false--12-31Q220190001337619P60DP16YP10Y414200051400034220001624000663200020170000.0050.005500000000500000000612388986541567048121800520701560.060.2530.253P16YP8YP7YP7YP4YP2Y219070000.0050.0055000000050000000P39YP7YP5YP7YP3YP3YP6MP1YP1YP1YP1YP3YP0YP0YP0Y1311709813345514
0001337619
2019-01-01
2019-06-30
0001337619
2019-08-01
0001337619
2018-12-31
0001337619
2019-06-30
0001337619
2019-04-01
2019-06-30
0001337619
2018-01-01
2018-06-30
0001337619
2018-04-01
2018-06-30
0001337619
env:RecurringRevenueMember
2019-01-01
2019-06-30
0001337619
env:AssetBasedRevenueMember
2019-04-01
2019-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
2018-04-01
2018-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
2018-04-01
2018-06-30
0001337619
env:RecurringRevenueMember
2019-04-01
2019-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
2019-01-01
2019-06-30
0001337619
env:AssetBasedRevenueMember
2018-01-01
2018-06-30
0001337619
env:RecurringRevenueMember
2018-04-01
2018-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
2019-04-01
2019-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
2019-04-01
2019-06-30
0001337619
env:AssetBasedRevenueMember
2018-04-01
2018-06-30
0001337619
env:AssetBasedRevenueMember
2019-01-01
2019-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
2019-01-01
2019-06-30
0001337619
env:RecurringRevenueMember
2018-01-01
2018-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
2018-01-01
2018-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
2018-01-01
2018-06-30
0001337619
us-gaap:RetainedEarningsMember
2018-06-30
0001337619
2018-01-01
2018-03-31
0001337619
us-gaap:TreasuryStockMember
2018-03-31
0001337619
us-gaap:RetainedEarningsMember
2018-03-31
0001337619
us-gaap:RetainedEarningsMember
2017-12-31
0001337619
us-gaap:AdditionalPaidInCapitalMember
2018-06-30
0001337619
us-gaap:AdditionalPaidInCapitalMember
2017-12-31
0001337619
us-gaap:CommonStockMember
2018-04-01
2018-06-30
0001337619
us-gaap:CommonStockMember
2017-12-31
0001337619
us-gaap:NoncontrollingInterestMember
2017-12-31
0001337619
us-gaap:NoncontrollingInterestMember
2018-06-30
0001337619
us-gaap:NoncontrollingInterestMember
2018-01-01
2018-03-31
0001337619
us-gaap:CommonStockMember
2018-03-31
0001337619
2018-03-31
0001337619
us-gaap:TreasuryStockMember
2018-01-01
2018-03-31
0001337619
us-gaap:TreasuryStockMember
2017-12-31
0001337619
us-gaap:CommonStockMember
2018-06-30
0001337619
us-gaap:CommonStockMember
2018-01-01
2018-03-31
0001337619
us-gaap:AdditionalPaidInCapitalMember
2018-01-01
2018-03-31
0001337619
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2017-12-31
0001337619
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-04-01
2018-06-30
0001337619
us-gaap:TreasuryStockMember
2018-04-01
2018-06-30
0001337619
us-gaap:AdditionalPaidInCapitalMember
2018-04-01
2018-06-30
0001337619
us-gaap:RetainedEarningsMember
2018-01-01
2018-03-31
0001337619
2017-12-31
0001337619
us-gaap:RetainedEarningsMember
2018-04-01
2018-06-30
0001337619
us-gaap:AdditionalPaidInCapitalMember
2018-03-31
0001337619
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-03-31
0001337619
us-gaap:TreasuryStockMember
2018-06-30
0001337619
us-gaap:NoncontrollingInterestMember
2018-03-31
0001337619
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-01-01
2018-03-31
0001337619
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-06-30
0001337619
2018-06-30
0001337619
us-gaap:NoncontrollingInterestMember
2018-04-01
2018-06-30
0001337619
us-gaap:TreasuryStockMember
2019-04-01
2019-06-30
0001337619
us-gaap:TreasuryStockMember
2018-12-31
0001337619
us-gaap:CommonStockMember
2019-01-01
2019-03-31
0001337619
us-gaap:AdditionalPaidInCapitalMember
2019-04-01
2019-06-30
0001337619
us-gaap:RetainedEarningsMember
2019-06-30
0001337619
2019-01-01
2019-03-31
0001337619
us-gaap:TreasuryStockMember
2019-01-01
2019-03-31
0001337619
us-gaap:NoncontrollingInterestMember
2019-03-31
0001337619
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-03-31
0001337619
us-gaap:CommonStockMember
2019-04-01
2019-06-30
0001337619
us-gaap:RetainedEarningsMember
2018-12-31
0001337619
us-gaap:RetainedEarningsMember
2019-04-01
2019-06-30
0001337619
us-gaap:NoncontrollingInterestMember
2019-04-01
2019-06-30
0001337619
us-gaap:NoncontrollingInterestMember
2018-12-31
0001337619
us-gaap:AdditionalPaidInCapitalMember
2019-01-01
2019-03-31
0001337619
us-gaap:AdditionalPaidInCapitalMember
2019-03-31
0001337619
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-01-01
2019-03-31
0001337619
us-gaap:AdditionalPaidInCapitalMember
2018-12-31
0001337619
us-gaap:RetainedEarningsMember
2019-01-01
2019-03-31
0001337619
us-gaap:CommonStockMember
2019-03-31
0001337619
us-gaap:CommonStockMember
2018-12-31
0001337619
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-06-30
0001337619
us-gaap:NoncontrollingInterestMember
2019-01-01
2019-03-31
0001337619
us-gaap:TreasuryStockMember
2019-06-30
0001337619
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-12-31
0001337619
us-gaap:RetainedEarningsMember
2019-03-31
0001337619
us-gaap:TreasuryStockMember
2019-03-31
0001337619
2019-03-31
0001337619
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-04-01
2019-06-30
0001337619
us-gaap:AdditionalPaidInCapitalMember
2019-06-30
0001337619
us-gaap:CommonStockMember
2019-06-30
