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 September 30, 2024

☐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 October 31, 2024, the registrant had 128,570,838 shares of common stock outstanding, consisting of 94,372,071 outstanding shares of Class A common stock and 34,198,767 outstanding shares of Class B common stock.

Table of Contents

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

Table of Contents

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.

Table of Contents

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, public health, 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

Table of Contents

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.

Table of Contents

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
	September 30, 2024		December 31, 2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	48,299	$	35,604
Accounts receivable, net		32,173		28,069
Prepaid expenses		3,576		5,009
Other current assets		1,388		1,170
Total current assets		85,436		69,852
Notes receivable, net		3,000		—
Property, equipment, and software, net		20,513		18,314
Right-of-use-assets, net		18,926		14,304
Other assets		7,065		6,502
Total assets	$	134,940	$	108,972

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,175	$	2,212
Accrued expenses and other current liabilities		16,460		13,841
Current portion of lease liabilities		5,935		4,256
Total current liabilities		23,570		20,309
Lease liabilities, net of current portion		15,193		11,181
Total liabilities		38,763		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 September 30, 2024 and December 31, 2023, respectively		—		—
Class A common stock, $0.001 par value; 1,000,000 shares authorized, 93,264 and 88,332 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		93		88
Class B common stock, $0.001 par value; 150,000 shares authorized, 35,199 and 39,199 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		35		39
Additional paid-in capital		240,224		226,877
Accumulated deficit		(170,230)		(172,932)
Accumulated other comprehensive loss		(199)		(406)
Total stockholders’ equity attributable to Enfusion, Inc.		69,923		53,666
Non-controlling interests		26,254		23,816
Total stockholders’ equity		96,177		77,482
Total liabilities and stockholders’ equity	$	134,940	$	108,972

See Notes to Condensed Consolidated Interim Financial Statements.

Table of Contents

ENFUSION, INC.

Condensed Consolidated Interim Statements of Operations

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

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
REVENUES:
Platform subscriptions	$	47,786	$	40,857	$	138,269	$	118,465
Managed services		3,078		3,028		9,478		8,717
Other		302		472		926		867
Total revenues		51,166		44,357		148,673		128,049

COST OF REVENUES:
Platform subscriptions		14,584		12,745		43,172		36,943
Managed services		1,631		1,604		4,964		4,789
Other		125		158		340		285
Total cost of revenues		16,340		14,507		48,476		42,017
Gross profit		34,826		29,850		100,197		86,032

OPERATING EXPENSES:
General and administrative		18,782		16,721		57,678		47,520
Sales and marketing		6,221		5,503		18,459		14,866
Technology and development		6,842		4,937		19,489		13,832
Total operating expenses		31,845		27,161		95,626		76,218
Income from operations		2,981		2,689		4,571		9,814

NON-OPERATING (EXPENSE) INCOME:
Payment to related party		—		—		—		(1,501)
Loss on extinguishment of debt		—		(78)		—		(78)
Interest income, net		487		252		1,160		1,206
Other (expense) income, net		(607)		165		(800)		(137)
Total non-operating (expense) income		(120)		339		360		(510)

Income before income taxes		2,861		3,028		4,931		9,304
Income taxes		904		367		1,188		951
Net income		1,957		2,661		3,743		8,353
Net income attributable to non-controlling interests		542		833		1,041		2,951
Net income attributable to Enfusion, Inc.	$	1,415	$	1,828	$	2,702	$	5,402

Net income per Class A common shares attributable to Enfusion, Inc.:
Basic	$	0.02	$	0.02	$	0.03	$	0.06
Diluted	$	0.02	$	0.02	$	0.03	$	0.06
Weighted-average number of Class A common shares outstanding:
Basic		92,904		87,739		91,301		88,175
Diluted		128,984		127,841		129,164		130,049

See Notes to Condensed Consolidated Interim Financial Statements.

Table of Contents

ENFUSION, INC.

Condensed Consolidated Interim Statements of Comprehensive Income

(dollars in thousands)

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net income	$	1,957	$	2,661	$	3,743	$	8,353
Other comprehensive income, net of income tax:
Foreign currency translation income (loss)		424		(252)		279		(63)
Total other comprehensive income		2,381		2,409		4,022		8,290
Comprehensive income attributable to non-controlling interests		656		751		1,113		2,932
Total comprehensive income attributable to Enfusion, Inc.	$	1,725	$	1,658	$	2,909	$	5,358

See Notes to Condensed Consolidated Interim Financial Statements.

