Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 2024
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.

The Company also incurs 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 14—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.:

  Three Months Ended Nine Months Ended
  September 30, September 30,
  2024 2023 2024 2023
(in thousands)
Envestnet Wealth Solutions $ 50,310  $ 30,271  $ 142,411  $ 75,574 
Envestnet Data & Analytics (7,506) (7,994) (115,023) (25,208)
Nonsegment operating expenses (35,798) (21,676) (87,221) (76,134)
Income (loss) from operations 7,006  601  (59,833) (25,768)
Other expense, net (4,277) (2,001) (13,446) (12,012)
Income (loss) before income tax provision (benefit) and equity method investments 2,729  (1,400) (73,279) (37,780)
Income tax provision (benefit) 2,864  (8,824) 3,717  15,363 
Loss from equity method investments
 (1,526) (2,368) (3,327) (7,694)
Net income (loss) (1,661) 5,056  (80,323) (60,837)
Add: Net loss attributable to non-controlling interest —  2,035  1,974  5,284 
Net income (loss) attributable to Envestnet, Inc. $ (1,661) $ 7,091  $ (78,349) $ (55,553)

The following table presents a summary of consolidated total assets by segment:

  September 30, December 31,
  2024 2023
(in thousands)
Envestnet Wealth Solutions $ 1,625,821  $ 1,562,600 
Envestnet Data & Analytics 202,883  314,652 
Consolidated total assets $ 1,828,704  $ 1,877,252