Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 07, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40949 | |
Entity Registrant Name | Enfusion, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-1268462 | |
Entity Address State Or Province | IL | |
Entity Address, Address Line One | 125 South Clark Street | |
Entity Address, Address Line Two | Suite 750 | |
Entity Address, City or Town | Chicago | |
Entity Address, Postal Zip Code | 60603 | |
City Area Code | 312 | |
Local Phone Number | 253-9800 | |
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 | |
Title of 12(b) Security | Class A common stock, par value $0.001per share | |
Trading Symbol | ENFN | |
Security Exchange Name | NYSE | |
Entity Central Index Key | 0001868912 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 128,110,210 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 91,911,443 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 36,198,767 |
Condensed Consolidated Interim
Condensed Consolidated Interim Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 32,894 | $ 35,604 |
Accounts receivable, net | 30,932 | 28,069 |
Prepaid expenses | 5,420 | 5,009 |
Other current assets | 1,677 | 1,170 |
Total current assets | 70,923 | 69,852 |
Property, equipment, and software, net | 18,851 | 18,314 |
Right-of-use-assets, net | 14,151 | 14,304 |
Other assets | 7,038 | 6,502 |
Total assets | 110,963 | 108,972 |
Current liabilities: | ||
Accounts payable | 3,364 | 2,212 |
Accrued expenses and other current liabilities | 9,513 | 13,841 |
Current portion of lease liabilities | 4,529 | 4,256 |
Total current liabilities | 17,406 | 20,309 |
Lease liabilities, net of current portion | 10,931 | 11,181 |
Total liabilities | 28,337 | 31,490 |
Commitment and contingencies (Note 7) | ||
Stockholders' Equity: | ||
Preferred stock, $0.001 par value; 100,000 shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | ||
Additional paid-in capital | 231,881 | 226,877 |
Accumulated deficit | (173,471) | (172,932) |
Accumulated other comprehensive loss | (484) | (406) |
Total stockholders' equity attributable to Enfusion, Inc. | 58,054 | 53,666 |
Non-controlling interests | 24,572 | 23,816 |
Total stockholders' equity | 82,626 | 77,482 |
Total liabilities and stockholders' equity | 110,963 | 108,972 |
Common Class A | ||
Stockholders' Equity: | ||
Common stock | 90 | 88 |
Common Class B | ||
Stockholders' Equity: | ||
Common stock | $ 38 | $ 39 |
Condensed Consolidated Interi_2
Condensed Consolidated Interim Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock outstanding | 0 | 0 |
Common Class A | ||
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 89,877,000 | 88,332,000 |
Common stock, shares outstanding | 89,877,000 | 88,332,000 |
Common Class B | ||
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 38,199,000 | 39,199,000 |
Common stock, shares outstanding | 38,199,000 | 39,199,000 |
Condensed Consolidated Interi_3
Condensed Consolidated Interim Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUES: | ||
Total revenues | $ 48,052 | $ 40,971 |
COST OF REVENUES: | ||
Total cost of revenues | 16,174 | 13,302 |
Gross profit | 31,878 | 27,669 |
OPERATING EXPENSES: | ||
General and administrative | 20,223 | 14,473 |
Sales and marketing | 6,217 | 4,086 |
Technology and development | 6,551 | 4,431 |
Total operating expenses | 32,991 | 22,990 |
(Loss) income from operations | (1,113) | 4,679 |
NON-OPERATING INCOME (EXPENSE): | ||
Interest income, net | 317 | 492 |
Other expense, net | (82) | (81) |
Total non-operating income (expense) | 235 | 411 |
(Loss) income before income taxes | (878) | 5,090 |
Income taxes | (117) | 396 |
Net (loss) income | (761) | 4,694 |
Net (loss) income attributable to non-controlling interests | (222) | 1,749 |
Net (loss) income attributable to Enfusion, Inc. | $ (539) | $ 2,945 |
Net (loss) income per Class A common shares attributable to Enfusion, Inc.: | ||
Basic | $ (0.01) | $ 0.04 |
Diluted | $ (0.01) | $ 0.04 |
Weighted-average number of Class A common shares outstanding: | ||
Basic | 89,509 | 88,863 |
Diluted | 89,509 | 132,346 |
Platform subscriptions | ||
REVENUES: | ||
Total revenues | $ 44,689 | $ 37,998 |
COST OF REVENUES: | ||
Total cost of revenues | 14,394 | 11,675 |
Managed services | ||
REVENUES: | ||
Total revenues | 3,177 | 2,744 |
COST OF REVENUES: | ||
Total cost of revenues | 1,697 | 1,564 |
Other | ||
REVENUES: | ||
Total revenues | 186 | 229 |
COST OF REVENUES: | ||
Total cost of revenues | $ 83 | $ 63 |
Condensed Consolidated Interi_4
Condensed Consolidated Interim Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Condensed Consolidated Interim Statements of Comprehensive (Loss) Income | ||
Net (loss) income | $ (761) | $ 4,694 |
Other comprehensive (loss) income, net of income tax: | ||
Foreign currency translation (loss) income | (112) | 48 |
Total other comprehensive (loss) income | (873) | 4,742 |
Comprehensive (loss) income attributable to non-controlling interests | (256) | 1,766 |
Total comprehensive (loss) income attributable to Enfusion, Inc. | $ (617) | $ 2,976 |
Condensed Consolidated Interi_5
Condensed Consolidated Interim Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock Common Class A | Common Stock Common Class B | Additional Paid-in Capital | Accumulated Deficit Cumulative impact of adopting ASU 2016-13 | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non-Controlling Interest Cumulative impact of adopting ASU 2016-13 | Non-Controlling Interest | Cumulative impact of adopting ASU 2016-13 | Total |
Balance at Beginning of period at Dec. 31, 2022 | $ 71 | $ 43 | $ 244,260 | $ (94) | $ (178,863) | $ (504) | $ (55) | $ 38,437 | $ (149) | $ 103,444 |
Balance at Beginning of period (in shares) at Dec. 31, 2022 | 70,860 | 43,199 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 2,945 | 1,749 | 4,694 | |||||||
Stock-based compensation | (640) | (398) | (1,038) | |||||||
Share exchange | $ 2 | $ (2) | 1,376 | (1,376) | ||||||
Share exchange (in shares) | 2,000 | (2,000) | ||||||||
Issuance of IPO vested Class A common stock and share-based awards | $ 1 | (1) | ||||||||
Issuance of IPO vested Class A common stock and share-based awards (in shares) | 1,222 | |||||||||
Tax withholdings related to net share settlements of stock-based compensation awards | (4,739) | (2,840) | (7,579) | |||||||
Foreign currency translation | 31 | 17 | 48 | |||||||
Other | (181) | (94) | (275) | |||||||
Balance at end of period at Mar. 31, 2023 | $ 74 | $ 41 | 240,075 | (176,012) | (473) | 35,440 | 99,145 | |||
Balance at end of period (in shares) at Mar. 31, 2023 | 74,082 | 41,199 | ||||||||
Balance at Beginning of period at Dec. 31, 2023 | $ 88 | $ 39 | 226,877 | (172,932) | (406) | 23,816 | 77,482 | |||
Balance at Beginning of period (in shares) at Dec. 31, 2023 | 88,332 | 39,199 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | (539) | (222) | (761) | |||||||
Stock-based compensation | 5,180 | 2,210 | 7,390 | |||||||
Share exchange | $ 1 | $ (1) | 614 | (614) | ||||||
Share exchange (in shares) | 1,000 | (1,000) | ||||||||
Issuance of share-based awards | $ 1 | 102 | (103) | |||||||
Issuance of share-based awards (In shares) | 545 | |||||||||
Tax withholdings related to net share settlements of stock-based compensation awards | (892) | (380) | (1,272) | |||||||
Foreign currency translation | (78) | (34) | (112) | |||||||
Distributions to non-controlling interests | (101) | (101) | ||||||||
Balance at end of period at Mar. 31, 2024 | $ 90 | $ 38 | $ 231,881 | $ (173,471) | $ (484) | $ 24,572 | $ 82,626 | |||
Balance at end of period (in shares) at Mar. 31, 2024 | 89,877 | 38,199 |
Condensed Consolidated Interi_6
Condensed Consolidated Interim Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (761) | $ 4,694 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Non-cash lease expense | 1,765 | 1,546 |
Depreciation and amortization | 2,674 | 1,868 |
(Benefit) provision for credit losses | (141) | 475 |
Amortization of debt-related costs | 59 | 6 |
