Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | ASSETMARK FINANCIAL HOLDINGS, INC. | |
Entity Central Index Key | 0001591587 | |
Entity File Number | 001-38980 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 30-0774039 | |
Entity Address, Address Line One | 1655 Grant Street | |
Entity Address, Address Line Two | 10th Floor | |
Entity Address, City or Town | Concord | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94520 | |
City Area Code | 925 | |
Local Phone Number | 521-2200 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | AMK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 73,550,507 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 50,448 | $ 70,619 |
Restricted cash | 12,000 | 11,000 |
Investments, at fair value | 13,872 | 10,577 |
Fees and other receivables, net | 9,776 | 8,891 |
Income tax receivable, net | 11,154 | 8,596 |
Prepaid expenses and other current assets | 11,305 | 13,637 |
Total current assets | 108,555 | 123,320 |
Property, plant and equipment, net | 7,788 | 7,388 |
Capitalized software, net | 71,994 | 68,835 |
Other intangible assets, net | 706,623 | 655,736 |
Operating lease right-of-use assets | 23,315 | 27,496 |
Goodwill | 440,757 | 338,848 |
Other assets | 2,145 | 1,965 |
Total assets | 1,361,177 | 1,223,588 |
Current liabilities: | ||
Accounts payable | 1,024 | 2,199 |
Accrued liabilities and other current liabilities | 47,724 | 43,694 |
Total current liabilities | 48,748 | 45,893 |
Long-term debt, net | 115,000 | 75,000 |
Other long-term liabilities | 17,190 | 16,302 |
Long-term portion of operating lease liabilities | 29,288 | 31,820 |
Deferred income tax liabilities, net | 159,475 | 149,500 |
Total long-term liabilities | 320,953 | 272,622 |
Total liabilities | 369,701 | 318,515 |
Stockholders’ equity: | ||
Common stock, $0.001 par value (675,000,000 shares authorized and 73,548,557 and 72,459,255 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively) | 74 | 72 |
Additional paid-in capital | 923,511 | 850,430 |
Retained earnings | 67,891 | 54,571 |
Total stockholders’ equity | 991,476 | 905,073 |
Total liabilities and stockholders’ equity | $ 1,361,177 | $ 1,223,588 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 675,000,000 | 675,000,000 |
Common stock, shares issued | 73,548,557 | 72,459,255 |
Common stock, shares outstanding | 73,548,557 | 72,459,255 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
Total revenue | $ 139,667 | $ 107,138 | $ 386,715 | $ 321,159 |
Operating expenses: | ||||
Asset-based expenses | 38,697 | 33,431 | 110,609 | 98,530 |
Spread-based expenses | (484) | 436 | 1,060 | 2,158 |
Employee compensation | 44,051 | 42,802 | 150,800 | 131,663 |
General and operating expenses | 18,794 | 15,947 | 52,599 | 48,695 |
Professional fees | 5,071 | 3,636 | 14,349 | 10,627 |
Depreciation and amortization | 10,648 | 8,670 | 29,849 | 25,826 |
Total operating expenses | 116,777 | 104,922 | 359,266 | 317,499 |
Interest expense | 1,061 | 1,344 | 2,606 | 4,445 |
Other income (expense), net | 119 | (15) | 82 | (4) |
Income (loss) before income taxes | 21,710 | 887 | 24,761 | (781) |
Provision for (benefit from) income taxes | 9,460 | (7,710) | 11,441 | (2,834) |
Net income | 12,250 | 8,597 | 13,320 | 2,053 |
Net comprehensive income | $ 12,250 | $ 8,597 | $ 13,320 | $ 2,053 |
Net income per share attributable to common stockholders: | ||||
Basic | $ 0.17 | $ 0.13 | $ 0.19 | $ 0.03 |
Diluted | $ 0.17 | $ 0.12 | $ 0.19 | $ 0.03 |
Weighted average number of common shares outstanding, basic | 72,921,794 | 67,282,040 | 71,764,582 | 67,211,341 |
Weighted average number of common shares outstanding, diluted | 73,566,777 | 70,068,690 | 71,940,398 | 69,695,817 |
Asset Based Revenue | ||||
Revenue: | ||||
Total revenue | $ 134,152 | $ 103,808 | $ 374,655 | $ 304,170 |
Subscription Based Revenue | ||||
Revenue: | ||||
Total revenue | 3,172 | 3,172 | ||
Spread Based Revenue | ||||
Revenue: | ||||
Total revenue | 1,235 | 2,628 | 6,513 | 14,128 |
Other Revenue | ||||
Revenue: | ||||
Total revenue | $ 1,108 | $ 702 | $ 2,375 | $ 2,861 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings |
Beginning balance at Dec. 31, 2019 | $ 858,861 | $ 72 | $ 796,406 | $ 62,383 |
Beginning balance, shares at Dec. 31, 2019 | 72,390,080 | |||
Net income (loss) | 2,053 | 2,053 | ||
Exercise of stock options | 187 | 187 | ||
Exercise of stock options, shares | 8,504 | |||
Issuance of common stock - vesting of restricted stock units, shares | 50,671 | |||
Share-based employee compensation | 40,041 | 40,041 | ||
Ending balance at Sep. 30, 2020 | 901,142 | $ 72 | 836,634 | 64,436 |
Ending balance, shares at Sep. 30, 2020 | 72,449,255 | |||
Beginning balance at Jun. 30, 2020 | 879,439 | $ 72 | 823,528 | 55,839 |
Beginning balance, shares at Jun. 30, 2020 | 72,390,080 | |||
Net income (loss) | 8,597 | 8,597 | ||
Exercise of stock options | 187 | 187 | ||
Exercise of stock options, shares | 8,504 | |||
Issuance of common stock - vesting of restricted stock units, shares | 50,671 | |||
Share-based employee compensation | 12,919 | 12,919 | ||
Ending balance at Sep. 30, 2020 | 901,142 | $ 72 | 836,634 | 64,436 |
Ending balance, shares at Sep. 30, 2020 | 72,449,255 | |||
Beginning balance at Dec. 31, 2020 | 905,073 | $ 72 | 850,430 | 54,571 |
Beginning balance, shares at Dec. 31, 2020 | 72,459,255 | |||
Net income (loss) | 13,320 | 13,320 | ||
Exercise of stock options | 94 | 94 | ||
Exercise of stock options, shares | 4,252 | |||
Issuance of common stock - vesting of restricted stock units | $ 1 | (1) | ||
Issuance of common stock - vesting of restricted stock units, shares | 93,940 | |||
Share-based employee compensation | 48,079 | 48,079 | ||
Common stock issued in connection with businesscombination | 24,910 | $ 1 | 24,909 | |
Common stock issued in connection with business, shares | 994,028 | |||
Cancellation of unvested restricted stock awards, shares | (2,918) | |||
Ending balance at Sep. 30, 2021 | 991,476 | $ 74 | 923,511 | 67,891 |
Ending balance, shares at Sep. 30, 2021 | 73,548,557 | |||
Beginning balance at Jun. 30, 2021 | 946,248 | $ 73 | 890,534 | 55,641 |
Beginning balance, shares at Jun. 30, 2021 | 72,540,664 | |||
Net income (loss) | 12,250 | 12,250 | ||
Exercise of stock options | 94 | 94 | ||
Exercise of stock options, shares | 4,252 | |||
Issuance of common stock - vesting of restricted stock units, shares | 12,531 | |||
Share-based employee compensation | 7,974 | 7,974 | ||
Common stock issued in connection with businesscombination | 24,910 | $ 1 | 24,909 | |
Common stock issued in connection with business, shares | 994,028 | |||
Cancellation of unvested restricted stock awards, shares | (2,918) | |||
Ending balance at Sep. 30, 2021 | $ 991,476 | $ 74 | $ 923,511 | $ 67,891 |
Ending balance, shares at Sep. 30, 2021 | 73,548,557 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 13,320 | $ 2,053 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 29,849 | 25,826 | |
Interest | 540 | 456 | |
Deferred income taxes | 226 | 593 | |
Share-based compensation | 48,079 | 40,041 | |
Impairment of right-of-use assets and property, plant, and equipment | 2,381 | ||
Changes in certain assets and liabilities: | |||
Fees and other receivables, net | (594) | 2,853 | |
Receivables from related party | (91) | (42) | |
Prepaid expenses and other current assets | 4,866 | 4,796 | |
Accounts payable, accrued liabilities and other current liabilities | 14 | (13,160) | |
Income tax receivable, net | (2,308) | (11,398) | |
Net cash provided by operating activities | 93,901 | 54,399 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of WBI OBS Financial, LLC, net of cash received | (18,561) | ||
Purchase of Voyant, Inc., net of cash received | (124,236) | ||
Purchase of investments | (2,435) | (1,896) | |
Sale of investments | 173 | 12 | |
Purchase of property and equipment | (652) | (2,288) | |
Purchase of computer software | (26,016) | (18,750) | |
Net cash used in investing activities | (153,166) | (41,483) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from credit facility draw down | 75,000 | ||
Payments on credit facility | 35,000 | ||
Proceeds from exercise of stock options | 94 | 187 | |
Net cash provided by financing activities | 40,094 | 187 | |
Net change in cash, cash equivalents, and restricted cash | (19,171) | 13,103 | |
Cash, cash equivalents, and restricted cash at beginning of period | 81,619 | 105,341 | $ 105,341 |
Cash, cash equivalents, and restricted cash at end of period | 62,448 | 118,444 | $ 81,619 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income taxes paid | 15,977 | 8,807 | |
Interest paid | 1,870 | 3,985 | |
Non-cash operating activities: | |||
Non-cash changes to right-of-use assets | (1,176) | 38,734 | |