0001337619
us-gaap:NoncontrollingInterestMember
2019-06-30
0001337619
env:EnvestnetPortfolioManagementConsultantsProductsAndServicesSuiteMember
2019-06-30
0001337619
env:EnvestnetEnterpriseProductAndServicesSuiteMember
2019-01-01
2019-06-30
0001337619
us-gaap:OtherNoncurrentAssetsMember
2018-12-31
0001337619
us-gaap:OtherNoncurrentAssetsMember
2019-06-30
0001337619
us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember
2018-12-31
0001337619
us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember
2019-06-30
0001337619
env:PortfolioCenterAcquisitionMember
2019-04-01
0001337619
env:PortfolioCenterAcquisitionMember
2019-04-01
2019-04-01
0001337619
env:PortfolioCenterAcquisitionMember
us-gaap:CustomerListsMember
2019-04-01
2019-04-01
0001337619
env:PortfolioCenterAcquisitionMember
us-gaap:TechnologyBasedIntangibleAssetsMember
2019-04-01
2019-04-01
0001337619
env:PIEtechAcquisitionMember
2019-05-01
0001337619
env:PrivateCompanyAcquisitionMember
2019-01-02
0001337619
env:PIEtechAcquisitionMember
2019-01-01
2019-06-30
0001337619
env:PIEtechAcquisitionMember
2019-06-30
0001337619
env:PortfolioCenterAcquisitionMember
2019-04-01
2019-06-30
0001337619
env:PIEtechAcquisitionMember
2019-04-01
2019-06-30
0001337619
env:PIEtechAcquisitionMember
2019-05-01
2019-05-01
0001337619
env:RestrictedStockUnitsandPerformanceStockUnitsMember
env:PIEtechAcquisitionMember
env:EquityPlanMember
2019-05-01
2019-06-30
0001337619
env:PIEtechAcquisitionMember
env:EquityPlanMember
2019-05-01
2019-05-01
0001337619
env:RestrictedStockUnitsandPerformanceStockUnitsMember
env:PIEtechAcquisitionMember
env:EquityPlanMember
2019-05-01
0001337619
us-gaap:RestrictedStockUnitsRSUMember
env:PIEtechAcquisitionMember
env:EquityPlanMember
2019-05-01
2019-06-30
0001337619
us-gaap:PerformanceSharesMember
env:PIEtechAcquisitionMember
env:EquityPlanMember
2019-05-01
2019-06-30
0001337619
env:EnvestnetPortfolioCenterAndPIEtechMember
2019-01-01
2019-06-30
0001337619
env:EnvestnetPortfolioCenterAndPIEtechMember
2018-04-01
2018-06-30
0001337619
env:EnvestnetPortfolioCenterAndPIEtechMember
2019-04-01
2019-06-30
0001337619
env:EnvestnetPortfolioCenterAndPIEtechMember
2018-01-01
2018-06-30
0001337619
env:PrivateCompanyAcquisitionMember
2019-01-02
2019-01-02
0001337619
env:PIEtechAcquisitionMember
us-gaap:TechnologyBasedIntangibleAssetsMember
2019-05-01
2019-05-01
0001337619
env:PIEtechAcquisitionMember
us-gaap:TradeNamesMember
2019-05-01
2019-05-01
0001337619
env:PIEtechAcquisitionMember
us-gaap:CustomerListsMember
2019-05-01
2019-05-01
0001337619
env:PrivateCompanyAcquisitionMember
us-gaap:TechnologyBasedIntangibleAssetsMember
2019-01-02
2019-01-02
0001337619
env:PortfolioCenterAcquisitionMember
2019-01-01
2019-06-30
0001337619
env:RestrictedStockUnitsandPerformanceStockUnitsMember
env:PIEtechAcquisitionMember
env:EquityPlanMember
2019-05-01
2019-05-01
0001337619
srt:MaximumMember
env:PIEtechAcquisitionMember
us-gaap:CustomerListsMember
2019-05-01
2019-05-01
0001337619
srt:MinimumMember
env:PIEtechAcquisitionMember
us-gaap:CustomerListsMember
2019-05-01
2019-05-01
0001337619
us-gaap:LandMember
2018-12-31
0001337619
env:ComputerEquipmentAndSoftwareMember
2018-12-31
0001337619
us-gaap:OfficeEquipmentMember
2019-06-30
0001337619
env:ComputerEquipmentAndSoftwareMember
2019-06-30
0001337619
us-gaap:FurnitureAndFixturesMember
2018-12-31
0001337619
us-gaap:BuildingAndBuildingImprovementsMember
2019-06-30
0001337619
us-gaap:LeaseholdImprovementsMember
2019-06-30
0001337619
env:ComputerEquipmentAndSoftwareMember
2019-01-01
2019-06-30
0001337619
us-gaap:BuildingAndBuildingImprovementsMember
2018-12-31
0001337619
us-gaap:OfficeEquipmentMember
2018-12-31
0001337619
us-gaap:LeaseholdImprovementsMember
2018-12-31
0001337619
us-gaap:FurnitureAndFixturesMember
2019-06-30
0001337619
us-gaap:LandMember
2019-06-30
0001337619
env:EnvestnetDataandAnalyticsMember
2019-01-01
2019-06-30
0001337619
env:EnvestnetWealthSolutionsMember
2019-01-01
2019-06-30
0001337619
env:EnvestnetWealthSolutionsMember
2018-01-01
2018-06-30
0001337619
env:EnvestnetDataandAnalyticsMember
2018-04-01
2018-06-30
0001337619
env:EnvestnetDataandAnalyticsMember
2018-01-01
2018-06-30
0001337619
env:EnvestnetWealthSolutionsMember
2018-04-01
2018-06-30
0001337619
env:EnvestnetDataandAnalyticsMember
2019-04-01
2019-06-30
0001337619
env:EnvestnetWealthSolutionsMember
2019-04-01
2019-06-30
0001337619
srt:MinimumMember
us-gaap:FurnitureAndFixturesMember
2019-01-01
2019-06-30
0001337619
srt:MinimumMember
us-gaap:OfficeEquipmentMember
2019-01-01
2019-06-30
0001337619
srt:MinimumMember
us-gaap:BuildingAndBuildingImprovementsMember
2019-01-01
2019-06-30
0001337619
srt:MaximumMember
us-gaap:FurnitureAndFixturesMember
2019-01-01
2019-06-30
0001337619
srt:MaximumMember
us-gaap:OfficeEquipmentMember
2019-01-01
2019-06-30
0001337619
srt:MaximumMember
us-gaap:BuildingAndBuildingImprovementsMember
2019-01-01
2019-06-30
0001337619
us-gaap:SoftwareDevelopmentMember
2019-01-01
2019-06-30
0001337619
env:PrivateCompanyAcquisitionMember
env:EnvestnetWealthSolutionsMember
2019-01-01
2019-06-30
0001337619
env:EnvestnetWealthSolutionsMember
2018-12-31
0001337619
env:PortfolioCenterAcquisitionMember
env:EnvestnetWealthSolutionsMember
2019-01-01
2019-06-30
0001337619
env:PrivateCompanyAcquisitionMember
2019-01-01
