(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 | |
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Fees receivable, net | ||||||||
Prepaid expenses and other current assets | ||||||||
Total current assets | ||||||||
Property and equipment, net | ||||||||
Internally developed software, net | ||||||||
Intangible assets, net | ||||||||
Goodwill | ||||||||
Operating lease right-of-use assets, net | — | |||||||
Other non-current assets | ||||||||
Total assets | $ | $ | ||||||
Liabilities and Equity: | ||||||||
Current liabilities: | ||||||||
Accrued expenses and other liabilities | $ | $ | ||||||
Accounts payable | ||||||||
Operating lease liabilities | — | |||||||
Convertible Notes due 2019 | ||||||||
Contingent consideration | ||||||||
Deferred revenue | ||||||||
Total current liabilities | ||||||||
Convertible Notes due 2023 | ||||||||
Revolving credit facility | ||||||||
Contingent consideration | ||||||||
Deferred revenue | ||||||||
Non-current operating lease liabilities | — | |||||||
Deferred rent and lease incentive | — | |||||||
Deferred tax liabilities, net | ||||||||
Other non-current liabilities | ||||||||
Total liabilities | ||||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.005, 50,000,000 shares authorized | ||||||||
Common stock, par value $0.005, 500,000,000 shares authorized; 65,415,670 and 61,238,898 shares issued as of June 30, 2019 and December 31, 2018, respectively; 52,070,156 and 48,121,800 shares outstanding as of June 30, 2019 and December 31, 2018, respectively | ||||||||
Additional paid-in capital | ||||||||
Accumulated deficit | ( | ) | ( | ) | ||||
Treasury stock at cost, 13,345,514 and 13,117,098 shares as of June 30, 2019 and December 31, 2018, respectively | ( | ) | ( | ) | ||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
Total stockholders’ equity | ||||||||
Non-controlling interest | ( | ) | ( | ) | ||||
Total equity | ||||||||
Total liabilities and equity | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues: | ||||||||||||||||
Asset-based | $ | $ | $ | $ | ||||||||||||
Subscription-based | ||||||||||||||||
Total recurring revenues | ||||||||||||||||
Professional services and other revenues | ||||||||||||||||
Total revenues | ||||||||||||||||
Operating expenses: | ||||||||||||||||
Cost of revenues | ||||||||||||||||
Compensation and benefits | ||||||||||||||||
General and administration | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||
Total operating expenses | ||||||||||||||||
Income (loss) from operations | ( | ) | ( | ) | ( | ) | ||||||||||
Other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Loss before income tax provision (benefit) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Income tax provision (benefit) | ( | ) | ( | ) | ( | ) | ||||||||||
Net income (loss) | ( | ) | ( | ) | ||||||||||||
Add: Net loss attributable to non-controlling interest | ||||||||||||||||
Net income (loss) attributable to Envestnet, Inc. | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||
Net income (loss) per share attributable to Envestnet, Inc.: | ||||||||||||||||
Basic | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||
Diluted | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | ||||||||||||||||
Diluted |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income (loss) attributable to Envestnet, Inc. | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||
Foreign currency translation gain (loss) | ( | ) | ( | ) | ||||||||||||
Comprehensive income (loss) attributable to Envestnet, Inc. | $ | $ | ( | ) | $ | ( | ) | $ |
Accumulated | ||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional | Other | Non- | ||||||||||||||||||||||||||||||
Common | Paid-in | Comprehensive | Accumulated | controlling | Total | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Income (Loss) | Deficit | Interest | Equity | ||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||
Exercise of stock options | — | — | — | — | — | |||||||||||||||||||||||||||||
Issuance of common stock - vesting of restricted stock units | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Acquisition of business | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Purchase of treasury stock for stock-based tax withholdings | — | — | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||||||
Foreign currency translation gain (loss) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Balance, March 31, 2019 | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | |||||||||||||||||||||||||||||
Issuance of common stock - vesting of restricted stock units | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Acquisition of business | — | — | — | — | — | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Purchase of treasury stock for stock-based tax withholdings | — | — | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||||||
Foreign currency translation gain (loss) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | ) | ||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ |
Accumulated | ||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional | Other | Non- | ||||||||||||||||||||||||||||||
Common | Paid-in | Comprehensive | Accumulated | controlling | Total | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Income (Loss) | Deficit | Interest | Equity | ||||||||||||||||||||||||||
Balance, December 31, 2017 | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||
Adoption of ASC 606 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | |||||||||||||||||||||||||||||
Issuance of common stock - vesting of restricted stock units | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Purchase of treasury stock for stock-based tax withholdings | — | — | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||||||
Issuance of non-controlling units in private company | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Foreign currency translation gain (loss) | — | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | ) | ||||||||||||||||||||||||||
Balance, March 31, 2018 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Issuance of common stock - vesting of restricted stock units | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Purchase of treasury stock for stock-based tax withholdings | — | — | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||||||
Issuance of Convertible Notes due 2023, net of offering costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Foreign currency translation gain (loss) | — | — | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Balance, June 30, 2018 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | $ |
Six Months Ended | ||||||||
June 30, | ||||||||
2019 | 2018 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | ( | ) | $ | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | ||||||||
Deferred rent and lease incentive amortization | ||||||||
Provision for doubtful accounts | ||||||||
Deferred income taxes | ( | ) | ( | ) | ||||
Non-cash based compensation expense | ||||||||
Non-cash interest expense | ||||||||
Accretion on contingent consideration and purchase liability | ||||||||
Payments of contingent consideration | ( | ) | ||||||
Loss allocation from equity method investment | ||||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||
Fees receivable, net | ( | ) | ( | ) | ||||
Prepaid expenses and other current assets | ( | ) | ( | ) | ||||
Other non-current assets | ( | ) | ( | ) | ||||
Accrued expenses and other liabilities | ( | ) | ( | ) | ||||
Accounts payable | ( | ) | ||||||
Deferred revenue | ||||||||
Other non-current liabilities | ||||||||
Net cash provided by operating activities | ||||||||
INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | ( | ) | ( | ) | ||||
Capitalization of internally developed software | ( | ) | ( | ) | ||||
Acquisitions of businesses, net of cash acquired | ( | ) | ( | ) | ||||
Other | ( | ) | ||||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Proceeds from issuance of Convertible Notes due 2023 | ||||||||
Convertible Notes due 2023 issuance costs | ( | ) | ||||||
Proceeds from borrowings on revolving credit facility | ||||||||
Payments on revolving credit facility | ( | ) | ( | ) | ||||
Payments of contingent consideration | ( | ) | ( | ) | ||||
Proceeds from exercise of stock options | ||||||||
Purchase of treasury stock for stock-based tax withholdings | ( | ) | ( | ) | ||||
Issuance of restricted stock units | ||||||||
Net cash provided by financing activities | ||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | ( | ) | ||||||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ( | ) | ||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | ||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (See Note 2) | $ | $ | ||||||
Supplemental disclosure of cash flow information - net cash paid during the period for income taxes | $ | $ | ||||||
Supplemental disclosure of cash flow information - cash paid during the period for interest | ||||||||
Supplemental disclosure of non-cash operating, investing and financing activities: | ||||||||
Common stock issued in acquisition of business | ||||||||
Contingent consideration issued in acquisition of businesses | ||||||||
Purchase liabilities included in other non-current liabilities | ||||||||
Purchase of fixed assets included in accounts payable and accrued expenses and other liabilities | ||||||||
Membership interest liabilities included in other non-current liabilities | ||||||||
Common stock issued to settle purchase liability | ||||||||
Leasehold improvements funded by lease incentive | ||||||||
Purchase liabilities included in accrued expenses and other liabilities |
1. | Organization and Description of Business |
• | Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions. |
• | Envestnet | Enterprise provides an end-to-end open architecture wealth management platform, through which advisors can construct portfolios for clients. It begins with aggregated household data which then leads to the creation of a financial plan, asset allocation, investment strategy, portfolio management, rebalancing and performance reporting. Advisors have access to over |
• | Envestnet | Tamarac™ provides leading trading, rebalancing, portfolio accounting, performance reporting and client relationship management software, principally to high‑end registered investment advisers (“RIAs”). |
• | Envestnet | MoneyGuide provides leading goals-based financial planning solutions to the financial services industry. The highly adaptable software helps financial advisors add significant value for their clients using best-in-class technology with enhanced integrations to generate financial plans. |
• | Envestnet | Retirement Solutions (“ERS”) offers a comprehensive suite of services for advisor-sold retirement plans. Leveraging integrated technology, ERS addresses the regulatory, data and investment needs of retirement plans and delivers the information holistically. |
• | Envestnet | PMC® or Portfolio Management Consultants (“PMC”) provides research and consulting services to assist advisors in creating investment solutions for their clients. These solutions include over |
• | Envestnet Data & Analytics – a leading data aggregation and data intelligence platform powering dynamic, cloud-based innovation for digital financial services, and includes product offerings from Envestnet | Yodlee and Envestnet | Analytics. |
2. | Basis of Presentation |
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
Cash and cash equivalents | $ | $ | ||||||
Restricted cash included in prepaid expenses and other current assets | ||||||||
Restricted cash included in other non-current assets | ||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
3. |
Preliminary Estimate | ||||
Cash consideration | $ | |||
Purchase consideration liability | ||||
Contingent consideration liability | ||||
Working capital adjustment | ||||
Total | $ |
Preliminary Estimate | ||||
Total tangible assets acquired | $ | |||
Total liabilities assumed | ( | ) | ||
Identifiable intangible assets | ||||
Goodwill | ||||
Total net assets acquired | $ |
Preliminary Estimate | Estimated Useful Life in Years | Amortization Method | ||||||
Proprietary technology | $ | Straight-line |
Preliminary Estimate | ||||
Cash consideration | $ | |||
Contingent consideration liability | ||||
Total | $ |
Preliminary Estimate | ||||
Total tangible assets acquired | $ | |||
Total liabilities assumed | ( | ) | ||
Identifiable intangible assets | ||||
Goodwill | ||||
Total net assets acquired | $ |
Preliminary Estimate | Estimated Useful Life in Years | Amortization Method | ||||||
Customer list | $ | Accelerated | ||||||
Proprietary technology | Straight-line | |||||||
Total | $ |
Preliminary Estimate | ||||
Cash consideration | $ | |||
Stock consideration | ||||
Less: cash acquired | ( | ) | ||
Total estimated fair value of consideration transferred, net of cash acquired | $ |
Preliminary Estimate | ||||
Cash and cash equivalents | $ | |||
Accounts receivable | ||||
Prepaid expenses and other current assets | ||||
Other non-current assets | ||||
Property and equipment, net | ||||
Operating lease right-of-use assets, net | ||||
Identifiable intangible assets | ||||
Goodwill | ||||
Total assets acquired | ||||
Accounts payable and accrued expenses | ( | ) | ||
Operating lease liabilities | ( | ) | ||
Deferred income taxes | ( | ) | ||
Deferred revenue | ( | ) | ||
Total liabilities assumed | ( | ) | ||
Total net assets acquired | $ |
Preliminary Estimate | Estimated Useful Life in Years | Amortization Method | ||||||
Customer lists | $ | 10-16 | Accelerated | |||||
Proprietary technologies | Straight-line | |||||||
Trade names | Straight-line | |||||||
Total | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues | $ | $ | $ | $ | ||||||||||||
Net income (loss) attributable to Envestnet, Inc. | ( | ) | ( | ) | ( | ) | ||||||||||
Net income (loss) per share attributable to Envestnet, Inc.: | ||||||||||||||||
Basic | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||
Diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ |
4. | Prepaid Expenses and Other Current Assets |
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
Prepaid technology | $ | $ | ||||||
Advance payroll taxes and benefits | ||||||||
Non-income tax receivables | ||||||||
Prepaid outside information services | ||||||||
Other | ||||||||
Total | $ | $ |
5. | Property and Equipment |
June 30, | December 31, | |||||||||
Estimated Useful Life | 2019 | 2018 | ||||||||
Cost: | ||||||||||
Computer equipment and software | $ | $ | ||||||||
Leasehold improvements | Shorter of the lease term or useful life of the asset | |||||||||
Office furniture and fixtures | 3-7 years | |||||||||
Office equipment and other | 3-5 years | |||||||||
Building and building improvements | 7-39 years | |||||||||
Land | Not applicable | |||||||||
Less: accumulated depreciation and amortization | ( | ) | ( | ) | ||||||
Total property and equipment, net | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Depreciation and amortization expense | $ | $ | $ | $ |
6. | Internally Developed Software |
June 30, | December 31, | |||||||||
Estimated Useful Life | 2019 | 2018 | ||||||||
Internally developed software | $ | $ | ||||||||
Less: accumulated amortization | ( | ) | ( | ) | ||||||
Internally developed software, net | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Amortization expense | $ | $ | $ | $ |
7. | Goodwill and Intangible Assets, Net |
Envestnet Wealth Solutions | Envestnet Data & Analytics | Total | ||||||||||
Balance at December 31, 2018 | $ | $ | $ | |||||||||
Private company acquisition | ||||||||||||
PortfolioCenter acquisition | ||||||||||||
PIEtech acquisition | ||||||||||||
Foreign currency | ||||||||||||
Other | ( | ) | ( | ) | ||||||||
Balance at June 30, 2019 | $ | $ | $ |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||||
Estimated | Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | ||||||||||||||||||||
