | |||||||||||||
Proceeds from capital contributions received by non-controlling interest | ||||||||||||||
Purchase of non-controlling units from third-party shareholders | ( | |||||||||||||
Other | ||||||||||||||
Net cash provided by (used in) financing activities | ( | |||||||||||||
Effect of exchange rate on changes on cash and cash equivalents | ( | |||||||||||||
Net change in cash and cash equivalents due to cash reclassified to assets held for deconsolidation | ( | |||||||||||||
Net change in cash and cash equivalents | ( | ( | ||||||||||||
Cash and cash equivalents, beginning of period | ||||||||||||||
Cash and cash equivalents, end of period | $ | $ | ||||||||||||
Supplemental disclosures of cash flow information | ||||||||||||||
Net cash paid for income taxes | $ | $ | ||||||||||||
Cash paid for interest | $ | $ | ||||||||||||
Supplemental disclosure of non-cash activities | ||||||||||||||
Conversion of equity method investee loan to shares | $ | $ | ||||||||||||
Right-of-use assets obtained in exchange for lease liabilities, net | $ | $ | ||||||||||||
Purchase of property and equipment included in accounts payable, accrued expenses and other liabilities | $ | $ | ||||||||||||
March 31, | ||||||||
2024 | ||||||||
(in thousands) | ||||||||
Cash and cash equivalents | $ | |||||||
Fees receivable, net | ||||||||
Prepaid expenses and other current assets | ||||||||
Internally developed software, net | ||||||||
Goodwill (1) | ||||||||
Other assets | ||||||||
Total assets held for deconsolidation | $ | |||||||
Accounts payable, accrued expenses and other current liabilities | $ | |||||||
Deferred revenue | ||||||||
Other liabilities | ||||||||
Total liabilities held for deconsolidation | $ |
March 31, | December 31, | |||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Prepaid technology | $ | $ | ||||||||||||
Income tax prepayments and receivables | ||||||||||||||
Prepaid data servers | ||||||||||||||
Elevate Summit prepayments and deposits | ||||||||||||||
Non-income tax receivable | ||||||||||||||
Prepaid insurance | ||||||||||||||
Other | ||||||||||||||
Total prepaid expenses and other current assets | $ | $ |
March 31, | December 31, | |||||||||||||||||||
Estimated Useful Life | 2024 | 2023 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Internally developed software | $ | $ | ||||||||||||||||||
Less: accumulated amortization | ( | ( | ||||||||||||||||||
Internally developed software, net | $ | $ |
March 31, | December 31, | |||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
United States | $ | $ | ||||||||||||
India | ||||||||||||||
Total long-lived assets, net | $ | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
Customer lists | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Proprietary technologies | ( | ( | ||||||||||||||||||||||||||||||||||||
Trade names | ( | ( | ||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
Remainder of 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total | $ |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Intangible asset amortization | $ | $ | ||||||||||||
Internally developed software amortization | ||||||||||||||
Property and equipment depreciation | ||||||||||||||
Total depreciation and amortization | $ | $ |
Envestnet Wealth Solutions | Envestnet Data & Analytics | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | |||||||||||||||||
Goodwill reclassified to assets held for deconsolidation (1) | ( | ( | ||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ |
March 31, | December 31, | |||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Accrued investment manager fees | $ | $ | ||||||||||||
Accrued compensation and related taxes | ||||||||||||||
Accounts payable | ||||||||||||||
Accrued professional services | ||||||||||||||
Accrued interest | ||||||||||||||
Accrued technology | ||||||||||||||
Other accrued expenses | ||||||||||||||
Total accounts payable, accrued expenses and other current liabilities | $ | $ |
Envestnet Wealth Solutions | Envestnet Data & Analytics | Nonsegment | Total | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | $ | ||||||||||||||||||||||
Severance expense | ||||||||||||||||||||||||||
Cash payments | ( | ( | ( | ( | ||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ | $ |
March 31, 2024 | ||||||||||||||||||||||||||
Issuance Amount | Unamortized Issuance Costs | Carrying Value | Fair Value (Level II) | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Revolving Credit Facility | $ | $ | $ | $ | ||||||||||||||||||||||
Convertible Notes due 2025 | ( | |||||||||||||||||||||||||
Convertible Notes due 2027 | ( | |||||||||||||||||||||||||
Total debt | $ | $ | ( | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||
Issuance Amount | Unamortized Issuance Costs | Carrying Value | Fair Value (Level II) | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Revolving Credit Facility | $ | $ | $ | $ | ||||||||||||||||||||||
Convertible Notes due 2025 | ( | |||||||||||||||||||||||||
Convertible Notes due 2027 | ( | |||||||||||||||||||||||||
Total debt | $ | $ | ( | $ | $ |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Convertible Notes interest | $ | $ | ||||||||||||
Amortization of debt discount and issuance costs | ||||||||||||||
Undrawn and other fees | ||||||||||||||
Total interest expense | $ | $ |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Convertible Notes due 2023 | N/A | % | ||||||||||||
Convertible Notes due 2025 | % | % | ||||||||||||
Convertible Notes due 2027 | % | % |
March 31, 2024 | ||||||||||||||||||||||||||
Fair Value | Level I | Level II | Level III | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||||||||||||
Assets to fund deferred compensation liability | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deferred compensation liability | $ | $ | $ | $ | ||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||
Fair Value | Level I | Level II | Level III | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||||||||||||
Assets to fund deferred compensation liability | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deferred compensation liability | $ | $ | $ | $ | ||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
Fair Value of Assets Used to Fund Deferred Compensation Liability | ||||||||
(in thousands) | ||||||||
Balance as of December 31, 2023 | $ | |||||||
Fair value adjustments and fees | ||||||||
Balance as of March 31, 2024 | $ |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
Envestnet Wealth Solutions | Envestnet Data & Analytics | Total | Envestnet Wealth Solutions | Envestnet Data & Analytics | Total | |||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||
Asset-based | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Subscription-based | ||||||||||||||||||||||||||||||||||||||
Total recurring revenue | ||||||||||||||||||||||||||||||||||||||
Professional services and other revenue | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | $ |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
United States | $ | $ | ||||||||||||
International | ||||||||||||||
Total revenue | $ | $ |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Asset-based | $ | $ | ||||||||||||
Subscription-based | ||||||||||||||
Professional services and other | ||||||||||||||
Total direct expense | $ | $ |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Stock-based compensation expense | $ | $ | ||||||||||||
Tax effect on stock-based compensation expense | ( | ( | ||||||||||||
Net effect on income (loss) | $ | $ |
Weighted- | Weighted-Average | |||||||||||||||||||||||||
Average | Remaining | Aggregate | ||||||||||||||||||||||||
Options | Exercise Price | Contractual Life | Intrinsic Value | |||||||||||||||||||||||
(in years) | (in thousands) | |||||||||||||||||||||||||
Outstanding as of December 31, 2023 | $ | |||||||||||||||||||||||||
Exercised | ( | $ | ||||||||||||||||||||||||
Forfeited | ( | $ | ||||||||||||||||||||||||
Outstanding and exercisable as of March 31, 2024 | $ | $ | ||||||||||||||||||||||||
RSUs | PSUs | |||||||||||||||||||||||||
Number of Shares | Weighted- Average Grant Date Fair Value per Share | Number of Shares | Weighted- Average Grant Date Fair Value per Share | |||||||||||||||||||||||
Non-vested as of December 31, 2023 | $ | $ | ||||||||||||||||||||||||
Granted | $ | $ | ||||||||||||||||||||||||
Vested | ( | $ | ( | $ | ||||||||||||||||||||||
Forfeited | ( | $ | ( | $ | ||||||||||||||||||||||
Non-vested as of March 31, 2024 | $ | $ | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands, except for effective tax rate) | ||||||||||||||
Income (loss) before income tax provision | $ | $ | ( | |||||||||||
Income tax provision | $ | $ | ||||||||||||
Effective tax rate | % | ( | % |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||
Net income (loss) attributable to Envestnet, Inc. | $ | $ | ( | |||||||||||
Weighted average common shares outstanding: | ||||||||||||||
Basic | ||||||||||||||
Effect of dilutive shares: | ||||||||||||||
Non-vested RSUs and PSUs | ||||||||||||||
Options to purchase common stock | ||||||||||||||
Diluted | ||||||||||||||
Net income (loss) attributable to Envestnet, Inc., per share: | ||||||||||||||
Basic | $ | $ | ( | |||||||||||
Diluted | $ | $ | ( |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Convertible Notes | ||||||||||||||
Non-vested RSUs and PSUs | ||||||||||||||
Options to purchase common stock | ||||||||||||||
Total anti-dilutive securities |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Envestnet Wealth Solutions | $ | $ | ||||||||||||
Envestnet Data & Analytics | ( | ( | ||||||||||||
