Revenue (Tables)
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3 Months Ended |
Mar. 31, 2018 |
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| Revenue |
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| Summary of cumulative effect of the changes made to the Company’s condensed consolidated balance sheets as of January 1, 2018 for the adoption of the new revenue standard |
The cumulative effect of the changes made to the Company’s condensed consolidated balance sheets as of January 1, 2018 for the adoption of the new revenue standard was as follows:
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Balance at
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Cumulative Catch-up
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Balance at
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December 31, 2017
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Adjustments
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January 1, 2018
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Balance Sheets
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Assets:
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Other non-current assets
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$
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17,176
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$
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5,315
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$
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22,491
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Liabilities:
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Deferred revenue, current
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21,246
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(1,122)
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20,124
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Deferred revenue, non-current
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12,047
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(2,780)
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9,267
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Equity:
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Accumulated deficit
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(73,854)
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9,217
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(64,637)
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In accordance with the new revenue standard requirements, the impact of adoption on the Company’s condensed consolidated statements of operations and condensed consolidated balance sheets was as follows:
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Three Months Ended March 31, 2018
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Without Adoption of
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Effect of Change
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As Reported
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ASC 606
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Higher/(Lower)
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Statements of Operations
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Revenues:
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Asset-based
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$
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121,153
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$
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124,753
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$
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(3,600)
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Subscription-based
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69,695
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69,695
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—
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Total recurring revenues
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190,848
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194,448
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(3,600)
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Professional services and other revenues
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7,163
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7,200
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(37)
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Total revenues
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198,011
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201,648
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(3,637)
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Operating expenses:
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Cost of revenues
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62,934
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66,534
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(3,600)
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Compensation and benefits
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83,540
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83,667
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(127)
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Total operating expenses
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198,749
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202,476
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(3,727)
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Loss from operations
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(738)
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(828)
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90
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Net income
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8,002
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7,912
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90
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Net income attributable to Envestnet, Inc.
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8,104
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8,014
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90
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At March 31, 2018
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Without Adoption of
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Effect of Change
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As Reported
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ASC 606
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Higher/(Lower)
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Balance Sheets
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Assets:
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Fees receivable, net
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$
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66,614
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$
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65,721
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$
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893
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Other non-current assets
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24,282
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18,840
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5,442
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Liabilities:
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Accounts payable
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18,067
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17,174
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893
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Deferred revenue, current
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27,493
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28,083
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(590)
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Deferred revenue, non-current
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9,883
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13,158
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(3,275)
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Equity:
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Accumulated deficit
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(56,533)
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(65,840)
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9,307
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The impact of adoption on the Company’s condensed consolidated statements of cash flows is immaterial.
Summary of Significant Accounting Policies
Except for the accounting policies for revenue recognition, fees receivable including unbilled receivables and deferred sales incentive compensation that were updated as a result of adopting ASC 606, there have been no changes to our significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 28, 2018, that have had a material impact on our condensed consolidated financial statements and related notes.
Revenue Recognition
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| Schedule of disaggregation of revenue by major source |
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Three Months Ended March 31,
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2018
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2017
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Envestnet
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Envestnet | Yodlee
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Consolidated
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Envestnet(1)
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Envestnet | Yodlee(1)
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Consolidated(1)
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Revenues:
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Asset-based
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$
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121,153
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$
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—
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$
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121,153
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$
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94,162
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$
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—
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$
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94,162
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Subscription-based
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32,585
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37,110
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69,695
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25,237
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32,673
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57,910
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Total recurring revenues
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153,738
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37,110
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190,848
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119,399
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32,673
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152,072
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Professional services and other revenues
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2,250
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4,913
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7,163
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1,919
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3,795
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5,714
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Total revenues
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$
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155,988
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$
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42,023
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$
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198,011
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$
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121,318
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$
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36,468
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$
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157,786
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(1)
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As noted above, prior period amounts have not been adjusted under the modified retrospective method.
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| Schedule of disaggregation of revenue by geography |
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Three Months Ended
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March 31,
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2018
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2017(2)
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United States
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$
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188,315
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$
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141,962
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International (1)
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9,696
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15,824
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Total
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$
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198,011
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$
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157,786
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(1)
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No foreign country accounted for more than 10% of total revenues.
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(2)
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As noted above, prior period amounts have not been adjusted under the modified retrospective method.
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| Schedule of estimated revenue expected to be recognized in the future |
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Years ending December 31:
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Remainder of 2018
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$
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154,502
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2019
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149,116
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2020
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84,152
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2021
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48,334
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2022
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35,572
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Thereafter
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52,063
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Total
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$
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523,739
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| Schedule of billed receivables, unbilled receivables and deferred revenues |
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Receivables,
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Unbilled receivables,
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which are included in
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which are included in
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Deferred Revenue
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Deferred Revenue
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Fees receivable, net
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Fees receivable, net
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(current)
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(non-current)
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Opening balance as of January 1, 2018
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$
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36,605
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$
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13,229
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$
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20,124
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$
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9,267
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Increase, net
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14,473
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2,307
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7,369
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616
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Ending balance as of March 31, 2018
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$
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51,078
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$
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15,536
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$
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27,493
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$
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9,883
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| Summary of revenues from major customers |
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Three Months Ended
|
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March 31,
|
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2018
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2017
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Fidelity
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16
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%
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16
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%
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