Envestnet, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Revenue (Tables)

Revenue (Tables)

6 Months Ended

Jun. 30, 2018

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 June 30, 2018
			Without Adoption of		Effect of Change
	As Reported		ASC 606		Higher/(Lower)
Statements of Operations
Revenues:
Asset-based	$	118,111	$	121,646	$	(3,535)
Subscription-based		71,779		71,779		—
Total recurring revenues		189,890		193,425		(3,535)
Professional services and other revenues		11,226		11,385		(159)
Total revenues		201,116		204,810		(3,694)
Operating expenses:
Cost of revenues		67,627		71,162		(3,535)
Compensation and benefits		80,210		80,530		(320)
Total operating expenses		201,111		204,966		(3,855)

Income (loss) from operations		5		(156)		161

Net loss		(5,991)		(6,152)		161

Net loss attributable to Envestnet, Inc.		(5,526)		(5,687)		161


	Six Months Ended June 30, 2018
			Without Adoption of		Effect of Change
	As Reported		ASC 606		Higher/(Lower)
Statements of Operations
Revenues:
Asset-based	$	239,264	$	246,399	$	(7,135)
Subscription-based		141,474		141,474		—
Total recurring revenues		380,738		387,873		(7,135)
Professional services and other revenues		18,389		18,585		(196)
Total revenues		399,127		406,458		(7,331)
Operating expenses:
Cost of revenues		130,561		137,696		(7,135)
Compensation and benefits		163,750		164,197		(447)
Total operating expenses		399,860		407,442		(7,582)

Loss from operations		(733)		(984)		251

Net income		2,011		1,760		251

Net income attributable to Envestnet, Inc.		2,578		2,327		251


	At June 30, 2018
			Without Adoption of		Effect of Change
	As Reported		ASC 606		Higher/(Lower)
Balance Sheets
Assets:
Fees receivable, net	$	64,164	$	63,218	$	946
Other non-current assets		23,907		18,145		5,762
Liabilities:
Accounts payable		21,133		20,187		946
Deferred revenue, current		25,739		26,720		(981)
Deferred revenue, non-current		7,929		10,654		(2,725)
Equity:
Accumulated deficit		(62,059)		(71,527)		9,468

Schedule of disaggregation of revenue by major source


	Three Months Ended June 30,
	2018						2017
	Envestnet		Envestnet \| Yodlee		Consolidated		Envestnet(1)		Envestnet \| Yodlee(1)		Consolidated(1)
Revenues:
Asset-based	$	118,111	$	—	$	118,111	$	98,959	$	—	$	98,959
Subscription-based		33,023		38,756		71,779		25,471		34,331		59,802
Total recurring revenues		151,134		38,756		189,890		124,430		34,331		158,761
Professional services and other revenues		5,794		5,432		11,226		4,942		3,714		8,656
Total revenues	$	156,928	$	44,188	$	201,116	$	129,372	$	38,045	$	167,417

⁽¹⁾

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


	Six Months Ended June 30,
	2018						2017
	Envestnet		Envestnet \| Yodlee		Consolidated		Envestnet(1)		Envestnet \| Yodlee(1)		Consolidated(1)
Revenues:
Asset-based	$	239,264	$	—	$	239,264	$	193,121	$	—	$	193,121
Subscription-based		65,608		75,866		141,474		50,708		67,004		117,712
Total recurring revenues		304,872		75,866		380,738		243,829		67,004		310,833
Professional services and other revenues		8,044		10,345		18,389		6,861		7,509		14,370
Total revenues	$	312,916	$	86,211	$	399,127	$	250,690	$	74,513	$	325,203

⁽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				Six Months Ended
	June 30,				June 30,
	2018		2017(2)		2018		2017(2)
United States	$	193,237	$	151,621	$	381,552	$	293,583
International (1)		7,879		15,796		17,575		31,620
Total	$	201,116	$	167,417	$	399,127	$	325,203

⁽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.

One customer accounted for more than 10% of the Company’s total revenues:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Fidelity	16	%	16	%	16	%	16	%

Schedule of estimated revenue expected to be recognized in the future


Years ending December 31:
Remainder of 2018	$	105,353
2019		164,482
2020		92,639
2021		53,793
2022		40,774
Thereafter		54,122
Total	$	511,163

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/(decrease), net		11,177		3,153		5,615		(1,338)
Ending balance as of June 30, 2018	$	47,782	$	16,382	$	25,739	$	7,929

Summary of revenues from major customers


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Fidelity	16	%	16	%	16	%	16	%