Non-cash changes to lease liabilities | (1,176) | $ 40,078 | |
Common stock issued in acquisition of business | $ 24,910 |
Organization and Nature of Busi
Organization and Nature of Business | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Business | Note 1. Organization and Nature of Business These unaudited condensed consolidated financial statements include AssetMark Financial Holdings, Inc. and its subsidiaries, which include AssetMark Financial, Inc. (“AFI”), which is the parent company of AssetMark, Inc., AssetMark Trust Company, AssetMark Brokerage, LLC, AssetMark Retirement Services, Inc., Global Financial Private Capital, Inc., Global Financial Advisory, LLC, Voyant, Inc., WBI OBS Financial, Inc. and OBS Holdings, Inc. (collectively, the “Company”). The Company’s legal entity structure as of September 30, 2021 was as follows: The Company offers a broad array of wealth management solutions to individual investors through financial advisers by providing an open-architecture product platform along with tailored client advice, asset allocation options, practice management, support services and technology to the financial adviser channel. AssetMark Trust Company (“ATC”) is a licensed trust company incorporated under the laws of the State of Arizona on August 24, 1994 and regulated by the Arizona Department of Insurance and Financial Institutions. ATC provides custodial recordkeeping services primarily to investor clients of registered investment advisers (including AMI) located throughout the United States. AssetMark, Inc. (“AMI”) is a registered investment adviser that was incorporated under the laws of the State of California on May 13, 1999. AMI offers a broad array of wealth management solutions to individual investors through financial advisers by providing an open-architecture product platform along with tailored client advice, asset allocation options, practice management, support services and technology solutions to the financial adviser channel. AMI serves as investment adviser to the Company’s proprietary GuideMark Funds, GuidePath Funds and the Savos Dynamic Hedging Fund, each of which is a mutual fund offered to clients of financial advisers. AssetMark Retirement Services, Inc. (“ARS”), formerly known as Aris Corporation of America, was incorporated under the laws of the State of Pennsylvania on April 30, 1974. ARS serves as the record-keeper and third-party administrator for the Aris Retirement product, which are 401(k) or 403(b) investment offerings utilized by small businesses. AssetMark Brokerage, LLC (“AMB”) is a limited-purpose broker-dealer located in Concord, California and was incorporated under the laws of the State of Delaware on September 25, 2013. AMB’s primary function is to distribute the mutual funds of the Company and to sponsor the FINRA licensing of those AssetMark associates who provide distribution support through promotion of the AssetMark programs and strategies that employ the Company’s mutual funds. Voyant, Inc. (“Voyant”), is a SaaS-based financial planning, wellness and client digital engagement solutions company that was originally formed in Texas on December 29, 2005 and was converted to a Delaware corporation on November 21, 2008. Global Financial Private Capital, Inc. (“GFPC”), formerly known as Global Financial Private Capital, LLC and renamed effective July 12, 2019, is a registered investment adviser that was incorporated under the laws of the State of Florida on June 7, 2004. GFPC provides a broad suite of integrated wealth management services for institutional and individual investors. Global Financial Advisory, LLC (“GFA”) is an insurance services company that was incorporated under the laws of the State of Delaware on June 30, 2016. GFA provides insurance services on an intermediary basis and is not a policy writer. WBI OBS Financial, Inc. (“OBL”), formerly known as WBI OBS Financial, LLC and renamed effective June 11, 2020, is a corporation that was incorporated under the laws of the State of Ohio on October 6, 2011. OBL is a holding company whose only assets are the share of common stock of OBS Holdings, Inc. (“OBF”). OBF is a corporation that was incorporated under the laws of the State of Ohio on April 14, 2000. Effective March 31, 2021, AMI filed a certificate of merger in the State of Delaware to merge OBS Financial Services (“OBS”) with and into AMI. OBS provides a broad suite of integrated wealth management services for institutional and individual investors. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | N ote 2. Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of only normal recurring adjustments, considered necessary for fair presentation have been included. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ended December 31, 2021 or any future period. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Risks and Uncertainties The COVID-19 pandemic continues to rapidly evolve and has adversely impacted global commercial activities. Management expects COVID-19 related changes in market and investor behaviors to impact our asset- and spread-based revenue. However, given the uncertainty around the duration and extent of the COVID-19 pandemic, management cannot predict the impact on the Company’s results of operations, financial condition or liquidity in the fourth quarter for 2021 and subsequent periods. Estimates and assumptions about future events and their effects on the Company cannot be determined with certainty and therefore require the exercise of judgment. The Company is not aware of any specific events or circumstances that would require the Company to update its estimates, assumptions or judgments or revise the carrying value of its assets or liabilities. The Company will update the estimates and assumptions underlying the consolidated financial statements in future periods as events and circumstances develop. Foreign Currency Policy The Company is 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 comprehensive operations. Geographic Sources of Revenue Revenues attributable to customers outside of the United States totaled $3.5 million in the three and nine months ended September 30, 2021. Revenue Recognition – Subscription-based Revenue Subscription-based revenue represents revenue recognized from subscription fee arrangements in connection with financial planning and wealth management software solutions for use as a hosted application. Subscription fees from these applications are recognized over time on a ratable basis over the customer agreement term beginning on the date the solution is made available to the customer. Recent Accounting Pronouncements – Adopted In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and improves consistent application of U.S. GAAP by clarifying and amending existing guidance. The Company adopted the new standard on January 1, 2021, and it did not have a significant impact on the Company’s consolidated financial statements and related disclosures. Recent Accounting Pronouncements – Not Yet Adopted In April 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides companies with optional guidance to ease the accounting impact of contract modification in connection with changes in reference rates. The ASU is available for adoption through December 31, 2022. The Company is evaluating the impact that ASU 2020-04 will have on its consolidated financial statements. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 3. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: September 30, 2021 December 31, 2020 Prepaid expenses $ 5,815 $ 8,182 Right-of-use leases 4,135 4,117 Other 1,355 1,338 Total $ 11,305 $ 13,637 |
Acquisition of Voyant
