Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.2
Segment Information
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Segment Information
Segment Information
 
Business segments are generally organized around our business services. Our business segments are:
 
•Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions.

•Envestnet Data & Analytics – 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 and insurance, acquisition related transaction costs, restructuring charges, and other non-recurring and/or non-operationally related expenses. Inter-segment revenues were not material for the three and six months ended June 30, 2019 and 2018.
 
See “Note 11—Revenue” for detail of revenues by segment.

The following table presents a reconciliation from income (loss) from operations by segment to condensed consolidated net income (loss) attributable to Envestnet, Inc.:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
Envestnet Wealth Solutions
 
$
12,379

 
$
16,359

 
$
29,223

 
$
32,220

Envestnet Data & Analytics
 
(8,960
)
 
(3,296
)
 
(16,888
)
 
(7,705
)
Total segment income from operations
 
3,419


13,063


12,335


24,515

Nonsegment operating expenses
 
(23,676
)
 
(13,058
)
 
(41,329
)
 
(25,248
)
Other expense, net
 
(7,512
)
 
(5,430
)
 
(13,275
)
 
(10,684
)
Consolidated loss before income tax provision (benefit)
 
(27,769
)

(5,425
)

(42,269
)

(11,417
)
Income tax provision (benefit)
 
(28,382
)
 
566

 
(24,614
)
 
(13,428
)
Consolidated net income (loss)
 
613

 
(5,991
)
 
(17,655
)

2,011

Add: Net loss attributable to non-controlling interest
 
280

 
465

 
363

 
567

Consolidated net income (loss) attributable to Envestnet, Inc.
 
$
893


$
(5,526
)

$
(17,292
)

$
2,578


 
Segment assets consist of cash, accounts receivable, prepaid expenses and other current assets, property and equipment, net, internally developed software, net, goodwill, and intangible assets, 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:
 
 
June 30,
 
December 31,
 
 
2019
 
2018
Segment assets:
 
 
 
 
Envestnet Wealth Solutions
 
$
1,279,408

 
$
810,971

Envestnet Data & Analytics
 
532,932

 
502,776

Consolidated total assets
 
$
1,812,340

 
$
1,313,747

 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
Segment depreciation and amortization:
 
 
 
 
 
 
 
 
Envestnet Wealth Solutions
 
$
16,376

 
$
11,026

 
$
27,643

 
$
22,499

Envestnet Data & Analytics
 
10,539

 
8,159

 
18,789

 
16,232

Consolidated depreciation and amortization
 
$
26,915


$
19,185


$
46,432

 
$
38,731

 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
Segment capital expenditures:
 
 
 
 
 
 
 
 
Envestnet Wealth Solutions
 
$
10,027

 
$
8,344

 
$
20,865

 
$
16,536

Envestnet Data & Analytics
 
1,939

 
2,260

 
3,533

 
3,655

Consolidated capital expenditures
 
$
11,966

 
$
10,604


$
24,398

 
$
20,191