Nonsegment operating expenses | ( | ( | ||||||||||||
Income (loss) from operations | ( | |||||||||||||
Other expense, net | ( | ( | ||||||||||||
Income (loss) before income tax provision | ( | |||||||||||||
Income tax provision | ||||||||||||||
Net income (loss) | ( | |||||||||||||
Add: Net loss attributable to non-controlling interest | ||||||||||||||
Net income (loss) attributable to Envestnet, Inc. | $ | $ | ( |
March 31, | December 31, | |||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Envestnet Wealth Solutions | $ | $ | ||||||||||||
Envestnet Data & Analytics | ||||||||||||||
Consolidated total assets | $ | $ |
As of | ||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | ||||||||||||||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2024 | ||||||||||||||||||||||||||||
(in millions, except accounts and advisors data) | ||||||||||||||||||||||||||||||||
Platform Assets | ||||||||||||||||||||||||||||||||
Assets under Management (“AUM”) | $ | 363,244 | $ | 384,773 | $ | 375,408 | $ | 416,001 | $ | 452,464 | ||||||||||||||||||||||
Assets under Administration (“AUA”) | 379,843 | 394,078 | 398,082 | 430,846 | 471,401 | |||||||||||||||||||||||||||
Total AUM/A | 743,087 | 778,851 | 773,490 | 846,847 | 923,865 | |||||||||||||||||||||||||||
Subscription | 4,566,971 | 4,643,313 | 4,579,248 | 4,959,514 | 5,158,180 | |||||||||||||||||||||||||||
Total Platform Assets | $ | 5,310,058 | $ | 5,422,164 | $ | 5,352,738 | $ | 5,806,361 | $ | 6,082,045 | ||||||||||||||||||||||
Platform Accounts | ||||||||||||||||||||||||||||||||
AUM | 1,571,862 | 1,609,677 | 1,614,873 | 1,640,879 | 1,688,044 | |||||||||||||||||||||||||||
AUA | 1,142,166 | 1,144,375 | 1,257,094 | 1,254,962 | 1,315,442 | |||||||||||||||||||||||||||
Total AUM/A | 2,714,028 | 2,754,052 | 2,871,967 | 2,895,841 | 3,003,486 | |||||||||||||||||||||||||||
Subscription | 15,779,980 | 15,916,955 | 16,072,848 | 16,248,598 | 16,641,631 | |||||||||||||||||||||||||||
Total Platform Accounts | 18,494,008 | 18,671,007 | 18,944,815 | 19,144,439 | 19,645,117 | |||||||||||||||||||||||||||
Advisors | ||||||||||||||||||||||||||||||||
AUM/A | 38,611 | 38,809 | 38,078 | 38,697 | 38,814 | |||||||||||||||||||||||||||
Subscription | 67,843 | 68,439 | 69,318 | 69,973 | 70,262 | |||||||||||||||||||||||||||
Total Advisors | 106,454 | 107,248 | 107,396 | 108,670 | 109,076 |
Asset Rollforward - Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
As of December 31, | Gross | Net | Market | As of March 31, | ||||||||||||||||||||||||||||||||||||||||
2023 | Sales | Redemptions | Flows | Impact | Reclassifications | 2024 | ||||||||||||||||||||||||||||||||||||||
(in millions, except account data) | ||||||||||||||||||||||||||||||||||||||||||||
AUM | $ | 416,001 | $ | 32,127 | $ | (19,601) | $ | 12,526 | $ | 22,694 | $ | 1,243 | $ | 452,464 | ||||||||||||||||||||||||||||||
AUA | 430,846 | 45,596 | (25,402) | 20,194 | 22,683 | (2,322) | 471,401 | |||||||||||||||||||||||||||||||||||||
Total AUM/A | $ | 846,847 | $ | 77,723 | $ | (45,003) | $ | 32,720 | $ | 45,377 | $ | (1,079) | $ | 923,865 | ||||||||||||||||||||||||||||||
Fee-Based Accounts | 2,895,841 | 112,633 | (4,988) | 3,003,486 |
As of | ||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | ||||||||||||||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2024 | ||||||||||||||||||||||||||||
(in millions, except number of firms data) | ||||||||||||||||||||||||||||||||
Number of paying users | 37.5 | 38.0 | 42.3 | 38.3 | 43.8 | |||||||||||||||||||||||||||
Number of firms | 1,310 | 1,339 | 1,322 | 1,324 | 1,323 |
Three Months Ended | ||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | |||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Envestnet Wealth Solutions: | ||||||||||||||||||||||||||
Asset-based | $ | 202,616 | $ | 176,932 | $ | 25,684 | 15 | % | ||||||||||||||||||
Subscription-based | 84,168 | 80,470 | 3,698 | 5 | % | |||||||||||||||||||||
Total recurring revenue | 286,784 | 257,402 | 29,382 | 11 | % | |||||||||||||||||||||
Professional services and other revenue | 3,026 | 3,247 | (221) | (7) | % | |||||||||||||||||||||
Total Envestnet Wealth Solutions revenue | $ | 289,810 | $ | 260,649 | $ | 29,161 | 11 | % | ||||||||||||||||||
Envestnet Data & Analytics: | ||||||||||||||||||||||||||
Subscription-based | $ | 33,294 | $ | 36,609 | $ | (3,315) | (9) | % | ||||||||||||||||||
Total recurring revenue | 33,294 | 36,609 | (3,315) | (9) | % | |||||||||||||||||||||
Professional services and other revenue | 1,846 | 1,449 | 397 | 27 | % | |||||||||||||||||||||
Total Envestnet Data & Analytics revenue | $ | 35,140 | $ | 38,058 | $ | (2,918) | (8) | % | ||||||||||||||||||
Total consolidated revenue | $ | 324,950 | $ | 298,707 | $ | 26,243 | 9 | % | ||||||||||||||||||
Consolidated net income (loss) attributable to Envestnet, Inc. | $ | 2,513 | $ | (41,228) | $ | 43,741 | 106 | % | ||||||||||||||||||
Net income (loss) attributable to Envestnet, Inc. per share - basic and diluted | $ | 0.05 | $ | (0.76) | $ | 0.81 | 107 | % | ||||||||||||||||||
Adjusted EBITDA* | $ | 70,378 | $ | 54,003 | $ | 16,375 | 30 | % | ||||||||||||||||||
Adjusted net income* | $ | 39,407 | $ | 30,149 | $ | 9,258 | 31 | % | ||||||||||||||||||
Adjusted net income per diluted share* | $ | 0.60 | $ | 0.46 | $ | 0.14 | 30 | % | ||||||||||||||||||
Free cash flow* | $ | (19,909) | $ | (61,739) | $ | 41,830 | 68 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | $ Change | % Change | |||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||
Asset-based | $ | 202,616 | 62 | % | $ | 176,932 | 59 | % | $ | 25,684 | 15 | % | ||||||||||||||||||||||||||
Subscription-based | 117,462 | 36 | % | 117,079 | 39 | % | 383 | — | % | |||||||||||||||||||||||||||||
Total recurring revenue | 320,078 | 99 | % | 294,011 | 98 | % | 26,067 | 9 | % | |||||||||||||||||||||||||||||
Professional services and other revenue | 4,872 | 1 | % | 4,696 | 2 | % | 176 | 4 | % | |||||||||||||||||||||||||||||
Total revenue | 324,950 | 100 | % | 298,707 | 100 | % | 26,243 | 9 | % | |||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Direct expense | 126,633 | 39 | % | 109,679 | 37 | % | 16,954 | 15 | % | |||||||||||||||||||||||||||||
Employee compensation | 103,652 | 32 | % | 114,215 | 38 | % | (10,563) | (9) | % | |||||||||||||||||||||||||||||
General and administrative | 52,065 | 16 | % | 54,350 | 18 | % | (2,285) | (4) | % | |||||||||||||||||||||||||||||
Depreciation and amortization | 33,892 | 10 | % | 31,520 | 11 | % | 2,372 | 8 | % | |||||||||||||||||||||||||||||
Total operating expenses | 316,242 | 97 | % | 309,764 | 104 | % | 6,478 | 2 | % | |||||||||||||||||||||||||||||
Income (loss) from operations | 8,708 | 3 | % | (11,057) | (4) | % | 19,765 | * | ||||||||||||||||||||||||||||||
Other expense, net | (6,664) | (2) | % | (7,935) | (3) | % | 1,271 | 16 | % | |||||||||||||||||||||||||||||
Income (loss) before income tax provision | 2,044 | 1 | % | (18,992) | (6) | % | 21,036 | 111 | % | |||||||||||||||||||||||||||||
Income tax provision | 1,505 | — | % | 23,769 | 8 | % | (22,264) | (94) | % | |||||||||||||||||||||||||||||
Net income (loss) | 539 | — | % | (42,761) | (14) | % | 43,300 | 101 | % | |||||||||||||||||||||||||||||
Add: Net loss attributable to non-controlling interest | 1,974 | 1 | % | 1,533 | 1 | % | 441 | 29 | % | |||||||||||||||||||||||||||||
Net income (loss) attributable to Envestnet, Inc. | $ | 2,513 | 1 | % | $ | (41,228) | (14) | % | $ | 43,741 | 106 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | $ Change | % Change | |||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||
Asset-based | $ | 202,616 | 70 | % | $ | 176,932 | 68 | % | $ | 25,684 | 15 | % | ||||||||||||||||||||||||||
Subscription-based | 84,168 | 29 | % | 80,470 | 31 | % | 3,698 | 5 | % | |||||||||||||||||||||||||||||
Total recurring revenue | 286,784 | 99 | % | 257,402 | 99 | % | 29,382 | 11 | % | |||||||||||||||||||||||||||||
Professional services and other revenue | 3,026 | 1 | % | 3,247 | 1 | % | (221) | (7) | % | |||||||||||||||||||||||||||||
Total revenue | 289,810 | 100 | % | 260,649 | 100 | % | 29,161 | 11 | % | |||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Direct expense | 119,834 | 41 | % | 104,405 | 40 | % | 15,429 | 15 | % | |||||||||||||||||||||||||||||
Employee compensation | 75,196 | 26 | % | 79,047 | 30 | % | (3,851) | (5) | % | |||||||||||||||||||||||||||||
General and administrative | 29,032 | 10 | % | 29,107 | 11 | % | (75) | — | % | |||||||||||||||||||||||||||||
Depreciation and amortization | 26,818 | 9 | % | 25,492 | 10 | % | 1,326 | 5 | % | |||||||||||||||||||||||||||||
Total operating expenses | 250,880 | 87 | % | 238,051 | 91 | % | 12,829 | 5 | % | |||||||||||||||||||||||||||||
Income from operations | $ | 38,930 | 13 | % | $ | 22,598 | 9 | % | $ | 16,332 | 72 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | $ Change | % Change | |||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||
Subscription-based | $ | 33,294 | 95 | % | $ | 36,609 | 96 | % | $ | (3,315) | (9) | % | ||||||||||||||||||||||||||
Professional services and other revenue | 1,846 | 5 | % | 1,449 | 4 | % | 397 | 27 | % | |||||||||||||||||||||||||||||
Total revenue | 35,140 | 100 | % | 38,058 | 100 | % | (2,918) | (8) | % | |||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Direct expense | 6,799 | 19 | % | 5,274 | 14 | % | 1,525 | 29 | % | |||||||||||||||||||||||||||||
Employee compensation | 11,692 | 33 | % | 19,242 | 51 | % | (7,550) | (39) | % | |||||||||||||||||||||||||||||
General and administrative | 15,314 | 44 | % | 14,429 | 38 | % | 885 | 6 | % | |||||||||||||||||||||||||||||