Acquisition of Voyant | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisition of Voyant | Note 4 . Acquisition of Voyant On July 1, 2021, the Company acquired all of the issued and outstanding equity interests of Voyant, Inc. (“Voyant”) through a merger of Voyant with and into a wholly owned subsidiary of AFI. Voyant provides software as a service (“SaaS”) based financial planning and wealth management software solutions to advisors across financial institutions and small advisor firms in the United Kingdom, Canada, Australia, and the United States. The Company acquired Voyant to add complementary financial planning tools to its existing suite of offerings and to strengthen Voyant’s growth prospects by leveraging the Company’s U.S. relationships. The Company is continuing to integrate the technology and operations of Voyant into the its wealth management channel. The Company funded the acquisition with a combination of cash on hand and borrowings under its 2020 Revolving Credit Facility. The preliminary estimated consideration transferred in the acquisition was $149,146, net of cash received. The estimated fair values of working capital balances, identifiable intangible assets and goodwill are provisional and are based on the information that was available as of the acquisition date. The estimated fair values of these provisional items are based on certain valuation and other studies that remain in progress and are not yet determinable. The Company believes the preliminary information provides a reasonable basis for estimating the fair values of these amounts, but is waiting for additional information necessary to finalize those fair values. Therefore, provisional measurements of fair values reflected are subject to change and such changes could be significant. The Company expects to finalize the valuation of tangible assets and liabilities and identifiable intangible assets and goodwill and complete the acquisition accounting as soon as practicable but no later than July 1, 2022. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Cash and cash equivalents $ 8,027 Intangible assets 56,100 Goodwill 101,909 Other assets 2,896 Total assets acquired 168,932 Deferred income tax liabilities (9,749 ) Other liabilities (2,010 ) Total liabilities assumed (11,759 ) Total net assets acquired $ 157,173 The goodwill arising from the acquisition represents the expected synergistic benefits of the transaction, primarily related to lower future operating expenses and the knowledge and experience of the existing workforce. The goodwill is not deductible for income tax purposes. A summary of preliminary Amount Estimated Useful Life in Years Technology $ 23,100 9 Enterprise distribution channel customer relationships 22,600 Indefinite Non-enterprise distribution channel customer relationships 6,800 15 Trade name 3,200 11 Non-compete agreements 400 3 Total intangible assets acquired $ 56,100 The results of Voyant’s operations were included in the consolidated statements of operations beginning July 2, 2021 and were not considered material to the Company’s results of operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 5 . Goodwill and Other Intangible Assets Goodwill The Company’s goodwill balance was $440,757 and $338,848 as of September 30, 2021 and December 31, 2020, respectively. The Company, which has one reporting unit, performed an annual test for goodwill impairment in December for the years ended December 31, 2020 and 2019 and determined that goodwill was not impaired. The Company performed a qualitative test for goodwill impairment related to the COVID-19 pandemic and determined that an additional quantitative test was not necessary. Goodwill was not impaired as of September 30, 2021. Other Intangible Assets Information regarding the Company’s intangible assets is as follows: September 30, 2021 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Voyant enterprise distribution channel customer relationships 22,600 — 22,600 Definite-lived intangible assets: Trade names 45,830 (11,267 ) 34,563 15 years Broker-dealer license 11,550 (2,839 ) 8,711 15 years ATC regulatory status 23,300 (5,728 ) 17,572 15 years Voyant non-enterprise distribution channel customer relationships 6,800 (113 ) 6,687 15 years GFPC adviser relationships 14,250 (2,502 ) 11,748 12 years OBS adviser and trust relationships 9,500 (1,190 ) 8,310 11 years Voyant trade name 3,200 (73 ) 3,127 11 years Voyant technology 23,100 (642 ) 22,458 9 years Voyant non-compete agreement 400 (33 ) 367 3 years Total $ 731,010 $ (24,387 ) $ 706,623 December 31, 2020 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Definite-lived intangible assets: Trade names 45,830 (9,548 ) 36,282 16 years Broker-dealer license 11,550 (2,406 ) 9,144 16 years ATC regulatory status 23,300 (4,854 ) 18,446 16 years GFPC adviser relationships 14,250 (1,739 ) 12,511 12 years OBS adviser and trust relationships 9,500 (627 ) 8,873 12 years Total $ 674,910 $ (19,174 ) $ 655,736 The weighted average estimated remaining useful life was 13.0 The expected future amortization expense for definite-lived intangible assets as of September 30, 2021 Remainder of 2021 $ 2,312 2022 9,248 2023 9,248 2024 9,181 2025 9,114 2026 and thereafter 74,440 Total $ 113,543 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities and Other Current Liabilities | Note 6 . Accrued Liabilities and Other Current Liabilities The following table shows the breakdown of accrued liabilities and other current liabilities: September 30, 2021 December 31, 2020 Accrued bonus $ 15,784 $ 15,336 Compensation and benefits payable 4,179 10,423 Current portion of operating lease liability 4,128 4,095 Asset-based payables 3,222 1,339 Other accrued expenses 20,411 12,501 Total $ 47,724 $ 43,694 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Note 7. Other Long-Term Liabilities Other long-term liabilities consisted of the following: September 30, 2021 December 31, 2020 Deferred compensation plan liability $ 13,369 $ 10,087 Purchase commitments related to acquisition of GFPC 2,214 3,910 Contractor liability 1,607 2,305 Total $ 17,190 $ 16,302 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value in the condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020, based on the three-tier fair value hierarchy: September 30, 2021 Fair Value Level I Level II Level III Assets: Equity investment and alternative investment securities funds (1) $ 503 $ 503 $ — $ — Assets to fund deferred compensation liability (2) 13,369 13,369 — — Total assets $ 13,872 $ 13,872 $ — $ — Liabilities: Deferred compensation liability (3) $ 13,369 $ 13,369 $ — $ — Total liabilities $ 13,369 $ 13,369 $ — $ — December 31, 2020 Fair Value Level I Level II Level III Assets: Equity investment and alternative investment securities funds (1) $ 490 $ 490 $ — $ — Assets to fund deferred compensation liability (2) 10,087 10,087 — — Total assets $ 10,577 $ 10,577 $ — $ — Liabilities: Deferred compensation liability (3) $ 10,087 $ 10,087 $ — $ — Total liabilities $ 10,087 $ 10,087 $ — $ — (1) The fair value of the Company’s rabbi trust, which comprises equity investment and alternative investment securities funds, is based on the month-end quoted market prices for the net asset value of the various constituent funds and securities, which mature on a daily basis. (2) The deferred compensation asset fair value is based on the month-end quoted market prices for the net asset value of the various investment funds. The Company recognized unrealized gains (loss) of $(130) , (3) The deferred compensation liability is included in other non-current liabilities in the consolidated balance sheets and its fair market value is based on the month-end market prices for the net asset value of the various funds in the Company’s Rabbi Trust which the participants have selected. The Company recognized other expenses (income) of $(130), $990 and $900 related to this liability within the statements of comprehensive income for the three and nine months ended September 30, 2021, and for the year ended December 31, 2020, respectively. |
Asset-Based Expenses
Asset-Based Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Operating Costs And Expenses [Abstract] | |
Asset-Based Expenses | Note 9 . Asset-Based Expenses Asset-based expenses incurred by the Company relating to the generation of asset-based revenues are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Strategist and manager fees $ 33,778 $ 27,269 $ 93,767 $ 79,454 Premier broker-dealer fees 1,930 2,607 7,530 8,356 Custody fees 1,588 1,533 5,022 4,648 Fund advisory fees 1,125 1,246 3,283 3,547 Marketing allowance 276 774 1,005 2,522 Other — 2 2 3 Total $ 38,697 $ 33,431 $ 110,609 $ 98,530 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 10 . Debt On November 14, 2018, the Company executed a Credit Agreement (the “Prior Credit Agreement”) with Credit Suisse AG for a $250,000 term loan (the “Term Loan”) and a revolving line of credit (the “Revolver”) that permitted the Company to borrow up to $20,000 (the Term Loan and the Revolver, together the “Credit Facility”). The Term Loan was set to mature on November 14, 2025 and the Revolver was set to mature on November 14, 2023. On July 26, 2019, the Company made a partial repayment of $125 million of the Company’s outstanding indebtedness under the Term Loan and repaid the remaining outstanding amount on December 30, 2020 through the execution of the New Credit Agreement (as defined below). On December 30, 2020, the Company entered into a Credit Agreement (the “New Credit Agreement”) with the Bank of Montreal for a new senior secured credit facility in an aggregate principal amount of $250,000, consisting of a revolving credit facility with commitments in an aggregate principal amount of $250,000 (the “2020 Revolving Credit Facility” and the loans thereunder, the “New Revolving Loans”), with an accordion option of up to $25,000. The Company drew down $75,000 under the 2020 Revolving Credit Facility on December 30, 2020, the proceeds of which, together with cash on hand, were used to repay in full the Company’s obligations under the Credit Facility. In connection with such repayment in full, the Prior Credit Agreement, the commitments thereunder and the guarantees and security interests with respect thereto were terminated and released, as applicable. The remaining portion of the 2020 Revolving Credit Facility is available to finance the working capital needs and for other general corporate purposes of the Company (including acquisitions, investments, dividends and share repurchases permitted under the New Credit Agreement). On June 22, 2021, the Company drew down $ 75,000 under the 2020 Revolving Credit Facility to partially finance the acquisition of Voyant . During the three months ended September 30, 2021, the Company paid down a total of $ 35,000 . The New Revolving Loans bear interest at a rate per annum equal to, at the Company’s option, either (i) LIBOR plus a margin based on the Company’s Total Leverage Ratio (as defined in the New Credit Agreement) or (ii) the Base Rate (as defined in the New Credit Agreement) plus a margin based on the Company’s Total Leverage Ratio. The margin will range between 1.00% and 2.625% for base rate loans and between 2.00% and 3.625% for LIBOR loans. The Company will pay a commitment fee based on the average daily unused portion of the commitments under the 2020 Revolving Credit Facility, a letter of credit fee equal to the margin then in effect with respect to the LIBOR loans under the 2020 Revolving Credit Facility, a fronting fee and any customary documentary and processing charges for any letter of credit issued under the New Credit Agreement. The 2020 Revolving Credit Facility is not subject to amortization and will mature on December 30, 2024. Interest expense was $1,061 and $1,344 for the three months ended September 30, 2021 and 2020, respectively, and $2,606 and $4,445 for the nine months ended September 30, 2021 and 2020, respectively. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 11 . Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in other current assets, operating lease right-of-use (“ROU”) assets, accrued liabilities and other current liabilities, and long-term portion of operating lease liabilities on the Company’s condensed consolidated balance sheets. The Company does not have material finance leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligations to make payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the remaining lease term. The Company uses an estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. 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 to use the practical expedient to exclude the non-lease component from the lease for all asset classes. The majority of the Company’s lease agreements are facility leases. Operating lease costs of $1,311 and $1,465, and related variable lease costs of $187 and $197, were recorded in general and operating expenses for the three months ended September 30, 2021 and 2020, respectively. Operating lease costs of $3,855 and $4,515, and related variable lease costs of $533 and $544, were recorded in general and operating expenses for the nine months ended September 30, 2021 and 2020, respectively. The Company’s leases had a weighted-average lease term of 6.5 years and used a weighted-average discount rate of 3.62% as of September 30, 2021. The Company paid $1,396 and $914 for amounts included in the measurement of lease liabilities for the three months ended September 30, 2021 and 2020, respectively, and $3,996 and $2,236 for the nine months ended September 30, 2021 and 2020, respectively. The Company received a cash allowance of $1,799 from lessors for leasehold improvements for the nine months ended September 30, 2021 which is included within the operating activities section of the Statement of Cash Flows under accounts payable, accrued liabilities and other current liabilities. Future minimum lease payments under non-cancellable leases, as of September 30, 2021, were as follows: Remainder of 2021 $ 1,418 2022 5,736 2023 5,693 2024 5,982 2025 5,822 2026 and thereafter 13,376 Total future minimum lease payments 38,027 Less: imputed interest (4,611 ) Total operating lease liabilities $ 33,416 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 12. Share-Based Compensation On July 3, 2019, the Company’s Board of Directors adopted, and the Company’s sole stockholder approved, the 2019 Equity Incentive Plan (the “2019 Equity Incentive Plan”), which became effective on July 17, 2019, the date of effectiveness of the Company’s IPO (as defined below) registration statement on Form S-1. As of September 30, 2021, 2,005,589 shares were available for issuance under the 2019 Equity Incentive Plan. Restricted Stock Awards Prior to the liquidation and dissolution of AssetMark Holdings, our former parent company, and the IPO, all officers and certain sales employees of AssetMark Holdings held Class C Common Units of AssetMark Holdings, which were intended to be treated as profits interests. Immediately following the pricing of the IPO, AssetMark Holdings liquidated and dissolved and distributed shares of the Company’s common stock to its members, including an aggregate number of restricted stock awards (“RSAs”) equal to 6,309,049 shares of the Company’s common stock to the holders of the Class C Common Units of AssetMark Holdings. These RSAs are subject to the same vesting schedule as the Class C Common Units of AssetMark Holdings, with 50% of the RSAs scheduled to vest in three (3) equal installments on the third, fourth and fifth anniversaries of November 18, 2016, subject to the recipient’s continued employment through the vesting date, and 50% subject to the recipient’s continued employment through February 1, 2021 and the satisfaction of a performance-based vesting condition. The performance condition for these RSAs was deemed to have been satisfied in connection with the IPO. In the event that the vesting conditions are not satisfied for any portion of an award, the shares covered by such RSAs will transfer automatically to the Company. Zero and 3,551,213 RSAs vested during the three and nine months ended September 30, 2021, respectively. Share-based compensation expense related to the RSAs was $4,503 and $11,047 for the three months ended September 30, 2021 and 2020, respectively, and $39,473 and $36,080 for the nine months ended September 30, 2021 and 2020, respectively. Stock Options In connection with the IPO, the Company issued options to certain officers to acquire an aggregate of 918,981 shares of the Company’s common stock outside of the 2019 Equity Incentive Plan, with an exercise price of $22 dollars per share. Each of these options is scheduled to vest and become exercisable in substantially equal installments on each of the first three anniversaries of July 18, 2019, subject to the recipient’s continued employment through the vesting date and have a ten-year Share-based compensation expense related to the stock options was $394 and $585 for the three months ended September 30, 2021 and 2020, respectively, and $2,024 and $1,752 for the nine months ended September 30, 2021 and 2020, respectively. Restricted Stock Units Also in connection with the IPO, the Company issued restricted stock units (“RSUs”) to certain officers and sales employees covering an aggregate of 85,737 shares of the Company’s common stock under the 2019 Equity Incentive Plan. Each of these RSUs is scheduled to vest in substantially equal installments on each of the first three anniversaries of July 18, 2019. During 2020, the Company issued 310,225 RSUs to all officers, certain employees and independent directors of the board. During the first nine months of 2021, the Company issued 815,099 RSUs to all officers, certain employees and independent directors of the board. Most of these RSUs are scheduled to vest in substantially equal installments on each of the first four anniversaries of the date of grant. Share-based compensation expense related to the RSUs was $2,024 and $705 for the three months ended September 30, 2021 and 2020, respectively, and $4,128 and $1,489 for the nine months ended September 30, 2021 and 2020, respectively. Stock Appreciation Rights During 2020, the Company issued stock appreciation rights (“SARs”) with an aggregate grant date fair value of $9,239 to certain officers with respect to 831,902 shares of the Company’s common stock under the 2019 Equity Incentive Plan. Each SAR has a strike price equal to the fair market value of the Company’s common stock on the date of grant and is scheduled to vest and become exercisable in substantially equal installments on each of the first four anniversaries of the date of grant. Upon exercise, each of these SARs will be settled in shares of the Company’s common stock with a value equal to the excess, if any, of the fair market value of the Company’s common stock measured on the exercise date over the strike price. During the first nine months of 2021, the Company issued 894,411 SARs to certain officers. Share-based compensation expense related to SARs was $1,053 and $582 for the three months ended September 30, 2021 and 2020, respectively, and $2,454 and $720 for the nine months ended September 30, 2021 and 2020, respectively . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 . Commitments and Contingencies Litigation The Company faces the risk of litigation and regulatory investigations and actions in the ordinary course of operating the Company’s businesses, including the risk of class action lawsuits. The Company’s pending legal and regulatory actions include proceedings specific to the Company and others generally applicable to business practices in the industries in which the Company operates. The Company is also subject to litigation arising out of the Company’s general business activities such as the Company’s contractual and employment relationships. In addition, the Company is subject to various regulatory inquiries, such as information requests, subpoenas, books and record examinations and market conduct and financial examinations from state, federal and other authorities. Plaintiffs in class action and other lawsuits against the Company may seek very large or indeterminate amounts which may remain unknown for substantial periods of time. A substantial legal liability or a significant regulatory action against the Company could have an adverse effect on the Company’s business, financial condition and results of operations. Moreover, even if the Company ultimately prevails in the litigation, regulatory action or investigation, the Company could suffer significant reputational harm, which could have an adverse effect on the Company’s business, financial condition or results of operations. In the opinion of management, after discussions with legal counsel, the ultimate resolution of the pending legal proceedings will not have a material effect on the consolidated financial condition, results of operations or cash flows of the Company. Guarantee The Company and its subsidiaries have certain contingent liabilities with respect to a guarantee agreement with a third party. Under the terms of the guarantee arrangement, the Company would generally be required to perform should the affiliated company third party fail to fulfill its obligations under the arrangements. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes The Company’s effective income tax rate differs from the federal corporate tax rate of 21.0%, primarily as a result of state taxes and the income tax effects of the Company’s share-based compensation. The Company’s effective tax rate was 43.6% and (869.2)% for the three months ended September 30, 2021 and 2020, respectively, and 46.2% and 362.9% for the nine months ended September 30, 2021 and 2020, respectively. These changes were primarily due to changes in the relative amounts of the Company’s share-based compensation and income before taxes On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law. The provisions of the CARES Act affecting corporations include, but are not limited to, elimination of certain limitations for utilizing net operating losses, relaxation of limitations on interest deductions, the expensing of costs of acquired qualified improvement property, employee retention tax credits and deferral of payroll taxes. There was no significant impact of this new law on the Company’s financial condition and results of operations for the three and nine months ended September 30, 2021. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note As of September 30, 2021 and December 31, 2020, the Company had a receivable due from Huatai Securities Co., Ltd. (“HTSC”) of $234 and $143, respectively, which represents the cash paid by the Company with respect to certain professional services incurred on behalf of HTSC related to IFRS audit fees required for HTSC’s consolidated audit. |
Net Income Per Share Attributab
Net Income Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Attributable to Common Stockholders | Note 16. Net Income Per Share Attributable to Common Stockholders Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted net income per share, the basic weighted average number of shares of common stock outstanding is increased by the dilutive effect (if any) of stock options, restricted stock awards, restricted stock units and stock appreciation rights. The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to common stockholders: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income attributable to common stockholders $ 12,250 $ 8,597 $ 13,320 $ 2,053 Weighted average number of shares of common stock used in computing net income per share attributable to common stockholders, basic 72,921,794 67,282,040 71,764,582 67,211,341 Net income per share attributable to common stockholders, basic $ 0.17 $ 0.13 $ 0.19 $ 0.03 Weighted average shares used in computing net income per share attributable to common stockholders, basic 72,921,794 67,282,040 71,764,582 67,211,341 Effect of dilutive shares: Unvested RSAs 414,753 2,772,376 — 2,330,976 Unvested RSUs 230,230 14,274 175,816 153,500 Diluted number of weighted-average shares outstanding 73,566,777 70,068,690 71,940,398 69,695,817 Net income per share attributable to common stockholders, diluted $ 0.17 $ 0.12 $ 0.19 $ 0.03 The following securities were not included in the computation of diluted shares because such securities did not have a dilutive effect. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Stock options 889,215 900,271 889,215 900,271 SARs 1,702,546 831,902 1,702,546 831,902 RSUs 192,733 314,957 207,187 18,073 RSAs — — 601,594 — Total 2,784,494 2,047,130 3,400,542 1,750,246 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Risks and Uncertainties | Risks and Uncertainties The COVID-19 pandemic continues to rapidly evolve and has adversely impacted global commercial activities. Management expects COVID-19 related changes in market and investor behaviors to impact our asset- and spread-based revenue. However, given the uncertainty around the duration and extent of the COVID-19 pandemic, management cannot predict the impact on the Company’s results of operations, financial condition or liquidity in the fourth quarter for 2021 and subsequent periods. Estimates and assumptions about future events and their effects on the Company cannot be determined with certainty and therefore require the exercise of judgment. The Company is not aware of any specific events or circumstances that would require the Company to update its estimates, assumptions or judgments or revise the carrying value of its assets or liabilities. The Company will update the estimates and assumptions underlying the consolidated financial statements in future periods as events and circumstances develop. |
Foreign Currency Policy | Foreign Currency Policy The Company is 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 comprehensive operations. |
Geographic Sources of Revenue | Geographic Sources of Revenue Revenues attributable to customers outside of the United States totaled $3.5 million in the three and nine months ended September 30, 2021. |
Revenue Recognition – Subscription-based Revenue | Revenue Recognition – Subscription-based Revenue Subscription-based revenue represents revenue recognized from subscription fee arrangements in connection with financial planning and wealth management software solutions for use as a hosted application. Subscription fees from these applications are recognized over time on a ratable basis over the customer agreement term beginning on the date the solution is made available to the customer. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements – Adopted In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and improves consistent application of U.S. GAAP by clarifying and amending existing guidance. The Company adopted the new standard on January 1, 2021, and it did not have a significant impact on the Company’s consolidated financial statements and related disclosures. Recent Accounting Pronouncements – Not Yet Adopted In April 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides companies with optional guidance to ease the accounting impact of contract modification in connection with changes in reference rates. The ASU is available for adoption through December 31, 2022. The Company is evaluating the impact that ASU 2020-04 will have on its consolidated financial statements. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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: September 30, 2021 December 31, 2020 Prepaid expenses $ 5,815 $ 8,182 Right-of-use leases 4,135 4,117 Other 1,355 1,338 Total $ 11,305 $ 13,637 |
