| 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 employees and 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
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Envestnet
|
|
$
|
135,948
|
|
$
|
114,511
|
|
$
|
386,638
|
|
$
|
328,417
|
|
|
Envestnet | Yodlee
|
|
|
39,666
|
|
|
34,644
|
|
|
114,179
|
|
|
94,267
|
|
|
Consolidated revenue
|
|
$
|
175,614
|
|
$
|
149,155
|
|
$
|
500,817
|
|
$
|
422,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fidelity revenue as a percentage of Envestnet segment revenue:
|
|
|
22%
|
|
|
19%
|
|
|
22%
|
|
|
19%
|
|
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
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Envestnet
|
$
|
18,955
|
|
$
|
12,361
|
|
$
|
48,277
|
|
$
|
32,425
|
|
Envestnet | Yodlee
|
|
(3,364)
|
|
|
(8,416)
|
|
|
(16,707)
|
|
|
(33,728)
|
|
Total segment income (loss) from operations
|
|
15,591
|
|
|
3,945
|
|
|
31,570
|
|
|
(1,303)
|
|
Nonsegment operating expenses
|
|
(11,243)
|
|
|
(5,236)
|
|
|
(27,833)
|
|
|
(19,078)
|
|
Other expense, net
|
|
(3,986)
|
|
|
(4,434)
|
|
|
(13,838)
|
|
|
(13,214)
|
|
Consolidated income (loss) before income taxes (benefit)
|
|
362
|
|
|
(5,725)
|
|
|
(10,101)
|
|
|
(33,595)
|
|
Income tax provision (benefit)
|
|
1,682
|
|
|
(1,668)
|
|
|
10,824
|
|
|
(10,602)
|
|
Consolidated net loss
|
|
(1,320)
|
|
|
(4,057)
|
|
|
(20,925)
|
|
|
(22,993)
|
|
Add: Net loss attributable to non-controlling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Consolidated net loss attributable to Envestnet, Inc.
|
$
|
(1,320)
|
|
$
|
(4,057)
|
|
$
|
(20,925)
|
|
$
|
(22,993)
|
Segment assets consist of cash, accounts receivable, prepaid expenses and other current assets, property, plant and equipment, net, internally developed software, net, goodwill, and other intangibles, net, and other non-current assets. Segment capital expenditures consist of property and equipment and internally developed software expenditures.
A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures follows:
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2017
|
|
2016
|
|
Segment assets:
|
|
|
|
|
|
|
Envestnet
|
$
|
344,269
|
|
$
|
341,602
|
|
Envestnet | Yodlee
|
|
517,953
|
|
|
530,799
|
|
Consolidated total assets
|
$
|
862,222
|
|
$
|
872,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Segment depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
Envestnet
|
$
|
6,414
|
|
$
|
6,362
|
|
$
|
19,196
|
|
$
|
18,786
|
|
Envestnet | Yodlee
|
|
9,078
|
|
|
10,330
|
|
|
27,596
|
|
|
31,086
|
|
Consolidated depreciation and amortization
|
$
|
15,492
|
|
$
|
16,692
|
|
$
|
46,792
|
|
$
|
49,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Segment capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Envestnet
|
$
|
4,406
|
|
$
|
7,967
|
|
$
|
17,337
|
|
$
|
13,130
|
|
Envestnet | Yodlee
|
|
1,404
|
|
|
1,212
|
|
|
3,305
|
|
|
3,926
|
|
Consolidated capital expenditures
|
$
|
5,810
|
|
$
|
9,179
|
|
$
|
20,642
|
|
$
|
17,056
|
|