UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

or

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-40949

Enfusion, Inc.

(Exact name of registrant as specified in its charter)

Delaware	87-1268462
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

125 South Clark Street, Suite 750

Chicago, Illinois 60603

(Address of Principal Executive Offices)

(312) 253-9800

(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of Exchange on which registered
Class A common stock, par value $0.001 per share	ENFN	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  ☒    No   ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes  ☒    No   ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐	Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  ☐    No  ☒

As of August 2, 2024, the registrant had 128,409,499 shares of common stock outstanding, consisting of 93,210,732 outstanding shares of Class A common stock and 35,198,767 outstanding shares of Class B common stock.

TABLE OF CONTENTS

		Page
	GLOSSARY	3
	SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS	4
Part I.	FINANCIAL INFORMATION	6
Item 1.	Condensed Consolidated Interim Financial Statements (Unaudited)	6
	Condensed Consolidated Interim Balance Sheets	6
	Condensed Consolidated Interim Statements of Operations	7
	Condensed Consolidated Interim Statements of Comprehensive Income	8
	Condensed Consolidated Interim Statements of Stockholders’ Equity	9
	Condensed Consolidated Interim Statements of Cash Flows	11
	Notes to Condensed Consolidated Interim Financial Statements	12
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35
Part II.	OTHER INFORMATION	37
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38
	Signatures	39

2

GLOSSARY

As used in this Quarterly Report on Form 10-Q, unless the context otherwise requires:

● “ASC” refers to Accounting Standards Codification.

● “Common Units” refers to the new class of units of Enfusion Ltd. LLC created by the reclassification of the LLC interests of Enfusion Ltd. LLC as part of the Reorganization Transactions.

● “Enfusion,” the “Company,” “we,” “us” and “our” and similar references refer: (1) following the consummation of the Reorganization Transactions, including our IPO, to Enfusion, Inc., and, unless otherwise stated, all of its direct and indirect subsidiaries, including Enfusion Ltd. LLC and (2) prior to the completion of the Reorganization Transactions, including our IPO, to Enfusion Ltd. LLC and, unless otherwise stated, all of its direct and indirect subsidiaries.

● “IPO” refers to the Company’s initial public offering, completed on October 25, 2021.

● “LLC Operating Agreement” refers to the Seventh Amended and Restated Operating Agreement of Enfusion Ltd. LLC, dated as of October 19, 2021, as may be amended from time to time.

● “Pre-IPO Owners” refer to the equity holders who were the owners of Enfusion Ltd. LLC immediately prior to the Reorganization Transactions.

● “Pre-IPO Common Unitholders” refer to Pre-IPO Owners that held Common Units following the Reorganization Transactions.

● “Reorganization Transactions” refer to our IPO and certain organizational transactions that were affected in connection with our IPO, and the application of the net proceeds therefrom. See “Initial Public Offering and Reorganization Transactions” in Note 2 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 for a description of the transactions.

● “SaaS” refers to software as a service.

● “SEC” refers to the U.S. Securities and Exchange Commission.

● “Tax Receivable Agreement” refers to the Tax Receivable Agreement, dated as of October 19, 2021, entered into by and among the Company and each of the other persons from time to time party thereto.

● “U.S. GAAP” refers to generally accepted accounting principles in the United States of America.

3

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations, financial condition, business strategy, plans, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. These forward-looking statements are based on management’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks, and changes in circumstances that are difficult to predict. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements concerning the following:

● our future financial performance, including our revenues, costs of revenues, gross profit or gross profit margin, and operating expenses;

● our ability to successfully expand in our existing markets and into new markets;

● anticipated trends and growth rates in our business and in the markets in which we operate;

● our ability to retain existing clients and onboard new clients;

● our ability to sell additional products and services to our clients;

● our ability to successfully identify, integrate, and realize the benefits of strategic acquisitions or partnerships;

● our ability to effectively manage our growth and future expenses;

● our anticipated investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements;

● our ability to maintain the security and availability of the products and services that comprise our solution;

● our ability to maintain, protect, and enhance our intellectual property;

● our ability to comply with modified or new laws and regulations applying to our business;

● the attraction and retention of qualified employees and key personnel;

● the impact of global financial, economic, and political events on our business and industry; and

● our ability to compete effectively with existing competitors and new market entrants.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in Part II, Item 1A. Risk Factors in this Quarterly Report on Form 10-Q, as well as in our Annual Report on Form 10-K for the year ended December 31, 2023. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events and circumstances reflected in the forward-looking statements may not be achieved or

4

occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q. And while we believe such information provides a reasonable basis for such statements, such information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and you are cautioned not to unduly rely upon these statements.

5

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

ENFUSION, INC.

