Envestnet, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings per Share

Earnings per Share

12 Months Ended

Dec. 31, 2013

13. Earnings per Share

Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options, common warrants and restricted stock using the treasury stock method.

The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to common stockholders:

	Year ended December 31,
	2013		2012		2011

Basic income per share calculation:
Net income	$	3,660	$	465	$	7,605

Basic number of weighted-average shares outstanding	33,191,088		32,162,672		31,643,390

Basic net income per share	$	0.11	$	0.01	$	0.24

Diluted income per share calculation:
Net income	$	3,660	$	465	$	7,605

Basic number of weighted-average shares outstanding	33,191,088		32,162,672		31,643,390
Effect of dilutive shares:
Options to purchase common stock	1,979,474		954,056		974,192
Common warrants	378,282		177,257		211,495
Restricted stock	117,731		47,630		34,757
Diluted number of weighted-average shares outstanding	35,666,575		33,341,615		32,863,834

Diluted net income per share	$	0.10	$	0.01	$	0.23

Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share are as follows:

	Year ended December 31,
	2013	2012	2011

Options to purchase common stock	—	1,209,748	121,000
Unvested restricted stock	432,272	559,551	—
Total	432,272	1,769,299	121,000

- Definition

The entire disclosure for earnings per share.

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