Stock-based compensation expense (benefit) | 7,001 | (1,147) |
Change in operating assets and liabilities: | ||
Accounts receivable | (2,722) | 878 |
Prepaid expenses | (414) | 505 |
Other assets | (1,646) | (1,658) |
Accounts payable | 1,311 | (395) |
Accrued compensation | (3,545) | (5,391) |
Accrued expenses and other liabilities | (455) | 958 |
Lease liabilities | (1,593) | (1,415) |
Net cash provided by operating activities | 1,533 | 924 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (635) | (1,489) |
Capitalization of software development costs | (2,113) | (1,061) |
Net cash used in investing activities | (2,748) | (2,550) |
Cash flows from financing activities: | ||
Payment of withholding taxes on stock-based compensation | (1,272) | (7,579) |
Distributions to non-controlling interests | (101) | |
Settlement of tax receivable acquired in reorganization transactions | 1,501 | |
Other financing activities | (275) | |
Net cash used in financing activities | (1,373) | (6,353) |
Effect of exchange rate changes on cash and cash equivalents | (122) | 32 |
Net decrease in cash and cash equivalents | (2,710) | (7,947) |
Cash and cash equivalents, beginning of period | 35,604 | 62,545 |
Cash and cash equivalents, end of period | 32,894 | 54,598 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid in cash | 372 | 205 |
Supplemental disclosure of non-cash activities: | ||
Right-of-use assets obtained in exchange for lease liabilities | 1,318 | 7,890 |
Capitalized stock-based compensation expense | 389 | $ 109 |
Accrued property, equipment, and software, net | $ 168 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2024 | |
Organization and Description of Business | |
Organization and Description of Business | Note 1 Organization and Description of Business Enfusion is a leading provider of SaaS solutions for portfolio management, order and execution management, accounting, and analytics. Enfusion’s clients include large global hedge fund managers, institutional asset managers, family offices, and other institutional investors. Enfusion provides its clients with innovative real-time performance, risk calculations, and accounting capabilities for some of the most sophisticated financial products. The Company is headquartered in Chicago, Illinois and has offices in New York, London, Dublin, Hong Kong, Singapore, Mumbai, Bengaluru, and Sydney. Enfusion, Inc. was incorporated in Delaware on June 11, 2021 for the purpose of facilitating an IPO, which was completed on October 25, 2021, and other related transactions in order to carry on the business of Enfusion Ltd. LLC. Enfusion, Inc. is a holding company and, through its control over the managing member of Enfusion Ltd. LLC, operates and controls Enfusion Ltd. LLC. Enfusion, Inc.’s principal asset consists of Common Units. Enfusion, Inc. has three wholly-owned subsidiaries: Enfusion US 1, Inc., Enfusion US 2, Inc., and Enfusion US 3, Inc.; as well as a controlling financial interest in Enfusion Ltd. LLC and its majority-owned subsidiary, Enfusion Softech India Private Limited, as well as the wholly-owned subsidiaries of Enfusion Ltd. LLC: Enfusion Systems UK Ltd, Enfusion HK Limited, Enfusion Software Limited, Enfusion (Singapore) Pte. Ltd., Enfusion do Brasil Tecnologia da Informacão Ltd, Enfusion (Australia) Pty. Ltd., Enfusion (Shanghai) Co., Ltd. and Enfusion Tech Ltd. Enfusion, Inc., through its control over the managing member of Enfusion Ltd. LLC, manages and operates Enfusion Ltd. LLC’s business and controls its strategic decisions and day-to-day operations. As such, Enfusion, Inc. consolidates the financial results of Enfusion Ltd. LLC, and a portion of Enfusion, Inc.’s net (loss) income is allocated to non-controlling interests to reflect the entitlement to a portion of Enfusion Ltd. LLC’s net (loss) income by the other common unitholders of Enfusion Ltd. LLC. As of March 31, 2024, Enfusion, Inc. owned 70.2% of Enfusion Ltd. LLC. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Basis of Presentation | |
Basis of Presentation | Note 2 Basis of Presentation Principles of Consolidation These statements have been prepared in conformity with U.S. GAAP, and in accordance with rules and regulations of the SEC regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the Company’s financial position and results of operations, and all adjustments are of a normal recurring nature. The operating results for the three months ended March 31, 2024 are not necessarily indicative of the results expected for the full year ending December 31, 2024. The condensed consolidated interim financial information should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The unaudited condensed consolidated interim financial statements include the accounts of Enfusion, Inc. and its wholly or majority-owned subsidiaries. All intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of condensed consolidated interim financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated interim financial statements and accompanying notes. Actual results could differ from those estimates. The effect of the change in the estimates will be recognized in the period of the change. Reclassifications Certain amounts in prior periods have been reclassified to conform with the current period presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 3 Summary of Significant Accounting Policies A description of the Company’s significant accounting policies is included in the audited financial statements within its Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes in the Company’s significant accounting policies during the three months ended March 31, 2024. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an initial maturity date of three months or less to be cash equivalents. Funds held in money market funds are included within cash and cash equivalents. As of March 31, 2024 and December 31, 2023, the Company had approximately $21.9 million and $30.0 million, respectively, invested in money market accounts. Accounts Receivable and Allowances As of March 31, 2024 and December 31, 2023, no individual client represented more than 10% of accounts receivable. For the three months ended March 31, 2024 and 2023, respectively, no individual client represented more than 10% of the Company’s total revenue. Accounts receivable includes billed and unbilled receivables, net of allowances, including the allowance for credit losses. Billed accounts receivable are initially recorded upon the invoicing to clients with payment due within 30 days. Unbilled accounts receivable represent revenue recognized on contracts for which the timing of invoicing to clients differs from the timing of revenue recognition. Unbilled accounts receivable was $2.4 million as of March 31, 2024 and December 31, 2023. Contract assets included in unbilled accounts receivable were $1.8 million and $1.7 million as of March 31, 2024 and December 31, 2023, respectively. Trade accounts receivable are recorded at the invoiced amount. Accounts receivable are presented net of an estimated allowance for expected credit losses. The Company maintains an allowance for expected credit losses as a reduction of trade accounts receivable’s amortized cost basis to present the net amount expected to be collected. In developing its expected credit loss estimate, the Company evaluated the appropriate grouping of financial assets based upon its evaluation of risk characteristics, including consideration of the industry and geography of its customers. Account balances are written off against the allowance for expected credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. The following table summarizes the activity of the allowances applied to accounts receivable for the three months ended March 31, 2024 (in thousands): Three Months Ended March 31, 2024 2023 Beginning balance $ 1,092 $ 1,225 Adoption of ASU 2016-13 — 149 Changes to the provision 44 533 Accounts written off, net of recoveries (157) (503) Ending balance $ 979 $ 1,404 Financial Instruments and Fair Value Measurements The Company has investments in money market accounts, which are included in cash and cash equivalents on the condensed consolidated balance sheets. Fair value inputs for these investments are considered Level 1 measurements within the fair value hierarchy, as money market account fair values are known and observable through daily published floating net asset values. Annual Bonus Incentive Plan Annual bonuses payable by the Company to its officers and employees may be funded through a combination of cash and equity, at the discretion of the Company’s Compensation Committee. We accrue and record the related corporate bonus amounts payable in cash in the period in which it is earned by the recipient. The Compensation Committee may make incentive awards based on such terms, conditions, and criteria as it considers appropriate. Stock awards issued in connection with these bonuses may or may not be subject to additional vesting conditions at the time of grant, which are subject to determination by the Compensation Committee. For annual bonuses settled in cash, the Company accrues over the course of the year the annual bonuses earned by employees but paid in the following year. For annual bonuses settled in stock, in accordance with ASC 718, Stock Compensation Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers ● Identification of the contract, or contracts, with a client; ● Identification of the performance obligation in the contract; ● Determination of transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when, or as, performance obligations are satisfied. Platform subscriptions revenues Platform subscriptions revenues consist primarily of user fees to provide our clients access to our SaaS solution. Fees consider various components such as number of users, connectivity, trading volume, data usage and product coverage. Platform subscription clients do not have the right to take possession of the platform’s software and do not have any general return rights. Platform subscriptions revenues are recognized ratably over the period of contractually enforceable rights and obligations, beginning on the date that the client gains access to the platform. Installed payments are generally invoiced at the end of each calendar month during the subscription term. There is no financing available. Managed services revenues Managed services revenues primarily consist of client-selected middle- and back-office, technology-powered services. Managed services revenues are recognized ratably over the period of contractually enforceable rights and obligations, beginning on the contract effective date. Clients are invoiced a set fee for managed services typically at the end of each month. Generally, invoices have a 30-day payment period in accordance with the associated contract. There is no financing available. Other revenues Other revenues consist of non-subscription-based revenues, primarily, data conversion. The Company recognizes revenues as these services are performed with invoicing generally occurring at the end of each month. Service contracts with multiple performance obligations Certain of the Company’s contracts provide for customers to be charged a fee for implementation services. In determining whether the implementation services, which frequently include configuration and/or interfacing, customer reporting, customizing user permissions and acceptance testing, end-user training, and establishing connections with third-party interfaces, are distinct from its platform subscription services, the Company considers, in addition to their complexity and level of customization, that these services are integral in delivering the customer desired output and are necessary for the customer to access and begin to use the hosted application. The implementation provider must be intimately familiar with its platform to effectively execute the customization required, and no other entities have access to the source code. The Company has concluded that the implementation services in its service contracts with multiple performance obligations are not distinct, and therefore, the Company recognizes fees for implementation services ratably over the non-cancelable term of the contract. Remaining performance obligations For the Company’s contracts that exceed one year and do not include a termination for convenience clause, the amount of the transaction price allocated to remaining performance obligations as of March 31, 2024 was $31.6 million and is expected to be recognized based on the below schedule (in thousands). Remaining Performance Obligation March 31, 2024 2024 $ 15,443 2025 12,349 2026 3,723 2027 94 2028 — Total $ 31,609 Disaggregation of revenue The Company’s total revenues by geographic region, based on the client’s physical location is presented in the following tables (in thousands): Three Months Ended March 31, 2024 2023 Geographic Region Amount Percent Amount Percent Americas* $ 29,728 61.9 % $ 25,572 62.4 % Europe, Middle East, and Africa (EMEA) 7,597 15.8 % 5,903 14.4 % Asia Pacific (APAC) 10,727 22.3 % 9,496 23.2 % Total revenues $ 48,052 100.0 % $ 40,971 100.0 % * Includes revenues from clients based in the United States (country of domicile) of $29.0 million and $25.0 million for the three months ended March 31, 2024 and 2023, respectively. Recently Adopted Accounting Pronouncements None. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topics 740): Improvements to Income Tax Disclosures |
Property, Equipment, and Softwa
Property, Equipment, and Software, Net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Equipment, and Software, Net | |
Property, Equipment, and Software, Net | Note 4 Property, Equipment, and Software, Net As of March 31, 2024 and December 31, 2023, property, equipment, and software, net located in the United States was $17.6 million and $17.0 million, respectively. The remainder was located in our various international locations. Included in property, equipment, and software are the capitalized costs of software development. Software development costs capitalized during the three months ended March 31, 2024 and 2023 were $2.2 million and $1.2 million, respectively. Depreciation expense related to property and equipment, excluding software development costs, was $1.0 million and $0.9 million for the three months ended March 31, 2024 and 2023, respectively. Amortization expense related to software development costs was $1.1 million and $0.7 million for the three months ended March 31, 2024 and 2023, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | Note 5 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, 2024 December 31, 2023 Accrued compensation $ 6,203 $ 10,058 Accrued expenses and other 1,073 1,385 Accrued taxes 2,237 2,398 Total accrued expenses and other current liabilities $ 9,513 $ 13,841 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt | |
Debt | Note 6 Debt Credit Agreement On September 15, 2023, the Company entered into a credit agreement (the “Credit Agreement”) with Bank of America N.A. and a syndicate of lending institutions. The Credit Agreement provides for a senior secured revolving loan facility in an aggregate principal amount of up to $100.0 million, including a $10.0 million sublimit for the issuance of letters of credit and a swingline subfacility of up to $10.0 million. The Credit Agreement also includes an uncommitted accordion feature that allows for up to $50.0 million of additional borrowing capacity, subject to obtaining lender commitments and the satisfaction of certain customary conditions. The Credit Agreement matures on September 15, 2028, at which time all outstanding principal and unpaid interest will become due. Obligations under the Credit Agreement are secured by a lien on substantially all of the assets of the Company. Revolving loans under the Credit Agreement will bear interest, at the Company’s option, at an annual rate benchmarked to (1) the Secured Overnight Financing Rate (“SOFR”) or (2) a “Base Rate” that is equal to the highest of (a) the federal funds rate plus 0.50%, (b) Bank of America’s prime rate and (c) one month adjusted term SOFR plus 1.00%. Loans based on SOFR bear interest at a rate equal to term SOFR for the applicable interest period plus 10 basis points plus a margin between 2.00% and 2.75%. Loans based on the Base Rate bear interest at a rate equal to the Base Rate plus a margin between 1.00% and 1.75% (such margins being referred to as the “Applicable Rate”). The Applicable Rate in each case is determined based on the Company’s consolidated net leverage ratio. The Company is also required to pay a commitment fee of between 0.20% and 0.25% per annum on the unused portion of the lenders’ commitments in respect of the revolving loans and letter of credit obligations, based on the Company’s consolidated net leverage ratio. As of March 31, 2024, the commitment fee rate was 0.20%. The Credit Agreement contains certain customary covenants with which the Company must comply, including financial covenants relating to a net leverage ratio covenant and an interest coverage ratio. As part of the Credit Agreement, the Company is required to maintain a minimum required balance of $5.0 million with Bank of America, and by the first anniversary of the closing date, use commercially reasonable efforts to maintain Bank of America as its principal depository bank. The Company was in compliance with all loan covenants and requirements as of March 31, 2024. Issuance costs associated with the Credit Agreement were capitalized and included in other assets on the accompanying consolidated balance sheets. As of March 31, 2024, the Company had no outstanding borrowings under the Credit Agreement. Prior Credit Agreement Concurrent with entering into the Credit Agreement, on September 15, 2023, the Company terminated its $5.0 million revolving credit facility (the “Prior Credit Agreement”) with Silicon Valley Bank, which by its terms was scheduled to mature on December 17, 2025. At the time of termination, there were no borrowings outstanding under the Prior Credit Agreement. The Company recognized a loss on extinguishment of debt of approximately $78 thousand associated with the termination of the Prior Credit Agreement during the quarter ended September 30, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 7 Commitments and Contingencies The Company records accruals for contingencies when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. No material accruals for contingencies were recorded as of March 31, 2024 and December 31, 2023, respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity | |
Stockholders' Equity | Note 8 Stockholders’ Equity Share Exchanges Pursuant to the terms of the LLC Operating Agreement, on January 11, 2024, a Pre-IPO Common Unitholder surrendered 1,000,000 Common Units and an equal number of shares of Class B common stock. In connection therewith, the Company issued 1,000,000 shares of Class A common stock to such Pre-IPO Common Unitholder, canceled an equal number of shares of Class B common stock, and received an equal number of Common Units, increasing the Company’s ownership of Common Units by 1,000,000. Amended and Restated Certificate of Incorporation The Amended and Restated Certificate of Incorporation of Enfusion, Inc. provides for 1,000,000,000 authorized shares of Class A common stock, 150,000,000 authorized shares of Class B common stock, and 100,000,000 shares of preferred stock. Each share of the Company’s Class A common stock is entitled to one vote per share and is not convertible into any other shares of its capital stock. Holders of shares of the Company’s Class A common stock are entitled to receive dividends when, as, and if declared by the Company’s board of directors. Upon its liquidation, dissolution or winding up and after payment in full of all amounts required to be paid to creditors, and subject to the rights of the holders of one or more outstanding series of preferred stock, as applicable, having liquidation preferences, the holders of shares of the Company’s Class A common stock will be entitled to receive pro rata the Company’s remaining assets available for distribution. Each share of the Company’s Class B common stock is entitled to one vote per share and is not convertible or exchangeable for a share of Class A common stock or any other security. Holders of the Company’s Class B common stock do not have any right to receive dividends or to receive a distribution upon a liquidation, dissolution, or winding up of Enfusion, Inc. Preferred Stock The Company’s board of directors have the authority, without further action by the Company’s stockholders, to issue up to 100,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, and restrictions thereof. These rights, preferences, and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting, or the designation of, such series, any or all of which may be greater than the rights of Class A common stock. As of March 31, 2024, the Company has no shares of preferred stock outstanding nor has the Company’s board of directors established the rights and privileges related to any series of preferred stock. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 9 The Company’s stock compensation expense (benefit) was recognized in the following captions within the unaudited consolidated statements of operations: Three Months Ended March 31, (in thousands) 2024 2023 Cost of revenues $ 717 $ 270 General and administrative 4,380 (230) Sales and marketing 361 (1,581) Technology and development 1,543 394 Total stock-based compensation expense (benefit) $ 7,001 $ (1,147) The Company recognized total stock-based compensation expense, including RSUs and stock options, of $7.0 million for the three months ended March 31, 2024 and stock-based compensation benefit of $1.1 million for the three months ended March 31, 2023, which represents an increase of $8.1 million. Stock-based compensation expense for the three months ended March 31, 2024 included $3.6 million related to fully vested shares granted in conjunction with the Annual Bonus Incentive Plan. No such shares were granted in the three months ended March 31, 2023. Total unrecognized stock-based compensation expense related to unvested RSUs and stock options was $32.2 million as of March 31, 2024, which is expected to be recognized over a weighted-average period of 2.5 years. 2021 Stock Option and Incentive Plan In conjunction with the IPO, the Company established the 2021 Stock Option and Incentive Plan (the “2021 Plan”). The 2021 Plan provides for grants of stock options, stock appreciation rights, restricted stock, restricted stock units, bonus stock, dividend equivalents, other stock-based awards, substitute awards, annual incentive awards, and performance awards intended to align the interests of participants with those of the Company’s shareholders. Restricted stock units During the three months ended March 31, 2024, there were 2,276,645 restricted stock units (“RSUs”) granted under the 2021 Plan, at a weighted-average grant fair value of $8.65. Total unrecognized stock compensation expense related to unvested RSUs was $31.9 million as of March 31, 2024, which is expected to be recognized over a weighted-average period of 2.5 years. During the three months ended March 31, 2023, there were 597,034 restricted stock units granted under the 2021 Plan, at a weighted-average grant fair value of $10.99. Stock options During the three months ended March 31, 2024, no stock options were granted under the 2021 Plan, and no stock options were forfeited. As of March 31, 2024, there was approximately $305 thousand of unrecognized equity-based compensation expense related to the stock options that are not yet vested or exercisable, which is expected to be recognized over a weighted-average period of 1.7 years. During the three months ended March 31, 2023, there were 71,004 stock options granted under the 2021 Plan at a weighted-average exercise price of $11.06 per option, and there were 31,474 stock options forfeited. Performance-based RSUs In the three months ended March 31, 2024, 100,000 performance-based RSUs, which will vest subject to market conditions, were granted at a weighted-average fair value of $4.24 per unit. The assumptions used in the Monte Carlo simulation for the PSUs granted in the three months ended March 31, 2024 were as follows: Assumptions Fair value of common stock (per share) $8.35 Expected volatility 52.20% Risk-free rate 4.27% Dividend yield 0.00% Cost of equity capital 12.30% Total unrecognized stock compensation expense related to unvested performance stock units (“PSUs”) was $2.7 million as of March 31, 2024, which is expected to be recognized over a weighted-average period of 1.9 years. In the three months ended March 31, 2023, no performance-based RSUs were granted. |
