Revenues, adjusted EBITDA and adjusted EPS exceed guidance in Q2 2021, Raising 2021 Outlook
CHICAGO–(BUSINESS WIRE)–Envestnet (NYSE: ENV), a leading provider of intelligent systems for wealth management and financial wellness, today reported financial results for the three and six months ended June 30, 2021.
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Three months ended |
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Six months ended |
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Key Financial Metrics |
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June 30, |
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% |
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June 30, |
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% |
||||||||||||||
(in millions except per share data) |
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
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GAAP: |
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|
|
|
|
|
|
|
|
|
|
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||||||||||
Total revenues |
|
$ |
288.7 |
|
|
$ |
235.3 |
|
|
23 |
% |
|
$ |
563.8 |
|
|
$ |
481.9 |
|
|
17 |
% |
Net income (loss) |
|
$ |
(8.4 |
) |
|
$ |
(5.5 |
) |
|
53 |
% |
|
$ |
6.6 |
|
|
$ |
(12.7 |
) |
|
n/m |
|
Net income (loss) per diluted share attributable to Envestnet, Inc. |
|
$ |
(0.15 |
) |
|
$ |
(0.09 |
) |
|
67 |
% |
|
$ |
0.12 |
|
|
$ |
(0.23 |
) |
|
n/m |
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Non-GAAP: |
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Adjusted revenues(1) |
|
$ |
288.8 |
|
|
$ |
235.4 |
|
|
23 |
% |
|
$ |
564.0 |
|
|
$ |
482.4 |
|
|
17 |
% |
Adjusted EBITDA(1) |
|
$ |
71.1 |
|
|
$ |
55.8 |
|
|
27 |
% |
|
$ |
139.3 |
|
|
$ |
110.4 |
|
|
26 |
% |
Adjusted net income(1) |
|
$ |
43.5 |
|
|
$ |
31.8 |
|
|
37 |
% |
|
$ |
85.4 |
|
|
$ |
63.0 |
|
|
36 |
% |
Adjusted net income per diluted share(1) |
|
$ |
0.67 |
|
|
$ |
0.59 |
|
|
14 |
% |
|
$ |
1.31 |
|
|
$ |
1.16 |
|
|
13 |
% |
n/m – not meaningful |
“During the second quarter and first half of 2021, Envestnet again delivered strong financial results,” said Bill Crager, Chief Executive Officer.
“We are executing our investment plan, which we expect to drive consistent, accelerated growth. Additionally, we will continue to utilize our operational expertise and leverage our competitive advantage to create the ecosystem that powers the intelligent financial life,” concluded Mr. Crager.
Financial Results for the Second Quarter of 2021
Asset-based recurring revenues increased 39% from the second quarter of 2020, and represented 59% of total revenues for the second quarter of 2021 compared to 52% for the second quarter of 2020. Subscription-based recurring revenues increased 7% from the second quarter of 2020, and represented 39% of total revenues for the second quarter of 2021, compared to 45% for the second quarter of 2020. Professional services and other non-recurring revenues decreased 24% from the prior year period. Total revenues increased 23% to $288.7 million for the second quarter of 2021 from $235.3 million for the second quarter of 2020.
Total operating expenses for the second quarter of 2021 increased 20% to $277.8 million from $231.3 million in the prior year period. Cost of revenues increased 46% to $100.5 million for the second quarter of 2021 from $68.8 million for the prior year period. Compensation and benefits increased 10% to $105.5 million for the second quarter of 2021 from $95.6 million for the prior year period. Compensation and benefits were 37% of total revenues for the second quarter of 2021, compared to 41% for the prior year period. General and administration expenses increased 9% to $41.8 million for the second quarter of 2021 from $38.4 million for the prior year period. General and administrative expenses were 14% of total revenues for the second quarter of 2021, compared to 16% for the prior year period.
Income from operations was $10.9 million for the second quarter of 2021 compared to $4.0 million for the second quarter of 2020. Net loss was $8.4 million for the second quarter of 2021 compared to net loss of $5.5 million for the second quarter of 2020. Net loss per diluted share attributable to Envestnet, Inc. was $0.15 for the second quarter of 2021 compared to net loss per diluted share attributable to Envestnet, Inc. of $0.09 for the second quarter of 2020.
