Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'ENVESTNET, INC. | ' |
Entity Central Index Key | '0001337619 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 34,162,619 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $64,464 | $49,942 |
Fees and other receivables, net | 24,857 | 19,848 |
Deferred tax assets, net | 3,705 | 2,462 |
Prepaid expenses and other current assets | 6,660 | 7,155 |
Total current assets | 99,686 | 79,407 |
Property and equipment, net | 14,565 | 12,766 |
Internally developed software, net | 6,394 | 5,740 |
Intangible assets, net | 31,398 | 35,698 |
Goodwill | 74,868 | 74,335 |
Deferred tax assets, net | 8,367 | 8,367 |
Other non-current assets | 5,110 | 4,929 |
Total assets | 240,388 | 221,242 |
Current liabilities: | ' | ' |
Accrued expenses | 33,683 | 35,242 |
Accounts payable | 6,728 | 5,528 |
Contingent consideration | 6,000 | 6,008 |
Deferred revenue | 6,566 | 6,245 |
Total current liabilities | 52,977 | 53,023 |
Contingent consideration | 11,389 | 11,297 |
Deferred revenue | 3,017 | 1,148 |
Deferred rent | 2,575 | 2,051 |
Lease incentive | 4,146 | 3,547 |
Other non-current liabilities | 2,548 | 2,404 |
Total liabilities | 76,652 | 73,470 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, par value $0.005, 50,000,000 shares authorized | ' | ' |
Common stock, par value $0.005, 500,000,000 shares authorized; 45,942,152 and 45,628,814 shares issued as of June 30, 2014 and December 31, 2013, respectively; 34,149,003 and 33,876,020 shares outstanding as of June 30, 2014 and December 31, 2013, respectively | 230 | 228 |
Additional paid-in capital | 202,729 | 192,341 |
Accumulated deficit | -26,904 | -33,617 |
Treasury stock at cost, 11,793,149 and 11,752,794 shares as of June 30, 2014 and December 31, 2013, respectively | -12,875 | -11,180 |
Total stockholders' equity | 163,180 | 147,772 |
Non-controlling interest | 556 | ' |
Total equity | 163,736 | 147,772 |
Total liabilities and equity | $240,388 | $221,242 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Condensed Consolidated Balance Sheets | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 45,942,152 | 45,628,814 |
Common stock, shares outstanding | 34,149,003 | 33,876,020 |
Treasury stock, shares | 11,793,149 | 11,752,794 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Assets under management or administration | $70,727 | $41,234 | $137,808 | $77,570 |
Licensing and professional services | 14,102 | 10,398 | 25,560 | 20,687 |
Total revenues | 84,829 | 51,632 | 163,368 | 98,257 |
Operating expenses: | ' | ' | ' | ' |
Cost of revenues | 37,955 | 19,638 | 72,392 | 36,446 |
Compensation and benefits | 25,157 | 17,194 | 48,616 | 34,412 |
General and administration | 12,936 | 9,962 | 25,086 | 18,855 |
Depreciation and amortization | 4,615 | 3,081 | 9,037 | 6,199 |
Total operating expenses | 80,663 | 49,875 | 155,131 | 95,912 |
Other income: | ' | ' | ' | ' |
Total other income | 1,839 | 186 | 1,920 | 191 |
Income from operations | 4,166 | 1,757 | 8,237 | 2,345 |
Income before income tax provision | 6,005 | 1,943 | 10,157 | 2,536 |
Income tax provision | 2,355 | 825 | 3,639 | 877 |
Net income | 3,650 | 1,118 | 6,518 | 1,659 |
Add: Net loss attributable to non-controlling interest | 69 | ' | 195 | ' |
Net income attributable to Envestnet, Inc. | $3,719 | $1,118 | $6,713 | $1,659 |
Net income per share attributable to Envestnet, Inc.: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.11 | $0.03 | $0.20 | $0.05 |
Diluted (in dollars per share) | $0.10 | $0.03 | $0.18 | $0.05 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 34,547,277 | 32,661,196 | 34,332,759 | 32,518,943 |
Diluted (in shares) | 36,805,758 | 35,164,106 | 36,726,121 | 34,760,568 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Equity (USD $) | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2013 | $228 | ($11,180) | $192,341 | ($33,617) | ' | $147,772 |
Balance (in shares) at Dec. 31, 2013 | 45,628,814 | -11,752,794 | ' | ' | ' | ' |
Increase (decrease) in shareholders' equity | ' | ' | ' | ' | ' | ' |
Exercise of stock options | 2 | ' | 1,613 | ' | ' | 1,615 |
Exercise of stock options (in shares) | 190,961 | ' | ' | ' | ' | ' |
Issuance of common stock - vesting of restricted stock (in shares) | 122,377 | ' | ' | ' | ' | ' |
Purchase of treasury stock for stock-based minimum tax withholdings | ' | -1,695 | ' | ' | ' | -1,695 |
Purchase of treasury stock for stock-based minimum tax withholdings (in shares) | ' | -40,355 | ' | ' | ' | ' |
Net share settlements for stock-based minimum tax withholdings | ' | ' | ' | ' | ' | 1,695 |
Stock-based compensation | ' | ' | 5,572 | ' | 195 | 5,767 |
Excess tax benefits from stock-based compensation expense | ' | ' | 3,203 | ' | ' | 3,203 |
Issuance of membership interest in ERS, LLC | ' | ' | ' | ' | 556 | 556 |
Net income | ' | ' | ' | 6,713 | -195 | 6,518 |
Balance at Jun. 30, 2014 | $230 | ($12,875) | $202,729 | ($26,904) | $556 | $163,736 |
Balance (in shares) at Jun. 30, 2014 | 45,942,152 | -11,793,149 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
OPERATING ACTIVITIES: | ' | ' |
Net income | $6,518 | $1,659 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 9,037 | 6,199 |
Deferred rent and lease incentive | 1,123 | -48 |
Provision for doubtful accounts | ' | 60 |
Deferred income taxes | ' | -1,094 |
Stock-based compensation | 5,767 | 4,266 |
Excess tax benefits from stock-based compensation | -3,203 | -1,047 |
Imputed interest expense | 824 | ' |
Fair market value adjustment on contingent consideration | -460 | ' |
Changes in operating assets and liabilities: | ' | ' |
Fees and other receivables, net | -5,009 | -3,672 |
Prepaid expenses and other current assets | 2,455 | -672 |
Other non-current assets | -1,136 | -568 |
Accrued expenses | -1,559 | 3,490 |
Accounts payable | 1,200 | 1,489 |
Deferred revenue | 2,190 | 80 |
Other non-current liabilities | 144 | 25 |
Net cash provided by operating activities | 17,891 | 10,167 |
INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -4,841 | -1,638 |
Capitalization of internally developed software | -1,651 | -1,503 |
Net cash used in investing activities | -6,492 | -3,141 |
FINANCING ACTIVITIES: | ' | ' |
Proceeds from exercise of warrants | ' | 4 |
Proceeds from exercise of stock options | 1,615 | 2,204 |
Issuance of restricted stock | ' | 1 |
Purchase of treasury stock for stock-based minimum tax withholdings | -1,695 | -586 |
Excess tax benefits from stock-based compensation expense | 3,203 | 1,047 |
Net cash provided by financing activities | 3,123 | 2,670 |
INCREASE IN CASH AND CASH EQUIVALENTS | 14,522 | 9,696 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 49,942 | 29,983 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 64,464 | 39,679 |
Supplemental disclosure of cash flow information- cash paid during the period for income taxes, net of refunds | 18 | 2,955 |
Supplemental disclosure of non-cash operating, investing and financing activities: | ' | ' |
Settlement of contingent consideration liability upon issuance of ERS, LLC membership interest | $158 | ' |
Organization_and_Description_o
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2014 | |
Organization and Description of Business | ' |
Organization and Description of Business | ' |
1.Organization and Description of Business | |
Envestnet, Inc. (“Envestnet”) and its subsidiaries (collectively, the “Company”) provide open-architecture wealth management services and technology to independent financial advisors and financial institutions. These services and related technology are provided via Envestnet’s wealth management software, Envestnet | PMC®, Envestnet | Tamarac™, Vantage Reporting Solution™ and Envestnet | WMS™. | |
Envestnet’s wealth management software is a platform of integrated, internet-based technology applications and related services that provide portfolio diagnostics, proposal generation, investment model management, rebalancing and trading, portfolio performance reporting and monitoring solutions, billing, and back-office and middle-office operations and administration. | |
The Company’s investment consulting group, Envestnet | PMC, provides investment manager due diligence and research, a full spectrum of investment offerings supported by both proprietary and third-party research and manager selection, and overlay portfolio management services. | |
