Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.1
Segment Information
 3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Segment Information
Segment Information
 
Business segments are generally organized around our business services. Our business segments are:
 
•Envestnet Wealth – a leading provider of unified wealth management software and services to empower financial advisors and institutions.
•Envestnet Data & Analytics – 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 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 three months ended March 31, 2019 and 2018.
 
The following table presents revenues by segment:
 
 
Three Months Ended
 
 
March 31,
 
 
2019
 
2018
Revenues:
 
 

 
 

Envestnet Wealth
 
 
 
 
Asset-based
 
$
108,934

 
$
121,153

Subscription-based
 
41,026

 
32,585

Total recurring revenues
 
149,960


153,738

Professional services and other
 
2,745

 
2,250

Total Envestnet Wealth segment revenues
 
152,705


155,988

 
 
 
 
 
Envestnet Data & Analytics
 
 
 
 
Subscription-based
 
42,061

 
37,110

Professional services and other
 
4,900

 
4,913

Total Envestnet Data & Analytics segment revenues
 
46,961


42,023

Consolidated revenues

$
199,666

 
$
198,011


Fidelity revenue as a percentage of Envestnet Wealth segment revenues:
 
20
%
 
20
%

 
No single customer amounts for Envestnet Data & Analytics exceeded 10% of the segment total for any period presented.
 
The following table presents a reconciliation from income (loss) from operations by segment to condensed consolidated net income (loss) attributable to Envestnet, Inc.:
 
 
Three Months Ended
 
 
March 31,
 
 
2019
 
2018
Envestnet Wealth
 
$
16,844

 
$
15,861

Envestnet Data & Analytics
 
(7,928
)
 
(4,409
)
Total segment income (loss) from operations
 
8,916


11,452

Nonsegment operating expenses
 
(17,653
)
 
(12,190
)
Other expense, net
 
(5,763
)
 
(5,254
)
Consolidated loss before income tax provision (benefit)
 
(14,500
)

(5,992
)
Income tax provision (benefit)
 
3,768

 
(13,994
)
Consolidated net income (loss)
 
(18,268
)

8,002

Add: Net loss attributable to non-controlling interest
 
83

 
102

Consolidated net income (loss) attributable to Envestnet, Inc.
 
$
(18,185
)

$
8,104


 
Segment assets consist of cash, accounts receivable, prepaid expenses and other current assets, property and equipment, net, internally developed software, net, goodwill, and intangible assets, 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:
 
 
March 31,
 
December 31,
 
 
2019
 
2018
Segment assets:
 
 
 
 
Envestnet Wealth
 
$
836,043

 
$
810,971

Envestnet Data & Analytics
 
534,548

 
502,776

Consolidated total assets
 
$
1,370,591

 
$
1,313,747

 
 
 
Three Months Ended
 
 
March 31,
 
 
2019
 
2018
Segment depreciation and amortization:
 
 
 
 
Envestnet Wealth
 
$
11,267

 
$
11,473

Envestnet Data & Analytics
 
8,250

 
8,073

Consolidated depreciation and amortization
 
$
19,517

 
$
19,546

 
 
 
Three Months Ended
 
 
March 31,
 
 
2019
 
2018
Segment capital expenditures:
 
 
 
 
Envestnet Wealth
 
$
10,838

 
$
8,192

Envestnet Data & Analytics
 
1,594

 
1,395

Consolidated capital expenditures
 
$
12,432

 
$
9,587