Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.10.0.1
Segment Information
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment Information
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 | YodleeTM 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 and insurance, acquisition related transaction costs, restructuring charges and other non-recurring and/or non-operationally related expenses. Inter-segment revenues were not material for the year ended December 31, 2018. 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:

 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Revenue:
 
 
 
 
 
 
Envestnet
 
 

 
 

 
 

Asset-based
 
$
481,233

 
$
410,016

 
$
352,498

Subscription-based
 
138,372

 
106,048

 
84,340

Total recurring revenues
 
619,605

 
516,064

 
436,838

Professional services and other
 
13,000

 
11,841

 
10,794

Total Envestnet segment revenues
 
632,605


527,905

 
447,632

Envestnet | Yodlee
 
 

 
 

 
 

Subscription-based
 
157,095

 
139,819

 
113,785

Professional services and other
 
22,663

 
15,955

 
16,747

Total Envestnet | Yodlee segment revenues
 
179,758

 
155,774

 
130,532

Consolidated revenue
 
$
812,363

 
$
683,679

 
$
578,164

 
 
 
 
 
 
 
Fidelity revenue as a percentage of Envestnet segment revenue:
 
21
%
 
22
%
 
19
%

 
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.:

 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Envestnet
 
$
75,491

 
$
75,449

 
$
41,678

Envestnet | Yodlee
 
(10,013
)
 
(19,456
)
 
(38,547
)
Total segment income from operations
 
65,478


55,993


3,131

Nonsegment operating expenses
 
(51,313
)
 
(39,573
)
 
(26,575
)
Interest expense, net
 
(22,840
)
 
(16,146
)
 
(16,563
)
Other expense, net
 
(487
)
 
(1,963
)
 
(483
)
Consolidated loss before income tax provision (benefit)
 
(9,162
)

(1,689
)

(40,490
)
Income tax provision (benefit)
 
(13,172
)
 
1,591

 
15,077

Consolidated net income (loss)
 
4,010


(3,280
)

(55,567
)
Add: Net loss attributable to non-controlling interest
 
1,745

 

 

Consolidated net income (loss) attributable to Envestnet, Inc.
 
$
5,755


$
(3,280
)

$
(55,567
)


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. 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 by segment follows:

 
 
December 31,
 
 
2018
 
2017
Segment assets:
 
 
 
 
Envestnet
 
$
810,971

 
$
353,048

Envestnet | Yodlee
 
502,776

 
509,004

Consolidated total assets
 
$
1,313,747

 
$
862,052


 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Segment depreciation and amortization:
 
 
 
 
 
 
Envestnet
 
$
45,139

 
$
26,223

 
$
24,784

Envestnet | Yodlee
 
32,487

 
36,597

 
39,215

Consolidated depreciation and amortization
 
$
77,626

 
$
62,820

 
$
63,999


 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Segment capital expenditures:
 
 
 
 
 
 
Envestnet
 
$
36,406

 
$
22,434

 
$
17,120

Envestnet | Yodlee
 
8,186

 
5,135

 
5,456

Consolidated capital expenditures
 
$
44,592

 
$
27,569

 
$
22,576