Envestnet | Tamarac provides leading portfolio accounting, rebalancing, trading, performance reporting and client relationship management software, principally to high-end Registered Investment Advisors (“RIAs”). | |
Vantage Reporting Solution software aggregates and manages investment data, provides performance reporting and benchmarking, giving advisors an in-depth view of clients’ various investments, empowering advisors to give holistic, personalized advice. | |
Envestnet | WMS offers financial institutions access to an integrated wealth platform, which helps construct and manage sophisticated portfolio solutions across an entire account life cycle, particularly in the area of unified managed account trading. Envestnet | WMS’s Overlay Portfolio Management console helps wealth managers efficiently build customized client portfolios that consider both proprietary and open-architecture investment solutions. | |
Through these platform and service offerings, the Company provides open-architecture support for a wide range of investment products (separately managed accounts, multi-manager accounts, mutual funds, exchange-traded funds, stock baskets, alternative investments, and other fee-based investment solutions) from Envestnet | PMC and other leading investment providers via multiple custodians, and also account administration and reporting services. | |
Envestnet operates four RIAs and a registered broker-dealer. The RIAs are registered with the Securities and Exchange Commission (“SEC”). The broker-dealer is registered with the SEC, all 50 states and the District of Columbia and is a member of the Financial Industry Regulatory Authority (“FINRA”). | |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
2.Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of the Company as of June 30, 2014 and for the three and six months ended June 30, 2014 and 2013 have not been audited by an independent registered public accounting firm. These unaudited condensed consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2013 and reflect all normal recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s financial position as of June 30, 2014 and the results of operations, equity and cash flows for the periods presented herein. The unaudited condensed consolidated balance sheet as of December 31, 2013 was derived from the Company’s audited financial statements for the year ended December 31, 2013 but does not include all disclosures, including notes required by accounting principles generally accepted in the United States of America (“GAAP”). The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the operating results to be expected for other interim periods or for the full fiscal year. | |
The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 17, 2014. | |
The preparation of these unaudited condensed consolidated financial statements requires management to make estimates and assumptions related to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Significant areas requiring the use of management estimates relate to estimating uncollectible receivables, revenue recognition, costs capitalized for internally developed software, valuations and assumptions used for impairment testing of goodwill, intangible and other long-lived assets, fair value of stock and stock options issued, fair value of contingent consideration, realization of deferred tax assets, uncertain tax positions and assumptions used to allocate purchase prices in business combinations. Actual results could differ materially from these estimates under different assumptions or conditions. | |
Other Income - On June 18, 2014, the Company reached an agreement with a vendor regarding the recovery of certain expenses the Company incurred in 2013. Under the terms of the agreement, the vendor agreed to pay the Company $1,825. The Company recognized a pre-tax gain of $1,825 resulting from the agreement, which is included in “Other income” in the condensed consolidated statements of operations for the three and six months ended June 30, 2014. | |
Non-controlling Interest - Effective February 1, 2014, the Company formed Envestnet Retirement Solutions, LLC (“ERS, LLC”) with various third parties. ERS, LLC offers advisory and technology enabled services to financial advisors and retirement plans. In exchange for a 64.5% ownership interest in ERS, LLC, the Company contributed certain assets and has agreed to fund a certain amount of the operating expenses of ERS, LLC. | |
The allocation of gains and losses to the members of ERS, LLC is based on a hypothetical liquidation book value method in accordance with the ERS, LLC operating agreement. In the three and six months ended June 30, 2014, losses of $69 and $195, respectively, are reflected as non-controlling interest in the condensed consolidated statements of operations. | |
Recent Accounting Pronouncements - On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |
Business_Acquisitions
Business Acquisitions | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Business Acquisitions | ' | |||||||
Business Acquisitions | ' | |||||||
3.Business Acquisitions | ||||||||
Acquisition of Klein Decisions, Inc. | ||||||||
On May 20, 2014, ERS, LLC entered into a stock purchase agreement with Klein Decisions, Inc. (“Klein”). In accordance with the stock purchase agreement, ERS, LLC acquired all of the outstanding shares of Klein for cash consideration of approximately $1,500, a promissory note in the amount of $1,500, and contingent consideration with a minimum guaranteed amount of $1,175, to be paid over three years. The promissory note is payable by ERS, LLC on July 31, 2014. Klein develops dynamic decision systems that incorporate investor preferences, goals, and priorities into the investment process. | ||||||||
On July 1, 2014, ERS, LLC completed the acquisition of Klein. ERS, LLC is currently in the initial phase of gathering financial information and has not completed the estimated fair values of the assets acquired and liabilities assumed. | ||||||||
On July 9, 2014, ERS, LLC accepted the subscription of former owners of Klein (the “Klein Parties”) to purchase an 11.7% ownership interest of ERS, LLC for $1,500. The Klein Parties have the right to require ERS, LLC to repurchase units issued pursuant to the subscription anytime between 18 and approximately 36 months after July 1, 2014 for the amount of $1,500. This purchase obligation is guaranteed by the Company. | ||||||||
After taking into account the subscription of the Klein Parties, the Company’s ownership interest in ERS, LLC is 57%. | ||||||||
Agreement to Acquire Placemark Holdings, Inc. | ||||||||
On June 30, 2014, Envestnet, Inc. (“Envestnet”) entered into an acquisition agreement and plan of merger (which was amended and restated on August 11, 2014, the “Agreement”) with Placemark Holdings, Inc., a Delaware corporation (“Placemark”), and certain of its shareholders pursuant to which Envestnet will acquire Placemark (the “Acquisition”). Placemark develops Unified Managed Account (“UMA”) programs and other portfolio management outsourcing solutions, including patented portfolio overlay and tax optimization services, for banks, full-service broker-dealers and RIA firms. | ||||||||
Under the terms of the Agreement, Envestnet has agreed to pay an aggregate of $66,000 in cash upon closing of the Acquisition, subject to certain post-closing adjustments. Envestnet expects to fund the Acquisition with available cash and borrowings under its credit agreement (see Note 15). | ||||||||
The Acquisition is subject to customary closing conditions, including certain customer consents, and is expected to be completed during the second half of 2014. | ||||||||
Acquisition of Wealth Management Solutions | ||||||||
On July 1, 2013, the Company acquired the Wealth Management Solutions (“WMS”) division of Prudential Investments LLC. In accordance with the purchase agreement, the Company acquired substantially all of the assets and assumed certain liabilities of WMS for total consideration of $24,730. WMS is a provider of technology solutions that enables financial services firms to develop and enhance their wealth management offerings. | ||||||||
The consideration in the acquisition was as follows: | ||||||||
Cash consideration | $ | 8,992 | ||||||
Contingent consideration | 15,738 | |||||||
$ | 24,730 | |||||||
