falsedesktopENV2020-09-30000162828020015935{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "\tPage\nPART I - FINANCIAL INFORMATION\t\nItem 1. Financial Statements (Unaudited)\t\nCondensed Consolidated Balance Sheets as of September 30 2020 and December 31 2019\t3\nCondensed Consolidated Statements of Operations for the three and nine months ended September 30 2020 and 2019\t4\nCondensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30 2020 and 2019\t5\nCondensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30 2020 and 2019\t6\nCondensed Consolidated Statements of Cash Flows for the nine months ended September 30 2020 and 2019\t8\nNotes to Unaudited Condensed Consolidated Financial Statements\t10\nItem 2. Management's Discussion and Analysis of Financial Condition and Results of Operations\t\nForward-Looking Statements\t29\nOverview\t31\nResults of Operations\t38\nLiquidity and Capital Resources\t54\nItem 3. Quantitative and Qualitative Disclosures About Market Risk\t55\nItem 4. Controls and Procedures\t56\nPART II - OTHER INFORMATION\t\nItem 1. Legal Proceedings\t56\nItem 1A. Risk Factors\t56\nItem 2. Unregistered Sales of Equity Securities and Use of Proceeds\t57\nItem 3. Defaults Upon Senior Securities\t57\nItem 4. Mine Safety Disclosures\t57\nItem 5. Other Information\t57\nItem 6. Exhibits\t57\nIndex to Exhibits\t58\nSignatures\t59\n", "q10k_tbl_1": "\tSeptember 30\tDecember 31\n\t2020\t2019\nAssets\t\t\nCurrent assets:\t\t\nCash and cash equivalents\t362918\t82505\nFees receivable net\t76328\t67815\nPrepaid expenses and other current assets\t41966\t32183\nTotal current assets\t481212\t182503\nProperty and equipment net\t48983\t53756\nInternally developed software net\t87478\t60263\nIntangible assets net\t452583\t505589\nGoodwill\t906697\t879850\nOperating lease right-of-use assets net\t76090\t82796\nOther non-current assets\t48218\t37127\nTotal assets\t2101261\t1801884\nLiabilities and Equity\t\t\nCurrent liabilities:\t\t\nAccrued expenses and other liabilities\t141290\t137944\nAccounts payable\t29609\t17277\nOperating lease liabilities\t13835\t13816\nContingent consideration\t1549\t0\nDeferred revenue\t40037\t34753\nTotal current liabilities\t226320\t203790\nConvertible Notes\t749918\t305513\nRevolving credit facility\t0\t260000\nContingent consideration\t11741\t9045\nDeferred revenue\t2307\t5754\nNon-current operating lease liabilities\t83820\t88365\nDeferred tax liabilities net\t36088\t29481\nOther non-current liabilities\t37700\t32360\nTotal liabilities\t1147894\t934308\nCommitments and contingencies\t\t\nEquity:\t\t\nStockholders' equity:\t\t\nPreferred stock par value $0.005 50000000 shares authorized\t0\t0\nCommon stock par value $0.005 500000000 shares authorized; 67584956 and 66320706 shares issued as of September 30 2020 and December 31 2019 respectively; 53884899 and 52841706 shares outstanding as of September 30 2020 and December 31 2019 respectively\t337\t331\nAdditional paid-in capital\t1150198\t1037141\nAccumulated deficit\t(87155)\t(75664)\nTreasury stock at cost 13700057 and 13479000 shares as of September 30 2020 and December 31 2019 respectively\t(107248)\t(90965)\nAccumulated other comprehensive loss\t(1459)\t(1749)\nTotal stockholders' equity\t954673\t869094\nNon-controlling interest\t(1306)\t(1518)\nTotal equity\t953367\t867576\nTotal liabilities and equity\t2101261\t1801884\n", "q10k_tbl_2": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nRevenues:\t\t\t\t\nAsset-based\t137744\t126591\t394801\t355595\nSubscription-based\t107897\t100583\t317427\t275928\nTotal recurring revenues\t245641\t227174\t712228\t631523\nProfessional services and other revenues\t6918\t8906\t22183\t28668\nTotal revenues\t252559\t236080\t734411\t660191\nOperating expenses:\t\t\t\t\nCost of revenues\t78545\t71870\t222327\t205595\nCompensation and benefits\t94428\t95587\t300423\t285590\nGeneral and administration\t38979\t42016\t118537\t124961\nDepreciation and amortization\t28951\t26735\t85077\t73167\nTotal operating expenses\t240903\t236208\t726364\t689313\nIncome (loss) from operations\t11656\t(128)\t8047\t(29122)\nOther expense net\t(8836)\t(9813)\t(18546)\t(23088)\nIncome (loss) before income tax provision (benefit)\t2820\t(9941)\t(10499)\t(52210)\nIncome tax provision (benefit)\t497\t(6977)\t(161)\t(31591)\nNet income (loss)\t2323\t(2964)\t(10338)\t(20619)\nAdd: Net (income) loss attributable to non-controlling interest\t(413)\t(116)\t(12)\t247\nNet income (loss) attributable to Envestnet Inc.\t1910\t(3080)\t(10350)\t(20372)\nNet income (loss) per share attributable to Envestnet Inc.:\t\t\t\t\nBasic\t0.04\t(0.06)\t(0.19)\t(0.40)\nDiluted\t0.03\t(0.06)\t(0.19)\t(0.40)\nWeighted average common shares outstanding:\t\t\t\t\nBasic\t53800048\t52215469\t53464101\t50414427\nDiluted\t55558983\t52215469\t53464101\t50414427\n", "q10k_tbl_3": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nNet income (loss) attributable to Envestnet Inc.\t1910\t(3080)\t(10350)\t(20372)\nForeign currency translation gains (losses) net of taxes\t1739\t(1458)\t290\t(1124)\nComprehensive income (loss) attributable to Envestnet Inc.\t3649\t(4538)\t(10060)\t(21496)\n", "q10k_tbl_4": "\t\t\t\t\t\tAccumulated\t\t\t\n\tCommon Stock\t\tTreasury Stock\t\tAdditional\tOther\t\tNon-\t\n\t\t\tCommon\t\tPaid-in\tComprehensive\tAccumulated\tcontrolling\tTotal\n\tShares\tAmount\tShares\tAmount\tCapital\tIncome (Loss)\tDeficit\tInterest\tEquity\nBalance December 31 2019\t66320706\t331\t(13479000)\t(90965)\t1037141\t(1749)\t(75664)\t(1518)\t867576\nAdoption of ASC 326\t0\t0\t0\t0\t0\t0\t(1141)\t0\t(1141)\nExercise of stock options\t357974\t2\t0\t0\t3406\t0\t0\t0\t3408\nIssuance of common stock - vesting of restricted stock units\t398881\t2\t0\t0\t0\t0\t0\t0\t2\nStock-based compensation expense\t0\t0\t0\t0\t13765\t0\t0\t0\t13765\nShares withheld to satisfy tax withholdings\t0\t0\t(130164)\t(9199)\t0\t0\t0\t0\t(9199)\nForeign currency translation gain (loss) net of taxes\t0\t0\t0\t0\t0\t(3024)\t0\t0\t(3024)\nNet income (loss)\t0\t0\t0\t0\t0\t0\t(7336)\t146\t(7190)\nBalance March 31 2020\t67077561\t335\t(13609164)\t(100164)\t1054312\t(4773)\t(84141)\t(1372)\t864197\nExercise of stock options\t184475\t1\t0\t0\t3274\t0\t0\t0\t3275\nIssuance of common stock - vesting of restricted stock units\t134207\t1\t0\t0\t0\t0\t0\t0\t1\nStock-based compensation expense\t0\t0\t0\t0\t13006\t0\t0\t0\t13006\nShares withheld to satisfy tax withholdings\t0\t0\t(43697)\t(3617)\t0\t0\t0\t0\t(3617)\nTransfer of non-controlling units\t0\t0\t0\t0\t910\t0\t0\t(139)\t771\nForeign currency translation gain (loss) net of taxes\t0\t0\t0\t0\t0\t1575\t0\t0\t1575\nNet income (loss)\t0\t0\t0\t0\t0\t0\t(4924)\t(547)\t(5471)\nBalance June 30 2020\t67396243\t337\t(13652861)\t(103781)\t1071502\t(3198)\t(89065)\t(2058)\t873737\nExercise of stock options\t44672\t0\t0\t0\t1370\t0\t0\t0\t1370\nIssuance