Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.24.0.1
Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
 
Envestnet is organized around two business segments based on clients served and products provided to meet those needs. The Company's business segments are:

•Envestnet Wealth Solutions – a leading provider of comprehensive and unified wealth management software, services and solutions to empower financial advisors and institutions to enable them to deliver holistic advice to their clients.

•Envestnet Data & Analytics – a leading provider of financial data aggregation, analytics and digital experiences to meet the needs of financial institutions, enterprise FinTech firms and market investment research firms worldwide.

We also incur expenses not directly attributable to the segments listed above. These nonsegment operating expenses primarily consist of employee compensation for certain corporate officers, certain types of professional service expenses, insurance, acquisition related transaction costs, certain restructuring charges and other non-recurring and/or non-operationally related expenses.

See “Note 18—Revenue and Direct Expense” for detail of revenue 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,
  2023 2022 2021
(in thousands)
Envestnet Wealth Solutions $ 108,753  $ 57,323  $ 129,287 
Envestnet Data & Analytics (216,542) (22,221) (2,603)
Nonsegment operating expenses (96,692) (101,126) (86,143)
Income (loss) from operations (204,481) (66,024) 40,541 
Total other income (expense), net (28,516) (12,395) (20,180)
Income (loss) before income tax provision
 (232,997) (78,419) 20,361 
Income tax provision
 12,777  7,061  7,667 
Net income (loss) (245,774) (85,480) 12,694 
Add: Net loss attributable to non-controlling interest 7,050  4,541  602 
Net income (loss) attributable to Envestnet, Inc. $ (238,724) $ (80,939) $ 13,296 

The following table presents a summary of total assets, depreciation and amortization and capital expenditures, including both purchases of property and equipment and capitalization of internally developed software, by segment:

Total Assets Depreciation and amortization Capital expenditures
  As of December 31, For the year ended December 31, For the year ended December 31,
  2023 2022 2023 2022 2021 2023 2022 2021
(in thousands)
Envestnet Wealth Solutions $ 1,562,600  $ 1,560,923  $ 103,301  $ 98,600  $ 91,024  $ 95,777  $ 82,442  $ 66,709 
Envestnet Data & Analytics 314,652  551,242  27,003  27,228  26,743  17,525  22,883  22,192 
Total $ 1,877,252  $ 2,112,165  $ 130,304  $ 125,828  $ 117,767  $ 113,302  $ 105,325  $ 88,901