Adjusted revenues(1) for the second quarter of 2021 increased 23% to $288.8 million from $235.4 million for the prior year period. Adjusted EBITDA(1) for the second quarter of 2021 increased 27% to $71.1 million from $55.8 million for the prior year period. Adjusted net income(1) increased 37% for the second quarter of 2021 to $43.5 million from $31.8 million for the prior year period. Adjusted net income per diluted share(1) for the second quarter of 2021 increased 14% to $0.67 from $0.59 in the second quarter of 2020.
Balance Sheet and Liquidity
As of June 30, 2021, Envestnet had $369.5 million in cash and cash equivalents and $862.5 million in outstanding debt. The outstanding debt as of June 30, 2021 included $345 million in convertible notes maturing in 2023 and $517.5 million in convertible notes maturing in 2025. The Company’s $500 million revolving credit facility was undrawn as of June 30, 2021.
Outlook
Envestnet provided the following outlook for the third quarter ending September 30, 2021 and full year ending December 31, 2021. This outlook is based on the market value of assets as of June 30, 2021. We caution that we cannot predict the market value of our assets on any future date. See “Cautionary Statement Regarding Forward-Looking Statements.”
In Millions Except Adjusted EPS |
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3Q 2021 |
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FY 2021 |
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GAAP: |
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Revenues: |
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|
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Asset-based |
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$ |
181.0 |
|
|
– |
|
$ |
182.0 |
|
|
|
|
|
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||||||
Subscription-based |
|
113.0 |
|
|
– |
|
114.0 |
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|
|
|
|
|
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Total recurring revenues |
|
$ |
294.0 |
|
|
– |
|
$ |
296.0 |
|
|
|
|
|
|
|
||||||
Professional services and other revenues |
|
4.0 |
|
|
– |
|
4.5 |
|
|
|
|
|
|
|
||||||||
Total revenues |
|
$ |
298.0 |
|
|
– |
|
$ |
300.5 |
|
|
$ |
1,168.0 |
|
|
– |
|
$ |
1,174.0 |
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|
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|
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|
|
|
|
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||||||||||
Asset-based cost of revenues |
|
$ |
101.2 |
|
|
– |
|
$ |
101.7 |
|
|
|
|
|
|
|||||||
Total cost of revenues |
|
$ |
109.5 |
|
|
– |
|
$ |
110.0 |
|
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Net income |
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(a) |
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– |
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(a) |
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(a) |
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– |
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(a) |
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Diluted shares outstanding |
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|
65.6 |
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|
|
65.6 |
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Net income per diluted share |
|
(a) |
|
– |
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(a) |
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(a) |
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– |
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(a) |
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Non-GAAP: |
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Adjusted revenues (1): |
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Asset-based |
|
$ |
181.0 |
|
|
– |
|
$ |
182.0 |
|
|
|
|
|
|
|
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Subscription-based |
|
113.0 |
|
|
– |
|
114.0 |
|
|
|
|
|
|
|
||||||||
Total recurring revenues |
|
$ |
294.0 |
|
|
– |
|
$ |
296.0 |
|
|
|
|
|
|
|
||||||
Professional services and other revenues |
|
4.0 |
|
|
– |
|
4.5 |
|
|
|
|
|
|
|
||||||||
Total revenues |
|
$ |
298.0 |
|
|
– |
|
$ |
300.5 |
|
|
$ |
1,169.0 |
|
|
– |
|
$ |
1,174.0 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
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Adjusted EBITDA(1) |
|
$ |
61.0 |
|
|
– |
|
$ |
63.0 |
|
|
$ |
253.0 |
|
|
– |
|
$ |
257.0 |
|
||
Adjusted net income per diluted share(1) |
|
|
|
$ |
0.58 |
|
|
|
|
$ |
2.30 |
|
|
– |
|
$ |
2.35 |
|
(a) Envestnet does not forecast net income and net income per diluted share due to the unpredictable nature of various items adjusted for non-GAAP disclosure purposes, including the periodic GAAP income tax provision.