Acquisition of Voyant (Table)
Acquisition of Voyant (Table) - Voyant [Member] | 9 Months Ended |
Sep. 30, 2021 | |
Summary of estimated fair values of assets acquired and liabilities assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Cash and cash equivalents $ 8,027 Intangible assets 56,100 Goodwill 101,909 Other assets 2,896 Total assets acquired 168,932 Deferred income tax liabilities (9,749 ) Other liabilities (2,010 ) Total liabilities assumed (11,759 ) Total net assets acquired $ 157,173 |
Summary of Intangible Assets Acquired | A summary of preliminary Amount Estimated Useful Life in Years Technology $ 23,100 9 Enterprise distribution channel customer relationships 22,600 Indefinite Non-enterprise distribution channel customer relationships 6,800 15 Trade name 3,200 11 Non-compete agreements 400 3 Total intangible assets acquired $ 56,100 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Other Intangible Assets | Information regarding the Company’s intangible assets is as follows: September 30, 2021 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Voyant enterprise distribution channel customer relationships 22,600 — 22,600 Definite-lived intangible assets: Trade names 45,830 (11,267 ) 34,563 15 years Broker-dealer license 11,550 (2,839 ) 8,711 15 years ATC regulatory status 23,300 (5,728 ) 17,572 15 years Voyant non-enterprise distribution channel customer relationships 6,800 (113 ) 6,687 15 years GFPC adviser relationships 14,250 (2,502 ) 11,748 12 years OBS adviser and trust relationships 9,500 (1,190 ) 8,310 11 years Voyant trade name 3,200 (73 ) 3,127 11 years Voyant technology 23,100 (642 ) 22,458 9 years Voyant non-compete agreement 400 (33 ) 367 3 years Total $ 731,010 $ (24,387 ) $ 706,623 December 31, 2020 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Definite-lived intangible assets: Trade names 45,830 (9,548 ) 36,282 16 years Broker-dealer license 11,550 (2,406 ) 9,144 16 years ATC regulatory status 23,300 (4,854 ) 18,446 16 years GFPC adviser relationships 14,250 (1,739 ) 12,511 12 years OBS adviser and trust relationships 9,500 (627 ) 8,873 12 years Total $ 674,910 $ (19,174 ) $ 655,736 |
Summary of Expected Future Amortization Expense for Intangible Assets | The expected future amortization expense for definite-lived intangible assets as of September 30, 2021 Remainder of 2021 $ 2,312 2022 9,248 2023 9,248 2024 9,181 2025 9,114 2026 and thereafter 74,440 Total $ 113,543 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | The following table shows the breakdown of accrued liabilities and other current liabilities: September 30, 2021 December 31, 2020 Accrued bonus $ 15,784 $ 15,336 Compensation and benefits payable 4,179 10,423 Current portion of operating lease liability 4,128 4,095 Asset-based payables 3,222 1,339 Other accrued expenses 20,411 12,501 Total $ 47,724 $ 43,694 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following: September 30, 2021 December 31, 2020 Deferred compensation plan liability $ 13,369 $ 10,087 Purchase commitments related to acquisition of GFPC 2,214 3,910 Contractor liability 1,607 2,305 Total $ 17,190 $ 16,302 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 in the condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020, based on the three-tier fair value hierarchy: September 30, 2021 Fair Value Level I Level II Level III Assets: Equity investment and alternative investment securities funds (1) $ 503 $ 503 $ — $ — Assets to fund deferred compensation liability (2) 13,369 13,369 — — Total assets $ 13,872 $ 13,872 $ — $ — Liabilities: Deferred compensation liability (3) $ 13,369 $ 13,369 $ — $ — Total liabilities $ 13,369 $ 13,369 $ — $ — December 31, 2020 Fair Value Level I Level II Level III Assets: Equity investment and alternative investment securities funds (1) $ 490 $ 490 $ — $ — Assets to fund deferred compensation liability (2) 10,087 10,087 — — Total assets $ 10,577 $ 10,577 $ — $ — Liabilities: Deferred compensation liability (3) $ 10,087 $ 10,087 $ — $ — Total liabilities $ 10,087 $ 10,087 $ — $ — (1) The fair value of the Company’s rabbi trust, which comprises equity investment and alternative investment securities funds, is based on the month-end quoted market prices for the net asset value of the various constituent funds and securities, which mature on a daily basis. (2) The deferred compensation asset fair value is based on the month-end quoted market prices for the net asset value of the various investment funds. The Company recognized unrealized gains (loss) of $(130) , (3) The deferred compensation liability is included in other non-current liabilities in the consolidated balance sheets and its fair market value is based on the month-end market prices for the net asset value of the various funds in the Company’s Rabbi Trust which the participants have selected. The Company recognized other expenses (income) of $(130), $990 and $900 related to this liability within the statements of comprehensive income for the three and nine months ended September 30, 2021, and for the year ended December 31, 2020, respectively. |
Asset-Based Expenses (Tables)
Asset-Based Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Operating Costs And Expenses [Abstract] | |
Schedule of Asset-Based Expenses | Asset-based expenses incurred by the Company relating to the generation of asset-based revenues are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Strategist and manager fees $ 33,778 $ 27,269 $ 93,767 $ 79,454 Premier broker-dealer fees 1,930 2,607 7,530 8,356 Custody fees 1,588 1,533 5,022 4,648 Fund advisory fees 1,125 1,246 3,283 3,547 Marketing allowance 276 774 1,005 2,522 Other — 2 2 3 Total $ 38,697 $ 33,431 $ 110,609 $ 98,530 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments Under Non-cancellable Leases | Future minimum lease payments under non-cancellable leases, as of September 30, 2021, were as follows: Remainder of 2021 $ 1,418 2022 5,736 2023 5,693 2024 5,982 2025 5,822 2026 and thereafter 13,376 Total future minimum lease payments 38,027 Less: imputed interest (4,611 ) Total operating lease liabilities $ 33,416 |
Net Income Per Share Attribut_2
Net Income Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerators and Denominators Used in Computing Basic and Diluted Net Income (Loss) Per Share | The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to common stockholders: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income attributable to common stockholders $ 12,250 $ 8,597 $ 13,320 $ 2,053 Weighted average number of shares of common stock used in computing net income per share attributable to common stockholders, basic 72,921,794 67,282,040 71,764,582 67,211,341 Net income per share attributable to common stockholders, basic $ 0.17 $ 0.13 $ 0.19 $ 0.03 Weighted average shares used in computing net income per share attributable to common stockholders, basic 72,921,794 67,282,040 71,764,582 67,211,341 Effect of dilutive shares: Unvested RSAs 414,753 2,772,376 — 2,330,976 Unvested RSUs 230,230 14,274 175,816 153,500 Diluted number of weighted-average shares outstanding 73,566,777 70,068,690 71,940,398 69,695,817 Net income per share attributable to common stockholders, diluted $ 0.17 $ 0.12 $ 0.19 $ 0.03 |
Schedule of Securities Were Not Included in Computation of Diluted Shares Outstanding | The following securities were not included in the computation of diluted shares because such securities did not have a dilutive effect. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Stock options 889,215 900,271 889,215 900,271 SARs 1,702,546 831,902 1,702,546 831,902 RSUs 192,733 314,957 207,187 18,073 RSAs — — 601,594 — Total 2,784,494 2,047,130 3,400,542 1,750,246 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Outside United States | ||
Product Information [Line Items] | ||
Revenues | $ 3.5 | $ 3.5 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 5,815 | $ 8,182 |
Right-of-use leases | 4,135 | 4,117 |
Other | 1,355 | 1,338 |
Total | $ 11,305 | $ 13,637 |
Acquisition of Voyant Inc - Add
Acquisition of Voyant Inc - Additional Information (Details) - Voyant [Member] - USD ($) $ in Thousands | Jul. 01, 2021 | Sep. 30, 2021 |
Business Acquisition [Line Items] | ||
Acquisition agreement date | Jul. 1, 2021 | |
Cash received,Net | $ 149,146 |
Acquisition of Voyant Inc - Sum