Table of Contents

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
July 1, 2024	—	$	—	92,188	$	92	36,199	$	36	$	236,327	$	(171,645)	$	(509)	$	25,114	$	89,415
Net income	—		—	—		—	—		—		—		1,415		—		542		1,957
Stock-based compensation	—		—	—		—	—		—		3,179		—		—		1,216		4,395
Share exchange	—		—	1,000		1	(1,000)		(1)		713		—		—		(713)		—
Issuance of Class A common stock associated with share-based awards	—		—	76		—	—		—		15		—		—		(15)		—
Tax withholdings related to net share settlements of stock-based compensation awards and other	—		—	—		—	—		—		(10)		—		—		(4)		(14)
Foreign currency translation	—		—	—		—	—		—		—		—		310		114		424
September 30, 2024	—	$	—	93,264	$	93	35,199	$	35	$	240,224	$	(170,230)	$	(199)	$	26,254	$	96,177


January 1, 2024	—	$	—	88,332	$	88	39,199	$	39	$	226,877	$	(172,932)	$	(406)	$	23,816	$	77,482
Net income	—		—	—		—	—		—		—		2,702		—		1,041		3,743
Stock-based compensation	—		—	—		—	—		—		11,421		—		—		4,655		16,076
Share exchange	—		—	4,000		4	(4,000)		(4)		2,637		—		—		(2,637)		—
Issuance of Class A common stock associated with share-based awards	—		—	932		1	—		—		177		—		—		(178)		—
Tax withholdings related to net share settlements of stock-based compensation awards and other	—		—	—		—	—		—		(888)		—		—		(379)		(1,267)
Foreign currency translation	—		—	—		—	—		—		—		—		207		72		279
Distributions to non-controlling interests	—		—	—		—	—		—		—		—		—		(136)		(136)
September 30, 2024	—	$	—	93,264	$	93	35,199	$	35	$	240,224	$	(170,230)	$	(199)	$	26,254	$	96,177

See Notes to Condensed Consolidated Interim Financial Statements.

Table of Contents

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
July 1, 2023	—	$	—	82,212	$	82	41,199	$	41	$	223,766	$	(175,383)	$	(378)	$	24,115	$	72,243
Net income	—		—	—		—	—		—		—		1,828		—		833		2,661
Stock-based compensation	—		—	—		—	—		—		1,901		—		—		882		2,783
Share exchange	—		—	2,000		2	(2,000)		(2)		1,183		—		—		(1,183)		—
Issuance of IPO vested Class A common stock and share-based awards	—		—	3,005		3	—		—		607		—		—		(610)		—
Issuance of Class A common stock, net of issuance costs	—		—	1,000		1	—		—		5,412		—		—		2,217		7,630
Tax withholdings related to net share settlements of stock-based compensation awards	—		—	—		—	—		—		(8,159)		—		—		(3,629)		(11,788)
Foreign currency translation	—		—	—		—	—		—		—		—		(170)		(82)		(252)
September 30, 2023	—	$	—	88,217	$	88	39,199	$	39	$	224,710	$	(173,555)	$	(548)	$	22,543	$	73,277


January 1, 2023	—		—	70,860	$	71	43,199	$	43	$	244,260	$	(178,863)	$	(504)	$	38,437	$	103,444
Net income	—		—	—		—	—		—		—		5,402		—		2,951		8,353
Stock-based compensation	—		—	—		—	—		—		3,081		—		—		1,465		4,546
Share exchange	—		—	4,000		4	(4,000)		(4)		2,559		—		—		(2,559)		—
Issuance of IPO vested Class A common stock and share-based awards	—		—	11,157		11	—		—		1,708		—		—		(1,719)		—
Issuance of Class A common stock, net of issuance costs	—		—	2,200		2	—		—		12,401		—		—		4,919		17,322
Cumulative impact of adopting ASU 2016-13	—		—	—		—	—		—		—		(94)		—		(55)		(149)
Tax withholdings related to net share settlements of stock-based compensation awards	—		—	—		—	—		—		(39,096)		—		—		(20,772)		(59,868)
Foreign currency translation	—		—	—		—	—		—		—		—		(44)		(19)		(63)
Other	—		—	—		—	—		—		(203)		—		—		(105)		(308)
September 30, 2023	—	$	—	88,217	$	88	39,199	$	39	$	224,710	$	(173,555)	$	(548)	$	22,543	$	73,277

See Notes to Condensed Consolidated Interim Financial Statements

Table of Contents

ENFUSION, INC.

Condensed Consolidated Interim Statements of Cash Flows

(dollars in thousands)

(Unaudited)


	Nine Months Ended September 30,
	2024		2023
Cash flows from operating activities:
Net income	$	3,743	$	8,353
Adjustments to reconcile net income to net cash provided by operating activities:
Non-cash lease expense		5,554		5,231
Depreciation and amortization		8,507		6,472
Provision for credit (benefit) losses		(84)		1,390
Amortization of debt-related costs		176		17
Loss on extinguishment of debt		—		78
Stock-based compensation expense		15,300		4,054
Other operating activities		—		16
Change in operating assets and liabilities:
Accounts receivable		(4,024)		(538)
Prepaid expenses		1,440		2,026
Other assets		(2,592)		(1,947)
Accounts payable		(879)		(342)
Accrued compensation		1,282		(2,191)
Accrued expenses and other liabilities		1,072		1,162
Lease liabilities