Conference Call
Envestnet will host a conference call to discuss second quarter 2021 financial results today at 5:00 p.m. ET. The live webcast and accompanying presentation can be accessed from Envestnet’s investor relations website at http://investor.envestnet.com/. A replay of the webcast will be available on the investor relations website following the call.
About Envestnet
Envestnet, Inc. (NYSE: ENV) is transforming the way financial advice and wellness are delivered. Our mission is to empower advisors and financial service providers with innovative technology, solutions and intelligence to make financial wellness a reality for everyone. Nearly 108,000 advisors and more than 6,000 companies including: 17 of the 20 largest U.S. banks, 46 of the 50 largest wealth management and brokerage firms, over 500 of the largest RIAs and hundreds of FinTech companies, leverage Envestnet technology and services that help drive better outcomes for enterprises, advisors and their clients.
For more information on Envestnet, please visit www.envestnet.com and follow us on Twitter @ENVintel.
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(1) Non-GAAP Financial Measures |
“Adjusted revenues” excludes the effect of purchase accounting on the fair value of acquired deferred revenue. Under GAAP, we record at fair value the acquired deferred revenue for contracts in effect at the time the entities were acquired. Consequently, revenue related to acquired entities for periods subsequent to the acquisition does not reflect the full amount of revenue that would have been recorded by these entities had they remained stand-alone entities. Adjusted revenues has limitations as a financial measure, should be considered as supplemental in nature and is not meant as a substitute for revenue prepared in accordance with GAAP.
“Adjusted EBITDA” represents net income (loss) before deferred revenue fair value adjustment, interest income, interest expense, accretion on contingent consideration and purchase liability, income tax provision (benefit), depreciation and amortization, non-cash compensation expense, restructuring charges and transaction costs, severance, fair market value adjustment on contingent consideration liability, non-recurring litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, non-recurring gain, fair market value adjustment to investment in private company, loss allocation from equity method investments and income attributable to non-controlling interest.
“Adjusted net income” represents net income before deferred revenue fair value adjustment, accretion on contingent consideration and purchase liability, non-cash interest expense, cash interest on our convertible notes (subsequent to the adoption of ASU 2020-06 on January 1, 2021), non-cash compensation expense, restructuring charges and transaction costs, severance, fair market value adjustment on contingent consideration liability, amortization of acquired intangibles, non-recurring litigation and regulatory related expenses, foreign currency, non-income tax expense adjustment, non-recurring gain, fair market value adjustment to investment in private company, loss allocation from equity method investments and income attributable to non-controlling interest. Reconciling items are presented gross of tax, and a normalized tax rate is applied to the total of all reconciling items to arrive at adjusted net income. The normalized tax rate is based solely on the estimated blended statutory income tax rates in the jurisdictions in which we operate. We monitor the normalized tax rate based on events or trends that could materially impact the rate, including tax legislation changes and changes in the geographic mix of our operations.
“Adjusted net income per diluted share” represents adjusted net income attributable to common stockholders divided by the diluted number of weighted-average shares outstanding. Beginning January 1, 2021, the dilutive effect of our Convertible Notes are calculated using the if-converted method in accordance with the adoption of ASU 2020-06. As a result, 9.9 million potential shares to be issued in connection with our Convertible Notes are considered to be dilutive for purposes of the adjusted net income per share calculation beginning January 1, 2021.
See reconciliations of Non-GAAP Financial Measures on pages 9-15 of this press release. Reconciliations are not provided for guidance on such measures as the Company is unable to predict the amounts to be adjusted, such as the GAAP tax provision. The Company’s Non-GAAP Financial Measures should not be viewed as a substitute for revenues, net income or net income per share determined in accordance with GAAP.