Depreciation and amortization | 7,074 | 20 | % | 6,028 | 16 | % | 1,046 | 17 | % | |||||||||||||||||||||||||||||
Total operating expenses | 40,879 | 116 | % | 44,973 | 118 | % | (4,094) | (9) | % | |||||||||||||||||||||||||||||
Loss from operations | $ | (5,739) | (16) | % | $ | (6,915) | (18) | % | $ | 1,176 | 17 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | |||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Employee compensation | $ | 16,764 | $ | 15,926 | $ | 838 | 5 | % | ||||||||||||||||||
General and administrative | 7,719 | 10,814 | (3,095) | (29) | % | |||||||||||||||||||||
Nonsegment operating expenses | $ | 24,483 | $ | 26,740 | $ | (2,257) | (8) | % |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Net income (loss) | $ | 539 | $ | (42,761) | ||||||||||
Add (deduct): | ||||||||||||||
Deferred revenue fair value adjustment (1) | — | 52 | ||||||||||||
Interest income | (1,983) | (1,358) | ||||||||||||
Interest expense | 6,089 | 6,320 | ||||||||||||
Income tax provision (2)(3) | 1,505 | 23,769 | ||||||||||||
Depreciation and amortization | 33,892 | 31,520 | ||||||||||||
Non-cash compensation expense (4) | 18,898 | 19,453 | ||||||||||||
Restructuring charges and transaction costs (5) | 2,056 | 4,163 | ||||||||||||
Severance expense (6) | 3,425 | 6,188 | ||||||||||||
Litigation, regulatory and other governance related expenses (7) | 2,288 | 3,074 | ||||||||||||
Foreign currency (8) | 275 | 33 | ||||||||||||
Non-income tax expense adjustment (9) | (49) | (168) | ||||||||||||
Loss allocations from equity method investments (10) | 2,283 | 2,940 | ||||||||||||
Loss attributable to non-controlling interest (11) | 1,160 | 778 | ||||||||||||
Adjusted EBITDA | $ | 70,378 | $ | 54,003 |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands, except share and per share information) | ||||||||||||||
Net income (loss) | $ | 539 | $ | (42,761) | ||||||||||
Income tax provision (2)(3) | 1,505 | 23,769 | ||||||||||||
Income (loss) before income tax provision | 2,044 | (18,992) | ||||||||||||
Add (deduct): | ||||||||||||||
Deferred revenue fair value adjustment (1) | — | 52 | ||||||||||||
Non-cash interest expense (12) | 1,405 | 1,442 | ||||||||||||
Cash interest - Convertible Notes (13) | 4,369 | 4,565 | ||||||||||||
Amortization of acquired intangibles (14) | 14,742 | 16,940 | ||||||||||||
Non-cash compensation expense (4) | 18,898 | 19,453 | ||||||||||||
Restructuring charges and transaction costs (5) | 2,056 | 4,163 | ||||||||||||
Severance expense (6) | 3,425 | 6,188 | ||||||||||||
Litigation, regulatory and other governance related expenses (7) | 2,288 | 3,074 | ||||||||||||
Foreign currency (8) | 275 | 33 | ||||||||||||
Non-income tax expense adjustment (9) | (49) | (168) | ||||||||||||
Loss allocations from equity method investments (10) | 2,283 | 2,940 | ||||||||||||
Loss attributable to non-controlling interest (11) | 1,160 | 778 | ||||||||||||
Adjusted net income before income tax effect | 52,896 | 40,468 | ||||||||||||
Income tax effect (15) | (13,489) | (10,319) | ||||||||||||
Adjusted net income | $ | 39,407 | $ | 30,149 | ||||||||||
Basic number of weighted average shares outstanding | 54,884,074 | 54,143,259 | ||||||||||||
Effect of dilutive shares: | ||||||||||||||
Convertible Notes | 10,811,884 | 11,470,645 | ||||||||||||
Non-vested RSUs and PSUs | 473,738 | 463,719 | ||||||||||||
Options to purchase common stock | 27,254 | 88,323 | ||||||||||||
Diluted number of weighted average shares outstanding | 66,196,950 | 66,165,946 | ||||||||||||
Adjusted net income per diluted share | $ | 0.60 | $ | 0.46 |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,944 | $ | (33,673) | ||||||||||
Less: Purchases of property and equipment | (1,900) | (4,402) | ||||||||||||
Less: Capitalization of internally developed software | (19,953) | (23,664) | ||||||||||||
Free cash flow | $ | (19,909) | $ | (61,739) |
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||
Envestnet Wealth Solutions | Envestnet Data & Analytics | Nonsegment | Total | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Income (loss) from operations | $ | 38,930 | $ | (5,739) | $ | (24,483) | $ | 8,708 | ||||||||||||||||||
Add (deduct): | ||||||||||||||||||||||||||
Depreciation and amortization | 26,818 | 7,074 | — | 33,892 | ||||||||||||||||||||||
Non-cash compensation expense (4) | 11,387 | 1,864 | 5,647 | 18,898 | ||||||||||||||||||||||
Restructuring charges and transaction costs (5) | 43 | 679 | 1,334 | 2,056 | ||||||||||||||||||||||
Severance expense (6) | 1,804 | 13 | 1,608 | 3,425 | ||||||||||||||||||||||
Litigation, regulatory and other governance related expenses (7) | — | 2,288 | — | 2,288 | ||||||||||||||||||||||
Non-income tax expense adjustment (9) | (49) | — | — | (49) | ||||||||||||||||||||||
Loss attributable to non-controlling interest (11) | 1,160 | — | — | 1,160 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 80,093 | $ | 6,179 | $ | (15,894) | $ | 70,378 |
Three months ended March 31, 2023 | ||||||||||||||||||||||||||
Envestnet Wealth Solutions | Envestnet Data & Analytics | Nonsegment | Total | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Income (loss) from operations | $ | 22,598 | $ | (6,915) | $ | (26,740) | $ | (11,057) | ||||||||||||||||||
Add: | ||||||||||||||||||||||||||
Deferred revenue fair value adjustment (1) | 52 | — | — | 52 | ||||||||||||||||||||||
Depreciation and amortization | 25,492 | 6,028 | — | 31,520 | ||||||||||||||||||||||
Non-cash compensation expense (4) | 11,467 | 2,437 | 5,549 | 19,453 | ||||||||||||||||||||||
Restructuring charges and transaction costs (5) | 1,139 | 243 | 2,781 | 4,163 | ||||||||||||||||||||||
Severance expense (6) | 3,799 | 2,205 | 184 | 6,188 | ||||||||||||||||||||||
Litigation, regulatory and other governance related expenses (7) | — | 1,324 | 1,750 | 3,074 | ||||||||||||||||||||||
Non-income tax expense adjustment (9) | (102) | (66) | — | (168) | ||||||||||||||||||||||
Loss attributable to non-controlling interest (11) | 778 | — | — | 778 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 65,223 | $ | 5,256 | $ | (16,476) | $ | 54,003 |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Net cash provided by (used in) operating activities | $ | 1,944 | $ | (33,673) | ||||||||||
Net cash used in investing activities | (24,658) | (58,756) | ||||||||||||
Net cash provided by (used in) financing activities | 3,637 | (20,660) | ||||||||||||
Effect of exchange rate on changes on cash | (2) | 3,580 | ||||||||||||
Net change in cash and cash equivalents due to cash reclassified to assets held for deconsolidation | (11,073) | — | ||||||||||||
Net change in cash and cash equivalents | $ | (30,152) | $ | (109,509) |
Exhibit No. | Description | |||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 (1) | ||||||||
32.2 (1) | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document ** | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document ** | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document ** | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document ** | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document ** | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Abbreviations or Acronyms | Definition | |||||||
2010 Plan | 2010 Long-Term Incentive Plan | |||||||
2019 Equity Plan | 2019 Acquisition Equity Incentive Plan | |||||||
AETR | Annual effective tax rate | |||||||
Annual Report | Form 10-K for the year ended December 31, 2023 | |||||||
ASC | Accounting Standards Codification™ | |||||||
ASC 310 | Accounting Standards Codification Topic 310, Receivables | |||||||
ASC 606 | Accounting Standards Codification Topic 606, Revenue from Contracts with Customers | |||||||
ASC 740-270 | Accounting Standards Codification Topic 740, Income Taxes—Interim Reporting | |||||||
ASC 842 | Accounting Standards Codification Topic 842, Leases | |||||||
ASU | Accounting Standards Update | |||||||
Board | Board of Directors | |||||||
Company | Envestnet, Inc. and its subsidiaries | |||||||
Convertible Notes due 2023 | $45.0 million of remaining aggregate principal amount of convertible notes with an interest rate of 1.75% per year that matured and were settled on June 1, 2023. | |||||||
Convertible Notes due 2025 | $317.5 million of remaining aggregate principal amount of convertible notes with an interest rate of 0.75% per year that mature on August 15, 2025. | |||||||
Convertible Notes due 2027 | $575.0 million aggregate principal amount of convertible notes with an interest rate of 2.625% per year that mature on December 1, 2027. | |||||||
Envestnet | Envestnet, Inc. | |||||||
ETR | Effective tax rate | |||||||
Exchange Act | Securities Exchange Act of 1934, as amended | |||||||
FASB | Financial Accounting Standards Board | |||||||
FinancialApps | FinancialApps, LLC | |||||||
FinTech | Financial Technology | |||||||
GAAP | United States Generally Accepted Accounting Principles | |||||||
IRC Section 174 | Internal Revenue Code of 1986, Section 174: Amortization of Research and Experimental Expenditures | |||||||
Convertible Notes | Collectively the Convertible Notes due 2023, Convertible Notes due 2025 and Convertible Notes due 2027 | |||||||
PSU | Performance-based restricted stock unit | |||||||
Quarterly Report | Form 10-Q for the quarter ended March 31, 2024 | |||||||
R&D | Research and Development. | |||||||
Redi2 | Redi2 Technologies Inc. | |||||||
Redi2 acquisition | Stock purchase agreement between Envestnet and Redi2 Technologies, dated as of June 24, 2022 | |||||||