2019-06-30
0001337619
env:PIEtechAcquisitionMember
env:EnvestnetWealthSolutionsMember
2019-01-01
2019-06-30
0001337619
env:PIEtechAcquisitionMember
env:EnvestnetDataandAnalyticsMember
2019-01-01
2019-06-30
0001337619
env:PrivateCompanyAcquisitionMember
env:EnvestnetDataandAnalyticsMember
2019-01-01
2019-06-30
0001337619
env:EnvestnetDataandAnalyticsMember
2018-12-31
0001337619
env:PortfolioCenterAcquisitionMember
env:EnvestnetDataandAnalyticsMember
2019-01-01
2019-06-30
0001337619
env:EnvestnetDataandAnalyticsMember
2019-06-30
0001337619
env:EnvestnetWealthSolutionsMember
2019-06-30
0001337619
us-gaap:OrderOrProductionBacklogMember
2019-06-30
0001337619
us-gaap:TradeNamesMember
2019-06-30
0001337619
us-gaap:CustomerListsMember
2018-12-31
0001337619
us-gaap:TechnologyBasedIntangibleAssetsMember
2019-06-30
0001337619
us-gaap:CustomerListsMember
2019-06-30
0001337619
us-gaap:OrderOrProductionBacklogMember
2018-12-31
0001337619
us-gaap:TechnologyBasedIntangibleAssetsMember
2018-12-31
0001337619
us-gaap:TradeNamesMember
2018-12-31
0001337619
us-gaap:OrderOrProductionBacklogMember
2019-01-01
2019-06-30
0001337619
srt:MaximumMember
us-gaap:TechnologyBasedIntangibleAssetsMember
2019-01-01
2019-06-30
0001337619
srt:MaximumMember
us-gaap:TradeNamesMember
2019-01-01
2019-06-30
0001337619
srt:MinimumMember
us-gaap:CustomerListsMember
2019-01-01
2019-06-30
0001337619
srt:MinimumMember
us-gaap:TradeNamesMember
2019-01-01
2019-06-30
0001337619
srt:MaximumMember
us-gaap:CustomerListsMember
2019-01-01
2019-06-30
0001337619
srt:MinimumMember
us-gaap:TechnologyBasedIntangibleAssetsMember
2019-01-01
2019-06-30
0001337619
env:ConvertibleUnsecured1.75PercentNotesDueDecember2023Member
2018-12-31
0001337619
env:ConvertibleUnsecured1.75PercentNotesDueDecember2019Member
2019-06-30
0001337619
env:CreditAgreementMember
2018-12-31
0001337619
env:ConvertibleUnsecured1.75PercentNotesDueDecember2023Member
2019-06-30
0001337619
env:ConvertibleUnsecured1.75PercentNotesDueDecember2019Member
2018-12-31
0001337619
env:CreditAgreementMember
2019-06-30
0001337619
env:SecondAmendedAndRestatedCreditAgreementMember
2017-07-31
0001337619
env:ConvertibleNotesDueDecember2023Member
2018-05-31
0001337619
srt:MinimumMember
env:SecondAmendedAndRestatedCreditAgreementMember
us-gaap:LondonInterbankOfferedRateLIBORMember
2019-01-01
2019-06-30
0001337619
env:ConvertibleNotesDueDecember2023Member
2019-06-30
0001337619
srt:MaximumMember
env:SecondAmendedAndRestatedCreditAgreementMember
us-gaap:LondonInterbankOfferedRateLIBORMember
2019-01-01
2019-06-30
0001337619
env:ConvertibleUnsecured1.75PercentNotesDueDecember2019Member
2014-12-31
0001337619
env:ConvertibleNotesCreditAndAmendedAndRestatedCreditAgreementsMember
2019-01-01
2019-06-30
0001337619
env:ConvertibleNotesCreditAndAmendedAndRestatedCreditAgreementsMember
2018-01-01
2018-06-30
0001337619
env:ConvertibleNotesCreditAndAmendedAndRestatedCreditAgreementsMember
2018-04-01
2018-06-30
0001337619
env:ConvertibleNotesCreditAndAmendedAndRestatedCreditAgreementsMember
2019-04-01
2019-06-30
0001337619
env:ConvertibleUnsecured1.75PercentNotesDueDecember2019Member
2018-06-30
0001337619
us-gaap:FairValueMeasurementsRecurringMember
2019-01-01
2019-06-30
0001337619
us-gaap:FairValueMeasurementsRecurringMember
2018-12-31
0001337619
us-gaap:FairValueMeasurementsRecurringMember
2019-06-30
0001337619
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-31
0001337619
us-gaap:MoneyMarketFundsMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-31
0001337619
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-31
0001337619
us-gaap:EstimateOfFairValueFairValueDisclosureMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-31
0001337619
us-gaap:MoneyMarketFundsMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-31
0001337619
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-31
0001337619
us-gaap:MoneyMarketFundsMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2018-12-31
0001337619
us-gaap:MoneyMarketFundsMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
us-gaap:FairValueMeasurementsRecurringMember
2018-12-31
0001337619
env:TwoThousandTwentyThreeConvertibleNotesMember
2018-12-31
0001337619
env:TwoThousandNineteenConvertibleNotesMember
2018-12-31
0001337619
env:TwoThousandNineteenConvertibleNotesMember
us-gaap:CarryingReportedAmountFairValueDisclosureMember
2018-12-31
0001337619
env:TwoThousandTwentyThreeConvertibleNotesMember
2019-06-30
0001337619
env:TwoThousandTwentyThreeConvertibleNotesMember
us-gaap:CarryingReportedAmountFairValueDisclosureMember
2018-12-31
0001337619
env:TwoThousandTwentyThreeConvertibleNotesMember
2018-05-25
0001337619
env:SecondAmendedAndRestatedCreditAgreementMember
2018-12-31
0001337619
env:TwoThousandNineteenConvertibleNotesMember
2019-06-30
0001337619
env:SecondAmendedAndRestatedCreditAgreementMember
2019-06-30
0001337619
env:TwoThousandTwentyThreeConvertibleNotesMember
us-gaap:CarryingReportedAmountFairValueDisclosureMember
2019-06-30
0001337619
env:TwoThousandNineteenConvertibleNotesMember
us-gaap:CarryingReportedAmountFairValueDisclosureMember
2019-06-30
0001337619
env:TwoThousandNineteenConvertibleNotesMember
2014-12-15
0001337619
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-06-30
0001337619
us-gaap:EstimateOfFairValueFairValueDisclosureMember
