Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.3.1.900
Segment Information
 12 Months Ended
Dec. 31, 2015
Segment Information  
Segment Information

19.        Segment Information

 

Business segments are generally organized around our business services. Our business segments are:

 

Envestnet is a leading provider of unified wealth management software and services empowering financial advisors and institutions.

 

Envestnet | Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services.

 

The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes.  Nonsegment expenses include salary and benefits for certain corporate officers, certain types of professional service expenses and insurance, acquisition related transaction costs, restructuring charges,, and other non-recurring and/or non-operationally related expenses.  There are no inter-segment revenues for the year ended December 31, 2015. The accounting policies of the reportable business segments are the same as those described in Note 2.

 

The following table presents revenue by segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2015

 

2014

 

2013

Revenue:

    

 

    

    

 

    

    

 

    

Envestnet

 

$
406,838

 

$
348,748

 

$
242,535

Envestnet | Yodlee

 

 
14,081

 

 

 —

 

 

 —

Consolidated revenue

 

$
420,919

 

$
348,748

 

$
242,535

 

 

 

 

 

 

 

 

 

 

Fidelity revenue as a percentage of Envestnet revenue:

 

 
18%

 

 
19%

 

 
20%

 

No single customer amounts for Envestnet | Yodlee exceeded 10% of the segment total.

 

The following table presents a reconciliation from income from operations by segment to consolidated net income attributable to Envestnet, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2015

 

2014

 

2013

Envestnet

 

$
43,278

 

$
32,854

 

$
18,312

Envestnet | Yodlee

 

 
(2,984)

 

 

 —

 

 

 —

  Total segment income from operations

 

 
40,294

 

 
32,854

 

 
18,312

Nonsegment operating expenses

 

 
(21,302)

 

 
(11,602)

 

 
(12,800)

Interest income (expense), net

 

 
(9,933)

 

 
(487)

 

 
18

Other income (expense), net

 

 
(71)

 

 
1,742

 

 
182

Consolidated income before income taxes

 

 
8,988

 

 
22,507

 

 
5,712

Income tax provision

 

 
4,552

 

 
8,528

 

 
2,052

Consolidated net income

 

 
4,436

 

 
13,979

 

 
3,660

  Add: Net loss attributable to non-controlling interest

 

 

 —

 

 
195

 

 

 —

Consolidated net income attributable to Envestnet, Inc.

 

$
4,436

 

$
14,174

 

$
3,660

 

Segment assets consist of cash, accounts receivable, prepaid expenses and other current assets, property, plant and equipment goodwill, and other intangibles, net, deferred tax assets and other non-current assets. 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

2015

 

2014

 

2013

Segment assets:

 

 

    

    

 

    

    

 

    

Envestnet

 

$
332,608

 

$
439,358

 

$
221,242

Envestnet | Yodlee

 

 
552,957

 

 

 —

 

 

 —

Consolidated total assets

 

$
885,565

 

$
439,358

 

$
221,242

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2015

 

2014

 

2013

Segment depreciation and amortization:

 

 

    

    

 

    

    

 

    

Envestnet

 

$
23,369

 

$
18,651

 

$
15,329

Envestnet | Yodlee

 

 
4,593

 

 

 —

 

 

 —

Consolidated depreciation and amortization

 

$
27,962

 

$
18,651

 

$
15,329

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2015

 

2014

 

2013

Segment capital expenditures:

 

 

    

    

 

    

    

 

    

Envestnet

 

$
13,682

 

$
9,559

 

$
9,268

Envestnet | Yodlee

 

 
1,034

 

 

 —

 

 

 —

Consolidated capital expenditures

 

$
14,716

 

$
9,559

 

$
9,268