Acquisition of Voyant Inc - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jul. 01, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 440,757 | $ 338,848 | |
Voyant [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 8,027 | ||
Intangible assets | 56,100 | ||
Goodwill | 101,909 | ||
Other assets | 2,896 | ||
Total assets acquired | 168,932 | ||
Deferred income tax liabilities | (9,749) | ||
Other liabilities | (2,010) | ||
Total liabilities assumed | (11,759) | ||
Total net assets acquired | $ 157,173 |
Acquisition of Voyant Inc - S_2
Acquisition of Voyant Inc - Summary of Intangible Assets Acquired (Details) - Voyant [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Business Acquisition [Line Items] | |
Amount | $ 56,100 |
Technology | |
Business Acquisition [Line Items] | |
Amount | $ 23,100 |
Estimated Useful Life in Years | 9 years |
Enterprise Distribution Channel Customer Relationships | |
Business Acquisition [Line Items] | |
Amount | $ 22,600 |
Estimated Useful Life in Years | 0 years |
Non-enterprise Distribution Channel Customer Relationships | |
Business Acquisition [Line Items] | |
Amount | $ 6,800 |
Estimated Useful Life in Years | 15 years |
Trade Names [Member] | |
Business Acquisition [Line Items] | |
Amount | $ 3,200 |
Estimated Useful Life in Years | 11 years |
Noncompete Agreements | |
Business Acquisition [Line Items] | |
Amount | $ 400 |
Estimated Useful Life in Years | 3 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)ReportingUnit | Dec. 31, 2019ReportingUnit | |
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 440,757,000 | $ 440,757,000 | $ 338,848,000 | |||
Number of reporting units | ReportingUnit | 1 | 1 | ||||
Goodwill impairment | 0 | |||||
Amortization of Intangible Assets | $ 2,312,000 | $ 1,451,000 | $ 5,213,000 | $ 4,227,000 | ||
Trade Names [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Weighted average estimated remaining useful life | 13 years | |||||
Broker-Dealer License | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Weighted average estimated remaining useful life | 13 years | |||||
ATC Regulatory Status | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Weighted average estimated remaining useful life | 13 years | |||||
GFPC Adviser Relationships | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Weighted average estimated remaining useful life | 13 years | |||||
OBS Adviser and Trust Relationships | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Weighted average estimated remaining useful life | 13 years | |||||
Voyant Intangible Assets | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Weighted average estimated remaining useful life | 13 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated amortization | $ (24,387) | $ (19,174) |
Definite-lived intangible assets, Net carrying amount | 113,543 | |
Intangible assets, Gross carrying amount | 731,010 | 674,910 |
Intangible assets, Net carrying amount | 706,623 | 655,736 |
Broker-Dealer Relationships | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net carrying amount | 570,480 | 570,480 |
Voyant Enterprise Distribution Channel Customer Relationships | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net carrying amount | 22,600 | |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 45,830 | 45,830 |
Definite-lived intangible assets, Accumulated amortization | (11,267) | (9,548) |
Definite-lived intangible assets, Net carrying amount | $ 34,563 | $ 36,282 |
Definite-lived intangible assets, Estimated remaining useful life | 15 years | 16 years |
Broker-Dealer License | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 11,550 | $ 11,550 |
Definite-lived intangible assets, Accumulated amortization | (2,839) | (2,406) |
Definite-lived intangible assets, Net carrying amount | $ 8,711 | $ 9,144 |
Definite-lived intangible assets, Estimated remaining useful life | 15 years | 16 years |
ATC Regulatory Status | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 23,300 | $ 23,300 |
Definite-lived intangible assets, Accumulated amortization | (5,728) | (4,854) |
Definite-lived intangible assets, Net carrying amount | $ 17,572 | $ 18,446 |
Definite-lived intangible assets, Estimated remaining useful life | 15 years | 16 years |
GFPC Adviser Relationships | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 14,250 | $ 14,250 |
Definite-lived intangible assets, Accumulated amortization | (2,502) | (1,739) |
Definite-lived intangible assets, Net carrying amount | $ 11,748 | $ 12,511 |
Definite-lived intangible assets, Estimated remaining useful life | 12 years | 12 years |
OBS Adviser and Trust Relationships | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 9,500 | $ 9,500 |
Definite-lived intangible assets, Accumulated amortization | (1,190) | (627) |
Definite-lived intangible assets, Net carrying amount | $ 8,310 | $ 8,873 |
Definite-lived intangible assets, Estimated remaining useful life | 11 years | 12 years |
Voyant Technology | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 23,100 | |
Definite-lived intangible assets, Accumulated amortization | (642) | |
Definite-lived intangible assets, Net carrying amount | $ 22,458 | |
Definite-lived intangible assets, Estimated remaining useful life | 9 years | |
Voyant Non-enterprise Distribution Channel Customer Relationships | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 6,800 | |
Definite-lived intangible assets, Accumulated amortization | (113) | |
Definite-lived intangible assets, Net carrying amount | $ 6,687 | |
Definite-lived intangible assets, Estimated remaining useful life | 15 years | |
Voyant Trade Name | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 3,200 | |
Definite-lived intangible assets, Accumulated amortization | (73) | |
Definite-lived intangible assets, Net carrying amount | $ 3,127 | |
Definite-lived intangible assets, Estimated remaining useful life | 11 years | |
Voyant Non-compete Agreement | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 400 | |
Definite-lived intangible assets, Accumulated amortization | (33) | |
Definite-lived intangible assets, Net carrying amount | $ 367 | |
Definite-lived intangible assets, Estimated remaining useful life | 3 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Expected Future Amortization Expense for Intangible Assets (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2021 | $ 2,312 |
2022 | 9,248 |
2023 | 9,248 |
2024 | 9,181 |
2025 | 9,114 |
2026 and thereafter | 74,440 |
Definite-lived intangible assets, Net carrying amount | $ 113,543 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued bonus | $ 15,784 | $ 15,336 |
Compensation and benefits payable | 4,179 | 10,423 |
Current portion of operating lease liability | 4,128 | 4,095 |
Asset-based payables | 3,222 | 1,339 |
Other accrued expenses | 20,411 | 12,501 |
Total | $ 47,724 | $ 43,694 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation plan liability | $ 13,369 | $ 10,087 |
Purchase commitments related to acquisition of GFPC | 2,214 | 3,910 |
Contractor liability | 1,607 | 2,305 |
Total | $ 17,190 | $ 16,302 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | ||
Assets: | ||||
Total assets | $ 13,872 | $ 10,577 | ||
Liabilities: | ||||
Total liabilities | 13,369 | 10,087 | [1] | |
Level I | ||||
Assets: | ||||
Total assets | 13,872 | 10,577 | ||
Liabilities: | ||||
Total liabilities | 13,369 | 10,087 | [1] | |
Equity And Alternative Investments Securities Fund | ||||
Assets: | ||||
Total assets | [2] | 503 | 490 | |
Equity And Alternative Investments Securities Fund | Level I | ||||
Assets: | ||||
Total assets | [2] | 503 | 490 | |
Assets To Fund Deferred Compensation Liability | ||||
Assets: | ||||
Total assets | [3] | 13,369 | 10,087 | |
Assets To Fund Deferred Compensation Liability | Level I | ||||
Assets: | ||||
Total assets | [3] | 13,369 | $ 10,087 | |
Deferred Compensation Liability | ||||
Liabilities: | ||||
Total liabilities | [1] | 13,369 | ||
Deferred Compensation Liability | Level I | ||||
Liabilities: | ||||
Total liabilities | [1] | $ 13,369 | ||
[1] | The deferred compensation liability is included in other non-current liabilities in the consolidated balance sheets and its fair market value is based on the month-end market prices for the net asset value of the various funds in the Company’s Rabbi Trust which the participants have selected. The Company recognized other expenses (income) of $(130), $990 and $900 related to this liability within the statements of comprehensive income for the three and nine months ended September 30, 2021, and for the year ended December 31, 2020, respectively. | |||
