Annual report pursuant to Section 13 and 15(d)

Revenues and Cost of Revenues (Tables)

v3.20.4
Revenues and Cost of Revenues (Tables)
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]
In accordance with ASC 606 requirements, the impact of adoption on the Company’s consolidated statements of operations was as follows:
Year Ended December 31, 2018
As Reported Without Adoption of ASC 606 Effect of Change Higher/(Lower)
Statements of Operations
Revenues:
Asset-based $ 481,233  $ 495,646  $ (14,413)
Subscription-based 295,467  295,467  — 
Total recurring revenues 776,700  791,113  (14,413)
Professional services and other revenues 35,663  35,840  (177)
Total revenues 812,363  826,953  (14,590)
Operating expenses:
Cost of revenues 263,400  277,813  (14,413)
Compensation and benefits 317,188  318,887  (1,699)
Total operating expenses 798,198  814,310  (16,112)
Income from operations 14,165  12,643  1,522 
Net income 4,010  2,488  1,522 
Net income attributable to Envestnet, Inc. $ 5,755  $ 4,233  $ 1,522 
Schedule of disaggregation of revenue by major source
The following table presents the Company’s revenues disaggregated by major source:
  Year Ended December 31, 2020
  Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated
Revenues:      
Asset-based $ 540,947  $ —  $ 540,947 
Subscription-based 248,810  177,697  426,507 
Total recurring revenues 789,757  177,697  967,454 
Professional services and other revenues 16,333  14,443  30,776 
Total revenues $ 806,090  $ 192,140  $ 998,230 
  Year Ended December 31, 2019
  Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated
Revenues:  
Asset-based $ 484,312  $ —  $ 484,312 
Subscription-based 207,606  171,207  378,813 
Total recurring revenues 691,918  171,207  863,125 
Professional services and other revenues 17,540  19,462  37,002 
Total revenues $ 709,458  $ 190,669  $ 900,127 

  Year Ended December 31, 2018
 
Envestnet Wealth Solutions(1)
Envestnet Data & Analytics(1)
Consolidated(1)
Revenues:      
Asset-based $ 481,233  $ —  $ 481,233 
Subscription-based 138,372  157,095  295,467 
Total recurring revenues 619,605  157,095  776,700 
Professional services and other revenues 13,000  22,663  35,663 
Total revenues $ 632,605  $ 179,758  $ 812,363 
(1)As noted above, prior period amounts have not been adjusted under the modified retrospective method.
Summary of revenues from major customers
One customer accounted for more than 10% of the Company’s total revenues:
  Year Ended December 31,
  2020 2019 2018
Fidelity 15  % 15  % 17  %
Schedule of disaggregation of revenue by geography
The following table presents the Company’s revenues disaggregated by geography, based on the billing address of the customer:
  Year Ended December 31,
  2020 2019 2018
United States $ 977,047  $ 871,456  $ 778,565 
International (1), (2)
21,183  28,671  33,798 
Total revenues $ 998,230  $ 900,127  $ 812,363 
(1)No foreign country accounted for more than 10% of total revenues.
(2)In 2018, upon adoption of ASU 2014-09, gross revenue recognition changed to net revenue recognition for one customer.
Schedule of estimated revenue expected to be recognized in the future
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 December 31, 2020:
Years ending December 31,  
2021 $ 243,989 
2022 172,981 
2023 101,768 
2024 53,620 
2025 27,744 
Thereafter 13,030 
Total $ 613,132 
Schedule of costs of revenues by revenue category
The following table summarizes cost of revenues by revenue category:
Year Ended December 31,
  2020 2019 2018
Asset-based $ 278,569  $ 243,913  $ 232,145 
Subscription-based 26,934  28,904  25,192 
Professional services and other 426  5,994  6,063 
Total cost of revenues $ 305,929  $ 278,811  $ 263,400