Annual report pursuant to Section 13 and 15(d)

Revenues and Cost of Revenues

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Revenues and Cost of Revenues
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenues and Cost of Revenues Revenues and Cost of Revenues
Disaggregation of revenue
 
The following table presents the Company’s revenues disaggregated by major source:
  Year Ended December 31, 2021
  Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated
Revenues: (in thousands)
Asset-based $ 709,376  $ —  $ 709,376 
Subscription-based 267,720  186,269  453,989 
Total recurring revenues 977,096  186,269  1,163,365 
Professional services and other revenues 14,070  9,082  23,152 
Total revenues $ 991,166  $ 195,351  $ 1,186,517 
  Year Ended December 31, 2020
  Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated
Revenues: (in thousands)
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: (in thousands)
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 

One customer accounted for more than 10% of the Company’s total revenues, substantially all of which are included within the Envestnet Wealth Solutions segment:
  Year Ended December 31,
  2021 2020 2019
Fidelity 17  % 15  % 15  %

The following table presents the Company’s revenues disaggregated by geography, based on the billing address of the customer:
  Year Ended December 31,
  2021 2020 2019
(in thousands)
United States $ 1,166,251  $ 977,047  $ 871,456 
International (1)
20,266  21,183  28,671 
Total revenues $ 1,186,517  $ 998,230  $ 900,127 
(1)No foreign country accounted for more than 10% of total revenues.
Remaining performance obligations
 
The following table includes estimated revenue expected to be recognized in the future as of December 31, 2021:
Years ending December 31,  (in thousands)
2022 $ 253,848 
2023 161,762 
2024 88,269 
2025 46,173 
2026 19,845 
Thereafter 4,433 
Total $ 574,330 

The remaining performance obligations disclosed above are not indicative of revenue for future periods.

Contract balances

Total deferred revenue decreased $2.0 million and $3.8 million as of December 31, 2021 and December 31, 2020, respectively. The decrease in both years is primarily due to timing differences related to the satisfaction of outstanding performance obligations and the Company's billing cycles during the years then ended. The majority of the Company's deferred revenue as of December 31, 2021 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 $33.8 million and $34.3 million for the years ended December 31, 2021 and 2020, 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 $11.8 million and $10.8 million as of December 31, 2021 and 2020, respectively. Amortization expense for the deferred sales incentive compensation was $4.4 million and $3.9 million for the years ended December 31, 2021 and 2020, respectively. Deferred sales incentive compensation is included in other non-current assets on the consolidated balance sheets and amortization expense is included in compensation and benefits expenses on the consolidated statements of operations. No significant impairment loss for capitalized costs was recorded during the periods.

Cost of Revenues

The following table summarizes cost of revenues by revenue category:
Year Ended December 31,
  2021 2020 2019
(in thousands)
Asset-based $ 393,717  $ 278,569  $ 243,913 
Subscription-based 29,445  26,934  28,904 
Professional services and other 561  426  5,994 
Total cost of revenues $ 423,723  $ 305,929  $ 278,811