of common stock - vesting of restricted stock units\t144041\t0\t0\t0\t0\t0\t0\t0\t0\nStock-based compensation expense\t0\t0\t0\t0\t15729\t0\t0\t0\t15729\nShares withheld to satisfy tax withholdings\t0\t0\t(47196)\t(3467)\t0\t0\t0\t0\t(3467)\nCapital contribution - non-controlling interest\t0\t0\t0\t0\t(339)\t0\t0\t339\t0\nIssuance of Convertible Notes due 2025 net of offering costs and taxes of $8617\t0\t0\t0\t0\t61936\t0\t0\t0\t61936\nForeign currency translation gain (loss) net of taxes\t0\t0\t0\t0\t0\t1739\t0\t0\t1739\nNet income (loss)\t0\t0\t0\t0\t0\t0\t1910\t413\t2323\nBalance September 30 2020\t67584956\t337\t(13700057)\t(107248)\t1150198\t(1459)\t(87155)\t(1306)\t953367\n", "q10k_tbl_5": "\t\t\t\t\t\tAccumulated\t\t\t\n\tCommon Stock\t\tTreasury Stock\t\tAdditional\tOther\t\tNon-\t\n\t\t\tCommon\t\tPaid-in\tComprehensive\tAccumulated\tcontrolling\tTotal\n\tShares\tAmount\tShares\tAmount\tCapital\tIncome (Loss)\tDeficit\tInterest\tEquity\nBalance December 31 2018\t61238898\t306\t(13117098)\t(67858)\t761128\t(994)\t(58882)\t(1098)\t632602\nExercise of stock options\t200326\t1\t0\t0\t3162\t0\t0\t0\t3163\nIssuance of common stock - vesting of restricted stock units\t479479\t2\t0\t0\t0\t0\t0\t0\t2\nAcquisition of business\t15755\t0\t0\t0\t772\t0\t0\t0\t772\nStock-based compensation expense\t0\t0\t0\t0\t12864\t0\t0\t0\t12864\nShares withheld to satisfy tax withholdings\t0\t0\t(160456)\t(9819)\t0\t0\t0\t0\t(9819)\nForeign currency translation gain (loss)\t0\t0\t0\t0\t0\t222\t0\t0\t222\nNet income (loss)\t0\t0\t0\t0\t0\t0\t(18185)\t(83)\t(18268)\nBalance March 31 2019\t61934458\t309\t(13277554)\t(77677)\t777926\t(772)\t(77067)\t(1181)\t621538\nExercise of stock options\t114109\t1\t0\t0\t1750\t0\t0\t0\t1751\nIssuance of common stock - vesting of restricted stock units\t182390\t1\t0\t0\t0\t0\t0\t0\t1\nAcquisition of business\t3184713\t16\t0\t0\t222468\t0\t0\t0\t222484\nStock-based compensation expense\t0\t0\t0\t0\t13434\t0\t0\t0\t13434\nShares withheld to satisfy tax withholdings\t0\t0\t(67960)\t(6143)\t0\t0\t0\t0\t(6143)\nForeign currency translation gain (loss)\t0\t0\t0\t0\t0\t112\t0\t0\t112\nNet income (loss)\t0\t0\t0\t0\t0\t0\t893\t(280)\t613\nBalance June 30 2019\t65415670\t327\t(13345514)\t(83820)\t1015578\t(660)\t(76174)\t(1461)\t853790\nExercise of stock options\t225414\t1\t0\t0\t2114\t0\t0\t0\t2115\nIssuance of common stock - vesting of restricted stock units\t242789\t1\t0\t0\t0\t0\t0\t0\t1\nStock-based compensation expense\t0\t0\t0\t0\t13169\t0\t0\t0\t13169\nShares withheld to satisfy tax withholdings\t0\t0\t(84538)\t(3735)\t0\t0\t0\t0\t(3735)\nForeign currency translation gain (loss)\t0\t0\t0\t0\t0\t(1458)\t0\t0\t(1458)\nNet income (loss)\t0\t0\t0\t0\t0\t0\t(3080)\t116\t(2964)\nBalance September 30 2019\t65883873\t329\t(13430052)\t(87555)\t1030861\t(2118)\t(79254)\t(1345)\t860918\n", "q10k_tbl_6": "\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\nOPERATING ACTIVITIES:\t\t\nNet loss\t(10338)\t(20619)\nAdjustments to reconcile net loss to net cash provided by operating activities:\t\t\nDepreciation and amortization\t85077\t73167\nProvision for doubtful accounts\t2323\t1243\nDeferred income taxes\t79\t(37626)\nNon-cash compensation expense\t45721\t43167\nNon-cash interest expense\t12255\t17195\nAccretion on contingent consideration and purchase liability\t1308\t1240\nPayments of contingent consideration\t0\t(578)\nFair market value adjustment to contingent consideration liability\t(2056)\t0\nGain on acquisition of equity method investment\t(4230)\t0\nLoss allocation from equity method investments\t4280\t1507\nImpairment of right of use assets\t1426\t0\nOther\t556\t0\nChanges in operating assets and liabilities net of acquisitions:\t\t\nFees receivable net\t(10825)\t6164\nPrepaid expenses and other current assets\t(11139)\t(4784)\nOther non-current assets\t(1807)\t(6113)\nAccrued expenses and other liabilities\t3393\t(9732)\nAccounts payable\t12084\t(6859)\nDeferred revenue\t1488\t1231\nOther non-current liabilities\t2084\t3242\nNet cash provided by operating activities\t131679\t61845\nINVESTING ACTIVITIES:\t\t\nPurchases of property and equipment\t(8824)\t(16098)\nCapitalization of internally developed software\t(40257)\t(23649)\nInvestments in private companies\t(13875)\t(3200)\nAcquisitions of businesses net of cash acquired\t(20257)\t(321571)\nNet cash used in investing activities\t(83213)\t(364518)\n", "q10k_tbl_7": "\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\nFINANCING ACTIVITIES:\t\t\nProceeds from issuance of Convertible Notes due 2025\t517500\t0\nConvertible Notes due 2025 issuance costs\t(14540)\t0\nProceeds from borrowings on revolving credit facility\t45000\t175000\nPayments on revolving credit facility\t(305000)\t(75000)\nRevolving credit facility issuance costs\t0\t(2103)\nPayments of deferred consideration on prior acquisitions\t(1879)\t0\nPayments of contingent consideration\t0\t(171)\nProceeds from exercise of stock options\t8053\t7029\nTaxes paid in lieu of shares issued for stock-based compensation\t(16283)\t(19697)\nIssuance of restricted stock units\t3\t4\nNet cash provided by financing activities\t232854\t85062\nEFFECT OF EXCHANGE RATE CHANGES ON CASH\t(1009)\t(178)\nINCREASE (DECREASE) IN CASH CASH EQUIVALENTS AND RESTRICTED CASH\t280311\t(217789)\nCASH CASH EQUIVALENTS AND RESTRICTED CASH BEGINNING OF PERIOD\t82755\t289671\nCASH CASH EQUIVALENTS AND RESTRICTED CASH END OF PERIOD (See Note 2)\t363066\t71882\nSupplemental disclosure of cash flow information - net cash paid during the period for income taxes\t5349\t7826\nSupplemental disclosure of cash flow information - cash paid during the period for interest\t9652\t7813\nSupplemental disclosure of non-cash operating investing and financing activities:\t\t\nCommon stock issued in acquisition of business\t0\t222484\nContingent consideration issued in acquisition of businesses\t5239\t15880\nAccrued payment to fund deferred compensation liability included in accounts payable\t0\t0\nPurchase liabilities included in other non-current liabilities\t0\t5468\nPurchase liabilities included in accrued expenses and other liabilities\t632\t0\nPurchase of fixed assets included in accounts payable and accrued expenses and other liabilities\t1104\t2262\nMembership interest liabilities included in other non-current liabilities\t3221\t3700\nCommon stock issued to settle purchase liability\t0\t772\nLeasehold improvements funded by lease incentive\t1766\t0\nTransfer of non-controlling units\t771\t0\n", "q10k_tbl_8": "\tSeptember 30\tSeptember 30\n\t2020\t2019\nCash and cash equivalents\t362918\t71632\nRestricted cash included in prepaid expenses and other current assets\t0\t82\nRestricted cash included in other non-current assets\t148\t168\nTotal cash cash equivalents and restricted cash\t363066\t71882\n", "q10k_tbl_9": "\tNine Months Ended September 30\n\t2019\nRevenues\t679355\nNet loss attributable to Envestnet Inc.