Condensed Consolidated Interim Balance Sheets

(dollars and shares in thousands, except per share amounts)

	As of		As of
	June 30, 2024		December 31, 2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	34,447	$	35,604
Accounts receivable, net		33,672		28,069
Prepaid expenses		4,475		5,009
Other current assets		1,573		1,170
Total current assets		74,167		69,852
Notes receivable, net		3,000		—
Property, equipment, and software, net		19,672		18,314
Right-of-use-assets, net		16,054		14,304
Other assets		7,197		6,502
Total assets	$	120,090	$	108,972
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	816	$	2,212
Accrued expenses and other current liabilities		11,862		13,841
Current portion of lease liabilities		5,194		4,256
Total current liabilities		17,872		20,309
Lease liabilities, net of current portion		12,803		11,181
Total liabilities		30,675		31,490
Commitment and contingencies (Note 8)
Stockholders’ equity:
Preferred stock, $0.001 par value; 100,000 shares authorized, no shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively		—		—
Class A common stock, $0.001 par value; 1,000,000 shares authorized, 92,188 and 88,332 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively		92		88
Class B common stock, $0.001 par value; 150,000 shares authorized, 36,199 and 39,199 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively		36		39
Additional paid-in capital		236,327		226,877
Accumulated deficit		(171,645)		(172,932)
Accumulated other comprehensive loss		(509)		(406)
Total stockholders’ equity attributable to Enfusion, Inc.		64,301		53,666
Non-controlling interests		25,114		23,816
Total stockholders’ equity		89,415		77,482
Total liabilities and stockholders’ equity	$	120,090	$	108,972

See Notes to Condensed Consolidated Interim Financial Statements.

6

ENFUSION, INC.

Condensed Consolidated Interim Statements of Operations

(dollars and shares in thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
REVENUES:
Platform subscriptions	$	45,794	$	39,610	$	90,483	$	77,608
Managed services		3,223		2,945		6,400		5,689
Other		438		166		624		395
Total revenues		49,455		42,721		97,507		83,692
COST OF REVENUES:
Platform subscriptions		14,194		12,523		28,588		24,198
Managed services		1,636		1,621		3,333		3,185
Other		132		64		215		127
Total cost of revenues		15,962		14,208		32,136		27,510
Gross profit		33,493		28,513		65,371		56,182
OPERATING EXPENSES:
General and administrative		18,673		16,326		38,896		30,799
Sales and marketing		6,021		5,277		12,238		9,363
Technology and development		6,096		4,464		12,647		8,895
Total operating expenses		30,790		26,067		63,781		49,057
Income from operations		2,703		2,446		1,590		7,125
NON-OPERATING INCOME (EXPENSE):
Payment to related party		—		(1,501)		—		(1,501)
Interest income, net		356		462		673		954
Other expense, net		(111)		(221)		(193)		(302)
Total non-operating income (expense)		245		(1,260)		480		(849)
Income before income taxes		2,948		1,186		2,070		6,276
Income taxes		401		188		284		584
Net income		2,547		998		1,786		5,692
Net income attributable to non-controlling interests		721		369		499		2,118
Net income attributable to Enfusion, Inc.	$	1,826	$	629	$	1,287	$	3,574
Net income per Class A common shares attributable to Enfusion, Inc.:
Basic	$	0.02	$	0.01	$	0.01	$	0.04
Diluted	$	0.02	$	0.01	$	0.01	$	0.04
Weighted-average number of Class A common shares outstanding:
Basic		91,480		88,314		90,491		88,404
Diluted		128,852		129,856		128,788		131,006

See Notes to Condensed Consolidated Interim Financial Statements.

7

ENFUSION, INC.

Condensed Consolidated Interim Statements of Comprehensive Income

(dollars in thousands)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	2,547	$	998	$	1,786	$	5,692
Other comprehensive income, net of income tax:
Foreign currency translation (loss) income		(33)		141		(145)		189
Total other comprehensive income		2,514		1,139		1,641		5,881
Comprehensive income attributable to non-controlling interests		713		415		457		2,181
Total comprehensive income attributable to Enfusion, Inc.	$	1,801	$	724	$	1,184	$	3,700

See Notes to Condensed Consolidated Interim Financial Statements.

8

ENFUSION, INC.

Condensed Consolidated Interim Statements of Stockholders’ Equity

(dollars and shares in thousands)

(Unaudited)

