Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.22.4
Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
 
Business segments are generally organized around the Company's business services. The Company's business segments are:

•Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions to enable them to deliver an intelligent financial life to their clients.
•Envestnet Data & Analytics – a leading data aggregation, intelligence, and experiences platform that powers data connectivity and business intelligence across digital financial services to enable them to deliver an Intelligent Financial Life to their clients.
The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes. Nonsegment operating expenses may include salary and benefits for certain corporate officers, certain types of professional service expenses and insurance, acquisition related transaction costs, certain restructuring charges and other non-recurring and/or non-operationally related expenses. Intersegment revenues were not material for the year ended December 31, 2022 and 2021.

See “Note 14—Revenues and Cost of Revenues” 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.:

  Year Ended December 31,
  2022 2021 2020
(in thousands)
Envestnet Wealth Solutions $ 55,972  $ 124,651  $ 91,501 
Envestnet Data & Analytics (20,870) 2,033  (9,943)
Nonsegment operating expenses (101,126) (86,143) (62,117)
Income (loss) from operations (66,024) 40,541  19,441 
Interest expense, net of interest income (12,659) (16,104) (30,392)
Other income (expense), net 264  (4,076) 2,906 
Consolidated income (loss) before income tax benefit (78,419) 20,361  (8,045)
Income tax provision (benefit) 7,061  7,667  (5,401)
Consolidated net income (loss) (85,480) 12,694  (2,644)
Add: Net (income) loss attributable to non-controlling interest 4,541  602  (466)
Consolidated net income (loss) attributable to Envestnet, Inc. $ (80,939) $ 13,296  $ (3,110)

A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures by segment follows:

  December 31,
  2022 2021
Segment assets:  (in thousands)
Envestnet Wealth Solutions $ 1,503,646  $ 1,720,779 
Envestnet Data & Analytics 608,519  520,403 
Consolidated total assets $ 2,112,165  $ 2,241,182 

  Year Ended December 31,
  2022 2021 2020
Segment depreciation and amortization:  (in thousands)
Envestnet Wealth Solutions $ 96,658  $ 90,073  $ 80,714 
Envestnet Data & Analytics 33,890  27,694  32,947 
Consolidated depreciation and amortization $ 130,548  $ 117,767  $ 113,661 
  Year Ended December 31,
  2022 2021 2020
Segment capital expenditures:  (in thousands)
Envestnet Wealth Solutions $ 79,993  $ 65,264  $ 46,891 
Envestnet Data & Analytics 25,332  23,637  20,105 
Consolidated capital expenditures $ 105,325  $ 88,901  $ 66,996