Cautionary Statement Regarding Forward-Looking Statements
The forward-looking statements made in this press release and its attachments concerning, among other things, Envestnet, Inc.’s expected financial performance and outlook for the third quarter and full year of 2021, its strategic operational plans and growth strategy are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and the Company’s actual results could differ materially from the results expressed or implied by such forward-looking statements. Furthermore, reported results should not be considered as an indication of future performance. The potential risks, uncertainties and other factors that could cause actual results to differ from those expressed by the forward-looking statements in this press release include, but are not limited to, a pandemic or health crisis, including the COVID-19 pandemic, and its impact on financial institutions, the global economy or capital markets, as well as our products, clients, vendors and employees, and our results of operations, the full extent of which is currently unknown; changes and volatility in financial and capital markets, which could result in changes in demand for our products or services or in the value of assets on which we earn revenue; the possibility that the anticipated benefits of any of our acquisitions will not be realized to the extent or when expected, difficulty in sustaining rapid revenue growth, which may place significant demands on our administrative, operational and financial resources, the concentration of nearly all of our revenues from the delivery of our solutions and services to clients in the financial services industry, our reliance on a limited number of clients for a material portion of our revenues, the renegotiation of fee percentages or termination of our services by our clients, our ability to identify potential acquisition candidates, complete acquisitions and successfully integrate acquired companies, the impact of market and economic conditions on revenues, our inability to successfully execute the conversion of clients’ assets from their technology platform to our technology platforms in a timely and accurate manner, our ability to expand our relationships with existing customers, grow the number of customers and derive revenue from new offerings such as our data analytics solutions and market research services and premium financial applications, compliance failures, adverse judicial or regulatory proceedings against us, liabilities associated with potential, perceived or actual breaches of fiduciary duties and/or conflicts of interest, changes in laws and regulations, including tax laws and regulations, general economic conditions, political and regulatory conditions, the impact of fluctuations in market condition and interest rates on the demand for our products and services and the value of assets under management or administration, the impact of market conditions on our ability to issue debt and equity, the impact of fluctuations in interest rates on our cost of borrowing, our financial performance, the results of our investments in research and development, our data center and other infrastructure, our ability to maintain the security and integrity of our systems and facilities and to maintain the privacy of personal information, failure of our systems to work properly, our ability to realize operating efficiencies, the advantages of our solutions as compared to those of others, the failure to protect our intellectual property rights, our ability to establish and maintain intellectual property rights, our ability to retain and hire necessary employees and appropriately staff our operations and management’s response to these factors. More information regarding these and other risks, uncertainties and factors is contained in our filings with the Securities and Exchange Commission (“SEC”) which are available on the SEC’s website at www.sec.gov or our Investor Relations website at http://investor.envestnet.com/. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. All information in this press release and its attachments is as of August 5, 2021 and, unless required by law, we undertake no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to report the occurrence of unanticipated events.