In connection with the acquisition of WMS, the Company is required to pay Prudential Investments LLC contingent consideration of up to a total of $23,000 in cash, based upon meeting certain performance targets. The Company recorded a liability as of the date of acquisition of $15,738, which represented the estimated fair value of contingent consideration on the date of acquisition and is considered a Level 3 fair value measurement as described in Note 8. | ||||||||
The estimated fair value of contingent consideration as of June 30, 2014 was $17,389. This amount is the present value of an undiscounted liability of $19,137, applying a discount rate of 10%. Payments will be made at the end of three twelve month closing periods. The future undiscounted payments are anticipated to be $6,000 on August 15, 2014, $6,437 on August 15, 2015 and $6,700 on August 15, 2016. The final future payments may be greater or lower than these amounts, based upon the attainment of performance targets. Changes to the estimated fair value of the contingent consideration are recognized in earnings of the Company. | ||||||||
For the three and six months ended June 30, 2014, the Company recognized imputed interest expense on contingent consideration of $412 and $824, respectively. During the three months ended June 30, 2014, the Company recorded a fair value adjustment to decrease the contingent consideration liability by $460 which is included in general and administration expense in the condensed consolidated statement of operations. | ||||||||
Pro forma results for Envestnet, Inc. giving effect to the WMS acquisition | ||||||||
The following pro forma financial information presents the combined results of operations of Envestnet and WMS, acquired on July 1, 2013, for the three and six months ended June 30, 2013. The pro forma financial information presents the results as if the acquisition had occurred as of the beginning of 2013. | ||||||||
The unaudited pro forma results presented include amortization charges for acquired intangible assets, imputed interest expense, stock-based compensation expense and the related tax effect on the aforementioned items. | ||||||||
Pro forma financial information for the three and six months ended June 30, 2013 is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the acquisition had taken place as of the beginning of 2013. | ||||||||
Three Months Ended | Six Months Ended | |||||||
Revenues | $ | 68,247 | $ | 130,705 | ||||
Net loss | (6,677 | ) | (11,276 | ) | ||||
Net loss per share: | ||||||||
Basic | (0.21 | ) | (0.35 | ) | ||||
Diluted | (0.21 | ) | (0.35 | ) | ||||
Property_and_Equipment
Property and Equipment | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Property and Equipment | ' | |||||||||||||
Property and Equipment | ' | |||||||||||||
4.Property and Equipment | ||||||||||||||
June 30, | December 31, | |||||||||||||
Estimated Useful Life | 2014 | 2013 | ||||||||||||
Cost: | ||||||||||||||
Office furniture and fixtures | 5-7 years | $ | 4,921 | $ | 4,266 | |||||||||
Computer equipment and software | 3 years | 29,743 | 26,910 | |||||||||||
Other office equipment | 5 years | 598 | 598 | |||||||||||
Leasehold improvements | Shorter of the lease term or useful life of the asset | 9,652 | 8,299 | |||||||||||
44,914 | 40,073 | |||||||||||||
Less accumulated depreciation and amortization | (30,349 | ) | (27,307 | ) | ||||||||||
Property and equipment, net | $ | 14,565 | $ | 12,766 | ||||||||||
Depreciation and amortization expense was as follows: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Depreciation and amortization expense | $ | 1,553 | $ | 1,095 | $ | 3,042 | $ | 2,218 | ||||||
Internally_Developed_Software
Internally Developed Software | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Internally Developed Software | ' | |||||||||||||
Internally Developed Software | ' | |||||||||||||
5.Internally Developed Software | ||||||||||||||
Internally developed software consists of the following: | ||||||||||||||
June 30, | December 31, | |||||||||||||
Estimated Useful Life | 2014 | 2013 | ||||||||||||
Internally developed software | 5 years | $ | 18,025 | $ | 16,374 | |||||||||
Less accumulated amortization | (11,631 | ) | (10,634 | ) | ||||||||||
Internally developed software, net | $ | 6,394 | $ | 5,740 | ||||||||||
Amortization expense was as follows: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Amortization expense | $ | 508 | $ | 418 | $ | 997 | $ | 829 | ||||||
Intangible_Assets
Intangible Assets | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||||
6.Intangible Assets | ||||||||||||||||||||||
Intangible assets consist of the following: | ||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||
Useful Life | Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||
Customer lists | 4 - 12 years | $ | 42,403 | $ | (17,665 | ) | $ | 24,738 | $ | 42,103 | $ | (14,593 | ) | $ | 27,510 | |||||||
Proprietary technologies | 1.5 - 8 years | 9,978 | (4,482 | ) | 5,496 | 9,580 | (2,792 | ) | 6,788 | |||||||||||||
Trade names | 5 years | 2,090 | (926 | ) | 1,164 | 2,090 | (690 | ) | 1,400 | |||||||||||||
Total intangible assets | $ | 54,471 | $ | (23,073 | ) | $ | 31,398 | $ | 53,773 | $ | (18,075 | ) | $ | 35,698 | ||||||||
Amortization expense was as follows: | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Amortization expense | $ | 2,554 | $ | 1,568 | $ | 4,998 | $ | 3,152 | ||||||||||||||
Other_NonCurrent_Assets
Other Non-Current Assets | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Other Non-Current Assets | ' | |||||||
Other Non-Current Assets | ' | |||||||
7.Other Non-Current Assets | ||||||||
Other non-current assets consist of the following: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Investment in private company | $ | 1,250 | $ | 1,250 | ||||
Deposits: | ||||||||
Lease | 1,784 | 1,751 | ||||||
Other | 436 | 286 | ||||||
Other | 1,640 | 1,642 | ||||||
$ | 5,110 | $ | 4,929 | |||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Fair Value Measurements | ' | ||||
Fair Value Measurements | ' | ||||
8.Fair Value Measurements | |||||
Financial assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels: | |||||
Level 1: | Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. | ||||
Level 2: | Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or inputs that are observable and can be corroborated by observable market data. | ||||
Level 3: | Inputs reflect management’s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. | ||||
The Company periodically invests excess cash in money-market funds not insured by the Federal Deposit Insurance Corporation. The Company believes that the investments in money market funds are on deposit with creditworthy financial institutions and that the funds are highly liquid. The fair values of the Company’s investments in money market funds are based on the daily quoted market prices of the net asset value of the various money market funds. These money market funds are considered Level 1 assets, totaled approximately $44,829 and $32,358 as of June 30, 2014 and December 31, 2013, respectively, and are included in cash and cash equivalents in the condensed consolidated balance sheets. | |||||
The fair value of the contingent consideration liability related to the WMS acquisition on July 1, 2013 was estimated using a discounted cash flow method with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in the FASB’s Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures. The significant inputs in the Level 3 measurement not supported by market activity included our assessments of expected future cash flows related to our acquisition of WMS during the subsequent three years from the date of acquisition, appropriately discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of the agreement. | |||||
The Company utilized a discounted cash flow method with expected future performance of WMS, and its ability to meet the target performance objectives as the main driver of the valuation, to arrive at the fair value of the contingent consideration. The Company will continue to reassess the fair value of the contingent consideration at each reporting date until settlement. Changes to the estimated fair value of the contingent consideration will be recognized in earnings of the Company. | |||||
The table below sets forth a summary of changes in the fair value of the Company’s Level 3 liability for the six months ended June 30, 2014: | |||||