\t(22754)\nNet loss per share attributable to Envestnet Inc.:\t\nBasic\t(0.44)\nDiluted\t(0.44)\n", "q10k_tbl_10": "\tSeptember 30\tDecember 31\n\t2020\t2019\nPrepaid technology\t9882\t8178\nIncome tax prepayments and receivables\t7917\t0\nAdvance payroll taxes and benefits\t5967\t5446\nNon-income tax receivables\t5142\t5555\nPrepaid insurance\t2179\t1919\nPrepaid outside information services\t2121\t2209\nOther\t8758\t8876\nTotal prepaid expenses and other current assets\t41966\t32183\n", "q10k_tbl_11": "\t\tSeptember 30\tDecember 31\n\tEstimated Useful Life\t2020\t2019\nCost:\t\t\t\nComputer equipment and software\t3 years\t72572\t72190\nLeasehold improvements\tShorter of the lease term or useful life of the asset\t37840\t34645\nOffice furniture and fixtures\t3-7 years\t11036\t10832\nOffice equipment and other\t3-5 years\t7016\t6850\nBuilding and building improvements\t7-39 years\t2669\t2647\nLand\tNot applicable\t940\t940\n\t\t132073\t128104\nLess: accumulated depreciation and amortization\t\t(83090)\t(74348)\nTotal property and equipment net\t\t48983\t53756\n", "q10k_tbl_12": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nDepreciation and amortization expense\t5341\t4693\t16021\t15810\n", "q10k_tbl_13": "\t\tSeptember 30\tDecember 31\n\tEstimated Useful Life\t2020\t2019\nInternally developed software\t5 years\t144968\t104703\nLess: accumulated amortization\t\t(57490)\t(44440)\nInternally developed software net\t\t87478\t60263\n", "q10k_tbl_14": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nAmortization expense\t5100\t2800\t13042\t8533\n", "q10k_tbl_15": "\tEnvestnet Wealth Solutions\tEnvestnet Data & Analytics\tTotal\nBalance at December 31 2019\t583247\t296603\t879850\nAcquisitions\t20173\t7017\t27190\nForeign currency and other\t(70)\t(273)\t(343)\nBalance at September 30 2020\t603350\t303347\t906697\n", "q10k_tbl_16": "\tSeptember 30 2020\t\t\tDecember 31 2019\t\t\n\tGross\t\tNet\tGross\t\tNet\n\tCarrying\tAccumulated\tCarrying\tCarrying\tAccumulated\tCarrying\n\tAmount\tAmortization\tAmount\tAmount\tAmortization\tAmount\nCustomer lists\t591520\t(186296)\t405224\t591520\t(148517)\t443003\nProprietary technologies\t89914\t(57897)\t32017\t87714\t(44165)\t43549\nTrade names\t33700\t(18358)\t15342\t33700\t(14663)\t19037\nTotal intangible assets\t715134\t(262551)\t452583\t712934\t(207345)\t505589\n", "q10k_tbl_17": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nAmortization expense\t18510\t19242\t56014\t48824\n", "q10k_tbl_18": "\tSeptember 30\tDecember 31\n\t2020\t2019\nAccrued compensation and related taxes\t55286\t53627\nAccrued investment manager fees\t54127\t48720\nNon-income tax payables\t8816\t11040\nAccrued professional services\t5696\t3833\nAccrued technology\t4020\t3042\nAccrued transaction costs\t2970\t2482\nAccrued charitable contribution\t0\t5020\nOther accrued expenses\t10375\t10180\nTotal accrued expenses and other liabilities\t141290\t137944\n", "q10k_tbl_19": "\tSeptember 30\tDecember 31\n\t2020\t2019\nRevolving credit facility balance\t0\t260000\nConvertible Notes due 2023\t345000\t345000\nUnaccreted discount on Convertible Notes due 2023\t(26444)\t(33491)\nUnamortized issuance costs on Convertible Notes due 2023\t(4733)\t(5996)\nConvertible Notes due 2023 carrying value(1)\t313823\t305513\nConvertible Notes due 2025\t517500\t0\nUnaccreted discount on Convertible Notes due 2025\t(69104)\t0\nUnamortized issuance costs on Convertible Notes due 2025\t(12301)\t0\nConvertible Notes due 2025 carrying value(2)\t436095\t0\n", "q10k_tbl_20": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nAccretion of debt discount\t3816\t3846\t8496\t11388\nInterest on revolving credit facility\t1259\t1529\t5786\t2725\nCoupon interest\t1951\t2264\t4962\t6792\nAmortization of issuance costs\t922\t1160\t2186\t2880\nUndrawn and other fees\t191\t187\t477\t560\nTotal interest expense\t8139\t8986\t21907\t24345\n", "q10k_tbl_21": "\tSeptember 30 2020\t\t\t\n\tFair Value\tLevel I\tLevel II\tLevel III\nAssets:\t\t\t\t\nMoney market funds\t319489\t319489\t0\t0\nAssets to fund deferred compensation liability\t9391\t0\t0\t9391\nTotal assets\t328880\t319489\t0\t9391\nLiabilities:\t\t\t\t\nContingent consideration\t13290\t0\t0\t13290\nDeferred compensation liability\t8178\t8178\t0\t0\nTotal liabilities\t21468\t8178\t0\t13290\n", "q10k_tbl_22": "\tDecember 31 2019\t\t\t\n\tFair Value\tLevel I\tLevel II\tLevel III\nAssets:\t\t\t\t\nMoney market funds\t37730\t37730\t0\t0\nAssets to fund deferred compensation liability\t8390\t0\t0\t8390\nTotal assets\t46120\t37730\t0\t8390\nLiabilities:\t\t\t\t\nContingent consideration\t9045\t0\t0\t9045\nDeferred compensation liability\t8208\t8208\t0\t0\nTotal liabilities\t17253\t8208\t0\t9045\n", "q10k_tbl_23": "\tFair Value of Contingent Consideration Liabilities\nBalance at December 31 2019\t9045\nPrivate technology company acquisition\t5239\nFair market value adjustment on contingent consideration liability\t(2056)\nAccretion on contingent consideration\t1062\nBalance at September 30 2020\t13290\n", "q10k_tbl_24": "\tFair Value of Assets to Fund Deferred Compensation Liability\nBalance at December 31 2019\t8390\nContributions\t1060\nFair value adjustments\t(59)\nBalance at September 30 2020\t9391\n", "q10k_tbl_25": "\tThree Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n\tEnvestnet Wealth Solutions\tEnvestnet Data & Analytics\tConsolidated\tEnvestnet Wealth Solutions\tEnvestnet Data & Analytics\tConsolidated\nRevenues:\t\t\t\t\t\t\nAsset-based\t137744\t0\t137744\t126591\t0\t126591\nSubscription-based\t62783\t45114\t107897\t57353\t43230\t100583\nTotal recurring revenues\t200527\t45114\t245641\t183944\t43230\t227174\nProfessional services and other revenues\t3767\t3151\t6918\t4280\t4626\t8906\nTotal revenues\t204294\t48265\t252559\t188224\t47856\t236080\n", "q10k_tbl_26": "\tNine Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n\tEnvestnet Wealth Solutions\tEnvestnet Data & Analytics\tConsolidated\tEnvestnet Wealth Solutions\tEnvestnet Data & Analytics\tConsolidated\nRevenues:\t\t\t\t\t\t\nAsset-based\t394801\t0\t394801\t355595\t0\t355595\nSubscription-based\t184516\t132911\t317427\t148457\t127471\t275928\nTotal recurring revenues\t579317\t132911\t712228\t504052\t127471\t631523\nProfessional services and other revenues\t11082\t11101\t22183\t13767\t14901\t28668\nTotal revenues\t590399\t144012\t734411\t517819\t142372\t660191\n", "q10k_tbl_27": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nFidelity\t15%\t15%\t15%\t15%\n", "q10k_tbl_28": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nUnited States\t247692\t228427\t718246\t638008\nInternational (1)\t4867\t7653\t16165\t22183\nTotal revenues\t252559\t236080\t734411\t660191\n", "q10k_tbl_29": "Years ending December 31\t\nRemainder of 