Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.7.0.1
Segment Information
3 Months Ended
Mar. 31, 2017
Segment Information  
Segment Information

19.Segment Information

 

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

 

·

Envestnet – a leading provider of unified wealth management software and services to empower financial advisors and institutions.

 

·

Envestnet | Yodlee – a leading data aggregation and data intelligence 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, insurance, acquisition related transaction costs, restructuring charges, and other non-recurring and/or non-operationally related expenses.

 

The following table presents revenue by segment:

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

2017

    

2016

Revenue:

 

 

 

 

 

 

Envestnet

 

$

121,318

 

$

103,190

Envestnet | Yodlee

 

 

36,468

 

 

28,631

Consolidated revenue

 

$

157,786

 

$

131,821

 

 

 

 

 

 

 

Fidelity revenue as a percentage of Envestnet segment revenue:

 

 

19%

 

 

20%

 

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

 

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

 

 

 

 

 

 

 

Three Months Ended

 

March 31,

 

2017

    

2016

Envestnet

$

13,511

 

$

9,574

Envestnet | Yodlee

 

(7,708)

 

 

(14,041)

  Total segment income (loss) from operations

 

5,803

 

 

(4,467)

Nonsegment operating expenses

 

(9,157)

 

 

(8,293)

Other expense, net

 

(5,483)

 

 

(3,949)

Consolidated loss before income taxes (benefit)

 

(8,837)

 

 

(16,709)

Income tax provision (benefit)

 

4,298

 

 

(5,716)

Consolidated net loss

 

(13,135)

 

 

(10,993)

  Add: Net loss attributable to non-controlling interest

 

 —

 

 

 —

Consolidated net loss attributable to Envestnet, Inc.

$

(13,135)

 

$

(10,993)

 

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

 

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

 

 

 

 

 

 

 

March 31,

 

December 31,

 

2017

    

2016

Segment assets:

 

 

 

 

 

Envestnet

$

328,887

 

$

341,602

Envestnet | Yodlee

 

525,258

 

 

530,799

Consolidated total assets

$

854,145

 

$

872,401

 

 

 

 

 

 

 

 

Three Months Ended

 

March 31,

 

2017

    

2016

Segment depreciation and amortization:

 

 

 

 

 

Envestnet

$

6,421

 

$

6,065

Envestnet | Yodlee

 

9,414

 

 

10,015

Consolidated depreciation and amortization

$

15,835

 

$

16,080

 

 

 

 

 

 

 

 

Three Months Ended

 

March 31,

 

2017

    

2016

Segment capital expenditures:

 

 

 

 

 

Envestnet

$

5,351

 

$

2,029

Envestnet | Yodlee

 

747

 

 

1,170

Consolidated capital expenditures

$

6,098

 

$

3,199