us-gaap:FairValueMeasurementsRecurringMember
2019-06-30
0001337619
us-gaap:MoneyMarketFundsMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-06-30
0001337619
us-gaap:MoneyMarketFundsMember
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-06-30
0001337619
us-gaap:MoneyMarketFundsMember
us-gaap:EstimateOfFairValueFairValueDisclosureMember
us-gaap:FairValueMeasurementsRecurringMember
2019-06-30
0001337619
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
2019-06-30
0001337619
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
2019-06-30
0001337619
us-gaap:MoneyMarketFundsMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
2019-06-30
0001337619
env:PrivateCompanyAcquisitionMember
us-gaap:FairValueMeasurementsRecurringMember
2019-01-01
2019-06-30
0001337619
env:PortfolioCenterAcquisitionMember
us-gaap:FairValueMeasurementsRecurringMember
2019-01-01
2019-06-30
0001337619
2021-01-01
2019-06-30
0001337619
2024-01-01
2019-06-30
0001337619
2019-07-01
2019-06-30
0001337619
2022-01-01
2019-06-30
0001337619
2020-01-01
2019-06-30
0001337619
2023-01-01
2019-06-30
0001337619
env:AssetBasedRevenueMember
env:EnvestnetDataandAnalyticsMember
2018-01-01
2018-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
env:EnvestnetDataandAnalyticsMember
2018-01-01
2018-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
env:EnvestnetWealthSolutionsMember
2018-01-01
2018-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
env:EnvestnetDataandAnalyticsMember
2019-01-01
2019-06-30
0001337619
env:RecurringRevenueMember
env:EnvestnetDataandAnalyticsMember
2018-01-01
2018-06-30
0001337619
env:RecurringRevenueMember
env:EnvestnetWealthSolutionsMember
2018-01-01
2018-06-30
0001337619
env:RecurringRevenueMember
env:EnvestnetDataandAnalyticsMember
2019-01-01
2019-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
env:EnvestnetDataandAnalyticsMember
2019-01-01
2019-06-30
0001337619
env:AssetBasedRevenueMember
env:EnvestnetWealthSolutionsMember
2019-01-01
2019-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
env:EnvestnetWealthSolutionsMember
2018-01-01
2018-06-30
0001337619
env:RecurringRevenueMember
env:EnvestnetWealthSolutionsMember
2019-01-01
2019-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
env:EnvestnetDataandAnalyticsMember
2018-01-01
2018-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
env:EnvestnetWealthSolutionsMember
2019-01-01
2019-06-30
0001337619
env:AssetBasedRevenueMember
env:EnvestnetDataandAnalyticsMember
2019-01-01
2019-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
env:EnvestnetWealthSolutionsMember
2019-01-01
2019-06-30
0001337619
env:AssetBasedRevenueMember
env:EnvestnetWealthSolutionsMember
2018-01-01
2018-06-30
0001337619
env:FidelityMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2018-04-01
2018-06-30
0001337619
env:FidelityMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2019-04-01
2019-06-30
0001337619
env:FidelityMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2019-01-01
2019-06-30
0001337619
env:FidelityMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2018-01-01
2018-06-30
0001337619
us-gaap:NonUsMember
2019-04-01
2019-06-30
0001337619
country:US
2019-04-01
2019-06-30
0001337619
country:US
2018-01-01
2018-06-30
0001337619
country:US
2018-04-01
2018-06-30
0001337619
us-gaap:NonUsMember
2019-01-01
2019-06-30
0001337619
country:US
2019-01-01
2019-06-30
0001337619
us-gaap:NonUsMember
2018-04-01
2018-06-30
0001337619
us-gaap:NonUsMember
2018-01-01
2018-06-30
0001337619
env:FidelityMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
env:EnvestnetWealthSolutionsMember
2019-01-01
2019-06-30
0001337619
env:FidelityMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
env:EnvestnetWealthSolutionsMember
2018-01-01
2018-06-30
0001337619
env:FidelityMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
env:EnvestnetWealthSolutionsMember
2019-04-01
2019-06-30
0001337619
env:FidelityMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
env:EnvestnetWealthSolutionsMember
2018-04-01
2018-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
env:EnvestnetDataandAnalyticsMember
2018-04-01
2018-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
env:EnvestnetDataandAnalyticsMember
2019-04-01
2019-06-30
0001337619
env:RecurringRevenueMember
env:EnvestnetWealthSolutionsMember
2018-04-01
2018-06-30
0001337619
env:AssetBasedRevenueMember
env:EnvestnetWealthSolutionsMember
2019-04-01
2019-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
env:EnvestnetWealthSolutionsMember
2019-04-01
2019-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
env:EnvestnetDataandAnalyticsMember
2018-04-01
2018-06-30
0001337619
env:AssetBasedRevenueMember
env:EnvestnetWealthSolutionsMember
2018-04-01
2018-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
env:EnvestnetWealthSolutionsMember
2018-04-01
2018-06-30
0001337619
env:RecurringRevenueMember
env:EnvestnetDataandAnalyticsMember
2019-04-01
2019-06-30
0001337619
env:ProfessionalServicesAndOtherRevenuesMember
env:EnvestnetWealthSolutionsMember
2018-04-01
2018-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
env:EnvestnetWealthSolutionsMember
2019-04-01
2019-06-30
0001337619
env:AssetBasedRevenueMember
env:EnvestnetDataandAnalyticsMember
2018-04-01
2018-06-30
0001337619
us-gaap:SubscriptionAndCirculationMember
