Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.3
Segment Information
9 Months Ended
Sep. 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 nine months ended September 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
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
Envestnet Wealth Solutions
 
$
17,746

 
$
16,549

 
$
46,969

 
$
48,769

Envestnet Data & Analytics
 
(7,112
)
 
(1,103
)
 
(24,000
)
 
(8,808
)
Nonsegment operating expenses
 
(10,762
)
 
(12,051
)
 
(52,091
)
 
(37,299
)
Income (loss) from operations
 
(128
)
 
3,395

 
(29,122
)
 
2,662

Other expense, net
 
(9,813
)
 
(6,118
)
 
(23,088
)
 
(16,802
)
Consolidated loss before income tax benefit
 
(9,941
)

(2,723
)

(52,210
)

(14,140
)
Income tax benefit
 
(6,977
)
 
(5,234
)
 
(31,591
)
 
(18,662
)
Consolidated net income (loss)
 
(2,964
)
 
2,511

 
(20,619
)

4,522

Add: Net (income) loss attributable to non-controlling interest
 
(116
)
 
443

 
247

 
1,010

Consolidated net income (loss) attributable to Envestnet, Inc.
 
$
(3,080
)

$
2,954


$
(20,372
)

$
5,532


 
A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures follows:
 
 
September 30,
 
December 31,
 
 
2019
 
2018
Segment assets:
 
 
 
 
Envestnet Wealth Solutions
 
$
1,256,574

 
$
810,971

Envestnet Data & Analytics
 
530,562

 
502,776

Consolidated total assets
 
$
1,787,136

 
$
1,313,747

 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
Segment depreciation and amortization:
 
 
 
 
 
 
 
 
Envestnet Wealth Solutions
 
$
18,414

 
$
11,421

 
$
46,057

 
$
33,920

Envestnet Data & Analytics
 
8,321

 
8,142

 
27,110

 
24,374

Consolidated depreciation and amortization
 
$
26,735


$
19,563


$
73,167

 
$
58,294

 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
Segment capital expenditures:
 
 
 
 
 
 
 
 
Envestnet Wealth Solutions
 
$
12,926

 
$
11,320

 
$
33,791

 
$
27,856

Envestnet Data & Analytics
 
2,423

 
3,188

 
5,956

 
6,843

Consolidated capital expenditures
 
$
15,349

 
$
14,508


$
39,747

 
$
34,699