2020\t62167\n2021\t198655\n2022\t141388\n2023\t74195\n2024\t39180\nThereafter\t31013\nTotal\t546598\n", "q10k_tbl_30": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nAsset-based\t71133\t64339\t201600\t178474\nSubscription-based\t7291\t7278\t20375\t21652\nProfessional services and other\t121\t253\t352\t5469\nTotal cost of revenues\t78545\t71870\t222327\t205595\n", "q10k_tbl_31": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nStock-based compensation expense\t15729\t13169\t42500\t39467\nTax effect on stock-based compensation expense\t(4011)\t(3438)\t(10837)\t(10305)\nNet effect on income\t11718\t9731\t31663\t29162\n", "q10k_tbl_32": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nGrant date fair value of options\t0\t0\t0\t21.55\nVolatility\t-%\t-%\t-%\t40.0%\nRisk-free interest rate\t-%\t-%\t-%\t2.5%\nDividend yield\t-%\t-%\t-%\t-%\nExpected term (in years)\t0.0\t0.0\t0.0\t6.5\n", "q10k_tbl_33": "\t\t\tWeighted-Average\t\n\t\tWeighted-\tRemaining\t\n\t\tAverage\tContractual Life\tAggregate\n\tOptions\tExercise Price\t(Years)\tIntrinsic Value\nOutstanding as of December 31 2019\t1150586\t25.66\t3.4\t50590\nGranted\t0\t0\t\t\nExercised\t(587121)\t18.02\t\t\nForfeited\t(7213)\t48.70\t\t\nOutstanding as of September 30 2020\t556252\t33.44\t3.9\t24324\nOptions exercisable\t516073\t32.22\t3.5\t23191\n", "q10k_tbl_34": "\tRSUs\t\tPSUs\t\n\tNumber of Shares\tWeighted- Average Grant Date Fair Value per Share\tNumber of Shares\tWeighted- Average Grant Date Fair Value per Share\nOutstanding as of December 31 2019\t1318870\t58.88\t254118\t67.96\nGranted\t956494\t74.55\t67793\t81.42\nVested\t(677129)\t57.51\t0\t0\nForfeited\t(120421)\t61.04\t(33010)\t64.70\nOutstanding as of September 30 2020\t1477814\t69.48\t288901\t71.49\n", "q10k_tbl_35": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nIncome (loss) before income tax provision (benefit)\t2820\t(9941)\t(10499)\t(52210)\nIncome tax provision (benefit)\t497\t(6977)\t(161)\t(31591)\nEffective tax rate\t17.6%\t70.2%\t1.5%\t60.5%\n", "q10k_tbl_36": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nBasic net income (loss) per share calculation:\t\t\t\t\nNet income (loss) attributable to Envestnet Inc.\t1910\t(3080)\t(10350)\t(20372)\nBasic number of weighted-average shares outstanding\t53800048\t52215469\t53464101\t50414427\nBasic net income (loss) per share\t0.04\t(0.06)\t(0.19)\t(0.40)\nDiluted net income (loss) per share calculation:\t\t\t\t\nNet income (loss) attributable to Envestnet Inc.\t1910\t(3080)\t(10350)\t(20372)\nBasic number of weighted-average shares outstanding\t53800048\t52215469\t53464101\t50414427\nEffect of dilutive shares:\t\t\t\t\nOptions to purchase common stock\t331728\t0\t0\t0\nUnvested restricted stock units\t610442\t0\t0\t0\nConvertible notes\t730267\t0\t0\t0\nWarrants\t86498\t0\t0\t0\nDiluted number of weighted-average shares outstanding\t55558983\t52215469\t53464101\t50414427\nDiluted net income (loss) per share\t0.03\t(0.06)\t(0.19)\t(0.40)\n", "q10k_tbl_37": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nOptions to purchase common stock\t0\t1394009\t556252\t1394009\nUnvested RSUs and PSUs\t0\t1787608\t1766715\t1787608\nWarrants\t0\t470000\t470000\t470000\nConvertible Notes\t4848044\t7793826\t9898734\t7793826\nTotal anti-dilutive securities\t4848044\t11445443\t12691701\t11445443\n", "q10k_tbl_38": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nEnvestnet Wealth Solutions\t29683\t17746\t60890\t46969\nEnvestnet Data & Analytics\t(1238)\t(7112)\t(6764)\t(24000)\nNonsegment operating expenses\t(16789)\t(10762)\t(46079)\t(52091)\nIncome (loss) from operations\t11656\t(128)\t8047\t(29122)\nOther expense net\t(8836)\t(9813)\t(18546)\t(23088)\nConsolidated income (loss) before income tax provision (benefit)\t2820\t(9941)\t(10499)\t(52210)\nIncome tax provision (benefit)\t497\t(6977)\t(161)\t(31591)\nConsolidated net income (loss)\t2323\t(2964)\t(10338)\t(20619)\nAdd: Net (income) loss attributable to non-controlling interest\t(413)\t(116)\t(12)\t247\nConsolidated net income (loss) attributable to Envestnet Inc.\t1910\t(3080)\t(10350)\t(20372)\n", "q10k_tbl_39": "\tSeptember 30\tDecember 31\n\t2020\t2019\nSegment assets:\t\t\nEnvestnet Wealth Solutions\t1599797\t1297891\nEnvestnet Data & Analytics\t501464\t503993\nConsolidated assets\t2101261\t1801884\n", "q10k_tbl_40": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nSegment depreciation and amortization:\t\t\t\t\nEnvestnet Wealth Solutions\t20406\t18414\t59907\t46057\nEnvestnet Data & Analytics\t8545\t8321\t25170\t27110\nConsolidated depreciation and amortization\t28951\t26735\t85077\t73167\n", "q10k_tbl_41": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nSegment capital expenditures:\t\t\t\t\nEnvestnet Wealth Solutions\t12676\t12926\t34066\t33791\nEnvestnet Data & Analytics\t6373\t2423\t15015\t5956\nConsolidated capital expenditures\t19049\t15349\t49081\t39747\n", "q10k_tbl_42": "\tSeptember 30\tDecember 31\n\t2020\t2019\nUnited States\t131884\t108992\nIndia\t3549\t3988\nOther\t1028\t1039\nTotal long-lived assets net\t136461\t114019\n", "q10k_tbl_43": "\tAs of\t\t\t\t\n\tSeptember 30\tDecember 31\tMarch 31\tJune 30\tSeptember 30\n\t2019\t2019\t2020\t2020\t2020\n\t(in millions except accounts and advisors data)\t\t\t\t\nPlatform Assets\t\t\t\t\t\nAssets under Management (\"AUM\")\t188739\t207083\t185065\t215994\t228905\nAssets under Administration (\"AUA\")\t316742\t343505\t312472\t344957\t375860\nTotal AUM/A\t505481\t550588\t497537\t560951\t604765\nSubscription\t2947582\t3205281\t2875394\t3247400\t3498353\nTotal Platform Assets\t3453063\t3755869\t3372931\t3808351\t4103118\nPlatform Accounts\t\t\t\t\t\nAUM\t934811\t935039\t970896\t1007386\t1018817\nAUA\t1136430\t1193882\t1254856\t1252247\t1318730\nTotal AUM/A\t2071241\t2128921\t2225752\t2259633\t2337547\nSubscription\t9692714\t9793175\t10090172\t10003156\t10639399\nTotal Platform Accounts\t11763955\t11922096\t12315924\t12262789\t12976946\nAdvisors\t\t\t\t\t\nAUM/A\t39735\t40563\t40971\t41206\t41450\nSubscription\t60319\t61180\t62077\t62404\t63862\nTotal Advisors\t100054\t101743\t103048\t103610\t105312\n", "q10k_tbl_44": "\tAsset Rollforward - Three Months Ended September 30 2020\t\t\t\t\n\tAs of\tGross\t\tNet\tMarket\t\t\t\tAs of\t\t\n\t6/30/2020\tSales\tRedemptions\tFlows\tImpact\t\t\t\t9/30/2020\t\t\n\t(in millions except account data)\t\t\t\t\nAUM\t215994\t12526\t(10151)\t2375\t10536\t\t\t\t228905\t\t\nAUA\t344957\t33944\t(19618)\t14326\t16577\t\t\t\t375860\t\t\nTotal AUM/A\t560951\t46470\t(29769)\t16701\t27113\t\t\t\t604765\t\t\nFee-Based Accounts\t2259633\t\t\t77914\t\t\t\t\t2337547\t\t\n", "q10k_tbl_45": "\tAsset Rollforward - Nine Months Ended September 30 2020\t\t\t\t\t\t\n\tAs of\tGross\t\tNet\tMarket\tReclass to\tAs of\n\t12/31/2019\tSales\tRedemptions\tFlows\tImpact\tSubscription\t6/30/2020\n\t(in millions except account