Fair Value of | |||||
Contingent | |||||
Consideration | |||||
Liability | |||||
Balance at December 31, 2013 | $ | 17,305 | |||
Settlement of contingent consideration liability | (158 | ) | |||
Measurement period adjustment | (122 | ) | |||
Fair market value adjustment | (460 | ) | |||
Imputed interest | 824 | ||||
Balance at June 30, 2014 | $ | 17,389 | |||
The Company assesses the categorization of assets and liabilities by level at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer, in accordance with the Company’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. There were no transfers between Levels 1, 2 and 3 during the six months ended June 30, 2014. | |||||
Accrued_Expenses
Accrued Expenses | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accrued Expenses | ' | |||||||
Accrued Expenses | ' | |||||||
9.Accrued Expenses | ||||||||
Accrued expenses consist of the following: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued investment manager fees | $ | 22,398 | $ | 19,310 | ||||
Accrued compensation and related taxes | 9,181 | 12,125 | ||||||
Accrued professional services | 500 | 694 | ||||||
Accrued restructuring charges | — | 551 | ||||||
Other accrued expenses | 1,604 | 2,562 | ||||||
$ | 33,683 | $ | 35,242 | |||||
Income_Taxes
Income Taxes | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Income Taxes | ' | |||||||||||||
Income Taxes | ' | |||||||||||||
10.Income Taxes | ||||||||||||||
The following table includes the Company’s income before income tax provision, income tax provision and effective tax rate: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Income before income tax provision | $ | 6,005 | $ | 1,943 | $ | 10,157 | $ | 2,536 | ||||||
Income tax provision | 2,355 | 825 | 3,639 | 877 | ||||||||||
Effective tax rate | 39.2 | % | 42.5 | % | 35.8 | % | 34.6 | % | ||||||
The Company’s effective tax rate in the three months ended June 30, 2014, was lower than the effective tax rate in the three months ended June 30, 2013, primarily due to a decrease in permanent items and a change in the tax rate expected to apply to taxable income. The Company’s effective tax rate in the six months ended June 30, 2014, was higher than the effective tax rate in the six months ended June 30, 2013, due to a benefit recorded in 2013 resulting from a change in the tax rate expected to apply to taxable income. | ||||||||||||||
The liability for unrecognized tax benefits reported in other non-current liabilities was $2,426 and $2,693 at June 30, 2014 and December 31, 2013, respectively. At June 30, 2014, the amount of unrecognized tax benefits that would benefit the Company’s effective tax rate, if recognized, was $1,673. At this time, the Company estimates it is reasonably possible that the liability for unrecognized tax benefits will decrease by as much as $200 in the next twelve months due to the completion of reviews by tax authorities, the voluntary filing of certain state income taxes and the expiration of certain statutes of limitations. | ||||||||||||||
The Company recognizes potential interest and penalties related to unrecognized tax benefits in income tax expense. The Company had accrued interest and penalties of $562 and $636 as of June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
The Company files a consolidated federal income tax return and separate tax returns with various states. Additionally, foreign subsidiaries of the Company file tax returns in foreign jurisdictions. The Company’s tax returns for the calendar years ended December 31, 2013, 2012, 2011 and 2010 remain open to examination by the Internal Revenue Service in their entirety. With respect to state taxing jurisdictions, the Company’s tax returns for the calendar years ended December 31, 2013, 2012, 2011, 2010 and 2009 remain open to examination by various state revenue services. | ||||||||||||||
The Company’s Indian subsidiary is currently under examination by the India Tax Authority for the fiscal years ended March 31, 2009, 2011 and 2012. Based on the outcome of examinations of our subsidiary or the result of the expiration of statutes of limitations it is reasonably possible that the related unrecognized tax benefits could change from those recorded in the consolidated balance sheet. It is possible that one or more of these audits may be finalized within the next twelve months. | ||||||||||||||
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
11.Stock-Based Compensation | ||||||||||||||
The Company has stock options and restricted stock outstanding under the 2004 Stock Incentive Plan (the “2004 Plan”), the 2010 Long-Term Incentive Plan (the “2010 Plan”) and the Envestnet, Inc. Management Incentive Plan for Envestnet | Tamarac Management Employees (the “2012 Plan”). As of June 30, 2014, the maximum number of stock options and restricted stock available for future issuance under the Company’s plans is 921,799. | ||||||||||||||
Employee stock-based compensation expense under the Company’s plans was as follows: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Employee stock-based compensation expense | $ | 3,199 | $ | 1,960 | $ | 5,767 | $ | 4,266 | ||||||
Tax effect on employee stock-based compensation expense | (1,280 | ) | (832 | ) | (2,307 | ) | (1,475 | ) | ||||||
Net effect on income | $ | 1,919 | $ | 1,128 | $ | 3,460 | $ | 2,791 | ||||||
Stock Options | ||||||||||||||
The following weighted average assumptions were used to value stock options granted during the periods indicated: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Grant date fair value of stock options | $ | — | $ | — | $ | 16.81 | $ | 6.11 | ||||||
Volatility | — | — | 38.7 | % | 40.4 | % | ||||||||
Risk-free interest rate | — | — | 1.8 | % | 1.0 | % | ||||||||
Dividend yield | — | — | 0.0 | % | 0.0 | % | ||||||||
Expected term (in years) | — | — | 6.0 | 6.0 | ||||||||||
The following table summarizes stock option activity under the Company’s plans: | ||||||||||||||
Options | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic Value | ||||||||||||
Exercise Price | Remaining | |||||||||||||
Contractual | ||||||||||||||
Life (Years) | ||||||||||||||
Outstanding as of December 31, 2013 | 4,637,471 | $ | 9.04 | |||||||||||
Granted | 155,753 | 41.84 | ||||||||||||
Exercised | (95,609 | ) | 8.77 | |||||||||||
Forfeited | (4,150 | ) | 9 | |||||||||||
Outstanding as of March 31, 2014 | 4,693,465 | 10.13 | 5.3 | $ | 141,293 | |||||||||
Granted | — | |||||||||||||
Exercised | (95,352 | ) | 8.14 | |||||||||||
Forfeited | (3,300 | ) | 7.8 | |||||||||||
Outstanding as of June 30, 2014 | 4,594,813 | 10.17 | 5 | $ | 178,031 | |||||||||
Options exercisable | 3,748,286 | 8.73 | 4.5 | $ | 150,653 | |||||||||
Exercise prices of stock options outstanding as of June 30, 2014 range from $0.11 to $41.84. At June 30, 2014, there was $3,633 of unrecognized compensation expense related to unvested stock options, which the Company expects to recognize over a weighted-average period of 2.3 years. | ||||||||||||||
Restricted Stock | ||||||||||||||
Periodically, the Company grants restricted stock awards to employees that vest one-third on each of the first three anniversaries of the grant date. The following is a summary of the activity for unvested restricted stock awards granted under the Company’s plans: | ||||||||||||||
Weighted- | ||||||||||||||
Average Grant | ||||||||||||||
Number of | Date Fair Value | |||||||||||||
Shares | per Share | |||||||||||||
Balance at December 31, 2013 | 901,551 | $ | 16.5 | |||||||||||
Granted | 240,626 | 41.83 | ||||||||||||
Vested | (116,706 | ) | 14.22 | |||||||||||
Forfeited | (10,324 | ) | 26.94 | |||||||||||
Balance at March 31, 2014 | 1,015,147 | 22.69 | ||||||||||||
Granted | — | — | ||||||||||||
Vested | (5,671 | ) | 24.6 | |||||||||||
Forfeited | (4,312 | ) | 29.79 | |||||||||||
Balance at June 30, 2014 | 1,005,164 | 22.65 | ||||||||||||
At June 30, 2014, there was $11,178 of unrecognized compensation expense related to unvested restricted stock awards, which the Company expects to recognize over a weighted-average period of 2.4 years. At June 30, 2014, there was an additional $4,240 of potential unrecognized stock compensation expense related to unvested restricted stock granted under the 2012 Plan that vests based upon Tamarac meeting certain performance conditions and then a subsequent two-year service condition, which the Company expects to recognize, if earned, over the remaining estimated vesting period of 0.75 to 2.75 years. | ||||||||||||||
