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Enfusion Announces Third Quarter 2021 Results


NEW YORK & LONDON & HONG KONG–()–Enfusion, Inc. (“Enfusion”), a leading provider of cloud-based investment management software and services, today announced financial results for the third quarter ended September 30, 2021.

We had an excellent third quarter and are thrilled with our business results. Our cloud-native SaaS solution continues to deliver the tools investment managers need to better manage their business and operational barriers so they can focus on what they do best – drive results for their clients,” said Thomas Kim, Chief Executive Officer, Enfusion.

Third Quarter 2021 Financial Highlights:

  • Total revenue grew to $29.0 million, up 46.8% year over year led by new client signings and growth from existing clients.
  • Platform Subscriptions revenue grew to $27.1 million, up 48.4% year over year.
  • Managed Services revenue grew to $1.9 million, up 61.5% year over year primarily due to increased adoption from new and existing clients.
  • Income from Operations decreased to $4.9 million compared to $6.2 million during the same period in the prior year.
  • Net income was $3.3 million compared to net income of $5.6 million during the same period in the prior year.
  • Annual Recurring Revenue (ARR) for September 2021 was $119.8 million, up 49.3% from September 2020.
  • Net Dollar Retention excluding involuntary churn was 125.9% in the third quarter; NDR including involuntary churn was 122.0%.

Third Quarter 2021 Business Highlights:

  • 59 new clients added in the third quarter
  • Total clients equal to 686 as of September 30, 2021

Fourth Quarter and Full Year 2021 Outlook:

Enfusion is providing the following guidance for the fourth quarter and full year 2021:

  • Fourth Quarter 2021 Outlook:

    • Revenue is expected to be in the range of $30.0 million to $30.5 million.
    • Income from Operations is expected to be in the range of ($293) million to ($294) million.
  • Full Year 2021 Outlook:

    • Revenue is expected to be in the range of $109.8 million to $110.3 million.
    • Income from Operations is expected to be in the range of ($277) million to ($278) million.

Webcast and Conference Call:

Enfusion will host a webcast and conference call today at 2:00 PM (PT) / 5:00 PM (ET), during which management will discuss first results and provide commentary on business performance. A question-and-answer session will follow the prepared remarks.

The live audio webcast may be accessed on the Company’s website at: https://ir.Enfusion.com. The conference call can be accessed by dialing (844) 200-6205 (domestic) or (929) 526-1599 (international). The conference ID number is 665653.

A replay of the call via webcast will be available at: https://ir.Enfusion.com for one year.

About Enfusion

Enfusion’s investment management software-as-a-service platform removes traditional information boundaries, uniting front-, middle- and back-office teams on one cloud-native system. Through its software, analytics, and middle/back-office managed services, Enfusion creates enterprise-wide cultures of real-time, data-driven intelligence, boosting agility, and powering growth. Enfusion partners with 650+ investment managers from 10 global offices spanning four continents.

Forward-Looking Statements

Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, including expectations regarding future financial performance. These forward-looking statements are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, as those set forth in the prospectus for our recent offering of Class A common stock that was filed with the SEC on October 22, 2021. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Key Metrics

Enfusion provides certain key metrics, including annual recurring revenue (“ARR”) and net dollar retention rate. While these numbers are based on what Enfusion believes to be reasonable judgements and estimates of our customer base for the applicable period of measurement, there are inherent challenges in measuring usage and engagement with respect to our online offerings across our customer base. Such challenges and limitations may also affect Enfusion’s understanding of certain details of its business.

Annual Recurring Revenue, or ARR. We calculate ARR monthly by annualizing platform subscriptions and managed services revenue recognized in the last month of the measurement period. We believe ARR provides important information about our future revenue potential, our ability to acquire new clients and our ability to maintain and expand our relationship with existing clients.

Net Dollar Retention Rate. We calculate Net Dollar Retention Rate as of a period end by starting with the ARR for all clients as of twelve months prior to such period end, or Prior Period ARR. We then calculate the ARR from those same clients as of the current period end, or Current Period ARR. Current Period ARR includes expansion within existing clients inclusive of contraction and voluntary attrition, but excludes involuntary cancellations. We define involuntary cancellations as accounts that were cancelled due to the client no longer being in business. We identify involuntary cancellations to be excluded from our Net Dollar Retention Rate calculation based on representations made by the client at the time of cancellation. Our Net Dollar Retention Rate is equal to the Current Period ARR divided by the Prior Period ARR.

We believe Net Dollar Retention Rate is an important metric for us because, in addition to providing a measure of retention, it indicates our ability to grow revenues within existing client accounts.

