Quarterly report pursuant to Section 13 or 15(d)

Revenue (Tables)

v3.8.0.1
Revenue (Tables)
3 Months Ended
Mar. 31, 2018
Revenue  
Summary of cumulative effect of the changes made to the Company’s condensed consolidated balance sheets as of January 1, 2018 for the adoption of the new revenue standard

The cumulative effect of the changes made to the Company’s condensed consolidated balance sheets as of January 1, 2018 for the adoption of the new revenue standard was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at

 

Cumulative Catch-up

 

Balance at

 

 

December 31, 2017

 

Adjustments

 

January 1, 2018

Balance Sheets

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

Other non-current assets

    

$

17,176

    

$

5,315

    

$

22,491

Liabilities:

 

 

 

 

 

 

 

 

 

Deferred revenue, current

 

 

21,246

 

 

(1,122)

 

 

20,124

Deferred revenue, non-current

 

 

12,047

 

 

(2,780)

 

 

9,267

Equity:

 

 

 

 

 

 

 

 

 

Accumulated deficit

 

 

(73,854)

 

 

9,217

 

 

(64,637)

 

In accordance with the new revenue standard requirements, the impact of adoption on the Company’s condensed consolidated statements of operations and condensed consolidated balance sheets was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2018

 

 

 

 

Without Adoption of

 

Effect of Change

 

 

As Reported

 

ASC 606

 

Higher/(Lower)

Statements of Operations

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Asset-based

    

$

121,153

    

$

124,753

    

$

(3,600)

Subscription-based

 

 

69,695

 

 

69,695

 

 

 —

Total recurring revenues

 

 

190,848

 

 

194,448

 

 

(3,600)

Professional services and other revenues

 

 

7,163

 

 

7,200

 

 

(37)

Total revenues

 

 

198,011

 

 

201,648

 

 

(3,637)

Operating expenses:

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

62,934

 

 

66,534

 

 

(3,600)

Compensation and benefits

 

 

83,540

 

 

83,667

 

 

(127)

Total operating expenses

 

 

198,749

 

 

202,476

 

 

(3,727)

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(738)

 

 

(828)

 

 

90

 

 

 

 

 

 

 

 

 

 

Net income

 

 

8,002

 

 

7,912

 

 

90

 

 

 

 

 

 

 

 

 

 

Net income attributable to Envestnet, Inc.

 

 

8,104

 

 

8,014

 

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2018

 

 

 

 

Without Adoption of

 

Effect of Change

 

 

As Reported

 

ASC 606

 

Higher/(Lower)

Balance Sheets

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

Fees receivable, net

 

$

66,614

 

$

65,721

 

$

893

Other non-current assets

 

 

24,282

 

 

18,840

 

 

5,442

Liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

18,067

 

 

17,174

 

 

893

Deferred revenue, current

 

 

27,493

 

 

28,083

 

 

(590)

Deferred revenue, non-current

 

 

9,883

 

 

13,158

 

 

(3,275)

Equity:

 

 

 

 

 

 

 

 

 

Accumulated deficit

 

 

(56,533)

 

 

(65,840)

 

 

9,307

 

The impact of adoption on the Company’s condensed consolidated statements of cash flows is immaterial.

 

Summary of Significant Accounting Policies

Except for the accounting policies for revenue recognition, fees receivable including unbilled receivables and deferred sales incentive compensation that were updated as a result of adopting ASC 606, there have been no changes to our significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 28, 2018, that have had a material impact on our condensed consolidated financial statements and related notes.

Revenue Recognition

 

Schedule of disaggregation of revenue by major source

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2018

 

2017

 

 

Envestnet

 

Envestnet | Yodlee

 

Consolidated

 

Envestnet(1)

 

Envestnet | Yodlee(1)

 

Consolidated(1)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-based

    

$

121,153

    

$

 —

    

$

121,153

    

$

94,162

    

$

 —

    

$

94,162

Subscription-based

 

 

32,585

 

 

37,110

 

 

69,695

 

 

25,237

 

 

32,673

 

 

57,910

Total recurring revenues

 

 

153,738

 

 

37,110

 

 

190,848

 

 

119,399

 

 

32,673

 

 

152,072

Professional services and other revenues

 

 

2,250

 

 

4,913

 

 

7,163

 

 

1,919

 

 

3,795

 

 

5,714

Total revenues

 

$

155,988

 

$

42,023

 

$

198,011

 

$

121,318

 

$

36,468

 

$

157,786

 

(1)

As noted above, prior period amounts have not been adjusted under the modified retrospective method.

 

Schedule of disaggregation of revenue by geography

 

 

 

 

 

 

 

Three Months Ended

 

March 31,

 

2018

    

2017(2)

United States

$

188,315

 

$

141,962

International (1)

 

9,696

 

 

15,824

Total

$

198,011

 

$

157,786

(1)

No foreign country accounted for more than 10% of total revenues.

(2)

As noted above, prior period amounts have not been adjusted under the modified retrospective method.

 

Schedule of estimated revenue expected to be recognized in the future

 

 

 

 

Years ending December 31:

    

 

 

Remainder of 2018

 

$

154,502

2019

 

 

149,116

2020

 

 

84,152

2021

 

 

48,334

2022

 

 

35,572

Thereafter

 

 

52,063

Total

 

$

523,739

 

Schedule of billed receivables, unbilled receivables and deferred revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables,

 

Unbilled receivables,

 

 

 

 

 

 

which are included in

 

which are included in

 

Deferred Revenue

 

Deferred Revenue

 

 

Fees receivable, net

 

Fees receivable, net

 

(current)

 

(non-current)

 

 

 

 

 

 

 

 

 

 

 

 

 

Opening balance as of January 1, 2018

    

$

36,605

    

$

13,229

    

$

20,124

    

$

9,267

Increase, net

 

 

14,473

 

 

2,307

 

 

7,369

 

 

616

Ending balance as of March 31, 2018

 

$

51,078

 

$

15,536

 

$

27,493

 

$

9,883

 

Summary of revenues from major customers

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

    

2018

    

2017

 

Fidelity

 

16

%  

16

%