Envestnet, Inc. |
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Condensed Consolidated Balance Sheets |
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(in thousands) |
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(unaudited) |
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June 30, |
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December 31, |
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2021 |
|
2020 |
||||
Assets |
|
|
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|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
369,524 |
|
|
$ |
384,565 |
|
Fees receivable, net |
|
81,037 |
|
|
80,064 |
|
||
Prepaid expenses and other current assets |
|
40,619 |
|
|
40,570 |
|
||
Total current assets |
|
491,180 |
|
|
505,199 |
|
||
|
|
|
|
|
||||
Property and equipment, net |
|
50,008 |
|
|
47,969 |
|
||
Internally developed software, net |
|
114,770 |
|
|
96,501 |
|
||
Intangible assets, net |
|
435,023 |
|
|
435,041 |
|
||
Goodwill |
|
928,493 |
|
|
906,773 |
|
||
Operating lease right-of-use-assets, net |
|
93,298 |
|
|
105,249 |
|
||
Other non-current assets |
|
57,924 |
|
|
47,558 |
|
||
Total assets |
|
$ |
2,170,696 |
|
|
$ |
2,144,290 |
|
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accrued expenses and other liabilities |
|
$ |
174,957 |
|
|
$ |
158,548 |
|
Accounts payable |
|
20,423 |
|
|
18,003 |
|
||
Operating lease liabilities |
|
12,477 |
|
|
13,649 |
|
||
Contingent consideration |
|
1,312 |
|
|
11,251 |
|
||
Deferred revenue |
|
38,645 |
|
|
34,918 |
|
||
Total current liabilities |
|
247,814 |
|
|
236,369 |
|
||
|
|
|
|
|
||||
Long-term debt |
|
846,411 |
|
|
756,503 |
|
||
Non-current operating lease liabilities |
|
107,045 |
|
|
112,182 |
|
||
Deferred tax liabilities, net |
|
33,576 |
|
|
34,740 |
|
||
Other non-current liabilities |
|
18,384 |
|
|
28,678 |
|
||
Total liabilities |
|
1,253,230 |
|
|
1,168,472 |
|
||
|
|
|
|
|
||||
Equity: |
|
|
|
|
||||
Total stockholders’ equity |
|
917,117 |
|
|
976,337 |
|
||
Non-controlling interest |
|
349 |
|
|
(519 |
) |
||
Total liabilities and equity |
|
$ |
2,170,696 |
|
|
$ |
2,144,290 |
|
Envestnet, Inc. |
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Condensed Consolidated Statements of Operations |
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(in thousands, except share and per share information) |
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(unaudited) |
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|
|
Three Months Ended |
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Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Asset-based |
|
$ |
170,075 |
|
|
$ |
122,246 |
|
|
$ |
329,450 |
|
|
$ |
257,057 |
|
Subscription-based |
|
112,504 |
|
|
104,979 |
|
|
222,333 |
|
|
209,530 |
|
||||
Total recurring revenues |
|
282,579 |
|
|
227,225 |
|
|
551,783 |
|
|
466,587 |
|
||||
Professional services and other revenues |
|
6,159 |
|
|
8,088 |
|
|
12,060 |
|
|
15,265 |
|
||||
Total revenues |
|
288,738 |
|
|
235,313 |
|
|
563,843 |
|
|
481,852 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenues |
|
100,494 |
|
|
68,849 |
|
|
193,363 |
|
|
143,782 |
|
||||
Compensation and benefits |
|
105,548 |
|
|
95,565 |
|
|
206,262 |
|
|
205,995 |
|
||||
General and administration |
|
41,755 |
|
|
38,448 |
|
|
78,070 |
|
|
79,558 |
|
||||
Depreciation and amortization |
|
30,010 |
|
|
28,443 |
|
|
58,402 |
|
|
56,126 |