Useful Life | Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||||
Customer lists | 7-16 years | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||
Proprietary technologies | 4-8 years | ( | ) | ( | ) | |||||||||||||||||||||
Trade names | 2-7 years | ( | ) | ( | ) | |||||||||||||||||||||
Backlog | ( | ) | ( | ) | ||||||||||||||||||||||
Total intangible assets | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Amortization expense | $ | $ | $ | $ |
Years ending December 31, | |||
Remainder of 2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total | $ |
8. | Accrued Expenses and Other Liabilities |
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
Accrued investment manager fees | $ | $ | ||||||
Accrued compensation and related taxes | ||||||||
Sales and use tax payable | ||||||||
Accrued transaction costs | ||||||||
Accrued professional services | ||||||||
Other accrued expenses | ||||||||
Total | $ | $ |
9. | Debt |
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
Convertible Notes due 2019 | $ | $ | ||||||
Unaccreted discount on Convertible Notes due 2019 | ( | ) | ( | ) | ||||
Unamortized issuance costs on Convertible Notes due 2019 | ( | ) | ( | ) | ||||
Convertible Notes due 2019 carrying value | $ | $ | ||||||
Convertible Notes due 2023 | $ | $ | ||||||
Unaccreted discount on Convertible Notes due 2023 | ( | ) | ( | ) | ||||
Unamortized issuance costs on Convertible Notes due 2023 | ( | ) | ( | ) | ||||
Convertible Notes due 2023 carrying value | $ | $ | ||||||
Revolving credit facility balance | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Accretion of debt discount | $ | $ | $ | $ | ||||||||||||
Coupon interest | ||||||||||||||||
Amortization of issuance costs | ||||||||||||||||
Interest on revolving credit facility | ||||||||||||||||
Undrawn and other fees | ||||||||||||||||
Total | $ | $ | $ | $ |
10. | Fair Value Measurements |
Level I: | Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. |
Level II: | Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or inputs that are observable and can be corroborated by observable market data. |
Level III: | Inputs reflect management’s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. |
June 30, 2019 | ||||||||||||||||
Fair Value | Level I | Level II | Level III | |||||||||||||
Assets: | ||||||||||||||||
Money market funds and other (1) | $ | $ | $ | $ | ||||||||||||
Assets to fund deferred compensation liability(2) | ||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | $ | $ | $ | ||||||||||||
Deferred compensation liability(3) | ||||||||||||||||
Total liabilities | $ | $ | $ | $ |
December 31, 2018 | ||||||||||||||||
Fair Value | Level I | Level II | Level III | |||||||||||||
Assets: | ||||||||||||||||
Money market funds(1) | $ | $ | $ | $ | ||||||||||||
Assets to fund deferred compensation liability(2) | ||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | $ | $ | $ | ||||||||||||
Deferred compensation liability(3) | ||||||||||||||||
Total liabilities | $ | $ | $ | $ |
(1) | The fair values of the Company’s investments in money-market funds are based on the daily quoted market prices for the net asset value of the various money market funds. |
(2) | The fair value of assets to fund the deferred compensation liability approximates the cash surrender value of the life insurance premiums and is included in other non-current assets in the condensed consolidated balance sheets. |
(3) | The fair market value of the deferred compensation liability is based on the daily quoted market prices for the net asset value of the various funds in which the participants have selected, and is included in other non-current liabilities in the condensed consolidated balance sheets. |
Fair Value of Contingent Consideration Liabilities | ||||
Balance at December 31, 2018 | $ | |||
Private company acquisition | ||||
PortfolioCenter acquisition | ||||
Settlement of contingent consideration liability | ( | ) | ||
Accretion on contingent consideration | ||||
Balance at June 30, 2019 | $ |
Fair Value of Assets to Fund Deferred Compensation Liability | ||||
Balance at December 31, 2018 | $ | |||
Contributions and fair value adjustments | ||||
Balance at June 30, 2019 | $ |
11. | Revenue |
Three Months Ended June 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Envestnet Wealth Solutions | Envestnet Data & Analytics | Consolidated | Envestnet Wealth Solutions | Envestnet Data & Analytics | Consolidated | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Asset-based | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Subscription-based | ||||||||||||||||||||||||
Total recurring revenues | ||||||||||||||||||||||||
Professional services and other revenues | ||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ |
Six Months Ended June 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Envestnet Wealth Solutions | Envestnet Data & Analytics | Consolidated | Envestnet Wealth Solutions | Envestnet Data & Analytics | Consolidated | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Asset-based | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Subscription-based | ||||||||||||||||||||||||
Total recurring revenues | ||||||||||||||||||||||||
Professional services and other revenues | ||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Fidelity | % | % | % | % |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
United States | $ | $ | $ | $ | ||||||||||||
International (1) | ||||||||||||||||
Total | $ | $ | $ | $ |
(1) | No foreign country accounted for more than 10% of the Company's total revenues. |
Years ending December 31, | ||||
Remainder of 2019 | $ | |||
2020 | ||||
2021 | ||||
2022 | ||||
2023 | ||||
Thereafter | ||||
Total | $ |
12. | Cost of Revenues |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Asset-based | $ | $ | $ | $ | ||||||||||||
Subscription-based | ||||||||||||||||
Professional services and other | ||||||||||||||||
Total | $ | $ | $ | $ |
13. | Stock-Based Compensation |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Stock-based compensation expense | $ | $ | $ | $ | ||||||||||||
Tax effect on stock-based compensation expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net effect on income | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Grant date fair value of options | $ | $ | $ | $ | ||||||||||||
Volatility | % | % | % | % | ||||||||||||
Risk-free interest rate | % | % | % | % | ||||||||||||
Dividend yield | % | % | % | % | ||||||||||||
Expected term (in years) | — | — | — |
Weighted-Average | |||||||||||||
Weighted- | Remaining | ||||||||||||
Average | Contractual Life | Aggregate | |||||||||||
Options | Exercise Price | (Years) | Intrinsic Value | ||||||||||
Outstanding as of December 31, 2018 | $ | $ | |||||||||||
Granted | |||||||||||||
Exercised | ( | ) | |||||||||||
Forfeited | ( | ) | |||||||||||
Outstanding as of March 31, 2019 | |||||||||||||
Granted | |||||||||||||
Exercised | ( | ) | |||||||||||
Forfeited | |||||||||||||
Outstanding as of June 30, 2019 | |||||||||||||
Options exercisable | $ | $ |
RSUs | PSUs | |||||||||||||
Number of Shares | Weighted- Average Grant Date Fair Value per Share | Number of Shares | Weighted- Average Grant Date Fair Value per Share | |||||||||||
Outstanding as of December 31, 2018 | $ | $ | ||||||||||||
Granted | ||||||||||||||
Vested | ( | ) | ||||||||||||
Forfeited | ( | ) | ( | ) | ||||||||||
Outstanding as of March 31, 2019 | ||||||||||||||
Granted | ||||||||||||||
Vested | ( | ) | ( | ) | ||||||||||
Forfeited | ( | ) | ||||||||||||
Outstanding as of June 30, 2019 | $ | $ |
14. | Income Taxes |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Loss before income tax provision (benefit) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Income tax provision (benefit) | ( | ) | ( | ) | ( | ) | ||||||||||
Effective tax rate | % | ( | )% | % | % |
15. | Net Income (Loss) Per Share |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Basic income (loss) per share calculation: | ||||||||||||||||
Net loss attributable to Envestnet, Inc. | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||
Basic number of weighted-average shares outstanding | ||||||||||||||||
Basic net income (loss) per share | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||
Diluted income (loss) per share calculation: | ||||||||||||||||
Net income (loss) attributable to Envestnet, Inc. | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||
Basic number of weighted-average shares outstanding | ||||||||||||||||
Effect of dilutive shares: | ||||||||||||||||
Options to purchase common stock | ||||||||||||||||
Unvested restricted stock units | ||||||||||||||||
Convertible notes | ||||||||||||||||
Warrants | ||||||||||||||||
Diluted number of weighted-average shares outstanding | ||||||||||||||||
Diluted net income (loss) per share | $ | $ | ( | ) | $ | ( | ) | $ |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Options to purchase common stock | ||||||||||||
Unvested restricted stock awards and units | ||||||||||||
Warrants | ||||||||||||
Convertible Notes | ||||||||||||
Total |
16. | Commitments and Contingencies |
17. | Leases |
Operating | ||||
Leases | ||||
Years Ending December 31, | ||||
Remainder of 2019 | $ | |||
2020 | ||||
2021 | ||||
2022 | ||||
2023 | ||||
Thereafter | ||||
Total future minimum lease payments | ||||
Less imputed interest | ( | ) | ||
Total operating lease liabilities | $ |
Years ending December 31, | ||||
2019 | $ | |||
2020 | ||||
2021 | ||||
2022 | ||||
2023 | ||||
Thereafter | ||||
Total | $ |
18. | Segment Information |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Envestnet Wealth Solutions | $ | $ | $ | $ | ||||||||||||
Envestnet Data & Analytics | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Total segment income from operations | ||||||||||||||||
Nonsegment operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Consolidated loss before income tax provision (benefit) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Income tax provision (benefit) | ( | ) | ( | ) | ( | ) | ||||||||||
Consolidated net income (loss) | ( | ) | ( | ) | ||||||||||||
Add: Net loss attributable to non-controlling interest | ||||||||||||||||
Consolidated net income (loss) attributable to Envestnet, Inc. | $ | $ | ( | ) | $ | ( | ) | $ |
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
Segment assets: | ||||||||
Envestnet Wealth Solutions | $ | $ | ||||||
Envestnet Data & Analytics | ||||||||
Consolidated total assets | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Segment depreciation and amortization: | ||||||||||||||||
Envestnet Wealth Solutions | $ | $ | $ | $ | ||||||||||||
Envestnet Data & Analytics | ||||||||||||||||
Consolidated depreciation and amortization | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Segment capital expenditures: | ||||||||||||||||
Envestnet Wealth Solutions | $ | $ | $ | $ | ||||||||||||
Envestnet Data & Analytics | ||||||||||||||||
Consolidated capital expenditures | $ | $ | $ | $ |
19. | Geographical Information |
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
United States | $ | $ | ||||||
India | ||||||||
Other | ||||||||
Total | $ | $ |
• | difficulty in sustaining rapid revenue growth, which may place significant demands on our administrative, operational and financial resources, |
• | our ability to successfully identify potential acquisition candidates, complete acquisitions and successfully integrate acquired companies, |
• | the possibility that the anticipated benefits of acquisitions will not be realized to the extent or when expected, |
• | our ability to successfully execute the conversion of clients’ assets from their technology platform to our technology platforms in a timely and accurate manner, |
• | the amount of our debt and our ability to service our debt, |
• | the variability of our revenue from period to period, |
• | the targeting of some of our sales efforts at large financial institutions and large internet services companies which prolongs sales cycles, requires substantial upfront sales costs and results in less predictability in completing some of our sales, |
• | the deployment of our solutions by customers and potential delays and risks inherent in the process, |
• | the competitiveness of our solutions and services as compared to those of others, |
• | the concentration of our revenues from the delivery of our solutions and services to clients in the financial services industry, |
• | our reliance on a limited number of clients for a material portion of our revenue, |
• | the impact of fluctuations in market conditions and interest rates on the demand for our products and services and the value of assets under management or administration, |
• | changes in investing patterns on the assets on which we derive revenue, |
• | the renegotiation of fees by our clients, |
• | our ability to introduce new solutions and services, |
• | our ability to maintain the security and integrity of our systems and facilities and to maintain the privacy of personal information and potential liabilities for data security breaches, |
• | the effect of privacy regulations on how we operate our business, |
• | liabilities associated with potential, perceived or actual breaches of fiduciary duties and/or conflicts of interest, |
• | failure of our solutions, services or systems, or those of third parties on which we rely, to work properly, |
• | failure of our insurance to adequately protect us, |
• | our dependence on our senior management team, |
• | our ability to recruit and retain qualified employees, |
• | regulatory compliance failures, |
• | changes in laws and regulations, including tax laws and regulations, |
• | adverse judicial or regulatory proceedings against us, |
• | the failure to protect our intellectual property rights, |
• | potential claims by third parties for infringement or their intellectual property rights, |
• | risks associated with our international operations, |
• | the impact of fluctuations in interest rates and turmoil in market conditions on our cost of borrowing and access to additional capital, |
• | the impact of fluctuations in foreign currency exchange rates, |
• | the uncertainty of the application and interpretation of certain tax laws, |
• | changes in accounting principles and standards, |
• | issuances of additional shares of common stock or issuances of shares of preferred stock or convertible securities on our existing stockholders, |
• | general economic conditions, political and regulatory conditions, and |
• | management’s response to these factors. |
• | Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions. |
• | Envestnet Data & Analytics – a leading data aggregation and data intelligence platform powering dynamic, cloud-based innovation for digital financial services. |
• | Envestnet | Enterprise provides an end-to-end open architecture wealth management platform through which advisors can construct portfolios for clients. It begins with aggregated household data, which then leads to the creation of a financial plan, asset allocation, investment strategy, portfolio management, rebalancing and performance reporting. Advisors have access to over 19,900 investment products. Envestnet | Enterprise also sells data aggregation and reporting, data analytics and digital advice capabilities to customers. |
• | Envestnet | Tamarac™ provides leading trading, rebalancing, portfolio accounting, performance reporting and client relationship management software, principally to high‑end RIAs. |
• | Envestnet | MoneyGuide provides leading goals-based financial planning solutions to the financial services industry. The highly adaptable software helps financial advisors add significant value for their clients using best-in-class technology with enhanced integrations to generate financial plans. |
• | Envestnet | Retirement Solutions (“ERS”) offers a comprehensive suite of services for advisor-sold retirement plans. Leveraging integrated technology, ERS addresses the regulatory, data, and investment needs of retirement plans and delivers the information holistically. |
