| Segment Information |
21. Segment Information
Business segments are generally organized around our business services. Our business segments are:
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Envestnet – provides leading unified wealth management software and services to empower financial advisors and institutions.
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Envestnet | Yodlee – a leading data aggregation and data intelligence platform powering dynamic, cloud-based innovation for digital financial services.
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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 and 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 year ended December 31, 2017. The accounting policies of the reportable business segments are the same as those described in “Note 2 – Summary of Significant Accounting Policies.”
The following table presents revenue by segment:
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Year Ended December 31,
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2017
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2016
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2015
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Revenue:
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Envestnet
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Assets under management or administration
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$
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410,016
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$
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352,498
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$
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333,684
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Subscription and licensing
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106,048
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84,340
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63,719
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Professional services and other
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11,841
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10,794
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9,435
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Total Envestnet segment revenues
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527,905
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447,632
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406,838
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Envestnet | Yodlee
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Subscription and licensing
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139,819
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113,785
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11,561
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Professional services and other
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15,955
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16,747
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2,520
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Total Envestnet | Yodlee segment revenues
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155,774
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130,532
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14,081
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Consolidated revenue
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$
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683,679
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$
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578,164
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$
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420,919
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Fidelity revenue as a percentage of Envestnet segment revenue:
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22%
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19%
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18%
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No single customer revenue amounts for Envestnet | Yodlee exceeded 10% of the segment revenue total.
The following table presents a reconciliation from income from operations by segment to consolidated net income (loss) attributable to Envestnet, Inc.:
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Year Ended December 31,
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2017
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2016
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2015
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Envestnet
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$
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75,449
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$
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41,678
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$
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43,278
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Envestnet | Yodlee
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(19,456)
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(38,547)
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(2,984)
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Total segment income from operations
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55,993
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3,131
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40,294
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Nonsegment operating expenses
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(39,573)
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(26,575)
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(21,302)
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Interest expense, net
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(16,146)
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(16,563)
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(9,933)
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Other expense, net
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(1,963)
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(483)
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(71)
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Consolidated income (loss) before income tax provision
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(1,689)
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(40,490)
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8,988
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Income tax provision
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1,591
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15,077
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4,552
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Consolidated net income (loss)
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(3,280)
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(55,567)
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4,436
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Add: Net income (loss) attributable to non-controlling interest
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—
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—
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—
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Consolidated net income (loss) attributable to Envestnet, Inc.
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$
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(3,280)
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$
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(55,567)
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$
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4,436
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Segment assets primarily consist of cash, accounts receivable, prepaid expenses and other current assets, property and equipment, net, internally developed software, goodwill, intangible assets, net, deferred tax assets and other non-current assets.
A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures by segment follows:
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At December 31,
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2017
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2016
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Segment assets:
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Envestnet
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$
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353,048
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$
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341,602
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Envestnet | Yodlee
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509,004
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530,799
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Consolidated total assets
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$
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862,052
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$
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872,401
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Year Ended December 31,
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2017
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2016
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2015
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Segment depreciation and amortization:
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Envestnet
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$
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26,223
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$
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24,784
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$
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23,369
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Envestnet | Yodlee
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36,597
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39,215
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4,593
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Consolidated depreciation and amortization
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$
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62,820
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$
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63,999
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$
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27,962
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Year Ended December 31,
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2017
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2016
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2015
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Segment capital expenditures:
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Envestnet
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$
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22,434
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$
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17,120
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$
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13,682
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Envestnet | Yodlee
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5,135
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5,456
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1,034
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Consolidated capital expenditures
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$
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27,569
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$
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22,576
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$
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14,716
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