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
12.Earnings Per Share | ||||||||||||||
Basic net income per share attributable to Envestnet, Inc. is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted earnings per share attributable to Envestnet, Inc., the basic weighted average number of shares is increased by the dilutive effect of stock options, common warrants and restricted stock using the treasury-stock method. | ||||||||||||||
The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to Envestnet, Inc.: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net income attributable to Envestnet, Inc. | $ | 3,719 | $ | 1,118 | $ | 6,713 | $ | 1,659 | ||||||
Basic number of weighted-average shares outstanding | 34,547,277 | 32,661,196 | 34,332,759 | 32,518,943 | ||||||||||
Effect of dilutive shares: | ||||||||||||||
Options to purchase common stock | 2,166,237 | 1,805,969 | 2,198,089 | 1,605,065 | ||||||||||
Common warrants | — | 609,489 | — | 523,020 | ||||||||||
Unvested restricted stock | 92,244 | 87,452 | 195,273 | 113,540 | ||||||||||
Diluted number of weighted-average shares outstanding | 36,805,758 | 35,164,106 | 36,726,121 | 34,760,568 | ||||||||||
Net income per share attribuatable to Envestnet, Inc.: | ||||||||||||||
Basic | $ | 0.11 | $ | 0.03 | $ | 0.20 | $ | 0.05 | ||||||
Diluted | $ | 0.10 | $ | 0.03 | $ | 0.18 | $ | 0.05 | ||||||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted net income per share attributable to Envestnet, Inc. were as follows: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Options to purchase common stock | 155,753 | — | 155,753 | — | ||||||||||
Unvested restricted stock | — | 348,139 | — | 348,139 | ||||||||||
Major_Customers
Major Customers | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Major Customers | ' | |||||||||
Major Customers | ' | |||||||||
13.Major Customers | ||||||||||
One customer accounted for more than 10% of the Company’s total revenues: | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | June 30, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
Fidelity | 19 | % | 23 | % | 19 | % | 22 | % | ||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
14.Commitments and Contingencies | |
The Company is involved in litigation arising in the ordinary course of its business. The Company does not believe that the outcome of any of the current litigation, individually or in the aggregate, would, if determined adversely to it, have a material adverse effect on the Company’s results of operations, financial condition, cash flows or business. | |
The Company includes various types of indemnification and guarantee clauses in certain arrangements. These indemnifications and guarantees may include, but are not limited to, infringement claims related to intellectual property, direct or consequential damages and guarantees to certain service providers and service level requirements with certain customers. The type and amount of any potential indemnification or guarantee varies substantially based on the nature of each arrangement. The Company has experienced no previous claims and cannot determine the maximum amount of potential future payments, if any, related to such indemnification and guarantee provisions. The Company believes that it is unlikely it will have to make material payments under these arrangements and therefore has not recorded a contingent liability in the condensed consolidated balance sheets. | |
Credit_Agreement
Credit Agreement | 6 Months Ended |
Jun. 30, 2014 | |
Credit Agreement | ' |
Credit Agreement | ' |
15.Credit Agreement | |
On June 19, 2014, Envestnet and certain of its subsidiaries entered into a credit agreement (the “Credit Agreement”) with a group of banks (the “Banks”), for which Bank of Montreal is acting as administrative agent, pursuant to which the Banks agreed to provide an unsecured revolving credit facility of $70,000 with a sublimit for the issuance of letters of credit of $5,000. Subject to certain conditions, Envestnet has the right to increase the facility by up to $25,000. The Credit Agreement is scheduled to terminate on June 19, 2017, at which time any aggregate principal amount of borrowings outstanding becomes payable in full. Any borrowings made under the Credit Agreement will accrue interest at rates between 1.25 percent and 1.75 percent above LIBOR based on the Company’s total leverage ratio. There is also a commitment fee equal to 0.25 percent per annum on the daily unused portion of the facility. | |
The Credit Agreement contains customary conditions, representations and warranties, affirmative and negative covenants and events of default. The covenants include certain financial covenants requiring Envestnet to maintain compliance with a maximum senior leverage ratio, a maximum total leverage ratio, a minimum interest coverage ratio and minimum adjusted EBITDA, and provisions that limit the ability of Envestnet and its subsidiaries to incur debt, make investments, sell assets, create liens, engage in transactions with affiliates, engage in mergers and acquisitions, pay dividends and other restricted payments, grant negative pledges and change their business activities. Upon the occurrence of certain financial or economic events, significant corporate events, or certain other events constituting an event of default under the Credit Agreement, all borrowings outstanding may be declared immediately due and payable and all commitments under the agreement may be terminated. The Company had no borrowings under the Credit Agreement at June 30, 2014. The Company was in compliance with all covenants of the Credit Agreement as of June 30, 2014. | |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements - On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |
Business_Acquisitions_Tables
Business Acquisitions (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Business acquisitions | ' | |||||||
Schedule of consideration in the acquisition | ' | |||||||
Cash consideration | $ | 8,992 | ||||||
Contingent consideration | 15,738 | |||||||
$ | 24,730 | |||||||
Wealth Management Solutions [Member] | ' | |||||||
Business acquisitions | ' | |||||||
Schedule of pro forma financial information | ' | |||||||
Three Months Ended | Six Months Ended | |||||||
Revenues | $ | 68,247 | $ | 130,705 | ||||
Net loss | (6,677 | ) | (11,276 | ) | ||||
Net loss per share: | ||||||||
Basic | (0.21 | ) | (0.35 | ) | ||||
Diluted | (0.21 | ) | (0.35 | ) | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Property and Equipment | ' | |||||||||||||
Schedule of components of property and equipment | ' | |||||||||||||
June 30, | December 31, | |||||||||||||
Estimated Useful Life | 2014 | 2013 | ||||||||||||
Cost: | ||||||||||||||
Office furniture and fixtures | 5-7 years | $ | 4,921 | $ | 4,266 | |||||||||
Computer equipment and software | 3 years | 29,743 | 26,910 | |||||||||||
Other office equipment | 5 years | 598 | 598 | |||||||||||
Leasehold improvements | Shorter of the lease term or useful life of the asset | 9,652 | 8,299 | |||||||||||
44,914 | 40,073 | |||||||||||||
Less accumulated depreciation and amortization | (30,349 | ) | (27,307 | ) | ||||||||||
Property and equipment, net | $ | 14,565 | $ | 12,766 | ||||||||||
Schedule of depreciation and amortization expense | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Depreciation and amortization expense | $ | 1,553 | $ | 1,095 | $ | 3,042 | $ | 2,218 | ||||||
Internally_Developed_Software_
Internally Developed Software (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Internally Developed Software | ' | |||||||||||||
Schedule of components of internally developed software | ' | |||||||||||||
June 30, | December 31, | |||||||||||||
Estimated Useful Life | 2014 | 2013 | ||||||||||||
Internally developed software | 5 years | $ | 18,025 | $ | 16,374 | |||||||||
Less accumulated amortization | (11,631 | ) | (10,634 | ) | ||||||||||
Internally developed software, net | $ | 6,394 | $ | 5,740 | ||||||||||
Schedule of amortization expense | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Amortization expense | $ | 508 | $ | 418 | $ | 997 | $ | 829 | ||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||||
Schedule of components of intangible assets | ' | |||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||