data)\t\t\t\t\t\t\nAUM\t207083\t50356\t(31111)\t19245\t2577\t0\t228905\nAUA\t343505\t90403\t(61520)\t28883\t5417\t(1945)\t375860\nTotal AUM/A\t550588\t140759\t(92631)\t48128\t7994\t(1945)\t604765\nFee-Based Accounts\t2128921\t\t\t229468\t\t(20842)\t2337547\n", "q10k_tbl_46": "\tThree Months Ended\t\t\tNine Months Ended\t\t\n\tSeptember 30\t\tPercent\tSeptember 30\t\tPercent\n\t2020\t2019\tChange\t2020\t2019\tChange\n\t(in thousands)\t\t\t(in thousands)\t\t\nRevenues:\t\t\t\t\t\t\nAsset-based\t137744\t126591\t9%\t394801\t355595\t11%\nSubscription-based\t107897\t100583\t7%\t317427\t275928\t15%\nTotal recurring revenues\t245641\t227174\t8%\t712228\t631523\t13%\nProfessional services and other revenues\t6918\t8906\t(22)%\t22183\t28668\t(23)%\nTotal revenues\t252559\t236080\t7%\t734411\t660191\t11%\nOperating expenses:\t\t\t\t\t\t\nCost of revenues\t78545\t71870\t9%\t222327\t205595\t8%\nCompensation and benefits\t94428\t95587\t(1)%\t300423\t285590\t5%\nGeneral and administration\t38979\t42016\t(7)%\t118537\t124961\t(5)%\nDepreciation and amortization\t28951\t26735\t8%\t85077\t73167\t16%\nTotal operating expenses\t240903\t236208\t2%\t726364\t689313\t5%\nIncome (loss) from operations\t11656\t(128)\t*\t8047\t(29122)\t(128)%\nOther expense net\t(8836)\t(9813)\t(10)%\t(18546)\t(23088)\t(20)%\nIncome (loss) before income tax provision (benefit)\t2820\t(9941)\t(128)%\t(10499)\t(52210)\t(80)%\nIncome tax provision (benefit)\t497\t(6977)\t(107)%\t(161)\t(31591)\t(99)%\nNet income (loss)\t2323\t(2964)\t(178)%\t(10338)\t(20619)\t(50)%\nAdd: Net (income) loss attributable to non-controlling interest\t(413)\t(116)\t*\t(12)\t247\t(105)%\nNet income (loss) attributable to Envestnet Inc.\t1910\t(3080)\t(162)%\t(10350)\t(20372)\t(49)%\n", "q10k_tbl_47": "\tThree Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\nIncome (loss) before income tax provision (benefit)\t2820\t(9941)\nIncome tax provision (benefit)\t497\t(6977)\nEffective tax rate\t17.6%\t70.2%\n", "q10k_tbl_48": "\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\nIncome (loss) before income tax provision (benefit)\t(10499)\t(52210)\nIncome tax provision (benefit)\t(161)\t(31591)\nEffective tax rate\t1.5%\t60.5%\n", "q10k_tbl_49": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nEnvestnet Wealth Solutions\t29683\t17746\t60890\t46969\nEnvestnet Data & Analytics\t(1238)\t(7112)\t(6764)\t(24000)\nNonsegment operating expenses\t(16789)\t(10762)\t(46079)\t(52091)\nIncome (loss) from operations\t11656\t(128)\t8047\t(29122)\nOther expense net\t(8836)\t(9813)\t(18546)\t(23088)\nConsolidated income (loss) before income tax provision (benefit)\t2820\t(9941)\t(10499)\t(52210)\nIncome tax provision (benefit)\t497\t(6977)\t(161)\t(31591)\nConsolidated net income (loss)\t2323\t(2964)\t(10338)\t(20619)\nAdd: Net (income) loss attributable to non-controlling interest\t(413)\t(116)\t(12)\t247\nConsolidated net income (loss) attributable to Envestnet Inc.\t1910\t(3080)\t(10350)\t(20372)\n", "q10k_tbl_50": "\tThree Months Ended\t\t\tNine Months Ended\t\t\n\tSeptember 30\t\tPercent\tSeptember 30\t\tPercent\n\t2020\t2019\tChange\t2020\t2019\tChange\n\t(in thousands)\t\t\t(in thousands)\t\t\nRevenues:\t\t\t\t\t\t\nAsset-based\t137744\t126591\t9%\t394801\t355595\t11%\nSubscription-based\t62783\t57353\t9%\t184516\t148457\t24%\nTotal recurring revenues\t200527\t183944\t9%\t579317\t504052\t15%\nProfessional services and other revenues\t3767\t4280\t(12)%\t11082\t13767\t(20)%\nTotal revenues\t204294\t188224\t9%\t590399\t517819\t14%\nOperating expenses:\t\t\t\t\t\t\nCost of revenues\t72435\t65752\t10%\t205338\t187857\t9%\nCompensation and benefits\t59522\t60836\t(2)%\t194906\t165610\t18%\nGeneral and administration\t22248\t25476\t(13)%\t69358\t71326\t(3)%\nDepreciation and amortization\t20406\t18414\t11%\t59907\t46057\t30%\nTotal operating expenses\t174611\t170478\t2%\t529509\t470850\t12%\nIncome from operations\t29683\t17746\t67%\t60890\t46969\t30%\n", "q10k_tbl_51": "\tThree Months Ended\t\t\tNine Months Ended\t\t\n\tSeptember 30\t\tPercent\tSeptember 30\t\tPercent\n\t2020\t2019\tChange\t2020\t2019\tChange\n\t(in thousands)\t\t\t(in thousands)\t\t\nRevenues:\t\t\t\t\t\t\nSubscription-based\t45114\t43230\t4%\t132911\t127471\t4%\nProfessional services and other revenues\t3151\t4626\t(32)%\t11101\t14901\t(26)%\nTotal revenues\t48265\t47856\t1%\t144012\t142372\t1%\nOperating expenses:\t\t\t\t\t\t\nCost of revenues\t6110\t6118\t-%\t16989\t17738\t(4)%\nCompensation and benefits\t26540\t28956\t(8)%\t82455\t91913\t(10)%\nGeneral and administration\t8308\t11573\t(28)%\t26162\t29611\t(12)%\nDepreciation and amortization\t8545\t8321\t3%\t25170\t27110\t(7)%\nTotal operating expenses\t49503\t54968\t(10)%\t150776\t166372\t(9)%\nLoss from operations\t(1238)\t(7112)\t(83)%\t(6764)\t(24000)\t(72)%\n", "q10k_tbl_52": "\tThree Months Ended\t\t\tNine Months Ended\t\t\n\tSeptember 30\t\tPercent\tSeptember 30\t\tPercent\n\t2020\t2019\tChange\t2020\t2019\tChange\n\t(in thousands)\t\t\t(in thousands)\t\t\nOperating expenses:\t\t\t\t\t\t\nCompensation and benefits\t8366\t5795\t44%\t23062\t28067\t(18)%\nGeneral and administration\t8423\t4967\t70%\t23017\t24024\t(4)%\nNonsegment operating expenses\t16789\t10762\t56%\t46079\t52091\t(12)%\n", "q10k_tbl_53": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\n\t(in thousands)\t\t(in thousands)\t\nTotal revenues\t252559\t236080\t734411\t660191\nDeferred revenue fair value adjustment\t91\t3250\t607\t6670\nAdjusted revenues\t252650\t239330\t735018\t666861\nLess: Asset-based cost of revenues\t(71133)\t(64339)\t(201600)\t(178474)\nAdjusted net revenues\t181517\t174991\t533418\t488387\n", "q10k_tbl_54": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\n\t(in thousands)\t\t(in thousands)\t\nNet income (loss)\t2323\t(2964)\t(10338)\t(20619)\nAdd (deduct):\t\t\t\t\nDeferred revenue fair value adjustment\t91\t3250\t607\t6670\nInterest income\t(262)\t(448)\t(850)\t(2859)\nInterest expense\t8139\t8986\t21907\t24345\nAccretion on contingent consideration and purchase liability\t398\t498\t1308\t1240\nIncome tax provision (benefit)\t497\t(6977)\t(161)\t(31591)\nDepreciation and amortization\t28951\t26735\t85077\t73167\nNon-cash compensation expense\t15852\t15389\t43197\t43241\nRestructuring charges and transaction costs\t4993\t4151\t14461\t24725\nSeverance\t2715\t2387\t18566\t8147\nFair market value adjustment on contingent consideration liability\t(74)\t0\t(2056)\t0\nLitigation and regulatory related expenses\t1809\t2065\t6029\t2065\nForeign currency\t(37)\t363\t(68)\t208\nNon-income tax expense adjustment\t1795\t362\t1341\t1480\nGain on acquisition of equity method investment\t0\t0\t(4230)\t0\nLoss allocation from equity method investments\t994\t957\t4280\t1507\n(Income) loss attributable to non-controlling interest\t(603)\t(210)\t(1103)\t31\nAdjusted EBITDA\t67581\t54544\t177967\t131757\n", "q10k_tbl_55": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\n\t(in