Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

v3.19.3
Net Income (Loss) Per Share
 9 Months Ended
Sep. 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.:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
Basic income (loss) per share calculation:
 
 
 
 
 
 
 
 
Net loss attributable to Envestnet, Inc.
 
$
(3,080
)
 
$
2,954

 
$
(20,372
)
 
$
5,532

 
 
 
 
 
 
 
 
 
Basic number of weighted-average shares outstanding
 
52,215,469

 
45,475,884

 
50,414,427

 
45,087,932

Basic net income (loss) per share
 
$
(0.06
)
 
$
0.06

 
$
(0.40
)
 
$
0.12

 
 
 
 
 
 
 
 
 
Diluted income (loss) per share calculation:
 
 
 
 
 
 
 
 
Net income (loss) attributable to Envestnet, Inc.
 
$
(3,080
)
 
$
2,954

 
$
(20,372
)
 
$
5,532

 
 
 
 
 
 
 
 
 
Basic number of weighted-average shares outstanding
 
52,215,469

 
45,475,884

 
50,414,427

 
45,087,932

Effect of dilutive shares:
 
 
 
 
 
 
 
 
Options to purchase common stock
 
—

 
1,323,712

 
—

 
1,348,699

Unvested restricted stock units
 
—

 
719,564

 
—

 
832,848

Convertible notes
 
—

 
—

 
—

 
—

Warrants
 
—

 
—

 
—

 
—

Diluted number of weighted-average shares outstanding
 
52,215,469

 
47,519,160

 
50,414,427

 
47,269,479

Diluted net income (loss) per share
 
$
(0.06
)
 
$
0.06

 
$
(0.40
)
 
$
0.12


 Securities that were anti-dilutive and therefore excluded from the computation of diluted net income (loss) per share were as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
Options to purchase common stock
 
1,394,009

 
—

 
1,394,009

 
—

Unvested restricted stock awards and units
 
1,787,608

 
—

 
1,787,608

 
—

Warrants
 
470,000

 
—

 
470,000

 
—

Convertible Notes
 
7,793,826

 
7,793,826

 
7,793,826

 
7,793,826

Total
 
11,445,443


7,793,826


11,445,443

 
7,793,826