• | Envestnet | PMC®, or Portfolio Management Consultants (“PMC”) provides research and consulting services to assist advisors in creating investment solutions for their clients. These solutions include nearly 4,500 vetted third party managed account products, multi-manager portfolios, fund strategist portfolios, as well as over 1,000 proprietary products, such as quantitative portfolios and fund strategist portfolios. PMC also offers portfolio overlay and tax optimization services. |
As of | ||||||||||||||||||||
June 30, | September 30, | December 31, | March 31, | June 30, | ||||||||||||||||
2018 | 2018 | 2018 | 2019 | 2019 | ||||||||||||||||
(in millions, except accounts and advisors data) | ||||||||||||||||||||
Platform Assets | ||||||||||||||||||||
Assets under Management (“AUM”) | $ | 148,537 | $ | 153,862 | $ | 150,591 | $ | 176,144 | $ | 182,143 | ||||||||||
Assets under Administration (“AUA”) | 360,850 | 388,066 | 291,934 | 319,129 | 330,226 | |||||||||||||||
Total AUM/A | 509,387 | 541,928 | 442,525 | 495,273 | 512,369 | |||||||||||||||
Subscription | 2,167,084 | 2,297,593 | 2,314,253 | 2,546,483 | 2,835,780 | |||||||||||||||
Total Platform Assets | $ | 2,676,471 | $ | 2,839,521 | $ | 2,756,778 | $ | 3,041,756 | $ | 3,348,149 | ||||||||||
Platform Accounts | ||||||||||||||||||||
AUM | 759,926 | 776,705 | 816,354 | 874,574 | 907,034 | |||||||||||||||
AUA | 1,417,795 | 1,517,297 | 1,182,764 | 1,187,589 | 1,196,114 | |||||||||||||||
Total AUM/A | 2,177,721 | 2,294,002 | 1,999,118 | 2,062,163 | 2,103,148 | |||||||||||||||
Subscription | 8,042,900 | 8,185,667 | 8,865,435 | 8,909,581 | 9,492,653 | |||||||||||||||
Total Platform Accounts | 10,220,621 | 10,479,669 | 10,864,553 | 10,971,744 | 11,595,801 | |||||||||||||||
Advisors | ||||||||||||||||||||
AUM/A | 44,900 | 47,292 | 40,103 | 39,035 | 39,727 | |||||||||||||||
Subscription | 43,700 | 45,619 | 56,237 | 57,594 | 59,292 | |||||||||||||||
Total Advisors | 88,600 | 92,911 | 96,340 | 96,629 | 99,019 |
Asset Rollforward - Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||
As of | Gross | Net | Market | Reclass to | As of | |||||||||||||||||||||||
3/31/2019 | Sales | Redemptions | Flows | Impact | Subscription | 6/30/2019 | ||||||||||||||||||||||
(in millions except account data) | ||||||||||||||||||||||||||||
AUM | $ | 176,144 | $ | 15,130 | $ | (7,415 | ) | $ | 7,715 | $ | 4,846 | $ | (6,562 | ) | $ | 182,143 | ||||||||||||
AUA | 319,129 | 21,203 | (17,611 | ) | 3,592 | 7,862 | (357 | ) | 330,226 | |||||||||||||||||||
Total AUM/A | $ | 495,273 | $ | 36,333 | $ | (25,026 | ) | $ | 11,307 | $ | 12,708 | $ | (6,919 | ) | $ | 512,369 | ||||||||||||
Fee-Based Accounts | 2,062,163 | 45,714 | (4,729 | ) | 2,103,148 |
Asset Rollforward - Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||
As of | Gross | Net | Market | Reclass to | As of | |||||||||||||||||||||||
12/31/2018 | Sales | Redemptions | Flows | Impact | Subscription | 6/30/2019 | ||||||||||||||||||||||
(in millions, except account data) | ||||||||||||||||||||||||||||
AUM | $ | 150,591 | $ | 36,818 | $ | (16,570 | ) | $ | 20,248 | $ | 17,866 | $ | (6,562 | ) | $ | 182,143 | ||||||||||||
AUA | 291,934 | 49,194 | (38,532 | ) | 10,662 | 31,481 | (3,851 | ) | 330,226 | |||||||||||||||||||
Total AUM/A | $ | 442,525 | $ | 86,012 | $ | (55,102 | ) | $ | 30,910 | $ | 49,347 | $ | (10,413 | ) | $ | 512,369 | ||||||||||||
Fee-Based Accounts | 1,999,118 | 125,891 | (21,861 | ) | 2,103,148 |
• | The Financial Institutions group provides customers with secure access to open APIs, end-user facing applications powered by our platform and APIs (“FinApps”), and reports. Customers receive end user-permissioned transaction data elements that we aggregate and cleanse. Envestnet Data & Analytics also enables customers to develop their own applications through its open APIs, which deliver secure data, money movement solutions, and other functionality. FinApps can be subscribed to individually or in combinations that include personal financial management, wealth management, credit card, payments and small-medium business solutions. They are targeted at the retail financial, wealth management, small business, credit card, lenders, and other financial services sectors. These FinApps help consumers and small businesses simplify and manage their finances, review their financial accounts, track their spending, calculate their net worth, and perform a variety of other activities. For example, Envestnet Data & Analytic's Expense FinApp helps consumers track their spending, and a Payroll FinApp from a third party helps small businesses process their payroll. The suite of reports is designed to supplement traditional credit reports by utilizing consumer permissioned aggregated data from over 21,000 sources, including banking, investment, loan and credit card information. |
• | The Yodlee Interactive group enables customers to develop new applications and enhance existing solutions. These customers operate in a number of sub-vertical markets, including wealth management, personal financial management, small business accounting, small business lending and authentication. They use the Envestnet Data & Analytics platform to build solutions that leverage our open APIs and provide access to a large end user base. In addition to aggregated transaction-level account data elements, we provide YI customers with secure access to account verification, money movement and risk assessment tools via our APIs. We play a critical role in transferring innovation from financial technology innovators to financial institutions. For example, YI customers use Yodlee applications to provide working capital to small businesses online; personalized financial management, planning and advisory services; e-commerce payment solutions; and online accounting systems for small businesses. We provide access to our solutions across multiple channels, including web, tablet and mobile. |
• | Envestnet | Analytics provides data analytics, mobile sales solutions, and online educational tools to financial advisors, asset managers and enterprises. These tools empower financial services firms to extract key business insights to run their business better and provide timely and focused support to advisors. Our dashboards deliver segmentation analytics, multi-dimensional benchmarking, and practice pattern analyses that provide critical insights to clients. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | Percent | June 30, | Percent | |||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||
Asset-based | $ | 120,070 | $ | 118,111 | 2 | % | $ | 229,004 | $ | 239,264 | (4 | )% | ||||||||||
Subscription-based | 92,258 | 71,779 | 29 | % | 175,345 | 141,474 | 24 | % | ||||||||||||||
Total recurring revenues | 212,328 | 189,890 | 12 | % | 404,349 | 380,738 | 6 | % | ||||||||||||||
Professional services and other revenues | 12,117 | 11,226 | 8 | % | 19,762 | 18,389 | 7 | % | ||||||||||||||
Total revenues | 224,445 | 201,116 | 12 | % | 424,111 | 399,127 | 6 | % | ||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Cost of revenues | 72,080 | 67,627 | 7 | % | 133,725 | 130,561 | 2 | % | ||||||||||||||
Compensation and benefits | 103,286 | 80,210 | 29 | % | 190,003 | 163,750 | 16 | % | ||||||||||||||
General and administration | 42,421 | 34,089 | 24 | % | 82,945 | 66,818 | 24 | % | ||||||||||||||
Depreciation and amortization | 26,915 | 19,185 | 40 | % | 46,432 | 38,731 | 20 | % | ||||||||||||||
Total operating expenses | 244,702 | 201,111 | 22 | % | 453,105 | 399,860 | 13 | % | ||||||||||||||
Income (loss) from operations | (20,257 | ) | 5 | * | (28,994 | ) | (733 | ) | * | |||||||||||||
Other expense, net | (7,512 | ) | (5,430 | ) | 38 | % | (13,275 | ) | (10,684 | ) | 24 | % | ||||||||||
Loss before income tax provision (benefit) | (27,769 | ) | (5,425 | ) | * | (42,269 | ) | (11,417 | ) | * | ||||||||||||
Income tax provision (benefit) | (28,382 | ) | 566 | * | (24,614 | ) | (13,428 | ) | 83 | % | ||||||||||||
Net income (loss) | 613 | (5,991 | ) | * | (17,655 | ) | 2,011 | * | ||||||||||||||
Add: Net loss attributable to non-controlling interest | 280 | 465 | (40 | )% | 363 | 567 | (36 | )% | ||||||||||||||
Net income (loss) attributable to Envestnet, Inc. | $ | 893 | $ | (5,526 | ) | * | $ | (17,292 | ) | $ | 2,578 | * |
Three Months Ended | ||||||||
June 30, | ||||||||
2019 | 2018 | |||||||
Loss before income tax provision (benefit) | $ | (27,769 | ) | $ | (5,425 | ) | ||
Income tax provision (benefit) | (28,382 | ) | 566 | |||||
Effective tax rate | 102.2 | % | (10.4 | )% |
Six Months Ended | ||||||||
June 30, | ||||||||
2019 | 2018 | |||||||
Loss before income tax provision (benefit) | $ | (42,269 | ) | $ | (11,417 | ) | ||
Income tax benefit | (24,614 | ) | (13,428 | ) | ||||
Effective tax rate | 58.2 | % | 117.6 | % |
• | Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions. |
• | Envestnet Data & Analytics – a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Envestnet Wealth Solutions | $ | 12,379 | $ | 16,359 | $ | 29,223 | $ | 32,220 | ||||||||
Envestnet Data & Analytics | (8,960 | ) | (3,296 | ) | (16,888 | ) | (7,705 | ) | ||||||||
Total segment income from operations | 3,419 | 13,063 | 12,335 | 24,515 | ||||||||||||
Nonsegment operating expenses | (23,676 | ) | (13,058 | ) | (41,329 | ) | (25,248 | ) | ||||||||
Other expense, net | (7,512 | ) | (5,430 | ) | (13,275 | ) | (10,684 | ) | ||||||||
Consolidated loss before income tax provision (benefit) | (27,769 | ) | (5,425 | ) | (42,269 | ) | (11,417 | ) | ||||||||
Income tax provision (benefit) | (28,382 | ) | 566 | (24,614 | ) | (13,428 | ) | |||||||||
Consolidated net income (loss) | 613 | (5,991 | ) | (17,655 | ) | 2,011 | ||||||||||
Add: Net loss attributable to non-controlling interest | 280 | 465 | 363 | 567 | ||||||||||||
Consolidated net income (loss) attributable to Envestnet, Inc. | $ | 893 | $ | (5,526 | ) | $ | (17,292 | ) | $ | 2,578 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | Percent | June 30, | Percent | |||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||
Asset-based | $ | 120,070 | $ | 118,111 | 2 | % | $ | 229,004 | $ | 239,264 | (4 | )% | ||||||||||
Subscription-based | 50,078 | 33,023 | 52 | % | 91,104 | 65,608 | 39 | % | ||||||||||||||
Total recurring revenues | 170,148 | 151,134 | 13 | % | 320,108 | 304,872 | 5 | % | ||||||||||||||
Professional services and other revenues | 6,742 | 5,794 | 16 | % | 9,487 | 8,044 | 18 | % | ||||||||||||||
Total revenues | 176,890 | 156,928 | 13 | % | 329,595 | 312,916 | 5 | % | ||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Cost of revenues | 66,250 | 62,914 | 5 | % | 122,105 | 121,937 | — | % | ||||||||||||||
Compensation and benefits | 56,219 | 48,026 | 17 | % | 104,774 | 99,937 | 5 | % | ||||||||||||||
General and administration | 25,666 | 18,603 | 38 | % | 45,850 | 36,323 | 26 | % | ||||||||||||||
Depreciation and amortization | 16,376 | 11,026 | 49 | % | 27,643 | 22,499 | 23 | % | ||||||||||||||
Total operating expenses | 164,511 | 140,569 | 17 | % | 300,372 | 280,696 | 7 | % | ||||||||||||||
Income from operations | $ | 12,379 | $ | 16,359 | (24 | )% | $ | 29,223 | $ | 32,220 | (9 | )% |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | Percent | June 30, | Percent | |||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||
Subscription-based | $ | 42,180 | $ | 38,756 | 9 | % | $ | 84,241 | $ | 75,866 | 11 | % | ||||||||||
Professional services and other revenues | 5,375 | 5,432 | (1 | )% | 10,275 | 10,345 | (1 | )% | ||||||||||||||
Total revenues | 47,555 | 44,188 | 8 | % | 94,516 | 86,211 | 10 | % | ||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Cost of revenues | 5,830 | 4,713 | 24 | % | 11,620 | 8,624 | 35 | % | ||||||||||||||
Compensation and benefits | 31,593 | 25,848 | 22 | % | 62,957 | 52,006 | 21 | % | ||||||||||||||
General and administration | 8,553 | 8,764 | (2 | )% | 18,038 | 17,054 | 6 | % | ||||||||||||||
Depreciation and amortization | 10,539 | 8,159 | 29 | % | 18,789 | 16,232 | 16 | % | ||||||||||||||
Total operating expenses | 56,515 | 47,484 | 19 | % | 111,404 | 93,916 | 19 | % | ||||||||||||||
Loss from operations | $ | (8,960 | ) | $ | (3,296 | ) | 172 | % | $ | (16,888 | ) | $ | (7,705 | ) | 119 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | Percent | June 30, | Percent | |||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Compensation and benefits | $ | 15,474 | $ | 6,336 | 144 | % | $ | 22,272 | $ | 11,807 | 89 | % | ||||||||||
General and administration | 8,202 | 6,722 | 22 | % | 19,057 | 13,441 | 42 | % | ||||||||||||||
Nonsegment operating expenses | $ | 23,676 | $ | 13,058 | 81 | % | $ | 41,329 | $ | 25,248 | 64 | % |
• | As measures of operating performance; |
• | For planning purposes, including the preparation of annual budgets; |
• | To allocate resources to enhance the financial performance of our business; |
• | To evaluate the effectiveness of our business strategies; and |
• | In communications with our Board of Directors concerning our financial performance. |
• | Adjusted revenues, adjusted net revenues, adjusted EBITDA, adjusted net income and adjusted net income per share do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; |
• | Adjusted revenues, adjusted net revenues, adjusted EBITDA, adjusted net income and adjusted net income per share do not reflect changes in, or cash requirements for, our working capital needs; |
• | Adjusted revenues, adjusted net revenues, adjusted EBITDA, adjusted net income and adjusted net income per share do not reflect non-cash components of employee compensation; |
• | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for such replacements; |
• | Due to either net losses before income tax expense or the use of federal and state net operating loss carryforwards we paid net cash of $6,121 and $2,225 for the six months ended June 30, 2019 and 2018, respectively. In the event that we begin to generate taxable income and our existing net operating loss carryforwards for federal and state income taxes have been fully utilized or have expired, income tax payments will be higher; and |
• | Other companies in our industry may calculate adjusted revenues, adjusted net revenues, adjusted EBITDA, adjusted net income and adjusted net income per share differently than we do, limiting their usefulness as a comparative measure. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Total revenues | $ | 224,445 | $ | 201,116 | $ | 424,111 | $ | 399,127 | ||||||||
Deferred revenue fair value adjustment | 3,414 | 62 | 3,420 | 66 | ||||||||||||
Adjusted revenues | 227,859 | 201,178 | 427,531 | 399,193 | ||||||||||||
Less: Asset-based cost of revenues | (60,293 | ) | (56,748 | ) | (114,135 | ) | (114,320 | ) | ||||||||
Adjusted net revenues | $ | 167,566 | $ | 144,430 | $ | 313,396 | $ | 284,873 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net income (loss) | $ | 613 | $ | (5,991 | ) | $ | (17,655 | ) | $ | 2,011 | ||||||
Add (deduct): | ||||||||||||||||
Deferred revenue fair value adjustment | 3,414 | 62 | 3,420 | 66 | ||||||||||||
Interest income | (901 | ) | (374 | ) | (2,411 | ) | (784 | ) | ||||||||
Interest expense | 8,263 | 5,992 | 15,359 | 11,228 | ||||||||||||
Accretion on contingent consideration and purchase liability | 502 | 95 | 742 | 196 | ||||||||||||
Income tax provision (benefit) | (28,382 | ) | 566 | (24,614 | ) | (13,428 | ) | |||||||||
Depreciation and amortization | 26,915 | 19,185 | 46,432 | 38,731 | ||||||||||||
Non-cash compensation expense | 14,988 | 10,476 | 27,852 | 18,971 | ||||||||||||
Restructuring charges and transaction costs | 13,208 | 3,345 | 20,574 | 5,937 | ||||||||||||
Severance | 3,280 | 1,049 | 5,760 | 3,861 | ||||||||||||
Foreign currency | (154 | ) | (339 | ) | (155 | ) | (571 | ) | ||||||||
Non-income tax expense adjustment | 908 | 27 | 1,118 | (101 | ) | |||||||||||
