Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 21, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34835 | ||
Entity Registrant Name | Envestnet, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-1409613 | ||
Entity Address, Address Line One | 1000 Chesterbrook Boulevard | ||
Entity Address, Address Line Two | Suite 250 | ||
Entity Address, City or Town | Berwyn | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 60601 | ||
City Area Code | 312 | ||
Local Phone Number | 827-2800 | ||
Title of 12(b) Security | Common Stock, par value $0.005 per share | ||
Trading Symbol | ENV | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.8 | ||
Entity Common Stock, Shares Outstanding | 54,019,836 | ||
Documents Incorporated by Reference | Part III incorporates by reference portions of the registrant’s definitive proxy statement for the annual meeting of stockholders, which will be filed within 120 days after the close of the 2022 fiscal year. | ||
Entity Central Index Key | 0001337619 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Denver, Colorado |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 162,173 | $ 429,279 |
Fees receivable, net | 101,696 | 95,291 |
Prepaid expenses and other current assets | 41,363 | 42,706 |
Total current assets | 305,232 | 567,276 |
Property and equipment, net | 62,443 | 50,215 |
Internally developed software, net | 184,558 | 133,659 |
Intangible assets, net | 379,995 | 400,396 |
Goodwill | 998,414 | 925,154 |
Operating lease right-of-use assets, net | 81,596 | 90,714 |
Other non-current assets | 99,927 | 73,768 |
Total assets | 2,112,165 | 2,241,182 |
Current liabilities: | ||
Accrued expenses and other liabilities | 216,532 | 225,159 |
Accounts payable | 17,334 | 19,092 |
Operating lease liabilities | 11,949 | 10,999 |
Deferred revenue | 36,363 | 33,473 |
Current portion of long-term debt | 44,886 | 0 |
Total current liabilities | 327,064 | 288,723 |
Long-term debt | 871,769 | 848,862 |
Non-current operating lease liabilities | 110,652 | 105,920 |
Deferred tax liabilities, net | 16,196 | 21,021 |
Other non-current liabilities | 18,880 | 17,114 |
Total liabilities | 1,344,561 | 1,281,640 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.005, 50,000,000 shares authorized; no shares issued and outstanding as of December 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock, par value $0.005, 500,000,000 shares authorized; 70,025,733 and 68,879,152 shares issued as of December 31, 2022 and December 31, 2021, respectively; 54,013,826 and 54,793,088 shares outstanding as of December 31, 2022 and December 31, 2021, respectively | 350 | 344 |
Additional paid-in capital | 1,135,284 | 1,131,628 |
Accumulated deficit | (118,927) | (37,988) |
Treasury stock at cost, 16,011,907 and 14,086,064 shares as of December 31, 2022 and December 31, 2021, respectively | (253,551) | (134,996) |
Accumulated other comprehensive loss | (8,589) | (1,899) |
Total stockholders’ equity | 754,567 | 957,089 |
Non-controlling interest | 13,037 | 2,453 |
Total equity | 767,604 | 959,542 |
Total liabilities and equity | $ 2,112,165 | $ 2,241,182 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 70,025,733 | 68,879,152 |
Common stock, shares outstanding (in shares) | 54,013,826 | 54,793,088 |
Treasury stock, shares (in shares) | 16,011,907 | 14,086,064 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Total revenues | $ 1,239,784 | $ 1,186,517 | $ 998,230 |
Operating expenses: | |||
Cost of revenues | 468,460 | 423,723 | 305,929 |
Compensation and benefits | 490,725 | 432,829 | 398,970 |
General and administration | 216,075 | 171,657 | 160,229 |
Depreciation and amortization | 130,548 | 117,767 | 113,661 |
Total operating expenses | 1,305,808 | 1,145,976 | 978,789 |
Income (loss) from operations | (66,024) | 40,541 | 19,441 |
Other income (expense): | |||
Interest income | 4,184 | 827 | 1,112 |
Interest expense | (16,843) | (16,931) | (31,504) |
Other income (expense), net | 264 | (4,076) | 2,906 |
Total other expense, net | (12,395) | (20,180) | (27,486) |
Income (loss) before income tax provision (benefit) | (78,419) | 20,361 | (8,045) |
Income tax provision (benefit) | 7,061 | 7,667 | (5,401) |
Net income (loss) | (85,480) | 12,694 | (2,644) |
Add: Net (income) loss attributable to non-controlling interest | 4,541 | 602 | (466) |
Net income (loss) attributable to Envestnet, Inc. | $ (80,939) | $ 13,296 | $ (3,110) |
Net income (loss) per share attributable to Envestnet, Inc.: | |||
Basic (in dollars per share) | $ (1.47) | $ 0.24 | $ (0.06) |
Diluted (in dollars per share) | $ (1.59) | $ 0.24 | $ (0.06) |
Weighted average common shares outstanding: | |||
Basic (in shares) | 55,199,482 | 54,470,975 | 53,589,232 |
Diluted (in shares) | 56,842,125 | 55,384,096 | 53,589,232 |
Total recurring revenues | |||
Revenues: | |||
Total revenues | $ 1,216,072 | $ 1,163,365 | $ 967,454 |
Asset-based | |||
Revenues: | |||
Total revenues | 738,228 | 709,376 | 540,947 |
Operating expenses: | |||
Cost of revenues | 430,345 | 393,717 | 278,569 |
Subscription-based | |||
Revenues: | |||
Total revenues | 477,844 | 453,989 | 426,507 |
Operating expenses: | |||
Cost of revenues | 30,613 | 29,445 | 26,934 |
Professional services and other revenues | |||
Revenues: | |||
Total revenues | 23,712 | 23,152 | 30,776 |
Operating expenses: | |||
Cost of revenues | $ 7,502 | $ 561 | $ 426 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) attributable to Envestnet, Inc. | $ (80,939) | $ 13,296 | $ (3,110) |
Other comprehensive income (loss), net of taxes: | |||
Foreign currency translation gains (losses), net | (6,690) | (1,501) | 1,351 |
Comprehensive income (loss) attributable to Envestnet, Inc. | $ (87,629) | $ 11,795 | $ (1,759) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Treasury Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Non-controlling Interest |
Common stock, shares issued period start (in shares) at Dec. 31, 2019 | 66,320,706 | |||||||||
Balance at period start at Dec. 31, 2019 | $ 867,576 | $ (1,138) | $ 331 | $ (90,965) | $ 1,037,141 | $ (1,749) | $ (75,664) | $ (1,138) | $ (1,518) | |
Treasury stock, common shares period start (in shares) at Dec. 31, 2019 | (13,479,000) | |||||||||
Increase (decrease) in shareholders' equity | ||||||||||
Exercise of stock options (in shares) | 705,333 | |||||||||
Exercise of stock options | 10,760 | $ 4 | 10,756 | |||||||
Issuance of common stock - vesting of restricted stock units (in shares) | 804,982 | |||||||||
Issuance of common stock - vesting of restricted stock units | 4 | $ 4 | ||||||||
Issuance of common stock (in shares) | 1,685 | |||||||||
Issuance of common stock | 126 | 126 | ||||||||
Stock-based compensation expense | 56,292 | 56,292 | ||||||||
Shares withheld to satisfy tax withholdings (in shares) | (260,171) | |||||||||
Shares withheld to satisfy tax withholdings | (19,501) | $ (19,501) | ||||||||
Transfer of non-controlling units, net of tax | 527 | 666 | (139) | |||||||
Capital contribution - non-controlling interest | 606 | (66) | 672 | |||||||
Issuance of Convertible Notes due 2025, net of offering costs and taxes of $8,694 | 61,859 | 61,859 | ||||||||
Foreign currency translation gain (loss), net of taxes | 1,351 | 1,351 | ||||||||
Net income (loss) | (2,644) | (3,110) | 466 | |||||||
Common stock, shares issued period end (in shares) at Dec. 31, 2020 | 67,832,706 | |||||||||
Balance at period end at Dec. 31, 2020 | 975,818 | $ (79,842) | $ 339 | $ (110,466) | 1,166,774 | $ (108,470) | (398) | (79,912) | $ 28,628 | (519) |
Treasury stock, common shares period end (in shares) at Dec. 31, 2020 | (13,739,171) | |||||||||
Increase (decrease) in shareholders' equity | ||||||||||
Exercise of stock options (in shares) | 76,303 | |||||||||
Exercise of stock options | 2,090 | 2,090 | ||||||||
Issuance of common stock - vesting of restricted stock units (in shares) | 891,466 | |||||||||
Issuance of common stock - vesting of restricted stock units | 5 | $ 5 | ||||||||
Issuance of common stock (in shares) | 78,677 | |||||||||
Issuance of common stock | 4,068 | 4,068 | ||||||||
Stock-based compensation expense | 67,525 | 67,525 | ||||||||
Shares withheld to satisfy tax withholdings (in shares) | (291,405) | |||||||||
Shares withheld to satisfy tax withholdings | (20,529) | $ (20,529) | ||||||||
Share repurchases (in shares) | (55,488) | |||||||||
Share repurchases | (4,001) | $ (4,001) | ||||||||
Capital contribution - non-controlling interest | 3,201 | (127) | 3,328 | |||||||
Foreign currency translation gain (loss), net of taxes | (1,501) | (1,501) | ||||||||
Other | 14 | (232) | 246 | |||||||
Net income (loss) | $ 12,694 | 13,296 | (602) | |||||||
Common stock, shares issued period end (in shares) at Dec. 31, 2021 | 68,879,152 | 68,879,152 | ||||||||
Balance at period end at Dec. 31, 2021 | $ 959,542 | $ 344 | $ (134,996) | 1,131,628 | (1,899) | (37,988) | 2,453 | |||
Treasury stock, common shares period end (in shares) at Dec. 31, 2021 | (14,086,064) | (14,086,064) | ||||||||
Increase (decrease) in shareholders' equity | ||||||||||
Exercise of stock options (in shares) | 82,802 | |||||||||
Exercise of stock options | $ 2,620 | 2,620 | ||||||||
Issuance of common stock - vesting of restricted stock units (in shares) | 1,063,779 | |||||||||
Issuance of common stock - vesting of restricted stock units | 6 | $ 6 | ||||||||
Stock-based compensation expense | 79,581 | 79,581 | ||||||||
Shares withheld to satisfy tax withholdings (in shares) | (356,201) | |||||||||
Shares withheld to satisfy tax withholdings | (23,516) | $ (23,516) | ||||||||
Share repurchases (in shares) | (1,569,642) | |||||||||
Share repurchases | (95,039) | $ (95,039) | ||||||||
Capital contribution - non-controlling interest | 16,037 | 1,288 | 14,749 | |||||||
Foreign currency translation gain (loss), net of taxes | (6,690) | (6,690) | ||||||||
Capped call transactions | (79,585) | (79,585) | ||||||||
Other | 128 | (248) | 376 | |||||||
Net income (loss) | $ (85,480) | (80,939) | (4,541) | |||||||
Common stock, shares issued period end (in shares) at Dec. 31, 2022 | 70,025,733 | 70,025,733 | ||||||||
Balance at period end at Dec. 31, 2022 | $ 767,604 | $ 350 | $ (253,551) | $ 1,135,284 | $ (8,589) | $ (118,927) | $ 13,037 | |||
Treasury stock, common shares period end (in shares) at Dec. 31, 2022 | (16,011,907) | (16,011,907) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | ||
Debt issuance costs and taxes | $ 7,641 | $ 8,694 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES: | |||
Net income (loss) | $ (85,480) | $ 12,694 | $ (2,644) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 130,548 | 117,767 | 113,661 |
Provision for doubtful accounts | 511 | 1,598 | 2,817 |
Deferred income taxes | (3,490) | (320) | (1,884) |
Release of uncertain tax positions | 0 | 0 | (7,101) |
Non-cash compensation expense | 80,333 | 68,020 | 59,637 |
Non-cash interest expense | 7,445 | 5,799 | 18,515 |
Accretion on contingent consideration and purchase liability | 0 | 730 | 1,688 |
Payments of contingent consideration | 0 | (2,360) | 0 |
Fair market value adjustment to contingent consideration liability | 0 | (1,067) | (3,105) |
Gain on settlement of liability | 0 | (1,206) | 0 |
Loss allocations from equity method investments | 8,874 | 7,093 | 5,399 |
Gain on equity method investments | (9,517) | 0 | (4,230) |
Loss on property and equipment disposals | 5,097 | 0 | 0 |
Lease related impairments, including right-of-use assets | 15,750 | 1,537 | 2,661 |
Other | 355 | (293) | (729) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Fees receivable, net | (5,031) | (16,731) | (15,055) |
Prepaid expenses and other current assets | 2,864 | 399 | (9,666) |
Other non-current assets | (4,992) | 2,741 | (1,963) |
Accrued expenses and other liabilities | (24,711) | 53,265 | 22,109 |
Accounts payable | (3,724) | 1,290 | (187) |
Deferred revenue | (305) | (2,080) | (4,125) |
Other non-current liabilities | 4,178 | 1,701 | (5,962) |
Net cash provided by operating activities | 117,037 | 250,577 | 169,836 |
INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (16,172) | (23,731) | (12,088) |
Capitalization of internally developed software | (89,153) | (65,170) | (54,908) |
Investments in private companies | (16,351) | (25,926) | (15,640) |
Acquisitions of businesses, net of cash acquired | (104,100) | (32,794) | (20,257) |
Acquisition of proprietary technology | (15,000) | (25,517) | 0 |
Advance for technology solutions | (4,000) | (3,000) | 0 |
Issuance of notes receivable to equity method investees | (6,350) | 0 | 0 |
Other | 0 | 0 | 2,897 |
Net cash used in investing activities | (251,126) | (176,138) | (99,996) |
FINANCING ACTIVITIES: | |||
Proceeds from borrowings on revolving credit facility | 0 | 0 | 45,000 |
Payments on revolving credit facility | 0 | 0 | (305,000) |
Capital contributions - non-controlling shareholders | 16,037 | 3,201 | 606 |
Payments of deferred consideration on prior acquisitions | 0 | 0 | (1,879) |
Payments of contingent consideration | (743) | (9,276) | 0 |
Payments Of Capped Call | (79,585) | 0 | 0 |
Proceeds from exercise of stock options | 2,620 | 2,090 | 10,760 |
Taxes paid in lieu of shares issued for stock-based compensation | (23,516) | (20,529) | (19,501) |
Share repurchases | (85,750) | (4,001) | 0 |
Finance lease payments | (18,682) | 0 | 0 |
Other | (1,866) | (655) | 4 |
Net cash provided by (used in) financing activities | (127,002) | (29,170) | 232,950 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (6,164) | (555) | (831) |
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (267,255) | 44,714 | 301,959 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD (See Note 2) | 429,428 | 384,714 | 82,755 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (See Note 2) | 162,173 | 429,428 | 384,714 |
Supplemental disclosure of cash flow information - net cash paid during the period for income taxes | 12,120 | 7,920 | 8,304 |
Supplemental disclosure of cash flow information - cash paid during the period for interest | 11,046 | 11,132 | 12,990 |
Supplemental disclosure of non-cash operating, investing and financing activities: | |||
Common stock issued to settle purchase liability | 0 | 4,068 | 126 |
Contingent consideration issued in acquisition of businesses | 0 | 0 | 5,239 |
Internally developed software costs included in accrued expenses and other liabilities | 0 | 591 | 0 |
Leasehold improvements funded by lease incentive | 0 | 164 | 1,806 |
Membership interest liabilities included in other non-current liabilities | 752 | 496 | 3,345 |
Purchase liabilities included in accrued expenses and other liabilities | 0 | 2,951 | 632 |
Purchase of fixed assets included in accounts payable and accrued expenses and other liabilities | 4,206 | 1,328 | 1,841 |
Property and equipment acquired through financing leases | 18,682 | 0 | 0 |
Transfer of non-controlling units | 0 | 0 | 771 |
Treasury stock purchases included in accrued expenses and other liabilities | 9,289 | 0 | 0 |
Right-of-use assets obtained in exchange for lease liabilities, net | 13,211 | 4,596 | 39,370 |
Conversion of equity method investee loan to shares | 2,623 | 0 | 0 |
Convertible Notes due 2023 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Gain (loss) on extinguishment of debt | 13,421 | 0 | 0 |
FINANCING ACTIVITIES: | |||
Repurchase of convertible debt | (312,422) | 0 | 0 |
Convertible Notes due 2025 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Gain (loss) on extinguishment of debt | (15,089) | 0 | 0 |
FINANCING ACTIVITIES: | |||
Proceeds from convertible debt | 0 | 0 | 517,500 |
Debt issuance cost | 0 | 0 | (14,540) |
Repurchase of convertible debt | (181,772) | 0 | 0 |
Convertible Notes due 2027 | |||
FINANCING ACTIVITIES: | |||
Proceeds from convertible debt | 575,000 | 0 | 0 |
Debt issuance cost | $ (16,323) | $ 0 | $ 0 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Envestnet, Inc. ("Envestnet"), through its subsidiaries (collectively, the "Company"), is transforming the way financial advice and insight are delivered. Its mission is to empower financial advisors and service providers with innovative technology, solutions and intelligence. Envestnet has been a leader in helping transform wealth management, working towards its goal of expanding a holistic financial wellness ecosystem so that our clients can deliver an intelligent financial life to their clients. Envestnet is organized around two primary, complementary business segments. Financial information about each business segment is contained in “Note 19—Segment Information”. The business segments are as follows: • Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions to enable them to deliver an Intelligent Financial Life to their clients. Envestnet Wealth Solutions serves its clients principally through the following product and service suites: • Envestnet | Enterprise provides an end-to-end open architecture wealth management platform, through which advisors can construct portfolios for clients. It begins with aggregated household data which then leads to the creation of a financial plan, asset allocation, investment strategy, portfolio management, rebalancing and performance reporting. Advisors have access to nearly 23,000 investment products. Envestnet | Enterprise also sells data aggregation and reporting, data analytics and digital advice capabilities to customers. • Envestnet | Tamarac™ provides leading trading, rebalancing, portfolio accounting, performance reporting and client relationship management software, principally to high‑end RIAs. • Envestnet | MoneyGuide provides leading goals-based financial planning solutions to the financial services industry. The highly adaptable software helps financial advisors add significant value for their clients using best-in-class technology with enhanced integrations to generate financial plans. • Envestnet | Retirement Solutions (“ERS & 401kplans.com”) offers a comprehensive suite of services for advisor-sold retirement plans. Our retirement solutions address the regulatory, data, and investment needs of retirement plans and delivers the information holistically. 401kplans.com is a digital 401(k) retirement plan marketplace that streamlines retirement plan distribution and due diligence among financial advisors and third-party administrators. With Envestnet's retirement solutions marketplace, advisors can employ Envestnet's outsourced fiduciary services for investment selection and monitoring in retirement plan portfolios and can access essential information to make investment recommendations and understand the impact of fund changes to the total cost of their plans. • Envestnet | PMC ® , or Portfolio Management Consultants (“PMC”) provides research and consulting services to assist advisors in creating investment solutions for their clients. These solutions include over 5,000 vetted third-party managed account products, multi-manager portfolios, and fund strategist portfolios, as well as over 950 proprietary products, such as quantitative portfolios and fund strategist portfolios. PMC also offers portfolio overlay and tax optimization services. • Envestnet | Redi2 (“Redi2”) offers revenue management and hosted fee-billing solutions in the global financial services industry. Redi2's platform enables fee calculation, invoice creation, payouts and accounting, and billing compliance. Redi2 solutions caters to different segments of the market with three different product lines: Revenue Manager which provides client revenue accounting and billing services for asset managers; Wealth Manager which delivers multi-party billing and payouts for broker-dealers and turnkey asset management programs and BillFin™ which offers advisory billing and invoicing for financial advisors. • Envestnet Data & Analytics – a leading data aggregation, data intelligence, and experiences platform. Envestnet Data & Analytics enables consumers to aggregate financial accounts within client applications and provides to clients the functionality to gather, refine, and aggregate massive sets of consumer permissioned data for use in financial applications, reports, market research analysis, and application programming interfaces (“APIs”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company follows accounting standards established by the Financial Accounting Standards Board (“FASB”) to ensure consistent reporting of financial condition, results of operations and cash flows. References to accounting principles generally accepted in the United States (“GAAP”) in these notes are to the FASB Accounting Standards Codification ™ (“ASC”) and related updates (“ASU”). Principles of Consolidation —The consolidated financial statements include the accounts of Envestnet and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Foreign Currency —Accounts for the Envestnet Wealth Solutions segment that are denominated in a non-U.S. currency have been remeasured using the U.S. dollar as the functional currency. Certain accounts within the Envestnet Data & Analytics segment are recorded and measured in foreign currencies. The assets and liabilities for those subsidiaries with a functional currency other than the U.S. dollar are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates. Differences arising from these foreign currency translations are recorded in the consolidated balance sheets as accumulated other comprehensive income (loss) within stockholders' equity. The Company is also subject to gains and losses from foreign currency denominated transactions and the remeasurement of foreign currency denominated balance sheet accounts, both of which are included in other income (expense), net in the consolidated statements of operations. Management Estimates —Management has made certain estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with GAAP. Areas requiring the use of management estimates relate to estimating uncollectible receivables, revenue recognition, valuations and assumptions used for impairment testing of goodwill, intangible and other long-lived assets, right-of-use assets, performance shares issued, contingent consideration, realization of deferred tax assets, uncertain tax positions, sales tax liabilities, operating lease liabilities, fair value of the liability portion of the convertible debt, commitments and contingencies and assumptions used to allocate purchase prices in business combinations. Actual results could differ materially from these estimates under different assumptions or conditions. Revenue Recognition The Company accounts for its revenue arrangements in accordance with FASB Topic 606 - Revenue from Contracts with Customers ("ASC 606"). The Company derives revenues from asset-based and subscription-based services and professional services and other sources. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration that we expect to be entitled to in exchange for those services. All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers. Sales and usage-based taxes are excluded from revenues. The majority of the Company's revenues are recognized when services are provided. Asset-Based Recurring Revenues —Asset-based recurring revenues primarily consist of fees for providing customers continuous access to platform services through the Company’s uniquely customized platforms. These platform services include investment manager research, 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 and are made available to customers throughout the contractual term from the date the customized platform is launched. The asset-based fees the Company earns are generally based upon variable percentages of assets managed or administered on our platforms. The fee percentage varies based on the level and type of services the Company provides to its customers, as well as the values of existing customer accounts. The values of the customer accounts are affected by inflows or outflows of customer funds and market fluctuations. The platform services are substantially the same over each quarter and performed in a similar manner over the contract period, and are considered stand-ready promises. The platform services that are delivered to the customer over the quarter are considered distinct, as the customer benefits distinctly from each increment of our services and each quarter is separately identified in the contract, and are considered to be a single performance obligation. The pricing generally resets each quarter and the pricing structure is consistent throughout the term of the contract. The variable fees are generally calculated and billed quarterly in advance based on preceding quarter-end values and the variable amounts earned from the platform services relate specifically to the benefits transferred to the customer during that month or quarter. Accordingly, revenue is allocated to the specific quarter in which services are performed. The asset-based contracts generally contain one performance obligation and revenue is recognized on a ratable basis over the quarter beginning on the date that the platform services are made available to the customer as the customer simultaneously consumes and receives the benefits of the services. All asset-based fees are recognized in the Envestnet Wealth Solutions segment. For certain services provided by third parties, the Company evaluates whether it is the principal (revenues reported on a gross basis) or agent (revenues reported on a net basis). Generally, the Company reports customer fees including charges for third party service providers where the Company has a direct contract with such third party service providers on a gross basis, whereas the amounts billed to its customers are recorded as revenues, and amounts paid to third party service providers are recorded as cost of revenues. The Company is the principal in the transaction because it controls the services before they are transferred to its customers. Control is evidenced by the Company being primarily responsible to its customers and having discretion in establishing pricing. Subscription-Based Recurring Revenues —Subscription-based recurring revenues primarily consist of fees for providing customers continuous access to the Company’s platform for wealth management and financial wellness. The subscription-based fees generally include fixed fees and or usage-based fees. Generally, the subscription services are substantially the same over each quarter and performed in a similar manner over the contract period, and are considered stand-ready promises. Quarterly subscription services are considered distinct as the customer can benefit from each increment of services on its own and each quarter is separately identified in the contract, and services are considered to be a single performance obligation. Certain subscription-based contracts include fixed and variable consideration. The amount of variable consideration that is included in the transaction price may be subject to constraint and included in the subscription-based recurring revenues only to the extent that is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The Company utilizes the expected value method to estimate variable consideration based on available historical, current, and forecasted information. The usage-based pricing generally resets each quarter and the pricing structure is generally consistent throughout the term of the contract. The fixed fees are generally calculated and billed quarterly in advance. The usage-based fees are generally calculated and are billed either monthly or quarterly based on the actual usage and relate specifically to the benefits transferred to the customer during that quarter. Accordingly, revenue is allocated to the specific quarter in which services are performed. Fixed fees are generally recognized on a ratable basis over the quarter beginning when the subscription services are made available to the customer, as the customer simultaneously receives and consumes the benefits of the subscription services. Usage-based revenue is recognized on a monthly basis as the customer receives and consumes the benefit as the Company provides the services. Subscription-based fees are recognized in both the Envestnet Wealth Solutions and Envestnet Data & Analytics segments. Professional Services and Other Revenues —The Company earns professional services fees by providing contractual customized services and platform software development as well as initial implementation fees. Professional services contracts generally have fixed prices, and generally specify the deliverables in the contract. Certain professional services contracts are billed on a time and materials basis and revenue is recognized over time as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time based on the proportion of services performed. Initial implementation fees are fixed and are generally recognized ratably over the contract term. Other revenues primarily include revenue related to the Advisor Summit. Other revenues are recognized when the events are held. Other revenues are not significant. The majority of the Company's professional services and other contracts contain one performance obligation. Professional services and other revenues are recognized in both the Envestnet Wealth Solutions and Envestnet Data & Analytics segments. Arrangements with Multiple Performance Obligations —Certain of the Company’s contracts with customers contain multiple performance obligations, such as platform services performance obligation and professional services performance obligation. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. Standalone selling prices of services are estimated based on observable transactions when these services are sold on a standalone basis or based on expected cost plus margin. Remaining Performance Obligations —Remaining performance obligations represent the transaction price allocated to unsatisfied or partially satisfied performance obligations. The disclosure includes estimates of variable consideration. The Company applies the practical expedients and exemption not to disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less; (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed; and (iii) contracts for which the variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation. Contract Balances —The Company records contract liabilities (deferred revenue) when cash payments are received in advance of its performance. The term between invoicing date and when payment is due is generally not significant. For the majority of its arrangements, the Company requires advance quarterly payments before the services are delivered to the customer. Deferred Revenue —Deferred revenue primarily consists of implementation fees, professional services and subscription fee payments received in advance from customers. Deferred Sales Incentive Compensation —Sales incentive compensation earned by the Company’s sales force is considered an incremental and recoverable cost to acquire a contract with a customer. Sales incentive compensation for initial contracts is deferred and amortized on a straight-line basis over the period of benefit. The Company determined the period of benefit by taking into consideration its customer contracts, life of the technology and other factors. Sales incentive compensation for renewal contracts are deferred and amortized on a straight-line basis over the related contractual renewal period. Deferred sales incentive compensation is included in other non-current assets in the consolidated balance sheets and amortization expense is included in compensation and benefits expenses in the consolidated statements of operations. The Company has applied the practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period would have been one year or less. These costs are included in compensation and benefits expenses in the consolidated statements of operations. Cost of Revenues —Cost of revenues primarily includes expenses related to third party investment management and clearing, custody and brokerage services. Generally, these expenses are calculated based upon a contractual percentage of the market value of assets held in customer accounts measured as of the end of each quarter and are recognized ratably throughout the quarter based on the number of days in the quarter. Allowance for Doubtful Accounts —The Company evaluates the need for an allowance for doubtful accounts for potentially uncollectible fees receivable. In establishing the amount of the allowance, if any, customer-specific information is considered related to delinquent accounts, including historical loss experience and current economic conditions. As of December 31, 2022 and 2021, the Company’s allowance for doubtful accounts was $2.6 million and $3.9 million, respectively. Cash and Cash Equivalents —The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents. Restricted Cash —The following table reconciles cash, cash equivalents and restricted cash from the consolidated balance sheets to amounts reported in the consolidated statements of cash flows: December 31, 2022 2021 2020 (in thousands) Cash and cash equivalents $ 162,173 $ 429,279 $ 384,565 Restricted cash included in prepaid expenses and other current assets — 149 — Restricted cash included in other non-current assets — — 149 Total cash, cash equivalents and restricted cash $ 162,173 $ 429,428 $ 384,714 Investments —The Company has investments in private companies for which it has significant influence that are recorded using the equity method of accounting. The Company uses the equity method of accounting because of its less than 50% ownership and lack of control in these companies. These investments are included in other non-current assets on the consolidated balance sheets. The Company records the portion of its earnings or losses in these privately held companies’ net income or loss on a one quarter lag from the actual results of operations as a component of other income (expense), net on the consolidated statements of operations. The Company reviews all investments on a regular basis to evaluate the carrying amount and economic viability. This evaluation process is based on information that the Company requests directly from these investees and includes, but is not limited to, the review of the investee’s cash position, financing needs, earnings/revenue outlook, operational performance, management/ownership changes and competition. As this information is not subject to the same disclosure regulations as U.S. publicly traded companies, the basis for these evaluations is subject to the timing and accuracy of the data received from these investees. When a review of an investee’s operations indicates that there is a decline in its value and it has been determined that this decline is other than temporary, the Company assesses the investment for impairment. Impaired investments are written down to estimated fair value. Fair value is estimated using a variety of valuation methodologies, including comparing the investee with publicly traded companies in similar lines of business, applying valuation multiples to estimated future operating results and analyzing estimated discounted future cash flows. There were no impairments of investments for the years ended December 31, 2022, 2021 and 2020. For investments where the Company owns equity interests in privately held companies though does not have significant influence and there is no readily determinable fair value, it accounts for the investment under the measurement alternative at cost minus impairment, if any, plus or minus fair value changes when there are observable price changes. Property and Equipment —Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of furniture and equipment is computed using the straight-line method based on estimated useful lives of the depreciable assets. Leasehold improvements are amortized on a straight-line basis over their estimated economic useful lives or the remaining lease term, whichever is shorter. Improvements are capitalized, while repairs and maintenance costs are charged to operations as incurred. Assets are reviewed for recoverability whenever events or circumstances indicate the carrying value may not be recoverable. There were $5.1 million of impairments of property and equipment for the year ended December 31, 2022. There were immaterial impairments of property and equipment for the years ended December 31, 2021 and 2020. Internally Developed Software for Internal Use —Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Maintenance and training costs are expensed as incurred. Internally developed software is amortized on a straight-line basis over its estimated useful life. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were immaterial impairments of internally developed software for internal use for the years ended December 31, 2022, 2021 and 2020. Goodwill and Intangible Assets —Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. Goodwill is reviewed for impairment each year using a qualitative or quantitative process that is performed at least annually or whenever events or circumstances indicate a likely reduction in the fair value of a reporting unit below its carrying amount. The Company has concluded that it has two reporting units. The Company performs the annual impairment analysis on October 31 in order to provide management time to complete the analysis prior to year-end. Prior to performing the quantitative evaluation, an assessment of qualitative factors may be performed to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. If it is determined that it is unlikely that the carrying value exceeds the fair value, the Company is not required to complete the quantitative goodwill impairment evaluation. If it is determined that the carrying value may exceed fair value when considering qualitative factors, a quantitative goodwill impairment evaluation is performed. When performing the quantitative evaluation, if the carrying value of the reporting unit exceeds its fair value, an impairment loss equal to the difference will be recorded. No goodwill impairment charges have been recorded for the years ended December 31, 2022, 2021 and 2020. Intangible assets are recorded at cost less accumulated amortization. Intangible assets are reviewed for impairment whenever events or changes in circumstances may affect the recoverability of the net assets. Such reviews include an analysis of current results and take into consideration the undiscounted value of projected operating cash flows. No intangible asset impairment charges have been recorded for the years ended December 31, 2022, 2021 and 2020. Leases —The Company accounts for its leases in accordance with FASB Topic 842 - Leases (“ASC 842”) and has elected the available package of practical expedients as well as elected to apply the short-term lease exemption to all of its classes of underlying assets. At inception, the Company determines if an arrangement is a lease. Operating leases are included in operating right-of-use ("ROU") assets, current operating lease liabilities and non-current operating lease liabilities in the Company's consolidated balance sheets. Finance leases are included in property and equipment, net in the Company's consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the remaining lease term. The operating lease ROU asset also includes prepaid payments and excludes lease incentives. As none of the Company's leases provide an implicit rate, the Company uses an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient to account for non-lease components as part of the lease component for all asset classes. The majority of the Company's lease agreements are real estate leases. Fair Value Measurements —The Company accounts for its fair value measurements in accordance with FASB Topic 825 - Financial Instruments (“ASC 825”), which provides companies the option to report selected financial assets and liabilities at fair value and also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheets. The Company has not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect of the Company’s choice to use fair value on its earnings. Financial assets and liabilities recorded at fair value in the 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 I: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. Level II: 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 III: 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. Income Taxes —The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to an amount that is more likely than not to be realized. The Company follows authoritative guidance related to how uncertain tax positions should be recognized, measured, disclosed and presented in the consolidated financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained “when challenged” or “when examined” by the applicable tax authority. The tax benefits recognized in the consolidated financial statements from tax positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Business Combinations —The Company accounts for business combinations under the acquisition method. The cost of an acquired company is assigned to the tangible and intangible assets acquired and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires management to make estimates and use valuation techniques when market values are not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. Transaction costs associated with business combinations are expensed as incurred. The Company determines the fair value of contingent consideration payable on the acquisition date using a discounted cash flow approach utilizing an appropriate discount rate. Each reporting period thereafter, the Company revalues these obligations and records increases or decreases in their fair value as adjustments to fair market value adjustment to contingent consideration in the Company’s consolidated statements of operations. Changes in the fair value of the contingent consideration payable can result from adjustments to the estimated revenue forecasts included in the contingent consideration calculations. Stock-Based Compensation —Compensation cost relating to stock-based awards made to employees and directors is recognized in the consolidated financial statements using the Black-Scholes option-pricing model in the case of non-qualified stock option awards, and intrinsic value in the case of restricted stock awards. The Company measures the cost of such awards based on the estimated fair value of the award measured at the grant date and recognizes the expense on a straight-line basis over the requisite service period, which is the vesting period. Determining the fair value of stock options requires the Company to make several estimates, including the volatility of its stock price, the expected life of the option, forfeiture rate, dividend yield and interest rates. The Company estimates the expected life of its options using historical internal forfeiture data. The Company estimates stock-price volatility using historical third-party quotes of Envestnet’s common stock. The Company utilizes a risk-free interest rate, which is based on the yield of U.S. zero coupon securities with a maturity equal to the expected life of the options. The Company has not and does not expect to pay dividends on its common shares. The Company is required to estimate expected forfeitures of stock-based awards at the grant date and recognize compensation cost only for those awards expected to vest. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. Therefore, changes in the forfeiture assumptions may impact the total amount of expense ultimately recognized over the vesting period. Estimated forfeitures will be reassessed in subsequent periods and may change based on new facts and circumstances. Convertible Notes —In May 2018, the Company issued $345.0 million of 1.75% Convertible Notes due June 2023. In August 2020, the Company issued $517.5 million of 0.75% Convertible Notes due August 2025. In November 2022, the Company issued $575.0 million of 2.625% Convertible Notes due November 2027. The Company used a portion of the proceeds from the Convertible Notes due 2027 and available cash to repurchase $300.0 million aggregate principal amount of the outstanding Convertible Notes due 2023 and $200.0 million aggregate principal amount of the outstanding Convertible Notes due 2025 in November 2022. Collectively the “Convertible Notes” are accounted for in accordance with FASB Topic 470 - Debt ("ASC 470"). The Company has determined that the embedded conversion options in the Convertible Notes are not required to be separately accounted for as a derivative under GAAP. Upon adoption of ASU 2020-06, the Company accounts for the Convertible Notes as a single liability measured at amortized cost. Capped Call Transactions —In November 2022, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions (the “Capped Call Counterparties”). The Capped Call Transactions initially cover the number of shares of Envestnet’s common stock underlying the Convertible Notes due 2027, subject to customary anti-dilution adjustments. The Capped Call Transactions are net purchased call options on Envestnet’s common stock. The Capped Call Transactions are separate transactions entered into by the Company with each of the Capped Call Counterparties, are not part of the terms of the Convertible Notes due 2027, and do not affect any holder’s rights under the Convertible Notes due 2027. Holders of the Convertible Notes due 2027 do not have any rights with respect to the Capped Call Transactions. As the Capped Call Transactions are legally detachable and separately exercisable from the Convertible Notes due 2027, they were evaluated as freestanding instruments under FASB Topic 480 - Distinguishing Liabilities from Equity. The Company concluded that the Capped Call Transactions meet the scope exceptions for derivative instruments under FASB Topic 815 - Derivatives and Hedging. As such, the Capped Call Transactions meet the criteria for classification in equity and are included as a reduction to additional paid-in capital. Non-controlling Interest —In March 2018, the Company initially acquired a 43% fully diluted interest in a private company for cash consideration of $1.3 million. In connection with the acquisition, the Company was granted the ability to appoint two members to the private company's board of directors. The appointment of two board members gives the Company the majority of the board's voting rights. As a result, the Company uses the consolidation method of accounting for this investment. The private company was formed to enable financial advisors to provide insurance and income protection products to their clients. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements —In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity.” This update simplifies the accounting for certain convertible instruments by reducing the number of accounting models available for convertible debt instruments and revises Topic 815-40, which provides guidance on how an entity must determine whether a contract qualifies for a scope exception from derivative accounting. Under the new guidance, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions 2020 Acquisitions Acquisition of Private Technology Company On February 18, 2020, the Company, through its wholly owned subsidiary Yodlee, Inc. (“Yodlee”), acquired a private technology company (the “Private Technology Company Acquisition”). The private technology company enables the consent generation and data flow between financial information providers, such as banks and financial institutions, and financial information users, such as financial technology lenders and other financial services agencies, through a network of cloud-based interoperable interfaces or application programming interfaces. The technology and operations of the private technology company have been integrated into the Company's Envestnet Data & Analytics segment. In connection with the Private Technology Company Acquisition, the Company acquired all of the outstanding shares of the private technology company and paid cash consideration of $2.3 million, net of cash acquired, subject to certain closing and post-closing adjustments, plus up to an additional $6.8 million in contingent consideration, based upon achieving certain performance targets. The Company recorded a liability as of the date of acquisition of $5.2 million, which represented the estimated fair value of contingent consideration on the date of acquisition. In 2021 and 2020, we determined that certain performance targets for this acquisition would not be met. As a result, we reduced the contingent consideration liability plus accrued interest associated with this acquisition by $0.7 million and $3.1 million, respectively, and recorded this as a reduction to general and administration expenses. Future changes to the estimated fair value of the contingent consideration, if any, will be recognized in our earnings. Contingent consideration of $1.1 million was paid during the year ended December 31, 2021. The Company recorded estimated goodwill of $7.0 million, which is not deductible for income tax purposes, and estimated identifiable intangible assets for proprietary technologies of $1.0 million. The tangible assets acquired and liabilities assumed were not material. The results of the private technology company's operations are included in the consolidated statements of operations beginning February 18, 2020 and were not considered material to the Company’s results of operations. For the years ended December 31, 2022, 2021 and 2020, acquisition related costs for the Private Technology Company Acquisition were not material and are included in general and administration expenses. Acquisition of Private Cloud Technology Company On March 2, 2020, the Company acquired certain assets of a private cloud technology company (the “Private Cloud Technology Company Acquisition”). The private cloud technology company enables enterprises to design and implement the digital transition from legacy systems and applications to a modern cloud computing platform. The technology and operations of the private cloud technology company have been integrated into the Company's Envestnet Wealth Solutions segment. In connection with the Private Cloud Technology Company Acquisition, the Company paid estimated consideration of $12.0 million, net of cash acquired. In connection with the acquisition, the Company recorded estimated goodwill of $10.9 million, which is deductible for income tax purposes. The tangible assets acquired and liabilities assumed were not material. The results of the private cloud technology company's operations are included in the consolidated statements of operations beginning March 2, 2020 and were not considered material to the Company’s results of operations. For the years ended December 31, 2022, 2021 and 2020, acquisition related costs for the Private Cloud Technology Company Acquisition were not material and are included in general and administration expenses. Acquisition of Private Financial Technology Design Company On March 3, 2020, the Company acquired the outstanding units of a private financial technology design company that were not owned by the Company and merged the acquired company into a wholly owned subsidiary of the Company (the “Private Financial Technology Design Company Acquisition”). The private financial technology design company designs integrated, intuitive digital technology applications for institutional financial services firms, bank wealth management organizations, independent advisor networks, and broker-dealers. The technology and operations of the private financial technology design company have been integrated into the Envestnet Wealth Solutions segment. The Company previously owned approximately 45% of the outstanding units in this private financial technology design company and accounted for it as an equity method investment. Based upon the estimated value of the private financial technology design company of $11.0 million, the Company paid estimated consideration of $5.9 million, net of cash acquired, for the remaining outstanding units. As a result of the acquisition, the Company recognized a gain of $4.2 million in the first quarter of 2020 on the re-measurement to fair value of its previously held interest, which is included in other income (expense), net in the consolidated statements of operations. In connection with the Private Financial Technology Design Company Acquisition, the Company recorded estimated total goodwill of $9.2 million, of which approximately $6.2 million is deductible for income tax purposes, and estimated identifiable intangible assets for proprietary technologies of $2.0 million. The tangible assets acquired and liabilities assumed were not material. The results of the private financial technology design company's operations are included in the consolidated statements of operations beginning March 3, 2020 and were not considered material to the Company’s results of operations. For the years ended December 31, 2022, 2021 and 2020, acquisition related costs for the Private Financial Technology Design Company Acquisition were not material and are included in general and administration expenses. The goodwill arising from these 2020 acquisitions represents the expected synergistic benefits of these transactions, primarily related to an increase in future revenues as a result of potential new business and cross selling opportunities, as well as enhancements to our technologies. 2021 Acquisitions Acquisition of Proprietary Technology The Company previously owned approximately 29% of the outstanding units in a privately held company and accounted for it as an equity method investment. On March 11, 2021, the Company entered into an intellectual property purchase agreement with this privately held company to acquire all of the proprietary technology developed by the privately held company for approximately $35.5 million. Concurrent with the intellectual property purchase agreement, the Company also entered into a redemption agreement with the same privately held company to redeem the Company's previously held equity interest for approximately $10.0 million. The Company accounted for these two arrangements as a single unit of account. As of the acquisition date, the net cost of the proprietary technology acquired, including capitalized transaction costs, was approximately $24.5 million, which will be amortized over a five-year period on a straight-line basis. The proprietary technology has been integrated into the Envestnet Wealth Solutions. Acquisition of Harvest On April 7, 2021, pursuant to an agreement and plan of merger (the “Merger Agreement”), dated as of March 31, 2021, between, among others, Harvest Savings & Wealth Technologies (“Harvest”), a Delaware corporation, and Bounty Merger Sub, Inc, a wholly-owned subsidiary of the Company (“Merger Sub”), the Company completed the merger of Harvest with and into Merger Sub, with Merger Sub continuing as the surviving corporation (the “Harvest Acquisition”) and operating as a wholly-owned subsidiary of Envestnet. Harvest has been integrated into the Envestnet Wealth Solutions segment. Harvest provides automated goals-based saving and wealth solutions tools to customers of banks, credit unions, trust companies, and other financial institutions. The acquisition optimizes the Company's API-based financial wellness ecosystem, and also helps strengthen the Company's foothold to enable embedded finance, which the Company sees as a key driver of the future of financial services. In connection with the Harvest Acquisition, the Company paid estimated consideration of $32.8 million (of which approximately $3.0 million was held in escrow for 18 months after the closing date), net of cash acquired, subject to certain post-closing adjustments. The Company funded the acquisition with cash on hand. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Tangible assets acquired, net of cash (1) $ 2,032 $ 3,278 $ 5,310 Total liabilities assumed (596) 54 (542) Identifiable intangible assets 9,500 — 9,500 Goodwill 21,858 (3,332) 18,526 Total net assets acquired $ 32,794 $ — $ 32,794 __________________________________________________________ (1) The Company recorded measurement period adjustments of $3.3 million primarily due to the establishment of deferred tax assets during the year ended December 31, 2021. The goodwill arising from the acquisition represents the expected synergistic benefits of the transaction, primarily related to an increase in future revenues as a result of potential cross selling opportunities, as well as enhancements to the Company's existing technologies. The goodwill is not deductible for income tax purposes. A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows: Preliminary Estimate Estimated Useful Life in Years Amortization Method Proprietary technology $ 6,900 6 Straight-line Customer list 2,600 14 Accelerated Total intangible assets acquired $ 9,500 The results of Harvest’s operations are included in the consolidated statements of operations beginning April 7, 2021 and were not considered material to the Company’s results of operations. For the years ended December 31, 2022 and 2021, the Company’s acquisition related costs were not material and are included in general and administration expenses. 2022 Acquisitions Acquisition of 401kplans.com On May 31, 2022, Envestnet Retirement Solutions, LLC, a wholly-owned subsidiary of the Company, acquired all of the issued and outstanding membership interests of 401kplans.com LLC (“401kplans.com”). 401kplans.com has been integrated into the Envestnet Wealth Solutions segment. 401kplans.com provides a digital 401(k) retirement plan marketplace that streamlines retirement plan distribution and due diligence among financial advisors and third-party administrators. The acquisition demonstrates Envestnet's commitment to the retirement plan industry and is expected to create a more seamless experience and enhance productivity for advisors by helping them shop, compare and select the best-fitting 401(k) plan for their clients. In connection with the 401kplans.com acquisition, the Company paid estimated consideration of $14.5 million, net of cash acquired, subject to certain post-closing adjustments. The Company funded the acquisition with available cash resources. The following table summarizes the estimated fair values of the assets acquired at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Tangible assets acquired, net of acquired cash $ 94 $ 10 $ 104 Identifiable intangible assets 3,000 — 3,000 Goodwill 11,378 18 11,396 Total net assets acquired $ 14,472 $ 28 $ 14,500 The goodwill arising from the acquisition represents the expected benefits of the transaction, primarily related to the enhancement of the Company's existing technologies and increase in future revenues as a result of potential cross selling opportunities. The estimated goodwill is deductible for income tax purposes. A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows: Preliminary Estimate Estimated Useful Life in Years Amortization Method Proprietary technology $ 3,000 5 Straight-line The results of 401kplans.com's operations are included in the consolidated statements of operations beginning May 31, 2022 and are not considered material to the Company’s results of operations. For the year ended December 31, 2022, the Company’s acquisition related costs were not material and are included in general and administration expenses. Acquisition of Truelytics On July 1, 2022, pursuant to an agreement and plan of merger (the “Merger Agreement”), dated as of May 10, 2022, between, among others, Truelytics, Inc., (“Truelytics”), Yodlee, Inc. and Quadrant Merger Sub Inc., a wholly-owned subsidiary of Envestnet (“Merger Sub”), the Company completed the merger of Truelytics with and into Merger Sub, with Truelytics continuing as the surviving corporation (the “Truelytics Merger”) and a wholly owned subsidiary of Envestnet. Truelytics has been integrated into the Envestnet Data & Analytics segment. The acquisition of Truelytics aligns with the Company's strategy to further connect its ecosystem by creating transformative progress for its advisors and clients. Truelytics is an advisor transition management platform and the first end-to-end data-driven system to help wealth management and insurance enterprises attract, grow, and retain advisory businesses, while also reducing the costs related to advisor transitions. The Truelytics platform combines Envestnet data, analytics, and wealth technology to further support advisors across the ecosystem. The Company paid estimated cash consideration of $20.7 million, net of cash acquired, subject to certain post-closing adjustments. The Company funded the Truelytics acquisition with available cash resources. The following table summarizes the estimated fair values of the assets acquired at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Tangible net assets acquired, net of acquired cash $ 532 $ (22) $ 510 Identifiable intangible assets 4,000 — 4,000 Goodwill 16,195 22 16,217 Total net assets acquired $ 20,727 $ — $ 20,727 The goodwill arising from the acquisition represents the expected benefits of the transaction, primarily related to the enhancement of the Company's existing technologies and increase in future revenues as a result of potential cross selling opportunities. The estimated goodwill is not deductible for income tax purposes. A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows: Preliminary Estimate Estimated Useful Life in Years Amortization Method Proprietary technology $ 4,000 5 Straight-line The results of Truelytics' operations are included in the consolidated statements of operations beginning July 1, 2022 and are not considered material to the Company’s results of operations. For the year ended December 31, 2022, the Company’s acquisition related costs were not material and are included in general and administration expenses. Acquisition of Redi2 On July 1, 2022, pursuant to a stock purchase agreement, dated as of June 24, 2022, between Envestnet and Redi2 Technologies Inc., (“Redi2”), Envestnet completed the acquisition of all of the issued and outstanding shares of Redi2. Redi2 provides revenue management and hosted fee-billing solutions. Its platform enables fee calculation, invoice creation, payouts and accounting, and billing compliance. Redi2 has been integrated into the Envestnet Wealth Solutions segment. In connection with the Redi2 acquisition, the Company paid estimated consideration as follows: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Cash consideration, net $ 69,406 $ — $ 69,406 Estimated working capital adjustment (1,465) 932 (533) Total $ 67,941 $ 932 $ 68,873 The Company funded the Redi2 acquisition with available cash resources. In addition, certain executives may earn up to $20.0 million in performance bonuses based upon the achievement of certain target financial and non-financial metrics. These performance bonuses will be recognized as compensation and benefits expense in the consolidated statement of operations. The performance bonuses recognized during the year ended December 31, 2022 were immaterial. The following table summarizes the estimated fair values of the assets acquired at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Total current assets $ 1,985 $ — $ 1,985 Other non-current assets 3,349 (28) 3,321 Identifiable intangible assets 26,500 — 26,500 Goodwill 44,236 2,231 46,467 Total assets acquired 76,070 2,203 78,273 Accounts payable and accrued expenses (1,157) (1,271) (2,428) Operating lease liabilities (2,201) — (2,201) Deferred revenue (4,771) — (4,771) Total liabilities assumed (8,129) (1,271) (9,400) Total net assets acquired, net of cash received $ 67,941 $ 932 $ 68,873 The goodwill arising from the acquisition represents the expected benefits of the transaction, primarily related to the enhancement of the Company's existing technologies and increase in future revenues as a result of potential cross selling opportunities. Estimated goodwill of $40.7 million is deductible for income tax purposes. A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows: Preliminary Estimate Estimated Useful Life Amortization Method Customer lists $ 14,000 14-16 years Accelerated Proprietary technologies 9,500 6 years Straight-line Trade names 3,000 6-7 years Straight-line Total intangible assets acquired $ 26,500 The estimated fair values of certain of the assets acquired and liabilities assumed are provisional and based on information that was available to the Company as of the acquisition date. The estimated fair values of these provisional items are based on certain valuation procedures that are in progress and not yet at the point where there is sufficient information for a definitive measurement. The Company believes the preliminary information provides a reasonable basis for estimating the fair values of these amounts, though is waiting for additional information necessary to finalize those fair values. Therefore, provisional measurements of fair values reflected herein are subject to change and such changes could be significant. The Company expects to finalize the valuation of tangible assets acquired, liabilities assumed, identifiable intangible assets and goodwill balances and complete the acquisition accounting as soon as reasonably practicable though no later than July 1, 2023. The results of operations of Redi2 are included in the consolidated statements of operations beginning July 1, 2022 and are not considered material to the Company’s results of operations. For the year ended December 31, 2022, the Company’s acquisition related costs totaled $1.5 million and are included in general and administration expenses. Pro Forma Financial Information The results of the Company's acquisitions since January 1, 2020 were not considered material to the Company's results of operations, therefore, pro forma information is not presented. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 31, 2022 2021 (in thousands) Prepaid technology $ 16,649 $ 15,415 Non-income tax receivables 5,488 7,013 Prepaid insurance 2,881 2,234 Income tax prepayments and receivables 2,515 1,310 Escrow for acquisition 545 2,951 Other 13,285 13,783 Total prepaid expenses and other current assets $ 41,363 $ 42,706 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following: December 31, Estimated Useful Life 2022 2021 (in thousands) Cost: Computer equipment and software 3 years $ 66,639 $ 72,289 Leasehold improvements Shorter of the lease term or useful life of the asset 36,158 43,544 Leased data servers 3 years 19,273 590 Office furniture and fixtures 3-7 years 10,796 12,214 Office equipment and other 3-5 years 11,563 7,973 Building and building improvements 7-39 years 2,729 2,729 Land Not applicable 940 940 148,098 140,279 Less: accumulated depreciation and amortization (85,655) (90,064) Total property and equipment, net $ 62,443 $ 50,215 During the year ended December 31, 2022, the Company entered into an arrangement with a third party cloud service provider for the use of dedicated servers to migrate its infrastructure to the cloud. As the terms of the arrangement convey a finance lease under ASC 842, the Company accounts for those dedicated servers as leased assets when the lease term commences. The leased dedicated servers are presented as a component of property and equipment, net in the consolidated balance sheets as of December 31, 2022. To take advantage of the favorable savings programs offered by the cloud service provider, the Company prepaid the lease payments and therefore does not have a lease liability recorded for the leased assets. Amortization of the right-of-use assets totaled $4.9 million for the year ended December 31, 2022. Finance lease activity as of and for the year ended December 31, 2021 was not material. During the year ended December 31, 2022 and 2021, the Company retired property and equipment that was no longer in service for the Envestnet Wealth Solutions segment with an historical cost of $20.0 million and $12.7 million, respectively. During the year ended December 31, 2022 and 2021, the Company retired property and equipment that was no longer in service for the Envestnet Data & Analytics segment with an historical cost of $10.4 million and $2.4 million, respectively. The following table presents the cost amounts and related accumulated depreciation written off by category: Year Ended December 31, 2022 Year Ended December 31, 2021 Accumulated Accumulated Cost Depreciation Cost Depreciation (in thousands) Computer equipment and software $ 15,887 $ (14,947) $ 10,936 $ (10,838) Leasehold improvements 2,442 (1,209) 197 (178) Office furniture and fixtures 660 (418) 1,702 (1,646) Office equipment and other 11,467 (8,785) 2,227 (1,915) Total property and equipment retirements $ 30,456 $ (25,359) $ 15,062 $ (14,577) Depreciation and amortization expense was as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Depreciation and amortization expense $ 21,688 $ 20,577 $ 21,432 |