Revolving Credit Facility | Revolving credit facility of $500.0 million pursuant to the Third Amended and Restated Credit Agreement | |||||||
RIAs | Registered investment advisors | |||||||
RSU | Restricted stock unit | |||||||
SEC | Securities and Exchange Commission | |||||||
TCS | Tata Consultancy Services | |||||||
Truelytics | Truelytics, Inc. | |||||||
U.S. | United States | |||||||
Waiver | Waiver with respect to the Revolving Credit Facility | |||||||
Yodlee | Yodlee, Inc. |
ENVESTNET, INC. | ||||||||
Date: May 8, 2024 | By: | /s/ James L. Fox | ||||||
James L. Fox | ||||||||
Interim Chief Executive Officer | ||||||||
Principal Executive Officer | ||||||||
Date: May 8, 2024 | By: | /s/ Joshua B. Warren | ||||||
Joshua B. Warren | ||||||||
Chief Financial Officer | ||||||||
Principal Financial Officer | ||||||||
Date: May 8, 2024 | By: | /s/ Matthew J. Majoros | ||||||
Matthew J. Majoros | ||||||||
Senior Vice President, Financial Reporting | ||||||||
Principal Accounting Officer |
Date: May 8, 2024 | /s/ James L. Fox | ||||
James L. Fox | |||||
Interim Chief Executive Officer | |||||
(Principal Executive Officer) |
Date: May 8, 2024 | /s/ Joshua B. Warren | ||||
Joshua B. Warren | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
/s/ James L. Fox | ||
By: James L. Fox | ||
Interim Chief Executive Officer | ||
(Principal Executive Officer) | ||
Dated: May 8, 2024 |
/s/ Joshua B. Warren | ||
By: Joshua B. Warren | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
Dated: May 8, 2024 |
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end
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
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) | 71,633,071 | 71,129,801 |
Common stock, shares outstanding (in shares) | 55,099,000 | 54,773,662 |
Treasury stock (in shares) | 16,534,071 | 16,356,139 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) attributable to Envestnet, Inc. | $ 2,513 | $ (41,228) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | (4) | 4,277 |
Total other comprehensive income (loss), net of tax | (4) | 4,277 |
Comprehensive income (loss) attributable to Envestnet, Inc. | $ 2,509 | $ (36,951) |
Organization and Description of Business |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Envestnet, through its subsidiaries, 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 is a leader in helping transform wealth management, working towards its goal of expanding a holistic financial wellness ecosystem so that its clients can better serve their clients. Envestnet is organized around two business segments based on clients served and products provided to meet those needs. Financial information about each business segment is contained in “Note 18—Segment Information” to the condensed consolidated financial statements and is described in detail within the Company's Annual Report. For a summary of commonly used industry terms and abbreviations used in this Quarterly Report, see the Glossary of Terms.
|
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 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 the Company's audited consolidated financial statements for the year ended December 31, 2023 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, 2024 and 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 revenue 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, 2024 are not necessarily indicative of the results of operations 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 SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. References to GAAP in these notes are to the FASB ASC and ASUs. 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, filed with the SEC on February 28, 2024. Segment Reporting On October 1, 2023, the Company changed the composition of its reportable segments to reflect the way that the Company's chief operating decision maker reviews the operating results, assesses performance and allocates resources. All segment information presented within this Quarterly Report is presented in conjunction with the current organizational structure, with prior periods adjusted accordingly. Correction of Immaterial Error During the fourth quarter of 2023, the Company identified that the arrangement with a third-party for the use of cloud hosted virtual servers which was previously accounted for as a finance lease transaction and included as a component of property and equipment, net in the condensed consolidated balance sheets should have been recognized as a prepayment included within prepaid expenses and other current assets and other assets in the condensed consolidated balance sheets. The Company concluded that the classification of these transactions was immaterial in prior period financial statements and that amendment of previously filed reports was not required. However, the Company corrected this immaterial error in the prior period reported within this Quarterly Report. In the condensed consolidated statements of operations for the three months ended March 31, 2023, these adjustments resulted in an increase in direct expense of $0.7 million, an increase in general and administrative expense of $0.7 million and a corresponding decrease in depreciation and amortization expense of $1.4 million. In the condensed consolidated statements of cash flows for the three months ended March 31, 2023, these adjustments resulted in a decrease in net cash provided by operating activities of $0.2 million and a corresponding decrease in net cash used in financing activities of $0.2 million. Assets and Liabilities Held for Sale Assets and the related liabilities are classified as held for sale in the period in which all of the following criteria are met: management commits to a plan of sale, the assets are available for immediate sale, an active program to locate a buyer has been initiated, the assets are actively marketed at a reasonable price, the sale is probable within one year and significant changes to the plan are unlikely. Assets and liabilities classified as held for sale are presented separately in the condensed consolidated balance sheets at the lower of their carrying amount and fair value, less costs to sell for each reporting period they meet the held for sale criteria. Depreciation and amortization expense is not recognized on long-lived assets once they are classified as assets held for sale. Unless otherwise specified, the amounts and information presented in the notes do not include assets and liabilities classified as held for sale as of March 31, 2024. See "Note 3— Assets and Liabilities Held for Deconsolidation" for additional information. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from these estimates under different assumptions or conditions. Reclassifications Certain amounts in the condensed consolidated statements of cash flows for the three months ended March 31, 2023 have been reclassified to conform to the current period presentation. These reclassifications did not change the previously reported net change in cash and cash equivalents and did not affect the condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statements of comprehensive income (loss) or condensed consolidated statements of stockholders' equity. Related Party Transactions The Company has an approximate 3.7% 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. Revenue from the private services company totaled $2.6 million and $3.6 million in the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, the Company recorded a net receivable from the private services company of $0.7 million and $1.7 million, respectively. Recently Adopted Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements.” This update amends ASC 842 and the accounting for leasehold improvements associated with common control leases. The Company adopted this standard as of January 1, 2024 and it did not have a material impact on the Company's consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This update amends the requirements for segment disclosures. This standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the standard is permitted. The Company is analyzing the impact of the adoption, but does not expect it to have a material impact on the Company's consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This update amends the requirements for income tax disclosures. This standard is effective for fiscal years beginning after December 15, 2024. Early adoption of the standard is permitted. The Company is analyzing the impact of the adoption, but does not expect it to have a material impact on the Company's consolidated financial statements. In March 2024, the FASB issued ASU 2024-01, "Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards." This update clarifies how to account for profits interest and similar awards. This standard is effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption of the standard is permitted. The Company is analyzing the impact of the adoption, but does not expect it to have a material impact on the Company's consolidated financial statements. In March 2024, the SEC adopted “The Enhancement and Standardization of Climate-Related Disclosures for Investors” that requires public companies to disclose information about the material impacts of climate-related risks on their business, financial condition and governance. These rules are effective, pending judicial review, starting with fiscal year 2025. The Company is analyzing the impact of these rules and has not yet determined the impact on the Company's consolidated financial statements and related disclosures.
