Quarterly report pursuant to Section 13 or 15(d)

Revenue (Tables)

v3.10.0.1
Revenue (Tables)
 9 Months Ended
Sep. 30, 2018
Revenue from Contract with Customer [Abstract]  
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:
 
 
 
 
Cumulative
 
 
 
 
Balance at
 
Catch-up
 
Balance at
 
 
December 31, 2017
 
Adjustments
 
January 1, 2018
Balance Sheets
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Other non-current assets
 
$
17,176

 
$
5,315

 
$
22,491

Liabilities:
 
 
 
 
 


Deferred revenue, current
 
21,246

 
(1,122
)
 
20,124

Deferred revenue, non-current
 
12,047

 
(2,780
)
 
9,267

Equity:
 
 
 
 
 


Accumulated deficit
 
(73,854
)
 
9,217

 
(64,637
)
 
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:
 
 
Three Months Ended September 30, 2018
 
 
 
 
Without Adoption of
 
Effect of Change
 
 
As Reported
 
ASC 606
 
Higher/(Lower)
Statements of Operations
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
Asset-based
 
$
119,097

 
$
122,770

 
$
(3,673
)
Subscription-based
 
76,194

 
76,194

 
—

Total recurring revenues
 
195,291

 
198,964

 
(3,673
)
Professional services and other revenues
 
7,865

 
7,849

 
16

Total revenues
 
203,156


206,813


(3,657
)
Operating expenses:
 
 

 
 

 


Cost of revenues
 
64,964

 
68,637

 
(3,673
)
Compensation and benefits
 
80,424

 
80,955

 
(531
)
Total operating expenses
 
199,761

 
203,965

 
(4,204
)
 
 
 
 
 
 


Income from operations
 
3,395

 
2,848

 
547

 
 
 
 
 
 


Net income
 
2,511

 
1,964

 
547

 
 
 
 
 
 


Net income attributable to Envestnet, Inc.
 
2,954

 
2,407

 
547


 
 
Nine months ended September 30, 2018
 
 
 
 
Without Adoption of
 
Effect of Change
 
 
As Reported
 
ASC 606
 
Higher/(Lower)
Statements of Operations
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
Asset-based
 
$
358,361

 
$
369,169

 
$
(10,808
)
Subscription-based
 
217,668

 
217,668

 
—

Total recurring revenues
 
576,029

 
586,837

 
(10,808
)
Professional services and other revenues
 
26,254

 
26,434

 
(180
)
Total revenues
 
602,283


613,271

 
(10,988
)
Operating expenses:
 
 

 
 

 


Cost of revenues
 
195,525

 
206,333

 
(10,808
)
Compensation and benefits
 
244,174

 
245,152

 
(978
)
Total operating expenses
 
599,621

 
611,407

 
(11,786
)
 
 
 
 
 
 


Income from operations
 
2,662

 
1,864

 
798

 
 
 
 
 
 


Net income
 
4,522

 
3,724

 
798

 
 
 
 
 
 


Net income attributable to Envestnet, Inc.
 
5,532

 
4,734

 
798

 
 
 
At September 30, 2018
 
 
 
 
Without Adoption of
 
Effect of Change
 
 
As Reported
 
ASC 606
 
Higher/(Lower)
Balance Sheets
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Fees receivable, net
 
$
64,635

 
$
63,631

 
$
1,004

Other non-current assets
 
23,893

 
17,600

 
6,293

Liabilities:
 
 
 
 
 


Accounts payable
 
20,577

 
19,573

 
1,004

Deferred revenue, current
 
24,423

 
24,908

 
(485
)
Deferred revenue, non-current
 
7,283

 
10,520

 
(3,237
)
Equity:
 
 
 
 
 

Accumulated deficit
 
(59,105
)
 
(69,120
)
 
10,015

Schedule of disaggregation of revenue by major source
The following table presents the Company’s revenues disaggregated by major source:
 
 
Three Months Ended September 30,
 
 
2018
 
2017
 
 
Envestnet
 
Envestnet | Yodlee
 
Consolidated
 
Envestnet(1)
 
Envestnet | Yodlee(1)
 
Consolidated(1)
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Asset-based
 
$
119,097

 
$
—

 
$
119,097

 
$
106,147

 
$
—

 
$
106,147

Subscription-based
 
36,228

 
39,966

 
76,194

 
27,012

 
35,951

 
62,963

Total recurring revenues
 
155,325

 
39,966

 
195,291

 
133,159

 
35,951

 
169,110

Professional services and other revenues
 
2,142

 
5,723

 
7,865

 
2,789

 
3,715

 
6,504

Total revenues
 
$
157,467

 
$
45,689

 
$
203,156

 
$
135,948

 
$
39,666

 
$
175,614

 
(1)
As noted above, prior period amounts have not been adjusted under the modified retrospective method.
 
 
Nine Months Ended September 30,
 
 
2018
 
2017
 
 
Envestnet
 
Envestnet | Yodlee
 
Consolidated
 
Envestnet(1)
 
Envestnet | Yodlee(1)
 
Consolidated(1)
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Asset-based
 
$
358,361

 
$
—

 
$
358,361

 
$
299,268

 
$
—

 
$
299,268

Subscription-based
 
101,836

 
115,832

 
217,668

 
77,720

 
102,955

 
180,675

Total recurring revenues
 
460,197

 
115,832

 
576,029

 
376,988

 
102,955

 
479,943

Professional services and other revenues
 
10,186

 
16,068

 
26,254

 
9,650

 
11,224

 
20,874

Total revenues
 
$
470,383

 
$
131,900

 
$
602,283

 
$
386,638

 
$
114,179

 
$
500,817

(1)
As noted above, prior period amounts have not been adjusted under the modified retrospective method.
Schedule of disaggregation of revenue by geography
The following table presents the Company’s revenues disaggregated by geography, based on the billing address of the customer:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2018
 
2017(2)
 
2018
 
2017(2)
United States
 
$
195,063

 
$
158,750

 
$
576,616

 
$
452,333

International (1)
 
8,093

 
16,864

 
25,667

 
48,484

Total
 
$
203,156

 
$
175,614

 
$
602,283

 
$
500,817

(1)
No foreign country accounted for more than 10% of total revenues.
(2)
As noted above, prior period amounts have not been adjusted under the modified retrospective method.
Summary of revenues from major customers
One customer accounted for more than 10% of the Company’s total revenues:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2018
 
2017
 
2018
 
2017
Fidelity
 
17
%
 
17
%
 
17
%
 
17
%
Schedule of estimated revenue expected to be recognized in the future
The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2018:
 
Years ending December 31,
 

Remainder of 2018
$
52,301

2019
168,264

2020
101,449

2021
58,544

2022
44,319

Thereafter
56,336

Total
$
481,213

Schedule of billed receivables, unbilled receivables and deferred revenues
The opening and closing balances of the Company’s billed receivables, unbilled receivables, and deferred revenues are as follows:
 
 
Receivables,
 
Unbilled receivables,
 
 
 
 
 
 
which are included in
 
which are included in
 
Deferred Revenue
 
Deferred Revenue
 
 
Fees receivable, net
 
Fees receivable, net
 
(current)
 
(non-current)
Opening balance as of January 1, 2018
 
$
36,605

 
$
13,229

 
$
20,124

 
$
9,267

Increase/(decrease), net
 
11,421

 
3,380

 
4,299

 
(1,984
)
Ending balance as of September 30, 2018
 
$
48,026

 
$
16,609

 
$
24,423

 
$
7,283