env:EnvestnetDataandAnalyticsMember
2019-04-01
2019-06-30
0001337619
env:RecurringRevenueMember
env:EnvestnetDataandAnalyticsMember
2018-04-01
2018-06-30
0001337619
env:AssetBasedRevenueMember
env:EnvestnetDataandAnalyticsMember
2019-04-01
2019-06-30
0001337619
env:RecurringRevenueMember
env:EnvestnetWealthSolutionsMember
2019-04-01
2019-06-30
0001337619
2019-06-30
0001337619
us-gaap:PerformanceSharesMember
2019-04-01
2019-06-30
0001337619
us-gaap:RestrictedStockUnitsRSUMember
2019-04-01
2019-06-30
0001337619
us-gaap:RestrictedStockUnitsRSUMember
2019-03-31
0001337619
us-gaap:PerformanceSharesMember
2019-01-01
2019-03-31
0001337619
us-gaap:RestrictedStockUnitsRSUMember
2019-01-01
2019-03-31
0001337619
us-gaap:PerformanceSharesMember
2019-03-31
0001337619
us-gaap:PerformanceSharesMember
2018-12-31
0001337619
us-gaap:PerformanceSharesMember
2019-06-30
0001337619
us-gaap:RestrictedStockUnitsRSUMember
2019-06-30
0001337619
us-gaap:RestrictedStockUnitsRSUMember
2018-12-31
0001337619
env:EmployeeAndOtherStockOptionMember
2019-04-01
2019-06-30
0001337619
env:EmployeeAndOtherStockOptionMember
2019-01-01
2019-03-31
0001337619
env:EmployeeAndOtherStockOptionMember
2019-06-30
0001337619
env:EmployeeAndOtherStockOptionMember
2018-12-31
0001337619
env:EmployeeAndOtherStockOptionMember
2019-03-31
0001337619
env:EmployeeAndOtherStockOptionMember
2018-01-01
2018-12-31
0001337619
env:EmployeeAndOtherStockOptionMember
2019-01-01
2019-06-30
0001337619
us-gaap:PerformanceSharesMember
2019-01-01
2019-06-30
0001337619
srt:MinimumMember
env:EmployeeAndOtherStockOptionMember
2019-06-30
0001337619
us-gaap:RestrictedStockUnitsRSUMember
2019-01-01
2019-06-30
0001337619
srt:MinimumMember
us-gaap:PerformanceSharesMember
2019-06-30
0001337619
srt:MaximumMember
env:RestrictedStockUnitsandPerformanceStockUnitsMember
env:PIEtechAcquisitionMember
env:EquityPlanMember
2019-05-01
2019-06-30
0001337619
srt:MaximumMember
us-gaap:PerformanceSharesMember
2019-06-30
0001337619
srt:MaximumMember
env:EmployeeAndOtherStockOptionMember
2019-06-30
0001337619
srt:MinimumMember
env:RestrictedStockUnitsandPerformanceStockUnitsMember
env:PIEtechAcquisitionMember
env:EquityPlanMember
2019-05-01
2019-06-30
0001337619
us-gaap:WarrantMember
2018-04-01
2018-06-30
0001337619
us-gaap:ConvertibleDebtSecuritiesMember
2019-01-01
2019-06-30
0001337619
us-gaap:WarrantMember
2018-01-01
2018-06-30
0001337619
us-gaap:RestrictedStockMember
2019-04-01
2019-06-30
0001337619
us-gaap:ConvertibleDebtSecuritiesMember
2018-04-01
2018-06-30
0001337619
env:EmployeeAndOtherStockOptionMember
2019-01-01
2019-06-30
0001337619
us-gaap:RestrictedStockMember
2018-04-01
2018-06-30
0001337619
us-gaap:WarrantMember
2019-04-01
2019-06-30
0001337619
us-gaap:WarrantMember
2019-01-01
2019-06-30
0001337619
us-gaap:ConvertibleDebtSecuritiesMember
2019-04-01
2019-06-30
0001337619
us-gaap:RestrictedStockMember
2019-01-01
2019-06-30
0001337619
us-gaap:RestrictedStockMember
2018-01-01
2018-06-30
0001337619
env:EmployeeAndOtherStockOptionMember
2018-01-01
2018-06-30
0001337619
env:EmployeeAndOtherStockOptionMember
2018-04-01
2018-06-30
0001337619
env:EmployeeAndOtherStockOptionMember
2019-04-01
2019-06-30
0001337619
us-gaap:ConvertibleDebtSecuritiesMember
2018-01-01
2018-06-30
0001337619
srt:MaximumMember
2019-06-30
0001337619
srt:MinimumMember
2019-01-01
2019-06-30
0001337619
srt:MaximumMember
2019-01-01
2019-06-30
0001337619
srt:MinimumMember
2019-06-30
0001337619
us-gaap:OperatingSegmentsMember
env:EnvestnetWealthSolutionsMember
2019-04-01
2019-06-30
0001337619
us-gaap:MaterialReconcilingItemsMember
2019-04-01
2019-06-30
0001337619
us-gaap:MaterialReconcilingItemsMember
2018-04-01
2018-06-30
0001337619
us-gaap:OperatingSegmentsMember
env:EnvestnetDataandAnalyticsMember
2018-01-01
2018-06-30
0001337619
us-gaap:OperatingSegmentsMember
env:EnvestnetWealthSolutionsMember
2019-01-01
2019-06-30
0001337619
us-gaap:OperatingSegmentsMember
env:EnvestnetDataandAnalyticsMember
2018-04-01
2018-06-30
0001337619
us-gaap:OperatingSegmentsMember
2018-01-01
2018-06-30
0001337619
us-gaap:OperatingSegmentsMember
2019-04-01
2019-06-30
0001337619
us-gaap:MaterialReconcilingItemsMember
2018-01-01
2018-06-30
0001337619
us-gaap:OperatingSegmentsMember
env:EnvestnetWealthSolutionsMember
2018-04-01
2018-06-30
0001337619
us-gaap:MaterialReconcilingItemsMember
2019-01-01
2019-06-30
0001337619
us-gaap:OperatingSegmentsMember
2018-04-01
2018-06-30
0001337619
us-gaap:OperatingSegmentsMember
env:EnvestnetDataandAnalyticsMember
2019-04-01
2019-06-30
0001337619
us-gaap:OperatingSegmentsMember
env:EnvestnetDataandAnalyticsMember
2019-01-01
2019-06-30
0001337619
us-gaap:OperatingSegmentsMember
2019-01-01
2019-06-30
0001337619
us-gaap:OperatingSegmentsMember
env:EnvestnetWealthSolutionsMember
2018-01-01
2018-06-30
0001337619
env:OtherCountryMember
2018-12-31
0001337619
country:US
2019-06-30
0001337619
country:IN
2018-12-31
0001337619
country:US
2018-12-31
0001337619
env:OtherCountryMember
2019-06-30
0001337619
country:IN
2019-06-30
env:state
xbrli:shares
iso4217:USD
iso4217:USD
xbrli:shares
xbrli:pure
env:advisor
env:account_product
env:proprietary_product
env:executive
env:investment_product
env:segment
env:claim
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 001-34835
Envestnet, Inc.
