Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.4.0.3
Segment Information
 3 Months Ended
Mar. 31, 2016
Segment Information  
Segment Information

16.Segment Information

 

Business segments are generally organized around our business services. Our business segments are:

 

Envestnet is a leading provider of unified wealth management software and services empowering financial advisors and institutions.

 

Envestnet | Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services.

 

The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes.  Nonsegment expenses include salary and benefits for certain corporate officers, certain types of professional service expenses, insurance, acquisition related transaction costs, restructuring charges, and other non-recurring and/or non-operationally related expenses.  There are no inter-segment revenues for the three months ended March 31, 2016 and 2015. The accounting policies of the reportable business segments are the same as those described in Note 2.

 

The following table presents revenue by segment:

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

2016

    

2015

Revenue:

 

 

 

 

 

 

Envestnet

 

$
103,190

 

$
96,454

Envestnet | Yodlee

 

 
28,631

 

 

 —

Consolidated revenue

 

$
131,821

 

$
96,454

 

 

 

 

 

 

 

Fidelity revenue as a percentage of Envestnet segment revenue:

 

 
20%

 

 
18%

 

No single customer amounts for Envestnet | Yodlee exceeded 10% of the segment total.

 

 

 

 

 

 

 

 

 

 

The following table presents a reconciliation from income (loss) from operations by segment to consolidated net income (loss) attributable to Envestnet, Inc.:

 

 

 

 

 

 

 

 

Three Months Ended

 

March 31,

 

2016

    

2015

Envestnet

$
9,574

 

$
9,735

Envestnet | Yodlee

 
(14,041)

 

 

 —

  Total segment income (loss) from operations

 
(4,467)

 

 
9,735

Nonsegment operating expenses

 
(8,293)

 

 
(3,053)

Other expense, net

 
(3,949)

 

 
(2,203)

Consolidated income (loss) before income taxes (benefit)

 
(16,709)

 

 
4,479

Income tax provision (benefit)

 
(5,716)

 

 
1,968

Consolidated net income (loss)

 
(10,993)

 

 
2,511

  Add: Net loss attributable to non-controlling interest

 

 —

 

 

 —

Consolidated net income (loss) attributable to Envestnet, Inc.

$
(10,993)

 

$
2,511

 

Segment assets consist of cash, accounts receivable, prepaid expenses and other current assets, property, plant and equipment goodwill, and other intangibles, net, deferred tax assets and other non-current assets.

 

A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures follows:

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

2016

    

2015

Segment assets:

 

 

 

 

 

Envestnet

$
276,075

 

$
323,292

Envestnet | Yodlee

 
580,169

 

 
552,957

Consolidated total assets

$
856,244

 

$
876,249

 

 

 

 

 

 

 

Three Months Ended

 

March 31,

 

2016

    

2015

Segment depreciation and amortization:

 

 

 

 

 

Envestnet

$
6,065

 

$
5,333

Envestnet | Yodlee

 
10,015

 

 

 —

Consolidated depreciation and amortization

$
16,080

 

$
5,333

 

 

 

 

 

 

 

Three Months Ended

 

March 31,

 

2016

    

2015

Segment capital expenditures:

 

 

 

 

 

Envestnet

$
641

 

$
2,058

Envestnet | Yodlee

 
1,170

 

 

 —

Consolidated capital expenditures

$
1,811

 

$
2,058