Loss allocation from equity method investment | 347 | 151 | 550 | 811 | ||||||||||||
Loss attributable to non-controlling interest | 210 | 515 | 241 | 584 | ||||||||||||
Adjusted EBITDA | $ | 43,211 | $ | 34,759 | $ | 77,213 | $ | 67,512 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net income (loss) | $ | 613 | $ | (5,991 | ) | $ | (17,655 | ) | $ | 2,011 | ||||||
Income tax provision (benefit) (1) | (28,382 | ) | 566 | (24,614 | ) | (13,428 | ) | |||||||||
Loss before income tax provision (benefit) | (27,769 | ) | (5,425 | ) | (42,269 | ) | (11,417 | ) | ||||||||
Add (deduct): | ||||||||||||||||
Deferred revenue fair value adjustment | 3,414 | 62 | 3,420 | 66 | ||||||||||||
Accretion on contingent consideration and purchase liability | 502 | 95 | 742 | 196 | ||||||||||||
Non-cash interest expense | 4,646 | 3,032 | 9,262 | 4,900 | ||||||||||||
Non-cash compensation expense | 14,988 | 10,476 | 27,852 | 18,971 | ||||||||||||
Restructuring charges and transaction costs | 13,208 | 3,345 | 20,574 | 5,937 | ||||||||||||
Severance | 3,280 | 1,049 | 5,760 | 3,861 | ||||||||||||
Amortization of acquired intangibles and fair value adjustment to property and equipment, net | 19,278 | 13,419 | 31,806 | 27,354 | ||||||||||||
Foreign currency | (154 | ) | (339 | ) | (155 | ) | (571 | ) | ||||||||
Non-income tax expense adjustment | 908 | 27 | 1,118 | (101 | ) | |||||||||||
Loss allocation from equity method investment | 347 | 151 | 550 | 811 | ||||||||||||
Loss attributable to non-controlling interest | 210 | 515 | 241 | 584 | ||||||||||||
Adjusted net income before income tax effect | 32,858 | 26,407 | 58,901 | 50,591 | ||||||||||||
Income tax effect (2) | (8,388 | ) | (7,130 | ) | (15,020 | ) | (13,660 | ) | ||||||||
Adjusted net income | $ | 24,470 | $ | 19,277 | $ | 43,881 | $ | 36,931 | ||||||||
Basic number of weighted-average shares outstanding | 50,870,296 | 45,247,331 | 49,526,774 | 44,963,735 | ||||||||||||
Effect of dilutive shares: | ||||||||||||||||
Options to purchase common stock | 1,164,246 | 1,325,947 | 1,185,480 | 1,360,300 | ||||||||||||
Unvested restricted stock units | 662,853 | 643,319 | 666,116 | 832,170 | ||||||||||||
Convertible notes | 261,075 | — | 12,532 | — | ||||||||||||
Warrants | 24,218 | — | — | — | ||||||||||||
Diluted number of weighted-average shares outstanding | 52,982,688 | 47,216,597 | 51,390,902 | 47,156,205 | ||||||||||||
Adjusted net income per share - diluted | $ | 0.46 | $ | 0.41 | $ | 0.85 | $ | 0.78 | ||||||||
(1) | For the three months ended June 30, 2019 and 2018, the effective tax rate computed in accordance with GAAP equaled 102.2% and (10.4)%, respectively. For the six months ended June 30, 2019 and 2018, the effective tax rate computed in accordance with GAAP equaled 58.2% and 117.6%, respectively. |
(2) | Estimated normalized effective tax rates of 25.5% and 27.0% have been used to compute adjusted net income for the three and six months ended June 30, 2019 and 2018, respectively. |
Three months ended June 30, 2019 | ||||||||||||||||
Envestnet Wealth Solutions | Envestnet Data & Analytics | Nonsegment | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Revenues | $ | 176,890 | $ | 47,555 | $ | — | $ | 224,445 | ||||||||
Deferred revenue fair value adjustment | 3,414 | — | — | 3,414 | ||||||||||||
Adjusted revenues | 180,304 | 47,555 | — | 227,859 | ||||||||||||
Less: Asset-based cost of revenues | (60,293 | ) | — | — | (60,293 | ) | ||||||||||
Adjusted net revenues | $ | 120,011 | $ | 47,555 | $ | — | $ | 167,566 | ||||||||
Income (loss) from operations | $ | 12,379 | $ | (8,960 | ) | $ | (23,676 | ) | $ | (20,257 | ) | |||||
Add: | ||||||||||||||||
Deferred revenue fair value adjustment | 3,414 | — | — | 3,414 | ||||||||||||
Accretion on contingent consideration and purchase liability | 502 | — | — | 502 | ||||||||||||
Depreciation and amortization | 16,376 | 10,539 | — | 26,915 | ||||||||||||
Non-cash compensation expense | 8,592 | 3,767 | 2,629 | 14,988 | ||||||||||||
Restructuring charges and transaction costs | 794 | (196 | ) | 12,610 | 13,208 | |||||||||||
Non-income tax expense adjustment | 908 | — | — | 908 | ||||||||||||
Severance | 818 | 2,448 | 14 | 3,280 | ||||||||||||
Other | 43 | — | — | 43 | ||||||||||||
Loss attributable to non-controlling interest | 210 | — | — | 210 | ||||||||||||
Adjusted EBITDA | $ | 44,036 | $ | 7,598 | $ | (8,423 | ) | $ | 43,211 |
Three Months Ended June 30, 2018 | ||||||||||||||||
Envestnet Wealth Solutions | Envestnet Data & Analytics | Nonsegment | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Revenues | $ | 156,928 | $ | 44,188 | $ | — | $ | 201,116 | ||||||||
Deferred revenue fair value adjustment | 60 | 2 | — | 62 | ||||||||||||
Adjusted revenues | 156,988 | 44,190 | — | 201,178 | ||||||||||||
Less: Asset-based cost of revenues | (56,748 | ) | — | — | (56,748 | ) | ||||||||||
Adjusted net revenues | $ | 100,240 | $ | 44,190 | $ | — | $ | 144,430 | ||||||||
Income (loss) from operations | $ | 16,359 | $ | (3,296 | ) | $ | (13,058 | ) | $ | 5 | ||||||
Add: | ||||||||||||||||
Deferred revenue fair value adjustment | 60 | 2 | — | 62 | ||||||||||||
Accretion on contingent consideration and purchase liability | 95 | — | — | 95 | ||||||||||||
Depreciation and amortization | 11,026 | 8,159 | — | 19,185 | ||||||||||||
Non-cash compensation expense | 5,080 | 2,936 | 2,460 | 10,476 | ||||||||||||
Restructuring charges and transaction costs | 188 | 403 | 2,754 | 3,345 | ||||||||||||
Non-income tax expense adjustment | 27 | — | — | 27 | ||||||||||||
Severance | 1,049 | — | — | 1,049 | ||||||||||||
Loss attributable to non-controlling interest | 515 | — | 515 | |||||||||||||
Adjusted EBITDA | $ | 34,399 | $ | 8,204 | $ | (7,844 | ) | $ | 34,759 |
Six months ended June 30, 2019 | ||||||||||||||||
Envestnet Wealth Solutions | Envestnet Data & Analytics | Nonsegment | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Revenues | $ | 329,595 | $ | 94,516 | $ | — | $ | 424,111 | ||||||||
Deferred revenue fair value adjustment | 3,420 | — | — | 3,420 | ||||||||||||
Adjusted revenues | 333,015 | 94,516 | — | 427,531 | ||||||||||||
Less: Asset-based cost of revenues | (114,135 | ) | — | — | (114,135 | ) | ||||||||||
Adjusted net revenues | $ | 218,880 | $ | 94,516 | $ | — | $ | 313,396 | ||||||||
Income (loss) from operations | $ | 29,223 | $ | (16,888 | ) | $ | (41,329 | ) | $ | (28,994 | ) | |||||
Add: | ||||||||||||||||
Deferred revenue fair value adjustment | 3,420 | — | — | 3,420 | ||||||||||||
Accretion on contingent consideration and purchase liability | 742 | — | — | 742 | ||||||||||||
Depreciation and amortization | 27,643 | 18,789 | — | 46,432 | ||||||||||||
Non-cash compensation expense | 14,269 | 7,955 | 5,628 | 27,852 | ||||||||||||
Restructuring charges and transaction costs | 1,056 | 769 | 18,749 | 20,574 | ||||||||||||
Non-income tax expense adjustment | 1,108 | 10 | — | 1,118 | ||||||||||||
Severance | 1,168 | 4,496 | 96 | 5,760 | ||||||||||||
Other | 65 | 1 | 2 | 68 | ||||||||||||
Loss attributable to non-controlling interest | 241 | — | — | 241 | ||||||||||||
Adjusted EBITDA | $ | 78,935 | $ | 15,132 | $ | (16,854 | ) | $ | 77,213 |
Six Months Ended June 30, 2018 | ||||||||||||||||
Envestnet Wealth Solutions | Envestnet Data & Analytics | Nonsegment | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Revenues | $ | 312,916 | $ | 86,211 | $ | — | $ | 399,127 | ||||||||
Deferred revenue fair value adjustment | 58 | 8 | — | 66 | ||||||||||||
Adjusted revenues | 312,974 | 86,219 | — | 399,193 | ||||||||||||
Less: Asset-based cost of revenues | (114,320 | ) | — | — | (114,320 | ) | ||||||||||
Adjusted net revenues | $ | 198,654 | $ | 86,219 | $ | — | $ | 284,873 | ||||||||
Income (loss) from operations | $ | 32,220 | $ | (7,705 | ) | $ | (25,248 | ) | $ | (733 | ) | |||||
Add: | ||||||||||||||||
Deferred revenue fair value adjustment | 58 | 8 | — | 66 | ||||||||||||
Accretion on contingent consideration and purchase liability | 196 | — | — | 196 | ||||||||||||
Depreciation and amortization | 22,499 | 16,232 | — | 38,731 | ||||||||||||
Non-cash compensation expense | 9,134 | 5,400 | 4,437 | 18,971 | ||||||||||||
Restructuring charges and transaction costs | 225 | 603 | 5,109 | 5,937 | ||||||||||||
Non-income tax expense adjustment | (101 | ) | — | — | (101 | ) | ||||||||||
Severance | 3,478 | 383 | — | 3,861 | ||||||||||||
Loss attributable to non-controlling interest | 584 | — | — | 584 | ||||||||||||
Adjusted EBITDA | $ | 68,293 | $ | 14,921 | $ | (15,702 | ) | $ | 67,512 |
Six Months Ended | ||||||||
June 30, | ||||||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Net cash provided by operating activities | $ | 2,391 | $ | 40,954 | ||||
Net cash used in investing activities | (347,969 | ) | (208,536 | ) | ||||
Net cash provided by financing activities | 133,784 | 240,299 | ||||||
Effect of exchange rate on changes on cash | 166 | (572 | ) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (211,628 | ) | 72,145 | |||||
Cash, cash equivalents and restricted cash, end of period | 78,043 | 134,260 |
Operating | ||||
Leases | ||||
Years Ending December 31, | ||||
Remainder of 2019 | $ | 9,096 | ||
2020 | 17,558 | |||
2021 | 15,975 | |||
2022 | 11,850 | |||
2023 | 10,571 | |||
Thereafter | 52,862 | |||
Total future minimum lease payments | 117,912 | |||
Less imputed interest | (27,563 | ) | ||
Total operating lease liabilities | $ | 90,349 |
Maximum number (or | |||||||||||||
Total number of | approximate dollar | ||||||||||||
shares purchased | value) of shares | ||||||||||||
Total number | Average | as part of publicly | that may yet be | ||||||||||
of shares | price paid | announced plans | purchased under the | ||||||||||
purchased | per share | or programs | plans or programs | ||||||||||
April 1, 2019 through April 30, 2019 | 3,306 | $ | 68.68 | — | 1,956,390 | ||||||||
May 1, 2019 through May 31, 2019 | 63,562 | 68.86 | — | 1,956,390 | |||||||||
June 1, 2019 through June 30, 2019 | 1,091 | 68.48 | — | 1,956,390 |
Exhibit No. | Description | ||
31.1 | |||
31.2 | |||
32.1(1) | |||
32.2(1) | |||
101.INS | XBRL Instance Document ** | ||
101.SCH | XBRL Taxonomy Extension Schema Document ** | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document ** | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document ** | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document ** | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document ** |
(1) | The material contained in Exhibit 32.1 and 32.2 is not deemed “filed” with the SEC and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language contained in such filing, except to the extent that the registrant specifically incorporates it by reference. |
ENVESTNET, INC. | ||
By: | /s/ Judson Bergman | |
Judson Bergman | ||
Chairman and Chief Executive Officer | ||
Principal Executive Officer | ||
By: | /s/ Peter H. D’Arrigo | |
Peter H. D’Arrigo | ||
Chief Financial Officer | ||
Principal Financial Officer | ||
By: | /s/ Matthew J. Majoros | |
Matthew J. Majoros | ||
Senior Vice President, Financial Reporting | ||
Principal Accounting Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2019, of Envestnet, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 8, 2019 | /s/ Judson Bergman |
Judson Bergman | |
Chairman and Chief Executive Officer | |
(Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2019, of Envestnet, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 8, 2019 | /s/ Peter H. D’Arrigo |
Peter H. D’Arrigo | |
Chief Financial Officer | |
(Principal Financial Officer) |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
/s/ Judson Bergman |
By: Judson Bergman |
Chairman and Chief Executive Officer |
(Principal Executive Officer) |
Dated: August 8, 2019 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
/s/ Peter H. D’Arrigo |
By: Peter H. D’Arrigo |
Chief Financial Officer |
(Principal Financial Officer) |
Dated: August 8, 2019 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
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 |
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) | 65,415,670 | 61,238,898 |
Common stock, shares outstanding (in shares) | 52,070,156 | 48,121,800 |
Treasury stock (in shares) | 13,345,514 | 13,117,098 |
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Revenues: | ||||
Total revenues | $ 224,445 | $ 201,116 | $ 424,111 | $ 399,127 |
Operating expenses: | ||||
Cost of revenues | 72,080 | 67,627 | 133,725 | 130,561 |
Compensation and benefits | 103,286 | 80,210 | 190,003 | 163,750 |
General and administration | 42,421 | 34,089 | 82,945 | 66,818 |
Depreciation and amortization | 26,915 | 19,185 | 46,432 | 38,731 |
Total operating expenses | 244,702 | 201,111 | 453,105 | 399,860 |
Income (loss) from operations | (20,257) | 5 | (28,994) | (733) |
Other expense, net | (7,512) | (5,430) | (13,275) | (10,684) |
Loss before income tax provision (benefit) | (27,769) | (5,425) | (42,269) | (11,417) |
Income tax provision (benefit) | (28,382) | 566 | (24,614) | (13,428) |
Net income (loss) | 613 | (5,991) | (17,655) | 2,011 |
Add: Net loss attributable to non-controlling interest | 280 | 465 | 363 | 567 |
Net income (loss) attributable to Envestnet, Inc. | $ 893 | $ (5,526) | $ (17,292) | $ 2,578 |
Net income (loss) per share attributable to Envestnet, Inc.: | ||||
Basic (in dollars per share) | $ 0.02 | $ (0.12) | $ (0.35) | $ 0.06 |
Diluted (in dollars per share) | $ 0.02 | $ (0.12) | $ (0.35) | $ 0.05 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 50,870,296 | 45,247,331 | 49,526,774 | 44,963,735 |
Diluted (in shares) | 52,982,688 | 45,247,331 | 49,526,774 | 47,156,205 |
Recurring | ||||
Revenues: | ||||
Total revenues | $ 212,328 | $ 189,890 | $ 404,349 | $ 380,738 |
Asset-based | ||||
Revenues: | ||||
Total revenues | 120,070 | 118,111 | 229,004 | 239,264 |
Operating expenses: | ||||
Cost of revenues | 60,293 | 56,748 | 114,135 | 114,320 |
Subscription-based | ||||
Revenues: | ||||
Total revenues | 92,258 | 71,779 | 175,345 | 141,474 |
Operating expenses: | ||||
Cost of revenues | 6,697 | 6,213 | 14,374 | 11,439 |
Professional services and other revenues | ||||
Revenues: | ||||
Total revenues | 12,117 | 11,226 | 19,762 | 18,389 |
Operating expenses: | ||||
Cost of revenues | $ 5,090 | $ 4,666 | $ 5,216 | $ 4,802 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) attributable to Envestnet, Inc. | $ 893 | $ (5,526) | $ (17,292) | $ 2,578 |
Other comprehensive income (loss), net of taxes: | ||||
Foreign currency translation gain (loss) | 112 | (1,036) | 334 | (1,363) |
Comprehensive income (loss) attributable to Envestnet, Inc. | $ 1,005 | $ (6,562) | $ (16,958) | $ 1,215 |
Organization and Description of Business |
6 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||
Organization and Description of Business | Organization and Description of Business Envestnet, Inc. (“Envestnet”) and its subsidiaries (collectively, the “Company”) provide intelligent systems for wealth management and financial wellness. Envestnet’s unified technology enhances advisor productivity and strengthens the wealth management process. Through a combination of platform enhancements, partnerships and acquisitions, Envestnet empowers enterprises and advisors to more fully understand their clients and deliver better outcomes. Envestnet is organized around two primary, complementary business segments. Financial information about each business segment is contained in “Note 18—Segment Information” to the condensed consolidated financial statements. The business segments are as follows:
Within Envestnet Wealth Solutions, the Company offers these solutions principally through the following products and services suites:
Envestnet operates four RIAs and a registered broker-dealer. The RIAs are registered with the Securities and Exchange Commission (“SEC”). The broker-dealer is registered with the SEC, all 50 states and the District of Columbia and is a member of the Financial Industry Regulatory Authority (“FINRA”).
