Annual report pursuant to Section 13 and 15(d)

Net Income (Loss) Per Share

v3.19.3.a.u2
Net Income (Loss) Per Share
12 Months Ended
Dec. 31, 2019
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, 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 net income (loss) 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 have no effect on diluted net income (loss) per share until certain criteria are met, including the Company’s stock price exceeding the conversion price of $62.88 and $68.31 per share, 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 net income (loss) per share if they are settled in cash and will have an impact on dilutive net income (loss) per share if they are settled in shares upon conversion. The Convertible Notes due 2019 were settled in cash upon maturity.
 
The following table provides the numerators and denominators used in computing basic and diluted net income (loss) per share attributable to Envestnet, Inc.:
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
Basic income (loss) per share calculation:
 
 

 
 

 
 

Net income (loss) attributable to Envestnet, Inc.
 
$
(16,782
)
 
$
5,755

 
$
(3,280
)
 
 
 
 
 
 
 
Basic number of weighted-average shares outstanding
 
50,937,919

 
45,268,002

 
43,732,148

Basic net income (loss) per share
 
$
(0.33
)
 
$
0.13

 
$
(0.08
)
 
 
 
 
 
 
 
Diluted income (loss) per share calculation:
 
 
 
 
 
 
Net income (loss) attributable to Envestnet, Inc.
 
$
(16,782
)
 
$
5,755

 
$
(3,280
)
 
 
 
 
 
 
 
Basic number of weighted-average shares outstanding
 
50,937,919

 
45,268,002

 
43,732,148

Effect of dilutive shares:
 
 
 
 
 
 
Options to purchase common stock
 

 
1,304,493

 

Unvested restricted stock units
 

 
811,590

 

Convertible Notes
 

 

 

Warrants
 

 

 

Diluted number of weighted-average shares outstanding
 
50,937,919

 
47,384,085

 
43,732,148

Diluted net income (loss) per share
 
$
(0.33
)
 
$
0.12

 
$
(0.08
)

 
Securities that were anti-dilutive and therefore excluded from the computation of diluted net income (loss) per share are as follows: 
 
 
December 31,
 
 
2019
 
2018
 
2017
Options to purchase common stock
 
1,150,586

 

 
2,254,565

Unvested restricted stock units and awards
 
1,572,988

 

 
1,766,639

Convertible Notes (1)
 
5,050,505

 
7,793,826

 
2,743,321

Warrants
 
470,000

 
470,000

 

Total anti-dilutive securities
 
8,244,079

 
8,263,826

 
6,764,525

(1)
For 2019, this amount does not include 2,743,321 of potential common shares related to the Convertible Notes due 2019 as they were settled in cash at maturity in December 2019.