Net (Loss) Income Per Class A C
Net (Loss) Income Per Class A Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Net (Loss) Income Per Class A Common Share | |
Net (Loss) Income Per Class A Common Share | Note 10 Net (Loss) Income Per Class A Common Share Basic (loss) income per share is computed by dividing net (loss) income attributable to Enfusion, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted (loss) income per share is computed giving effect to all potentially dilutive shares. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net (loss) income per share of Class A common stock is as follows: Three Months Ended March 31, (in thousands, except per share amounts) 2024 2023 Net (loss) income $ (761) $ 4,694 Less: Net loss (income) attributable to non-controlling interests 222 (1,749) Net (loss) income attributable to Enfusion, Inc. $ (539) $ 2,945 Numerator: Net (loss) income attributable to Enfusion, Inc. $ (539) $ 2,945 Adjustment to (loss) income attributable to common stockholders — 226 Numerator for Basic Earnings per Share $ (539) $ 3,171 Adjustment to Income for Dilutive Shares — 1,523 Numerator for Diluted Earnings per Share $ (539) $ 4,694 Denominator: Weighted-average shares of Class A common stock outstanding 89,509 72,272 Vested shares of Class A common stock and RSUs — 16,591 Weighted-average shares of Class A common stock outstanding--basic 89,509 88,863 Add: Dilutive Shares — 43,483 Weighted-average shares of Class A common stock outstanding--diluted 89,509 132,346 Net (loss) income per share of Class A common stock--Basic $ (0.01) $ 0.04 Net (loss) income per share of Class A common stock--Diluted $ (0.01) $ 0.04 The following number of potentially dilutive shares were excluded from the calculation of diluted (loss) income per share because the effect of including such potentially dilutive shares would have been antidilutive: Three Months Ended March 31, (in thousands) 2024 2023 Class B common stock 38,199 — Restricted stock units 3,867 110 Stock options 84 84 42,150 194 Shares of Class B common stock do not share in earnings and are not participating securities. Accordingly, separate presentation of loss per share of Class B common stock under the two-class method has not been presented. Shares of Class B common stock are, however, considered potentially dilutive shares of Class A common stock. After evaluating the potential dilutive effect under both the treasury stock method and if-converted method, shares of Class B common stock were determined to be antidilutive for the three months ended March 31, 2024, and have therefore been excluded in the computation of diluted earnings per share of Class A common stock. For the three months ended March 31, 2023, shares of Class B common stock were determined to be dilutive and have therefore been included in the computation of diluted earnings per share of Class A common stock. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Taxes | |
Income Taxes | Note 11 Income Taxes The Company is taxed as a corporation for income tax purposes and is subject to federal, state, and local taxes on the income allocated to it from Enfusion Ltd. LLC based upon the Company’s economic interest in Enfusion Ltd. LLC. The Company controls the sole managing member of Enfusion Ltd. LLC and, as a result, consolidates the financial results of Enfusion Ltd. LLC. Enfusion Ltd. LLC. is a limited liability company taxed as a partnership for income tax purposes. Enfusion Ltd. LLC does not pay any federal income taxes, as income or loss is included in the tax returns of the individual members. Additionally, certain wholly-owned entities taxed as corporations are subject to federal, state, and foreign income taxes in the jurisdictions in which they operate, and accruals for such taxes are included in the Condensed Consolidated Financial Statements. For periods prior to the IPO, the Company’s taxes represent those of Enfusion Ltd. LLC. The Company’s effective tax rate was 13.3% and 7.8% for the three months ended and 2023, respectively. In the three months ended and 2023, the Company’s effective tax rate differed from the U.S. statutory tax rate of 21% primarily due to income or loss attributable to non-controlling interest, changes in valuation allowance in the U.S., and foreign income taxes. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions | |
Related Party Transactions | Note 12 Related Party Transactions Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions. Since transactions with related parties may raise potential or actual conflicts of interest between the related party and the Company, upon the completion of the IPO, the Company implemented a related party transaction policy that requires related party transactions to be reviewed and approved by its nominating and corporate governance committee. For a discussion of related party transactions that occurred during the fiscal year ended December 31, 2023, please refer to Note 14, Related Party Transactions |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events | |
Subsequent Events | Note 13 Subsequent Events Share Exchanges On April 1, 2024, a Pre-IPO Common Unitholder delivered an exchange notice pursuant to Article XII of the LLC Operating Agreement. Pursuant to the terms of the LLC Operating Agreement, on April 8, 2024, the Pre-IPO Common Unitholder surrendered 1,000,000 Common Units and an equal number of shares of Class B common stock. In connection therewith, the Company issued 1,000,000 shares of Class A common stock to such Pre-IPO Common Unitholder, canceled an equal number of shares of Class B common stock, and received an equal number of Common Units, increasing the Company’s ownership of Common Units by 1,000,000. On April 29, 2024, a Pre-IPO Common Unitholder delivered an exchange notice pursuant to Article XII of the LLC Operating Agreement. Pursuant to the terms of the LLC Operating Agreement, on May 6, 2024, the Pre-IPO Common Unitholder surrendered 1,000,000 Common Units and an equal number of shares of Class B common stock. In connection therewith, the Company issued 1,000,000 shares of Class A common stock to such Pre-IPO Common Unitholder, canceled an equal number of shares of Class B common stock, and received an equal number of Common Units, increasing the Company’s ownership of Common Units by 1,000,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation These statements have been prepared in conformity with U.S. GAAP, and in accordance with rules and regulations of the SEC regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the Company’s financial position and results of operations, and all adjustments are of a normal recurring nature. The operating results for the three months ended March 31, 2024 are not necessarily indicative of the results expected for the full year ending December 31, 2024. The condensed consolidated interim financial information should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The unaudited condensed consolidated interim financial statements include the accounts of Enfusion, Inc. and its wholly or majority-owned subsidiaries. All intercompany balances and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated interim financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated interim financial statements and accompanying notes. Actual results could differ from those estimates. The effect of the change in the estimates will be recognized in the period of the change. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform with the current period presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an initial maturity date of three months or less to be cash equivalents. Funds held in money market funds are included within cash and cash equivalents. As of March 31, 2024 and December 31, 2023, the Company had approximately $21.9 million and $30.0 million, respectively, invested in money market accounts. |