|
Basis of Presentation |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company as of June 30, 2019 and for the three and six months ended June 30, 2019 and 2018 have not been audited by an independent registered public accounting firm. These unaudited condensed consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2018 and reflect all normal recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s financial position as of June 30, 2019 and the results of operations, equity, comprehensive income (loss) and cash flows for the periods presented herein. The unaudited condensed consolidated financial statements include the accounts of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. Accounts for the Envestnet Wealth Solutions segment that are denominated in a non-U.S. currency have been re-measured using the U.S. dollar as the functional currency. Certain accounts within the Envestnet Data & Analytics segment are recorded and measured in foreign currencies. The assets and liabilities for those subsidiaries with a functional currency other than the U.S. dollar are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates. Differences arising from these foreign currency translations are recorded in the unaudited condensed consolidated balance sheets as accumulated other comprehensive income (loss) within stockholders' equity. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the operating results to be expected for other interim periods or for the full fiscal year. The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on March 1, 2019. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates. The following table reconciles cash, cash equivalents and restricted cash from the condensed consolidated balance sheets to amounts reported within the condensed consolidated statements of cash flows:
Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements—In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases,” which amends the requirements for assets and liabilities recognized for all leases longer than twelve months. This standard is effective for financial statements issued by public companies for the annual and interim periods beginning after December 15, 2018. These changes became effective for the Company’s fiscal year beginning January 1, 2019 and have been reflected in these condensed consolidated financial statements (See “Note 17—Leases”). In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting.” This update clarifies the accounting for share-based payment transactions for acquiring goods and services from non-employees. Specifically, the update aligns the accounting for payments to non-employees to match the accounting for payments to employees, no longer accounting for these transactions differently. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2018. These changes became effective for the Company's fiscal year beginning January 1, 2019. This standard will be applied prospectively to all future non-employee share-based payments and is reflected in these condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).” This update is intended to guide entities in evaluating the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance for determining when the arrangement includes a software license. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2019. Early adoption of the standard is permitted. The Company early adopted this standard beginning January 1, 2019, noting that this standard will be applied prospectively. Adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements. Not Yet Adopted—In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326).” This update significantly changes the way that entities will be required to measure credit losses. The new standard requires entities to estimate credit losses based upon an “expected credit loss” approach rather than the “incurred loss” approach, which is currently used. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. The change in approach is anticipated to impact the timing of recognition of credit losses. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2019. Early adoption of the standard is permitted. The Company is currently evaluating the potential impact of this guidance on its condensed consolidated financial statements. |
Business Acquisitions |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions | Business Acquisitions Acquisition of private company On January 2, 2019, pursuant to an agreement and plan of merger dated as of January 2, 2019 between Envestnet and a private company, the private company merged into Yodlee Inc., a wholly owned subsidiary of the Company (the “Private Company Acquisition”). The private company provides conversational artificial intelligence tools and applications to financial services firms, improves the way Financial Service Providers (“FSPs”) can interact with their customers, and supports these FSPs to better engage, support and assist their consumers leveraging this latest wave of customer-centric capabilities. The technology and operations of the private company is included in the Company’s Envestnet Data & Analytics segment. The seller of the private company is also entitled to an earn-out payment based on the private company's revenue and other retention targets for the twelve-month period beginning January 1, 2021. The discounted amount of the contingent consideration liability is estimated to be $7,580 and is included as a long-term liability on the condensed consolidated balance sheets. The consideration transferred in the acquisition was as follows:
The estimated fair values of the deferred income taxes, identifiable intangible assets, contingent consideration liability, and goodwill balances are provisional and based on information that was available to the Company as of the acquisition date. The estimated fair values of these provisional items are based on certain valuation and other studies and are in progress and not yet at the point where there is sufficient information for a definitive measurement. The Company believes the preliminary information provides a reasonable basis for estimating the fair values of these amounts, but is waiting for additional information necessary to finalize those fair values. Therefore, provisional measurements of fair values reflected are subject to change and such changes could be significant. The Company expects to finalize the valuation of tangible assets acquired, liabilities assumed, identifiable intangible assets and goodwill balances and complete the acquisition accounting as soon as reasonably practicable but no later than January 2, 2020. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
The goodwill arising from the acquisition represents the expected synergistic benefits of the transaction, primarily related to an increase in future revenues as a result of potential cross selling opportunities. The goodwill is not deductible for income tax purposes. A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows:
The results of the private company's operations are included in the condensed consolidated statements of operations beginning January 2, 2019 and were not considered material to the Company’s results of operations. For the three and six months ended June 30, 2019, acquisition related costs for the Private Company Acquisition were not material, and are included in general and administration expenses. The Company may incur additional acquisition related costs over the remainder of 2019. Acquisition of PortfolioCenter business On April 1, 2019, pursuant to an asset purchase agreement, Tamarac, Inc. (“Tamarac”), a wholly owned subsidiary of Envestnet, acquired certain of the assets, primarily consisting of intangible assets, and the assumption of certain of the liabilities of the PortfolioCenter business from Performance Technologies, Inc. (the “PC Seller”), a wholly owned subsidiary of The Charles Schwab Corporation. The PortfolioCenter Business provides investment advisors and investment advisory service providers with desktop, hosted and outsourced multicustodial software solutions. These solutions provide data-management and performance-measurement tools, as well as customizable accounting, reporting, and billing functions delivered through the commercial software application products known as PortfolioCenter Desktop, PortfolioCenter Hosted, PortfolioServices and Service Bureau. Tamarac acquired the PortfolioCenter Business to better serve small and mid-size RIA firms. The PortfolioCenter Business is included in the Company’s Envestnet Wealth Solutions segment. In connection with the PortfolioCenter Acquisition, Tamarac paid $17,500 in cash. Tamarac funded the PortfolioCenter Acquisition with available cash resources. The PC Seller is also entitled to an earn-out payment based on the PortfolioCenter Business’ revenue for the twelve-month period beginning April 1, 2020. The discounted amount of the contingent consideration liability is estimated to be $8,300. The preliminary consideration transferred in the acquisition was as follows:
The estimated fair values of the deferred income taxes, identifiable intangible assets, contingent consideration liability and goodwill balances are provisional and based on the information that was available to the Company as of the acquisition date. The estimated fair values of these provisional items are based on certain valuation and other studies and are in progress and not yet at the point where there is sufficient information for a definitive measurement. The Company believes the preliminary information provides a reasonable basis for estimating the fair values of these amounts, but is waiting for additional information necessary to finalize those fair values. Therefore, provisional measurements of fair values reflected are subject to change and such changes could be significant. The Company expects to finalize the valuation of deferred income taxes, liabilities assumed, identifiable intangible assets and goodwill balances and complete the acquisition accounting as soon as practicable but no later than April 1, 2020. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
The goodwill arising from the acquisition represents the expected synergistic benefits of the transaction, primarily related to an increase in future revenues as a result of expanding market opportunities within the mid-size and small RIA market, potential cross selling opportunities, and lower future operating expenses. The goodwill is deductible for income tax purposes. A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows:
The results of PortfolioCenter's operations are included in the condensed consolidated statements of operations beginning April 1, 2019. PortfolioCenter's revenues for the three and six months ended June 30, 2019 totaled $2,017. PortfolioCenter's pre-tax loss for the three and six months ended June 30, 2019 totaled $1,624. The pre-tax loss includes estimated acquired intangible asset amortization of $514 for the three and six months ended June 30, 2019. For the three and six months ended June 30, 2019, acquisition related costs for the PortfolioCenter Acquisition were not material, and are included in general and administration expenses. The Company may incur additional acquisition related costs over the remainder of 2019. Acquisition of PIEtech On May 1, 2019, the Company acquired all of the outstanding shares of capital stock of PIEtech, Inc., a Virginia corporation (“PIEtech”). PIEtech empowers financial advisors to use financial planning to efficiently motivate their clients to create, implement and maintain financial plans that best meet their lifetime financial goals. The technology and operations of PIEtech, which now operates as Envestnet | MoneyGuide, is included in the Envestnet Wealth Solutions segment. The acquisition of PIEtech (the “PIEtech Acquisition”) establishes Envestnet as a leader in financial planning solutions, providing advisors and their clients with access to a full spectrum of financial planning capabilities, and offering a broad range of data-driven, financial plan-informed financial wellness solutions, both domestically and internationally over time. Integration of PIEtech's MoneyGuide software with the Company's integrated technology platform is expected to reduce friction and enhance productivity for advisors. In connection with the PIEtech Acquisition, the Company paid net cash consideration of $299,370, subject to a working capital adjustment, and issued 3,184,713 shares of Envestnet common stock, par value $0.005 per share, to the sellers. The Company funded the PIEtech Acquisition with available cash resources and borrowings under its revolving credit facility. In connection with the PIEtech Acquisition, the Company established a retention bonus pool consisting of approximately $30,000 of cash and restricted stock units to be granted to employees and management of PIEtech as inducement grants. As a result, the Company adopted the Envestnet, Inc. 2019 Acquisition Equity Incentive Plan (the “2019 Equity Plan”) in order to make inducement grants to certain PIEtech employees who will join Envestnet | MoneyGuide. Envestnet agreed to grant at future dates, not earlier than the sixty day anniversary of the PIEtech Acquisition, up to 301,469 shares of Envestnet common stock in the form of restricted stock units (“RSUs”) and performance stock units (“PSUs”) pursuant to the 2019 Equity Plan and made cash retention payments of approximately $8,800 to certain legacy PIEtech employees who joined Envestnet | MoneyGuide. As of June 30, 2019, the Company has issued approximately 62,200 and 24,900 RSUs and PSUs, respectively, under the 2019 Equity Plan to legacy PIEtech employees. At this time the Company expects to issue approximately 214,000 additional RSUs and PSUs and expects to pay approximately $5,300 in cash bonus payments over the next three years in connection with the PIEtech Acquisition. The Company also granted membership interests in certain of the Company's equity method investments to two PIEtech executives with an estimated grant date fair market value of $8,900. These membership interests will vest on May 1, 2020 and become exercisable in future periods. As of June 30, 2019, the Company has recorded approximately $1,480 as a component of compensation and benefits in the condensed consolidated statement of operations with a corresponding liability in other non-current liabilities in the condensed consolidated balance sheets. The preliminary consideration transferred in the acquisition was as follows:
The estimated fair values of the deferred revenue, deferred income taxes, identifiable intangible assets, and goodwill balances are provisional and based on the information that was available to the Company as of the acquisition date. The estimated fair values of these provisional items are based on certain valuation and other studies and are in progress and not yet at the point where there is sufficient information for a definitive measurement. The Company believes the preliminary information provides a reasonable basis for estimating the fair values of these amounts, but is waiting for additional information necessary to finalize those fair values. Therefore, provisional measurements of fair values reflected are subject to change and such changes could be significant. The Company expects to finalize the valuation of deferred revenue, deferred income taxes, identifiable intangible assets and goodwill balances and complete the acquisition accounting as soon as practicable but no later than May 1, 2020. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
The goodwill arising from the acquisition represents the expected synergistic benefits of the transaction, primarily related to an increase in future revenues as a result of potential new business and cross selling opportunities. The goodwill is not deductible for income tax purposes. A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows:
The results of PIEtech's operations are included in the condensed consolidated statements of operations beginning May 1, 2019. PIEtech's revenues for the three and six months ended June 30, 2019 totaled $6,632. PIEtech's pre-tax loss for the three and six months ended June 30, 2019 totaled $3,422. The pre-tax loss includes estimated acquired intangible asset amortization of $4,142 for the three and six months ended June 30, 2019. For the three and six months ended June 30, 2019, acquisition related costs for the PIEtech Acquisition totaled approximately $11,269 and $16,189, respectively, and are included in general and administration expenses. Included in these amounts are approximately $8,800 in one-time cash retention bonuses, which are included the Company's corporate non-segment operating expenses in the condensed consolidated statements of operations. The Company may incur additional acquisition related costs over the remainder of 2019. Pro forma financial information The following pro forma financial information presents the combined results of operations of Envestnet, PortfolioCenter and PIEtech for the three and six months ended June 30, 2019 and 2018. The pro forma financial information presents the results as if the acquisition had occurred as of the beginning of 2018. The results of the private company acquisition are not included in the pro forma financial information presented below as they were not considered material to the Company's results of operations. The unaudited pro forma results presented include amortization charges for acquired intangible assets, interest expense, stock-based compensation expense and income tax. The Company's 2018 pro forma information includes the reversal of a valuation allowance on its deferred tax assets, transaction fee payments and retention bonus payments that were incurred in 2019 as a result of these acquisitions and reverses these amounts from the appropriate periods in 2019. All intercompany revenues have been eliminated within this pro forma information. Pro forma financial information is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place as of the beginning of 2018.
|
Prepaid Expenses and Other Current Assets |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expense and Other Assets, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following:
|
Property and Equipment |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment consists of the following:
During the three and six months ended June 30, 2019, the Company retired property and equipment that was no longer in service for the Envestnet Wealth Solutions segment with an historical cost of $2,396 and $3,642, respectively. During the three and six months ended June 30, 2019, the Company retired property and equipment that was no longer in service for the Envestnet Data & Analytics segment with an historical cost of $1,640 and $4,121, respectively. Gains and losses on asset retirements during the three and six months ended June 30, 2019 were not material. During the three and six months ended June 30, 2018, the Company retired property and equipment that was no longer in service for the Envestnet Wealth Solutions segment with an historical cost of $1,126, and $3,337, respectively. During the three and six months ended June 30, 2018, the Company retired property and equipment that was no longer in service for the Envestnet Data & Analytics segment with an historical cost of $2,525 and $3,401, respectively. Gains and losses on asset retirements during the three and six months ended June 30, 2018 were not material. Depreciation and amortization expense was as follows:
|
Internally Developed Software |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Computer Software, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Internally Developed Software | Internally Developed Software Internally developed software consists of the following:
Amortization expense was as follows:
|
Goodwill and Intangible Assets, Net |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Changes in the carrying amount of goodwill were as follows:
Intangible assets, net consist of the following:
Amortization expense was as follows:
Future amortization expense of the intangible assets as of June 30, 2019, is expected to be as follows:
|
Accrued Expenses and Other Liabilities |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities, Current [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following:
|
Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The Company’s outstanding debt obligations as of June 30, 2019 and December 31, 2018 were as follows:
Interest expense was comprised of the following and is included in other expense, net in the condensed consolidated statement of operations:
Convertible Notes due 2019 In 2014, the Company issued $172,500 of Convertible Notes due 2019 that mature on December 15, 2019. The Convertible Notes due 2019 bear interest at a rate of 1.75% per annum payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2015. The Convertible Notes due 2019 are general, unsecured obligations, subordinated in right of payment to the Company's obligations under its Credit Agreement. The effective interest rate of the liability component of the Convertible Notes due 2019 is equal to the stated interest rate plus the accretion of original issue discount. The effective interest rate on the liability component of the Convertible Notes due 2019 for three and six months ended June 30, 2019 and 2018 was 6%. Convertible Notes due 2023 In May 2018, the Company issued $345,000 of Convertible Notes due 2023 that mature on June 1, 2023. The Convertible Notes due 2023 bear interest at a rate of 1.75% per annum payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2018. The Convertible Notes due 2023 are general unsecured obligations, subordinated in right of payment to the Company's obligations under its Credit Agreement. The effective interest rate of the liability component of the Convertible Notes due 2023 is equal to the stated interest rate plus the accretion of original issue discount. The effective interest rate on the liability component of the Convertible Notes due 2023 for the three and six months ended June 30, 2019 was 6%. See “Note 15—Net Income (Loss) Per Share” for further discussion of the effect of conversion on net income (loss) per common share. Credit Agreement In July 2017, the Company and certain of its subsidiaries entered into a Second Amended and Restated Credit Agreement (“Second Amended and Restated Credit Agreement”) with a group of banks (“Banks”). Pursuant to the Second Amended and Restated Credit Agreement, the Banks have agreed to provide to the Company revolving credit commitments (“Revolving Credit Facility”) in the aggregate amount of up to $350,000 which amount may be increased by $50,000. The Company incurs interest on borrowings made under the Second Amended and Restated Credit Agreement at rates between 1.50% and 3.25% above LIBOR based on the Company’s total leverage ratio. Borrowings under the Second Amended and Restated Credit Agreement are scheduled to mature on July 18, 2022. Obligations under the Second Amended and Restated Credit Agreement are guaranteed by substantially all of the Company’s U.S. subsidiaries. The Second Amended and Restated Credit Agreement includes certain financial covenants and, as of June 30, 2019, the Company was in compliance with these requirements.