(Exact name of registrant as specified in its charter)
|
| | |
Delaware | | 20-1409613 |
(State or other jurisdiction of incorporation or organization) | | (I.R.S Employer Identification No.) |
|
| | | | |
35 East Wacker Drive, Suite 2400 | Chicago, | Illinois | | 60601 |
(Address of principal executive offices) | | (Zip Code) |
Registrant’s telephone number, including area code:
(312) 827-2800
Securities registered pursuant to Section 12(b) of the Act: |
| | |
Title of each class | Trading symbol(s) | Name of exchange on which registered |
Common Stock, par value $0.005 per share | ENV | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
|
| | | | |
Large accelerated filer | ý | | Accelerated filer | ¨ |
| | | | |
Non-accelerated filer | ¨ | | Smaller reporting company | ☐ |
| | | | |
| | | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ý
As of August 1, 2019, Envestnet, Inc. had 52,182,228 shares of common stock outstanding.
TABLE OF CONTENTS
Envestnet, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share information)
(unaudited)
|
| | | | | | | | |
| | June 30, | | December 31, |
| | 2019 | | 2018 |
Assets: | | | | |
Current assets: | | | | |
Cash and cash equivalents | | $ | 77,717 |
| | $ | 289,345 |
|
Fees receivable, net | | 71,632 |
| | 68,004 |
|
Prepaid expenses and other current assets | | 40,046 |
| | 23,557 |
|
Total current assets | | 189,395 |
|
| 380,906 |
|
| | | | |
Property and equipment, net | | 51,016 |
| | 44,991 |
|
Internally developed software, net | | 48,059 |
| | 38,209 |
|
Intangible assets, net | | 509,159 |
| | 305,241 |
|
Goodwill | | 908,686 |
| | 519,102 |
|
Operating lease right-of-use assets, net | | 72,191 |
| | — |
|
Other non-current assets | | 33,834 |
| | 25,298 |
|
Total assets | | $ | 1,812,340 |
|
| $ | 1,313,747 |
|
| | | | |
Liabilities and Equity: | | | | |
Current liabilities: | | | | |
Accrued expenses and other liabilities | | $ | 118,608 |
| | $ | 133,298 |
|
Accounts payable | | 15,165 |
| | 19,567 |
|
Operating lease liabilities | | 12,918 |
| | — |
|
Convertible Notes due 2019 | | 169,182 |
| | 165,711 |
|
Contingent consideration | | — |
| | 732 |
|
Deferred revenue | | 37,601 |
| | 23,988 |
|
Total current liabilities | | 353,474 |
|
| 343,296 |
|
| | | | |
Convertible Notes due 2023 | | 300,078 |
| | 294,725 |
|
Revolving credit facility | | 145,000 |
| | — |
|
Contingent consideration | | 16,423 |
| | — |
|
Deferred revenue | | 6,659 |
| | 6,910 |
|
Non-current operating lease liabilities | | 77,431 |
| | — |
|
Deferred rent and lease incentive | | — |
| | 17,569 |
|
Deferred tax liabilities, net | | 31,292 |
| | 640 |
|
Other non-current liabilities | | 28,193 |
| | 18,005 |
|
Total liabilities | | 958,550 |
| | 681,145 |
|
| | | | |
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 | | 327 |
| | 306 |
|
Additional paid-in capital | | 1,015,578 |
| | 761,128 |
|
Accumulated deficit | | (76,174 | ) | | (58,882 | ) |
Treasury stock at cost, 13,345,514 and 13,117,098 shares as of June 30, 2019 and December 31, 2018, respectively | | (83,820 | ) | | (67,858 | ) |
Accumulated other comprehensive loss | | (660 | ) | | (994 | ) |
Total stockholders’ equity | | 855,251 |
| | 633,700 |
|
Non-controlling interest | | (1,461 | ) | | (1,098 | ) |
Total equity | | 853,790 |
| | 632,602 |
|
Total liabilities and equity | | $ | 1,812,340 |
|
| $ | 1,313,747 |
|
See accompanying notes to unaudited Condensed Consolidated Financial Statements.
Envestnet, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share information)
(unaudited)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2019 | | 2018 | | 2019 | | 2018 |
Revenues: | | | | | | | | |
Asset-based | | $ | 120,070 |
| | $ | 118,111 |
| | $ | 229,004 |
| | $ | 239,264 |
|
Subscription-based | | 92,258 |
| | 71,779 |
| | 175,345 |
| | 141,474 |
|
Total recurring revenues | | 212,328 |
|
| 189,890 |
|
| 404,349 |
|
| 380,738 |
|
Professional services and other revenues | | 12,117 |
| | 11,226 |
| | 19,762 |
| | 18,389 |
|
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 | | $ | 0.02 |
| | $ | (0.12 | ) | | $ | (0.35 | ) | | $ | 0.06 |
|
Diluted | | $ | 0.02 |
| | $ | (0.12 | ) | | $ | (0.35 | ) | | $ | 0.05 |
|
| | | | | | | | |
Weighted average common shares outstanding: | | | | | | | | |
Basic | | 50,870,296 |
| | 45,247,331 |
| | 49,526,774 |
| | 44,963,735 |
|
Diluted | | 52,982,688 |
| | 45,247,331 |
| | 49,526,774 |
| | 47,156,205 |
|
See accompanying notes to unaudited Condensed Consolidated Financial Statements.
Envestnet, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(in thousands)
(unaudited)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2019 | | 2018 | | 2019 | | 2018 |
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 |
|
See accompanying notes to unaudited Condensed Consolidated Financial Statements.
Envestnet, Inc.