Internally Developed Software,
Internally Developed Software, Net | 12 Months Ended |
Dec. 31, 2022 | |
Capitalized Computer Software, Net [Abstract] | |
Internally Developed Software, Net | Internally Developed Software, Net Internally developed software, net consisted of the following: December 31, Estimated Useful Life 2022 2021 (in thousands) Internally developed software 5 years $ 313,200 $ 225,380 Less: accumulated amortization (128,642) (91,721) Internally developed software, net $ 184,558 $ 133,659 Amortization expense was as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Amortization expense $ 36,959 $ 28,603 $ 18,670 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Changes in the carrying amount of goodwill were as follows: Envestnet Envestnet Total (in thousands) Balance at December 31, 2020 $ 603,350 $ 303,423 $ 906,773 Harvest acquisition 18,526 — 18,526 Foreign currency translation — (145) (145) Balance at December 31, 2021 621,876 303,278 925,154 401kplans.com acquisition 11,396 — 11,396 Truelytics acquisition — 16,217 16,217 Redi2 acquisition 46,467 — 46,467 Foreign currency translation — (820) (820) Balance at December 31, 2022 $ 679,739 $ 318,675 $ 998,414 Procurement of Technology Solutions On June 21, 2021, the Company entered into a purchase agreement with a privately held company to acquire the technology solutions being developed by this privately held company for a purchase price of $18.0 million, including an advance of $3.0 million. The Company closed the transaction and paid the remaining $15.0 million in February 2022. This proprietary technology asset has been integrated into the Envestnet Data & Analytics segment and is being amortized over an estimated useful life of five years. In addition, the agreement included an earn-out payment of $10.0 million based upon the achievement of certain target metrics within five years after the date of the Company’s launch of the technology solutions. The parties have agreed to renegotiate the terms of the earn-out payment. Intangible assets, net consisted of the following: December 31, 2022 December 31, 2021 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount (in thousands) Customer lists $ 604,080 $ (285,288) $ 318,792 $ 590,080 $ (241,189) $ 348,891 Proprietary technologies 113,224 (59,401) 53,823 85,324 (43,004) 42,320 Trade names 15,700 (8,320) 7,380 33,700 (24,515) 9,185 Total intangible assets $ 733,004 $ (353,009) $ 379,995 $ 709,104 $ (308,708) $ 400,396 During 2022, the Company had no retirements of intangible assets for the Envestnet Wealth Solutions segment. During 2021, the Company retired fully amortized intangible assets for the Envestnet Wealth Solutions segment with an historical cost of $5.0 million, including proprietary technologies and customer lists. During 2022, the Company had $27.6 million retirements of fully amortized intangible assets, including trade names and proprietary technologies for the Envestnet Data & Analytics segment. During 2021, the Company had no retirements of intangible assets for the Envestnet Data & Analytics segment. Amortization expense was as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Amortization expense $ 71,901 $ 68,587 $ 73,559 Future amortization expense of the Company's intangible assets as of December 31, 2022, is expected to be as follows: Amortization Expense (in thousands) Years ending December 31: 2023 $ 60,087 2024 53,240 2025 49,900 2026 41,997 2027 33,432 Thereafter 141,339 Total $ 379,995 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Equity Method Investments The Company owns equity interests in various privately held companies for which it has significant influence and, therefore, recognizes its investment under the equity method. Equity method investments are initially recorded at cost. Under the equity method of accounting, the investment is adjusted for the Company ’s proportionate share of earnings or losses, dividends, capital contributions and changes in ownership interests. As of December 31, 2022, the Company ’s ownership interests in these companies ranged from approximately 3% to 48%. As of December 31, 2021, the Company ’s ownership interests in these companies ranged from approximately 4% to 47%. As of December 31, 2022 and December 31, 2021, the carrying value of the Company’s equity method investments was $37.4 million and $18.6 million, respectively, which are included in other non-current assets in the consolidated balance sheets. As of December 31, 2022, the Company has committed $12.5 million in future funding to certain of these equity method investees. Summarized combined financial information for these investments is as follows (amounts represent 100% of investee financial information, except Envestnet ’ s proportional share of losses): December 31, Balance Sheets 2022 2021 (in thousands) Current assets $ 42,059 $ 40,333 Non-current assets 50,703 33,529 Current liabilities 17,647 20,018 Non-current liabilities 9,437 1,583 Year Ended December 31, Statements of Operations 2022 2021 2020 (in thousands) Revenues $ 79,062 $ 65,085 $ 35,603 Loss from operations (8,896) (149) (4,758) Net loss (7,124) (134) (5,062) Envestnet ’s proportional share of gains (losses) (1) 643 (7,093) (5,399) __________________________________________________________ (1) The year ended December 31, 2022 includes a $9.5 million dilution gain on equity method investee share issuance. Envestnet's proportional share of gains (losses) from the Company ’s equity method investments are included in other income (expense), net in the consolidated statements of operations. Equity Method Investments The Company has an approximate 3.51% membership interest in a private services company that it accounts for using the equity method of accounting and is considered to be a related party. Revenues from the private services company totaled $16.0 million, $16.4 million and $11.5 million in the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022 and 2021, the Company had recorded a net receivable of $2.0 million and $3.0 million, respectively, from the private services company. During the fourth quarter of 2022, the Company recognized a $2.6 million dilution gain on this investment. During the first quarter of 2022, the Company funded a $2.5 million convertible loan to a privately held company that is accounted for under the equity method. During the second quarter of 2022, this privately held company raised additional preferred equity which reduced the Company's ownership to 41.0% and the Company's convertible loan was converted. As a result of this transaction, the Company recorded a $6.9 million dilution gain during the second quarter of 2022, which is included in other income (expense), net in the consolidated statements of operations. During the third quarter of 2022, the Company acquired additional membership units in this privately held company for $8.4 million which increased its ownership interest to 48.0%. The Company uses the equity method of accounting to record its portion of this privately held company's net income or loss on a one quarter lag from the actual results of operations. After this unit purchase, the Company's investment in this privately held company exceeded its proportionate share of its net assets by approximately $7.8 million, which represents amortizable intangible assets. The Company will recognize amortization of this basis difference prospectively over a period of 5 years. This amortization will be included within Envestnet's proportional share of income (loss) in other income (expense), net in the consolidated statements of operations. During the second quarter of 2022, the Company acquired an approximate 25.0% interest in a privately held company for cash consideration of $5.0 million. Subject to the occurrence of certain conditions, the Company agreed to invest up to an additional $10.0 million for additional units in the future. The Company uses the equity method of accounting to record its portion of this privately held company's net income or loss on a one quarter lag from the actual results of operations. The Company uses the equity method of accounting because of its less than 50% ownership interest and lack of control and does not otherwise exercise control over the significant economic and operating decisions of the privately held company. Other Equity Investments The Company owns equity interests in various privately held companies for which it does not have significant influence, there is no readily determinable fair value, and its investment qualifies for recognition under the measurement alternative at cost minus impairment, if any, plus or minus fair value changes when there are observable price changes. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following: December 31, 2022 2021 (in thousands) Accrued investment manager fees $ 93,788 $ 95,858 Accrued compensation and related taxes 77,939 97,523 Accrued professional services 10,762 7,746 Accrued treasury stock purchases 9,289 — Accrued technology 6,393 8,951 Non-income tax payables 2,548 4,907 Other accrued expenses 15,813 10,174 Total accrued expenses and other liabilities $ 216,532 $ 225,159 Entry into Outsourcing Arrangement and Organizational Realignment In the fourth quarter of 2022, the Company entered into an outsourcing arrangement with Tata Consultancy Services (“TCS”) to increase operational scale and business agility. Under this agreement, the Company will outsource certain administrative and operational services of the Envestnet Data & Analytics segment located in Bangalore, India. In connection with this agreement, the Company closed its Bangalore office. The agreement became effective in October 2022 and will continue for a period of ten years. In certain circumstances, the Company may terminate certain portions of the agreement, and in doing so, the agreement requires the Company to pay significant termination fees. Additionally, as part of an organizational realignment in the fourth quarter of 2022, the Company entered into separation agreements with a number of employees. This realignment will allow Envestnet to operate more efficiently and prioritize activities and services that will benefit its clients and the future of its business. In connection with the outsourcing arrangement with TCS and the 2022 organizational realignment, the Company recognized approximately $18.7 million of severance expense in the fourth quarter of 2022. As of December 31, 2022 the Company has accrued approximately $9.0 million in accrued compensation and related taxes. Additionally, as a result of the outsourcing arrangement and related office closure, the Company recognized office closure and other related expenses totaling $0.9 million during the year ended December 31, 2022. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding debt obligations as of December 31, 2022 and 2021 were as follows: December 31, 2022 2021 (in thousands) Revolving credit facility balance $ — $ — Convertible Notes due 2023 $ 45,000 $ 345,000 Unamortized issuance costs on Convertible Notes due 2023 (114) (2,979) Convertible Notes due 2023 carrying value $ 44,886 $ 342,021 Convertible Notes due 2025 $ 317,500 $ 517,500 Unamortized issuance costs on Convertible Notes due 2025 (4,765) (10,659) Convertible Notes due 2025 carrying value $ 312,735 $ 506,841 Convertible Notes due 2027 $ 575,000 $ — Unamortized issuance costs on Convertible Notes due 2027 (15,966) — Convertible Notes due 2027 carrying value $ 559,034 $ — Credit Agreement On February 4, 2022, the the Company entered into a Third Amended and Restated Credit Agreement (the "Third Credit Agreement") with a group of banks (the “Banks”), for which Bank of Montreal is acting as administrative agent. The Third Credit Agreement amended and restated, in its entirety, the Company's prior credit agreement. In connection with entering into the Third Credit Agreement, the Company capitalized an additional $1.9 million of deferred financing charges to Other non-current assets on the consolidated balance sheets and wrote off $0.6 million of pre-existing finance charges to other expense, net on the consolidated statements of operations. Pursuant to the Third Credit Agreement, the Banks have agreed to provide the Company with a revolving credit facility of $500.0 million (the “Revolving Credit Facility”). The Third Credit Agreement also includes a $20.0 million sub-facility for the issuances of letters of credit. As of December 31, 2022 and December 31, 2021, there were no amounts outstanding under the Revolving Credit Facility. Obligations under the Third Credit Agreement are guaranteed by substantially all of Envestnet’s U.S. subsidiaries and are secured by a first-priority lien on substantially all of the personal property (other than intellectual property) of Envestnet and the guarantors, subject to certain exclusions. Proceeds under the Third Credit Agreement may be used to finance capital expenditures and permitted acquisitions and for working capital and general corporate purposes. In the event the Company has borrowings under the Third Credit Agreement, at the Company's option, it will pay interest on these borrowings at a rate equal to either (i) a base rate plus an applicable margin ranging from 0.25% to 1.75% per annum or (ii) an adjusted Term Secured Overnight Financing Rate (“SOFR”) plus an applicable margin ranging from 1.25% to 2.75% per annum, in each case based upon the total net leverage ratio, as calculated pursuant to the Third Credit Agreement. Any borrowings under the Third Credit Agreement will mature on February 4, 2027. There is also a commitment fee at a rate ranging from 0.25% to 0.30% per annum based upon the total net leverage ratio. As of December 31, 2022, debt issuance costs related to the Third Credit Agreement of $0.7 million and $2.2 million are presented in prepaid expenses and other non-current assets in the consolidated balance sheets, respectively. The Third Credit Agreement contains customary conditions, representations and warranties, affirmative and negative covenants, mandatory prepayment provisions and events of default. The covenants include certain financial covenants requiring the Company to maintain compliance with a maximum total leverage ratio, a minimum interest coverage ratio and a minimum liquidity covenant. The Company was in compliance with these financial covenants as of December 31, 2022. On November 14, 2022, the Company entered into a First Amendment to the Third Credit Agreement, which amended certain provisions under the Third Credit Agreement, including elimination of required testing of the liquidity covenant beginning March 31, 2023. The borrowing base and rate were not amended by this First Amendment to the Third Credit Agreement. As of December 31, 2022, the Company had all $500.0 million available to borrow under the Revolving Credit Facility, subject to covenant compliance. Convertible Notes due 2023 In May 2018, the Company issued $345.0 million of convertible notes maturing June 1, 2023 (the “Convertible Notes due 2023”). Net proceeds from the offering were $335.0 million. The Convertible Notes due 2023 bear interest at a rate of 1.75% per annum payable semiannually in arrears on June 1 and December 1 of each year. The Convertible Notes due 2023 are general unsecured senior obligations, subordinated in right of payment to the Company’s obligations under its Credit Agreement. The Convertible Notes due 2023 rank equally in right of payment with all of the Company’s other existing and future senior indebtedness and will be senior in right of payment to any of the Company’s future subordinated obligations. The Convertible Notes due 2023 will be structurally subordinated to the indebtedness and other liabilities of any of the Company’s subsidiaries, other than its wholly owned subsidiary, Envestnet Asset Management, Inc., which will fully and unconditionally guarantee the notes on an unsecured basis, and other than to the extent the Convertible Notes due 2023 are guaranteed in the future by any of our other subsidiaries as described in the indenture and will be effectively subordinated to and future secured indebtedness to the extent of the value of the assets securing such indebtedness. Upon the occurrence of a “fundamental change”, as defined in the indenture, the holders may require the Company to repurchase all or a portion of the Convertible Notes due 2023 for cash at 100% of the principal amount of the Convertible Notes due 2023 being purchased, plus any accrued and unpaid interest. The Company may redeem for cash all or any portion of the notes, at the Company's option, on or after June 5, 2021 if the last reported sale price of Envestnet’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days, consecutive or non-consecutive, within a 30 consecutive trading day period ending on, and including, any of the five The Convertible Notes due 2023 are convertible into shares of Envestnet’s common stock under certain circumstances prior to maturity at an initial conversion rate of 14.6381 shares per one thousand principal amount of the Convertible Notes due 2023, which represents a conversion price of $68.31 per share, subject to adjustment under certain conditions. The initial conversion rate is subject to adjustment upon a "fundamental change", as defined in the indenture, if the Company calls all or any portion of the notes for optional redemption, or subject to anti-dilution provisions provided in the indenture. On or after December 15, 2022, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may surrender their notes for conversion at any time, regardless of the foregoing circumstances. Upon conversion, the Company may pay cash, shares of Envestnet’s common stock or a combination of cash and stock, as determined by the Company in its discretion. Upon issuance, the Company separately accounted for the liability and equity components of the Convertible Notes due 2023 by allocating the proceeds from issuance of the Convertible Notes due 2023 between the liability component and the embedded conversion option, or equity component. This allocation was done by first estimating an interest rate at the time of issuance for similar notes that do not include an embedded conversion option. The Company allocated $46.6 million to the equity component, presented within additional paid-in capital, net of offering costs of $1.4 million. The Company recorded a discount on the Convertible Notes due 2023 of $48.0 million which was accreted and recorded as additional interest expense. Upon the adoption of ASU 2020-06 on January 1, 2021, the equity component is no longer separated from the host contract and is now accounted for as a single liability measured at amortized cost within long-term debt in the consolidated balance sheets. Accordingly, no future accretion of the original issue discount necessary. During the years ended December 31, 2022, 2021 and 2020, the Company recognized $0.0 million, $0.0 million and $9.4 million, respectively, in accretion related to the discount. In connection with the issuance of the Convertible Notes due 2023, the Company incurred $10.0 million of issuance costs in 2018, of which $8.6 million was originally allocated to the debt component and presented net in long-term debt and $1.4 million was originally allocated to the equity component and presented within additional paid-in capital in the consolidated balance sheets. Upon the adoption of ASU 2020-06, the costs originally allocated to the equity component are reflected within long-term debt and are being amortized and recorded as additional interest expense over the life of the Convertible Notes due 2023. In November 2022, the Company repurchased $300.0 million aggregate principal of the outstanding Convertible Notes due 2023 for cash consideration of approximately $312.4 million and recognized a loss on extinguishment of approximately $13.4 million recognized in interest expense on the consolidated statements of operations. As of December 31, 2022, aggregate principal of $45.0 million less unamortized debt issuance costs of $0.1 million remain outstanding after this repurchase which may result in approximately 0.7 million shares issuable upon conversion, subject to adjustment under certain conditions. Convertible Notes due 2025 In August 2020, the Company issued $517.5 million of convertible notes that mature on August 15, 2025 (the “Convertible Notes due 2025”). Net proceeds from the offering were $503.0 million. The Convertible Notes due 2025 bear interest at a rate of 0.75% per annum payable semiannually in arrears in cash on February 15 and August 15 of each year. The Convertible Notes due 2025 are general unsecured senior obligations, subordinated in right of payment to the Company’s obligations under its Credit Agreement. The Convertible Notes due 2025 rank equally in right of payment with all of the Company’s other existing and future senior indebtedness and will be senior in right of payment to any of the Company’s future subordinated obligations. The Convertible Notes due 2025 will be structurally subordinated to the indebtedness and other liabilities of any of the Company’s subsidiaries, other than its wholly owned subsidiary, Envestnet Asset Management, Inc., which will fully and unconditionally guarantee the notes on an unsecured basis, and other than to the extent the Convertible Notes due 2025 are guaranteed in the future by any of our other subsidiaries as described in the indenture and will be effectively subordinated to and future secured indebtedness to the extent of the value of the assets securing such indebtedness. Upon the occurrence of a “fundamental change,” as defined in the indenture, the holders may require the Company to repurchase all or a portion of the Convertible Notes due 2025 for cash at 100% of the principal amount of the Convertible Notes due 2025 being purchased, plus any accrued and unpaid interest. The Company may redeem for cash all or any portion of the notes, at the Company's option, on or after August 15, 2023 if the last reported sale price of Envestnet’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days, consecutive or non-consecutive, within a 30 consecutive trading day period ending on, and including, any of the five The Convertible Notes due 2025 are convertible into shares of Envestnet’s common stock under certain circumstances prior to maturity at a an initial conversion rate of 9.3682 shares per one thousand principal amount of the Convertible Notes due 2025, which represents a conversion price of $106.74 per share, subject to adjustment under certain conditions. The initial conversion rate is subject to adjustment upon a "fundamental change", as defined in the indenture, if the Company calls all or any portion of the notes for optional redemption, or subject to anti-dilution provisions provided in the indenture. Holders may convert their Convertible Notes due 2025 at their option at any time prior to the close of business on the business day immediately preceding February 15, 2025, only under the following circumstances: (a) during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of Envestnet’s common stock, for at least 20 trading days (whether or not consecutive) in the period of 30 consecutive trading days ending on the last trading day of the calendar quarter immediately preceding the calendar quarter in which the conversion occurs, is more than 130% of the conversion price of the Notes in effect on each applicable trading day; (b) during the five five multiplied by the then-current conversion rate; (c) if the Company calls any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (d) upon the occurrence of specified corporate events described in the Indenture. On or after February 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may surrender their notes for conversion at any time, regardless of the foregoing circumstances. Upon conversion, the Company may pay cash, shares of Envestnet’s common stock or a combination of cash and stock, as determined by the Company in its discretion. Upon issuance, the Company separately accounted for the liability and equity components of the Convertible Notes due 2025 by allocating the proceeds from issuance of the Convertible Notes due 2025 between the liability component and the embedded conversion option, or equity component. This allocation was done by first estimating an interest rate at the time of issuance for similar notes that do not include the embedded conversion option. The Company allocated $61.9 million to the equity component presented within additional paid-in capital, net of offering costs of $1.9 million and taxes of $6.7 million. The Company recorded a discount on the Convertible Notes due 2025 of $70.6 million which was accreted and recorded as additional interest expense. Upon the adoption of ASU 2020-06 on January 1, 2021, the equity component is no longer separated from the host contract and is now accounted for as a single liability measured at amortized cost within long-term debt in the consolidated balance sheets. Accordingly, no future accretion of the original issue discount necessary. During the years ended December 31, 2022, 2021 and 2020, the Company recognized $0.0 million, $0.0 million and $4.7 million, respectively in accretion related to the discount. In connection with the issuance of the Convertible Notes due 2025, the Company incurred $14.5 million of issuance costs in 2020, of which $12.6 million was originally allocated to the debt component and presented net in long-term debt and $1.9 million was originally allocated to the equity component and presented within additional paid-in capital in the consolidated balance sheets. Upon the adoption of ASU 2020-06, the costs originally allocated to the equity component are reflected within long-term debt and are being amortized and recorded as additional interest expense over the life of the Convertible Notes due 2025. In November 2022, the Company repurchased $200.0 million aggregate principal of the outstanding Convertible Notes due 2025 for cash consideration of approximately $181.8 million and recognized a gain on extinguishment of approximately $15.1 million recognized in interest expense on the consolidated statements of operations. As of December 31, 2022, aggregate principal of $317.5 million less unamortized debt issuance costs of $4.8 million remain outstanding after this repurchase which may result in approximately 3.0 million shares issuable upon conversion, subject to adjustment under certain conditions. Convertible Notes due 2027 In November 2022, the Company issued $575.0 million of Convertible Notes due 2027. Net proceeds from the offering were $558.7 million. The Convertible Notes due 2027 bear interest at a rate of 2.625% per annum payable semiannually in arrears in cash on June 1 and December 1 of each year. The Convertible Notes due 2027 are general unsecured senior obligations, subordinated in right of payment to the Company’s obligations under its Credit Agreement. The Convertible Notes due 2027 rank equally in right of payment with all of the Company’s other existing and future senior indebtedness and will be senior in right of payment to any of the Company’s future subordinated obligations. The Convertible Notes due 2027 will be structurally subordinated to the indebtedness and other liabilities of any of the Company’s subsidiaries, other than its wholly owned subsidiary, Envestnet Asset Management, Inc., which will fully and unconditionally guarantee the notes on an unsecured basis, and other than to the extent the Convertible Notes due 2027 are guaranteed in the future by any of our other subsidiaries as described in the indenture and will be effectively subordinated to and future secured indebtedness to the extent of the value of the assets securing such indebtedness. Upon the occurrence of a “fundamental change,” as defined in the indenture, the holders may require the Company to repurchase all or a portion of the Convertible Notes due 2027 for cash at 100% of the principal amount of the Convertible Notes due 2027 being purchased, plus any accrued and unpaid interest. The Company may redeem for cash all or any portion of the notes, at the Company's option, on or after December 5, 2025 if the last reported sale price of Envestnet’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days, consecutive or non-consecutive, within a 30 consecutive trading day period ending on, and including, any of the five The Convertible Notes due 2027 are convertible into shares of Envestnet’s common stock under certain circumstances prior to maturity at a an initial conversion rate of 13.6304 shares per one thousand principal amount of the Convertible Notes due 2027, which represents a conversion price of $73.37 per share and approximately 7.8 million shares issuable upon conversion, subject to adjustment under certain conditions. The initial conversion rate is subject to adjustment upon a "fundamental change", as defined in the indenture, if the Company calls all or any portion of the notes for optional redemption, or subject to anti-dilution provisions provided in the indenture. Holders may convert their Convertible Notes due 2027 at their option at any time prior to the close of business on the business day immediately preceding June 1, 2027, only under the following circumstances: (a) during any calendar quarter commencing after the calendar quarter ending on December 31, 2022 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock, for at least 20 trading days (whether or not consecutive) in the period of 30 consecutive trading days ending on the last trading day of the calendar quarter immediately preceding the calendar quarter in which the conversion occurs, is more than 130% of the conversion price of the Notes in effect on each applicable trading day; (b) during the five five Upon conversion, the Company may pay cash, shares of Envestnet’s common stock or a combination of cash and stock, as determined by the Company in its discretion. As of December 31, 2022, the Convertible Notes due 2027 are presented at their gross proceeds of $575.0 million less unamortized debt issuance costs of $16.0 million. In connection with the issuance of the Convertible Notes due 2027, the Company incurred a total of $16.3 million of issuance costs in 2022, which are being amortized and recorded as additional interest expense over the life of the Convertible Notes due 2027. See “Note 18—Net Income (Loss) Per Share” for further discussion of the effect of conversion on net income per common share. In connection with the pricing of the Convertible Notes due 2027, the Company entered into privately negotiated Capped Call Transactions for a total cost of approximately $79.6 million. The Capped Call Transactions initially cover the number of shares of our common stock underlying the Convertible Notes due 2027, subject to customary anti-dilution adjustments. The Capped Call Transactions generally are expected to reduce the potential dilutive effect on the common stock upon any conversion of the Convertible Notes due 2027 and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted Convertible Notes due 2027, as the case may be, with such reduction and/or offset subject to a cap, subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions allow the Company to purchase shares of our common stock at a strike price equal to the initial conversion price of $73.37 per share and are subject to a cap of $110.74 per share, subject to certain adjustments under the terms of the Capped Call Transactions. The options underlying the Capped Call Transactions can, at the Company’s option, remain outstanding until the maturity date for the Convertible Notes due 2027 of December 1, 2027, even if all or a portion of the Convertible Notes due 2027 are converted, repurchased or redeemed prior to such date. Interest Expense Interest expense was comprised of the following and is included in other income (expense), net in the consolidated statements of operations: Year Ended December 31, 2022 2021 2020 (in thousands) Coupon interest $ 10,897 $ 9,919 $ 7,442 Amortization of issuance costs (1) 4,678 5,745 3,396 Undrawn and other fees 1,268 1,267 796 Accretion of debt discount — — 14,084 Interest on revolving credit facility — — 5,786 Total interest expense $ 16,843 $ 16,931 $ 31,504 __________________________________________________________ (1) For the year ended December 31, 2022, amount includes a net gain on the extinguishment of debt of $1.7 million related to the partial repurchase of Convertible Notes due 2023 and Convertible Notes due 2025. For the years ended December 31, 2022, 2021 and 2020, total interest expense related to the Convertible Notes due 2023 was $20.7 million, $8.0 million, and $17.1 million, respectively, with coupon interest expense of $5.4 million, $6.0 million, and $6.0 million, and amortization of debt discount, issuance costs of $1.9 million, $2.0 million, and $11.1 million, respectively. For the year ended December 31, 2022, recognized in total interest expense of $20.7 million includes a loss on extinguishment of debt of $13.4 million in connection with the repurchase of $300.0 million in Convertible Notes due 2023. Excluding the impact of the repurchase, the effective interest rate of the Convertible Notes due 2023 was approximately 2.4%, 2.4%, and 6.0% for the years ended December 31, 2022, 2021, and 2020, respectively. The effective interest rate of the Convertible Notes due 2023 is equal to the stated interest rate plus the amortization of the debt issuance costs subsequent to adoption of ASU 2020-06. For the years ended December 31, 2022, 2021 and 2020, total interest expense related to the Convertible Notes due 2025 was $(8.6) million, $6.8 million, and $6.9 million, respectively, with coupon interest expense of $3.7 million, $3.9 million, and $1.4 million, and amortization of debt discount and issuance costs of $2.8 million, $2.9 million, and $5.5 million, respectively. For the year ended December 31, 2022, recognized in total interest expense of $8.6 million includes a gain on extinguishment of debt of $15.1 million in connection with the repurchase of $200.0 million in Convertible Notes due 2025, Excluding the impact of the repurchase, the effective interest rate of the Convertible Notes due 2025 was approximately 1.3%, 1.3%, and 4.0% for the years ended December 31, 2022, 2021, and 2020, respectively. The effective interest rate of the Convertible Notes due 2025 was equal to the stated interest rate plus the amortization of the debt issuance costs subsequent to adoption of ASU 2020-06. For the year ended December 31, 2022, total interest expense related to the Convertible Notes due 2027 was $2.2 million with coupon interest expense of $1.8 million and issuance costs of $0.4 million. The effective interest rate of the Convertible Notes due 2027 for the year ended December 31, 2022 was approximately 3.2%. The effective interest rate of the Convertible Notes due 2027 was equal to the stated interest rate plus the amortization of the debt issuance costs. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The following table illustrates information for the Company's operating leases as of and for the year ended December 31, 2022 and 2021: December 31, 2022 2021 (in thousands) Total operating lease cost $ 15,157 $ 18,600 Short-term lease cost 12,445 4,940 Weighted average remaining lease term (in years) 9.2 9.8 Weighted average discount rate 5.0 % 5.1 % Cash paid for amounts included in the measurement of the operating lease liability 15,748 18,052 The Company did not have significant sublease income or variable lease cost for the years ended December 31, 2022 and 2021. Future minimum lease payments under non-cancellable leases, as of December 31, 2022, were as follows: Operating Leases (in thousands) Years Ending December 31, 2023 $ 16,058 2024 17,925 2025 15,372 2026 15,242 2027 15,370 Thereafter 74,709 Total future minimum lease payments 154,676 Less imputed interest (32,075) Total operating lease liabilities $ 122,601 As a result of office closures in 2022, 2021 and 2020, the Company wrote down operating lease right-of-use assets totaling $13.0 million, $1.5 million and $2.7 million, respectively, as general and administrative expense in the consolidated statements of operations. As of December 31, 2022, the Company has several operating lease commitments, primarily for our corporate offices, that have not yet commenced. These operating leases are expected to commence before January 2024 with lease terms of up to 10 years. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity In 2016, the Company announced that its Board of Directors had authorized a share repurchase program under which the Company may repurchase up to 2,000,000 shares of its common stock. The timing and volume of share repurchases will be determined by the Company’s management based on its ongoing assessments of the capital needs of the business, the market price of its common stock and general market conditions. No time limit has been set for the completion of the repurchase program, and the program may be suspended or discontinued at any time. The repurchase program authorizes the Company to purchase its common stock from time to time in the open market (including pursuant to a “Rule 10b5-1 plan”), in block transactions, in privately negotiated transactions, through accelerated stock repurchase programs, through option or other forward transactions or otherwise, all in compliance with applicable laws and other restrictions. Throughout 2022, we repurchased 1,569,642 shares of the Company's common stock for $95.0 million. Throughout 2021, we repurchased 55,488 shares of the Company's common stock for $4.0 million. As of December 31, 2022, a maximum of 331,260 shares may yet be purchased under this program. On December 20, 2018, the Company issued and sold to BlackRock, Inc. (“BlackRock”) warrants to purchase approximately 470,000 common shares at an exercise price of $65.16 per share, subject to customary anti-dilution adjustments. The warrants were exercisable at BlackRock’s option for four years from the date of issuance. The warrants were unexercised upon expiration on December 20, 2022. In December 2021, the Company issued 78,677 shares of the Company’s common stock for the settlement of liabilities connected with a prior acquisition. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets as of December 31, 2022 and December 31, 2021, based on the three-tier fair value hierarchy: December 31, 2022 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 2,628 $ 2,628 $ — $ — Assets to fund deferred compensation liability 10,074 — — 10,074 Total assets $ 12,702 $ 2,628 $ — $ 10,074 Liabilities: Deferred compensation liability $ 8,088 $ 8,088 $ — $ — Total liabilities $ 8,088 $ 8,088 $ — $ — December 31, 2021 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 2,684 $ 2,684 $ — $ — Assets to fund deferred compensation liability 11,140 — — 11,140 Total assets $ 13,824 $ 2,684 $ — $ 11,140 Liabilities: Contingent consideration $ 743 $ — $ — $ 743 Deferred compensation liability 10,418 10,418 — — Total liabilities $ 11,161 $ 10,418 $ — $ 743 Level I assets and liabilities include money-market funds not insured by the Federal Deposit Insurance Corporation (“FDIC”) and deferred compensation liability. The Company periodically invests excess cash in money-market funds not insured by the FDIC. The Company believes that the investments in money market funds are on deposit with creditworthy financial institutions and that the funds are highly liquid. These money-market funds are considered Level I and are included in cash and cash equivalents in the consolidated balance sheets. The fair values of the Company’s investments in money-market funds are based on the daily quoted market prices for the net asset value of the various money market funds. The fair market value of the deferred compensation liability is based on the daily quoted market prices for the net asset value of the various funds in which the participants have selected, and is included in other non-current liabilities in the consolidated balance sheets. Level III assets and liabilities consist of the estimated fair values of contingent consideration as well as the assets to fund the Company's deferred compensation liability. The fair market value of the assets used to fund the Company's deferred compensation liability approximates the cash surrender value of the Company's life insurance premiums and is included in other non-current assets in the consolidated balance sheets. Fair Value of Contingent Consideration Liabilities The fair value of the contingent consideration liabilities related to certain of the Company's acquisitions were estimated using a discounted cash flow method with significant inputs that are not observable in the market and thus represents a Level III fair value measurement. The significant inputs in the Company's Level III fair value measurement not supported by market activity included its assessments of expected future cash flows related to these acquisitions and their ability to meet the target performance objectives during the subsequent periods from the date of acquisition, which management believes are appropriately discounted considering the uncertainties associated with these obligations, and are calculated in accordance with the terms of their respective agreements. The Company will continue to reassess the fair values of the contingent consideration liabilities at each reporting date until settlement. Changes to these estimated fair values will be recognized in the Company's earnings and included in general and administration expenses in the consolidated statements of operations. The table below presents a reconciliation of the Company's contingent consideration liabilities, which were measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2021 to December 31, 2022: Fair Value of Contingent Consideration Liabilities (in thousands) Balance at December 31, 2021 $ 743 Payments of contingent consideration liability (743) Balance at December 31, 2022 $ — The table below presents a reconciliation of assets used to fund deferred compensation liability, which was measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2021 to December 31, 2022: Fair Value of Assets Used to Fund Deferred Compensation Liability (in thousands) Balance at December 31, 2021 $ 11,140 Contributions 649 Fair value adjustments and fees (1,715) Balance at December 31, 2022 $ 10,074 The fair market value of the assets used to fund the Company's deferred compensation liability is based upon the cash surrender value of the Company's life insurance premiums. The value of the assets used to fund the Company's deferred compensation liability, which are included in other non-current assets in the consolidated balance sheets, decreased due to losses on the underlying investment vehicles. These losses are recognized in the Company's earnings and included in general and administration expenses 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 when changes in circumstances cause 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 I, II and III during the year ended December 31, 2022. Fair Value of Debt Agreements and Other Financial Assets and Liabilities The Company considered its Convertible Notes due 2023, Convertible Notes due 2025 and Convertible Notes due 2027 to be Level II liabilities as of December 31, 2022 and 2021, and used a market approach to calculate their respective fair values. The estimated fair value for each convertible note was determined based on the estimated or actual bids and offers in an over-the-counter market on December 31, 2022 and 2021 (See “Note 10—Debt”). In May 2018, the Company issued $345.0 million of Convertible Notes due 2023. As of December 31, 2022 and 2021, the carrying value of the Convertible Notes due 2023 equaled $44.9 million and $342.0 million, respectively, and represented the aggregate principal amount outstanding less the debt issuance costs. As of December 31, 2022 and 2021, the estimated fair value of the Convertible Notes due 2023 was $46.1 million and $439.9 million, respectively. In August 2020, the Company issued $517.5 million of Convertible Notes due 2025. As of December 31, 2022 and 2021, the carrying value of the Convertible Notes due 2025 equaled $312.7 million and $506.8 million, and represented the aggregate principal amount outstanding less the debt issuance costs. As of December 31, 2022 and 2021, the estimated fair value of the Convertible Notes due 2025 was $293.7 million and $526.1 million, respectively. In November 2022, the Company issued $575.0 million of Convertible Notes due 2027. As of December 31, 2022, the carrying value of the Convertible Notes due 2027 equaled $559.0 million and represented the aggregate principal amount outstanding less the debt issuance costs. As of December 31, 2022, the estimated fair value of the Convertible Notes due 2027 was $606.1 million. As of December 31, 2022 and 2021, no advances were outstanding on the revolving credit facility under the Credit Agreement. The Company considered the revolving credit facility to be a Level I liability as of December 31, 2022 and 2021 (See “Note 10—Debt”). The Company considered the recorded value of its other financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable and accounts payable, to approximate the fair value of the respective assets and liabilities at December 31, 2022 based upon the short-term nature of these assets and liabilities. |
Revenues and Cost of Revenues
Revenues and Cost of Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues and Cost of Revenues | Revenues and Cost of Revenues Disaggregation of Revenue The following table presents the Company’s revenues disaggregated by major source: Year Ended December 31, 2022 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenues: Asset-based $ 738,228 $ — $ 738,228 Subscription-based 294,997 182,847 477,844 Total recurring revenues 1,033,225 182,847 1,216,072 Professional services and other revenues 16,568 7,144 23,712 Total revenues $ 1,049,793 $ 189,991 $ 1,239,784 Year Ended December 31, 2021 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenues: Asset-based $ 709,376 $ — $ 709,376 Subscription-based 267,720 186,269 453,989 Total recurring revenues 977,096 186,269 1,163,365 Professional services and other revenues 14,070 9,082 23,152 Total revenues $ 991,166 $ 195,351 $ 1,186,517 Year Ended December 31, 2020 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenues: Asset-based $ 540,947 $ — $ 540,947 Subscription-based 248,810 177,697 426,507 Total recurring revenues 789,757 177,697 967,454 Professional services and other revenues 16,333 14,443 30,776 Total revenues $ 806,090 $ 192,140 $ 998,230 One customer accounted for more than 10% of the Company’s total revenues, substantially all of which are included within the Envestnet Wealth Solutions segment: Year Ended December 31, 2022 2021 2020 Fidelity 16 % 17 % 15 % The following table presents the Company’s revenues disaggregated by geography, based on the billing address of the customer: Year Ended December 31, 2022 2021 2020 (in thousands) United States $ 1,218,254 $ 1,166,251 $ 977,047 International (1) 21,530 20,266 21,183 Total revenues $ 1,239,784 $ 1,186,517 $ 998,230 __________________________________________________________ (1) No foreign country accounted for more than 10% of total revenues. Remaining Performance Obligations As of December 31, 2022, the Company's estimated revenue expected to be recognized in the future related to performance obligations associated with existing customer contracts that are partially or wholly unsatisfied is approximately $544.6 million. We expect to recognize approximately 43% of this revenue in 2023, approximately 42% throughout 2024 and 2025, with the balance recognized thereafter. These remaining performance obligations are not indicative of revenue for future periods. Contract Balances Total deferred revenue increased $4.9 million for the year ended December 31, 2022 and decreased $2.0 million for the year ended December 31, 2021. These fluctuations are primarily due to timing differences related to the satisfaction of outstanding performance obligations and the Company's billing cycles during the years then ended. The majority of the Company's deferred revenue as of December 31, 2022 will be recognized over the course of the next twelve months. The amount of revenue recognized that was included in the opening deferred revenue balance was $33.1 million and $33.8 million for the years ended December 31, 2022 and 2021, respectively. The majority of this revenue consists of subscription-based services and professional services arrangements. The amount of revenue recognized from performance obligations satisfied in prior periods was not material. Deferred Sales Incentive Compensation Deferred sales incentive compensation was $11.0 million and $11.8 million as of December 31, 2022 and 2021, respectively. Amortization expense for the deferred sales incentive compensation was $4.3 million and $4.4 million for the years ended December 31, 2022 and 2021, respectively. Deferred sales incentive compensation is included in other non-current assets on the consolidated balance sheets and amortization expense is included in compensation and benefits expenses on the consolidated statements of operations. No significant impairment loss for capitalized costs was recorded during the periods. Cost of Revenues The following table summarizes cost of revenues by revenue category: Year Ended December 31, 2022 2021 2020 (in thousands) Asset-based $ 430,345 $ 393,717 $ 278,569 Subscription-based 30,613 29,445 26,934 Professional services and other 7,502 561 426 Total cost of revenues $ 468,460 $ 423,723 $ 305,929 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On June 22, 2010, the Board of Directors approved the 2010 Long-Term Incentive Plan (“2010 Plan”), effective upon the closing of the Company’s initial public offering. The 2010 Plan provides for the grant of options, stock appreciation rights, Full Value Awards (as defined in the 2010 Plan agreement) and cash incentive awards to employees, consultants and non-employee directors to purchase common stock, which vest over time and have a ten-year contractual term. As approved by the Company’s shareholders, the 2010 Plan has since been amended whereby the maximum number of shares of common stock that may be delivered under the 2010 Plan is 12,375,000. Stock options and stock appreciation rights are granted with an exercise price no less than the fair-market-value price of the common stock at the date of the grant. As of December 31, 2022, the maximum number of options and restricted stock available for future issuance under the Company’s plans is 2,579,021. As a result of the PIEtech acquisition in 2019, the Company adopted the 2019 Equity Plan in order to make inducement grants to certain PIEtech employees who will join Envestnet | MoneyGuide. Envestnet agreed to grant at future dates, not earlier than the sixty day anniversary of the PIEtech Acquisition, up to 301,469 shares of Envestnet common stock in the form of RSUs and PSUs pursuant to the 2019 Equity Plan. The RSUs vest over time and the PSUs vest upon the achievement of meeting certain performance conditions as well as a subsequent service condition. The Company is recognizing the estimated expense on a graded-vesting method over a requisite service period of three Company estimates the expected vesting amount and recognizes compensation expense only for those awards expected to vest. This estimate is reassessed by management each reporting period and may change based upon new facts and circumstances. Changes in assumptions impact the total amount of expense and are recognized over the vesting period. Stock-based compensation expense under the Company's plans was as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Stock-based compensation expense $ 79,581 $ 67,525 $ 56,292 Tax effect on stock-based compensation expense (20,293) (17,219) (14,354) Net effect on income $ 59,288 $ 50,306 $ 41,938 The tax effect on stock-based compensation expense above was calculated using a blended statutory rate of 25.5% for each of the years ended December 31, 2022, 2021 and 2020 respectively. Stock Options The following weighted average assumptions were used to value options granted during the periods indicated: Year Ended December 31, 2022 2021 2020 Grant date fair value of options $ — $ 31.23 $ — Volatility — % 42.1 % — % Risk-free interest rate — % 0.4 % — % Dividend yield — % — % — % Expected term (in years) 0.0 6.5 0.0 The following table summarizes option activity under the Company’s plans: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (Years) (in thousands) Outstanding as of December 31, 2019 1,150,586 $ 25.66 3.4 $ 50,590 Exercised (705,333) 18.83 Forfeited (7,213) 48.70 Outstanding as of December 31, 2020 438,040 36.28 4.1 20,156 Granted 4,781 74.83 Exercised (76,303) 27.37 Forfeited (1,277) 49.02 Outstanding as of December 31, 2021 365,241 38.61 3.3 14,878 Exercised (82,802) 31.67 Forfeited (4,904) 72.96 Outstanding as of December 31, 2022 277,535 40.07 2.2 6,005 Options exercisable 277,303 39.69 2.2 6,005 The aggregate intrinsic values in the table below represent the total pre-tax intrinsic value (the aggregate difference between the fair value of the Company’s common stock on December 31, 2022, 2021 and 2020 of $61.70, $79.34 and $82.29, respectively, and the exercise price of in-the-money options) that would have been received by the option holders had all option holders exercised their options as of that date. Other information is as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Total intrinsic value of options exercised $ 2,650 $ 3,815 $ 35,687 Cash received from exercises of stock options 2,620 2,090 10,760 Exercise prices of stock options outstanding as of December 31, 2022 range from $15.34 to $74.83. At December 31, 2022, there was an immaterial amount of unrecognized compensation expense related to unvested stock options. Restricted Stock Units and Performance Stock Units Periodically, the Company grants restricted stock units and performance-based stock units to employees. Restricted stock units vest one-third on the first anniversary of the grant date and quarterly thereafter. Performance-based restricted units vest upon the achievement of certain pre-established business and financial metrics as well as a subsequent service condition. The business and financial metrics governing the vesting of these performance-based restricted stock units provide thresholds that dictate the number of shares to vest upon each evaluation date, which range from 0% to 150% of the original grant number. If these metrics are achieved, as defined in the individual grant terms, these shares would cliff vest three years from the grant date. The following is a summary of the activity for unvested restricted stock units granted under the Company’s plans: RSUs PSUs Number of Shares Weighted-Average Grant Date Fair Value per Share Number of Shares Weighted-Average Grant Date Fair Value per Share Outstanding as of December 31, 2019 1,318,870 $ 58.88 254,118 $ 67.96 Granted 970,390 74.61 81,689 83.47 Vested (804,982) 57.77 — — Forfeited (138,931) 62.14 (33,010) 64.70 Outstanding as of December 31, 2020 1,345,347 70.56 302,797 72.50 Granted 1,195,313 71.03 129,865 70.92 Vested (828,942) 69.50 (62,524) 61.53 Forfeited (204,294) 70.71 (10,954) 78.97 Outstanding as of December 31, 2021 1,507,424 71.50 359,184 73.64 Granted 1,401,742 73.13 113,269 68.47 Vested (908,362) 71.22 (155,417) 66.22 Forfeited (318,828) 73.16 (57,987) 78.17 Outstanding as of December 31, 2022 1,681,976 72.69 259,049 74.83 At December 31, 2022, there was $88.2 million of unrecognized compensation expense related to unvested restricted stock units, which the Company expects to recognize over a weighted-average period of 1.8 years. At December 31, 2022, there was $4.8 million of unrecognized compensation expense related to unvested performance-based restricted stock units, which the Company expects to recognize over a weighted-average period of 1.5 years. In connection with the unexpected death of our former CEO in 2019, the Company modified certain of his outstanding equity awards. The modifications included the extension of exercise periods for his outstanding stock options and the immediate vesting of his outstanding RSU s. All unvested PSUs were forfeited . In 2020, the Company recognized a gain of $2.5 million in other income (expense), net as a result of a fair value adjustment upon settlement of the former CEO’s stock options. |
Benefit Plan
Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plan | Benefit Plan The Company sponsors a profit sharing and savings plan under Section 401(k) of the Internal Revenue Code, covering substantially all domestic employees. The Company made voluntary employer matching contributions as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Voluntary employer matching contributions $ 8,087 $ 6,873 $ 6,247 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income tax expense (benefit) was generated in the following jurisdictions: Year Ended December 31, 2022 2021 2020 (in thousands) Domestic $ (89,000) $ 9,730 $ (17,234) Foreign 10,581 10,631 9,189 Total $ (78,419) $ 20,361 $ (8,045) The components of the income tax expense (benefit) charged to operations are summarized as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Current: Federal $ 1,185 $ — $ (1,086) State 6,964 3,488 2,111 Foreign 2,402 4,499 (4,542) 10,551 7,987 (3,517) Deferred: Federal (2,453) 4,021 (2,659) State (1,439) (3,548) 1,158 Foreign 402 (793) (383) (3,490) (320) (1,884) Total $ 7,061 $ 7,667 $ (5,401) Net deferred tax assets (liabilities) consisted of the following: December 31, 2022 2021 (in thousands) Deferred revenue $ 8,945 $ 6,436 Prepaid expenses and accrued expenses 8,847 8,099 Right-of-use assets (20,388) (22,190) Lease liabilities 31,328 28,994 Net operating loss and tax credit carryforwards 64,590 85,698 Property and equipment and intangible assets (94,061) (100,314) Stock-based compensation expense 10,559 9,652 Investment in partnerships 2,836 2,941 Convertible Notes 20,440 — R&D expenditures 43,956 — Withholding taxes (4,841) — Other 196 (173) Total deferred tax assets, net 72,407 19,143 Less: valuation allowance (88,603) (40,164) Net deferred tax liabilities $ (16,196) $ (21,021) Beginning in 2022, the Tax Cuts and Jobs Act ("TCJA") eliminates the option to deduct research and development ("R&D") expenditures currently and requires taxpayers to amortize them pursuant to IRC Section 174. As a result, in 2023, the Company expects the amount of cash paid for income taxes to increase compared to 2022. The deferred tax liability that is not being recorded because of the Company's assertion to permanently reinvest the earnings of its India subsidiaries is $2.0 million related to the withholding tax in India, net of an assumed foreign tax deduction for this amount in the U.S. The valuation allowance for deferred tax assets as of December 31, 2022 and 2021 was $88.6 million and $40.2 million, respectively. The change in the valuation allowance from 2021 to 2022 was primarily related to the 401kplans.com, Truelytics, and Redi2 acquisitions, the increased deferred tax assets for R&D expenditures, original issue discount on convertible debt, and additional valuation allowance on state NOLs. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some or all of the deferred tax assets will be realized. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence is the cumulative pre-tax loss incurred over the three years ended December 31, 2022. Such objective evidence limits the ability to consider other subjective evidence, such as the Company's projections for future growth. On the basis of this evaluation, as of December 31, 2022, a valuation allowance of $88.6 million has been recorded to record only the portion of the deferred tax asset that is more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence, such as the Company's projections for growth. The expected income tax provision (benefit) calculated at the statutory federal rate differs from the actual provision as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Tax provision (benefit), at U.S. federal statutory tax rate $ (15,515) $ 4,402 $ (1,787) State income tax provision (benefit), net of federal benefit (3,463) 856 (2,461) Effect of stock-based compensation excess tax benefit 717 (364) (9,349) Effect of limitation on executive compensation 2,511 1,678 961 Effect of permanent items 869 661 (703) Effect of India partnerships 1,644 1,422 2,977 Change in valuation allowance 26,974 5,660 16,210 Effect of change in state and foreign income tax rates (254) (1,184) 1,323 Uncertain tax positions (617) 158 (6,093) Research and development credits (10,993) (5,695) (5,939) Change in India indefinite reinvestment assertion 4,372 — — Other 816 73 (540) Income tax provision (benefit) $ 7,061 $ 7,667 $ (5,401) At December 31, 2022, the Company had NOL carryforwards, before any uncertain tax position reserves, for federal income tax purposes of approximately $69 million available to offset future federal taxable income, if any, of which $32 million expire through 2036 and $37 million are carried forward indefinitely. In addition, as of December 31, 2022, the Company had NOL carryforwards for state income tax purposes of approximately $221 million available to reduce future income subject to income taxes. The state NOL carryforwards that are subject to expiration expire through 2041. In addition, the Company had R&D credit carryforwards of approximately $38 million for federal and $14 million for California and Illinois, as well as foreign tax credits of $0.9 million available to offset federal income tax. Federal R&D credits began to expire in 2022 will expire through 2041. California R&D credits carryover indefinitely. A reconciliation of the beginning and ending amount of unrecognized tax benefit follows: Year Ended December 31, 2022 2021 2020 (in thousands) Balance at beginning of year $ 14,517 $ 15,132 $ 18,939 Additions based on tax positions related to the current year 2,522 1,631 1,420 Reductions based on tax positions related to prior years (296) (550) (2,793) Reductions for settlements with taxing authorities related to prior years — (394) (2,434) Reductions for lapses of statute of limitations (3,131) (1,302) — Balance at end of year $ 13,612 $ 14,517 $ 15,132 At December 31, 2022, the amount of unrecognized tax benefits that would benefit the Company’s effective tax rate, if recognized, was $13.6 million. At this time, the Company estimates that the liability for unrecognized tax benefits will decrease by an estimated $0.3 million in the next twelve months as statutes of limitations expire. The Company recognizes potential interest and penalties related to unrecognized tax benefits in income tax expense. For the years ended December 31, 2022 and 2021, income tax expense (benefit) included $0.3 million and $0.6 million, respectively, of potential interest and penalties related to unrecognized tax benefits. The Company had accrued interest and penalties of $2.0 million and $1.9 million as of December 31, 2022 and 2021, 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 was notified by the Internal Revenue Service (“IRS”) in August 2021 that the calendar year 2018 federal income tax return had been selected for audit by the IRS. The Company’s tax returns for the 2018-2021 calendar years remain open to examination by the IRS in their entirety. With respect to state taxing jurisdictions, the Company’s tax returns for the 2017-2021 calendar years remain open to examination by various state revenue services. The Company's Indian subsidiaries are currently under examination by the India Tax Authority for the fiscal years ended March 31, 2020, 2019, 2018, 2017, 2012, 2011 and 2010. Based on the outcome of examinations of the Company's subsidiaries 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 sheets. It is possible that one or more of these audits may be finalized within the next twelve months. Inflation Reduction Act of 2022 On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 ("IRA"), which, among other things, implements a 15% minimum tax on book income of certain large corporations and a 1% excise tax on net stock repurchases. The provisions of the IRA are effective beginning in 2023. The Company is currently evaluating the impacts of this act on the consolidated financial statements. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per common share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted net income (loss) per share, the basic weighted average number of shares is increased by the dilutive effect of stock options, common warrants, restricted stock awards, restricted stock units and Convertible Notes, if dilutive. Prior to January 1, 2021, the Company accounted for the effect of its convertible notes using the treasury stock method since they may be settled in cash, shares or a combination thereof at the Company's option. As a result, the Convertible Notes due 2023 and Convertible Notes due 2025 had no effect on diluted net income per share until the Company’s stock price exceeded the conversion price of $68.31 per share and $106.74 per share, respectively, and certain other criteria were met, or if the trading price of the convertible notes met certain criteria. Pursuant to the adoption of ASU 2020-06 on January 1, 2021, the Company now accounts for the effect of its convertible notes on diluted net income per share using the if-converted method (See “Note 2—Summary of Significant Accounting Policies” and “Note 10—Debt”). The following table provides the numerators and denominators used in computing basic and diluted net income (loss) per share attributable to Envestnet, Inc.: Year Ended December 31, 2022 2021 2020 (in thousands, except share and per share amounts) Net income (loss) attributable to Envestnet, Inc. ( a ) $ (80,939) $ 13,296 $ (3,110) Interest and gain on settlement of Convertible Notes due 2025, net of interest and tax (9,524) — — Net income (loss) attributable to Envestnet, Inc. - Diluted ( b ) $ (90,463) $ 13,296 $ (3,110) Weighted-average common shares outstanding: Basic ( c ) 55,199,482 54,470,975 53,589,232 Effect of dilutive shares: Options to purchase common stock — 206,022 — Unvested restricted stock units — 633,384 — Convertible Notes 1,642,643 — — Warrants — 73,715 — Diluted ( d ) 56,842,125 55,384,096 53,589,232 Net income (loss) per share attributable to Envestnet, Inc common stock: Basic ( a/c ) $ (1.47) $ 0.24 $ (0.06) Diluted ( b/d ) $ (1.59) $ 0.24 $ (0.06) Securities that were anti-dilutive and therefore excluded from the computation of diluted net income (loss) per share were as follows: December 31, 2022 2021 2020 Options to purchase common stock 277,535 — 438,040 Unvested RSU's and PSU's 1,941,025 — 1,648,144 Convertible Notes (1) 11,470,646 9,898,549 9,898,549 Warrants — — 470,000 Total anti-dilutive securities 13,689,206 9,898,549 12,454,733 __________________________________________________________ (1) |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Business segments are generally organized around the Company's business services. The Company's business segments are: • Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions to enable them to deliver an intelligent financial life to their clients. • Envestnet Data & Analytics – a leading data aggregation, intelligence, and experiences platform that powers data connectivity and business intelligence across digital financial services to enable them to deliver an Intelligent Financial Life to their clients. The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes. Nonsegment operating expenses may include salary and benefits for certain corporate officers, certain types of professional service expenses and insurance, acquisition related transaction costs, certain restructuring charges and other non-recurring and/or non-operationally related expenses. Intersegment revenues were not material for the year ended December 31, 2022 and 2021. See “Note 14—Revenues and Cost of Revenues” for detail of revenues by segment. The following table presents a reconciliation from income (loss) from operations by segment to consolidated net income (loss) attributable to Envestnet, Inc.: Year Ended December 31, 2022 2021 2020 (in thousands) Envestnet Wealth Solutions $ 55,972 $ 124,651 $ 91,501 Envestnet Data & Analytics (20,870) 2,033 (9,943) Nonsegment operating expenses (101,126) (86,143) (62,117) Income (loss) from operations (66,024) 40,541 19,441 Interest expense, net of interest income (12,659) (16,104) (30,392) Other income (expense), net 264 (4,076) 2,906 Consolidated income (loss) before income tax benefit (78,419) 20,361 (8,045) Income tax provision (benefit) 7,061 7,667 (5,401) Consolidated net income (loss) (85,480) 12,694 (2,644) Add: Net (income) loss attributable to non-controlling interest 4,541 602 (466) Consolidated net income (loss) attributable to Envestnet, Inc. $ (80,939) $ 13,296 $ (3,110) A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures by segment follows: December 31, 2022 2021 Segment assets: (in thousands) Envestnet Wealth Solutions $ 1,503,646 $ 1,720,779 Envestnet Data & Analytics 608,519 520,403 Consolidated total assets $ 2,112,165 $ 2,241,182 Year Ended December 31, 2022 2021 2020 Segment depreciation and amortization: (in thousands) Envestnet Wealth Solutions $ 96,658 $ 90,073 $ 80,714 Envestnet Data & Analytics 33,890 27,694 32,947 Consolidated depreciation and amortization $ 130,548 $ 117,767 $ 113,661 Year Ended December 31, 2022 2021 2020 Segment capital expenditures: (in thousands) Envestnet Wealth Solutions $ 79,993 $ 65,264 $ 46,891 Envestnet Data & Analytics 25,332 23,637 20,105 Consolidated capital expenditures $ 105,325 $ 88,901 $ 66,996 |
Geographical Information
Geographical Information | 12 Months Ended |
Dec. 31, 2022 | |
Segments, Geographical Areas [Abstract] | |
Geographical Information | Geographical Information The following table sets forth certain long-lived assets including property and equipment, net and internally developed software, net by geographic area: December 31, 2022 2021 (in thousands) United States $ 245,817 $ 180,680 India 1,093 2,923 Other 91 271 Total long-lived assets, net $ 247,001 $ 183,874 See “Note 14—Revenues and Cost of Revenues” for detail of revenues by geographic area. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations and Indemnifications 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 consolidated balance sheets. The Company enters into unconditional purchase obligations arrangements for certain of its services that it receives in the normal course of business. As of December 31, 2022, the Company estimated future minimum unconditional purchase obligations of approximately $103 million. This amount increased by $65 million compared to the prior year primarily driven by the Company's entry into the outsourcing agreement with TCS. In connection with certain of our acquisitions, we have entered into arrangements whereby we have agreed to pay performance bonuses up to $20 million based upon the achievement of certain performance targets. As of December 31, 2022, the liabilities associated with these performance bonuses were immaterial. We have also committed $12.5 million in future funding to certain of our equity method investees. On April 1, 2022, the Company entered into a purchase agreement with a privately held company to acquire the technology solutions being developed by this privately held company for a purchase price of $9.0 million. The Company has paid a $4.0 million advance during the year ended December 31, 2022. This advance is included in other non-current assets in the consolidated balance sheets. Legal Proceedings The Company and its subsidiary, Yodlee, Inc. (“Yodlee”), have been named as defendants in a lawsuit filed on July 17, 2019, by FinancialApps, LLC (“FinancialApps”) in the United States District Court for the District of Delaware. The case caption is FinancialApps, LLC v. Envestnet Inc., et al., No. 19-cv-1337 (D. Del.). FinancialApps alleges that, after entering into a 2017 services agreement with Yodlee, Envestnet and Yodlee breached the agreement and misappropriated proprietary information to develop competing credit risk assessment software. The complaint includes claims for, among other things, misappropriation of trade secrets, fraud, tortious interference with prospective business opportunities, unfair competition, copyright infringement and breach of contract. FinancialApps is seeking significant monetary damages and various equitable and injunctive relief. On September 17, 2019, the Company and Yodlee filed a motion to dismiss certain of the claims in the complaint filed by FinancialApps, including the copyright infringement, unfair competition and fraud claims. On August 25, 2020, the District Court granted in part and denied in part the Company and Yodlee’s motion. Specifically, the Company and Yodlee prevailed on FinancialApps’ counts alleging copyright infringement and violations of the Illinois Deceptive Trade Practices Act. And while the Court was receptive to Envestnet and Yodlee’s argument that several of FinancialApps’ other counts are based on allegations that amount to copyright infringement—and therefore should fail due to copyright preemption—the Court found that FinancialApps had alleged enough conduct distinct from copyright infringement to survive dismissal at this early stage. On October 30, 2019, the Company and Yodlee filed counterclaims against FinancialApps. Yodlee alleges that FinancialApps fraudulently induced it to enter into contracts with FinancialApps, then breached those contracts. FinancialApps has filed a motion to dismiss Yodlee’s counterclaims. On September 15, 2020, the District Court denied FinancialApps’ motion on all counts except for the breach-of-contract claim which was dismissed on a pleading technicality without prejudice. On that count, the Court granted Yodlee leave to amend its counterclaim, cure the technical deficiency, and reassert its claim. Yodlee and Envestnet filed amended counterclaims on September 30, 2020. The amended counterclaims (1) cure that technical deficiency and reassert Yodlee’s contract counterclaim; and (2) broaden the defamation counterclaims arising out of various defamatory statements FinancialApps disseminated in the trade press after filing the lawsuit. On January 14, 2021, the Court ordered that (i) FinancialApps’s claims against Yodlee—as well as Yodlee’s counterclaims against FinancialApps—must be tried before the judge instead of a jury pursuant to a jury waiver provision in the parties’ agreement; and (ii) FinancialApps’s claims against Envestnet (and Envestnet’s counterclaim) must be heard by a jury. The Court has scheduled the Envestnet jury trial to take place before the Yodlee bench trial. Fact discovery closed on April 23, 2021, other than a few outstanding matters, and expert discovery concluded on September 30, 2022. The parties are currently briefing summary judgment and Daubert motions. The Company believes FinancialApps’s allegations are without merit and will continue to defend the claims against it and litigate the counterclaims vigorously. The Company and Yodlee were also named as defendants in a putative class action lawsuit filed on August 25, 2020, by Plaintiff Deborah Wesch in the United States District Court for the Northern District of California. On October 21, 2020, an amended class action complaint was filed by Plaintiff Wesch and nine additional named plaintiffs. The case caption is Deborah Wesch, et al., v. Yodlee, Inc., et al., Case No. 3:20-cv-05991-SK. Plaintiffs allege that Yodlee unlawfully collected their financial transaction data when plaintiffs linked their bank accounts to a mobile application that uses Yodlee’s API, and plaintiffs further allege that Yodlee unlawfully sold the transaction data to third parties. The complaint alleges violations of certain California statutes and common law, including the Unfair Competition Law, and federal statutes, including the Stored Communications Act. Plaintiffs are seeking monetary damages and equitable and injunctive relief on behalf of themselves and a putative nationwide class and California subclass of persons who provided their log-in credentials to a Yodlee-powered app in an allegedly similar manner from 2014 to the present. The Company believes that it is not properly named as a defendant in the lawsuit and it further believes, along with Yodlee, that plaintiffs’ claims are without merit. On November 4, 2020, the Company and Yodlee filed separate motions to dismiss all of the claims in the complaint. On February 16, 2021, the district court granted in part and denied in part Yodlee’s motion to dismiss the amended complaint and granted the plaintiffs leave to further amend. The Court reserved ruling on the Company’s motion to dismiss and granted limited jurisdictional discovery to the plaintiffs. On March 15, 2021, Plaintiffs filed a second amended class action complaint re-alleging, among others, the claims the district court had dismissed. The second amended complaint did not allege any claims against the Company or Yodlee that were not previously alleged in first amended complaint. On May 5, 2021, the Company filed a motion to dismiss all claims asserted against it in the second amended complaint, and Yodlee filed a motion to dismiss most claims asserted against it in the second amended complaint. On July 19, 2021, the Court granted in part Yodlee’s motion, resulting in the dismissal of all federal law |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Privately Held Company On January 31, 2023, the Company entered into a convertible promissory note agreement with a customer of the Company's business, a privately held company, whereby the Company was issued a convertible promissory note with a principal amount of $20.0 million and a stated interest rate of 8.0% per annum (the “Convertible Promissory Note”). The Convertible Promissory Note has a maturity date of January 31, 2026 and is convertible into common stock or preferred stock of the privately held company upon qualified financing events or corporate transactions. In connection with the Convertible Promissory Note, the Company concurrently entered into a call option agreement with the privately held company, which provides the Company an option to acquire the privately held company at a predetermined price upon satisfaction of certain financial metrics. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation —The consolidated financial statements include the accounts of Envestnet and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Foreign Currency | Foreign Currency —Accounts for the Envestnet Wealth Solutions segment that are denominated in a non-U.S. currency have been remeasured using the U.S. dollar as the functional currency. Certain accounts within the Envestnet Data & Analytics segment are recorded and measured in foreign currencies. The assets and liabilities for those subsidiaries with a functional currency other than the U.S. dollar are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates. Differences arising from these foreign currency translations are recorded in the consolidated balance sheets as accumulated other comprehensive income (loss) within stockholders' equity. The Company is also subject to gains and losses from foreign currency denominated transactions and the remeasurement of foreign currency denominated balance sheet accounts, both of which are included in other income (expense), net in the consolidated statements of operations. |
Management Estimates | Management Estimates —Management has made certain estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with GAAP. Areas requiring the use of management estimates relate to estimating uncollectible receivables, revenue recognition, valuations and assumptions used for impairment testing of goodwill, intangible and other long-lived assets, right-of-use assets, performance shares issued, contingent consideration, realization of deferred tax assets, uncertain tax positions, sales tax liabilities, operating lease liabilities, fair value of the liability portion of the convertible debt, commitments and contingencies and assumptions used to allocate purchase prices in business combinations. Actual results could differ materially from these estimates under different assumptions or conditions. |
Revenue Recognition | Revenue Recognition The Company accounts for its revenue arrangements in accordance with FASB Topic 606 - Revenue from Contracts with Customers ("ASC 606"). The Company derives revenues from asset-based and subscription-based services and professional services and other sources. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration that we expect to be entitled to in exchange for those services. All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers. Sales and usage-based taxes are excluded from revenues. The majority of the Company's revenues are recognized when services are provided. Asset-Based Recurring Revenues —Asset-based recurring revenues primarily consist of fees for providing customers continuous access to platform services through the Company’s uniquely customized platforms. These platform services include investment manager research, 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 and are made available to customers throughout the contractual term from the date the customized platform is launched. The asset-based fees the Company earns are generally based upon variable percentages of assets managed or administered on our platforms. The fee percentage varies based on the level and type of services the Company provides to its customers, as well as the values of existing customer accounts. The values of the customer accounts are affected by inflows or outflows of customer funds and market fluctuations. The platform services are substantially the same over each quarter and performed in a similar manner over the contract period, and are considered stand-ready promises. The platform services that are delivered to the customer over the quarter are considered distinct, as the customer benefits distinctly from each increment of our services and each quarter is separately identified in the contract, and are considered to be a single performance obligation. The pricing generally resets each quarter and the pricing structure is consistent throughout the term of the contract. The variable fees are generally calculated and billed quarterly in advance based on preceding quarter-end values and the variable amounts earned from the platform services relate specifically to the benefits transferred to the customer during that month or quarter. Accordingly, revenue is allocated to the specific quarter in which services are performed. The asset-based contracts generally contain one performance obligation and revenue is recognized on a ratable basis over the quarter beginning on the date that the platform services are made available to the customer as the customer simultaneously consumes and receives the benefits of the services. All asset-based fees are recognized in the Envestnet Wealth Solutions segment. For certain services provided by third parties, the Company evaluates whether it is the principal (revenues reported on a gross basis) or agent (revenues reported on a net basis). Generally, the Company reports customer fees including charges for third party service providers where the Company has a direct contract with such third party service providers on a gross basis, whereas the amounts billed to its customers are recorded as revenues, and amounts paid to third party service providers are recorded as cost of revenues. The Company is the principal in the transaction because it controls the services before they are transferred to its customers. Control is evidenced by the Company being primarily responsible to its customers and having discretion in establishing pricing. Subscription-Based Recurring Revenues —Subscription-based recurring revenues primarily consist of fees for providing customers continuous access to the Company’s platform for wealth management and financial wellness. The subscription-based fees generally include fixed fees and or usage-based fees. Generally, the subscription services are substantially the same over each quarter and performed in a similar manner over the contract period, and are considered stand-ready promises. Quarterly subscription services are considered distinct as the customer can benefit from each increment of services on its own and each quarter is separately identified in the contract, and services are considered to be a single performance obligation. Certain subscription-based contracts include fixed and variable consideration. The amount of variable consideration that is included in the transaction price may be subject to constraint and included in the subscription-based recurring revenues only to the extent that is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The Company utilizes the expected value method to estimate variable consideration based on available historical, current, and forecasted information. The usage-based pricing generally resets each quarter and the pricing structure is generally consistent throughout the term of the contract. The fixed fees are generally calculated and billed quarterly in advance. The usage-based fees are generally calculated and are billed either monthly or quarterly based on the actual usage and relate specifically to the benefits transferred to the customer during that quarter. Accordingly, revenue is allocated to the specific quarter in which services are performed. Fixed fees are generally recognized on a ratable basis over the quarter beginning when the subscription services are made available to the customer, as the customer simultaneously receives and consumes the benefits of the subscription services. Usage-based revenue is recognized on a monthly basis as the customer receives and consumes the benefit as the Company provides the services. Subscription-based fees are recognized in both the Envestnet Wealth Solutions and Envestnet Data & Analytics segments. Professional Services and Other Revenues —The Company earns professional services fees by providing contractual customized services and platform software development as well as initial implementation fees. Professional services contracts generally have fixed prices, and generally specify the deliverables in the contract. Certain professional services contracts are billed on a time and materials basis and revenue is recognized over time as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time based on the proportion of services performed. Initial implementation fees are fixed and are generally recognized ratably over the contract term. Other revenues primarily include revenue related to the Advisor Summit. Other revenues are recognized when the events are held. Other revenues are not significant. The majority of the Company's professional services and other contracts contain one performance obligation. Professional services and other revenues are recognized in both the Envestnet Wealth Solutions and Envestnet Data & Analytics segments. Arrangements with Multiple Performance Obligations —Certain of the Company’s contracts with customers contain multiple performance obligations, such as platform services performance obligation and professional services performance obligation. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. Standalone selling prices of services are estimated based on observable transactions when these services are sold on a standalone basis or based on expected cost plus margin. Remaining Performance Obligations —Remaining performance obligations represent the transaction price allocated to unsatisfied or partially satisfied performance obligations. The disclosure includes estimates of variable consideration. The Company applies the practical expedients and exemption not to disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less; (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed; and (iii) contracts for which the variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation. Contract Balances —The Company records contract liabilities (deferred revenue) when cash payments are received in advance of its performance. The term between invoicing date and when payment is due is generally not significant. For the majority of its arrangements, the Company requires advance quarterly payments before the services are delivered to the customer. Deferred Revenue —Deferred revenue primarily consists of implementation fees, professional services and subscription fee payments received in advance from customers. Deferred Sales Incentive Compensation —Sales incentive compensation earned by the Company’s sales force is considered an incremental and recoverable cost to acquire a contract with a customer. Sales incentive compensation for initial contracts is deferred and amortized on a straight-line basis over the period of benefit. The Company determined the period of benefit by taking into consideration its customer contracts, life of the technology and other factors. Sales incentive compensation for renewal contracts are deferred and amortized on a straight-line basis over the related contractual renewal period. Deferred sales incentive compensation is included in other non-current assets in the consolidated balance sheets and amortization expense is included in compensation and benefits expenses in the consolidated statements of operations. The Company has applied the practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period would have been one year or less. These costs are included in compensation and benefits expenses in the consolidated statements of operations. Cost of Revenues —Cost of revenues primarily includes expenses related to third party investment management and clearing, custody and brokerage services. Generally, these expenses are calculated based upon a contractual percentage of the market value of assets held in customer accounts measured as of the end of each quarter and are recognized ratably throughout the quarter based on the number of days in the quarter. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts—The Company evaluates the need for an allowance for doubtful accounts for potentially uncollectible fees receivable. In establishing the amount of the allowance, if any, customer-specific information is considered related to delinquent accounts, including historical loss experience and current economic conditions. |
Cash and Cash Equivalents | Cash and Cash Equivalents—The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents. |
Investments | Investments —The Company has investments in private companies for which it has significant influence that are recorded using the equity method of accounting. The Company uses the equity method of accounting because of its less than 50% ownership and lack of control in these companies. These investments are included in other non-current assets on the consolidated balance sheets. The Company records the portion of its earnings or losses in these privately held companies’ net income or loss on a one quarter lag from the actual results of operations as a component of other income (expense), net on the consolidated statements of operations. The Company reviews all investments on a regular basis to evaluate the carrying amount and economic viability. This evaluation process is based on information that the Company requests directly from these investees and includes, but is not limited to, the review of the investee’s cash position, financing needs, earnings/revenue outlook, operational performance, management/ownership changes and competition. As this information is not subject to the same disclosure regulations as U.S. publicly traded companies, the basis for these evaluations is subject to the timing and accuracy of the data received from these investees. |
Property and Equipment | Property and Equipment —Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of furniture and equipment is computed using the straight-line method based on estimated useful lives of the depreciable assets. Leasehold improvements are amortized on a straight-line basis over their estimated economic useful lives or the remaining lease term, whichever is shorter. Improvements are capitalized, while repairs and maintenance costs are charged to operations as incurred. Assets are reviewed for recoverability whenever events or circumstances indicate the carrying value may not be recoverable. There were $5.1 million of impairments of property and equipment for the year ended December 31, 2022. There were immaterial impairments of property and equipment for the years ended December 31, 2021 and 2020. |
Internally Developed Software for Internal Use | Internally Developed Software for Internal Use—Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Maintenance and training costs are expensed as incurred. Internally developed software is amortized on a straight-line basis over its estimated useful life. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets —Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. Goodwill is reviewed for impairment each year using a qualitative or quantitative process that is performed at least annually or whenever events or circumstances indicate a likely reduction in the fair value of a reporting unit below its carrying amount. The Company has concluded that it has two reporting units. The Company performs the annual impairment analysis on October 31 in order to provide management time to complete the analysis prior to year-end. Prior to performing the quantitative evaluation, an assessment of qualitative factors may be performed to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. If it is determined that it is unlikely that the carrying value exceeds the fair value, the Company is not required to complete the quantitative goodwill impairment evaluation. If it is determined that the carrying value may exceed fair value when considering qualitative factors, a quantitative goodwill impairment evaluation is performed. When performing the quantitative evaluation, if the carrying value of the reporting unit exceeds its fair value, an impairment loss equal to the difference will be recorded. No goodwill impairment charges have been recorded for the years ended December 31, 2022, 2021 and 2020. |
Leases | Leases —The Company accounts for its leases in accordance with FASB Topic 842 - Leases (“ASC 842”) and has elected the available package of practical expedients as well as elected to apply the short-term lease exemption to all of its classes of underlying assets. At inception, the Company determines if an arrangement is a lease. Operating leases are included in operating right-of-use ("ROU") assets, current operating lease liabilities and non-current operating lease liabilities in the Company's consolidated balance sheets. Finance leases are included in property and equipment, net in the Company's consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the remaining lease term. The operating lease ROU asset also includes prepaid payments and excludes lease incentives. As none of the Company's leases provide an implicit rate, the Company uses an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient to account for non-lease components as part of the lease component for all asset classes. The majority of the Company's lease agreements are real estate leases. |
Fair Value Measurements | Fair Value Measurements —The Company accounts for its fair value measurements in accordance with FASB Topic 825 - Financial Instruments (“ASC 825”), which provides companies the option to report selected financial assets and liabilities at fair value and also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheets. The Company has not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect of the Company’s choice to use fair value on its earnings. Financial assets and liabilities recorded at fair value in the 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 I: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. Level II: 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 III: 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. |
Income Taxes | Income Taxes —The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to an amount that is more likely than not to be realized. |
Business Combinations | Business Combinations—The Company accounts for business combinations under the acquisition method. The cost of an acquired company is assigned to the tangible and intangible assets acquired and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires management to make estimates and use valuation techniques when market values are not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. Transaction costs associated with business combinations are expensed as incurred. The Company determines the fair value of contingent consideration payable on the acquisition date using a discounted cash flow approach utilizing an appropriate discount rate. Each reporting period thereafter, the Company revalues these obligations and records increases or decreases in their fair value as adjustments to fair market value adjustment to contingent consideration in the Company’s consolidated statements of operations. Changes in the fair value of the contingent consideration payable can result from adjustments to the estimated revenue forecasts included in the contingent consideration calculations. |
