Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.8.0.1
Segment Information
9 Months Ended
Sep. 30, 2017
Segment Information  
Segment Information

19.Segment Information

 

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

 

·

Envestnet – a leading provider of unified wealth management software and services to empower financial advisors and institutions.

 

·

Envestnet | Yodlee – a leading data aggregation and data intelligence 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 employees and officers, certain types of professional service expenses, insurance, acquisition related transaction costs, restructuring charges, and other non-recurring and/or non-operationally related expenses.

 

The following table presents revenue by segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2017

    

2016

 

2017

    

2016

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Envestnet

 

$

135,948

 

$

114,511

 

$

386,638

 

$

328,417

 

Envestnet | Yodlee

 

 

39,666

 

 

34,644

 

 

114,179

 

 

94,267

 

Consolidated revenue

 

$

175,614

 

$

149,155

 

$

500,817

 

$

422,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fidelity revenue as a percentage of Envestnet segment revenue:

 

 

22%

 

 

19%

 

 

22%

 

 

19%

 

 

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 loss attributable to Envestnet, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2017

    

2016

 

2017

    

2016

Envestnet

$

18,955

 

$

12,361

 

$

48,277

 

$

32,425

Envestnet | Yodlee

 

(3,364)

 

 

(8,416)

 

 

(16,707)

 

 

(33,728)

  Total segment income (loss) from operations

 

15,591

 

 

3,945

 

 

31,570

 

 

(1,303)

Nonsegment operating expenses

 

(11,243)

 

 

(5,236)

 

 

(27,833)

 

 

(19,078)

Other expense, net

 

(3,986)

 

 

(4,434)

 

 

(13,838)

 

 

(13,214)

Consolidated income (loss) before income taxes (benefit)

 

362

 

 

(5,725)

 

 

(10,101)

 

 

(33,595)

Income tax provision (benefit)

 

1,682

 

 

(1,668)

 

 

10,824

 

 

(10,602)

Consolidated net loss

 

(1,320)

 

 

(4,057)

 

 

(20,925)

 

 

(22,993)

  Add: Net loss attributable to non-controlling interest

 

 —

 

 

 —

 

 

 —

 

 

 —

Consolidated net loss attributable to Envestnet, Inc.

$

(1,320)

 

$

(4,057)

 

$

(20,925)

 

$

(22,993)

 

Segment assets consist of cash, accounts receivable, prepaid expenses and other current assets, property, plant and equipment, net, internally developed software, net, goodwill, and other intangibles, net, and other non-current assets.  Segment capital expenditures consist of property and equipment and internally developed software expenditures.

 

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

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

2017

    

2016

Segment assets:

 

 

 

 

 

Envestnet

$

344,269

 

$

341,602

Envestnet | Yodlee

 

517,953

 

 

530,799

Consolidated total assets

$

862,222

 

$

872,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2017

    

2016

 

2017

    

2016

Segment depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

Envestnet

$

6,414

 

$

6,362

 

$

19,196

 

$

18,786

Envestnet | Yodlee

 

9,078

 

 

10,330

 

 

27,596

 

 

31,086

Consolidated depreciation and amortization

$

15,492

 

$

16,692

 

$

46,792

 

$

49,872

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2017

    

2016

 

2017

    

2016

Segment capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

Envestnet

$

4,406

 

$

7,967

 

$

17,337

 

$

13,130

Envestnet | Yodlee

 

1,404

 

 

1,212

 

 

3,305

 

 

3,926

Consolidated capital expenditures

$

5,810

 

$

9,179

 

$

20,642

 

$

17,056