Condensed Consolidated Statements of Equity
(in thousands, except share information)
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 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 | | 61,238,898 |
| | $ | 306 |
| | (13,117,098 | ) | | $ | (67,858 | ) | | $ | 761,128 |
| | $ | (994 | ) | | $ | (58,882 | ) | | $ | (1,098 | ) | | $ | 632,602 |
|
Exercise of stock options | | 200,326 |
| | 1 |
| | — |
| | — |
| | 3,162 |
| | — |
| | — |
| | — |
| | 3,163 |
|
Issuance of common stock - vesting of restricted stock units | | 479,479 |
| | 2 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 2 |
|
Acquisition of business | | 15,755 |
| | — |
| | — |
| | — |
| | 772 |
| | — |
| | — |
| | — |
| | 772 |
|
Stock-based compensation expense | | — |
| | — |
| | — |
| | — |
| | 12,864 |
| | — |
| | — |
| | — |
| | 12,864 |
|
Purchase of treasury stock for stock-based tax withholdings | | — |
| | — |
| | (160,456 | ) | | (9,819 | ) | | — |
| | — |
| | — |
| | — |
| | (9,819 | ) |
Foreign currency translation gain (loss) | | — |
| | — |
| | — |
| | — |
| | — |
| | 222 |
| | — |
| | — |
| | 222 |
|
Net income (loss) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (18,185 | ) | | (83 | ) | | (18,268 | ) |
Balance, March 31, 2019 | | 61,934,458 |
| | 309 |
| | (13,277,554 | ) | | (77,677 | ) | | 777,926 |
| | (772 | ) | | (77,067 | ) | | (1,181 | ) | | 621,538 |
|
Exercise of stock options | | 114,109 |
| | 1 |
| | — |
| | — |
| | 1,750 |
| | — |
| | — |
| | — |
| | 1,751 |
|
Issuance of common stock - vesting of restricted stock units | | 182,390 |
| | 1 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1 |
|
Acquisition of business | | 3,184,713 |
| | 16 |
| | — |
| | — |
| | 222,468 |
| | — |
| | — |
| | — |
| | 222,484 |
|
Stock-based compensation expense | | — |
| | — |
| | — |
| | — |
| | 13,434 |
| | — |
| | — |
| | — |
| | 13,434 |
|
Purchase of treasury stock for stock-based tax withholdings | | — |
| | — |
| | (67,960 | ) | | (6,143 | ) | | — |
| | — |
| | — |
| | — |
| | (6,143 | ) |
Foreign currency translation gain (loss) | | — |
| | — |
| | — |
| | — |
| | — |
| | 112 |
| | — |
| | — |
| | 112 |
|
Net income (loss) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 893 |
| | (280 | ) | | 613 |
|
Balance, June 30, 2019 | | 65,415,670 |
|
| $ | 327 |
|
| (13,345,514 | ) |
| $ | (83,820 | ) |
| $ | 1,015,578 |
|
| $ | (660 | ) |
| $ | (76,174 | ) |
| $ | (1,461 | ) |
| $ | 853,790 |
|
See accompanying notes to unaudited Condensed Consolidated Financial Statements.
Envestnet, Inc.
Condensed Consolidated Statements of Equity (continued)
(in thousands, except share information)
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | 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 | | 57,450,056 |
| | $ | 287 |
| | (12,749,415 | ) | | $ | (47,042 | ) | | $ | 556,257 |
| | $ | 624 |
| | $ | (73,854 | ) | | $ | 398 |
| | $ | 436,670 |
|
Adoption of ASC 606 | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 9,217 |
| | — |
| | 9,217 |
|
Exercise of stock options | | 162,857 |
| | 1 |
| | — |
| | — |
| | 2,403 |
| | — |
| | — |
| | — |
| | 2,404 |
|
Issuance of common stock - vesting of restricted stock units | | 503,668 |
| | 2 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 2 |
|
Stock-based compensation expense | | — |
| | — |
| | — |
| | — |
| | 8,495 |
| | — |
| | — |
| | — |
| | 8,495 |
|
Purchase of treasury stock for stock-based tax withholdings | | — |
| | — |
| | (166,217 | ) | | (9,296 | ) | | — |
| | — |
| | — |
| | — |
| | (9,296 | ) |
Issuance of non-controlling units in private company | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 873 |
| | 873 |
|
Foreign currency translation gain (loss) | | — |
| | — |
| | — |
| | — |
| | — |
| | (327 | ) | | — |
| | — |
| | (327 | ) |
Net income (loss) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 8,104 |
| | (102 | ) | | 8,002 |
|
Balance, March 31, 2018 | | 58,116,581 |
| | 290 |
| | (12,915,632 | ) | | (56,338 | ) | | 567,155 |
| | 297 |
| | (56,533 | ) | | 1,169 |
| | 456,040 |
|
Exercise of stock options | | 12,166 |
| | — |
| | — |
| | — |
| | 136 |
| | — |
| | — |
| | — |
| | 136 |
|
Issuance of common stock - vesting of restricted stock units | | 253,279 |
| | 1 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1 |
|
Stock-based compensation expense | | — |
| | — |
| | — |
| | — |
| | 10,476 |
| | — |
| | — |
| | — |
| | 10,476 |
|
Purchase of treasury stock for stock-based tax withholdings | | — |
| | — |
| | (90,800 | ) | | (5,099 | ) | | — |
| | — |
| | — |
| | — |
| | (5,099 | ) |
Issuance of Convertible Notes due 2023, net of offering costs | | — |
| | — |
| | — |
| | — |
| | 46,611 |
| | — |
| | — |
| | — |
| | 46,611 |
|
Foreign currency translation gain (loss) | | — |
| | — |
| | — |
| | — |
| | — |
| | (1,036 | ) | | — |
| | — |
| | (1,036 | ) |
Net income (loss) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (5,526 | ) | | (465 | ) | | (5,991 | ) |
Balance, June 30, 2018 | | 58,382,026 |
| | $ | 291 |
| | (13,006,432 | ) | | $ | (61,437 | ) | | $ | 624,378 |
| | $ | (739 | ) | | $ | (62,059 | ) | | $ | 704 |
| | $ | 501,138 |
|
See accompanying notes to unaudited Condensed Consolidated Financial Statements.