thousands)\t\t(in thousands)\t\nNet income (loss)\t2323\t(2964)\t(10338)\t(20619)\nIncome tax provision (benefit) (1)\t497\t(6977)\t(161)\t(31591)\nLoss before income tax provision (benefit)\t2820\t(9941)\t(10499)\t(52210)\nAdd (deduct):\t\t\t\t\nDeferred revenue fair value adjustment\t91\t3250\t607\t6670\nAccretion on contingent consideration and purchase liability\t398\t498\t1308\t1240\nNon-cash interest expense\t4738\t5006\t10682\t14268\nNon-cash compensation expense\t15852\t15389\t43197\t43241\nRestructuring charges and transaction costs\t4993\t4151\t14461\t24725\nSeverance\t2715\t2387\t18566\t8147\nFair market value adjustment on contingent consideration liability\t(74)\t0\t(2056)\t0\nAmortization of acquired intangibles\t18510\t19242\t56014\t51048\nLitigation and regulatory related expenses\t1809\t2065\t6029\t2065\nForeign currency\t(37)\t363\t(68)\t208\nNon-income tax expense adjustment\t1795\t362\t1341\t1480\nGain on acquisition of equity method investment\t0\t0\t(4230)\t0\nLoss allocation from equity method investments\t994\t957\t4280\t1507\n(Income) loss attributable to non-controlling interest\t(603)\t(210)\t(1103)\t31\nAdjusted net income before income tax effect\t54001\t43519\t138529\t102420\nIncome tax effect (2)\t(13772)\t(11097)\t(35325)\t(26117)\nAdjusted net income\t40229\t32422\t103204\t76303\nBasic number of weighted-average shares outstanding\t53800048\t52215469\t53464101\t50414427\nEffect of dilutive shares:\t\t\t\t\nOptions to purchase common stock\t331728\t953184\t458232\t1107995\nUnvested restricted stock units\t610442\t548057\t548858\t662364\nConvertible notes\t730267\t9875\t280375\t11637\nWarrants\t86498\t0\t46562\t0\nDiluted number of weighted-average shares outstanding\t55558983\t53726585\t54798128\t52196423\nAdjusted net income per share - diluted\t0.72\t0.60\t1.88\t1.46\n", "q10k_tbl_56": "\tThree Months Ended September 30 2020\t\t\t\n\tEnvestnet Wealth Solutions\tEnvestnet Data & Analytics\tNonsegment\tTotal\n\t(in thousands)\t\t\t\nRevenues\t204294\t48265\t0\t252559\nDeferred revenue fair value adjustment\t91\t0\t0\t91\nAdjusted revenues\t204385\t48265\t0\t252650\nLess: Asset-based cost of revenues\t(71133)\t0\t0\t(71133)\nAdjusted net revenues\t133252\t48265\t0\t181517\nIncome (loss) from operations\t29683\t(1238)\t(16789)\t11656\nAdd:\t\t\t\t\nDeferred revenue fair value adjustment\t91\t0\t0\t91\nAccretion on contingent consideration and purchase liability\t341\t57\t0\t398\nDepreciation and amortization\t20406\t8545\t0\t28951\nNon-cash compensation expense\t8685\t4458\t2709\t15852\nRestructuring charges and transaction costs\t944\t33\t4016\t4993\nNon-income tax expense adjustment\t1860\t(65)\t0\t1795\nSeverance\t2154\t495\t66\t2715\nFair market value adjustment on contingent consideration liability\t0\t(74)\t0\t(74)\nLitigation and regulatory related expenses\t0\t1809\t0\t1809\nIncome attributable to non-controlling interest\t(603)\t0\t0\t(603)\nOther\t(2)\t0\t0\t(2)\nAdjusted EBITDA\t63559\t14020\t(9998)\t67581\n", "q10k_tbl_57": "\tThree Months Ended September 30 2019\t\t\t\n\tEnvestnet Wealth Solutions\tEnvestnet Data & Analytics\tNonsegment\tTotal\n\t(in thousands)\t\t\t\nRevenues\t188224\t47856\t0\t236080\nDeferred revenue fair value adjustment\t3250\t0\t0\t3250\nAdjusted revenues\t191474\t47856\t0\t239330\nLess: Asset-based cost of revenues\t(64339)\t0\t0\t(64339)\nAdjusted net revenues\t127135\t47856\t0\t174991\nIncome (loss) from operations\t17746\t(7112)\t(10762)\t(128)\nAdd:\t\t\t\t\nDeferred revenue fair value adjustment\t3250\t0\t0\t3250\nAccretion on contingent consideration and purchase liability\t498\t0\t0\t498\nDepreciation and amortization\t18414\t8321\t0\t26735\nNon-cash compensation expense\t9317\t3844\t2228\t15389\nRestructuring charges and transaction costs\t733\t624\t2794\t4151\nNon-income tax expense adjustment\t299\t63\t0\t362\nSeverance\t1076\t1218\t93\t2387\nLitigation and regulatory related expenses\t0\t2065\t0\t2065\n(Income) loss attributable to non-controlling interest\t(210)\t0\t0\t(210)\nOther\t46\t(1)\t0\t45\nAdjusted EBITDA\t51169\t9022\t(5647)\t54544\n", "q10k_tbl_58": "\tNine Months Ended September 30 2020\t\t\t\n\tEnvestnet Wealth Solutions\tEnvestnet Data & Analytics\tNonsegment\tTotal\n\t(in thousands)\t\t\t\nRevenues\t590399\t144012\t0\t734411\nDeferred revenue fair value adjustment\t607\t0\t0\t607\nAdjusted revenues\t591006\t144012\t0\t735018\nLess: Asset-based cost of revenues\t(201600)\t0\t0\t(201600)\nAdjusted net revenues\t389406\t144012\t0\t533418\nIncome (loss) from operations\t60890\t(6764)\t(46079)\t8047\nAdd:\t\t\t\t\nDeferred revenue fair value adjustment\t607\t0\t0\t607\nAccretion on contingent consideration and purchase liability\t1087\t221\t0\t1308\nDepreciation and amortization\t59907\t25170\t0\t85077\nNon-cash compensation expense\t27437\t11665\t6619\t45721\nRestructuring charges and transaction costs\t5864\t489\t8108\t14461\nNon-income tax expense adjustment\t1532\t(191)\t0\t1341\nSeverance\t14593\t2587\t1386\t18566\nFair market value adjustment on contingent consideration liability\t0\t(2056)\t0\t(2056)\nLitigation and regulatory related expenses\t0\t6029\t0\t6029\nIncome attributable to non-controlling interest\t(1103)\t0\t0\t(1103)\nOther\t(31)\t0\t0\t(31)\nAdjusted EBITDA\t170783\t37150\t(29966)\t177967\n", "q10k_tbl_59": "\tNine Months Ended September 30 2019\t\t\t\n\tEnvestnet Wealth Solutions\tEnvestnet Data & Analytics\tNonsegment\tTotal\n\t(in thousands)\t\t\t\nRevenues\t517819\t142372\t0\t660191\nDeferred revenue fair value adjustment\t6670\t0\t0\t6670\nAdjusted revenues\t524489\t142372\t0\t666861\nLess: Asset-based cost of revenues\t(178474)\t0\t0\t(178474)\nAdjusted net revenues\t346015\t142372\t0\t488387\nIncome (loss) from operations\t46969\t(24000)\t(52091)\t(29122)\nAdd:\t\t\t\t\nDeferred revenue fair value adjustment\t6670\t0\t0\t6670\nAccretion on contingent consideration and purchase liability\t1240\t0\t0\t1240\nDepreciation and amortization\t46057\t27110\t0\t73167\nNon-cash compensation expense\t23586\t11799\t7856\t43241\nRestructuring charges and transaction costs\t1789\t1393\t21543\t24725\nNon-income tax expense adjustment\t1407\t73\t0\t1480\nSeverance\t2244\t5714\t189\t8147\nLitigation and regulatory related expenses\t0\t2065\t0\t2065\nLoss attributable to non-controlling interest\t31\t0\t0\t31\nOther\t111\t0\t2\t113\nAdjusted EBITDA\t130104\t24154\t(22501)\t131757\n", "q10k_tbl_60": "\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\n\t(in thousands)\t\nNet cash provided by operating activities\t131679\t61845\nNet cash used in investing activities\t(83213)\t(364518)\nNet cash provided by financing activities\t232854\t85062\nEffect of exchange rate on changes on cash\t(1009)\t(178)\nNet increase (decrease) in cash cash equivalents and restricted cash\t280311\t(217789)\nCash cash equivalents and restricted cash end of period\t363066\t71882\n", "q10k_tbl_61": "Exhibit No.