|
Fair Value Measurements |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company follows ASC 825-10, “Financial Instruments,“ which provides companies the option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect of the Company’s choice to use fair value on its earnings. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheet. The Company has not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. Financial assets and liabilities recorded at fair value in the condensed consolidated balance sheet are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels:
The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018, based on the three-tier fair value hierarchy:
Level I assets and liabilities include money market funds not insured by the Federal Deposit Insurance Corporation (“FDIC”) and deferred compensation liability. The Company periodically invests excess cash in money market funds not insured by the FDIC. The Company believes that the investments in money market funds are on deposit with creditworthy financial institutions and that the funds are highly liquid. These money market funds are considered Level I and are included in cash and cash equivalents in the condensed consolidated balance sheets. Time deposit account fair values are determined by trade confirmations which mature daily and therefore are considered highly liquid investments. The fair value of the deferred compensation liability is based upon the daily quoted market prices for net asset value on the various funds selected by participants. Level III assets and liabilities consist of the estimated fair values of contingent consideration as well as the assets to fund the Company's deferred compensation liability. The fair market value of the assets to fund the Company's deferred compensation liability is based upon the cash surrender value of its life insurance premiums. The fair value of the contingent consideration liabilities related to certain of the Company's acquisitions were estimated using a discounted cash flow method with significant inputs that are not observable in the market and thus represents a Level III fair value measurement as defined in ASC 820, “Fair Value Measurements and Disclosures.“ The significant inputs in the Level III measurement not supported by market activity included our assessments of expected future cash flows related to these acquisitions during the subsequent periods from the date of acquisition are appropriately discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of their respective agreements. The Company utilized a discounted cash flow method with expected future performance of these acquisitions, and their ability to meet the target performance objectives as the main driver of the valuation, to arrive at the fair values of their respective contingent consideration. The Company will continue to reassess the fair values of its contingent consideration liabilities at each reporting date until settlement. Changes to these estimated fair values will be recognized in the Company's earnings and included in general and administrative expenses on the condensed consolidated statements of operations. The table below presents a reconciliation of contingent consideration liabilities, which the Company measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2018 to June 30, 2019:
The table below presents a reconciliation of the assets used to fund deferred the Company's deferred compensation liability, which is measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2018 to June 30, 2019:
The asset value, which is included in other non-current assets on the condensed balance sheets, increased due to funding of the plan and gains on the underlying investment vehicles. 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 change in circumstances that caused the transfer, in accordance with the Company’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. There were no transfers between Levels I, II and III during the six months ended June 30, 2019. On December 15, 2014, the Company issued $172,500 of Convertible Notes due 2019. As of June 30, 2019 and December 31, 2018, the carrying value of the Convertible Notes due 2019 equaled $169,182 and $165,711, respectively, and represented the aggregate principal amount outstanding less the unamortized discount and debt issuance costs. As of June 30, 2019 and December 31, 2018, the estimated fair value of the Convertible Notes due 2019 was $193,983 and $174,101, respectively. The Company considered the Convertible Notes due 2019 to be a Level II liability at June 30, 2019 and used a market approach to calculate the fair value. The estimated fair value was determined based on the estimated or actual bids and offers of the Convertible Notes due 2019 in an over-the-counter market on June 30, 2019 (See “Note 9—Debt”). On May 25, 2018, the Company issued $345,000 of Convertible Notes due 2023. As of June 30, 2019 and December 31, 2018, the carrying value of the Convertible Notes due 2023 equaled $300,078 and $294,725, respectively, and represented the aggregate principal amount outstanding less the unamortized discount and debt issuance costs. As of June 30, 2019 and December 31, 2018, the fair value of the Convertible Notes due 2023 was $411,896 and $339,024, respectively. The Company considered the Convertible Notes due 2023 to be a Level II liability at June 30, 2019 and used a market approach to calculate the fair value. The estimated fair value was determined based on the estimated or actual bids and offers of the Convertible Notes due 2023 in an over-the-counter market on June 30, 2019 (See “Note 9—Debt”). As of June 30, 2019 and December 31, 2018, there was $145,000 and $0, respectively, outstanding on the revolving credit facility under the Second Amended and Restated Credit Agreement. As of June 30, 2019, the outstanding balance on the revolving credit facility approximated fair value as the revolving credit facility bore interest at variable rates and we believe our credit risk quality was consistent with when the debt originated. The Company considered the revolving credit facility to be a Level I liability as of June 30, 2019 and December 31, 2018 (See “Note 9—Debt”). We consider the recorded value of our other financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable and accounts payable, to approximate the fair value of the respective assets and liabilities at June 30, 2019 based upon the short-term nature of these assets and liabilities.
|
Revenue |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Disaggregation of revenue The following table presents the Company’s revenues disaggregated by major source:
One customer accounted for more than 10% of the Company’s total revenues:
Fidelity accounted for 19% and 20% of Envestnet Wealth Solutions revenues for the three and six months ended June 30, 2019, respectively. Fidelity accounted for 21% and 21% of Envestnet Wealth Solutions revenues for the three and six months ended June 30, 2018, respectively. No single customer amounts for Envestnet Data & Analytics exceeded 10% of the segment total for any period presented. The following table presents the Company’s revenues disaggregated by geography, based on the billing address of the customer:
Remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019:
Only fixed consideration from significant contracts with customers is included in the amounts presented above. The Company has applied the practical expedients and exemption and therefore does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less; (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed; and (iii) contracts for which the variable consideration is allocated entirely to a wholly unsatisfied performance obligations or to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation. Contract balances Total deferred revenue as of June 30, 2019 increased by $13,362, which is primarily the result of the PIEtech and PortfolioCenter acquisitions and an increase in deferred revenue related to subscription-based services during the six months ended June 30, 2019, the majority of which will be recognized over the course of the next twelve months. The amount of revenue recognized that was included in the opening deferred revenue balance was $6,865 and $5,737 for the three months ended June 30, 2019 and 2018, respectively. The amount of revenue recognized that was included in the opening deferred revenue balance was $16,588 and $13,253 for the six months ended June 30, 2019 and 2018, 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 $9,598 and $7,014 as of June 30, 2019 and December 31, 2018, respectively. Amortization expense for the deferred sales incentive compensation was $753 and $536 for the three months ended June 30, 2019, and 2018, respectively. Amortization expense for the deferred sales incentive compensation was $1,404 and $1,018 for the six months ended June 30, 2019, and 2018, respectively. No significant impairment loss for capitalized costs was recorded during the period. The Company has applied the practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period would have been one year or less. These costs are included in compensation and benefits expenses on the condensed consolidated statements of operations.
|
Cost of Revenues |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of Revenue [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of Revenues | Cost of Revenues The following table summarizes cost of revenues by revenue category:
|
Stock-Based Compensation |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company has stock options and restricted stock units outstanding under the 2004 Stock Incentive Plan (the “2004 Plan”), the 2010 Long-Term Incentive Plan (the “2010 Plan”) and the 2019 Equity Plan. As a result of the PIEtech Acquisition (See “Note 3—Business Acquisitions”), the Company adopted the 2019 Equity Plan in order to make inducement grants to certain PIEtech employees who will join Envestnet | MoneyGuide. Envestnet agreed to grant at future dates, not earlier than the sixty day anniversary of the PIEtech Acquisition, up to 301,469 shares of Envestnet common stock in the form of RSUs and PSUs pursuant to the 2019 Equity Plan. The RSUs vest over time and the PSUs vest upon the achievement of meeting certain performance conditions as well as a subsequent service condition. The Company is recognizing the estimated expense on a graded-vesting method over a requisite service period of three to five years, which is the estimated vesting period. The Company estimates the expected vesting amount and recognizes compensation expense only for those awards expected to vest. This estimate is reassessed by management each reporting period and may change based upon new facts and circumstances. Changes in the assumptions impact the total amount of expense and are recognized over the vesting period. As of June 30, 2019, the maximum number of common shares available for future issuance under the Company’s plans is 2,233,604. 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 26.1% for the three and six months ended June 30, 2019. The tax effect on stock-based compensation expense above was calculated using a blended statutory rate of 25.3% for the three and six months ended June 30, 2018. Stock Options The following weighted average assumptions were used to value options granted during the periods indicated:
The following table summarizes option activity under the Company’s plans:
Exercise prices of stock options outstanding as of June 30, 2019 range from $7.15 to $55.29. At June 30, 2019, there was $1,806 of unrecognized stock-based compensation expense related to unvested stock options, which the Company expects to recognize over a weighted-average period of 2.3 years. Restricted Stock Units and Restricted Stock Awards Periodically, the Company grants restricted stock unit awards and performance stock units and awards to employees. Performance-based restricted unit awards vest upon the achievement of certain pre-established business and financial metrics as well as service condition. The business and financial metrics governing the vesting of these performance-based restricted stock unit awards provide thresholds that dictate the number of shares to vest upon each evaluation date, which range from 50% to 150%. If these metrics are achieved, as defined in the individual grant terms, these shares would cliff vest 3 years from the grant date. The following is a summary of the activity for unvested restricted stock units and performance stock units granted under the Company’s plans:
At June 30, 2019, there was $82,846 of unrecognized stock-based compensation expense related to unvested restricted stock units and awards, which the Company expects to recognize over a weighted-average period of 2.2 years. At June 30, 2019, there was $17,371 of unrecognized stock-based compensation expense related to unvested performance-based restricted stock units and awards, which the Company expects to recognize over a weighted-average period of 2.7 years.
|
Income Taxes |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The following table includes the Company’s loss before income tax provision (benefit), income tax provision (benefit) and effective tax rate:
For the three and six months ended June 30, 2019, the Company's effective tax rate differed from the statutory rate primarily due to the release of the Company's valuation allowance of $21,907 primarily as a result of additional deferred tax liabilities recorded from the PIEtech Acquisition, the windfall from share-based compensation, federal and state research and development credits, and additional accruals for uncertain tax positions. For the three months ended June 30, 2018, the Company's effective tax rate differed from the statutory rate primarily due to the valuation allowance the Company had placed on all US deferreds with the exception of indefinite lived intangibles, additional accruals for uncertain tax positions, the impact of clarifying Base Erosion and Anti Abuse (“BEAT”) tax positions, as well as differences between the foreign tax rates and statutory US tax rate. For the six months ended June 30, 2018, the Company's effective tax rate differed from the statutory rate primarily due to the release of the Company’s valuation allowance as a result of additional deferred tax liabilities recorded with the acquisition of FolioDynamix, additional accruals for uncertain tax positions as well as differences between the foreign tax rates and statutory US tax rate. In December 2017, the Tax Cuts and Jobs Act (“Tax Act”) was enacted into United States law. Beginning in 2018, the Tax Act includes the global intangible low-taxed income (“GILTI”) and BEAT provisions. The Company elected to account for GILTI tax in the period in which it is incurred. The GILTI provision requires the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company expects to fully offset any GILTI income with Net Operating Losses (“NOLs”). The Company has reevaluated the entity classification of certain of its Controlled Foreign Corporations (“CFCs”); and as such, has changed the classification of its Indian entities to a flow-through status. As a result, the Company does not currently expect to be subject to BEAT. Additionally, the two Indian entities are no longer subject to GILTI. The Company's total gross liability for unrecognized tax benefits, exclusive of interest and penalties, was $18,102 and $15,628 at June 30, 2019 and December 31, 2018, respectively. Of this amount, a portion of the unrecognized tax benefits was recorded as a reduction of deferred tax assets instead of a non-current liability. The portion of the unrecognized tax benefits, exclusive of interest and penalties, recorded as a non-current liability is $6,411 and $4,429 at June 30, 2019 and December 31, 2018, respectively. At June 30, 2019, the amount of unrecognized tax benefits, including interest and penalties, that would benefit the Company’s effective tax rate, if recognized, was $12,116. At this time, the Company estimates that the liability for unrecognized tax benefits could decrease in the next twelve months as it is anticipated that reviews by tax authorities will be completed. The Company recognizes potential interest and penalties related to unrecognized tax benefits in income tax expense. Income tax expense includes $898 and $548 of potential interest and penalties related to unrecognized tax benefits for the six months ended June 30, 2019 and 2018, respectively. The Company had accrued interest and penalties of $6,924 and $5,977 as of June 30, 2019 and December 31, 2018, respectively.
|
Net Income (Loss) Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic income (loss) per common share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted income (loss) per share, the basic weighted average number of shares is increased by the dilutive effect of stock options, common warrants, restricted stock awards, restricted stock units and convertible notes using the treasury stock method, if dilutive. The Company accounts for the effect of its convertible notes (See “Note 9—Debt”) on diluted earnings per share using the treasury stock method since they may be settled in cash, shares or a combination thereof at the Company’s option. As a result, the Convertible Notes due 2019 and Convertible Notes due 2023 will have no effect on diluted earnings per share until the Company’s stock price exceeds the conversion price of $62.88 and $68.31 per share and certain other criteria are met, respectively, or if the trading price of the convertible notes meets certain criteria. In the period of conversion, the convertible notes will have no impact on diluted earnings if they are settled in cash and will have an impact on dilutive earnings per share if they are settled in shares upon conversion. The following table provides the numerators and denominators used in computing basic and diluted net income (loss) per share attributable to Envestnet, Inc.:
Securities that were anti-dilutive and therefore excluded from the computation of diluted loss per share are as follows:
|
Commitments and Contingencies |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
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 in the condensed consolidated balance sheets. The Company enters into unconditional purchase obligations arrangements for certain of its services that it receives in the normal course of business. Legal Proceedings The Company and its subsidiary, Yodlee, Inc. (“Yodlee”), have been named as defendants in a lawsuit filed on July 17, 2019, by FinancialApps, LLC (“FinancialApps”) in the United States District Court for the District of Delaware. The case caption is FinancialApps, LLC v. Envestnet Inc., et al., No. 19-cv-1337 (D. Del.). FinancialApps alleges that, after entering into a 2017 services agreement with Yodlee, Envestnet and Yodlee breached the agreement and misappropriated proprietary information to develop competing credit risk assessment software. The complaint includes claims for, among other things, misappropriation of trade secrets, fraud, tortious interference with prospective business opportunities, unfair competition, copyright infringement and breach of contract. FinancialApps is seeking significant monetary damages and various equitable and injunctive relief. An unopposed scheduling motion is pending which, if granted, would require Envestnet and Yodlee to file their responsive pleadings, including counterclaims, by September 17, 2019. The Company believes the allegations in the complaint are without merit and intends to defend the action vigorously. 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 June 30, 2019. 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. Contingencies Certain of the Company’s revenues are subject to sales and use taxes in certain jurisdictions where it conducts business in the United States. As of June 30, 2019 and December 31, 2018, the Company estimated a sales and use tax liability of $10,989 and $8,643, respectively, related to revenues in multiple jurisdictions. This amount is included in accrued expenses and other liabilities on the condensed consolidated balance sheets. The Company also estimated a sales and use tax receivable of $5,139 and $5,246, respectively, related to the estimated recoverability of amounts due from customers. This amount is included in prepaid expenses and other current assets on the condensed consolidated balance sheets. Additional future information obtained from the applicable jurisdictions may affect the Company's estimate of its sales and use tax liability, but such change in the estimate cannot currently be made.