Envestnet, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
| | | | | | | | |
| | Six Months Ended |
| | June 30, |
| | 2019 | | 2018 |
OPERATING ACTIVITIES: | | | | |
Net income (loss) | | $ | (17,655 | ) | | $ | 2,011 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | |
Depreciation and amortization | | 46,432 |
| | 38,731 |
|
Deferred rent and lease incentive amortization | | — |
| | 1,069 |
|
Provision for doubtful accounts | | 713 |
| | 924 |
|
Deferred income taxes | | (28,991 | ) | | (17,093 | ) |
Non-cash based compensation expense | | 27,852 |
| | 18,971 |
|
Non-cash interest expense | | 9,896 |
| | 5,630 |
|
Accretion on contingent consideration and purchase liability | | 742 |
| | 196 |
|
Payments of contingent consideration | | (578 | ) | | — |
|
Loss allocation from equity method investment | | 550 |
| | 811 |
|
Changes in operating assets and liabilities, net of acquisitions: | | | | |
Fees receivable, net | | (536 | ) | | (8,204 | ) |
Prepaid expenses and other current assets | | (15,507 | ) | | (3,426 | ) |
Other non-current assets | | (3,241 | ) | | (2,450 | ) |
Accrued expenses and other liabilities | | (19,060 | ) | | (5,438 | ) |
Accounts payable | | (4,768 | ) | | 4,166 |
|
Deferred revenue | | 3,940 |
| | 3,478 |
|
Other non-current liabilities | | 2,602 |
| | 1,578 |
|
Net cash provided by operating activities | | 2,391 |
| | 40,954 |
|
| | | | |
INVESTING ACTIVITIES: | | | | |
Purchases of property and equipment | | (8,815 | ) | | (9,569 | ) |
Capitalization of internally developed software | | (15,583 | ) | | (10,622 | ) |
Acquisitions of businesses, net of cash acquired | | (321,571 | ) | | (188,345 | ) |
Other | | (2,000 | ) | | — |
|
Net cash used in investing activities | | (347,969 | ) | | (208,536 | ) |
| | | | |
FINANCING ACTIVITIES: | | | | |
Proceeds from issuance of Convertible Notes due 2023 | | — |
| | 345,000 |
|
Convertible Notes due 2023 issuance costs | | — |
| | (9,488 | ) |
Proceeds from borrowings on revolving credit facility | | 175,000 |
| | 195,000 |
|
Payments on revolving credit facility | | (30,000 | ) | | (276,168 | ) |
Payments of contingent consideration | | (171 | ) | | (2,193 | ) |
Proceeds from exercise of stock options | | 4,914 |
| | 2,540 |
|
Purchase of treasury stock for stock-based tax withholdings | | (15,962 | ) | | (14,395 | ) |
Issuance of restricted stock units | | 3 |
| | 3 |
|
Net cash provided by financing activities | | 133,784 |
| | 240,299 |
|
| | | | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | | 166 |
| | (572 | ) |
| | | | |
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | | (211,628 | ) |
| 72,145 |
|
| | | | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | | 289,671 |
| | 62,115 |
|
| | | | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (See Note 2) | | $ | 78,043 |
| | $ | 134,260 |
|
| | | | |
Supplemental disclosure of cash flow information - net cash paid during the period for income taxes | | $ | 6,121 |
| | $ | 2,225 |
|
Supplemental disclosure of cash flow information - cash paid during the period for interest | | 5,952 |
| | 4,271 |
|
Supplemental disclosure of non-cash operating, investing and financing activities: | | | | |
Common stock issued in acquisition of business | | 222,484 |
| | — |
|
Contingent consideration issued in acquisition of businesses | | 15,880 |
| | — |
|
Purchase liabilities included in other non-current liabilities | | 5,468 |
| | — |
|
Purchase of fixed assets included in accounts payable and accrued expenses and other liabilities | | 1,567 |
| | 1,188 |
|
Membership interest liabilities included in other non-current liabilities | | 1,480 |
| | — |
|
Common stock issued to settle purchase liability | | 772 |
| | — |
|
Leasehold improvements funded by lease incentive | | 648 |
| | 1,080 |
|
Purchase liabilities included in accrued expenses and other liabilities | | — |
| | 1,422 |
|
See accompanying notes to unaudited Condensed Consolidated Financial Statements.
Envestnet, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(in thousands, except share and per share amounts)
| |
1. | 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:
| |
• | Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions. |
Within Envestnet Wealth Solutions, the Company offers these solutions principally through the following products and services suites:
| |
• | 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 offers 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 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 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. |
| |
• | 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. |
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”).
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,
Envestnet, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements (continued)
(in thousands, except share and per share amounts)
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:
|
| | | | | | | | |
| | June 30, | | December 31, |
| | 2019 | | 2018 |
Cash and cash equivalents | | $ | 77,717 |
| | $ | 289,345 |
|
Restricted cash included in prepaid expenses and other current assets | | 158 |
| | 158 |
|
Restricted cash included in other non-current assets | | 168 |
| | 168 |
|
Total cash, cash equivalents and restricted cash | | $ | 78,043 |
| | $ | 289,671 |
|
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
Envestnet, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements (continued)
(in thousands, except share and per share amounts)
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.
In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” This update aims to improve the effectiveness of disclosure requirements on fair value measurement as part of the disclosure framework project. 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.
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:
|
| | | | |
| | Preliminary Estimate |
Cash consideration | | $ | 11,173 |
|
Purchase consideration liability | | 6,240 |
|
Contingent consideration liability | | 7,580 |
|
Working capital adjustment | | 70 |
|
Total | | $ | 25,063 |
|
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
Envestnet, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements (continued)
(in thousands, except share and per share amounts)
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:
|
| | | | |
| | Preliminary Estimate |
Total tangible assets acquired | | $ | 144 |
|
Total liabilities assumed | | (629 | ) |
Identifiable intangible assets | | 4,100 |
|
Goodwill | | 21,448 |
|
Total net assets acquired | | $ | 25,063 |
|
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:
|
| | | | | | | | |
| | Preliminary Estimate | | Estimated Useful Life in Years | | Amortization Method |
Proprietary technology | | $ | 4,100 |
| | 4 | | Straight-line |
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.
Envestnet, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements (continued)
(in thousands, except share and per share amounts)
The preliminary consideration transferred in the acquisition was as follows:
|
| | | | |
| | Preliminary Estimate |
Cash consideration | | $ | 17,500 |
|
Contingent consideration liability | | 8,300 |
|
Total | | $ | 25,800 |
|
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 infor