Stock-Based Compensation | Stock-Based Compensation —Compensation cost relating to stock-based awards made to employees and directors is recognized in the consolidated financial statements using the Black-Scholes option-pricing model in the case of non-qualified stock option awards, and intrinsic value in the case of restricted stock awards. The Company measures the cost of such awards based on the estimated fair value of the award measured at the grant date and recognizes the expense on a straight-line basis over the requisite service period, which is the vesting period. Determining the fair value of stock options requires the Company to make several estimates, including the volatility of its stock price, the expected life of the option, forfeiture rate, dividend yield and interest rates. The Company estimates the expected life of its options using historical internal forfeiture data. The Company estimates stock-price volatility using historical third-party quotes of Envestnet’s common stock. The Company utilizes a risk-free interest rate, which is based on the yield of U.S. zero coupon securities with a maturity equal to the expected life of the options. The Company has not and does not expect to pay dividends on its common shares. |
Convertible Notes | Convertible Notes —In May 2018, the Company issued $345.0 million of 1.75% Convertible Notes due June 2023. In August 2020, the Company issued $517.5 million of 0.75% Convertible Notes due August 2025. In November 2022, the Company issued $575.0 million of 2.625% Convertible Notes due November 2027. The Company used a portion of the proceeds from the Convertible Notes due 2027 and available cash to repurchase $300.0 million aggregate principal amount of the outstanding Convertible Notes due 2023 and $200.0 million aggregate principal amount of the outstanding Convertible Notes due 2025 in November 2022. Collectively the “Convertible Notes” are accounted for in accordance with FASB Topic 470 - Debt ("ASC 470"). The Company has determined that the embedded conversion options in the Convertible Notes are not required to be separately accounted for as a derivative under GAAP. Upon adoption of ASU 2020-06, the Company accounts for the Convertible Notes as a single liability measured at amortized cost. |
Non-controlling Interest | Non-controlling Interest —In March 2018, the Company initially acquired a 43% fully diluted interest in a private company for cash consideration of $1.3 million. In connection with the acquisition, the Company was granted the ability to appoint two members to the private company's board of directors. The appointment of two board members gives the Company the majority of the board's voting rights. As a result, the Company uses the consolidation method of accounting for this investment. The private company was formed to enable financial advisors to provide insurance and income protection products to their clients. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements —In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity.” This update simplifies the accounting for certain convertible instruments by reducing the number of accounting models available for convertible debt instruments and revises Topic 815-40, which provides guidance on how an entity must determine whether a contract qualifies for a scope exception from derivative accounting. Under the new guidance, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. The convertible debt instruments will be accounted for as a single liability measured at amortized cost. In addition, the new guidance requires the if-converted method to be applied for all convertible instruments. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2021. Early adoption of the standard is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Adoption of the standard requires using either a modified retrospective or a full retrospective approach. The Company adopted this standard as of January 1, 2021 using the modified retrospective approach. Adoption of this standard resulted in a decrease to accumulated deficit of $28.6 million (net of $0.9 million in taxes), a decrease to paid-in capital of $108.5 million (net of $6.7 million in taxes) and an increase to Convertible Notes of $87.5 million. Interest expense recognized in future periods is expected to be reduced as a result of accounting for the convertible debt instrument as a single liability measured at its amortized cost, with an expected decrease of approximately $22.1 million in 2021 as a result of the adoption. In October 2021, the FASB issued ASU 2021-08, “Business Combinations ("ASC 805").” This update amends ASC 805 to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require that an entity (acquirer) recognize and measure contract assets and contract liabilities in accordance with ASC 606. This standard is effective for financial statements issued by public companies for annual and interim periods beginning after December 15, 2022. Early adoption of the standard is permitted. The amendment is to be applied prospectively to business combinations occurring on or after the effective date of the amendment. The Company has early adopted this standard as of January 1, 2022. Adoption of ASU 2021-08 did not have a material impact on the Company's consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table reconciles cash, cash equivalents and restricted cash from the consolidated balance sheets to amounts reported in the consolidated statements of cash flows: December 31, 2022 2021 2020 (in thousands) Cash and cash equivalents $ 162,173 $ 429,279 $ 384,565 Restricted cash included in prepaid expenses and other current assets — 149 — Restricted cash included in other non-current assets — — 149 Total cash, cash equivalents and restricted cash $ 162,173 $ 429,428 $ 384,714 |
Schedule of Restricted Cash and Cash Equivalents | The following table reconciles cash, cash equivalents and restricted cash from the consolidated balance sheets to amounts reported in the consolidated statements of cash flows: December 31, 2022 2021 2020 (in thousands) Cash and cash equivalents $ 162,173 $ 429,279 $ 384,565 Restricted cash included in prepaid expenses and other current assets — 149 — Restricted cash included in other non-current assets — — 149 Total cash, cash equivalents and restricted cash $ 162,173 $ 429,428 $ 384,714 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of the Estimated Fair Values of the Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Tangible assets acquired, net of cash (1) $ 2,032 $ 3,278 $ 5,310 Total liabilities assumed (596) 54 (542) Identifiable intangible assets 9,500 — 9,500 Goodwill 21,858 (3,332) 18,526 Total net assets acquired $ 32,794 $ — $ 32,794 __________________________________________________________ (1) The Company recorded measurement period adjustments of $3.3 million primarily due to the establishment of deferred tax assets during the year ended December 31, 2021. The following table summarizes the estimated fair values of the assets acquired at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Tangible assets acquired, net of acquired cash $ 94 $ 10 $ 104 Identifiable intangible assets 3,000 — 3,000 Goodwill 11,378 18 11,396 Total net assets acquired $ 14,472 $ 28 $ 14,500 The following table summarizes the estimated fair values of the assets acquired at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Tangible net assets acquired, net of acquired cash $ 532 $ (22) $ 510 Identifiable intangible assets 4,000 — 4,000 Goodwill 16,195 22 16,217 Total net assets acquired $ 20,727 $ — $ 20,727 In connection with the Redi2 acquisition, the Company paid estimated consideration as follows: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Cash consideration, net $ 69,406 $ — $ 69,406 Estimated working capital adjustment (1,465) 932 (533) Total $ 67,941 $ 932 $ 68,873 The following table summarizes the estimated fair values of the assets acquired at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Total current assets $ 1,985 $ — $ 1,985 Other non-current assets 3,349 (28) 3,321 Identifiable intangible assets 26,500 — 26,500 Goodwill 44,236 2,231 46,467 Total assets acquired 76,070 2,203 78,273 Accounts payable and accrued expenses (1,157) (1,271) (2,428) Operating lease liabilities (2,201) — (2,201) Deferred revenue (4,771) — (4,771) Total liabilities assumed (8,129) (1,271) (9,400) Total net assets acquired, net of cash received $ 67,941 $ 932 $ 68,873 |
Schedule of Intangible Assets Acquired, Estimated Useful Lives and Amortization Method | A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows: Preliminary Estimate Estimated Useful Life in Years Amortization Method Proprietary technology $ 6,900 6 Straight-line Customer list 2,600 14 Accelerated Total intangible assets acquired $ 9,500 A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows: Preliminary Estimate Estimated Useful Life in Years Amortization Method Proprietary technology $ 3,000 5 Straight-line A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows: Preliminary Estimate Estimated Useful Life in Years Amortization Method Proprietary technology $ 4,000 5 Straight-line A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows: Preliminary Estimate Estimated Useful Life Amortization Method Customer lists $ 14,000 14-16 years Accelerated Proprietary technologies 9,500 6 years Straight-line Trade names 3,000 6-7 years Straight-line Total intangible assets acquired $ 26,500 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: December 31, 2022 2021 (in thousands) Prepaid technology $ 16,649 $ 15,415 Non-income tax receivables 5,488 7,013 Prepaid insurance 2,881 2,234 Income tax prepayments and receivables 2,515 1,310 Escrow for acquisition 545 2,951 Other 13,285 13,783 Total prepaid expenses and other current assets $ 41,363 $ 42,706 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following: December 31, Estimated Useful Life 2022 2021 (in thousands) Cost: Computer equipment and software 3 years $ 66,639 $ 72,289 Leasehold improvements Shorter of the lease term or useful life of the asset 36,158 43,544 Leased data servers 3 years 19,273 590 Office furniture and fixtures 3-7 years 10,796 12,214 Office equipment and other 3-5 years 11,563 7,973 Building and building improvements 7-39 years 2,729 2,729 Land Not applicable 940 940 148,098 140,279 Less: accumulated depreciation and amortization (85,655) (90,064) Total property and equipment, net $ 62,443 $ 50,215 Depreciation and amortization expense was as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Depreciation and amortization expense $ 21,688 $ 20,577 $ 21,432 |
Schedule of Cost Amount and Related Accumulated Depreciation Written Off by Category | The following table presents the cost amounts and related accumulated depreciation written off by category: Year Ended December 31, 2022 Year Ended December 31, 2021 Accumulated Accumulated Cost Depreciation Cost Depreciation (in thousands) Computer equipment and software $ 15,887 $ (14,947) $ 10,936 $ (10,838) Leasehold improvements 2,442 (1,209) 197 (178) Office furniture and fixtures 660 (418) 1,702 (1,646) Office equipment and other 11,467 (8,785) 2,227 (1,915) Total property and equipment retirements $ 30,456 $ (25,359) $ 15,062 $ (14,577) |
Internally Developed Software_2
Internally Developed Software, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Capitalized Computer Software, Net [Abstract] | |
Schedule of Components of Internally Developed Software, Net | Internally developed software, net consisted of the following: December 31, Estimated Useful Life 2022 2021 (in thousands) Internally developed software 5 years $ 313,200 $ 225,380 Less: accumulated amortization (128,642) (91,721) Internally developed software, net $ 184,558 $ 133,659 |
Schedule of Amortization Expense | Amortization expense was as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Amortization expense $ 36,959 $ 28,603 $ 18,670 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill were as follows: Envestnet Envestnet Total (in thousands) Balance at December 31, 2020 $ 603,350 $ 303,423 $ 906,773 Harvest acquisition 18,526 — 18,526 Foreign currency translation — (145) (145) Balance at December 31, 2021 621,876 303,278 925,154 401kplans.com acquisition 11,396 — 11,396 Truelytics acquisition — 16,217 16,217 Redi2 acquisition 46,467 — 46,467 Foreign currency translation — (820) (820) Balance at December 31, 2022 $ 679,739 $ 318,675 $ 998,414 |
Schedule of Components of Intangible Assets, Net | Intangible assets, net consisted of the following: December 31, 2022 December 31, 2021 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount (in thousands) Customer lists $ 604,080 $ (285,288) $ 318,792 $ 590,080 $ (241,189) $ 348,891 Proprietary technologies 113,224 (59,401) 53,823 85,324 (43,004) 42,320 Trade names 15,700 (8,320) 7,380 33,700 (24,515) 9,185 Total intangible assets $ 733,004 $ (353,009) $ 379,995 $ 709,104 $ (308,708) $ 400,396 |
Schedule of Amortization Expense | Amortization expense was as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Amortization expense $ 71,901 $ 68,587 $ 73,559 |
Schedule of Future Amortization Expense of the Intangible Assets | Future amortization expense of the Company's intangible assets as of December 31, 2022, is expected to be as follows: Amortization Expense (in thousands) Years ending December 31: 2023 $ 60,087 2024 53,240 2025 49,900 2026 41,997 2027 33,432 Thereafter 141,339 Total $ 379,995 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Summarized combined financial information for these investments is as follows (amounts represent 100% of investee financial information, except Envestnet ’ s proportional share of losses): December 31, Balance Sheets 2022 2021 (in thousands) Current assets $ 42,059 $ 40,333 Non-current assets 50,703 33,529 Current liabilities 17,647 20,018 Non-current liabilities 9,437 1,583 Year Ended December 31, Statements of Operations 2022 2021 2020 (in thousands) Revenues $ 79,062 $ 65,085 $ 35,603 Loss from operations (8,896) (149) (4,758) Net loss (7,124) (134) (5,062) Envestnet ’s proportional share of gains (losses) (1) 643 (7,093) (5,399) __________________________________________________________ (1) The year ended December 31, 2022 includes a $9.5 million dilution gain on equity method investee share issuance. |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following: December 31, 2022 2021 (in thousands) Accrued investment manager fees $ 93,788 $ 95,858 Accrued compensation and related taxes 77,939 97,523 Accrued professional services 10,762 7,746 Accrued treasury stock purchases 9,289 — Accrued technology 6,393 8,951 Non-income tax payables 2,548 4,907 Other accrued expenses 15,813 10,174 Total accrued expenses and other liabilities $ 216,532 $ 225,159 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt Obligations | The Company’s outstanding debt obligations as of December 31, 2022 and 2021 were as follows: December 31, 2022 2021 (in thousands) Revolving credit facility balance $ — $ — Convertible Notes due 2023 $ 45,000 $ 345,000 Unamortized issuance costs on Convertible Notes due 2023 (114) (2,979) Convertible Notes due 2023 carrying value $ 44,886 $ 342,021 Convertible Notes due 2025 $ 317,500 $ 517,500 Unamortized issuance costs on Convertible Notes due 2025 (4,765) (10,659) Convertible Notes due 2025 carrying value $ 312,735 $ 506,841 Convertible Notes due 2027 $ 575,000 $ — Unamortized issuance costs on Convertible Notes due 2027 (15,966) — Convertible Notes due 2027 carrying value $ 559,034 $ — |
Schedule of Interest Expense | Interest expense was comprised of the following and is included in other income (expense), net in the consolidated statements of operations: Year Ended December 31, 2022 2021 2020 (in thousands) Coupon interest $ 10,897 $ 9,919 $ 7,442 Amortization of issuance costs (1) 4,678 5,745 3,396 Undrawn and other fees 1,268 1,267 796 Accretion of debt discount — — 14,084 Interest on revolving credit facility — — 5,786 Total interest expense $ 16,843 $ 16,931 $ 31,504 __________________________________________________________ (1) For the year ended December 31, 2022, amount includes a net gain on the extinguishment of debt of $1.7 million related to the partial repurchase of Convertible Notes due 2023 and Convertible Notes due 2025. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Companys Leases | The following table illustrates information for the Company's operating leases as of and for the year ended December 31, 2022 and 2021: December 31, 2022 2021 (in thousands) Total operating lease cost $ 15,157 $ 18,600 Short-term lease cost 12,445 4,940 Weighted average remaining lease term (in years) 9.2 9.8 Weighted average discount rate 5.0 % 5.1 % Cash paid for amounts included in the measurement of the operating lease liability 15,748 18,052 |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancellable leases, as of December 31, 2022, were as follows: Operating Leases (in thousands) Years Ending December 31, 2023 $ 16,058 2024 17,925 2025 15,372 2026 15,242 2027 15,370 Thereafter 74,709 Total future minimum lease payments 154,676 Less imputed interest (32,075) Total operating lease liabilities $ 122,601 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Changes in Fair Value of the Company’s Financial Assets and Liabilities Measured at Fair Value | The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets as of December 31, 2022 and December 31, 2021, based on the three-tier fair value hierarchy: December 31, 2022 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 2,628 $ 2,628 $ — $ — Assets to fund deferred compensation liability 10,074 — — 10,074 Total assets $ 12,702 $ 2,628 $ — $ 10,074 Liabilities: Deferred compensation liability $ 8,088 $ 8,088 $ — $ — Total liabilities $ 8,088 $ 8,088 $ — $ — December 31, 2021 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 2,684 $ 2,684 $ — $ — Assets to fund deferred compensation liability 11,140 — — 11,140 Total assets $ 13,824 $ 2,684 $ — $ 11,140 Liabilities: Contingent consideration $ 743 $ — $ — $ 743 Deferred compensation liability 10,418 10,418 — — Total liabilities $ 11,161 $ 10,418 $ — $ 743 |
Schedule of Changes in the Fair Value of the Company's Level 3 Liability | The table below presents a reconciliation of the Company's contingent consideration liabilities, which were measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2021 to December 31, 2022: Fair Value of Contingent Consideration Liabilities (in thousands) Balance at December 31, 2021 $ 743 Payments of contingent consideration liability (743) Balance at December 31, 2022 $ — |
Schedule of Changes in the Fair Value of the Company's Level 3 Assets | The table below presents a reconciliation of assets used to fund deferred compensation liability, which was measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2021 to December 31, 2022: Fair Value of Assets Used to Fund Deferred Compensation Liability (in thousands) Balance at December 31, 2021 $ 11,140 Contributions 649 Fair value adjustments and fees (1,715) Balance at December 31, 2022 $ 10,074 |
Revenues and Cost of Revenues (
Revenues and Cost of Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Major Source | The following table presents the Company’s revenues disaggregated by major source: Year Ended December 31, 2022 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenues: Asset-based $ 738,228 $ — $ 738,228 Subscription-based 294,997 182,847 477,844 Total recurring revenues 1,033,225 182,847 1,216,072 Professional services and other revenues 16,568 7,144 23,712 Total revenues $ 1,049,793 $ 189,991 $ 1,239,784 Year Ended December 31, 2021 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenues: Asset-based $ 709,376 $ — $ 709,376 Subscription-based 267,720 186,269 453,989 Total recurring revenues 977,096 186,269 1,163,365 Professional services and other revenues 14,070 9,082 23,152 Total revenues $ 991,166 $ 195,351 $ 1,186,517 Year Ended December 31, 2020 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenues: Asset-based $ 540,947 $ — $ 540,947 Subscription-based 248,810 177,697 426,507 Total recurring revenues 789,757 177,697 967,454 Professional services and other revenues 16,333 14,443 30,776 Total revenues $ 806,090 $ 192,140 $ 998,230 |
Schedule of Revenues from Major Customers | One customer accounted for more than 10% of the Company’s total revenues, substantially all of which are included within the Envestnet Wealth Solutions segment: Year Ended December 31, 2022 2021 2020 Fidelity 16 % 17 % 15 % |
Schedule of Disaggregation of Revenue by Geography | The following table presents the Company’s revenues disaggregated by geography, based on the billing address of the customer: Year Ended December 31, 2022 2021 2020 (in thousands) United States $ 1,218,254 $ 1,166,251 $ 977,047 International (1) 21,530 20,266 21,183 Total revenues $ 1,239,784 $ 1,186,517 $ 998,230 __________________________________________________________ (1) No foreign country accounted for more than 10% of total revenues. |
Schedule of Costs of Revenues by Revenue Category | The following table summarizes cost of revenues by revenue category: Year Ended December 31, 2022 2021 2020 (in thousands) Asset-based $ 430,345 $ 393,717 $ 278,569 Subscription-based 30,613 29,445 26,934 Professional services and other 7,502 561 426 Total cost of revenues $ 468,460 $ 423,723 $ 305,929 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense under the Company's plans was as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Stock-based compensation expense $ 79,581 $ 67,525 $ 56,292 Tax effect on stock-based compensation expense (20,293) (17,219) (14,354) Net effect on income $ 59,288 $ 50,306 $ 41,938 |
Schedule of Weighted Average Assumptions Used to Value Options Granted | The following weighted average assumptions were used to value options granted during the periods indicated: Year Ended December 31, 2022 2021 2020 Grant date fair value of options $ — $ 31.23 $ — Volatility — % 42.1 % — % Risk-free interest rate — % 0.4 % — % Dividend yield — % — % — % Expected term (in years) 0.0 6.5 0.0 |
Schedule of Option Activity Under the Company's Plans | The following table summarizes option activity under the Company’s plans: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (Years) (in thousands) Outstanding as of December 31, 2019 1,150,586 $ 25.66 3.4 $ 50,590 Exercised (705,333) 18.83 Forfeited (7,213) 48.70 Outstanding as of December 31, 2020 438,040 36.28 4.1 20,156 Granted 4,781 74.83 Exercised (76,303) 27.37 Forfeited (1,277) 49.02 Outstanding as of December 31, 2021 365,241 38.61 3.3 14,878 Exercised (82,802) 31.67 Forfeited (4,904) 72.96 Outstanding as of December 31, 2022 277,535 40.07 2.2 6,005 Options exercisable 277,303 39.69 2.2 6,005 |
Schedule of Other Information | Other information is as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Total intrinsic value of options exercised $ 2,650 $ 3,815 $ 35,687 Cash received from exercises of stock options 2,620 2,090 10,760 |
Schedule of the Activity for Unvested Restricted Stock Units and Awards Granted Under the Company's Plans | The following is a summary of the activity for unvested restricted stock units granted under the Company’s plans: RSUs PSUs Number of Shares Weighted-Average Grant Date Fair Value per Share Number of Shares Weighted-Average Grant Date Fair Value per Share Outstanding as of December 31, 2019 1,318,870 $ 58.88 254,118 $ 67.96 Granted 970,390 74.61 81,689 83.47 Vested (804,982) 57.77 — — Forfeited (138,931) 62.14 (33,010) 64.70 Outstanding as of December 31, 2020 1,345,347 70.56 302,797 72.50 Granted 1,195,313 71.03 129,865 70.92 Vested (828,942) 69.50 (62,524) 61.53 Forfeited (204,294) 70.71 (10,954) 78.97 Outstanding as of December 31, 2021 1,507,424 71.50 359,184 73.64 Granted 1,401,742 73.13 113,269 68.47 Vested (908,362) 71.22 (155,417) 66.22 Forfeited (318,828) 73.16 (57,987) 78.17 Outstanding as of December 31, 2022 1,681,976 72.69 259,049 74.83 |
Benefit Plan (Tables)
Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Voluntary Employer Matching Contributions | The Company made voluntary employer matching contributions as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Voluntary employer matching contributions $ 8,087 $ 6,873 $ 6,247 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Income Tax Benefit | Income (loss) before income tax expense (benefit) was generated in the following jurisdictions: Year Ended December 31, 2022 2021 2020 (in thousands) Domestic $ (89,000) $ 9,730 $ (17,234) Foreign 10,581 10,631 9,189 Total $ (78,419) $ 20,361 $ (8,045) |
Schedule of Components of the Income Tax Expense (Benefit) Charged to Operations | The components of the income tax expense (benefit) charged to operations are summarized as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Current: Federal $ 1,185 $ — $ (1,086) State 6,964 3,488 2,111 Foreign 2,402 4,499 (4,542) 10,551 7,987 (3,517) Deferred: Federal (2,453) 4,021 (2,659) State (1,439) (3,548) 1,158 Foreign 402 (793) (383) (3,490) (320) (1,884) Total $ 7,061 $ 7,667 $ (5,401) |
Schedule of Net Deferred Tax Assets (Liabilities) | Net deferred tax assets (liabilities) consisted of the following: December 31, 2022 2021 (in thousands) Deferred revenue $ 8,945 $ 6,436 Prepaid expenses and accrued expenses 8,847 8,099 Right-of-use assets (20,388) (22,190) Lease liabilities 31,328 28,994 Net operating loss and tax credit carryforwards 64,590 85,698 Property and equipment and intangible assets (94,061) (100,314) Stock-based compensation expense 10,559 9,652 Investment in partnerships 2,836 2,941 Convertible Notes 20,440 — R&D expenditures 43,956 — Withholding taxes (4,841) — Other 196 (173) Total deferred tax assets, net 72,407 19,143 Less: valuation allowance (88,603) (40,164) Net deferred tax liabilities $ (16,196) $ (21,021) |
Schedule of Expected Tax Provision | The expected income tax provision (benefit) calculated at the statutory federal rate differs from the actual provision as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Tax provision (benefit), at U.S. federal statutory tax rate $ (15,515) $ 4,402 $ (1,787) State income tax provision (benefit), net of federal benefit (3,463) 856 (2,461) Effect of stock-based compensation excess tax benefit 717 (364) (9,349) Effect of limitation on executive compensation 2,511 1,678 961 Effect of permanent items 869 661 (703) Effect of India partnerships 1,644 1,422 2,977 Change in valuation allowance 26,974 5,660 16,210 Effect of change in state and foreign income tax rates (254) (1,184) 1,323 Uncertain tax positions (617) 158 (6,093) Research and development credits (10,993) (5,695) (5,939) Change in India indefinite reinvestment assertion 4,372 — — Other 816 73 (540) Income tax provision (benefit) $ 7,061 $ 7,667 $ (5,401) |
Schedule of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefit | A reconciliation of the beginning and ending amount of unrecognized tax benefit follows: Year Ended December 31, 2022 2021 2020 (in thousands) Balance at beginning of year $ 14,517 $ 15,132 $ 18,939 Additions based on tax positions related to the current year 2,522 1,631 1,420 Reductions based on tax positions related to prior years (296) (550) (2,793) Reductions for settlements with taxing authorities related to prior years — (394) (2,434) Reductions for lapses of statute of limitations (3,131) (1,302) — Balance at end of year $ 13,612 $ 14,517 $ 15,132 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Numerators and Denominators Used in Computing Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders | The following table provides the numerators and denominators used in computing basic and diluted net income (loss) per share attributable to Envestnet, Inc.: Year Ended December 31, 2022 2021 2020 (in thousands, except share and per share amounts) Net income (loss) attributable to Envestnet, Inc. ( a ) $ (80,939) $ 13,296 $ (3,110) Interest and gain on settlement of Convertible Notes due 2025, net of interest and tax (9,524) — — Net income (loss) attributable to Envestnet, Inc. - Diluted ( b ) $ (90,463) $ 13,296 $ (3,110) Weighted-average common shares outstanding: Basic ( c ) 55,199,482 54,470,975 53,589,232 Effect of dilutive shares: Options to purchase common stock — 206,022 — Unvested restricted stock units — 633,384 — Convertible Notes 1,642,643 — — Warrants — 73,715 — Diluted ( d ) 56,842,125 55,384,096 53,589,232 Net income (loss) per share attributable to Envestnet, Inc common stock: Basic ( a/c ) $ (1.47) $ 0.24 $ (0.06) Diluted ( b/d ) $ (1.59) $ 0.24 $ (0.06) |
Schedule of Anti-Dilutive Securities Excluded From Computation of Diluted Earnings Per Share | Securities that were anti-dilutive and therefore excluded from the computation of diluted net income (loss) per share were as follows: December 31, 2022 2021 2020 Options to purchase common stock 277,535 — 438,040 Unvested RSU's and PSU's 1,941,025 — 1,648,144 Convertible Notes (1) 11,470,646 9,898,549 9,898,549 Warrants — — 470,000 Total anti-dilutive securities 13,689,206 9,898,549 12,454,733 __________________________________________________________ (1) |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Income (Loss) From Operations by Segment | The following table presents a reconciliation from income (loss) from operations by segment to consolidated net income (loss) attributable to Envestnet, Inc.: Year Ended December 31, 2022 2021 2020 (in thousands) Envestnet Wealth Solutions $ 55,972 $ 124,651 $ 91,501 Envestnet Data & Analytics (20,870) 2,033 (9,943) Nonsegment operating expenses (101,126) (86,143) (62,117) Income (loss) from operations (66,024) 40,541 19,441 Interest expense, net of interest income (12,659) (16,104) (30,392) Other income (expense), net 264 (4,076) 2,906 Consolidated income (loss) before income tax benefit (78,419) 20,361 (8,045) Income tax provision (benefit) 7,061 7,667 (5,401) Consolidated net income (loss) (85,480) 12,694 (2,644) Add: Net (income) loss attributable to non-controlling interest 4,541 602 (466) Consolidated net income (loss) attributable to Envestnet, Inc. $ (80,939) $ 13,296 $ (3,110) |
Schedule of Consolidated Total Assets, Consolidated Depreciation and Amortization and Consolidated Capital Expenditures | A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures by segment follows: December 31, 2022 2021 Segment assets: (in thousands) Envestnet Wealth Solutions $ 1,503,646 $ 1,720,779 Envestnet Data & Analytics 608,519 520,403 Consolidated total assets $ 2,112,165 $ 2,241,182 Year Ended December 31, 2022 2021 2020 Segment depreciation and amortization: (in thousands) Envestnet Wealth Solutions $ 96,658 $ 90,073 $ 80,714 Envestnet Data & Analytics 33,890 27,694 32,947 Consolidated depreciation and amortization $ 130,548 $ 117,767 $ 113,661 Year Ended December 31, 2022 2021 2020 Segment capital expenditures: (in thousands) Envestnet Wealth Solutions $ 79,993 $ 65,264 $ 46,891 Envestnet Data & Analytics 25,332 23,637 20,105 Consolidated capital expenditures $ 105,325 $ 88,901 $ 66,996 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Property, Plant, and Equipment, Net by Geographic Area | The following table sets forth certain long-lived assets including property and equipment, net and internally developed software, net by geographic area: December 31, 2022 2021 (in thousands) United States $ 245,817 $ 180,680 India 1,093 2,923 Other 91 271 Total long-lived assets, net $ 247,001 $ 183,874 |
Organization and Description _2
Organization and Description of Business (Details) managedAccountProduct in Thousands, investmentProduct in Thousands | 12 Months Ended |
Dec. 31, 2022 rIA proprietaryProduct segment managedAccountProduct investmentProduct | |
Number of segments | segment | 2 |
Number of RIAs | rIA | 6 |
Envestnet Enterprise | |
Number of investment products | investmentProduct | 23 |
Envestnet Portfolio Management Consultants (“PMC”) | |
Number of investment products | managedAccountProduct | 5 |
Number of proprietary products | proprietaryProduct | 950 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narratives) (Details) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018 USD ($) boardMember | Dec. 31, 2022 USD ($) performanceObligation reportingUnit | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Nov. 30, 2022 USD ($) | Aug. 31, 2020 USD ($) | May 31, 2018 USD ($) | |
Non-controlling Interest | |||||||
Number of performance obligations | performanceObligation | 1 | ||||||
Allowance for doubtful accounts receivable, current | $ 2,600,000 | $ 3,900,000 | |||||
Impairment of investments | 0 | 0 | $ 0 | ||||
Impairment of property and equipment | $ 5,100,000 | 0 | 0 | ||||
Number of reporting units | reportingUnit | 2 | ||||||
Goodwill impairment charges | $ 0 | 0 | 0 | ||||
Intangible asset impairment charges | 0 | 0 | 0 | ||||
Investment in private companies | 16,351,000 | 25,926,000 | 15,640,000 | ||||
Number of board members | boardMember | 2 | ||||||
Accumulated deficit | (118,927,000) | (37,988,000) | |||||
Income tax provision (benefit) | 7,061,000 | 7,667,000 | (5,401,000) | ||||