Accounts Receivable and Allowances | Accounts Receivable and Allowances As of March 31, 2024 and December 31, 2023, no individual client represented more than 10% of accounts receivable. For the three months ended March 31, 2024 and 2023, respectively, no individual client represented more than 10% of the Company’s total revenue. Accounts receivable includes billed and unbilled receivables, net of allowances, including the allowance for credit losses. Billed accounts receivable are initially recorded upon the invoicing to clients with payment due within 30 days. Unbilled accounts receivable represent revenue recognized on contracts for which the timing of invoicing to clients differs from the timing of revenue recognition. Unbilled accounts receivable was $2.4 million as of March 31, 2024 and December 31, 2023. Contract assets included in unbilled accounts receivable were $1.8 million and $1.7 million as of March 31, 2024 and December 31, 2023, respectively. Trade accounts receivable are recorded at the invoiced amount. Accounts receivable are presented net of an estimated allowance for expected credit losses. The Company maintains an allowance for expected credit losses as a reduction of trade accounts receivable’s amortized cost basis to present the net amount expected to be collected. In developing its expected credit loss estimate, the Company evaluated the appropriate grouping of financial assets based upon its evaluation of risk characteristics, including consideration of the industry and geography of its customers. Account balances are written off against the allowance for expected credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. The following table summarizes the activity of the allowances applied to accounts receivable for the three months ended March 31, 2024 (in thousands): Three Months Ended March 31, 2024 2023 Beginning balance $ 1,092 $ 1,225 Adoption of ASU 2016-13 — 149 Changes to the provision 44 533 Accounts written off, net of recoveries (157) (503) Ending balance $ 979 $ 1,404 |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements The Company has investments in money market accounts, which are included in cash and cash equivalents on the condensed consolidated balance sheets. Fair value inputs for these investments are considered Level 1 measurements within the fair value hierarchy, as money market account fair values are known and observable through daily published floating net asset values. |
Annual Bonus Incentive Plan | Annual Bonus Incentive Plan Annual bonuses payable by the Company to its officers and employees may be funded through a combination of cash and equity, at the discretion of the Company’s Compensation Committee. We accrue and record the related corporate bonus amounts payable in cash in the period in which it is earned by the recipient. The Compensation Committee may make incentive awards based on such terms, conditions, and criteria as it considers appropriate. Stock awards issued in connection with these bonuses may or may not be subject to additional vesting conditions at the time of grant, which are subject to determination by the Compensation Committee. For annual bonuses settled in cash, the Company accrues over the course of the year the annual bonuses earned by employees but paid in the following year. For annual bonuses settled in stock, in accordance with ASC 718, Stock Compensation |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers ● Identification of the contract, or contracts, with a client; ● Identification of the performance obligation in the contract; ● Determination of transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when, or as, performance obligations are satisfied. Platform subscriptions revenues Platform subscriptions revenues consist primarily of user fees to provide our clients access to our SaaS solution. Fees consider various components such as number of users, connectivity, trading volume, data usage and product coverage. Platform subscription clients do not have the right to take possession of the platform’s software and do not have any general return rights. Platform subscriptions revenues are recognized ratably over the period of contractually enforceable rights and obligations, beginning on the date that the client gains access to the platform. Installed payments are generally invoiced at the end of each calendar month during the subscription term. There is no financing available. Managed services revenues Managed services revenues primarily consist of client-selected middle- and back-office, technology-powered services. Managed services revenues are recognized ratably over the period of contractually enforceable rights and obligations, beginning on the contract effective date. Clients are invoiced a set fee for managed services typically at the end of each month. Generally, invoices have a 30-day payment period in accordance with the associated contract. There is no financing available. Other revenues Other revenues consist of non-subscription-based revenues, primarily, data conversion. The Company recognizes revenues as these services are performed with invoicing generally occurring at the end of each month. Service contracts with multiple performance obligations Certain of the Company’s contracts provide for customers to be charged a fee for implementation services. In determining whether the implementation services, which frequently include configuration and/or interfacing, customer reporting, customizing user permissions and acceptance testing, end-user training, and establishing connections with third-party interfaces, are distinct from its platform subscription services, the Company considers, in addition to their complexity and level of customization, that these services are integral in delivering the customer desired output and are necessary for the customer to access and begin to use the hosted application. The implementation provider must be intimately familiar with its platform to effectively execute the customization required, and no other entities have access to the source code. The Company has concluded that the implementation services in its service contracts with multiple performance obligations are not distinct, and therefore, the Company recognizes fees for implementation services ratably over the non-cancelable term of the contract. Remaining performance obligations For the Company’s contracts that exceed one year and do not include a termination for convenience clause, the amount of the transaction price allocated to remaining performance obligations as of March 31, 2024 was $31.6 million and is expected to be recognized based on the below schedule (in thousands). Remaining Performance Obligation March 31, 2024 2024 $ 15,443 2025 12,349 2026 3,723 2027 94 2028 — Total $ 31,609 Disaggregation of revenue The Company’s total revenues by geographic region, based on the client’s physical location is presented in the following tables (in thousands): Three Months Ended March 31, 2024 2023 Geographic Region Amount Percent Amount Percent Americas* $ 29,728 61.9 % $ 25,572 62.4 % Europe, Middle East, and Africa (EMEA) 7,597 15.8 % 5,903 14.4 % Asia Pacific (APAC) 10,727 22.3 % 9,496 23.2 % Total revenues $ 48,052 100.0 % $ 40,971 100.0 % * Includes revenues from clients based in the United States (country of domicile) of $29.0 million and $25.0 million for the three months ended March 31, 2024 and 2023, respectively. |
