Envestnet, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Revenue

Three Months Ended

Revenue

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue

Disaggregation of revenue

The following table presents the Company’s revenues disaggregated by major source:



	Three Months Ended March 31,
	2019						2018
	Envestnet Wealth		Envestnet Data & Analytics		Consolidated		Envestnet Wealth		Envestnet Data & Analytics		Consolidated
Revenues:
Asset-based	$	108,934	$	—	$	108,934	$	121,153	$	—	$	121,153
Subscription-based	41,026		42,061		83,087		32,585		37,110		69,695
Total recurring revenues	149,960		42,061		192,021		153,738		37,110		190,848
Professional services and other revenues	2,745		4,900		7,645		2,250		4,913		7,163
Total revenues	$	152,705	$	46,961	$	199,666	$	155,988	$	42,023	$	198,011

The following table presents the Company’s revenues disaggregated by geography, based on the billing address of the customer:



	Three Months Ended
	March 31,
	2019		2018
United States	$	192,119	$	188,315
International ⁽¹⁾	7,547		9,696
Total	$	199,666	$	198,011


(1)	No foreign country accounted for more than 10% of total revenues.

One customer accounted for more than 10% of the Company’s total revenues:

Remaining performance obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2019:



Years ending December 31,
Remainder of 2019	$	159,916
2020	138,921
2021	83,286
2022	55,311
2023	24,807
Thereafter	36,640
Total	$	498,881

Only fixed consideration from significant contracts with customers is included in the amounts presented above.

The Company has applied the practical expedients and exemption and does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less; (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed; and (iii) contracts for which the variable consideration is allocated entirely to a wholly unsatisfied performance obligations or to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation.

Contract balances

Total deferred revenue as of March 31, 2019 increased by $7,321, which is primarily the result of an increase in deferred revenue related to subscription-based services during the three months ended March 31, 2019, most of which will be recognized over the course of the next twelve months.

The amount of revenue recognized that was included in the opening deferred revenue balance was $9,723 and $7,516 for the three months ended March 31, 2019 and 2018, respectively. The majority of this revenue consists of subscription-based services and professional services arrangements. The amount of revenue recognized from performance obligations satisfied in prior periods was not material.

Deferred sales incentive compensation

Deferred sales incentive compensation was $7,081 as of March 31, 2019. Amortization expense for the deferred sales incentive compensation was $651 and $482 for the three months ended March 31, 2019, and 2018, respectively. No significant impairment loss for capitalized costs was recorded during the period.

The Company has applied the practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period would have been one year or less. These costs are included in compensation and benefits expenses on the condensed consolidated statements of operations.