Useful Life | Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||
Customer lists | 4 - 12 years | $ | 42,403 | $ | (17,665 | ) | $ | 24,738 | $ | 42,103 | $ | (14,593 | ) | $ | 27,510 | |||||||
Proprietary technologies | 1.5 - 8 years | 9,978 | (4,482 | ) | 5,496 | 9,580 | (2,792 | ) | 6,788 | |||||||||||||
Trade names | 5 years | 2,090 | (926 | ) | 1,164 | 2,090 | (690 | ) | 1,400 | |||||||||||||
Total intangible assets | $ | 54,471 | $ | (23,073 | ) | $ | 31,398 | $ | 53,773 | $ | (18,075 | ) | $ | 35,698 | ||||||||
Schedule of amortization expense | ' | |||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Amortization expense | $ | 2,554 | $ | 1,568 | $ | 4,998 | $ | 3,152 | ||||||||||||||
Other_NonCurrent_Assets_Tables
Other Non-Current Assets (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Other Non-Current Assets | ' | |||||||
Schedule of components of other non-current assets | ' | |||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Investment in private company | $ | 1,250 | $ | 1,250 | ||||
Deposits: | ||||||||
Lease | 1,784 | 1,751 | ||||||
Other | 436 | 286 | ||||||
Other | 1,640 | 1,642 | ||||||
$ | 5,110 | $ | 4,929 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Fair Value Measurements | ' | ||||
Summary of changes in the fair value of the Company's Level 3 liability | ' | ||||
Fair Value of | |||||
Contingent | |||||
Consideration | |||||
Liability | |||||
Balance at December 31, 2013 | $ | 17,305 | |||
Settlement of contingent consideration liability | (158 | ) | |||
Measurement period adjustment | (122 | ) | |||
Fair market value adjustment | (460 | ) | |||
Imputed interest | 824 | ||||
Balance at June 30, 2014 | $ | 17,389 | |||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accrued Expenses | ' | |||||||
Schedule of components of accrued expenses | ' | |||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued investment manager fees | $ | 22,398 | $ | 19,310 | ||||
Accrued compensation and related taxes | 9,181 | 12,125 | ||||||
Accrued professional services | 500 | 694 | ||||||
Accrued restructuring charges | — | 551 | ||||||
Other accrued expenses | 1,604 | 2,562 | ||||||
$ | 33,683 | $ | 35,242 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Income Taxes | ' | |||||||||||||
Schedule of income before income tax provision, income tax provision and the effective tax rate for the Company's income from operations | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Income before income tax provision | $ | 6,005 | $ | 1,943 | $ | 10,157 | $ | 2,536 | ||||||
Income tax provision | 2,355 | 825 | 3,639 | 877 | ||||||||||
Effective tax rate | 39.2 | % | 42.5 | % | 35.8 | % | 34.6 | % | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Schedule of employee stock-based compensation expense under the Company's plans | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Employee stock-based compensation expense | $ | 3,199 | $ | 1,960 | $ | 5,767 | $ | 4,266 | ||||||
Tax effect on employee stock-based compensation expense | (1,280 | ) | (832 | ) | (2,307 | ) | (1,475 | ) | ||||||
Net effect on income | $ | 1,919 | $ | 1,128 | $ | 3,460 | $ | 2,791 | ||||||
Schedule of weighted average assumptions used to value stock options granted | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Grant date fair value of stock options | $ | — | $ | — | $ | 16.81 | $ | 6.11 | ||||||
Volatility | — | — | 38.7 | % | 40.4 | % | ||||||||
Risk-free interest rate | — | — | 1.8 | % | 1.0 | % | ||||||||
Dividend yield | — | — | 0.0 | % | 0.0 | % | ||||||||
Expected term (in years) | — | — | 6.0 | 6.0 | ||||||||||
Summary of stock option activity under the Company's plans | ' | |||||||||||||
Options | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic Value | ||||||||||||
Exercise Price | Remaining | |||||||||||||
Contractual | ||||||||||||||
Life (Years) | ||||||||||||||
Outstanding as of December 31, 2013 | 4,637,471 | $ | 9.04 | |||||||||||
Granted | 155,753 | 41.84 | ||||||||||||
Exercised | (95,609 | ) | 8.77 | |||||||||||
Forfeited | (4,150 | ) | 9 | |||||||||||
Outstanding as of March 31, 2014 | 4,693,465 | 10.13 | 5.3 | $ | 141,293 | |||||||||
Granted | — | |||||||||||||
Exercised | (95,352 | ) | 8.14 | |||||||||||
Forfeited | (3,300 | ) | 7.8 | |||||||||||
Outstanding as of June 30, 2014 | 4,594,813 | 10.17 | 5 | $ | 178,031 | |||||||||
Options exercisable | 3,748,286 | 8.73 | 4.5 | $ | 150,653 | |||||||||
Summary of the activity for unvested restricted stock awards granted under the Company's plans | ' | |||||||||||||
Weighted- | ||||||||||||||
Average Grant | ||||||||||||||
Number of | Date Fair Value | |||||||||||||
Shares | per Share | |||||||||||||
Balance at December 31, 2013 | 901,551 | $ | 16.5 | |||||||||||
Granted | 240,626 | 41.83 | ||||||||||||
Vested | (116,706 | ) | 14.22 | |||||||||||
Forfeited | (10,324 | ) | 26.94 | |||||||||||
Balance at March 31, 2014 | 1,015,147 | 22.69 | ||||||||||||
Granted | — | — | ||||||||||||
Vested | (5,671 | ) | 24.6 | |||||||||||
Forfeited | (4,312 | ) | 29.79 | |||||||||||
Balance at June 30, 2014 | 1,005,164 | 22.65 | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Schedule of reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to Envestnet, Inc.: | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net income attributable to Envestnet, Inc. | $ | 3,719 | $ | 1,118 | $ | 6,713 | $ | 1,659 | ||||||
Basic number of weighted-average shares outstanding | 34,547,277 | 32,661,196 | 34,332,759 | 32,518,943 | ||||||||||
Effect of dilutive shares: | ||||||||||||||
Options to purchase common stock | 2,166,237 | 1,805,969 | 2,198,089 | 1,605,065 | ||||||||||
Common warrants | — | 609,489 | — | 523,020 | ||||||||||
Unvested restricted stock | 92,244 | 87,452 | 195,273 | 113,540 | ||||||||||
Diluted number of weighted-average shares outstanding | 36,805,758 | 35,164,106 | 36,726,121 | 34,760,568 | ||||||||||
Net income per share attribuatable to Envestnet, Inc.: | ||||||||||||||
Basic | $ | 0.11 | $ | 0.03 | $ | 0.20 | $ | 0.05 | ||||||
Diluted | $ | 0.10 | $ | 0.03 | $ | 0.18 | $ | 0.05 | ||||||
Schedule of anti-dilutive securities excluded from computation of diluted net income per share attributable to Envestnet, Inc. | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Options to purchase common stock | 155,753 | — | 155,753 | — | ||||||||||
Unvested restricted stock | — | 348,139 | — | 348,139 | ||||||||||
Major_Customers_Tables
Major Customers (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Major Customers | ' | |||||||||
Summary of total revenues major customers | ' | |||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | June 30, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
Fidelity | 19 | % | 23 | % | 19 | % | 22 | % | ||
Organization_and_Description_o1
Organization and Description of Business (Details) | 6 Months Ended |
Jun. 30, 2014 | |
state | |
item | |
Organization and Description of Business | ' |
Number of RIAs | 4 |
Number of states with which the broker-dealer is registered | 50 |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 18, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Other Income | ' | ' | ' |
Cash received for certain expenses from vendor | $1,825 | ' | ' |
Gain from reimbursement of certain expenses from vendor | ' | $1,825 | $1,825 |
Basis_of_Presentation_Details_
Basis of Presentation (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Feb. 01, 2014 |
Non-controlling Interest | ' | ' | ' |
Net loss attributable to noncontrolling interest | ($69) | ($195) | ' |
Envestnet Retirement Solutions LLC [Member] | ' | ' | ' |
Non-controlling Interest | ' | ' | ' |
Ownership interest (as a percent) | ' | ' | 64.50% |
Net loss attributable to noncontrolling interest | $69 | $195 | ' |
Business_Acquisitions_Details
Business Acquisitions (Details) (USD $) | 6 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Feb. 01, 2014 | Feb. 01, 2014 | 20-May-14 | Jul. 09, 2014 | 20-May-14 | Jul. 09, 2014 | 20-May-14 | Jul. 09, 2014 | Aug. 11, 2014 | Jul. 01, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
Envestnet Retirement Solutions LLC [Member] | Corporate Joint Venture [Member] | Klein Decisions Inc [Member] | Klein Decisions Inc [Member] | Klein Decisions Inc [Member] | Klein Decisions Inc [Member] | Klein Decisions Inc [Member] | Klein Decisions Inc [Member] | Placemark Holdings Inc [Member] | Wealth Management Solutions [Member] | Wealth Management Solutions [Member] | Wealth Management Solutions [Member] | ||
