Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Share

v3.7.0.1
Net Loss Per Share
6 Months Ended
Jun. 30, 2017
Net Loss Per Share  
Net Loss Per Share

16.Net Loss Per Share

 

Basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted loss per share, the basic weighted average number of shares is increased by the dilutive effect of stock options, restricted stock awards, restricted stock units and Convertible Notes using the treasury stock method, if dilutive. No items were included in the computation of diluted loss per share in the three and six months ended June 30, 2016 and 2017 because the Company incurred a net loss attributable to Envestnet, Inc. in each of these periods and therefore these items were considered anti-dilutive.

 

The Company accounts for the effect of the Convertible Notes 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 have no effect on diluted earnings per share until the Company’s stock price exceeds the conversion price of $62.88 per share, or if the trading price of the Convertible Notes meets certain criteria as described in Note 14 at which point, the effect of the conversion feature would be included in the Company’s calculation of diluted earnings per share. In the period of conversion, the Convertible Notes will have no impact on diluted earnings if the Convertible Notes are settled in cash and will have an impact on dilutive earnings per share if the Convertible Notes are settled in shares upon conversion.

 

The following table provides the numerators and denominators used in computing basic and diluted net loss per share attributable to Envestnet, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

    

2017

    

2016

 

2017

    

2016

Net loss attributable to Envestnet, Inc.

 

$

(6,470)

 

$

(7,943)

 

$

(19,605)

 

$

(18,936)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic number of weighted-average shares outstanding

 

 

43,855,479

 

 

42,752,465

 

 

43,513,074

 

 

42,632,964

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted number of weighted-average shares outstanding

 

 

43,855,479

 

 

42,752,465

 

 

43,513,074

 

 

42,632,964

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to Envestnet, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.15)

 

$

(0.19)

 

$

(0.45)

 

$

(0.44)

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

(0.15)

 

$

(0.19)

 

$

(0.45)

 

$

(0.44)

 

Securities that were anti-dilutive for the three and six months ended June 30, 2017 and 2016 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

    

2017

    

2016

 

2017

    

2016

Options to purchase common stock

 

2,804,420

 

3,383,899

 

2,804,420

 

3,383,899

Unvested restricted stock awards and units

 

2,023,898

 

1,791,769

 

2,023,898

 

1,791,769

Convertible Notes

 

2,743,321

 

2,743,321

 

2,743,321

 

2,743,321

Total

 

7,571,639

 

7,918,989

 

7,571,639

 

7,918,989