Recently Adopted Accounting Pronouncements /Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements None. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topics 740): Improvements to Income Tax Disclosures |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies | |
Schedule of accounts receivable allowance for credit loss | The following table summarizes the activity of the allowances applied to accounts receivable for the three months ended March 31, 2024 (in thousands): Three Months Ended March 31, 2024 2023 Beginning balance $ 1,092 $ 1,225 Adoption of ASU 2016-13 — 149 Changes to the provision 44 533 Accounts written off, net of recoveries (157) (503) Ending balance $ 979 $ 1,404 |
Schedule of remaining performance obligation | For the Company’s contracts that exceed one year and do not include a termination for convenience clause, the amount of the transaction price allocated to remaining performance obligations as of March 31, 2024 was $31.6 million and is expected to be recognized based on the below schedule (in thousands). Remaining Performance Obligation March 31, 2024 2024 $ 15,443 2025 12,349 2026 3,723 2027 94 2028 — Total $ 31,609 |
Schedule of total net revenues by geographic region | The Company’s total revenues by geographic region, based on the client’s physical location is presented in the following tables (in thousands): Three Months Ended March 31, 2024 2023 Geographic Region Amount Percent Amount Percent Americas* $ 29,728 61.9 % $ 25,572 62.4 % Europe, Middle East, and Africa (EMEA) 7,597 15.8 % 5,903 14.4 % Asia Pacific (APAC) 10,727 22.3 % 9,496 23.2 % Total revenues $ 48,052 100.0 % $ 40,971 100.0 % * Includes revenues from clients based in the United States (country of domicile) of $29.0 million and $25.0 million for the three months ended March 31, 2024 and 2023, respectively. |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, 2024 December 31, 2023 Accrued compensation $ 6,203 $ 10,058 Accrued expenses and other 1,073 1,385 Accrued taxes 2,237 2,398 Total accrued expenses and other current liabilities $ 9,513 $ 13,841 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock compensation expense | Three Months Ended March 31, (in thousands) 2024 2023 Cost of revenues $ 717 $ 270 General and administrative 4,380 (230) Sales and marketing 361 (1,581) Technology and development 1,543 394 Total stock-based compensation expense (benefit) $ 7,001 $ (1,147) |
Performance-Based Restricted Stock Units ("RSUs") | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of assumptions | Assumptions Fair value of common stock (per share) $8.35 Expected volatility 52.20% Risk-free rate 4.27% Dividend yield 0.00% Cost of equity capital 12.30% |
Net (Loss) Income Per Class A_2
Net (Loss) Income Per Class A Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Net (Loss) Income Per Class A Common Share | |
Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share | Three Months Ended March 31, (in thousands, except per share amounts) 2024 2023 Net (loss) income $ (761) $ 4,694 Less: Net loss (income) attributable to non-controlling interests 222 (1,749) Net (loss) income attributable to Enfusion, Inc. $ (539) $ 2,945 Numerator: Net (loss) income attributable to Enfusion, Inc. $ (539) $ 2,945 Adjustment to (loss) income attributable to common stockholders — 226 Numerator for Basic Earnings per Share $ (539) $ 3,171 Adjustment to Income for Dilutive Shares — 1,523 Numerator for Diluted Earnings per Share $ (539) $ 4,694 Denominator: Weighted-average shares of Class A common stock outstanding 89,509 72,272 Vested shares of Class A common stock and RSUs — 16,591 Weighted-average shares of Class A common stock outstanding--basic 89,509 88,863 Add: Dilutive Shares — 43,483 Weighted-average shares of Class A common stock outstanding--diluted 89,509 132,346 Net (loss) income per share of Class A common stock--Basic $ (0.01) $ 0.04 Net (loss) income per share of Class A common stock--Diluted $ (0.01) $ 0.04 |
Schedule of effect of dilutive shares antidilutive | Three Months Ended March 31, (in thousands) 2024 2023 Class B common stock 38,199 — Restricted stock units 3,867 110 Stock options 84 84 42,150 194 |
Organization and Description _2
Organization and Description of Business (Details) | 3 Months Ended |
Mar. 31, 2024 subsidiary | |
Number of wholly-owned subsidiaries | 3 |
Enfusion LLC | |
Ownership percentage | 70.20% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) customer | Mar. 31, 2023 customer | Dec. 31, 2023 USD ($) customer | |
Investment in money market accounts | $ 21.9 | $ 30 | |
Payment of fees upon invoice | 30 days | ||
Unbilled accounts receivable | $ 2.4 | 2.4 | |
Contract assets, unbilled accounts receivable | $ 1.8 | $ 1.7 | |
Major Customer | Revenues | Customer Concentration Risk | |||
Number of customers | customer | 0 | 0 | |
Major Customer | Accounts Receivable | Customer Concentration Risk | |||
Number of customers | customer | 0 | 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Allowances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable, Allowance for Credit Loss | ||
Beginning balance | $ 1,092 | $ 1,225 |
Changes to the provision | 44 | 533 |
Accounts written off, net of recoveries | (157) | (503) |
Ending balance | $ 979 | 1,404 |
Cumulative impact of adopting ASU 2016-13 | ||
Accounts Receivable, Allowance for Credit Loss | ||
Beginning balance | $ 149 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Remaining Performance Obligation (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue remaining performance obligation | $ 31,609 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue remaining performance obligation | $ 15,443 |
Remaining performance obligation satisfaction period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue remaining performance obligation | $ 12,349 |
Remaining performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue remaining performance obligation | $ 3,723 |
Remaining performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue remaining performance obligation | $ 94 |
Remaining performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation satisfaction period | 1 year |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Disaggregation of revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue | ||
Total revenues | $ 48,052 | $ 40,971 |
Revenues | Geographic Region | ||
Disaggregation of Revenue | ||
Total revenues | $ 48,052 | $ 40,971 |
Total net revenues percent | 100% | 100% |
Americas* | Revenues | Geographic Region | ||
Disaggregation of Revenue | ||
Total revenues | $ 29,728 | $ 25,572 |
Total net revenues percent | 61.90% | 62.40% |
Europe, Middle East, and Africa (EMEA) | Revenues | Geographic Region | ||
Disaggregation of Revenue | ||
Total revenues | $ 7,597 | $ 5,903 |
Total net revenues percent | 15.80% | 14.40% |
Asia Pacific (APAC) | Revenues | Geographic Region | ||
Disaggregation of Revenue | ||
Total revenues | $ 10,727 | $ 9,496 |
Total net revenues percent | 22.30% | 23.20% |
United States | ||
Disaggregation of Revenue | ||
Total revenues | $ 29,000 | $ 25,000 |
Property, Equipment, and Soft_2
Property, Equipment, and Software, Net- Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Equipment, and Software, Net | |||
Property, equipment, and software, net | $ 18,851 | $ 18,314 | |
Capitalized software development costs | 2,200 | $ 1,200 | |
Depreciation and amortization expense | 1,000 | 900 | |
Amortization expense related to software development costs | 1,100 | $ 700 | |
United States | |||
Property, Equipment, and Software, Net | |||