\tDescription\n4.1\tIndenture dated August 20 2020 by and among Envestnet Inc. Envestnet Asset Management Inc. and U.S. Bank National Association as trustee (filed as Exhibit 4.1 to the Company's Form 8-K filed with the SEC on August 20 2020 and incorporated by reference herein).\n4.2\tForm of 0.75% Convertible Senior Notes due 2025 (filed as Exhibit 4.2 (included in Exhibit 4.1) to the Company's Form 8-K filed with the SEC on August 20 2020 and incorporated by reference herein).\n10.1\tPurchase Agreement dated August 17 2020 by and among Envestnet Inc. Envestnet Asset Management Inc. J.P. Morgan Securities LLC BMO Capital Markets Corp. BofA Securities Inc. and Goldman Sachs & Co. LLC as representatives of the several purchasers named therein (filed as Exhibit 10.1 to the Company's Form 8-K filed with the SEC on August 20 2020 and incorporated by reference herein).\n31.1\tCertification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002\n31.2\tCertification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002\n32.1\tCertification of Chief Executive Officer Pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\n32.2\tCertification of Chief Financial Officer Pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\n101.INS\tXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document\n101.SCH\tInline XBRL Taxonomy Extension Schema Document *\n101.CAL\tInline XBRL Taxonomy Extension Calculation Linkbase Document *\n101.LAB\tInline XBRL Taxonomy Extension Label Linkbase Document *\n101.PRE\tInline XBRL Taxonomy Extension Presentation Linkbase Document *\n101.DEF\tInline XBRL Taxonomy Extension Definition Linkbase Document *\n104\tCover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)\n"}{"bs": "q10k_tbl_1", "is": "q10k_tbl_2", "cf": "q10k_tbl_6"}None
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number 001-34835
Envestnet, Inc.
(Exact name of registrant as specified in its charter)
Delaware
20-1409613
(State or other jurisdiction of incorporation or organization)
(I.R.S Employer Identification No.)
35 East Wacker Drive, Suite 2400, Chicago, Illinois
60601
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code:
(312) 827-2800
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of exchange on which registered
Common Stock, par value $0.005 per share
ENV
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yesý No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
ý
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
As of October 30, 2020, Envestnet, Inc. had 53,949,796 shares of common stock outstanding.
(in thousands, except share and per share information)
(unaudited)
September 30,
December 31,
2020
2019
Assets
Current assets:
Cash and cash equivalents
$
362,918
$
82,505
Fees receivable, net
76,328
67,815
Prepaid expenses and other current assets
41,966
32,183
Total current assets
481,212
182,503
Property and equipment, net
48,983
53,756
Internally developed software, net
87,478
60,263
Intangible assets, net
452,583
505,589
Goodwill
906,697
879,850
Operating lease right-of-use assets, net
76,090
82,796
Other non-current assets
48,218
37,127
Total assets
$
2,101,261
$
1,801,884
Liabilities and Equity
Current liabilities:
Accrued expenses and other liabilities
$
141,290
$
137,944
Accounts payable
29,609
17,277
Operating lease liabilities
13,835
13,816
Contingent consideration
1,549
—
Deferred revenue
40,037
34,753
Total current liabilities
226,320
203,790
Convertible Notes
749,918
305,513
Revolving credit facility
—
260,000
Contingent consideration
11,741
9,045
Deferred revenue
2,307
5,754
Non-current operating lease liabilities
83,820
88,365
Deferred tax liabilities, net
36,088
29,481
Other non-current liabilities
37,700
32,360
Total liabilities
1,147,894
934,308
Commitments and contingencies
Equity:
Stockholders’ equity:
Preferred stock, par value $0.005, 50,000,000 shares authorized
—
—
Common stock, par value $0.005, 500,000,000 shares authorized; 67,584,956 and 66,320,706 shares issued as of September 30, 2020 and December 31, 2019, respectively; 53,884,899 and 52,841,706 shares outstanding as of September 30, 2020 and December 31, 2019, respectively
337
331
Additional paid-in capital
1,150,198
1,037,141
Accumulated deficit
(87,155)
(75,664)
Treasury stock at cost, 13,700,057 and 13,479,000 shares as of September 30, 2020 and December 31, 2019, respectively
(107,248)
(90,965)
Accumulated other comprehensive loss
(1,459)
(1,749)
Total stockholders’ equity
954,673
869,094
Non-controlling interest
(1,306)
(1,518)
Total equity
953,367
867,576
Total liabilities and equity
$
2,101,261
$
1,801,884
See accompanying notes to unaudited Condensed Consolidated Financial Statements.
3
Envestnet, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share information)
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Revenues:
Asset-based
$
137,744
$
126,591
$
394,801
$
355,595
Subscription-based
107,897
100,583
317,427
275,928
Total recurring revenues
245,641
227,174
712,228
631,523
Professional services and other revenues
6,918
8,906
22,183
28,668
Total revenues
252,559
236,080
734,411
660,191
Operating expenses:
Cost of revenues
78,545
71,870
222,327
205,595
Compensation and benefits
94,428
95,587
300,423
285,590
General and administration
38,979
42,016
118,537
124,961
Depreciation and amortization
28,951
26,735
85,077
73,167
Total operating expenses
240,903
236,208
726,364
689,313
Income (loss) from operations
11,656
(128)
8,047
(29,122)
Other expense, net
(8,836)
(9,813)
(18,546)
(23,088)
Income (loss) before income tax provision (benefit)
2,820
(9,941)
(10,499)
(52,210)
Income tax provision (benefit)
497
(6,977)
(161)
(31,591)
Net income (loss)
2,323
(2,964)
(10,338)
(20,619)
Add: Net (income) loss attributable to non-controlling interest
(413)
(116)
(12)
247
Net income (loss) attributable to Envestnet, Inc.
$
1,910
$
(3,080)
$
(10,350)
$
(20,372)
Net income (loss) per share attributable to Envestnet, Inc.:
Basic
$
0.04
$
(0.06)
$
(0.19)
$
(0.40)
Diluted
$
0.03
$
(0.06)
$
(0.19)
$
(0.40)
Weighted average common shares outstanding:
Basic
53,800,048
52,215,469
53,464,101
50,414,427
Diluted
55,558,983
52,215,469
53,464,101
50,414,427
See accompanying notes to unaudited Condensed Consolidated Financial Statements.
4
Envestnet, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(in thousands)
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net income (loss) attributable to Envestnet, Inc.
$
1,910
$
(3,080)
$
(10,350)
$
(20,372)
Foreign currency translation gains(losses), net of taxes
1,739
(1,458)
290
(1,124)
Comprehensive income (loss) attributable to Envestnet, Inc.
$
3,649
$
(4,538)
$
(10,060)
$
(21,496)
See accompanying notes to unaudited Condensed Consolidated Financial Statements.
5
Envestnet, Inc.