Additional paid-in capital | $ (1,135,284,000) | (1,131,628,000) | |||||
Expected decrease in interest expense in 2021 | 22,100,000 | ||||||
Impairment Long Lived Asset Held For Use Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | impairments of property and equipment | ||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Non-controlling Interest | |||||||
Accumulated deficit | 28,600,000 | ||||||
Additional paid-in capital | 108,500,000 | ||||||
Convertible notes payable | 87,500,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | |||||||
Non-controlling Interest | |||||||
Income tax provision (benefit) | 900,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital | |||||||
Non-controlling Interest | |||||||
Income tax provision (benefit) | $ 6,700,000 | ||||||
Private Services Company | |||||||
Non-controlling Interest | |||||||
Ownership interest (as a percent) | 43% | ||||||
Investment in private companies | $ 1,300,000 | ||||||
Convertible Notes due 2023 | |||||||
Non-controlling Interest | |||||||
Face amount | $ 345,000,000 | ||||||
Interest rate (as a percent) | 1.75% | ||||||
Repurchase amount | $ 300,000,000 | ||||||
Convertible Notes due 2023 | Convertible Notes Payable | |||||||
Non-controlling Interest | |||||||
Face amount | $ 45,000,000 | 345,000,000 | $ 345,000,000 | ||||
Interest rate (as a percent) | 1.75% | ||||||
Repurchase amount | 300,000,000 | ||||||
Convertible Notes due 2025 | |||||||
Non-controlling Interest | |||||||
Repurchase amount | 200,000,000 | ||||||
Convertible Notes due 2025 | Convertible Notes Payable | |||||||
Non-controlling Interest | |||||||
Face amount | 317,500,000 | 517,500,000 | $ 517,500,000 | ||||
Interest rate (as a percent) | 0.75% | ||||||
Repurchase amount | 200,000,000 | ||||||
Convertible Notes due 2027 | Convertible Notes Payable | |||||||
Non-controlling Interest | |||||||
Face amount | $ 575,000,000 | $ 0 | $ 575,000,000 | ||||
Interest rate (as a percent) | 2.625% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 162,173 | $ 429,279 | $ 384,565 | |
Total cash, cash equivalents and restricted cash | 162,173 | 429,428 | 384,714 | $ 82,755 |
Prepaid expense and other current assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 0 | 149 | 0 | |
Other non-current assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | $ 0 | $ 0 | $ 149 |
Acquisitions (Acquisition of Pr
Acquisitions (Acquisition of Private Technology Company, Narrative) (Details) - USD ($) | 12 Months Ended | |||
Feb. 18, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Fair market value adjustment to contingent consideration liability | $ 0 | $ 1,067,000 | $ 3,105,000 | |
Goodwill | $ 998,414,000 | 925,154,000 | 906,773,000 | |
Private Technology Company | ||||
Business Acquisition [Line Items] | ||||
Payment to acquire business | $ 2,300,000 | |||
Additional contingent consideration | 6,800,000 | |||
Contingent consideration | 5,200,000 | |||
Fair market value adjustment to contingent consideration liability | 700,000 | $ 3,100,000 | ||
Payment of contingent consideration liability | $ 1,100,000 | |||
Goodwill | 7,000,000 | |||
Goodwill deductible for tax purposes | 0 | |||
Acquired intangible assets | $ 1,000,000 |
Acquisitions (Acquisition f Pri
Acquisitions (Acquisition f Private Cloud Technology Company, Narrative) (Details) - USD ($) $ in Thousands | Mar. 02, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 998,414 | $ 925,154 | $ 906,773 | |
Private Cloud Technology Company | ||||
Business Acquisition [Line Items] | ||||
Payment to acquire business | $ 12,000 | |||
Goodwill | 10,900 | |||
Goodwill deductible for tax purposes | $ 10,900 |
Acquisitions (Acquisition of _2
Acquisitions (Acquisition of Private Financial Technology Design Company, Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 03, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 998,414 | $ 925,154 | $ 906,773 | ||
Private Financial Technology Design Company | |||||
Business Acquisition [Line Items] | |||||
Estimated value of acquiree | $ 11,000 | ||||
Payment to acquire business | 5,900 | ||||
Remeasurement gain | $ 4,200 | ||||
Goodwill | 9,200 | ||||
Goodwill deductible for tax purposes | 6,200 | ||||
Acquired intangible assets | $ 2,000 | ||||
Private Financial Technology Design Company | |||||
Business Acquisition [Line Items] | |||||
Ownership interest (as a percent) | 45% |
Acquisitions (Acquisition of _3
Acquisitions (Acquisition of Proprietary Technology, Narrative) (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Jun. 21, 2021 | Mar. 11, 2021 |
Business Acquisition [Line Items] | |||
Estimated useful life (in years) | 5 years | ||
Proprietary technology | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 9 | $ 18 | |
Estimated useful life (in years) | 5 years | ||
Proprietary Technology | |||
Business Acquisition [Line Items] | |||
Ownership interest (as a percent) | 29% | ||
Consideration transferred | $ 35.5 | ||
Redemption consideration | 10 | ||
Proprietary Technology | Proprietary technology | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 24.5 |
Acquisitions (Acquisition of Ha
Acquisitions (Acquisition of Harvest, Narrative) (Details) - Harvest acquisition | Apr. 07, 2021 USD ($) |
Business Acquisition [Line Items] | |
Payment to acquire business | $ 32,800,000 |
Escrow deposit | $ 3,000,000 |
Escrow holding period | 18 months |
Goodwill deductible for tax purposes | $ 0 |
Acquisitions (Schedule of Asset
Acquisitions (Schedule of Assets Acquired and Liabilities Assumed, Harvest) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Apr. 07, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 998,414 | $ 925,154 | $ 906,773 | |
Deferred tax assets acquired, measurement period adjustments | $ 3,300 | |||
Harvest acquisition | ||||
Business Acquisition [Line Items] | ||||
Tangible net assets acquired, net of acquired cash | 5,310 | $ 2,032 | ||
Tangible assets acquired, net of cash, Measurement Period Adjustments | 3,278 | |||
Total liabilities assumed | (542) | (596) | ||
Total liabilities assumed, Measurement Period Adjustments | 54 | |||
Identifiable intangible assets | 9,500 | 9,500 | ||
Goodwill | 18,526 | 21,858 | ||
Goodwill, Measurement Period Adjustments | (3,332) | |||
Total net assets acquired, net of cash received | 32,794 | $ 32,794 | ||
Total net assets acquired, measurement period adjustments | $ 0 |
Acquisitions (Schedule of Intan
Acquisitions (Schedule of Intangible Assets Acquired, Harvest) (Details) - USD ($) $ in Thousands | Jun. 21, 2021 | Apr. 07, 2021 | Mar. 11, 2021 |
Business Acquisition [Line Items] | |||
Estimated Useful Life | 5 years | ||
Proprietary technology | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life | 5 years | ||
Harvest acquisition | |||
Business Acquisition [Line Items] | |||
Preliminary Estimate | $ 9,500 | ||
Harvest acquisition | Proprietary technology | |||
Business Acquisition [Line Items] | |||
Preliminary Estimate | $ 6,900 | ||
Estimated Useful Life | 6 years | ||
Harvest acquisition | Customer list | |||
Business Acquisition [Line Items] | |||
Preliminary Estimate | $ 2,600 | ||
Estimated Useful Life | 14 years |
Acquisitions (Acquisition of 40
Acquisitions (Acquisition of 401kplans.com, Narrative) (Details) $ in Millions | May 31, 2022 USD ($) |
401kplans.com acquisition | |
Business Acquisition [Line Items] | |
Payment to acquire business | $ 14.5 |
Acquisitions (Schedule of Ass_2
Acquisitions (Schedule of Assets Acquired And Liabilities Assumed, 401kplans.com) (Details) - USD ($) $ in Thousands | 7 Months Ended | |||
Dec. 31, 2022 | May 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 998,414 | $ 925,154 | $ 906,773 | |
401kplans.com acquisition | ||||
Business Acquisition [Line Items] | ||||
Tangible net assets acquired, net of acquired cash | 104 | $ 94 | ||
Tangible assets acquired, net of cash, Measurement Period Adjustments | 10 | |||
Identifiable intangible assets | 3,000 | 3,000 | ||
Goodwill | 11,396 | 11,378 | ||
Goodwill, Measurement Period Adjustments | 18 | |||
Total net assets acquired, net of cash received | 14,500 | $ 14,472 | ||
Total net assets acquired, Measurement Period Adjustments | $ 28 |
Acquisitions (Schedule of Int_2
Acquisitions (Schedule of Intangible Assets Acquired, 401kplans.com) (Details) - USD ($) $ in Thousands | May 31, 2022 | Jun. 21, 2021 | Mar. 11, 2021 |
Business Acquisition [Line Items] | |||
Estimated Useful Life | 5 years | ||
Proprietary technology | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life | 5 years | ||
401kplans.com acquisition | Proprietary technology | |||
Business Acquisition [Line Items] | |||
Preliminary Estimate | $ 3,000 | ||
Estimated Useful Life | 5 years |
Acquisitions (Acquisition of Tr
Acquisitions (Acquisition of Truelytics, Narrative) (Details) $ in Millions | Jul. 01, 2022 USD ($) |
Truelytics acquisition | |
Business Acquisition [Line Items] | |
Payment to acquire business | $ 20.7 |
Acquisitions (Schedule of Ass_3
Acquisitions (Schedule of Assets Acquired And Liabilities Assumed, Truelytics) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 31, 2022 | Jul. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 998,414 | $ 925,154 | $ 906,773 | |
Truelytics acquisition | ||||
Business Acquisition [Line Items] | ||||
Tangible net assets acquired, net of acquired cash | 510 | $ 532 | ||
Identifiable intangible assets | 4,000 | 4,000 | ||
Goodwill | 16,217 | 16,195 | ||
Total net assets acquired, net of cash received | 20,727 | $ 20,727 | ||
Deferred tax assets acquired, Measurement Period Adjustments | (22) | |||
Goodwill, Measurement Period Adjustments | 22 | |||
Total net assets acquired, measurement period adjustments | $ 0 |
Acquisitions (Schedule of Int_3
Acquisitions (Schedule of Intangible Assets Acquired, Truelytics) (Details) - USD ($) $ in Thousands | Jul. 01, 2022 | Jun. 21, 2021 | Mar. 11, 2021 |
Business Acquisition [Line Items] | |||
Estimated Useful Life | 5 years | ||
Proprietary technology | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life | 5 years | ||
Truelytics acquisition | Proprietary technology | |||
Business Acquisition [Line Items] | |||
Preliminary Estimate | $ 4,000 | ||
Estimated Useful Life | 5 years |
Acquisitions (Schedule of Consi
Acquisitions (Schedule of Consideration Transferred, Redi2 Technologies) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jul. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Cash consideration, net | $ 104,100 | $ 32,794 | $ 20,257 | ||
Redi2 acquisition | |||||
Business Acquisition [Line Items] | |||||
Cash consideration, net | $ 69,406 | 69,406 | |||
Cash consideration, net, Measurement Period Adjustments | $ 0 | ||||
Estimated working capital adjustment | (1,465) | (533) | |||
Estimated working capital adjustment, Measurement Period Adjustments | 932 | ||||
Total | $ 67,941 | $ 68,873 | |||
Total net assets acquired, measurement period adjustments | $ 932 |
Acquisitions (Acquisition of Re
Acquisitions (Acquisition of Redi2 Technologies, Narrative) (Details) - Redi2 acquisition - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jul. 01, 2022 | |
Business Acquisition [Line Items] | ||
Contingent consideration | $ 20 | |
Goodwill deductible for tax purposes | $ 40.7 | |
General and Administrative Expense | ||
Business Acquisition [Line Items] | ||
Acquisition related costs | $ 1.5 | |
Executive Officer | ||
Business Acquisition [Line Items] | ||
Contingent consideration | $ 20 |
Acquisitions (Schedule of Ass_4
Acquisitions (Schedule of Assets Acquired And Liabilities Assumed, Redi2 Technologies) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 31, 2022 | Jul. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 998,414 | $ 925,154 | $ 906,773 | |
Redi2 acquisition | ||||
Business Acquisition [Line Items] | ||||
Total current assets | 1,985 | $ 1,985 | ||
Total current assets, Measurement Period Adjustments | 0 | |||
Other non-current assets | 3,321 | 3,349 | ||
Estimated working capital adjustment, Measurement Period Adjustments | (28) | |||
Identifiable intangible assets | 26,500 | 26,500 | ||
Identifiable intangible assets, Measurement Period Adjustments | 0 | |||
Goodwill | 46,467 | 44,236 | ||
Goodwill, Measurement Period Adjustments | 2,231 | |||
Total assets acquired | 78,273 | 76,070 | ||
Total assets acquired, Measurement Period Adjustments | 2,203 | |||
Accounts payable and accrued expenses | (2,428) | (1,157) | ||
Accounts payable and accrued expenses, Measurement Period Adjustments | (1,271) | |||
Operating lease liabilities | (2,201) | (2,201) | ||
Operating lease liabilities, Measurement Period Adjustments | 0 | |||
Deferred revenue | (4,771) | (4,771) | ||
Deferred revenue, Measurement Period Adjustments | 0 | |||
Total liabilities assumed | (9,400) | (8,129) | ||
Total liabilities assumed, Measurement Period Adjustments | (1,271) | |||
Total net assets acquired, net of cash received | 68,873 | $ 67,941 | ||
Total net assets acquired, measurement period adjustments | $ 932 |
Acquisitions (Schedule of Int_4
Acquisitions (Schedule of Intangible Assets Acquired, Redi2 Technologies) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jul. 01, 2022 | Jun. 21, 2021 | Mar. 11, 2021 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Estimated Useful Life | 5 years | |||
Proprietary technology | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Life | 5 years | |||
Redi2 acquisition | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets acquired | $ 26,500 | |||
Redi2 acquisition | Customer list | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets acquired | 14,000 | |||
Redi2 acquisition | Customer list | Minimum | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Life | 14 years | |||
Redi2 acquisition | Customer list | Maximum | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Life | 16 years | |||
Redi2 acquisition | Proprietary technology | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets acquired | $ 9,500 | |||
Estimated Useful Life | 6 years | |||
Redi2 acquisition | Trade names | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets acquired | $ 3,000 | |||
Redi2 acquisition | Trade names | Minimum | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Life | 6 years | |||
Redi2 acquisition | Trade names | Maximum | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Life | 7 years |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid technology | $ 16,649 | $ 15,415 |
Non-income tax receivables | 5,488 | 7,013 |
Prepaid insurance | 2,881 | 2,234 |
Income tax prepayments and receivables | 2,515 | 1,310 |
Escrow for acquisition | 545 | 2,951 |
Other | 13,285 | 13,783 |
Total prepaid expenses and other current assets | $ 41,363 | $ 42,706 |
Property and Equipment, Net (Pr
Property and Equipment, Net (Property and Equipment, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property and equipment, cost: | |||
Property and equipment, gross | $ 148,098 | $ 140,279 | |
Less: accumulated depreciation and amortization | (85,655) | (90,064) | |
Total property and equipment, net | 62,443 | 50,215 | |
Depreciation and amortization expense | $ 21,688 | 20,577 | $ 21,432 |
Computer equipment and software | |||
Property and equipment | |||
Estimated Useful Life | 3 years | ||
Property and equipment, cost: | |||
Property and equipment, gross | $ 66,639 | 72,289 | |
Leasehold improvements | |||
Property and equipment, cost: | |||
Property and equipment, gross | $ 36,158 | 43,544 | |
Leased data servers | |||
Property and equipment | |||
Estimated Useful Life | 3 years | ||
Property and equipment, cost: | |||
Property and equipment, gross | $ 19,273 | 590 | |
Office furniture and fixtures | |||
Property and equipment, cost: | |||
Property and equipment, gross | $ 10,796 | 12,214 | |
Office furniture and fixtures | Minimum | |||
Property and equipment | |||
Estimated Useful Life | 3 years | ||
Office furniture and fixtures | Maximum | |||
Property and equipment | |||
Estimated Useful Life | 7 years | ||
Office equipment and other | |||
Property and equipment, cost: | |||
Property and equipment, gross | $ 11,563 | 7,973 | |
Office equipment and other | Minimum | |||
Property and equipment | |||
Estimated Useful Life | 3 years | ||
Office equipment and other | Maximum | |||
Property and equipment | |||
Estimated Useful Life | 5 years | ||
Building and building improvements | |||
Property and equipment, cost: | |||
Property and equipment, gross | $ 2,729 | 2,729 | |
Building and building improvements | Minimum | |||
Property and equipment | |||
Estimated Useful Life | 7 years | ||
Building and building improvements | Maximum | |||
Property and equipment | |||
Estimated Useful Life | 39 years | ||
Land | |||
Property and equipment, cost: | |||
Property and equipment, gross | $ 940 | $ 940 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment | ||
Property and equipment retired | $ 30,456 | $ 15,062 |
Leased data servers | ||
Property and equipment | ||
Right of use assets amortization expense | 4,900 | |
Envestnet Wealth Solutions | ||
Property and equipment | ||
Property and equipment retired | 20,000 | 12,700 |
Envestnet Data & Analytics | ||
Property and equipment | ||
Property and equipment retired | $ 10,400 | $ 2,400 |
Property and Equipment, Net (Ac
Property and Equipment, Net (Accumulated Depreciation Written Off by Category) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment | ||
Cost | $ 30,456 | $ 15,062 |
Accumulated Depreciation | (25,359) | (14,577) |
Computer equipment and software | ||
Property and equipment | ||
Cost | 15,887 | 10,936 |
Accumulated Depreciation | (14,947) | (10,838) |
Leasehold improvements | ||
Property and equipment | ||
Cost | 2,442 | 197 |
Accumulated Depreciation | (1,209) | (178) |
Office furniture and fixtures | ||
Property and equipment | ||
Cost | 660 | 1,702 |
Accumulated Depreciation | (418) | (1,646) |
Office equipment and other | ||
Property and equipment | ||
Cost | 11,467 | 2,227 |
Accumulated Depreciation | $ (8,785) | $ (1,915) |
Internally Developed Software_3
Internally Developed Software, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of intangible assets | |||
Less: accumulated amortization | $ (128,642) | $ (91,721) | |
Internally developed software, net | 184,558 | 133,659 | |
Amortization expense | $ 36,959 | 28,603 | $ 18,670 |
Internally developed software | |||
Components of intangible assets | |||
Estimated Useful Life | 5 years | ||
Internally developed software | $ 313,200 | $ 225,380 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in the carrying amount of the Company's goodwill | ||
Balance at period start | $ 925,154 | $ 906,773 |
Foreign currency translation | (820) | (145) |
Balance at period end | 998,414 | 925,154 |
Harvest acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | 18,526 | |
Balance at period end | 18,526 | |
401kplans.com acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | 11,396 | |
Balance at period end | 11,396 | |
Truelytics acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | 16,217 | |
Balance at period end | 16,217 | |
Redi2 acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | 46,467 | |
Balance at period end | 46,467 | |
Envestnet Wealth Solutions | ||
Changes in the carrying amount of the Company's goodwill | ||
Balance at period start | 621,876 | 603,350 |
Foreign currency translation | 0 | 0 |
Balance at period end | 679,739 | 621,876 |
Envestnet Wealth Solutions | Harvest acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | 18,526 | |
Envestnet Wealth Solutions | 401kplans.com acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | 11,396 | |
Envestnet Wealth Solutions | Truelytics acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | 0 | |
Envestnet Wealth Solutions | Redi2 acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | 46,467 | |
Envestnet Data & Analytics | ||
Changes in the carrying amount of the Company's goodwill | ||
Balance at period start | 303,278 | 303,423 |
Foreign currency translation | (820) | (145) |
Balance at period end | 318,675 | 303,278 |
Envestnet Data & Analytics | Harvest acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | $ 0 | |
Envestnet Data & Analytics | 401kplans.com acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | 0 | |
Envestnet Data & Analytics | Truelytics acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | 16,217 | |
Envestnet Data & Analytics | Redi2 acquisition | ||
Changes in the carrying amount of the Company's goodwill | ||
Acquisition | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Apr. 01, 2022 | Jun. 21, 2021 | Mar. 11, 2021 | Feb. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Acquisition [Line Items] | |||||||
Payments to acquire intangible assets | $ 15,000 | $ 25,517 | $ 0 | ||||
Estimated useful life (in years) | 5 years | ||||||
Payment to acquire assets | 105,325 | 88,901 | 66,996 | ||||
Envestnet Wealth Solutions | |||||||
Asset Acquisition [Line Items] | |||||||
Cost of fully amortized and retired assets | 0 | 5,000 | |||||
Envestnet Data & Analytics | |||||||
Asset Acquisition [Line Items] | |||||||
Cost of fully amortized and retired assets | 27,600 | 0 | |||||
Payment to acquire assets | 25,332 | $ 23,637 | $ 20,105 | ||||
Proprietary technology | |||||||
Asset Acquisition [Line Items] | |||||||
Consideration transferred | $ 9,000 | $ 18,000 | |||||
Payments to acquire intangible assets | $ 3,000 | $ 4,000 | |||||
Estimated useful life (in years) | 5 years | ||||||
Earn-out payment | $ 10,000 | ||||||
Target metrics term | 5 years | ||||||
Payment to acquire assets | $ 15,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net (Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Components of intangible assets | ||
Gross Carrying Amount | $ 733,004 | $ 709,104 |
Accumulated Amortization | (353,009) | (308,708) |
Net Carrying Amount | 379,995 | 400,396 |
Customer lists | ||
Components of intangible assets | ||
Gross Carrying Amount | 604,080 | 590,080 |
Accumulated Amortization | (285,288) | (241,189) |
Net Carrying Amount | 318,792 | 348,891 |
Proprietary technologies | ||
Components of intangible assets | ||
Gross Carrying Amount | 113,224 | 85,324 |
Accumulated Amortization | (59,401) | (43,004) |
Net Carrying Amount | 53,823 | 42,320 |
Trade names | ||
Components of intangible assets | ||
Gross Carrying Amount | 15,700 | 33,700 |
Accumulated Amortization | (8,320) | (24,515) |
Net Carrying Amount | $ 7,380 | $ 9,185 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net (Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 71,901 | $ 68,587 | $ 73,559 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Future amortization expense of the intangible assets | ||
2023 | $ 60,087 | |
2024 | 53,240 | |
2025 | 49,900 | |
2026 | 41,997 | |
2027 | 33,432 | |
Thereafter | 141,339 | |
Net Carrying Amount | $ 379,995 | $ 400,396 |
Investments (Narratives) (Detai
Investments (Narratives) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) qtr | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) qtr | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) qtr | Dec. 31, 2022 USD ($) qtr | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity method investments | $ 37,400,000 | $ 37,400,000 | $ 37,400,000 | $ 18,600,000 | ||||
Future funding commitment | 12,500,000 | 12,500,000 | 12,500,000 | |||||
Issuance of notes receivable to equity method investees | 6,350,000 | 0 | $ 0 | |||||
Investment in private companies | 16,351,000 | 25,926,000 | 15,640,000 | |||||
Intangible assets, net | 379,995,000 | 379,995,000 | 379,995,000 | 400,396,000 | ||||
Historical purchase price | $ 22,100,000 | $ 22,100,000 | $ 22,100,000 | 18,700,000 | ||||
Private Services Company | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership interest (as a percent) | 3.51% | 3.51% | 3.51% | |||||
Revenue from related parties | $ 16,000,000 | 16,400,000 | $ 11,500,000 | |||||
Due from related parties | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | 3,000,000 | ||||
Dilution gain on equity method investee share issuance | $ 2,600,000 | |||||||
Privately Held Company | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership interest (as a percent) | 48% | 41% | ||||||
Dilution gain on equity method investee share issuance | $ 6,900,000 | |||||||
Issuance of notes receivable to equity method investees | $ 2,500,000 | |||||||
Investment in private companies | $ 8,400,000 | |||||||
Number of quarter lag from actual result | qtr | 1 | 1 | 1 | |||||
Intangible assets, net | $ 7,800,000 | $ 7,800,000 | $ 7,800,000 | |||||
Privately Held Company Two | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership interest (as a percent) | 25% | |||||||
Investment in private companies | $ 5,000,000 | 10,000,000 | ||||||
Number of quarter lag from actual result | qtr | 1 | |||||||
Other Equity Investments | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Historical purchase price | 0 | 0 | 0 | |||||
Other Equity Investments | Level II | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Historical purchase price | $ 400,000 | $ 400,000 | $ 400,000 | $ 800,000 | ||||
Minimum | Private Services Company | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership interest (as a percent) | 3% | 3% | 3% | 4% | ||||
Maximum | Private Services Company | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership interest (as a percent) | 48% | 48% | 48% | 47% |
Investments (Schedule of Equity
Investments (Schedule of Equity Method Investment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance Sheets | |||
Current assets | $ 305,232 | $ 567,276 | |
Current liabilities | 327,064 | 288,723 | |
Statements of Operations | |||
Loss from operations | (66,024) | 40,541 | $ 19,441 |
Net loss | (85,480) | 12,694 | (2,644) |
Envestnet’s proportional share of gains (losses) | (80,939) | 13,296 | (3,110) |
Equity Method Investments, Total | |||
Balance Sheets | |||
Current assets | 42,059 | 40,333 | |
Non-current assets | 50,703 | 33,529 | |
Current liabilities | 17,647 | 20,018 | |
Non-current liabilities | 9,437 | 1,583 | |
Statements of Operations | |||
Revenues | 79,062 | 65,085 | 35,603 |
Loss from operations | (8,896) | (149) | (4,758) |
Net loss | (7,124) | (134) | (5,062) |
Envestnet’s proportional share of gains (losses) | 643 | $ (7,093) | $ (5,399) |
Dilution gain on equity method investee share issuance | $ 9,500 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Schedule of Accrued Expenses and Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Components of accrued expenses | ||
Accrued investment manager fees | $ 93,788 | $ 95,858 |
Accrued compensation and related taxes | 77,939 | 97,523 |
Accrued professional services | 10,762 | 7,746 |
Accrued treasury stock purchases | 9,289 | 0 |
Accrued technology | 6,393 | 8,951 |
Non-income tax payables | 2,548 | 4,907 |
Other accrued expenses | 15,813 | 10,174 |
Total accrued expenses and other liabilities | $ 216,532 | $ 225,159 |
Accrued Expenses and Other Li_4
Accrued Expenses and Other Liabilities (Narratives) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | |
Facility Closing | |||
Accrued Liabilities [Line Items] | |||
Restructuring expense | $ 0.9 | ||
Organizational Realignment | |||
Accrued Liabilities [Line Items] | |||
Restructuring activity term | 10 years | ||
Organizational Realignment | Employee Severance | |||
Accrued Liabilities [Line Items] | |||
Restructuring expense | $ 18.7 | ||
Accrued expense | $ 9 | $ 9 |
Debt (Schedule of Debt Obligati
Debt (Schedule of Debt Obligation) (Details) - USD ($) | Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2021 | Aug. 31, 2020 | May 31, 2018 |
Revolving Credit Facility | Line of Credit | |||||
Outstanding debt obligations | |||||
Revolving credit facility | $ 0 | $ 0 | |||
Convertible Notes due 2023 | |||||
Outstanding debt obligations | |||||
Face amount | $ 345,000,000 | ||||
Convertible Notes due 2023 | Convertible Notes Payable | |||||
Outstanding debt obligations | |||||
Face amount | 45,000,000 | 345,000,000 | $ 345,000,000 | ||
Unamortized issuance costs on convertible notes | (114,000) | (2,979,000) | |||
Convertible Notes | 44,886,000 | 342,021,000 | |||
Convertible Notes due 2025 | Convertible Notes Payable | |||||
Outstanding debt obligations | |||||
Face amount | 317,500,000 | 517,500,000 | $ 517,500,000 | ||
Unamortized issuance costs on convertible notes | (4,765,000) | (10,659,000) | |||
Convertible Notes | 312,735,000 | 506,841,000 | |||
Convertible Notes due 2027 | Convertible Notes Payable | |||||
Outstanding debt obligations | |||||
Face amount | 575,000,000 | $ 575,000,000 | 0 | ||
Unamortized issuance costs on convertible notes | (15,966,000) | 0 | |||
Convertible Notes | $ 559,034,000 | $ 0 |
Debt (Credit Agreement) (Detail
Debt (Credit Agreement) (Details) - USD ($) | 12 Months Ended | ||
Feb. 04, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revolving Credit Facility | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Debt issuance costs, gross | $ 1,900,000 | ||
Write off of debt issuance cost | $ 600,000 | ||
Revolving credit facility | $ 0 | $ 0 | |
Third Credit Agreement | Line of Credit | Prepaid Expenses | |||
Line of Credit Facility [Line Items] | |||
Debt Issuance Costs, Net | 700,000 | ||
Third Credit Agreement | Line of Credit | Other non-current assets | |||
Line of Credit Facility [Line Items] | |||
Debt Issuance Costs, Net | 2,200,000 | ||
Third Credit Agreement | Line of Credit | Base Rate | Minimum | |||
Line of Credit Facility [Line Items] | |||
Spread on variable rate basis (as a percent) | 0.25% | ||
Third Credit Agreement | Line of Credit | Base Rate | Maximum | |||
Line of Credit Facility [Line Items] | |||
Spread on variable rate basis (as a percent) | 1.75% | ||
Third Credit Agreement | Line of Credit | SOFR | Minimum | |||
Line of Credit Facility [Line Items] | |||
Spread on variable rate basis (as a percent) | 1.25% | ||
Third Credit Agreement | Line of Credit | SOFR | Maximum | |||
Line of Credit Facility [Line Items] | |||
Spread on variable rate basis (as a percent) | 2.75% | ||
Third Credit Agreement | Revolving Credit Facility | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Credit facility amount | $ 500,000,000 | ||
Revolving credit facility | 0 | 0 | |
Borrowing under revolving credit facility | 500,000,000 | ||
Third Credit Agreement | Letters of credit | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Credit facility amount | $ 20,000,000 | ||
Amended Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility | $ 0 | $ 0 | |
Amended Credit Agreement | Revolving Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Commitment fee (as a percent) | 0.25% | ||
Amended Credit Agreement | Revolving Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Commitment fee (as a percent) | 0.30% |
Debt (Convertible Notes) (Detai
Debt (Convertible Notes) (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2022 USD ($) segment $ / shares shares | Aug. 31, 2020 USD ($) day $ / shares | May 31, 2018 USD ($) day $ / shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2018 USD ($) | |
Debt Instrument [Line Items] | |||||||
Accretion of debt discount | $ 0 | $ 0 | $ 14,084,000 | ||||
Convertible Notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 345,000,000 | ||||||
Interest rate (as a percent) | 1.75% | ||||||
Conversion rate (in shares) | 0.0146381 | ||||||
Conversion price (in dollars per share) | $ / shares | $ 68.31 | ||||||
Repurchase amount | $ 300,000,000 | ||||||
Repurchase of convertible debt | $ 312,422,000 | 0 | 0 | ||||
Gain (loss) on extinguishment of debt | (13,421,000) | 0 | 0 | ||||
Convertible Notes due 2023 | Carrying Value | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 44,900,000 | 342,000,000 | |||||
Convertible Notes due 2023 | Convertible Notes Payable | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 345,000,000 | 45,000,000 | 345,000,000 | ||||
Net proceeds from offering | $ 335,000,000 | ||||||
Interest rate (as a percent) | 1.75% | ||||||
Repurchase percentage of principal (as a percent) | 100% | ||||||
Threshold percentage of stock price trigger (as a percent) | 130% | ||||||
Threshold trading days | day | 20 | ||||||
Consecutive trading days | day | 30 | ||||||
Threshold consecutive trading-day period | 5 days | ||||||
Conversion price (in dollars per share) | $ / shares | $ 68.31 | ||||||
Allocated to equity components | $ 46,600,000 | ||||||
Offering costs | 1,400,000 | ||||||
Discount | 48,000,000 | ||||||
Accretion of debt discount | 0 | 0 | 9,400,000 | ||||
Debt issuance costs, gross | $ 10,000,000 | ||||||
Debt issuance costs | $ 8,600,000 | ||||||
Repurchase amount | 300,000,000 | ||||||
Repurchase of convertible debt | 312,400,000 | ||||||
Gain (loss) on extinguishment of debt | (13,400,000) | ||||||
Unamortized debt issuance expense | $ 114,000 | 2,979,000 | |||||
Shares Issuable(in shares) | shares | 0.7 | ||||||
Convertible Notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Conversion rate (in shares) | 0.0093682 | ||||||
Conversion price (in dollars per share) | $ / shares | $ 106.74 | ||||||
Repurchase amount | 200,000,000 | ||||||
Repurchase of convertible debt | $ 181,772,000 | 0 | 0 | ||||
Gain (loss) on extinguishment of debt | 15,089,000 | 0 | 0 | ||||
Convertible Notes due 2025 | Carrying Value | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 312,700,000 | 506,800,000 | |||||
Convertible Notes due 2025 | Convertible Notes Payable | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 517,500,000 | 317,500,000 | 517,500,000 | ||||