														Accumulated
				Class A			Class B			Additional				Other		Non-		Total
	Preferred Stock			Common Stock			Common Stock			Paid-in		Accumulated		Comprehensive		Controlling		Stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		Capital		Deficit		Loss		Interest		Equity
April 1, 2024	—	$	—	89,877	$	90	38,199	$	38	$	231,881	$	(173,471)	$	(484)	$	24,572	$	82,626
Net income	—		—	—		—	—		—		—		1,826		—		721		2,547
Stock-based compensation	—		—	—		—	—		—		3,062		—		—		1,229		4,291
Share exchange	—		—	2,000		2	(2,000)		(2)		1,310		—		—		(1,310)		—
Issuance of Class A common stock associated with share-based awards	—		—	311		—	—		—		60		—		—		(60)		—
Tax withholdings related to net share settlements of stock-based compensation awards and other	—		—	—		—	—		—		14		—		—		5		19
Foreign currency translation	—		—	—		—	—		—		—		—		(25)		(8)		(33)
Distributions to non-controlling interests	—		—	—		—	—		—		—		—		—		(35)		(35)
June 30, 2024	—	$	—	92,188	$	92	36,199	$	36	$	236,327	$	(171,645)	$	(509)	$	25,114	$	89,415
January 1, 2024	—	$	—	88,332	$	88	39,199	$	39	$	226,877	$	(172,932)	$	(406)	$	23,816	$	77,482
Net income	—		—	—		—	—		—		—		1,287		—		499		1,786
Stock-based compensation	—		—	—		—	—		—		8,242		—		—		3,439		11,681
Share exchange	—		—	3,000		3	(3,000)		(3)		1,924		—		—		(1,924)		—
Issuance of Class A common stock associated with share-based awards	—		—	856		1	—		—		162		—		—		(163)		—
Tax withholdings related to net share settlements of stock-based compensation awards and other	—		—	—		—	—		—		(878)		—		—		(375)		(1,253)
Foreign currency translation	—		—	—		—	—		—		—		—		(103)		(42)		(145)
Distributions to non-controlling interests	—		—	—		—	—		—				—		—		(136)		(136)
June 30, 2024	—	$	—	92,188	$	92	36,199	$	36	$	236,327	$	(171,645)	$	(509)	$	25,114	$	89,415

See Notes to Condensed Consolidated Interim Financial Statements.

9

ENFUSION, INC.

Condensed Consolidated Interim Statements of Stockholders’ Equity

(dollars and shares in thousands)

(Unaudited)

														Accumulated
				Class A			Class B			Additional				Other		Non-		Total
	Preferred Stock			Common Stock			Common Stock			Paid-in		Accumulated		Comprehensive		Controlling		Stockholders’
	Shares		Amount	Shares		Amount	Shares	Amount		Capital		Deficit		Loss		Interest		Equity
April 1, 2023	—	$	—	74,082	$	74	41,199	$	41	$	240,075	$	(176,012)	$	(473)	$	35,440	$	99,145
Net income	—		—	—		—	—		—		—		629		—		369		998
Stock-based compensation	—		—	—		—	—		—		1,820		—		—		981		2,801
Issuance of IPO vested Class A common stock and share-based awards	—		—	6,930		7	—		—		1,102		—		—		(1,109)		—
Issuance of Class A common stock, net of issuance costs	—		—	1,200		1	—		—		6,989		—		—		2,702		9,692
Tax withholdings related to net share settlements of stock-based compensation awards	—		—	—		—	—		—		(26,198)		—		—		(14,303)		(40,501)
Foreign currency translation	—		—	—		—	—		—		—		—		95		46		141
Other	—		—	—		—	—		—		(22)		—		—		(11)		(33)
June 30, 2023	—	$	—	82,212	$	82	41,199	$	41	$	223,766	$	(175,383)	$	(378)	$	24,115	$	72,243
January 1, 2023	—		—	70,860	$	71	43,199	$	43	$	244,260	$	(178,863)	$	(504)	$	38,437	$	103,444
Net income	—		—	—		—	—		—		—		3,574		—		2,118		5,692
Stock-based compensation	—		—	—		—	—		—		1,180		—		—		583		1,763
Share exchange	—		—	2,000		2	(2,000)		(2)		1,376		—		—		(1,376)		—
Issuance of IPO vested Class A common stock and share-based awards	—		—	8,152		8	—		—		1,101		—		—		(1,109)		—
Issuance of Class A common stock, net of issuance costs	—		—	1,200		1	—		—		6,989		—		—		2,702		9,692
Cumulative impact of adopting ASU 2016-13	—		—	—		—	—		—		—		(94)		—		(55)		(149)
Tax withholdings related to net share settlements of stock-based compensation awards	—		—	—		—	—		—		(30,937)		—		—		(17,143)		(48,080)
Foreign currency translation	—		—	—		—	—		—		—		—		126		63		189
Other	—		—	—		—	—		—		(203)		—		—		(105)		(308)
June 30, 2023	—	$	—	82,212	$	82	41,199	$	41	$	223,766	$	(175,383)	$	(378)	$	24,115	$	72,243

See Notes to Condensed Consolidated Interim Financial Statements

10

ENFUSION, INC.

Condensed Consolidated Interim Statements of Cash Flows

(dollars in thousands)

(Unaudited)

	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income	$	1,786	$	5,692
Adjustments to reconcile net income to net cash provided by operating activities:
Non-cash lease expense		3,802		3,256
Depreciation and amortization		5,547		3,950
Provision for credit losses		269		688
Amortization of debt-related costs		117		13
Stock-based compensation expense		11,102		1,431
Change in operating assets and liabilities:
Accounts receivable		(5,878)		(148)
Prepaid expenses		533		1,138
Other assets		(2,359)		(1,568)
Accounts payable		(1,261)		(817)
Accrued compensation		(1,644)		(3,981)
Accrued expenses and other liabilities		(172)		375
Lease liabilities		(2,995)		(3,087)
Net cash provided by operating activities		8,847		6,942
Cash flows from investing activities:
Purchases of property and equipment