Condensed Consolidated Statements of Stockholders' Equity
(in thousands, except share information)
(unaudited)
Accumulated
Common Stock
Treasury Stock
Additional
Other
Non-
Common
Paid-in
Comprehensive
Accumulated
controlling
Total
Shares
Amount
Shares
Amount
Capital
Income (Loss)
Deficit
Interest
Equity
Balance, December 31, 2019
66,320,706
$
331
(13,479,000)
$
(90,965)
$
1,037,141
$
(1,749)
$
(75,664)
$
(1,518)
$
867,576
Adoption of ASC 326
—
—
—
—
—
—
(1,141)
—
$
(1,141)
Exercise of stock options
357,974
2
—
—
3,406
—
—
—
3,408
Issuance of common stock - vesting of restricted stock units
398,881
2
—
—
—
—
—
—
2
Stock-based compensation expense
—
—
—
—
13,765
—
—
—
13,765
Shares withheld to satisfy tax withholdings
—
—
(130,164)
(9,199)
—
—
—
—
(9,199)
Foreign currency translation gain (loss), net of taxes
—
—
—
—
—
(3,024)
—
—
(3,024)
Net income (loss)
—
—
—
—
—
—
(7,336)
146
(7,190)
Balance, March 31, 2020
67,077,561
$
335
(13,609,164)
$
(100,164)
$
1,054,312
$
(4,773)
$
(84,141)
$
(1,372)
$
864,197
Exercise of stock options
184,475
1
—
—
3,274
—
—
—
3,275
Issuance of common stock - vesting of restricted stock units
134,207
1
—
—
—
—
—
—
1
Stock-based compensation expense
—
—
—
—
13,006
—
—
—
13,006
Shares withheld to satisfy tax withholdings
—
—
(43,697)
(3,617)
—
—
—
—
(3,617)
Transfer of non-controlling units
—
—
—
—
910
—
—
(139)
771
Foreign currency translation gain (loss), net of taxes
—
—
—
—
—
1,575
—
—
1,575
Net income (loss)
—
—
—
—
—
—
(4,924)
(547)
(5,471)
Balance, June 30, 2020
67,396,243
$
337
(13,652,861)
$
(103,781)
$
1,071,502
$
(3,198)
$
(89,065)
$
(2,058)
$
873,737
Exercise of stock options
44,672
—
—
—
1,370
—
—
—
1,370
Issuance of common stock - vesting of restricted stock units
144,041
—
—
—
—
—
—
—
—
Stock-based compensation expense
—
—
—
—
15,729
—
—
—
15,729
Shares withheld to satisfy tax withholdings
—
—
(47,196)
(3,467)
—
—
—
—
(3,467)
Capital contribution - non-controlling interest
—
—
—
—
(339)
—
—
339
—
Issuance of Convertible Notes due 2025, net of offering costs and taxes of $8,617
—
—
—
—
61,936
—
—
—
61,936
Foreign currency translation gain (loss), net of taxes
—
—
—
—
—
1,739
—
—
1,739
Net income (loss)
—
—
—
—
—
—
1,910
413
2,323
Balance, September 30, 2020
67,584,956
$
337
(13,700,057)
$
(107,248)
$
1,150,198
$
(1,459)
$
(87,155)
$
(1,306)
$
953,367
See accompanying notes to unaudited Condensed Consolidated Financial Statements.
6
Envestnet, Inc.
Condensed Consolidated Statements of Stockholders' Equity (continued)
(in thousands, except share information)
(unaudited)
Accumulated
Common Stock
Treasury Stock
Additional
Other
Non-
Common
Paid-in
Comprehensive
Accumulated
controlling
Total
Shares
Amount
Shares
Amount
Capital
Income (Loss)
Deficit
Interest
Equity
Balance, December 31, 2018
61,238,898
$
306
(13,117,098)
$
(67,858)
$
761,128
$
(994)
$
(58,882)
$
(1,098)
$
632,602
Exercise of stock options
200,326
1
—
—
3,162
—
—
—
3,163
Issuance of common stock - vesting of restricted stock units
479,479
2
—
—
—
—
—
—
2
Acquisition of business
15,755
—
—
—
772
—
—
—
772
Stock-based compensation expense
—
—
—
—
12,864
—
—
—
12,864
Shares withheld to satisfy tax withholdings
—
—
(160,456)
(9,819)
—
—
—
—
(9,819)
Foreign currency translation gain (loss)
—
—
—
—
—
222
—
—
222
Net income (loss)
—
—
—
—
—
—
(18,185)
(83)
(18,268)
Balance, March 31, 2019
61,934,458
309
(13,277,554)
(77,677)
777,926
(772)
(77,067)
(1,181)
621,538
Exercise of stock options
114,109
1
—
—
1,750
—
—
—
1,751
Issuance of common stock - vesting of restricted stock units
182,390
1
—
—
—
—
—
—
1
Acquisition of business
3,184,713
16
—
—
222,468
—
—
—
222,484
Stock-based compensation expense
—
—
—
—
13,434
—
—
—
13,434
Shares withheld to satisfy tax withholdings
—
—
(67,960)
(6,143)
—
—
—
—
(6,143)
Foreign currency translation gain (loss)
—
—
—
—
—
112
—
—
112
Net income (loss)
—
—
—
—
—
—
893
(280)
613
Balance, June 30, 2019
65,415,670
327
(13,345,514)
(83,820)
1,015,578
(660)
(76,174)
(1,461)
853,790
Exercise of stock options
225,414
1
—
—
2,114
—
—
—
2,115
Issuance of common stock - vesting of restricted stock units
242,789
1
—
—
—
—
—
—
1
Stock-based compensation expense
—
—
—
—
13,169
—
—
—
13,169
Shares withheld to satisfy tax withholdings
—
—
(84,538)
(3,735)
—
—
—
—
(3,735)
Foreign currency translation gain (loss)
—
—
—
—
—
(1,458)
—
—
(1,458)
Net income (loss)
—
—
—
—
—
—
(3,080)
116
(2,964)
Balance, September 30, 2019
65,883,873
$
329
(13,430,052)
$
(87,555)
$
1,030,861
$
(2,118)
$
(79,254)
$
(1,345)
$
860,918
See accompanying notes to unaudited Condensed Consolidated Financial Statements.
7
Envestnet, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
September 30,
2020
2019
OPERATING ACTIVITIES:
Net loss
$
(10,338)
$
(20,619)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
85,077
73,167
Provision for doubtful accounts
2,323
1,243
Deferred income taxes
79
(37,626)
Non-cash compensation expense
45,721
43,167
Non-cash interest expense
12,255
17,195
Accretion on contingent consideration and purchase liability
1,308
1,240
Payments of contingent consideration
—
(578)
Fair market value adjustment to contingent consideration liability
(2,056)
—
Gain on acquisition of equity method investment
(4,230)
—
Loss allocation from equity method investments
4,280
1,507
Impairment of right of use assets
1,426
—
Other
556
—
Changes in operating assets and liabilities, net of acquisitions:
Fees receivable, net
(10,825)
6,164
Prepaid expenses and other current assets
(11,139)
(4,784)
Other non-current assets
(1,807)
(6,113)
Accrued expenses and other liabilities
3,393
(9,732)
Accounts payable
12,084
(6,859)
Deferred revenue
1,488
1,231
Other non-current liabilities
2,084
3,242
Net cash provided by operating activities
131,679
61,845
INVESTING ACTIVITIES:
Purchases of property and equipment
(8,824)
(16,098)
Capitalization of internally developed software
(40,257)
(23,649)
Investments in private companies
(13,875)
(3,200)
Acquisitions of businesses, net of cash acquired
(20,257)
(321,571)
Net cash used in investing activities
(83,213)
(364,518)
-continued-
8
Envestnet, Inc.
Condensed Consolidated Statements of Cash Flows (continued)
(in thousands)
(unaudited)
Nine Months Ended
September 30,
2020
2019
FINANCING ACTIVITIES:
Proceeds from issuance of Convertible Notes due 2025
517,500
—
Convertible Notes due 2025 issuance costs
(14,540)
—
Proceeds from borrowings on revolving credit facility
45,000
175,000
Payments on revolving credit facility
(305,000)
(75,000)
Revolving credit facility issuance costs
—
(2,103)
Payments of deferred consideration on prior acquisitions
(1,879)
—
Payments of contingent consideration
—
(171)
Proceeds from exercise of stock options
8,053
7,029
Taxes paid in lieu of shares issued for stock-based compensation