|
Assets and Liabilities Held for Deconsolidation |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Held for Deconsolidation | Assets and Liabilities Held for Deconsolidation As of March 31, 2024, the Company held a controlling financial interest in a private company due to its majority representation on the company’s board and, as such, used the consolidation method of accounting to include the private company’s assets, liabilities and results of operations within the Envestnet Wealth Solutions segment of the Company’s condensed consolidated financial statements. During the three months ended March 31, 2024, this private company entered into an amended operating agreement with its members which will result in Envestnet no longer having majority representation of the company's board and therefore no longer holding a controlling financial interest in the private company as of April 1, 2024. Upon no longer having controlling financial interest, Envestnet will deconsolidate the private company's assets, liabilities and results of operations. This transaction qualifies for fair value measurement which results in it being considered a sale. This plan of sale meets the held for sale criteria as of March 31, 2024 and therefore the assets and related liabilities of this private company were classified as held for deconsolidation in the Company's condensed consolidated balance sheets as of March 31, 2024. Assets and liabilities held for deconsolidation consisted of the following:
__________________________________________________________ (1) The assignment of goodwill was based on the relative fair value of the private company and the Envestnet Wealth Solutions reporting unit prior to the private company being classified as held for deconsolidation. Effective April 1, 2024, the Company no longer had a controlling financial interest in the private company which will result in the derecognition of the carrying amount of the noncontrolling interest as of April 1, 2024, the derecognition of the above assets and liabilities held for deconsolidation and which may result in the recognition of a gain during the three months ended June 30, 2024. This transaction does not represent a strategic shift and therefore does not meet the criteria to be classified as discontinued operations. The Company will apply the equity method to account for its noncontrolling investment in this private company starting April 1, 2024.
|
Prepaid Expenses and Other Current Assets |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Internally Developed Software, Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and Development [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internally Developed Software, Net | Internally Developed Software, Net Internally developed software, net consisted of the following:
|
Geographical Information |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
See “Note 14—Revenue and Direct Expense” for detail of revenue by geographic area.
|
Intangible Assets, Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net | Intangible Assets, Net Intangible assets, net consisted of the following:
During the three months ended March 31, 2024 and 2023, the Company retired fully amortized intangible assets with historical costs of $16.4 million and $17.5 million, respectively. The estimated future amortization expense of the Company's intangible assets as of March 31, 2024 was as follows (in thousands):
|
Depreciation and Amortization Expense |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and Amortization Expense | Depreciation and Amortization Expense Depreciation and amortization expense consisted of the following:
|
Goodwill |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill Changes in the carrying amount of goodwill by reportable segment were as follows:
__________________________________________________________ (1) The reclassification of goodwill to assets held for deconsolidation was considered an event or change in circumstance which required goodwill to be tested for impairment as of March 31, 2024. A qualitative assessment was performed and it was determined that it was not more likely than not that the carrying value of the reporting unit exceeded its fair value and therefore a quantitative goodwill impairment evaluation was not required and no impairment was recorded.
|
Other Assets |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets On January 31, 2023, the Company entered into a Convertible Promissory Note with a customer of the Company's business, a privately held company, whereby the Company was issued a convertible promissory note with a principal amount of $20.0 million and a stated interest rate of 8.0% per annum. The Convertible Promissory Note has a maturity date of January 31, 2026 and is convertible into common stock or preferred stock of the privately held company upon qualified financing events or corporate transactions. During the three months ended March 31, 2024 and 2023, interest income related to the Convertible Promissory Note included in other expense, net in the condensed consolidated statements of operations was $0.4 million and $0.3 million, respectively. The Company accounts for this Convertible Promissory Note as a loan receivable in accordance with ASC 310 as it is not a security and includes it in other assets in the condensed consolidated balance sheets. Credit impairment is measured as the difference between this loan receivable’s amortized cost and its estimated recoverable value, which is the present value of its expected future cash flows discounted at the effective interest rate. There was no impairment for this investment during the three months ended March 31, 2024.
|
Accounts Payable, Accrued Expenses and Other Current Liabilities |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable, Accrued Expenses and Other Current Liabilities | Accounts Payable, Accrued Expenses and Other Current Liabilities Accounts payable, accrued expenses and other current liabilities consisted of the following:
As of March 31, 2024 the Company had an ending liability balance of $7.2 million primarily in connection with a reduction in force initiative that began during the first quarter of 2023. The Company anticipates approximately $4.6 million to be paid during the remainder of 2024, $1.7 million to be paid throughout 2025, with the remaining balance paid through 2030. The following table presents a reconciliation of the beginning and ending liability balance related to this effort, which is primarily included within accrued compensation and related taxes in the table above.
|
Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following tables set forth the carrying value and estimated fair value of the Company's debt obligations as of March 31, 2024 and December 31, 2023:
Revolving Credit Facility The Revolving Credit Facility provides for a $500.0 million revolving line of credit, including a sub-facility for a $20.0 million letter of credit. There were no amounts outstanding under the Revolving Credit Facility as of March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023, debt issuance costs related to the Revolving Credit Facility included in prepaid expenses and other current assets in the condensed consolidated balance sheets was $0.7 million and $0.7 million, respectively, and included in other assets in the condensed consolidated balance sheets was $1.3 million and $1.5 million, respectively. The Revolving Credit Facility 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 and a minimum interest coverage ratio. On February 20, 2024, the Company entered into a Waiver with respect to the Revolving Credit Facility, between the Company, the Guarantors party thereto from time to time, the Lenders party thereto from time to time and Bank of Montreal, as administrative agent. Under the Waiver, the Lenders party thereto waived the events of default resulting from the non-compliance with the Total Leverage Ratio financial covenant for the fiscal quarters ended on March 31, 2023 and June 30, 2023. The Company was in compliance with all other covenants in the Revolving Credit Facility as of March 31, 2024. Interest Expense Interest expense was comprised of the following and is included in other expense, net in the condensed consolidated statements of operations:
The effective interest rate of the Convertible Notes was equal to the stated interest rate plus the amortization of the debt issuance costs and is set forth below:
|
Fair Value Measurements |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The following tables set forth the Company's financial assets and liabilities measured at fair value on a recurring basis, based on the three-tier fair value hierarchy, as described in detail within the Company's Annual Report:
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 cause 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, 2024. Fair Value of Assets Used to Fund the 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):
The fair market value of the assets used to fund the Company's deferred compensation liability is measured using the cash surrender value of the Company's life insurance premiums and is included in other assets in the condensed consolidated balance sheets. Changes in fair value, if any, are recognized in the Company's earnings and included in in the condensed consolidated statements of operations. Fair Value of Debt Agreements The Company considered its Convertible Notes to be Level II liabilities as of March 31, 2024 and December 31, 2023, 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, 2024 and December 31, 2023, respectively (See “Note 12—Debt”). 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 as of March 31, 2024 and December 31, 2023, based upon the short-term nature of these assets and liabilities.
|
Revenue and Direct Expense |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue and Direct Expense | Revenue and Direct Expense Disaggregation of Revenue The following table presents the Company’s revenue by segment disaggregated by major source:
The following table presents the Company’s revenue disaggregated by geography, based on the billing address of the customer:
Remaining Performance Obligations As of March 31, 2024, the Company's estimated revenue expected to be recognized in the future related to performance obligations associated with existing customer contracts that are partially or wholly unsatisfied is approximately $554.5 million. The Company expects to recognize approximately 31% of this revenue during the remainder of 2024, approximately 50% throughout 2025 and 2026, with the balance recognized thereafter. These remaining performance obligations are not indicative of revenue for future periods. Contract Balances Total deferred revenue as of March 31, 2024 decreased by $4.1 million from December 31, 2023, primarily the result of timing of cash receipts and revenue recognition. The majority of the Company's deferred revenue as of March 31, 2024 will be recognized over the course of the next twelve months. The amount of revenue recognized for the three months ended March 31, 2024 and 2023 that was included in the opening deferred revenue balance was $15.9 million and $16.8 million, 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 $11.3 million and $11.5 million as of March 31, 2024 and December 31, 2023, respectively. Amortization expense for deferred sales incentive compensation was $1.2 million and $1.1 million for the three months ended March 31, 2024 and 2023, respectively. Deferred sales incentive compensation is included in other assets in the condensed consolidated balance sheets and amortization expense is included in employee compensation expense in the condensed consolidated statements of operations. No significant impairment loss for capitalized costs was recorded during the three months ended March 31, 2024 and 2023. Direct Expense The following table summarizes direct expense by revenue category:
|
Stock-Based Compensation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company has stock options, RSUs and PSUs outstanding under the 2010 Plan and the 2019 Equity Plan. As of March 31, 2024, the maximum number of common shares available for future issuance under the Company's plans is 654,040. Stock-based compensation expense under the Company’s plans was as follows:
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, 2024 and 2023. Stock Options The following table summarizes option activity under the Company’s plans:
As of March 31, 2024, there was no amount of unrecognized stock-based compensation expense related to stock options. Restricted Stock Units and Performance Stock Units The following table summarizes RSU and PSU activity under the Company’s plans:
As of March 31, 2024, there was $112.4 million of unrecognized stock-based compensation expense related to RSUs, which the Company expects to recognize over a weighted-average period of 2.1 years. As of March 31, 2024, there was $4.0 million of unrecognized stock-based compensation expense related to PSUs, which the Company expects to recognize over a weighted-average period of 2.1 years.