|
Leases |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases On January 1, 2019, the Company adopted ASU 2016-02 and all subsequent ASUs that modified Topic 842 (“ASC 842”) using the effective date transition method. We elected the available package of practical expedients. The Company has elected to apply the short-term lease exemption to all of its classes of underlying assets. The standard had a material impact on the Company's condensed consolidated balance sheets, but did not have an impact on the Company's condensed consolidated statements of operations. The most significant impact was the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases. Adoption of the standard had no impact to previously reported results. At inception, the Company determines if an arrangement is a lease. Operating leases are included in ROU assets, current lease liabilities and non-current lease liabilities on our consolidated balance sheets. The Company does not have material finance leases. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the remaining lease term. As none of the Company's leases provide an implicit rate, the Company uses an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes prepaid payments and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient to account for non-lease components as part of the lease component for all asset classes. The majority of the Company's lease agreements are real estate leases. The Company has operating leases for corporate offices and certain equipment, some of which may include options to extend the leases for up to 20 years, and some of which may include options to terminate the leases within 90 days. The Company's leases have remaining lease terms of 1 month to 14 years. For the three and six months ended June 30, 2019, the total operating lease cost was $4,377 and $8,495, respectively. The Company did not have significant sublease income, short-term lease cost, or variable lease cost for the three and six months ended June 30, 2019. As of June 30, 2019, the weighted average remaining lease term was 8.9 years and the weighted average discount rate was 6.3%. Cash paid for amounts included in the measurement of the operating lease liability for the three and six months ended June 30, 2019, was $4,730 and $9,386, respectively. Future minimum lease payments under non-cancellable leases, as of June 30, 2019, were as follows:
As of June 30, 2019, the Company has several additional operating leases that have not yet commenced but will commence in 2019 with lease terms of 1 to 3 years. For the year ended December 31, 2018, the Company disclosed the following information related to its leases: The Company rents office space under leases that expire at various dates through 2030. Future minimum lease commitments under these operating leases, as of December 31, 2018, were as follows:
|
Segment Information |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Business segments are generally organized around our business services. Our business segments are: •Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions. •Envestnet Data & Analytics – a leading data aggregation and data intelligence platform powering dynamic, cloud-based innovation for digital financial services. The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes. Nonsegment expenses include salary and benefits for certain corporate employees and officers, certain types of professional service expenses and insurance, acquisition related transaction costs, restructuring charges, and other non-recurring and/or non-operationally related expenses. Inter-segment revenues were not material for the three and six months ended June 30, 2019 and 2018. See “Note 11—Revenue” for detail of revenues by segment. The following table presents a reconciliation from income (loss) from operations by segment to condensed consolidated net income (loss) attributable to Envestnet, Inc.:
Segment assets consist of cash, accounts receivable, prepaid expenses and other current assets, property and equipment, net, internally developed software, net, goodwill, and intangible assets, net, and other non-current assets. Segment capital expenditures consist of property and equipment and internally developed software expenditures. A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures follows:
|
Geographical Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographical Information | Geographical Information The following table sets forth property and equipment, net by geographic area:
See “Note 11—Revenue” for detail of revenues by geographic area.
|
Basis of Presentation (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements—In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases,” which amends the requirements for assets and liabilities recognized for all leases longer than twelve months. This standard is effective for financial statements issued by public companies for the annual and interim periods beginning after December 15, 2018. These changes became effective for the Company’s fiscal year beginning January 1, 2019 and have been reflected in these condensed consolidated financial statements (See “Note 17—Leases”). In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting.” This update clarifies the accounting for share-based payment transactions for acquiring goods and services from non-employees. Specifically, the update aligns the accounting for payments to non-employees to match the accounting for payments to employees, no longer accounting for these transactions differently. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2018. These changes became effective for the Company's fiscal year beginning January 1, 2019. This standard will be applied prospectively to all future non-employee share-based payments and is reflected in these condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).” This update is intended to guide entities in evaluating the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance for determining when the arrangement includes a software license. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2019. Early adoption of the standard is permitted. The Company early adopted this standard beginning January 1, 2019, noting that this standard will be applied prospectively. Adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements. Not Yet Adopted—In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326).” This update significantly changes the way that entities will be required to measure credit losses. The new standard requires entities to estimate credit losses based upon an “expected credit loss” approach rather than the “incurred loss” approach, which is currently used. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. The change in approach is anticipated to impact the timing of recognition of credit losses. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2019. Early adoption of the standard is permitted. The Company is currently evaluating the potential impact of this guidance on its condensed consolidated financial statements. |
Leases | On January 1, 2019, the Company adopted ASU 2016-02 and all subsequent ASUs that modified Topic 842 (“ASC 842”) using the effective date transition method. We elected the available package of practical expedients. The Company has elected to apply the short-term lease exemption to all of its classes of underlying assets. The standard had a material impact on the Company's condensed consolidated balance sheets, but did not have an impact on the Company's condensed consolidated statements of operations. The most significant impact was the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases. Adoption of the standard had no impact to previously reported results. At inception, the Company determines if an arrangement is a lease. Operating leases are included in ROU assets, current lease liabilities and non-current lease liabilities on our consolidated balance sheets. The Company does not have material finance leases. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the remaining lease term. As none of the Company's leases provide an implicit rate, the Company uses an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes prepaid payments and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient to account for non-lease components as part of the lease component for all asset classes. The majority of the Company's lease agreements are real estate leases.
|
Basis of Presentation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of cash and cash equivalents | The following table reconciles cash, cash equivalents and restricted cash from the condensed consolidated balance sheets to amounts reported within the condensed consolidated statements of cash flows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of cash, cash equivalents and restricted cash | The following table reconciles cash, cash equivalents and restricted cash from the condensed consolidated balance sheets to amounts reported within the condensed consolidated statements of cash flows:
|
Business Acquisitions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of consideration transferred in the acquisition | The preliminary consideration transferred in the acquisition was as follows:
The consideration transferred in the acquisition was as follows:
The preliminary consideration transferred in the acquisition was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the estimated fair values of the assets acquired and liabilities assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of intangible assets acquired, estimated useful lives and amortization method | summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows:
A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows:
A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, pro forma information | Pro forma financial information is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place as of the beginning of 2018.
|
Prepaid Expenses and Other Current Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expense and Other Assets, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following:
|
Property and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of property and equipment, net | Property and equipment consists of the following:
Depreciation and amortization expense was as follows:
|
Internally Developed Software (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Computer Software, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of internally developed software, net | Internally developed software consists of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amortization expense | Amortization expense was as follows:
|
Goodwill and Intangible Assets, Net (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the carrying amount of goodwill by segment | Changes in the carrying amount of goodwill were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of intangible assets, net | Intangible assets, net consist of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amortization expense | Amortization expense was as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future amortization expense of the intangible assets | Future amortization expense of the intangible assets as of June 30, 2019, is expected to be as follows:
|
Accrued Expenses and Other Liabilities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities, Current [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule accrued expenses and other liabilities | Accrued expenses and other liabilities consist of the following:
|
Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of convertible debt obligations | The Company’s outstanding debt obligations as of June 30, 2019 and December 31, 2018 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of interest expense | Interest expense was comprised of the following and is included in other expense, net in the condensed consolidated statement of operations:
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in fair value of the Company’s financial assets and liabilities measured at fair value | The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018, based on the three-tier fair value hierarchy:
(3) The fair market value of the deferred compensation liability is based on the daily quoted market prices for the net asset value of the various funds in which the participants have selected, and is included in other non-current liabilities in the condensed consolidated balance sheets.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of changes in the fair value of the Company's Level 3 liability | The table below presents a reconciliation of contingent consideration liabilities, which the Company measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2018 to June 30, 2019:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of changes in the fair value of the Company's Level 3 assets | The table below presents a reconciliation of the assets used to fund deferred the Company's deferred compensation liability, which is measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2018 to June 30, 2019:
|
Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disaggregation of revenue by major source | The following table presents the Company’s revenues disaggregated by major source:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of revenues from major customers | One customer accounted for more than 10% of the Company’s total revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disaggregation of revenue by geography | The following table presents the Company’s revenues disaggregated by geography, based on the billing address of the customer:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated revenue expected to be recognized in the future | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019:
|
Cost of Revenues (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of Revenue [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of costs of revenues by revenue category | The following table summarizes cost of revenues by revenue category:
|
Stock-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 weighted average assumptions used to value options granted | The following weighted average assumptions were used to value options granted during the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of option activity under the Company's plans | The following table summarizes option activity under the Company’s plans:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the activity for unvested restricted stock units and awards granted under the Company's plans | The following is a summary of the activity for unvested restricted stock units and performance stock units granted under the Company’s plans:
|
Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of loss before income tax provision (benefit) | The following table includes the Company’s loss before income tax provision (benefit), income tax provision (benefit) and effective tax rate:
|
Net Income (Loss) Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of the numerators and denominators used in computing basic and diluted net loss per share attributable to common stockholders | The following table provides the numerators and denominators used in computing basic and diluted net income (loss) per share attributable to Envestnet, Inc.:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 loss per share are as follows:
|
Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, operating lease, liability, maturity | Future minimum lease payments under non-cancellable leases, as of June 30, 2019, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum rental payments for operating leases | The Company rents office space under leases that expire at various dates through 2030. Future minimum lease commitments under these operating leases, as of December 31, 2018, were as follows:
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 condensed consolidated net income (loss) attributable to Envestnet, Inc.:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures | A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures follows:
|
Geographical Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property, plant, and equipment, net by geographic area | The following table sets forth property and equipment, net by geographic area:
|
Organization and Description of Business (Details) proprietary_product in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2019
state
advisor
account_product
proprietary_product
segment
investment_product
| |
Products and Services [Line Items] | |
Number of operating segments | segment | 2 |
Number of RIAs | advisor | 4 |
Number of states with which the broker-dealer is registered | state | 50 |
Envestnet Enterprise | |
Products and Services [Line Items] | |
Number of investment products | investment_product | 19,900 |
Envestnet Portfolio Management Consultants (“PMC”) | |
Products and Services [Line Items] | |
Number of third party managed account products and portfolio | account_product | 4,500 |
Number of proprietary products | proprietary_product | 1 |
Basis of Presentation (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 77,717 | $ 289,345 | ||
Total cash, cash equivalents and restricted cash | 78,043 | 289,671 | $ 134,260 | $ 62,115 |