|
||||
Total operating expenses |
|
277,807 |
|
|
231,305 |
|
|
536,097 |
|
|
485,461 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
10,931 |
|
|
4,008 |
|
|
27,746 |
|
|
(3,609 |
) |
||||
Other expense, net |
|
(3,784 |
) |
|
(8,173 |
) |
|
(11,252 |
) |
|
(9,710 |
) |
||||
Income (loss) before income tax provision (benefit) |
|
7,147 |
|
|
(4,165 |
) |
|
16,494 |
|
|
(13,319 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||
Income tax provision (benefit) |
|
15,516 |
|
|
1,306 |
|
|
9,928 |
|
|
(658 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
(8,369 |
) |
|
(5,471 |
) |
|
6,566 |
|
|
(12,661 |
) |
||||
Add: Net loss attributable to non-controlling interest |
|
88 |
|
|
547 |
|
|
99 |
|
|
401 |
|
||||
Net income (loss) attributable to Envestnet, Inc. |
|
$ |
(8,281 |
) |
|
$ |
(4,924 |
) |
|
$ |
6,665 |
|
|
$ |
(12,260 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share attributable to Envestnet, Inc.: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.15 |
) |
|
$ |
(0.09 |
) |
|
$ |
0.12 |
|
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Diluted |
|
$ |
(0.15 |
) |
|
$ |
(0.09 |
) |
|
$ |
0.12 |
|
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
54,440,388 |
|
|
53,562,850 |
|
|
54,325,353 |
|
|
53,288,741 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Diluted |
|
54,440,388 |
|
|
53,562,850 |
|
|
55,136,946 |
|
|
53,288,741 |
|
Envestnet, Inc. |
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
|
Six Months Ended |
||||||
|
|
June 30, |
||||||
|
|
2021 |
|
2020 |
||||
OPERATING ACTIVITIES: |
|
|
|
|
||||
Net income (loss) |
|
$ |
6,566 |
|
|
$ |
(12,661 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
58,402 |
|
|
56,126 |
|
||
Provision for doubtful accounts |
|
455 |
|
|
1,515 |
|
||
Deferred income taxes |
|
8,137 |
|
|
(1,598 |
) |
||
Non-cash compensation expense |
|
31,422 |
|
|
29,869 |
|
||
Non-cash interest expense |
|
2,906 |
|
|
5,907 |
|
||
Accretion on contingent consideration and purchase liability |
|
575 |
|
|
910 |
|
||
Payments of contingent consideration |
|
(2,360 |
) |
|
— |
|
||
Fair market value adjustment to contingent consideration liability |
|
(140 |
) |
|
(1,982 |
) |
||
Fair market value adjustment to investment in private company |
|
(758 |
) |
|
— |
|
||
Gain on acquisition of equity method investment |
|
— |
|
|
(4,230 |
) |
||
Loss allocation from equity method investments |
|
4,045 |
|
|
3,286 |
|
||
Impairment of right of use assets |
|
1,110 |
|
|
1,426 |
|
||
Other |
|
282 |
|
|
556 |
|
||
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
||||
Fees receivables, net |
|
(1,334 |
) |
|
(8,560 |
) |
||
Prepaid expenses and other current assets |
|
(155 |
) |
|
(7,756 |
) |
||
Other non-current assets |
|
3,665 |
|
|
(353 |
) |
||
Accrued expenses and other liabilities |
|
527 |
|
|
(4,484 |
) |
||
Accounts payable |
|
2,333 |
|
|
(2,130 |
) |
||
Deferred revenue |
|
2,789 |
|
|
7,236 |
|
||
Other non-current liabilities |
|
692 |
|
|
1,946 |
|
||
Net cash provided by operating activities |
|
119,159 |
|
|
65,023 |
|
||
|
|
|
|
|
||||
INVESTING ACTIVITIES: |
|
|
|
|
||||
Purchases of property and equipment |
|
(11,357 |
) |
|
(4,329 |
) |
||
Capitalization of internally developed software |
|
(31,802 |
) |
|
(25,703 |
) |
||
Investments in private companies |
|
(4,549 |
) |
|
(12,625 |
) |
||
Acquisition of proprietary technology |
|
(25,517 |
) |
|
— |
|
||
Acquisitions of businesses, net of cash acquired |
|
(33,143 |
) |
|
(20,257 |
) |
||
Advance for technology solutions |
|
(3,000 |
) |
|
— |
|
||
Net cash used in investing activities |
|
(109,368 |
) |
|
(62,914 |
) |
||
-continued- |
Envestnet, Inc. |
||||||||
Condensed Consolidated Statements of Cash Flows (continued) |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
|
Six Months Ended |
||||||
|
|
June 30, |
||||||
|
|
2021 |
|
2020 |