|
Income Taxes |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The following table includes the Company’s income (loss) before income tax provision, income tax provision and effective tax rate:
Under ASC 740-270-25, the Company is required to report income tax expense by applying a projected AETR to ordinary pre-tax book income for the interim period. The tax impact of discrete items is accounted for separately in the period in which they occur. The ETR for the quarter is the result of the projected AETR applied to actual pre-tax book income plus discrete items as a percentage of pre-tax book income. Therefore, a change in pre-tax book income, either forecasted or actual year-to-date, from one period to the next will cause the ETR to change. For the three months ended March 31, 2024 and March 31, 2023, 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, uncertain tax positions and the impact of state and local taxes offset by federal and state R&D credits.
|
Net Income (Loss) Per Share |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Per Share | Net Income (Loss) Per Share The following table provides the numerators and denominators used in computing basic and diluted net income (loss) attributable to Envestnet, Inc., per share:
Securities that were anti-dilutive and therefore excluded from the computation of diluted net income (loss) per share were as follows:
|
Segment Information |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Envestnet is organized around two business segments based on clients served and products provided to meet those needs. The Company's business segments are: •Envestnet Wealth Solutions – a leading provider of comprehensive and unified wealth management software, services and solutions to empower financial advisors and institutions to enable them to deliver holistic advice to their clients. •Envestnet Data & Analytics – a leading provider of financial data aggregation, analytics and digital experiences to meet the needs of financial institutions, enterprise FinTech firms and market investment research firms worldwide. The Company also incurs expenses not directly attributable to the segments listed above. These nonsegment operating expenses primarily consist of employee compensation for certain corporate officers, certain types of professional service expenses, insurance, acquisition related transaction costs, certain restructuring charges and other non-recurring and/or non-operationally related expenses. See “Note 14—Revenue and Direct Expense” for detail of revenue by segment. The following table presents a reconciliation from income (loss) from operations by segment to consolidated net income (loss) attributable to Envestnet, Inc.:
The following table presents a summary of consolidated total assets by segment:
|
Commitments and Contingencies |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. In connection with the Redi2 acquisition, the Company has agreed to pay up to $20.0 million in performance bonuses based upon the achievement of certain performance targets. These performance bonuses will be recognized as employee compensation in the condensed consolidated statements of operations. The amount recognized during the three months ended March 31, 2024 and 2023, as well as the liability as of March 31, 2024, associated with these performance bonuses were immaterial. Legal Proceedings The Company and its subsidiary, Yodlee, have been named as defendants in a lawsuit filed on July 17, 2019, by 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' 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' 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 concluded on September 30, 2022. The parties’ respective summary judgment and motions to exclude the presentation of expert testimony (a “Daubert Motion”) are fully briefed and are awaiting final ruling. On July 25, 2023, the Magistrate Judge issued a report and recommendation that the Court grant FinancialApps’ summary judgment motion on Envestnet’s defamation counterclaim. The Magistrate Judge did not make a ruling as to Yodlee’s defamation counterclaim. On July 28, 2023, the Magistrate Judge denied Envestnet and Yodlee's Daubert motion to exclude FinancialApps' technical expert, Isaac Pflaum. On July 31, 2023, the Magistrate Judge issued a report and recommendation that the Court grant in part and deny in part Envestnet's summary judgment motion. The Magistrate Judge recommended that the motion be denied as to FinancialApps' vicarious liability theory and direct liability theory but recommended that the motion be granted with respect to the unjust enrichment count. The reports and recommendations are not final rulings, however, and the Company has filed objections against their adoption by the District Court. Those objections are fully briefed and pending before the District Court. On August 14, 2023, the Magistrate Judge granted-in-part and denied-in-part FinancialApps' Daubert motion to exclude Envestnet and Yodlee's technical expert. On September 13, 2023, the Magistrate Judge granted-in-part and denied-in-part Envestnet and Yodlee's Daubert motion to exclude FinancialApps' damages expert. On January 18, 2024, FinancialApps filed a motion seeking sanctions for purported spoliation of evidence against Yodlee and Envestnet. Yodlee and Envestnet filed a brief opposing the motion on February 22, 2024. The motion is fully briefed and pending before the Magistrate Judge. The Company believes FinancialApps' allegations are without merit and will continue to defend the claims against it and litigate the counterclaims vigorously. The Company and Yodlee were 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 currently is Clark, et al., v. Yodlee, Inc. Case No. 3:20-cv-5991-SK (formerly entitled Deborah Wesch, et al., v. Yodlee, Inc., et al., Case No. 3:20-cv-05991-SK). Plaintiffs alleged that Yodlee unlawfully collected their financial transaction data when plaintiffs linked their bank accounts to a mobile application that uses Yodlee’s Instant Account Verification API, and plaintiffs further allege that Yodlee unlawfully sold the transaction data to third parties. The complaint alleged 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. 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. On October 8, 2021, Yodlee filed an early motion for summary judgment. On August 12, 2022, Plaintiffs moved for leave to file a third amended complaint, which Yodlee opposed. On September 29, 2022, the Court denied Plaintiffs’ motion to amend the complaint. On December 13, 2022, the Court granted in part and denied in part Yodlee’s early motion for summary judgment, narrowing the scope of issues that remain to be resolved. On January 30, 2023, the Court granted Yodlee’s motion for reconsideration and dismissed one additional claim. Plaintiffs filed an amended complaint on September 19, 2023, which Yodlee answered on October 3, 2023. Yodlee believes the allegations are without merit and will continue to vigorously defend the remaining 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, 2024. 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.
|
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 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 the Company's audited consolidated financial statements for the year ended December 31, 2023 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, 2024 and 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 revenue 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.
|
Segment Reporting | Segment Reporting On October 1, 2023, the Company changed the composition of its reportable segments to reflect the way that the Company's chief operating decision maker reviews the operating results, assesses performance and allocates resources. All segment information presented within this Quarterly Report is presented in conjunction with the current organizational structure, with prior periods adjusted accordingly.
|
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale Assets and the related liabilities are classified as held for sale in the period in which all of the following criteria are met: management commits to a plan of sale, the assets are available for immediate sale, an active program to locate a buyer has been initiated, the assets are actively marketed at a reasonable price, the sale is probable within one year and significant changes to the plan are unlikely. Assets and liabilities classified as held for sale are presented separately in the condensed consolidated balance sheets at the lower of their carrying amount and fair value, less costs to sell for each reporting period they meet the held for sale criteria. Depreciation and amortization expense is not recognized on long-lived assets once they are classified as assets held for sale. Unless otherwise specified, the amounts and information presented in the notes do not include assets and liabilities classified as held for sale as of March 31, 2024. See "Note 3— Assets and Liabilities Held for Deconsolidation" for additional information.
|
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from these estimates under different assumptions or conditions.
|
Reclassifications | Reclassifications Certain amounts in the condensed consolidated statements of cash flows for the three months ended March 31, 2023 have been reclassified to conform to the current period presentation. These reclassifications did not change the previously reported net change in cash and cash equivalents and did not affect the condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statements of comprehensive income (loss) or condensed consolidated statements of stockholders' equity.
|
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements.” This update amends ASC 842 and the accounting for leasehold improvements associated with common control leases. The Company adopted this standard as of January 1, 2024 and it did not have a material impact on the Company's consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This update amends the requirements for segment disclosures. This standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the standard is permitted. The Company is analyzing the impact of the adoption, but does not expect it to have a material impact on the Company's consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This update amends the requirements for income tax disclosures. This standard is effective for fiscal years beginning after December 15, 2024. Early adoption of the standard is permitted. The Company is analyzing the impact of the adoption, but does not expect it to have a material impact on the Company's consolidated financial statements. In March 2024, the FASB issued ASU 2024-01, "Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards." This update clarifies how to account for profits interest and similar awards. This standard is effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption of the standard is permitted. The Company is analyzing the impact of the adoption, but does not expect it to have a material impact on the Company's consolidated financial statements. In March 2024, the SEC adopted “The Enhancement and Standardization of Climate-Related Disclosures for Investors” that requires public companies to disclose information about the material impacts of climate-related risks on their business, financial condition and governance. These rules are effective, pending judicial review, starting with fiscal year 2025. The Company is analyzing the impact of these rules and has not yet determined the impact on the Company's consolidated financial statements and related disclosures.
|
Assets and Liabilities Held for Deconsolidation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Held for Sale | Assets and liabilities held for deconsolidation consisted of the following:
__________________________________________________________ (1) The assignment of goodwill was based on the relative fair value of the private company and the Envestnet Wealth Solutions reporting unit prior to the private company being classified as held for deconsolidation.