Prepaid Expenses and Other Current Assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 158 | 158 | ||
Other Noncurrent Assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 168 | $ 168 |
Business Acquisitions (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Apr. 01, 2019 |
Jan. 02, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Business Acquisition [Line Items] | ||||||
Amortization of intangible assets | $ 17,054 | $ 13,419 | $ 29,582 | $ 27,354 | ||
Private Company Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration liability | $ 7,580 | |||||
Cash consideration | $ 11,173 | |||||
PortfolioCenter Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration liability | $ 8,300 | |||||
Cash consideration | $ 17,500 | |||||
Revenue of acquiree since acquisition date, actual | 2,017 | 2,017 | ||||
Earnings (loss) of acquiree since acquisition date, actual | (1,624) | (1,624) | ||||
Amortization of intangible assets | $ 514 | $ 514 |
Business Acquisitions (Details) - USD ($) $ in Thousands |
May 01, 2019 |
Apr. 01, 2019 |
Jan. 02, 2019 |
---|---|---|---|
Private Company Acquisition | |||
Consideration transferred in acquisition | |||
Cash consideration | $ 11,173 | ||
Purchase consideration liability | 6,240 | ||
Contingent consideration liability | 7,580 | ||
Working capital adjustment | 70 | ||
Total | $ 25,063 | ||
PortfolioCenter Acquisition | |||
Consideration transferred in acquisition | |||
Cash consideration | $ 17,500 | ||
Contingent consideration liability | 8,300 | ||
Total | $ 25,800 | ||
PIEtech Acquisition | |||
Consideration transferred in acquisition | |||
Cash consideration | $ 299,370 | ||
Stock consideration | 222,484 | ||
Less: cash acquired | (6,360) | ||
Total | $ 515,494 |
Business Acquisitions (Pro Forma Information) (Details) - Envestnet, PortfolioCenter and PIEtech - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Business Acquisition [Line Items] | ||||
Revenues | $ 228,522 | $ 215,240 | $ 443,275 | $ 426,291 |
Net income (loss) attributable to Envestnet, Inc. | $ (7,612) | $ (1,661) | $ (18,857) | $ 5,186 |
Net income (loss) per share attributable to Envestnet, Inc.: | ||||
Basic (in dollars per share) | $ (0.15) | $ (0.03) | $ (0.37) | $ 0.11 |
Diluted (in dollars per share) | $ (0.15) | $ (0.03) | $ (0.37) | $ 0.10 |
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid technology | $ 9,801 | $ 6,766 |
Advance payroll taxes and benefits | 10,802 | 0 |
Non-income tax receivables | 8,279 | 6,240 |
Prepaid outside information services | 1,989 | 1,515 |
Other | 9,175 | 9,036 |
Total prepaid expenses and other current assets | $ 40,046 | $ 23,557 |
Internally Developed Software (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Property, Plant and Equipment [Line Items] | |||||
Internally developed software | $ 85,993 | $ 85,993 | $ 70,410 | ||
Less: accumulated amortization | (37,934) | (37,934) | (32,201) | ||
Internally developed software, net | 48,059 | 48,059 | $ 38,209 | ||
Amortization expense | $ 3,110 | $ 1,846 | $ 5,733 | $ 3,539 | |
Internally developed software | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Life | 5 years |
Goodwill and Intangible Assets, Net (Future Expense) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Future amortization expense of the intangible assets | ||
Remainder of 2019 | $ 37,887 | |
2020 | 71,524 | |
2021 | 61,555 | |
2022 | 57,857 | |
2023 | 46,748 | |
Thereafter | 233,588 | |
Total | $ 509,159 | $ 305,241 |
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Components of accrued expenses | ||
Accrued investment manager fees | $ 43,966 | $ 50,635 |
Accrued compensation and related taxes | 44,411 | 50,598 |
Sales and use tax payable | 12,006 | 9,733 |
Accrued transaction costs | 4,812 | 4,543 |
Accrued professional services | 2,599 | 4,517 |
Other accrued expenses | 10,814 | 13,272 |
Total accrued expenses | $ 118,608 | $ 133,298 |
Debt (Summary) (Details) - USD ($) |
Jun. 30, 2019 |
Dec. 31, 2018 |
Dec. 31, 2014 |
---|---|---|---|
Convertible Notes due 2019 | |||
Outstanding debt obligations | |||
Face amount | $ 172,500,000 | $ 172,500,000 | $ 172,500,000 |
Unaccreted discount on Convertible Notes | (2,888,000) | (5,890,000) | |
Unamortized issuance costs on Convertible Notes | (430,000) | (899,000) | |
Convertible Notes carrying value | 169,182,000 | 165,711,000 | |
Convertible Notes due 2023 | |||
Outstanding debt obligations | |||
Face amount | 345,000,000 | 345,000,000 | |
Unaccreted discount on Convertible Notes | (38,101,000) | (42,641,000) | |
Unamortized issuance costs on Convertible Notes | (6,821,000) | (7,634,000) | |
Convertible Notes carrying value | 300,078,000 | 294,725,000 | |
Credit Agreement | |||
Outstanding debt obligations | |||
Revolving credit facility balance | $ 145,000,000 | $ 0 |
Debt (Interest) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Interest Expense, Debt [Abstract] | ||||
Total | $ 9,896 | $ 5,630 | ||
Convertible Notes Credit And Amended And Restated Credit Agreements | ||||
Interest Expense, Debt [Abstract] | ||||
Accretion of debt discount | $ 3,784 | $ 2,411 | 7,542 | 3,829 |
Coupon interest | 2,264 | 1,366 | 4,528 | 2,121 |
Amortization of issuance costs | 862 | 621 | 1,720 | 1,071 |
Interest on revolving credit facility | 1,196 | 1,429 | 1,196 | 3,994 |
Undrawn and other fees | 157 | 165 | 373 | 213 |
Total | $ 8,263 | $ 5,992 | $ 15,359 | $ 11,228 |
Debt (Convertible) (Details) - USD ($) |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
May 31, 2018 |
Dec. 31, 2014 |
---|---|---|---|---|---|
Convertible Notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 172,500,000 | $ 172,500,000 | $ 172,500,000 | ||
Interest rate (as a percent) | 1.75% | ||||
Effective interest rate (as a percent) | 6.00% | 6.00% | |||
Convertible notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 345,000,000 | ||||
Interest rate (as a percent) | 1.75% | ||||
Effective interest rate (as a percent) | 6.00% |
Debt (Credit Agreement) (Details) - Second Amended and Restated Credit Agreement - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jul. 31, 2017 |
|
Debt Instrument [Line Items] | ||
Credit facility amount | $ 350,000,000 | |
Right to increase credit facility, amount | $ 50,000,000 | |
London Interbank Offered Rate (LIBOR) | Minimum | ||
Debt Instrument [Line Items] | ||
Spread on variable rate basis (as a percent) | 1.50% | |
London Interbank Offered Rate (LIBOR) | Maximum | ||
Debt Instrument [Line Items] | ||
Spread on variable rate basis (as a percent) | 3.25% |
Fair Value Measurements (Level III) (Details) - Recurring Basis $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Changes in the fair value of Contingent Consideration Liabilities | |
Balance | $ 732 |
Settlement of contingent consideration liability | (749) |
Accretion on contingent consideration | 560 |
Balance | 16,423 |
Reconciliation of assets to fund deferred compensation liability | |
Balance | 6,346 |
Contributions and fair value adjustments | 1,745 |
Balance | 8,091 |
Private Company Acquisition | |
Changes in the fair value of Contingent Consideration Liabilities | |
Payment of contingent consideration liability | 7,580 |
PortfolioCenter Acquisition | |
Changes in the fair value of Contingent Consideration Liabilities | |
Payment of contingent consideration liability | $ 8,300 |
Fair Value Measurements (Narrative) (Details) - USD ($) |
Jun. 30, 2019 |
Dec. 31, 2018 |
May 25, 2018 |
Dec. 15, 2014 |
---|---|---|---|---|
Fair Value Measurements | ||||
Convertible Notes due 2023 | $ 300,078,000 | $ 294,725,000 | ||
2019 Convertible Notes | ||||
Fair Value Measurements | ||||
Face amount | $ 172,500,000 | |||
Debt instrument, fair value disclosure | 193,983,000 | 174,101,000 | ||
2023 Convertible Notes | ||||
Fair Value Measurements | ||||
Face amount | $ 345,000,000 | |||
Debt instrument, fair value disclosure | 411,896,000 | 339,024,000 | ||
Second Amended and Restated Credit Agreement | ||||
Fair Value Measurements | ||||
Revolving credit facility balance | 145,000,000 | 0 | ||
Carrying Value | 2019 Convertible Notes | ||||
Fair Value Measurements | ||||
Convertible Notes due 2023 | 169,182,000 | 165,711,000 | ||
Carrying Value | 2023 Convertible Notes | ||||
Fair Value Measurements | ||||
Convertible Notes due 2023 | $ 300,078,000 | $ 294,725,000 |
Revenue (Major Customers) (Details) - Revenue from contract with customer benchmark - Customer concentration risk - Fidelity |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Major Customers | ||||
Revenue as a percentage of the company's total | 15.00% | 16.00% | 15.00% | 16.00% |
Envestnet Wealth Solutions | ||||
Major Customers | ||||
Revenue as a percentage of the company's total | 19.00% | 21.00% | 20.00% | 21.00% |
Revenue (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Revenue from Contract with Customer [Abstract] | ||||
Increase (decrease) in contract with customer liability | $ 13,362 | |||
Recognized deferred revenue | $ 6,865 | $ 5,737 | 16,588 | $ 13,253 |
Deferred sales incentive compensation | 9,598 | 7,014 | 9,598 | 7,014 |
Amortization expense for the deferred sales incentive compensation | $ 753 | $ 536 | $ 1,404 | $ 1,018 |
Cost of Revenues (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Cost of revenues | $ 72,080 | $ 67,627 | $ 133,725 | $ 130,561 |
Asset-based | ||||
Cost of revenues | 60,293 | 56,748 | 114,135 | 114,320 |
Subscription-based | ||||
Cost of revenues | 6,697 | 6,213 | 14,374 | 11,439 |
Professional services and other revenues | ||||
Cost of revenues | $ 5,090 | $ 4,666 | $ 5,216 | $ 4,802 |
Stock-Based Compensation (Details) - shares |
2 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
May 01, 2019 |
|
Stock-Based compensation | ||||||
Maximum number of shares available for future issuance (in shares) | 2,233,604 | 2,233,604 | 2,233,604 | |||
Statutory rate (as a percent) | 26.10% | 25.30% | 25.30% | 25.30% | ||
PIEtech Acquisition | Restricted Stock Units and Performance Stock Units | Equity Plan | ||||||
Stock-Based compensation | ||||||
Number of shares authorized (in shares) | 301,469 | |||||
Minimum | PIEtech Acquisition | Restricted Stock Units and Performance Stock Units | Equity Plan | ||||||
Stock-Based compensation | ||||||
Vesting period | 3 years | |||||
Maximum | PIEtech Acquisition | Restricted Stock Units and Performance Stock Units | Equity Plan | ||||||
Stock-Based compensation | ||||||
Vesting period | 5 years |
Stock-Based Compensation (Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Summary of employee stock-based compensation expense | ||||
Stock-based compensation expense | $ 13,434 | $ 10,476 | $ 26,298 | $ 18,971 |
Tax effect on stock-based compensation expense | (3,504) | (2,650) | (6,859) | (4,800) |
Net effect on income | $ 9,930 | $ 7,826 | $ 19,439 | $ 14,171 |
Stock-Based Compensation (Assumptions) (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Summary of weighted average assumptions used to value options granted | ||||
Grant date fair value of options (in dollars per share) | $ 0 | $ 0 | $ 21.55 | $ 0 |
Volatility (as a percent) | 0.00% | 0.00% | 40.00% | 0.00% |
Risk-free interest rate (as a percent) | 0.00% | 0.00% | 2.50% | 0.00% |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 0 years | 0 years | 6 years 6 months | 0 years |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income tax provision and the effective tax rate | ||||
Loss before income tax provision (benefit) | $ (27,769) | $ (5,425) | $ (42,269) | $ (11,417) |
Income tax provision (benefit) | $ (28,382) | $ 566 | $ (24,614) | $ (13,428) |
Effective tax rate (as a percent) | 102.20% | (10.40%) | 58.20% | 117.60% |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Valuation allowance | $ 21,907 | $ 21,907 | ||
Gross unrecognized tax benefits | 18,102 | 18,102 | $ 15,628 | |
Unrecognized tax benefits, exclusive of interest and penalties, recorded as a non-current liability | 6,411 | 6,411 | 4,429 | |
Unrecognized tax benefits that would impact effective tax rate, if recognized | 12,116 | 12,116 | ||
Potential interest and penalties related to unrecognized tax benefits included in income tax expense | 898 | $ 548 | ||
Accrued interest and penalties on unrecognized tax benefits | $ 6,924 | $ 6,924 | $ 5,977 |
Commitments and Contingencies (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2019
USD ($)
claim
|
Dec. 31, 2018
USD ($)
|
|
Commitments and Contingencies Disclosure [Abstract] | ||
Number of previous claims experienced | claim | 0 | |
Future minimum unconditional purchase obligations | ||
Sales and use tax liability | $ 10,989 | $ 8,643 |
Sales and use tax receivable | $ 5,139 | $ 5,246 |
Leases (Narrative) (Details) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
|
Lessee, Lease, Description [Line Items] | ||
Term of contract (up to) | 20 years | 20 years |
Option to terminate, term | 90 days | |
Operating lease, cost | $ 4,377 | $ 8,495 |
Weighted average remaining lease term | 8 years 10 months 24 days | 8 years 10 months 24 days |
Weighted average discount rate, percent | 6.30% | 6.30% |
Operating cash flows from operating leases | $ 4,730 | $ 9,386 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Lease not yet commenced, term of contract | 1 year | 1 year |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 14 years | |
Lease not yet commenced, term of contract | 3 years | 3 years |
Leases (Future Minimum Lease Payments) (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Remainder of 2019 | $ 9,096 |
2020 | 17,558 |
2021 | 15,975 |
2022 | 11,850 |
2023 | 10,571 |
Thereafter | 52,862 |
Total future minimum lease payments | 117,912 |
Less imputed interest | (27,563) |
Total operating lease liabilities | $ 90,349 |
Leases (Prior Year Lease Information) (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Leases [Abstract] | |
2019 | $ 15,997 |
2020 | 15,437 |
2021 | 14,705 |
2022 | 10,816 |
2023 | 9,910 |
Thereafter | 39,449 |
Total | $ 106,314 |
Segment Information (Summary of Consolidated Total Assets, Depreciation and Amortization and Capital Expenditures) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Segment Information | |||||
Assets | $ 1,812,340 | $ 1,812,340 | $ 1,313,747 | ||
Depreciation and amortization | 26,915 | $ 19,185 | 46,432 | $ 38,731 | |
Capital expenditures | 11,966 | 10,604 | 24,398 | 20,191 | |
Envestnet Wealth Solutions | |||||
Segment Information | |||||
Assets | 1,279,408 | 1,279,408 | 810,971 | ||
Depreciation and amortization | 16,376 | 11,026 | 27,643 | 22,499 | |
Capital expenditures | 10,027 | 8,344 | 20,865 | 16,536 | |
Envestnet Data and Analytics | |||||
Segment Information | |||||
Assets | 532,932 | 532,932 | $ 502,776 | ||
Depreciation and amortization | 10,539 | 8,159 | 18,789 | 16,232 | |
Capital expenditures | $ 1,939 | $ 2,260 | $ 3,533 | $ 3,655 |
Geographical Information (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Geographical Information | ||
Property and equipment, net | $ 51,016 | $ 44,991 |
United States | ||
Geographical Information | ||
Property and equipment, net | 45,759 | 39,412 |
India | ||
Geographical Information | ||
Property and equipment, net | 3,919 | 3,969 |
Other | ||
Geographical Information | ||
Property and equipment, net | $ 1,338 | $ 1,610 |
&@==D3
M=R1UIF!&)R7*LE1,9905)WB+Q+U(6 ]QX>7U1']FT"K4#7S
MH!=-[\R>JE:HU6N193FX:I]1LADDP4P2W"JV2P5.)PE0^2>(P D1F/AP%H\@
M=!N$3H/0&$0W!L@J8] D1M,:#7R"$%NE?*2Z@8F<,)$#QNK89M#@61H,AX_%
M\X#P!@D[D; #*;20\$/]^4AU Q,[86('3&3!Q'?+MAOTB/(&*G%")0XHJ_9-
MLD@5XPCA.+&9'$(4A&F:W?E7I$ZDU($46TCILOH )E!!64A+892B *7WNI0Y
MD3('4F(A98M,* PCC)'UCK 2:\3I;,F&XHHK@^182QSE
M2W+>.ZTETH3V$,ZLAX&PU#A*IF0>Z6 OJ_%)#L%1V#"@RH87[7C)3-)IH1FW
M3 &UL
M=53;;MP@$/T5Q <$&^]NHY5M*9LJ2J566J5J^\S:XXO"Q06\3O^^@!W7W=(7
M \,Y9\X XWQ2^M5T !:]"2Y-@3MKAR,AINI ,'.G!I!NIU%:,.N6NB5FT,#J
M0!* ]$]F_ IS/0=*YN*_PQ4DPD,F&*,RTL65
M5(/S1LTJF(KB;],N=-S'Z>:0S;1M0CH3TH5P%^.P*5#,_ OWO,RM&8F=>M_S
M\,2[8XJ]J8(SMB+>8?(.O==RGWW.V34(S9C3A$E7F-V"8*B^A$BW0IS2_^CI
M-GV_F>$^TO=K^FVR+9!M"F11(%N7>$@^E+B%^5@D6_54@6WC-#E2F4''25YY
MEX&]3^.;_(-/T_Z#VU9H1R[&X\O&_C?&>,!4DAL
M>=-:GR!%UK,&OH+]UI^UB\BB4G$)G>&J0QKJ'#]NCZ?4XP/@.X?1K/;(=W)1
MZLT'GZH<;[PA$%!:K\#< _## )P-6AYO5W_V;HBDNS^OJ=5$?%M!3T:U3.O/M_-YV%_OI[/_7
M3L"^O?IR:3-]OGKI# V8JP-&GV!(96/,#< <$:LV@F,8&H5QI=GP)(AKCB!2
M21#O6OD\P4K.,2[B7 R\I:8?;T:WU& #%AJPO0$[,F"35 \8WV-VAR I(Z6Q
M'P?]..#')7X.&'?B)U/8AX<^//-!S(=G/CYHCYT$Z"2 1'RRB .[89F*/B:P
MFP#R'<%&X4083@3AA"2 7@SRX+J>\0AQKUV)'T:&3
M/D;NZE_@71O^1>6AJI6W%=HT$'?-]T)H,+4$#^:,E:;S#PL&>VVG4S.77?OK
M%EHT?6LGP_]+_A]02P,$% @ JX$(3_^*>*/Q P 5A4 !D !X;"]W
M;W)K/MV;=;+=C3>N^EI.D^)Y= -,<
/*J5>=RVGK?'QAS
M90M:N"O30X^*@R9Q
M0( N3$*8]<*$S(Z@ %7YRZ=1+B^MO_BS['2_'Z@_PO_@P^/P@ZFJ:34Z2V,O
M@C^NI90&;"G1G=W5VKY'4\"A-&X:V[D:;N40&-F-#PZ97KWL+U!+ P04
M" "K@0A/-&"C-+M\?&7-E"UJX&]-#AS>UL5IX-&W#7&]!
M5)&D%>-)
">$#PEA3P@_F@'U!&1D\#KONIEK+'"6,MHZK/L<&JR^.C!'\KCV*JA/1[^3
M_>0R>LE"%*;>10GUF&6'@2,,\)]N,6L+9D!XLH*A#&@K8PDG='B;8#5% . ;
M1?Q79?-8Y:;0P-JO0 L$(X'@Z8[3T"H0:H'PIN'(:'B'B32F[GS !$&S)188
M0# TNS*%A6$ 8R/IQ@*#$;QG#EG-H8DY $US:)+G4QP!TYL%!:((&-9LJ"1!
ML6%M"D,@B>S&(JNQ:'+L -X1B*T"L:4S1IG+#I.,W?@S8/1O947Y@=$9*RHP
M&S-%R81W3CRQ^DHLOA+#5_(A7U;4Q)<5-?$U1*D0G#J)TB\!,GGBY%Z"5)/!IFU^U)')THS;.T.%P0Q %99
M>Q"9@%)BUW[C@E &<[^HS"LJ\XBRCDN1.5$@3&Q1+@B@Q-H&:Q>$";1JN/&$
M _#& 2XH# 2=)21U4(9-8J
ME)@)$NT/3"A(4.VT<0(J>^