Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

v3.21.2
Net Income (Loss) Per Share
 9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
 
Basic net 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 net 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 and restricted stock units and convertible notes, if dilutive, using either the treasury method or if-converted method, as appropriate.

Prior to January 1, 2021, the Company accounted for the effect of its convertible notes using the treasury stock method since they may be settled in cash, shares or a combination thereof at the Company's option. Pursuant to the adoption of ASU 2020-06 on January 1, 2021, the Company now accounts for the effect of its convertible notes on diluted net income per share using the if-converted method (See “Note 2—Basis of Presentation” and “Note 9—Debt”).
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,
  2021 2020 2021 2020
(in thousands, except share and per share data)
Net income (loss) attributable to Envestnet, Inc. (a)
$ 11,740  $ 1,910  $ 18,405  $ (10,350)
Weighted-average common shares outstanding:
Basic (b)
54,547,858  53,800,048  54,400,247  53,464,101 
Effect of dilutive shares:
Options to purchase common stock 201,103  331,728  207,281  — 
Unvested restricted stock units 570,515  610,442  614,005  — 
Convertible Notes —  730,267  —  — 
Warrants 69,151  86,498  66,439  — 
Diluted (c)
55,388,627  55,558,983  55,287,972  53,464,101 
Net income (loss) per share attributable to Envestnet, Inc common stock:
Basic (a/b)
$ 0.22  $ 0.04  $ 0.34  $ (0.19)
Diluted (a/c)
$ 0.21  $ 0.03  $ 0.33  $ (0.19)
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,
  2021 2020 2021 2020
Options to purchase common stock —  —  —  556,252 
Unvested RSUs and PSUs —  —  —  1,766,715 
Warrants —  —  —  470,000 
Convertible Notes 9,898,549  4,848,044  9,898,549  9,898,549 
Total anti-dilutive securities 9,898,549  4,848,044  9,898,549  12,691,516