|
Prepaid Expenses and Other Current Assets (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Internally Developed Software, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and Development [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Internally Developed Software, Net | Internally developed software, net consisted of the following:
|
Geographical Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Intangible Assets, Net (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense of the Company's intangible assets as of March 31, 2024 was as follows (in thousands):
|
Depreciation and Amortization Expense (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Depreciation and Amortization Expense | Depreciation and amortization expense consisted of the following:
|
Goodwill (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill by Segment | Changes in the carrying amount of goodwill by reportable segment were as follows:
__________________________________________________________ (1) The reclassification of goodwill to assets held for deconsolidation was considered an event or change in circumstance which required goodwill to be tested for impairment as of March 31, 2024. A qualitative assessment was performed and it was determined that it was not more likely than not that the carrying value of the reporting unit exceeded its fair value and therefore a quantitative goodwill impairment evaluation was not required and no impairment was recorded.
|
Accounts Payable, Accrued Expenses and Other Current Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable, Accrued Expenses and Other Current Liabilities | Accounts payable, accrued expenses and other current liabilities consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | The following table presents a reconciliation of the beginning and ending liability balance related to this effort, which is primarily included within accrued compensation and related taxes in the table above.
|
Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Obligation | The following tables set forth the carrying value and estimated fair value of the Company's debt obligations as of March 31, 2024 and December 31, 2023:
The effective interest rate of the Convertible Notes was equal to the stated interest rate plus the amortization of the debt issuance costs and is set forth below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following tables set forth the Company's financial assets and liabilities measured at fair value on a recurring basis, based on the three-tier fair value hierarchy, as described in detail within the Company's Annual Report:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
|
Revenue and Direct Expense (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue by Major Source | The following table presents the Company’s revenue by segment disaggregated by major source:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue by Geography | The following table presents the Company’s revenue disaggregated by geography, based on the billing address of the customer:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Direct Expense by Revenue Category | The following table summarizes direct expense by revenue category:
|
Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense under the Company’s plans was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Option Activity under the Company's Plans | The following table summarizes option activity under the Company’s plans:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of RSU and PSU Activity | The following table summarizes RSU and PSU activity under the Company’s plans:
|
Income Taxes (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loss before Income Tax Provision (Benefit) | The following table includes the Company’s income (loss) before income tax provision, income tax provision and effective tax rate:
|
Net Income (Loss) Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) attributable to Envestnet, Inc., per share:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consolidated Total Assets | The following table presents a summary of consolidated total assets by segment:
|
Organization and Description of Business (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 2 |
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 324,950 | $ 298,707 | |
Fees receivable, net | 135,630 | $ 120,958 | |
Direct expense | 126,633 | 109,679 | |
General and administrative | 52,065 | 54,350 | |
Depreciation and amortization | (33,892) | (31,520) | |
Net cash provided by operating activities | (1,944) | 33,673 | |
Net cash used in financing activities | $ (3,637) | 20,660 | |
Revision of Prior Period, Error Correction, Adjustment | |||
Disaggregation of Revenue [Line Items] | |||
Direct expense | 700 | ||
General and administrative | 700 | ||
Depreciation and amortization | 1,400 | ||
Net cash provided by operating activities | 200 | ||
Net cash used in financing activities | 200 | ||
Private Services Company | |||
Disaggregation of Revenue [Line Items] | |||
Ownership percentage | 3.70% | ||
Private Services Company | Related Party | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 2,600 | $ 3,600 | |
Fees receivable, net | $ 700 | $ 1,700 |
Assets and Liabilities Held for Deconsolidation (Details) - Disposal Group, Not Discontinued Operations $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash and cash equivalents | $ 11,073 |
Fees receivable, net | 2,319 |
Prepaid expenses and other current assets | 513 |
Internally developed software, net | 14,090 |
Goodwill | 26,647 |
Other assets | 374 |
Total assets held for deconsolidation | 55,016 |
Accounts payable, accrued expenses and other current liabilities | 2,463 |
Deferred revenue | 5,085 |
Other liabilities | 1,450 |
Total liabilities held for deconsolidation | $ 8,998 |
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid technology | $ 17,275 | $ 14,630 |
Income tax prepayments and receivables | 8,441 | 9,625 |
Prepaid data servers | 7,147 | 7,991 |
Elevate Summit prepayments and deposits | 3,932 | 773 |
Non-income tax receivable | 3,507 | 4,041 |
Prepaid insurance | 1,113 | 2,785 |
Other | 11,915 | 11,627 |
Total prepaid expenses and other current assets | $ 53,330 | $ 51,472 |
Internally Developed Software, Net (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Internally developed software, net | $ 214,507 | $ 224,713 |
Internally developed software | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Internally developed software | $ 398,021 | 405,078 |
Less: accumulated amortization | (183,514) | (180,365) |
Internally developed software, net | $ 214,507 | $ 224,713 |
Geographical Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 261,363 | $ 272,936 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | 259,085 | 270,381 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 2,278 | $ 2,555 |
Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 696,458 | $ 712,838 |
Accumulated Amortization | (373,132) | (374,770) |
Net Carrying Amount | 323,326 | 338,068 |
Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 595,400 | 604,080 |
Accumulated Amortization | (328,293) | (327,042) |
Net Carrying Amount | 267,107 | 277,038 |
Proprietary technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 90,058 | 93,058 |
Accumulated Amortization | (38,476) | (37,052) |
Net Carrying Amount | 51,582 | 56,006 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,000 | 15,700 |
Accumulated Amortization | (6,363) | (10,676) |
Net Carrying Amount | $ 4,637 | $ 5,024 |
Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Envestnet Wealth Solutions | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost of fully amortized and retired assets | $ 16.4 | $ 17.5 |
Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Future amortization expense of the intangible assets | ||
Remainder of 2024 | $ 42,626 | |
2025 | 53,973 | |
2026 | 46,448 | |
2027 | 37,672 | |
2028 | 30,296 | |
Thereafter | 112,311 | |
Net Carrying Amount | $ 323,326 | $ 338,068 |
Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Property, Plant and Equipment [Abstract] | ||
Intangible asset amortization | $ 14,742 | $ 16,940 |
Internally developed software amortization | 15,868 | 11,090 |
Property and equipment depreciation | 3,282 | 3,490 |
Total depreciation and amortization | $ 33,892 | $ 31,520 |
Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Changes in the carrying amount of the Company's goodwill | |
Balance as of period start | $ 806,563 |
Goodwill reclassified to assets held for sale | (26,647) |
Balance as of period end | 779,916 |
Envestnet Wealth Solutions | |
Changes in the carrying amount of the Company's goodwill | |
Balance as of period start | 710,326 |
Goodwill reclassified to assets held for sale | (26,647) |
Balance as of period end | 683,679 |
Envestnet Data & Analytics | |
Changes in the carrying amount of the Company's goodwill | |
Balance as of period start | 96,237 |
Goodwill reclassified to assets held for sale | 0 |
Balance as of period end | $ 96,237 |
Other Assets (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Jan. 31, 2023 |
|
Other Asset [Line Items] | |||
Impairment of investments | $ 0.0 | ||
Notes Receivable | |||
Other Asset [Line Items] | |||
Receivable with imputed interest, face amount | $ 20.0 | ||
Interest rate | 8.00% | ||
Notes Receivable | Other Nonoperating Income (Expense) | |||
Other Asset [Line Items] | |||
Interest income | $ 0.4 | $ 0.3 |
Accounts Payable, Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued investment manager fees | $ 116,092 | $ 106,612 |
Accrued compensation and related taxes | 36,603 | 72,466 |
