Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

v3.19.2
Net Income (Loss) Per Share
 6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
Net Income (Loss) Per Share
 
Basic 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 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 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 due 2019 and Convertible Notes due 2023 will have no effect on diluted earnings per share until the Company’s stock price exceeds the conversion price of $62.88 and $68.31 per share and certain other criteria are met, 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 earnings if they are settled in cash and will have an impact on dilutive earnings per share if they are settled in shares upon conversion.
The following table provides the numerators and denominators used in computing basic and diluted net income (loss) per share attributable to Envestnet, Inc.:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
Basic income (loss) per share calculation:
 
 
 
 
 
 
 
 
Net loss attributable to Envestnet, Inc.
 
$
893

 
$
(5,526
)
 
$
(17,292
)
 
$
2,578

 
 
 
 
 
 
 
 
 
Basic number of weighted-average shares outstanding
 
50,870,296

 
45,247,331

 
49,526,774

 
44,963,735

Basic net income (loss) per share
 
$
0.02

 
$
(0.12
)
 
$
(0.35
)
 
$
0.06

 
 
 
 
 
 
 
 
 
Diluted income (loss) per share calculation:
 
 
 
 
 
 
 
 
Net income (loss) attributable to Envestnet, Inc.
 
$
893

 
$
(5,526
)
 
$
(17,292
)
 
$
2,578

 
 
 
 
 
 
 
 
 
Basic number of weighted-average shares outstanding
 
50,870,296

 
45,247,331

 
49,526,774

 
44,963,735

Effect of dilutive shares:
 
 
 
 
 
 
 
 
Options to purchase common stock
 
1,164,246

 
—

 
—

 
1,360,300

Unvested restricted stock units
 
662,853

 
—

 
—

 
832,170

Convertible notes
 
261,075

 
—

 
—

 
—

Warrants
 
24,218

 
—

 
—

 
—

Diluted number of weighted-average shares outstanding
 
52,982,688

 
45,247,331

 
49,526,774

 
47,156,205

Diluted net income (loss) per share
 
$
0.02

 
$
(0.12
)
 
$
(0.35
)
 
$
0.05


 
Securities that were anti-dilutive and therefore excluded from the computation of diluted loss per share are as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
Options to purchase common stock
 
—

 
2,077,874

 
1,654,241

 
9,045

Unvested restricted stock awards and units
 
—

 
1,880,744

 
1,989,437

 
—

Warrants
 
—

 
—

 
470,000

 
—

Convertible Notes
 
—

 
7,793,826

 
7,793,826

 
7,793,826

Total
 
—


11,752,444


11,907,504

 
7,802,871