Envestnet Retirement Solutions LLC [Member] | Envestnet Retirement Solutions LLC [Member] | Envestnet Retirement Solutions LLC [Member] | Envestnet Retirement Solutions LLC [Member] | Envestnet Retirement Solutions LLC [Member] | Envestnet Retirement Solutions LLC [Member] | ||||||||
Commercial Paper [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||
Business acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | 64.50% | 57.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total consideration | ' | ' | ' | ' | ' | ' | ' | $1,175 | ' | ' | $24,730 | ' | ' |
Contingent consideration in cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000 | 23,000 |
Contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,738 | ' | 17,389 |
Contingent consideration, undiscounted liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,137 | 19,137 |
Liability discount rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% |
Contingent consideration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years |
Contingent consideration, future undiscounted payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
15-Aug-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | 6,000 |
15-Aug-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,437 | 6,437 |
15-Aug-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,700 | 6,700 |
Imputed interest expense on contingent consideration | 824 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 412 | 824 |
Fair market value adjustment on contingent consideration | -460 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 460 | ' |
Consideration transferred in acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid to owners | ' | ' | ' | 1,500 | ' | ' | ' | ' | ' | 66,000 | 8,992 | ' | ' |
Amount | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' | ' | ' | ' | ' |
Period of payments | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subscription ownership percent acquired (as a percent) | ' | ' | ' | ' | 11.7 | ' | ' | ' | ' | ' | ' | ' | ' |
Subscription ownership percent acquired purchase price | ' | ' | ' | ' | 1,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Period to repurchase issued units in the subscription agreement | ' | ' | ' | ' | ' | ' | '18 months | ' | '36 months | ' | ' | ' | ' |
Subscription ownership percent acquired repurchase price | ' | ' | ' | ' | $1,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Acquisitions_Details_
Business Acquisitions (Details 2) (Wealth Management Solutions [Member], USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Wealth Management Solutions [Member] | ' | ' |
Pro forma financial information | ' | ' |
Revenues | $68,247 | $130,705 |
Net loss | ($6,677) | ($11,276) |
Net loss per share: | ' | ' |
Basic (in dollars per share) | ($0.21) | ($0.35) |
Diluted (in dollars per share) | ($0.21) | ($0.35) |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Property and equipment, cost: | ' | ' |
Property and equipment, gross | $44,914 | $40,073 |
Less accumulated depreciation and amortization | -30,349 | -27,307 |
Property and equipment, net | 14,565 | 12,766 |
Furniture and Fixtures [Member] | ' | ' |
Property and equipment, cost: | ' | ' |
Property and equipment, gross | 4,921 | 4,266 |
Furniture and Fixtures [Member] | Minimum [Member] | ' | ' |
Property and equipment, cost: | ' | ' |
Estimated Useful Life | '5 years | ' |
Furniture and Fixtures [Member] | Maximum [Member] | ' | ' |
Property and equipment, cost: | ' | ' |
Estimated Useful Life | '7 years | ' |
Computer Equipment and Software [Member] | ' | ' |
Property and equipment, cost: | ' | ' |
Estimated Useful Life | '3 years | ' |
Property and equipment, gross | 29,743 | 26,910 |
Office Equipment [Member] | ' | ' |
Property and equipment, cost: | ' | ' |
Estimated Useful Life | '5 years | ' |
Property and equipment, gross | 598 | 598 |
Leasehold Improvements [Member] | ' | ' |
Property and equipment, cost: | ' | ' |
Property and equipment, gross | $9,652 | $8,299 |
Property_and_Equipment_Details1
Property and Equipment (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Depreciation and amortization expense for property and equipment | ' | ' | ' | ' |
Depreciation and amortization expense | $1,553 | $1,095 | $3,042 | $2,218 |
Internally_Developed_Software_1
Internally Developed Software (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Internally Developed Software | ' | ' |
Estimated Useful Life | '5 years | ' |
Internally developed software | $18,025 | $16,374 |
Less accumulated amortization | -11,631 | -10,634 |
Internally developed software, net | $6,394 | $5,740 |
Internally_Developed_Software_2
Internally Developed Software (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Internally Developed Software | ' | ' | ' | ' |
Amortization expense | $508 | $418 | $997 | $829 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Components of intangible assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | $54,471 | ' | $54,471 | ' | $53,773 |
Accumulated Amortization | -23,073 | ' | -23,073 | ' | -18,075 |
Net Carrying Amount | 31,398 | ' | 31,398 | ' | 35,698 |
Amortization expense for intangible assets | ' | ' | ' | ' | ' |
Amortization expense | 2,554 | 1,568 | 4,998 | 3,152 | ' |
Customer Lists [Member] | ' | ' | ' | ' | ' |
Components of intangible assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 42,403 | ' | 42,403 | ' | 42,103 |
Accumulated Amortization | -17,665 | ' | -17,665 | ' | -14,593 |
Net Carrying Amount | 24,738 | ' | 24,738 | ' | 27,510 |
Customer Lists [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Components of intangible assets | ' | ' | ' | ' | ' |
Useful Life | ' | ' | '4 years | ' | ' |
Customer Lists [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Components of intangible assets | ' | ' | ' | ' | ' |
Useful Life | ' | ' | '12 years | ' | ' |
Developed Technology Rights [Member] | ' | ' | ' | ' | ' |
Components of intangible assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 9,978 | ' | 9,978 | ' | 9,580 |
Accumulated Amortization | -4,482 | ' | -4,482 | ' | -2,792 |
Net Carrying Amount | 5,496 | ' | 5,496 | ' | 6,788 |
Developed Technology Rights [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Components of intangible assets | ' | ' | ' | ' | ' |
Useful Life | ' | ' | '1 year 6 months | ' | ' |
Developed Technology Rights [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Components of intangible assets | ' | ' | ' | ' | ' |
Useful Life | ' | ' | '8 years | ' | ' |
Trade Names [Member] | ' | ' | ' | ' | ' |
Components of intangible assets | ' | ' | ' | ' | ' |
Useful Life | ' | ' | '5 years | ' | ' |
Gross Carrying Amount | 2,090 | ' | 2,090 | ' | 2,090 |
Accumulated Amortization | -926 | ' | -926 | ' | -690 |
Net Carrying Amount | $1,164 | ' | $1,164 | ' | $1,400 |
Other_NonCurrent_Assets_Detail
Other Non-Current Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Non-Current Assets | ' | ' |
Investment in private company | $1,250 | $1,250 |
Deposits: | ' | ' |
Lease | 1,784 | 1,751 |
Other | 436 | 286 |
Other | 1,640 | 1,642 |
Total other non-current assets | $5,110 | $4,929 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Inputs, Level 1 [Member], Fair Value, Measurements, Recurring [Member], Money Market Funds [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ' | ' |
Fair Value Measurements | ' | ' |
Cash and cash equivalents | $44,829 | $32,358 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Changes in the fair value of Contingent Consideration Liability | ' |
Fair value asset transfers between Levels 1, 2 and 3 | $0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' |
Changes in the fair value of Contingent Consideration Liability | ' |
Balance at the beginning of the period | 17,305 |
Settlement of contingent consideration liability | -158 |
Measurement period adjustment | -122 |
Fair market value adjustment | -460 |
Imputed interest | 824 |
Balance at the end of the period | $17,389 |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of accrued expenses | ' | ' |
Accrued investment manager fees | $22,398 | $19,310 |
Accrued compensation and related taxes | 9,181 | 12,125 |
Accrued professional services | 500 | 694 |
Accrued restructuring charges | ' | 551 |
Other accrued expenses | 1,604 | 2,562 |
