| Segment Information |
Segment Information
Business segments are generally organized around the Company's business services. The Company's business segments are:
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Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions.
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Envestnet Data & Analytics – leading data aggregation and data analytics 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 operating 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. Intersegment revenues were not material for the year ended December 31, 2019.
See “Note 13—Revenue” for detail of revenues by segment.
The following table presents a reconciliation from income (loss) 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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2019 |
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2018 |
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2017 |
Envestnet Wealth Solutions |
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$ |
67,713 |
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$ |
75,491 |
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$ |
75,449 |
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Envestnet Data & Analytics |
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(25,262 |
) |
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(10,013 |
) |
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(19,456 |
) |
Nonsegment operating expenses |
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(58,524 |
) |
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(51,313 |
) |
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(39,573 |
) |
Income (loss) from operations |
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(16,073 |
) |
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14,165 |
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16,420 |
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Interest expense, net |
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(29,173 |
) |
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(22,840 |
) |
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(16,146 |
) |
Other expense, net |
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(2,849 |
) |
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(487 |
) |
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(1,963 |
) |
Consolidated loss before income tax provision (benefit) |
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(48,095 |
) |
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(9,162 |
) |
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(1,689 |
) |
Income tax provision (benefit) |
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(30,893 |
) |
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(13,172 |
) |
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1,591 |
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Consolidated net income (loss) |
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(17,202 |
) |
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4,010 |
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(3,280 |
) |
Add: Net loss attributable to non-controlling interest |
|
420 |
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1,745 |
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— |
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Consolidated net income (loss) attributable to Envestnet, Inc. |
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$ |
(16,782 |
) |
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$ |
5,755 |
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$ |
(3,280 |
) |
A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures by segment follows:
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December 31, |
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2019 |
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2018 |
Segment assets: |
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Envestnet Wealth Solutions |
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$ |
1,297,891 |
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$ |
810,971 |
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Envestnet Data & Analytics |
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503,993 |
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502,776 |
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Consolidated total assets |
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$ |
1,801,884 |
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$ |
1,313,747 |
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Year Ended December 31, |
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2019 |
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2018 |
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2017 |
Segment depreciation and amortization: |
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Envestnet Wealth Solutions |
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$ |
65,746 |
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$ |
45,139 |
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$ |
26,223 |
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Envestnet Data & Analytics |
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35,525 |
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32,487 |
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36,597 |
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Consolidated depreciation and amortization |
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$ |
101,271 |
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$ |
77,626 |
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$ |
62,820 |
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Year Ended December 31, |
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2019 |
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2018 |
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2017 |
Segment capital expenditures: |
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Envestnet Wealth Solutions |
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$ |
42,395 |
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$ |
36,406 |
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$ |
22,434 |
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Envestnet Data & Analytics |
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11,548 |
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8,186 |
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5,135 |
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Consolidated capital expenditures |
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$ |
53,943 |
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$ |
44,592 |
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$ |
27,569 |
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