[2] | The fair value of the Company’s rabbi trust, which comprises equity investment and alternative investment securities funds, is based on the month-end quoted market prices for the net asset value of the various constituent funds and securities, which mature on a daily basis. | |||
[3] | The deferred compensation asset fair value is based on the month-end quoted market prices for the net asset value of the various investment funds. The Company recognized unrealized gains (loss) of $(130) , |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unrealized gains on deferred compensation asset | $ (130) | $ 990 | $ 900 |
Other Expenses | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Deferred compensation liability | $ (130) | $ 990 | $ 900 |
Asset-Based Expenses - Schedule
Asset-Based Expenses - Schedule of Asset-Based Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Costs And Expenses [Abstract] | ||||
Strategist and manager fees | $ 33,778 | $ 27,269 | $ 93,767 | $ 79,454 |
Premier broker-dealer fees | 1,930 | 2,607 | 7,530 | 8,356 |
Custody fees | 1,588 | 1,533 | 5,022 | 4,648 |
Fund advisory fees | 1,125 | 1,246 | 3,283 | 3,547 |
Marketing allowance | 276 | 774 | 1,005 | 2,522 |
Other | 2 | 2 | 3 | |
Total | $ 38,697 | $ 33,431 | $ 110,609 | $ 98,530 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Jun. 22, 2021 | Jul. 26, 2019 | Nov. 14, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||||
Interest expense | $ 1,061,000 | $ 1,344,000 | $ 2,606,000 | $ 4,445,000 | ||||
Proceeds from credit facility draw down | 75,000,000 | |||||||
Payments on credit facility | 35,000,000 | |||||||
Credit Agreement | Credit Suisse AG | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan, maturity date | Nov. 14, 2025 | |||||||
Interest expense | 1,061,000 | $ 1,344,000 | $ 2,606,000 | $ 4,445,000 | ||||
Accordion Option | $ 25,000,000 | |||||||
Credit Agreement | Credit Suisse AG | Alternate Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, margin percentage | 1.00% | |||||||
Credit Agreement | Credit Suisse AG | Alternate Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, margin percentage | 2.625% | |||||||
Credit Agreement | Credit Suisse AG | LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, margin percentage | 2.00% | |||||||
Credit Agreement | Credit Suisse AG | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, margin percentage | 3.625% | |||||||
Credit Agreement | Credit Suisse AG | Revolving Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 20,000,000 | 250,000,000 | ||||||
Credit facility, maturity date | Nov. 14, 2023 | Dec. 30, 2024 | ||||||
Proceeds from credit facility draw down | $ 75,000,000 | 75,000,000 | ||||||
Payments on credit facility | $ 35,000,000 | |||||||
Line of credit facility, description | The 2020 Revolving Credit Facility is not subject to amortization and will mature on December 30, 2024. | |||||||
Credit Agreement | Credit Suisse AG | Senior Secured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||
Credit Agreement | Credit Suisse AG | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||
Partial repayment of outstanding indebtedness | $ 125,000,000 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating lease costs | $ 1,311 | $ 1,465 | $ 3,855 | $ 4,515 |
Weighted-average lease term | 6 years 6 months | 6 years 6 months | ||
Weighted-average discount rate | 3.62% | 3.62% | ||
Operating lease liability payments | $ 1,396 | 914 | $ 3,996 | 2,236 |
Leasehold improvements, gross | 1,799 | 1,799 | ||
General and Operating Expenses | ||||
Variable lease components recorded as general and operating expenses | $ 187 | $ 197 | $ 533 | $ 544 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-cancellable Leases (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 1,418 |
2022 | 5,736 |
2023 | 5,693 |
2024 | 5,982 |
2025 | 5,822 |
2026 and thereafter | 13,376 |
Total future minimum lease payments | 38,027 |
Less: imputed interest | (4,611) |
Total operating lease liabilities | $ 33,416 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($)Installmentshares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Installment$ / sharesshares | Sep. 30, 2020USD ($) | Dec. 31, 2021shares | Dec. 31, 2020USD ($)shares | |
Restricted Stock Awards | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exchange of shares with stockholders on liquidation | 6,309,049 | |||||
Vesting percentage | 50.00% | |||||
Number of equal vesting installments | Installment | 3 | 3 | ||||
Vesting upon satisfaction of condition | 50.00% | |||||
Vesting description | 50% of the RSAs scheduled to vest in three (3) equal installments on the third, fourth and fifth anniversaries of November 18, 2016, subject to the recipient’s continued employment through the vesting date, and 50% subject to the recipient’s continued employment through February 1, 2021 and the satisfaction of a performance-based vesting condition. | |||||
Number of shares vested | 0 | 3,551,213 | ||||
Share-based compensation expense | $ | $ 4,503 | $ 11,047 | $ 39,473 | $ 36,080 | ||
Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ | 394 | 585 | 2,024 | 1,752 | ||
Restricted Stock Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting description | . Most of these RSUs are scheduled to vest in substantially equal installments on each of the first four anniversaries of the date of grant | |||||
Share-based compensation expense | $ | 2,024 | 705 | 4,128 | 1,489 | ||
Restricted stock units granted under the plan | 310,225 | 815,099 | ||||
Stock Appreciation Rights (SARs) | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting description | Each SAR has a strike price equal to the fair market value of the Company’s common stock on the date of grant and is scheduled to vest and become exercisable in substantially equal installments on each of the first four anniversaries of the date of grant | |||||
Share-based compensation expense | $ | $ 1,053 | $ 582 | $ 2,454 | $ 720 | ||
2019 Equity Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share available for issuance under the plan | 2,005,589 | 2,005,589 | ||||
2019 Equity Incentive Plan | Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting description | Each of these options is scheduled to vest and become exercisable in substantially equal installments on each of the first three anniversaries of July 18, 2019, subject to the recipient’s continued employment through the vesting date and have a ten-year contractual term. | |||||
Number of shares, granted | 918,981 | |||||
Exercise price | $ / shares | $ 22 | |||||
Contractual term | 10 years | |||||
2019 Equity Incentive Plan | Restricted Stock Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock units granted under the plan | 85,737 | |||||
2019 Equity Incentive Plan | Stock Appreciation Rights (SARs) | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share available for issuance under the plan | 831,902 | |||||
Grant date fair value of shares | $ | $ 9,239 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Federal corporate tax rate | 21.00% | |||
Effective tax rate | 43.60% | (869.20%) | 46.20% | 362.90% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Huatai Securities Co., Ltd. | ||
Related Party Transaction [Line Items] | ||
Receivable due from related parties | $ 234 | $ 143 |
Net Income Per Share Attribut_3
Net Income Per Share Attributable to Common Stockholders- Schedule of Reconciliation of Numerators and Denominators Used in Computing Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Net income (loss) | $ 12,250 | $ 8,597 | $ 13,320 | $ 2,053 |
Weighted average number of common shares outstanding, basic | 72,921,794 | 67,282,040 | 71,764,582 | 67,211,341 |
Basic | $ 0.17 | $ 0.13 | $ 0.19 | $ 0.03 |
Effect of dilutive shares: | ||||
Weighted average number of common shares outstanding, diluted | 73,566,777 | 70,068,690 | 71,940,398 | 69,695,817 |
Diluted | $ 0.17 | $ 0.12 | $ 0.19 | $ 0.03 |
Restricted Stock Awards | ||||
Effect of dilutive shares: | ||||
Unvested shares | $ 414,753 | $ 2,772,376 | $ 2,330,976 | |
Restricted Stock Units | ||||
Effect of dilutive shares: | ||||
Unvested shares | $ 230,230 | $ 14,274 | $ 175,816 | $ 153,500 |
Net Income Per Share Attribut_4
Net Income Per Share Attributable to Common Stockholders - Schedule of Securities Were Not Included in Computation of Diluted Shares Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 2,784,494 | 2,047,130 | 3,400,542 | 1,750,246 |
Stock Option | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 889,215 | 900,271 | 889,215 | 900,271 |
Stock Appreciation Rights (SARs) | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 1,702,546 | 831,902 | 1,702,546 | 831,902 |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 192,733 | 314,957 | 207,187 | 18,073 |
Restricted Stock Awards (RSAs) | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 601,594 |