| Segment Information |
Segment Information
Business segments are generally organized around our business services. Our business segments are:
•Envestnet Wealth Solutions – 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 and nine months ended September 30, 2019 and 2018.
See “Note 11—Revenue” for detail of revenues by segment.
The following table presents a reconciliation from income (loss) from operations by segment to condensed consolidated net income (loss) attributable to Envestnet, Inc.:
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Three Months Ended |
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Nine Months Ended |
|
|
September 30, |
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September 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Envestnet Wealth Solutions |
|
$ |
17,746 |
|
|
$ |
16,549 |
|
|
$ |
46,969 |
|
|
$ |
48,769 |
|
Envestnet Data & Analytics |
|
(7,112 |
) |
|
(1,103 |
) |
|
(24,000 |
) |
|
(8,808 |
) |
Nonsegment operating expenses |
|
(10,762 |
) |
|
(12,051 |
) |
|
(52,091 |
) |
|
(37,299 |
) |
Income (loss) from operations |
|
(128 |
) |
|
3,395 |
|
|
(29,122 |
) |
|
2,662 |
|
Other expense, net |
|
(9,813 |
) |
|
(6,118 |
) |
|
(23,088 |
) |
|
(16,802 |
) |
Consolidated loss before income tax benefit |
|
(9,941 |
) |
|
(2,723 |
) |
|
(52,210 |
) |
|
(14,140 |
) |
Income tax benefit |
|
(6,977 |
) |
|
(5,234 |
) |
|
(31,591 |
) |
|
(18,662 |
) |
Consolidated net income (loss) |
|
(2,964 |
) |
|
2,511 |
|
|
(20,619 |
) |
|
4,522 |
|
Add: Net (income) loss attributable to non-controlling interest |
|
(116 |
) |
|
443 |
|
|
247 |
|
|
1,010 |
|
Consolidated net income (loss) attributable to Envestnet, Inc. |
|
$ |
(3,080 |
) |
|
$ |
2,954 |
|
|
$ |
(20,372 |
) |
|
$ |
5,532 |
|
A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures follows:
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September 30, |
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December 31, |
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|
2019 |
|
2018 |
Segment assets: |
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|
|
|
Envestnet Wealth Solutions |
|
$ |
1,256,574 |
|
|
$ |
810,971 |
|
Envestnet Data & Analytics |
|
530,562 |
|
|
502,776 |
|
Consolidated total assets |
|
$ |
1,787,136 |
|
|
$ |
1,313,747 |
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|
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|
|
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Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Segment depreciation and amortization: |
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Envestnet Wealth Solutions |
|
$ |
18,414 |
|
|
$ |
11,421 |
|
|
$ |
46,057 |
|
|
$ |
33,920 |
|
Envestnet Data & Analytics |
|
8,321 |
|
|
8,142 |
|
|
27,110 |
|
|
24,374 |
|
Consolidated depreciation and amortization |
|
$ |
26,735 |
|
|
$ |
19,563 |
|
|
$ |
73,167 |
|
|
$ |
58,294 |
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|
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Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Segment capital expenditures: |
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|
|
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|
|
|
Envestnet Wealth Solutions |
|
$ |
12,926 |
|
|
$ |
11,320 |
|
|
$ |
33,791 |
|
|
$ |
27,856 |
|
Envestnet Data & Analytics |
|
2,423 |
|
|
3,188 |
|
|
5,956 |
|
|
6,843 |
|
Consolidated capital expenditures |
|
$ |
15,349 |
|
|
$ |
14,508 |
|
|
$ |
39,747 |
|
|
$ |
34,699 |
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