Net proceeds from offering | $ 503,000,000 | ||||||
Interest rate (as a percent) | 0.75% | ||||||
Repurchase percentage of principal (as a percent) | 100% | ||||||
Threshold percentage of stock price trigger (as a percent) | 130% | ||||||
Threshold trading days | day | 20 | ||||||
Consecutive trading days | day | 30 | ||||||
Threshold consecutive trading-day period | 5 days | ||||||
Conversion price (in dollars per share) | $ / shares | $ 106.74 | ||||||
Allocated to equity components | $ 61,900,000 | ||||||
Offering costs | 1,900,000 | ||||||
Discount | $ 70,600,000 | ||||||
Accretion of debt discount | 0 | 0 | 4,700,000 | ||||
Debt issuance costs | 12,600,000 | ||||||
Repurchase amount | 200,000,000 | ||||||
Repurchase of convertible debt | 181,800,000 | ||||||
Gain (loss) on extinguishment of debt | $ 15,100,000 | ||||||
Unamortized debt issuance expense | $ 4,765,000 | 10,659,000 | |||||
Shares Issuable(in shares) | shares | 3 | ||||||
Threshold business days | 5 days | ||||||
Threshold percentage of trading price trigger (as a percent) | 98% | ||||||
Taxes | $ 6,700,000 | ||||||
Issuance costs | $ 14,500,000 | ||||||
Convertible Notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Conversion rate (in shares) | 0.0136304 | ||||||
Convertible Notes due 2027 | Carrying Value | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 559,000,000 | ||||||
Convertible Notes due 2027 | Convertible Notes Payable | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 575,000,000 | 575,000,000 | 0 | ||||
Net proceeds from offering | $ 558,700,000 | ||||||
Interest rate (as a percent) | 2.625% | ||||||
Repurchase percentage of principal (as a percent) | 100% | ||||||
Threshold percentage of stock price trigger (as a percent) | 130% | ||||||
Threshold trading days | segment | 20 | ||||||
Consecutive trading days | segment | 30 | ||||||
Threshold consecutive trading-day period | 5 days | ||||||
Conversion price, cap (in dollars per share) | $ / shares | $ 110.74 | ||||||
Conversion price (in dollars per share) | $ / shares | $ 73.37 | ||||||
Debt issuance costs, gross | $ 16,300,000 | ||||||
Unamortized debt issuance expense | $ 15,966,000 | $ 0 | |||||
Shares converted (in shares) | shares | 7.8 | ||||||
Threshold business days | 5 days | ||||||
Threshold percentage of trading price trigger (as a percent) | 98% |
Debt (Interest Expense) (Schedu
Debt (Interest Expense) (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | |||
Coupon interest | $ 10,897 | $ 9,919 | $ 7,442 |
Amortization of issuance costs | 4,678 | 5,745 | 3,396 |
Undrawn and other fees | 1,268 | 1,267 | 796 |
Accretion of debt discount | 0 | 0 | 14,084 |
Interest on revolving credit facility | 0 | 0 | 5,786 |
Total interest expense | 16,843 | $ 16,931 | $ 31,504 |
Convertible Debt | |||
Line of Credit Facility [Line Items] | |||
Gain on extinguishment of debt | $ 1,700 |
Debt (Interest Expense) (Narrat
Debt (Interest Expense) (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||||
Coupon interest | $ 10,897 | $ 9,919 | $ 7,442 | |
Interest expense | 16,843 | 16,931 | 31,504 | |
Convertible Notes due 2023 | ||||
Line of Credit Facility [Line Items] | ||||
Repurchase amount | $ 300,000 | |||
Gain (loss) on extinguishment of debt | $ (13,421) | $ 0 | $ 0 | |
Effective interest rate (as a percent) | 2.40% | 2.40% | 6% | |
Convertible Notes due 2025 | ||||
Line of Credit Facility [Line Items] | ||||
Repurchase amount | 200,000 | |||
Gain (loss) on extinguishment of debt | $ 15,089 | $ 0 | $ 0 | |
Effective interest rate (as a percent) | 1.30% | 1.30% | 4% | |
Convertible Notes Payable | Convertible Notes due 2023 | ||||
Line of Credit Facility [Line Items] | ||||
Interest and debt expense | $ 20,700 | $ 8,000 | $ 17,100 | |
Coupon interest | 5,400 | 6,000 | 6,000 | |
Amortization of debt issuance costs and discounts | 1,900 | 2,000 | 11,100 | |
Repurchase amount | 300,000 | |||
Gain (loss) on extinguishment of debt | (13,400) | |||
Convertible Notes Payable | Convertible Notes due 2025 | ||||
Line of Credit Facility [Line Items] | ||||
Interest and debt expense | (8,600) | 6,800 | 6,900 | |
Coupon interest | 3,700 | 3,900 | 1,400 | |
Amortization of debt issuance costs and discounts | 2,800 | $ 2,900 | $ 5,500 | |
Repurchase amount | 200,000 | |||
Gain (loss) on extinguishment of debt | $ 15,100 | |||
Convertible Notes Payable | Convertible Notes due 2027 | ||||
Line of Credit Facility [Line Items] | ||||
Coupon interest | 1,800 | |||
Amortization of debt issuance costs and discounts | 400 | |||
Interest expense | $ 2,200 | |||
Effective interest rate (as a percent) | 3.20% | |||
Convertible Debt | ||||
Line of Credit Facility [Line Items] | ||||
Gain (loss) on extinguishment of debt | $ 1,700 | |||
Convertible Debt | Convertible Notes due 2023 | ||||
Line of Credit Facility [Line Items] | ||||
Gain (loss) on extinguishment of debt | (13,400) | |||
Convertible Debt | Convertible Notes due 2025 | ||||
Line of Credit Facility [Line Items] | ||||
Gain (loss) on extinguishment of debt | $ (15,100) |
Leases (Narratives) (Details)
Leases (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Lease renewal term (in years) | 7 years | ||
Lease termination option (in days) | 90 days | ||
Facility Closing | |||
Lessee, Lease, Description [Line Items] | |||
Lease termination expense | $ 13 | $ 1.5 | $ 2.7 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term of contract (in years) | 3 months | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term of contract (in years) | 11 years | ||
Term of contract, leases not yet commenced (up to) (in years) | 10 years |
Leases (Schedule of Companys Le
Leases (Schedule of Companys Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Total operating lease cost | $ 15,157 | $ 18,600 |
Short-term lease cost | $ 12,445 | $ 4,940 |
Weighted average remaining lease term (in years) | 9 years 2 months 12 days | 9 years 9 months 18 days |
Weighted average discount rate | 5% | 5.10% |
Cash paid for amounts included in the measurement of the operating lease liability | $ 15,748 | $ 18,052 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 16,058 |
2024 | 17,925 |
2025 | 15,372 |
2026 | 15,242 |
2027 | 15,370 |
Thereafter | 74,709 |
Total future minimum lease payments | 154,676 |
Less imputed interest | (32,075) |
Total operating lease liabilities | $ 122,601 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 20, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2016 | |
Stockholders' equity | |||||
Shares authorized for repurchase (in shares) | 2,000,000 | ||||
Repurchase of common stock | $ 95,039 | $ 4,001 | |||
Remaining shares authorized for repurchase (maximum) (in shares) | 331,260 | ||||
Treasury Stock | |||||
Stockholders' equity | |||||
Share repurchases (in shares) | 1,569,642 | 55,488 | |||
Repurchase of common stock | $ 95,039 | $ 4,001 | |||
Common Stock | |||||
Stockholders' equity | |||||
Issuance of common stock (in shares) | 78,677 | 1,685 | |||
Common Stock | Private Placement | Warrant | |||||
Stockholders' equity | |||||
Number of shares issued in transaction (in shares) | 470,000 | ||||
Sale of stock (in dollars per share) | $ 65.16 | ||||
Warrants exercisable period (in years) | 4 years |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value Assets and Liabilities) (Details) - Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Level I | ||
Assets: | ||
Assets to fund deferred compensation liability | $ 0 | $ 0 |
Total assets | 2,628 | 2,684 |
Liabilities: | ||
Contingent consideration | 0 | |
Deferred compensation liability | 8,088 | 10,418 |
Total liabilities | 8,088 | 10,418 |
Level I | Money market funds | ||
Assets: | ||
Money market funds | 2,628 | 2,684 |
Level II | ||
Assets: | ||
Assets to fund deferred compensation liability | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Contingent consideration | 0 | |
Deferred compensation liability | 0 | 0 |
Total liabilities | 0 | 0 |
Level II | Money market funds | ||
Assets: | ||
Money market funds | 0 | 0 |
Level III | ||
Assets: | ||
Assets to fund deferred compensation liability | 10,074 | 11,140 |
Total assets | 10,074 | 11,140 |
Liabilities: | ||
Contingent consideration | 743 | |
Deferred compensation liability | 0 | 0 |
Total liabilities | 0 | 743 |
Level III | Money market funds | ||
Assets: | ||
Money market funds | 0 | 0 |
Fair Value | ||
Assets: | ||
Assets to fund deferred compensation liability | 10,074 | 11,140 |
Total assets | 12,702 | 13,824 |
Liabilities: | ||
Contingent consideration | 743 | |
Deferred compensation liability | 8,088 | 10,418 |
Total liabilities | 8,088 | 11,161 |
Fair Value | Money market funds | ||
Assets: | ||
Money market funds | $ 2,628 | $ 2,684 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Deferred Compensation Liability and Contingent Consideration Liability) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value of Contingent Consideration Liabilities | |
Beginning balance | $ 743 |
Payments of contingent consideration liability | (743) |
Ending balance | 0 |
Fair Value of Assets Used to Fund Deferred Compensation Liability | |
Beginning balance | 11,140 |
Contributions | 649 |
Fair value adjustments and fees | (1,715) |
Ending balance | $ 10,074 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narratives) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Nov. 30, 2022 | Dec. 31, 2021 | Aug. 31, 2020 | May 31, 2018 | |
Fair Value Measurements | |||||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | General and administration | ||||
Convertible Notes due 2023 | |||||
Fair Value Measurements | |||||
Face amount | $ 345,000,000 | ||||
Convertible Notes due 2023 | Convertible Notes Payable | |||||
Fair Value Measurements | |||||
Face amount | $ 45,000,000 | $ 345,000,000 | $ 345,000,000 | ||
Convertible Notes due 2023 | Carrying Value | |||||
Fair Value Measurements | |||||
Convertible notes | 44,900,000 | 342,000,000 | |||
Convertible Notes due 2023 | Fair Value | |||||
Fair Value Measurements | |||||
Debt, fair value disclosure | 46,100,000 | 439,900,000 | |||
Convertible Notes due 2025 | Convertible Notes Payable | |||||
Fair Value Measurements | |||||
Face amount | 317,500,000 | 517,500,000 | $ 517,500,000 | ||
Convertible Notes due 2025 | Carrying Value | |||||
Fair Value Measurements | |||||
Convertible notes | 312,700,000 | 506,800,000 | |||
Convertible Notes due 2025 | Fair Value | |||||
Fair Value Measurements | |||||
Debt, fair value disclosure | 293,700,000 | 526,100,000 | |||
Convertible Notes due 2027 | Convertible Notes Payable | |||||
Fair Value Measurements | |||||
Face amount | 575,000,000 | $ 575,000,000 | 0 | ||
Convertible Notes due 2027 | Carrying Value | |||||
Fair Value Measurements | |||||
Convertible notes | 559,000,000 | ||||
Convertible Notes due 2027 | Fair Value | |||||
Fair Value Measurements | |||||
Debt, fair value disclosure | 606,100,000 | ||||
Amended Credit Agreement | |||||
Fair Value Measurements | |||||
Revolving credit facility | $ 0 | $ 0 |
Revenues and Cost of Revenues_2
Revenues and Cost of Revenues (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Total revenues | $ 1,239,784 | $ 1,186,517 | $ 998,230 |
United States | |||
Revenues: | |||
Total revenues | 1,218,254 | 1,166,251 | 977,047 |
International | |||
Revenues: | |||
Total revenues | 21,530 | 20,266 | 21,183 |
Total recurring revenues | |||
Revenues: | |||
Total revenues | 1,216,072 | 1,163,365 | 967,454 |
Asset-based | |||
Revenues: | |||
Total revenues | 738,228 | 709,376 | 540,947 |
Subscription-based | |||
Revenues: | |||
Total revenues | 477,844 | 453,989 | 426,507 |
Professional services and other revenues | |||
Revenues: | |||
Total revenues | 23,712 | 23,152 | 30,776 |
Envestnet Wealth Solutions | |||
Revenues: | |||
Total revenues | 1,049,793 | 991,166 | 806,090 |
Envestnet Wealth Solutions | Total recurring revenues | |||
Revenues: | |||
Total revenues | 1,033,225 | 977,096 | 789,757 |
Envestnet Wealth Solutions | Asset-based | |||
Revenues: | |||
Total revenues | 738,228 | 709,376 | 540,947 |
Envestnet Wealth Solutions | Subscription-based | |||
Revenues: | |||
Total revenues | 294,997 | 267,720 | 248,810 |
Envestnet Wealth Solutions | Professional services and other revenues | |||
Revenues: | |||
Total revenues | 16,568 | 14,070 | 16,333 |
Envestnet Data & Analytics | |||
Revenues: | |||
Total revenues | 189,991 | 195,351 | 192,140 |
Envestnet Data & Analytics | Total recurring revenues | |||
Revenues: | |||
Total revenues | 182,847 | 186,269 | 177,697 |
Envestnet Data & Analytics | Asset-based | |||
Revenues: | |||
Total revenues | 0 | 0 | 0 |
Envestnet Data & Analytics | Subscription-based | |||
Revenues: | |||
Total revenues | 182,847 | 186,269 | 177,697 |
Envestnet Data & Analytics | Professional services and other revenues | |||
Revenues: | |||
Total revenues | $ 7,144 | $ 9,082 | $ 14,443 |
Revenues and Cost of Revenues_3
Revenues and Cost of Revenues (Major Customers) (Details) - Revenues - Customer concentration risk | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fidelity | |||
Major Customers | |||
Revenue as a percentage of the company's total | 16% | 17% | 15% |
One Customer | |||
Major Customers | |||
Revenue as a percentage of the company's total | 10% |
Revenues and Cost of Revenues_4
Revenues and Cost of Revenues (Remaining Performance Obligations) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Remaining Performance Obligations | |
Remaining performance obligations | $ 544.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Remaining Performance Obligations | |
Revenue, remaining performance obligation, percentage | 43% |
Revenue recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Remaining Performance Obligations | |
Revenue, remaining performance obligation, percentage | 42% |
Revenue recognition period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Remaining Performance Obligations | |
Revenue, remaining performance obligation, percentage | 12% |
Revenue recognition period |
Revenues and Cost of Revenues_5
Revenues and Cost of Revenues (Contract Balances) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue period increase (decrease) | $ 4.9 | $ (2) |
Recognized deferred revenue | $ 33.1 | $ 33.8 |
Revenues and Cost of Revenues_6
Revenues and Cost of Revenues (Deferred Sales Incentive Compensation) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred sales incentive compensation | $ 11,000,000 | $ 11,800,000 |
Amortization expense for the deferred sales incentive compensation | 4,300,000 | 4,400,000 |
Impairment loss for capitalized costs | $ 0 | $ 0 |
Revenues and Cost of Revenues_7
Revenues and Cost of Revenues (Cost of Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Cost of revenues | $ 468,460 | $ 423,723 | $ 305,929 |
Asset-based | |||
Disaggregation of Revenue [Line Items] | |||
Cost of revenues | 430,345 | 393,717 | 278,569 |
Subscription-based | |||
Disaggregation of Revenue [Line Items] | |||
Cost of revenues | 30,613 | 29,445 | 26,934 |
Professional services and other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Cost of revenues | $ 7,502 | $ 561 | $ 426 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narratives) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
May 01, 2019 USD ($) shares | Jun. 22, 2010 shares | Jul. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) segment $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) $ / shares | Dec. 31, 2019 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares available for future issuance (in shares) | shares | 2,579,021 | ||||||
U.S. federal corporate income tax rate | 25.50% | 25.50% | 25.50% | ||||
Fair value adjustment gain on settlement | $ 2,500 | ||||||
Membership interests, grant date fair value | $ 8,900 | ||||||
Share repurchases | $ 85,750 | $ 4,001 | $ 0 | ||||
Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Intrinsic value per share (in dollars per share) | $ / shares | $ 61.70 | $ 79.34 | $ 82.29 | ||||
Stock Option | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise prices of stock options outstanding (in dollars per share) | $ / shares | 15.34 | ||||||
Stock Option | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise prices of stock options outstanding (in dollars per share) | $ / shares | $ 74.83 | ||||||
Target Incentive Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
Unrecognized compensation expense weighted-average recognition period | 1 year 6 months | ||||||
Unrecognized compensation expense related to shares | $ 4,800 | ||||||
Target Incentive Awards | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares to be vest upon each evaluation date (as a percent) | 0% | ||||||
Target Incentive Awards | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares to be vest upon each evaluation date (as a percent) | 150% | ||||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense weighted-average recognition period | 1 year 9 months 18 days | ||||||
Unrecognized compensation expense related to shares | $ 88,200 | ||||||
Restricted Stock Units | Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percent (as a percent) | 33.333% | ||||||
Restricted Stock Units | Tranche Three | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percent (as a percent) | 33.333% | ||||||
Restricted Stock Units | Tranche Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percent (as a percent) | 33.333% | ||||||
PIEtech | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Cash retention payments | $ 800 | $ 500 | $ 3,300 | ||||
PIEtech | Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share repurchases | $ 10,000 | ||||||
Number of individuals who received ownership in the company | segment | 2 | ||||||
2010 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based awards, contractual term | 10 years | ||||||
Shares authorized for issuance (in shares) | shares | 12,375,000 | ||||||
Equity Plan | PIEtech | Restricted Stock Units and Performance Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized for issuance (in shares) | shares | 301,469 | ||||||
Future grant date | 60 days | ||||||
Equity Plan | PIEtech | Restricted Stock Units and Performance Stock Units | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
Equity Plan | PIEtech | Restricted Stock Units and Performance Stock Units | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 5 years |
Stock-Based Compensation (Compe
Stock-Based Compensation (Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of employee stock-based compensation expense | |||
Stock-based compensation expense | $ 79,581 | $ 67,525 | $ 56,292 |
Tax effect on stock-based compensation expense | (20,293) | (17,219) | (14,354) |
Net effect on income | $ 59,288 | $ 50,306 | $ 41,938 |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of weighted average assumptions used to value options granted | |||
Grant date fair value of options (in dollars per share) | $ 0 | $ 31.23 | $ 0 |
Volatility | 0% | 42.10% | 0% |
Risk-free interest rate | 0% | 0.40% | 0% |
Dividend yield | 0% | 0% | 0% |
Expected term (in years) | 0 years | 6 years 6 months | 0 years |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted-Average Remaining Contractual Life | ||||
Outstanding | 3 years 3 months 18 days | |||
Stock Option | ||||
Options | ||||
Outstanding at the beginning of the period (in shares) | 365,241 | 438,040 | 1,150,586 | |
Granted (in shares) | 4,781 | |||
Exercised (in shares) | (82,802) | (76,303) | (705,333) | |
Forfeited (in shares) | (4,904) | (1,277) | (7,213) | |
Outstanding at the end of the period (in shares) | 277,535 | 365,241 | 438,040 | 1,150,586 |
Options exercisable (in shares) | 277,303 | |||
Weighted-Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 38.61 | $ 36.28 | $ 25.66 | |
Granted (in dollars per share) | 74.83 | |||
Exercised (in dollars per share) | 31.67 | 27.37 | 18.83 | |
Forfeited (in dollars per share) | 72.96 | 49.02 | 48.70 | |
Outstanding at the end of the period (in dollars per share) | 40.07 | $ 38.61 | $ 36.28 | $ 25.66 |
Options exercisable (in dollars per share) | $ 39.69 | |||
Weighted-Average Remaining Contractual Life | ||||
Outstanding | 2 years 2 months 12 days | 3 years 3 months 18 days | 4 years 1 month 6 days | 3 years 4 months 24 days |
Options exercisable | 2 years 2 months 12 days | |||
Aggregate Intrinsic Value | ||||
Outstanding | $ 6,005 | $ 14,878 | $ 20,156 | $ 50,590 |
Options exercisable | $ 6,005 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Other Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $ 2,650 | $ 3,815 | $ 35,687 |
Cash received from exercises of stock options | $ 2,620 | $ 2,090 | $ 10,760 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Units and Restricted Stock Awards) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock Units | |||
Number of Shares | |||
Balance at the beginning of the period (in shares) | 1,507,424 | 1,345,347 | 1,318,870 |
Granted (in shares) | 1,401,742 | 1,195,313 | 970,390 |
Vested (in shares) | (908,362) | (828,942) | (804,982) |
Forfeited (in shares) | (318,828) | (204,294) | (138,931) |
Balance at the end of the period (in shares) | 1,681,976 | 1,507,424 | 1,345,347 |
Weighted-Average Grant Date Fair Value per Share | |||
Balance at the beginning of the period (in dollars per share) | $ 71.50 | $ 70.56 | $ 58.88 |
Granted (in dollars per share) | 73.13 | 71.03 | 74.61 |
Vested (in dollars per share) | 71.22 | 69.50 | 57.77 |
Forfeited (in dollars per share) | 73.16 | 70.71 | 62.14 |
Balance at the end of the period (in dollars per share) | $ 72.69 | $ 71.50 | $ 70.56 |
PSUs | |||
Number of Shares | |||
Balance at the beginning of the period (in shares) | 359,184 | 302,797 | 254,118 |
Granted (in shares) | 113,269 | 129,865 | 81,689 |
Vested (in shares) | (155,417) | (62,524) | 0 |
Forfeited (in shares) | (57,987) | (10,954) | (33,010) |
Balance at the end of the period (in shares) | 259,049 | 359,184 | 302,797 |
Weighted-Average Grant Date Fair Value per Share | |||
Balance at the beginning of the period (in dollars per share) | $ 73.64 | $ 72.50 | $ 67.96 |
Granted (in dollars per share) | 68.47 | 70.92 | 83.47 |
Vested (in dollars per share) | 66.22 | 61.53 | 0 |
Forfeited (in dollars per share) | 78.17 | 78.97 | 64.70 |
Balance at the end of the period (in dollars per share) | $ 74.83 | $ 73.64 | $ 72.50 |
Benefit Plan (Details)
Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Voluntary employer matching contributions | $ 8,087 | $ 6,873 | $ 6,247 |
Income Taxes (Loss Before Incom
Income Taxes (Loss Before Income Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of Income before income tax provision | |||
Domestic | $ (89,000) | $ 9,730 | $ (17,234) |
Foreign | 10,581 | 10,631 | 9,189 |
Income (loss) before income tax provision (benefit) | $ (78,419) | $ 20,361 | $ (8,045) |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 1,185 | $ 0 | $ (1,086) |
State | 6,964 | 3,488 | 2,111 |
Foreign | 2,402 | 4,499 | (4,542) |
Current income tax provision | 10,551 | 7,987 | (3,517) |
Deferred: | |||
Federal | (2,453) | 4,021 | (2,659) |
State | (1,439) | (3,548) | 1,158 |
Foreign | 402 | (793) | (383) |
Deferred Total | (3,490) | (320) | (1,884) |
Total | $ 7,061 | $ 7,667 | $ (5,401) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred revenue | $ 8,945 | $ 6,436 |
Prepaid expenses and accrued expenses | 8,847 | 8,099 |
Right-of-use assets | (20,388) | (22,190) |
Lease liabilities | 31,328 | 28,994 |
Net operating loss and tax credit carryforwards | 64,590 | 85,698 |
Property and equipment and intangible assets | (94,061) | (100,314) |
Stock-based compensation expense | 10,559 | 9,652 |
Investment in partnerships | 2,836 | 2,941 |
Convertible Notes | 20,440 | 0 |
R&D expenditures | 43,956 | 0 |
Withholding taxes | (4,841) | 0 |
Other | 196 | |
Other | (173) | |
Total deferred tax assets, net | 72,407 | 19,143 |
Less: valuation allowance | (88,603) | (40,164) |
Net deferred tax liabilities | (16,196) | (21,021) |
Deferred tax liability related to dividend distribution tax | 2,000 | |
Valuation allowance related to capital losses | $ 88,600 | $ 40,200 |
Income Taxes (Rate Reconciliati
Income Taxes (Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax provision (benefit), at U.S. federal statutory tax rate | $ (15,515) | $ 4,402 | $ (1,787) |
State income tax provision (benefit), net of federal benefit | (3,463) | 856 | (2,461) |
Effect of stock-based compensation excess tax benefit | 717 | (364) | (9,349) |
Effect of limitation on executive compensation | 2,511 | 1,678 | 961 |
Effect of permanent items | 869 | 661 | (703) |
Effect of India partnerships | 1,644 | 1,422 | 2,977 |
Change in valuation allowance | 26,974 | 5,660 | 16,210 |
Effect of change in state and foreign income tax rates | (254) | (1,184) | 1,323 |
Uncertain tax positions | (617) | 158 | (6,093) |
Research and development credits | (10,993) | (5,695) | (5,939) |
Change in India indefinite reinvestment assertion | 4,372 | 0 | 0 |
Other | 816 | 73 | (540) |
Total | $ 7,061 | $ 7,667 | $ (5,401) |
Income Taxes (NOL) (Details)
Income Taxes (NOL) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Operating Loss Carryforwards | |
NOL, offset future federal taxable income | $ 32 |
NOL, carried forward indefinitely | 37 |
Federal | |
Operating Loss Carryforwards | |
NOL carryforwards | 69 |
Federal | Research and development | |
Operating Loss Carryforwards | |
Tax credit carryforward | 38 |
State | |
Operating Loss Carryforwards | |
NOL carryforwards | 221 |
State | Research and development | |
Operating Loss Carryforwards | |
Tax credit carryforward | 14 |
Foreign | |
Operating Loss Carryforwards | |
Tax credit carryforward | $ 0.9 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of unrecognized tax benefit | |||
Unrecognized tax benefits balance at beginning of year | $ 14,517 | $ 15,132 | $ 18,939 |
Additions based on tax positions related to the current year | 2,522 | 1,631 | 1,420 |
Reductions based on tax positions related to prior years | (296) | (550) | (2,793) |
Reductions for settlements with taxing authorities related to prior years | 0 | (394) | (2,434) |
Reductions for lapses of statute of limitations | (3,131) | (1,302) | 0 |
Unrecognized tax benefits balance at end of year | 13,612 | 14,517 | $ 15,132 |
Unrecognized tax benefits that would impact effective tax rate, if recognized | 13,600 | ||
Decrease in unrecognized tax benefits is possible in next twelve months | 300 | ||
Potential interest and penalties related to unrecognized tax benefits included in income tax expense (benefit) | 300 | 600 | |
Accrued interest and penalties on unrecognized tax benefits | $ 2,000 | $ 1,900 |
Net Income (Loss) Per Share (Co
Net Income (Loss) Per Share (Computation of Basic and Diluted Net Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Basic [Abstract] | |||
Net income (loss) attributable to Envestnet, Inc. | $ (80,939) | $ 13,296 | $ (3,110) |
Interest and gain on settlement of Convertible Notes due 2025, net of interest and tax | (9,524) | 0 | 0 |
Net income (loss) attributable to Envestnet, Inc. - Diluted | $ (90,463) | $ 13,296 | $ (3,110) |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 55,199,482 | 54,470,975 | 53,589,232 |
Effect of dilutive shares: | |||
Convertible notes (in shares) | 1,642,643 | 0 | 0 |
Warrants (in shares) | 0 | 73,715 | 0 |
Diluted (in shares) | 56,842,125 | 55,384,096 | 53,589,232 |
Net income (loss) per share attributable to Envestnet, Inc common stock: | |||
Basic (in dollars per share) | $ (1.47) | $ 0.24 | $ (0.06) |
Diluted (in dollars per share) | $ (1.59) | $ 0.24 | $ (0.06) |
Stock Option | |||
Effect of dilutive shares: | |||
Options to purchase common stock and unvested restricted stock units (in shares) | 0 | 206,022 | 0 |
Restricted Stock Units | |||
Effect of dilutive shares: | |||
Options to purchase common stock and unvested restricted stock units (in shares) | 0 | 633,384 | 0 |
Convertible Notes due 2023 | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Conversion price (in dollars per share) | $ 68.31 | ||
Convertible Notes due 2025 | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Conversion price (in dollars per share) | $ 106.74 |
Net Income (Loss) Per Share (An
Net Income (Loss) Per Share (Antidilutive Securities) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | |||
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares) | 13,689,206 | 9,898,549 | 12,454,733 |
Options to purchase common stock | |||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | |||
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares) | 277,535 | 0 | 438,040 |
Unvested RSU's and PSU's | |||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | |||
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares) | 1,941,025 | 0 | 1,648,144 |
Convertible Notes | |||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | |||
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares) | 11,470,646 | 9,898,549 | 9,898,549 |
Convertible Notes | Convertible Notes due 2027 | |||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | |||
Antidilutive securities period increase (decrease) (in shares) | 7,837,480 | ||
Convertible Notes | Convertible Notes due 2023 | |||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | |||
Antidilutive securities period increase (decrease) (in shares) | (4,391,743) | ||
Convertible Notes | Convertible Notes due 2025 | |||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | |||
Antidilutive securities period increase (decrease) (in shares) | (1,873,640) | ||
Warrants | |||
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share | |||
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares) | 0 | 0 | 470,000 |
Segment Information (Reconcilia
Segment Information (Reconciliation From Income (Loss) From Operations By Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Income (loss) from operations | $ (66,024) | $ 40,541 | $ 19,441 |
Nonsegment operating expenses | (1,305,808) | (1,145,976) | (978,789) |
Interest expense, net of interest income | (12,659) | (16,104) | (30,392) |
Other income (expense), net | 264 | (4,076) | 2,906 |
Income (loss) before income tax provision (benefit) | (78,419) | 20,361 | (8,045) |
Income tax provision (benefit) | 7,061 | 7,667 | (5,401) |
Net income (loss) | (85,480) | 12,694 | (2,644) |
Add: Net (income) loss attributable to non-controlling interest | 4,541 | 602 | (466) |
Net income (loss) attributable to Envestnet, Inc. | (80,939) | 13,296 | (3,110) |
Operating Segments | Envestnet Wealth Solutions | |||
Segment Reporting Information [Line Items] | |||
Income (loss) from operations | 55,972 | 124,651 | 91,501 |
Operating Segments | Envestnet Data & Analytics | |||
Segment Reporting Information [Line Items] | |||
Income (loss) from operations | (20,870) | 2,033 | (9,943) |
Nonsegment | |||
Segment Reporting Information [Line Items] | |||
Nonsegment operating expenses | $ (101,126) | $ (86,143) | $ (62,117) |
Segment Information (Narratives
Segment Information (Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Consolidated total assets | $ 2,112,165 | $ 2,241,182 | |
Consolidated depreciation and amortization | 130,548 | 117,767 | $ 113,661 |
Consolidated capital expenditures | 105,325 | 88,901 | 66,996 |
Envestnet Wealth Solutions | |||
Segment Reporting Information [Line Items] | |||
Consolidated total assets | 1,503,646 | 1,720,779 | |
Consolidated depreciation and amortization | 96,658 | 90,073 | 80,714 |
Consolidated capital expenditures | 79,993 | 65,264 | 46,891 |
Envestnet Data & Analytics | |||
Segment Reporting Information [Line Items] | |||
Consolidated total assets | 608,519 | 520,403 | |
Consolidated depreciation and amortization | 33,890 | 27,694 | 32,947 |
Consolidated capital expenditures | $ 25,332 | $ 23,637 | $ 20,105 |
Geographical Information (Detai
Geographical Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 247,001 | $ 183,874 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | 245,817 | 180,680 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | 1,093 | 2,923 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 91 | $ 271 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | ||||||
Apr. 01, 2022 USD ($) | Jul. 19, 2021 claim | Jun. 21, 2021 USD ($) | Oct. 21, 2020 plaintiff | Dec. 31, 2022 USD ($) previousClaim | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Other Commitments [Line Items] | |||||||
Number of previous claims experienced | previousClaim | 0 | ||||||
Purchase obligations | $ 103,000 | ||||||
Unconditional purchase obligation period increase | 65,000 | ||||||
Future funding commitment | 12,500 | ||||||
Payments to acquire intangible assets | 15,000 | $ 25,517 | $ 0 | ||||
Case No. 3:20-cv-05991-SK | |||||||
Other Commitments [Line Items] | |||||||
Number of plaintiffs | plaintiff | 9 | ||||||
Claims dismissed | claim | 2 | ||||||
Technology Solutions | |||||||
Other Commitments [Line Items] | |||||||
Consideration transferred | $ 9,000 | $ 18,000 | |||||
Payments to acquire intangible assets | $ 3,000 | 4,000 | |||||
Redi2 acquisition | |||||||
Other Commitments [Line Items] | |||||||
Contingent consideration | $ 20,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Convertible Notes Payable - Subsequent Event - Convertible Notes due 2026 $ in Millions | Jan. 31, 2023 USD ($) |
Subsequent Events | |
Face amount | $ 20 |
Interest rate (as a percent) | 8% |