||||
FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from borrowings on revolving credit facility |
|
— |
|
|
45,000 |
|
||
Payments on revolving credit facility |
|
— |
|
|
(30,000 |
) |
||
Capital contributions – non-controlling shareholders |
|
23 |
|
|
— |
|
||
Payments of contingent consideration |
|
(9,200 |
) |
|
— |
|
||
Proceeds from exercise of stock options |
|
573 |
|
|
6,683 |
|
||
Taxes paid in lieu of shares issued for stock-based compensation |
|
(13,020 |
) |
|
(12,816 |
) |
||
Share repurchases |
|
(2,097 |
) |
|
— |
|
||
Other |
|
(587 |
) |
|
3 |
|
||
Net cash (used in) provided by financing activities |
|
(24,308 |
) |
|
8,870 |
|
||
|
|
|
|
|
||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
|
(524 |
) |
|
(1,342 |
) |
||
|
|
|
|
|
||||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
(15,041 |
) |
|
9,637 |
|
||
|
|
|
|
|
||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD |
|
384,714 |
|
|
82,755 |
|
||
|
|
|
|
|
||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (a) |
|
$ |
369,673 |
|
|
$ |
92,392 |
|
(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets:
|
|
June 30, |
|
June 30, |
||||
|
|
2021 |
|
2020 |
||||
Cash and cash equivalents |
|
$ |
369,524 |
|
|
$ |
92,244 |
|
Restricted cash included in prepaid expenses and other current assets |
|
149 |
|
|
— |
|
||
Restricted cash included in other non-current assets |
|
— |
|
|
148 |
|
||
Total cash, cash equivalents and restricted cash |
|
$ |
369,673 |
|
|
$ |
92,392 |
|
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||
(in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Total revenues |
|
$ |
288,738 |
|
|
$ |
235,313 |
|
|
$ |
563,843 |
|
|
$ |
481,852 |
|
Deferred revenue fair value adjustment (a) |
|
80 |
|
|
77 |
|
|
160 |
|
|
516 |
|
||||
Adjusted revenues |
|
$ |
288,818 |
|
|
$ |
235,390 |
|
|
$ |
564,003 |
|
|
$ |
482,368 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
$ |
(8,369 |
) |
|
$ |
(5,471 |
) |
|
$ |
6,566 |
|
|
$ |
(12,661 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||
Deferred revenue fair value adjustment (a) |
|
80 |
|
|
77 |
|
|
160 |
|
|
516 |
|
||||
Interest income (b) |
|
(197 |
) |
|
(197 |
) |
|
(367 |
) |
|
(588 |
) |
||||
Interest expense (b) |
|
4,225 |
|
|
6,634 |
|
|
8,440 |
|
|
13,768 |
|
||||
Accretion on contingent consideration and purchase liability (c) |
|
187 |
|
|
311 |
|
|
575 |
|
|
910 |
|
||||
Income tax provision (benefit) |
|
15,516 |
|
|
1,306 |
|
|
9,928 |
|
|
(658 |
) |
||||
Depreciation and amortization |
|
30,010 |
|
|
28,443 |
|
|
58,402 |
|
|
56,126 |
|
||||
Non-cash compensation expense (d) |
|
17,285 |
|
|
13,875 |
|
|
31,422 |
|
|
27,345 |
|
||||
Restructuring charges and transaction costs (f) |
|
5,028 |
|
|
6,648 |
|
|
7,812 |
|
|
9,468 |
|
||||
Severance (e) |
|
5,377 |
|
|
1,869 |
|
|
10,291 |
|
|
15,851 |
|
||||
Fair market value adjustment on contingent consideration liability (c) |
|
— |
|
|
(1,982 |
) |
|
(140 |
) |
|
(1,982 |
) |
||||
Non-recurring litigation and regulatory related expenses (c) |
|
1,938 |
|
|
3,517 |
|
|
3,647 |
|
|
4,220 |
|
||||
Foreign currency (b) |
|
(138 |
) |
|
463 |
|
|
13 |
|
|
(31 |
) |
||||
Non-income tax expense adjustment (c) |
|
295 |
|
|
(642 |
) |
|
(271 |
) |
|
(454 |
) |
||||
Non-recurring gain (b) |
|
— |
|
|
— |
|
|
— |
|
|
(4,230 |
) |
||||
Fair market value adjustment to investment in private company (b) |
|
(758 |
) |
|
— |
|
|
(758 |
) |
|
— |
|
||||
Loss allocation from equity method investments (b) |
|
757 |
|
|
1,256 |
|
|
4,045 |
|
|
3,286 |
|
||||
Income attributable to non-controlling interest |
|
(175 |
) |
|
(299 |
) |
|
(440 |
) |
|
(500 |
) |
||||
Adjusted EBITDA |
|
$ |
71,061 |
|
|
$ |
55,808 |
|
|
$ |
139,325 |
|
|
$ |
110,386 |
|
Contacts
Investor Relations
investor.relations@envestnet.com
(312) 827-3940
Media Relations
mediarelations@envestnet.com