Accounts payable | 22,765 | 35,738 |
Accrued professional services | 10,482 | 14,289 |
Accrued interest | 5,648 | 2,473 |
Accrued technology | 4,349 | 4,151 |
Other accrued expenses | 5,187 | 5,695 |
Total accounts payable, accrued expenses and other current liabilities | $ 201,126 | $ 241,424 |
Accounts Payable, Accrued Expenses and Other Current Liabilities - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2024 |
Dec. 31, 2025 |
Dec. 31, 2023 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Accrued severance | $ 7,155 | $ 10,279 | ||
Cash payments | $ 6,549 | |||
Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cash payments | $ 4,600 | $ 1,700 |
Accounts Payable, Accrued Expenses and Other Current Liabilities - Restructuring and Related Costs (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 10,279 |
Severance expense | 3,425 |
Cash payments | (6,549) |
Ending balance | 7,155 |
Operating Segments | Envestnet Wealth Solutions | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 9,793 |
Severance expense | 1,804 |
Cash payments | (4,442) |
Ending balance | 7,155 |
Operating Segments | Envestnet Data & Analytics | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 486 |
Severance expense | 13 |
Cash payments | (499) |
Ending balance | 0 |
Nonsegment | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Severance expense | 1,608 |
Cash payments | (1,608) |
Ending balance | $ 0 |
Debt - Credit Agreement (Details) - Revolving Credit Facility - Line of Credit - USD ($) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Prepaid Expenses and Other Current Assets | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 700,000 | $ 700,000 |
Other Noncurrent Assets | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | 1,300,000 | 1,500,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility amount | 500,000,000 | |
Debt settlement amounts outstanding under the revolving credit facility | 0 | $ 0 |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Credit facility amount | $ 20,000,000 |
Debt - Interest Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Disclosure [Abstract] | ||
Convertible Notes interest | $ 4,369 | $ 4,565 |
Amortization of debt discount and issuance costs | 1,405 | 1,442 |
Undrawn and other fees | 315 | 313 |
Total interest expense | $ 6,089 | $ 6,320 |
Debt - Effective Interest Rate of Notes (Details) |
Mar. 31, 2024 |
Mar. 31, 2023 |
---|---|---|
Convertible Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 2.40% | |
Convertible Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 1.30% | 1.30% |
Convertible Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 3.20% | 3.20% |
Fair Value Measurements - Level III (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Fair Value of Assets Used to Fund Deferred Compensation Liability | |
Beginning balance | $ 10,961 |
Fair value adjustments and fees | 412 |
Ending balance | $ 11,373 |
Fair value, asset, recurring basis, unobservable input reconciliation, gain (loss), statement of income or comprehensive income [extensible enumeration] | General and administrative |
Revenue and Direct Expense - Obligation (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
---|---|
Remaining Performance Obligations | |
Remaining performance obligations | $ 554.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Remaining Performance Obligations | |
Revenue, remaining performance obligation, percentage | 31.00% |
Revenue recognition period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Remaining Performance Obligations | |
Revenue, remaining performance obligation, percentage | 50.00% |
Revenue recognition period | 1 year |
Revenue and Direct Expense - Narrative (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Revenue from Contract with Customer [Abstract] | |||
Decrease in contract with customer, liability | $ (4,100,000) | ||
Recognized deferred revenue | 15,900,000 | $ 16,800,000 | |
Deferred sales incentive compensation | 11,300,000 | $ 11,500,000 | |
Amortization expense for the deferred sales incentive compensation | 1,200,000 | 1,100,000 | |
Impairment loss for capitalized costs | $ 0 | $ 0 |
Revenue and Direct Expense - Direct Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Product Information [Line Items] | ||
Direct expense | $ 126,633 | $ 109,679 |
Asset-based | ||
Product Information [Line Items] | ||
Direct expense | 118,403 | 102,623 |
Subscription-based | ||
Product Information [Line Items] | ||
Direct expense | 8,230 | 7,052 |
Professional services and other | ||
Product Information [Line Items] | ||
Direct expense | $ 0 | $ 4 |
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Stock-Based compensation | ||
Maximum number of shares available for future issuance (in shares) | 654,040 | |
Statutory rate (as a percent) | 25.50% | 25.50% |
RSUs | ||
Stock-Based compensation | ||
Unrecognized compensation expense related to shares | $ 112.4 | |
Unrecognized compensation expense weighted-average recognition period | 2 years 1 month 6 days | |
PSUs | ||
Stock-Based compensation | ||
Unrecognized compensation expense related to shares | $ 4.0 | |
Unrecognized compensation expense weighted-average recognition period | 2 years 1 month 6 days |
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 18,898 | $ 19,453 |
Tax effect on stock-based compensation expense | (4,819) | (4,961) |
Net effect on income (loss) | $ 14,079 | $ 14,492 |
Stock-Based Compensation - Options (Details) - Options - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Options | ||
Outstanding at the beginning of the period (in shares) | 202,166 | |
Exercised (in shares) | (20,033) | |
Forfeited (in shares) | (186) | |
Outstanding at the end of the period (in shares) | 181,947 | |
Options exercisable (in shares) | 181,947 | |
Weighted-Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 45.22 | |
Exercised (in dollars per share) | 40.71 | |
Forfeited (in dollars per share) | 71.21 | |
Outstanding at the end of the period (in dollars per share) | 45.69 | |
Options exercisable (in dollars per share) | $ 45.69 | |
Weighted-Average Remaining Contractual Life | ||
Outstanding | 1 year 3 months 18 days | |
Options exercisable | 1 year 3 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding (in dollars) | $ 2,224 | |
Options exercisable (in dollars) | $ 2,224 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Income (loss) before income tax provision | $ 2,044 | $ (18,992) |
Income tax provision | $ 1,505 | $ 23,769 |
Effective tax rate | 73.60% | (125.20%) |
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, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share, Basic [Abstract] | ||
Net income (loss) attributable to Envestnet, Inc. | $ 2,513 | $ (41,228) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 54,884,074 | 54,143,259 |
Effect of dilutive shares: | ||
Diluted (in shares) | 55,385,066 | 54,143,259 |
Net income (loss) attributable to Envestnet, Inc., per share: | ||
Basic (in dollars per share) | $ 0.05 | $ (0.76) |
Diluted (in dollars per share) | $ 0.05 | $ (0.76) |
Non-vested RSUs and PSUs | ||
Effect of dilutive shares: | ||
Non-vested RSUs and PSUs and Options to purchase common stock (in shares) | 473,738 | 0 |
Options to purchase common stock | ||
Effect of dilutive shares: | ||
Non-vested RSUs and PSUs and Options to purchase common stock (in shares) | 27,254 | 0 |
Segment Information - Summary of Consolidated Total Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 1,864,045 | $ 1,877,252 |
Envestnet Wealth Solutions | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 1,550,105 | 1,562,600 |
Envestnet Data & Analytics | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 313,940 | $ 314,652 |
Commitments and Contingencies (Details) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Jan. 30, 2023
claim
|
Jul. 19, 2021
claim
|
Mar. 31, 2024
claim
|
Jul. 01, 2022
USD ($)
|
|
Other Commitments [Line Items] | ||||
Number of previous claims experienced | 0 | |||
Case No. 3:20-cv-05991-SK | ||||
Other Commitments [Line Items] | ||||
Claims dismissed | 1 | 2 | ||
Certain Executives | Redi Technologies acquisition | ||||
Other Commitments [Line Items] | ||||
Contingent consideration | $ | $ 20.0 |
PC71RC91W.V\!9W(5/.(_!VNZL=E7)$./,JLI*?P3;0R
M3A1W.WE3'<$JOQX,%ZC#.H5;HI5=HKC7^2!]R-=D*1/,+QT1N6*777;EVD><
M4Q@F6CDFBEN=YU"#$Y1S0MG/LU_(5/B9@DQ:(7&EL8QCF(BG6OK?SLB**[+F
M42;(C^ZYZ_;)"I:W^=K?6@FG<%*L S/21B=/V,TQ"%B<4H1*@'/?7=T')I$0\Y-R;#[9(
M:;$\NUCL.0"O'F7[6:V%T.C+IF[4]6RM]?;U8J&*M=AP=2FWHH%?5K+=< VW
M[<-";5O!RW[0IEY0C)/%AE?-;'G5?_>A75[)3M=5(SZT2'6;#6^?WHE:/E[/
MR.SYBX_5PUJ;+Q;+JRU_$'="_[[]T,+=8O!25AO1J$HVJ!6KZ]E;\OJ&I69
M;_%')1[5T34RH=Q+^=G #]U,&YX3ZOTCIT#%)G)**!&M]T).!O
MQ+=*P@+A+&IFEB7C0@;&\ZAMUDN^HL6(,.#Q<.=KLCZAZA;NH>*1>?\21 8D
M5&4]U&V&P_@6X80I[D LM57[F+'M3=]/P]YG;B',PG_,8^Y3N.&+MUUM?R\X
M#9_)W?;P8P.B6("D,+?G$!UM[^T,F D?\.'!Z=)_-,^TPR>XO\T$1\5I ][/
M->!5/Y"!]E>4DW\ 4$L#!!0 ( *6%J%@8&HKKG@8 %T1 9 >&PO
M=V]R:W-H965T L80^=#E84VA7B$?:'V3\AT?DXH_NZ
M1MHM*2=;I$H&PI^.>GZ'#DF8C^*>YA\=XPE,PXN+*7S]ZY]+V&,5'AVTKQKU
MQC=I SXC72<;5H=W8-FUOY_FW2-"];3A=&<%KLDU/I^, M!=8^XF5C6^&:Z4
MI=;JAQ6]9:B= >VOE;+[B0LPO(Z+'U!+ P04 " "EA:A8W+)7!AP# #1
M!@ &0 'AL+W=O OM ( @& 9
M >&PO=V]R:W-H965T=_$IZK7VFR$[8]2$])C%(K6 XY%$/K[2N\/6V3,&VO?' _1/?L@=>UV3^F
M*6>2B])I@\W,"T2LHT"'&,HP\LW;I.=P$N;P@ 7,G,T$L=L]0X%_&:3L^@'2P>!W8[5R*_YU'%]"
M3(@_(>L^[7Z -XN_.^N7QU_O 84K>M!:J26V@G(\' D7?Q$7WP3;\*_0%C8$
M6_/+M9)@<+3@X8B?J>4W=$#WL\2S_P%02P,$% @ I86H6%-C^$D>!0
M* T !D !X;"]W;W)K
7*V&:$3:M;99YD*^-554')@45
ME^V7/71YV &)F&
MV,LT_Q8Z4:"L[=L4?HM<7A;>"#\EO
]:Q/ ^2\%'6/(TB%B3T%*IKRXA_0QU;(Q\V*T&F]DKI1"LB!HGLD('Z
MFZ)>MMG6BP_G?XU*R+EK9D'4G]X'KKEM$$D0_B4.ZOI*R<_N[S5V#)>P