Annual report pursuant to Section 13 and 15(d)

Net Income (Loss) Per Share

v3.10.0.1
Net Income (Loss) Per Share
 12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
Net Income (Loss) Per Share
 
Basic net income or loss per common share is computed by dividing net income or loss 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, restricted stock awards, restricted stock units and Convertible Notes using the treasury stock method, if dilutive.
 
The Company accounts for the effect of the Convertible Notes on diluted net income 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 have no effect on diluted net loss per share until the Company’s stock price exceeds the conversion price of $62.88 and $68.31 per share, respectively, or if the trading price of the Convertible Notes meets certain criteria as described in “Note 12 – Debt.” In the period of conversion, the Convertible Notes will have no impact on diluted earnings per share if the Convertible Notes are settled in cash and will have an impact on basic and diluted earnings per share if the Convertible Notes are settled in shares upon conversion.
 
The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share attributable to common stockholders:

 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Basic income (loss) per share calculation:
 
 

 
 

 
 

Net income (loss) attributable to Envestnet, Inc.
 
$
5,755

 
$
(3,280
)
 
$
(55,567
)
 
 
 
 
 
 
 
Basic number of weighted-average shares outstanding
 
45,268,002

 
43,732,148

 
42,814,222

Basic
 
$
0.13

 
$
(0.08
)
 
$
(1.30
)
 
 
 
 
 
 
 
Diluted income (loss) per share calculation:
 
 
 
 
 
 
Net income (loss) attributable to Envestnet, Inc.
 
$
5,755

 
$
(3,280
)
 
$
(55,567
)
 
 
 
 
 
 
 
Basic number of weighted-average shares outstanding
 
45,268,002

 
43,732,148

 
42,814,222

Effect of dilutive shares:
 
 
 
 
 
 
Options to purchase common stock
 
1,304,493

 
—

 
—

Unvested restricted stock units
 
811,590

 
—

 
—

Diluted number of weighted-average shares outstanding
 
47,384,085

 
43,732,148

 
42,814,222

Diluted
 
$
0.12

 
$
(0.08
)
 
$
(1.30
)

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

 
 
December 31,
 
 
2018
 
2017
 
2016
Options to purchase common stock
 
—

 
2,254,565

 
3,033,194

Unvested restricted stock awards and units
 
—

 
1,766,639

 
1,894,759

Warrants - private placement
 
470,000

 
—

 
—

Convertible Notes
 
7,793,826

 
2,743,321

 
2,743,321

Total
 
8,263,826

 
6,764,525

 
7,671,274