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 March 31, 2022

☐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 ☒

The registrant had outstanding 65,583,289 shares of Class A common stock and 47,470,971 shares of Class B common stock as of May 12, 2022.

Table of Contents

TABLE OF CONTENTS

		Page
	SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS	3
Part I.	FINANCIAL INFORMATION	5
Item 1.	Condensed Consolidated Interim Financial Statements (Unaudited)	5
	Condensed Consolidated Interim Balance Sheets as of March 31, 2022 and December 31, 2021	5
	Condensed Consolidated Interim Statements of Operations for the Three Months Ended March 31, 2022 and 2021	6
	Condensed Consolidated Interim Statements of Comprehensive (Loss) Income for the Three Months Ended March 31, 2022 and 2021	7
	Condensed Consolidated Interim Statements of Preferred Units, Stockholders’ Equity and Members’ Deficit for the Three Months Ended March 31, 2022 and 2021	8
	Condensed Consolidated Interim Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021	9
	Notes to Condensed Consolidated Interim Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27
Part II.	OTHER INFORMATION	29
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	30
	Signatures	31

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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;

●

the sufficiency of our cash, cash to meet our liquidity needs;

●

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

●

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

●

our ability to increase the number of clients using our solution;

●

our ability to sell additional products and services to and retain our existing clients;

●

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

●

our ability to effectively manage our growth and future expenses;

●

our market opportunity and the potential growth of that market, our liquidity and capital needs and other similar matters;

●

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;

●

our anticipated investments in sales and marketing and research and development;

●

our ability to successfully defend litigation brought against us;

●

the increased expenses associated with being a public company;

●

the impact of the COVID-19 pandemic and other global financial, economic, and political events on our business and industry; and

●

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

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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 Item 1A. Risk Factors in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2021. 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 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.

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Interim Balance Sheets

(dollars in thousands)


	As of		As of
	March 31, 2022		December 31, 2021
	(Unaudited)
ASSETS
Current Assets:
Cash	$	56,206	$	64,365
Accounts receivable, net		23,410		18,223
Prepaid expenses		5,458		6,030
Other current assets		1,332		1,060
Total current assets		86,406		89,678
Property and equipment, net		15,046		13,051
Other assets		3,499		3,356
Total assets	$	104,951	$	106,085

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,189	$	2,528
Accrued expenses and other current liabilities		6,557		5,578
Total current liabilities		7,746		8,106
Other liabilities		497		538
Total liabilities		8,243		8,644
Commitments and contingencies
Stockholders' Equity:
Class A Common stock, $0.001 par value; 1,000,000,000 shares authorized, 65,583,289 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively		66		66
Class B Common stock, $0.001 par value; 150,000,000 shares authorized, 47,470,971 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively		47		47
Additional paid-in capital		233,607		226,717
Accumulated deficit		(178,474)		(171,209)
Accumulated other comprehensive loss		(375)		(325)
Total stockholders’ equity attributable to Enfusion, Inc.		54,871		55,296
Non-Controlling Interests		41,837		42,145
Total stockholders' equity		96,708		97,441
Total liabilities and stockholders' equity	$	104,951	$	106,085

See Notes to Condensed Consolidated Interim Financial Statements.

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ENFUSION, INC.

Condensed Consolidated Interim Statements of Operations

(dollars in thousands)

(Unaudited)


	Three Months Ended March 31,
	2022		2021

REVENUES:
Platform subscriptions	$	31,551	$	22,423
Managed services		2,230		1,534
Other		360		396
Total revenues		34,141		24,353

COST OF REVENUES:
Platform subscriptions		9,311		5,952
Managed services		1,615		828
Other		57		29
Total cost of revenues		10,983		6,809
Gross profit		23,158		17,544

OPERATING EXPENSES:
General and administrative		22,295		6,381
Sales and marketing		8,432		3,158
Technology and development		4,802		2,202
Total operating expenses		35,529		11,741
(Loss) income from operations		(12,371)		5,803

NON-OPERATING INCOME (EXPENSE):
Interest expense		(6)		(1,392)
Other income (expense)		3		—
Total non-operating income (expense)		(3)		(1,392)

(Loss) income before income taxes		(12,374)		4,411
Income taxes		150		302
Net (loss) income	$	(12,524)	$	4,109
Net loss attributable to non-controlling interests		(5,259)		—
Net loss attributable to Enfusion, Inc.	$	(7,265)	$	4,109

Net loss per Class A common shares attributable to Enfusion, Inc.:
Basic and diluted	$	(0.10)
Weighted Average number of Class A common shares outstanding:
Basic and diluted		83,384

See Notes to Condensed Consolidated Interim Financial Statements.

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ENFUSION, INC.

Condensed Consolidated Interim Statements of Comprehensive (Loss) Income

(dollars in thousands)

(Unaudited)


	Three Months Ended March 31,
	2022		2021

Net (loss) income	$	(12,524)	$	4,109
Other comprehensive loss, net of income tax:
Foreign currency translation loss		(86)		(61)
Total other comprehensive (loss) income		(12,610)		4,048
Comprehensive loss attributable to non-controlling interests		(5,295)		—
Total comprehensive (loss) income attributable to Enfusion, Inc.	$	(7,315)	$	4,048

See Notes to Condensed Consolidated Interim Financial Statements.

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ENFUSION, INC.

Condensed Consolidated Interim Statements of Preferred Units, Stockholders’ Equity and Members’ Deficit

(dollars in thousands)

(Unaudited)

Accumulated

Members’ Equity

SEC Form 10-Q filed by Enfusion Inc.