 

ENFUSION LTD. LLC

Condensed Consolidated Interim Balance Sheets

(dollars in thousands)

 

 

 

As of

September 30, 2021

 

As of

December 31, 2020

 

 

(Unaudited)

 

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

 

$

8,432

 

 

$

13,938

 

Accounts receivable, net of allowance for doubtful accounts

 

 

18,999

 

 

 

12,180

 

Prepaid expenses and other current assets

 

 

8,077

 

 

 

2,793

 

Total current assets

 

 

35,508

 

 

 

28,911

 

Property and equipment, net

 

 

12,498

 

 

 

8,784

 

Other assets

 

 

1,625

 

 

 

1,404

 

Total assets

 

$

49,631

 

 

$

39,099

 

 

 

 

 

 

 

 

LIABILITIES, PREFERRED UNITS AND MEMBERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

2,309

 

 

$

484

 

Accrued expenses and other current liabilities

 

 

8,968

 

 

 

7,666

 

Current portion of long-term debt

 

 

5,000

 

 

 

2,500

 

Total current liabilities

 

 

16,277

 

 

 

10,650

 

Long-term debt, net of discount and issuance costs

 

 

92,535

 

 

 

96,063

 

Other liabilities

 

 

588

 

 

 

430

 

Total liabilities

 

 

109,400

 

 

 

107,143

 

Commitments and contingencies (Note 7)

 

 

 

 

 

 

Preferred Units:

 

 

 

 

 

 

Class C-1 Units, no par value, 28.777 Units issued and outstanding as of September 30, 2021 and December 31, 2020.

 

 

8,901

 

 

 

6,434

 

Class C-2 Units, no par value, 12.219 Units issued and outstanding as of September 30, 2021 and December 31, 2020.

 

 

45,900

 

 

 

44,863

 

Class D Units, no par value, 12.778 Units issued and outstanding as of September 30, 2021 and December 31, 2020.

 

 

115,065

 

 

 

114,218

 

Total Preferred Units

 

 

169,866

 

 

 

165,515

 

Members’ equity (deficit):

 

 

 

 

 

 

Class A Units, no par value, 47.968 Units issued and outstanding as of September 30, 2021 and December 31, 2020.

 

 

(229,329

)

 

 

(233,347

)

Accumulated other comprehensive loss

 

 

(306

)

 

 

(212

)

Total Members’ equity (deficit)

 

 

(229,635

)

 

 

(233,559

)

Total liabilities, Preferred Units and Members’ equity (deficit)

 

$

49,631

 

 

$

39,099

 

 

ENFUSION LTD. LLC

Condensed Consolidated Interim Statements of Operations

(dollars in thousands)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2021

 

2020

 

2021

 

2020

 

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

Platform subscriptions

 

$

27,136

 

 

$

18,282

 

 

$

74,323

 

 

$

52,753

 

Managed services

 

 

1,890

 

 

 

1,170

 

 

 

5,184

 

 

 

3,075

 

Other

 

 

19

 

 

 

333

 

 

 

340

 

 

 

1,077

 

Total net revenues

 

 

29,045

 

 

 

19,785

 

 

 

79,847

 

 

 

56,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

Platform subscriptions

 

 

6,842

 

 

 

4,792

 

 

 

18,262

 

 

 

12,743

 

Managed services

 

 

1,029

 

 

 

428

 

 

 

2,847

 

 

 

1,877

 

Other

 

 

224

 

 

 

173

 

 

 

572

 

 

 

580

 

Total cost of revenues

 

 

8,095

 

 

 

5,393

 

 

 

21,681

 

 

 

15,200

 

Gross profit

 

 

20,950

 

 

 

14,392

 

 

 

58,166

 

 

 

41,705

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

8,546

 

 

 

4,509

 

 

 

22,385

 

 

 

12,574

 

Sales and marketing

 

 

4,901

 

 

 

2,068

 

 

 

12,323

 

 

 

6,615

 

Technology and development

 

 

2,600

 

 

 

1,642

 

 

 

6,844

 

 

 

4,521

 

Total operating expenses

 

 

16,047

 

 

 

8,219

 

 

 

41,552

 

 

 

23,710

 

Income from operations

 

 

4,903

 

 

 

6,173

 

 

 

16,614

 

 

 

17,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,485

)

 

 

(365

)

 

 

(4,287

)

 

 

(1,092

)

Other income (expense)

 

 

29

 

 

 

 

 

 

29

 

 

 

1

 

Total non-operating income (expense)

 

 

(1,456

)

 

 

(365

)

 

 

(4,258

)

 

 

(1,091

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

3,447

 

 

 

5,808

 

 

 

12,356

 

 

 

16,904

 

Income taxes

 

 

154

 

 

 

228

 

 

 

704

 

 

 

656

 

Net income

 

$

3,293

 

 

$

5,580

 

 

$

11,652

 

 

$

16,248

 

 



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