Total accrued expenses | $33,683 | $35,242 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income tax provision and the effective tax rate | ' | ' | ' | ' |
Income before income tax provision | $6,005 | $1,943 | $10,157 | $2,536 |
Income tax provision | $2,355 | $825 | $3,639 | $877 |
Effective tax rate (as a percent) | 39.20% | 42.50% | 35.80% | 34.60% |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income taxes | ' | ' |
Unrecognized tax benefits that would impact effective tax rate, if recognized | $1,673 | ' |
Reasonably possible decrease in liability for unrecognized tax benefits in the next twelve months | 200 | ' |
Accrued interest and penalties on unrecognized tax benefits | 562 | 636 |
Accrued Expenses and Other Noncurrent Liabilities [Member] | ' | ' |
Income taxes | ' | ' |
Liability for unrecognized tax benefits | $2,426 | $2,693 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Stock-Based Compensation | ' | ' | ' | ' |
Maximum number of stock options and restricted stock available for future issuance | 921,799 | ' | 921,799 | ' |
Summary of employee stock-based compensation expense | ' | ' | ' | ' |
Employee stock-based compensation expense | $3,199 | $1,960 | $5,767 | $4,266 |
Tax effect on employee stock-based compensation expense | -1,280 | -832 | -2,307 | -1,475 |
Net effect on income | $1,919 | $1,128 | $3,460 | $2,791 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Summary of weighted average assumptions used to value options granted | ' | ' | ' | ' |
Grant date fair value of stock options (in dollars per share) | ' | ' | $16.81 | $6.11 |
Volatility (as a percent) | ' | ' | 38.70% | 40.40% |
Risk-free interest rate (as a percent) | ' | ' | 1.80% | 1.00% |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% |
Expected term | ' | ' | '6 years | '6 years |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 3) (Employee and Other Stock Option [Member], USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 |
Options | ' | ' |
Outstanding at the beginning of the period (in shares) | 4,693,465 | 4,637,471 |
Granted (in shares) | ' | 155,753 |
Exercised (in shares) | -95,352 | -95,609 |
Forfeited (in shares) | -3,300 | -4,150 |
Outstanding at the end of the period (in shares) | 4,594,813 | 4,693,465 |
Options exercisable (in shares) | 3,748,286 | ' |
Weighted-Average Exercise Price | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $10.13 | $9.04 |
Granted (in dollars per share) | ' | $41.84 |
Exercised (in dollars per share) | $8.14 | $8.77 |
Forfeited (in dollars per share) | $7.80 | $9 |
Outstanding at the end of the period (in dollars per share) | $10.17 | $10.13 |
Options exercisable (in dollars per share) | $8.73 | ' |
Weighted-Average Remaining Contractual Life | ' | ' |
Outstanding | '5 years | '5 years 3 months 18 days |
Options exercisable | '4 years 6 months | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding (in dollars) | $178,031 | $141,293 |
Options exercisable (in dollars) | $150,653 | ' |
Minimum [Member] | ' | ' |
Additional disclosures | ' | ' |
Exercise prices of stock options outstanding (in dollars per share) | $0.11 | ' |
Maximum [Member] | ' | ' |
Additional disclosures | ' | ' |
Exercise prices of stock options outstanding (in dollars per share) | $41.84 | ' |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 4) (Restricted Stock [Member], USD $) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | |
item | item | ||
Restricted Stock [Member] | ' | ' | ' |
Stock-Based compensation | ' | ' | ' |
Award vesting rights proportion (as a percent) | ' | ' | 33.00% |
Number of vesting rights anniversaries | 3 | ' | 3 |
Number of Shares | ' | ' | ' |
Balance at the beginning of the period (in shares) | 1,015,147 | 901,551 | 901,551 |
Granted (in shares) | ' | 240,626 | ' |
Vested (in shares) | -5,671 | -116,706 | ' |
Forfeited (in shares) | -4,312 | -10,324 | ' |
Balance at the end of the period (in shares) | 1,005,164 | 1,015,147 | 1,005,164 |
Weighted-Average Grant Date Fair Value per Share | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | $22.69 | $16.50 | $16.50 |
Granted (in dollars per share) | ' | $41.83 | ' |
Vested (in dollars per share) | $24.60 | $14.22 | ' |
Forfeited (in dollars per share) | $29.79 | $26.94 | ' |
Balance at the end of the period (in dollars per share) | $22.65 | $22.69 | $22.65 |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details 5) (USD $) | 6 Months Ended | 0 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Employee and Other Stock Option [Member] | Employee and Other Stock Option [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock with Performance Conditions and Subsequent Service Conditions [Member] | Restricted Stock with Performance Conditions and Subsequent Service Conditions [Member] | Restricted Stock with Performance Conditions and Subsequent Service Conditions [Member] | |
Vesting Based on Service [Member] | Vesting Based on Service [Member] | Minimum [Member] | Maximum [Member] | ||||
Stock-Based compensation | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense related to unvested stock options | $3,633 | $3,633 | ' | ' | ' | ' | ' |
Unrecognized compensation expense related to unvested stock options and restricted stock, weighted-average recognition period | '2 years 3 months 18 days | ' | '2 years 4 months 24 days | ' | ' | '9 months | '2 years 9 months |
Unrecognized compensation expense related to unvested restricted | ' | ' | ' | $11,178 | $4,240 | ' | ' |
Unvested restricted stock, service condition | ' | ' | ' | ' | '2 years | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reconciliation of the numerators and denominators used in computing basic and diluted net income per share | ' | ' | ' | ' |
Net income attributable to Envestnet, Inc. | $3,719 | $1,118 | $6,713 | $1,659 |
Basic number of weighted-average shares outstanding | 34,547,277 | 32,661,196 | 34,332,759 | 32,518,943 |
Effect of dilutive shares: | ' | ' | ' | ' |
Options to purchase common stock (in shares) | 2,166,237 | 1,805,969 | 2,198,089 | 1,605,065 |
Common warrants (in shares) | ' | 609,489 | ' | 523,020 |
Unvested restricted stock (in shares) | 92,244 | 87,452 | 195,273 | 113,540 |
Diluted number of weighted-average shares outstanding | 36,805,758 | 35,164,106 | 36,726,121 | 34,760,568 |
Net income per share attributable to Envestnet, Inc.: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.11 | $0.03 | $0.20 | $0.05 |
Diluted (in dollars per share) | $0.10 | $0.03 | $0.18 | $0.05 |
Earnings_Per_Share_Details_2
Earnings Per Share (Details 2) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | |
Employee and Other Stock Option [Member] | Employee and Other Stock Option [Member] | Restricted Stock [Member] | Restricted Stock [Member] | |
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted net income per share | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted net income per share (in shares) | 155,753 | 155,753 | 348,139 | 348,139 |
Major_Customers_Details
Major Customers (Details) (Sales Revenue, Services, Net [Member], Customer Concentration Risk [Member], Fidelity [Member]) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
customer | ||||
Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member] | Fidelity [Member] | ' | ' | ' | ' |
Major Customers | ' | ' | ' | ' |
Number of customers accounted for as major customer | ' | ' | 1 | ' |
Major customer as a percentage of the company's total | 19.00% | 23.00% | 19.00% | 22.00% |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 6 Months Ended |
Jun. 30, 2014 | |
item | |
Commitments and Contingencies | ' |
Number of previous claims experienced | 0 |
Credit_Agreement_Details
Credit Agreement (Details) (USD $) | 0 Months Ended | |
In Thousands, unless otherwise specified | Jun. 19, 2014 | Jun. 30, 2014 |
Letter of Credit [Member] | ' | ' |
Credit Agreements | ' | ' |
Line of credit amount | $5,000 | ' |
Line of Credit [Member] | ' | ' |
Credit Agreements | ' | ' |
Line of credit amount | 70,000 | ' |
Amount facility may be increased subject to certain conditions | 25,000 | ' |
Variable rate basis | 'LIBOR | ' |
Commitment fee | 0.25% | ' |
Amount outstanding | ' | $0 |
Minimum [Member] | Line of Credit [Member] | ' | ' |
Credit Agreements | ' | ' |
Spread on variable rate basis | 1.25% | ' |
Maximum [Member] | Line of Credit [Member] | ' | ' |
Credit Agreements | ' | ' |
Spread on variable rate basis | 1.75% | ' |