Property, equipment, and software, net | $ 17,600 | $ 17,000 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accrued Expenses and Other Current Liabilities | ||
Accrued compensation | $ 6,203 | $ 10,058 |
Accrued expenses and other | 1,073 | 1,385 |
Accrued taxes | 2,237 | 2,398 |
Total accrued expenses and other current liabilities | $ 9,513 | $ 13,841 |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details) - Credit Agreement - USD ($) $ in Millions | 3 Months Ended | |
Sep. 15, 2023 | Mar. 31, 2024 | |
Debt | ||
Additional borrowing capacity | $ 50 | |
Minimum balance to be maintained at bank as per agreement | 5 | |
Outstanding borrowings | $ 0 | |
Senior secured revolving loan facility | ||
Debt | ||
Maximum borrowing capacity | $ 100 | |
Percentage of unused commitment fee | 0.20% | |
Senior secured revolving loan facility | Minimum | ||
Debt | ||
Percentage of unused commitment fee | 0.20% | |
Senior secured revolving loan facility | Maximum | ||
Debt | ||
Percentage of unused commitment fee | 0.25% | |
Senior secured revolving loan facility | Secured Overnight Financing Rate | ||
Debt | ||
Basis points added to variable interest rate | 0.10% | |
Senior secured revolving loan facility | Secured Overnight Financing Rate | Minimum | ||
Debt | ||
Interest rate | 2% | |
Senior secured revolving loan facility | Secured Overnight Financing Rate | Maximum | ||
Debt | ||
Interest rate | 2.75% | |
Senior secured revolving loan facility | Base Rate | Minimum | ||
Debt | ||
Interest rate | 1% | |
Senior secured revolving loan facility | Base Rate | Maximum | ||
Debt | ||
Interest rate | 1.75% | |
Senior secured revolving loan facility | Federal funds rate | ||
Debt | ||
Interest rate | 0.50% | |
Senior secured revolving loan facility | One month adjusted term SOFR | ||
Debt | ||
Interest rate | 1% | |
Letters of credit | ||
Debt | ||
Maximum borrowing capacity | $ 10 | |
Swingline subfacility | ||
Debt | ||
Maximum borrowing capacity | $ 10 |
Debt - Prior Credit Agreement (
Debt - Prior Credit Agreement (Details) - Prior Credit Agreement - Senior secured revolving loan facility | Sep. 15, 2023 USD ($) |
Debt | |
Facility terminated | $ 5,000,000 |
Outstanding borrowings | 0 |
Loss on extinguishment of debt | $ 78,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Jan. 11, 2024 shares | Mar. 31, 2024 Vote shares | Dec. 31, 2023 shares |
Stockholders' Equity | |||
Common units surrendered by Pre-IPO unitholders (in shares) | 1,000,000 | ||
Increase in common units (in shares) | 1,000,000 | ||
Preferred stock authorized | 100,000,000 | 100,000,000 | |
Common Class A | |||
Stockholders' Equity | |||
Issuance of shares | 1,000,000 | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | |
Number of Voting Rights | Vote | 1 | ||
Common Class B | |||
Stockholders' Equity | |||
Common stock, shares authorized | 150,000,000 | 150,000,000 | |
Number of Voting Rights | Vote | 1 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Compensation Expense (Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock-Based Compensation | ||
Total stock-based compensation expense (benefit) | $ 7,001 | $ (1,147) |
Cost of revenues | ||
Stock-Based Compensation | ||
Total stock-based compensation expense (benefit) | 717 | 270 |
General and administrative | ||
Stock-Based Compensation | ||
Total stock-based compensation expense (benefit) | 4,380 | (230) |
Sales and marketing | ||
Stock-Based Compensation | ||
Total stock-based compensation expense (benefit) | 361 | (1,581) |
Technology and development | ||
Stock-Based Compensation | ||
Total stock-based compensation expense (benefit) | $ 1,543 | $ 394 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock-Based Compensation | ||
Total stock-based compensation expense (benefit) | $ 7,001 | $ (1,147) |
Increase (decrease) in share-based compensation | 8,100 | |
Unrecognized stock compensation expense | $ 32,200 | |
Stock based compensation recognition period | 2 years 6 months | |
Restricted Stock Units | ||
Stock-Based Compensation | ||
Granted during the period | 2,276,645 | 597,034 |
Granted, Weighted average fair value per RSU at grant date | $ 8.65 | $ 10.99 |
Unrecognized stock compensation expense | $ 31,900 | |
Stock based compensation recognition period | 2 years 6 months | |
Employee Stock Option | ||
Stock-Based Compensation | ||
Unrecognized stock compensation expense | $ 305 | |
Stock based compensation recognition period | 1 year 8 months 12 days | |
Options granted to employees | 0 | 71,004 |
Stock options forfeited | 0 | 31,474 |
Weighted average exercise price | $ 11.06 | |
Performance-Based Restricted Stock Units ("RSUs") | ||
Stock-Based Compensation | ||
Granted during the period | 100,000 | 0 |
Granted, Weighted average fair value per RSU at grant date | $ 4.24 | |
Unrecognized stock compensation expense | $ 2,700 | |
Stock based compensation recognition period | 1 year 10 months 24 days | |
Annual Bonus Incentive Plan | ||
Stock-Based Compensation | ||
Total stock-based compensation expense (benefit) | $ 3,600 | |
Granted during the period | 0 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions (Details) - Performance-Based Restricted Stock Units ("RSUs") | 3 Months Ended |
Mar. 31, 2024 $ / shares | |
Stock-Based Compensation | |
Fair value of common stock (per share) | $ 8.35 |
Expected volatility | 52.20% |
Risk-free rate | 4.27% |
Dividend yield | 0% |
Cost of equity capital | 12.30% |
Net (Loss) Income Per Class A_3
Net (Loss) Income Per Class A Common Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net (Loss) Income Per Class A Common Share | ||
Net (loss) income | $ (761) | $ 4,694 |
Less: Net loss (income) attributable to non-controlling interests | 222 | (1,749) |
Net (loss) income attributable to Enfusion, Inc. | (539) | 2,945 |
Numerator: | ||
Net (loss) income attributable to Enfusion, Inc. | (539) | 2,945 |
Adjustment to (loss) income attributable to common stockholders | 226 | |
Numerator for Basic Earnings per Share | (539) | 3,171 |
Adjustment to Income for Dilutive Shares | 1,523 | |
Numerator for Diluted Earnings per Share | $ (539) | $ 4,694 |
Denominator: | ||
Weighted-average shares of Class A common stock outstanding | 89,509 | 72,272 |
Vested shares of Class A common stock and RSUs | 16,591 | |
Weighted-average shares of Class A common stock outstanding--basic | 89,509 | 88,863 |
Add: Dilutive Shares | 43,483 | |
Weighted-average shares of Class A common stock outstanding--diluted | 89,509 | 132,346 |
Net (loss) income per share of Class A common stock--Basic | $ (0.01) | $ 0.04 |
Net (loss) income per share of Class A common stock--Diluted | $ (0.01) | $ 0.04 |
Net (Loss) Income Per Class A_4
Net (Loss) Income Per Class A Common Share - Dilutive shares (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive securities amount | 42,150 | 194 |
Common Class B | ||
Antidilutive securities amount | 38,199 | |
Restricted stock units | ||
Antidilutive securities amount | 3,867 | 110 |
Employee Stock Option | ||
Antidilutive securities amount | 84 | 84 |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Taxes | ||
Effective tax rate (as a percent) | 13.30% | 7.80% |
U.S. statutory tax rate (as a percent) | 21% | 21% |
Subsequent Events (Details)
Subsequent Events (Details) - shares | May 06, 2024 | Apr. 08, 2024 | Jan. 11, 2024 |
Subsequent Events | |||
Common units surrendered by Pre-IPO unitholders (in shares) | 1,000,000 | ||
Increase in common units (in shares) | 1,000,000 | ||
Common Class A | |||
Subsequent Events | |||
Issuance of shares | 1,000,000 | ||
Subsequent Event | |||
Subsequent Events | |||
Common units surrendered by Pre-IPO unitholders (in shares) | 1,000,000 | 1,000,000 | |
Increase in common units (in shares) | 1,000,000 | 1,000,000 | |
Subsequent Event | Common Class A | |||
Subsequent Events | |||
Issuance of shares | 1,000,000 | 1,000,000 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (539) | $ 2,945 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non Rule 10b5-1 Arrangement Modified | false |